Introduction
The business model canvas is the most commonly used tool in developing a business strategy. Its application ranges from schooling to entrepreneurial simulation to real-world company planning. Furthermore, the business model canvas is a means of describing, assessing, and constructing business models, with nine building elements that demonstrate the logic of how an organization plans to create money. The nine blocks represent customers, offer, infrastructure, and financial viability. The business model canvas can assist entrepreneurs in identifying their resources and capabilities and matching them to market needs. The nine blocks in the business model canvas, which include vital partners, cost structure, and others in relation to AI, can be summarized to explain their significance in a business.
Business Model Canvas Summary in Relation to AI
Key partners explains the network of suppliers and partners required by a firm. Some activities, for example, are outsourced, and some resources are obtained outside the organization (Bretones et al., 2021). Key activities are the most crucial things a firm must do to have its business model succeed. The business model can include everything from software development to supply chain management to consulting (Bretones et al., 2021). In addition, key resources are the essential assets required by a company model. Depending on the company model, it can take several forms, such as physical, intellectual, human, or financial. A value proposition is the core value of a product or service that may be communicated to clients (Bretones et al., 2021). Usually, it validates in which width one product or service can stand out among nobles.
Furthermore, customer relationship refers to the kind of ties that a firm has with its customers. How a company interacts with its clients significantly impacts the user experience. On the other hand, Channels explain how a corporation communicates with its customers (Fatima et al., 2022). It acts as a link between the company and its customers and is crucial to the user experience. Customer segments are specific groups of people that a company wishes to reach. The segmentation could be based on shared requirements, habits, or other characteristics. For the organization to create value, a precise categorization is required (Keane et al., 2018). The cost structure describes the essential costs spent when running a business model. Some company models are cost-driven, focusing on minimizing and optimizing overall expenses, while others are value-driven, aiming to provide a premium user experience (Keane et al., 2018). Revenue Streams describe the primary revenue streams generated by the business model. It can come from a one-time transaction or foreseeable future revenue.
The Business Model Canvas has long been considered a valuable tool in the corporate innovation process, assisting teams of individuals to convey their new (or current) service or product value proposition. With every company leadership team worldwide discussing or at least thinking about their Artificial Intelligence strategy, it is critical to update the original Business Model Canvas (Carter M. & Carter C., 2020). That is due to be more specific in capturing future Artificial Intelligence goods and services considerations. As a result, Senior Leadership Teams and Innovation teams will be able to define the opportunities in their organization better (Fatima et al., 2022). Most organizations have a considerable gap between aspiration and execution, and three-quarters of leaders believe AI will help their companies to enter new markets (Ojasalo J. & Ojasalo K., 2018). A significant proportion believes AI will help companies gain or maintain a competitive advantage (Ojasalo J. & Ojasalo K., 2018). On the other hand, around one out of every five businesses have implemented AI in some of their offerings or operations.
Conclusion
AI and machine technologies transform how organizations interact with customers and provide more in less time. AI technology has numerous applications in various industries, including marketing and technology. The potential for a company is limitless; yet, to incorporate AI and machine learning technology into businesses, individuals must have a capable workforce managing the technologies. Furthermore, revenue streams, channels, customer interactions, critical collaborations, and cost structure are some of the pieces that comprise the Business Model Canvas.
References
Bretones C., B., Hoffmann, F., & Metternich, J. (2021). Comparison of AI-Based Business Models in Manufacturing: Case Studies on Predictive Maintenance. ESSN: 2701-6277. Web.
Carter, M., & Carter, C. (2020). The creative business model canvas. Social Enterprise Journal. Web.
Fatima, S., Desouza, K. C., Buck, C., & Fielt, E. (2022). Public AI canvas for AI-enabled public value: A design science approach. Government Information Quarterly. Web.
Keane, S. F., Cormican, K. T., & Sheahan, J. N. (2018). Comparing how entrepreneurs and managers represent the elements of the business model canvas. Journal of Business Venturing Insights, 9, 65-74. Web.
Ojasalo, J., & Ojasalo, K. (2018). Service logic business model canvas. Journal of research in marketing and entrepreneurship, 20(1), 70-98. Web.