L7, Business development Flashcards
what is included in a business model?
- value proposition
- cusotme relationship
- customer segments
- revenue streams
- channels
- key resources
- cost structure
- key partners
- key activities
Describe the traditional business development process
- concept
- product development
- alpha/beta test
- Launch
— But this assumes that both the customer problem and the product features are known.
— Works well for incremental development projects targeting existing customers
What is the problem with the traditional business development process?
— More innovation projects fail from lack of customers than from a failure of product development
why?
—> we have no process to manage customer development
How could we manage customer development management?
The traditional product development
+
Customer development 1. Customer discovery 2. customer validation (iterative) 3. customer creation 4. company building
what is a company?
a business organization that sells a product or service in exchange for revenue and profit
how are companies organized?
companies are organized around business models
What is the difficulty with early stage innovation projects?
- customer problem is unknown
- product features are unknown
—> requires search
Questions to ask while analyzing customer segments?
Questions:
- Wo are the customers?
- Are the customer different from the user?
- Economic buyer?
- Technical buyer?
- Influencer?
- saboteur?
What is meant by jobs to be done when analyzing customer segments?
1. Functional jobs What functional job is your customer trying to get done? —> what does t have to perform? —> complete a specific task? —> solve a specific problem?
2. Social jobs What social jobs is your customer trying to get done? —> trying to look good? —> gain power? —> gain status?
3. Emotional jobs What emotional jobs is your customer trying to get done? —> esthetics? —> feel good? —> security
What is meant by customer pains when analyzing customer segments?
1. "Cost" What does your customer find too costly? —> takes a lot of time —> costs —> effort
- Feel bad
What makes your customer feel bad?
—> frustrations
—> annoysnces
3. Under-performing current solutions How are the current solutions under-performing for your customer? —> lack of features —> performance —> malfunction
4. Negative social consequences What negative social consequences does your customer encounter to fear? —> loss of face —> loss of power —> loss of trust —>loss of status
What is meant by customer gains when analyzing customer segments?
1. Savings Which savings would make your customer happy? —> time? —> money? —> effort?
2. Easier What would make your customer 's job or life easier? —> flatter learning curve? —> more services? —> lower cost of ownership
3. Positive social consequences What positive social consequences does your customer desire? —> look good —> increase in power —> increase in status
which three parameters could be analyzed in the customer segment part of the business model?
- Customer jobs
- Pains
- Gains
A customer persona could be useful
Questions to answer with regards to value proposition in the business model?
- What are you building?
- What are your services and products?
- How do they create value for the different customer segments?
What is meant by pain relievers when analyzing value proposition?
Can your service:
- produce sevings?
- Make your customers feel better?
- Put an end to difficulties?
- Wipe out negative social consequences?
What is meant by gain creators when analyzing value proposition?
Can the product:
- Outperform current solutions
- produce outcomes that go beyond their expectations
- make your customer’s job or life easier
- create positive social consequences?
Describe market fit?
Market fit is to:
1. create products and services that solves the customer jobs
- Have gain creators that create the gains the customer wants
- Have the pain reliever that a create reduce the pains of the customer
What questions should be asked with regards to channels?
1. How do you want your product to get to customers? —> yourself? —> through someone else? —> retail? —> wholesale? —> bundled with other goods or services?
2. How does your customer want to buy your product from your channel? —> the same day? —> delivered and installed —> downloads —> bundled with there products —> as a service —> etc.
What questions should be asked with regards to customer relationships?
What relationship do you have with your customers?
- personal assistance
- dedicated personal assistance
- self service
- automated services
- communities
- co-creation
What questions should be asked with regards to revenue streams?
How do you make money? — Revenue model + price —> asset sales —> subscriptions —> freemium —> renting —> licensing —> intermediation fee —> advertising sales