Transcripts
1. Welcome to the class!: Hi and welcome. Did you know that
95% of new products tend to fail within
the first couple of years after their lounge. It's quite shocking,
write this number comes from a study conducted by the renowned Harvard
Business School Professor Clayton
Christensen's book, note need to panic just yet. There's a way to increase
your chances of success, and it is true business design. Business design is
a sub-component of product strategy Creation. And it checks whether
your product makes sense from a business
viability perspective. In other words, Business
Design checks value. Product is able to
win in the market. So if you're product
manager, a market here, a product owner or consulted in charge of creating or
managing a new product, then don't go anywhere. This course has everything
you need to increase your product's
chances of success in an attractive,
competitive market. My name is Thibault
Dubois and I'm a manager in one of the largest
consulting firms in the world. My main activities
as a consultant to consist of advising
and guiding business. That is true outright
Digital Transformation. My professional career,
I had the pleasure to work with many product managers, product owners and marketeers in creating new and exciting
offerings for their customers. At the end of this class, you'll be able to confidently use the nine
building blocks from the Business Design
methodology and make sure that your product is
positioned for success. In these nine building blocks, we will look at the value
proposition definition, customer segmentation, customer relationship efficient
distribution channels, key activities, key resources, key partnerships, the an optimal
revenue structure. And finally, Defining
a cost structure. We will do a deep
dive on each of these blocks in the
coming lectures. But now that's enough for me. It's your turn to act. If you feel that this course is something for you,
then hop on board. And if not, maybe next time. In any case, I wish you a wonderful and educational day
and I hope to see you soon. Bye
2. Introduction: Hello and welcome to the
chapter on how to win. In this chapter,
we're going to define a winning strategy by applying something
called business design. Let's first take a look at what business design
can be forest. Business design
is a methodology, applies design principles
and methods to the development of
new business models, strategies, and processes. It combines creativity and analytical thinking to
generate innovative solutions that meet the needs
of our customers on one hand and creates value for organization
on the other half. The ultimate goal of
business design is to create something
that is viable from business perspective and where viable means sustainable
and profitable. More concretely, how it's Business Design going
to achieve this goal? How is it going
to make sure that your service is going to be
sustainable and profitable? Well, it's going to look at it from nine different angles. These are value proposition, customer segmentation, customer relationships,
distribution channels, key activities, key resources, key partners, revenue
structures and cost structures. We will do a deep dive on each of these angles in
the coming lectures. But don't be overwhelmed
by the number of them. Not all of them
might be relevant for your specific
product or service. This is best to at
least think about it. You never know that you
could need to create a competitive advantage and you haven't considered any
of these angles before. Let's enough for
the introduction. Let's sell directly dive
into the first two angles, the value proposition and
the customer segmentation. See you there. Bye
3. Block 1 & 2 - Value proposition & customer segment: Hello, and welcome
to this lecture on a value proposition and
customer segmentation. I have grouped these
two blocks together because the value
proposition is actually a critical element
that describes the unique value
that companies are able to provide to
their customers. It is the reason why
customers choose to do business with a certain company and nuts with its competition. Creating a value
proposition requires a deep understanding of your target customers
and their needs, as well as you also need to have a clear
understanding of how your product or service solves their specific
problems in a unique way. Defining the value
proposition block is not always the easiest. To make our lives, at least a little easier. I would recommend to use
a specific tool called the value proposition canvas
created by strategizing. It is a visual representation
of the relationship between a company's products or services and the customer's
it wants to target. The aim is to create a compelling
value proposition that addresses customer needs and wants with the right
features and benefits. The value proposition canvas
consists of two parts, the customer profile
and the value map. Let us first start
with customer profile. This part of the canvas focuses on understanding
the customer, is involves identifying
the customer's needs, pains, and gains. So we need to understand what's the essential needs
are at our customers, are trying to solve for what do they need to accomplish
or achieve in the future. Then we need to
understand or have a look at what their
pain points are. What are the primary, primary frustrations
and problems that our customers are facing? What obstacles prevent them
from achieving their goals. Finally, we also need
to take a look or make a list of all the gains that our customers are
wanting to have. What do they hope to gain from using our
products or service? What are the desired outcomes or benefits that
are looking for? You can find this inflammation
by different ways, by conducting customer surveys, user interviews, market
research, etcetera. We will have a dedicated session on how to do user research. So don't worry, if this
step seems a little fake. What you want to
do here is to have a sense of the
customer's problem that you're trying to solve. At least that's
definitely a good start. Okay. So that was customer profile. Time to look at the other
part of the value map. This part of the canvas focuses on the company's products or services and how it meets the customer
needs, pains, and gains. It's important that
you link these, both these parts together. So first, you need to list the products or services that you are offering
to customers. Here you should list
all the features that your products is, has in a factual manner, just a list of
everything it does. Next, you need to describe how your product or
service alleviates. Alleviates yes. The customer's pain, points or frustrations
that you listed also in the customer
profile part. And finally, you need to
think of how your products actually creates value
for your customers. What are the benefits
it offers them? What specific
outcomes do they do your customers receive
from using your products? To develop your value map, you can use a variety of methods like analyzing
your product's features, identifying unique
selling propositions, and analyzing your direct
and indirect competition. Once you have completed the
two parts of your Canvas, you can use it to identify areas where your product
or service can improve. In order to meet the other part, the customer needs,
the pains and gains. You can also use the canvas to test whether new
products or services, IDs and features,
and are actually something that the
market is looking for and further refine
them if need be. It's a pretty nice tool, right? You have to repeat
this exercise for every customer segment that you want to target
in the future. You can also take the customer profiling step a
little further by actually conducting or creating a fully fledged persona that
matches your target segment. This would, however, take us outside the scope
of this course, but I have other
courses that are Focusing on creating a persona,
it's more specifically. So, yes, don't hesitate to
check those out if you're interested and if you have
little, a little bit of time. Okay, let's make things
a little bit more practical by looking
at a small example. Imagine that we need to create a value proposition canvas for a new online grocery
delivery service interested in targeting young
and busy professionals. We first start with the right part of the framework,
the customer profile. Remember, the
customer profile is a description of your
target customer, including their jobs or the
needs that pains and gains. Looking at the customer jobs
of these busy professionals, we see that there, their obesity definitely
and that they also don't have a lot of time to focus on grocery shopping. They want to do one pick shop every two weeks and don't go to, and don't go more
frequently than that. In terms of paints, we see that they have
limited availability of quality produce. They also have long
waiting cues in the supermarket and they can't find the products
they're looking for. Then we have the
potential gains, such as them wanting
more convenience, time-saving, and
access to a large, broad scope of products. We're now moving on
to the left part of the framework, the value map. So remember that this
is a description of the features and
benefits of your product and how they can
address the need to paint in the gains of your target customer that you listed in your
customer profile. So to answer the jobs
of your customers, we need to foresee features such as online
ordering systems, home delivery, access to a
