lachapelle design analyse change business-atlantic nov 2014

Designing,

Analysing &

Changing

Business

BA World Atlantic, November 2014Michael Lachapelle

Business Model Fulcrum

1

Objectives

Business model canvas as a common language and a tool

The job-to-be-done as a way to understand customer outcomes

Value proposition canvas as a tool to discover customer insights

2

3

Let me introduce you to….

Bob…

he’s been a BA for 15 years,loves his job

now he has to write a BRD for a complex business…

… but he is really confusedabout what the clients want

He keeps meeting with groups from different parts of the business

It’s enough to make a grown analyst cry

If there was only some way to

help them tell their story….

…so he could understand what

they need to support the business

Busines

s Model

Canvas

Building

Blocks

CUSTOMER SEGMENTS

images by JAM

Who are your customer / clients

VALUE PROPOSITIONS

images by JAM

How do you satisfy the customer’s needs

CHANNELS

images by JAM

How do you connect to your customers

CUSTOMER RELATIONSHIPS

images by JAM

How do you support and engage customers

REVENUE STREAMS

images by JAM

how and how much will the customers pay

KEY RESOURCES

images by JAM

what are the key resources needed

KEY ACTIVITIES

images by JAM

what things need to be done - who will do them

KEY PARTNERS

images by JAM

who could help us

COST STRUCTURE

images by JAM

how much will we need to run the business

customer

segments

key

partners

cost

structure

revenue

streamsdistribution

channels

customer

relationships

key

activities

key

resources

value

proposition

images by JAM

images by JAM

customer

segments

key

partners

cost

structure

revenue

streamsdistribution

channels

customer

relationships

key

activities

key

resources

value

proposition

OFFER

DISTRIBUTION

CHANNELS

CUSTOMER

RELATIONSHIPS

CUSTOMER

SEGMENTS

REVENUE STREAMSCOST STRUCTURE

KEY

ACTIVITIES

PARTNER

NETWORK

KEY

RESOURCES

THE BUSINESS MODEL CANVAS

buildingblock

building

block

building

block

building

block

building

block

buildingblock

building

block

buildingblock

building

block

building

blockbuilding

block

Business

Model

Dynamics

Flying a plane

Flying a plane

WEIGHT

LIFT

DRAG

THRUST

Flying a plane

WEIGHT

LIFT

DRAG

THRUST

KIVA Case Study

Key Partnerships Key Activities Value Propositions

Cost Structure Revenue Streams

Customer Relationships

Channels

Customer Segments

Free

participation

Reporting

on projects

Global - people

with available

funds

Method to lend

to poor

entrepreneurs

KIVA.org

Paypal

KIVA Case Study

Key Partnerships Key Activities Value Propositions

Key Resources

Cost Structure Revenue Streams

Customer Relationships

Channels

Customer Segments

Local Field

partners

Poor

entrepreneursMicro

finance

loans

Local field

partners

Reporting

on projects

Global - people

with available

funds

Method to lend

to poor

entrepreneurs

KIVA.org

Paypal

Free

participation

KIVA Case Study

Key Partnerships Key Activities Value Propositions

Key Resources

Cost Structure Revenue Streams

Customer Relationships

Channels

Customer Segments

Credits for

re-investing

Loan

interest

Reporting

on projects

Global - people

with available

funds

Method to lend

to poor

entrepreneurs

KIVA.org

Paypal

Local Field

partners

Poor

entrepreneursMicro

finance

loans

Local field

partners

Interest

payment to

local

partners

Free

participation

KIVA Case Study

Key Partnerships Key Activities Value Propositions

Key Resources

Cost Structure Revenue Streams

Customer Relationships

Channels

Customer Segments

Risk

management

Platform

managemen

t

Screening

partners

Reporting

on projects

Global - people

with available

funds

Method to lend

to poor

entrepreneurs

KIVA.org

Paypal

Local Field

partners

Poor

entrepreneursMicro

finance

loans

Local field

partners

Credits for

re-investing

Interest

payment to

local

partners

Free

participation

Loan

interest

KIVA Case Study

Key Partnerships Key Activities Value Propositions

Key Resources

Cost Structure Revenue Streams

Customer Relationships

Channels

Customer Segments

Network

effect

Risk

management

Community

of lenders

Platform

managemen

t

Screening

partners

Platform

Reporting

on projects

Global - people

with available

funds

Method to lend

to poor

entrepreneurs

KIVA.org

Paypal

Local Field

partners

Poor

entrepreneursMicro

finance

loans

Local field

partners

Credits for

re-investing

Interest

payment to

local

partners

Free

participation

Loan

interest

KIVA Case Study

Key Partnerships Key Activities Value Propositions

Key Resources

Cost Structure Revenue Streams

Customer Relationships

Channels

Customer Segments

