Business ModelingWeek 5

Agenda• 5:30 – Team Stand Up• 5:40 – Business Modeling• 6:15 – Activity: Business Model

Canvas• 7:25 – Ongoing Offsite Activities

Objectives• Introduce Business Modeling• Introduce Business Model Canvas• Total Addressable Market • Customer Acquisition Costs

Business Modeling• Speaker Name• Title• Credentials

Business Model• Business models reflect an

organization’s present goals and objectives• A business model represents key

methodologies that support an organization to deliver a service or product to customers.

Organization-Centric• What can we sell customers?• How can we reach customers most

efficiently?• What relationships do we need to

establish with customers?• How can we make money from

customers?

NO!

Customer-Centric• What job does our customer need

to get done and how can we help them?• How do our customer prefer to be

approached and addressed?• What relationships do our

customers expect us to establish with them?• For what value are our customers

truly willing to pay?

Business Model• To be in business, sooner or later

someone has to pay you. Who is that? • Probably the person who actually

benefits most from the app - and it may not be the person using it!

Business Model Canvas

Value Proposition• What value do we deliver to the

customer?• Which of our customers’ problems are

we helping to solve?• What bundles of products and services

are we offering to each customer segment?• Which customer needs are we

satisfying?

Case Study: Symple AppSymple App - a mobile phone application that allows the chronically ill to keep a diary of symptoms• Who might want that

information? • Patients, doctors, and

drug companies

Symple App: Value to Patients• Symple App will help the

patient capture accurate information about how they are feeling, thus improving their diagnosis and refining treatment plans

Symple App: Patient Problems Solved• Getting better care• Feeling better sooner• Minimizing doctor visits

Symple App:Value to Doctors• Symple App will deliver

reliable and accurate information which could improve efficacy of patient treatment plans• May surface up negative

food or drug interactions

Symple App:Doctor Problems Solved• Getting reliable data from

each patient • Giving the best care

possible

Symple App:Value to Drug Company• Symple App will deliver

reliable and accurate information to drug companies to better understand how the drugs act and react• Improves proper patient

targeting and dosage recommendations

Symple App:Drug Company Problems Solved

• Increased visibility into negative interactions• Targeting markets for

drugs more effectively• Increasing channels for

drugs

Symple App:Product and Services• Deliver the app to the patient• Deliver data per patient to the

provider• Deliver data on all patients to drug

companies

Symple App:Customer Needs• Patient – having accurate information

about symptoms on a daily basis will improve treatment• Doctors – can better manage symptoms

if they have accurate information to prescribe for• Drug Companies – can produce drugs

that can better solve problems if they know what the real problems are

Value Proposition Characteristics• Newness• Performance• Customization• Design• Brand / Status• Price• Cost Reduction• Risk Reduction• Accountability• Convenience / Usability

Revenue Streams• Patients pay for the Symple and keep data

private• Patients get Symple free and the business is

offset by ad revenue by drug and insurance companies

• Drug or insurance companies license Symple to collect and manage their own data

• Doctors subscribe to patient feed of data and buy “reports” that summarize patient behaviors and impact

Activity:Business Model Canvas

Business Model Canvas

Find the BMC Example in your team’s Technovation

Workspace on Google Docs

Reminder:Weekly Reflections• What did your team like about this

week?• What challenges did your team

have this week?• Anything else your team would

like to share?

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Ongoing Offsite Activities• Customer Development• Usability Testing• Evaluate Data• Continue with App Inventor• Build Prototype