Creative Technology in Applying Business Model Canvas
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Creative Technology Ltd (Creative) was established in Singapore in 1981 and since then, it has been one of the global leaders in digital entertainment products. Creative had changed the entire landscape in the gaming and entertainment arena by putting high quality sound into computers. Since then, its leading product, Sound Blaster, have been setting the standards for headset products, portable media players, sound card and wireless speakers. The company's proprietary technology, exclusive innovation, applications and customer services empower customers to experience high-quality digital simulation at one's convenience.
Since dispatching the extraordinarily fruitful Sound Blaster sound cards and setting the genuine standard for PC sound in 1989, Creative has possessed the capacity to influence on its heading edge sound innovation, an immense client base of 400 million, and solid brand name to venture into the inspiring way of life Personal Digital Entertainment (PDE) market. The company is presently overall perceived as a worldwide pioneer for product advancement in the sound and PDE fragments, offering customers a complete, excellent computerized stimulation encounter through Creative's software applications, hardware and services.
The company's products and solutions are marketed to customers and framework integrators through an global distribution network that incorporates customary promoting channels, original equipment manufacturers and the Internet.
Creative's worldwide corporate home office is spotted in Singapore, in the heart of the Asia-Pacific area. It has provincial specialties units in the US, Europe and Asia.
Creative's sales and dispersion exercises are helped out through a far reaching, wide based, multi-layered divert appropriation arranged in more than 80 nations in North America, Europe and Asia.
Creative is a public listed company on the main board of the Singapore Exchange (SGX) since June 1994.
Creative Technology in Applying Business Model Canvas
The business model canvas, as un-similar to the traditional and complicated business plan, helps organizations to conduct focused, flexible and transparent business plan and thus provides aid to companies for moving beyond product-centric thinking and towards business model thinking. The canvas delivers easy and flexible management and much easier time understanding the business model by having visual aid of the nine models template. Many leading companies use the canvas to manage strategy and to create new growth solutions, while start-ups or beginners use it in their search for the right business model. Creative Technology, the Singapore based global company is taken as the case study in applying business model canvas to describe the company’s infrastructure, offering, customers and finances.
With the advent of technology, digital entertainment has become important entertaining system for the modern day human beings. People enjoy mini theater kind of environment at home by setting up TV, video player and stereo sound system. Also people use computer for business and personal leisure. And need not to deny the importance of mobile phone which covers maximum time of human daily life as people use it for an array of requirements. The result of the high demand for digital products has brought lots of business opportunities in related fields. Creative Technology is one of the reputable names for designing, manufacturing and distributing digitized sound board, and electronic entertainment products. With the business model design template, Creative Technology can easily describe their business model in nine components, key activities, key resources and key partner, which these three components are part of the company’s infrastructure, offer or value propositions, customers or clients – their requirements, customers relationships, channels, and finally cost centres and revenue streams which these two components belonged to company’s finances.
Offer or value propositions are indicates the collection of products and services a business offers to meet the expectations of customers. Creative Technology is well recognized for its innovation in audio sector and it’s the first to invent and design digitized sound card – Sound Blaster that changes the face of computer system by introducing sound to all computers. And moreover it delivers personal and home entertainment system in digital entertainment market. Personal entertainment products like Sound Blaster sound card, wired and wireless headset, web camera, and music player. Home entertainment products include stereo speaker and its side products and accessories.
Customers/Client - Creative Technology’s products and solutions are marketed to clients with preference to experience high quality digital sound system. The computer users and gamers who could benefit the best from the good quality sound products and systems. Also the home users, who like to enjoy home cinema, Creative Technology’s wired or wireless stereo sound speakers could help to provide a movie theater experience and mood to the users. The music lovers can be pleased with music players anytime anywhere, to say the least.
Key relationships - To maintain good customers’ relationship is essential not only to please and keep the clients but also to ensure the continued business growth for a company. Creative Technology provides sales assistance and also provides device warranty and services after sales for the customers. User guides and setup for the products are given or can be downloaded online. Besides that Creative Technology provides online feedback for the customers. Creative Technology could establish forum or community for products and technical sharing. The creation of a community allows a direct communication and interaction among different clients and the company. Creative Technology could invite privileged users to review the new products and post the reviews online and this could increase the confidence and interest level of potential buyers.
Channels are the methods for distribution of offer or value proposition of a company. Creative Technology distributes its products to local retailers and also retailers worldwide for commerce. Meanwhile Creative Technology provides online store, advertisements and purchases for customers. The online store not only offers direct service and sales between Creative Technology and its customers, but also provides cost-effective business operation. Creative Technology continuously participates in Singapore IT fair by offering promotions and sales to customers. Creative Technology can establish and organize technical sharing forum or community for the customers as a way for customers to share knowledge and experience of the company’s products.
Key partners help company to optimize business operations, better focus on core activities, and utilize the partners’ relationships to achieve a better business performance. Creative Technology needs to get reliable suppliers to supply quality-assure materials in producing good quality devices. It also can try to get government support and subsidy for research and development. Working together with open source development like Android to produce mobile products such as smart phone, tablet with enhanced sound system can help it to expand its product coverage.
Key activities are the most vital activities for a company in executing its value propositions. Creative Technology as one of the leading companies in electronic industry has a mature business process from the backend development and business team in producing and advertising products, till to the front line store-front and sales assistance in delivering products and assistance to customers. Creative Technology conducts market research for user demands and preferences, and also the latest trends of digital market. Based on the results of market research, the development team of Creative Technology works on the Research and Development (R&D) in order to design and produce electronic devices that meet customer needs and expectations. The designs are sent to production or manufacture line for mass production then. The ready electronic products are distributed to local retailer like Challenger and to distributors worldwide for sales.
Key resources which are the necessities of a company to create values for customers. The resources could be physical, intellectual, human and financial. Intellectual and human are keys to a company’s success particularly for Creative Technology as it needs continued development and improvement for their products. Creative Technology has registered their design pattern for example sound card as a way to protect their design and technology. It also needs to hire and manage a research team to keep on developing new products and/or upgrading existing products. In addition, systematic, efficient and productive manufacture lines that be maintained well are important assets in order to produce good quality and standardized products in large amounts.
Cost center or structure which is belonged to finances of a company, describes the money consequences of the business operations. Creative Technology as a company in delivering digital or electronic products focuses on creating products that meet customers’ expectation and satisfaction. It invests in researching and developing of products. However it has to control the quality and cost of manufacturing to help it to provide a good quality product at a reasonable and affordable price and to win customers in competitive market. Furthermore it can get reliable distributors in order to offer better retailed price for customers
Revenue streams which indicate the way a company makes profit from each customer segment. Creative Technology makes income from the selling of electronic products through its online store and appointed retailers. It also participates in IT exhibitions and organizes sales promotion to boost up sales performance. It can work with other manufactures like Motorola, Sony to create or produce more digital products like mobile, tablet and other derivative products to expand its products coverage and thus to increase its income or revenue.
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