Business Model Canvas Agenda 6:00 What is it? How is it useful to every business stage? Advantages over traditional Business Planning Linear vs. Design Thinking 3 Levels of the canvas Review of the nine segments

6:45 Hands on group work

7:15 The Elaborated Canvas Wrap Up

Domenick Celentano • Entrepreneurial Consultant – The Foodpreneur™

• Adjunct Professor – Entrepreneurship – Marketing

• Food & Beverage Expert About.com

Business Planning… Is this you?

Why is Business Planning… So Painful?

What is the Business Model Canvas?

• Visual

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• Structure

• Iterative

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Useful at Every Business Stage

•Startups • Begin here vs. the traditional business plan • Visually illustrates lateral thinking

• Tests Product – Market Fit • Creates Minimum Viable Product

Useful at Every Business Stage •Small Business Scaling • Typically do not understand their competition’s business model nor their own

• Reduces risk …mistakes of head to head competition, compete on price and developing “me too” products

• Illustrates need to constantly update business model, focusing on core competencies, creating value propositions that focus on the “white space” that larger entities can’t service.

Useful at Every Business Stage • Corporate • Learn how “lean startups” think and how markets have been disrupted through business ventures developing creative business models.

• Larger entities require divisions or teams to create a Business Case to obtain funding for projects and new product development and launch.

• Business Model Canvas, tools such as the Empathy Map and Value Proposition Canvas allow the corporate to create a Level III canvas that supports a Business Case presentation.

Advantages over Traditional Business Planning Business Model Canvas

Business Plans

Dynamic

Static

Focuses on the “planning”

Focuses on the “plan”

Adds 9 dimensions

Marketing, Operations and Financial Traditional linear thinking

Lateral Thinking Customer Insights, Ideation, Prototyping And Scenarios Allows prototyping the business model, testing the hypothesis at 3 levels

One Level

Advantages over Traditional Business Planning

Desirability

Feasibility

Viability

Advantages over Traditional Business Planning

Desirability

Feasibility

Viability

Canvas Levels • Napkin Sketch – Concept Development

• Elaborated Canvas – – – –

Opportunity Analysis Environmental Scan SWOT Market Segmentation

• Business Case – Examining Viability – Develop Scenarios – Business Case Development

Review of Nine Segments customer relationships key activities

value proposition

How You Make Money… Consists of these 9 Areas customer segments

key partners

revenue streams cost structure

key resources

Business Model Canvas Courtesy of Steve Blank and Alexander Osterwald PhD

channels

CUSTOMER SEGMENTS

Which customers and users are you serving? Which jobs do they really want to get done?

Mass Market Niche Market Segmented

Domenick Celentano and The Foodpreneur

VALUE PROPOSITIONS What value do we deliver to the customer? Which one of our customer’s problems are we helping to solve? What bundles of products and services are we offering to each Customer Segment? Which customer needs are we satisfying? Characteristics Newness Performance Customization “Getting the Job Done” Design Brand/Status Price Cost Reduction Risk Reduction Accessibility Convenience/Usability

What is the “job” we are getting done for them? Do they care? Domenick Celentano and The Foodpreneur

CHANNELS Through which Channels do our Customer Segments want to be reached? How are we reaching them now? How are our Channels integrated? Which ones work best? Which ones are most cost-efficient? How are we integrating them with customer routines?

Path to Purchase

Awareness

Physical

Marketing

Interest / Evaluation

Trial / Purchase

Domenick Celentano and The Foodpreneur

Post Purchase

CUSTOMER RELATIONSHIPS

What relationships are you establishing with each segment? Personal? Automated? Acquisitive? Retentive? Domenick Celentano and The Foodpreneur

REVENUE STREAMS

What are customers really willing to pay for? How? Are you generating transactional or recurring revenues? Domenick Celentano and The Foodpreneur

KEY RESOURCES

Which resources underpin your business model? Which assets are essential? Domenick Celentano and The Foodpreneur

KEY ACTIVITIES

Which activities do you need to perform well in your business model? What is crucial? 24 Domenick Celentano and The Foodpreneur

KEY PARTNERS

Which partners and suppliers leverage your model? Who do you need to rely on? Domenick Celentano and The Foodpreneur

COST STRUCTURE

What is the resulting cost structure? Which key elements drive your costs? Domenick Celentano and The Foodpreneur

key activities

value proposition

customer relationships

key partners

customer segments

cost structure

revenue streams

key resources

channels 27

Domenick Celentano and The Foodpreneur

images by JAM

Hands On Group Work

Let’s Have Some Fun Customer Relations

Value Proposition

Customer Segments

Distribution Channels

Value Proposition, Customer Segments, Distribution Channels Customer Relationships Support Domenick Celentano and The Foodpreneur

Sketch Out Your Business Model

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Sketch Out Your Business Model Select a Business Business You Are Working On… Business You Currently Work At… Any Business the Group is Familiar With…

Elaborated Canvas Business Case Canvas

!

Understanding the Customer Don’t we want a better understanding of what a customers is truly willing to pay for?

Check out the Slide Deck on Using the Empathy Map

Visual Storytelling

Visual Storytelling

Visual Storytelling • • • • • • •

Visual Storytelling Map the business model Draw Each Business Model Element Define the Storyline Tell the Story From the Customer Side From the Company Side

Prototyping

Scenarios Describe each scenario

Describe each scenario

Describe each scenario

Describe each scenario

Scenarios Pharma

The health patient

Reinventing pharma

Business as usual

My medicine

Key External Forces Key Trends

Industry Forces

Market Forces

Macro Economic Forces

Detailed SWOT Assessment of Each Block

Strengths

Weaknesses

Opportunities

Threats

key activities

value proposition

customer relationships

key partners

customer segments

You Are to Create Your Own Business Model!

cost structure

key resources

revenue streams channels 44

images by JAM

Domenick Celentano • 908-866-1366 • [email protected]

http://www.domenickcelentano.com/ http://www.thefoodpreneur/