Design Thinking and the Business Model Canvas for the Mobile Economy

10/02/2014

Workshop 1

Serge Van Oudenhove

WHAT IS

DESIGN

THINKING ?

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“Design thinking can be described

as a discipline that uses

the designer’s sensibility and methods

to match people’s needs

with what is technologically feasible and

what a viable business strategy can convert

into customer value and market opportunity.”

Tim Brown (Ideo)

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Design thinking is a problem solving method

Five Iterative Steps Process

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Empathize

Define

Ideate

Prototype

Test

1. EMPATHIZE

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Empathize

Define

Ideate

Prototype

Test

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WHAT is the empathize mode ?

Empathy is the foundation of a human-centered design process

• Observe: View users and their behavior in the context of their lives

• Immerse: Experience what your user experience

• Engage: Interact with and interview customers

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Observe and look through customers’ eyes…

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Live like the customers…

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And interact with users through interviews

HOW to prepare for an interview:

• Brainstorm questions

• Identify and order themes

• Refine questions: How the user FEELS

Read the Interview Preparation guide from the D.School

http://www.oercommons.org/media/upload/authoring/1686/documents/dSchool_interview.pd

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GO OUT TO TALK TO

YOUR CUSTOMERS !

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2. DEFINE

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Empathize

Define

Ideate

Prototype

Test

WHAT IS

THE PROBLEM

YOU WANT TO

SOLVE ? 15

“If I had an hour to solve a problem solution. I would

spend the first fifty minutes determining how to…

Frame the problem

...for once I know the proper question to ask

I can solve the problem in less than 5 minutes”

Albert Einstein

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WHAT is the define mode ?

Synthesize your empathy findings into needs and insights

• Focus rather than flaring

• Develop a deep understanding of your users

• Come up with an actionable problem statement

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Some useful empathy tools

Empathy Map Value Proposition Canvas

The Customer Journey Map

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The Empathy Map

Relying on your interview notes, write what the customers

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http://fr.slideshare.net/Solvay_Entrepreneurs/fiche-toolkit-empathy-map?utm_source=ss&utm_medium=upload&utm_campaign=quick-view

Read the Empathy Map article

Relying on your interview notes, define what are the customer’s

• Jobs to be done

• Pains

• Gains

The Value Proposition Canvas

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http://www.innovationexcellence.com/blog/2012/10/07/the-value-proposition-canvas/

Read the following article

Describes the journey of a customer and emphases on

• The goal of your customers

• The customer experience flow

• The touch points that characterize the service experience

• The interaction and the relationship

The Customer Journey Map

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The Customer Journey Map

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3. IDEATE

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3. IDEATE

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Empathize

Define

Ideate

Prototype

Test

WHAT IF ?

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WHAT is the ideation mode ?

Focus on idea generation

• Going Wide in term of concepts and outcomes

• Flaring rather than Focus

• Explore a wide solution space

• Quantity and Diversity of ideas

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Ideation is a team exercise

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Some useful ideation tools

Brainstorming Mind-Mapping

Visual-Thinking

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4. Prototype

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Empathize

Define

Ideate

Prototype

Test

WHAT is the prototype mode ?

Getting ideas out of our head in a physical world

• Several physical forms

• Linked to the progress of your exploration

• Explore possibilities with rapid iterative prototyping

• Fast learning approach

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A prototype can be anything…

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Linked to the progress of your project…

http://www.wired.com/design/2013/09/appseed-transforms-your-sketches-into-app-prototypes/

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In order to learn fast from your users

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Prototypes are most successful

when people interact with them…

…What you learn from those interactions

can help drive deeper empathy,

as well as shape successful solutions.

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Design Build

Prototyping a mobile app

Mobile user experience Mobile technology

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BUILD THE

EXPERIENCE,

NOT

THE TECHNOLOGY ! 38

5. TEST

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Empathize

Define

Ideate

Prototype

Test

“Failure is simply the opportunity to begin again,

this time more intelligently.“

Henry Ford

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WHAT is the Test mode ?

Testing is the chance to refine your solution

• Real context in use

• Hypothesis validation

• Get feedback from our users

• Use Metrics

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Test it in the real context

Get Feedback

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Metrics that matters

• Number of users

• Conversion

• Engagement

• Virality

• App-Ranking

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User-Centered Design Process

DEFINE

IDEATE

PROTOTYPE

TEST

EMPATHIZE

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BUSINESS MODEL

DESIGN

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“A business model described the rationale of how an

organisation creates, delivers, and captures value”

Alex Osterwalder

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questions

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A Business Model

Who?

