Volume 1, Issue 6, July 2020 E-ISSN : 2686-522X, P-ISSN : 2686-5211

DESIGNING BUSINESS CANVAS MODEL AND ANALYSIS BUSINESS IN

WARUNG DIMSUM

Kartika Nurhayat1
1)
Universitas Mercu Buana, Jakarta, Indonesia

ARTICLE INFORMATION Abstract: The development of culinary business is

Received: 17th May 2020 increasing in Indonesia, especially in big cities,
Revised: 20th June 2020 making promising business opportunities. Warung
Issued: 19th July 2020 dimsum are used as research objects for the
application of Business Model Canvas. The research
Corresponding author: method uses quantitative descriptive. Data collection
Kartika Nurhayat is done by interview. The results of the interview
E-mail: show that the Key Activity element is the strongest
[email protected] in the Warung Dimsum. Suggestion from research is
that there is a need to develop channel elements to
expand sales.

Keywords: Business Model. Business Model

Canvas, Culinary

DOI:10.31933/DIJMS

INTRODUCTION
The culinary business is growing rapidly in Indonesia because food and beverages are
the most basic needs, food and beverages needed by humans to survive and carry out
activities. Food and beverage needs continue to increase along with population growth,
especially in big cities in Indonesia. Culinary has become a lifestyle of the community
because of the growing development of innovation in food and beverage products. Asosiasi
Perusahaan Jasaboga Indonesia (APJI) also played a role in achieving the growth of the food
and beverage industry. This food and beverage sector, is able to provide the highest
contribution with growth of 12.7% in 2018. (Tridhendrawan, 2019)

Continued growth in the food industry making the culinary business provide business
opportunities for the community. Culinary business opportunities have a pretty good prospect
and are easier to run because it is a basic human need. entrepeneur must take advantage of the
lifestyle of the community who are like to gather with friends or family at the Restaurant or

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Cafe. Business is indeed much in demand by the community because it has its own
satisfaction in managing it. If the business can be run well it will generate substantial income
and can provide jobs for others. But people who want to start a business must know the basic
of a business to facilitate the business.

The researcher chooses Warung Dimsum to be the object of research. Warung Dinsum is one
of UKM in Bandung which is engaged in food selling dimsum. Warung Dinsum has
promising business opportunities but the business model has not yet been implemented as
long as the business is initiated. The business model is important in pioneering an effort to be
able to explain about the business with the aim that it can consider changes for the progress
of the business (Daryanto, 2016). The use of the business model that will be applied will be
guided by the canvas business model developed by Osterwalder.

LITERATURE REVIEW
Business Model
Business development is growing rapidly, but most people are not familiar about the
basic of a business. The business model is important in pioneering an effort to be able to
explain about the business with the aim that it can consider changes for the progress of the
business (Daryanto, 2016). Talk of business models blossomed in the 1990s (Amit and Zott,
2001), and the concept has continued to gain popularity ever since (Ghaziani and Ventresca,
2005; Zott et al., 2011). The purpose of a business model is to describe the general logic of
the business including business value, the customer segment, organisation and financing
(Bouwmann et al. 2008). Business models describe what kind of value a business is
delivering and how this is generated and communicated to customers. Teece (2010, p. 191)
The concept of a business model must be simple, relevant, and easy to understand intuitively
without the intention of simplifying very complex company functions. (Osterwalder &
Pigneur, 2010).

Business Model Canvas

Business Model Canvas is a business model of a logical picture of how an
organization creates, delivers and captures value (Osterwalder, 2010). According to
Cunningham, Ian, Graham Dawes and Ben Bennet(2017), business strategies implemented by
companies will not be able to run optimally if they do not base on the assessment and
formulation of the right business model. Inspire business success throughout the world and
receive profits from companies using Canvas Model Business. According to Aaker(2018), it
was identified that Business Model Canvas is a tool to support the development of intelligent
service concepts to customers. Business Model Canvas can be used for all business sectors
and can assist in the process of analyzing business needs, weaknesses and strengths.

The business model of Canvas can be explained through nine fundamental elements
that show how to think about how organizations generate profits (Osterwalder and Pigneur,
2009). The Business Model Canvas is very concise, easy to understand and quite interesting.

