MGMT20143 Assignment 2: Business Model Canvas of SkyCiv

Desklib provides solved assignments and past papers to help students succeed.

Central Queensland University, Australia
Term – 2019
MGMT20143 ASSIGNMENT 2
Unit Coordinator:
Lecturer:
Student Name:
Student ID:
1

Table of Contents
Introduction......................................................................................................................................3
Current issues in the existing business model canvas.....................................................................4
Benefits to customers and develop changes in BMC......................................................................5
Develop Key interrelationships.......................................................................................................7
The key success factor for proposal.................................................................................................8
Assumptions and Critical Risks for New Business Model..............................................................9
Overall feasibility of an idea..........................................................................................................10
Conclusion.....................................................................................................................................11
References......................................................................................................................................12
2

Introduction
The assignment is based on some innovative ideas that help in enhancing the performance and
develop market growth of the company by identifying the issues and overcome efficiently. Here,
the report derives on SkyCiv Company which is one of the best software development company
established in Australia (SkyCiv, 2019). The assignment helps in deriving some critical issues in
the current business model canvas which can create a negative impact on the performance of the
company and may develop some critical challenges. The report recommended some essential
changes in the essential elements of the business model canvas structure of SkyCiv Company to
manage and control all the operational activities inappropriate way.
3

As it is analysed earlier that SkyCiv Company is one of the best developers in software which
offers engaging software and programmes for engineers, such software can be used in multiple
ways. The company was established in 2015 and at present company has already built its
effective customer segment in the overall market and now it is planning to develop and extend its
business at the global level by which it can offer its different smart and artificial software
globally and can accomplish its target (SkyCiv, 2019).
Current issues in the existing business model canvas
There are some critical issues which are continuously hampering the performance of the
company and preventing the company to reach its specific goals. The major issues which are
present in the business model canvas of SkyCiv Company are poor human resource
management due to which it fails in accessing and transform information quickly. Due to poor
human resource management, the company accomplishes its task by consuming more time which
leads to more costly and investment of more resources. This also creates a negative impact on the
financial and economic growth of the company.
Along with this, another issue which is faced by the company is its channels are facing failures
in providing its services in an effective manner due to which company has to go with the time-
consuming process in targeting the market. Lack of connectivity with channels leads to failures
in accomplishing market objectives. The main motive of every company is to target the market
and to accomplish market objectives, but the company fails in providing quality of services to its
customer by which it is reducing its sustainability power.
This issue should be analysed effectively and the company should develop some effective
changes in its present business model canvas (SkyCiv, 2019).
4

Benefits to customers and develop changes in BMC
The essential object of the company is to provide quality and timely services which not only
satisfy the customers but also help in increasing the effective customer segment and develop
customer relationship in the market. For extending the market at the global level company has to
adopt some specific changes in its business model canvas which will develop customer
satisfaction and customer retention rates (D'Souza, 2013). Here, below some essential changes
are recommended in the business model canvas of SkyCiv Company:
Key partners
Sam Carigliano and
Paul Comino
Key activities
Develop software
with the use of
artificial intelligence
and develop
innovative changes in
the existing system.
Provide resources
which help in
accomplishing the
task on time.
Value proposition
It offers the unique
combination of
cutting edge with
the product and
customized and
personalised
customer services.
Customers
segments
By providing
technical
software which
is initiated with
better artificial
intelligence.
Customer
relationship
To offer high
technology
software to
engineers which
would innovate
and generate a
quality of design
in their work.
Key sources
Develop effective
human resources
management,
Artificial technical
resources,
Channels
Dual and single
distributive
channels,
Website and
domain
developers,
5

Financial resources Mobile
applications
Cost structure
Profit advantages
The structure according to customer service
Constant and variable cost
Economies of sale
Revenue stream
Sales of goods,
Advertising, sponsoring and subscription fees
By above some changes in business model canvas, the SkyCiv Company can amend these
changes and can enhance its performance. The major lacking part is human resource
management which can be developed by providing them proper training and development to
them, such practices also develop better communication process which also helps in taking
effective decision making in the organisation. So the new innovative business model should be
adopted by SkyCiv Company.
6

