introduction to business model canvas for social …...introduction to business model canvas for...

Introduction to Business Model Canvas for Social Impact

The Methodology

Source: Business Model Generation

What about Social Impact?

Stakeholders / Customers

The different groups of people or entities an organization aims to reach and serve.There are often different customer groups:• Their needs require and justify a distinct offer• They require different relationships• They are reached through different distribution channels• They have substantially different profitabilities• They are willing to pay for different aspects of the offer•Stakeholder vs. customer vs. beneficiary – do you offer different value propositions to each?

Source: Business Model Generation / Impact Strategy Advisors

Source: Business Model Generation / Impact Strategy Advisors

Value Proposition

The bundle of projects and services that create value for a specific Customer Segment.

• This satisfies a particular problem or need.

• This is the reason why customers turn to one company over another.

• What different types of value do you create for your various stakeholders?

Customer RelationshipsHow a company communicates with and reaches its Customer Segment to deliver the Value Proposition.

• Channels are customer touch points that play an important role in the customer experience.

• In what manner do you want to interaction with your customers and stakeholders?

Customer ChannelsDescribes the types of relationships a company establishes with specific Customer segments.

• Customer relationships may be motivated by customer acquisition, customer retention or enhanced sales.

• How do you reach your customers and stakeholders?

Source: Business Model Generation / Impact Strategy Advisors

Revenue StreamsThe cash a company generates from each Customer. There may be different revenue streams for different Customer Segments. • Each revenue stream may have different pricing mechanisms.

MagnitudeThe size and depth of the addressable social and economic opportunity for customers, stakeholders, and society. • This is based on data and will influence the scale of the intended value propositions,

the channel strategy, and the profit.

Source: Business Model Generation / Impact Strategy Advisors

Key ActivitiesMost important actions a company must do to operate a viable and sustainable business.• These activities are key to successfully

creating and providing the Value Proposition

Key ResourcesMost important assets required to make a business model work.• Key Resources can be physical, financial,

intellectual, or human. They can be owned or leased by the company, or acquired from key partners.

Source: Business Model Generation / Impact Strategy Advisors

Key Partners

Network of suppliers and partners that make the business model work.

• Can be formal / informalUsually involve an exchange of value

Source: Business Model Generation / Impact Strategy Advisors

CostsAll costs incurred to make the business model work.

Differentiation Describes how your venture is different or outlines your competitive advantage.• Can come from several other building blocks• Can be based in independent elements

Source: Business Model Generation / Impact Strategy Advisors

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Additional Business Modeling Resources

• Business Model Generation: http://www.businessmodelgeneration.com/

• Strategyzer: https://strategyzer.com/• Impact Strategy Advisors:

http://impactstrategyadvisors.com/• Impact Canvas Tool kit: http://www.socialblueprint.org/• Other ways to use the canvas:

http://blog.strategyzer.com/posts/2015/3/23/14-ways-to-apply-the-business-model-canvas

• Steve Blank’s customer discovery check list: https://startupweekend.wistia.com/projects/zt618zz0r7

• Preparing for customer interviews• http://kevindewalt.com/2013/01/21/bad-customer-development-

questions-and-how-to-avoid-my-mistakes/• http://kevindewalt.com/2013/02/02/accelerate-your-customer-

development-how-to-quickly-get-dozens-of-interviews/• http://leanstartup.pbworks.com/w/page/54918676/Customer%20Inter

view%20Templates%20and%20Resources• For managing customer interviews

• http://dschool.stanford.edu/use-our-methods/• http://giffconstable.com/2012/12/12-tips-for-early-customer-

development-interviews-revision-3/• http://giffconstable.com/2013/06/11-customer-development-anti-

patterns/

Customer Discovery Resources

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