wide variety of products, and also some type of
quality guarantee. In terms of benefits or
gain creators or service, needs to translate to a more convenient and
time-saving shopping experience and features that
are focused on that. We also need to
have a broad scope of products that we're able
to offer to our customers. In terms of pain relievers
free to make sure they're having easy access
to quality produce. And also offers peace of mind
with a label of quality. We also need to make sure that the products are easy to find. And of course, last
but not least, we don't want our
customers to wait in the QRS because they're
able now to shop online. Now, we need to bring
both these parts together and
identify areas where our value proposition
might be lacking in leaving open some gaps
so could be improved. The question then we need
to ask curious to me, need to make sure that are
there any jobs, pains, or gains that we haven't
addressed yet in our value map. Are there any features that
you're offering that don't provide a clear benefits
to your target customer. Are there any benefits
that you could add to make your value proposition even more attractive to your
target segment. Looking at back at our case
of the online grocery case, I think we did a
pretty good job at matching both sides together, at matching the gains to pains
to jobs with the value map that we are proposing to our customers. So
there you have it. I hope this is example
clarifies how to use the value proposition canvas to arrive to your unique
value proposition. As you can see, it's quite a handy and
powerful tool that can help product managers to refine
their value propositions. And by, in a very refined way, but by understanding
customer needs, pains and gains and mapping them to the company's
products or services. Businesses create a
strong value proposition that is very precise in meeting the exact customer needs and also provides them
with the desired benefits. Alright, that's already
two boxes down. Let's move on now
to the next one, which is Customer relationships. I hope to see you there. Bye
4. Block 3 - Customer relationships: Hi, and welcome to the lecture
on Customer relationships. Customer relationships are
another crucial element of our business design journey. They refer to the different ways in which a business
interacts with its customers to create and maintain a mutually
beneficial relationship. In this lecture, we
will go over it, a different types of customer relationships and
how you can understand them. Let's first take a
look at the types. I have presented
them in ascending order of customer interactions. The first type of
customer relationship is the transactional one. And this type of relationship, the business interacts with the customer only at
the point of sale. The customer makes a purchase and the business
delivers the product. There is no ongoing relationship
between the two parties. This type of
relationship is most common in retail businesses, where customers come to buy a product and then just leave. The second time of
customer relationship is the one-off relationship. In this type of relationship, the business interacts with
the customer only once, but the interaction
is more significant than just a transactional
relationship. The customer may make
a large purchase or require a complex surface. The business will
provide support and guidance to the customer
throughout the process. But once the transaction is complete, the relationship ends. The third type of
customer relationship is the recurring type. This type of relationship, the, the business interacts with the customer on
an ongoing basis. The customer may be a subscriber or a member
of a loyalty program. The business provides
regular updates, support, and other services to the customers to
maintain their loyalty. This type of
relationship is most common than subscription-based
businesses, psych softwares,
or media outlets. The fourth type of
customer relationship is the co-creation one. This type of relationship, the business and customer work together to create a
product or service. The customer may
provide feedback or IDs and the business incorporates them in
the final product. This type of relationship
is most common in innovative industries like
technology or design. The final type of
customer relationship is the partnership relationship. In this type of relationship, the business and customer work together to achieve
a common goal. The customer may be a
supplier or distributor, or a strategic partner. This type of
relationship is very common in B2B businesses. So these were the different type of customer relationships. But how can you create a winning strategy based
on that inflammation? As a general rule of thumb, you want to constantly
create value for your customers to increase loyalty and customer retention. This naturally translates into higher level of
customer interactions. But you need to be
careful and not over solicits the
customer either. Striking a balance in the intensity of the
customer interaction, is it difficult but
necessary exercise? Take the example of
an insurance broker. You don't want your
customer to constantly be calling you do to a faulty
claim preserve process. The claims process
should be quick and smooth without too
many interactions. On the other hand,
the insurance company could try to
proactively contacts their clients with
their with their new of insurance policies
and offer better coverage. A recommendation that I can give you is to design and customer journey map and identify all the interactions that
you have with your clients. Some of these interactions
can be seen as MIT's or also known
as moment of truth. They are moments that can either break or create a
customer relationship. Let's take the example of
the insurance broker again. One of the main
client interactions is the claims process, which is also considered
to be an MOT. If the broker mess
us up that step, you can be sure to client
will go somewhere else, which makes sense as
an insurance claim is often linked to
a negative event. As a business or
product manager, you need to make sure that these MOT are
identified and covered with great service to not damage the customer
relationship permanently. In conclusion, Customer
relationships are an essential elements of
the Business Model Canvas. Understanding the
different types of relationships and their
significance can help businesses develop a
customer-centric approach and build long-lasting relationships with
their customers. By providing value
support and guidance, businesses create loyal
customers who will support their growth and
success in the future. In order to interact
with customers and build strong relationships, we need to have some sort of communication
channel with them. And that's exactly what we will look at in the next lecture. In the next lecture, we'll do a deep dive on
Distribution channels. I hope to see you there. But
5. Block 4 - Distribution channels: Hello and welcome to the lecture on
Distribution channels. There's a lot to say on
Distribution channels, but I will try to keep
it to the essentials. So what is a
distribution channel? What is it in the first place? A distribution channel
can be defined as a path or a series
of intermediaries, such as a wholesalers, retailers, agents, or brokers, that a product or service
will travel through from the producer to
the final consumer. The purpose of the
distribution channel is to make the
product or service available to the
target customers in a convenient
and efficient way. Distribution channel
can also be referred as a marketing channel
or a trade channel. The distribution channel
can be direct or indirect depending on the
nature of the product, the target market, and the marketing objectives
of the producer. For example, a manufacturer
of electronic products, may sell its products to wholesalers who then
sell it to retailers, who then in turn sell
it to the nth consumer. This represents an indirect
distribution channel. On the other hand,
a manufacturing of customized clothing,
for instance, missiles, products directly
to the consumers, true its own website
or retail stores, representing a direct
distribution channel. As mentioned in the
previous lecture, Distribution channels
have in major impact on the customer relationship and need to be managed very closely. Alright, that's the definition. But it doesn't tell us
much on how to define a distribution channel approach for a product or a surface. There are a couple of
steps that you need to follow in order to achieve that. Firstly, you need to
identify your target market. Who are your
potential customers? What are their
needs, preferences, and behaviors to good
thing that we already identified our target market
in the previous lecture. So you can reuse that one. Next. You should determine the product attributes such as its pricing, packaging, sizing, whether it needs to be
preserved, etcetera. The product attributes can have an important
influence on the type of distribution channels
that you want to use. For example, if the product
is large and bulky, it'd be more suitable for
a distribution through a physical store compared
to an e-commerce. But don't worry if you don't have all this
inflammation yet, you can always make a
couple of assumptions and come back to this part whenever you have
more information. In the following
steps, we should assess the competition and
their Distribution channels. What channels are they using? And how much is each channel accounting for in terms of
