Monthly Archives: January 2018

Business Model Canvas #6 Revenue Streams

Every company has to ask itself the questions: For which values is every single customer segment ready to pay? What is the strategy to capture this value? Answering this questions allows the company to generate one or more revenue streams from each customer segment. Steve Blank gave a few examples in the video: a for-free-model, a licence or subscription model. The revenue model is different than the pricing tactics. Each revenue stream can have different pricing mechanisms, such as fixed list prices, negotiations, auctions, market-dependent, quantity-based, or revenue management.  

Lean Startup #5 Build-Measure-Learn

When you are developing a service or a product as a start-up, you need a continuous flow of feedback from customer side to realize what they want and keep your process in a right direction. “Build, measure, learn” feedback loop is a methodology that helps you to do so.

On the image below, click on each hotspot to find more information about each part.

The model may be called “Build-Measure-Learn” but, if you follow that sequence and jump in at the “Build” phase, you’ll be missing the mark. Instead, it’s essential to start with a planning stage.

Your first task is to define the idea that you want to test and the information that you need to learn. You do this by developing a hypothesis – your prediction of what will happen during the experiment .

Also, let’s see what Eric Ries, the father of the Lean Startup concept, says about Build-Measure-Learn feedback loop.

Lean Startup #4 Hypotheses Testing

Hypotheses are assumptions you and your team has about your product, customer and business model. Through hypotheses testing you have a structured approach to validate your assumptions.

During the Lean Startup approach this helps you to test your product as early as possible and learn as much as possible.

Video Prototyping

When you have an idea, one of the most practical but easiest ways to define and describe it for others is video prototyping. In video prototyping you usually simply use paper drawings and record a short video to visualize your idea.

The video prototype shows which user role (persona) wants to reach which goal with which benefit. Or also which problem is solved with which service or product. A step in between a user story and a video prototype can be a storyboard.

At the “rapid paper based video prototyping” the usage of a paper prototype with changing states is filmed in a way that the interaction and reaction manner of the system becomes clear. Basis for that is a screen flow.

Source: D-Labs

A list of tasks that should be accomplished in video prototyping has been mentioned on the MediaLabAmsterdam website.

Here is an example of video prototype for a mobile app.

Business Model Canvas #3 Value Proposition

The Value Proposition is the reason why customers decide to use the product of one or another company. Every value proposition is a bundle of products or services that solves customer problems or fulfils needs. Some of these are new innovative offers and others are existing products but with a new feature.

Values can be quantitative (e.g. price, efficiency) or qualitative (e.g. customer experience, design):

 

Business Model Canvas #4 Channels

The channels block describes how a company reaches and claims its customer segments to deliver value. Communication, distribution and sales channels form the interface between a company and its customers. Channels are customer touch points that play an important role in the customer experience. They fulfill various functions, that can also be described in five different phases:

  • Awareness
  • Evaluation
  • Purchase
  • Delivery
  • After Sales

One channel can cover some or all of these phases.

Questions to ask: Through which channels would the customer segments want to be reached? How are our channels integrated? Which ones work best? Which are the most cost effective? How are the channels integrated into customer routines?