workshop innovits i tutor entrepreneurs 2013 mizio
DESCRIPTION
Jobs to be done, lean startup , how to manage experiments, strategy and business modelsTRANSCRIPT
Innovits workshop Back to basics
27 novembre 2013 Stefano Mizio
Stefano Mizio
Steve Blank
Startup and established company
Stefano Mizio
Steve Blank
The Big Picture Business Model & Context
The Big Picture
Current Business Model
The Company
The Industry
The Market
Future Trends
Blue Ocean Framework •Unexploited Potential •Option Value •Value Curve •Buyer experience
Technology Regulatory Macro-economic Society Culture
Customer •Jobs to be done •Needs •Satisfaction
Market Segments •Volume/Growth rate •Revenue potential
Gaining insights
Future Business Model
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What does business model mean? • “A business model is simply the ‘way of doing
business’ that a firm has chosen: its entire system for
creating and providing consistent value to customers and
earning a profit from that activity, as well as benefit for its
broader stakeholders. It refers to the core architecture or
configuration of the firm, specifically how it deploys all
relevant resources (not just those within the company
boundaries), to create differentiated value for customers
at a profit…” (Davenport, T. H., M. Leibold and S. Voelpel (2006). Strategic Management in the Innovation
Economy. Publicis Wiley.)
• The business model is a company’s answer to the
question of how to make money in its chosen business. It
describes, “…as a system, how the pieces of a
business fit together” (Magretta, J. (2002). "Why Business Models Matter." Harvard Business
Review 80(5) May: 86-92.)
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What is a business model?
• The essence and main components
WHO WHAT HOW
is your customer?
do you offer your customers?
do you do this?
Markets
Customer Segments
Individual Customers
Products & Services
Solutions
Experiences
Create Value
Deliver Value
Capture Value
Delivering the Who, What and How in a concise message. Unique Value Proposition: a single, clear compelling
message that states why you are different and worth buying
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By Mark Sniukas
Who • People who want a quick bite to eat • Get in, order, get served quickly, get
out quickly again
What • Pre-made food prepared constantly according to demand
• Standard menus • Some variations allowed
How • Standardized processes • Central locations with high
frequencies • The key is to serve a maximum
number of people during a given time
McDonald’s
Business Model
By Mark Sniukas
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OFFER
CHANNELS
RELATIONSHIPS CLIENTS
REVENUE STREAMS COST CENTRES
KEY
PARTNER
KEY
RESOURCES
KEY
ACTIVITIES
Who‘s your customer?
Which
customer segments do you serve?
What‘s your offer?
Which „jobs to be done“
do you satisfy?
What‘s your relationship
to the customer?
What‘s your image?
How do you reach your customers?
How do you make money?
What is driving cost?
What are your core
activities and processes? What are
your main suppliers, partners
and alliances? What are your
main assets and
competencies?
The business model is a company’s answer to the question of how to make money in its
chosen business. It describes, “…as a system, how the pieces of a business fit together”
Your current business model Build a common language and understanding
By A. Osterlwalder Stefano Mizio
BMC Example: Telco
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JTBD fundamental problem in a given situation
that needs a solution
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When customers find that they need to get a job done, they
“hire” products or services to do the job.
MIT Sloan Management Review 2007 - Finding the Right Job For Your Product
The Innovator’s toolkit
Key components of a job statement
are an action verb, the object of the
action, and clarification of the context
in which the job is performed
Main jobs to be done, which describe
the task that customers want to
achieve.
Related jobs to be done, which
customers want to accomplish in
conjunction with the main jobs to be
done.
JTBD fundamental problem in a given situation
that needs a solution
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The Process
1 • Jobs to be done
2 • Value proposition
3 • Your Business Model
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JTBD: providing a
safer alternative for
scooter families.
Value Proposition:
offering an affordable,
safer, all-weather
alternative for scooter
families.
Business Model:
that goal required radical
changes in the cost
structure of making a Car.
You are standing on a Mumbai road on a rainy day and notice the
large number of motor scooters snaking precariously in and out
around the cars
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Value Proposition Canvas
Design Value Propositions that match your Customer's needs and
jobs-to-be-done and helps them solve their problems.
Goal: product-market fit
By A. Osterlwalder Stefano Mizio
Product-Market fit Jobs to be done:
•What functional jobs is your customer trying get
done? (solve a specific problem, complete a specific
ask)
•What basic needs is your customer trying to satisfy?
(communication,…)
•What emotional jobs is your customer trying to get
done? (feel good, security,…)
Pains (before, during and after getting the JTBD): •What does your customer find too costly?
•What makes your customer feel bad?
•How are current solutions underperforming for your customer?
•What are the main difficulties and challenges your customer encounters?
•What negative social consequences does your customer encounter or fear?
•What risks does your customer fear?
•What common mistakes does your customer make?
•What barriers are keeping your customer from adopting solutions?
Gains: •Which savings would make your customer happy?
•What outcomes does your customer expect and
what would go beyond his/her expectations?
•How do current solutions delight your customer?
•What would make your customer’s job or life
easier?
•What positive social consequences does your
customer desire?
•What are customers looking for?
•What do customers dream about?
•How does your customer measure success and
failure?
•What would increase the likelihood of adopting a
solution?
By A. Osterlwalder Stefano Mizio
Value Proposition Canvas
Which core beliefs you need to test with customers
(analgesics): How we are helping our customers with
their pains (for example: saving them some time thanks to the automatic generation of a shopping list or thanks to a home
delivery service)
(vitamins): How we provide benefits for our customers
(for example: helping them to save some money thanks to some discount coupons).
By A. Osterlwalder Stefano Mizio
The Journey
Andreas Klinger Stefano Mizio
Static and Dynamic merge
By A. Osterlwalder
WHAT are we
building and
WHY are we
buiding it
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There are no facts inside the building
Lean Startup 101
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Leaps of faith assumptions
The Value Hypothesis
The Growth Hypothesis
The Minimum Viable Product
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Data
Center
+ 1
backup
metod
Telecom /Cell
phones provider
Unreliable
electric grid
Sell
Data center fuel
availability
countries
have grid
problerms
Fuel
costs
Risk theft
of fuel
7/10
Developing
countries / no
reliable grid
DURATHON
Exploration
Stefano Mizio www.leanstartupmachine.com
The easiest version…
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BMC
VALUE
PROPOSITION
CHANNELS
RELATIONSHIPS CUSTOMERS
REVENUE STREAMS COST CENTRES
KEY
PARTNERS
KEY
RESOURCES
KEY
ACTIVITIES
Stefano Mizio
Strategy and Business Models
(Business Models)… But they don’t factor in one critical
dimension of performance: competition.
Sooner or later—and it is usually sooner—every enterprise
runs into competitors
P.B. Seddon – G.P. Lewis Strategy and Business Models: what’s the difference? Stefano Mizio
Value Curve theory (1)
Stefano Mizio W.C. Kim R. Mauborgne Blue Ocean Strategy
Value Curve theory (2)
Stefano Mizio W.C. Kim R. Mauborgne Blue Ocean Strategy
Nintendo Wii example
0
2
4
6
8
10
Sc
ori
ng
Factors of Competition
Industry Strategy Canvas
Nintendo
Game Industry
Stefano Mizio W.C. Kim R. Mauborgne Blue Ocean Strategy
Holistic Focus on three things
Agile Coaching Blog – David Bland Stefano Mizio