13 0709 webinar business model canvas & launchpad central

Cleantech Open2013 Webinar Series

Tuesday, July 9, 2013

2 Cleantech Open Confidential Information – All Rights Reserved

Welcome to the National Webinar Series

• With the Cleantech Open since 2007• Mentor Chair 2007 - 2008• Executive Director 2008 - present

MC: Rex Northen,Executive Director, Cleantech Open

http://www2.cleantechopen.org/wp-content/uploads/2013/03/225_Northen.jpg


Global Partner


National Sponsors

#cleantechopen


Thank You To All Our Sponsors!


The Summer Program – July – September 2013

Date Time (PDT)

Session I – Worksheets Time (PDT)

Special Topic Sessions

7/9 1:30 to2:30pm Business Model Canvas (Review) 2:45 to

4:00pm LaunchPad Central (Review)

7/16 1:30 to2:30pm Product/Market Fit 2:45 to

4:00pm Systems Review, PR 101

7/23 1:30 to2:30pm Markets and Getting to Them 2:45 to

4:00pm Term Sheets

7/30 1:30 to2:30pm Product/Technology Validation 2:45 to

4:00pm IP Licensing from 3rd Parties

8/6 1:30 to2:30pm Financials Analysis & Planning 2:45 to

4:00pmAlternative Sources of Funding - Grant Writing / Crowd Sourcing

8/13 1:30 to2:30pm Legal Environment, Issues and Risks 2:45 to

4:00pm Cap Tables

8/20 1:30 to2:30pm Management Team 2:45 to

4:00pm Working with the Utilities

8/27 1:30 to2:30pm Sustainability 2:45 to

4:00pmTell Your Story, Sell Your Story (Communicating value to stake holders)

(9/11) 1:30 to2:30pm

Investor PresentationMentor Assessment

2:45 to4:00pm

Mock Judging, Regional Awards, Global Forum


Session 1: Business Model Canvas

1:30pm – 2:30pm, PDT

• 30 year technology industry veteran, having run global businesses based in USA and Asia

• With University of Phoenix for 30 years• Currently a practitioner Lead Faculty for Strategy in the School of

Business

Speaker: Niraj Kohli President, CSC

Cleantech Open

Business Models for Cleantech Early Stage Enterprises

By Niraj Kohli - University of Phoenix

Cleantech Open Webinar 1 – Business Model

Copyright (c) 2013 University of Phoenix. All rights reserved. Reproduction in copies, distribution to others, preparation of modified or derivative works, or sublicensing others without express written consent of University Phoenix is prohibited.

University of Phoenix webinars include content from: businessmodelgeneration.com and from Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers [ISBN: 978-0-470-87641-1] by Alexander Osterwalder and Yves Pigneur, (hereafter referred to as the “Work”). Copyright © 2010 by Alexander Osterwalder and Yves Pigneur. All rights reserved. Used by arrangement with John Wiley & Sons, Inc. Unless John Wiley and Sons, Inc.’s (“Publisher”) express prior written permission is obtained, it is prohibited to (a) remove or alter the author’s name, Publisher’s copyright notices, or other means of identification or disclaimers as they appear in the Work; (b) make electronic copies of the Work other than as permitted pursuant to Section 1.1 of Agreement between Publisher and Apollo Group, Inc. “(Apollo”); (c) mount or distribute any part of the Work on any electronic network (including without limitation, the Internet and the World Wide Web) other than the Sites; (d) use all or any part of the Work for the purposes of monetary reward by means of sale, resale, loan, transfer, hire, or other form of distribution of the Work; (e) distribute the whole or any part of the Work to anyone other than Authorized Registrants (as defined in the Agreement between Publisher and Apollo; (f) publish, distribute, or make available the Work, works based on the Work or which combine it with any other material, other than on the Sites as expressly permitted in this Agreement between Publisher and Apollo.

This workshop is a 60-minute webinar on Business Models for Cleantech Early Generation Enterprises presented as part of the Cleantech Open Webinar Series. The presentation focuses on all areas of the Business Model Canvas.

businessmodelgeneration.com


Business Model Worksheet and Judging CriteriaWorksheets

• What is a Business Model?

• How to Get it Right

• Why the Business Model Canvas?

• Key Components

• Testing through Customer Interviews

Judging Criteria

• Business Model Canvas

• How clearly understood and articulated is the business model?

