MGMT20143 Assessment 2: DeepMap Business Model Canvas Report

This report presents a comprehensive analysis of DeepMap's business model canvas, focusing on their innovative approach to autonomous driving systems and HD mapping technology. The report begins with an introduction to DeepMap, highlighting its mission to create high-definition maps for autonomous vehicles, and identifies the market problem of accidents in self-driving cars. It then delves into the customer and client benefits, emphasizing the value proposition of safer and more efficient autonomous driving. The core of the report outlines the nine components of the business model canvas, including key partners, activities, resources, value propositions, channels, customer relationships, segments, cost structures, and revenue streams. It further explores the interrelationships among these components, the critical success factors for execution, and potential risks and assumptions. The report concludes with an evaluation of the overall feasibility of the business idea, assessing its strengths, industry-related issues, target market dynamics, founder-related aspects, and financial considerations, ultimately determining the overall potential of the DeepMap venture. References and an appendix with the detailed business model canvas are also included.

Running head: BUSINESS MODEL CANVAS 1
STUDENT NAME:
STUDENT ID:
TOPIC: BUSINESS MODEL CANVAS
DATE: 3-5-2019

BUSINESS MODEL CANVAS 2
Contents
Introduction.................................................................................................................................................2
Market problem..........................................................................................................................................3
Customer/client benefits.............................................................................................................................3
Business model............................................................................................................................................4
Key partners............................................................................................................................................4
Key activities............................................................................................................................................4
Key resources..........................................................................................................................................4
Value proposition....................................................................................................................................4
Channels..................................................................................................................................................4
Customer relationship.............................................................................................................................4
Customer segment..................................................................................................................................5
Cost structure..........................................................................................................................................5
Revenue stream.......................................................................................................................................5
Key interrelationships that relates support and success.............................................................................5
Critical success factors managed during execution of the idea...................................................................5
Identification of critical risk and assumptions.............................................................................................6
Evaluation of overall feasibility of the idea..................................................................................................6
Strength of the business idea..................................................................................................................6
Industry related issues.............................................................................................................................7
Target market and customer related issues............................................................................................7
Founder related issues............................................................................................................................7
Financial issues........................................................................................................................................7
Overall potential......................................................................................................................................8
References...................................................................................................................................................8
Appendix...................................................................................................................................................10
Appendix 1: DeepMap Business Model Canvas........................................................................................10

BUSINESS MODEL CANVAS 3
Introduction
DeepMap is a tech company that manufactures autonomous driving systems that create high
definition maps for autonomous cars. The company picks up high profile range of map and
creates a value added solution for the inroad cars and vehicles. There is a significant market
problem that is analyzed in the market while the market problem is the autonomous driving cars
have accidents now and then and it is important to consider the major problem of business for
DeepMap.
Market problem
The major problem is not functioning of current technical tools and equipments that drive the
car. Safety is a major concern for people who opt for autonomous cars while reaching the current
footprint tends to focus on relative functioning and considering trickling problems with funding
problems. It is important that innovation to be considered for growth and development of the
business. Thereby, considerable measures should be taken in order to work on autonomous
functioning of the car with the help of HD mapping and creating an easy for driverless cars.
Generation investment and consideration of series of autonomous cars are previously analyzed.
These are added for the benefit of building a business canvas model that would reflect change
and focus on business enhancement.
Customer/client benefits
The business model canvas is prepared with innovative ideas for DeepMap to consider major
focus on growth of the business (Bertoncello & Wee, 2015). With this purpose, the customers
and clients are benefited equally with specific consideration of innovation and growth in the
business and in the product simultaneously. This was majorly the concern of business to consider
the importance of self driving and HD mapping in the cars (Karatas, 2014). The business model
reflects the idea of innovation and growth which is acceptable in the business to focus on
generation mix cars and valuation of cars that need a higher improvement in price and quality
while providing benefit of the product and services to the customers with new idea generation of
HD clarification and autonomous benefits. The business model canvas is prepared to enhance the
idea of connection and interrelationship between the business model components. The customer

