1. The document describes a concept development workshop hosted by VicHealth to generate ideas to reduce harmful alcohol consumption in Victoria.
2. The workshop covers topics like business model canvases, lean startup methodology, design thinking, and analyzing consumption data to understand the problem. Participants will work on developing their ideas and business models.
3. The goal is for participants to leave with an initial business model canvas for their idea to submit to VicHealth, with insights into testing and improving their concept before the selection panel.
2. welcome
DAVID HOOD
@DavidAHood
JULIAN WATERS-‐LYNCH
@jwaterslynch
join the conversa1on on twi2er with
@VicHealth
@DoingSomeGood
#VHinnov
doing
something good
3. SCHEDULE
morning a(ernoon
9:00 AM Welcome & Check-‐in 1:05 PM BMC #6: Key Resources &
BMC #7: Key Ac@vi@es
9:20 AM What makes a good idea? 1:45 PM BMC #8: Key Partnerships &
BMC #9: Cost Structure
9:45 AM Intro to Business Models &
Business Model Canvas
2:15 PM Social Impact Metrics
10:10 AM BMC #1: Customer Segments 2:30 PM Lean Experiments
10:35 AM MORNING TEA 3:00 PM Preparing for the Panel
10:55 AM BMC #2: Value Proposi@ons &
BMC #3: Channels
3:25 PM Wrap Up & What’s Next
11:45 AM BMC #4: Customer Rela@onships &
BMC #5: Revenue Streams
3:30 PM CLOSE
12:35 PM LUNCH
4. purpose
1. for you to leave with a first go of your Business Model
Canvas in hand
> final version to be submiGed to VicHealth by …
2. ideas and insights in to how you can test and improve
your concept
3. ideas and insights in to how you can prepare for you panel
interview 12 January
5. People don’t buy what you do they
buy why you do it. ~ Simon Sinek
9. CHECK IN
1.What was the most useful or interesRng aspect of:
1.1. Simon Sinek’s TEDTalk on why we should “start with
why”?
1.2.the Strategyzer series of videos on the Business Model
Canvas?
1.3.the Drinking Related Lifestyles research summary?
10. CHECK IN
2. Out of what was covered in the pre-‐workshop content,
what, if anything, would you like to spend more Rme on
today?
11. CHECK IN
3. What’s one other thing you’d like to leave here with
today?
12. “If I had an hour to
solve a problem I
would spend 55
minutes thinking
about the problem
and five minutes
thinking about
solu?ons.”
17. the five phases of
design thinking
http://thinkingofdesign.blogspot.com.au/
18. "Lean Startup" is a system for developing
a business, product or service in the
most efficient way possible to reduce the
risk of failure.
It is an approach that treats all ideas as
having assumpRons (or hypotheses) that
must be validated by rapid
experimentaRon in the marketplace. The
approach relies on scienRfic
experimentaRon, iteraRve product
releases, and customers feedback to
generate validated learning.
19. The key is to idenRfy
assumpRons -‐ would
people actually buy or do
this? Not by building the
whole product, but by
building a Minimum
Viable Product (MVP).
The MVP is the most basic
version of your product
that is valuable to your
user, that will enable you to
test and learn.
20.
21. shaping great ideas
Start with
why
Why are you doing this? What is the situaRon you want to change or the
problem you’re trying to solve? Why is it important? What might the situaRon
look like if you’re successful? Why do you believe it’s possible?
the context 1 What do we know about the current situaRon? What is its impact on
Build your understanding of
individuals, society and the planet? Who does it effect most? What are the
possible causes?
Iden@fy your target
audience
Who is your target audience? Who are you solving this problem for? Of them,
who is looking for a soluRon? Who believes that another way, a new way, is
possible? Be specific. Go beyond demographics.
audience 3 Seek to understand the values and needs of your target audience so you can
Get to know your target
design the best soluRon for them. What are their aspiraRons? What moRvates
them? Develop user personas and user journeys to provide valuable insights.
Iden@fy the problem you
are solving
How does your idea help your target audience to get what they need or what
they value? How does it help them to overcome challenges and barriers?
Prototype and
test ideas
Gain insights into customers’ needs by designing and deploying the smallest
amount of funcRonality possible (AKA your minimum viable product/service).
Evolve the soluRon based on insights provided by engaged early adopters.