• How credibly has the team assessed the challenge of fitting into the value chain?


How to Get Business Model Right?

Focus on Value Creation!


Business Models

Business Model Canvas

Allows the components of the business model to take on a visual representation while using a shared language to describe these key features.



Business ModelsSun Edison- Created Value



Business ModelsSun Edison – Captured Value


Cleantech Open Webinar 1 – Business Model (Canvas)

(VP)VALUE

PROPOSITIONS

(CH)CHANNELS

(CR)CUSTOMER

RELATIONSHIPS

(CS)CUSTOMER SEGMENTS

(R$) REVENUE STREAMS (C$) COST STRUCTURE

(KP)KEY

PARTNERSHIPS

(KR) KEY

RESOURCES

(KA) KEY

ACTIVITIES

Customer view – Front StageOperations view- Back Stage

Economics view – Business Performance Stage


Customer View – Front Stage


Customer Segments – Unique groups differentiated by:• Industry• Segment• Sub Segment• Application• Functionality• Size• Other

Test Hypotheses with interviews in several segments:

1. Product Value Proposition Hypothesis2. Customer Hypothesis3. Channel/Pricing Hypothesis4. Demand Creation Hypothesis5. Market Type Hypothesis6. Competition Hypothesis


Business Models

Customer Segments

For whom are we creating value?

Who are our most important customers?



Business Models

• Consumer• Industrial• Automotive• Energy Generation• Green Energy Solar, Wind etc• Wastewater• Real Estate • Commercial HVAC

Cleantech Examples

• EcoFactor – Home Analytics

• Flo Design – Wind Power

• Archimoto – Low cost Electric Vehicle

• Rentricity - Excess Pressure to Renewable Energy

• Regenergy365- Energy from Wastewater

• Power Assure – Dash Board Management

• Sun Edison – Simplifying Solar


Business ModelsCustomer Relationships

Customer Relationships

What type of relationship does each of our customer segments expect us to establish and maintain with them?

Which ones have we established?

How are they integrated with the rest of our business model?

How costly are they?



Business Models

Channels

Channels

•Communication channels—How customers learn of the product or service.•Value delivery channels--How value is delivered to customers.•Hybrid channels—A combination of communication and delivery, e.g. packaging or branded outlets.



Business ModelsValue Propositions

Value Proposition

What value do we deliver for our customers?

Which one of our customer’s problems are we helping to solve?

Which customer’s needs are we satisfying?



Business Models Value Propositions

what does taking a “customer perspective” really mean?



Business Models

Value Propositions

What a company has to offer its customers that separates it from its competitorsValue the customer perceives that makes it worthwhile to buy the company’s product or service.

What makes your company, it’s products or its services unique?

What benefits does your product or service offer?

Operations View – Back Stage


Business Models

Key Partners

Who are our key partners?

Who are our key suppliers?

Which Key Resources are we acquiring from partners?

Which Key Activities do partners perform

Key Partnerships



Business ModelsKey Resources

Key Resources

What key resources do our Value Propositions require? Our Distribution Channels? Customer Relationships? Revenue Streams?


Cleantech OpenBusiness Models Workshop by University of Phoenix

Business Models

Key Activities

What key activities do our Value Propositions require? Our Distribution Channels? Customer Relationships? Revenue Streams?

Key Activities


Economic View – Business Performance Stage


Business ModelsRevenue Streams

Revenue Streams

For what value are our customers really willing to pay?For what do they currently pay?How are they currently paying?How would they prefer to pay?How much does each revenue stream contribute to overall revenue



Business ModelsCost Structure

Cost Structure

What are the most important costs inherent in our business model?

Which Key Resources are most expensive? Which Key Activities are most expensive?



businessmodelgeneration.combusinessmodelgeneration.com


What will your Canvas look like?

