Lecture 4. Lean business canvas
With this value proposition canvas, you design the value, the value that you deliver to the customers but then we were talking, remember, about business models. In fact, there is another course about business modelling that you can refer to but I wanted to mention Lean Canvas. So, it’s another tool that you can use to design and go on designing your business model.

Lean canvas would have nine elements. So, it’s a simplified version of business canvas that the same Yves Pigneur and Alex Osterwalder have developed. So, lean canvas would start with problems. Problems are exactly your customer jobs you’ve just listed in the value proposition canvas.

Then, secondly, you’d look at the customer segments. Again, you’ve just made this exercise, you’ve just done... went through the value proposition canvas.

Then, the third — you look in the middle — unique value proposition. That’s exactly when you need to formulate what actually your value [is]. And then below you would have this so-called high-level conceptwhen you need to clearly say who you are, you know. Let’s say, you are a festival but what kind of a festival? So, it’s Wow-Concept Festival (I’ve just invented that). But you might think about how you say it in a simple term, so that people immediately trigger what you mean by your product, what value you offer there.

And then you need to offer the outline, the solution — there’s special part for thatand then you have channels. Channel is how you reach the segments, customer segments with your unique value proposition. Then, of course, there are revenue streams: how you can make revenue, what is the pricing model. How do you generate revenue? There are different ways of doing that. Then you have cost structure. What would be your cost to deliver that value? Then, while knowing, looking through all that, you’d know what you key metrics are. For your value delivery, maybe for your revenues, or maybe for your cost because you want to keep them down and your revenues up. And you need to make sure that you know how to measure that your customers are satisfied. What are the metrics for your value proposition?

And then, of course, there’s a final, very interesting point, it’s the unfair advantage. What’s the unfair advantage? In a business model you might have something that is not easy to copy. It means either you have exclusivity with the artist, or you have trademark on something, or you’ve designed such a line-up at your music festival that no one else can repeat. An that’s, in a way... Or you take date in the calendar, music calendar that everyone knows... let’s say, in Lviv, there’s this great Alfa Jazz Festival. And they know that in June, in certain weekend there is this great jazz event in Lviv. And in a way, it’s an unfair advantage, because whoever else would try to do the jazz festival at the same time... well, it’s unfair to them but most likely all the audience will go to Lviv for this Alfa Jazz Festival. And that’s an unfair advantage, and it’s, in fact, fair, it’s fair to have an unfair advantage.

So, you see, that’s how you value proposition canvas transfers into the business model canvas or lean canvas. So, do this exercise in order to make sure that you understand how your value, value that your business, your organisation creates, converts into the actual operational model, business model, and pricing model.


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