vichealth physical activity innovation challenge concept development workshop slides
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VicHealth physical activity innovation challenge
concept development workshop
welcome
join the conversation on twitter with @VicHealth
@DoingSomeGood #VHinnov
DAVID HOOD @DavidAHood
JULIAN WATERS-LYNCH @jwaterslynch
doing something
good
workshop program• quick review of previous workshops
• intro to Business Models and Business Model Innovation
• develop Business Model Canvas for your Innovation Challenge concept
• discuss social impact measurement
• design an experiment to test your idea
purposeFor you to leave with:
• a good first go of your Business Model Canvas
final version to be submitted to VicHealth
• ideas and insights in to how you can improve your concept
http://www.businessmodelgeneration.com/book
check in
check in
CHECK IN1. What questions or comments do you have about the
Business Model Canvas (BMC) so far?
CHECK IN1. What questions or comments do you have about the
Business Model Canvas (BMC) so far?
2. Which aspect/s of the Business Model Canvas (BMC) would you like to focus on today?
review
shaping great ideasStart with
why Why are you doing this? What do you believe you can change? What do you believe you can make different/better/easier? What do you believe is possible?
Build your understanding of the context
1 What is the current situation? Who does it impact? What is it’s impact on people, the planet, the economy? What are the possible causes? Observe. Listen. Learn. Enquire.
Identify your target audience
Who are you designing your service or product for? Be specific. Who believe’s what you believe? It’s not everybody.
Get to know your target audience
3 Seek to understand their needs and aspirations, what motivates them and their challenges. Develop user personas and user journeys to provide valuable insights.
Identify the problem you are solving
How does your idea help your target audience to get what they need or what they value? How does it help them to overcome challenges and barriers?
Prototype and test ideas
Gain insights into customers’ needs by designing and deploying the smallest amount of functionality possible (AKA your minimum viable product/service). Evolve the solution based on insights provided by engaged early adopters.
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what are VicHealth looking for?Ideas that address the following criteria:
1. Get more people physically active
2. Point of difference: be clever, timely and unique.
3. Equity: reach the hard to reach and move the hard to move.
4. Scalability: able to be expanded, upscaled or transferred
5. Sustainability: will be able to stand on its own two feet.
6. Partners: recruited a project team that brings a unique perspective
7. Sharable: documented your project so we can share it online
8. Ready to roll!: must be able to test within 12 months
intro to HCD
THE FUTURE OF AUSTRALIAN SPORT SIX MEGATRENDS SHAPING THE SPORTS SECTOR
segments of non-club members with high potential for acquisition
Adults
1. Sidelined Sportsters
2. Club Wary
3. Ponderers
!
!
Children
1. Thrifty Enthusiasts
2. Ponderers
!
"Lean Startup" is a system for developing a business, product or service in the most efficient way possible to reduce the risk of failure. It is an approach that treats all ideas as having assumptions (or hypotheses) that must be validated by rapid experimentation in the marketplace. The approach relies on scientific experimentation, iterative product releases, and customers feedback to generate validated learning.
The key is to identify assumptions - would people actually buy or do this? Not by building the whole product, but by building a Minimum Viable Product (MVP).
The MVP is the most basic version of your product that is valuable to your user, that will enable you to test and learn.
Get more people physically active
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Point of difference
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Equity
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Scalability
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Sustainability
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Partners
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Sharable
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Ready to roll
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How would you score yourself so far?
VicHealth is committed to getting people
more active. The more physical activity you
do, the better your health! So, the more
people you can get being active, the more
impressed we’ll be. Need we say more?
We’re offering start-up funding
to kick-start smart ideas. Your
project should be clever,
timely and unique. Use your
imagination and think big!
We will be impressed by
proposals that cater for
everyone, including those that
are less likely to participate.
Will your project be fair,
accessible and inclusive?
We want to invest in ideas
that have the potential to
go from good to great. Will
it be expanded, upscaled
or transferred over time?
VicHealth can give you a kick
start, but your project will
need to stand on its own two
feet in time. Make sure you
think about the long term
business model from the start.
