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VicHealth Concept Development Workshop slides

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Slides from the Concept Development Workshop for shortlisted Innovation Challenge Alcohol project teams.

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VicHealth Concept Development Workshop slides

  1. 1. concept development workshop vichealth innovation challenge: alcohol
  2. 2. welcome DAVID HOOD @DavidAHood JULIAN WATERS-­‐LYNCH @jwaterslynch join the conversa1on on twi2er with @VicHealth @DoingSomeGood #VHinnov doing something good
  3. 3. SCHEDULE morning a(ernoon 9:00 AM Welcome & Check-­‐in 1:05 PM BMC #6: Key Resources & BMC #7: Key Ac@vi@es 9:20 AM What makes a good idea? 1:45 PM BMC #8: Key Partnerships & BMC #9: Cost Structure 9:45 AM Intro to Business Models & Business Model Canvas 2:15 PM Social Impact Metrics 10:10 AM BMC #1: Customer Segments 2:30 PM Lean Experiments 10:35 AM MORNING TEA 3:00 PM Preparing for the Panel 10:55 AM BMC #2: Value Proposi@ons & BMC #3: Channels 3:25 PM Wrap Up & What’s Next 11:45 AM BMC #4: Customer Rela@onships & BMC #5: Revenue Streams 3:30 PM CLOSE 12:35 PM LUNCH
  4. 4. purpose 1. for you to leave with a first go of your Business Model Canvas in hand > final version to be submiGed to VicHealth by … 2. ideas and insights in to how you can test and improve your concept 3. ideas and insights in to how you can prepare for you panel interview 12 January
  5. 5. People don’t buy what you do they buy why you do it. ~ Simon Sinek
  6. 6. check in check in
  7. 7. CHECK IN 1.What was the most useful or interesRng aspect of: 1.1. Simon Sinek’s TEDTalk on why we should “start with why”? 1.2.the Strategyzer series of videos on the Business Model Canvas? 1.3.the Drinking Related Lifestyles research summary?
  8. 8. CHECK IN 2. Out of what was covered in the pre-­‐workshop content, what, if anything, would you like to spend more Rme on today?
  9. 9. CHECK IN 3. What’s one other thing you’d like to leave here with today?
  10. 10. “If I had an hour to solve a problem I would spend 55 minutes thinking about the problem and five minutes thinking about solu?ons.”
  11. 11. http://dthsg.com/what-is-design-thinking/
  12. 12. human-centred design
  13. 13. http://www.nitibhan.com/2013/01/reflections-on-design-thinking-for.html
  14. 14. https://dschool.stanford.edu/
  15. 15. the five phases of design thinking http://thinkingofdesign.blogspot.com.au/
  16. 16. "Lean Startup" is a system for developing a business, product or service in the most efficient way possible to reduce the risk of failure. It is an approach that treats all ideas as having assumpRons (or hypotheses) that must be validated by rapid experimentaRon in the marketplace. The approach relies on scienRfic experimentaRon, iteraRve product releases, and customers feedback to generate validated learning.
  17. 17. The key is to idenRfy assumpRons -­‐ would people actually buy or do this? Not by building the whole product, but by building a Minimum Viable Product (MVP). The MVP is the most basic version of your product that is valuable to your user, that will enable you to test and learn.
