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Jbmc niigata session october 13, 2018

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Japan Business Model Competition-NIIGATA (JBMC-NIIGATA)
ビジネスモデル特別セッション
「How to prepare for JBMC」English
(2018年10月13日 国際大学にて)

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Jbmc niigata session october 13, 2018

  1. 1. 2019 Japan Business Model Competition October13,2018 Waseda University International University of Japan Dr. Takeru Ohe 2018/10/14 (C) Takeru Ohe 1
  2. 2. Dr. Takeru Ohe JBMC Executive Committee He sits on the boards of Cognex Japan K.K., a machine vision manufacturer, and Consulting OASIS K.K., a consulting firm specializing in new business development. He taught Entrepreneurship at Waseda University, Business School and served as managing director of the Waseda University Incubation Center. Currently he serves as an advisor to Research Promotion Division of Waseda University and visiting professor at the International University of Japan. Ph.D. in Experimental Physics from the University of Maryland and MBA from Columbia University Graduate School of Business. Dr. Ohe has initiated various successful projects: “Born ASEAN” project, Consulting Based Learning for ASEAN SMEs program, Teaching Incubation Center Project at Waseda University. Waseda Venture Kids program and etc. 2018/10/14 (C) Takeru Ohe 2
  3. 3. Table of Contents 1. VUCA and Experiment 2. Management of Assumptions 3. International Business Model Competition 4. Japan Business Model Competition 5. How to prepare for Japan Business Model Competition 2018/10/14 (C) Takeru Ohe 3
  4. 4. 1. VUCA and Experiment 2018/10/14 (C) Takeru Ohe 4
  5. 5. It is crazy out there! ”VUCA” Volatility, Uncertainty, Complexity, and Ambiguity 1. Any businesses are facing VUCA environment • (Volatility, Uncertainty, Complexity, and Ambiguity). 2. There is additional degree of uncertainty and ambiguity for any new business since there are many unknown. ➢To promote a new business, you must deal with uncertainty and ambiguity, and take advantage of the VUCA environment. ➢End of Competitive Advantage, only Tentative Advantage. 2018/10/14 (C) Takeru Ohe 5
  6. 6. 1-1 VUCA Environment 2018/10/14 (C) Takeru Ohe 6
  7. 7. Harvard Business Review January-February 2014 What VUCA Really Means for You Nathan Bennett and James Lemoine COMPLEXITY VOLATILITY AMBIGUITY UNCERTAINTY How much do you know about the situation How well can you predict the results of your actions 2018/10/14 (C) Takeru Ohe 7
  8. 8. Volatility • Characteristics: The challenge is unexpected or unstable and may be unknown duration, but it’s not necessarily hard to understand; knowledge about it is often available. • Example: • Prices fluctuate after natural disaster takes a supplier offline. • Approach • Build in stack and devote resources to preparedness for instance, stock pile inventory or overbuy talent, • These steps are typically expensive • Your investment should match the risk Ref. Nathan Bennett and James Lemoine, HBR2014 2018/10/14 (C) Takeru Ohe 8
  9. 9. Uncertainty • Characteristics • Despite a lack of other information, the event’s basic cause and effect are known. • Change is possible but not a given. • Example • A competitor’s pending product launch muddies the future of the business and the market. • Approach • Invest in information – collect, interpret, and share it. This works best in conjunction with structural changes, such as adding information analysis networks, that can reduce on going uncertainty. Ref. Nathan Bennett and James Lemoine, HBR2014 2018/10/14 (C) Takeru Ohe 9
  10. 10. Complexity • Characteristics: • The situation has many interconnected parts and variables. Some information is available or can be predicted but the volume or nature of it can be overwhelming to process. • Example: • Doing business in many countries with unique regulatory environments, tariffs, and cultural values. • Approach: • Restructure, bring on or develop specialists, and build up resources adequate to address the complexity. Ref. Nathan Bennett and James Lemoine, HBR2014 2018/10/14 (C) Takeru Ohe 10