VicHealth plays a team game.
Who have you recruited to your
project team that brings a
unique perspective, are they
social entrepreneurs? Are they
corporate hot shots? Are they
changemakers?
We want to get as many
people talking about your
project as possible - so
whatever you do needs to be
documented in some way that
we can share online (photos
and video are our favourites)!
You must be able to
test your project
within 12 months of
receiving start-up
funding
Having a great idea doesn't guarantee success. A great business idea must also have a great business model to support and sustain it.
Alex Osterwalder
intro to business models
What is a business model?
8.40 5 mins
Who has used BMC before this workshop?
What are the advantages of BMC over traditional BP?
What was easy about it?
What was hard?
Remaining questions?
What is most useful to explore today?
Def_Business Model
A business model describes the rationale of how an organisation creates, delivers, and captures value.
Source: Business Model Generation
Which part needs more detail?
What
Who
Why
How
Value
Unclear Clear
Unclear Clear
Unclear Clear
Unclear Clear
Unclear Clear
business model innovation
Innovators 2.5%
Edge
Early Adopters
13.5%
Early Majority
34%
Late Majority
34%
Laggards 16%
Core
Chasm
A shared language for describing, visualizing, assessing, and changing business models
The Business Model Canvas
bmgen_final.indd 12 6/15/10 5:31 PM
The Business Model Canvas is a tool for you to design, analyse, test and describe your business model and how your organisation intends to create, deliver, and capture value in a profitable way.
Why use Business Model Canvas?
Fundamentally, it delivers three things:
1. Focus: Stripping away the 40+ pages of ‘stuff’ in a traditional business plan, it can help to clarify and focus on what’s driving the business (and what’s non-core and getting in the way).
2. Flexibility: It’s a lot easier to tweak the model and try things (from a planning perspective) with something that’s sitting on a single page.
3. Transparency: Your team will have a much easier time understanding your business model and be much more likely to buy in to your vision when it’s laid out on a single page.
OFFER
DISTRIBUTION CHANNELS
CUSTOMER RELATIONSHIPS
CUSTOMER SEGMENTS
REVENUE STREAMS COST STRUCTURE
KEY ACTIVITIES
PARTNER NETWORK
KEY RESOURCES
ʻs business model
poor entrepreneurs!
branches!
personal!
micro-loans!
capital!
branches!brand/trust!
lending & collecting payments!
risk management!
government!
people!
capital costs!
interest rates!
getting started
order
[
Customer SegmentsAn organization serves one or several Customer Segments.
Value PropositionsIt seeks to solve customer problems and satisfy customer needs with value propositions.
ChannelsValue propositionsare delivered to customers through communication, distribution, and sales Channels.
Customer RelationshipsCustomer relationships are established and maintained with each Customer Segment.
[ The 9 Building Blocks
CS VP CH CR1 2 3 4
bmgen_final.indd 16 6/15/10 5:31 PM
17
Revenue StreamsRevenue streams result from value propositions successfully oΩered to customers.
Key ResourcesKey resources are the assets required to oΩer and deliver the previously described elements . . .
Key Activities. . . by performing a num-ber of Key Activities.
Key PartnershipsSome activities are outsourced and some resources are acquired outside the enterprise.
Cost StructureThe business model elements result in the cost structure.
R$ KR KA KP C$5 6 7 8 9
bmgen_final.indd 17 6/15/10 5:31 PM
guess
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• use multi-coloured post-its
• can use editable version of PDF
9 business model canvas building blocks
1. description of each block - role/function
2. key question and supporting questions to be asked
3. examples of types of responses
4. things to think about
5. case study
6. work on your own Business Model Canvas
7. questions for Jules and David
1. customer segments
The Customer Segments Building Block defines the different groups of people or organizations an enterprise aims to reach and serve.
Customer Segments
There are different types of market segments:
1. Mass market
2. Niche market
3. Segmented
4. Diversified
5. Multi-sided platforms (or multi-sided markets)
Key Questions1. For whom are we creating value?
