Canvasing the Enterprise

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Canvasing the Enterpri se © 2012 BigVisible Solutions

description

David J. Bland discusses why you need to care about visualizing and experimenting on your business models.

Transcript of Canvasing the Enterprise

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Canvasingthe

Enterprise

© 2012 BigVisible Solutions

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David J BlandAgile / Lean / XP / KanbanStartups & EnterpriseseCommerce to Counter Terrorism

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What is a Business Model?

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What is a Business Model?(answers may surprise you)

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“A business model describes the rationale of how an organization creates, delivers & captures value”

-Alexander Osterwalder

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A business model used to be static and survived many years.

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Large Batch

Organized byFunction

Small Batch

Cross FunctionalTeams

EntrepreneurialTeams

Minimum ViableExperiments

Now business models should be evolving with the organization.

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- Product- Process- Business Model

Experiments on:

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© 2012 BigVisible Solutions 10Source: Alex Osterwalder

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Level 1

Checklist

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What are the elements that make up a business model?

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Customer Segment

“For whom are we creating value?”

Source: Adapted from Alex Osterwalder

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Value Proposition

“What value do we deliver to the customer?”

Source: Adapted from Alex Osterwalder

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Channels

“How do we deliver the value we create to the customer?”

Source: Adapted from Alex Osterwalder

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CustomerRelationships

“How do we create & maintain relationships with our customers?”

Source: Adapted from Alex Osterwalder

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RevenueStreams

“How much will these customers pay for the value we create?”

Source: Adapted from Alex Osterwalder

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CostStructure

“How much will this cost to create and maintain?”

Source: Adapted from Alex Osterwalder

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KeyResources

“Who and what will we need to create this value?”

Source: Adapted from Alex Osterwalder

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KeyActivities

“What will we do with these resources to build value?”

Source: Adapted from Alex Osterwalder

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KeyPartners

“Who would we partner with that will provide us with Key Resources or Key Activities?”

Source: Adapted from Alex Osterwalder

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This level of understanding is a good starting point.

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Level 2

Hypothesis

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? ? ???

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“Let’s map out our existing business model”

Source: Adapted from Alex Osterwalder

tip: tell a story

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? ? ???

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“Who is our Customer Segment?”

Source: Adapted from Alex Osterwalder

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? ? ???

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“What need of theirs do we solve?”

Source: Adapted from Alex Osterwalder

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? ? ???

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“How do we deliver our solution to them?”

Source: Adapted from Alex Osterwalder

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? ? ???

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“How do we build relationships with them?”

Source: Adapted from Alex Osterwalder

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“How do we make money delivering this value?”

Source: Adapted from Alex Osterwalder

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“What does this cost us to build & maintain?”

Source: Adapted from Alex Osterwalder

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??

“Who & what do we need to create this?”

Source: Adapted from Alex Osterwalder

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?

“What activities do these resources perform?”

Source: Adapted from Alex Osterwalder

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“Who do we partner with?”

Source: Adapted from Alex Osterwalder

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Before I lose you please stay for this next slide.

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This can apply to internal projects!

Source: Adapted from Alex Osterwalder

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This can be an Internal User or Stakeholder

Source: Adapted from Alex Osterwalder

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This can be an Internal Product or B2B Solution.

Source: Adapted from Alex Osterwalder

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These can be Internal Costs and Metrics.

Source: Adapted from Alex Osterwalder

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These can be Internal Partnerships across Functional Departments

Source: Adapted from Alex Osterwalder

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Still with me?

GOOD

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? ? ???

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“I wonder how much of this is reality…”

Source: Adapted from Alex Osterwalder

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Level 3

Validation

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? ? ???

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“Let’s validate our riskiest assumptions”

Source: Adapted from Alex Osterwalder

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This is most likely your Riskiest Assumption

Source: Adapted from Alex Osterwalder

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Empathy MapsPersonasUsage AnalysisCohort AnalysisCustomer InterviewsSurveysA/B Testing

Source: Adapted from Alex Osterwalder

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This is most likely your other Riskiest Assumption

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Does your product solve a need for the Customer Segment?

How do you validate or invalidate that statement?

Source: Adapted from Alex Osterwalder

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What happens when we subtract costs from revenue?

Source: Adapted from Alex Osterwalder

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Go get someone from accounting, now.

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Who are we partnering with and what are they bringing?

Source: Adapted from Alex Osterwalder

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Introducing some customizations

Lean Canvasby Ash Maurya

Source: Ash Maurya

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Business Model Canvas

LeanCanvas

efficiency value product market

Source: Adapted from Osterwalder & Maurya

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Business Model Canvas Lean Canvas

Customer Segment Customer Segment

Value Proposition Unique Value Proposition

Customer Relationship Unfair Advantage

Channel Channel

Revenue Streams Revenue Streams

Cost Structure Cost Structure

Key Resources Key Metrics

Key Activities SolutionKey Partners Problem

Source: Adapted from Osterwalder & Maurya

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Lean CanvasCustomer Segment

Unique Value Proposition

Unfair Advantage

Channel

Revenue Streams

Cost Structure

Key Metrics

Solution

Problem

Problem / SolutionProduct / Market

Source: Adapted from Ash Maurya

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Disclaimer:Problem / Solution Fitand Product / Market Fit

ARE DIFFERENT

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Problem / Solution Fit

Product / Market Fit

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1 2

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These have potential.

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Choose Customer, Problem, Solution for each.

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1 2

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Design Minimum Viable Experiments.

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1

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3 3.1

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Cultural, Organizational & Leadership

Barriers

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Are your teams empowered to use a canvas?

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How does this scale up and across the organization?

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Vision

Strategy

Team

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ID Hypothesis Description Status Next Steps

Experiment Dashboard

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Where do the new ideas go?

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How to pitch a VC VP

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But we’re already doing agile do we really need a canvas?

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Iterative Product+ Static Business Model

Failed Organization

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Place the Canvas on the wall next to your Kanban board.

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Questions?

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David J BlandAgile Consultant

[ ]: +1 703 945 0700[ ]: [email protected][ ]: www.bigvisible.com[ ]: @davidjbland

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