Business Modeling 101 - Using the canvas for business analysis mien v1.pptx

Business Modeling 101 – Using the Business
Model Canvas for Business Analysis
Columbus Brown, MBA
cbus@cb1492.com
@cb1492 #makeiteasynow
Join the Movement & Get This Presentation
www.makeiteasynow.com
Invest In YOUR Future with Performance Coaching
www.wazacoach.com

MAKE
IT
EASY
NOW

WHAT ARE WAZA?
©2015-2018, WAZA Consulting, LLC www.makeiteasynow.com

WAZA | Noun | [wah.zah]
1. Good form, technique
2. Consider, think, imagine
WHAT ARE WAZA?
Thinking techniques which solve issues keeping business leaders up at night
Meet Ovis

MAKE
IT
EASY
NOW
Moving from Parenting
to Partnership in
Business Relationships
Columbus Brown, MBA
Part I – Trading Places for Understanding
Part II - 5 Ways IT Acts Like Bad Parents
Part III – 5 Paths for Partnership

WAZA For Today!
1. Define the term “Business Model”
2. Draw a Business Model Canvas (BMC), describe the 9 Building Blocks
3. Describe key connection between Business Models and Innovation
4. See a practical example of BMC use with New Service Development

Favorite Recipe
 Name of something tasty (Value)
 Ingredients (Resources)
 Measurements (Costs/Revenue)
 Directions (Activities)
 Tools needed to make (Partners)

Where are the business models?

…….They are all business models

We are going to explore this one

Value - Definition
1. The regard that something is held to deserve; the importance, worth,
or usefulness of something.
2. A person's principles or standards of behavior; one's judgment of
what is important in life.

What do YOUR customers
value about you?

“..it’s about being
yourself in the moment
so you contribute what
only you can to others, to
add value in a way that
serves others”
Nilofer Merchant– The
Power of Onlyness: Make
Your Wild Ideas Mighty
Enough to Dent the World
www.nilofermerchant.com

Successful business models also
add value to employees &
communities beyond revenue
generation

Business Model - Definition
A way to describe the rational of how an organization:
Creates Delivers Captures Value

Business Model Canvas - Definition
A one page model that captures 9 key assumptions about the business
 Interactive
 Visual
 Scalable (napkin or whiteboard or work of art)
 Not a business plan – think agile vs. waterfall

Why do we need to understand Business Models
as Business Analysts and Project Managers?

“Just as a fish doesn't
know it is wet,
companies often can't
see or feel the very
opportunities where
they are swimming”
Pam Henderson –
Killing Ideas

Importance of Business Models
 Help your “clients” see opportunities they are swimming in
 Want to be the first call our clients make when they have a wicked problem
 Want to be known for encouraging innovation
 We want to provide our customers with frameworks for innovation
 Provide ways to help “clients”
 Simply capture ideas in a standard but scalable format
 Visually communicate ideas in a way that builds shared understanding
 Quickly iterate, explore, and diagnose these ideas

Importance of Innovation
Chief Engineer leaves Edison
Illuminating company in 1896 after
being encouraged by Thomas Edison to
experiment with automobiles.
Henry Ford
After selling his first video game at the age
of 12 for $500, later uses his $165M
fortune from selling Paypal to Ebay to
create electric car co. Tesla and
commercial space co. Space X.
Elon Musk
“While key industry changes seem to be driven by new products or technologies, industries are
disrupted by new ways of creating and delivering value
to customers, employees, and communities”

Connecting Business Models with Innovation
 Our customers today are now under constant attack from disruptive technology,
startups, and business model innovators
 Business Model Innovation enables us to help established firms*
 Tune up their current business model
 Determine if proposed ideas are a good cultural “fit”
 Leverage existing capabilities
 Create new models for departments, products/services, or new business
*Source - https://www.innovationmanagement.se/2014/03/10/how-to-do-business-model-innovation-for-the-established-firm/

Running with the Canvas

Ways to Use the Canvas
 Help understand typical business model for an industry
 Document their existing business model
 Develop a Brand New Product, Service, or Business
 Facilitate a session to develop corporate or departmental Strategy
 Elicit high level requirements for a New Product/Service when company silos prevent cross dept.
collaboration
 Recommend a New Service/Product based on Cultural fit or required Revenue
 Design/Modify a New Service or Product based on customer feedback or insights

Setting the pace with the Canvas

Business Canvas Session
Recommended Agenda
1. Discuss Business Model Canvas
Each team member should talk
through their intent and vision
using the Business Model
canvas.
2. Gain Consensus and A Clear
Point of View
Discuss which components of
each of the proposed BMCs
should be incorporated into
the go-forward approach for
building out your idea.
3. Get Familiar with the Environment
Think through key trends and
industry, market and macro-
economic forces that may or may
not impact your idea’s value
proposition.

Explore many Business Models
Complete the Business Model Canvas
 How Should we Complete the Canvas?
1. You should complete 2-4 canvases for your
idea – it’s okay to do multiple canvases per
person
2. In a large setting draw the canvas ahead of
time on self-stick easel pad paper and use
post it notes to capture ideas from the group.
Take a picture after the session for quick
distribution of results.
3. Another alternative is to capture live using a
PowerPoint template, but this is less
interactive
4. Work somewhat fast – rapid ideation and
reworking of ideas are keys here
5. You may complete online using
strategyzer.com (if ok with your client)


Where do I start in the canvas for
an innovation journey?

