Description of the Business Development Bank's BMI program and how it helps Canadian SMEs. Presentation made at the Feb. 2019 Montreal Lean Startup Circle meetup.

1. L’innovation par le modèle d’affaires
Business Model Innovation
Février/February 2019

2.  Notre prochaine rencontre sera le 28 mars, chez OVH, Nous ferons
un atelier sur Comment faire une entrevue exploratoire
 Our next meetup on March 28th at OVH will be a workshop on How
to do a discovery interview

3. Rita
Jean-Philippe
Jo
Gabriel
ÉricLorentz

4. BDC at
a glance
February 2019
Barb Stegemann
Founder and CEO
7 Virtues

5. 5
Agenda
Who we are
Why we exist
What we do

6. 6
Who we are
01.
Canada’s development bank

7. 7
We are the bank of
entrepreneurs
We’re the only bank devoted
exclusively to entrepreneurs
We know their markets and
understand their needs
We’re there at every stage
of their business journey
1
2
3

8. 56,000
Canadian
entrepreneursstories

9. Canada’s
first certified
B Corp bank

10. 10
Why we exist
Entrepreneurship is big in Canada
02.

11. Small and medium-sized
businesses
in Canada
99.7%
of Canadian
companies
are SMEs
97.9%
1-99
EMPLOYEES
1.8%
100-499
EMPLOYEES
0.3%
500+
EMPLOYEES
SOURCE: Key Small Business Statistics, June 2016,
Innovation, Science and Economic Development Canada

12. 12
We take pride in the success
of our clients who:
15%
of our clients
are exporters
$314B
in annual revenues
920,000
Canadians
Employ Generate Export

13. 13
What we do
Supporting Canadian
entrepreneurship for
close to 75 years
03.

14. 14
BDC offers to entrepreneurs
Advisory services
Financing
Capital

15. 15
Making a difference
SOURCE: Statistics Canada. This chart shows the percentage point difference between growth among clients and growth among non-clients with
similar characteristics between 2009 and 2012.
BDC clients who accessed both financing and advisory services reported:
74.
percentage points
Higher sales and employment
growth than non-clients

16. 16
Drive concrete resultManage more efficiently
Expert advice to help entrepreneurs
overcome key challenges
 Strategic planning
 Financial management
 Human resources management
 Technology consulting
 Leading change
 Sales and marketing strategies
 Digital strategies
 International expansion
 Operational efficiency
 Certification (ISO, HACCP)

17. $200M
Women in Tech
Venture Fund

18. 18
Free
business
advice
on
bdc.ca

19. bdc.ca | 1-888-INFO-BDC
BDC
BDC_ca
BDC
Thank you.
Valérie Judd-Rohal
Client Partner
Advisory Services
514-409-9864
valerie.judd-rohal@bdc.ca

20. 20
Anna Walkowiak - BDC
Conseillère d’affaires, Innovation – Services-
conseils | Business Advisor, Innovation – Advisory
Services

21. Business Model
Innovation
Reinvent your business
to seize new
opportunities

22. 22
Agenda
1
2
3
Why innovate business model?
BDC business model innovation
program
Case study: Coloridé Inc.

23. 23
Why innovate
business model?
01.

24. TOP 10
Business
mistakes Building something
nobody wants1
2
4
3
Hiring
poorly
Lack
of focus
Fail to execute
Sales & Marketing
05 Not having the
right co-founder 7.9%
06 Chasing investors,
not customers 5.4%
07 Not making sure you have
enough money 3.3%
08 Spending too
much money
09 Failing to ask for help
10 Ignoring social media
SOURCE: Strategyzer | 100firsthints.com

25. 25
Benefit of business
model innovation
SOURCE: “Business Model Navigator” by Oliver Gassman, Karolin
Frankenberger & Michaela Csik (2014), p. 4
Innovation
potential
Time
Product Innovation
Process Innovation
Business Model Innovation
Additional
competitive
advantage

26. 26
Best moments
for business model
innovation
Inability to keep pace with
changes in your industry and
digital technologies
Evidence of commoditization or
declining industry margins
Bring new technologies,
products, or services to market
Create entirely new market
React to market disruption
1
2
3
4
5

27. Businesses with
low digital maturity
25%
of them have seen
sales plummet
in the last three years
Study: Digitize Now: How to make the digital shift in your business,, Oct. 2018.

28. 28
60% 50% 42%
Manufacturers
who adopted
digital
technologies
saw real benefits
Boosted their
productivity
Reduced
operating costs
Improved overall
product quality
Study: Industry 4.0: Are you ready for the new Industrial Revolution?, May 2017.

