Page 1 Business Model Canvas Foundational TOOL BMC MVP Biz Plan Cate Meyer SAGE Advisor CSU Adjunct Faculty Lean Chasm
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BusinessModelCanvasFoundationalTOOL
BMC
MVP
Biz Plan
Cate MeyerSAGE AdvisorCSU Adjunct Faculty
Lean
Chasm
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Butfirst….Cate,
Iwouldlovetobeoneofthosestudentsthattookyoutocoffeeandtoldyouallabouteverything. Atthemoment,Ican'tdothatIamsureyouaretoobusytodothataswell. BUTWHATICANTELLYOUISTHATIGOTANAWESOMECONTRACTJOBBECAUSEOFMYABILITYTOUSETHEBUSINESSMODELCANVAS! :) Thoughtyouwouldappreciatethat!
-adw
DVMCandidate | Classof2019 | ColoradoStateUniversity
5June2017 +Key Differentiator in Student CIS Competitions
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ContextandApplication• BusinessModelGenerationCanvasoverview
• TheCanvasasatooltounderstandstrategyanddecisions• FrameworkandVocabulary• Variationsonthetheme
• ExamplesontheCanvas• Apple/I-Tunes• VigilantCare (SAGEclient)• SAGE(GroupBuildActivity)
<Interactive Poll>
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WhatisaBusinessModel?• Overallrationaleofyourbusiness
• Howyougetstuff,whatyoudowithit,howandwhoyousellittoandkeeptrackofthemoney
• Simplearticulationofyourbusiness• Thatclearlyseparatesthefewitemsthatmakeyoudifferentfromeverythingelseyoujusthavetodo
• Avocabularythatyouandyourteamshare• Soyoucanmakebetter andfaster decisions
• Doesnotstandalone• Yourbusinessmodelisrelative tocompetitorsandindustry
Snapshot of a Business Plan
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Cate’sKeyQuestionsofSTRATEGY:• WhatCUSTOMERdoweSERVE?• WhatPROBLEMoftheirsdoweSOLVE?
• HOWdowesolvethatproblemBETTERTHANCOMPETITION?
• HowdoweMAKEMONEY?
Value Creation – WHOWHAT
Value Delivery - HOW
Value Capture - WHY
BMC + Financials = Effective mini-PITCH
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BMC:NineKeyParts• CustomerSegments+• ValuePropositions+• Channels+
• CustomerRelationships=Revenue
• KeyResources+• KeyActivities+
• KeyPartnerships=Costs
• AndRevenue– Costs=Profits• whicharethegoal
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BMG Canvas
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Value DeliveryHOW
Value CreationWHO/WHAT
Value CaptureWHY
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The Business Model Canvas
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The Lean Canvas
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Mission-based(Non-Profit)– StevenBlank
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CustomerSegments:Whichcustomerdoweserve??
• Whoareourcustomers?• Forwhomareweaddingvalue?• Whoareourmostimportantcustomers?
• Segmentationisthetooltouse• Segmentsareoftenreferredtoas:
• Mass,Niche,Needs-based• Manymodelsexisttoservethem
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ValuePropositions• Whatvaluetothecustomer?• Whatspecificproblemsorneedsdoweaddress?• Withwhatproductandserviceswillweservethesegments?
• Valuepropositionisboth• whatthetargetcustomerhearsandfeels• whatyourallyyourteamtodeliverØThegoalistobemoreappealingthanalternatives
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Channels• Book’sfocushereanswers:
• Howdooursegmentswanttobereached?• Howdowereachthemtoday?• Whichworkbest?Aremostcostefficient?• Howwelldotheyservethecustomerstotalneed?
• Channelsareakeycustomertouchpoint• Deliveringmuchofyourvaluemessage– ornot• Allowingthecustomertobuyeasily– ornot
• Channeldecisionsarecomplex• Own,Partner;Direct,Indirect• awarenessè evaluationè purchaseè deliveryè support
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CustomerRelationships• Book’sfocushereanswers:
• Whattypeofrelationshipdoesoursegmentwant?
• Whichonesexist,cost?• Doesthisreflecttherestofourbusinessmodel?
• Relationshipshavetoreflectthecustomer'sneed• Face-to-facevs.automated,orboth• Changesbyphaseoftherelationship
• Awarenessè Evaluationè Purchaseè Deliveryè PostSalesSupportèRetentionè Repeat
• Relationshipsarehuman• Manageyourfacetothecustomeraccordingly
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RevenueStreams
• Book’sfocushereanswers:• Customerwillingnesstopay?• Whataretheypayingnowandhow?• Howbigiseachrevenuestream?
• Cashfromeachcustomersegment• Onetimetransactions• Recurring
• Myriadofwaystogeneratecash• Whichonesmakeyousuccessful?• Whichonealignwiththerestofyourbusinessmodel?