revenue and proportions. Knowing this will help you
identify whether competitors left some gaps regarding
their distribution strategy. Think of the clothing
shop that doesn't have a transactional website to which customers can actually
order clothes directly. That's typically
a gap that could, that you could
explore and give you a competitive
advantage over them. Moving on to the
fourth step here, we need to select the
appropriate distribution channel based on all the information
that you have now collected. There's a broad offering
of Distribution channels strategies like
direct and indirect. And we will do a
deep dive on them. Just enter just a moment. Okay, assuming that you have a solid idea regarding your
preferred channel strategy, it is now time to develop
a distribution plan. This should include
details such as how you will deliver your
products to each channel, the frequency of delivery, and the cost of delivery. And the final step
is to implement and monitor your strategy's
effectiveness, track sales, customer feedback, and
other metrics to assess the success of your strategy and make adjustments as you go. I will also give you
a couple of ways to test out the performance of your channels later
in this lecture. Okay, So those were the
steps, but as promised, we will now do a deep dive on the selection of different
distribution strategies. Also, as mentioned earlier, we can make a
distinction between direct and indirect
distribution strategies. The direct strategy,
also known as the direct-to-consumer
or DTC strategy, involves selling products
directly to consumers, bypassing intermediaries
like wholesalers, retailers, and distributors. The advantage of a DTC
strategy is that it allows businesses to have
more control over their brand and
customer experience. There are two types
of DTC strategies, which are online and offline. Online DTC strategies involves the use of online channels
such as e-commerce, your website, social media, telemarketing, direct mail, etc. offline etc. strategies involves
the use of channels such as brick-and-mortar stores and pop-up stores, for instance. Let's take a look at the
indirect distribution strategies You have the wholesale strategy. This strategy involves selling
products to retailers or distributors who then sell the products to the
nth or final customer. This strategy is often used
by manufacturers who don't have their own retail outlets
or e-commerce websites, then you have the
franchise strategy. This strategy involves allowing
other entrepreneurs to operate their own business using your brand name and
business model. Franchisees pay a fee to the
franchisor for the rights to use the brand and receive support in
running the business. Think of McDonald's,
for instance, all their stores
are franchisees. You also have the agent
or broker strategy. This strategy involves using
intermediaries such as agents or brokers to sell
products to customers. The intermediary
receives a commission for each sale that they make. Think of insurance
brokers, for instance. Online markets play
strategies have also become a thing
in the past decade. This includes
platforms like Amazon, eBay, Walmart, and Etsy. The platform you're
currently using is also an example of an
online marketplace. These platforms will try
to bring customers and products together and we'll
take a fee from doing so. So all these strategies are quietly offering not you think. And to make things
even more interesting, you can combine multiple distribution
channels strategies together, which takes us to the world of multi-channel and
omni-channel strategies. Multichannel strategies
involve selling products through
multiple channels, but with less integration and coordination than an
omnichannel strategy. For example, a
business might sell its products to its own
e-commerce website, online marketplaces like Amazon and eBay and
brick-and-mortar stores. But with less effort to create a seamless customer
experience across channels. Then you have the
improved version of that, which is the
omni-channel strategy. This strategy aims to provide a consistent customer
experience across all channels, both online and offline. It means that customers
can interact with a brand through
multiple channels such as a physical store, website, mobile app,
social media and more. And have a consistent and
personalized experience across all of them. To create a seamless
omnichannel strategy, you need five things to work. First, you need to thoroughly
understand your customers. I know that then starting to
sound like a broken record, but you can see it as a
sign of how important this. You really need to know
how they interact with your brand and what channel
they prefer to use. You can collect information
through surveys, data analytics, and
more of sauces. Second, you need to create a consistent brand message
across all your channels. You should use the same brand, the same tone of voice style across all of these channels? No, to create a seamless
experience for your customer. And third, you need
to make sure to integrate different
technologies together. Use applications such as customer relationship
management tools, inventory management systems, and point-of-sale systems to
integrate all channels and provide a seamless
experience for customers without any break forth, you need to create a
personalized experience. Use data and customer
insights to personalize the experience for each customer individually, across
all channels. Provide personalized
recommendations, offers, and promotions to enhance customer experience
based on data insights. Fifth and final step, you need to constantly
measure and analyze all your channels and the interactions between
them so that you can identify areas
of improvement. So that about sums up the selection of
distribution strategies. I also promised that I would
give you a couple of methods to monitor the effectiveness of your distribution channel. So here you go. The most
obvious ways to measure performance are the revenues and costs that each
channel generates. So you should
definitely start there. Knowing this will help you to focus on the channels that are performing well and also will help you to eliminate
the ones that aren't. One approaches AB testing, where you create two versions of the same distribution
channel and test them out simultaneously, and then you will see
which one performs better the same circumstances. Another way is to get a
feedback from customers and understand their
preferences through surveys. Then you have the
analytical tools. They can provide you
valuable insights into how customers interact with
your distribution channels, such as Google Analytics to track website
traffic and behavior. Pilot programs are another
option where you test Distribution channels
on this small scale before launching into
a larger audience. The, this, this will
help you to identify potential issues and make
adjustments before your lounge. Focus groups are another
useful way to get a feedback. Some of small
groups of customers It can be applied in Co-creation workshops when you're still developing or updating your
distribution channels. They provide
qualitative insights into customer
preferences and identify potential issues that
you might not see with quantitative
tracking options. So I hope I didn't
lose you here, but let's perhaps go over a small example to make things
a little more tangible. Say you're launching a
new digital products such as a mobile app, and you want to define a distribution channel
strategy for it. Here's how you
could go about it. Firstly, you need to, as I said, identify your target market. For example, if you're targeting young adults
interested in fitness, you may want to focus on channels that reach that
specific demographic. Next, you need to determine
the product's attributes. What are the key features and benefits of your
mobile fitness app? Is it easy to use? Does it offer unique
functionalities or content, and is it competitively priced? Next, we need to assess
the competition. Who are your competitors
in the mobile app space, and what channels are they
using to distribute their app? Analyze their distribution
strategies to identify gaps in the markets as if
you can fill those app. Okay, Let's now define the
ideal distribution channel. Some common distribution
channels for mobile apps include the app
stores, for instance. So this includes platforms like Apple's App Store
or Google Play. When users search for a new app and can
download it from there. Another possible
distribution channel is social media, which includes, which can help you to promote your mobile app to specific
channels like Facebook, Twitter, Instagram, so on. You also have influencers and bloggers in your
target markets. Partnering with them
can help you to reach new audiences to
promote your app as well. And finally, you also
have paid advertising. This includes using paid
search on Google ads, google science and social
media like Facebook ads. Once you have chosen your
Distribution channels, you need to develop
a distribution plan. This should include details
such as how you will optimize your app
listing for App Stores, how you got promoted
on social media, and what type of budget can you put aside
for advertising? And finally, it's
time to implement your distribution
channel strategy and monitor its effectiveness. Here you should track app
downloads, user feedbacks, and other metrics to
