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Canvasing
              the

 Enterprise

   © 2012 BigVisible Solutions
David J Bland
Agile / Lean / XP / Kanban
Startups & Enterprises
eCommerce to Counter Terrorism




 © 2012 BigVisible Solutions     2
© 2012 BigVisible Solutions   3
What is a
Business Model?

        © 2012 BigVisible Solutions   4
What is a
Business Model?
(answers may surprise you)




                © 2012 BigVisible Solutions   5
“A business model describes the
rationale of how an organization
creates, delivers & captures value”
                               -Alexander Osterwalder




              © 2012 BigVisible Solutions               6
A business model used to be static
and survived many years.




              © 2012 BigVisible Solutions   7
Now business models should be
evolving with the organization.

                                                 Minimum Viable
 Large Batch      Small Batch                     Experiments



 Organized by   Cross Functional                 Entrepreneurial
   Function          Teams                           Teams




                   © 2012 BigVisible Solutions                     8
Experiments on:

- Product
- Process
- Business Model
          © 2012 BigVisible Solutions   9
Source: Alex Osterwalder   © 2012 BigVisible Solutions   10
Level 1
Checklist


          © 2012 BigVisible Solutions   11
What are the
elements that
make up a
business model?

       © 2012 BigVisible Solutions   12
Customer
                               Segment

      “For whom are we creating value?”


Source: Adapted from Alex Osterwalder
                                        © 2012 BigVisible Solutions   13
Value
                               Proposition

      “What value do we deliver to the
      customer?”

Source: Adapted from Alex Osterwalder
                                        © 2012 BigVisible Solutions   14
Channels

      “How do we deliver the value we
      create to the customer?”

Source: Adapted from Alex Osterwalder
                                        © 2012 BigVisible Solutions   15
Customer
                               Relationships

      “How do we create & maintain
      relationships with our customers?”

Source: Adapted from Alex Osterwalder
                                        © 2012 BigVisible Solutions   16
Revenue
                               Streams

      “How much will these customers pay
      for the value we create?”

Source: Adapted from Alex Osterwalder
                                        © 2012 BigVisible Solutions   17
Cost
                               Structure

      “How much will this cost to create
      and maintain?”

Source: Adapted from Alex Osterwalder
                                        © 2012 BigVisible Solutions   18
Key
                               Resources

      “Who and what will we need to
      create this value?”

Source: Adapted from Alex Osterwalder
                                        © 2012 BigVisible Solutions   19
Key
                               Activities

      “What will we do with these
      resources to build value?”

Source: Adapted from Alex Osterwalder
                                        © 2012 BigVisible Solutions   20
Key
                               Partners

      “Who would we partner with that
      will provide us with Key Resources or
      Key Activities?”
Source: Adapted from Alex Osterwalder
                                        © 2012 BigVisible Solutions   21
This level of
understanding
is a good
starting point.

        © 2012 BigVisible Solutions   22
Level 2
Hypothesis


          © 2012 BigVisible Solutions   23
“Let’s map out our existing business model”


                                        ?                           ?
                         ?                                                      ?
                                                     ?

                                    ?                                   ?


                             ?          ?                       ?           ?   ?



                                  tip: tell a story

Source: Adapted from Alex Osterwalder
                                            © 2012 BigVisible Solutions             24
“Who is our Customer Segment?”


                                        ?                           ?
                         ?
                                                     ?

                                    ?                                   ?


                             ?          ?                       ?           ?   ?




Source: Adapted from Alex Osterwalder
                                            © 2012 BigVisible Solutions             25
“What need of theirs do we solve?”


                                        ?                           ?
                         ?



                                    ?                                   ?


                             ?          ?                       ?           ?   ?




Source: Adapted from Alex Osterwalder
                                            © 2012 BigVisible Solutions             26
“How do we deliver our solution to them?”


                                        ?                           ?
                         ?



                                    ?


                             ?          ?                       ?         ?   ?




Source: Adapted from Alex Osterwalder
                                            © 2012 BigVisible Solutions           27
“How do we build relationships with them?”


                                        ?
                         ?



                                    ?


                             ?          ?                       ?         ?   ?




Source: Adapted from Alex Osterwalder
                                            © 2012 BigVisible Solutions           28
“How do we make money delivering this value?”


