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EIA 2015 Business Model Design with Lean Canvas

Vincent Pirenne – Innovation Consultant, Board of Innovation

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EIA 2015 Business Model Design with Lean Canvas

  1. 1. July 13, 2015 - Nice “Business model design with Lean canvas”
  2. 2. Hello,
  3. 3. Vincent Pirenne - @vincentpirenne Innovation Consultant 3
  4. 4. Board of innovation?
  5. 5. International office specialised in Business Model Innovation
  6. 6. Our approach
  7. 7. eg O-I - innovation strategy
  8. 8. eg Mölnlycke Innovation bootcamp
  9. 9. eg Sappi - intrapreneurship
  10. 10. “It’s our goal to make corporates innovate like startups to challenge the status quo.” We’ve had the pleasure to innovate with...
  11. 11. Topics of today 1. BM innovation: what - why - how 2. Introduction to the Lean Canvas 3. Channels 4. Costs 5. Revenue model(pricing) 6. Key metrics Business model innovation
  12. 12. Business Model in a nutshell An organization’s logic of creating, 
 delivering and capturing value. just to make sure we’re all on the same page…
  13. 13. Why should I have an innovative business model? Why
  14. 14. Let’s warm up with some exercises Let’s warm up!
  15. 15. The Opposite can also be true you need to break your default and assumptions if you want new ideas
  16. 16. Can the opposite also be true?
  17. 17. Assumptions - Cars Everyone loves to own a sports car
  18. 18. Solution - Cars Nobody wants to own a car
  19. 19. Assumption - Organisation structure My boss can fire me when he wants
  20. 20. Opposite - Organisation structure I can fire my boss when I want
  21. 21. Assumption - Start-ups Source: Graydon Amount of start-ups in Belgium is decreasing.
  22. 22. Opposite - Start-ups increase the amount of start-ups
  23. 23. Opposite - Start-ups Amount of investments in silicon valley startups is increasing Source: CB Insights
  24. 24. Now it is up to you!
  25. 25. Now it is up to you! Step 1: Take a pen and a piece of paper
  26. 26. Now it is up to you! Step 2: Write down 3 assumptions regarding your business idea Step 1: Take a pen and a piece of paper Students will pay to use my idea
  27. 27. Learn from other industries! Criminals Dating Gaming
  28. 28. Now it is up to you! Step 2: Write down 3 assumptions regarding your business idea Step 1: Take a pen and a piece of paper Students will pay to use my idea Step 3: Write down the opposite of these assumptions Students get paid to use my idea Nobody will pay to use my idea
  29. 29. Peter, Angry Frenchman
  30. 30. Sandra, Angry German
  31. 31. Carl, Angry Polish guy
  32. 32. Banking business is changing? Sam, Angry Belgian
  33. 33. 15 years ago - 1 dominant business model
  34. 34. Today, battle of concepts!
  35. 35. Itunes, pay per song
  36. 36. Spotify, subscription on music
  37. 37. This guy…
  38. 38. Tidal, artist streaming service!
  39. 39. Startups are changing industries
  40. 40. Why is this happening?
  41. 41. Volume of innovation efforts last 10 years source: Doblin Group, Inno 15 10 types of innovation Configuration Offering Experience Business model Network Company Structure Process Product performance Product system Service Channel Brand Customer Engagement
  42. 42. 10 types of innovation Configuration Offering Experience Business model Network Company Structure Process Product performance Product system Service Channel Brand Customer Engagement Cumulative Value Creation last 10 years source: Doblin Group, Inno 15 less than 2% of projects, produce more than 90% of value
  43. 43. Top Innovators source: Doblin Group, Inno 15
  44. 44. 10 types of innovation Configuration Offering Experience Business model Network Company Structure Process Product performance Product system Service Channel Brand Customer Engagement Cumulative Value Creation last 10 years source: Doblin Group, Inno 15
  45. 45. The same stuff happens in most business schools…
  46. 46. The traditional approach
  47. 47. Businessplans are Good for
 Certain projects Bad for
 Uncertain projects
  48. 48. Startups = Uncertain A startup is a human institution designed to create a new product or service under conditions of extreme uncertainty Eric Ries
  49. 49. Business plans More assumptions than validations Optimism bias Lack of historical performance Strategic misrepresentation
  50. 50. “If you can show me the business case, it’s already too late!” - Bill Gates
  51. 51. Fine, but how to do it?
  52. 52. Think like a designer!
