INNO 2004 x

From Intuition to Insight:

Desirability, Feasibility &

Viability

Week 2
katrina.lee@flinders.edu.au
 AGENDA - SESSION 2

1. Teams

2. Teams’ Presentations

3. Desirability: Business Model Canvas & the Ecosystem

4. Desirability: Customer Segments & Value Proposition

5. Desirability: Empathy Map, Personas, Customer Journey,

Jobs to be Done

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TEAMS

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 ANNEXES: BUSINESS IDEATION RESOURCES
Idea Working Name: ________________________ Points

1) Big and recognized problem

2) Marketable and Innovative Problem/Solution (e.g. disruptive)

3) Large Market (i.e. global or at least international market)

Assessment
4) Scalable Production (i.e. decreasing marginal costs)

5) Easy Path to Promotion and Distribution (e.g. Potential to go Viral and/or leveraging the
Internet)

Framework 6) Easy to Bootstrap (e.g. client funded and/or low investment)

7) Right Timing (i.e. intersection of demand and capability)

8) Favorable Key Trends (i.e. PEST Analysis)

9) Attractive Industry (i.e. Porter’s Five Forces)

10) I (We) like it!

TOTAL*

Points: Min=1 and Max=5. Discard Idea if Total < 30 Points)

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TEAM PRESENTATIONS
1. Present the 3 innovative initiatives (including
Elevator Pitch)

2. Show the assessment process rationale of the 3

innovative initiatives

3. Display the winning idea

4. Q&A
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 SESSION 2
Every week we start with new ideas!

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 INNOVATIVE IDEAS
Different Types of Fit

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 INNOVATIVE IDEAS
Readiness Level 10 Ready for Investment
9 Business Model Validated
8 Traction Evidences
7 Team Validated
6 MVP 2.0 (High-Fidelity)
5 Product-Market Fit
4 MVP 1.0 (Low-Fidelity)
3 Problem-Solution Fit
2 Interviews Done
1 Business Model Designed

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 THE ESSENCE OF INNO 2004
INNO 2004 BMC TOOLS EXAMPLES OF HYPOTHESIS
Desirability Customer Interviews, Surveys, Landing Pages, Blog, Focus • Do other people have the same problem?
Segments Groups, Experimentation, Secondary Research • How frequently do they feel it?
• How do they feel it? When?
Value Proposition Interviews, Surveys, Landing Pages, Blog, Focus • Do customers have the same problem?
Groups, Experimentation, Secondary Research • Do they like our solution?
• How often would they use our solution?
Revenue Streams Interviews, Surveys, Landing Pages, Focus • Are customers willing to pay for our solution?
Groups How much? How often?
Viability Revenue Streams Market sizing, Value Curves, Perceptual Maps, • Is our market worth more than $100 M?
SWOT Analysis, Financial Plan • Do we have direct and indirect competitors
chopping our potential market?
• How can we continue to make money in 2 or
3 years from now?
Cost Structure Market sizing, Value Curves, Perceptual Maps, • Given our initial investment we will only be
SWOT Analysis, Financial Plan able to loose money for 1 year?
• Can we breakeven in only 3 years from now?

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 THE ESSENCE OF INNO 2004
INNO 2004 BMC TOOLS EXAMPLES OF HYPOTHESIS
Feasibility Channels Interviews, Surveys, Landing Pages, Blog, Focus • Will most of our sales come from the
Groups, Secondary Research Internet?
• Will social media be our main marketing
channel?
Key Resources Interviews, Feasibility study, Secondary • One supplier will be enough to meet
Research demand?
• Resource X and Y are the key ones of our
business?
Key Activities Interviews, Value Chain, Feasibility study, • If we automate activity X will the
Secondary Research product/service become cheaper?
• Can activity Y be outsourced to increase
customer response time?
Key Partners Interviews, Influencers, Feasibility study, • Can we get resources X or Y from key
Secondary Research partners?
• Will our key partners accept a Strategic
alliance or a buyer-seller relationship?

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 THE ESSENCE OF DESIRIBILITY

1) BMC

• Customer Segments
5) Analyse 2) Define
Results Hypothesis • Value Proposition

• Revenue Streams

3)
4) Test
Prioritize
Hypothesis
Hypothesis

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 DESIRABILITY: BUSINESS MODEL CANVAS
A Value Driven Model

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DESIRABILITY: BUSINESS MODEL CANVAS

Desirability
Viability
Feasibility

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DESIRABILITY: BUSINESS MODEL CANVAS
Video

Visualizing Your Business Model (3:40 mins)

https://www.youtube.com/watch?v=wlKP-BaC0jA&list=RDwlKP-
BaC0jA&start_radio=1

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 ECOSYSTEM FRAMEWORK
Political Socio-cultural
Forces Forces
1. List
Resource Competitors Bystanders stakeholders
Providers -Friendly & unfriendly -Government, etc
2. Categorize
-Capital
-People Focal Organization Beneficiaries relationships
-Business model canvas -Customers
-Knowledge
-Direct & indirect
3. Identify power
-Networks Complementary & resource
-Technology Opponents
Organizations flows
-Other -Allies -Disruptors
-Partners -Political foes 4. Identify forces
that distort
Economic Technological 5. Look for insights
Ecological
Forces Forces & opportunities
Forces
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DESIRABILITY: BUSINESS MODEL CANVAS
Video

Navigating your Environment (3:40 mins)

https://www.youtube.com/watch?v=7O36YBn9x_4

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DESIRABILITY: BUSINESS MODEL CANVAS
Key Value Customer
Activities Proposition Relationships

Key Customer
Partners Segments

Cost Key Revenue

Channels Streams
Structure Resources

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 DESIRABILITY: CUSTOMER SEGMENTS

Customer Segments
• Who are our most important
customers? And our users?
• Who are the influencers? And the
decision makers?
• What are the characteristics of our
customers?