2. Who are our most important customers?
segments of non-club members with high potential for acquisition
Adults
1. Sidelined Sportsters
2. Club Wary
3. Ponderers
!
!
Children
1. Thrifty Enthusiasts
2. Ponderers
!
sidelined sportsters
club wary
ponderers
thrifty enthusiasts
ponderers
tips
Customer groups represent separate segments if:
• Their needs require and justify a distinct offer • They are reached through different Distribution Channels • They require different types of relationships • They have substantially different profitabilities • They are willing to pay for different aspects of the offer
activity1. Which market segment are you targeting?
2. Is there a particular niche within that market segment that you are targeting? What is it?
next…• develop 2-3 personas for each of your customer segments
• identify what they value & identify what problems they have
• identify the barriers they face to getting active
• map out a day in the life for each customer segment
• what is their usual routine?
• what are their habits?
• which trend/s are you tapping in to with your concept?
2. VALUE PROPOSITIONS
The Value Propositions Building Block describes the bundle of products and services that create value for a specific Customer Segment.
Value Propositions
Elements from the following non-exhaustive list of quantitative or qualitative values can contribute to customer value creation:
1. Newness
2. Performance
3. Customization
4. “Getting the job done”
5. Design
6. Brand/status
7. Price
8. Cost reduction
9. Risk reduction
10. Accessibility
11. Convenience/Usability
Key Questions
1. What value do we deliver to the customer?
2. Which one of our customer’s problems are we helping to solve?
3. Which customer needs are we satisfying?
4. What bundles of products and services are we offering to each Customer Segment?
Simple Fix for Blown Head Gaskets !
Repairs Blown Head Gaskets in Just One Hour
Tips• Make it as plain as day
• Use your customer’s language. How would they describe the benefits themselves?
• Strengthen your case
• Customer testimonials
• Assurance
• Social proof
3. channels
The Channels Building Block describes how a company communicates with and reaches its Customer Segments to deliver a Value Proposition.
Channels
Channels serve several functions, including:
• Raising awareness among customers about a company’s products and services
• Helping customers evaluate a company’s Value Proposition
• Allowing customers to purchase specific products and services
• Delivering a Value Proposition to customers
• Providing post-purchase customer support
Channel Types & Phases
Key Questions1. Through which Channels do our Customer Segments want
to be reached?
2. How are we reaching them now?
3. How are our Channels integrated?
4. Which ones work best?
5. Which ones are most cost-efficient?
6. How are we integrating them with customer routines?
ActivityCreate a user journey map for each of your personas:
• What touch points do they have with you?
• Where are you best able to give them maximum value on (i.e. a great experience)?
• Which ones might be costing you a good deal but not providing much value for customers?
• Which ones could you potentially create a lot more value through without much effort or resources?
Tourism Australia
4. customer relationships
The Customer Relationships Building Block describes the types of relationships a company establishes with specific Customer Segments.
Customer Relationships
Relationships can range from personal to automated. Customer relationships may be driven by the following motivations:
