This document provides an introduction to concepts for developing a business model, including customers and value propositions. It discusses workshops on shaping good ideas through human-centered design and introduction to the Business Model Canvas. The key activities are to identify customer segments and develop value propositions for the business by getting to know customers, their needs and pain points. The document encourages prototyping ideas and testing them with customers to gain insights.

1. #LFLP15

2. LAB #1: CUSTOMERS AND VALUE PROPOSITION
concept development labs
LOCAL FOOD LAUNCHPAD

3. welcome
join the conversa.on on twi0er with
@goodfoodproj
@DoingSomeGood
#LFLP15
DAVID HOOD
@DavidAHood
MELINA CHAN
@MelinaChan
doingsomething
good
STEPH GESLING
@StephGesling

4. Local Food Launchpad brought to you by

5. with thanks to…

6. #LFLP15
David Hood
DOING SOMETHING GOOD
@DavidAHood

7. workshop program
• welcome
• shaping good ideas
• introducFon to Human-­‐Centred Design
• introducFon to Business Model Canvas
• work on your Business Model Canvas
• 1. Customer Segments
• 2. Value ProposiFon
• geMng to know your customers/users/members/supporters

8. #LFLP15
Tasia Karlis
CITY OF MELBOURNE
@cityofmelbourne

9. check in
check in

11. shaping good ideas

12. http://dthsg.com/what-is-design-thinking/

13. “If I had an hour to
solve a problem I'd
spend 55 minutes
thinking about the
problem and five
minutes thinking
about solu:ons.”

14. the five phases of
design thinking
http://thinkingofdesign.blogspot.com.au/

16. http://hci.stanford.edu/dschool/resources/design-process/readable.html

17. intro to Human-­‐centred Design

18. https://dschool.stanford.edu/

19. shaping great ideas
Start with
why
Why are you doing this? What is the situaFon you want to change and
why is it important to change? What might change look like? What do
you believe is possible? What is your preferred future?
Build your understanding
of the context
1 What is the current situaFon? Who does it impact? What is it’s impact
on people, the planet, the economy? What are the possible causes?
Observe. Listen. Learn. Enquire.
Iden7fy your target
audience
Who are you designing your service or product for? Be specific. Who
believe’s what you believe? It’s not everybody.
Get to know your target
audience
3 Seek to understand their needs and aspiraFons, what moFvates them
and their challenges. Develop user personas and user journeys to
provide valuable insights.
Iden7fy the problem you
are solving
How does your idea help your target audience to get what they need or
what they value? How does it help them to overcome challenges and
barriers?
Prototype and
test ideas
Gain insights into customers’ needs by designing and deploying the
smallest amount of funcFonality possible (AKA your minimum viable
product/service). Evolve the soluFon based on insights provided by
engaged early adopters.
1
2
3
4
5
6

20. START
WITH
WHY

21. People don’t buy what you do they
buy why you do it. ~ Simon Sinek

22. ‣ why: belief, moFvaFon or
purpose
‣ how: experience or process
‣ what: details of product of
service

24. Why do you believe growing and
accessing more local food is important?

25. research

27. human-centred
design

28. why use a human-­‐centred design approach?
“Because it can help your organizaFon connect be`er with
the people you serve. It can transform data into acFonable
ideas. It can help you to see new opportuniFes. It can help to
increase the speed and effecFveness of creaFng new
soluFons.”
h`p://www.ideo.com/work/human-­‐centered-­‐design-­‐toolkit/

29. design thinking
Getting to knowyour audience

31. 1000 true fans

33. Who needs your idea the most?

35. What’s their history in
relaFonship to eaFng,
growing, preparing and
buying food?
What’s their rouFne? Daily,
weekly, monthly, annually?
What are their personal
goals around eaFng, cooking,
health & wellbeing?
What moFvates them?
What are the challenges
they face to growing or buying
local food? What are
the constraints/barriers?
What sort of experience are
they looking for? What sort
of interacFon do they want
to have with others/you?
What sort of thing might
you expect them to say
about their ideal experience
and why they love it?