  53. 53. 1. Idea generation (visual)
  54. 54. 2. Make a prototype (tangible)
  55. 55. 3. Verify/simulate the ideas (engineering)
  56. 56. Product vs Business innovation Product innovation Business innovation
  57. 57. Product vs Business innovation Product innovation Business innovation PROBLEM List your top 1-3 problems Designed by:Designed for: On: Day Month Year Iteration: No. REVENUE STREAMS List your sources of revenue CHANNELS List your path to customers (inbound or outbound) Unfair Advantage Something that cannot easily be bought or copied CUSTOMER SEGMENTS List your target customers and users Unique Value Proposition Single, clear compelling messages that states why you are different and worth paying attention Solution Outline a possible solution for each problem KEY METRICS List the key numbers that tell you how your business is doing COST STRUCTURE List your fixed and variable costs This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. The Lean Canvas www.leancanvas.com HIGH-LEVEL CONCEPT List your X for Y analogy e.g. YouTube = Flickr for videos EXISTING ALTERNATIVES List how these problems are solved today EARLY ADOPTERS List the characteristics of your ideas customers 9 2 5 1 4 8 7 6 3
  58. 58. Product vs Business innovation Product innovation Business innovation PROBLEM List your top 1-3 problems Designed by:Designed for: On: Day Month Year Iteration: No. REVENUE STREAMS List your sources of revenue CHANNELS List your path to customers (inbound or outbound) Unfair Advantage Something that cannot easily be bought or copied CUSTOMER SEGMENTS List your target customers and users Unique Value Proposition Single, clear compelling messages that states why you are different and worth paying attention Solution Outline a possible solution for each problem KEY METRICS List the key numbers that tell you how your business is doing COST STRUCTURE List your fixed and variable costs This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. The Lean Canvas www.leancanvas.com HIGH-LEVEL CONCEPT List your X for Y analogy e.g. YouTube = Flickr for videos EXISTING ALTERNATIVES List how these problems are solved today EARLY ADOPTERS List the characteristics of your ideas customers 9 2 5 1 4 8 7 6 3
  59. 59. Product vs Business innovation Product innovation Business innovation PROBLEM List your top 1-3 problems Designed by:Designed for: On: Day Month Year Iteration: No. REVENUE STREAMS List your sources of revenue CHANNELS List your path to customers (inbound or outbound) Unfair Advantage Something that cannot easily be bought or copied CUSTOMER SEGMENTS List your target customers and users Unique Value Proposition Single, clear compelling messages that states why you are different and worth paying attention Solution Outline a possible solution for each problem KEY METRICS List the key numbers that tell you how your business is doing COST STRUCTURE List your fixed and variable costs This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. The Lean Canvas www.leancanvas.com HIGH-LEVEL CONCEPT List your X for Y analogy e.g. YouTube = Flickr for videos EXISTING ALTERNATIVES List how these problems are solved today EARLY ADOPTERS List the characteristics of your ideas customers 9 2 5 1 4 8 7 6 3 1. 2.
  60. 60. Tool: Lean canvas
  61. 61. PROBLEM List your top 1-3 problems Designed by:Designed for: On: Day Month Year Iteration: No. REVENUE STREAMS List your sources of revenue CHANNELS List your path to customers (inbound or outbound) Unfair Advantage Something that cannot easily be bought or copied CUSTOMER SEGMENTS List your target customers and users Unique Value Proposition Single, clear compelling messages that states why you are different and worth paying attention Solution Outline a possible solution for each problem KEY METRICS List the key numbers that tell you how your business is doing COST STRUCTURE List your fixed and variable costs This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. The Lean Canvas www.leancanvas.com HIGH-LEVEL CONCEPT List your X for Y analogy e.g. YouTube = Flickr for videos EXISTING ALTERNATIVES List how these problems are solved today EARLY ADOPTERS List the characteristics of your ideas customers 9 2 5 1 4 8 7 6 3 Lean canvas
  62. 62. PROBLEM List your top 1-3 problems Designed by:Designed for: On: Day Month Year Iteration: No. REVENUE STREAMS List your sources of revenue CHANNELS List your path to customers (inbound or outbound) Unfair Advantage Something that cannot easily be bought or copied CUSTOMER SEGMENTS List your target customers and users Unique Value Proposition Single, clear compelling messages that states why you are different and worth paying attention Solution Outline a possible solution for each problem KEY METRICS List the key numbers that tell you how your business is doing COST STRUCTURE List your fixed and variable costs This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. The Lean Canvas www.leancanvas.com HIGH-LEVEL CONCEPT List your X for Y analogy e.g. YouTube = Flickr for videos EXISTING ALTERNATIVES List how these problems are solved today EARLY ADOPTERS List the characteristics of your ideas customers 9 2 5 1 4 8 7 6 3 Lean canvas Product Market
  63. 63. Why the lean canvas? © Ash Maurya - Running lean
  64. 64. PROBLEM List your top 1-3 problems Designed by:Designed for: On: Day Month Year Iteration: No. REVENUE STREAMS List your sources of revenue CHANNELS List your path to customers (inbound or outbound) Unfair Advantage Something that cannot easily be bought or copied CUSTOMER SEGMENTS List your target customers and users Unique Value Proposition Single, clear compelling messages that states why you are different and worth paying attention Solution Outline a possible solution for each problem KEY METRICS List the key numbers that tell you how your business is doing COST STRUCTURE List your fixed and variable costs This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. The Lean Canvas www.leancanvas.com HIGH-LEVEL CONCEPT List your X for Y analogy e.g. YouTube = Flickr for videos EXISTING ALTERNATIVES List how these problems are solved today EARLY ADOPTERS List the characteristics of your ideas customers 9 2 5 1 4 8 7 6 3 Unfair advantage 9 building blocks Channels Revenue streams UVP Customer segments Costs Key metrics Problem Solution
  65. 65. Let’s use an example
  66. 66. Sleep!