                                        ?
                         ?



                                    ?


                             ?          ?




Source: Adapted from Alex Osterwalder
                                            © 2012 BigVisible Solutions   29
“What does this cost us to build & maintain?”


                                        ?
                         ?



                                    ?




Source: Adapted from Alex Osterwalder
                                            © 2012 BigVisible Solutions   30
“Who & what do we need to create this?”


                                        ?
                         ?




Source: Adapted from Alex Osterwalder
                                            © 2012 BigVisible Solutions   31
“What activities do these resources perform?”


                         ?




Source: Adapted from Alex Osterwalder
                                        © 2012 BigVisible Solutions   32
“Who do we partner with?”




Source: Adapted from Alex Osterwalder
                                        © 2012 BigVisible Solutions   33
Before I lose you
please stay for this
next slide.


        © 2012 BigVisible Solutions   34
This can apply to internal projects!




Source: Adapted from Alex Osterwalder
                                        © 2012 BigVisible Solutions   35
This can be an
                                             Internal User or
                                             Stakeholder



Source: Adapted from Alex Osterwalder
                                        © 2012 BigVisible Solutions   36
This can be an
                                                     Internal
                                                     Product or
                                                     B2B Solution.


Source: Adapted from Alex Osterwalder
                                        © 2012 BigVisible Solutions   37
These can be Internal Costs
    and Metrics.
Source: Adapted from Alex Osterwalder
                                        © 2012 BigVisible Solutions   38
These can be
    Internal
    Partnerships
    across
    Functional
    Departments
Source: Adapted from Alex Osterwalder
                                        © 2012 BigVisible Solutions   39
Still with me?
GOOD


        © 2012 BigVisible Solutions   40
“I wonder how much of this is reality…”


                                        ?                           ?
                         ?                                                      ?
                                                     ?

                                    ?                                   ?


                             ?          ?                       ?           ?   ?




Source: Adapted from Alex Osterwalder
                                            © 2012 BigVisible Solutions             41
Level 3
Validation


          © 2012 BigVisible Solutions   42
“Let’s validate our riskiest assumptions”


                                        ?                           ?
                         ?                                                      ?
                                                     ?

                                    ?                                   ?


                             ?          ?                       ?           ?   ?




Source: Adapted from Alex Osterwalder
                                            © 2012 BigVisible Solutions             43
This is most
                                          likely your
                                          Riskiest
                                          Assumption

Source: Adapted from Alex Osterwalder
                                        © 2012 BigVisible Solutions   44
Empathy Maps
                                               Personas
                                               Usage Analysis
                                               Cohort Analysis
                                               Customer Interviews
                                               Surveys
                                               A/B Testing
Source: Adapted from Alex Osterwalder
                                        © 2012 BigVisible Solutions   45
This is most
           likely your
           other
           Riskiest
           Assumption
© 2012 BigVisible Solutions   46
Does your product
                                                    solve a need for the
                                                    Customer Segment?

                                                    How do you validate
                                                    or invalidate that
                                                    statement?

Source: Adapted from Alex Osterwalder
                                        © 2012 BigVisible Solutions   47
What happens when we
    subtract costs from revenue?
Source: Adapted from Alex Osterwalder
                                        © 2012 BigVisible Solutions   48
Go get someone from
accounting, now.
         © 2012 BigVisible Solutions   49
Who are we
  partnering with
  and what are
  they bringing?


Source: Adapted from Alex Osterwalder
                                        © 2012 BigVisible Solutions   50
Introducing some
      customizations

       Lean Canvas
       by Ash Maurya
Source: Ash Maurya
                     © 2012 BigVisible Solutions   51
Business Model                                                  Lean
          Canvas                                                     Canvas




   efficiency              value                                product   market

Source: Adapted from Osterwalder & Maurya
                                       © 2012 BigVisible Solutions             52
Business Model Canvas                                             Lean Canvas
          Customer Segment                                      Customer Segment
           Value Proposition                             Unique Value Proposition
       Customer Relationship                                         Unfair Advantage
                   Channel                                               Channel
            Revenue Streams                                          Revenue Streams
              Cost Structure                                          Cost Structure
              Key Resources                                            Key Metrics
               Key Activities                                            Solution
               Key Partners                                              Problem
Source: Adapted from Osterwalder & Maurya
                                       © 2012 BigVisible Solutions                      53
Lean Canvas
                                                                Customer Segment
                                                      Unique Value Proposition
                                                                Unfair Advantage
     Problem / Solution
                                                                    Channel
      Product / Market
                                                                Revenue Streams
                                                                  Cost Structure
                                                                   Key Metrics
                                                                    Solution