  18. 18. shaping great ideas Start with why Why are you doing this? What is the situaRon you want to change or the problem you’re trying to solve? Why is it important? What might the situaRon look like if you’re successful? Why do you believe it’s possible? the context 1 What do we know about the current situaRon? What is its impact on Build your understanding of individuals, society and the planet? Who does it effect most? What are the possible causes? Iden@fy your target audience Who is your target audience? Who are you solving this problem for? Of them, who is looking for a soluRon? Who believes that another way, a new way, is possible? Be specific. Go beyond demographics. audience 3 Seek to understand the values and needs of your target audience so you can Get to know your target design the best soluRon for them. What are their aspiraRons? What moRvates them? Develop user personas and user journeys to provide valuable insights. Iden@fy the problem you are solving How does your idea help your target audience to get what they need or what they value? How does it help them to overcome challenges and barriers? Prototype and test ideas Gain insights into customers’ needs by designing and deploying the smallest amount of funcRonality possible (AKA your minimum viable product/service). Evolve the soluRon based on insights provided by engaged early adopters. 1 2 3 4 5 6
  19. 19. People don’t buy what you do they buy why you do it. ~ Simon Sinek
  20. 20. ‣ why: belief, moRvaRon or purpose ‣ how: experience or process ‣ what: details of product of service
  21. 21. Excessive alcohol consump?on creates mul?ple social and health problems for individuals and society, and is one of the top 10 avoidable causes of disease and death in Victoria.
  22. 22. The social cost of alcohol-­‐related harm in 2007–08 in Victoria was $4.3 billion. This includes direct costs associated with, for example, road accidents, health care, crime and violence, and indirect costs such as loss of workforce labour and for educa?on and research resources.
  23. 23. While most of us (78% of Australians) agree that we have a problem with alcohol, only 25% of drinkers believe that their drinking behaviour is cause for concern.
  24. 24. People don’t buy what you do they buy why you do it. ~ Simon Sinek
  25. 25. ‣ why: belief, moRvaRon or purpose ‣ how: experience or process ‣ what: details of product of service
  26. 26. Excessive alcohol consump?on creates mul?ple social and health problems for individuals and society, and is one of the top 10 avoidable causes of disease and death in Victoria.
  27. 27. The social cost of alcohol-­‐related harm in 2007–08 in Victoria was $4.3 billion. This includes direct costs associated with, for example, road accidents, health care, crime and violence, and indirect costs such as loss of workforce labour and for educa?on and research resources.
  28. 28. While most of us (78% of Australians) agree that we have a problem with alcohol, only 25% of drinkers believe that their drinking behaviour is cause for concern.
  29. 29. Historical*consump/on*data* 14" 12" 10" 8" 6" 4" 2" 0" Alcohol" Spirits" Wine" Beer"
  30. 30. Consumption Risky drinking by young adults 60 50 40 30 20 10 0 18-24 year olds 25-29 year olds 2001 2004 2007 2010 2013
  31. 31. Consumption But... 60 50 40 30 20 10 0 18-24 year olds 25-29 year olds 40-49 year olds 50-59 year olds 60-69 year olds 2001 2004 2007 2010 2013
  32. 32. Harm trends Generally increasing harm rates over the past decade (although road injuries and deaths are steady) 70 60 50 40 30 20 10 0 Hospital admissions Ambulance attendances Treatment episodes Assault Family incidents Emergency Department 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13
  33. 33. Conclusions Victorian and Australian alcohol trend data provides a confusing picture: - Reasonable evidence of harm increases – Generally stable levels of consumption, which obscure: • Major reductions in teenage drinking • Declines in risky drinking, particularly among young adults • Some slight increases in drinking among older people – Big shifts in attitudes towards alcohol Little evidence to explain these changes – Increased public health presence in media coverage of alcohol may be driving or reflecting changes in public attitudes
  34. 34. who is your target audience? Not everyone is your target audience. In a world where there is compeRRon for the Rme, aGenRon and money of the people you are seeking to engage, you need to make sure you know exactly who you are developing your idea for. The more complete the picture you have of your target user/customer/audience, the easier it is to both develop your product or service and market it.
  35. 35. the innovaAon challenge VicHealth are looking for bold new ideas for campaigns, programs, services and other iniRaRves that help change Victorian drinking culture by either: 1. reducing the amount Victorians drink, parRcularly those who already drink heavily, or 2. increasing the acceptability of saying no to a drink, or drinking a bit less.
