Agile Australia 2014 | A light saber for your disruptive tool belt: the Business Model Canvas by...

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This session introduces you to the Business Model Canvas: a shared visual language that allows you to use nine basic building blocks to describe and design any business model. Pete shows how the Business Model Canvas is a useful tool for the entire team to achieve goals within the context of an overall vision. You will walk away knowing how to use the Business Model Canvas to map a business model and how it can be used as a tool to support genuine disruption and incremental innovation. You will also explore Lean Canvas, a variation of the model for entrepreneurs.

Transcript of Agile Australia 2014 | A light saber for your disruptive tool belt: the Business Model Canvas by...

The Business Model

CanvasA light saber for your disruptive tool

belt

Pete Cohen

17 June 2014

Two business analysts walk into a bar…

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www.businessmodelgeneration.com

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Agenda for today

• Why use it?

• Step through the 9 building blocks

of the business model canvas

• Explore a case study - Uber

• Look at some other canvases

including the Lean Canvas

Why use the Business Model Canvas?

A great tool for agile practitioners

• A visual information radiator

• Fosters collaboration

• Encourages holistic thinking

A secret weapon for consulting

• Build context very quickly

Essential for entrepreneurs

“I believe that the life of any

startup can be divided into two

parts:

before product/market fit and

after product/market fit.”- Marc Andreessen

(founder of Netscape)

Essential for intrapreneurs

“...companies …can create massive growth by combining difficult to

replicate assets with entrepreneurial behaviors.”

“A large company can never innovate faster than the market.

But it can innovate better than the market.”

- Scott Anthony(Innosight)

Simple but powerful

• Lightweight – not a hefty document

• Deliberately constrained to avoid

too much detail

• Accessible and portable

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Customer Segments

• Add text here

Who are we creating value for?

Value Proposition

• Add text hereWhat value do we

deliver?

What problem are we solving?

Channels

• Add text here

How do we reach our

customers?

• Add text here

Customer Relationships

What type of relationship does each of our Customer

Segments expect?

How costly are they?

• Add text here

Revenue Streams

What do our customers pay for?

How do they pay?

• Add text here

Key Resources

What key

resources do we require

to deliver value?

• Add text here

Key Activities

What key

activities are done

to deliver value?

• Add text here

Key Partners

Who are our key partners?

• Add text here

Cost Structure

What are our key costs?