Source: Adapted from Ash Maurya
                                                                    Problem
                                  © 2012 BigVisible Solutions                      54
Disclaimer:
Problem / Solution Fit
and Product / Market Fit

ARE DIFFERENT
           © 2012 BigVisible Solutions   55
Problem / Solution Fit


Product / Market Fit

        © 2012 BigVisible Solutions   56
© 2012 BigVisible Solutions   57
© 2012 BigVisible Solutions   58
1   2

                                  3

                              4
© 2012 BigVisible Solutions           59
These
                                      1   2
have
potential.                                3

                                      4
        © 2012 BigVisible Solutions           60
Choose
Customer,                                 1   2

                                              3
Problem,
Solution                                  4
for each.   © 2012 BigVisible Solutions           61
Design
Minimum                                1   2
Viable
                                           3
Experiments.
                                       4
         © 2012 BigVisible Solutions           62
1

2

3                                 3.1

4
    © 2012 BigVisible Solutions         63
Cultural, Organizati
onal & Leadership
Barriers

         © 2012 BigVisible Solutions   64
Are your teams
empowered to use a
canvas?

       © 2012 BigVisible Solutions   65
© 2012 BigVisible Solutions   66
How does this scale
up and across the
organization?

       © 2012 BigVisible Solutions   67
© 2012 BigVisible Solutions   68
Vision




 Strategy




     Team

© 2012 BigVisible Solutions   69
Experiment Dashboard

ID   Hypothesis     Description Status          Next Steps




                  © 2012 BigVisible Solutions                70
Where do the
new ideas go?


       © 2012 BigVisible Solutions   71
How to
pitch a VC VP


      © 2012 BigVisible Solutions   72
But we’re already
doing agile do we
really need a canvas?

        © 2012 BigVisible Solutions   73
Iterative Product
+ Static Business Model
 Failed Organization

             © 2012 BigVisible Solutions   74
Place the Canvas on the wall
next to your Kanban board.




           © 2012 BigVisible Solutions   75
Questions?




  © 2012 BigVisible Solutions   76
David J Bland
              Agile Consultant




              [m]: +1 703 945 0700
              [ e ]: dbland@bigvisible.com
              [ u ]: www.bigvisible.com
              [ t ]: @davidjbland


