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Getting From Business Idea to Business Model

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Edward LaPorte

on 18 August 2014

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Transcript of Getting From Business Idea to Business Model

Getting From Business Idea to Business Model
Visualizing Your Business Model
Business modeling is like telling a story:
It's about how your enterprise will create, deliver, & capture value
Navigating Your Environment
World is full of threats, constraints, and opportunities beyond your control
Business model is designed based on environmental factors
Telling Your Story
Great Ideas do not assure success
Great Business ideas need a great
business model
How do you go from This
to This
9 essential building blocks
that make up a business model
Customer Segments
Value Proposition
Customer Relationships
Revenue Streams
Key Resources
Key Activities
Assets that are indispensable in your business model
Allows you to describe the infrastructure that you'll need to design, create, deliver, & capture value
Key Partners
Cost Structure
To compete in a world where the best model wins
you'll have to think long and hard and explore
3 Golden rules to follow when creating models:

Focus on the business model not just the product, technology or service

Don't fall in love with your first model
The best models are built on unexpected elements that come from creating many prototypes

Iterate rapidly and test models early
Accounting for Environmental Factors
How Do you Account for Environmental factors
Market Forces
Everything related to the customer segment selected
What other customer segments are out there?
Key Trends
What will undercut or
charge your value
What regulations are coming up
How is society shifting
Industry Forces
Who are our main
Macro Economic Forces
Ask Yourselves These Questions

Does your model have a competitive edge, today or tomorrow?

Is the model prepared for emerging trends?

Is the model in line with evovling customer needs

How will the model adjust to marco-economic shifts
Proving It
Customer Development and Lean Start Up
Low cost savings to test important hypothesis
Talk to distributors
Potential partners
Talk to customers
Full transcript