How to Tackle the Business Model Canvas
2. Resource Constraints
4. Customer Driven 5. Financially Driven
1. New Offer - Driven 3. Multiple Epicenter - Driven
These innovations are based
on customer needs, facilitated
access, or increases
convenience.
These innovations are driven
by revenue streams, pricing
mechanisms, or reduced cost
structure.
These innovations are driven
by multiple epicenters.
These innovations create new
value propositions
These innovations originate
from an org’s existing
infrastructure or partnerships.

Case Study – Comm. Bank– Broker Dealer
Deposits Project
 Problem Statement
 Design and Implement business transformation for New FDIC Deposit Service for Stock
Broker Dealer Customers to increase revenue for the Bank
 Challenges
 Evaluating new tech. & vendor to move potentially more than $100MM daily
 Risk & Regulatory concerns and legal contract development
 Designing new operations to meet new customer segment needs
 Banking vs. Investment operations execution speeds and decision cultures
 No end to end view of customer facing processes across departments

Deposits Project
 Approach
 Weekly sessions with key executive stakeholders to capture strategy bus. model design
over 2 month period
 Business Model Canvas was iterated as assumptions were tested
 Customer Empathy Mapping used to capture bus. requirements for operations
 Used Canvas to drive detailed policy and procedure workshops with SME’s

Broker Dealer - Deposits
Key Partners
Program Banks
Infrastructure & IP
Regulatory
Key Activities
Program Administration
-Bank of Last Resort
Manage Program Banks
Manage BD Deposits
Mitigate Risks
Meet Regulations
Value Proposition
Competitive
Rates on Deposits
Reduced risks
Replace MMF
Dedicated acct. mgr.
who understands
my business
Smooth operational
movement of funds
One point of contact, highly
trained and extremely
responsive
Customized reports to BD
Community (Credit interest
accrual)
Customer Relationships
Dedicated
personal assistance
Broker Dealer
Community
Involvement
Customer Segments
Broker Dealers
-Self Clearing
-Correspondent Clearing
Key Resources
Platform – Signature,
software, Risk, Payments,
Wires
People- Treasury Support,
Sales, Wires, Client reps.
$ Capital-Reserves & Mgmt.
approval
Channels
Word of Mouth
Relationship
Managers
Personal
Relationships
Cost Structure
People Costs (BD Group, Dep. Ops, Sig. Services, RM’s, RA’s)
One Time Implementation Costs (Project/Legal/Training/Marketing)
Fee sharing with Key Partners
% on total assets
Monthly Bank Monitor Fee
Platform Costs
Revenue Streams
Revenue from Source Level Fees
Revenue DDA
Revenue Money Market
Service Fees
www.businessmodelgeneration.com

Deposits Project
Business Model Blueprint
Used the Canvas to:
▪ Understand customer base
▪ Maxwell Profit
▪ Determine value to customer
▪ Determine factors for financial model
spreadsheet

Deposits Project
Business Model Blueprint
Key Activities became High Level
Business Processes required for
Operations and Policies for the
overall program

Deposits Project
 Customer Empathy Map
Drove bus. requirements for new
operations

Deposits Project
 Results
 Shared understanding achieved of what was required to meet cust. needs
 Collaborated across internal depts., and vendor to design new operations
 Identified and mitigated several potential process inefficiencies for cust.
 Developed comprehensive Policy & Procedure manual
 Used canvas to guide legal contract development decisions
 Developed financial spreadsheet to determine net income based on model scenarios
 Developed and formally documented 4 additional future business models

WAZA For Today!
1. Defined the term “Business Model”
2. Described the Business Model Canvas (BMC), the 9 Building Blocks
3. Described key connection between Business Models and Innovation
4. Saw a practical example of BMC use for New Service Development

Business Modeling 101 – Using the Business
Model Canvas for Business Analysis
Book me at your next Event ->Columbus Brown, MBA
cbus@cb1492.com
@cb1492 #MakeItEASYNOW #PMBAWTOR18
Join the Movement & Get This Presentation
Invest In YOUR Future with Performance Coaching
www.wazacoach.com
THANK YOU!

Additional Resources
Books
 Business Model Generation: A Handbook for Visionaries, Game
Changers, and Challengers by Alexander Osterwalder and Yves Pigneur
 The Lean Startup: How Today’s Entrepreneurs use continuous
innovation to create radically successful business by Eric Ries
 Value Proposition Design: How to Create Products and Services
Customers Want (Strategyzer)

Business Model Canvas - Template
Key Partners Key Activities Value Proposition Customer Relationships Customer Segments
Key Resources Channels
Cost Structure Revenue Streams
www.businessmodelgeneration.com

THINK
PAINS GAINS
THINK
SAY and DO
SEEHEAR
Customer Empathy Map
• Biggest frustrations?
• Obstacles to success?
• What risks do the fear taking?
• What does success look like to them?
• How do they measure success
• What strategies do they use to achieve their
goals?
• How does the customer say or behave in public?
• Attitude
• Conflicts between actions and what is said?
• What does the customer see
in their environment?
• What does it look like?
• Who surrounds them?
• What types of offers are
the exposed to already?
• How does the environment
influence the customer?
• What do colleagues
say?
• Who influences them?
• What media channels
are influential?
• What is going on in your customers mind?
• What is really important to them?
• What keeps them up a night?

THINK
PAINS GAINS
THINK
SAY and DO
SEEHEAR
Customer
Customer

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