  36. 36. Alcohol Discovery & Insights Forum The spectrum of acceptable behaviour Typical Drinking normal behaviour Consumption of alcohol Abstaining extreme, odd & infrequent behaviour Alcohol Discovery & Insights Forum Getting Drunk common practice Binge Drinking extreme & " “a youth issue” Acceptable behaviour Only abstinence from alcohol and binge drinking are seen as extreme behaviours
  37. 37. Alcohol Discovery & Insights Forum The Initiator • Outgoing and the ‘life of the party’! • Loves to have a drink and let loose! • Drinks to have fun! • Gregarious and outgoing and loves to make things happen – often encourages others to drink! • Likes to be a source of information on alcohol brands, types of drinks and places to go out! The Protector Alcohol Discovery & Insights Forum The Moderator ! The Follower • Fun, social and easy-going! • Influenced by social and cultural pressures! • Tends to join in and go with the flow! • Gets swept up in the moment and enjoyment of social situations Drinking Identities & Characteristics
  38. 38. Alcohol Discovery & Insights Forum The Initiator • Outgoing and the ‘life of the party’! • Loves to have a drink and let loose! • Drinks to have fun! • Gregarious and outgoing and loves to make things happen – often encourages others to drink! • Likes to be a source of information on alcohol brands, types of drinks and places to go out! The Protector Alcohol Discovery & Insights Forum The Moderator ! The Follower • Fun, social and easy-going! • Influenced by social and cultural pressures! • Tends to join in and go with the flow! • Gets swept up in the moment and enjoyment of social situations Drinking Identities & Characteristics
  39. 39. Alcohol Discovery & Insights Forum What drives the Initiators? Mavenism / Ego Seeking Self Enhancement Social expectations Alcohol Discovery & Insights Forum Hedonism Brand loyalty Coping with Depression Easy access to alcohol Cheap Prices Building Confidence Question: How can I create fun without using Alcohol as a starting point?
  40. 40. Alcohol Discovery & Insights Forum What drives the Followers? Achievement Values Cheap Prices Seeking Self Enhancement Mavenism / Ego Alcohol Discovery & Insights Forum Hedonism Easy access Brand loyalty Question: How can I join in but not be lead astray so easily?
  41. 41. understanding your target audience 1. Do they need and will they value what you are offering? 2. What problem are you solving for them and are they looking for a soluRon? 3. Where are they looking for a soluRon to their problem? 4. How would they prefer to engage with you and access what you are offering? 5. What are they willing to pay? 6. What might they need to know? About you, the issue, your offering? 7. What other offerings are out there compeRng for the same audience? How are you different from them.
  42. 42. The Business Model Canvas A shared language for describing, visualizing, assessing, and changing business models
  43. 43. Having a great idea doesn't guarantee success. A great business idea must also have a great business model to support and sustain it. Alex Osterwalder
  44. 44. Def_Business Model A business model describes the raRonale of how an organisaRon creates, delivers, and captures value. Source: Business Model Generation
  45. 45. and it’s not just about business… • lean impact • impact canvas • about learning • making sustainable • key principles are the same: human-­‐centred and crea?ng value
  46. 46. What’s the difference between a business plan and a business model?
  47. 47. The Business Model Canvas is a tool for you to design, analyse, test and describe your business model and how your organisaRon intends to create, deliver, and capture value in a profitable way.
