Date post: | 10-Feb-2017 |
Category: |
Design |
Upload: | khaya-mtshali |
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Village offers design thinking & strategic design services to help you transform
complexity into unique opportunities for innovation and change.
design. innovation. change
- Charles Spurgeon
The way to do a great deal is to keep on doing a little. The way to do nothing at all is to be continually resolving that
you will do everything ”
image source: http://www.economist.com/news/essays/21676961-inner-lives-animals-are-hard-study-there-evidence-they-may-be-lot-richer-science-once-thought
Design Thinking is a way of applying design methods to problem solving and innovationThere are many models and versions of “the design process”
desirabilityhuman
viabilitybusiness
feasibilitytechnicalinnovation
Source: Tim Brown, Change By Design
01 Customers
03 Infrastructure
04 Financial Viability
02 Offer
Business Model Design Logic
Source: Alex Osterwalder & Yves Pigneur, Business Model Generation
01 Customers
03 Infrastructure
04 Financial Viability
02 Offer
Business Model Design Logic
Cost Structure
C$Key Resources
KR
Key Partnerships
KPKey Activities
KA
Revenue Streams
R$
Value Proposition
VP
Customer Channels
CC
Customer Relationships
CRCustomer Segments
CS
Source: Alex Osterwalder & Yves Pigneur, Business Model Generation
C$
KR
KP KA
R$
VP
CC
CR CS
Example: Apple iPod
seamless music experience
hardware design
marketing
people
record companies
manufacturers
content &
agreements
apple brand
iTunes Software
iPod hardware
lovemark
switching costs
retail stores
apple stores
iTunes store
apple.com
mass market
hardware
revenues
music revenuesmarketing
& sales
manufacturing
people
Source: Alex Osterwalder & Yves Pigneur, Business Model Generation
Value Proposition
VP
The Offering / Value Proposition• What value do we deliver to
customers
• Which of our customers
problems do we solve
• Which bundles of products/
services are we offering to
different customer segments
A. Performance of product/service
B. Newness
C. Customisation and co-creation
D. Getting the job done
E. Design
F. Brand/status
G. Better pricing
H. Cost reduction
I. Risk reduction
J. Accessibility (e.g. fractional ownership
etc.)
K. Convenience/usability
Key Resources
KR
Key Partnerships
KPKey Activities
KA
Infrastructure: Feasibility
• The network of suppliers and
partners that will make the
business model work
• The most important assets to
create value, reach customers,
and earn revenue
• What must the company do
deliver value and operate
successfully
Source: Alex Osterwalder & Yves Pigneur, Business Model Generation
Customer Channels
CC
Customer Relationships
CRCustomer Segments
CS
Customers: Desirability• The types of relationships or
service that will drive
acquisition, retention, and sales
A. Personal assistance
B. Dedicated personal assistance
C. Self-service
D. Automated service
E. Community of interest
F. Co-creation
G. Direct sales force
H. Direct web sales
I. Own stores
J. Partner stores
K. Wholesaler
Relationship Types Channel Types
• How you communicate and
reach customers with value
proposition
• For who are you creating value
Cost Structure
C$Revenue Streams
R$
Finances: Viability
• What you capture from delivering
value to customers
• Can be one-time or recurring
sources
• Fixed pricing or Dynamic pricing
• What it costs to operate the
business model
• Cost driven to minimise costs
• Value driven to maximise value
Source: Alex Osterwalder & Yves Pigneur, Business Model Generation
Cost Structure
C$Key Resources
KR
Key Partnerships
KPKey Activities
KA
Revenue Streams
R$
Value Proposition
VP
Customer Channels
CC
Customer Relationships
CRCustomer Segments
CS
Efficiency Value
- Steve Blank & Bob Dorf
A startup is a temporary organisation designed to
search for a repeatable and scalable business model
”
Customer Discovery
Customer Validation
Customer Creation
Company Building
Source: Steve Blank & Bob Dorf, Startup Owner’s Manual
Search Execute
Customer Discovery
• The beginning of a learning process
• Founders develop a vision, then find customers for that vision
• Get out of the building, talk to customers
