advanced business model design - pirate summit 2013

Business Model Design

FounderCentric

Salim Virani@saintsal

Jordan Schlipf@jordups

CentricFounder

Is this business model innovation?

CentricFounder

by Luis Morello

Is this Lean?

CentricFounder

Levels ofBusiness Model Proficiency

Parts Checklists & dashboards

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Whole Understanding & validating core dynamics

Marketing Success!

Business fail.

We obsess over the details.

And miss the big picture.

4% conversion rate = win!

4% conversion rate = win?

We had a big picture problem!

The

Business Model Canvas is the big picture.

What happened? Let’s look at the business model...

“I wish I knew that sooner.”

We wanted more users, so we marketed...

...which was rendered worthless by our retention.

You can’t think about any one part without thinking about the rest.

Changing something changes everything.

A “simple” change.

Everything is connected.

droppedcall? :(

You’ve built a great app. Users use the free trial. They love it. They use it every day. When the free trial expires, they don’t buy.

Why?

Gifters

Venues

Recipients

Share the love

Instant

Gratification

Emerging

DesignersMobilePhone

Real-timeRedemption

Real Gift

More Traffic& Spend Direct Sales

Personal

OnlineTransaction

Online

Transaction

% CutPay per giftFree gift

Payment

gatewaysDirect Sales

NationalBrands

POSIntegrators

Biz Dev

VenueNetwork

CentricFounder

by Luis Morello

Will people think of sending a gift from their phone when there’s a gift-giving opportunity?

Who will trust GiftCannon?

Will people receive a gift over their mobile?

Will people receive a gift over text message?

Will people receive a gift over Facebook?

Send a gift with a link over email or Facebook.

Will recipients redeem their gift?

Will shops work with us to redeem gifts?

Which partners can jumpstart our growth?

Will gift recipients stick around and start sending gifts themselves?

Will this work beyond students?

Good for vision, inventing and improving.

Bad for getting stuck on specifics that don’t work.

Tenacity

Platform

Tuesday, 14 June 2011

Platform

Tuesday, 14 June 2011

Platform

Tuesday, 14 June 2011

Platform

Tuesday, 14 June 2011

Mass customisation

Value-basedpricing

App sale +in-app purchase Subscription

Transactional

Multi-sidedmarket

Licensing

CrowdsourceAd-supported

Event-supported

SaaS

Bundling

Viral

Direct-over-viral

Purchase-timing

Business model design is finding the few that matter.

Scaffolding

Balancing focus and opportunity using business model dynamics.

Option cards

Who will our next 10 customers be?Where are they looking? And for what?

What needs do your customers have?How do they solve them now?

To multiply my customer base by 10, I can attract them through _____________ .

What are the different ways we can make money?

How would our business change if we didn’t have a web site or app?

When customers have this problem, or are tackling this task, where do they seek help and

advice?

Which customers have different expectations about service levels or relationship?

What are our possible revenue streams? What customers pay for that, in that way, and why?

Are there customers at the low-end who would pay less for lower performance?

How could we increase switching costs?

Who are the people in our network that can fast-track our business? How?

Pick a learning goalWhat big make-or-break risks or idea is the one you want to nail down this week?

(Hint: use the Canvas or metrics to make sure it’s relevant.)

Build

Learn

MeasureYourValidation heartbeat.

“I wish I knew that sooner.”

Salim Virani@SaintSal

www.foundercentric.com

Thanks!Jordan Schlipf@jordups

Bonus!

Jobs Obstacles Goals Current Solution

Customer Slicing

Decision Trigger

Interest Trigger

More useful customer segments based on their current behavour.

They are real people (not attributes!)It’s clear where to find them.

You’ll walk away if they aren’t a good fit.

EXERCISE

What I can do

What I’vegot

Small partnerships first.

Affordable Loss.

EffectuationHow successful entrepreneurs move forward.

Multiple goals based on current resources.

7 ways to die. Choose none.

IndustryMarket

Macro

Micro

Trends

Connections

Alignment Skills

Establishment

Customer Need & Behaviour

Lock-in & copyability Modified from 7 Domains,

From The New Business Road Test, by John Mullins