187
concept development workshop vichealth innovation challenge: alcohol
| Date post: | 17-Jul-2015 |
| Category: |
Government & Nonprofit |
| Upload: | doing-something-good |
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concept development workshop
vichealth innovation challenge: alcohol
welcome
join the conversa1on on twi2er with @VicHealth
@DoingSomeGood #VHinnov
DAVID HOOD @DavidAHood
JULIAN WATERS-‐LYNCH @jwaterslynch
doing something
good
SCHEDULEmorning a(ernoon
9:00 AM Welcome & Check-‐in 1:05 PM BMC #6: Key Resources &BMC #7: Key Ac@vi@es
9:20 AM What makes a good idea? 1:45 PM BMC #8: Key Partnerships &BMC #9: Cost Structure
9:45 AM Intro to Business Models &Business Model Canvas
2:15 PM Social Impact Metrics
10:10 AM BMC #1: Customer Segments 2:30 PM Lean Experiments
10:35 AM MORNING TEA 3:00 PM Preparing for the Panel
10:55 AM BMC #2: Value Proposi@ons &BMC #3: Channels
3:25 PM Wrap Up & What’s Next
11:45 AM BMC #4: Customer Rela@onships &BMC #5: Revenue Streams
3:30 PM CLOSE
12:35 PM LUNCH
purpose1. for you to leave with a first go of your Business Model
Canvas in hand
> final version to be submiGed to VicHealth by …
2. ideas and insights in to how you can test and improve your concept
3. ideas and insights in to how you can prepare for you panel interview 12 January
People don’t buy what you do they buy why you do it. ~ Simon Sinek
check in
check in
CHECK IN1.What was the most useful or interesRng aspect of:
1.1. Simon Sinek’s TEDTalk on why we should “start with why”?
1.2.the Strategyzer series of videos on the Business Model Canvas?
1.3.the Drinking Related Lifestyles research summary?
CHECK IN2. Out of what was covered in the pre-‐workshop content,
what, if anything, would you like to spend more Rme on today?
CHECK IN3. What’s one other thing you’d like to leave here with
today?
“If I had an hour to solve a problem I would spend 55 minutes thinking about the problem and five minutes thinking about solu?ons.”
human-centred
design
http://www.nitibhan.com/2013/01/reflections-on-design-thinking-for.html
the five phases of design thinking
http://thinkingofdesign.blogspot.com.au/
"Lean Startup" is a system for developing a business, product or service in the most efficient way possible to reduce the risk of failure. It is an approach that treats all ideas as having assumpRons (or hypotheses) that must be validated by rapid experimentaRon in the marketplace. The approach relies on scienRfic experimentaRon, iteraRve product releases, and customers feedback to generate validated learning.
The key is to idenRfy assumpRons -‐ would people actually buy or do this? Not by building the whole product, but by building a Minimum Viable Product (MVP).
The MVP is the most basic version of your product that is valuable to your user, that will enable you to test and learn.
shaping great ideasStart with
why Why are you doing this? What is the situaRon you want to change or the problem you’re trying to solve? Why is it important? What might the situaRon look like if you’re successful? Why do you believe it’s possible?
Build your understanding of the context 1 What do we know about the current situaRon? What is its impact on
individuals, society and the planet? Who does it effect most? What are the possible causes?
Iden@fy your target audience
Who is your target audience? Who are you solving this problem for? Of them, who is looking for a soluRon? Who believes that another way, a new way, is possible? Be specific. Go beyond demographics.
Get to know your target audience
3 Seek to understand the values and needs of your target audience so you can design the best soluRon for them. What are their aspiraRons? What moRvates them? Develop user personas and user journeys to provide valuable insights.
Iden@fy the problem you are solving
How does your idea help your target audience to get what they need or what they value? How does it help them to overcome challenges and barriers?
Prototype and test ideas
Gain insights into customers’ needs by designing and deploying the smallest amount of funcRonality possible (AKA your minimum viable product/service). Evolve the soluRon based on insights provided by engaged early adopters.
1
2
3
4
5
6
People don’t buy what you do they buy why you do it. ~ Simon Sinek
‣ why: belief, moRvaRon or purpose
‣ how: experience or process ‣ what: details of product of service
Excessive alcohol consump?on creates mul?ple social and health problems for individuals and society, and is one of the top 10 avoidable causes of disease and death in Victoria.