• Try to learn in depth about their problem
• Learn what your customers care about
• Create low fi of minimum viable product
• Test customer reactions to slowly turn business model hypothesis into fact
• Learn how customers make buying decisions
• Customer discovery is complete when customers positively confirm the
importance of the problem and the solution
01 Customers
03 Infrastructure
04 Financial Viability
02 Offer
Business Model Design Logic
Cost Structure
C$Key Resources
KR
Key Partnerships
KPKey Activities
KA
Revenue Streams
R$
Value Proposition
VP
Customer Channels
CC
Customer Relationships
CRCustomer Segments
CS
Source: Alex Osterwalder & Yves Pigneur, Business Model Generation
Founder’s Vision the best coffee shop in town
Value Proposition
VP
image source: https://stocksnap.io/photo/3QX7WQCK52
Learn about your customers know what they care about
Value Proposition
VPCustomer Segments
CS
image source: http://www.shutterstock.com/pic-385284079/stock-photo-coffee-tasting-with-baristas-smelling-the-aroma-of-many-cups.html
Minimum Viable Product: coffee in a cup
Key Resources
KR
Key Activities
KAValue Proposition
VPKey Partnerships
KP
image source: http://www.gettyimages.com/photos/cup?sort=mostpopular&excludenudity=true&mediatype=photography&phrase=cup
Customer Validation
• Test ability to repeat and scale with more customers
• Create high fidelity minimum viable product
• Test sales with paying customers or user engagement
• Prove that the market and customers exist with serious intent to purchase
• Verify core product features
• Test perceived value and demand for product
• Identify economic buyer
• Establish sales, pricing, and channel strategies
• Customer validation is complete when enough customers, with repeatable
and scalable sales, make the business model profitable
High Fidelity MVP: build on the core
Key Resources
KR
Key Activities
KAValue Proposition
VPCustomer Segments
CSKey Partnerships
KP
Cost Structure
C$
image source: https://www.pexels.com/photo/restaurant-coffee-cup-cappuccino-2709/
Verify core features focus on what matters most
Key Resources
KR
Key Activities
KAValue Proposition
VPCustomer Segments
CS
image source: http://www.eater.com/2016/3/13/11214194/how-to-taste-coffee
Establish Sales pricing, channels, cycles etc
Key Activities
KAValue Proposition
VP
Customer Channels
CC
Revenue Streams
R$Cost Structure
C$
Customer Relationships
CR
image source: http://www.businessinsider.co.id/starbucks-ex-manager-describes-chaotic-working-conditions-2015-10/#ouZldGPFaP1GwIsy.97
Customer Creation
• The beginning of execution
• Build on initial sales success
• Step on the gas and drive scale
• Get serious about marketing activity: spend
• Drive demand into sales channel to scale the business
Drive Sales spend on marketing to drive demand
Customer Channels
CC
Key Activities
KAValue Proposition
VP
Key Resources
KR
Revenue Streams
R$
Customer Relationships
CRCustomer Segments
CS
Cost Structure
C$
Key Partnerships
KP
image source: http://uiconstock.com/30-flyers-designers/free-coffee-shop-a4-flyer-preview-1/
Company Building
• When you know who your customers are
• You know what value to deliver to them
• The startup has found a predictable, repeatable, scalable business
• Begin transition from startup to company
• Set up structured departments to execute what has been validated in
previous phases
• Hire people with clearly defined roles
Deliver, Scale, Repeat but don’t forget to keep on learning
Cost Structure
C$Key Resources
KR
Key Partnerships
KPKey Activities
KA
Revenue Streams
R$
Value Proposition
VP
Customer Channels
CC
Customer Relationships
CRCustomer Segments
CS
image source: http://capturedmarin.com/
Customer Discovery
Customer Validation
Customer Creation
Company Building
Take founder’s vision and turn it into a Business Model hypothesis
Test business model for repeatability and scalability
Build and drive user demand
Scale and repeat the validated model
Source: Steve Blank & Bob Dorf, Startup Owner’s Manual
- Charles Spurgeon
The way to do a great deal is to keep on doing a little. The way to do nothing at all is to be continually resolving that
you will do everything ”