PRACTICAL REPORT

INDUSTRIAL ORGANIZATION DESIGN

BUSINESS MODEL MODULE

1. Dina Farhanah
Name : Date Lab : 24 May 2018
2. Rahma Alrosdi
1. 16522123
NIM : Day Lab : Thursday
2. 16522042
Assistant Code : IPO59 Due Date :
Assessment Criteria Yogyakarta, ............ 2018
Format : (max. 10) Assistant
Content : (max. 50)
Analysis : (max. 40)

TOTAL :
(Vicki Ismi Caneca)

INNOVATION AND ORGANIZATION DESIGN LABORATORY

INDUSTRIAL ENGINEERING DEPARTMENT
FACULTY OF INDUSTRIAL TECHNOLOGY
ISLAMIC UNIVERSITY OF INDONESIA
2018
 CHAPTER III

BUSINESS MODEL

3.1 Practicum Objective

1. Identify the company’s business opportunities
2. Create the business model of a company
3.2 Organizational Structure

3.2.1 Customer Segment

Customer segmentation is the practice of dividing a customer base into
groups of individuals that are similar in specific ways relevant to
marketing, such as age, gender, interests and spending habits. UD material
is an enterprise that sell door and frame. The table below is the list of
criteria of UD material customer segment :
Geographic Location of customer is in Yogyakarta and
surrounding area

Demographic Age: 20-55

Gender: Male and female
Occcupation: -

Psychographic Customers who prefer to use door and frame made

of wood

3.2.2 Value Proposition

Value proposition is a clear, simple statement of the benefits, both tangible
and intangible, that the company will provide, along with the approximate
price it will charge each customer segment for those benefits. The value
proportion is the product which is door and frame. Besides, customer can
customize the design by themselves. The price is also competitive
 compared to other places, because it depends on the design and materials
choosed by customers itself.
3.2.3 Channels
Channels refers to how we deliver the product to the customer. The
enterprise deliver the product directly to the customer by using car.
3.2.4 Customer Relationship
Work done by a company or organization to get, add the number of
consumers and to maintain to keep consumer loyal to us is to create good
relationships with the customer. The owner of enterprise that research was
conducted said that they did not do specific thing to built relationship with
customer, they just make sure they give their best service and product to
make the customer satisfy. Therefore, customers will not be disappointed
and do not hesitate to use services from this enterprise again.
3.2.5 Revenue Stream
Revenue Streams are the amount of money a business earns from thesale
of goods or provision of services.In UD Material enterprise, the revenue
streams come from the selling activity of the furniture.
3.2.6 Key Resources
Key resources is the building block describing the most important assets
needed to make a business model work. There are two kinds of key
resources in UD Material enterprise which are physical and human. The
physical assests of this enterprise are the woods as the raw material and
the building as the place to execute the business. Otherwise, the human
resources of UD Material enterprise is the employees that produce the
materials.
3.2.7 Key Activities
Key activities is the most important tasks a company must carry out in
order to fulfill its business purpose. UD Material enterprise is the
manufacturing based enterprise. The key activities of this enterprise is
production activity which contains of cutting, assembly and finishing
activities.
3.2.8 Key Partnership
Key partnership is the network of suppliers and partners that make the
business model work. Key partnership of UD material is a suppliers as the
 party that provide raw material which is woods. There two suppliers that
do a cooperation with this enterprise.
3.2.9 Cost Structure
Cost structure refers to the various types of expenses a business incurs,
and it is typically composed offixed and variable costs. Cost structure of
UD Material consists of building cost and machinery cost as a fixed cost.
Building cost is paid in the first time of the company built. While
machinery cost also considered as the fixed cost since it is paid only once
in the first time the machinery was bought. Besides, it also contains of
variable cost which are raw material and employee’s salary. The more
materials bought, the more money paid. Nevertheless, the more employee
hired, the more salary should paid.
Reference

Corporate Finance Institute. (2016). Revenue streams. Retrieved from

https://corporatefinanceinstitute.com/resources/knowledge/accounting/revenue-
streams/.

Corporate Finance Institute. (2016). Cost structure. Retrieved from

https://corporatefinanceinstitute.com/resources/knowledge/accounting/revenue-
streams/.

Hart, B.D. (2018). Companies & industrial reseacrh guide: key resources. Retrieved
from https://libguides.depaul.edu/businessdatabases.

Anastasia. (2015). Key activities block in business model canvas. Retrieved from
https://www.cleverism.com/key-activities-block-business-model-canvas/.

E-Business. (n.d.). Key partnerships. Retrieved from http://www.ecommerce-

digest.com/key-partnerships.html.
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