Workshop innovits i tutor entrepreneurs 2013 mizio

Innovits workshop Back to basics

27 novembre 2013 Stefano Mizio

Stefano Mizio

Steve Blank

Startup and established company

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Steve Blank

The Big Picture Business Model & Context

The Big Picture

Current Business Model

The Company

The Industry

The Market

Future Trends

Blue Ocean Framework •Unexploited Potential •Option Value •Value Curve •Buyer experience

Technology Regulatory Macro-economic Society Culture

Customer •Jobs to be done •Needs •Satisfaction

Market Segments •Volume/Growth rate •Revenue potential

Gaining insights

Future Business Model

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What does business model mean? • “A business model is simply the ‘way of doing

business’ that a firm has chosen: its entire system for

creating and providing consistent value to customers and

earning a profit from that activity, as well as benefit for its

broader stakeholders. It refers to the core architecture or

configuration of the firm, specifically how it deploys all

relevant resources (not just those within the company

boundaries), to create differentiated value for customers

at a profit…” (Davenport, T. H., M. Leibold and S. Voelpel (2006). Strategic Management in the Innovation

Economy. Publicis Wiley.)

• The business model is a company’s answer to the

question of how to make money in its chosen business. It

describes, “…as a system, how the pieces of a

business fit together” (Magretta, J. (2002). "Why Business Models Matter." Harvard Business

Review 80(5) May: 86-92.)

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What is a business model?

• The essence and main components

WHO WHAT HOW

is your customer?

do you offer your customers?

do you do this?

Markets

Customer Segments

Individual Customers

Products & Services

Solutions

Experiences

Create Value

Deliver Value

Capture Value

Delivering the Who, What and How in a concise message. Unique Value Proposition: a single, clear compelling

message that states why you are different and worth buying

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By Mark Sniukas

Who • People who want a quick bite to eat • Get in, order, get served quickly, get

out quickly again

What • Pre-made food prepared constantly according to demand

• Standard menus • Some variations allowed

How • Standardized processes • Central locations with high

frequencies • The key is to serve a maximum

number of people during a given time

McDonald’s

Business Model

By Mark Sniukas

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OFFER

CHANNELS

RELATIONSHIPS CLIENTS

REVENUE STREAMS COST CENTRES

KEY

PARTNER

KEY

RESOURCES

KEY

ACTIVITIES

Who‘s your customer?

Which

customer segments do you serve?

What‘s your offer?

Which „jobs to be done“

do you satisfy?

What‘s your relationship

to the customer?

What‘s your image?

How do you reach your customers?

How do you make money?

What is driving cost?

What are your core

activities and processes? What are

your main suppliers, partners

and alliances? What are your

main assets and

competencies?

The business model is a company’s answer to the question of how to make money in its

chosen business. It describes, “…as a system, how the pieces of a business fit together”

Your current business model Build a common language and understanding

By A. Osterlwalder Stefano Mizio

BMC Example: Telco

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JTBD fundamental problem in a given situation

that needs a solution

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When customers find that they need to get a job done, they

“hire” products or services to do the job.

MIT Sloan Management Review 2007 - Finding the Right Job For Your Product

The Innovator’s toolkit

Key components of a job statement

are an action verb, the object of the

action, and clarification of the context

in which the job is performed

Main jobs to be done, which describe

the task that customers want to

achieve.

Related jobs to be done, which

customers want to accomplish in

conjunction with the main jobs to be

done.

JTBD fundamental problem in a given situation

that needs a solution

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The Process

1 • Jobs to be done

2 • Value proposition

3 • Your Business Model

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JTBD: providing a

safer alternative for

scooter families.

Value Proposition:

offering an affordable,

safer, all-weather

alternative for scooter

families.

Business Model:

that goal required radical

changes in the cost

structure of making a Car.

You are standing on a Mumbai road on a rainy day and notice the

large number of motor scooters snaking precariously in and out

around the cars

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Value Proposition Canvas

Design Value Propositions that match your Customer's needs and

jobs-to-be-done and helps them solve their problems.

Goal: product-market fit

By A. Osterlwalder Stefano Mizio

Product-Market fit Jobs to be done:

•What functional jobs is your customer trying get

done? (solve a specific problem, complete a specific

ask)

•What basic needs is your customer trying to satisfy?

(communication,…)

•What emotional jobs is your customer trying to get

done? (feel good, security,…)

Pains (before, during and after getting the JTBD): •What does your customer find too costly?

•What makes your customer feel bad?

•How are current solutions underperforming for your customer?

•What are the main difficulties and challenges your customer encounters?

•What negative social consequences does your customer encounter or fear?

•What risks does your customer fear?

•What common mistakes does your customer make?

•What barriers are keeping your customer from adopting solutions?

Gains: •Which savings would make your customer happy?

•What outcomes does your customer expect and

what would go beyond his/her expectations?

•How do current solutions delight your customer?

•What would make your customer’s job or life

easier?

•What positive social consequences does your

customer desire?

•What are customers looking for?

•What do customers dream about?

•How does your customer measure success and

failure?

•What would increase the likelihood of adopting a

solution?

By A. Osterlwalder Stefano Mizio

Value Proposition Canvas

Which core beliefs you need to test with customers

(analgesics): How we are helping our customers with

their pains (for example: saving them some time thanks to the automatic generation of a shopping list or thanks to a home

delivery service)

(vitamins): How we provide benefits for our customers

(for example: helping them to save some money thanks to some discount coupons).

By A. Osterlwalder Stefano Mizio

The Journey

Andreas Klinger Stefano Mizio

Static and Dynamic merge

By A. Osterlwalder

WHAT are we

building and

WHY are we

buiding it

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There are no facts inside the building

Lean Startup 101

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Leaps of faith assumptions

The Value Hypothesis

The Growth Hypothesis

The Minimum Viable Product

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Data

Center

+ 1

backup

metod

Telecom /Cell

phones provider

Unreliable

electric grid

Sell

Data center fuel

availability

countries

have grid

problerms

Fuel

costs

Risk theft

of fuel

7/10

Developing

countries / no

reliable grid

DURATHON

Exploration

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The easiest version…

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Lean Launch Lab

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BMC

VALUE

PROPOSITION

CHANNELS

RELATIONSHIPS CUSTOMERS

REVENUE STREAMS COST CENTRES

KEY

PARTNERS

KEY

RESOURCES

KEY

ACTIVITIES

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Strategy and Business Models

(Business Models)… But they don’t factor in one critical

dimension of performance: competition.

Sooner or later—and it is usually sooner—every enterprise

runs into competitors

P.B. Seddon – G.P. Lewis Strategy and Business Models: what’s the difference? Stefano Mizio

Value Curve theory (1)

Stefano Mizio W.C. Kim R. Mauborgne Blue Ocean Strategy

Value Curve theory (2)

Stefano Mizio W.C. Kim R. Mauborgne Blue Ocean Strategy

Nintendo Wii example

0

2

4

6

8

10

Sc

ori

ng

Factors of Competition

Industry Strategy Canvas

Nintendo

Game Industry

Stefano Mizio W.C. Kim R. Mauborgne Blue Ocean Strategy

Holistic Focus on three things

Agile Coaching Blog – David Bland Stefano Mizio