29. 29
Canadian businesses’
level of digital maturity
Technocentric
Advanced
LOW VERY HIGH
VERY HIGH
DIGITAL CULTURE
DIGITAL INTENSITY
LOW
Conservative
Techno-shy
57%
14%
10%
19%
Study: Digitize Now: How to make the digital shift in your business,, Oct. 2018.

30. What is Business Model Innovation?
Impacts at least two of the four components
SOURCE: Strategyzer
8. Key partners 7. Key activities 2. Value
propositions
4. Customer
relationships
1. Customer
segments
→ Who are our key
partners?
→ Who are our key
suppliers?
→ Which key resources
are we acquiring from
partners?
→ Which key activities
do partners perform?
→ What key activities do
our value propositions
require? Our
distribution channels?
Customer
relationships?
Revenue streams?
→ 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?
→ What type of
relationship does each
of our Customer
Segment expect us to
establish?
→ Which ones have we
established?
→ How costly are they?
→ For whom are we
creating value?
→ Who are our most
important customers?
6. Key resources 3. Channels
→ Through which channels
do our customer
segments want to be
reached?
→ How are we reaching
them?
→ Which ones are most
cost-efficient?
→ What key resources
do our value
proposition require?
Our distribution
channels? Customer
relationships? revenue
streams?
9. Cost structure 5. Revenue streams
→ What are the most important costs inherent in our business model?
→ Which key resources are most expensive?
→ Which key activities are most expensive?
→ 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 revenues?

31. What is the JTBD?
Focusing on new value

32. 32
BDC business
model innovation
program
02.

33. 33
Internal: Shrinking sales & margins
External: Strong competitors,
price wars, old products/services
possible market disruption
Pioneering CompanyStruggling Company
New innovation: New product,
service, technology and/or market
Reset business: Next wave of growth
but not in financial distress
When do companies innovate their
business model?

34. Business Models in existing
companies
Business Model
Innovation in Existing
Companies

35. 35
BDC’s Business Model Innovation
Explore Experiment Scale
Design a scalable business model
and implement in project sprints
while monitoring progress
Test rapidly and inexpensively the
potential of selected business model
prototype with real clients and
markets to generate evidence and
learn how to design a new business
model
Assess current business model and
value proposition, and prototype
alternative business models to seize
new market opportunity or solve
pressing problems
Drive change and minimize risk in 1-to-3 steps
Teaching Training Coaching

36. 36
Experimentation minimizes risk
$ $
$
$
$
$
$
$
progress
uncertainty
search execute
Customer discovery
(jobs, pains, gains)
Customer validation
(products, services)
Customer creation
(end-user demand)
Company building
(scalable model)
spending

37. 37
Experimentation starts
with customers
SOURCE: Strategyzer
ADAPTABILITY

38. 38
Three things in life are certain: death, taxes, and the fact
that today’s business model will not work tomorrow.
Conclusion
Company
needs new
business model
At some point
- sales decline
- struggle to attract new talent
- products are obsolete
- customers’ tastes change, or
- technology makes you
uncompetitive

39. Business Model Innovation
Concrete results for clients
Explore Experiment Scale
 Targeted % increase of
addressable market and
potential new clients
 Targeted % increased
revenue from new VP
(new product, segments)
 Targeted % reduced cost
and cycle time through more
efficient BM
 Technology IP
 Investors ready
 (In)Validated market
demand for new VP
(including new technology)
 (In)Validated feasibility and
profitability of scalable BM
 Leadership alignment
around the future of
business model
 Confirmed business model
readiness for new
technology or new ventureConcrete
results
BMI
Phase

40. 40
Mme Guylaine Millette,
Directrice Générale de
Coloridé Canada

41. bdc.ca
1-888-INFO-BDC
BDC
BDC_ca
BDC
For information on the
BDC BMI program
contact
Anna Walkowiak
Anna.Walkowiak@bdc.ca
Ellen Krispis
Ellen.kispis@bdc.ca

42. 42
Tous

43. 43
 What's your name?
 Favorite ice cream?
 One minute pitch
 What your product/service does
 Who is it for?
 What need is it fulfilling?
 How will your company make $
 What stage is it at now?
 How can we help?
We Wanna Know/On veut savoir
 Quel est ton nom?
 Crême glacée préférée?
 Pitch en 1 minute
◦ Produit ou service que tu
développes
◦ Marché-cible?
◦ Quel besoin remplit-il?
◦ Comment ton entreprise fera son
$
 À quelle étape es-tu rendu?
 Comment peut-on t’aider?

44. 44
 – Lean Startup Circle - Montreal
 - Lean Startup Circle – Montreal
 - @MTLeanStartup
 - Montreal Lean Circle
 - MTLLeanStartup
 - https://leancircle.slack.com/messages/montreal/
 Courriel/email - mtlleanstartup@gmail.com