Regardless of your company's development phase, business modeling is critical for the company to be able to establish the value to be delivered to consumers. This strategy will help determine what will be the best approach to achieving the organization's goals, such as the Canvas Business model for MSPs.
In order to contribute to the company's growth, it is essential that managers have a complete knowledge of the company's strong aspects and vulnerabilities to the competition . With so many business models available on the market, it is necessary to carefully study the best strategy for your business.
Understand better about the various types of business models:
We have prepared this complete material about canvas business modeling and all the strategies you need to achieve your business success.
What is Canvas Business Modeling?
During the structuring of a business, the delivery of value is one of the most important aspects that most generate doubts on the part of managers. This is because this value is connected to the sense of utility and satisfaction of consumer expectations and desires for the products and services that are offered.
In the case of MSPs , adding value is not just about hiring services, and it is necessary to continuously demonstrate the advantages and benefits that this consumer can obtain with the service that was hired. The value proposal of a IT service provider must take into account all the expectations that this consumer presents and what results he expects to achieve with the services offered by the company.
Canvas business modeling consists of a key tool for viewing possible strategies and determining the best approach to the company. Based on this information, this strategy can help determine the value that will be delivered to consumers and establish the competitive differentials of the business.
Within MSPs, this modeling contributes to the construction of a business relationship between the company and its consumer. In this sense, business modeling will contribute to process management, from value creation to continuous delivery to consumers, based on the creation, delivery and capture of value to the customer.
The canvas business model for MSPs should take into consideration which products and services are offered and how these features can stand out in the market for competition. For this to be possible, it is essential to identify the consumer segment taking into account all the price, response, reliability and experience attributes.
How is the IT scenario for the MSPs
According to a survey conducted by Addee , more than 50%of technology and IT services companies found an increase in revenues in 2022, reflecting how the growth of the technology sector and MSPs has been gaining prominence in the market.
The advancement of technology and the transformations experienced in the current technology market have brought to the IT sector a revolution in the way activities and products are offered. While traditionally technology companies were based on a reactive approach, it is currently expected to stop IT companies just resolve incidents and start working preventively.
This means that MSPs need to act through management, diagnosis and resource optimization. This is only possible by analyzing and identifying the problems that can somehow affect the resources offered.
Through this preventive approach, MSPs can avoid resource unavailability and ensure increasingly optimized and safe tools for their customers . This strategy will contribute to the improvement of the company's value perception, establishing an essential competitive differential in the face of growing competitiveness.
More than just offering quality products and services, modern companies need to establish a proactive culture for their consumer to glimpse the true value and benefits of the contracted company along the journey.
What is the importance of customer segmentation for IT service providers?
To be able to deliver the products and services expected by consumers, it is essential that MSP determines which customer segment . This segmentation takes into account the niche, revenue, size, amount of employees, expectations and business needs.
Once this customer segmentation is established, IT service providers can adopt more effective and intelligent achievement strategies, being the growth and appreciation of their business . Considering that MSPs operate in a market niche aimed at medium and small companies that do not have internal IT areas, customer segmentation can be done through two approaches:
- Focus on companies that present 50 to 200 employees without a traditional IT sector;
- Focus on serving large companies, with great technological need.
With this, IT service providers will be able to customize your service and offer specific products and services for the segmentation chosen. In this sense, it is necessary to study and evaluate the market, according to some factors:
Niche
Determining the market niche contributes to the company's operational strategy according to the industry and the focus of the business. The entire business strategy of the business will be developed to personally meet the chosen market , such as industrial sector, real estate, educational institutions, among others.
Region
Location can also make all the difference within the strategy established by Canvas Business Modeling. Depending on your business focus, regionalization helps to reach potential consumers more assertively.
Need
Knowing what your consumer expects is fundamental to understand the need and deliver the expected value. Market evaluation will help determine consumers' needs and ensure that your business is prepared to meet this demand.
How to achieve more customers through attraction channels?
The customer attraction strategy is one of the most important steps for companies that want to stand out in the market and achieve their growth. This aspect refers to the chosen way to make products and services reach even potential customers and can happen through direct selling or through partners.
The definition of these channels should take into account the presence of customers, that is: in which channel platforms these consumers can be found and which of these channels can deliver the best results with the highest cost-benefit. In the case of IT service providers, prospecting campaigns should consider the entire customer journey , from the first contact with the product or service to the customer loyalty after the acquisition.
Relationship with customers: fundamental aspect in the canvas business model for MSPs
Establishing a good relationship with your customers is a key step within business that want to add more reliability to the business. The relationship strategy should be developed according to the customer's journey phase , starting with the acquisition and concluding in the sales growth phase.
The better the reputation and reliability of IT service providers on the market, the better the results obtained with their relationship strategy. Among the main measures that should be considered within this process are:
- Establish a closer relationship with the consumer , maintaining frequent contact without being inconvenient or evasive after the contract is close;
- Demonstration of services value through consolidated data on the results;
- Measurement of satisfaction levels through satisfaction research;
- Measurement of the use of services and consumer engagement.
What are the fundamental activities for MSPs
The scope of activity will help achieve good results and ensure that the established business model can achieve success. In addition to offering quality products and services in the market, MSPs also need to offer a value proposition and a quality relationship.
In this sense, the key activities that are offered by IT service providers should consider the expectations of this consumer and the needs they present before the contracted services, such as:
- Emergency services with possibility of separate hiring;
- Optional services a la carte;
- Managed service;
- And personalized services.
Within a canvas business modeling strategy, to be able to add even more value to what is offered , companies need to establish a harmonious relationship between consumer needs and ways to meet these expectations. You need to be prepared to achieve success and be able to add value to the business.
MSPS and IT service providers
Market competitiveness has made it essential to create strategic partnerships to achieve more and more consumers. Establishing partnerships is a factor that contributes to your business growth and helps achieve the established objectives.
Relying on reliable and quality suppliers is critical for IT service providers to manage complete and standardized solutions to customers. The selection of these partnerships should take into account several factors, such as:
- Reputation;
- Level of knowledge;
- Service SLA;
- Customers' need;
- Cost-benefit;
- Flexibility.
Cost structure
The path established through Canvas Business Modeling takes into account the costs necessary for a MSP to be able to stay in the market and achieve success. This evaluation will help to understand fixed and variable expenses and also determine the possibility of quality care.
This analysis needs to raise some fundamental questions, such as key resources as necessary expense, the costs generated by the activities and whether the value proposition is focused on price or added value. This assessment will help determine:
- Fixed costs: constant commercial expenses such as rent, taxes and employees' payments.
- Variable Costs: Expenses that may change according to the time or performance of the company.
Canvas Business Model for MSPS
Applying the Canvas Business Model for MSPs is an efficient and intelligent process that helps contribute to the advancement and success of your business. The elaboration of this model depends on three fundamental steps:
- Development of ideas according to the consumer's journey;
- Brainstorm meetings to share ideas and strategies;
- Development of the first version and process of continuous improvement.
Based on the content covered above, it is understood that for the development of the canvas business model for MSPs, one must consider::
- Partner Network;
- Key activities;
- Value proposal;
- Relationship with customers;
- Client segmentation;
- Cost structure;
- Revenue flow.
This structuring is ideal for businesses that want to optimize their activities and ensure that the consumer can view the value of the brand and the services that are offered. Customer segmentation and process standardization is critical to attracting the right consumers to the services that are offered.
Applying canvas business modeling is not complex and can add many benefits to your business. Investing in a complete modeling strategy will help your business set your market value and be able to deliver to your consumers increasingly complete and intelligent.
