Overview

• Why are we here?

• What is going on?

• Intro to the BMC and similar frameworks

• Leveraging the BMC: How To

• Final Takeaways and Next Steps

Who is this guy?

What have I learned?

What are we doing here?

What the hell is innovation?“Something different that has impact”

-Scott D. AnthonyManaging Partner, Innosight

• Innovation equals results, not creativity• It’s an action-oriented process

• It’s not all about “big bangs”• It’s not about the size of the vision, it’s about impact

• Designing sustainable business models results in impact

Impact is relative, and it is measured by your own values and your vision for the way the world should be

We are positioned to increase our probability of creating enduring value for this world as entrepreneurs.

The pace at which we can accelerate our understanding of how to innovate effectively has never been so great

People are working incredibly hard to help YOU win!

… the good news

“Standing on the shoulders of giants”

• Steve blank & Bob Dorf – Customer Development• Nir Eyal – The Desire Engine• Eric Ries – Lean Startup• Mark Johnson – Seizing the White Space• Alexander Osterwalder – The BMC• Clayton Christensen – Disruptive Innovation• Ash Maurya – Running Lean & The Lean Canvas • BJ Fogg – Behavioral Modeling

What is the Business Model Canvas?

“A strategic management template for developing new or documenting existing business models”

Business plans are dead

Created by Alexander Osterwalder and Yves Pigneur

Adapted by many

Created by 470 practitioners

Adopted by 500k+ innovators

Why use the BMC?

Understanding the fabric of your startups is paramount to increasing your odds of success

Investors probably won’t care, and it doesn’t matter

Using the BMC allows you and your team to create a common, visual nomenclature around your startup

Documenting your progress with the BMC allows your team to better understand the effect of change

There’s a competitive fray

• The development of intellectual capital leads to branding which ultimately leads to confusion

• Everyone is standing on giant shoulders– We live in a culture of 1-uping each other

• Learn about everything out there, and decide for yourself what best fits your needs

The Lean Canvas

The Reality

BMC + Lean Startup

Business Models evolve w/ new insights

Populating the BMC

Populating the BMC is a collaborative and creative process

Thoughts should be concise and singular in focus

Best done with sharpies and post-it-notes (contributors should use different colors)

Time-box the exercise

You can stack business models (i.e. marketplaces & biz units)

We want to stand at intersections, so sequencing matters!

Why does sequencing matter?

Eliminating Market Risk creates REAL business value

Market risk is almost always the most critical risk startups face

Sequencing

• What job(s) does the CS need done?

• How can we do that job for them?

• What are they willing to pay to get it done?

• What do we need to do in order to get the job done?

• How much does it cost to deliver the value?

• How do I reach customers and deliver value?

• What type of relationship do we want to develop?

• In order to deliver value, who do I need help from?

What’s the JTBD?

Customers and Value

Product-Market Fit

Can you actually get it done?

Distribution and Relationships

Whose help do I need?

Review your model and update!

• Things change as elements are added

• We need to account for these changes

• What does the profit formula look like?

Final TakeawaysYOU are very fortunate to live in an era where an unparalleled amount of innovation IC exists

The BMC increases your odds of making an impact

Superior business models and strategies win over superior products

Use the BMC to help frame your respective strategies

Identify the most critical dimensions to our model, and de-risk-Market risk is always be a “deal-killer risk”

Theory is validated by practitioners, so practice, practice, practice!

Let’s Practice

ResourcesStanford’s ecorner and podcastsStrategyzer.com LeanCanvas.comBusinessModelAlchemist.comSteveBlank.comAshMaurya.comGrasshopperHerder.comInnosight’s NewsletterStartupLessonsLearned.comNirandFar.comBJFogg.com