BUSINESS MODEL CANVAS 4
benefits are analyzed with business operations that accounts to profitable measures for client and
customer.
Business model
Business model canvas has nine components that ensure business success while implementing
the business functions. The nine components are key activities, key resources, key partners,
channels, customer relationship, customer segment, cost structure, value proposition and revenue
streams (Chesbrough, 2010). These are nine business model components that ensure growth of
the company while practicing in a standard format.
Key partners
Key partners are the suppliers, investors and stakeholders of the company that are mainly
connected with the business operation for encouraging growth of the business.
Key activities
Key activities that the business takes is undertaken with the help of resources that are provided
and the partners that encourage to complete the business activity (Duncan, 2011). At this end,
DeepMap concentrates on localizing and mapping. The autonomous car services that the
company would provide will encourage mapping.
Key resources
Key resources of the business include technological advancement and effect of human resource
skills that encourage in hardware, self-driving cars and concentrate on data storage effects. These
are the key resources of the company that are managed effectively.
Value proposition
The value proposition is the ultimate objective that the business tends to work on for satisfying
the market solution it has addressed (Bohnsack, Pinkse & Kolk, 2014). Automatic car and HD
mapping are the initial goal that would fulfill customer demand. Addressing and building an
approach that reduces accidents is the main goal (Kent & Dowling, 2013).
Channels
The channels of distribution are websites and store collection. There is no third party who can
sell the products.

BUSINESS MODEL CANVAS 5
Customer relationship
Customer service and sophisticated services to customers will help to build sound relationship
with customers.
Customer segment
The different types of customer segments such that related to individuals and business owners
would opt for this service and innovation.
Cost structure
In building the HD mapping and the whole scenario, the cost structure is prepared.
Revenue stream
Revenue stream considers licensing, transportation and royalties of the products in the business.
Key interrelationships that relates support and success
While preparing the business canvas model, there is a task that the company considers while
working on and supporting the success of interrelationship between the nine business
components. The key resources of the business are interrelated with key business activities that
the partners would perform. This indicates that using the resources in the activities by the
partners can lead to a support system in innovation strategy (Abdelkafi, Makhotin & Posselt,
2013). There is a business component that is linked with cost structure, this is revenue streams
that generate profit while investing in the business operations and considering innovation as the
major aspect of support for the company. Adequate relation with customers is important as this
will encourage customer segments and can lead to more customers in the upcoming strategy.
Customer relationship is directly focused on providing value proposition to the customer and
encouraging sales volume of the products with innovative measures. The business objectives are
connected with the element of expansion of business and considering the aspects of business
strategies that are linked with the business components strategically. Each component is linked
with other that satisfies the business objectives.
Critical success factors managed during execution of the idea
The critical success factors that are to be managed during execution of the idea reflects to ADAS
Advanced Driver Assistance System that involve the major marketing strategy. This is the

BUSINESS MODEL CANVAS 6
critical success factor that has to be kept in mind for the manager and the team while building the
objectives of the business (Colombo, Massimo & Grilli, 2010). There is an advanced version of
considering automated car for people who not need a driver and do not have time to drive. The
HD cameras on the sides of the car would ensure that there are no chance of accidents and a
person can drive car with driverless function (Battistella, Biotto & De, Alberto, 2012). This is a
real time processing activity that needs to make sure about the systems and latency in the
business. Considering the importance of company’s authority and responsibility, driverless cars
can be the major impact system thereby efforts to consider this strategy need to be kept in mind
while executing the idea.
Identification of critical risk and assumptions
There are downside risk that are associated with the business innovation and strategic means of
considering the big opportunity for the people. The big claims that the business has made can be
dangerous while focusing on driverless cars (Kessler & Stephan, 2013). With the innovative
strategy of HD mapping and driverless car may lead to a danger of activity that perceives
consistent and future transport system. there are risks and challenges in the business that assure
the business goals and considers that there may be loss of jobs due to driverless cars. The
livelihood of people and employment opportunity affects the business decision that is taken with
proper mapping and localizing the idea in terms of autonomous car and relative risk strategy
(Liedtka, 2018). Considering the impact of business, there are several barriers that can be
relatively important to be studied such as large expenditure needed in making the innovative
strategy for driverless cars with risk and challenges.
Evaluation of overall feasibility of the idea
Feasibility analysis considers how feasible is the idea while considering its potential (Brown and
Wyatt, 2015). The feasibility analysis considers the importance of overall assessment of an
organization. While focusing on the analysis from part 1 to part 5, the overall success of the
business idea is strongly appreciated.
Strength of the business idea
Activity Low potential Moderate potential High potential