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 DESIRABILITY: VALUE PROPOSITION

Value Proposition

• What is the problem that we are

going to solve?

• What is the solution that we are

going to provide?

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 DESIRABILITY: CUSTOMER SEGMENTS
Personas Represent Segments

https://automizy.com/blog/2016/04/copypaste-marketing-segmentation-strategy/

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 DESIRABILITY: CUSTOMER SEGMENTS
Customer Segmentation (B2C)

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 DESIRABILITY: CUSTOMER SEGMENTS
Customer Segmentation (B2B)

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 DESIRABILITY: CUSTOMER SEGMENTS
Examples of Criteria
(B2C) • Demographic
• Age
• Psychographic
• Favorite Brands

• Income • Price Sensibility

• Marital Status • Hobbies

• Education • Lifestyle

• Family Size • Information Sources

• Gender • Sensibility towards Fashion

• Occupation • Influential People

• Social Relationship

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 DESIRABILITY: CUSTOMER SEGMENTS
Examples of Criteria
(B2B) • Demographic
• Business Volume
• Psychographic
• Change Resistance

• Nr. of Employees • Diversification

• Industry • Openness/Inflexibility

• Location • Early Adopter/Follower

• Growth
• Business Age
• Technology
• Served Markets
• Professionalism
• Products/Services
• Risk Aversion
• Position
• Dynamism
• Experience Level

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 DESIRABILITY: CUSTOMER SEGMENTS
Customer Segmentation

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 DESIRABILITY: EXERCISE
LET’S DO A TEAM EXERCISE…

1. Start to develop the Business Model Canvas (BMC) for your

Team Project: Customer Segments & Value Proposition

2. This will be your team BMC 1.0 which can be subject to

pivots/iterations throughout this topic

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DESIRABILITY: EMPATHY MAP

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DESIRABILITY: PERSONA

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DESIRABILITY: PERSONA

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DESIRABILITY: PERSONA

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DESIRABILITY: PERSONA

Source: 2010LUXR INC

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 DESIRABILITY: PERSONA
(Persona Name)
Profile:
(Description of the demographic and psychographic characteristics of the
person. How does the person prefer to communicate with others (i.e.
(Photo) talking, email, phone, twitter, instant messaging, etc.)?
What are the main pains? How does the person overcomes obstacles?
How does the person feels after overcoming the obstacles? What makes
the person happy?

Personal Objectives: Day-in-the-Life:

(Description of the person (Description of what happens during a typical day, including personal,
personal objectives) family social and professional tasks.)

Professional Objectives:
(Description of the person
professional objectives)

(Customer Segment)

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DESIRABILITY: EMPATHY MAP
Video

Citizen M (2:25 mins)

https://www.youtube.com/watch?v=UgtIrUe9CC8

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 DESIRABILITY: EMPATHY MAP
Business Person

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 DESIRABILITY: EMPATHY MAP
Cultural Tourist

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 DESIRABILITY: EMPATHY MAP
Exploring Citizen

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 DESIRABILITY: EXERCISE
LET’S DO A TEAM EXERCISE…

1. Define an Empathy Map for one of Citizen M’s Customer

Segments.

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DESIRABILITY: EMPATHY MAP

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 DESIRABILITY: CUSTOMER JOURNEY
Do not sketch the product, but the story of your problem-solution:

1. Problem stage
2. During the solution
3. Immediately after the solution

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DESIRABILITY: CUSTOMER JOURNEY

http://www.openchange.co.uk/wp-content/uploads/2016/01/Updated-Banking-Journey-Map.jpeg

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 DESIRABILITY: JOBS TO BE DONE

“A “job” is the progress that a person is trying to make in a

particular circumstance.
A job can only be defined— and a successful solution
created— relative to the specific context in which it arises.
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 DESIRABILITY: JOBS TO BE DONE
Job to be Done Framework

https://jtbd.info/replacing-the-user-story-with-the-job-story-af7cdee10c27

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 THIS WEEK - TO DOs
1. Business Model Canvas 1.0 (Customer Segments & Value Proposition)

2. Ecosystem Framework

3. Personas (for 2 customer segments)

4. Empathy Map (for 2 customer segments)

5. Show Jobs to be Done for the Customer Segments and your Segmentation Criteria

6. Start development of the Team Blog

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 RECOMMENDED READINGS
• “Value innovation: The strategic logic of high growth”, Harvard Business Review:
https://hbr.org/2004/07/value-innovation-the-strategic-logic-of-high-growth

• “Business Model Generation”, Alex Osterwalder, pages 226 to 231

• http://www.slideshare.net/profmanishparihar/segmentation-targeting-positioning-11607615

• http://steveblank.com/2010/03/01/death-by-analysis/

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SEE YOU NEXT WEEK !