The social cost of alcohol-‐related harm in 2007–08 in Victoria was $4.3 billion. This includes direct costs associated with, for example, road accidents, health care, crime and violence, and indirect costs such as loss of workforce labour and for educa?on and research resources.
While most of us (78% of Australians) agree that we have a problem with alcohol, only 25% of drinkers believe that their drinking behaviour is cause for concern.
People don’t buy what you do they buy why you do it. ~ Simon Sinek
‣ why: belief, moRvaRon or purpose
‣ how: experience or process ‣ what: details of product of service
Excessive alcohol consump?on creates mul?ple social and health problems for individuals and society, and is one of the top 10 avoidable causes of disease and death in Victoria.
The social cost of alcohol-‐related harm in 2007–08 in Victoria was $4.3 billion. This includes direct costs associated with, for example, road accidents, health care, crime and violence, and indirect costs such as loss of workforce labour and for educa?on and research resources.
While most of us (78% of Australians) agree that we have a problem with alcohol, only 25% of drinkers believe that their drinking behaviour is cause for concern.
Historical*consump/on*data*
0"
2"
4"
6"
8"
10"
12"
14"Alcohol" Spirits"
Wine" Beer"
Consumption
Risky drinking by young adults
0
10
20
30
40
50
60
2001 2004 2007 2010 2013
18-24 year olds 25-29 year olds
Consumption
But...
0
10
20
30
40
50
60
2001 2004 2007 2010 2013
18-24 year olds 25-29 year olds 40-49 year olds 50-59 year olds 60-69 year olds
Harm trends
Generally increasing harm rates over the past decade (although road injuries and deaths are steady)
0
10
20
30
40
50
60
70
2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13
Hospital admissions Ambulance attendances Treatment episodes
Assault Family incidents Emergency Department
Conclusions
Victorian and Australian alcohol trend data provides a confusing picture:
- Reasonable evidence of harm increases– Generally stable levels of consumption, which obscure:
• Major reductions in teenage drinking• Declines in risky drinking, particularly among young adults• Some slight increases in drinking among older people
– Big shifts in attitudes towards alcohol
Little evidence to explain these changes– Increased public health presence in media coverage of
alcohol may be driving or reflecting changes in public attitudes
who is your target audience?Not everyone is your target audience.
In a world where there is compeRRon for the Rme, aGenRon and money of the people you are seeking to engage, you need to make sure you know exactly who you are developing your idea for.
The more complete the picture you have of your target user/customer/audience, the easier it is to both develop your product or service and market it.
the innovaAon challengeVicHealth are looking for bold new ideas for campaigns, programs, services and other iniRaRves that help change Victorian drinking culture by either:
1. reducing the amount Victorians drink, parRcularly those who already drink heavily, or
2. increasing the acceptability of saying no to a drink, or drinking a bit less.
Alcohol Discovery &
Insights Forum
Alcohol Discovery & Insights Forum
Consumption of alcohol
Abstaining extreme, odd &
infrequent behaviour
Typical Drinking
normal behaviour
Getting Drunk common practice
Binge Drinking extreme & "
“a youth issue”
Only abstinence from alcohol and binge drinking are seen as extreme behaviours
Acceptable behaviour
The spectrum of acceptable behaviour
Alcohol Discovery &
Insights Forum
Alcohol Discovery & Insights Forum
The Protector
The Initiator • Outgoing and the ‘life of the party’!• Loves to have a drink and let loose!• Drinks to have fun!• Gregarious and outgoing and loves
to make things happen – often encourages others to drink!
• Likes to be a source of information on alcohol brands, types of drinks and places to go out!
The Follower • Fun, social and easy-going!• Influenced by social and cultural
pressures!• Tends to join in and go with the
flow!• Gets swept up in the moment and
enjoyment of social situations
The Moderator !
Drinking Identities &
Characteristics
Alcohol Discovery &
Insights Forum
Alcohol Discovery & Insights Forum
The Protector
The Initiator • Outgoing and the ‘life of the party’!• Loves to have a drink and let loose!• Drinks to have fun!• Gregarious and outgoing and loves
to make things happen – often encourages others to drink!
• Likes to be a source of information on alcohol brands, types of drinks and places to go out!
The Follower • Fun, social and easy-going!• Influenced by social and cultural
pressures!• Tends to join in and go with the
flow!• Gets swept up in the moment and
enjoyment of social situations
The Moderator !