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KeyActivities• Book’sfocushereanswers:
• Whatactivitiesdoesourvaluepropositionneed?• Ourchannels?Customers?Revenuestreams?Partners?
• Activities areaboutwhatyoudo,resources aboutwhatyouhave– theyworktogether
• Buildthings• Supplychainmanagement• Softwaredevelopment
• Activitiesmustbefocusedonuniquevaluecreation
• Orpaysomeoneelsetodothem
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KeyResources
• Book’sfocushereanswers:• WhatdoIneedtodelivermyvalue
proposition?• Whatresourcesareneededtosupportmychannels?• Whatresourcesareneededtomanagemyrevenue?
• Resourcesarethethings• Physical,intellectualorhuman• Factories,ATM’s,Intellectualproperty,People,Trucks,Software,Systems• Inaresourcesense,peoplearealsothings
• Resourcesdrivecostsandmustbemanaged• Thefewyouneedtoownvs.whatyourent
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KeyPartnerships
• Book’sfocushereanswers:• Whoareourpartnersversesoursuppliers?• Whatresourcesoractivitiesmustwegetfromthem?• Canwedelivervaluetooursegmentswithoutthem?
• Coopetition rulesheretoday• Manycompaniesaresuppliers,customersandcompetitorswitheachother
• Partnershipcomeinmanyforms• Strategicalliances• Jointventures• Buyer-Seller
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CostStructure
• Book’sfocushereanswers:• Whatarethemostimportantcosts?• Whatcostscannotbemanaged?• Whatresourcesandactivitiescanwecostcontrol?
• Costsareverybusinessmodelspecific• Allstartupsfailforthesamereason– theyranoutofmoney• Sochoseyourbusinessmodeltomatchyourcash
• Knowthecostsofallthebusinessmodelchoices• Segments,Relationship,Channel,Activities,Resources,Partnerships,ValuePropositiondevelopment….andCostandRevenuemanagement
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AppleiPod/iTunesCanvas
Business Model Generation, Osterwalder & Pigneur, Wiley, 2010. p.46.
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VigilantCareCanvas– earlydraft
Key Partners Evergreen (grant funds) • software/hardware development • FDA approvals • Product distribution • Product support • ?Ecommerce
Autism researchers (Mizou) Child self-help groups Child with autism/parent advisory board Media Consultant - ??? target market expertise eg: family health concerns?
Key Activities (for business) • Grant writing and scientific study conduct o Ongoing research testing clinical
outcomes
• Ongoing product development o Embed self-management components
when possible o Develop a daytime system o Develop system for child <35# o Identify additional needs that
potentially have technologic solution
• Outbound marketing o Develop relationships with local autism
practitioners o Present at autism healthcare practitioner
conferences, ? trade booth o Web Presence Creation and marketing o Blogging o Press releases re: research results
Value Propositions Prevention of unsafe behaviors without ‘tagging’ children Greater independence
- Self-management of sleep problems
Improved academic performance Fewer autism symptoms Reduced chance of life-long sleep problems Product customization to needs of population of cwa and to each child/family unit
Data Needs: 1. Research results re: value claims 2. More details re: level of customization – is it at the user level?
Customer Relationships
• New Customer Acquisition o Direct to parent via web
portal
Customer Segments
• Child with autism – user? • Teachers - recommender? • Parents of CWA - payer? • State Agency - payer?
Data Needs: 1. incidence level/population of CWA - size – national/state - projected growth rates 2. Govt Support Programs for CWA - federal? - by state?
Key Resources • Scientific team • Child with autism/parent advisory board
Channels • Autism support groups - recommender • Special education teachers –
recommender
• Owned sales force – government agencies
Data Needs: 1. Key Support Groups? 2. Govt Support Programs for CWA - federal? - by state?
Cost Structure
• Grant funds 30/40% Operational expenses? • How does Evergreen get paid? Royalties?
Revenue Streams • Grant dollars – how distributed? All up front? • Payments from State/Federal programs? • Web Product Sales • Monthly service subscriptions?
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Let’sDoanExample– 5minutesworkalone
• WhatistheValueProposition forSAGE?• Whoare“We?”• WhoistheCustomer?• WhatistheProduct/Service?• WhoistheNextBestCompetitor?• WhatisourDifferentiation?• WhatisthePrice?Cost?
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BMG Canvas
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SAGEBMC– Draft1
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WebSiteandVideos
• FollowtheselinkstojointheBMGonlinecommunity• Textbookwebsite:http://www.businessmodelgeneration.com/• BMGInnovationhub:http://www.businessmodelhub.com/• Alex’swebsite:http://www.businessmodelalchemist.com/• Alex’stools:http://www.businessmodelalchemist.com/tools
• AlternativeModels:• LeanStartUpCanvashttp://ashmaurya.com• MissionbasedCanvashttps://steveblank.com/2016/02/23/the-mission-model-canvas-an-adapted-business-model-canvas-for-mission-driven-organizations/