1
2
3
4
5
6
22. People don’t buy what you do they
buy why you do it. ~ Simon Sinek
23. ‣ why: belief, moRvaRon or
purpose
‣ how: experience or process
‣ what: details of product of
service
24. Excessive alcohol consump?on creates
mul?ple social and health problems for
individuals and society, and is one of the
top 10 avoidable causes of disease and
death in Victoria.
25. The social cost of alcohol-‐related harm in
2007–08 in Victoria was $4.3 billion. This
includes direct costs associated with, for
example, road accidents, health care,
crime and violence, and indirect costs
such as loss of workforce labour and for
educa?on and research resources.
26. While most of us (78% of Australians)
agree that we have a problem with
alcohol, only 25% of drinkers believe
that their drinking behaviour is cause
for concern.
27. People don’t buy what you do they
buy why you do it. ~ Simon Sinek
28. ‣ why: belief, moRvaRon or
purpose
‣ how: experience or process
‣ what: details of product of
service
29. Excessive alcohol consump?on creates
mul?ple social and health problems for
individuals and society, and is one of the
top 10 avoidable causes of disease and
death in Victoria.
30. The social cost of alcohol-‐related harm in
2007–08 in Victoria was $4.3 billion. This
includes direct costs associated with, for
example, road accidents, health care,
crime and violence, and indirect costs
such as loss of workforce labour and for
educa?on and research resources.
31. While most of us (78% of Australians)
agree that we have a problem with
alcohol, only 25% of drinkers believe
that their drinking behaviour is cause
for concern.
33. Consumption
Risky drinking by young adults
60
50
40
30
20
10
0
18-24 year olds 25-29 year olds
2001 2004 2007 2010 2013
34. Consumption
But...
60
50
40
30
20
10
0
18-24 year olds 25-29 year olds 40-49 year olds 50-59 year olds 60-69 year olds
2001 2004 2007 2010 2013
35. Harm trends
Generally increasing harm rates over the past decade
(although road injuries and deaths are steady)
70
60
50
40
30
20
10
0
Hospital admissions Ambulance attendances Treatment episodes
Assault Family incidents Emergency Department
2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13
36. Conclusions
Victorian and Australian alcohol trend data provides a
confusing picture:
- Reasonable evidence of harm increases
– Generally stable levels of consumption, which obscure:
• Major reductions in teenage drinking
• Declines in risky drinking, particularly among young adults
• Some slight increases in drinking among older people
– Big shifts in attitudes towards alcohol
Little evidence to explain these changes
– Increased public health presence in media coverage of
alcohol may be driving or reflecting changes in public attitudes
37. who is your target audience?
Not everyone is your target audience.
In a world where there is compeRRon for the Rme, aGenRon and money of the
people you are seeking to engage, you need to make sure you know exactly who
you are developing your idea for.
The more complete the picture you have of your target user/customer/audience,
the easier it is to both develop your product or service and market it.
38. the innovaAon challenge
VicHealth are looking for bold new ideas for campaigns,
programs, services and other iniRaRves that help change
Victorian drinking culture by either:
1. reducing the amount Victorians drink, parRcularly those
who already drink heavily, or
2. increasing the acceptability of saying no to a drink, or
drinking a bit less.
39. Alcohol
Discovery &
Insights Forum
The spectrum of
acceptable behaviour
Typical
Drinking
normal
behaviour
Consumption of alcohol
Abstaining
extreme, odd &
infrequent
behaviour
Alcohol Discovery & Insights Forum
Getting Drunk
common practice
Binge
Drinking
extreme & "
“a youth issue”
Acceptable behaviour
Only abstinence from alcohol and binge drinking are seen as extreme
behaviours
40.
41. Alcohol
Discovery &
Insights Forum
The Initiator
• Outgoing and the ‘life of the party’!
• Loves to have a drink and let loose!
• Drinks to have fun!
• Gregarious and outgoing and loves
to make things happen – often
encourages others to drink!
• Likes to be a source of information
on alcohol brands, types of drinks
and places to go out!
The Protector
Alcohol Discovery & Insights Forum
The Moderator
!
The Follower
• Fun, social and easy-going!
• Influenced by social and cultural
pressures!
• Tends to join in and go with the
flow!