Drinking Identities &
Characteristics
Alcohol Discovery &
Insights Forum
Alcohol Discovery & Insights Forum
What drives the Initiators?
Seeking Self Enhancement
Mavenism / Ego
Social expectations Easy access to alcohol
Hedonism
Cheap Prices
Coping with Depression
Brand loyalty
Building Confidence
Question: How can I create fun without using Alcohol as a starting point?
Alcohol Discovery &
Insights Forum
Alcohol Discovery & Insights Forum
Achievement Values
What drives the Followers?
Seeking Self Enhancement Mavenism / Ego
Easy access
Hedonism Cheap Prices
Brand loyalty
Question: How can I join in but not be lead astray so easily?
understanding your target audience1. Do they need and will they value what you are offering?
2. What problem are you solving for them and are they looking for a soluRon?
3. Where are they looking for a soluRon to their problem?
4. How would they prefer to engage with you and access what you are offering?
5. What are they willing to pay?
6. What might they need to know? About you, the issue, your offering?
7. What other offerings are out there compeRng for the same audience? How are you different from them.
A shared language for describing, visualizing, assessing, and changing business models
The Business Model Canvas
bmgen_final.indd 12 6/15/10 5:31 PM
Having a great idea doesn't guarantee success. A great business idea must also have a great business model to support and sustain it.
Alex Osterwalder
Def_Business Model
A business model describes the raRonale of how an organisaRon creates, delivers, and captures value.
Source: Business Model Generation
and it’s not just about business…• lean impact • impact canvas • about learning • making sustainable • key principles are the same:
human-‐centred and crea?ng value
What’s the difference betweena business plan
and a business model?
The Business Model Canvas is a tool for you to design, analyse, test and describe your business model and how your organisaRon intends to create, deliver, and capture value in a profitable way.
71%
Business Model Canvas
Business Model Canvas
1. customers
4. relation
3. channels
2. value
5. revenues9. costs
6. resources
7. activities
8. partners
http://www.businessmodelgeneration.com
75%
Business Model Canvas
Business Model Canvas > value and customers
1. customers
4. relation
3. channels
2. value
http://www.businessmodelgeneration.com
the value reaches
the customers
through channels
value - customer
communication
79%
Business Model Canvas
Business Model Canvas > value
2. value
6. resources
7. activities
8. partners
Those contribute
creating value
http://www.businessmodelgeneration.com
83%
Business Model Canvas
earnings = revenues - costs
Business Model Canvas > costs and revenues
1. customers
5. revenues9. costs
6. resources
7. activities
8. partners
Customers
pay
Creating value
costs money
Earnings
should be
greater than
zero
http://www.businessmodelgeneration.com
87%
Business Model Canvas
earnings = revenues - costs
Business Model Canvas > relationships
1. customers
4. relation
3. channels
2. value
5. revenues9. costs
6. resources
7. activities
8. partner
http://www.businessmodelgeneration.com
blended value / triple bottom line
social and environmental benefit social and environmental cost
98
PAT
TER
NS
FREE
AS
A B
USI
NES
S M
OD
ELSkype offers an intriguing example of a free-
mium pattern that disrupted the telecommuni-
cations sector by enabling free calling services
via the Internet. Skype developed software by
the same name that, when installed on comput-
ers or smartphones, enables users to make calls
from one device to another free of charge.
Skype can offer this because its Cost Structure
is completely different from that of a telecom
carrier. Free calls are fully routed through
the Internet based on so-called peer-to-peer
technology that employs user hardware and
the Internet as communications infrastructure.
Hence, Skype does not have to manage its own
network like a telco and incurs only minor costs
to support additional users. Skype requires very
little of its own infrastructure besides backend
software and the servers hosting user accounts.
Users pay only for calling landlines and
mobile phones through a premium service called
SkypeOut, which offers very low rates. In fact,
users are charged only slightly more than the
termination costs that Skype itself incurs for
calls routed through wholesale carriers such as
iBasis and Level 3, which handle the company’s
network traffi c.
Skype claims it has over 400 million reg-
istered users who have made more than 100
billion free calls since the company was founded
in 2004. Skype reported revenues of U.S. $550
million in 2008, though the company and its
owner, eBay, do not release detailed fi nancial
data including information on profi tability. We
may soon know more as eBay has announced
plans to list Skype through an initial public
offering (IPO).