© 2012 BigVisible Solutions              77

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Canvasing the Enterprise

  • 1. Canvasing the Enterprise © 2012 BigVisible Solutions
  • 2. David J Bland Agile / Lean / XP / Kanban Startups & Enterprises eCommerce to Counter Terrorism © 2012 BigVisible Solutions 2
  • 3. © 2012 BigVisible Solutions 3
  • 4. What is a Business Model? © 2012 BigVisible Solutions 4
  • 5. What is a Business Model? (answers may surprise you) © 2012 BigVisible Solutions 5
  • 6. “A business model describes the rationale of how an organization creates, delivers & captures value” -Alexander Osterwalder © 2012 BigVisible Solutions 6
  • 7. A business model used to be static and survived many years. © 2012 BigVisible Solutions 7
  • 8. Now business models should be evolving with the organization. Minimum Viable Large Batch Small Batch Experiments Organized by Cross Functional Entrepreneurial Function Teams Teams © 2012 BigVisible Solutions 8
  • 9. Experiments on: - Product - Process - Business Model © 2012 BigVisible Solutions 9
  • 10. Source: Alex Osterwalder © 2012 BigVisible Solutions 10
  • 11. Level 1 Checklist © 2012 BigVisible Solutions 11
  • 12. What are the elements that make up a business model? © 2012 BigVisible Solutions 12
  • 13. Customer Segment “For whom are we creating value?” Source: Adapted from Alex Osterwalder © 2012 BigVisible Solutions 13
  • 14. Value Proposition “What value do we deliver to the customer?” Source: Adapted from Alex Osterwalder © 2012 BigVisible Solutions 14
  • 15. Channels “How do we deliver the value we create to the customer?” Source: Adapted from Alex Osterwalder © 2012 BigVisible Solutions 15
  • 16. Customer Relationships “How do we create & maintain relationships with our customers?” Source: Adapted from Alex Osterwalder © 2012 BigVisible Solutions 16
  • 17. Revenue Streams “How much will these customers pay for the value we create?” Source: Adapted from Alex Osterwalder © 2012 BigVisible Solutions 17
  • 18. Cost Structure “How much will this cost to create and maintain?” Source: Adapted from Alex Osterwalder © 2012 BigVisible Solutions 18
  • 19. Key Resources “Who and what will we need to create this value?” Source: Adapted from Alex Osterwalder © 2012 BigVisible Solutions 19
  • 20. Key Activities “What will we do with these resources to build value?” Source: Adapted from Alex Osterwalder © 2012 BigVisible Solutions 20
  • 21. Key Partners “Who would we partner with that will provide us with Key Resources or Key Activities?” Source: Adapted from Alex Osterwalder © 2012 BigVisible Solutions 21
  • 22. This level of understanding is a good starting point. © 2012 BigVisible Solutions 22
  • 23. Level 2 Hypothesis © 2012 BigVisible Solutions 23
  • 24. “Let’s map out our existing business model” ? ? ? ? ? ? ? ? ? ? ? ? tip: tell a story Source: Adapted from Alex Osterwalder © 2012 BigVisible Solutions 24
  • 25. “Who is our Customer Segment?” ? ? ? ? ? ? ? ? ? ? ? Source: Adapted from Alex Osterwalder © 2012 BigVisible Solutions 25
  • 26. “What need of theirs do we solve?” ? ? ? ? ? ? ? ? ? ? Source: Adapted from Alex Osterwalder © 2012 BigVisible Solutions 26
  • 27. “How do we deliver our solution to them?” ? ? ? ? ? ? ? ? ? Source: Adapted from Alex Osterwalder © 2012 BigVisible Solutions 27
  • 28. “How do we build relationships with them?” ? ? ? ? ? ? ? ? Source: Adapted from Alex Osterwalder © 2012 BigVisible Solutions 28
  • 29. “How do we make money delivering this value?” ? ? ? ? ? Source: Adapted from Alex Osterwalder © 2012 BigVisible Solutions 29
  • 30. “What does this cost us to build & maintain?” ? ? ? Source: Adapted from Alex Osterwalder © 2012 BigVisible Solutions 30
  • 31. “Who & what do we need to create this?” ? ? Source: Adapted from Alex Osterwalder © 2012 BigVisible Solutions 31
  • 32. “What activities do these resources perform?” ? Source: Adapted from Alex Osterwalder © 2012 BigVisible Solutions 32
  • 33. “Who do we partner with?” Source: Adapted from Alex Osterwalder © 2012 BigVisible Solutions 33
  • 34. Before I lose you please stay for this next slide. © 2012 BigVisible Solutions 34
  • 35. This can apply to internal projects! Source: Adapted from Alex Osterwalder © 2012 BigVisible Solutions 35
  • 36. This can be an Internal User or Stakeholder Source: Adapted from Alex Osterwalder © 2012 BigVisible Solutions 36