• Gets swept up in the moment and
enjoyment of social situations
Drinking
Identities &
Characteristics
42.
43.
44. Alcohol
Discovery &
Insights Forum
The Initiator
• Outgoing and the ‘life of the party’!
• Loves to have a drink and let loose!
• Drinks to have fun!
• Gregarious and outgoing and loves
to make things happen – often
encourages others to drink!
• Likes to be a source of information
on alcohol brands, types of drinks
and places to go out!
The Protector
Alcohol Discovery & Insights Forum
The Moderator
!
The Follower
• Fun, social and easy-going!
• Influenced by social and cultural
pressures!
• Tends to join in and go with the
flow!
• Gets swept up in the moment and
enjoyment of social situations
Drinking
Identities &
Characteristics
45. Alcohol
Discovery &
Insights Forum
What drives the Initiators?
Mavenism / Ego
Seeking Self Enhancement
Social expectations
Alcohol Discovery & Insights Forum
Hedonism
Brand loyalty
Coping with Depression
Easy access to alcohol
Cheap Prices
Building Confidence
Question: How can I create fun without using Alcohol as a starting point?
46. Alcohol
Discovery &
Insights Forum
What drives the Followers?
Achievement Values
Cheap Prices
Seeking Self Enhancement
Mavenism / Ego
Alcohol Discovery & Insights Forum
Hedonism
Easy access
Brand loyalty
Question: How can I join in but not be lead astray so easily?
47. understanding your target audience
1. Do they need and will they value what you are offering?
2. What problem are you solving for them and are they looking for a soluRon?
3. Where are they looking for a soluRon to their problem?
4. How would they prefer to engage with you and access what you are offering?
5. What are they willing to pay?
6. What might they need to know? About you, the issue, your offering?
7. What other offerings are out there compeRng for the same audience? How
are you different from them.
48. The Business
Model Canvas
A shared language for describing, visualizing,
assessing, and changing business models
49. Having a great idea doesn't guarantee success.
A great business idea must also have a great
business model to support and sustain it.
Alex Osterwalder
50. Def_Business Model
A business model describes
the raRonale of how an
organisaRon creates, delivers,
and captures value.
Source: Business Model Generation
51. and it’s not just about business…
• lean impact
• impact canvas
• about learning
• making sustainable
• key principles are the same:
human-‐centred and crea?ng value
53. The Business Model Canvas is a tool for
you to design, analyse, test and
describe your business model and how
your organisaRon intends to create,
deliver, and capture value in a profitable
way.
54.
55.
56. Business Model Canvas
1. customers
4. relation
3. channels
2. value
7. activities
6. resources
9. costs 5. revenues
8. partners
http://www.businessmodelgeneration.com
57. Business Model Canvas
1. customers
4. relation
3. channels
2. value
the value reaches
the customers
through channels
http://www.businessmodelgeneration.com
value - customer
communication
58. Business Model Canvas
2. value
7. activities
6. resources
8. partners
Those contribute
creating value
http://www.businessmodelgeneration.com
59. Business Model Canvas
7. activities
6. resources
earnings = revenues - costs
1. customers
9. costs 5. revenues
8. partners
Customers
pay
Creating value
costs money
Earnings
should be
greater than
zero
http://www.businessmodelgeneration.com
60. Business Model Canvas
7. activities
6. resources
earnings = revenues - costs
1. customers
4. relation
3. channels
2. value
9. costs 5. revenues
8. partner
http://www.businessmodelgeneration.com
61. blended value / triple bottom line
social and environmental costsocial and environmental benefit
62.
63. PATTERNS FREE AS A BUSINESS MODEL
98
Skype offers an intriguing example of a free-mium
pattern that disrupted the telecommuni-cations
sector by enabling free calling services
via the Internet. Skype developed software by
the same name that, when installed on comput-ers
or smartphones, enables users to make calls
from one device to another free of charge.
Skype can offer this because its Cost Structure
is completely different from that of a telecom
carrier. Free calls are fully routed through
the Internet based on so-called peer-to-peer
technology that employs user hardware and
the Internet as communications infrastructure.
Hence, Skype does not have to manage its own
network like a telco and incurs only minor costs
to support additional users. Skype requires very
little of its own infrastructure besides backend
software and the servers hosting user accounts.