Skype
payment providers
distribution partners
telco partners
software development
free internet & video calling
cheap calls to phones
(skypeout)
mass customized
web users globally
people who want to call phones
software developers
software
skype.com
headset partnerships
software development
complaint management
free
skypeout pre-paid or subscription
hardware sales
Skype
VP CR
CH
CSKP KA
KR
R$C$
Over 90 percent of Skype users subscribe to the free service
Paid SkypeOut calls account for less than 10 percent of total usage
bmgen_final.indd 98 6/15/10 5:37 PM
FREE
AS
A B
USI
NES
S M
OD
ELPA
TT
ERN
S
99
Skype is a voice calling services company operat-ing under the economics of a software company
Skype disrupted the telecommunications industry and helped drive voice communica-tion costs close to zero. Telecom operators initially didn’t understand why Skype would offer calls for free and didn’t take the company seriously. What’s more, only a tiny fraction of the traditional carriers’ customers used Skype. But over time more and more customers decided to make their international calls with Skype, eating into one of the most lucrative carrier revenue sources. This pattern, typical of a disruptive business model, severely affected the traditional voice communication business, and today Skype is the world’s largest provider of cross-border voice communication services, according to telecommunications research fi rm Telegeography.
maximum outsourcing
software devel-opment and no
network mainte-nance
roughly similar voice oΩer
automated mass customization
global reach without the
limitations of a network
no infrastructure
software distribution 100%
low cost chan-nels
cost structure of a software company90% free usage
10% paying
Skype versus Telco
Giving away software and allowing customers to make free Skype-to-Skype calls costs the company little
5+ years old400 million+ users100 billion+ free calls generated2008 revenues of U.S. $550 million
VP CR
CH
CSKP KA
KR
R$C$
bmgen_final.indd 99 6/15/10 5:37 PM
getting started
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1. customer segments
The Customer Segments Building Block defines the different groups of people or organisaRons an enterprise aims to reach and serve.
Customer SegmentsThere are different types of market segments:
1. Mass market
2. Niche market
3. Segmented
4. Diversified
5. MulR-‐sided planorms (or mulR-‐sided markets)
Alcohol Discovery &
Insights Forum
Alcohol Discovery & Insights Forum
The Protector
The Initiator • Outgoing and the ‘life of the party’!• Loves to have a drink and let loose!• Drinks to have fun!• Gregarious and outgoing and loves
to make things happen – often encourages others to drink!
• Likes to be a source of information on alcohol brands, types of drinks and places to go out!
The Follower • Fun, social and easy-going!• Influenced by social and cultural
pressures!• Tends to join in and go with the
flow!• Gets swept up in the moment and
enjoyment of social situations
The Moderator !
Drinking Identities &
Characteristics
Key QuesRons1. For whom are we creaRng value?
2. Who are our most important customers?
@psCustomer groups represent separate segments if: • Their needs require and jusRfy a disRnct offer • They are reached through different DistribuRon Channels • They require different types of relaRonships • They have substanRally different profitabiliRes • They are willing to pay for different aspects of the offer
acAvity1. Which market segment are you targeRng?
2. Is there a parRcular niche within that market segment that you are targeRng? What is it?
Empathy is not just about walkingin another's shoes. First you must remove your own.
next…• develop 2-‐3 personas for each of your customer segments
• idenRfy what they value & idenRfy what problems they have • idenRfy the barriers they face to changing their drinking behaviour
• map out a typical day in the life for each customer segment that involves alcohol • what is their usual rouRne? • what are their habits?
> IdenRfy when and where are they more likely to engage with you/your offering.
what are personas?Personas are ficRonal representaRons of your target audience that help you to understand them beGer. Well thought out and well researched personas make it easier for you to design and deliver services that meet your target audience’s specific needs and expectaRons, while addressing their unique challenges and communicaRng in their language.
The strongest personas are based on market research in combinaRon with insights gathered through conversaRons, surveys and interviews with your target audience.
MarketSegment
Name
Gender
Age
Nationality
Location
RelationshipStatus
Children
Employer
Position
Income
Background Routine&Behaviour
Goals&Motivations Challenges&Constraints
IdealExperience
1PersonaCreatorpoweredbyUsabilityTools
What’s their history in relaRonship to drinking? Who and what has shaped their current behaviour?