  11. 11. Ambiguity • Characteristics: • Causal relationships are completely unclear. No precedents exist; you face “unknown unknowns.” • Example: • Move into immature or emerging markets or to launch products outside your core competences. • Approach: • Experiment. • Understanding cause and effect requires generating hypotheses and testing them. • Design your experiments so that lessons learned can be broadly applied. Ref. Nathan Bennett and James Lemoine, HBR2014 2018/10/14 (C) Takeru Ohe 11
  12. 12. 3X3 New Business Development Matrix Technology Theydonotknow Wedonotknow Technology Ambiguity Technology Ambiguity, Market Uncertainty Technology & Market Ambiguity TheyKnow Technology Uncertainty Technology Uncertainty Market Uncertainty Technology Uncertainty Market Ambiguity, Weknow Main Business Market Uncertainty Market Ambiguity, 3X3 New Business Development Matrix We know We do not know They Know They do not know Market 2018/10/14 (C) Takeru Ohe 12Ref. Takeru Ohe
  13. 13. Skills for VUCA World Five skills of disruptive innovators New ideas are often created during verifying ideas, business concepts and business models through experiments and prototypes. 2018/10/14 (C) Takeru Ohe Experiment Associate, Questioning, Observing, Networking
  14. 14. Five Skills 1 - Associate. Innovators associate previously unconnected things to come up with products or ideas. Innovators apply ideas from completely different areas to their field. 2 - Questioning. clearly nothing happens unless someone questions things. “Question the Unquestionable” Ratan Tata - Tata Group 3 - Observing. “Observation is the biggest game changer” - Scott Cook - founder of Intuit. Obviously learning is greatest when things are observed. 4 - Networking. It is a key skill for any innovator. 5 - Experiment. This would be summed up by “Fail Often, Fail Fast, Fail Cheap”. 2018/10/14 (C) Takeru Ohe 14
  15. 15. 1-2 End of Competitive Advantage 2018/10/14 (C) Takeru Ohe 15
  16. 16. How to compete: the wave of transient advantage of VUCA world R e t u r n 2018/10/14 (C) Takeru Ohe 16 The End of Competitive Advantage (P13) Rita Gunther McGrath, HBRP 2012 Launch Ramp up Exploit Reconfigure Disengage
  17. 17. How to compete: the wave of transient advantage of VUCA world R e t u r n 2018/10/14 (C) Takeru Ohe 17 The End of Competitive Advantage (P13) Rita Gunther McGrath, HBRP 2012 Launch, Ramp up, Exploit, Reconfigure, Disengage
  18. 18. 1985-2012 2018/10/14 (C) Takeru Ohe 18
  19. 19. 2. Management of Assumptions 2018/10/14 (C) Takeru Ohe 19
  20. 20. 2-1 Assumptions 2018/10/14 (C) Takeru Ohe 20
  21. 21. 2018/10/14 (C) Takeru Ohe 21 Statements and Assumptions • One of the greatest difficulties in considering new opportunities, is managing what we know versus what we assume to be true. • Statements of fact are statements for which we are able to provide verification. • An assumption is a statement of fact for which it is not possible to provide verification, because the data is not available. • A key aspect of opportunity evaluation and selection is managing the ratio of knowledge (factual statements, supported by data) to assumptions (statements that need to be proven true or false). • It is important to change “qualitative statements” to “quantitative statements” to check whether they are right or not. Discovery Driven Growth Rita Gunther McGrath and Ian C. MacMillan 2009 HBS
  22. 22. 2018/10/14 (C) Takeru Ohe 22 Ratio of Knowledge to Assumptions In the development of your offering to capitalize on a recognized opportunity, the ratio of knowledge to assumptions is very low in the early stages (concept development). As the project progresses, we learn more and more, and the ratio of knowledge to assumptions increases.