Users pay only for calling landlines and
mobile phones through a premium service called
SkypeOut, which offers very low rates. In fact,
users are charged only slightly more than the
termination costs that Skype itself incurs for
calls routed through wholesale carriers such as
iBasis and Level 3, which handle the company’s
network traffi c.
KP KA CS
Skype claims it has over 400 million reg-istered
users who have made more than 100
billion free calls since the company was founded
in 2004. Skype reported revenues of U.S. $550
million in 2008, though the company and its
owner, eBay, do not release detailed fi nancial
data including information on profi tability. We
may soon know more as eBay has announced
plans to list Skype through an initial public
offering (IPO).
Skype
payment
providers
distribution
partners
telco partners
software
development
free internet &
video calling
cheap calls to
phones
(skypeout)
mass customized
web users
globally
people who want
to call phones
software
developers
software
skype.com
headset
partnerships
software development
complaint management
free
skypeout pre-paid or subscription
hardware sales
Skype
VP CR
CH
KR
C$ R$
Over 90 percent of Skype
users subscribe to the free
service
Paid SkypeOut calls
account for less than
10 percent of total usage
64. PATTERNS FREE AS A BUSINESS MODEL
99
KP KA CS
Skype is a voice calling
services company operat-ing
under the economics
of a software company
Skype disrupted the telecommunications
industry and helped drive voice communica-tion
costs close to zero. Telecom operators
initially didn’t understand why Skype would
offer calls for free and didn’t take the company
seriously. What’s more, only a tiny fraction
of the traditional carriers’ customers used
Skype. But over time more and more customers
decided to make their international calls with
Skype, eating into one of the most lucrative
carrier revenue sources. This pattern, typical of
a disruptive business model, severely affected
the traditional voice communication business,
and today Skype is the world’s largest provider
of cross-border voice communication services,
according to telecommunications research
fi rm Telegeography.
maximum
outsourcing
software devel-opment
and no
network mainte-nance
roughly similar
voice oΩer
automated mass
customization
global reach
without the
limitations of a
network
no
infrastructure
software
distribution 100%
low cost chan-nels
cost structure of a software company
90% free usage
10% paying
Skype versus Telco
Giving away software
and allowing customers
to make free Skype-to-
Skype calls costs the
company little
5+ years old
400 million+ users
100 billion+ free
calls generated
2008 revenues of
U.S. $550 million
VP CR
CH
KR
C$ R$
68. The Customer Segments Building Block
defines the different groups of people or
organisaRons an enterprise aims to
reach and serve.
69. Customer Segments
There are different types of market segments:
1. Mass market
2. Niche market
3. Segmented
4. Diversified
5. MulR-‐sided planorms (or mulR-‐sided markets)
70.
71.
72. Alcohol
Discovery &
Insights Forum
The Initiator
• Outgoing and the ‘life of the party’!
• Loves to have a drink and let loose!
• Drinks to have fun!
• Gregarious and outgoing and loves
to make things happen – often
encourages others to drink!
• Likes to be a source of information
on alcohol brands, types of drinks
and places to go out!
The Protector
Alcohol Discovery & Insights Forum
The Moderator
!
The Follower
• Fun, social and easy-going!
• Influenced by social and cultural
pressures!
• Tends to join in and go with the
flow!
• Gets swept up in the moment and
enjoyment of social situations
Drinking
Identities &
Characteristics
73. Key QuesRons
1. For whom are we creaRng value?
2. Who are our most important customers?
74. @ps
Customer groups represent separate segments if:
• Their needs require and jusRfy a disRnct offer
• They are reached through different DistribuRon Channels
• They require different types of relaRonships
• They have substanRally different profitabiliRes
• They are willing to pay for different aspects of the offer
75. acAvity
1. Which market segment are you targeRng?
2. Is there a parRcular niche within that market segment that
you are targeRng? What is it?
76. Empathy
is not just about walking
in another's shoes.
First you must
remove your own.
77. next…
• develop 2-‐3 personas for each of your customer segments
• idenRfy what they value & idenRfy what problems they have
• idenRfy the barriers they face to changing their drinking behaviour
• map out a typical day in the life for each customer segment that
involves alcohol
• what is their usual rouRne?
• what are their habits?
> IdenRfy when and where are they more likely to engage with you/
your offering.
78. what are personas?