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The concept of the Canvas business model consists of nine fundamental elements that show
the logic of developing profits for the company. These elements are Customer Segment,
Value Proposition, Channels, Customer Relationship, Revenue Stream, Key Resources, Key
Activities, Key Partners, Cost Structure. (Osterwalder and Pigneur, 2010).

1. Customer Segment
Customer segments are distinctions of human groups or organizations to determine their
objectives. To provide satisfaction to customers, segmentation is needed so that they can
focus more on developing business strategies for specific customer segments according to
their characteristics, habits and needs. (Osterwalder and Pigneur, 2010) Customer is an
important element in all businesses. Businesses are recommended to conduct an analysis of
consumer needs which are divided into several categories. According to Osterwalder and
Pigneur(2011), the customer segment can be categorized into: mass market, niche market,
segmented, diversified, multilateral platform or multilateral markets.

2. Value Proposition
Value Propositions are a variety of products and services that will create value for certain
segment customers. Product quality is a factor to support purchasing decisions, (Brata,
2017).The main reason customers switch one product or service to another is whether they
actually know which product or service solves the problem, or satisfies the primary
need.(Piñeiro, Et Al, 2017) The value of a product or service for consumers can be in the
form of price, design, product usability.

3. Channels
Channels is a medium for companies to communicate with their customers to convey a
value proposition. (Osterwalder and Pigneur, 2010) Channel has a function to increase
knowledge about products or services to consumers. Another important function is to
provide them with support after purchase. According to Osterwalder and Pigneur (2011), the
phases that permeate this component are characterized in detail in the following aspects:
knowledge, evaluation, purchase, delivery and after-sales. To take the value proposition, the
organization can choose a direct and private channel that involves sales staff, sales or own
stores.

4. Customer Relationship
Customer Relationships explains about maintaining relationships between companies and
consumers. The company must explain the type of relationship each customer segment wants
to build. Various types of relationships ranging from providing personal assistance to
individuals to each consumer, utilizing the community, or even in the form of "self-service".
(Osterwalder and Pigneur, 2010). According to Osterwalder and Pigneur(2011), these
relationships go through personal and even automated aspects. Relationships can be focused
on the following motivations: a) conquer the client; b) retain the customer and c) increase
sales.

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5. Revenue Stream
Revenue streams are income received by the company from its customers on value
propositions given by the company to customers. According to Piñeiro, Et Al, (2017), there
are two different types of revenue sources that may be in a business model, they are: a)
income transactions resulting from single payment and b) recurrent income, resulting from
the constant payment, coming from the delivery of a proposal of Value to customers or after-
sales support.

6. Key Resource
Key Resources explains the most important assets needed to make a business model
work well. Every business model requires key resources. (Osterwalder and Pigneur, 2010)
These key resources enable companies to create and offer value propositions, reach markets,
maintain relationships with customers, and earn revenue. According to Piñeiro, Et Al,
(2017), The main resources can be physical (buildings, machines, systems, points of sale and
distribution networks); (Trademarks, scientific knowledge, patents, registers, partnerships
and database); Human beings (people and their abilities); And financial (money, credit lines,
as well as crucial actions to hire employees).

7. Key Activities
Key Activities describe the most important things that a company must do to make its
business model work.(Osterwalder and Pigneur, 2010) According to Piñeiro, Et Al, (2017),
Usually, these activities fall into one of the three groups presented below: a) production:
relative to the product in a manufacturing; b) problem solving: relate to services provided
and c) platform / network: mainly related to business on the internet.

8. Key Partners
Key partnerships describe the network of suppliers and partners that make business
models work well. Companies form partnerships for various reasons, and partnerships form
the basis of many business models. Companies create alliances to optimize their business
models, reduce risk, or obtain resources. (Osterwalder and Pigneur, 2010) Some types of
partnerships are punctuated by Osterwalder and Pigneur (2011) and are distinguished in four
different types that are: strategic alliances between non-competitors; Competition (strategic
partnerships between competitors); Joint ventures to develop new business; And the buyer-
supplier relationship in order to ensure reliable supplies. Piñeiro, Et Al (2017)

9. Cost Structure
The Cost Structure describes all costs incurred for operating a business model. Cost
structure describes the most important costs that occur when operating in a particular
business model. Creating and delivering value, maintaining customer relationships, and
generating revenue are all charged. (Osterwalder and Pigneur, 2010)

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Pictire 1. Business Model Canvas Source: Osterwalder & Pigneur (2010)

RESEARCH METHODS
The research method used is quantitative descriptive which method aims to solve
problems in the company today. According to Sugiyono (2008), descriptive is research
conducted to determine the value of an independent variable, either one or more variables
(independent) without making comparisons or connecting with other variables.