  67. 67. Think about some problems regarding sleep… Problems? Snoring Falling asleep Sleep efficiency Waking up at night Waking up … less daytime energy
  68. 68. Sleep.io - Counter behaviour therapy
  69. 69. Sleep.io - Counter behaviour therapy
  70. 70. What is Sleepio
  71. 71. Lean Canvas : Problem List the top one to three problems! e.g “Problems falling asleep” Focus on customer segment! The Problem List existing alternatives e.g “SleepClinic” Many times NOT from an obvious competitor The problem
  72. 72. B2B VS B2C Lean Canvas : Customer Segments Define your Customer(s) People who will buy your product Narrow down! Your prototypical customer Define other users on the stakeholder map (exercise) Customer Segments
  73. 73. Lean Canvas : Unique Value Proposition Unique Value Proposition Why you are different and worth getting attention Answer the what, who and why. UVP 8 seconds rule First-time customers spend eight seconds on average on a landing page! Your UVP is the first interaction with your product! Your message
  74. 74. Unique value proposition
  75. 75. UVP Sleepio
  76. 76. Lean Canvas : Channels How will you get customers? Communication VS Distribution Retention before referral You have to first sell your product yourself, before letting others do it. Channels Reaching customers
  77. 77. Lean Canvas : Revenue Streams & Cost Structure Revenue out of demos? First DEMO should address the TOP problems If you intend to charge for your product, charge from day one! You don’t need a lot users to support learning, just a few good customers Revenue & Costs Cost VS price
  78. 78. Lean Canvas : Key Metrics Key Metrics Key numbers that tell you how your business is doing Real time Before you get the sales report Key Metrics Downloads Dig deeper
  79. 79. Lean Canvas : Unfair Advantage Unfair Advantage Passion, features, ... are not unfair advantages A real unfair advantage cannot easily be copied Anything worth copying will be copied, especially once you start to show a viable business model. Unfair Advantage The team Prizes
  80. 80. Lean Canvas - Brainstorm tips Some Lean Canvas Rules It’s a sketch! It’s a working document! Use post-its! Think in the present! Use a customer-centric approach
  81. 81. PROBLEM List your top 1-3 problems Designed by:Designed for: On: Day Month Year Iteration: No. REVENUE STREAMS List your sources of revenue CHANNELS List your path to customers (inbound or outbound) Unfair Advantage Something that cannot easily be bought or copied CUSTOMER SEGMENTS List your target customers and users Unique Value Proposition Single, clear compelling messages that states why you are different and worth paying attention Solution Outline a possible solution for each problem KEY METRICS List the key numbers that tell you how your business is doing COST STRUCTURE List your fixed and variable costs This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. The Lean Canvas www.leancanvas.com HIGH-LEVEL CONCEPT List your X for Y analogy e.g. YouTube = Flickr for videos EXISTING ALTERNATIVES List how these problems are solved today EARLY ADOPTERS List the characteristics of your ideas customers 9 2 5 1 4 8 7 6 3 9 building blocks Unfair advantage Channels Revenue streams UVP Customer segments Costs Key metrics Problem Solution
  82. 82. PROBLEM List your top 1-3 problems Designed by:Designed for: On: Day Month Year Iteration: No. REVENUE STREAMS List your sources of revenue CHANNELS List your path to customers (inbound or outbound) Unfair Advantage Something that cannot easily be bought or copied CUSTOMER SEGMENTS List your target customers and users Unique Value Proposition Single, clear compelling messages that states why you are different and worth paying attention Solution Outline a possible solution for each problem KEY METRICS List the key numbers that tell you how your business is doing COST STRUCTURE List your fixed and variable costs This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. The Lean Canvas www.leancanvas.com HIGH-LEVEL CONCEPT List your X for Y analogy e.g. YouTube = Flickr for videos EXISTING ALTERNATIVES List how these problems are solved today EARLY ADOPTERS List the characteristics of your ideas customers 9 2 5 1 4 8 7 6 3 Unfair advantage Focus for today Channels Revenue streams UVP Customer segments Costs Key metrics Problem Solution
  83. 83. PROBLEM List your top 1-3 problems Designed by:Designed for: On: Day Month Year Iteration: No. REVENUE STREAMS List your sources of revenue CHANNELS List your path to customers (inbound or outbound) Unfair Advantage Something that cannot easily be bought or copied CUSTOMER SEGMENTS List your target customers and users Unique Value Proposition Single, clear compelling messages that states why you are different and worth paying attention Solution Outline a possible solution for each problem KEY METRICS List the key numbers that tell you how your business is doing COST STRUCTURE List your fixed and variable costs This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. The Lean Canvas www.leancanvas.com HIGH-LEVEL CONCEPT List your X for Y analogy e.g. YouTube = Flickr for videos EXISTING ALTERNATIVES List how these problems are solved today EARLY ADOPTERS List the characteristics of your ideas customers 9 2 5 1 4 8 7 6 3 Unfair advantage Write down your key answers for these 4 blocks UVP Customer segments Problem Solution
