Chapter 1

DISRUPTOR’S CANVAS

Disruptor’s Handbook #2 DisruptorsHandbook.com

What’s in the ebook?

This ebook will introduce you to the “lean canvas”, a startup tool used to help new businesses document their business plan on a single page.

This version, however, has been modified to take account of the peer-to-peer model. It includes:

• Introduction to the Lean Canvas: Find out why it works

• Getting started with the Disruptor’s Canvas: The practicalities of the canvas

• Validating your Disruptor’s Canvas: Feedback is the lifeblood of a good idea.

Feel free to share this ebook.

What is the Disruptor’s Handbook?

The Disruptor’s Handbook is an un-Agency that brings startup culture to your business. We work with clients to help them see opportunity in disruptive technologies and business models. Our eBook series steps you through the practicalities of disruptive innovation.

We specialise in:

• Business model innovation: Helping you bring disruptive models, technology and ideas into your existing or new business

• Talent: Helping you transform your workforce for the 21st Century

• Operations: Digitally supercharge the way your firm functions from the C-suite to the front desk

• Product: Got a problem worth solving? We know how to get you from idea to market without delay.

Contact Us

Disruptor’s Handbook #2: Disruptor’s Canvas

Introduction to the Lean Canvas

The Lean Canvas is a “faster, more effective way to communicate your business model with internal and external stakeholders”. It is based on Alex Osterwalder’s business model canvas but has been modified to suit an innovation focused or “startup oriented” business.

The Lean Canvas has a number of benefits:

Short: Rather than spending weeks or months on writing a business plan, you can create and experiment with your Lean Canvas in an afternoon.

Sharp: The Lean Canvas forces you to be brief. Its shortness is a hard virtue that you will come to value.

Sweet: With a focus on simplicity and a basic lack of space, the Lean Canvas forces you to distil your ideas into their purest form.

Sound: It is not just a document to be stored away. The Lean Canvas is a sounding board for your business/idea and can be adjusted and improved with each iteration.

Disruptor’s Handbook #2: Shared Value Canvas

Assumptions and hypotheses Each and every section of the Lean Canvas is a place for documenting assumptions and hypotheses. For no matter how much research that you do, or how many focus groups you ask, your idea will only move beyond being an “idea” once you have people using (and preferably paying for) it.

So for example, you may make the assumption that small business owners will pay $50 per year for your idea. Until you ask someone in that market segment whether they would pay $50 per year or not, you have an hypothesis. Until they actually pay you, you have an assumption.

After completing a canvas, your challenge will be to actively test your assumptions and hypotheses.

Disadvantages of the Lean Canvas While the Lean Canvas is a great tool, there are some limitations which are useful to acknowledge:

• Moment in time: Like all business modelling, Lean Canvas is a snapshot of a moment in time. Changes in any one of your segments can dramatically impact your model.

• Value prop confusion: It is easy to end up with products in your value proposition segment. Try to avoid this where possible.

• Going for growth: How to you acquire, maintain and grow your customer base? The Lean Canvas struggles here – but this is covered in our Disruptor’s Handbook #5: Three Metrics That Matter.

Disruptor’s Handbook #2: Shared Value Canvas

Getting started The Disruptor's Canvas is divided into 9 main sections. Each of these sections deals with an aspect of your innovation.

• Problem: What is the problem you are solving?

• Solution: Describe your solution to this problem.

• Key metrics: What are the measurements and accountabilities that you will use to assess the success of your innovation?

• Unfair advantage: What is your secret advantage that you have that no one else does?

• Channels: How will you reach the people, groups and organisations who will benefit from your innovation?

• Customer segments: Describe the differing customer segments that you are targeting with your innovation.

The Disruptor's Canvas is designed to help you explain the business model behind your innovation

in a single page.

Disruptor’s Handbook #2: Shared Value Canvas

• Value proposition: Where the Disruptor’s Canvas differs from other variations of the Lean Canvas is in the value proposition. Rather than a single value proposition, disruptive must balance competing priorities and value propositions depending upon the stakeholders involved. In general there will be a B2B value proposition and a B2C value proposition.

• Cost structure: What are the immediate and ongoing costs to your innovation?

• Revenue streams: What are the expected revenue streams that will support your business? Things to consider include free, freemium and pro models. This can include transactional revenues (per use) or subscriptions. In general, work towards the “no brainer” pricing model which is all about driving growth and user adoption.

A word about value propositions The two value proposition sub-sections of the Disruptor’s Lean Canvas can be challenging to complete.

We are now seeing a peer-to-peer model emerging. This is essentially a combination of two approaches:

• B2B: The business-to-business marketing focus that engages more anonymous buyers with drip-fed knowledge and information.

• B2C: Consumer oriented marketing that prioritises emotion and action over information.

One way of understanding how this may play out is that we – as individuals – play parallel roles – personal and professional. As a professional, we may assess procurement opportunities and so are professionally attuned to corporate messaging and process. But as individuals, we may have a passion for Lego. A Lego oriented campaign may attract our interest, but the professional follow-through will seal the deal (and sometimes vice versa).

PROBLEM SOLUTION VALUE PROPOSITION

UNFAIR ADVANTAGE CUSTOMER SEGMENTS

KEY METRICS CHANNELS

COST STRUCTURE REVENUE STREAMS

DISRUPTOR’S CANVAS:

B2B B2C

Disruptor’s Handbook #2: Disruptor’s Canvas

Validating the Disruptor’s Canvas

Now that you have created your Disruptor’s Canvas (version 1.0), it’s now time to validate each section. This means working with your stakeholders and potential participants to determine whether your hypotheses and assumptions have been correct.

Seek our your “customer segments” and request a meeting. Face-to-face is preferable. In this meeting you are seeking to validate as much of your Disruptor’s Canvas as possible. Step through each section and actively ask, “does this resonate with you”?

In the key metrics section, ask whether you are measuring the right things. In the revenue streams section, ask whether you could count on an order at that price. In the channels section, seek to understand whether there are routes to market that you have not considered – or may be more direct than those you have specified.

Follow this style of questioning and analysis for each section of the canvas.

Remember: Be open to feedback. Your aim with the canvas is to both educate and engage potential partners and stakeholders in the creation of business value. This means updating the canvas as you go.

Disruptor’s Handbook #2: Shared Value Canvas

Taking it further A Disruptor’s Canvas is not just a document that sits in a folder or in a drawer. It is a practical guide for progressing your concept from idea to product.

The Disruptor’s Handbook can help you progress, accelerate and scale your project. There are a number of ways to do so:

• Read and follow: Download our Handbook #3: Key Themes and Messages and continue your journey

• Learn and lead: Enrol in our eLearning courses to deepen your understanding of the process

• Engage to accelerate: Work with our expert team to accelerate your innovation efforts.

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About the author

Gavin is a digital strategist and advisor. He has led new venture startups for organisations like PwC, developed digital strategy and execution for global brands on both the agency and client sides, and spent some time as an analyst in digital transformation for award winning analyst and advisory firm, Constellation Research.

Meet the disruptors

Joanne Jacobs Suzie Graham Jenni Beattie Andy Moore

Chapter 1

DISRUPTOR’S LEAN CANVAS

Disruptor’s Handbook #2

How do you innovate without disrupting your existing business? By taking lessons from Silicon Valley and applying them to projects you can innovate on the margins of your business and determine next steps in your own time. This handbook helps you get started today.

DisruptorsHandbook.com