Week 4 - Modeling Your Business

I work for a Digital Signage product. My company sells this product to casino operators world-wide. Casino operators use this product to show advertising and promote amenities via digital bill-boards across their casino property.

Below is a model for this business (click to enlarge).

The key value proposition of our product is that it offers a powerful and easy way for casinos to reach out to its patrons. The Key Activities are to develop the software product, support and service customers. Most of the revenue is from software and maintenance. Hardware revenue is good, but comes at a cost as we buy from vendors and resell hardware.

After using this canvas, I realized that the potential market opportunity is huge. We have tapped only a very small percentage of this market. The reason for this is our reliance on direct selling. If we can use channel sales, we can significantly increase our reach especially in overseas markets where our sales presence is very limited. Under 'Customer Relationships' I discovered that 'Trade-shows and events' are a significant way to reach out to potential customers especially in overseas markets. We do not participate in several trade-shows that are important places where our potential customers shop for digital signage products.

The results chart on the canvas shows a potential revenue of $40 million assuming a market size of 5000 potential casinos wold-wide and 5% of that market. This is a useful tool to show value of my product to senior management and get their buy in for expansion plans.