Business modeling and Lean         an introduction in both          Marcellien BreedveldIdeas that last – Startup Weekend ...
What’s a Startup?
What’s a Startup?
What	  is	  a	  business	  model?	  	  A	  business	  model	  describes	  how	  a	  company	  	  creates	  and	  delivers	...
Classic air travel model                                            revenue	                  passengers	                	...
Ryanair model            budget	                 revenue	            passengers	               	                          ...
Ryanair model            budget	                           revenue	            passengers	                         	      ...
Ryanair model                        budget	                                revenue	                        passengers	   ...
How not to use the business model canvas
For whom are we creating value?Who are your most important customers?           Customer	  segments	             	        ...
The core of your business model             The	  Value	  Proposi>on	               	               1)  Which	  problem	  ...
Channels	  •  How	  do	  you	  reach	  your	  customers?	  	  •  How	  do	  they	  want	  to	  be	  reached?	  How	  are	 ...
Customer relationships                               Customer	  rela>onships	                                 	           ...
Building blocks – revenue streamsRevenue	  streams	  	  1)  Revenue	  model	  2)  Actual	  prices	  	  
Building blocks – key resourcesKey	  resources	  	  1)  Physical	  2)  Intellectual	  3)  Financial	  4)  Human	  
Building blocks – key activities	  What	  are	  the	  most	  important	  things	  you	  must	  excell	  at	  in	  order	  ...
Building blocks – key partners  Key	  partners	    	    1)  Suppliers	    2)  Partners	  	    	  
Building blocks – cost structure    Cost	  structure	      	      1)  Type	      2)  Amount	      3)  Fixed	  /	  variable...
How NOT to use the business model canvas      1.  As	  a	  subsCtuCon	  for	  a	  business	  plan	        2.  As	  a	  sta...
Great, such an exercise… 	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  …...
Work as a lean startup…             Learn	  as	  fast	  as	  possible	  	               	               Create	  maximum	 ...
Change assumptions into facts   First test the problem, then the solution
Design	  the experiment to test yourassumption	  What	  do	  you	  want	  to	  learn?	  	                                 ...
Minimum Viable Product (MVP)   An	  MVP	  is	  the	  minimum	  amount	  of	  effort	  creaCng	  some	     value	  for	  cus...
Where are the facts? There	  are	  no	  answers	  	   inside	  	   your	  office	  
So, get out of the building             	               So	  get	  out	  of	  the	  building!	               	  
Any questions                                   ?                    more information:         Marcellien.breedveld@utrech...
Dollar shave club
Customer relationships                 Customer	  rela>onships	                   	                   •  How	  do	  you	  ...
Reading material
How not to use the business model canvas                                                                           Provoca...
The customer development process                         Repeatable	  &	  scalable	   Problem-­‐              sales	  mode...
20121711 StartupWeekend-MarcellienBreedveld_Businessmodelandlean
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20121711 StartupWeekend-MarcellienBreedveld_Businessmodelandlean

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My presentation @Startup Weekend Utrecht on Business Modeling and Lean in November 2012!

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20121711 StartupWeekend-MarcellienBreedveld_Businessmodelandlean