  84. 84. PROBLEM List your top 1-3 problems Designed by:Designed for: On: Day Month Year Iteration: No. REVENUE STREAMS List your sources of revenue CHANNELS List your path to customers (inbound or outbound) Unfair Advantage Something that cannot easily be bought or copied CUSTOMER SEGMENTS List your target customers and users Unique Value Proposition Single, clear compelling messages that states why you are different and worth paying attention Solution Outline a possible solution for each problem KEY METRICS List the key numbers that tell you how your business is doing COST STRUCTURE List your fixed and variable costs This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. The Lean Canvas www.leancanvas.com HIGH-LEVEL CONCEPT List your X for Y analogy e.g. YouTube = Flickr for videos EXISTING ALTERNATIVES List how these problems are solved today EARLY ADOPTERS List the characteristics of your ideas customers 9 2 5 1 4 8 7 6 3 Unfair advantage Focus for today Channels Revenue streams UVP Customer segments Costs Key metrics Problem Solution
  85. 85. PROBLEM List your top 1-3 problems Designed by:Designed for: On: Day Month Year Iteration: No. REVENUE STREAMS List your sources of revenue CHANNELS List your path to customers (inbound or outbound) Unfair Advantage Something that cannot easily be bought or copied CUSTOMER SEGMENTS List your target customers and users Unique Value Proposition Single, clear compelling messages that states why you are different and worth paying attention Solution Outline a possible solution for each problem KEY METRICS List the key numbers that tell you how your business is doing COST STRUCTURE List your fixed and variable costs This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. The Lean Canvas www.leancanvas.com HIGH-LEVEL CONCEPT List your X for Y analogy e.g. YouTube = Flickr for videos EXISTING ALTERNATIVES List how these problems are solved today EARLY ADOPTERS List the characteristics of your ideas customers 9 2 5 1 4 8 7 6 3 Unfair advantage Starting point Channels Revenue streams UVP Customer segments Costs Key metrics Problem Solution
  86. 86. PROBLEM List your top 1-3 problems Designed by:Designed for: On: Day Month Year Iteration: No. REVENUE STREAMS List your sources of revenue CHANNELS List your path to customers (inbound or outbound) Unfair Advantage Something that cannot easily be bought or copied CUSTOMER SEGMENTS List your target customers and users Unique Value Proposition Single, clear compelling messages that states why you are different and worth paying attention Solution Outline a possible solution for each problem KEY METRICS List the key numbers that tell you how your business is doing COST STRUCTURE List your fixed and variable costs This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. The Lean Canvas www.leancanvas.com HIGH-LEVEL CONCEPT List your X for Y analogy e.g. YouTube = Flickr for videos EXISTING ALTERNATIVES List how these problems are solved today EARLY ADOPTERS List the characteristics of your ideas customers 9 2 5 1 4 8 7 6 3 Unfair advantage Starting point Channels Revenue streams UVP Customer segments Costs Key metrics Problem Solution Product/ Service Buyers
  87. 87. Communication VS Distribution Channels
  88. 88. Eco-system surrounding your product @Value stream
  89. 89. … Using start-up tools @Waik
  90. 90. Tool: Business model blocks
  91. 91. A visual prototype of a ecosystem
  92. 92. Business Model Blocks BUSINESS MODEL KIT
  93. 93. Transactions
  94. 94. 6 stakeholders Consumer
  95. 95. 10 objects that these parties can transfer Product Service Experience Exposure Reputation Money Less Money Credits Data Right
  96. 96. Indiegogo & KickStarter Product 5 Money 5 Less Money Experience Right Data 1 Reputation Credits Service Exposure
  97. 97. Indiegogo & KickStarter - Crowdfunding Product 5 Money 5 Less Money Experience Right Data 1 Reputation Credits Service Exposure
  98. 98. Product 5 Money 5 Less Money Experience Right Data 1 Reputation Credits Service Exposure Indiegogo & KickStarter - Crowdfunding
  99. 99. Product 5 Money 5 Less Money Experience Right Data 1 Reputation Credits Service Exposure Indiegogo & KickStarter - Crowdfunding
  100. 100. TunaDJGear: Attachable buttons Product 5 Money 5 Less Money Experience Right Data 1 Reputation Credits Service Exposure
  101. 101. Product 5 Money 5 Less Money Experience Right Data 1 Reputation Credits Service Exposure Navdy - Google Glass for cars
  102. 102. Your turn!
  103. 103. Product 5 Money 5 Less Money Experience Right Data 1 Reputation Credits Service Exposure Cardrops - Delivery service
  104. 104. Product 5 Money 5 Less Money Experience Right Data 1 Reputation Credits Service Exposure Digipill - Audiofiles to change your mind
  105. 105. Product 5 Money 5 Less Money Experience Right Data 1 Reputation Credits Service Exposure Runkeeper
  106. 106. Product 5 Money 5 Less Money Experience Right Data 1 Reputation Credits Service Exposure ZombiesRun - Running as a game
  107. 107. Product 5 Money 5 Less Money Experience Right Data 1 Reputation Credits Service Exposure Upstart - Students sell the right on their future income
  108. 108. Product 5 Money 5 Less Money Experience Right Data 1 Reputation Credits Service Exposure Franchising Models
  109. 109. Your turn!
  110. 110. Product 5 Money 5 Less Money Experience Right Data 1 Reputation Credits Service Exposure Datacoup - sell your data
  111. 111. Product 5 Money 5 Less Money Experience Right Data 1 Reputation Credits Service Exposure Addapp - personalised data insights
  112. 112. Product 5 Money 5 Less Money Experience Right Data 1 Reputation Credits Service Exposure Klout - Online influence as reputation
  113. 113. Product 5 Money 5 Less Money Experience Right Data 1 Reputation Credits Service Exposure Carrot > To-do list with a personality
  114. 114. Product 5 Money 5 Less Money Experience Right Data 1 Reputation Credits Service Exposure Thanx
  115. 115. Product 5 Money 5 Less Money Experience Right Data 1 Reputation Credits Service Exposure Moskou - Pay with Exercises
  116. 116. Xaxis Sync Product 5 Money 5 Less Money Experience Right Data 1 Reputation Credits Service Exposure
  117. 117. Product 5 Money 5 Less Money Experience Right Data 1 Reputation Credits Service Exposure Pay with a Tweet
  118. 118. Your turn!