Network

effect

Risk

management

Community

of lenders

Platform

Platform

managemen

t

Screening

partners

Partner

screening

Platform

Reporting

on projects

Global - people

with available

funds

Method to lend

to poor

entrepreneurs

KIVA.org

Paypal

Local Field

partners

Poor

entrepreneursMicro

finance

loans

Local field

partners

Credits for

re-investing

Interest

payment to

local

partners

Free

participation

Loan

interest

KIVA Case Study

Key Partnerships Key Activities Value Propositions

Key Resources

Cost Structure Revenue Streams

Customer Relationships

Channels

Customer Segments

Network

effect

Risk

management

Community

of lenders

Platform

Platform

managemen

t

Screening

partners

Partner

screening

Platform

Reporting

on projects

Global - people

with available

funds

Method to lend

to poor

entrepreneurs

KIVA.org

Paypal

Local Field

partners

Poor

entrepreneursMicro

finance

loans

Local field

partners

Credits for

re-investing

Interest

payment to

local

partners

Free

participation

Loan

interest

But… how does KIVA generate revenues for their business

KIVA Case Study

Key Partnerships Key Activities Value Propositions

Key Resources

Cost Structure Revenue Streams

Customer Relationships Customer Segments

Corporate

funders

Documented

social impact

Foundations

Positive CSR

profile

Grants &

funding

KIVA Case Study

Key Partnerships Key Activities Value Propositions

Key Resources

Cost Structure Revenue Streams

Customer Relationships

Channels

Customer Segments

Corporate

funders

Documented

social impact

Foundations

Positive CSR

profile

Reporting

& analysis

Applying

for grants

Program

delivery

data

Reporting

on projects

Grants &

funding

KIVA Case Study

Key Partnerships Key Activities Value Propositions

Key Resources

Cost Structure Revenue Streams

Customer Relationships

Channels

Customer Segments

Corporate

funders

Network

effect

Risk

management

Community

of lenders

Platform

Documented

social impact

Platform

managemen

t

Screening

partners

Partner

screening

Foundations

Positive CSR

profile

Reporting

& analysis

Applying

for grants

Program

delivery

data

Platform

Reporting

on projects

Global - people

with available

funds

Method to lend

to poor

entrepreneurs

KIVA.org

Paypal

Reporting

on projects

Local Field

partners

Poor

entrepreneursMicro

finance

loans

Local field

partners

Credits for

re-investing

Interest

payment to

local

partners

Grants &

funding

Free

participation

Loan

interest

Customer

Outcomes

“If I had asked my

customers what they

wanted, they would have

said a faster horse.”

"You can't just ask the

customers what they

want and then try to give

that to them. By the time

you get it built, they'll

want something new."

The driver of categorization

will be the outcomes

customers seek (jobs-to-be-

done) and the alternate ways

they can be metRita Gunther McGrath

The job, not the

customer, is the

fundamental unit

of analysisTony Ulwick

The famous fast

food milkshake

caseClayton Christensen

theshift

understanding customers by their characteristics

understanding customers by the outcomes

they want to achieve

FROM

TO

requires

Customer

Insight

we can better understand

the customer by

describing three things

what are the jobs this

person has to get done

what are the pains this

customer has – barriers to

getting the job done

What are the gains the

customer achieves getting the

job done – outcomes they

hope to get

What are the products &

services you are offering to

the customer

how your products & services

are killing your customers’

pains

how your products & services materialize

gains your customers expect, want, or desire

Job

Job

JobPAIN

GAIN

GAIN

GAIN

PAIN

PAINPAIN

PAIN

Inductive DesignUse our customer profile to build our offer

Deductive DesignHow well does our offer fit the customers

1

Objectives

Business model canvas helps you to describe and analyse business models

The job-to-be-done as a way to understand customer outcomes

Value proposition canvas as a tool to discover customer insights

2

3

You Tube Videos

Kiva – Michael Lachapelle

Explanation of the Kiva business modelhttps://www.youtube.com/watch?v=gLi8yIdHYbI

Job-to-be-done – Clayton Christensen

Explanation of the milkshake case study

https://www.youtube.com/watch?v=f84LymEs67Y

Business Model Canvas – Strategyzer

Explanation of the canvas building blockshttps://www.youtube.com/watch?v=wlKP-BaC0jA

Business Model Fulcrum

Thanks….

Michael Lachapellem - 613-447-3948e - michael@businessmodelfulcrum.comt - @mike_lachs - michael_lachapellel - http://ca.linkedin.com/in/michaellachapelle

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