  23. 23. 2018/10/14 (C) Takeru Ohe 23 Turning Assumptions to Knowledge To be an existing business (10:90) New business (90:10) Turning assumptions to knowledge Amountofknowledge90% Amount of assumptions 90%
  24. 24. 2018/10/14 (C) Takeru Ohe 24 Experiment: Accuracy of Assumptions • Park vendor: gift items such as poster cards, candles at Inogashira Park in Tokyo • The participants of the experiment were asked to make 30 assumptions mainly marketing four P: product, place, price, promotion Participants Accuracy Businessmen Max 30% Average 20% Students Max 15% Average 10%
  25. 25. Baseball Statistics 2018/10/14 (C) Takeru Ohe 25 Hitting Average 30% Ball Control 70%
  26. 26. Experimental Methodology for Business Management As experimental physics has led to the advancement of physics, "experimental management” can lead to the development of Business management. "Experimental Management" , which was developed for new business, must be applied even to the main lines business in the VUCA world. 2018/10/14 (C) Takeru Ohe 26
  27. 27. 2018/10/14(C) Takeru Ohe 27 Importance of Key Failure Factor • The concept of Key Failure Factor is suited for the experimental management, or the lean startup method. • Key Failure Factor is more important than Key Successful Factor in new business development. •“Creativity is as important as literacy”
  28. 28. Not “Key Success Factor”, But “Key Failure Factor” • These are assumptions which influence the failure of the business. If these assumptions were wrong, you need to stop the project or to pivot the project. • They affect many elements of the project. • They have the greatest effect on outcomes. • They make or break basic feasibility: If they are wrong, you can’t delivery the business. • Key Failure Factors are different for different business models. Examples are: • Competitors‘s acquisition of strong intellectual properties • Lack of key raw materials such as rare metals • The market price 2018/10/14 (C) Takeru Ohe 28
  29. 29. 2-2 Progress of your preparation for JBMC (Experimental Management) 2018/10/14 (C) Takeru Ohe 29
  30. 30. Six Stages of New Business Development (Experimental Management) 1 Intuitive Idea 2 Business Idea 3 Business Concept 4 Business Model 5 Business Plan 6 Scale Up Search R&D Theme Documente d Theme R&D Initial Experiment al Model Minimal Functional Model Commerci alization Model Production Model Uncertaintylevel Development level Stage
  31. 31. Where are you in new business development stages? (Experimental Management) Milestones Status (〇 for Yes) 1 Did you have a written business concept (who has the problem, what is the problem, what is your solution, and what is value proposition) 2 Did you meet with people who have the problems? 3 Did you identify key problem which people have? 4 Did you have a solution to the problem? 5 Did you meet experts in this field? 6 Did you build a minimum viable product? 7 Did you identify competitive products/services? 8 Did you have a written business model on canvas? 9 Did you pivot already your initial business model? 2018/10/14 (C) Takeru Ohe 31
  32. 32. 2-2 Business Concept Stage 2018/10/14 (C) Takeru Ohe 32
  33. 33. Relationship: Business Concept and Business Model Canvas 2018/10/14 (C) Takeru Ohe 33 Key Partners Key Activities Value Pro- positions Customer Relationships Customer SegmentsKey Resources Solutions Channels Cost Structure Revenue Streams Business Concept
  34. 34. “Business Concept” is a group of the most important assumptions The most important assumptions of your new business are “customer segment,” “value proposition,” and your “solution” to the “problems” which the customer segment has. These assumptions are grouped together to form a “business concept”. (key failure factors) These assumptions must be checked in the first phase of the business development to be successful. Once one of the assumptions of this concept was found to be incorrect, then the concept itself is required to be modified or pivoted or given up entirely. 2018/10/14 (C) Takeru Ohe 34
  35. 35. A business concept has clear answers to the following questions • Who has problems? • What kind of problems do they have? • What is your solution to the problem? • Why do they buy your solution (value proposition)? • How much do they pay for your solution? 2018/10/14 (C) Takeru Ohe 35