Develop Key interrelationships
The essential aspect is to develop effective customer relationship and customer segment in the
market which helps in extending the market of the company at a global level. The main motive
of the company is to develop and provide designing software to engineers which help them in
their working aspects ineffective manner, such elements help in accomplishing the target on time
in an effective manner. The key interrelations can be developed by performing some effective
methods, for which the company has to identify the problems which are creating challenges for
companies. Customer satisfaction also develops effective customer based which help in
enhancing the market position of the company. Sometime in meeting the objectives and
requirements of the customer, the company fails in developing an effective budget which leads to
several loses in the market. In the context of overcome such problems company has to analyse
the requirement of resource in developing the software and has to make an effective budget
which helps in accomplishing the targets and provide satisfaction to the customers (SkyCiv,
2019).
The company should make more customer segments with the help of channels such as dual
distribution channels, direct channels, and indirect channels, these channels help in developing
more customers in the market through which company can accomplish its target and can extend
its market at the global level by developing a strong base of customer. For expanding the market
at an international level, the company has to provide its software to engineers at low rates which
enhance their engagement towards its services and develop tough competition in the new market.
In such ways, SkyCiv Company can develop its key interrelations and can accomplish its
objectives (Netland, 2016).
7

The key success factor for the proposal
The key success factors for the proposal is the advanced technology which is used in developing
the software for engineers. The use of advanced technology leads to the better acknowledgement
of processors and systems which are used to design software. Such uses of technology always
help in accomplish the target by satisfying the customers. Proper utilisation of every resource is
also lead to one of the essential key factors of SkyCiv Company (Netland, 2016).
It is the responsibilities of authorities of the company to identify all the essential aspects and take
an effective decision quickly. It is necessary to provide proper training, learning, and
development programmes to members of the company which help in enhancing the performance
of human resource management. Effective human resource management leads to enhance the
performance of all other operational activities. Along with this, the company has to develop
some essential techniques which help in regular updating of systems of the organisation through
which it can maintain the quality of the service for its customers in the market.
8

Assumptions and Critical Risks for New Business Model
The new innovative changes which are proposed above are done in the market consideration and
position of the company in the market. Along with this such assumptions are done on the basis of
market evaluation and financial growth of the company in the market. These new strategies and
changes should be implemented in the organisation for effective performance, but there are
several risk elements which are present in the business model canvas of Company (Dudin, et.al.,
2017). These risk factors can ruin the overall performance of the organisation and may lead to a
decrease in the financial and market growth in the market. Some of the major risks are technical
system failures, failures of the information system, and failures of the Enterprise system
(SkyCiv, 2019). These risk should be continuously identified by the company and should analyse
their impact on performance. By analysing the impact the company can develop and implement
some effective strategies which help in overcoming such risk factors (Netland, 2016).
These critical risk should be overcome by developing the performance of the company and by
developing effective management in operational activities.
9

Overall feasibility of an idea
Risk identification Risk potential Suggestions to control risk
potential
Poor human resource
management
High Provide proper training and
development programmes
may help in increasing the
performance of human
resource management.
Technical Failures Moderate Proper functioning of every
system may reduce the
chances of technical failures.
Failures of the information
system
Moderate Proper functioning of every
system may provide realistic
information in regards to
operational activities and
develop an effective
information system.
The purchasing power of
customer
Moderate Quality and timely services
may help in engaging more
customer to avail more
services.
The decrease in financial
growth
High Proper analysis of
environmental and market
changes may help in proper
functioning and analysis of
budget (Netland, 2016).
Overall feasibility: The overall feasibility of business potential idea can be determined as
moderate.
10

Conclusion
From the above assessment report, it can be concluded that the proposed business model canvas
may help in increasing the efficiency and performance of SkyCiv Company and help in reducing
all the issues and overcome them in an effective manner. All recommended strategies and
techniques should be implemented and adapt in an appropriate way to accomplish goals timely
and effectively.
11

References
 Ashta, A., & Biot‐Paquerot, G. (2018). FinTech evolution: Strategic value management
issues in a fast-changing industry. Strategic Change, 27(4), 301-311.
 Bocken, N. M., de Pauw, I., Bakker, C., & van der Grinten, B. (2016). Product design
and business model strategies for a circular economy. Journal of Industrial and
Production Engineering, 33(5), 308-320.
 Daugherty, P., Bolumole, Y., & Grawe, S. (2019). The new age of customer impatience:
An agenda for reawakening logistics customer service research. International Journal of
Physical Distribution & Logistics Management, 49(1), 4-32.
 D'Souza, Austin. (2013). Business Model Canvas. 2013.
 Dudin, M., Reshetov, K., Mysachenko, V., Mironova, N., & Divnenko, O. (2017).
"Green Technology" and Renewable Energy in the System of the Steel Industry in
Europe. International Journal of Energy Economics and Policy, 7(2), 310-315.
 Joyce, & Paquin. (2016). The triple-layered business model canvas: A tool to design
more sustainable business models. Journal of Cleaner Production,135, 1474-1486.
 Netland, T. (2016). Critical success factors for implementing lean production: The effect
of contingencies. International Journal of Production Research, 54(8), 2433-2448.
 SkyCiv, (2019). SkyCiv. Retrieve from : https://skyciv.com/about/
12