Developing a Business Model Canvas
Goals:
1. Capture how you currently think about your project’s business model on a single sheet of paper.
2. Communicate your thinking to relevant colleagues, customers or partners.
3. With their input, identify the primary risk areas in the model.
4. Develop a build-measure-learn cycle to test and develop your business model prototype.
Guidelines:
Use the business model canvas to capture your current understanding in each of the boxes.
Use large post-its with no more than three post-its per box, and no more than five words per post-it. (We should be able to read the canvas from five yards away)
The Process:
Steps 1 and 2: What is your value proposition for each specific customer segment ?
A customer segment is defined as a group of similar customers or clients who have a common “job to be done”.
The value proposition is the specific value you offer a customer segment.
Use a different color post-it for each segment.
These customer-value proposition pairs tend to drive the rest of the canvas.
Step 3. What type of relationship does the customer expect to establish with you?
Step 4: Describe the channels you anticipate using to deliver your value proposition to your customer.
Step 5: What key activities are required to deliver the value proposition?
Step 6: Describe the key resources needed to support the activities.
Step 7: What partnerships could be used to support the value proposition?
Step 8: What are the model’s major cost drivers?
Step 9: What sources of fees or funding do you envisage?
Once you have completed your first draft, present the canvas to informed colleagues, customers or partners.
Present the canvas in the same order as you completed it, placing the post-it on the box you are describing. Try and describe the complete canvas in five minutes. (It helps to have one person placing the post-its on the canvas as the other person speaks.)
Ask your audience to help you identify the areas of highest risk.