  48. 48. Business Model Canvas 1. customers 4. relation 3. channels 2. value 7. activities 6. resources 9. costs 5. revenues 8. partners http://www.businessmodelgeneration.com
  49. 49. Business Model Canvas 1. customers 4. relation 3. channels 2. value the value reaches the customers through channels http://www.businessmodelgeneration.com value - customer communication
  50. 50. Business Model Canvas 2. value 7. activities 6. resources 8. partners Those contribute creating value http://www.businessmodelgeneration.com
  51. 51. Business Model Canvas 7. activities 6. resources earnings = revenues - costs 1. customers 9. costs 5. revenues 8. partners Customers pay Creating value costs money Earnings should be greater than zero http://www.businessmodelgeneration.com
  52. 52. Business Model Canvas 7. activities 6. resources earnings = revenues - costs 1. customers 4. relation 3. channels 2. value 9. costs 5. revenues 8. partner http://www.businessmodelgeneration.com
  53. 53. blended value / triple bottom line social and environmental costsocial and environmental benefit
  54. 54. PATTERNS FREE AS A BUSINESS MODEL 98 Skype offers an intriguing example of a free-mium pattern that disrupted the telecommuni-cations sector by enabling free calling services via the Internet. Skype developed software by the same name that, when installed on comput-ers or smartphones, enables users to make calls from one device to another free of charge. Skype can offer this because its Cost Structure is completely different from that of a telecom carrier. Free calls are fully routed through the Internet based on so-called peer-to-peer technology that employs user hardware and the Internet as communications infrastructure. Hence, Skype does not have to manage its own network like a telco and incurs only minor costs to support additional users. Skype requires very little of its own infrastructure besides backend software and the servers hosting user accounts. Users pay only for calling landlines and mobile phones through a premium service called SkypeOut, which offers very low rates. In fact, users are charged only slightly more than the termination costs that Skype itself incurs for calls routed through wholesale carriers such as iBasis and Level 3, which handle the company’s network traffi c. KP KA CS Skype claims it has over 400 million reg-istered users who have made more than 100 billion free calls since the company was founded in 2004. Skype reported revenues of U.S. $550 million in 2008, though the company and its owner, eBay, do not release detailed fi nancial data including information on profi tability. We may soon know more as eBay has announced plans to list Skype through an initial public offering (IPO). Skype payment providers distribution partners telco partners software development free internet & video calling cheap calls to phones (skypeout) mass customized web users globally people who want to call phones software developers software skype.com headset partnerships software development complaint management free skypeout pre-paid or subscription hardware sales Skype VP CR CH KR C$ R$ Over 90 percent of Skype users subscribe to the free service Paid SkypeOut calls account for less than 10 percent of total usage
  55. 55. PATTERNS FREE AS A BUSINESS MODEL 99 KP KA CS Skype is a voice calling services company operat-ing under the economics of a software company Skype disrupted the telecommunications industry and helped drive voice communica-tion costs close to zero. Telecom operators initially didn’t understand why Skype would offer calls for free and didn’t take the company seriously. What’s more, only a tiny fraction of the traditional carriers’ customers used Skype. But over time more and more customers decided to make their international calls with Skype, eating into one of the most lucrative carrier revenue sources. This pattern, typical of a disruptive business model, severely affected the traditional voice communication business, and today Skype is the world’s largest provider of cross-border voice communication services, according to telecommunications research fi rm Telegeography. maximum outsourcing software devel-opment and no network mainte-nance roughly similar voice oΩer automated mass customization global reach without the limitations of a network no infrastructure software distribution 100% low cost chan-nels cost structure of a software company 90% free usage 10% paying Skype versus Telco Giving away software and allowing customers to make free Skype-to- Skype calls costs the company little 5+ years old 400 million+ users 100 billion+ free calls generated 2008 revenues of U.S. $550 million VP CR CH KR C$ R$
  56. 56. getting started
  57. 57. guess guess guess guess guess guess guess guess guess guess guess guess guess guess guess guess
  58. 58. 1. customer segments
  59. 59. The Customer Segments Building Block defines the different groups of people or organisaRons an enterprise aims to reach and serve.
  60. 60. Customer Segments There are different types of market segments: 1. Mass market 2. Niche market 3. Segmented 4. Diversified 5. MulR-­‐sided planorms (or mulR-­‐sided markets)
  61. 61. Alcohol Discovery & Insights Forum The Initiator • Outgoing and the ‘life of the party’! • Loves to have a drink and let loose! • Drinks to have fun! • Gregarious and outgoing and loves to make things happen – often encourages others to drink! • Likes to be a source of information on alcohol brands, types of drinks and places to go out! The Protector Alcohol Discovery & Insights Forum The Moderator ! The Follower • Fun, social and easy-going! • Influenced by social and cultural pressures! • Tends to join in and go with the flow! • Gets swept up in the moment and enjoyment of social situations Drinking Identities & Characteristics
  62. 62. Key QuesRons 1. For whom are we creaRng value? 2. Who are our most important customers?