assess the success of your strategy and make
adjustments where necessary. And voila, there you have it. I hope that this little example made things a little
bit more tangible. In the next lecture,
we will cover another block over
Business Model Canvas, which is the key activities
to run your product strategy. I hope to see you there. Bye
6. Block 5 - Key activities: Hello and welcome to the
lecture on key activities. Key activities referred to
the critical tasks that a business needs to perform in order to deliver its
value proposition, maintain customer relationship, and ultimately generate revenue. Essentially, they're
an essential component of the Business Model Canvas. And they help us to identify
the most critical tasks that a business needs to perform in order to achieve
its objectives. One handy framework
that you can use to identify these activities are, is the value chain model. This model gives you a quick and comprehensive overview on the primary and secondary
activities that a company applies in order to create
value to its customers. The primary drivers of value includes activities
such as in bar, inbound logistics, operations, outbound logistics,
marketing and servicing. Wherever these activities cannot create value by themselves, they need to be
supported by activities such as the firm's
infrastructure, human resources, technology,
and procurement. Going to each activity
in detail would take us outside the
scope of this course. The only things that
you should get out of this specific
value chain model is which activities are key for your product
strategy Creation. Okay? Now that we have a
framework to work with, it's time to apply. It. Looked back at the value
proposition that you defined and try to understand which activities are key to deliver
that value proposition. For example, if the
value proposition is to provide high-quality
customer service, key activities might include training customer
service representatives, developing customer service
protocols and procedures, and implementing customer
feedback systems. It is also essential to consider the resources required to
perform these key activities. They help to determine
the level of investment required to reach the objectives you've set out to achieve. These resources may
include people, technology, equipment,
and facilities. We will cover resources in greater detail in
the next lecture. Let's apply this on
a concrete use case. Consider a company that offers a subscription-based meal
kit delivery service. Here's some examples of key
activities that they will need in order to offer that. First step, you have inbound
logistics and operations. The company needs to source high-quality ingredients from local and sustainable sources. Assembling the new kids in a clean and efficient
facility and coordinate with logistics partners to ensure timely and accurate
delivery to end-customers. After that, we have the
outbound logistics. The company needs to manage inventory levels
and showing that ingredients and
packaging materials are ordered and
delivered on time. Optimizing shipping routes
and delivery schedules to minimize costs and
assure timely delivery. We also need to account
for marketing and sales. The company needs to promote the company's services
to targeted advertising, social media campaigns,
referral programs, and managing customer
subscriptions and payments. So that's our distribution
channel here. And finally, there is also
service or customer support. The company needs to provide responsive and helpful
customer support via phone, email, and chats, addressing any issues or
concerns customers may have an actively solicit feedback
to improve their surface. Okay, let's take a look at
the secondary services. If first example, it could be that of financial management. The company needs to track
and manage expenses, forecasting revenue
and cashflow, and developing
pricing strategies to ensure profitability and
growth for the product. Then there is human resources. The company needs
to hire and train skilled employees to work in the meal kit assembly
and shipping facility, managing payroll and benefits, and maintaining a positive and supportive
workplace culture. And a final example is about
research and development. The company needs to
develop new recipes and meal plans to keep customers
engaged and satisfied, and improving the packaging
and shipping process to ensure that the meals
arrive fresh and on time. These are about a few
examples of key activities that such a company needs to execute an order
to be successful. No need to go into
greater detail, but at least try to write down the main activities that
will impact your product. These key activities
are interdependent and essential for the success of the meal kit delivery company. By identifying and
prioritizing these activities, the company can more effectively allocate resources and optimize the operations and
ultimately deliver a better product experience
for their customers. Okay? Once that you have identified all the key activities of
your value proposition, it is important to
prioritize them according to the value that
they create for the client. This prioritization will help to ensure that resources are allocated efficiently and that critical tasks are
completed first I would advise you to use the following criteria
to rank activities. Firstly, you should
identify the impact of each key activity on the business or the
product's overall success. There's involves assessing how each activity contributes
to the value proposition, customer relationships,
and revenue streams. By identifying which
activities have the most significant impact
on the business success, it becomes easier to
prioritize them accordingly. Another factor to consider when prioritizing
activities is urgency. Some activities may be more
time sensitive than others, requiring immediate attention to avoid negative consequences. Therefore, it is essential
to assess the urgency of each activity and prioritize those that need
immediate attention. To give you just
a simple example. Say that you are
an online retailer that offers next day delivery. Then outbound logistics becomes quite a high priority for you and you need to
tackle that first. The resources to that
are required to perform each activity is also an important factor to consider
when prioritizing them. Business must determine if
it already has the resources available to perform
the activities or if it needs to
have additional ones. Activities that require
fewer resources, mainly prioritized higher than those requiring
significant investments. It is also important to consider the dependencies
between Key activities. Some activities may need to be completed before
others can even begin. A rather straightforward
dependency for manufacturers, for instance, is that you first
need to purchase raw materials before you're
able to transform them. So inbound logistics should have a higher priority compared
to other activities. Once you have assessed
all these factors, you should be able to rank Key activities in
order of importance. However, this is not
a one-shot exercise. It is essential that you review and adjust the prioritization regularly to ensure
that it aligns with the changing needs of the
business and your product. By doing so, you're able to ensure that the
business focuses on the most critical tasks required to achieve
its objectives. And then it's resources are being allocated
efficiently, constantly. To give you a concrete example, ESG regulation has
taken Europe by storm, is G stands for environment,
social and governance. These three pillars offer
a regulatory framework to businesses on how to make their activities more sustainable
from an environmental, social, and societal at
governance perspective. Banks, for instance,
had to review their entire retail and
professional invest strategies as they now
had to account for their customers sustainability preferences when
proposing investments. So the priority in
the key activities shifted from servicing to outbound logistics as
the first needed to collect data on the
financial products, ESG characteristics
to then link it to the east cheap preferences
of their clients. So to conclude, defining key activities involves understanding the
value proposition, identifying critical
tasks required to deliver that proposition. Considering primary
functions of the business, identifying resources
required, and prioritizing key activities based on their
importance to the business. As mentioned
earlier, we will now move on to the next lecture, which we'll look at the key resources needed
to fuel those activities. I hope to see you. Bye
7. Block 6 - Key resources: Hi, and welcome to this
lecture on Key resources. Key resources refer to
the essential assets that a business needs to operate and create value
for its customers. These resources can be
physical, such as equipment, inventory or a
manufacturing facilities, or intangible such as intellectual property
or human expertise. So what are the key
resources needed for launching a new product? This, of course,
depends on the type of products you're going to launch. A digital product, for instance, the resources needed
to launch and maintain a digital products
are going to be very different from that of
a physical product. Firstly, to launch a
new digital product, you will need to have a robust technology infrastructure
to function properly. This might include web servers, cloud-based storage, and
cybersecurity measures. Key resources in this
