Introduction to Lean Startup tools - Bank of Ireland
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The document provides a comprehensive overview of business model innovation, emphasizing tools like the Business Model Canvas and Minimum Viable Product (MVP) strategies. It discusses the importance of understanding customer needs, exploring business model patterns, and adapting to changing environments for long-term success. Key insights include recognizing the distinction between innovative products and innovative business models as the foundation for competitive advantage.
![What is a business model?
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Introduction to Lean Startup tools - Bank of Ireland
- 1. RAOMAL PERERA raomal@LeanDisruptor.com | @raomal @LeanDisruptor | www.facebook.com/LeanDisruptor INTRODUCTION TO BUSINESS MODEL INNOVATION #BMGEN
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- 6. 6 What is the 1 single most important thing you want to take away by the end of the day?
- 7. 7 • Business Model Canvas • Value Proposition Canvas (incl. Jobs to be Done) • Mapping the Environment • Business Model Patterns Lean Startup Tools
- 8. Introduction • Introduce yourself – name • 1 sentence on the problem/need that you help solve 8
- 10. Find the Gap How to find opportunities that others don’t see. - Amy Wilkinson 10
- 11. How breakthrough ideas emerge from small discoveries Creative thinkers practice a set of simple but ingenious experimental methods • failing quickly to learn fast • tapping into the genius of play • engaging in highly immersed observation Free their minds, opening them up to making unexpected connections and perceiving invaluable insights. 11
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- 14. What is a business model? Discuss with your neighbour what you think a business model is and write down your definition [the key elements] ..... 14
- 15. What is a business model? A business model describes the rationale of how an organisation Creates, Delivers and Captures value 15
- 16. Why we need a shared language for business models? 16 https://strategyzer.com/academy/cours e/business-models-that-work-and- value-propositions-that-sell/1/1 Note: You may need to license the online learning tool on Strategyzer to view this clip from Osterwalder
- 17. Use of BMC in Established Companies IMPROVE ----------------------------------INVENT Know Problem/Know Solution -Unknown Problem/Unknown Solution ------EXECUTE -------------------------SEARCH------------ 17
- 19. Problem/ Solution Fit Product/ Market Fit Scale The 3 Steps 19 19
- 20. 20 Knowledge is having the right answer. Intelligence is asking the right questions The Art of Customer Interviewing
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- 22. 22 Finding the Problem is the Hard Part – Kevin Systrom & Mike Krieger (Instagram Co_Founders) Instagram Co-Founder Kevin Systrom believes building solutions for most problems is the easy part; the hard part is finding the right problem to solve. Here he opens up about how he and fellow Co-Founder Mike Krieger identified the problems they wanted to solve around sharing photos through mobile devices. He also reminds entrepreneurs to embrace simple solutions, as they can often delight users and customers.
- 23. 23 MVP (MINIMUM VIABLE PRODUCT)
- 24. MVP A Minimum Viable Product (MVP) is “that product which has just those features and no more that allows you to ship a product that early adopters see and, at least some of whom resonate with, pay you money for, and start to give you feedback on” 24
- 25. MVP #1 Explainer video Explainer video is a short video that explains what your product does and why people should buy it. A simple, 90 seconds animation is sufficient. e.g. Dropbox How to make an explainer video 25
- 26. MVP #2 A Landing Place A landing page is a web page where visitors “land” after clicking a link from an ad, e-mail or another type of a campaign. 26
- 27. MVP #2 A Landing Page • Craft your Landing Page • Set up a Google AdWord campaign and drive traffic to your new landing page. Even here you can let the AdWord engine rotate different messages and test what works best on your prospects • Set up Google Analytics. The most important thing to measure is conversions – percent of visitors that sign up (or perform another desired action) • Set up a chat to make it easy for the visitors to raise questions • Set up a service like Qualaroo to survey your visitors 27
- 28. MVP #3 Wizard of Oz A “Wizard of Oz” MVP is when you put up a front that looks like a real working product, but you manually carry out product functions. It’s also known as “Flinstoning”. Zappos shoes is the biggest online shoe retailer, with annual sales exceeding $1 billion. In his Lean Startup book, Eric Ries describes how the founder started with a Wizard of Oz product. 28
- 29. MVP #4 The Concierge MVP Instead of providing a product, you start with a manual service. But not just any service! The service should consist of exactly the same steps people would go through with your product. 29
- 30. MVP #5 Piecemeal MVP This strategy is a blend between the “Wizard of Oz” and “Concierge” approaches. Again, you emulate the steps people would go through using your product – as you envision it. 30
- 31. MVP #5 Crowd Funding Sell it before you build it. The basic idea is simple: launch a crowd funding campaign on platforms such as Kickstarter or IndieGoGo. Not only will you validate if customers want to buy your product, but you will also raise money. 31
- 33. Today, a company’s long term competitive success depends upon its ability to create an innovative business model. 33
- 36. Tomorrow’s competitive advantage of companies will not be based on innovative products and processes, but on innovative business models. 36
- 37. 37 How can a sock become a business model innovation?