  119. 119. Let’s try it out!
  120. 120. Denvy, Has an idea! “How could he realise his idea?”
  121. 121. Quirky.com Example case: “Quirky raised the bar for co-creation platforms by paying out influencers. Every week 2 new products are being launched.” +500 people co-designed 1 new iPad stand* *quirky.com/products/30-Cloak-iPad-Case
  122. 122. Quirky.com - co-creation product development Developed 38 products in 3 years
  123. 123. Type of products developed via this business model
  124. 124. Idea creator can share his idea
  125. 125. Interested buyers can pre-order
  126. 126. One minimum threshold is reached, production starts
  127. 127. Everyone gets a part of the share
  128. 128. One level higher: Ecosystem & value networks
  129. 129. Channels Acquisition How to acquire new (or first) customers?
  130. 130. How do we acquire new customers?
  131. 131. Channels Distribution How to get the product to the customer?
  132. 132. How do we get the product to the customer?
  133. 133. Focus on Acquisition channels Acquisition
  134. 134. Customer decision journey Start @mckinsey
  135. 135. Acquisition = traction “Many entrepreneurs who build great products simply don’t have a good distribution strategy” - Marc Andreesen - by Gabriel Weinberg and Justin Mares @Traction: The Book
  136. 136. Focus on Acquisition channels Selection of 6 proven channels for start-ups to get traction by Gabriel Weinberg and Justin Mares @Traction: The Book
  137. 137. 6 interesting channels Unconventional PR Targeting blogs Social & display ads Viral Marketing Search engine marketing Speaking engagements
  138. 138. Viral marketing Viral marketing consists of growing your user base by encouraging your users to refer other users.
  139. 139. Viral marketing
  140. 140. Viral marketing
  141. 141. Unconventional PR Unconventional PR involves doing something exceptional (like publicity stunts) to draw media attention.
  142. 142. Unconventional PR Unconventional PR involves doing something exceptional (like publicity stunts) to draw media attention.
  143. 143. Social and display ads Ads on popular sites Facebook and hundreds of other niche sites can be a powerful and scalable way to reach new customers.
  144. 144. Social and display ads Ads on popular sites Facebook and hundreds of other niche sites can be a powerful and scalable way to reach new customers.
  145. 145. Search engine marketing Search engine marketing (SEM) allows companies to advertise to consumers searching on Google and other search engines.
  146. 146. Search engine marketing Search engine marketing (SEM) allows companies to advertise to consumers searching on Google and other search engines.
  147. 147. Speaking engagements Leverage a speaking event, give an awesome talk and grow your startup’s profile at such speaking gigs.
  148. 148. Speaking engagements Leverage a speaking event, give an awesome talk and grow your startup’s profile at such speaking gigs.
  149. 149. Target blogs Target niche blogs early one, to find early adopters and turn them into ambassadors.
  150. 150. Target blogs Target niche blogs early one, to find early adopters and turn them into ambassadors.
  151. 151. Your turn - How can you use one of these channels Unconventional PR Targeting blogs Social & display ads Viral Marketing Search engine marketing Speaking engagements
  152. 152. PROBLEM List your top 1-3 problems Designed by:Designed for: On: Day Month Year Iteration: No. REVENUE STREAMS List your sources of revenue CHANNELS List your path to customers (inbound or outbound) Unfair Advantage Something that cannot easily be bought or copied CUSTOMER SEGMENTS List your target customers and users Unique Value Proposition Single, clear compelling messages that states why you are different and worth paying attention Solution Outline a possible solution for each problem KEY METRICS List the key numbers that tell you how your business is doing COST STRUCTURE List your fixed and variable costs This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. The Lean Canvas www.leancanvas.com HIGH-LEVEL CONCEPT List your X for Y analogy e.g. YouTube = Flickr for videos EXISTING ALTERNATIVES List how these problems are solved today EARLY ADOPTERS List the characteristics of your ideas customers 9 2 5 1 4 8 7 6 3 Unfair advantage Costs Channels Revenue streams UVP Customer segments Costs Key metrics Problem Solution
  153. 153. PROBLEM List your top 1-3 problems Designed by:Designed for: On: Day Month Year Iteration: No. REVENUE STREAMS List your sources of revenue CHANNELS List your path to customers (inbound or outbound) Unfair Advantage Something that cannot easily be bought or copied CUSTOMER SEGMENTS List your target customers and users Unique Value Proposition Single, clear compelling messages that states why you are different and worth paying attention Solution Outline a possible solution for each problem KEY METRICS List the key numbers that tell you how your business is doing COST STRUCTURE List your fixed and variable costs This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. The Lean Canvas www.leancanvas.com HIGH-LEVEL CONCEPT List your X for Y analogy e.g. YouTube = Flickr for videos EXISTING ALTERNATIVES List how these problems are solved today EARLY ADOPTERS List the characteristics of your ideas customers 9 2 5 1 4 8 7 6 3 Costs Costs Price
  154. 154. How to manage your costs… Costs
  155. 155. When was the electric vehicle born?
