Regardless of your company's development phase, business modeling is essential for the company to be able to establish the value to be delivered to consumers. This strategy will help determine the best approach to achieving the organization's goals, as is the case with the Canvas business model for MSPs.
To be able to contribute to the company's growth, it is essential that managers have complete knowledge of the company's strengths and vulnerabilities in the face of competition . With so many business model options available on the market, it is necessary to carefully study the best strategy for your business.
Understand better about the different types of business models:
We have prepared this complete material on Canvas business modeling and all the strategies necessary to achieve success for your company.
What is Canvas business modeling?
When structuring a business, delivering value is one of the most important aspects and one that generates the most doubts on the part of managers. This is because this value is connected to the sense of usefulness and satisfaction of the consumer's expectations and desires regarding the products and services that are offered.
In the case of MSPs , adding value is not just about contracting services, it is necessary to continually demonstrate the advantages and benefits that this consumer can obtain with the service that was contracted. The value proposition of an IT service provider must take into account all the expectations that this consumer has and what results he expects to obtain with the services offered by the company.
The business modeling Canvas is a fundamental tool for visualizing possible strategies and determining the best approach for the company. Based on this information, this strategy can help determine the value that will be delivered to consumers and establish the business' competitive differentiators.
Within MSPs, this modeling contributes to building a commercial relationship between the company and its consumer. In this sense, business modeling will contribute to the management of processes, from value creation to continuous delivery to consumers, based on the creation, delivery and capture of value for the customer.
The Canvas business model for MSPs must take into account what products and services are offered and how these resources can stand out in the market compared to the competition. For this to be possible, it is essential to identify the consumer segment taking into account all the attributes of price, response time, reliability and experience.
What’s the IT landscape like for MSPs?
According to a survey carried out by ADDEE , more than 50% of technology and IT services companies saw an increase in revenue in 2022, reflecting how the growth of the technology sector and MSPs is 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, what is currently expected is that IT companies stop just resolving incidents and start working preventively.
This means that MSPs need to act through management focused on monitoring, diagnosing and optimizing resources. This is only possible with the analysis and identification of problems that may affect the resources offered in some way.
Through this preventative approach, MSPs are able to avoid resource unavailability and ensure increasingly optimized and secure tools for their customers . This strategy will contribute to improving the company's perception of value, establishing an essential competitive advantage in the face of growing competitiveness.
More than just offering quality products and services, modern companies need to establish a proactive culture so that their consumers can see the true value and benefits of the contracted company throughout their journey.
How important is customer segmentation for IT Service Providers?
To be able to deliver the products and services expected by consumers, it is essential that the MSP determines the customer segment . This segmentation takes into account the niche, revenue, size, number of employees, expectations and needs of the business.
Once this customer segmentation is established, IT service providers are able to adopt more effective and intelligent outreach strategies, resulting in the growth and appreciation of their business . Taking into account that MSPs operate in a niche market aimed at medium and small companies that do not have internal IT areas, customer segmentation can be done through two approaches:
- Focus on companies with 50 to 200 employees, without a traditional IT department;
- Focus on serving large companies, with great technological needs.
With this, IT service providers will be able to personalize their service and offer specific products and services for the chosen segmentation. 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 sector and business focus. The entire commercial strategy of the business will be developed to serve the chosen market in a personalized way , such as the industrial sector, real estate agencies, educational institutions, among others.
Region
Location can also make all the difference within the strategy established by Canvas business modeling. Depending on your company's focus, regionalization helps you reach potential consumers more assertively.
Need
Knowing what your consumer expects is essential to understand the need and deliver the expected value. Market assessment will help determine consumer needs and ensure that your company is prepared to meet that demand.
How to reach 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 growth. This aspect refers to the way chosen to make products and services reach potential customers, which can happen through direct sales or through partners.
The definition of these channels must take into account the presence of customers, that is: on which channel platforms these consumers can be found and which of these channels can deliver the best results with the greatest cost-benefit. In the case of IT service providers, prospecting campaigns must consider the entire customer journey , from the first contact with the product or service to the consumer's loyalty after acquisition.
Customer relationships: fundamental aspect of the Canvas business model for MSPs
Establishing a good relationship with your customers is a fundamental step within businesses that want to add more reliability to the business. The relationship strategy must be developed according to the phase of the customer journey , starting with acquisition and concluding with the sales growth phase.
The better the reputation and reliability of IT service providers in the market, the better the results obtained with your relationship strategy. Among the main measures that must be considered within this process are:
- Establish a closer relationship with the consumer , maintaining frequent contact without being inconvenient or evasive after closing the contract;
- Demonstration of the value of services through consolidated data on results;
- Measuring satisfaction levels through satisfaction surveys;
- Measurement of service use and consumer engagement.
What are the core activities for MSPs
The scope of activities will help to achieve good results and ensure that the established business model can achieve success. In addition to offering quality products and services to the market, MSPs also need to offer a value proposition and a quality relationship.
In this sense, the key activities offered by IT service providers must consider the expectations of this consumer and the needs they present in relation to the contracted services, such as:
- Emergency services with the possibility of individual contracting;
- Optional a la carte services;
- Managed services;
- 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. It is necessary to be prepared to achieve success and be able to add value to the business.
MSPs and IT service providers
The competitiveness of the market has made it essential to create strategic partnerships to reach more and more consumers. Establishing partnerships is a factor that contributes to the growth of your company and helps you achieve established objectives.
Having reliable, quality suppliers is essential for IT service providers to be able to manage complete and standardized solutions for customers. The selection of these partnerships must take into account several factors, such as:
- Reputation;
- Knowledge level;
- service SLA;
- Customer needs;
- Cost benefit;
- Flexibility.
Cost structure
The path established through Canvas business modeling takes into account the costs necessary for an MSP to remain in the market and achieve success. This assessment will help to understand fixed and variable expenses and also determine the possibility of quality service.
This analysis needs to raise some fundamental questions, such as key resources as a necessary expense, the costs generated by activities and whether the value proposition is focused on price or added value. This assessment will help determine:
- Fixed costs: constant business expenses, such as rent, taxes and employee payments.
- Variable costs: expenses that may change depending on time or the company's performance.
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 development of this model depends on three fundamental steps:
- Development of ideas according to the consumer journey;
- Brainstorm meetings to share ideas and strategies;
- Development of the first version and continuous improvement process.
Based on the content discussed above, it is understood that for the development of the Canvas Business Model for MSPs, the following must be considered:
- Partner network;
- Key activities;
- Value offer;
- Relationship with customers;
- Customer segmentation;
- Cost structure;
- Revenue stream.
This structuring is ideal for businesses that want to optimize their activities and ensure that consumers are able to visualize the value of the brand and the services that are offered. Customer segmentation and standardization of processes is essential to attract the right consumers to the services that are offered.
Applying Canvas business modeling is not complex and can bring many benefits to your business. Investing in a complete modeling strategy will help your company establish its market value and deliver increasingly complete and intelligent resources to its consumers.