  63. 63. @ps Customer groups represent separate segments if: • Their needs require and jusRfy a disRnct offer • They are reached through different DistribuRon Channels • They require different types of relaRonships • They have substanRally different profitabiliRes • They are willing to pay for different aspects of the offer
  64. 64. acAvity 1. Which market segment are you targeRng? 2. Is there a parRcular niche within that market segment that you are targeRng? What is it?
  65. 65. Empathy is not just about walking in another's shoes. First you must remove your own.
  66. 66. next… • develop 2-­‐3 personas for each of your customer segments • idenRfy what they value & idenRfy what problems they have • idenRfy the barriers they face to changing their drinking behaviour • map out a typical day in the life for each customer segment that involves alcohol • what is their usual rouRne? • what are their habits? > IdenRfy when and where are they more likely to engage with you/ your offering.
  67. 67. what are personas? Personas are ficRonal representaRons of your target audience that help you to understand them beGer. Well thought out and well researched personas make it easier for you to design and deliver services that meet your target audience’s specific needs and expectaRons, while addressing their unique challenges and communicaRng in their language. The strongest personas are based on market research in combinaRon with insights gathered through conversaRons, surveys and interviews with your target audience.
  68. 68. Market Segment Name Gender Age Nationality Location Relationship Status Children Employer Position Income Background Routine & Behaviour Goals & Motivations Challenges & Constraints Ideal Experience Persona Creator powered by UsabilityTools 1
  69. 69. What’s their history in relaRonship to drinking? Who and what has shaped their current behaviour? What’s their rouRne in relaRon to socialising and drinking? Daily, weekly, monthly, annually? What are their personal goals around health, wellbeing and happiness? What moRvates them? What are the challenges they face to changing their drinking behaviour? What are the constraints/barriers? What sort of experience are they looking for? What sort of interacRon do they want to have with others/you? What sort of thing might you expect them to say about their ideal experience and why they love it?
  70. 70. SCENARIO Persona: Scenario: getting ready arrive depart fall asleep POINT OF DECISION ENABLING CONDITION POTENTIALH URDLE
  71. 71. 2. VALUE PROPOSITIONS
  72. 72. The Value Proposi@ons Building Block describes the bundle of products and services that create value for a specific Customer Segment.
  73. 73. Value Proposi@ons Elements from the following non-­‐exhaus?ve list of quan?ta?ve or qualita?ve values can contribute to customer value crea?on: 1. Newness 7. Price 2. Performance 8. Cost reducRon 3. CustomizaRon 9. Risk reducRon 4. “Gesng the job done” 10. Accessibility 5. Design 11. Convenience/Usability 6. Brand/status
  74. 74. “I drink” so that I can Means Values Ends Values • Fit in with everyone else • Feel connected to others • Be the life of the party • Experience adventure • Have a great night • Relax • Overcome my inhibiRons • Forget my worries
  75. 75. In other words… What experiences do your users want to have? What experiences do they want to avoid?
  76. 76. Key Ques@ons 1. What value do we deliver to the customers or users? 2. Which one of our customer’s problems are we helping to solve? 3. Which customer needs are we saRsfying? 4. What bundles of products and services are we offering to each Customer Segment?
  77. 77. Simple Fix for Blown Head Gaskets Repairs Blown Head Gaskets in Just One Hour
  78. 78. Tips • Make it as plain as day • Use your customer’s language. How would they describe the benefits themselves? • Strengthen your case • Customer tesRmonials • Assurance • Social proof
  79. 79. 3. channels
  80. 80. The Channels Building Block describes how a company communicates with and reaches its Customer Segments to deliver a Value ProposiRon.
