Testing, Iterating and Validating Your Business Model Canvas

www.rapidinnovation.co.uk

The Business Model

Canvas

6 April 2013

The Escape School – Startup MBA


David Gates

@davidrig81

Jessica Tayenjam

@jessicatayenjam

@rapidinnovation


I’ve got my BMC … Now what?

TEST

ITERATE

VALIDATE


How do I test my BMC?

‘A working hypothesis is a hypothesis that

is provisionally accepted as a basis for

further research in the hope that a tenable

theory will be produced, even if the

hypothesis ultimately fails’

‘Working hypothesis’ Wikipedia



1. Define what you’re testing

– Articulate your proposition

– Define your information

requirement



2. Decide who to test it on

– ‘Customer Segments’

– Industry stakeholders / 3rd parties

– Industry experts



2. Decide who to test it on

Key questions

– Are all customers created equal?

– What mix of views do I need to represent?

– How big of a sample size do I need?


BRAND

GOOD MERCHANDISING

SUSTAINABLE SALES


EFFICIENCY

EFFECTIVENESS


2008


ASSETS

VISUAL RECORD


INNOVATION

IMPROVED ASSET KNOWLEDGE

INCREASED ASSET VALUE AND LOWER COSTS


WORKING SESSION


MODEL STRUCTURE LEVEL

How we price When we charge How much we charge

Time and materials In advance Value-based

Success-based In arrears Cost plus

Freemium At each use Disruptive to market

Subscription Premium vs competition

License plus maintenance

Utility

Per site

Per user (can be

subcategorised)

Modular


WORKING SESSION



3. Bring together steps 1 and 2

– Identify the specific people you want to test

it on




– Identify the best means of engagement




– Identify the people you want to test it on

– Define the best means of engagement

– Craft your approach




– Identify the people you want to test it on

– Define the best means of engagement

– Craft your approach

– Get in touch!


Some of this ‘testing’

may also be the first

step towards your

early sales!


How do I iterate my BMC?

• Your Business Model Canvas is never finished!

• Revisit every time you have a significant

amount of new data

Look up XoomPark’s slideshare presentation for a good example of iteration


How do I validate my BMC?


Find

Your Model

Build

Your Capability

Realise

Your Value

Rapid Innovation Group

Testing, Iterating and Validating Your Business Model Canvas

Business

Transcript of Testing, Iterating and Validating Your Business Model Canvas