BUSINESS MODEL CANVAS 7
Extent of the idea Strong
Entry in the market Timely
Customer satisfaction High
Industry related issues
Activity Low potential Moderate potential High potential
Competitors Moderate
Industry life cycle Low
Industry operating
margins
Moderate
Importance of
products
High
Target market and customer related issues
Activity Low potential Moderate potential High potential
Identifying target
market
Moderately
Ability to create
barriers
Low
Growth potential for
target market
High
Founder related issues
Activity Low potential Moderate potential High potential
Founder experience Moderate
Founders skills High
Meets the personal
goals
Strong

BUSINESS MODEL CANVAS 8
Financial issues
Activity Low potential Moderate potential High potential
Initial capital
investment
High
Time to break even Two years or more
Financial performance High
Overall potential
Part 1- Strength of business High
Part 2- Industry related issues Moderate
Part 3- Target market High
Part 4- Founder related issues Low
Part 5- Financial issues Low
Overall assessment High potential to meet the demand

BUSINESS MODEL CANVAS 9
References
Abdelkafi, N., Makhotin, S., Posselt, T. (2013) “Business model innovations for electric mobility
– What can be learned from Existing Business Model Patterns?”, International Journal of
Innovation Management, 17 (1), 1-41
Bertoncello, M. & Wee, D. (2015) “Ten ways autonomous driving could redefine the automotive
world” McKinsey Consulting.
Bohnsack, R., Pinkse, J. And Kolk, A. (2014) Business models for sustainable technologies:
Exploring business model evolution in the case of electric vehicles. Research Policy,
Elsevier, 2014, 43 (2), pp.284-300.
Battistella, C, Biotto, G & De T, Alberto F. (2012). From design driven innovation to meaning
strategy. Management Decision, 50 (4), 718-743.
Brown, T, and Wyatt, J., (2015). Design Thinking for social innovation. Annual Review of
Policy Design 3 (1), 1-10.
Colombo, Massimo G., and Grilli, Luca (2010). On growth drivers of high-tech start-ups:
Exploring the role of founders' human capital and venture capital. Journal of Business
Venturing 25 (6), 610-626.
Chesbrough, H. (2010) "Business Model Innovation: Opportunities and Barriers" Long Range
Planning 43, 354-363.
Duncan M (2011) “The cost saving potential of Carsharing in a U.S. context”. Transportation
38(2): 363-382
Kent, J.L. and Dowling, R. (2013) “Puncturing automobility? Carsharing Practices”, Journal of
Transport Geography 32, 86-92.
Kessler, T. and Stephan, M. (2013) “Service transition in the automotive industry”, Int. J.
Automotive Technology and Management, Vol. 13, No. 3, pp.237–256.

BUSINESS MODEL CANVAS 10
Karatas O, M., (2014). Understanding entrepreneurship: Challenging dominant perspectives and
theorizing entrepreneurship through new post positivist epistemologies. Journal of Small
Business Management 52 (4), 589-593.
Liedtka, L., (2018). Why design thinking works: It addresses the biases and behaviors that
hamper innovation. Harvard Business Review, 96(5), 72-79.

BUSINESS MODEL CANVAS 11
Appendix
Appendix 1: DeepMap Business Model Canvas
Key
partners
Different
groups of
business
BAIC group
Nvidia GPU
venture
Partners
Stakeholders
Key
activities
Mapping
and
location
strategically
Value
propositions
To be a leader in
building
autonomous car
with HD
mapping
Customer
relationships
Sophistication
Safety services
Customer
segments
Businessmen
Travelers
Individuals
Key
resources
Hardware
and software
products and
services
Self-driving
technologies
Channels
Points of
distribution
Website of the
company
Cost structure
Research and development expense for
HD mapping
Revenue stream
Sales volume increase

BUSINESS MODEL CANVAS 12
Legal cost
Technological cost for the automated cars
Licensing
Robot car