The business model canvas brings agility into business planning. It have never been easier (or more fun) to judge between death or glory.
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Like its agile cousins, Business Model Generation works at its best when a cross-functional team populates the canvas on a white board, flip chart or similar. As the business model grows ahead visually, it become obvious how its different parts depend on each other. Even a brilliant idea needs a smart payment solution, effective sales channels and an appropriate price, to attract today's "spoiled" customers.
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The business model canvas brings agility into business planning. It have never been easier (or more fun) to judge between death or glory.
- 1. Business model generation Facilitation Guide Ver 1.0 www.softhouse.se
- 2. I-DO-A-R-R-T Intention: Use the business model generation techniques in order to be able to validate business viability. Desired Outcome: A business model canvas visualized with post-its on a flip chart and a validation test. Agenda: Session I: Populating the canvas Session 2: Assessing your business model Session 3: Creating a validation test Roles: Facilitator/sensei, decision maker, doers, opiniated people Rules: No laptops, no phones, parking lot area for questions of topic, respect the timebox Time: 4 hrs, 09.00-13.00 <datemonthyear, location>
- 3. Business model canvas…. … is a one-pager for business model generation and validation. A business model describes the basics of how to create and deliver value at a profit. http://www.youtube.com/watch?v=QoAOzMTLP5sBusiness model generation tutorial:
- 4. Pre-condition In order to have a productive session; start with an elevator pitch (or similar). Pinpointing value proposition for a customer segment. http://torgronsund.com/201 1/11/29/7-proven- templates-for-creating- value-propositions-that- work Additional value proposition formats:
- 5. Session 1: Populating the canvas • Customer segments • Value proposition • Channels • Customer relationships • Revenue streams • Key activities • Key resources • Key partners • Cost structures Session 1 is about populating the canvas based upon already produced value proposition and customer segment. During this first session it is common to have to adjust both initial value proposition and customer segment due to the learnings that arise when additional information is visualized. Feel free to add multiple customer segments and value proposition if needed, separated with different colored post-its.
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- 24. Session 2: Assessing your business model • Once the canvas is populated and hence already adjusted many times already. • It is time to look at your business model from yet another angle, to assess the viability. • Walk through the assessment • You will probably have to adapt your model or else realize that this idea will never fly
- 25. Session 2: Assessing your business model 1. Is it difficult for customers to switch to a competitor? 2. Do you have recurring revenue? 3. Do you have income before you have expenditures? 4. Is your cost side a game-changer? 5. Do you have others working for you for free? 6. How scalable is your business model? 7. Does your business model protect you from competitors? – How easy is it for someone to copy and catch up? • Assess your business model against the questions below. • Learn and adapt
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- 27. Session 3: Creating a validation test • When your business model have passed the assessment, then it is time for validation. • Create a validation test and start asking for customer feedback • The validation testing will normally require several test cycles with new learnings and business model adaptation in between. This takes place after the workshop.
- 28. Session 3: Creating a validation test Test name: 1. Hypothesis: 2. Test: 3. Metric: 4. Criteria: Subscription is king We believe that we will earn 0.1 million $ a year To verify that, we will sell subscriptions for 3 months And measure how many subscriptions we sold We were right if we sold more than 100 subscriptions
- 29. Validation test cycle Customer Feedback Business Model Validation Test • Run the validation test in accordance with your test hypothesis • Learn and adjust your business model. • It is perfectly normal to fail - keep going until business viability is proven and your business model is validated
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- 31. How to plan and execute Make sure there is an elevator pitch (or similar) available as input. For complex products/services, think about having user personas and/or a customer life cycle/journey made beforehand for additional input. If you are a large group (more than 7) – go for a multi team approach and create multiple business model which are merged in two steps; after completing the revenue stream and after completing the cost structure. Sometimes your business model will include multiple customer segments, each with their own value proposition and channels. Keep them apart by using different colored post-its. Validation means that your business model have been proven to work in accordance with your validation test – it is of great importance to create a relevant validation test. Remember! A workshop is a workout: "You've got big dreams? You want fame? Well, fame costs. And right here is where you start paying ... in sweat.“ (Lydia Grant, Fame)