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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/