area might include a team of developers,
software engineers, and IT personnel
to build, manage, and maintain the necessary
technology infrastructure. Secondly, and new
digital products may rely on unique
intellectual property, such as software code,
algorithms, or patterns. Key resources here
in this area might include a team of intellectual
property attorneys, pattern specialist, or
licensing experts to protect, monetize the company's
intellectual property. Thirdly, a digital products generates large amounts
of data that must be managed and analyst to
improve the products and provide insights
into customer behavior. Key resources in this
area might include a team of data scientists,
data analysts, or artificial intelligence
specialists to manage and analyze the data
generated by the product. And it's used falsely. A digital product requires a
strong online presence and digital marketing
strategy to generate awareness and demand among
potential customers. Key resources in this area might include a Digital
Marketing Team, a budget for online
advertising and promotions and relationships with key
influencers or media outlets. And finally, a successful
Digital Product Launch requires a strong customer
support infrastructure to address customer
inquiries at issues. Key resources in this area might include the customer
support team, help desk software,
online chatbots, and customer support 2047. Okay, Let's now look at the needs of the
physical products. The key resources in for
physical products as manufacturing, equipment
and facilities. The physical products must be produced using machinery tools, assembly lines, and factories, which are essential to the
manufacturing process. Another key resource for
launching a physical product is raw materials and
access to suppliers. It reliable supplier is
necessary to provide the raw materials required for the products or
productions process. Contracts for raw materials and supply chain management
systems are also important to ensure the
necessary materials are available when needed. Product design and
prototyping is another key resource necessary for launching a
physical product. A team of designers, engineers, and product developers
are needed to create, test, and refine
product designs. This process is important to
ensure that the product is of high-quality and meets the needs of the target markets. Distribution and logistics
infrastructure is also a key resource required for
a physical product lounge. Warehouses, transportation vehicles
and logistics teams are necessary to manage
the transportation and that the timely delivery of
the product to the customers. And finally, sales and
marketing resources are essential for a successful
physical product lounge. A sales team,
marketing materials, and a budget for advertising
and promotions are important to generate awareness and demand among
potential customers. So as we can see, there are quite some
differences between launching a digital products
versus a physical product. It's important that you do this thought exercise
to get it with a group of experts to make sure that you don't omit anything. As otherwise, you might not be able to launch a product at all. My recommendation
would be to use the key activities that you defined earlier as a basis
for this discussion. Okay, that concludes the
lecture on resources. In the next lecture,
we will take a look at the key
partners that will help us to reach our
business design model. I hope to see you there
8. Block 7 - Key partners: Hello and welcome to the
lecture on key partners. Key partners are the external entities
or organizations that help a business to create a liver or promote its
products or services. These entities may
include suppliers, distributors, manufacturers,
and strategic alliances. Let's first try to understand the benefits linked
to employ partners. Firstly, suppliers can
be essential partners in ensuring that you have
a reliable supply chain. If your product requires raw materials or
components, for instance, It's important to
choose suppliers who are trustworthy and have a track record of delivering
high-quality materials. For example, a restaurant relies on suppliers to provide food, beverages, and other ingredients necessary to create its dishes. Secondly, if you do not have the capability to manufacture
the product yourself, partnering with the
manufacturer can be important for bringing your
product to the market. Manufacturers can help
you to create prototypes, refine your design, and
produce your product at scale. It's important to choose a
manufacturer that can deliver high-quality products
at a competitive price. For example, smartphone
manufacturer may rely on the manufacturer to produce components such as screens, batteries,
and processes. Thirdly, distributors
can help you to get your product into retail
stores and other outlets, which can be critical
for gaining exposure and generating sales towards
your target audience. Distributors have
established relationships with retailers and can help you navigate the process of getting your products on the shelves in the hand of your customers. It's important to choose distributors that
have experienced in your industry and has also
abroad distribution network. For example, a book publisher
may rely on distributors to transport and sell its books to retailers and
consumers directly. Fourthly, Marketing
and PR agencies can help you to create and execute Marketing
and PR strategies for your product launch. Marketing and PR agencies
help you to develop messaging marketing materials and coordinates media outreach. It's important to choose an agency in agency
that has also experienced in your
industry and has a proven track
record of success. Briefly, collaborating with
influencers can help you reach a wider audience and generate buzz
around your product. Influencers have established
audiences on social media and count and can
help you promote your products to their
followers directly. It's important to
choose influencers who have a following
that aligns with your target audience
and who have a track record of promoting
products successfully. Sixthly, depending on your
product's and industry, there may be other companies or organizations that can offer strategic partnerships to eat, such as complimentary
products or services. These partnerships can help you expand, expand your reach, and increasing your
customer base, differentiate your product from your competitors, etcetera. It's important to
choose partners who share the same values and have complimentary products
and services that take, that adds to the value
of your offering. To give you a simple example, an automotive manufacturer
may want to partner up with a technology company
to help them develop autonomous
driving technology. So these were some
of the main benefits of partnering up with
an external party. So sounds quite nice. So you might be thinking, why not leave everything
up to third parties? Well, it's not that easy and
it's also not very wise. You see there are a
couple of disadvantages. The first one is shared. Decision-making. Partnerships often
require shared decision-making among members, which can sometimes lead to
conflicts, disagreements. Because partners have different
opinions, priorities, and ideas about how to
conduct a certain business, which can result in delays, inefficiencies and even
block the whole situation. Next, our liability and
other legal considerations. Partnerships typically
involved share liability, meaning that partners can
be personally and jointly liable for the depth obligations and actions of the other. This can expose partners
to financial risks and legal liabilities if the business encounters
legal issues, financial challenges, or breaches of
contractual obligations. Let's also not forget about disagreements on profit-sharing. Partnerships often involve
sharing profits and losses according to pre-agreed
distribution formula. However, differences in
contributions, efforts, or expectations
among partners may arise and lead to disagreements
on profit sharing. This in turn, can
strain relationships, create resentment
amongst each other and potentially result
in legal disputes. Another factor to consider
is the lack of autonomy. Partnerships may require
partners to consult with one another and seek consensus
on various aspects Which can limit
individual autonomy and decision-making authority. As a result, this may in turn cause delays or hinder
Swift decision-making, especially in situations
where it is needed. Further, you have the rise of partner exit or the solution. Partnerships are not always
permanent and can be dissolved due to various
reasons such as retirement, death, or disagreement
among partners. Partner exit or the solution can disrupt the business as usual. And this estate
legal procedures and potential can potentially
result in financial losses. And lastly, you might have the lack of clear roles
and responsibilities. Partnerships may face challenges in defining and clarifying roles and responsibilities and accountabilities for each other. This can result in
confusion, overlap, or neglect of certain
functions, leading to, again, inefficiencies,
conflicts, etcetera, etcetera. These are some of the generic disk benefits that you might encounter when partnering
up with another business. It is however important to note that the specific this
benefits of employing partners in a certain product vary depending on
the agreements, the nature of the business, and the dynamic
