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