Business Model Canvas for Artificial Intelligence and Machine Learning Firm

Business Model Canvas
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Business Model Canvas
The business model canvas is a strategic management template for describing, visualizing, evaluating new business models, and verifying existing ones. It describes the manner in which a firm creates, captures, and provides value to its customers (Ebinum, 2016). A business model canvas also indicates the organization’s infrastructure, key partners, and finances (BMI, 2019). The proposed business model of the AI&ML firm providing cyber security solutions to small-scale e-commerce businesses can be split into nine “building blocks.”
The first block relates to key partnerships: the entities outside the organization that the AI&ML firm needs to partner with in order to deliver value to customers. While many companies in the AI sector fail because of financially related challenges, other issues such as training data sets and algorithms are equally important (Liu, 2018). For this reason, the company will form critical partnerships with entities capable of not only providing financial resources but also availing large amounts of data, iterative processing abilities, as well as intelligent algorithms. For companies in the AI sector to thrive, they must form partnerships with financial investors, leading IT companies, universities, and AI&ML research centers, along with AI&ML developers, distributors, and suppliers (Mishra & Tripathi, 2021).
The second building block relates to key activities: those internal operations that are necessary to generating value as well as supporting customer relationships, distribution channels, and revenue streams. One key activity in the AI&ML industry is research and development, which typically involves refining data sets, increasing processing capacities, and enhancing the quality of algorithms in order to enhance the ability of AI&ML solutions to detect, prevent, and predict future cyber-attacks. Other critical activities include software development, IT maintenance and design, customer development, as well as marketing and sales.
The third building block relates to value proposition: the needs the business solves. Some of the AI&ML firm’s value propositions include providing cyber security solutions capable of identifying areas of vulnerability in a system, preventing all cyber-attacks, a...