among the partners. Knowing this, you need to
make sure that you choose the right partner for the
right business activity. In order to identify key
partners for key activities, I would recommend
that you, again, take the value chain framework
and ask yourself whether an activity should
be done in-house or outsourced to
an external party. The approach I would
recommend is to use a decision matrix and compare the pros and
cons of each option. This is also called a
buy or build decision. You can use the benefits
and death benefits that I mentioned earlier
as a starting point. But keep in mind
that you need to tailor the decision matrix to your specific case as every activity and
partner is unique. Okay. Going Further would take us outside the scope of the course, but I still wanted to give you
a very simplified example. Say that we're a
car manufacturer and that will looking to reduce our overall cost structure because we are going
through a recession. One possibility to
reduce our costs would be to sell or outsourced
non-strategic assets. I would, for instance, be more inclined to outsource
the financing and accounting department
to a partner and to keep the manufacturing
activities in-house. As this is part of
my core business. That way the company can
actually focus its efforts on what it's good at and leave
the rest to the experts. Of course, this example is rather high level
and simplified. In a professional setting, you would normally go
over each activity in much more detail before
taking such a decision. Another example from
the banking sector that I can give you is one of the main activities
of a consumer bank is to receive deposits
and sell loans. Bank will most likely not outsourced their
lending activities to an external party as credit risk estimations are a very well-kept
secret in length. However, a fleet management of its employees might
be outsourced to an external partner
because they will try also to get perhaps a
controlling share in that part. And there you have. That about concludes the
lecture on key partnerships. You now have an idea of the pros and cons linked to partnerships and that making such a decision takes time and a
lot of analysis. In the next lecture,
we will have a look at the revenue structure and we need to build around our product's
strategy creation. I hope to see you there. Bye
9. Block 8 - Revenue structure: Hi and welcome to the lecture
on revenue structuring. A revenue structure
outlines the way in which a company generates revenue throughout its
business activities. So it's all much,
it's going to charge its customers for using
its products and services. In essence, you're launching a new products to ultimately
generate revenues. So we need to get
this part wrapped. Also top tip, if you want
to increase profits, it's easier to try and increase revenues compared
to reducing costs. When developing a revenue
structure for a new product, you should not simply
do price times volume. Need to take a step back and
consider the entire picture, which includes the
following five Ps, which are not to
be confused with the four P's from marketing. You have Pricing, Governance,
pricing, objective, pricing model, price points,
and price elasticity. In the remainder of the lecture, we will do a deep dive on
each of these five Ps. We start with the
pricing governance. This is the ability or
the freedom to define a prize for a product where a company can
set price or not, comes down to the
market conditions in which it's operating. Basically three questions
you need to ask yourself. Is the industry
Heavily fragmented? Or in other words, are there many producers of goods that
holds a small market share? Another question is, the
industry output standardized? Our product's very
similar to one another. And the final question is
whether they are on there are any low barriers
to entry and exit. If your answer yes to
all these questions, then you are a price taker. This means that you can't
really own your price. Let's use a simple example. Say you're a farmer
that sells apples. It want, if one farmer
decides to sell apples at a slightly
lower price point, then it's assumed that
all other farmers selling apples will also sell their
apples at that same point. Otherwise they'll lose
all their customers. In macroeconomics, this is
called perfect competition. Farmers are price takers
and not price makers. A better way for them
to make profit is to focus on reducing
their cost structure, which is something that we will tackle in the next lecture. A real-world example that is
that of products that are sold in bulk like crude
oil, metal, etcetera. If on the other hand,
the farmer is able to differentiate the tuples
from its competition, like Richard taste, brighter
color, largest size. Perhaps the farmer could to some extent define
its own price. Which takes us to the second
P, pricing objective. Defining a pricing objective for fundamentally impacts your
actual pricing strategy. You can set your price
to earn more revenues, block potential entrants,
capture more market share, position and other product force a competitor into acquisition, sent out a message of luxury, reduced amount when supply can't follow,
etcetera, etcetera. Tesla, for instance,
is currently selling their Model tree at a very low price point so that they can capture
more market share. Espresso is another known
expert in price positioning. There are selling their
coffee machine at a lower price points so that
they can easily look in their customers and sell their more expensive coffee pods is a same story with
Amazon and their kindle. These are two examples, but there are many
more objectives out there that you could, could consider when defining
your pricing objective. You also need to understand
that pricing objectives can change over time because
of certain events. Say that you want to
launch a new product. At the beginning. You
might want to get that product in as many
hands as possible. So you might opt for a
lower price point in order to capture a larger market
share from the get-go. After awhile, when customers
know your product, you might want to
increase prices again, to focus on revenue generation
instead of market share. Pricing objectives are
flexible in nature and should be used to support the product strategy
and the marketing plan. This takes us to the third
aspect, the pricing model. The pricing model defines how revenue streams are
linked to the offering. The pricing model
of a business can vary greatly depending
on the industry, the type of product or
service being offered. The target customer segments. Some businesses generate
revenue, true onetime sales, while others rely on
recurring revenue streams, such as subscriptions
or licensing fees. One common revenue model is a transactional model in which a business
generates revenue, true a onetime sales of
products or services. For example, a retail
store generates revenue by selling
products to customers, while a consulting
firm generates revenue by providing
services to clients. Another common revenue model
is a subscription model, in which a business
charges customers a recurring fee for access
to a product or service. This model is commonly used
by Software-as-a-Service Companies such as Netflix, spotify, which charges
customers on a monthly basis. A third revenue model is
the advertising model, in which a business
generates revenue by selling advertising space or promoting
products to its customers. This model is commonly used by media companies,
such as newspapers, websites, which generates
revenue by selling advertising space to
advise advertisers. Facebook is also a
very known example to do that, and Google. So it's important
to define what type of model best fits
your product offering. This is not an easy exercise, as a lot can go
wrong in doing that. You start an airline where passengers pay a monthly fee of €500 and you're able
to board a plane to anywhere in the world as
many times as you want. I can tell you you'll be
out of business in no time. People are most probably
abuse the system and fly London to Tokyo
on a weekly basis. For instance,
needless to say that your revenues won't
cover your costs. This takes us to
the fourth aspect, which is setting the
price point, right? In order to define your
ideal price point, we need to set price
boundaries first. These boundaries will help
us to define a pricing zone. Let's start with the bottom
boundary of our pricing zone. This boundary is equal to the operational cost of
creating your product. You should avoid to go below
that boundary unless you're willing to make a loss on
every product you're selling. One possible pricing
strategy involving operational costs is
called cost-based pricing. Basically, you take the
operational costs needed to make a product and you add a
fixed margin above that. As a result, you are
sure that you're going to make a profit
per product sold. I would, however, not
recommend this type of pricing because it does not reflect what the market is willing to
pay for your product. If the market is
willing to pay more, why not offer a higher price? Will revenue is always better? If, on the other hand, the
market is not willing to pay the price that's covering
the operational cost, then you're in trouble because
we would be making a loss. You'd be forced to review your operational
cost structure or reconsider entering
another market altogether. So in conclusion,
cost-based pricing is a poor pricing
strategy as should just be used as a
