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The business model canvas
 

The business model canvas

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  • Difference between users & customersSpecial category = early adopters
  • http://www.ashmaurya.com/2011/06/your-product-is-not-the-product/
  • Lean canvas tips & tricks1. Problem & customer segment- List top 1-3 problems for customer segment(s)- List existing alternatives- Identify other user roles- Identify early adopters (not mainstream customers)2.Unique value proposition (UVP)- Be different, target early adopters, focus on finished story benefits (not features but end result customer wants), what - who - why3. Solution- MVP, top features to tackle each problem4. Channels- Free / paid, inbound / outbound, direct / automated (first sell manually direct to learn, then automate), direct / indirect (first sell yourself before handing over to others), retention before referral- Start with direct outbound channels to interview, think about scalable channels5. Revenue stream- Think in 3 - 5 year forecasts- Bottom-up approach- Charge early-on for your MVP (price is part of the product, defines your customers, better form of validation)- Price against identified existing alternatives6. Cost structure- Operational costs bottom-up (fixed & variable)- Calculate break-even point + required time / effort / money to get there7. Key Metrics - Pirate Metrics- Acquisition - how do users find you? (turn lead into prospect)- Activation - do users have a great first experience?- Retention - do users come back?- Revenue - how do you make money?- Referral - do users tell others?8. Unfair advantage- e.g., insider info, knowhow, dream team, personal authority, large network effect, community, existing customers, SEO ranking

The business model canvas The business model canvas Presentation Transcript

  • The business modelcanvas
  • Source: Alex OsterwalderCustomer segmentsPeople or organizations an enterprise aims toreach.
  • For whom are we creating value?Who are our most Important customers?Source: Alex OsterwalderCustomer segments
  • Customer segmentsThey represent separate segments if Their needs require and justify a distinct offer They are reached through different distributionchannels They require different types of relationship They have substantially different profit abilities They are willing to pay for different aspects of theofferWho are Ikea’s customers?To whom is Ikea selling its products?
  • Bundle of products and services that create valuefor a specific Customer SegmentValue propositionSource: Alex Osterwalder
  • Value propositionWhat value do we deliver to the customers?Which problem are we helping to solve?Which customer needs are e satisfying?Source: Alex Osterwalder
  • Value propositionCustomer value creation Getting the job done Performance Customization Design Brand PriceIkea?Source: Alex Osterwalder
  • The way a company communicates with and reach itscustomers segments to deliver a value propositionSource: Alex OsterwalderChannels
  • Source: Alex OsterwalderChannelsHow do our Customers want to be reached?Through which channels are we reaching them now?How are we integrating them with customer routines?
  • Channels Raising awareness among customers aboutcompany’s products and services Delivering a Value proposition to customers Providing post-purchase customer supportIkea?
  • Describes the types of relationships a companyestablishes with a specific Customer Segment.Source: Alex OsterwalderCustomer relationships
  • Source: Alex OsterwalderCustomer relationshipsWhat type of relationship does each of ourcostumer segments expect us to establish andmaintain with them?
  • Source: Alex OsterwalderCustomer relationshipsDrivers• Customer acquisition• Customer retention• Boosting sales (upselling)Ikea?
  • The cash a company generates from each customerSegmentSource: Alex OsterwalderRevenue streams
  • For what value are our customers really willing to pay?How much does each Revenue Stream contribute tooverall revenues?Source: Alex OsterwalderRevenue streams
  • Revenue StreamsThe different types of revenue streams Transaction revenues resulting from one-timecustomer payment Recurring revenues resulting from ongoingpayments to either deliver a value proposition tocustomers or provide post-purchase customersupportIkea?
  • The most important assets required to make abusiness model work.Source: Alex OsterwalderKey resources
  • What Key Resources do our Value Proposition require?Our Distribution Channels? Customer Relationship?Revenue Streams?Source: Alex OsterwalderKey resources
  • Source: Alex OsterwalderKey resourcesType of resources• Physical• Intellectual• Human• Financial Ikea?
  • The most important things a company must doto make its business model workSource: Alex OsterwalderKey activities
  • Source: Alex OsterwalderKey activitiesWhat Key Activities do our Value Proposition require?Our Distribution Channels? Customer Relationship?Revenue Streams?
  • Key activitiesSome categories Production Marketing Problem solving NetworkIkea?
  • Describes the network of suppliers and partners that makethe business model workSource: Alex OsterwalderKey partners
  • Who are our Key Partners/Suppliers? Which Keyresources/activities are we acquiring from partners?Source: Alex OsterwalderKey partners
  • Key partnersMotivation for creating partnerships Optimization and economy of scale Reduction of risk and uncertainty Acquisition of particular resources and activitiesIkea?
  • All costs incurred to operate a business modelSource: Alex OsterwalderCost structure
  • Source: Alex OsterwalderCost structureWhat are the most important costs in our business model?Which Key Resources/Activities are most expensive?Ikea?
  • Source: Alex Osterwalder
  • Source: Alex Osterwalder
  •  Developed by Ash Maurya in2012 Documented in “Running Lean” Adaptation of BM canvas Focus on learning More actionable Designed for Web startups
  • Brainstorm possible models& prioritize1. Customer Pain Level (Problem/VP)2. Ease of Reach (Channel)3. Price/Gross Margin (Revenue Stream/CostStructure)4. Market Size (Customer Segment)5. Technical feasibility (solution)Source: Ash Maurya
  • … using lean startup practicesSource: Ash MauryaIdentify the riskiest parts of the model &systematically test them
  • Case study
  • Questions?