I was invited to present a thought leader webinar as part of the The Big Idea competition coordinated by The Big Issue. These are the slides from the 40 minute webinar where I introduce the Business Model Canvas and provide some guidance on how it can be used in a social enterprise context to quickly capture and prototype business model concepts on paper so you can create experiments to test them - and your assumptions! http://dynamic4.com/ideas/big-idea-webinar-introducing-business-model-canvas

1. THE BIG IDEA.
INTRODUCING THE
BUSINESS MODEL CANVAS
Founder &
Managing Director
BEN PECOTICH
11 AUGUST 2015

2. A bit about me… I’m a designer, business consultant and startup founder – including
two social enterprises. 22 years of business, design, technology and management
consulting in Australia, NZ, UK and Europe. 19 years in financial services and over 14
years working on startups and small businesses.
My focus is on working with people to create ideas and make them real for positive
change.
My team and I at Dynamic4 design and build business, brand, product and service
ideas.
I’m a big fan of social enterprise, collaborative consumption, collective impact and
the sharing economy.
Today we’re going to have a chat about the Business Model Canvas…
INTRO
BEN PECOTICH

3. • “Your business model on one page. Strategic
management and entrepreneurial tool. It allows you to
describe, design, challenge, invent, and pivot your
business model.”
• The Business Model Canvas was created by Alex
Osterwalder & co and published in the Business Model
Generation in the late 2000s.
• The Canvas is licenced as Creative Commons Attribution-
Share Alike – with credit back to Strategyzer.com.
• Because it’s free to share & remix the canvas, there are
several other derivatives around – most famously the
Lean Canvas by Ash Maurya.
BUSINESS MODEL CANVAS. BACKGROUND & CONTEXT

4. • Simple framework with nine building blocks common to most organisations
– including not-for-profits and social enterprises.
• Focus on content rather than layout. Provides a shared framework and
language.
• Quickly capture and prototype business model concepts on paper so you
can create experiments to test them – and your assumptions!
• The business language of the Business Model Canvas can be off-putting for
some social entrepreneurs and people working in not-for-profits. I’ll help
frame the social enterprise context as we walk through the canvas.
BENEFITS. SOCIAL ENTERPRISE CONTEXT

5. THE BUSINESS MODEL CANVAS IN 2 MINUTES

7. Key
Partnerships
Key
Activities
Key
Resources
Value
Proposition
Customer
Relationships
Customer
Segments
Channels
Cost
Structure
Revenue
Streams

8. • Who are you creating value for?
• Who’s your ideal customer?
• Think about groups of people who share a common need
– and think, feel and behave in similar ways.
• Who’s likely to be an early adopter?
• Don’t take “Customers” too literally. You may have
members, constituents, citizens, communities.
• Who are the beneficiaries, intermediaries and other
groups receiving the value you create?
CUSTOMER SEGMENTS
Customer
Segments

9. • What value are you delivering?
• Think about the problem you want to help with and the
need you are focusing on.
• What is the social value you will deliver?
• How will you measure your social impact?
VALUE PROPOSITION
Value
Proposition

10. • What type of relationship do you have with each of your
customer segments?
• Think about the experience you want to create.
CUSTOMER RELATIONSHIPS
Customer
Relationships

11. • How do you deliver value to your customer segments?
• Think about the full customer lifecycle: awareness,
evaluation, purchase, delivery, after sales.
• What is the specific lifecycle of your interaction with your
customers?
CHANNELS
Channels

12. • How do you make money or receive
value in return?
• Think about what customers are willing
to pay for.
• What is value exchange can you create?
Think beyond financial payments.
• How will you create a sustainable
business model you can afford to
continue running?
REVENUE STREAMS
Revenue
Streams

13. • What do you need to do to create and deliver value?
• Think about what you need to do to deliver the lifecycle
you identified in Channels and the experience you
identified in Customer Relationships.
KEY ACTIVITIES
Key
Activities

14. • What do you need to create and deliver value?
• Think about the people you need to help you. What
physical, intellectual and financial resources do you need?
• What resources can you access and share rather than
buying?
• Remember advice, mentoring and introductions are a very
valuable resource.
KEY RESOURCES
Key
Resources

15. • Who can you work with to create and deliver value?
• Think about key suppliers and partners you may be able
to work with to get access to Key Resources and can help
perform your Key Activities.
KEY PARTNERSHIPS
Key
Partnerships

16. • What costs are incurred to create and
deliver value?
• Think about the cost of your Key
Activities and Key Resources. Are there
any costs associated with your Key
Partnerships?
• Think beyond financial costs. In a social
enterprise context it’s especially
important to factor in time and
emotional costs.
COST STRUCTURE
Cost
Structure

17. Key
Partnerships
Key
Activities
Key
Resources
Value
Proposition
Customer
Relationships
Customer
Segments
Channels
Cost
Structure
Revenue
Streams

18. • Start by rapidly creating some rough Business Model Canvases for your
concept. You should be able to do a rough canvas in less than 20 minutes.
• Identify your key and riskiest assumptions. “Get out of the building” and
start testing your assumptions. The Experiment Board is a great tool for this.
• Increase your empathy and understanding of your customers and the
problem you’re focusing on by talking to them directly. A lot.
• Iterate and refine your canvas as you learn from your experiments.
• Identify possible unintended consequences. Manage the risks of negatives
impacts.
• Have fun with the Business Model Canvas!
WHAT NEXT?

19. • The Business Model Canvas (businessmodelgeneration.com) is licensed under the Creative
Commons Attribution-Share Alike 3.0 Unported License. Free to share and adapt. From the
great book Business Model Generation – written by Alex Osterwalder & Yves Pigneur.
• A series of posts with examples of Business Model Canvases of familiar businesses:
www.bmimatters.com/tag/business-model-canvas-examples.
• People to follow and read: Alex Osterwalder, Ash Maurya, Steve Blank & Eric Ries.
• I will be publishing more posts and resources: www.dynamic4.com/ideas
• Dynamic4 Good (www.dynamic4good.org) is our grant program for community projects,
not-for-profit organisations and social enterprises focused on creating sustainable positive
change.
• Value Machine (www.valuemachine.com.au). We help early stage social entrepreneurs
identify and articulate their value proposition through human-centred design and lean
startup principles.
RESOURCES

20. Founder & Managing Director, Dynamic4
ben@dynamic4.com. www.dynamic4.com
www.linkedin.com/in/benpecotich
@benpecotich
BEN PECOTICH