Business Modeling Week 5

Agenda 5:30 – Team Stand Up 5:40 – Business Modeling 6:15 – Activity: Business Model Canvas 7:25 – Ongoing Offsite Activities

Objectives Introduce Business Modeling Introduce Business Model Canvas Total Addressable Market Customer Acquisition Costs At the end of this session participants will be 1) Introduced to Business Models 2) Introduced to Business Model Canvas 3) Understand the value of Business Modeling

Business Modeling Speaker Name Title Credentials

Business Model Canvas The business model canvas is an entrepreneurship tool. It allows you to describe, design, challenge, invent, iterate and pivot your business model. There are multiple components and for today we are going to focus on Customer Segments, Value Propositions, Revenue Streams and Key Partnerships.

Customer Segments Who are all the people and organizations for which you are creating value? These can be both paying and non- paying customers. For these next four slides ask the teams to talk about the questions and then ask for a few groups to share.

Value Proposition Which customer needs are we satisfying? What value do we deliver to the customer?

Revenue Streams To be in business, sooner or later someone has to pay you. Who is that? Probably the person who actually benefits most from the app - and it may not be the person using it!

Key Partnerships Who can help you leverage your business model? Who would be interested in your users?

Case Study: Symple App Symple App - a mobile phone application that allows the chronically ill to keep a diary of symptoms Who might want that information? Patients, doctors, and drug companies We are framing the value proposition discussion around the potential users.

Symple App: Customer Needs Patient – having accurate information about symptoms on a daily basis will improve treatment Doctors – can better manage symptoms if they have accurate information to prescribe for Drug Companies – can produce drugs that can better solve problems if they know what the real problems are

Symple App: Value to Patients Symple App will help the patient capture accurate information about how they are feeling, thus improving their diagnosis and refining treatment plans Let’s look at the value for each one of the potential customers. The problems solved are: Getting better care Feeling better sooner Minimizing doctor visits

Symple App: Value to Doctors Symple App will deliver reliable and accurate information which could improve efficacy of patient treatment plans May surface up negative food or drug interactions Let’s look at the value for each one of the potential customers

Symple App: Value to Drug Company Symple App will deliver reliable and accurate information to drug companies to better understand how the drugs act and react Improves proper patient targeting and dosage recommendations Let’s look at the value for each one of the potential customers

Potential Revenue Streams Patients pay for the Symple and keep data private Patients get Symple free and the business is offset by ad revenue by drug and insurance companies Drug or insurance companies license Symple to collect and manage their own data Doctors subscribe to patient feed of data and buy “reports” that summarize patient behaviors and impact These are a few examples of how Symple App might build a business - there are many others but this is just meant to get you started thinking about your app and who your customer really is and how you will deliver the product to them - and how you will collect money to support your business.

Potential Key Partnerships Insurance Companies Drug Companies Doctors Electronic Health Record Software Providers

Activity: Business Model Canvas Create a physical workspace for activity that allows teams to have a board to work on. Give each team a copy of the Business Model Canvas, post it notes and large butcher paper to brainstorm for each of the building blocks of the business model. Then remind them to record this into their BMC in the Workspace Identify a customer to Canvas What kind of relationships will you have with that customer? Will they pay you for your product? What pathways are there to the end user? Who will pay you? What will they pay you for? What kind of resources will you need (things/people you need to have and stuff you will get from somewhere else i.e. have to pay for) to capture the market Key Activities (whether or not you have to pay for them “again”will be related to Resources) Will you use partners - consider if they will cost or make you money or resources

Business Model Canvas Find the BMC Example in your team’s Technovation Workspace on Google Docs Start with the Problem / Solution that you want to investigate then list your value propositions Gather all the customer types (personas / segments etc.) and just list - make postit for the one that is easiest to test Put that post it on the wall under customer segment and continue making postits for the most likely ways that your business can work (note every single way) but start with highest probability to test. Patient = Customer in a Direct Relationship Value Proposition = Performance / Cost reduction / Risk Reduction /Accountability / Convenience Channels = App store Key Resources = Marketing + Programmer Key Activities = Internet marketing (Adsense, Adwords, Facebook, Online Communities - Blogging) Key Partners = NA Cost Structure = Relational (as downloads increase market reach improves) Revenue Streams = Dollars to download

Reminder: Weekly Reflections What did your team like about this week? What challenges did your team have this week? Anything else your team would like to share? Each week you will write in the Weekly Reflections section of the Technovation Workspace answering these questions. All of your team (mentor, teacher and instructor) will be reading your response and your instructor will respond to you. You will write these reflections at the your school site meeting.

Technovation Challenge Google Group A place for participants in the program to ask and answer each others questions. http://groups.google.com/group/technovationchallenge

Share with us on Twitter & Facebook Tweet us: @_technovation_ #technovation Like us on Facebook: Technovation Challenge

Ongoing Offsite Activities Customer Development Usability Testing Evaluate Data Continue with App Inventor Build Prototype You should be continuing to apply the process to the target market - and iterating based on what you learn until you have product / market fit. When asking has anything changed - this is asking what you have learned and whether what you have learned is significant enough to cause you to change direction on either the problem, the solution or the target customer. You should be continuing to apply the process to the target market - and iterating based on what you learn until you have product / market fit When asking has anything changed - this is asking what you have learned and whether what you have learned is significant enough to cause you to change direction on either the features or the interface design. Keep track of this information but logging changes in Workspace. Check to see if any new survey results have come in and if so - how that impacts you and the business. Continue with App Inventor tutorials Once you’ve gotten user feedback on the paper prototype you can start programming in app inventor