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- 39. Additional innovation potential through business model innovation Innovation potential Business model innovation Process innovation Product innovation/ Technology innovation Time New Business Models allow for additional innovation potential on top of product and process innovation 39
- 40. 40 “It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change.” - Charles Darwin
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- 42. Nespresso’s Business Model What is Nespresso’s Business Model? What made them so successful? 42
- 43. Getting started with the canvas 43
- 45. Group Exercise: 15 Mins Develop a BMC using an A1 canvas poster. 45
- 46. “Studies comparing successful and unsuccessful innovation have found that the primary discriminator was the degree to which the user needs were fully understood.” – David Garvin, Harvard Business School 46
- 47. #1 Target customer segment #2 Customer segment also overseas market new set of customers • Who are your most important customers? • What are their archetype? • What jobs do they want you to get done for them? Customer Segments 47
- 48. Customer Persona/Archetypes Profile • Position/Title • Age/Sex • Role • Discretionary budget • Motivations • Role models 48 •Who are you? •How do you buy? •What matters to you? •Who influences you?
- 49. Customer Archetypes Meet Paul, Sheetal and Barbara Paul-RegularExerciser • 20 – 45 • Aim to maintain and track active lifestyle • Looking for inspiration on diet & exercise regimes • Gets a buzz from exercising Sheetal-SpiritualHealth • • 30 – 55 • Already follows a healthy lifestyle • Interested in alternative medicines/ treatments • Believes eating well is as important as exercise Barbara-On-OffDieter • • 30 + • Yo-yo dieter, has tried many of the fad diets but never stuck to one • Needs tips and motivation to keep up a healthy lifestyle • Irregular or infrequent exerciser 49
- 50. Customer Types Saboteurs Intermediaries (OEM’s and resellers) 50
- 51. Q: Consider Selling Business Intelligence Software into a large business. Which types of customers are the following? 1. CFO 2. CIO 3. Report Users 4. Line of Business Management 5. Business Intelligence Group inside IT a. Economic byer b. Influencer c. Recommender d. Decision maker e. Saboteur 51
- 52. Q: Consider Selling Business Intelligence Software into a large business. Which types of customers are the following? 1. CFO 2. CIO 3. Report Users 4. Line of Business Management 5. Business Intelligence Group inside IT a. Economic byer b. Influencer c. Recommender d. Decision maker e. Saboteur 52
- 53. MULTI-SIDED MODEL Buyer/Payer (e.g. Google) Two sided markets – Buyers/Payees 1.Workers/Recruiters - LinkedIn 2.Banks/Merchants - Visa 3.Sellers/Buyers - eBay 4.Readers/Advertisers - New York Times Each has its own value proposition Each has its own revenue streams One segment cannot exist without the other 53
- 54. Corporate? Consumer? Business to Business (B to B) –Use or buy inside a company Business to Consumer (B to C) –Use or buy for themselves Business to Business to Consumer (B to B to C) –Sell a business to get to a consumer –Other Multi-sided Markets with multiple customers 54
- 55. © 2004 Valista Ltd. confidential information.55 top up my phone subscribe to a newspaper book a flight download a report book a hotel pay a bill cancel a check top-up kid’s phones vote online top-up my phone download a new game buy an MP3 download a voucher change my ringtone play the lottery check my phone credit 12 6 39 1 2 4 57 8 10 11 on the move at home at play at work premium services for subscribers about Valista
- 56. “No one cares how much you know, until they know how much you care” – Theodore Roosevelt EMPATHY MAPS 56
- 57. Value proposition • Which of our customer’s problems are we helping to solve? • Which Customer needs are we satisfying? • What are the key features of our product that match customers problem/need? What jobs do they want done , what's a good outcomes for them What are competitive options and how do I differentiate over others 57
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- 62. 62 The Business Model Canvas (BMC) helps you create value for your business The Value Proposition Canvas helps you create value for your customer
- 63. Zooming into the Value Proposition 63
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- 65. 65 Observe
- 66. Clayton Christensen 66 Jobs to be Done “If you understand the job, how to improve the product becomes just obvious”
- 67. Jobs To Be Done • Functional Job – Get a task done – e.g. business travel: accommodation, appointment, eat, sleep • Emotional Job – How the customer wants to feel – e.g. business travel: stay connected with home, stay safe • Social Job – How the customer wants to be perceived – e.g. business travel: look good with clients • Supporting Job – Purchasing and consuming value - e.g. business travel: reserve accommodation 67
