Business Models for Library Success
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Workshop delivered at Computers in Libraries 2015 (Washington, DC). Session Description: How can the popular tool from Business Model Generation be used to map library value? What insights or opportunities exist when we tweak one of the building blocks? This workshop helps to understand the interconnected parts of your organization and what can push people to think of different models that might be applied. Join our business thinking librarian and learn how to use business models that work for your community and create value propositions that you can sell to your stakeholders.
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Business Models for Library Success
- 1. BusinessModels forlibrary success M.J. D’Elia : University of Guelph Computers in Libraries 2015 : Washington, DC
- 2. Welcome
- 3. Agenda ๏ Business plans and models ๏ Business model canvas ๏ Customer profile map ๏ Value map ๏ Value propositions
- 4. Objectives ๏ Learn fundamentals of business model design ๏ Map different models for libraries ๏ Develop customer profiles ๏ Articulate a clear value proposition
- 6. Bad Business Planning built on assumptions (secondary data) assumptions considered “facts” “facts” are not challenged or altered > > >
- 7. Bad Business Planning plan becomes static (it is not rewritten) company- centric approach productivity is measured against plan > >
- 8. First contact “No plan survives first contact with its customers.” ~ Steve Blank
- 9. Business Model Approach built on assumptions (secondary data) assumptions considered “facts” “facts” are not challenged or altered > > > built on observation (primary data) assumptions are acknowledged assumptions altered based on new learning > > >
- 10. Business Model Approach plan becomes static (it is not rewritten) company- centric approach productivity is measured against plan > > model continues to be rewritten (dynamic) customer- centric approach productivity is measured by performance > >
- 11. BusinessModels
- 18. BuildingBlocks
- 20. Customer segments “...defines the different groups of people or organizations an enterprise aims to reach and serve.” ~BMG, p. 20
- 21. Customer segments: Questions ๏ For whom does the library create value? ๏ Who are the most important customers/users?
- 23. Value proposition “...describes the bundle of products and services that create value for a specific customer segment.” ~BMG, p. 22
- 24. Value proposition: Questions ๏ What value does the idea deliver? ๏ Which problem is being solved? ๏ Which needs will be satisfied? ๏ What bundles of products/services are offered to each customer segment?
- 25. Channels
- 26. Channels “...describes how a company communicates with and reaches its customer segments to deliver a value proposition.” ~BMG, p. 26
- 27. Channels: Questions ๏ How do the segments want to be reached? ๏ How are they reached now? ๏ How is the library integrating with customer routines?
- 29. Customer relationships “...describes the types of relationships a company establishes with specific customer segments.” ~BMG, p. 28
- 30. Customer relationships: Questions ๏ What type of relationship does each segment expect? ๏ Which relationships have been established? ๏ How are they integrated with the rest of the model?
- 31. Revenue
- 32. Revenue streams “...represents the cash a company generates from each customer segment (costs must be subtracted from revenues to create earnings).” ~BMG, p. 30
- 33. Revenue streams: Questions ๏ For what value are customers willing to pay? ๏ For what do they currently pay? ๏ How are they currently paying? ๏ How much does each revenue stream contribute to overall revenue?
- 34. Key Resources
- 35. Key resources “...the most important assets required to make the business model work.” ~BMG, p. 34
- 36. Key resources: Questions ๏ What key resources do your value propositions require? ๏ distribution channels? ๏ customer relationships? ๏ revenue streams?
- 37. Key Activities
- 38. Key activities “...describes the most important things a company must do to make its business model work.” ~BMG, p. 36
- 39. Key activities: Questions ๏ What key activities do your value propositions require? ๏ distribution channels? ๏ customer relationships? ๏ revenue streams?
- 40. Key Partners
- 41. Key partners “...describes the network of suppliers and partners that make the business model work.” ~BMG, p. 38
- 42. Key partners: Questions ๏ Who are the key partners? ๏ Who are the key suppliers? ๏ Which key resources do you need from someone else? ๏ Which key activities do partners perform?
- 43. Cost
- 44. Cost “...describes all costs incurred to operate the business model.” ~BMG, p. 40
- 45. Cost: Questions ๏ What are the most important costs inherent in our business model? ๏ Which key resources are most expensive? ๏ Which key activities are most expensive?
- 46. Review
- 47. Business Model Canvas 101 ๏ Start with the customer segments ๏ Create different value props for each segment ๏ Changes to one section affect other sections ๏ Cost and revenue balance on the value prop
- 51. Jobs “Jobs describe the things your customers are trying to get done in their work or in their life.” ~VPD
- 52. Jobs: Questions ๏ What is your customer trying to accomplish? ๏ What tasks do they need to perform at work or at home? ๏ What is one thing that your customer absolutely needs to accomplish?
- 53. Pains “Pains describe anything that annoys your customers before, during, and after trying to get a job done or simply prevents them from getting a job done.” ~VPD
- 54. Pains: Questions ๏ What are your customers frustrations and annoyances? ๏ What keeps them up at night? What are their big fears? ๏ What takes them too much time? costs too much money? requires too much effort?
- 55. Gains Gains describe the outcomes and benefits your customers want.” ~VPD
- 56. Gains: Questions ๏ Which savings would make your customers happy? In terms of time, money or effort. ๏ What would make your customers’ lives easier? ๏ What do they dream about? Aspire to be?
- 57. ValueMap
- 59. Pain relievers “Pain relievers describe how exactly your products and services alleviate specific customer pains.” ~VPD
- 60. Pain relievers: Questions ๏ What could you do to produce savings? ๏ What might make customers feel better? ๏ What could you do to solve under-performing solutions?
- 61. Gain creators Gain creators describe how you intend to produce outcomes and benefits that your customer expects and wants. ~VPD
- 62. Gain creators: Questions ๏ What could you do to exceed customer expectations? ๏ How can you help your customers look good? ๏ What desires can you fulfill for them?
- 63. challenge Draft a clear value proposition
- 64. Value Prop: Ad-Libs ๏ Use the “fill-in-the-blanks” worksheet provided ๏ Borrow from your customer profile map and value map
- 65. wrap
- 67. two Business models depend on clearly stated value propositions
- 68. three Business models are dynamic - changes are expected
- 69. four Business models track assumptions that require validation
- 70. five Business models align resources to meet customer need
- 71. References
- 72. References Blank, S. & Dorf, B. (2012). The Startup Owner’s Manual. Pescadero, CA: K&S Ranch. Osterwalder, A. & Pigneur, Y. (2010). Business model generation. Hoboken, NJ: Wiley. Osterwalder, A., Pigneur, Y., Bernarda, G. & Smith, A. (2014). Value proposition design. Hoboken, NJ: Wiley. Ries, E. (2011). The Lean Startup. New York: Crown Business. Icons by: Maxim Basinski (aka vasabii) via Creative Market
- 73. BusinessModelsfor librarysuccess M.J. D’Elia Computers in Libraries 2015 : Washington, DC mdelia@uoguelph.ca @mjdelia