SARTA: Business Model Canvas Workshop

(Key
Partners)

(Key
Activities)

(Key
Resources)

(Cost Structure)

(Value
(Customer
Propositions) Relationships)

(Customer
Segments)

(Channels)

(Revenue Streams)

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Workshop:!
Business  
Model  
Canvas  
Copyright 2014 Cowan Publishing

(Key
Partners)

(Key
Activities)

(Key
Resources)

(Cost Structure)

(Value
(Customer

(Customer
Segments)

(Channels)

(Revenue Streams)




CUSTOMER DEVELOPMENT
MVP

Product-Market  
Fit(?)

Scale

PIVOTAL 
ASSUMPTIONS  Nascent 

Test, revise,
test... 

Validated- now
tactical 

Validated- now
tactical 

PRODUCT 

N/A 

MVP 

Focus: efﬁciency,
extension 

What would a
startup do?? 

ORG. 

Founders 

PARTNERS, 
CHANNELS 

Customer dev.
team 

Full functional
organization 

Scalable
organization 

Probably too
soon 

Probably too
soon 

Yeah, maybe? 

Yeah, deﬁnitely! 

Personas

CUSTOMER DEVELOPMENT & THE CANVAS
MVP

Product-Market  
Fit(?)

Scale

Thinking through what you want the business to be for a
better idea of what you don’t know. !

"

Then use that to focus your discovery. 


MVP

Product-Market  
Fit(?)

Scale

Focal point for managing your assumptions- which are
open? closed? what are their inter-relationships?!


MVP

Product-Market  
Fit(?)

Scale

Focal point for organizing incremental ‘growth hacking’
experiments.


MVP

Product-Market  
Fit(?)

Scale

Strategy management tool and jumping off point for new
‘intrapreneurial’ ventures and business model innovation.


The Canvas is a housekeeping tool. !
"

It won’t hand you the gold but it will
help you monitor how things are
panning out.

ALEX COWAN!
AlexanderCowan.com"
@cowanSF

IT’S A PROCESS

Some techniques are more effective than others.
But they all require substantial, consistent exertion.


VENTURE DESIGN

Foundation in
Design Thinking


VENTURE DESIGN

Hypothesize

Learn

Lean StartupStyle Assumptions

Experiment

Foundation in
Design Thinking


VENTURE DESIGN

Hypothesize

Business Model
Canvas

Learn

Experiment

Foundation in
Design Thinking


VENTURE DESIGN

Hypothesize

Business Model
Canvas

Learn

Experiment

User Stories &
Test Cases

Foundation in
Design Thinking


VENTURE DESIGN

Hypothesize

Business Model
Canvas

Learn

Experiment

User Stories &
Test Cases
Product &
Promotion

Foundation in
Design Thinking


THE CANVAS: 3 PARTS
Partner_1
Partner_2
Partner_3

Activity_1
Activity_2
Activity_3

Proposition_1
Proposition_2
Proposition_3

Relationship_1
Relationship_2
Relationship_3

Resource_1
Resource_2
Resource_3

Cost_1
Cost_2
Cost_3


O ering
Customers
Infrastructure

Segment_1
Segment_2
Segment_3

Channel_1
Channel_2
Channel_3

Revenue_1
Revenue_2
Revenue_3



SEGMENT TO VALUE PROPOSITION MAPPING
Proposition_1
Proposition_2
Proposition_3


Segment_1
Segment_2
Segment_3



THE INDEPENDENT VARIABLE
Customer
Segments

Value
Propositions

(Key
Partners)

(Key
Activities)

(Key
Resources)

(Cost Structure)

(Value
(Customer

(Customer
Segments)

(Channels)

(Revenue Streams)




CUSTOMER SEGMENTS VS. PERSONAS
Customer
Segments

g

≈

Personas


REALLY GETTING CUSTOMER SEGMENTS
(Key
Partners)

(Key
Activities)

(Key
Resources)

(Cost Structure)

(Value
(Customer

(Customer
Segments)

(Channels)

(Revenue Streams)




DESIGN THINKING

Empathy

Creativity

DESIGN THINKING- APPLICATIONS

ALEX COWAN!
AlexanderCowan.com"
@cowanSF

1

2

Urinate as they go

3

Edges preferred

4

Speedy

5

Empathy

Entry

PB > cheese
ALEX COWAN!
AlexanderCowan.com"
@cowanSF

Check & Repair

1

UV Validation

2

Relevant Placement

3

A Better Mouse Trap

4

Powered by Better Bait

5

Creativity

ALEX COWAN!
AlexanderCowan.com"
@cowanSF

DESIGN THINKING- PERSONAS

Personas

Problem Scenarios
Alternatives
Your Value Propositions

Foundation in
Design Thinking



ALEX COWAN!
AlexanderCowan.com"
@cowanSF

PROBLEM SCENARIO

X

ALTERNATIVE(S)

?

YOUR VALUE PROPOSITIONS

!

ALEX COWAN!
AlexanderCowan.com"
@cowanSF

YOUR PRODUCT HYPOTHESIS
A certain PERSONA exists…
… and they have a certain
PROBLEMS(S) …

X

… where they’re currently using
certain ALTERNATIVE(S) …

?

