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The Business Model
                 Canvas
                 6 April 2013
       The Escape School – Startup MBA


www.rapidinnovation.co.uk
David Gates               Jessica Tayenjam
              @davidrig81               @jessicatayenjam




                            @rapidinnovation



www.rapidinnovation.co.uk
I’ve got my BMC … Now what?


                                TEST
                              ITERATE
                              VALIDATE

  www.rapidinnovation.co.uk
How do I test my BMC?

‘A working hypothesis is a hypothesis that
   is provisionally accepted as a basis for
further research in the hope that a tenable
     theory will be produced, even if the
         hypothesis ultimately fails’
                              ‘Working hypothesis’ Wikipedia




  www.rapidinnovation.co.uk
How do I test my BMC?
1. Define what you’re testing
  – Articulate your proposition
  – Define your information
    requirement




  www.rapidinnovation.co.uk
How do I test my BMC?
2. Decide who to test it on
  – ‘Customer Segments’
  – Industry stakeholders / 3rd parties
  – Industry experts




  www.rapidinnovation.co.uk
How do I test my BMC?
2. Decide who to test it on
Key questions
  – Are all customers created equal?
  – What mix of views do I need to represent?
  – How big of a sample size do I need?




  www.rapidinnovation.co.uk
www.rapidinnovation.co.uk
BRAND



                     GOOD MERCHANDISING



                            SUSTAINABLE SALES

www.rapidinnovation.co.uk
EFFICIENCY



                            EFFECTIVENESS



www.rapidinnovation.co.uk
2008
www.rapidinnovation.co.uk
www.rapidinnovation.co.uk
ASSETS

            VISUAL RECORD

www.rapidinnovation.co.uk
www.rapidinnovation.co.uk
www.rapidinnovation.co.uk
INNOVATION




                     IMPROVED ASSET KNOWLEDGE




                    INCREASED ASSET VALUE AND LOWER COSTS



www.rapidinnovation.co.uk
WORKING SESSION




www.rapidinnovation.co.uk
www.rapidinnovation.co.uk
www.rapidinnovation.co.uk
www.rapidinnovation.co.uk
www.rapidinnovation.co.uk
www.rapidinnovation.co.uk
www.rapidinnovation.co.uk
www.rapidinnovation.co.uk
MODEL                        STRUCTURE               LEVEL
How we price                     When we charge      How much we charge
Time and materials               In advance          Value-based
Success-based                    In arrears          Cost plus
Freemium                         At each use         Disruptive to market
Subscription                                         Premium vs competition
License plus maintenance
Utility
Per site
Per user (can be
subcategorised)
Modular


     www.rapidinnovation.co.uk
WORKING SESSION




www.rapidinnovation.co.uk
How do I test my BMC?
3. Bring together steps 1 and 2
  – Identify the specific people you want to test
    it on




  www.rapidinnovation.co.uk
How do I test my BMC?
3. Bring together steps 1 and 2
  – Identify the best means of engagement




  www.rapidinnovation.co.uk
How do I test my BMC?
3. Bring together steps 1 and 2
  – Identify the people you want to test it on
  – Define the best means of engagement
  – Craft your approach




  www.rapidinnovation.co.uk
How do I test my BMC?
3. Bring together steps 1 and 2
  – Identify the people you want to test it on
  – Define the best means of engagement
  – Craft your approach
  – Get in touch!




  www.rapidinnovation.co.uk
Some of this ‘testing’
    may also be the first
     step towards your
        early sales!

www.rapidinnovation.co.uk
How do I iterate my BMC?
• Your Business Model Canvas is never finished!
• Revisit every time you have a significant
  amount of new data




                     Look up XoomPark’s slideshare presentation for a good example of iteration




  www.rapidinnovation.co.uk
How do I validate my BMC?




  www.rapidinnovation.co.uk
Rapid Innovation Group

                                Find
                             Your Model
                                 Build
                            Your Capability
                               Realise
                              Your Value

www.rapidinnovation.co.uk

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Testing, Iterating and Validating Your Business Model Canvas

  • 1. The Business Model Canvas 6 April 2013 The Escape School – Startup MBA www.rapidinnovation.co.uk
  • 2. David Gates Jessica Tayenjam @davidrig81 @jessicatayenjam @rapidinnovation www.rapidinnovation.co.uk
  • 3. I’ve got my BMC … Now what? TEST ITERATE VALIDATE www.rapidinnovation.co.uk
  • 4. How do I test my BMC? ‘A working hypothesis is a hypothesis that is provisionally accepted as a basis for further research in the hope that a tenable theory will be produced, even if the hypothesis ultimately fails’ ‘Working hypothesis’ Wikipedia www.rapidinnovation.co.uk
  • 5. How do I test my BMC? 1. Define what you’re testing – Articulate your proposition – Define your information requirement www.rapidinnovation.co.uk
  • 6. How do I test my BMC? 2. Decide who to test it on – ‘Customer Segments’ – Industry stakeholders / 3rd parties – Industry experts www.rapidinnovation.co.uk
  • 7. How do I test my BMC? 2. Decide who to test it on Key questions – Are all customers created equal? – What mix of views do I need to represent? – How big of a sample size do I need? www.rapidinnovation.co.uk
  • 9. BRAND GOOD MERCHANDISING SUSTAINABLE SALES www.rapidinnovation.co.uk
  • 10. EFFICIENCY EFFECTIVENESS www.rapidinnovation.co.uk
  • 13. ASSETS VISUAL RECORD www.rapidinnovation.co.uk
  • 16. INNOVATION IMPROVED ASSET KNOWLEDGE INCREASED ASSET VALUE AND LOWER COSTS www.rapidinnovation.co.uk
  • 25. MODEL STRUCTURE LEVEL How we price When we charge How much we charge Time and materials In advance Value-based Success-based In arrears Cost plus Freemium At each use Disruptive to market Subscription Premium vs competition License plus maintenance Utility Per site Per user (can be subcategorised) Modular www.rapidinnovation.co.uk
  • 27. How do I test my BMC? 3. Bring together steps 1 and 2 – Identify the specific people you want to test it on www.rapidinnovation.co.uk
  • 28. How do I test my BMC? 3. Bring together steps 1 and 2 – Identify the best means of engagement www.rapidinnovation.co.uk
  • 29. How do I test my BMC? 3. Bring together steps 1 and 2 – Identify the people you want to test it on – Define the best means of engagement – Craft your approach www.rapidinnovation.co.uk
  • 30. How do I test my BMC? 3. Bring together steps 1 and 2 – Identify the people you want to test it on – Define the best means of engagement – Craft your approach – Get in touch! www.rapidinnovation.co.uk
  • 31. Some of this ‘testing’ may also be the first step towards your early sales! www.rapidinnovation.co.uk
  • 32. How do I iterate my BMC? • Your Business Model Canvas is never finished! • Revisit every time you have a significant amount of new data Look up XoomPark’s slideshare presentation for a good example of iteration www.rapidinnovation.co.uk
  • 33. How do I validate my BMC? www.rapidinnovation.co.uk
  • 34. Rapid Innovation Group Find Your Model Build Your Capability Realise Your Value www.rapidinnovation.co.uk