1. Customer acquisition
2. Customer retention
3. Boosting sales (upselling)
Key Questions1. What type of relationship does each of our Customer
Segments expect us to establish and maintain with them
2. Which ones have we established?
3. How costly are they?
4. How are they integrated with the rest of our business model?
Customer Relationships
We can distinguish between several categories of Customer Relationships, which may co-exist in a company’s relationship with a particular Customer Segment: 1. Personal Assistance
Customer Relationships
We can distinguish between several categories of Customer Relationships, which may co-exist in a company’s relationship with a particular Customer Segment: 1. Personal Assistance 2. Dedicated Personal Assistance
Customer Relationships
We can distinguish between several categories of Customer Relationships, which may co-exist in a company’s relationship with a particular Customer Segment: 1. Personal Assistance 2. Dedicated Personal Assistance 3. Self-service
Customer Relationships
We can distinguish between several categories of Customer Relationships, which may co-exist in a company’s relationship with a particular Customer Segment: 1. Personal Assistance 2. Dedicated Personal Assistance 3. Self-service 4. Automated services
Customer Relationships
We can distinguish between several categories of Customer Relationships, which may co-exist in a company’s relationship with a particular Customer Segment: 1. Personal Assistance 2. Dedicated Personal Assistance 3. Self-service 4. Automated services 5. Communities
Customer Relationships
We can distinguish between several categories of Customer Relationships, which may co-exist in a company’s relationship with a particular Customer Segment: 1. Personal Assistance 2. Dedicated Personal Assistance 3. Self-service 4. Automated services 5. Communities 6. Cocreation
customer development principles1. There Are No Facts Inside Your
Building, So Get Outside
2. Failure is an Integral Part of the Search for the Business Model
3. Iterations and Pivots are Driven by Insight
4. Validate Your Hypotheses with Experiments
5. Success Begins with Buy-In from Investors and Co-Founders
6. No Business Plan Survives First Contact with Customers
7. Not All Startups Are Alike
8. If it’s not About Passion, You’re Dead the Day You Opened your Doors
9. Preserve Cash While Searching. After It’s Found, Spend
10.Communicate and Share Learning
5. revenue streams
The Revenue Streams Building Block represents the cash a company generates from each Customer Segment (costs must be subtracted from revenues to create earnings).
Revenue Streams
A business model can involve two different types of Revenue Streams:
1. Transaction revenues resulting from one-time customer payments
2. Recurring revenues resulting from ongoing payments to either deliver a Value Proposition to customers or provide post-purchase customer support
Key Questions• For what value are customers willing to pay?
• How much are they willing to pay?
• How do they want to pay?
• How will you price your product or services? Will it be a one off purchase? Will their be tiered pricing structure? Will it be fixed, variable or subscription?
• What are other sources of revenue? How much do they contribute to overall revenue?
Revenue Streams
There are several ways to generate revenue: 1. Asset Sale
Revenue Streams
There are several ways to generate revenue: 1. Asset Sale 2. Usage Fee
Revenue Streams
There are several ways to generate revenue: 1. Asset Sale 2. Usage Fee 3. Subscription Fees
Revenue Streams
There are several ways to generate revenue: 1. Asset Sale 2. Usage Fee 3. Subscription Fees 4. Lending/Leasing/Renting
Revenue Streams
There are several ways to generate revenue: 1. Asset Sale 2. Usage Fee 3. Subscription Fees 4. Lending/Leasing/Renting 5. Licensing
Revenue Streams
There are several ways to generate revenue: 1. Asset Sale 2. Usage Fee 3. Subscription Fees 4. Lending/Leasing/Renting 5. Licensing 6. Brokerage fees
Revenue Streams
There are several ways to generate revenue: 1. Asset Sale 2. Usage Fee 3. Subscription Fees 4. Lending/Leasing/Renting 5. Licensing 6. Brokerage fees 7. Advertising
Revenue Streams
There are several ways to generate revenue: 1. Asset Sale 2. Usage Fee 3. Subscription Fees 4. Lending/Leasing/Renting 5. Licensing 6. Brokerage fees 7. Advertising
8. Freemium
Revenue Streams
There are several ways to generate revenue: 1. Asset Sale 2. Usage Fee 3. Subscription Fees 4. Lending/Leasing/Renting 5. Licensing 6. Brokerage fees 7. Advertising
8. Freemium 9. Crowdfunding
33
Fixed Menu PricingPredefined prices are based on static variables
Dynamic PricingPrices change based on market conditions
List price Fixed prices for individual products, services,
or other Value Propositions
Negotiation
(bargaining)
Price negotiated between two or more partners
depending on negotiation power and/or negotiation skills
Product feature
dependent
Price depends on the number or quality of
Value Proposition features
Yield management Price depends on inventory and time of purchase
(normally used for perishable resources such as hotel
rooms or airline seats)
Customer segment
dependent
Price depends on the type and characteristic
of a Customer Segment
Real-time-market Price is established dynamically based on supply
and demand
Volume dependent Price as a function of the quantity purchased Auctions Price determined by outcome of competitive bidding
Pricing Mechanisms
bmgen_final.indd 33 6/15/10 5:32 PM
14
Case Study 1: Skype
Payment Providers
Distribution Partners
Telco Partners
Software Development
Software Developers
Software
Free Internet & Video Calling
Cheap Calls to Phones (SkypeOut)
Mass Customized
Skype.com
Headset Partnerships
Web Users Globally
People Who Want to Call Phones
Software Development
Complaint Management Free
SkypeOut Pre-Paid or Subscription
Hardware Sales
Dia
gram
from
Ale
x O
ster
wal
der,
Busi
ness
Mod
el G
ener
atio
n
6. key resources
The Key Resources Building Block describes the most important assets required to make a business model work.
