Flashcards in L7, Business development Deck (48)
what is included in a business model?
1. value proposition
2. cusotme relationship
3. customer segments
4. revenue streams
6. key resources
7. cost structure
8. key partners
9. key activities
Describe the traditional business development process
2. product development
3. alpha/beta test
— But this assumes that both the customer problem and the product features are known.
— Works well for incremental development projects targeting existing customers
What is the problem with the traditional business development process?
— More innovation projects fail from lack of customers than from a failure of product development
—> we have no process to manage customer development
How could we manage customer development management?
The traditional product development
1. Customer discovery
2. customer validation
3. customer creation
4. company building
what is a company?
a business organization that sells a product or service in exchange for revenue and profit
how are companies organized?
companies are organized around business models
What is the difficulty with early stage innovation projects?
1. customer problem is unknown
2. product features are unknown
—> requires search
Questions to ask while analyzing customer segments?
1. Wo are the customers?
2. Are the customer different from the user?
3. Economic buyer?
4. Technical buyer?
What is meant by jobs to be done when analyzing customer segments?
1. Functional jobs
What functional job is your customer trying to get done?
—> what does t have to perform?
—> complete a specific task?
—> solve a specific problem?
2. Social jobs
What social jobs is your customer trying to get done?
—> trying to look good?
—> gain power?
—> gain status?
3. Emotional jobs
What emotional jobs is your customer trying to get done?
—> feel good?
What is meant by customer pains when analyzing customer segments?
What does your customer find too costly?
—> takes a lot of time
2. Feel bad
What makes your customer feel bad?
3. Under-performing current solutions
How are the current solutions under-performing for your customer?
—> lack of features
4. Negative social consequences
What negative social consequences does your customer encounter to fear?
—> loss of face
—> loss of power
—> loss of trust
—>loss of status
What is meant by customer gains when analyzing customer segments?
Which savings would make your customer happy?
What would make your customer 's job or life easier?
—> flatter learning curve?
—> more services?
—> lower cost of ownership
3. Positive social consequences
What positive social consequences does your customer desire?
—> look good
—> increase in power
—> increase in status
which three parameters could be analyzed in the customer segment part of the business model?
1. Customer jobs
A customer persona could be useful
Questions to answer with regards to value proposition in the business model?
1. What are you building?
2. What are your services and products?
3. How do they create value for the different customer segments?
What is meant by pain relievers when analyzing value proposition?
Can your service:
1. produce sevings?
2. Make your customers feel better?
3. Put an end to difficulties?
4. Wipe out negative social consequences?
What is meant by gain creators when analyzing value proposition?
Can the product:
1. Outperform current solutions
2. produce outcomes that go beyond their expectations
3. make your customer's job or life easier
4. create positive social consequences?
Describe market fit?
Market fit is to:
1. create products and services that solves the customer jobs
2. Have gain creators that create the gains the customer wants
3. Have the pain reliever that a create reduce the pains of the customer
What questions should be asked with regards to channels?
1. How do you want your product to get to customers?
—> through someone else?
—> bundled with other goods or services?
2. How does your customer want to buy your product from your channel?
—> the same day?
—> delivered and installed
—> bundled with there products
—> as a service
What questions should be asked with regards to customer relationships?
What relationship do you have with your customers?
1. personal assistance
2. dedicated personal assistance
3. self service
4. automated services
What questions should be asked with regards to revenue streams?
How do you make money?
— Revenue model + price
—> asset sales
—> intermediation fee
—> advertising sales
what is asset sale?
Sale of ownership
—> right to a physical product
describe subscription fee?
Fee for continuous access to a service
e.g. mobile subscription
what is usage fee?
— Usage fee=pay-per-use
— Fee is proportional to the usage of the service
—> bus card
—> pre-paid phonecards
Use the product for free: upsell/concersion
—> pay for premium
—> e.g. Spotify, dropbox, linked in, skype etc.
Describe payment through advertising
Fee paid by brands and companies to get in front of potential customers
Fee for temporary access to a good or service
Often found in marketplaces of various types, a fee for bringing two or more parties involved in a transaction
Fee for use of some IP
Questions to ask while analyzing key activities?
What activities must the business perform well?
Questions to ask while analyzing ke resources?
What assets are critical for the business?