  81. 81. Channels Channels serve several funcRons, including: • Raising awareness among customers about a company’s products and services • Helping customers evaluate a company’s Value ProposiRon • Allowing customers to purchase specific products and services • Delivering a Value ProposiRon to customers • Providing post-­‐purchase customer support
  82. 82. Channel Types & Phases
  83. 83. Tourism Australia
  84. 84. “The key is help them take baby steps” grind it out tiny habits http://www.behaviormodel.org/
  85. 85. Key Ques@ons 1. Through which Channels do our Customer Segments want to be reached? 2. How are we reaching them now? 3. How are our Channels integrated? 4. Which ones work best? 5. Which ones are most cost-­‐efficient? 6. How are we integraRng them with customer rouRnes?
  86. 86. Ac@vity Create a user journey map for each of your personas: • What touch points do they have with you? • Where are you best able to give them maximum value on (i.e. a great experience)? • Which ones might be cosRng you a good deal but not providing much value for customers? • Which ones could you potenRally create a lot more value through without much effort or resources?
  87. 87. 4. customer relationships
  88. 88. The Customer Rela@onships Building Block describes the types of relaRonships a company establishes with specific Customer Segments.
  89. 89. Customer Rela@onships RelaRonships can range from personal to automated. Customer relaRonships may be driven by the following moRvaRons: 1. Customer acquisiRon 2. Customer retenRon 3. BoosRng sales (upselling)
  90. 90. Customer Rela@onships We can disRnguish between several categories of Customer RelaRonships, which may co-­‐exist in a company’s relaRonship with a parRcular Customer Segment: 1. Personal Assistance
  91. 91. Customer Rela@onships We can disRnguish between several categories of Customer RelaRonships, which may co-­‐exist in a company’s relaRonship with a parRcular Customer Segment: 1. Personal Assistance 2. Dedicated Personal Assistance
  92. 92. Customer Rela@onships We can disRnguish between several categories of Customer RelaRonships, which may co-­‐exist in a company’s relaRonship with a parRcular Customer Segment: 1. Personal Assistance 2. Dedicated Personal Assistance 3. Self-­‐service
  93. 93. Customer Rela@onships We can disRnguish between several categories of Customer RelaRonships, which may co-­‐exist in a company’s relaRonship with a parRcular Customer Segment: 1. Personal Assistance 2. Dedicated Personal Assistance 3. Self-­‐service 4. Automated services
  94. 94. Customer Rela@onships We can disRnguish between several categories of Customer RelaRonships, which may co-­‐exist in a company’s relaRonship with a parRcular Customer Segment: 1. Personal Assistance 2. Dedicated Personal Assistance 3. Self-­‐service 4. Automated services 5. CommuniRes
  95. 95. Customer Rela@onships We can disRnguish between several categories of Customer RelaRonships, which may co-­‐exist in a company’s relaRonship with a parRcular Customer Segment: 1. Personal Assistance 2. Dedicated Personal Assistance 3. Self-­‐service 4. Automated services 5. CommuniRes 6. CocreaRon
  96. 96. Key Ques@ons 1. What type of relaRonship does each of our Customer Segments expect us to establish and maintain with them 2. Which ones have we established? 3. How costly are they? 4. How are they integrated with the rest of our business model?
  97. 97. customer development principles 1. There Are No Facts Inside Your Building, So Get Outside 2. Failure is an Integral Part of the Search for the Business Model 3. IteraRons and Pivots are Driven by Insight 4. Validate Your Hypotheses with Experiments 5. Success Begins with Buy-­‐In from Investors and Co-­‐Founders 6. No Business Plan Survives First Contact with Customers 7. Not All Startups Are Alike 8. If it’s not About Passion, You’re Dead the Day You Opened your Doors 9. Preserve Cash While Searching. Ayer It’s Found, Spend 10.Communicate and Share Learning http://steveblank.com/2012/03/29/nail-the-customer-development-manifesto/
  98. 98. 5. revenue streams
  99. 99. The Revenue Streams Building Block represents the cash a company generates from each Customer Segment (costs must be subtracted from revenues to create earnings).