What’s their rouRne in relaRon to socialising and drinking? Daily, weekly, monthly, annually?
What are their personal goals around health, wellbeing and happiness? What moRvates them?
What are the challenges they face to changing their drinking behaviour? What are the constraints/barriers?
What sort of experience are they looking for? What sort of interacRon do they want to have with others/you?
What sort of thing might you expect them to say about their ideal experience and why they love it?
getting ready arrive depart fall asleep
ENABLING CONDITION
SCENARIO
Persona: Scenario:
POINT OFDECISION
POTENTIALHURDLE
2. VALUE PROPOSITIONS
The Value Proposi@ons Building Block describes the bundle of products and services that create value for a specific Customer Segment.
Value Proposi@onsElements from the following non-‐exhaus?ve list of quan?ta?ve or qualita?ve values can contribute to customer value crea?on:1. Newness 2. Performance 3. CustomizaRon 4. “Gesng the job done” 5. Design 6. Brand/status
7. Price 8. Cost reducRon 9. Risk reducRon 10. Accessibility 11. Convenience/Usability
“I drink”
• Fit in with everyone else • Feel connected to others
Means Values Ends Values
so that I can
• Be the life of the party • Experience adventure • Have a great night • Relax • Overcome my inhibiRons • Forget my worries
What experiences do your users want to have?
What experiences do they want to avoid?
In other words…
Key Ques@ons1. What value do we deliver to the customers or users?
2. Which one of our customer’s problems are we helping to solve?
3. Which customer needs are we saRsfying?
4. What bundles of products and services are we offering to each Customer Segment?
Simple Fix for Blown Head Gaskets
Repairs Blown Head Gaskets inJust One Hour
Tips• Make it as plain as day • Use your customer’s language. How would they describe the benefits themselves?
• Strengthen your case • Customer tesRmonials • Assurance • Social proof
3. channels
The Channels Building Block describes how a company communicates with and reaches its Customer Segments to deliver a Value ProposiRon.
ChannelsChannels serve several funcRons, including:
• Raising awareness among customers about a company’s products and services
• Helping customers evaluate a company’s Value ProposiRon
• Allowing customers to purchase specific products and services
• Delivering a Value ProposiRon to customers
• Providing post-‐purchase customer support
Channel Types & Phases
Tourism Australia
grind it out
tiny habits
“The key is help them take baby steps”
http://www.behaviormodel.org/
Key Ques@ons1. Through which Channels do our Customer Segments
want to be reached?
2. How are we reaching them now?
3. How are our Channels integrated?
4. Which ones work best?
5. Which ones are most cost-‐efficient?
6. How are we integraRng them with customer rouRnes?
Ac@vityCreate a user journey map for each of your personas: • What touch points do they have with you? • Where are you best able to give them maximum value on (i.e. a great experience)?
• Which ones might be cosRng you a good deal but not providing much value for customers?
• Which ones could you potenRally create a lot more value through without much effort or resources?
4. customer relationships
The Customer Rela@onships Building Block describes the types of relaRonships a company establishes with specific Customer Segments.
Customer Rela@onshipsRelaRonships can range from personal to automated. Customer relaRonships may be driven by the following moRvaRons:
1. Customer acquisiRon
2. Customer retenRon
3. BoosRng sales (upselling)
Customer Rela@onshipsWe can disRnguish between several categories of Customer RelaRonships, which may co-‐exist in a company’s relaRonship with a parRcular Customer Segment: 1. Personal Assistance
Customer Rela@onshipsWe can disRnguish between several categories of Customer RelaRonships, which may co-‐exist in a company’s relaRonship with a parRcular Customer Segment: 1. Personal Assistance 2. Dedicated Personal Assistance
Customer Rela@onshipsWe can disRnguish between several categories of Customer RelaRonships, which may co-‐exist in a company’s relaRonship with a parRcular Customer Segment: 1. Personal Assistance 2. Dedicated Personal Assistance 3. Self-‐service
Customer Rela@onshipsWe can disRnguish between several categories of Customer RelaRonships, which may co-‐exist in a company’s relaRonship with a parRcular Customer Segment: 1. Personal Assistance 2. Dedicated Personal Assistance 3. Self-‐service 4. Automated services
Customer Rela@onshipsWe can disRnguish between several categories of Customer RelaRonships, which may co-‐exist in a company’s relaRonship with a parRcular Customer Segment: 1. Personal Assistance 2. Dedicated Personal Assistance 3. Self-‐service 4. Automated services 5. CommuniRes
Customer Rela@onshipsWe can disRnguish between several categories of Customer RelaRonships, which may co-‐exist in a company’s relaRonship with a parRcular Customer Segment: 1. Personal Assistance 2. Dedicated Personal Assistance 3. Self-‐service 4. Automated services 5. CommuniRes 6. CocreaRon
