This class will focus on understanding how to design solutions to a gap in a social system and looks at the first two steps in the system intervention process. Students will be led through an interactive Empathy Mapping exercise followed by an introduction to Business Modeling and the components of a business model canvas.

1. APS 1015: Social Entrepreneurship
Class 4: Intervening in Social Systems
(part 1)
Friday, May 23, 2014
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Instructors:
Norm Tasevski (norm@socialentrepreneurship.ca)
Alex Kjorven (alex@socialentrepreneurship.ca)

2. © Norm Tasevski
Agenda
• Recap of Gap Analysis (last class)
• Building an Intervention
– Step 1: Empathy Mapping
– Step 2: Business Modeling
• Assignment for Monday - Storyboarding
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3. © Norm Tasevski
Intervening – A 4 Step Process
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Step 1:
Empathy
Mapping
Step 2:
Business
Modeling
Step 3:
Financial
Modelling
Step 4:
Target
Setting

4. © Norm Tasevski
• A technique for deeply and intimately understanding how your
consumers/clients experience the environment around them
• The Steps:
– Pick your environment
– Pick your persona
– Grab sticky notes and go!
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Empathy Mapping

5. © Norm Tasevski
• Step 1: Pick your Environment
– What environment matters to you (i.e. what
do you care to analyse)?
• Examples
– Your store
– At home
– Your online portal/app
– A neighbourhood
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Empathy Mapping

6. © Norm Tasevski
• Step 2: Pick your Persona
– What type of consumer/client matters to
you?
• Examples
– “Susan” the stay-at-home mom
– “Deeptha” the Bay Street young
professional
– “Jerome” the single parent
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Empathy Mapping

7. © Norm Tasevski
• Step 3: Grab Sticky Notes and Go!
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Empathy Mapping

8. Break
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9. © Norm Tasevski
• A process for determining how an organization makes and
spends money
• 9 Elements:
– The Customer
– The Value Proposition
– Channels
– Relationships
– Key Resources
– Key Activities
– Key Partners
– Cost Drivers
– Revenue Streams
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Business Modeling

10. © Norm Tasevski
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Core Concepts
– Customer “Pain”
– Difference between a “customer” and a “client”
The Customer

11. © Norm Tasevski
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Core Concepts
– The “value” you are creating for customers (in terms
of products/services), and the “pain” you are
alleviating
– An exchange of value
The Value Proposition

12. © Norm Tasevski
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Core Concepts
– How the customer receives the offer/value prop
– The physical “movement” of the offer into the hands
of the customer
Channels

13. © Norm Tasevski
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Core Concepts
– Personal and impersonal interaction with the
customer
– The “movement” of information (e.g. marketing,
communication)
Relationships

14. © Norm Tasevski
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Core Concepts
– Cash!!! (specifically, how cash flows into the
enterprise) – “Money In”
– Pricing models
Revenue Streams

15. © Norm Tasevski
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Core Concepts
– Assets…
– …and how these assets create value
– Includes human, physical, intellectual, and financial
resources
Key Resources

16. © Norm Tasevski
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Core Concepts
– Actions (specifically, the actions you plan to take to
generate value)
– Both “direct” and “indirect”
Key Activities

17. © Norm Tasevski
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Core Concepts
– People/organizations that are integral to enabling
you to do business
– How you partner, and what you partner on
Key Partners

18. © Norm Tasevski
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Core Concepts
– Fixed costs, variable costs, economies of
scale…“money out”
– At this stage, focus on your cost assumptions! (don’t
worry about actual $$)
Cost Drivers

19. Storyboarding
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20. © Norm Tasevski
What is Storyboarding?
A set of images/graphics displayed in sequence as a
means of pre-visualizing a process or sequence of
events
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21. © Norm Tasevski
The Importance of Storyboarding
• From a business perspective, it provides clarity on
how the business will work (e.g. how value is
created, how revenue is generated)
• It helps identify gaps/flaws in the business model
• It can provide a foundation for a
communications/sales campaign to
customers, investors, etc.
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22. © Norm Tasevski
An Example – “Here’s How it Works”
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ID office building
to serve as a
“Delivery Hub”
ID merchants within
the “Delivery Zone”
Merchants market
the service to
customers
1st
2nd 3rd
Professionals in Sick
Kids will have access
to the delivery service
Professionals at Sick Kids can receive
deliveries from the hot dog vendor, Subway
and Starbucks, but not Freshii or Tim Hortons
We
Deliver!
An SSO delivery
person picks up
and delivers
the food to the
professional

23. © Norm Tasevski
A 2nd Example – “Here’s How it Works”
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First time youth drug
offenders referred to
Peacebuilders
Youth participate in
Restorative Circles &
Business Training
Youth placed in
kiosks/venues to sell
products
1st
2nd 3rd
Peacebuilders work with
established relationships
with the federal youth
prosecutor at the youth court
at 311 Jarvis
Through this process, we build a trust
relationship and empower youth to
genuinely change their lives and break the
cycle of violence and poverty
Youth sell in controlled
environments, with
Peacebuilders/Venture
Deli staff support

24. © Norm Tasevski
Assignment
• Build Storyboards for:
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25. © Norm Tasevski
What did we learn?
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