  36. 36. Experiment Note Resource: Value Proposition Design, Osterwalder, A. & etc., Wiley (2014) Items Comment Product/Service (Ex) Autonomous Car 1 Hypothesis (Ex) Retired men who would like to drive safely 2 Checking Method (Ex) Interview with older drivers 3 Data Size (Ex)25 people at Gas stations, Auto part stores, and High way parking places 4 Metric (Ex)50% people are interesting in autonomous car 5 Cost and Finishing Date (Ex) By the end of 2018 (1000Yen) 6 Next Step (Ex) 2018/10/14 (C) Takeru Ohe 36
  37. 37. 3. International Business Model Competition IBMC: http://www.businessmodelcompetiti on.com/general-information.html 2018/10/14 (C) Takeru Ohe 37
  38. 38. IBMC Founders, Host Schools, Judges The IBMC is currently co-hosted by Brigham Young University, Harvard University, and Stanford University. 2013 Host - Harvard University 2014 Host - Brigham Young University 2015 Host - Brigham Young University 2016 Host – Microsoft 2017 Host – Computer History Museum 2018 Host - Brigham Young University The Founders: Nathan Furr (Ph.D., Stanford; Entrepreneurship Professor, BYU) Steve Blank (Entrepreneurship Professor, UC Berkley; Lecturer, Stanford) John Richards (Entrepreneurship Professor, BYU) Scott Petersen (Director, Center for Entrepreneurship & Technology, BYU) The judges of the 2018 IBMC http://www.businessmodelcompetition.com/2018- ibmc-judges.html 2018/10/14 (C) Takeru Ohe 38
  39. 39. Business Model Competition is different from Business plan contest http://www.businessmodelcompetition.com/model-vs-plan.html 2018/10/14 (C) Takeru Ohe 39
  40. 40. Business Model Competition evaluates the process of checking of assumptions Business Model Competition (BMC) • The objective is to help start the business • Most of time spent meeting potential customers or searching markets • Customer segmentation • Value propositions • The most important thing is revenues • The reverse financial statements are important Business Plan Contest (BPC) • The objective is to write an elaborate and logical plan • Most of hours are spent in front of the PC to get secondary data • A lot of time is spent to prepare financial statements (C) Takeru Ohe 402018/10/14
  41. 41. 4. Japan Business Model Competitions http://www.businessmodelcompetition.co m/qualifier-competitions.html 2018/10/14 (C) Takeru Ohe 41
  42. 42. The Japan Business Model Competition (JBMC) • JBMC was founded in 2013 by • Prof. Takeru Ohe (Waseda University, IUJ ) • Dr. Makoto Sarata (ASTEM) • Mr. Satoshi Okuda (PrimeStyle) • JBMC is one of feeder competitions for IBMC, and the winner of JBMC automatically will be sent to the IBMC. • The 6th Japan Business Model Competition will be held on March 2 (Sat) and 3(Sun), 2019 https://mail.google.com/mail/ca/u/0/?ui=2&ik=22db79abd1&view=att&th=15ea8f36e8a3 9967&attid=0.1&disp=safe&realattid=f_j7voywck1&zw http://japan-bmc.com/index.html https://www.facebook.com/japan.bmc info@japan-bmc.com 2018/10/14 (C) Takeru Ohe 42
  43. 43. 2015 JBMC Finalists 2018/10/14 (C) Takeru Ohe 43 Business Model University "Dream Pharos" Cloud notebook between parents and nursery Japan Advanced Institute of Science and Technology "Next .I " Decoration kit for lunch Keio University Tailored health analysis system Tokyo University "Dream Come True" new SNS Keio University Japanese Language and culture lessons through Youtube Waseda University ● Log System for low back pain Kyoto University (Started) Customer service system for beauty salons Tokyo University Total hair care system based on gene analysis Tokyo University Assist device system with dispensable actuator Waseda University Social "fitting room" platform International University of Japan
  44. 44. 2016 JBMC Finalists 2018/10/14 (C) Takeru Ohe 44 Business Model University New Found Experience Nagoya Commerce College Homemade Food Delivery- Kokushikan University FLEETANGLE -An Automated & Intelligent Fleet Management System Nagaoka Science & Technology University 1tap diet Kyushu University GOFITURE (Medical Tourism Platform) Osaka University Challenged to Challengers Kyoto University ● Establishing New Food Cycle System by Utilizing Insect Feed Waseda University (Started) Maternity Beacon Nagoya Commerce College Super-Cooling Vegetable delivery revolution by super-cooling preservation Osaka Prefecture University Electric Money Balance Display System Advanced Institute of Industrial Technology
  45. 45. 2017 JBMC Finalists 2018/10/14 (C) Takeru Ohe 45 Business Model University Doctors Crowd Waseda University MBA (Started) Tranet Miyazaki University Social Security System Osaka University Histream Kyushu University Campus Life Assistant Gakushuin University Hanoi Recycle Factory (or Hanoi ZStore) International University of Japan (Started) Efficacy and toxicity evaluation service Tsukuba University eYoga Hong Kong Chinese University
