Steve's Small Biz Podcast

Steve's Small Biz Podcast


Key Activities

August 16, 2019

According to Strategyzer, when it comes to the Business Model Canvas, key
activities are any activities that your business is engaged in for the primary
purpose of making a profit. Business activities include operations, marketing,
production, problem-solving, and administration.

Your key activities will change depending upon the type of business you
operate. If you are a web developer, User Interface (UI) design and coding will
be key activities. On the other hand, if you are a business coach, problem-solving
and customer service are key activities.

While your means of production, problem-solving, and platforms or networks
are important considerations when defining your key activities, I take a
different approach when mentoring clients about the role of the key activities
block.

As with all the blocks associated with the business model canvas, it is
about looking for ways to find your uncontested blue ocean to
do business in by evaluating your business model from a cost, value
proposition, and customer perspective. Therefore, I believe the ultimate goal
when defining your key activities is to help you discover what activities you
need to address in order to differentiate your product or service from your
competition, so that you can effectively deliver your Value Proposition.

The process I advocate when it comes to assessing the key activities of your
business is to look at the related business model canvas blocks. While any of
the blocks are fair game when looking for key activities, I believe there are
two blocks that require your special attention. Since key activities are primarily
a bridge between your value proposition and your customer segment, you will
want to look long and hard at your channels and customer relationships when
coming up with your key activities.

For example, if we look at Amazon’s business model, a key activity that makes them different from brick and mortar retailers like Walmart is related to the evaluation phase of the channels block. By collecting and displaying product review information, Amazon assists the buyer in making a decision among similar products. Since it is not possible to read product reviews at Walmart, collecting and displaying review data is a key activity that helps differentiate Amazon from many of its competitors.

Another example is when it comes to delivery, two-day,  next-day Prime delivery and even drone
deliveries are shortening the time between purchasing and receiving the product
in your hands, making the delivery phase of its channels a key activity to
differentiate Amazon from other online e-commerce sites.

The 5 Channel Phases

When it comes to the five phases that make up the channel block of the
business model canvas, here are a few sample questions you will want to address
when developing the key activities block.

Awareness – How can you create awareness that you have something to
sell? Will a key activity involve being accepted as a speaker at your industry’s
annual trade show?

Evaluate – How can you make it possible for...