  156. 156. Detroit Electric Car 1917
  157. 157. One dominant business model @investopedia
  158. 158. One dominant business model A pricing method in which the selling price is established by adding a markup to total variable costs. Cost Plus Pricing @investopedia
  159. 159. What is the production cost of an Ipad Air 2? @techcrunch COST Ipad-air 16Gb Wifi ?
  160. 160. Avg. of € 248! @techcrunch COST Ipad-air 16Gb Wifi € 248 $245 - $323 Ipad-air 16Gb Wifi
  161. 161. + Markup @techcrunch COST + 50% Markup + € 142€ 248 % fixed cost + margin
  162. 162. Cost Plus Pricing €390 @techcrunch COST + 50% Markup PRICE + € 142€ 248 % fixed cost + margin Cost Plus Pricing
  163. 163. Damn! I paid more…
  164. 164. Percieved value Price is not what you think you can charge, but what your customers are willing to pay based on the perceived value.
  165. 165. Percieved value Price is not what you think you can charge, but what your customers are willing to pay based on the perceived value. €1500 €500 €700
  166. 166. Cost plus pricing @Pete Abilla Profit = (Sales Price – Cost)xVolume
  167. 167. I ‘ll talk more about pricing later.. but first things first!
  168. 168. Starting your business! Time Traction Product/market fit YOU
  169. 169. Bootstrapping? @Startup institute
  170. 170. Bootstrapping? @Startup institute
  171. 171. Bootstrap your business Spend your savings Do an additional job Sell your car Work from your garage Find friends & family to support you …
  172. 172. 4 tips on how to bootstrap your business!
  173. 173. Some tips on how to bootstrap your business! Short cycles Outsourcing is key Eliminate features Fake it,…
  174. 174. 1. Short cycles Waterfall = Risky!
  175. 175. 1. Short cycles Waterfall = risky Release! Risk Time build build build build CC @lfittl
  176. 176. 1. Short cycles Waterfall = risky Release! Risk Time build build build build CC @lfittl 80% of startups fail!
  177. 177. 1. Short cycles Lean = shorter cycles! Release! Risk Time Release! Release! Release! build build build build CC @lfittl
  178. 178. 1. Short cycles Lean = shorter cycles! Release! Risk Time Release! Release! Release! build build build build CC @lfittl Fail & learn fast
  179. 179. 2. Eliminate unnecessary features
  180. 180. STEP 1 f. x f. y f. z f. a f. b f. c features/characteristics of your concept
  181. 181. features/characteristics of your concept STEP 1 Rank the features from the perspective of your early adopters STEP 2 f. x f. y f. z f. a f. b f. c
  182. 182. Structured process: The Innovation Battlefied Pleasure level “unexpected awesomeness” “harder,better, faster, stronger.” “Expected essentials” How hard will a feature be missed if left out? How much pleasure does this feature bring? “I don’t care...” “It hurts, take it away.” H L L H Indispensability Level f. x f. y f. z f. a f. b f. c
  183. 183. How to rank the features of your concept? How much happiness does this feature bring to our customer? Would this feature be missed by our customer if left out? f. x
  184. 184. Let’s look at “service” we all know:
  185. 185. What are the features or characteristics of this concept? f. x Handle with care Able to track Within 3 days …
  186. 186. Pleasure level “unexpected awesomeness” “harder,better, faster, stronger.” “Expected essentials” How hard will a feature be missed if left out? How much pleasure does this feature bring? “I don’t care...” “It hurts, take it away.” H L L H Indispensability Level How much happiness does this feature bring to our customer? Would this feature be missed by our customer if left out? Handle with care Able to track Within 3 days
  187. 187. Pleasure level “unexpected awesomeness” “harder,better, faster, stronger.” “Expected essentials” How hard will a feature be missed if left out? How much pleasure does this feature bring? “I don’t care...” “It hurts, take it away.” H L L H Indispensability Level How much happiness does this feature bring to our customer? Would this feature be missed by our customer if left out? Handle with care Able to track Within 3 days
  188. 188. What are the features or characteristics of this concept? f. x SMS alert Free recall Real-time tracking …
  189. 189. Pleasure level “unexpected awesomeness” “harder,better, faster, stronger.” “Expected essentials” How hard will a feature be missed if left out? How much pleasure does this feature bring? “I don’t care...” “It hurts, take it away.” H L L H Indispensability Level How much happiness does this feature bring to our customer? Would this feature be missed by our customer if left out? SMS alert Free recall Real-time tracking
  190. 190. Pleasure level “unexpected awesomeness” “harder,better, faster, stronger.” “Expected essentials” How hard will a feature be missed if left out? How much pleasure does this feature bring? “I don’t care...” “It hurts, take it away.” H L L H Indispensability Level How much happiness does this feature bring to our customer? Would this feature be missed by our customer if left out? Handle with care Able to track Within 3 days SMS alert Free recall Real-time tracking
  191. 191. What are the features or characteristics of this concept? f. x Cardboard box FedEx logo Vans …
  192. 192. Handle with care Able to track Within 3 days SMS alert Free recall Real-time tracking Pleasure level “unexpected awesomeness” “harder,better, faster, stronger.” “Expected essentials” How hard will a feature be missed if left out? How much pleasure does this feature bring? “I don’t care...” “It hurts, take it away.” H L L H Indispensability Level How much happiness does this feature bring to our customer? Would this feature be missed by our customer if left out? Cardboard Vans FedEx Logo