Key Resources
Key Resources can be categorised as follows:
1. Physical
Key Resources
Key Resources can be categorised as follows:
1. Physical
2. Intellectual
Key Resources
Key Resources can be categorised as follows:
1. Physical
2. Intellectual
3. Human
Key Resources
Key Resources can be categorised as follows:
1. Physical
2. Intellectual
3. Human
4. Financial
Key Questions• What physical, intellectual, human and financial resources
will you need to deliver your:
•Value proposition?
•Distribution channels?
•Customer relationships?
•Revenue streams?
7. key activities
The Key Activities Building Block describes the most important things a company must do to make its business model work.
Key Activities
Key Activities can be categorised as follows:
1. Production
Key Activities
Key Activities can be categorised as follows:
1. Production
2. Problem solving
Key Activities
Key Activities can be categorised as follows:
1. Production
2. Problem solving
3. Platform/network
Key Questions• What key activities are require to deliver your:
•value propositions?
•distribution channels?
•customer relationships?
•revenue streams?
8. key partnerships
The Key Partnerships Building Block describes the network of suppliers and partners that make the business model work.
Key Partnerships
We can distinguish between four different types of partnerships:
1. Strategic alliances between non-competitors
Key Partnerships
We can distinguish between four different types of partnerships:
1. Strategic alliances between non-competitors
2. Coopetition: strategic partnerships between competitors
Key Partnerships
We can distinguish between four different types of partnerships:
1. Strategic alliances between non-competitors
2. Coopetition: strategic partnerships between competitors
3. Joint ventures to develop new business
Key Partnerships
We can distinguish between four different types of partnerships:
1. Strategic alliances between non-competitors
2. Coopetition: strategic partnerships between competitors
3. Joint ventures to develop new business
4. Buyer-supplier relationships to assure reliable supplies
Key Partnerships
It can be useful to distinguish between three motivations for creating partnerships:
1. Optimisation and economy of scale
Key Partnerships
It can be useful to distinguish between three motivations for creating partnerships:
1. Optimisation and economy of scale
2. Reduction of risk and uncertainty
Key Partnerships
It can be useful to distinguish between three motivations for creating partnerships:
1. Optimisation and economy of scale
2. Reduction of risk and uncertainty
3. Acquisition of particular resources and activities
Key Questions• Who are your key partners?
• Who are your key suppliers?
• Who can help you fill any resource gaps or help you provide greater value to customers?
• Who can provide distribution or marketing channels to help you reach your target audience?
• What key activities might they deliver?
9. cost structure
The Cost Structure describes all costs incurred to operate a business model.
Cost Structures
Naturally enough, costs should be minimized in every business model. But low Cost Structures are more important to some business models than to others. Therefore it can be useful to distinguish between two broad classes of business model Cost Structures: cost-driven and value-driven (many business models fall in between these two extremes): 1. Cost driven
Cost Structures
Naturally enough, costs should be minimized in every business model. But low Cost Structures are more important to some business models than to others. Therefore it can be useful to distinguish between two broad classes of business model Cost Structures: cost-driven and value-driven (many business models fall in between these two extremes): 1. Cost driven
2. Value driven
Cost Structures
Cost structures can have the following characteristics: 1. Fixed costs
Cost Structures
Cost structures can have the following characteristics: 1. Fixed costs
2. Variable costs
Cost Structures
Cost structures can have the following characteristics: 1. Fixed costs
2. Variable costs
3. Economies of scale
Cost Structures
Cost structures can have the following characteristics: 1. Fixed costs
2. Variable costs
3. Economies of scale
4. Economies of scope
Key Questions• How much will it cost to initially develop the value
proposition?
