This document provides guidelines for the Japan Business Model Competition (JBMC) in October 2019. It outlines three guidelines: 1) Behavioral psychology guideline which instructs participants to imitate successful entrepreneurs. 2) Presentation guideline which instructs participants to draw their business model using the Business Model Canvas tool. 3) Assumption management guideline which instructs participants to verify assumptions and create a hypothesis verification plan to improve their business model. The document provides examples and references to support understanding each guideline.
1. Preparation for
Japan Business
Model Competition
October 2019
Member of JBMC Executive Committee
Waseda University Research Innovation
Center
Dr. Takeru Ohe
5. Behavioral
Psychology
Guideline
Imitate the
behavior of
professional
entrepreneurs
• E-1 Make the most of what you have (what you
can do, what you have, who knows)
• E-2 Flexibly combine resources to find and
provide collaborators
• E-3 Decide the range that you can restart even
if you fail (conditions for failure)
• E-4 Find a new market, even if it seems not
worth it
• E-5 You can't predict the future, so start with
what you can do.
• Reference: Effectuation, Saras Sarasvathy,
Edward Elgar Publishing Limited, 2008
6. Behavioral
Psychology
Guideline
Entrepreneurial
Mindset
• M-1 They passionately seek new opportunities.
• M-2 They pursue opportunities with enormous discipline.
• M-3 They pursue only the very best opportunities and
avoid exhausting themselves and their organizations by
chasing after every option.
• M-4 They focus on execution, specifically, adaptive
execution. (E-5)
• M-5 They engage the energies of everyone in their
domain. (E-2)
• References: The Entrepreneurial Mindset, Rita McGrath
and Ian McMillan
• Harvard Business School Press 2000 pp2~3
7. Behavioral
Psychology
Guideline
Enterprising
Tendency
• T-1 Need of Achievement: A tendency to
set challenging goals (M-1) (E-5)
• T-2 Need for Autonomy: Strong need to do
things in an independent way
• T-3 Creative Tendency: A tendency to have
ideas and sensitivity to opportunity
• T-4 Calculated Risk Taking: A tendency to
make decisions without exhaustively
gathering information
• T-5 Locus of Controls: Achievement is due
to ability and effort
Reference︓Caird, S. (2006) General
measure of Enterprising Tendency Version 2
(GET2)
http://get2test.net/
9. Presentation
Guideline
Drawing
business
model
picture on a
canvas
• Canvas: a piece of cloth backed or framed as a
surface for a painting
• When drawing a business model picture, you
need to answer the following four questions:
• "Who will provide what and why?“
• "How to provide the products/services?,“
• "How to make a profit,“
• "Is the person who bought it once purchased it
again or wrote a review?"
13. Business
Model Canvas
What is offered to
whom and why
• To answer “what, who, in what situation,
why to buy”, you need to answer 5W1H:
•
• Who, where, who, when, what, why, how?
•
• “I want to relax on the sofa at home to
drink a store level coffee which I can
prepare easily only 30 seconds. “
15. Business
Model Canvas
How to provide
the
products/services
• “What we have to provide products and
services, which will help us with what we
do not have, who will purchase, produce,
deliver and deliver to our customers "
• First, understand what you can do and
what you have
• From "Who knows" to "Find out
collaborators and flexibly combine
resources to provide
16. 2019/10/31 （C) Dr. Takeru Ohe, 16
Analyze Market Segment and Value Proposition
using Attribute Map
Basic Discriminating Energizing
Nonnegotiable Differentiator Exciter
Performs atleastas
well as competitors
Performs better than
competitors where it
counts
Performs better than
comptitors
Tolerable Dissatisfier Enrager
Performs no worse
than competitors
Performs belowthe
level of competitors
Mustbe corrected at
anycost
(to capitalsize on
competitors's
negatives)
So What Parallel
Does notaffectthe
purchasing decision
in a meaningful way
Influences segment
attitudes butis not
directlyrelated to
productor service
performance
NeutralPositiveNegative
17. 5W1H
Analysis
JOB, Value
proposition、Customer
Segmentation、
Channel
• Answer 5W1H questions:
who, where, who, when, what, why,
how?“
• A busy person enjoys delicious coffee
prepared easily by himself while
relaxing on the sofa deeply at home.“
• References: Clayton M. Christensen
etc. , Competing Against Luck, Harbor
Collins Publication, 2017
19. 2019/10/31 （C) Dr. Takeru Ohe 19
Consumption Chain Analysis
Partners, Main Activities, Key Resources, Channels
Awareness
of need
Search Selection Ordering/
Purchasing
Paying
Receiving
Installing
Storing
&
moving
Using
Repairs &
Returns
Servicing
Final
Disposal
Financing
Reference:
Market Busters, Rita Gunther McGrath and Ian C. MacMillan, Harvard Business School Press,２００５
21. Bond
Analysis
Customer
Relationship
Merits of
successful
relation
• Nomination
• Improvement customer outflow
• Increase feedback rate and close rate
• Increase purchase per customer
• Selling without discounts
• No complaints
• Able to take a vacation
• More referrals and strong word of
mouth
• You will know what to offer next
(development, purchase)
22. Business
Model Canvas
Can you continue the
business?
• How to earn profits: Clarify sources of
income and costs (Reverse Income
Statement)
• To sell goods and services to customers is
not the “end” of selling, but the
“beginning” of a relationship that
continues after selling.
• What you can make customer to purchase
your products/service again, or customer
to give a good review? You need a
customer relationship strategy “Kizuna.”
25. Make a verification plan and
bring the business model
closer to start-up
• All elements drawn on BMC are
hypotheses.
• Which is the most important hypothesis
• When to verify,
• How to verify
• It is necessary to conduct verification in
a fast, effective and reasonable way.
• Create and execute a hypothesis
verification plan.
2019/10/31 （C) 実験経営学研究所 大江建 25
26. What you should verify first?
“Who will buy and why they will purchase”
• Validate customer value hypotheses and customer
segment hypotheses
• Questions to ask potential customers
• What is the reason customers purchase
products/services? What is the Job of the customers?
• Is the product/service offering a solution for the
reason for purchase?
• Does the product/service improve in what
customers want to achieve?
• Are customers aware of the problem that the
proposed product/service solves?
• Why do they select your product/service among
alternatives?（C) 実験経営学研究所 大江建 2019/10/31 26
27. Assumption Test Card
Item Explantation
1 Assumption
2 Judging standard
3 Verification method
4 Verification result
5 Judgement
6 Period and cost of
verification
7 Next step
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Resource: Value Proposition Design, Osterwalder, A. & etc., Wiley (2014)
28. Assumption Test Card
Example
Item Note
1 Assumption Eat crackers made by cricket powder
2 Judging standard 60％ of people is willing to eat
3 Verification method Visit three gyms, and ask 40 people at each
gym (20 male and 20 female)
4 Verification result 75% of people are willing to eat the cricket
cracker
5 Judgement Men and women interested in strengthening
muscles are prime target
6 Period and cost of
verification
One month, 30,000 yen for gift
7 Next step Sample test
2019/10/31 （C) 実験経営学研究所 大江建 28
Resource: Value Proposition Design, Osterwalder, A. & etc., Wiley (2014)
29. BMC
Draw NESPRESSO Business Model on BMC
Exercise︓Drawing Business
Model on BMC
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