business models for library success
TRANSCRIPT
Business Modelsfor library
successM.J. D’Elia : University of Guelph
Computers in Libraries 2015 : Washington, DC
Agenda๏ Business plans and models๏ Business model canvas๏ Customer profile map๏ Value map๏ Value propositions
Objectives๏ Learn fundamentals of business model design๏ Map different models for libraries๏ Develop customer profiles๏ Articulate a clear value proposition
Bad Business Planningbuilt on
assumptions(secondary data)
assumptionsconsidered
“facts”
“facts” are not challenged or
altered> > >
Bad Business Planningplan becomes static (it is not
rewritten)
company-centric
approach
productivity is measured against
plan> >
Business Model Approachbuilt on
assumptions(secondary data)
assumptionsconsidered
“facts”
“facts” are not challenged or
altered> > >
built on observation(primary data)
assumptionsare
acknowledged
assumptions altered based on new
learning> > >
Business Model Approachplan becomes static (it is not
rewritten)
company-centric
approach
productivity is measured against
plan> >
model continues to be rewritten (dynamic)
customer-centric
approach
productivity is measured by performance
> >
KeyPartners
KeyActivities
ValueProposition
CustomerRelationships
Channels
CustomerSegments
Cost Revenue
KeyResources
BUSINESS MODEL CANVAS
KeyPartners
KeyActivities
ValueProposition
CustomerRelationships
Channels
CustomerSegments
Cost Revenue
CUSTOMEREMOTION
KeyResources
KeyPartners
KeyActivities
ValueProposition
CustomerRelationships
Channels
CustomerSegments
Cost Revenue
INFRASTRUCTUREEFFICIENCY
KeyResources
KeyPartners
KeyActivities
ValueProposition
CustomerRelationships
Channels
CustomerSegments
Cost Revenue
CRUXKey
Resources
KeyPartners
KeyActivities
ValueProposition
KeyResources
CustomerRelationships
Channels
CustomerSegments
Cost Revenue
BALANCE
Customer segments“...defines the different groups of people or organizations an enterprise aims to reach and serve.”
~BMG, p. 20
Customer segments: Questions๏ For whom does the library create value?๏ Who are the most important customers/users?
Value proposition“...describes the bundle of products and services that create value for a specific customer segment.”
~BMG, p. 22
Value proposition: Questions๏ What value does the idea deliver?๏ Which problem is being solved?๏ Which needs will be satisfied?๏ What bundles of products/services are offered
to each customer segment?
Channels“...describes how a company communicates with and reaches its customer segments to deliver a value proposition.”
~BMG, p. 26
Channels: Questions๏ How do the segments want to be reached? ๏ How are they reached now?๏ How is the library integrating with customer
routines?
Customer relationships“...describes the types of relationships a company establishes with specific customer segments.”
~BMG, p. 28
Customer relationships: Questions๏ What type of relationship does each segment
expect?๏ Which relationships have been established?๏ How are they integrated with the rest of the
model?
Revenue streams“...represents the cash a company generates from each customer segment (costs must be subtracted from revenues to create earnings).”
~BMG, p. 30
Revenue streams: Questions๏ For what value are customers willing to pay?๏ For what do they currently pay?๏ How are they currently paying?๏ How much does each revenue stream
contribute to overall revenue?
Key resources: Questions๏ What key resources do your value propositions
require?๏ distribution channels?๏ customer relationships?๏ revenue streams?
Key activities“...describes the most important things a company must do to make its business model work.”
~BMG, p. 36
Key activities: Questions๏ What key activities do your value propositions
require?๏ distribution channels?๏ customer relationships?๏ revenue streams?
Key partners“...describes the network of suppliers and partners that make the business model work.”
~BMG, p. 38
Key partners: Questions๏ Who are the key partners?๏ Who are the key suppliers?๏ Which key resources do you need from
someone else?๏ Which key activities do partners perform?
Cost: Questions๏ What are the most important costs inherent in
our business model?๏ Which key resources are most expensive?๏ Which key activities are most expensive?
Business Model Canvas 101๏ Start with the customer segments๏ Create different value props for each segment๏ Changes to one section affect other sections๏ Cost and revenue balance on the value prop
Jobs“Jobs describe the things your customers are trying to get done in their work or in their life.”
~VPD
Jobs: Questions๏ What is your customer trying to accomplish?๏ What tasks do they need to perform at work or
at home?๏ What is one thing that your customer absolutely
needs to accomplish?
Pains“Pains describe anything that annoys your customers before, during, and after trying to get a job done or simply prevents them from getting a job done.”
~VPD
Pains: Questions๏ What are your customers frustrations and
annoyances?๏ What keeps them up at night? What are their
big fears?๏ What takes them too much time? costs too
much money? requires too much effort?
Gains: Questions๏ Which savings would make your customers
happy? In terms of time, money or effort.๏ What would make your customers’ lives easier?๏ What do they dream about? Aspire to be?
Pain relievers“Pain relievers describe how exactly your products and services alleviate specific customer pains.”
~VPD
Pain relievers: Questions๏ What could you do to produce savings?๏ What might make customers feel better?๏ What could you do to solve under-performing
solutions?
Gain creatorsGain creators describe how you intend to produce outcomes and benefits that your customer expects and wants.
~VPD
Gain creators: Questions๏ What could you do to exceed customer
expectations?๏ How can you help your customers look good?๏ What desires can you fulfill for them?
Value Prop: Ad-Libs๏ Use the “fill-in-the-blanks” worksheet provided๏ Borrow from your customer profile map and
value map
ReferencesBlank, S. & Dorf, B. (2012). The Startup Owner’s Manual. Pescadero, CA:
K&S Ranch.Osterwalder, A. & Pigneur, Y. (2010). Business model generation.
Hoboken, NJ: Wiley.Osterwalder, A., Pigneur, Y., Bernarda, G. & Smith, A. (2014). Value
proposition design. Hoboken, NJ: Wiley. Ries, E. (2011). The Lean Startup. New York: Crown Business.
Icons by: Maxim Basinski (aka vasabii) via Creative Market
Business Models forlibrary success
M.J. D’Elia
Computers in Libraries 2015 : Washington, DC
[email protected] @mjdelia