  46. 46. 2018JBMC Finalists 2018/10/14 (C) Takeru Ohe 46 Business Model University Gokuri Tsukuba University: (Started) Temperature measurement Wearable Waseda University: (Started) Waypoint Doshisha University Tooth Blush Service Kyushu University TOBE Miyazaki University FleshDeli International University of Japan : (Started) Project Nudge Nagoya University of Business & Commerce DNA Chip Osaka University Kitani University Technology Brunei
  47. 47. 5. How to prepare for the competition 2018/10/14(C) Takeru Ohe 47
  48. 48. 5-1 Judging Criteria 2018/10/14 (C) Takeru Ohe 48
  49. 49. The BMC rewards teams for: 1. Identifying and tracking key business model hypotheses (use the Business Model Canvas) 2. Testing and validating those hypotheses with customers (get outside the building) 3. Pivoting and iterating their business model based on customer interactions • Submissions for the competition focus on the process and learning a team goes through as they test their unexamined hypotheses in the field and develop validated business models. The goal is validated learning about the business model assumptions and failing early is a success compared to failing late. 2018/10/14 (C) Takeru Ohe 49
  50. 50. Four elements required for the Business Model Competition: • You need to present a story of your business model Development • Hypothesis • Test • Result • Significant problem 2018/10/14 (C) Takeru Ohe 50
  51. 51. JUDGING CRITERIA http://www.businessmodelcompetition.com/judges-scorecard.html Hypothesis 1. Did the team use the Business Model Canvas or similar tool to identify and track hypotheses? 2. Did the team clearly state their hypotheses (assumptions)? 3. Did the team identify the most crucial assumptions to test first (the ones that will kill their business)? (key failure factor) Test 4. Did the team design, low cost, rapid, but reliable tests of these hypotheses? 5. Did the team conduct the tests in a reliable manner? • Number of tests - # should be adjusted for industry, product type (web vs physical product), and business type (B2B vs B2C) • Quality of tests - interviews are high quality, surveys & focus groups are much lower quality (you don’t know which questions to ask) unless interviews have been conducted first2018/10/14 (C) Takeru Ohe 51
  52. 52. Result 6. Did the team clearly state what they learned, how it validated an assumption or not, and if that informed any changes/pivots? 7. If changes were made, was the pivot the team made to support by evidence or did they fail to pivot when the evidence clearly stated it? 8. If appropriate, has the team developed a prototype or minimum viable product (MVP)? Does the team understand the assumptions they are tested with a prototype or MVP? Is the prototype or MVP appropriate to answer those assumptions? We want to reward prototypes over full products unless the product is the result of many prototypes tested with customers—in other words, we want to reward testing assumptions before building and building from prototypes up to products. We do not want to reward just building products too early based on untested assumptions. Other 9. Is the team solving a significant problem (defined in terms of money or impact)?* 10. Does the team have significant evidence that the solution is validated (includes letters of intent, purchase contracts, sales, and partners)?* • * these two criteria serve as tiebreakers • NOTE: Because web-based businesses are easier to test, these companies can often pivot faster. We tend to treat physical products, services, and web/software as slightly different categories in the judging, then pick the best of these categories to compete. 2018/10/14 (C) Takeru Ohe 52
  53. 53. Business Model Canvas: Nespresso 2018/10/14 (C) Takeru Ohe 53
  54. 54. Conduct experiments and take notes •Who is going to purchase your product/service? •Why do they purchase your product/service? •How much do they pay for your product/service? 2018/10/14 (C) Takeru Ohe 54
  55. 55. Experiment Note 1 (Customer) Resource: Value Proposition Design, Osterwalder, A. & etc., Wiley (2014) Items Comment Product/Service (Ex) Autonomous Car 1 Hypothesis (Ex) Retired men who would like to drive safely 2 Checking Method (Ex) Interview with older drivers 3 Data Size (Ex)25 people at Gas stations, Auto part stores, and High way parking places 4 Metric (Ex)50% people are interesting in autonomous car 5 Cost and Finishing Date (Ex) By the end of 2018 (1000Yen) 6 Next Step (Ex) 2018/10/14 (C) Takeru Ohe 55
