business model vs lean canvas
TRANSCRIPT
Business Model Design
yakup bayrakStartupbootcamp Istanbul | 04.09.2015
Yakup Bayrak
Lycée Saint JosephBoğaziçi Üniversitesi Turizm İşletmeakampus.comIVME Marketing GroupAjans 27Niş EventsBilge Adam BT Akademisi27Pure New MediaKeyFruitDAM Startup StudioSHERPADAM Growth HackersDijital StüdyoCiz.io…
about.me/yakup
What’s in it for you?
10.00 - 10.45 Part 1
Why we need a model for designing your business flowWhat is Business Model Canvas?Why should you use Business Model Canvas?What is Lean Canvas?Why should you use Lean Canvas?What are the differences between Business Model and Lean Canvas?
10.45 - 11.00 Coffee break
11.00 - 11.45 Part 2
Let's see how they used Business Model CanvasLet's see how they used Lean CanvasLet's build a Business Model CanvasLet's build a Lean CanvasWhat's next?
11.45 - 12.15 Q&A
12.15 End of course
Why do we need a model for designing
your business flow?
THE BUSINESS PLAN
A written document that describes in detail how a new business is going to achieve its goals. A business plan will lay out a written plan from a marketing, financial and operational viewpoint.
THE BUSINESS MODEL
The plan implemented by a company to generate revenue and make a profit from operations. The model includes the components and functions of the business, as well as the revenues it generates and the expenses it incurs.
Business Plan ≠ Business Model
Why choosing Business Model?
A business model describes the rationale of how an organization creates, delivers, and captures value.
It is simple, intuitively understandable and suitable for iterative development.
Why not choosing Business Plan?
Business Plan: A document investors make you write that they don’t read.Business Model: A single diagram that describes your business.
- Steve Blank
Types of Business ModelsHeny Chesbrough - Open Innovation
New innovations often require new business models. This is where the idea of business model innovation really started to gain traction. Chesbrough didn’t just describe business models, he also discussed how changing a business model can be an innovation just by itself.
Key Points
Further reading - http://www.slideshare.net/SiliconValleyST/business-model-innovation-by-h-chesbrough
Types of Business ModelsStrategy Diamond
The first key point here is that a good business model is integrated. All of the elements need to be consistent with and support the others. If you change one element, it’s likely that you’ll need to change all of them. Second, this model illustrates how closely linked strategy and business models are. When you design a business model, you can’t do it without clearly articulating a strategy.
Key Points
Further reading - http://www.provenmodels.com/598/strategy-diamond/donald-c.-hambrick--james-w.-fredrickson/
Types of Business ModelsPatrick Staehler - Business Models in the Digital
Economy
Leadership Style, Relationship Style and Values. Think about that in relation to the point above about integration. If you change the relationship style within your organisation, you’ll likely need to change the rest of your business model as well. Furthermore, this business model innovation could be a source of competitive advantage. This is a very powerful point.
Key Points
Further reading - http://blog.business-model-innovation.com/tools/
What’s about this famousBusiness Model Canvas?
Born in Winterthur, Osterwalder obtained his MA in Political Science in 2000 at the University of Lausanne, where in 2004 he also obtained his PhD in Management Information Systems under Yves Pigneur with the thesis, entitled "The Business Model Ontology - a proposition in a design science approach.” In 1999 Osterwalder co-founded his first startup Netfinance.ch, which supplied education in online trading and investing. He was journalist for the Swiss business magazine BILANZ in 2000-01, and Senior Research Fellow back at the University of Lausanne from 2000 to 2005 in the time he finished his PhD research.
The man behindAlex Osterwalder
In 2006 he founded BusinessModelDesign.com, and in 2010 he co-founded the consultancy firm Strategyzer.In the late 2000s "Osterwalder and a team of 470 co-creators published a very attractive and popular model for describing business models: the Business Model Canvas. The Business Model Canvas offers you an excellent model to further develop your ideas about the business model for monetizing data."
Further reading - http://businessmodelalchemist.com/
The story behindBusiness Model Canvas
“We believe a business model can best be described through nine basic building blocks that show the logic of how a company intends to make
money. The nine blocks cover the four main areas of a business: customers, offer, infrastructure, and financial viability. The business model is like a blueprint for a strategy to be implemented through organisational
structures, processes, and systems.”
Why should you useBusiness Model Canvas?
The reason why you should useBusiness Model Canvas
“The business model canvas — as opposed to the traditional, intricate business plan — helps organizations conduct structured, tangible, and
strategic conversations around new businesses or existing ones.
Leading global companies like GE, P&G, and Nestlé use the canvas to manage strategy or create new growth engines, while start-ups use it in
their search for the right business model.
The canvas’s main objective is to help companies move beyond product-centric thinking and towards business model thinking.”
The reason why you should useBusiness Model Canvas
And what’s about that other one;
Lean Canvas?
"Life's too short to build something nobody wants."
I have been an entrepreneur for more than a decade, and throughout that time I have been in search of a better, faster way for building successful products.
Then I ran into early works on Customer Development and Lean Startup pioneered by Steve Blank and Eric Ries. I joined in on the conversation and have been rigorously applying and testing these principles since then. I started sharing my learning on this blog, which then turned into a book, and subsequently into a series of products aimed at helping entrepreneurs raise their odds of success.
That is my mission and reason for being.
The man behindAsh Maurya
Further reading - http://leanstack.com/
“I particularly like Alex Osterwalder’s 1 page canvas approach to business model generation. It visually captures the essential components of a business model. I do find some of Osterwalder’s blocks a bit too general for a lean startup and specifically my type of business – web apps. For instance, before product/market fit, I need to see more emphasis on Problem/Solution than key partners or a customer relationship model.
Rob Fitzpatrick created a great adaption of Osterwalder’s canvas that better captures the “4 Steps of Epiphany” type of hypotheses. Rob’s goal is to version each update so you get an automatic way for tracking the evolution of your model/pivots.However, after using the Rob’s Startup Canvas, I found it unfortunate that he left out a few critical blocks like the cost/revenue pieces which make up the foundation of the business model.
So I decided to iterate on this one more level and created a new version.”
The reason behind of the need fora new version of Business Model
Canvas
Further reading - http://leanstack.com/books/
1 234
5
67
8
9
The fill order forLean Canvas
1 132
3
24
4
?
The risk iteration path forLean Canvas
41
2
3
Product Risk
Customer Risk
Market Risk
Why should you useLean Canvas?
The reason why you should useLeand Canvas
“Lean Canvas is designed for entrepreneurs, not consultants, customers, advisors, or investors. That said, the
entrepreneur can greatly benefit by engaging all of those people while validating their canvas.”
Business Model vs Lean Canvas?
The main differences betweenBusiness Model and Lean Canvas
Element Business Model Canvas Lean Canvas
Target New and existing businesses Startup businesses purely
Focus Customers, Investors, Entrepreneurs, Consultants, Advisors Entrepreneurs purely
CustomersLays emphasis on customer segments, channels and customer relationships for all businesses
Does not lay much emphasis on customer segments because startups have no known or tested products to sell
ApproachIt lays down the infrastructure, lists the nature and sources of financing and the anticipated revenue streams of the business
It begins with the problem, a proposed solution, the channels to achieving the solution, costs involved and the anticipated revenue streams
CompetitionIt focuses on value proposition in quantitative and qualitative terms as way to stay smart in the market
It assesses whether the business has an unfair advantage over the rest and how to capitalize on it for better grounding
ApplicationIt fosters candid understanding, creativity, discussion and constructive analysis
It is a simple problem-solution oriented approach which enables the entrepreneur to develop step-by-step