bottom boundary. Let's now take a look at
the upper price boundary. This boundary is defined by what customers are willing to
pay for your product. This is also called a
demand based pricing. Here you need to understand how your target segment of values, your value proposition that your product could offer them. You can define this point
by doing market surveys. For instance. The final
boundary which you can consider as the middle boundary is the pricing of your competition. This can be a tricky point, tricky price point to use, because if your
customers perceive your product as being more
valuable than the competition, then you don't really
need to account for it. Think of luxury car prices
versus low-cost car prices. Lamborghini is not really preoccupied with the
price of a dosha. For instance, if however, your product offering is quite similar to that
of your competitor, then their price point
will matter quite a lot. So with these tree price points, you have now created a
price in which you can, should find your ideal price. We have one last
element to consider, and that's price elasticity. You have to understand
that price and volume are interlinked
with each other. In most cases, it's
not possible to change your price without impacting the volumes that
you are selling. The question is, however, by how much will
your volume change if your price changes? And the answer is called
price elasticity. Without going into too much
macroeconomic details, what you actually need
to understand is that a price increase will usually reduce demand
and vice versa. I say usually because
sometimes the relationship between both price and
demand is positive. If a good becomes
more expensive, it becomes more attractive
to some customers. These are called snob goods. Certain clothing
brands might come to mind. But I digress. Volume will react
on price change. All depends on the type
of markets that you're targeting and how
elastic demand is. If demand is price elastic, it means that it
will change more heavily compared
to a price change. Tainted amount for breadth, for instance, say that a baker
decides all of a sudden, it was time to
increase the price of bread from €2 to €20, which is a 50 per
cent price increase. But then he notices
that his demand for bread has dropped
from 40 pieces, one to ten pieces, which is 75% drop. In conclusion, we can say that the mode for bread can
be considered as elastic because the drop in demand was steeper compared to
the increase in price. We also say that customers
are price sensitive. Products often have price
elastic demand when they are substitutes of and many
other competitors. In the case of the baker, It's possible that
customers can get a baguettes instead
at another baker. The other hand, if
prices inelastic, it means that a
change in price will cause a relatively small
change in the mouth. Take Ferrari for instance. If the price of a
Ferrari goes up, it is likely that demand
will not drop by as much. This is because people really want that Ferrari,
whatever the price. This can also be the case
for medication where people have often no
alternative than to buy it. If they want to stay
healthy or get better. Governments will
often try to have pricing rules for
these types of goods. Because pharmaceutics
to, to avoid pharmaceuticals
companies that they abuse their patients by asking
them exorbitant prices. And voila with ties
five pricing aspects, you should have
enough information to define a decent
pricing strategy. I say diesen because
there's a lot more that you can do to
set the perfect price. You have pricing
strategies including extreme price seconds,
pricing segmentation, dynamic real-time
pricing, Building anchoring information as
symmetry and so on, so forth. With these will take us outside the scope of this course and you already have a very good
basis to work with. Let's now move on
to the last element in our business design course, which is the cost structure.
I hope to see you there. Bye
10. Block 9 - Cost structure: Hello and welcome to the
lecture on cost structure. This is the final lecture on business design.
You're almost there. Before we start, I just wanted
to quickly highlight why cost structures do matter for product managers and
creating a product strategy. In general, your business
stakeholders will look at how much revenue will be generated thanks to your
new service or product. But we'll also look at how
much it's going to cost. You can create the fanciest
product on the planet, but if the cost to
create and sell it are larger than the revenues, your product will simply
never see the day. That's because it is not viable. That's why I wanted
to also include the cost aspect with
this out of the way, we can finally start. You might have heard of the
standard cost structure where we divide costs
into two categories, being variable costs
and fixed cost. This is definitely
a good structure when we look at
the company level, but in our case, we're looking
more at the product level. We need to adapt our
approach slightly. You need to consider
the development and the operational cost linked
to a product or service. Let's take a look at the
development cost first. These are the costs
that are linked to the development and
updates of your product. They usually happen on a
non recurring ad hoc basis. First step, we have research
and development costs. These includes expenses related to conducting market research, designing and
prototyping the product, testing and validating it, and making the necessary
modifications and adjustments. R and D costs can range
from relatively low amounts for simple products to substantially large amounts for complex and innovative products. Ongoing R and D expenses are needed to continuously
improve your product. This is needed to
keep your product or service relevant from
a market perspective. Next, we need to account
for manufacturing costs. These costs include expenses associated with
manufacturing the product, such as raw materials, labor, tooling, equipment,
and production facilities. The manufacturing costs can vary greatly depending on the
complexity of the product, the volume of production, and the location of the
manufacturing facilities. Then you also have
intellectual property costs. This includes expenses related to obtaining
patents, trademarks, copyrights, or other forms of intellectual property protection
for your new product. Ip costs can include
filing fees, legal fees, and ongoing
maintenance fees. And can vary depending
on the type and scope of IP protection
that you're seeking. Let's also not forget about compliance and regulatory costs. Depending on the industry
and nature of the product, there may be compliance
and regulatory costs associated with ensuring that
the product meets safety, quality, and other
regulatory requirements. This can include
expenses for testing, certifications, compliance
audits, and documentation. There is distribution and
logistics set up costs if the new product requires distribution and logistics costs associated with shipping, warehousing and fulfillment
may be incurred. These costs can vary depending on the distribution
channels used, the geographic reach of the
product, and other factors. Human resources cost is also
another one to consider. This includes
salaries, benefits, and other expenses related to the personnel involved in the product development process, such as engineers, designers, product managers, and
other team members. Finally, there is
miscellaneous costs. The costs include
costs that are, that don't directly fall in
one of the other buckets, such as travel expenses,
training, software updates, and other miscellaneous
expenses that are specific to the product and
its development process. These were the
development costs. But what about the
operational costs? These are costs that
will be incurred on a recurring basis to keep the product or service
up and running. First up, we have
costs of goods sold. These include the
expenses associated with producing or
purchasing the product, such as raw materials,
labor, manufacturing costs, and any other costs directly related to the production or
procurement of the product. Cost of goods solds can be a
significant operational cost for businesses that manufacture or sell physical products. Next are marketing
and promotion costs. These costs include
expenses associated with marketing and promoting
your new products, such as advertising, packaging, branding,
website development, sales commissions,
trade show expenses, and other promotional materials. Marketing and promotion
costs can be significant and are crucial for creating awareness and generating
demand for the product. Okay. So another cost that you
should consider is related to that of the general
administrative expenses. Gna expenses are the
overhead costs associated with running a
business or running a product and are not directly, let's say, linkable to
the production or to the sales and the volumes
of the products being sold, but are definitely incurred. These costs can include
expenses such as salary and benefits of
administrative staff, rent, utilities, insurance,
office supplies, legal and accounting fees, software and technology costs, and other general
operating expenses. Let's also not forget about customer service
and support costs. These costs include expenses
associated with providing your customers with
good customer support and a good customer service. These can range
from salaries and benefits of customer