  56. 56. Experiment Note 2 (Why do they purchase your product/service?) Resource: Value Proposition Design, Osterwalder, A. & etc., Wiley (2014) Items Comment Product/Service (Ex) Autonomous Car 1 Hypothesis (Ex) Avoid accident 2 Checking Method (Ex) Interview with older drivers 3 Data Size (Ex)25 people at Gas stations, Auto part stores, and High way parking places 4 Metric (Ex)50% people are interesting in autonomous car 5 Cost and Finishing Date (Ex) By the end of 2018 (1000Yen) 6 Next Step (Ex) 2018/10/14 (C) Takeru Ohe 56
  57. 57. Experiment Note 3 (How much do they pay for your product/service?) Resource: Value Proposition Design, Osterwalder, A. & etc., Wiley (2014) Items Comment Product/Service (Ex) Autonomous Car 1 Hypothesis (Ex) 1.5times more than the price of current non- autonomous car 2 Checking Method (Ex) A/B Price test 3 Data Size (Ex) 1000 people, 3 rounds on the website 4 Metric (Ex) The best price ratio is plusmunus10% of 1.5 times 5 Cost and Finishing Date (Ex) By the end of 2018 (1000Yen) 6 Next Step (Ex) 2018/10/14 (C) Takeru Ohe 57
  58. 58. 5-2 Example “Owlet” 2018/10/14 (C) Takeru Ohe 58
  59. 59. 2013 Best Business Model “Owlet” http://www.businessmodelcompetition.com/past-winner-videos.html Resource: Value Proposition Design, Osterwalder, A. & etc., Wiley (2014) The owlet is a wireless monitor measuring your baby's heart rate and oxygen. The data is sent to your smartphone and will alert you if there's an emergency. 2018/10/14 (C) Takeru Ohe 59
  60. 60. Example: Owlet • Initial Idea • Opportunity • Monitoring pulse oximetry could be easier without the cord between the device and the monitor display • Our Smart Sock is designed to notify you if your baby’s oxygen levels or heart rate fall out of a preset range. http://www.businessmodelcompetition.com/past- winner-videos.html 2018/10/14 (C) Takeru Ohe 60
  61. 61. Owlet: constant progress with systematic design and testing • Wireless monitoring of babies' blood oxygen, heart rate and sleep data. • The owlet is a smartphone compatible baby monitor. But for added safety and security, Owlet is designed to function independently of your Apple device. The Smart Sock and the Base Station connects through low power Bluetooth. If your iOS device dies, or home internet goes out, your Base Station will still alert you if your baby stops breathing. For convenience, the Base Station will upload your infant’s heart rate and oxygen levels to the cloud. You, and anyone with permission, can view your baby’s levels from anywhere in your home, Grandma’s house, or even the office. 2018/10/14 (C) Takeru Ohe 61 Resource: Value Proposition Design, Osterwalder, A. & etc., Wiley (2014)
  62. 62. 62 Resource: Value Proposition Design, Osterwalder, A. & etc, Wiley (2014) 4. Customer Relationships 3. Channels 2. Value Propositions 7. Key Activities 6. Key Resources (Intellectual property, Assets) 8. Key Partners 5. Revenue Stream9. Cost structure Owlet Business Model: Original Idea 1. Initial Idea: an opportunity (Monitoring pulse oximetry could be easier without the cord between the device and the monitor display) 2018/10/14 (C) Takeru Ohe 1. Customer Segments (Cordless Pulse oximetry monitor) Nurses Hospitals Hospitals Salesmen Cables are not in the way, Easy movement around patients
  63. 63. Test 1A Nurse Interviews Items 1 Hypothesis Wireless pulse oximetry is more convenient 2 Metric Percentage of positive feedback 3 Test Interview nurses 4 Data Of 58 interviews, 93 percent prefer the wireless monitoring 5 Validate results Validated 6 Period and cost 1 week, $0 7 Next action Interview with hospital manager 2018/10/14 (C) Takeru Ohe 63 Resource: Value Proposition Design, Osterwalder, A. & etc., Wiley (2014)
  64. 64. Test 1B: Hospital Administrator Interviews Items 1 Hypothesis Wireless pulse oximetry is more convenient 2 Metric Percentage of positive feedback 3 Test Interview hospital feedback 4 Data 0 percent ready to pay more for wireless. Ease of use is not a pain, it not cost effective. 5 Validate results Un-validated 6 Period and cost 1 week, $0 7 Next action New market segment with this technology idea 2018/10/14 (C) Takeru Ohe 64 Resource: Value Proposition Design, Osterwalder, A. & etc., Wiley (2014)
  65. 65. 65 Resource: Value Proposition Design, Osterwalder, A. & etc., Wiley (2014) 4. Customer Relationships 3. Channels 2. Value Propositions7. Key Activities 6. Key Resources (Intellectual property, Assets) 8. Key Partners 5. Revenue Stream9. Cost structure Owlet Business Model: version 2 Pivot: Change the customer segment from nurses and hospitals to worried parents 2018/10/14 (C) Takeru Ohe 1. Customer Segments 7. Key Activities 8. Key Partners Baby alarm Parents Baby store < $200 price Cordless monitor