Key Ques@ons1. What type of relaRonship does each of our Customer
Segments expect us to establish and maintain with them
2. Which ones have we established?
3. How costly are they?
4. How are they integrated with the rest of our business model?
customer development principles1. There Are No Facts Inside Your
Building, So Get Outside
2. Failure is an Integral Part of the Search for the Business Model
3. IteraRons and Pivots are Driven by Insight
4. Validate Your Hypotheses with Experiments
5. Success Begins with Buy-‐In from Investors and Co-‐Founders
6. No Business Plan Survives First Contact with Customers
7. Not All Startups Are Alike
8. If it’s not About Passion, You’re Dead the Day You Opened your Doors
9. Preserve Cash While Searching. Ayer It’s Found, Spend
10.Communicate and Share Learning
http://steveblank.com/2012/03/29/nail-the-customer-development-manifesto/
5. revenue streams
The Revenue Streams Building Block represents the cash a company generates from each Customer Segment (costs must be subtracted from revenues to create earnings).
Revenue StreamsA business model can involve two different types of Revenue Streams:
1. TransacRon revenues resulRng from one-‐Rme customer payments
2. Recurring revenues resulRng from ongoing payments to either deliver a Value ProposiRon to customers or provide post-‐purchase customer support
Key Ques@ons• For what value are customers willing to pay?
• How much are they willing to pay?
• How do they want to pay?
• How will you price your product or services? Will it be a one off purchase? Will their be Rered pricing structure? Will it be fixed, variable or subscripRon?
• What are other sources of revenue? How much do they contribute to overall revenue?
Revenue StreamsThere are several ways to generate revenue: 1. Asset Sale
Revenue StreamsThere are several ways to generate revenue: 1. Asset Sale 2. Usage Fee
Revenue StreamsThere are several ways to generate revenue: 1. Asset Sale 2. Usage Fee 3. SubscripRon Fees
Revenue StreamsThere are several ways to generate revenue: 1. Asset Sale 2. Usage Fee 3. SubscripRon Fees 4. Lending/Leasing/RenRng
Revenue StreamsThere are several ways to generate revenue: 1. Asset Sale 2. Usage Fee 3. SubscripRon Fees 4. Lending/Leasing/RenRng 5. Licensing
Revenue StreamsThere are several ways to generate revenue: 1. Asset Sale 2. Usage Fee 3. SubscripRon Fees 4. Lending/Leasing/RenRng 5. Licensing 6. Brokerage fees
Revenue StreamsThere are several ways to generate revenue: 1. Asset Sale 2. Usage Fee 3. SubscripRon Fees 4. Lending/Leasing/RenRng 5. Licensing 6. Brokerage fees 7. AdverRsing
Revenue StreamsThere are several ways to generate revenue: 1. Asset Sale 2. Usage Fee 3. SubscripRon Fees 4. Lending/Leasing/RenRng 5. Licensing 6. Brokerage fees 7. AdverRsing
8. Freemium
Revenue StreamsThere are several ways to generate revenue: 1. Asset Sale 2. Usage Fee 3. SubscripRon Fees 4. Lending/Leasing/RenRng 5. Licensing 6. Brokerage fees 7. AdverRsing
8. Freemium 9. Crowdfunding
33
Fixed Menu PricingPredefined prices are based on static variables
Dynamic PricingPrices change based on market conditions
List price Fixed prices for individual products, services,
or other Value Propositions
Negotiation
(bargaining)
Price negotiated between two or more partners
depending on negotiation power and/or negotiation skills
Product feature
dependent
Price depends on the number or quality of
Value Proposition features
Yield management Price depends on inventory and time of purchase
(normally used for perishable resources such as hotel
rooms or airline seats)
Customer segment
dependent
Price depends on the type and characteristic
of a Customer Segment
Real-time-market Price is established dynamically based on supply
and demand
Volume dependent Price as a function of the quantity purchased Auctions Price determined by outcome of competitive bidding
Pricing Mechanisms
bmgen_final.indd 33 6/15/10 5:32 PM
14
Case Study 1: Skype
Payment Providers
Distribution Partners
Telco Partners
Software Development
Software Developers
Software
Free Internet & Video Calling
Cheap Calls to Phones (SkypeOut)
Mass Customized
Skype.com
Headset Partnerships
Web Users Globally
People Who Want to Call Phones
Software Development
Complaint Management Free
SkypeOut Pre-Paid or Subscription
Hardware Sales
Dia
gram
from
Ale
x O
ster
wal
der,
Busi
ness
Mod
el G
ener
atio
n
6. key resources
Key Ques@ons• What knowledge, skills, material, human and other resources will you need to deliver your:
•Value proposiRon?