… and I have a VALUE
PROPOSITION that’s better
enough than the alternatives to
cause the persona to act
(purchase, use, etc.).

!

ALEX COWAN!
AlexanderCowan.com"
@cowanSF

ENABLE QUIZ: PROBLEM SCENARIOS
PERSONA

Helen the HR Manager

Frank the Functional Manager

“It’s hard for me to screen on
technical skill sets and I end up
sending Frank unqualiﬁed
recruits.”

“I have limited time and I don’t
want to be a jerk. It’s hard to
screen for all the relevant
technical skill sets.”

ALTERNATIVE(S)

- Call references"
- Take their word for it

- A few probing questions"
- Take their word for it

VALUE 
PROPOSITIONS

New ability for meaningful
screening of technical
candidates, increasing % of
successful hires and lowering
Frank’s workload on recruiting.

Less time doing interviews, and
better hires sooner.

X

PROBLEM 
SCENARIO

?
!


STORYBOARDING A PROBLEM SCENARIO
BEFORE

AFTER


EXERCISE- PERSONA CREATION
1. List at least 3 personas (5 min)
Mary the Working Mom
Susan the Stay-at-Home Mom
Douglas the Dad
Nathan the Nanny
…

ALEX COWAN!
AlexanderCowan.com"
@cowanSF

EXERCISE- PERSONA CREATION
1. Which are buyers? Users? Both? Note with a ‘B’ and/or ‘U’ on
the Post-It
2. Which have the most compelling need, desire? Sort top to
bottom
(4 min.)

ALEX COWAN!
AlexanderCowan.com"
@cowanSF

EXERCISE- VALUE PROPOSITIONS

X

1. Brainstorm Problem
Scenario-Alternative-Value
PROBLEM SCENARIO Proposition Trios.  
(7 min.)

?

ALTERNATIVE(S)

!

YOUR VALUE
PROPOSITIONS

Problem: Mary would like to be more
structured and consistent in her use of
allowances to teach the link between work
and ﬁnancial rewards.
Alternative: Track the completion of chores,
homework, etc. manually using paper, boards,
notes on her phone.
Value Proposition: Use our app to easily and
consistently implement best practices tailored
to your situation.

EXERCISE- MAPPING PERSONAS, VALUE PROP’S
1. Print out the Canvas !
2. List your prioritized personas
(Customer Segments) and
Value Propositions!
3. Map your personas to your
Value Propositions !
(3 min)

Activity_1
Activity_2
Activity_3

Proposition_1
Proposition_2
Proposition_3


Persona_1
Persona_2
Persona_3



EXERCISE: PEER PRESENTATIONS (2 MIN/EACH)

As
Presenter

PERSONAS & VALUE PROPOSITIONS!
1) Who is/are the top persona(s)?"
2) What’s cool about the value prop.?

As
Audience

- Focus on the process; avoid editorial"
- Ask a lot of questions"
- Think about it like an investor


Attention
 
I nterest
 
D esire
 
A  ction
O nboarding
R etention

How do they first
find out that you,
your proposition
exist? "
How do you break
through the noise
floor?


Attention
 
I nterest
 
D esire
 
A  ction
O nboarding
R etention

What is it that
engages them with
your proposition?
How will you
connect?


Attention
 
I nterest
 
D esire
 
A  ction
O nboarding
R etention

Are you connecting
with an important
problem scenario?
Is your VP better
enough than the
alternative?

Attention
 
I nterest
 
D esire
 
A  ction
O nboarding
R etention

What is absolute
minimum set of
actions required by
the customer to
have you deliver on
their problem?


Attention
 
I nterest
 
D esire
 
A  ction
O nboarding
R etention

How do they
become a regular,
habitual user? How
will you know if
that’s happening?


Attention
 
I nterest
 
D esire
 
A  ction
O nboarding
R etention

How do you
deepen their
involvement?
Investment? How
do you get them
talking about it?

STORYBOARDING AIDA(OR)


EXERCISE: AIDA STORYBOARD (10 MIN)

Using the
squares, create
a 6-panel
AIDA(OR)
storyboard  
(10 min)!
 

guideline: !
1 panel/item  
(A, I, D…)


EXERCISE- CUSTOMER RELATIONSHIPS

Customer
Relationships

GETTING STARTED!

1. Bounce off your take on AIDA(OR) "
2. Decouple any concierge/hand-holding actions you use for discovery
from your target steady state"
3. Variation by segment?"
4. How will you know if it’s working?

EXAMPLES!

‘dedicated personal service’ (onsite? offsite?) 
‘personal service’ 
‘phone support’ 
‘web/email based tickets’"
‘web self-help and forums’

(5 min)

EXERCISE- CHANNELS

Channels

GETTING STARTED!

1. Bounce off your take on AIDA(OR) "
2. Variation by segment?"
3. How will you know if it’s working?

EXAMPLES!