  100. 100. Revenue Streams A business model can involve two different types of Revenue Streams: 1. TransacRon revenues resulRng from one-­‐Rme customer payments 2. Recurring revenues resulRng from ongoing payments to either deliver a Value ProposiRon to customers or provide post-­‐purchase customer support
  101. 101. Key Ques@ons • For what value are customers willing to pay? • How much are they willing to pay? • How do they want to pay? • How will you price your product or services? Will it be a one off purchase? Will their be Rered pricing structure? Will it be fixed, variable or subscripRon? • What are other sources of revenue? How much do they contribute to overall revenue?
  102. 102. Revenue Streams There are several ways to generate revenue: 1. Asset Sale
  103. 103. Revenue Streams There are several ways to generate revenue: 1. Asset Sale 2. Usage Fee
  104. 104. Revenue Streams There are several ways to generate revenue: 1. Asset Sale 2. Usage Fee 3. SubscripRon Fees
  105. 105. Revenue Streams There are several ways to generate revenue: 1. Asset Sale 2. Usage Fee 3. SubscripRon Fees 4. Lending/Leasing/RenRng
  106. 106. Revenue Streams There are several ways to generate revenue: 1. Asset Sale 2. Usage Fee 3. SubscripRon Fees 4. Lending/Leasing/RenRng 5. Licensing
  107. 107. Revenue Streams There are several ways to generate revenue: 1. Asset Sale 2. Usage Fee 3. SubscripRon Fees 4. Lending/Leasing/RenRng 5. Licensing 6. Brokerage fees
  108. 108. Revenue Streams There are several ways to generate revenue: 1. Asset Sale 2. Usage Fee 3. SubscripRon Fees 4. Lending/Leasing/RenRng 5. Licensing 6. Brokerage fees 7. AdverRsing
  109. 109. Revenue Streams There are several ways to generate revenue: 1. Asset Sale 2. Usage Fee 3. SubscripRon Fees 4. Lending/Leasing/RenRng 5. Licensing 6. Brokerage fees 7. AdverRsing 8. Freemium
  110. 110. Revenue Streams There are several ways to generate revenue: 1. Asset Sale 2. Usage Fee 3. SubscripRon Fees 4. Lending/Leasing/RenRng 5. Licensing 6. Brokerage fees 7. AdverRsing 8. Freemium 9. Crowdfunding
  111. 111. Fixed Menu Pricing Pricing Mechanisms Predefined prices are based on static variables Dynamic Pricing Prices change based on market conditions List price Fixed prices for individual products, services, or other Value Propositions Negotiation (bargaining) Price negotiated between two or more partners depending on negotiation power and/or negotiation skills Product feature dependent Price depends on the number or quality of Value Proposition features Yield management Price depends on inventory and time of purchase (normally used for perishable resources such as hotel rooms or airline seats) Customer segment dependent Price depends on the type and characteristic of a Customer Segment Real-time-market Price is established dynamically based on supply and demand Volume dependent Price as a function of the quantity purchased Auctions Price determined by outcome of competitive bidding
  112. 112. Payment Providers Distribution Partners Telco Partners Software Development Software Developers Software Free Internet & Video Calling Cheap Calls to Phones (SkypeOut) Mass Customized Skype.com Headset Partnerships Web Users Globally People Who Want to Call Phones Software Development Complaint Management Free SkypeOut Pre- Paid or Subscription Hardware Sales Diagram from Alex Osterwalder, Business Model Generation
  113. 113. 6. key resources
  114. 114. Key Ques@ons • What knowledge, skills, material, human and other resources will you need to deliver your: •Value proposiRon? •DistribuRon channels? •Customer relaRonships? •Revenue streams?
  115. 115. 7. key activities
  116. 116. Key Ques@ons • What key acRviRes are require to deliver: •value proposiRons? •distribuRon channels? •customer relaRonships? •revenue streams?