  193. 193. Handle with care Able to track Within 3 days SMS alert Free recall Real-time tracking Pleasure level “unexpected awesomeness” “harder,better, faster, stronger.” “Expected essentials” How hard will a feature be missed if left out? How much pleasure does this feature bring? “I don’t care...” “It hurts, take it away.” H L L H Indispensability Level How much happiness does this feature bring to our customer? Would this feature be missed by our customer if left out? Cardboard Vans FedEx Logo
  194. 194. What are the features or characteristics of this concept? f. x €15/parcel Be at home Sign-off …
  195. 195. Handle with care Able to track Within 3 days SMS alert Free recall Real-time tracking Pleasure level “unexpected awesomeness” “harder,better, faster, stronger.” “Expected essentials” How hard will a feature be missed if left out? How much pleasure does this feature bring? “I don’t care...” “It hurts, take it away.” H L L H Indispensability Level How much happiness does this feature bring to our customer? Would this feature be missed by our customer if left out? Cardboard Vans FedEx Logo Be home €15/p Sign-off
  196. 196. Handle with care Able to track Within 3 days SMS alert Free recall Real-time tracking Pleasure level “unexpected awesomeness” “harder,better, faster, stronger.” “Expected essentials” How hard will a feature be missed if left out? How much pleasure does this feature bring? “I don’t care...” “It hurts, take it away.” H L L H Indispensability Level How much happiness does this feature bring to our customer? Would this feature be missed by our customer if left out? Cardboard Vans FedEx Logo Be home €15/p Sign-off
  197. 197. Pleasure level “unexpected awesomeness” “harder,better, faster, stronger.” “Expected essentials” How hard will a feature be missed if left out? How much pleasure does this feature bring? “I don’t care...” “It hurts, take it away.” H L L H Indispensability Level How much happiness does this feature bring to our customer? Would this feature be missed by our customer if left out? Handle with care Able to track Within 3 days SMS alert Free recall Real-time tracking Cardboard Vans FedEx Logo Be home €15/p Sign-off <15 min
  198. 198. Pleasure level “unexpected awesomeness” “harder,better, faster, stronger.” “Expected essentials” How hard will a feature be missed if left out? How much pleasure does this feature bring? “I don’t care...” “It hurts, take it away.” H L L H Indispensability Level How much happiness does this feature bring to our customer? Would this feature be missed by our customer if left out? Handle with care Able to track Within 3 days SMS alert Free recall Real-time tracking Cardboard Vans FedEx Logo Be home €15/p Sign-off <15 min
  199. 199. New features?
  200. 200. Pleasure level “unexpected awesomeness” “harder,better, faster, stronger.” “Expected essentials” How hard will a feature be missed if left out? How much pleasure does this feature bring? “I don’t care...” “It hurts, take it away.” H L L H Indispensability Level How much happiness does this feature bring to our customer? Would this feature be missed by our customer if left out? Handle with care Able to track Within 3 days SMS alert Free recall Real-time tracking Cardboard Vans FedEx Logo Be home €15/p Sign-off Drone
  201. 201. 3. Fake it, until you make it!
  202. 202. 4. Outsource as much as possible
  203. 203. PROBLEM List your top 1-3 problems Designed by:Designed for: On: Day Month Year Iteration: No. REVENUE STREAMS List your sources of revenue CHANNELS List your path to customers (inbound or outbound) Unfair Advantage Something that cannot easily be bought or copied CUSTOMER SEGMENTS List your target customers and users Unique Value Proposition Single, clear compelling messages that states why you are different and worth paying attention Solution Outline a possible solution for each problem KEY METRICS List the key numbers that tell you how your business is doing COST STRUCTURE List your fixed and variable costs This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. The Lean Canvas www.leancanvas.com HIGH-LEVEL CONCEPT List your X for Y analogy e.g. YouTube = Flickr for videos EXISTING ALTERNATIVES List how these problems are solved today EARLY ADOPTERS List the characteristics of your ideas customers 9 2 5 1 4 8 7 6 3 Unfair advantage 1. Revenue streams Channels Revenue streams UVP Customer segments Costs Key metrics Problem Solution
  204. 204. Key question: What is the right price for my product?
  205. 205. Price VS Profit 1% 11% Price is a dominant factor for your profitability!
  206. 206. Percieved value - Lean pricing Price is not what you think you can charge, but what your customers are willing to pay based on the perceived value.
  207. 207. Percieved value - Lean pricing Price is not what you think you can charge, but what your customers are willing to pay based on the perceived value. €1500 €500 €700
  208. 208. Optimal Price
  209. 209. Optimal Price The optimal price provides the maximum revenue not the highest margin or the largest number of customers.
  210. 210. Optimal Price < #customers < €€€ The optimal price provides the maximum revenue not the highest margin or the largest number of customers.