- 68. Jobs To Be Done – Generic jobs • Search or seek information • Fix or repair something • Satisfy my emotional needs • Protect property or information • Achieve objective efficiently • Compare or evaluate alternative • Offer somebody else advice • Convey an image (of success) • Transfer ownership rights • Evaluate performance • Achieve main objective • Reduce stress 68
- 69. “People buy products and services to get jobs done. As people complete these jobs, they have certain measurable outcomes that they are attempting to achieve. It links a company's value creation activities to customer-defined metrics.” - Ulwick OUTCOME-DRIVEN INNOVATION 69
- 70. 70 Design
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- 78. © 2004 Valista Ltd. confidential information.78
- 79. “Studies comparing successful and unsuccessful innovation have found that the primary discriminator was the degree to which the user needs were fully understood.” – David Garvin, Harvard Business School 79
- 80. The Fit Between the Value Proposition and the Customer Profile for Hilti's Fleet Management Service 80 https://strategyzer.com/training/course s/business-models-that-work-and- value-propositions-that-sell/5/4/2 Note: You may need to license the online learning tool on Strategyzer to view this clip from Osterwalder
- 83. 15 Ways to use the Business Model Canvas 83 https://strategyzer.com/training/course s/business-models-that-work-and- value-propositions-that-sell/2/1/2 Note: You may need to license the online learning tool on Strategyzer to view this clip from Osterwalder
- 84. Prepare to cannibalize your Business Model 84 “if you don’t cannibalize yourself, someone else will. Don’t protect your products …. Protect the customer experience and your customer relationships” – Steve Jobs
- 85. “Pattern in architecture is the idea of capturing architectural design ideas as archetypical and reusable descriptions” – Christopher Alexander, Architect Patterns 85
- 86. Identified 55 Business Model patterns in the 5+ years of intensive research into detailed analysis of all major successful business model innovators in the last 50 years -University of St. Gallen 86
- 87. Pattern 39: Razor and Blade Apple iPod/iTunes (2003) Nestlé BabyNes (2012) Nestlé Special.Tea (2010) Hewlett- Packard (1984) Nestlé Nespresso (1986) Gillette (1904) Standard Oil Company (1880) The basic product is either cheap or give away for free. The consumables that are needed for it on the other hand are expensive or high margin. 87
- 88. Pattern 48: Subscription Next Issue Media (2011) Dollar Shave Club (2012) Jamba 2004 Spotify 2006 Netflix (1999) Salesforce (1999) The customer pays a regular fee, typically on a monthly or an annual basis, in order to gain access to a product or service. 88 Blacksocks (1999)
- 89. Lock- in Razor and blade Direct selling Gillette (1904) Nestlé Nespresso (1986) Nestlé Special Tea. (2011) Nestlé BabyNes (2012) Source: Gassmann, Frankenberger, Csik (2012), Aus alt mach neu, Harvard Business Manager, 2012 LeverageCombineTransfer 3 Strategies to generate new Business Model ideas: Transfer, Combine and Leverage 89
- 90. 90 3 Challenges in Business Model Innovation 1. Overcoming the dominant Industry logic 2. Thinking in Business Models and not in Technology and/or Products 3. Lack of Systematic Tools
- 91. 55 Business Paterns to Innovate your Business Model Confronting your business model with the 55 business model patterns bring you to novel business model ideas 91
- 92. 92 Successful business model innovation creates value for your customers and captures value for your company. Many business models fail to capture enough value.
- 93. Review –Great business models always outcompete great products and technologies –If you understand the job, how to improve the product becomes obvious –The BMC is a shared language for business modelling –Understanding the environment 93
- 94. raomal@LeanDisruptor.com | @raomal @LeanDisruptor | www.facebook.com/LeanDisruptor RAOMAL PERERA THANK YOU!
- 95. 95 APPENDIX
- 97. Additional Resources Books 97 Books: Key Strategy Tools – 80+ tools for every manager to build a winning strategy The Business Model Navigator – The 55 Models that will revolutionize your business – Gassmann, Frankenberger & Csik What Customers Want – Using Outcome- Driven Innovation to Create Breakthrough Products and Services – Ulwick
- 98. Additional Resources 98 BMC Online Tools: Strategyzer https://canvanizer.com/ (free tool) Stattys Notes; http://www.stattys.com/ - A new generation of adhesive notes with a unique "Write and Slide" function.
- 99. Additional Resources 99 Card decks: BMI Pattern Cards Mapping the Business Model Design Space Card Deck
- 100. 100 WORKSHOPS
- 101. Fund Raising for Entrepreneurs 101
- 102. Building Emotional Capital for Leadership 102
- 104. How to Build a Startup 104
- 105. raomal@LeanDisruptor.com | @raomal @LeanDisruptor | www.facebook.com/LeanDisruptor RAOMAL PERERA THANK YOU!