  117. 117. 8. key partnerships
  118. 118. Key Ques@ons • Who will you partner with? • Who can help you fill any resource gaps or help you provide greater value to customers? • Who can provide distribuRon or markeRng channels to help you reach your target audience? • What key acRviRes might they deliver?
  119. 119. 9. cost structure
  120. 120. Key Ques@ons • How much will it cost to iniRally develop the value proposiRon? • What are the most important costs? • What’s the cost of your MVP? • What key resources and acRviRes are most expensive?
  121. 121. social impact measurement
  122. 122. blended value / triple bottom line social and environmental costsocial and environmental benefit
  123. 123. #ImpactAU2014$ PAY(FOR(FAILURE(OR(INVEST(IN(SUCCESS?(
  124. 124. minimum viable product Barn Suppers. Image courtesy of Philip Dunda
  125. 125. testing assumptions
  126. 126. What are your assumpAons? What assumpRons do you have about your target audience or the product or service you are developing? 1. Does your target audience need what you’re offering? Does it solve a problem that they are looking for help with? 2. Will they want to engage with you to solve that problem? 3. Will they pay what you’re asking? 4. Will they want to access it how and where you’re offering it? 5. Do you know that they will use your offering in the way that it’s intended?
  127. 127. How might you test your assumpAons?
  128. 128. 1. LANDING PAGE
  129. 129. designing your MVP
  130. 130. 2. A BLOG POST
  131. 131. 3. EMAIL
  132. 132. 4. SURVEYS
  133. 133. 3. BASIC PROTOTYPE
  134. 134. 5. EXPLAINER VIDEOS
  135. 135. 6. BASIC PROTOTYPE
  136. 136. 7. WIZARD OF OZ
  137. 137. 8. CONCIERGE
  138. 138. 9. PIECEMEAL
  139. 139. 10. CROWDFUNDING
  140. 140. “By the ?me that product is ready to be distributed widely, it will already have established customers.”
  141. 141. the right way to do lean research • Right quesRons: Make sure you know what you need to know • Right people: Talk to people like your users • Right test/methodology: SomeRmes prototypes, someRmes Wizard of Oz • Right place: When do you go onsite? • Right astude: Listen, don’t sell • Right documentaRon: Record! http://boxesandarrows.com/the-right-way-to-do-lean-research/
  142. 142. guess guess guess guess guess guess guess guess guess guess guess guess guess guess guess guess
  143. 143. Lean Startup Experiments Assumption Testing Experiment Design Hypothesis Participants Approach & Activities Expected Data & Actual Data Learning Goals & Outcomes Decision BMC Iteration
  144. 144. testing your business model
  145. 145. tesRng your business model 1. Are there customers who will buy what you sell? What evidence do you have? 2. Who are your compeRtors? Not just for similar products but for funds, Rme, aGenRon? Why would customers use your product or service instead of the compeRRon? How different are you from the compeRRon? How will you respond to new compeRRon?
  146. 146. tesRng your business model 3. Is this financially viable/sustainable? 4. Is this replicable and/or scalable? How will you increase your reach or impact?
  147. 147. the pitch
  148. 148. what makes a great pitch? 1. Start with why. 1. What’s the problem you’re solving.? 2. Why is it important? 3. What’s the impact? Use memorable facts, figures, anecdotes and metaphors. 2. What’s your soluRon? 3. Who’s your audience? 4. What do they value? 5. How is your idea different from others out there?
  149. 149. what makes a great pitch? 6. Who are you partnering with? 7. What are you building on that already exists? 8. Where are you in the stage of implemenRng your idea? 9. What do you need to take the next step? 10. How can we help you get there? What would you like us to do? 11. Share your passion. 12. Finish with your tagline.
  150. 150. thank you DAVID HOOD @DavidAHood JULIAN WATERS-­‐LYNCH @jwaterslynch join the conversa4on on twi6er with @VicHealth @DoingSomeGood #VHinnov doing something good

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