  211. 211. Optimal Price The optimal price provides the maximum revenue not the highest margin or the largest number of customers. Optimal
  212. 212. How people set their perceptions Some insights on Lean pricing
  213. 213. Percieved value - Lean Pricing Product lifecycle 5’s & 9’s Knowledge Reference point Freedom Loss aversion @Andreas Klinger
  214. 214. 1. Reference Point €1500 €500 €700
  215. 215. 1. Reference Point
  216. 216. 2. Product lifecycle
  217. 217. 2. Product lifecycle
  218. 218. 3. Knowledge
  219. 219. 3. Knowledge €500 €719 iPad mini 3, Wi-Fi + Cellular, 128 GB iPad 2, Wi-Fi, 16 GB
  220. 220. 4. Choice & freedom
  221. 221. 4. Choice & freedom
  222. 222. 5. Loss aversion
  223. 223. 5. Loss aversion
  224. 224. 6. 5’s & 9’s
  225. 225. 6. 5’s & 9’s
  226. 226. Product lifecycle 5’s & 9’s Knowledge Reference point Freedom Loss aversion
  227. 227. #caution Some Pitfalls when defining your price
  228. 228. Competitors
  229. 229. Fairness € 20 € 20
  230. 230. Pirates
  231. 231. Product lifecycle 5’s & 9’s Knowledge Reference point Freedom Loss aversion Competitors Fairness Pirates
  232. 232. To understand your if your succes Key metrics
  233. 233. Key metrics for succes?
  234. 234. Key metrics for succes? - Lean analytics + Slideshare by Andreas Klinger Source: Lean analytics Lean Analytics: Use Data to Build a Better Startup Faster by Alistair Croll , Benjamin Yoskovitz
  235. 235. Successful? In a startup, the purpose of analytics is to iterate to product/market fit before the money runs out.
  236. 236. Product market fit Time Traction Product/market fit @andreasklinger
  237. 237. Product market fit Time Traction Product/market fit Empathy Stickness Virality Revenue Scale @andreasklinger
  238. 238. Product market fit Time Traction Product/market fit Empathy Stickness Virality Revenue Scale Find a product the market wants Optimise the product for the market @andreasklinger
  239. 239. Product market fit Time Traction Product/market fit Empathy Stickness Virality Revenue Scale Find a product the market wants Optimise the product for the market @andreasklinger Clones start here Product & customer development Scale marketing & operations
  240. 240. Key metrics for START-UP succes? - Lean Analytics
  241. 241. Key metrics for START-UP succes? - Lean Analytics + Slideshare by Andreas Klinger Source: Lean analytics No Vanity metrics Metrics need to hurt Use Cohords Early stage metrics Use a framework (AARRR) Meaningful KPIs
  242. 242. 1. Early stage metrics
  243. 243. 1. Early stage metrics
  244. 244. 2. Vanity metrics
  245. 245. 2. Segment users into cohorts
  246. 246. 2. Segment users into cohorts Groups of people that share attributes Cohorts
  247. 247. 2. Segment users into cohorts
  248. 248. 2. Segment users into cohorts
  249. 249. 2. Segment users into cohorts
  250. 250. 2. Segment users into cohorts
  251. 251. 4. Use a framework (AARRR)
  252. 252. 4. Use a framework (AARRR) Acquisition Activation Retention Referral Revenue
  253. 253. 4. Use a framework (AARRR) - Example
  254. 254. 4. Use a framework (AARRR) - Example Acquisition: login Activation: picture Retention: reuse Referral: share Revenue: €
  255. 255. 4. Use a framework (AARRR) - Example
  256. 256. 5. Find meaningful KPI’s Acquisition Activation Retention Referral Revenue
  257. 257. 5. Find meaningful KPI’s 1. Linked to assumptions of your product 2. Rate or ratio 3. Comparable to your history
 (market = reality check) 4. Explainable
  258. 258. 6. Metrics need to hurt
  259. 259. 6. Metrics need to hurt If yo are not ashamed about the KPIs in your product dashboard than something is wrong. Either you focus on the wrong KPIs or you do not drill deep enough.
  260. 260. 6. Metrics need to hurt: Example 90 % activation rate Only vote for friends - No usage Activation = vote for more than 1
  261. 261. Key metrics for succes? - Lean analytics + Slideshare by Andreas Klinger Source: Lean analytics No Vanity metrics Metrics need to hurt Use Cohords Early stage metrics Use a framework (AARRR) Meaningful KPIs
  262. 262. PROBLEM List your top 1-3 problems Designed by:Designed for: On: Day Month Year Iteration: No. REVENUE STREAMS List your sources of revenue CHANNELS List your path to customers (inbound or outbound) Unfair Advantage Something that cannot easily be bought or copied CUSTOMER SEGMENTS List your target customers and users Unique Value Proposition Single, clear compelling messages that states why you are different and worth paying attention Solution Outline a possible solution for each problem KEY METRICS List the key numbers that tell you how your business is doing COST STRUCTURE List your fixed and variable costs This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. The Lean Canvas www.leancanvas.com HIGH-LEVEL CONCEPT List your X for Y analogy e.g. YouTube = Flickr for videos EXISTING ALTERNATIVES List how these problems are solved today EARLY ADOPTERS List the characteristics of your ideas customers 9 2 5 1 4 8 7 6 3 Unfair advantage A quick overview Channels Revenue streams UVP Customer segments Costs Key metrics Problem Solution
  263. 263. @VincentPirenne vincent@boardofinnovation.com Many thanks! Questions, just ask.

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