service staff, call center operations,
online support systems, warranties, returns and repairs. We also have maintenance
and repair costs for products that require
maintenance or repairs. Ongoing expenses
for parts, labor, and other maintenance
or repair services may also be incurred. Then you also have inventory
and supply chain costs that are also another
important driver. So if the product
or service involves inventory management or
supply chain operations, costs associated with inventory
holding and warehousing, transportation and logistics
may also be incurred. And then there are compliance
and regulatory costs. Depending on the industry and the nature of the
product or service. Ongoing compliance
and regulatory costs may be incurred to ensure that the
product or service continues to meet the
necessary safety, quality, and other
regulatory requirements. Finally, we have training and professional
development costs. Ongoing training and professional
development expenses for employees
involved in handling the product or service
may be necessary to keep them updated with the relevant
skills and knowledge. Okay, these were the costs, but how should you approach these when developing a
new product or service? Well, you should try
to keep these costs as low as possible, at
least for the beginning. Sounds silly, I know,
but this is because you're still operating
with a massive Unknown, which is whether your customers will actually buy
your product or not. Will it be a thundering
success or a big flop? Just imagine a
company's frustrations when it's poured all its
money into developing a vertical echection set
for helicopter pilots and then realizing
nobody wants to buy it for obvious reasons. Of course, this is
just a silly joke, but it illustrates
a painful reality. 95% of products
tend to fail within the first couple of years
after the launch. That hurts. Of course, there are
many methods that will help to mitigate this
high failure rate. We actually touched upon
some of these methods. Think of prototyping,
iterative user testing. But that doesn't change the fact that the company should still be careful and try to keep
costs on the low side, at least until it knows that its product is going
to be successful. This is precisely why iterative and incremental
development methodologies like Agile and MPPs
have been created. It's to create products at a low cost and make
sure that they have actually been tested with actual customers
before going big. This is exactly one of
the topics that we're going to touch upon in
one of the next lectures, where we are going
to talk about what to create exactly
for our customers. And making sure that we
are actually already developing a product
that delivers value, but at a, at a low cost. That we are able to test out our assumptions
upfront before pouring in insane amounts of money
into marketing, et cetera. That's there you have
it. We're just going to do one more lecture
where we are going to review the key takeaways of what we've just covered in
the previous lectures. I hope to see you there by.
11. Key takeaways: Hello and congratulations on finishing the how
to win chapter. Let's quickly go over some
of the main takeaways. So in order to define a business design and
how to win strategy, we actually looked at
nine different angles. The first one is the
value proposition and the customer segmentation. The value proposition canvas
can help to businesses to design and refine their
value proposition by understanding the
customer's needs, pains, and gains,
and mapping them onto the company's
products or services. Businesses can create a
compelling value proposition that meet the customer needs and provides them with the desired outcomes
or benefits. We then looked at various
customer relationship types. We learned at understanding
the different types of relationships and
their significance can help businesses to develop a customer-centric
approach and build long-lasting relationships
with their customers. We also had an extensive lecture on diving into
Distribution channels. We learned that
distribution channels can be defined as series of intermediaries that
a product or service travels through from the
producer to the final consumer. We also had a look at how to
define Distribution channels for a new products and looked at various channels strategies. Omnichannel is the
way to go nowadays. After Distribution
channels, we had a look at the key activities required to run the operations
of the product. We learned that
defining key activities involves understanding
the value proposition, identifying critical
tasks required to deliver that
value proposition, and considering the primary
functions of the business, identifying the
resources required, and prioritizing key
activities based on their importance to
that value proposition. After knowing the
key activities, we also checked what resources are needed to support
those activities. They are the
essential assets that a business needs to operate and create value for its customers. These resources can be physical, such as equipment inventory or a manufacturing
facilities, or, or intangible, such as intellectual property
and human expertise. But luckily, you don't have
to do all of this alone. We also have a look
at what partners could mean and how they
could carry their weight. We understand now that
they can help a business to leverage its resources
and capabilities, increase efficiency
and reduce costs. But we also need to, we also understood that
there's some disadvantages. We need to make a
strategic exercise, whether certain activities
should be built in-house or could be part of the shelves from certain partners up to now, sounds great, but you
also have to know, we're not doing this for free. There is a revenue structure that also needs to be defined. We learned that a
revenue structure outlines the way in which
a company is going to generate revenue and how
much it's going to charge its customers for using
or buying its products. We also learned that in order
to define an optimal price, we had to look at it from
five different angles, which are pricing governance, pricing objectives
to pricing model, the price point and
the price elasticity. Final aspect that we looked at was the cost side of things. We understand that we have
to consider two types of costs when it comes to
launching a new product. These were the development costs and the operational costs. Development costs
includes things such as the analysis which research and development of the products. And operational costs include things such as manufacturing, marketing, logistics,
distribution, and so on. There you have it. With all these elements, you should be able to build a pretty robust business model for your product's service, will help you to define a winning strategy for your
product for the coming years. So that was the final lecture
in the how to win strategy. In the next lecture, we're going to start
a new chapter, which is the what to
create a chapter. I hope to see you there. Bye
12. Project: Hello and welcome to
the practical part of the course, the project. I will need you to first pick a product or service that
you're passionate about. And then I will
need you to create a winning strategy around
it using business design. So when it comes to
picking a product, you can really be creative. Let's your imagination run. I would just suggest to pick something that you
are familiar with. Think of products such
as laptops, music apps, headphones, gaming
consoles, cars, bicycles, or you could
also pick a service. So like concerts,
public transportation, massage session, gym
sessions, etcetera. Next, once you've
picked your product's, I want you to create a
business model around. In order to do that, you will have to look at
the nine different angles, which are the value proposition and the customer segmentation. You also have the customer
relationship definition and the level of interactions
with your customer. Then you also have to move to your distribution
channels that you want to on how you're going
to reach your customers. Then you need to define
the key activities, the key resources that will
support those activities, and whether you want to, certain instance activities
to be actually outsourced to strategic and
external partners. But then again, you have to
think of a decision matrix. And then you will need to define a quantitative side and which is the more the cost structure and the revenue
structure around it. If you're not sure
about how to start, then I will just suggests
that for you to refer back to the previous lectures
where you should have all the information needed
to complete this exercise. In terms of deliverable, I would suggest to use
PowerPoint as it's the most commonly used tool
for this kind of analysis, but you're free to use
whatever you want. Also try to keep your
audience in mind. Just try to think of who will, who is going to see this content and how should it
be structured for? Okay, that's it for me. I wish you good luck
with the assignment. By
13. What are your thoughts?: Hi Thibault here. Congratulations for
finishing the course. I hope you've got
something out of it and it will be helpful in
your future career. In case you'd like to course, please leave a review and let others know what
you liked about it. That seems extremely
helpful to meet, and it's also helpful
for other students. Now, I'll, if I go have a
nice and educational day, Bye
Thibault Dubois, Manager in business consulting
