Workshop delivered at Computers in Libraries 2015 (Washington, DC).
Session Description:
How can the popular tool from Business Model Generation be used to map library value? What insights or opportunities exist when we tweak one of the building blocks? This workshop helps to understand the interconnected parts of your organization and what can push people to think of different models that might be applied. Join our business thinking librarian and learn how to use business models that work for your community and create value propositions that you can sell to your stakeholders.
3. Agenda
๏ Business plans and models
๏ Business model canvas
๏ Customer profile map
๏ Value map
๏ Value propositions
4. Objectives
๏ Learn fundamentals of business model design
๏ Map different models for libraries
๏ Develop customer profiles
๏ Articulate a clear value proposition
9. Business Model Approach
built on
assumptions
(secondary data)
assumptions
considered
“facts”
“facts” are not
challenged or
altered
> > >
built on observation
(primary data)
assumptions
are
acknowledged
assumptions altered
based on new
learning
> > >
10. Business Model Approach
plan becomes
static (it is not
rewritten)
company-
centric
approach
productivity is
measured against
plan
> >
model continues to
be rewritten
(dynamic)
customer-
centric
approach
productivity is
measured by
performance
> >
24. Value proposition: Questions
๏ What value does the idea deliver?
๏ Which problem is being solved?
๏ Which needs will be satisfied?
๏ What bundles of products/services are offered
to each customer segment?
30. Customer relationships: Questions
๏ What type of relationship does each segment
expect?
๏ Which relationships have been established?
๏ How are they integrated with the rest of the
model?
32. Revenue streams
“...represents the cash a company generates
from each customer segment (costs must be
subtracted from revenues to create earnings).”
~BMG, p. 30
33. Revenue streams: Questions
๏ For what value are customers willing to pay?
๏ For what do they currently pay?
๏ How are they currently paying?
๏ How much does each revenue stream
contribute to overall revenue?
36. Key resources: Questions
๏ What key resources do your value propositions
require?
๏ distribution channels?
๏ customer relationships?
๏ revenue streams?
39. Key activities: Questions
๏ What key activities do your value propositions
require?
๏ distribution channels?
๏ customer relationships?
๏ revenue streams?
42. Key partners: Questions
๏ Who are the key partners?
๏ Who are the key suppliers?
๏ Which key resources do you need from
someone else?
๏ Which key activities do partners perform?
45. Cost: Questions
๏ What are the most important costs inherent in
our business model?
๏ Which key resources are most expensive?
๏ Which key activities are most expensive?
47. Business Model Canvas 101
๏ Start with the customer segments
๏ Create different value props for each segment
๏ Changes to one section affect other sections
๏ Cost and revenue balance on the value prop
51. Jobs
“Jobs describe the things your customers are
trying to get done in their work or in their life.”
~VPD
52. Jobs: Questions
๏ What is your customer trying to accomplish?
๏ What tasks do they need to perform at work or
at home?
๏ What is one thing that your customer absolutely
needs to accomplish?
53. Pains
“Pains describe anything that annoys your
customers before, during, and after trying to get
a job done or simply prevents them from getting
a job done.”
~VPD
54. Pains: Questions
๏ What are your customers frustrations and
annoyances?
๏ What keeps them up at night? What are their
big fears?
๏ What takes them too much time? costs too
much money? requires too much effort?
56. Gains: Questions
๏ Which savings would make your customers
happy? In terms of time, money or effort.
๏ What would make your customers’ lives easier?
๏ What do they dream about? Aspire to be?
60. Pain relievers: Questions
๏ What could you do to produce savings?
๏ What might make customers feel better?
๏ What could you do to solve under-performing
solutions?
61. Gain creators
Gain creators describe how you intend to
produce outcomes and benefits that your
customer expects and wants.
~VPD
62. Gain creators: Questions
๏ What could you do to exceed customer
expectations?
๏ How can you help your customers look good?
๏ What desires can you fulfill for them?
72. References
Blank, S. & Dorf, B. (2012). The Startup Owner’s Manual. Pescadero, CA:
K&S Ranch.
Osterwalder, A. & Pigneur, Y. (2010). Business model generation.
Hoboken, NJ: Wiley.
Osterwalder, A., Pigneur, Y., Bernarda, G. & Smith, A. (2014). Value
proposition design. Hoboken, NJ: Wiley.
Ries, E. (2011). The Lean Startup. New York: Crown Business.
Icons by: Maxim Basinski (aka vasabii) via Creative Market