What ?

How ?

How Much ?

Markides (1999)

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The 4 mains questions are…

• Who is the customers ?

• What is the bundle of product and services ?

• How to create and deliver the value ?

• How much cash-flows are generated ?

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+ -

Who ? What ? How ?

4 Questions

How Much?

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How Much? + -

Who ? What ? How ?

9 Building Blocks

+ €

- €

- Customers segments

- Channels

- Customer relation

- Product

- Service

- Key Activities

- Key Ressources

- Partnership

Financial Aspect Cost structure Revenue Streams

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The Business Model Canvas

• 9 Building Blocks

• Concept and relations between building blocks

Alexander Osterwalder & Yves Pigneur (2009)

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Building

Blocks

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Customer Segments

Key Partnership

Cost Structure

Channels

Customer Relationships

Key Activities

Key Resources

Value Proposition

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Revenue Streams

Business Modeling

9 Building Blocks

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1. Customer Segments

• Mass Market

• Niche Market

• Segmented

• Diversified

• Multi-sided Platforms

Building Blocks

Who ?

Who are your most important clients ?

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2. Value Proposition

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What ?

Building Blocks

Business Modeling

• Newess

• Performance

• Getting the job done

• Design

• Usabililty

• …

What is your solution to the problem ?

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WHAT IS

THE PROBLEM

YOU WANT TO

SOLVE ? 60

The product-market fit

Le Value Proposition Canvas

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Empathize

Define the problem to solve

Ideate the solution that fit the problem

Alexander Osterwalder (2012)

Who ? What ?

Business Modeling 61

The value proposition designer

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Who ? What ?

Business Modeling 62

Some value proposition examples

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Business Modeling 63

Give people the power to share and make the world

more open and connected.

Makes it easy to remember things big and small from everyday

life using your phone, tablet, computer and the web.

Capture and share the world’s moments.

“In the mobile context, you need to explain what you do

in 30 seconds or less because people move on to the

next shiny object...

…. There are so many apps and people are vying for

your attention on the go…

... You're not sitting in front of a computer; you're at a

bus stop or in a meeting."

Kevin Systrom

Instagram Founder

Value proposition workshop

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Business Modeling 65

Value proposition workshop

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Business Modeling 66

GET OUT

OF THE

BUILDING !

3. Channels

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Building Blocks

Business Modeling

• App Store and Android Store

• API

• Web-site and social network

• Blog, reviews, YouTube video

• People and virality

• Sales Forces

How to attract customers ?

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Who ?

4. Customer relationships

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Building Blocks

Business Modeling

• Engagement plan

• Automation

• Community

• Network effect

– Same-Side

– Cross-Side

How to keep customers ?

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Who ?

5. Revenue streams

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Building Blocks

Business Modeling

• Build the audience first

• Some revenues streams

How to make money ?

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Who ?

6. Key activities

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Building Blocks

Business Modeling

What are the key activities ?

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The most important things that the company must do

• Design

• Development

• Grow users base throug Marketing

• Data Analysis

How ?

6. Key activities

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Building Blocks

Business Modeling 72

7. Key ressources

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Building Blocks

Business Modeling

What are the key ressources ?

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The most important assets of the company

• Human

• Financial

• Data and mobile app

• Technology Infrastructure

How ?

8. Key partners

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Building Blocks

Business Modeling

Who are your key partners ?

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Networks of suppliers and partners

• Google Play and App Store

• Blog and ambassadors

• Business Angel and VC’s

• Innoviris

How ?

9. Cost Structure

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Building Blocks

Business Modeling

What are the main costs ?

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• Development

• Marketing

• Servers

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How Much ?

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Who ? What ? How ?

How Much ?

The Business Model Canvas

Business Modeling 76

Social Network Users

App Store Google play

Development App Store

Design

Development

Site and APIs

Developer

Automation

FREE

Web Forum Grow user

base

Take and share great pictures

Marketing

Server and Data (photo)

Hosted Platorm

Great photos APIs

Google Play

Investors

FREE

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WHAT IS YOUR

BUSINESS MODEL ?

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Business model workshop

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Hypothesis

? ? ?

? ?

?

? ? Hypothesis

Hypothesis

?

At this stage, it is only a set of hypothesis…

TEST IT !

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Go out and validate your hypothesis

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THANKS FOR

YOUR ATTENTION

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