  1. 1. Business modeling and Lean an introduction in both Marcellien BreedveldIdeas that last – Startup Weekend – 17 november
  2. 2. What’s a Startup?
  3. 3. What’s a Startup?
  4. 4. What  is  a  business  model?    A  business  model  describes  how  a  company    creates  and  delivers  Value  for  its  customers    and  captures  value  for  itself    
  5. 5. Classic air travel model revenue   passengers     air  travel   costs     aircra2,  fuel   cleaning   airport   food   runway   jetway   checkin  
  6. 6. Ryanair model budget   revenue   passengers     revenue     food   costs     aircra2,  fuel   airport   cleaning   checkin   jetway  
  7. 7. Ryanair model budget   revenue   passengers     revenue     food   revenue   costs       aircra2,  fuel   airport   cleaning   checkin   jetway  
  8. 8. Ryanair model budget   revenue   passengers     revenue     food   car  rental   revenue   costs       aircra2,  fuel   hotels   airport   cleaning   parking   shopping   food   checkin   jetway  
  9. 9. How not to use the business model canvas
  10. 10. For whom are we creating value?Who are your most important customers? Customer  segments     1)  Everybody  who  you  create  value  for   2)  Make  an  archetype/persona  of  every  segment   3)  In  a  mulC-­‐sided  plaEorm  every  segment  has  its   own  value  proposiCon   4)  How  do  they  solve  the  problem  now?  What   does  it  cost?       Who are you creating value for? Sketch your customers’ persona’s / archetypes Describe a day out of their live
  11. 11. The core of your business model The  Value  Proposi>on     1)  Which  problem  are  you  solving,  or  which  need  are   you  fulfilling?     2)  What  is  your  soluCon  to  solve  your  customers’   problem/need?   3)  Which  customer  value  do  you  create  with  this   soluCon?       1.  Which  problem  are  you  solving?     2.  What  is  your  soluCon?   3.  Which  customer  value  do  you  create?  
  12. 12. Channels  •  How  do  you  reach  your  customers?    •  How  do  they  want  to  be  reached?  How  are  they   currently  reached  through  which  (distribuCon)   channels?  And  what  does  not  work  or  why  does  it   1)  Communica+on     work?     2)  Distribu+on  •  How  much  do  you  channels  cost  you?   3)  Technical  customer  service  
  13. 13. Customer relationships Customer  rela>onships     •  How  do  you  want  to  relate  with  your  customer?     •  How  will  you  engage  them  to  your  website  /  product?   •  How  costly  is  your  relaConship?   •  How  do  your  customers  currently  work  with  your  compeCtors?   What  does  not  work,  what  does  work?       1)  The  type  of  relaConship  a  company  establishes  with  the   customer   2)  How  inCmate  do  you  want  to  be  with  your  customers   3)  AcquisiCon,  retenCon  and  upselling     1)  What  type  of  relaConship  do  you  build  with  your  customer   2)  How  inCmate  do  you  want  to  be  with  your  customers   3)  AcquisiCon,  retenCon  and  upselling  
  14. 14. Building blocks – revenue streamsRevenue  streams    1)  Revenue  model  2)  Actual  prices    
  15. 15. Building blocks – key resourcesKey  resources    1)  Physical  2)  Intellectual  3)  Financial  4)  Human  
  16. 16. Building blocks – key activities  What  are  the  most  important  things  you  must  excell  at  in  order  to  create  and  deliver  the  value  proposiCon  and  to  moneCze  on  it.      
  17. 17. Building blocks – key partners Key  partners     1)  Suppliers   2)  Partners      
  18. 18. Building blocks – cost structure Cost  structure     1)  Type   2)  Amount   3)  Fixed  /  variable    
  19. 19. How NOT to use the business model canvas 1.  As  a  subsCtuCon  for  a  business  plan   2.  As  a  staCc  tool   3.  As  a  goal  on  itself   4.  As  a  part  of  your  presentaCon   5.  As  a  blanks  exercise   6.  Do  NOT  use  a  ballpoint   7.  Do  NOT  use  the  examples  literally   8.  Do  NOT  write  one  Value  ProposiCon  for  different   Customer  Segments  
  20. 20. Great, such an exercise…                                                                …but  what  is  it  worth?         Can  you  succesfully  execute  on  a  poster  full  of   guesses?     “No  business  plan  survives  first  contact  with     customers”   Steve  Blank        
  21. 21. Work as a lean startup… Learn  as  fast  as  possible       Create  maximum  value  for  your  customer     Have  strong  visions  and  are  rigourous  in  tesCng     Minimise  waste  
  22. 22. Change assumptions into facts First test the problem, then the solution
  23. 23. Design  the experiment to test yourassumption  What  do  you  want  to  learn?     • Keep  it  simpel   • Pass/fail  experiment   • Set  minimum  criteria  for  validaCon   • Fast  test,  short  cycle  Cme        
  24. 24. Minimum Viable Product (MVP) An  MVP  is  the  minimum  amount  of  effort  creaCng  some   value  for  customers  and  needed  to  provide  speedy   feedback  to  determine  the  viability  of  a  product.     Can  be  a  mock-­‐up,  video,  fast  prototype  (3D  prinCng),   restricted  service,  etc…     An  MVP  naturally  comes  in  later  stages  of  Customer   Development  as  it  is  a  rudimentary  soluCon  to  a  problem   worth  solving.      
  25. 25. Where are the facts? There  are  no  answers     inside     your  office  
  26. 26. So, get out of the building   So  get  out  of  the  building!    
  27. 27. Any questions ? more information: Marcellien.breedveld@utrechtinc.nlwww.utrechtinc.nl @UtrechtInc or @marcellien
  28. 28. Dollar shave club
  29. 29. Customer relationships Customer  rela>onships     •  How  do  you  want  to  relate  with  your  customer?     •  How  will  you  engage  them  to  your  website  /  product?   •  How  costly  is  your  relaConship?   •  How  do  your  customers  currently  work  with  your  compeCtors?   What  does  not  work,  what  does  work?        
  30. 30. Reading material
  31. 31. How not to use the business model canvas ProvocaCve,   aggressive,   Flying     Need  to   low  cost,  no   Passengers   Secondary   o2en  travel   customer   travelling  for  a   airport  mgt   easy  and   service     weekend/short   and  local   cheap  to   stay  abroad   government   nearby     places     Pay  only  for   Secondary   AviaCon  fuel   HR,   airports   value  taken   suppliers     airplanes     Cheap  Cckets     Website     Low  cost  structure,     Tickets   Bargaining  every  deal     Airport  subsidies     Airplanes,  HR   Luggage  check-­‐in  
  32. 32. The customer development process Repeatable  &  scalable   Problem-­‐ sales  model     soluCon  fit    

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