Personas are ficRonal representaRons of your target
audience that help you to understand them beGer. Well
thought out and well researched personas make it easier for
you to design and deliver services that meet your target
audience’s specific needs and expectaRons, while addressing
their unique challenges and communicaRng in their language.
The strongest personas are based on market research in
combinaRon with insights gathered through conversaRons,
surveys and interviews with your target audience.
79. Market Segment
Name
Gender
Age
Nationality
Location
Relationship Status
Children
Employer
Position
Income
Background Routine & Behaviour
Goals & Motivations Challenges & Constraints
Ideal Experience
Persona Creator powered by UsabilityTools 1
80.
81. What’s their history in
relaRonship to drinking?
Who and what has shaped
their current behaviour?
What’s their rouRne in
relaRon to socialising and
drinking? Daily, weekly,
monthly, annually?
What are their personal
goals around health,
wellbeing and happiness?
What moRvates them?
What are the challenges
they face to changing their
drinking behaviour? What are
the constraints/barriers?
What sort of experience are
they looking for? What sort
of interacRon do they want
to have with others/you?
What sort of thing might
you expect them to say
about their ideal experience
and why they love it?
82. SCENARIO
Persona: Scenario:
getting ready arrive depart fall asleep
POINT OF
DECISION
ENABLING
CONDITION
POTENTIALH
URDLE
84. The Value Proposi@ons Building Block
describes the bundle of products and
services that create value for a specific
Customer Segment.
85. Value Proposi@ons
Elements from the following non-‐exhaus?ve list of quan?ta?ve
or qualita?ve values can contribute to customer value crea?on:
1. Newness
7. Price
2. Performance
8. Cost reducRon
3. CustomizaRon
9. Risk reducRon
4. “Gesng the job done”
10. Accessibility
5. Design
11. Convenience/Usability
6. Brand/status
86. “I drink”
so that I can
Means Values Ends Values
• Fit in with everyone else
• Feel connected to others
• Be the life of the party
• Experience adventure
• Have a great night
• Relax
• Overcome my inhibiRons
• Forget my worries
87.
88. In other words…
What experiences do your users want to
have?
What experiences do they want to avoid?
89. Key Ques@ons
1. What value do we deliver to the customers or users?
2. Which one of our customer’s problems are we helping to
solve?
3. Which customer needs are we saRsfying?
4. What bundles of products and services are we offering to
each Customer Segment?
90. Simple Fix for Blown Head Gaskets
Repairs Blown Head Gaskets in
Just One Hour
91. Tips
• Make it as plain as day
• Use your customer’s language. How would they describe
the benefits themselves?
• Strengthen your case
• Customer tesRmonials
• Assurance
• Social proof
96. The Channels Building Block describes
how a company communicates with and
reaches its Customer Segments to
deliver a Value ProposiRon.
97. Channels
Channels serve several funcRons, including:
• Raising awareness among customers about a company’s
products and services
• Helping customers evaluate a company’s Value ProposiRon
• Allowing customers to purchase specific products and
services
• Delivering a Value ProposiRon to customers
• Providing post-‐purchase customer support
107. “The key is help them take baby steps”
grind it
out
tiny
habits
http://www.behaviormodel.org/
108. Key Ques@ons
1. Through which Channels do our Customer Segments
want to be reached?
2. How are we reaching them now?
3. How are our Channels integrated?
4. Which ones work best?
5. Which ones are most cost-‐efficient?
6. How are we integraRng them with customer rouRnes?
109. Ac@vity
Create a user journey map for each of your personas:
• What touch points do they have with you?
• Where are you best able to give them maximum value on
(i.e. a great experience)?
• Which ones might be cosRng you a good deal but not
providing much value for customers?
• Which ones could you potenRally create a lot more value
through without much effort or resources?
112. The Customer Rela@onships Building
Block describes the types of
relaRonships a company establishes with
specific Customer Segments.
113. Customer Rela@onships
RelaRonships can range from personal to automated.