•DistribuRon channels?
•Customer relaRonships?
•Revenue streams?
7. key activities
Key Ques@ons• What key acRviRes are require to deliver:
•value proposiRons?
•distribuRon channels?
•customer relaRonships?
•revenue streams?
8. key partnerships
Key Ques@ons• Who will you partner with?
• Who can help you fill any resource gaps or help you provide greater value to customers?
• Who can provide distribuRon or markeRng channels to help you reach your target audience?
• What key acRviRes might they deliver?
9. cost structure
Key Ques@ons• How much will it cost to iniRally develop the value proposiRon?
• What are the most important costs?
• What’s the cost of your MVP?
• What key resources and acRviRes are most expensive?
social impact measurement
blended value / triple bottom line
social and environmental benefit social and environmental cost
PAY(FOR(FAILURE(OR(INVEST(IN(SUCCESS?(#ImpactAU2014$
minimum viable product
Barn Suppers. Image courtesy of Philip Dunda
testing assumptions
What are your assumpAons?What assumpRons do you have about your target audience or the product or service you are developing?
1. Does your target audience need what you’re offering? Does it solve a problem that they are looking for help with?
2. Will they want to engage with you to solve that problem?
3. Will they pay what you’re asking?
4. Will they want to access it how and where you’re offering it?
5. Do you know that they will use your offering in the way that it’s intended?
How might you test your assumpAons?
1. LANDING PAGE
designing your MVP
2. A BLOG POST
3. EMAIL
4. SURVEYS
3. BASIC PROTOTYPE
5. EXPLAINER VIDEOS
6. BASIC PROTOTYPE
7. WIZARD OF OZ
8. CONCIERGE
9. PIECEMEAL
10. CROWDFUNDING
“By the ?me that product is ready to be distributed widely, it will already have established customers.”
the right way to do lean research• Right quesRons: Make sure you know what you need to know
• Right people: Talk to people like your users • Right test/methodology: SomeRmes prototypes, someRmes Wizard of Oz
• Right place: When do you go onsite? • Right astude: Listen, don’t sell • Right documentaRon: Record!
http://boxesandarrows.com/the-right-way-to-do-lean-research/
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Lean Startup Experiments
Assumption TestingExperiment Design
Hypothesis Participants
Approach & Activities Expected Data & Actual Data
Learning Goals & Outcomes Decision
BMC Iteration
testing your business model
tesRng your business model1. Are there customers who will buy what you sell? What evidence do you have?
2. Who are your compeRtors? Not just for similar products but for funds, Rme, aGenRon?
Why would customers use your product or service instead of the compeRRon? How different are you from the compeRRon?
How will you respond to new compeRRon?
tesRng your business model3. Is this financially viable/sustainable?
4. Is this replicable and/or scalable? How will you increase your reach or impact?
the pitch
what makes a great pitch?1. Start with why.
1. What’s the problem you’re solving.?
2. Why is it important?
3. What’s the impact? Use memorable facts, figures, anecdotes and metaphors.
2. What’s your soluRon?
3. Who’s your audience?
4. What do they value?
5. How is your idea different from others out there?
what makes a great pitch?6. Who are you partnering with?
7. What are you building on that already exists?
8. Where are you in the stage of implemenRng your idea?
9. What do you need to take the next step?
10. How can we help you get there? What would you like us to do?
11. Share your passion.
12. Finish with your tagline.
thank you
join the conversa4on on twi6er with @VicHealth
@DoingSomeGood #VHinnov
DAVID HOOD @DavidAHood
JULIAN WATERS-‐LYNCH @jwaterslynch
doing something
good