  66. 66. Test 2 Parent Interviews Items 1 Hypothesis Parents are ready to adopt and buy a wireless baby alarm 2 Metric Percentage of adopting parents 3 Test Interview months 4 Data Of 105 interviews, 96 percent adopt the wireless monitoring “Awesome. I want to buy now!” 5 Validate results Validated 6 Period and cost 1 week, $100 7 Next action Develop MVP and landing page 2018/10/14 (C) Takeru Ohe 66 Resource: Value Proposition Design, Osterwalder, A. & etc., Wiley (2014)
  67. 67. Test 3 MVP Landing page (minimum viable product) Items 1 Hypothesis A smart sock is convenient and easy to use for monitoring 2 Metric Number of positive comments 3 Test An MVP, with a video an a website 4 Data 17,000 views, 5500 shares of facebook, 500 positive comments by parents, distributors, and research organizations 5 Validate results Validated 6 Period and cost 2 week, $320 2018/10/14 (C) Takeru Ohe 67 Resource: Value Proposition Design, Osterwalder, A. & etc., Wiley (2014)
  68. 68. Test 4 A/B Price test Items 1 Hypothesis Rental versus sale at $200+ sale price 2 Metric Percentage for a sale price 3 Test A/B testing, 3 rounds on the website 4 Data 1170 people tested, $299 the best price 5 Validate results Validated 6 Period and cost 8 weeks, $30 2018/10/14 (C) Takeru Ohe 68 Resource: Value Proposition Design, Osterwalder, A. & etc., Wiley (2014)
  69. 69. 69 Resource: Value Proposition Design, Osterwalder, A. & etc, Wiley (2014) 4. Customer Relationships 3. Channels 2. Value Propositions7. Key Activities 6. Key Resources (Intellectual property, Assets) 8. Key Partners 5. Revenue Stream9. Cost structure Owlet Business Model: version 3 With a more minimal, less risky product, and infant health tracker (heart rate, oxygen levels, and sleep patterns), but without alarm, for another customer segment; the less worried parents 2018/10/14 (C) Takeru Ohe 1. Customer Segments 7. Key Activities 8. Key Partners Baby alarm FDA clearance <$200 price Infant health tracker Baby stores Worried parents Less worried parents Baby stores
  70. 70. Test 5 Interview/Proposition: Owlet Challenge Items 1 Hypothesis Less worried parents are ready to adopt and buy a wireless baby health tracker, without alarm 2 Metric Percentage of parents adopting the no-alarm tracker 3 Test Interview at retail locations, having to choose between Owlet tracker and other similar systems (video, sound, and movement) 4 Data Of 81 people interviewed, 20%adopted the Owlet tracker 5 Validate results Validated 6 Period and cost 3 weeks, $0 7 Next action 2018/10/14 (C) Takeru Ohe 70 Resource: Value Proposition Design, Osterwalder, A. & etc., Wiley (2014)
  71. 71. Testing step-by-Step • Your customers are the judge, jury, and executioner of your value proposition, so get outside of the building and test your ideas with the customer deployment and lean start-up process. • Make sure you start with quick and cheap experiments to test the assumption underlying your ideas when uncertainty is at its maxim 2018/10/14 (C) Takeru Ohe 71 Resource: Value Proposition Design, Osterwalder, A. & etc., Wiley (2014) .
  72. 72. 5-3 JBMC2019 2018/10/14 (C) Takeru Ohe 72
  73. 73. Operation of JBMC2019 • JBMC is a place of entrepreneurial education • Give every team a minimum of two presentation opportunities • Set a loser recovery game in the finals round. • The final lands are a semi-final round (automatically to six units to the final), losers' recovery game (three groups to the final), • Nine teams will compete for the final. • Two teams will proceed to the English final. • IBMC is the first step in the future overseas deployment of the team’s business. • Even if you lose the English Round, we will send the team leader to IBMC as an observer. • JBMC participation conditions • • Apply to IBMC, • • • Participation to the English Final(March 29,2019). • • Qualifying condition of IBMC • 1) Earn an automatic slot by winning an IBMC Qualifier Competition*, or • 2) Compete in the At-Large Round and win one of the at-large slots. • *Teams that compete in and do not win an IBMC Qualifier Competition can still compete in the At-Large Round 2018/10/14 (C) Takeru Ohe 73