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Product Market

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Optimise and accelerate

Learn and pivot

Key Partners

Key Activities

Value Propositions

Customer Relationships

Customer Segments

Key Resources

Channels

Cost Structure Revenue Streams

Wealthy, young people

Exclusive transport at an

affordable priceConvenien

ceOn demand availabil

ityCertainty

Key Partners

Key Activities

Value Propositions

Customer Relationships

Customer Segments

Key Resources

Channels

Cost Structure Revenue Streams

Wealthy, young people

Exclusive transport at an

affordable priceConvenien

ceOn demand availabil

ityCertainty

Social media

Key Partners

Key Activities

Value Propositions

Customer Relationships

Customer Segments

Key Resources

Channels

Cost Structure Revenue Streams

Wealthy, young people

Exclusive transport at an

affordable priceConvenien

ceOn demand availabil

ity

Good service

Certainty

Social media

Trust

Key Partners

Key Activities

Value Propositions

Customer Relationships

Customer Segments

Key Resources

Channels

Cost Structure Revenue Streams

Wealthy, young people

Exclusive transport at an

affordable priceConvenien

ce

Existing drivers

of private transport vehicles

Social media

On demand availabil

ity

Good service

Certainty

Trust

Key Partners

Key Activities

Value Propositions

Customer Relationships

Customer Segments

Key Resources

Channels

Cost Structure Revenue Streams

Wealthy, young people

Exclusive transport at an

affordable priceConvenien

ce

Existing drivers

of private transport vehicles

Social media

On demand availabil

ity

Good service

Certainty

A way to use

‘slack’ resources

Trust

Key Partners

Key Activities

Value Propositions

Customer Relationships

Customer Segments

Key Resources

Channels

Cost Structure Revenue Streams

Wealthy, young people

Exclusive transport at an

affordable priceConvenien

ce

Existing drivers

of private transport vehicles

Social media

On demand availabil

ity

Good service

Certainty

A way to use

‘slack’ resources

Trust

Key Partners

Key Activities

Value Propositions

Customer Relationships

Customer Segments

Key Resources

Channels

Cost Structure Revenue Streams

Wealthy, young people

Exclusive transport at an

affordable priceConvenien

ce

Existing drivers

of private transport vehicles

Social media

On demand availabil

ity

Good service

Certainty Regular people with a car who are

willing to drive

A way to use

‘slack’ resources

Trust

Key Partners

Key Activities

Value Propositions

Customer Relationships

Customer Segments

Key Resources

Channels

Cost Structure Revenue Streams

Wealthy, young people

Exclusive transport at an

affordable priceConvenien

ce

Existing drivers

of private transport vehicles

Social media

On demand availabil

ity

Good service

Certainty Regular people with a car who are

willing to drive

A way to use

‘slack’ resources

Direct

Trust

Key Partners

Key Activities

Value Propositions

Customer Relationships

Customer Segments

Key Resources

Channels

Cost Structure Revenue Streams

Wealthy, young people

Exclusive transport at an

affordable priceConvenien

ce

Existing drivers

of private transport vehicles

Social media

On demand availabil

ity

Good service

Certainty Regular people with a car who are

willing to drive

A way to use

‘slack’ resources

Direct

No commitmen

t

Trust

Key Partners

Key Activities

Value Propositions

Customer Relationships

Customer Segments

Key Resources

Channels

Cost Structure Revenue Streams

Wealthy, young people

Exclusive transport at an

affordable priceConvenien

ce

Existing drivers

of private transport vehicles

Social media

On demand availabil

ity

Good service

Certainty Regular people with a car who are

willing to drive

A way to use

‘slack’ resources

Direct

No commitmen

t

Surge pricing% of

fares

Trust

Key Partners

Key Activities

Value Propositions

Customer Relationships

Customer Segments

Key Resources

Channels

Cost Structure Revenue Streams

Wealthy, young people

Exclusive transport at an

affordable priceConvenien

ce

Existing drivers

of private transport vehicles

Social media

On demand availabil

ity

Good service

Certainty Regular people with a car who are

willing to drive

A way to use

‘slack’ resources

Direct

No commitmen

t

Surge pricing% of

fares

Defending the

company from “anti-

capitalist taxi

protectionism”

Trust

Key Partners

Key Activities

Value Propositions

Customer Relationships

Customer Segments

Key Resources

Channels

Cost Structure Revenue Streams

Wealthy, young people

Exclusive transport at an

affordable priceConvenien

ce

Existing drivers

of private transport vehicles

A way to use

‘slack’ resources

Social media

On demand availabil

ityDirect

No commitmen

t

Incentives

Surge pricing

Defending the

company from “anti-

capitalist taxi

protectionism”Software dev

Hiring

Operations staff

Communitystaff

Good service

Drivers

NFL

AMEX

% of fares

Certainty Regular people with a car who are

willing to drive

Wages

National Cat Day

Trust

Key Partners

Key Activities

Value Propositions

Customer Relationships

Customer Segments

Key Resources

Channels

Cost Structure Revenue Streams

Business people

Taxi license $

$

Convenient

transportIndividua

ls/families

Vehicle

Fuel

Maintenance

Booking service fee

License

Wages

Fares

Booking service

Driving

Drivers

National Cat Day

Key Partners

Key Activities

Value Propositions

Customer Relationships

Customer Segments

Key Resources

Channels

Cost Structure Revenue Streams

Wealthy, young people

Exclusive transport at an

affordable priceConvenien

ce

Existing drivers

of private transport vehicles

A way to use

‘slack’ resources

Social media

On demand availabil

ityDirect

No commitmen

t

Incentives

Surge pricing

Defending the

company from “anti-

capitalist taxi

protectionism”Software dev

Hiring

Operations staff

Communitystaff

Good service

Drivers

NFL

AMEX

% of fares

Certainty Regular people with a car who are

willing to drive

Wages

Bad press

Trust

Criticisms and shortcomings of the business model canvas?

Criticisms and shortcomings

• Where do we capture the other

stuff that comes up in

conversation?

• Competitors

• Where is the detail?

• Work within the constraints – they are

there for a reason

A canvas for every occasion…

Creative Commons

Share - copy and redistribute the material in any medium or format.

Adapt - remix, transform, and build upon the Material for any purpose, even commercially.

Social Enterprise Canvas

Key Resistanc

es

Enterprise

StructureOpportunity as

Hypothesis

Intended Social Impact

Unintended

Consequences

The Experience Canvas

The Lean Canvas

The Lean Canvas

“My main objective with Lean

Canvas was making it as

actionable as possible while

staying entrepreneur-

focused”- Ash Maurya

(Creator of the Lean Canvas)

Test the ‘hypothesis layer’ using

empirical techniques

Problem Solution Unique Value

Proposition

Unfair Advantage

Customer Segments

Key Metrics Channels

Cost Structure Revenue Streams

How are you going to use it?

Adopting the tool

• At the beginning of your next

project

• Get aligned

• As part of your current project or

product development

• A great way to bring new team

members up to speed

Get a free A0 poster of the Business Model Canvas from the DiUS coffee cart!

www.businessmodelgeneration.comwww.leanstack.com

www.dius.com.au

Pete Cohenpcohen@dius.com.au

@petecohen