aps 1015 class 4 - intervening in systems part 1

APS 1015: Social Entrepreneurship

Class 4: Intervening in Social Systems(part 1)

Friday, May 23, 2014

1

Instructors:Norm Tasevski (norm@socialentrepreneurship.ca) Alex Kjorven (alex@socialentrepreneurship.ca)

© Norm Tasevski

Agenda

• Recap of Gap Analysis (last class)• Building an Intervention

– Step 1: Empathy Mapping– Step 2: Business Modeling

• Assignment for Monday - Storyboarding

2

© Norm Tasevski

Intervening – A 4 Step Process

3

Step 1: Empathy Mapping

Step 2: Business Modeling

Step 3:Financial Modelling

Step 4:Target Setting

© Norm Tasevski

4

• A technique for deeply and intimately understanding how your consumers/clients experience the environment around them

• The Steps:– Pick your environment

– Pick your persona

– Grab sticky notes and go!

Empathy Mapping

© Norm Tasevski

5

• Step 1: Pick your Environment– What environment matters to you (i.e.

what do you care to analyse)?

• Examples– Your store

– At home

– Your online portal/app

– A neighbourhood

Empathy Mapping

© Norm Tasevski

6

• Step 2: Pick your Persona– What type of consumer/client matters to

you?

• Examples– “Susan” the stay-at-home mom

– “Deeptha” the Bay Street young professional

– “Jerome” the single parent

Empathy Mapping

© Norm Tasevski

7

• Step 3: Grab Sticky Notes and Go!

Empathy Mapping

Break

8

© Norm Tasevski

9

• A process for determining how an organization makes and spends money

• 9 Elements:– The Customer

– The Value Proposition

– Channels

– Relationships

– Key Resources

– Key Activities

– Key Partners

– Cost Drivers

– Revenue Streams

Business Modeling

© Norm Tasevski

10

Core Concepts– Customer “Pain”– Difference between a “customer” and a “client”

The Customer

© Norm Tasevski

11

Core Concepts– The “value” you are creating for customers (in

terms of products/services), and the “pain” you are alleviating

– An exchange of value

The Value Proposition

© Norm Tasevski

12

Core Concepts– How the customer receives the offer/value prop – The physical “movement” of the offer into the

hands of the customer

Channels

© Norm Tasevski

13

Core Concepts– Personal and impersonal interaction with the

customer– The “movement” of information (e.g. marketing,

communication)

Relationships

© Norm Tasevski

14

Core Concepts– Cash!!! (specifically, how cash flows into the

enterprise) – “Money In”– Pricing models

Revenue Streams

© Norm Tasevski

15

Core Concepts– Assets…– …and how these assets create value– Includes human, physical, intellectual, and

financial resources

Key Resources

© Norm Tasevski

16

Core Concepts– Actions (specifically, the actions you plan to take

to generate value)– Both “direct” and “indirect”

Key Activities

© Norm Tasevski

17

Core Concepts– People/organizations that are integral to enabling

you to do business– How you partner, and what you partner on

Key Partners

© Norm Tasevski

18

Core Concepts– Fixed costs, variable costs, economies of

scale…“money out”– At this stage, focus on your cost assumptions!

(don’t worry about actual $$)

Cost Drivers

Storyboarding

19

© Norm Tasevski

What is Storyboarding?

A set of images/graphics displayed in sequence as a means of pre-visualizing a process or sequence of events

20

© Norm Tasevski

The Importance of Storyboarding

• From a business perspective, it provides clarity on how the business will work (e.g. how value is created, how revenue is generated)

• It helps identify gaps/flaws in the business model

• It can provide a foundation for a communications/sales campaign to customers, investors, etc.

21

© Norm Tasevski

An Example – “Here’s How it Works”

22

ID office building to serve as a

“Delivery Hub”

ID merchants within the “Delivery

Zone”

Merchants market the service to

customers

1st2nd 3rd

Professionals in Sick Kids will have access to the delivery service

Professionals at Sick Kids can receive deliveries from the hot dog vendor, Subway and Starbucks, but not Freshii or Tim Hortons

We Deliver!

An SSO delivery person picks up and delivers the food to the professional

© Norm Tasevski

A 2nd Example – “Here’s How it Works”

23

First time youth drug offenders referred to

Peacebuilders

Youth participate in Restorative Circles &

Business Training

Youth placed in kiosks/venues to sell

products

1st2nd 3rd

Peacebuilders work with established relationships with the federal youth prosecutor at the youth court at 311 Jarvis

Through this process, we build a trust relationship and empower youth to genuinely change their lives and break the cycle of violence and poverty

Youth sell in controlled environments, with Peacebuilders/Venture Deli staff support

© Norm Tasevski

Assignment

• Build Storyboards for:

24

© Norm Tasevski

What did we learn?

25