University:
Boston University
Course:
QST BA 472 | Business Experiments and Causal Methods
Academic year:

2024
Views:

62

Pages:

15
Author:

szkafut4kac

The Business Model Canvas Business Model Canvas – you will include this tool in your final plan 8. Key Partners Who will be able to help you leverage your model 7. Key Activities What you need to be able to do to perform well 6. Key Resources Which assets are indispensible 9. Cost structure Customer acquisition costs Distribution costs Hosting People, etc. 2.Value Propositions Single clear compelling message stating why you are different and worth buying 4. Customer Relationships What types of direct or indirect relationships do customers want? 3. Key Channels Touch points through which you reach customers and deliver value 5. Revenue Streams Revenue model Lifetime value Revenue Gross margin 1. Customer Segments Users Business Model / Lean Canvas Planning Activities Review Plan Deploy /Test Sta s p u rt Planning Activities Review Plan Deploy /Test Com me rcia lize & Sca le Business Plan / Strategic Plan Business Model / Lean Canvas Planning Activities Review ps u t r Sta Plan Deploy /Test Com me rcia lize & Sca le Business Plan / Strategic Plan Business Model Generation “Prototyping” your business: The BMC • xxx • xxx • • xxx • xxx xxx • xxx • xxx TIPS • Be specific: Segment = unique need & behavior • xxx • xxx • People buy, not entities • OK to brainstorm first segments to bring in first $10M • Prioritize • Who is desperate for your solution to their problems? • Which segment will be easiest, even if smaller? The BMC • xxx • xxx • • xxx • xxx xxx • xxx • xxx TIPS • Put “Product/Service” in title or top line of Value Proposition • xxx • xxx • Each Value Proposition connects directly to a Customer Segment • Value to the customer …not you …not society in general • Benefits, not features • Prioritize • Nice to have = Vitamin • Need to have = Pain-Killer The BMC • xxx • xxx • • xxx • xxx • xxx xxx • xxx • xxx Awareness à Evaluation à Purchase à Delivery à Aftersales • xxx TIPS • AKA Sales & Distribution • You will always sell the first few, but how will it scale up? • Consider Value Chain • How many hands it will pass through • Economics of downstream players The BMC • xxx • xxx • • xxx • xxx xxx • xxx • xxx Dedicated Personal Assistance / Automation / Self-Service / Communities • xxx • xxx TIPS • AKA Marketing & Customer Cultivation • “Get, Keep, Grow” • Each customer segment will have unique expectations The BMC • xxx • xxx • • xxx • xxx • xxx xxx • xxx • xxx • xxx Transactional vs. Recurring Pricing: Dynamic, Fixed, Volume-based, Lowest, Luxury etc. TIPS • Propose prices for each revenue stream- hypotheses • CAUTION: Licensing • Tempting to jump straight to YOUR model- easy! • Also have to validate model you expect licensee to buy, 2x work • Pricing strategies can change over time • Ask about sales cycle timing The BMC • xxx • xxx • • xxx • xxx xxx • xxx • xxx Human / Financial / Physical / Intellectual TIPS • xxx • xxx • AKA Assets (but not always) • Stick to top “do or die” resources, shift as BMC evolves • Differentiate what would be yours vs. contracted • Be specific: type of HR skill, type & amount of $, amount of data, size of factory, types of IP, etc. • Will shift as Right side of BMC evolves The BMC • xxx • xxx • • xxx • xxx xxx • xxx • xxx Production / Problem Solving / Platform • xxx • xxx TIP • Time & resources are limited. Can’t do it all (yet) • You can’t be everything to everyone: Who are you? What is your core business? Who does your customer need you to be? The BMC • xxx • xxx • • xxx • xxx xxx • xxx • xxx Spreading risk, economizing, optimizing • xxx • xxx TIPS • • You won’t need all of them today… prioritize. Woah there, Cowboy: • • • What benefit would they bring to you, and vice versa? How do you fit into their strategy? Can be time & money intensive The BMC • xxx • xxx • • xxx • xxx xxx • xxx • xxx Cost vs. Value Driven Fixed vs. Variable Costs TIPS • xxx • xxx • Validate costs in tandem with rest of business model: get quotes, get creative, get out of the building • • Watch margins closely: what is sector norm? Clichés are real: • • • Development & unit production costs Channel/Relationship costs Can’t rely on Net 30 or Net 60