In gathering information and data for designing a canvas model business, the reseacher
uses the interview method with the co-owner. After the initial business model is discussed in
the interview and evaluated in the interview with the parties discussed earlier, the canvas
business model will be rearranged in accordance with the evaluation of the interview that has
been conducted. After that, a validated canvas business model will be presented

RESULTS AND DISCUSSION

Warung Dimsum is one of UKM in Bandung which is engaged in food selling
dimsum. Warung Dimsum was first established in 2016 by selling frozen dimsum by relying
on purchases from suppliers. The development of dimsum sales is quite good and has many
orders for certain categories. This causes orders from suppliers to not be fulfilled so they
decide to produce their own dimsum. Warung dimsum also develops sales by opening shops
and opening resellers for Jabodetabek and West Java.

In describing the business model at Warung Dimsum by using the Business Model Canvas
consisting of 9 elements, namely: customer segments, value dkey partnerships, and cost
structure.

1. Customer Segment

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The customer segment targeted by Warung Dimsum is all circles. Dimsum is a food
that is loved by many people so that its segmentation is quite broad. With a variety of seafood
and non-seafood flavors make consumers easily accept these types of food. The price is very
affordable for student consumers, workers or housewives.

2. Value Proposition
In determining the value proposition in the Warung Dimsum, the results are as follows:
- Taste

Where Warung Dimsum pay attention to the taste of all the food. When Warung Dimsum
began to try food production without the help of suppliers, the experiment continued until it
produced a taste that was very popular with consumers.
- Cleanliness

Cleanliness is one of the important things in the food business. In the production process,
staff are required to use masks, gloves, production sandals and headgear so that food hygiene
is maintained.
- Fresh ingredients

Good taste does not escape from quality ingredients. Foodstuffs used by Warung Dimsum are
fresh ingredients where they are sent every morning because they are produced on the same
day.
- Product innovation

Product innovation is continuously carried out to maintain the quality of Warung Dimsum
and continue to compete with competitors. Examples of product innovation are somay
taichan, somay nori, chili oil and somay mushrooms.

3. Channels
A channel is a way for companies to convey consumer information and deliver value
propositions. In this element Warung Dimsum have several channels:
- Social media
The use of Instagram social media is a form of information to consumers. In Instagram, it can
simultaneously attract consumers because of the content provided. Production information,
new products and consumer testimonials are informed via Instagram because many people
use the Instagram application.

In online sales via Warung Dimsum collaborating with gofood and grabfood to facilitate
consumers in ordering food because the application is widely used by consumers. For other
communication can be done via whatsapp, booking via chat is more widely used for reseller
bookings because in large numbers.
- Shipping expedition

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In this channel, shipping expeditions have a very important role for food distribution. Due to
the large number of resellers from outside Bandung, the distribution is carried out by a third
party. Resellers from Warung Dimsum come from Jabodetabek and responsible so shipping
is done by train, travel or food expedition (Paxel).

4. Customer Relationship
Relations with consumers is one of the important things that must be maintained. The
strategy undertaken by Warung Dimsum is to maintain good communication with all retail
consumers and resellers. Good service continues to be done such as continuing to maintain
the flavor of food, cleanliness and being friendly to consumers. In terms of flavors, Warung
Dimsum survey consumers about food flavors so that consumers can provide feedback and
the feedback results become input for Warung Dimsum to continue to improve.

The implementation of discount and free postage promotions is also given to consumers, the
strategy is carried out in collaboration with grabfood.

5. Revenue Stream
In a restaurant business, the type of revenue streams is transaction revenue, which means that
revenue is derived from one-time consumer payment. Consumers come to a restaurant, then
eat, and pay at the same time on the same day, no further payment or credit (Boedianto,
2015).

