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    Session4 Business Model Canvas

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    Shaina Dewan

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    Session4 Business Model Canvas

    Uploaded by

    Shaina Dewan
    38 views48 pages

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    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    38 views48 pages

    Session4 Business Model Canvas

    Uploaded by

    Shaina Dewan

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    You are on page 1of 48

    THE FOUNDATIONS FOR A GOOD STARTUP

    Design Thinking

    1. EMPATHIZE 2. DEFINE 3. BRAINSTORM 4. IDEATION

    • Find love • Find users • No stupid idea • Multiple ideas to


    • Effectuation • Identify • Teamwork solve the problem
    problems
    5. The Canvas….
    METRICS METRICS METRICS

    CRM
    DO
    COMM.CUST.
    BUY UVP
    (HOW TO) DEMAND SEG.
    GET DONE S&D.
    COST REVENUE

    REVENUE – COST = CONTRIBUTION


    The Building blocks explained..

    https://www.youtube.com/watch?v=IP0cUBWTgpY
    https://www.youtube.com/watch?v=dhQh-tryXOg
    Various customer segments are as below;

    1.Mass Market: The product is a relevant need amongst the general population. Eg. Flour.

    2.Niche Market: This customer segment is based on highly specific needs and unique traits of its
    clients. Eg. designer clothes

    3.Segmented: Further segmentation based on slight variations in the customer’s demographics and
    their needs. Eg. Gluten free flour

    4.Diversify: Tweaking the offering to suit the needs of segments with dissimilar needs or traits.

    5.Multi-Sided Platform/ Market: This kind of segment serves customers who have a relationship to
    each other eg. drivers and passengers for Uber
    The combination of products and services an organization provides to its customers.

    Needs to be unique and easily differentiated from competition.

    Value propositions can be divided into two categories:

    1.Quantitative: this stresses the price or efficiency of the product or service

    2. Qualitative: highlights the experience and results the product and its use, produce.

    The value proposition provides value through a number of attributes such as:
    • customization,
    • performance,
    • “getting the job done”,
    • brand/ status,
    • design,
    • newness,
    • price,
    • cost and risk reduction,
    • Accessibility
    • convenience/ usability.
    The medium through which an organization provides its value proposition to its customer segment

    The channel selection is based on time, efficiency and least amount of investment required.

    There are two basic kinds of channels –

    1. Company owned channels e.g. store fronts

    2. Partner Channels e.g. Distributors.

    A company can opt to choose either one or employ a combination of both.


    Customer Relationships can be categorized as follows;

    1.Personal Assistance: company interacts with the customer directly through an employee who provides the
    human touch

    2.Dedicated Personal Assistance: A dedicated representative personally responsible for the entire
    experience the customer has with the company.

    3. Self-Service: Self-Service places the onus of the customer experience on the customer himself

    4. Automated Services: Customized self-service relationships where the historical preference of the
    customer is taken into account to improve the overall experience.

    5. Communities: In today’s electronic age creating communities of clients allows organizations to


    communicate with them directly. The community allows clients to share their experiences and come up with
    common challenges and solutions.

    6. Co-creation: The customer has a direct hand in the form the company’s product or service will take.
    A revenue stream can be created through the following ways;

    1.Asset Sale: the company sells the right of ownership over the good to the customer.

    2.Usage Fee: the company charges the customer for the use of its product or service.

    3.Subscription Fee: the company charges the customer for the regular and consistent use of its product or
    service.

    4.Lending/ Leasing/ Renting: the customer pays to get exclusive access to the product for a time-bound
    period.

    5.Licensing: the company charges for the use of its intellectual property.

    6.Brokerage Fees: companies or individuals that act as an intermediary between two parties charge a
    brokerage fee for their services.

    7.Advertising: a company charges for others to advertise their products using their mediums.

    An effective price for the product and/or service will be arrived at through the process of elimination.
    Can also ask the customers what and how would they like to pay for the value offered
    Resources can be categorized as:

    1. Human – employees, contract labours, consultants etc.

    2. Financial – cash, credit line available, stock options etc.

    3. Physical – buildings, land, machinery, distribution networks etc.

    4. Intellectual – patents, copyrights, partnerships, databases etc.


    The key activities can be categorized as:

    1. Production: These activities relate to designing, making, and delivering a product in substantial
    quantities and/or of superior quality.

    2. Problem solving: Key Activities of this type relate to coming up with new solutions to individual customer
    problems. E.g. consultancies

    3. Platform/Network: Key Activities in this category relate to platform management, service provisioning,
    and platform promotion.
    4 different types of partnerships:

    1. Strategic alliances between non-competitors

    2. Coopetition: strategic partnerships between competitors

    3. Joint ventures to develop new businesses

    4. Buyer-supplier relationships to assure reliable supplies

    Motivations for creating partnerships:

    1. Optimization and economy of scale

    2. Reduction of risk and uncertainty

    3. Acquisition of particular resources and activities


    Common cost structures;

    1.Fixed Costs: costs that remain the same over a period of time

    2.Variable Costs: as the name suggests, these costs vary according to a variance in
    production

    3.Economies of Scale: costs decrease as production increases

    4.Economies of Scope: costs are decreased by investing in businesses related to the core
    product.
    Intrapreneurs -&- Entrepreneurs

    Business Model Canvas - The Lean Startup Lean Canvas -


    Alexander Osterwalder Methodology - Ash Maurya
    Eric Ries
    https://www.youtube.com/watch?v=pvIN9STpzCQ
    Post – It….
    Test-It….
    Iterate It Model
    Lean Startup Methodology

    5. LEAN CANVAS 6. HYPOTHESIS 7. GET OUT OF THE 8. CUSTOMER


    BUILDING ENGAGEMENT
    • Build canvas for • Realize the canvas
    each solution is built on • Go to where your • Get customer
    untested customers are feedback
    assumptions
    Lean Startup Methodology

    9.

    Iterate
    10.

    Find THE canvas


    3. LEAN + AGILE DEVELOPMENT

    11. LOW FIDELITY 12. MINIMUM VIABLE 13. HIGH FIDELITY 14. PILOT
    PROTOTYPE PRODUCT PROTOTYPE
    • Final form
    • Soap model • Product with bare • Closer resemblance to launched in the
    • Sketch minimum features final form market
    • Wireframes • Multiple versions
    • Smoke Screen may be required
    • Landing Page
    Let’s get Canvasing…..
    1. Amazon
    2. AirBnB
    3. Youtube
    4. SpaceX
    5. Pinterest + YOUR IDEA
    6. Snapchat
    7. Dropbox
    8. BigBasket
    9. Swiggy
    10.Dunzo

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