SALES"
hand sales (direct or indirect?)"
retail"
web"
phone"
delivery"

PROMOTION"
personal (direct vs. indirect?)"
specialty media"
television"
radio"
AdWords + SEO"

(5 min)


As
Presenter

RELATIONSHIPS & CHANNELS!
1) What’s the AIDAOR journey?"
2) How do the Relationships & Channels
work for that?

As
Audience



REVENUE STREAMS
Don’t overcomplicate it.!
"

When a plumber does
something, you pay them.!
"

If a sink garbage disposal lasts
twice as long, you’d pay more,
right?

ALEX COWAN!
AlexanderCowan.com"
@cowanSF

EXERCISE: SEGMENT TO VALPROP TO REVENUE
Partner_1
Partner_2
Partner_3

Activity_1
Activity_2
Activity_3

Proposition_1
Proposition_2
Proposition_3

Relationship_1
Relationship_2
Relationship_3

Resource_1
Resource_2
Resource_3

Cost_1
Cost_2
Cost_3


Segment_1
Segment_2
Segment_3

Channel_1
Channel_2
Channel_3

Revenue_1
Revenue_2
Revenue_3


(4 min)

3 BUSINESS MODEL TYPES
(Key
Partners)

(Key
Activities)

(Value
(Customer

(Customer
Segments)

1. INFRASTRUCTURE-DRIVEN
2. CUSTOMER SCOPE-DRIVEN
(Channels)
(Key
Resources)

3. PRODUCT-DRIVEN
(Cost Structure)

(Revenue Streams)




EXERCISE- KEY RESOURCES

Key
Resources

GETTING STARTED!

1. Bounce off your business type"
2. What is particular, strategic to your business model?"
3. How will you get it?

EXAMPLES!

‘proprietary software’"
‘expertise in [exotic technology]’"
‘channel or partner relationships’"
‘track record in [relevant topic]’"
‘investment in infrastructure’"
‘rapid prototyping and validation methodologies’

(5 min)

EXERCISE- KEY ACTIVITIES

Key
Activities

GETTING STARTED!

3. How will you do these things?"
4. Will partners be involved? Should they be?

EXAMPLES!

‘software product development’"
‘industry participation’"
‘direct sales’"
‘growth marketing online’ [SEO, web analytics..]"
‘process design and iteration’"
‘supplier management’, ‘supply chain management’

(5 min)

EXERCISE- KEY PARTNERSHIPS

Key
Partnerships

GETTING STARTED!

3. Are you comparatively good at it?"
4. Where will partners make the business bigger and more effective?

EXAMPLES!

‘direct sales partners’"
‘content creators’"
‘retail or distribution’"
‘creative agency’"
‘subcontractors’"
‘referral network’

(5 min)

COST STRUCTURE
Minimize: Obviously.!
"

Defer: MVP’s; don’t over invest
for the sake of creating ‘output’!
"

Link: To revenue as much as
possible (variable vs. ﬁxed).!
"

ALEX COWAN!
AlexanderCowan.com"
@cowanSF

PROFIT DRIVERS: EXAMPLE
Tighter Proposition (website, pres., etc.)
Ease of Entry
Revenue
Drivers

Finite Deliverables
Increased Use of Channels

Upsell

Profit
Drivers

Finite Cost

Cost of Sales

Easy to See What's on Menu
Less Consultative Selling
Simplified Contracting
Intellectual Property Multipliers

Cost
Drivers

Cost of Delivery

Tighter Talent Definition
Simpler Training, Eval., Promotion

Engagement
Management

Standard Project Management
Comparable Post Mortems
ALEX COWAN!
AlexanderCowan.com"
@cowanSF

COST STRUCTURE

Cost
Structure

GETTING STARTED!

1. How do you minimize? Use of partners? Off the shelf tech/
components?"
2. How do you defer against customer development milestones?"
3. How do you link to revenues?"
4. Which are fixed vs. variable? How do they related to revenues?

EXAMPLES!

‘fixed cost product development’"
‘fixed cost infrastructure investment’"
‘variable cost marketing or commissions’"
‘variable cost customer onboarding and support’"
‘variable cost inputs’

(5 min)

EXERCISE: COST STRUCTURE & LINKAGES
Partner_1
Partner_2
Partner_3

Activity_1
Activity_2
Activity_3

Proposition_1
Proposition_2
Proposition_3

Relationship_1
Relationship_2
Relationship_3

Resource_1
Resource_2
Resource_3

Cost_1
Cost_2
Cost_3


Segment_1
Segment_2
Segment_3

Channel_1
Channel_2
Channel_3

Revenue_1
Revenue_2
Revenue_3


(5 min)


As
Presenter

RELATIONSHIPS & CHANNELS!
1) What’s your business type
(infrastructure, scope, product)?"
2) What are the major cost drivers and
linkages? How do they tie to revenue?"
3) How do the key activities, resources,
and partnerships help that?

As
Audience



www.alexandercowan.com/sarta-business-model-canvas

www.alexandercowan.com/venture-design

www.alexandercowan.com/startup-sprints

@cowanSF

acowan@alexandercowan.com

SARTA: Business Model Canvas Workshop

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