• What are the most important costs?
• What’s the cost of your MVP?
• What key resources and activities are most expensive?
social impact measurement
What does success look like?
What can you learn?
PAY(FOR(FAILURE(OR(INVEST(IN(SUCCESS?(#ImpactAU2014$
CONNECTICUT(STATE(RESULTS(
Raised$the$Age$from$16$to$18$
Status$offenders$removed$from$deten)on$
Con)nuum$of$therapeu)c$and$evidence^based$services$at$the$community$level$
Progress$toward$reducing$dispropor)onality$
POLICY DATA
Over$80%$of$youth$comple)ng$supervision$without$re^arrest$
The$number$of$juveniles$referred$to$the$court$is$down$30%$$
Investment$in$family^based$services$for$court^involved$youth$from$$300,000$to$$39,000,000$
Recidivism$at$12$months$is$below$50%$
Between(2000(and(2010(( Between(2000(and(2010((
#ImpactAU2014$
NEW(YORK(POLICY(RESULTS(Between(2010(and(2012
New$&$Stronger$Rela)onships$Across$the$System$
Deeper$Knowledge$of$Programs$&$Services$
Significant$Policy$Changes:$The$Close$to$Home$&$Raise$The$Age$
Commitment$to$Data^Driven$Decision$Making$
Engagement$of$Local$Communi)es$
Empowerment$of$New$Stakeholders$
Exponen)al$Level$of$Original$Investment$
#ImpactAU2014$
NEW(YORK(QUANTIFIABLE(RESULTS(Between(2010(and(2012
Juvenile$arrests$dropped$by$24%$
Juveniles$admiSed$to$deten)on$declined$by$23%$
Juvenile$proba)on$intake$cases$declined$by$20%$
Juvenile$pe))ons$filed$declined$by$21%$
Juvenile$admissions$in$state$placement$were$down$28%$
Number$of$youth$in$state$custody$declined$by$45%$$
#ImpactAU2014$
minimum viable product
Barn Suppers. Image courtesy of Philip Dunda
testing assumptions
“Don’t test your ideas. Test the assumptions that have to be true to make your ideas work.”
Teresa Torres
Lean Startup Experiments
Assumption Testing!Experiment Design!
Hypothesis Participants
!!
Approach & Activities
!!
Expected Data & Actual Data
Learning Goals & Outcomes Decision
BMC Iteration
criteria1. Are there customers who will buy what you sell? What
evidence do you have?
2. Who are your competitors? Not just for similar products but for funds, time, attention?
3. Why would customers use your product or service instead of the competition? How different are you from the competition?
4. How will you respond to new competition?
criteria
5. Is this financially viable/sustainable?
6. Is this replicable and/or scalable? How will you increase your reach or impact?
the pitch
what makes a great pitch?1. Start with why.
1. What’s the problem you’re solving.?
2. Why is it important?
3. What’s the impact? Use memorable facts, figures, anecdotes and metaphors.
2. What’s your solution?
3. Who’s your audience?
4. What do they value?
5. How is your idea different from others out there?
what makes a great pitch?6. Who are you partnering with?
7. What are you building on that already exists?
8. Where are you in the stage of implementing your idea?
9. What do you need to take the next step?
10. How can we help you get there? What would you like us to do?
11. Share your passion.
12. Finish with your tagline.
rocket launch
thank you
join the conversation on twitter with @VicHealth
@DoingSomeGood #VHinnov
DAVID HOOD @DavidAHood
JULIAN WATERS-LYNCH @jwaterslynch
doing something
good
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