  74. 74. JBMC Schedule 2018/10/14 (C) Takeru Ohe 74 Start Finish Comment Place 2018 Oct.4 THU JBMC Executive Committee Meeting FCCJ Oct.13 SAT 13:00 14:30 IUJ Oct.15 MON JBMC Facebook, Nov.24 SAT 10:00 17:00 NIGATA BLOCK Final IUJ Nov.30 TUS 17:00 19:00 Business Model Course 1 START UP HUB TOKYODec.18 TUS 17:00 19:00 Business Model Course 2 2019 Jan.24 THU 17:00 19:00 Business Model Course 3 Feb.4 MON Deadline for JBMC Application Feb.9 SAT Announcement of Final Round Teams Mar.2 SAT 13:00 17:00 Semifinal (6 Teams to Final) AJINOMOTO Client Innovation CenterMar.3 SUN 10:00 12:00 Consolation Match (3 Teams to Final) 14:00 15:00 Final (9 Teams) to select 2 Teams to English Final Mar.9 SAT 10:00 12:00 Mentoring for two teams Tama Graduate School of Business Mar.16 SAT 10:00 12:00 Mentoring for two teams Mar.23 SAT 10:00 12:00 Mentoring for two teams Mar.29 SAT 10:00 12:00 English Presentation Final (2 teams) Apr.1 MON Deadline for IBMC application May.15 IBMC
  75. 75. Business Model Course powered by JBMC 2018/10/14 • Location: • Startup Hub Tokyo (Tokyo foundation NET in Tokyo) • Supported by: • Department of Commerce and Industry, Department of Commerce and Industry, Tokyo Industry and Labor Bureau https://startuphub.tokyo/ • JBMC Business Model Course • Time: 17: 00-19: 00 • November 30 Friday, Formulation of the business concept • December 18 Tuesday, Formulation of the business concept • January 24th Thursday How to fill in the application form (C) Takeru Ohe 75
  76. 76. Recruitment and submission of applications • October 15 (Monday) Announcement of JBMC2019 and JBMC lecture • Announcement JBMC2019 on web and Facebook • Final application form • Request committee members and other professors to encourage their students to apply for JBMC • February 4(Monday), 2019 Deadline for application • February 9 (Saturday),2019 Announcement of the teams to the final round (maximum 18 teams) 2018/10/14 (C) Takeru Ohe 76
  77. 77. Final date and time and location •Saturday, March 2, 2019 •13: 30 ~ 16: 30 semifinals •18 teams, three rooms (1 room six teams) •6 teams to the Final •Sunday, March 3, 2019 •10: 00 ~ 12: 00 Loser restoration game •12 teams in 3 rooms (1 room and four teams) Total 2 hours •One team 20 minutes •3 teams to the final (announced at 12:30) •Sunday, March 3, 2019 •14: 30 ~ 17: 30 Final •Nine teams finals] •1 Team 20 minutes Total 3 hours 15 minutes (15 minutes coffee break) •2 teams to English Presentation Final (March 29,2018) (C) Takeru Ohe 2018/10/14 77
  78. 78. JBMC Final Round Ajinomoto Client Innovation Center Ajinomoto Client Innovation Center Suzuki-Cho 1-1 Kawasaki-Ku, Kawasaki-shi, Kanagawa-Ken Keihin-Taishi Line ,Suzuki-Cho Station 2018/10/14 (C) Takeru Ohe 78
  79. 79. English Final Presentation • March 03 We will select two candidate teams to dispatch for IBMC. • March 09, March 16, and March 23 Mentoring sessions • March 29 English Final Presentation in Tokyo. • Two SKYPE judges will be adopted • Brigham Young University • National University of Management, Cambodia • Select one winning team (up to 3 people) and send to IBMC and the team will receive around $ 2500 from IBMC • A second team: one representative will be sent to IBMC as an observer if the team does not get a presentation a slot at IBMC • April 15 IBMC office will announce whether the second team gets a presentation slot at IBMC or not. • (possibly IBMC $ 2500 and a slot for the presentation upon acceptance at-large slot. • Around May 10 and May 11 IBMC 2018/10/14 (C) Takeru Ohe 79
  80. 80. Direct Application to IBMC(Video Presentation) Required for top two teams at JBMC • To apply to the IBMC, fill out and submit the form below. In order to complete the submission form you will need to do the following: • 1) Create a 5-8 minute video presentation describing the customer discovery and validation you have been through with your idea and business model. You may use PowerPoint, Keynote, Prezi or any other presentation software. The presentation needs to be narrated and saved as a video file. See the "Presentation Video Creation Tools" section of the Preparing Your Submission page for help doing this. We also strongly encourage you to check out the submission example videos on that same page. • 2) Upload your video to YouTube • 3) Indicate that your team understands and agrees to the items outlined in the Certifications and Agreements Form. This form is also included in the appendix of the Competition Rules and Information Packet. • http://www.businessmodelcompetition.com/preparing-your- submission.html 2018/10/14 (C) Takeru Ohe 80
  81. 81. References 2018/10/14 (C) Takeru Ohe 81
  82. 82. Thank you tohe@Waseda.jp http://japan-bmc.com/ 2018/10/14 (C) Takeru Ohe 82

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