Session 1 Q&A

Accelerating Your BusinessLive and Breathe the Worksheets


Worksheet Work – Week 7/9 - 7/16

• Conduct at least 30 customer discovery interviews (total including those you’ve conducted to-date). Complete your first draft of both the Business Model Canvas and the Product Market Fit Worksheet by next Tuesday’s Webinar, July 16 – Q&A session then. Both available at:http://wiki.cleantechopen.com/accelerator-wiki/Username: Semifinalist2013 Password: Semifinalist2013

• Keep your Worksheets in Word form for now – and sense check with your mentors

• Be ready with advanced drafts of all Worksheets by the first Business Clinic in your region

• Remember: all Worksheets, 1-page Executive Summary and first draft Investor Pitch all need to be uploaded by Sep 10

http://wiki.cleantechopen.com/accelerator-wiki/

http://wiki.cleantechopen.com/accelerator-wiki/


Worksheet Work – Week 7/16 - 7/23

• Are your Product/Market Fit Interviews & Business Model Canvas Complete?

• What’s the Value Proposition?• What’s your first targeted Customer Segment? Size? Trends?• What’s the Second? Third? Total Market Size?• Address the other Business Model Questions• Address Markets & Getting To Them Questions


TEAM FOCUS FOR WEEK OF AUGUST 1

Prepare for Business Clinics

Address Product/Technology Validation Worksheet (Wiki)

Complete Product/Market Fit Worksheet (Wiki)

Complete Business Model Canvas and Worksheet (Wiki)

Complete Markets and Getting to Them Worksheet (Wiki)

Begin (or continue) to develop Financials Worksheet (Wiki)

Contact Your Mentor or Regional Mentor Chair With All Questions

Session 2 will start at 2:45pm PDT3:45pm MDT, 4:45pm CDT, 5:45pm EDT


Session 2: LaunchPad Central Revisited

2:45pm – 4:00pm, PDT

• With the Cleantech Open National Academy for 3 years

Speaker: Rex RighettiNational Academy Team Member

Launchpad Central


Agenda

• The Value of Customer Discovery – Kent Cavender-Bares• Cohort Analysis – Where we stand• Review the Basics • Ask the right questions• Pitfalls• Questions


Kent Cavender-Bares

Launching high-tech ag robotics company

• RowBot Systems – Monitor, feed and protect crops with small, automatic machines

• Midwest North - Summer 2013


Kent Cavender-Bares

• When/Why did you start using LPC

• Switching from Udacity to CTO

• 1 on 1 with Steve Blank

• Major Pivots

• Other insights

• Privacy


Cohort Analysis – Where we stand


Current Standings

• Average Hypotheses - 15.9 per team• Average Customer Interviews - 2 per team• Hypotheses Validated to Invalidated Ratio - 1:1

• Average Pivots 2.9 per teamJohn C. Krzywicki,

Principal, True North Venture Partners

Vinesh Mehta, Business Development, Suntulit


Review the Basics

• Views (Canvas , Discovery Narrative , Scorecard)• Engage Your mentor (messaging)• Add and Edit

– Anchor to customer segments– Test your Hypothesis– Interviews


Ask the right Questions

Avoid the *Would you be interested in a lower cost material?**That cannot pass code and safety standards (this is what you want to talk about!!!!)

Know your AudienceIndividual – Are you ever frustrated when using your current keyboard, what causes those frustrations? (get information about them)

Large Company – What internal process do you use for evaluating licensing proposals.

Measurable QuestionsWould you like to pay less for Gas?What price point would motivate you to change your behavior?

Dig Deep, Open QuestionsWhat else would motivate you to change your behavior?What requirements must be meet before you consider change?

Use the silence


Pitfalls

• Make contact– Most people find it difficult – Don’t substitute the right interview for the easy one– Get both

• My customer doesn’t know what's good for them?– If they don’t know your product is good for them, why would they

buy it?• Know who your customer is!• Privacy

Session 2 Q&A

Reminders


Reminders

• Work on your worksheets – keep up each week, it will make it easier

• Complete webinar survey you will automatically receive from Webex – we want your feedback

• Next webinar is Tuesday, July 16th

– Check your Accelerator wiki http://wiki.cleantechopen.com/accelerator-wiki/2013-webinars/

– Session 1: Product/Market Fit - 1:30pm to 2:30pm, PDT• Speaker: Niraj Kohli, President, CSC• Be sure to send in your top 3 expectations you have for the next

worksheet webinar. Link is in the July 16th Session 1 webinar– Session 2: PR 101 - 2:45pm-4:00pm, PDT

• Speaker: Jeff Hecht, Corporate Journalist and Senior Copywriter, Apollo Group

http://wiki.cleantechopen.com/accelerator-wiki/2013-webinars/