In this element, the source of income from Warung Dimsum is all sales from all consumers.
Consumers from Warung Dimsum are divided into 3 categories namely retail consumers,
resellers and wedding events.

6. Key Resources
In the key resource element, Warung Dimsum are divided into several parts, namely physical
assets, building assets, HR assets.
Physical assets are used to support the production and sales process of food sold by Warung
Dimsum. The milling machine is a machine for processing fresh meat to be used as a dimsum
dough, a milling machine that is used large enough so that the products produced are
sufficient to fulfill the orders of all consumers. Next is a blender that is used to smooth the
seasonings for dimsum dough and other supporting assets are freezers that are used to store
food produced from production to keep it fresh.

The building assets owned by Warung Dimsum are production houses and food stalls for
retail consumers. Where the two buildings have become personal assets of Warung Dimsum
so no rental fees are required.

HR assets (Human Resources) owned by Warung Dimsum are employees for the production
team, sales team in the store (bandung).

7. Key Activities
The key elements of Warung Dimsum carry out the following activities:

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- Research and Development

This activity is the beginning of making dimsum food. Starting from the lack of orders
obtained from suppliers so it gives an idea to produce dimsum so it does not depend on
supplier stock. Beginning to try to produce somay by continuing to experiment with flavors
so as to get flavors that are considered quite satisfactory.

Food product development continues to be done by trying to manufacture somay nori, somay
mushrooms, somay taichan and chili oil. For chilli oil flavor, the beginning of making
produces a pretty spicy taste but because consumers make a request to add spicy flavor so
that the flavor is improved by adding dried chillies so that the resulting flavor becomes very
spicy. The new flavor of chili oil makes sales increase so that the flavor continues to be
maintained.
- Purchase of raw materials

This process purchases raw materials from suppliers such as chicken, eggs, seasonings,
crabstick, and other ingredients. For fresh raw materials done every morning because when
producing dimsum must use fresh ingredients.
- Production

Where the process of making dimsum is done at the production house. Dimsum production is
carried out daily for customer orders for resellers and dimsum stalls. The results of
production in the form of frozen dimsum so that consumers can cook it at home or directly
eat at dimsum stalls.
- Sales

The next activity is selling food products to consumers. Sales are done by resellers or retail
consumers.
- Shipping

The last activity is food delivery. Where after consumers order dimsum, employees will do
the packaging process and send food via expedition,

8. Key Partners
Collaboration with partners must be maintained properly in order to expedite business
processes. Suppliers or suppliers of food raw materials are the most important partners
because Warung Dimsum are very dependent on the food raw materials sent. In maintaining
good relations with suppliers, Warung Dimsum will continue to make orders to these
suppliers and make payments on time so that raw materials sent always receive priority.

Other collaboration is carried out with promotional media that play a role in product branding
and building engagement with consumers. The media is done by advertising on Instagram
and working with photographers to make product photos.

9. Cost Structure

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The cost structure of a Warung Dimsum is as follows:

- Production material
Costs used to buy raw materials and tools to support product production
- Operating costs
Costs used to provide wages to employees and accommodation costs.
- Marketing costs

Costs used to do product marketing by doing product photos by photographers and

advertisers on Instagram.

CONCLUSIONS AND SUGGESTIONS

Based on the results of interviews and data analysis on the business model canvas on
Warung Dimsum, the conclusions of this study are as follows:
- Of the 9 fundamental elements of the canvas business model. The most powerful element is
key activities because dimsum production is the main activity carried out to fulfill consumer
orders.

- Next is the value proposition element because the value provided already meets the needs of
consumers.

- The element that needs to be evaluated is the channel element because marketing has not
been done in all media, and can still be developed again.
Suggestions that writers can give to this research are :

- It is necessary to add marketing media such as market place (Shoppe / Tokopedia) because
it can increase sales turnover and product branding to a wider market

- Resellers from Warung Dimsum are from Jabodetabek and the answer is because the
delivery of frozen food products cannot be more than 12 hours outside the freezer. Warung
Dimsum can use dry ice for product packaging so consumers outside the island can order the
product

- To increase consumer and product branding, Warung Dimsum are better off opening
branches in other cities such as Jakarta

- There needs to be a comparison of business models with other business models so that they
can find business models and better knowledge for the future.

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