Customer relaRonships may be driven by the following
moRvaRons:
1. Customer acquisiRon
2. Customer retenRon
3. BoosRng sales (upselling)
114. Customer Rela@onships
We can disRnguish between several categories of Customer
RelaRonships, which may co-‐exist in a company’s relaRonship
with a parRcular Customer Segment:
1. Personal Assistance
115. Customer Rela@onships
We can disRnguish between several categories of Customer
RelaRonships, which may co-‐exist in a company’s relaRonship
with a parRcular Customer Segment:
1. Personal Assistance
2. Dedicated Personal Assistance
116. Customer Rela@onships
We can disRnguish between several categories of Customer
RelaRonships, which may co-‐exist in a company’s relaRonship
with a parRcular Customer Segment:
1. Personal Assistance
2. Dedicated Personal Assistance
3. Self-‐service
117. Customer Rela@onships
We can disRnguish between several categories of Customer
RelaRonships, which may co-‐exist in a company’s relaRonship
with a parRcular Customer Segment:
1. Personal Assistance
2. Dedicated Personal Assistance
3. Self-‐service
4. Automated services
118. Customer Rela@onships
We can disRnguish between several categories of Customer
RelaRonships, which may co-‐exist in a company’s relaRonship
with a parRcular Customer Segment:
1. Personal Assistance
2. Dedicated Personal Assistance
3. Self-‐service
4. Automated services
5. CommuniRes
119. Customer Rela@onships
We can disRnguish between several categories of Customer
RelaRonships, which may co-‐exist in a company’s relaRonship
with a parRcular Customer Segment:
1. Personal Assistance
2. Dedicated Personal Assistance
3. Self-‐service
4. Automated services
5. CommuniRes
6. CocreaRon
120.
121. Key Ques@ons
1. What type of relaRonship does each of our Customer
Segments expect us to establish and maintain with them
2. Which ones have we established?
3. How costly are they?
4. How are they integrated with the rest of our business
model?
122. customer development principles
1. There Are No Facts Inside Your
Building, So Get Outside
2. Failure is an Integral Part of the
Search for the Business Model
3. IteraRons and Pivots are Driven by
Insight
4. Validate Your Hypotheses with
Experiments
5. Success Begins with Buy-‐In from
Investors and Co-‐Founders
6. No Business Plan Survives First
Contact with Customers
7. Not All Startups Are Alike
8. If it’s not About Passion, You’re
Dead the Day You Opened your
Doors
9. Preserve Cash While Searching.
Ayer It’s Found, Spend
10.Communicate and Share Learning
http://steveblank.com/2012/03/29/nail-the-customer-development-manifesto/
124. The Revenue Streams Building Block
represents the cash a company
generates from each Customer Segment
(costs must be subtracted from revenues
to create earnings).
125. Revenue Streams
A business model can involve two different types of Revenue
Streams:
1. TransacRon revenues resulRng from one-‐Rme customer
payments
2. Recurring revenues resulRng from ongoing payments to
either deliver a Value ProposiRon to customers or provide
post-‐purchase customer support
126. Key Ques@ons
• For what value are customers willing to pay?
• How much are they willing to pay?
• How do they want to pay?
• How will you price your product or services? Will it be a one off
purchase? Will their be Rered pricing structure? Will it be fixed,
variable or subscripRon?
• What are other sources of revenue? How much do they
contribute to overall revenue?
128. Revenue Streams
There are several ways to generate revenue:
1. Asset Sale
2. Usage Fee
129. Revenue Streams
There are several ways to generate revenue:
1. Asset Sale
2. Usage Fee
3. SubscripRon Fees
130. Revenue Streams
There are several ways to generate revenue:
1. Asset Sale
2. Usage Fee
3. SubscripRon Fees
4. Lending/Leasing/RenRng
131. Revenue Streams
There are several ways to generate revenue:
1. Asset Sale
2. Usage Fee
3. SubscripRon Fees
4. Lending/Leasing/RenRng
5. Licensing
132. Revenue Streams
There are several ways to generate revenue:
1. Asset Sale
2. Usage Fee
3. SubscripRon Fees
4. Lending/Leasing/RenRng
5. Licensing
6. Brokerage fees
133. Revenue Streams
There are several ways to generate revenue:
1. Asset Sale
2. Usage Fee
3. SubscripRon Fees
4. Lending/Leasing/RenRng
5. Licensing
6. Brokerage fees
7. AdverRsing
134. Revenue Streams
There are several ways to generate revenue:
1. Asset Sale
2. Usage Fee
3. SubscripRon Fees
4. Lending/Leasing/RenRng
5. Licensing
6. Brokerage fees
7. AdverRsing
8. Freemium
