MGMT20143 Assignment 1: Business Model Deconstruction of SkyCiv

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MGMT20143
Assignment 1: Business Model
Deconstruction
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Table of Contents
Introduction......................................................................................................................................3
Description of the Business.............................................................................................................4
Business Model Canvas...................................................................................................................6
Key Relationships............................................................................................................................8
Critical Success Factors.................................................................................................................10
Downside Risk...............................................................................................................................11
Recommended Changes.................................................................................................................12
Conclusion.....................................................................................................................................13
References......................................................................................................................................14
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Introduction
The business report is based on the Business Model Deconstruction with the context of SkyCiv
which is an Australian company. The report demonstrates and explains the business model of the
organization and the different critical factors that help in making the business competitive and
sustainable within the market. The Canvas business model helps in accomplishing sustainable
success with a high level of profitability within the business. The report includes an analysis of
the business and innovation in which they operate. Besides this, the challenges and
accomplishments of a new startup are also discussed regarding the SkyCiv.
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Description of the Business
SkyCiv is an Australian company that offers a wide range of cloud structural analysis with the
design software for the engineers. The company was established on 1 February 2015. The
company is offering new and unique online structural software that analyzes and focuses more
on becoming user-friendly. This software can be used as structural and mechanical calculators.
This software is so easy to use and powerful that help engineers to work more effectively and
efficiently with full professional support. The software offers structural Analysis, Powerful 3D
Rendering and Custom PDF Reporting, Linear, Plates, Buckling, P-Delta and Cable Analysis,
Section Builder with US, UK, Canadian and Australian Libraries, Integrated Design Software
such as AISC, EN, AS, CSA and Multiple Load Combinations from Libraries (SkyCiv, 2019).
The main of the SkyCiv is to serve and fulfill the needs of the engineers all around the world
with developing streamlined structural engineering software. The company makes a commitment
to being innovating and challenging workforce in order to save time for engineers at the time of
work progress and designs.
Figure 1: About us
[Source: SkyCiv, 2019]
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Figure 2: Rank
[Source: SkyCiv, 2019]
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Business Model Canvas
The business model canvas can be explained as the graphic representation of the different
number of variables of the business which shows the organizational values. This model can be
used as the strategy tool by the SkyCiv Company for the purpose of development of new start-up
in this competitive environment. Besides this, the business model canvas is used for analyzing
the existing business.
The Business model canvas of SkyCiv is as follows:
Figure 2: Business model canvas of SkyCiv Company
Through analyzing the above model, it has been concluded that the individual elements of the
business model canvas promote the separate and different activities of the organization while
focusing on the various capabilities. This model is having nine elements that enable the
structured conversation for the management of the organization and also develop various
strategies to carry out the crucial activities of the organization. This model also includes various
challenges which are faced by the SkyCiv Company to initiate their operation (Laing & Laing,
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2016). The nine elements of the business canvas model include Key partners, Key activities, Key
resources, Value propositions, Customer Relationships, Channels, Customer Segments, Cost
structure, and Revenue Streams. Through using this model SkyCiv Company improves its
operation by improving its strategy and performance. Due to the visual aspects, the aspects of the
companies are very clear. Through focusing on every department an organization can improve its
strategy by focusing on the value proposition and structure of the company. As SkyCiv Company
is a new startup so the business model canvas helps the organization in making their decision and
vision clear (Wang & Liang, 2017).
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Key Relationships
The different elements of the business model canvas are as follows:
Key partners: This element is important for both the startups and existing organizations that
want to create the alliances and good relationship with their partners. There is high competition
in the market and this key element help in combining the specialization and the knowledge. The
key partners of Paul Comino and Sam Carigliano of SkyCiv Company contribute valuable
relationship.
Key activities: It is important to have good knowledge about the core activities of the
organization which will further help in understanding the value proposition of the company. This
element helps in solving the problem-solving approach, quality of the products and services and
networking. The key activities of the SkyCiv Company are involved in developing software for
those engineers to save valuable time through developing unique and challenging workflow
(Wang, et. al., 2017).
Key resources: Resources are needed by the organization for performing the operation. The
resources of the organization can be understood by financial, human resources, intellectual and
physical. Intellectual resources include brand, patent, and brand whereas physical resources
include all the business equipment. The flow of fund and sources of income are included in
financial resources.
Value propositions: The value proposition is considered as the core of the company that will
help in meeting with the needs of the customers. The value proposition of SkyCiv Company is to
offer a unique and different combination of products and services to its customers. This segment
focuses on the number of products in terms of speed, delivery condition, price, and services. It
also focuses on developing the good design, improve customer experience and brand status and
provide full satisfaction (Joyce & Paquin, 2016).
Customer relationships: Customer base divides the customers into different target groups
according to their needs. SkyCiv Company cares about the value and needs of every engineer by
providing a stable customer relationship.
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Channels: These segments include different channels of sales, distribution, and communication.
The SkyCiv Company uses both the channels for delivering its products and services to its
customers. This may include online channels and off-line channels (Lewandowski, 2016).
Customer segments: The aim of the organization is to provide and deliver the product and
services to more than one customer group. The SkyCiv Company divides a large number of
people into customer segment through focusing on their specific needs and requirement. This
will help in getting a high level of satisfaction.
Cost structure: Cost structure element help in analyzing the minimum turnover of the
organization. The SkyCiv Company analyzes the cost structure through analyzing the valuable
and fixed cost, profit advantages and economies of scale (Dudin, et. al., 2015).
Revenue streams: These elements provide a clear direction of the revenue model of the
organization. The revenue streams of the SkyCiv Company are Sale of goods, Subscription fees,
and Sponsoring and advertising.
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Critical Success Factors
There are various key success factors that are responsible for making organizational successful.
The above key factors help in growing the business. These factors help the organization in
performing the success of the organization which directly results in a successful organization.
Attracting more and more customers, adopting the modern and new process and technology can
help in growing the business and company would able to gain competitive advantage. The
SkyCiv Company needs to focus on the customers by delivering the quality of products and
services with fewer amounts. The new process will help in motivating the employees of an
organization that will directly increase the operation of the company. Technology will help in
reducing the customer effort that will help in focusing on creative activities more (Toro-Jarrín,
et. al., 2016).
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Key sucess
factors
Client
Process
Technology

Downside Risk
Business risk can be explained as the possibility of the company that reduces the profit and
experience of the loss instead of taking profit. The risk in business can be increased by many
factors that may include input cost, per-unit price, sales volume, government regulation,
economic climate and high competition in the market (Dudin, et. al., 2015). As the SkyCiv
Company is a startup company that’s why it affected by four risks that are described below:
Figure 4: Type of risk
[Sources: Ovans, 2015]
Business risks: This risk of business is related to the business point of view and can threatening
the growth of the business.
Process risks: this risk of the organization is related to the performance of work of employees.
Project risks: When the employees are not able to accomplish the target effectively and
efficiently then this type of risk occurs. This may reduce the profitability of gaining the contract
(Osei-Kyei & Chan, 2015).
Product risks: Product risk is related to project risk. When the product of the company does not
perform well then this type of risk occurs.
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Recommended Changes
SkyCiv Company is a startup company so the company needs to make various changes that are
as follows:
 The SkyCiv Company needs to track the changes within the company by providing a
complete level of satisfaction to its customers.
 The company needs to use brainstorming in order to develop new and unique ideas and
managing organizational work.
 The company also needs to understand the needs of customers through creating own
model. The company can adopt the pre-sales process for increasing the sales of the
company (Netland, 2016).
 Through hiring the new talent the SkyCiv Company would able to increase the growth of
the company and provide greater understandings to their team.
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