36. Empathyis not just about walking
in another's shoes.
First you must
remove your own.

37. EMPATHY MAP
What do I see?
What do I say and do?
What do I hear?
How do I feel?
What do I think?
Pain Gain
Fears | Frustrations | Obstacles Wants/Needs | Measures of Success
Persona: Scenario:

38. getting ready arrive depart fall asleep
ENABLING
CONDITION
SCENARIO
Persona: Scenario:
POINT OF
DECISION
POTENTIALH
URDLE

39. Having a great idea doesn't guarantee success.
A great business idea must also have a great
business model to support and sustain it.
Alex Osterwalder

41. intro to business models

42. What is a business model?

43. Def_Business Model
A business model describes
the raFonale of how an
organisaFon creates, delivers,
and captures value.
Source: Business Model Generation

45. A shared language for describing, visualizing,
assessing, and changing business models
The Business
Model Canvas

46. 1. customers 2. value
proposition
3. channels 4. customer
relationships
5. revenues 6. key
resources
7. key
activities
8.
partnerships
9. costi Business
Model
Canvas
The
Business Model
explained to my
Grandmother
info@hugowiz.itAnche in Italiano http://slidesha.re/eGZRLO

47. 62%
9 building blocks > summary
9
Business Model
building blocks
customers
value proposition
channels
customer relationship
revenues
key resources
key activities
partnerships
costs
1.
2.
3.
4.
5.
6.
7.
8.
9.

48. 66%
Business Model Canvas > intro
Let's organize the 9
building blocks: the
Business Model Canvas
Who:
the Business Model
Canvas was invented by
Alexander Osterwalder
and published in his book:
Business Model Generation
What:
a framework showing
the building blocks'
relationships

49. The Business Model Canvas is a tool for
you to design, analyse, test and
describe your business model and how
your organisaFon intends to create,
deliver, and capture value in a profitable
way.

53. Why use Business Model Canvas?
Fundamentally, it delivers three things:
1. Focus: Stripping away the 40+ pages of ‘stuff’ in a tradiFonal business plan, it
can help to clarify and focus on what’s driving the business (and what’s non-­‐
core and geMng in the way).
2. Flexibility: It’s a lot easier to tweak the model and try things (from a planning
perspecFve) with something that’s siMng on a single page.
3. Transparency: Your team will have a much easier Fme understanding your
business model and be much more likely to buy in to your vision when it’s laid
out on a single page.

54. getting started

55. guess
guess
guess
guess
guess
guess
guess
guess
guess
guess
guess
guess
guess
guessguess guess

57. 1. customer segments

58. The Customer Segments Building Block
defines the different groups of people or
organizaFons an enterprise aims to
reach and serve.

59. Customer Segments
There are different types of market segments:
1. Mass market
2. Niche market
3. Segmented
4. Diversified
5. MulF-­‐sided plamorms (or mulF-­‐sided markets)

60. Key QuesFons
1. For whom are we creaFng value?
2. Who are our most important customers?

61. 7ps
Customer groups represent separate segments if:
• Their needs require and jusFfy a disFnct offer
• They are reached through different DistribuFon Channels
• They require different types of relaFonships
• They have substanFally different profitabiliFes
• They are willing to pay for different aspects of the offer

62. ac>vity
1. Which customer segment are you targeFng?
2. Is there a parFcular niche within that market segment that
you are targeFng? What is it?

63. next…
• develop 2-­‐3 personas for each of your customer segments
• idenFfy what they value & idenFfy what problems they
have
• idenFfy the barriers they face to geMng acFve
• map out a day in the life for each customer segment
• what is their usual rouFne?
• what are their habits?
• which trend/s are you tapping in to with your concept?

64. 2. VALUE PROPOSITIONS

65. The Value Proposi7ons Building Block
describes the bundle of products and
services that create value for a specific
Customer Segment.

66. Value Proposi7ons
Elements from the following non-­‐exhaus:ve list of quan:ta:ve
or qualita:ve values can contribute to customer value crea:on:
1. Newness
2. Performance
3. CustomizaFon
4. “GeMng the job done”
5. Design
6. Brand/status
7. Price
8. Cost reducFon
9. Risk reducFon
10. Accessibility
11. Convenience/Usability

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68. Tips
• Make it as plain as day
• Use your customer’s language. How would they describe
the benefits themselves?
• Strengthen your case
• Customer tesFmonials
• Assurance
• Social proof

71. Key Ques7ons
1. What value do we deliver to the customer?
2. Which one of our customer’s problems are we helping to
solve?
3. Which customer needs are we saFsfying?
4. What bundles of products and services are we offering to
each Customer Segment?

72. ‘Means Values’
vs
‘Ends Values’

73. Homework
Watch videos from pre-­‐Lab email
Develop three personas
Fill out an empathy map for at least one of your personas
Iden:fy key problems you are solving for them
Iden:fy what value you provide for them
Fill out Customer Segments and Value Proposi:on on BMC
Research

74. “Some men see things as they are,
and say, ‘Why?’ I dream of things that
never were, and say, ‘Why not?’”
~ George Bernard Shaw