135. Revenue Streams
There are several ways to generate revenue:
1. Asset Sale
2. Usage Fee
3. SubscripRon Fees
4. Lending/Leasing/RenRng
5. Licensing
6. Brokerage fees
7. AdverRsing
8. Freemium
9. Crowdfunding
136. Fixed Menu Pricing
Pricing Mechanisms
Predefined prices are based on static variables
Dynamic Pricing
Prices change based on market conditions
List price Fixed prices for individual products, services,
or other Value Propositions
Negotiation
(bargaining)
Price negotiated between two or more partners
depending on negotiation power and/or negotiation skills
Product feature
dependent
Price depends on the number or quality of
Value Proposition features
Yield management Price depends on inventory and time of purchase
(normally used for perishable resources such as hotel
rooms or airline seats)
Customer segment
dependent
Price depends on the type and characteristic
of a Customer Segment
Real-time-market Price is established dynamically based on supply
and demand
Volume dependent Price as a function of the quantity purchased Auctions Price determined by outcome of competitive bidding
137. Payment
Providers
Distribution
Partners
Telco
Partners
Software
Development
Software
Developers
Software
Free Internet &
Video Calling
Cheap Calls to
Phones
(SkypeOut)
Mass
Customized
Skype.com
Headset
Partnerships
Web Users
Globally
People Who
Want to Call
Phones
Software
Development
Complaint
Management Free
SkypeOut Pre-
Paid or
Subscription
Hardware
Sales
Diagram from Alex Osterwalder, Business Model Generation
139. Key Ques@ons
• What knowledge, skills, material, human and other
resources will you need to deliver your:
•Value proposiRon?
•DistribuRon channels?
•Customer relaRonships?
•Revenue streams?
143. Key Ques@ons
• Who will you partner with?
• Who can help you fill any resource gaps or help you
provide greater value to customers?
• Who can provide distribuRon or markeRng channels to
help you reach your target audience?
• What key acRviRes might they deliver?
145. Key Ques@ons
• How much will it cost to iniRally develop the value
proposiRon?
• What are the most important costs?
• What’s the cost of your MVP?
• What key resources and acRviRes are most expensive?
152. What are your assumpAons?
What assumpRons do you have about your target audience or the
product or service you are developing?
1. Does your target audience need what you’re offering? Does
it solve a problem that they are looking for help with?
2. Will they want to engage with you to solve that problem?
3. Will they pay what you’re asking?
4. Will they want to access it how and where you’re offering it?
5. Do you know that they will use your offering in the way that
it’s intended?
176. “By the ?me that product is ready to be
distributed widely, it will already have
established customers.”
177. the right way to do lean research
• Right quesRons: Make sure you know what you need to
know
• Right people: Talk to people like your users
• Right test/methodology: SomeRmes prototypes,
someRmes Wizard of Oz
• Right place: When do you go onsite?
• Right astude: Listen, don’t sell
• Right documentaRon: Record!
http://boxesandarrows.com/the-right-way-to-do-lean-research/
181. tesRng your business model
1. Are there customers who will buy what you sell? What evidence
do you have?
2. Who are your compeRtors? Not just for similar products but for
funds, Rme, aGenRon?
Why would customers use your product or service instead of the
compeRRon? How different are you from the compeRRon?
How will you respond to new compeRRon?
182. tesRng your business model
3. Is this financially viable/sustainable?
4. Is this replicable and/or scalable? How will you increase
your reach or impact?
185. what makes a great pitch?
1. Start with why.
1. What’s the problem you’re solving.?
2. Why is it important?
3. What’s the impact? Use memorable facts, figures, anecdotes and
metaphors.
2. What’s your soluRon?
3. Who’s your audience?
4. What do they value?
5. How is your idea different from others out there?
186. what makes a great pitch?
6. Who are you partnering with?
7. What are you building on that already exists?
8. Where are you in the stage of implemenRng your idea?
9. What do you need to take the next step?
10. How can we help you get there? What would you like us to do?
11. Share your passion.
12. Finish with your tagline.
187. thank you
DAVID HOOD
@DavidAHood
JULIAN WATERS-‐LYNCH
@jwaterslynch
join the conversa4on on twi6er with
@VicHealth
@DoingSomeGood
#VHinnov
doing
something good