  • 37. This can be an Internal Product or B2B Solution. Source: Adapted from Alex Osterwalder © 2012 BigVisible Solutions 37
  • 38. These can be Internal Costs and Metrics. Source: Adapted from Alex Osterwalder © 2012 BigVisible Solutions 38
  • 39. These can be Internal Partnerships across Functional Departments Source: Adapted from Alex Osterwalder © 2012 BigVisible Solutions 39
  • 40. Still with me? GOOD © 2012 BigVisible Solutions 40
  • 41. “I wonder how much of this is reality…” ? ? ? ? ? ? ? ? ? ? ? ? Source: Adapted from Alex Osterwalder © 2012 BigVisible Solutions 41
  • 42. Level 3 Validation © 2012 BigVisible Solutions 42
  • 43. “Let’s validate our riskiest assumptions” ? ? ? ? ? ? ? ? ? ? ? ? Source: Adapted from Alex Osterwalder © 2012 BigVisible Solutions 43
  • 44. This is most likely your Riskiest Assumption Source: Adapted from Alex Osterwalder © 2012 BigVisible Solutions 44
  • 45. Empathy Maps Personas Usage Analysis Cohort Analysis Customer Interviews Surveys A/B Testing Source: Adapted from Alex Osterwalder © 2012 BigVisible Solutions 45
  • 46. This is most likely your other Riskiest Assumption © 2012 BigVisible Solutions 46
  • 47. Does your product solve a need for the Customer Segment? How do you validate or invalidate that statement? Source: Adapted from Alex Osterwalder © 2012 BigVisible Solutions 47
  • 48. What happens when we subtract costs from revenue? Source: Adapted from Alex Osterwalder © 2012 BigVisible Solutions 48
  • 49. Go get someone from accounting, now. © 2012 BigVisible Solutions 49
  • 50. Who are we partnering with and what are they bringing? Source: Adapted from Alex Osterwalder © 2012 BigVisible Solutions 50
  • 51. Introducing some customizations Lean Canvas by Ash Maurya Source: Ash Maurya © 2012 BigVisible Solutions 51
  • 52. Business Model Lean Canvas Canvas efficiency value product market Source: Adapted from Osterwalder & Maurya © 2012 BigVisible Solutions 52
  • 53. Business Model Canvas Lean Canvas Customer Segment Customer Segment Value Proposition Unique Value Proposition Customer Relationship Unfair Advantage Channel Channel Revenue Streams Revenue Streams Cost Structure Cost Structure Key Resources Key Metrics Key Activities Solution Key Partners Problem Source: Adapted from Osterwalder & Maurya © 2012 BigVisible Solutions 53
  • 54. Lean Canvas Customer Segment Unique Value Proposition Unfair Advantage Problem / Solution Channel Product / Market Revenue Streams Cost Structure Key Metrics Solution Source: Adapted from Ash Maurya Problem © 2012 BigVisible Solutions 54
  • 55. Disclaimer: Problem / Solution Fit and Product / Market Fit ARE DIFFERENT © 2012 BigVisible Solutions 55
  • 56. Problem / Solution Fit Product / Market Fit © 2012 BigVisible Solutions 56
  • 57. © 2012 BigVisible Solutions 57
  • 58. © 2012 BigVisible Solutions 58
  • 59. 1 2 3 4 © 2012 BigVisible Solutions 59
  • 60. These 1 2 have potential. 3 4 © 2012 BigVisible Solutions 60
  • 61. Choose Customer, 1 2 3 Problem, Solution 4 for each. © 2012 BigVisible Solutions 61
  • 62. Design Minimum 1 2 Viable 3 Experiments. 4 © 2012 BigVisible Solutions 62
  • 63. 1 2 3 3.1 4 © 2012 BigVisible Solutions 63
  • 64. Cultural, Organizati onal & Leadership Barriers © 2012 BigVisible Solutions 64
  • 65. Are your teams empowered to use a canvas? © 2012 BigVisible Solutions 65
  • 66. © 2012 BigVisible Solutions 66
  • 67. How does this scale up and across the organization? © 2012 BigVisible Solutions 67
  • 68. © 2012 BigVisible Solutions 68
  • 69. Vision Strategy Team © 2012 BigVisible Solutions 69
  • 70. Experiment Dashboard ID Hypothesis Description Status Next Steps © 2012 BigVisible Solutions 70
  • 71. Where do the new ideas go? © 2012 BigVisible Solutions 71
  • 72. How to pitch a VC VP © 2012 BigVisible Solutions 72
  • 73. But we’re already doing agile do we really need a canvas? © 2012 BigVisible Solutions 73
  • 74. Iterative Product + Static Business Model Failed Organization © 2012 BigVisible Solutions 74
  • 75. Place the Canvas on the wall next to your Kanban board. © 2012 BigVisible Solutions 75
  • 76. Questions? © 2012 BigVisible Solutions 76
  • 77. David J Bland Agile Consultant [m]: +1 703 945 0700 [ e ]: dbland@bigvisible.com [ u ]: www.bigvisible.com [ t ]: @davidjbland © 2012 BigVisible Solutions 77