Business modeling and Lean an introduction in both Marcellien Breedveld Ideas that last – Startup Weekend – 17 november
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Aug 19, 2015
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Business modeling and Lean
an introduction in both
Marcellien Breedveld
Ideas that last – Startup Weekend – 17 november
What’s a Startup?
What’s a Startup?
What is a business model?
A business model describes how a company creates and delivers Value for its customers and captures value for itself
Classic air travel model
revenue
airport
passengers
air travel
runway
aircra2, fuel
food
cleaning
checkin
jetway
costs
Ryanair model
revenue
airport
budget passengers
aircra2, fuel
food
cleaning
costs
checkin jetway
revenue
Ryanair model
revenue
airport
budget passengers
aircra2, fuel
food
cleaning
costs
checkin jetway
revenue
revenue
Ryanair model
revenue
airport
budget passengers
parking
aircra2, fuel
food
cleaning
food shopping
costs
checkin jetway
hotels
car rental revenue
revenue
How not to use the business model canvas
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
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?
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 work?
• How much do you channels cost you?
1) Communica+on 2) Distribu+on 3) Technical customer service
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
Building blocks – revenue streams
Revenue streams 1) Revenue model 2) Actual prices
Building blocks – key resources
Key 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 to create and deliver the value proposiCon and to moneCze on it.
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 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
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
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
Change assumptions into facts
First test the problem, then the solution
Design the experiment to test your assumption
What do you want to learn?
• Keep it simpel
• Pass/fail experiment
• Set minimum criteria for validaCon
• Fast test, short cycle Cme
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.
Where are the facts?
There are no answers inside your office
So, get out of the building
So get out of the building!
Dollar shave club
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?
Reading material
How not to use the business model canvas
Secondary airports Website
ProvocaCve, aggressive, low cost, no customer service
Need to o2en travel easy and cheap to nearby places
Pay only for value taken Cheap Cckets
Flying
HR, airplanes
Secondary airport mgt and local
government
Low cost structure, Bargaining every deal
Airplanes, HR
Tickets Airport subsidies Luggage check-‐in
Passengers travelling for a weekend/short stay abroad
AviaCon fuel suppliers
The customer development process
Problem-‐soluCon fit
Repeatable & scalable sales model
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