Transcripts
1. Intro: What if I told you,
history is full of great products that disappeared simply because they had
their own business model. Famous brand success has less
to do with what they sell and everything to do with how they design
their business models. And the best part, you
can design what, too. Hi, I'm Emmanuel. I'm the owner and founder of
Accolade Coaching, an innovation coaching firm. I started back in 2012. I'm also a licensed Strategyzer a coach, and over the years, I've worked with everyone from global corporation
to small startups. All focus on one thing, helping them create
business model innovation. And here's the truth. It doesn't matter how big or small
your business is. You can create business
model innovation, too. So this class is
for entrepreneurs, solopreneurs and business owners who are looking to do
things differently. Now, that being said,
it's not for everyone. Some businesses just
don't need this as much. If you're a
traditional retail or maybe you're an accountant or maybe a care service provider, what we normally call
business as usual, you might be perfectly happy just doing things the
way you always have. But if you rely on
creating something new, whether that's a new products or new services or entirely
new ways of doing business, then this class is
definitely for you. So grab a pen, grab a coffee, and maybe even lock the
kits and pats away safely, of course, because it's time to focus on your business model.
2. Project Setup: In this class project, you'll be building
an entire business model from scratch. Now, this is where you get to take ideas
from the lessons and actually put them into practice. So you have two ways to approach this. First, you can choose one of the example
projects I've prepared for you. You'll find this list inside
the project and resources tab. Or if you prefer, you can use
your own business or ideas. Now, if you decide to go and with your
own, just a quick reminder, please be mindful of your own intellectual property. You need to only share what you're
comfortable of making public because obviously the project tab is public. You are fully responsible for what
you decide to share, not me. To create your project,
you'll need a business model canvas. I've made a PDF available
for download inside the project and resources tab. Look, there's nothing really
special about this file. It's just a file with the nine building
blocks and the business model canvas. You can essentially download
the canvas for free anywhere online. But I've included here just
to make things easy for you. If you rather go digital, you can use
any online whiteboard tools you like. There's Miro, there's Mural, or Canva. All have ready to use business
model canvas templates. You just open one up, start filling it in,
and you're good to go. Now, once you design your business model,
take a screenshot and upload it right here in the project and resource tab. If you're using an online whiteboard,
you obviously need to make your canvas public and share the link in this same
tab so I can have a review for you. The key here is to show your work. Don't worry about making it perfect. This is experimenting, practicing,
and discovering how different pieces of business model fit together.
3. Innovation 101: Beyond Just Products: When most people hear the word innovation,
they immediately think of products, a shinier gadget, a cool new feature,
or some breakthrough technology. But that's only part of the picture, and
often not even the most important part. At its heart,
innovation is simply the process of creating new or better
solutions that add value. Now, that could mean a new a way
of working, a smarter process, an improved service,
a stronger value proposition, or even a completely new business model. Put even more simply,
innovation is about finding better ways to create and deliver value. So sometimes this shows up in the product
itself, but more often, it's in everything around the product,
how it's delivered, how it's paid for, or the experience that comes with it. And here's the part that
That might surprise you. Many of the world's most famous companies
don't stand out because their products are unique. They stand out because of the way
they design their business models. Now, to understand this better,
it helps to look at innovation through the four lenses: desirability,
feasibility, viability, and adaptability. Desirability ask,
do people actually want this? Now, Now, this is the most important lens. You can build the most advanced product,
have the slickest technology, and raise all the fundings in the world. But if nobody wants it,
nothing else matters. A clear example of this is Quibi,
the short form video platform that raised almost $2 billion and had some
of Hollywood's biggest names involved. So on paper, everything looked right,
but customers just didn't care. There was no real desirability,
and the company shut in less than a year. Visibility asked, Can we
actually make this work? So it's one thing to have a great idea,
but another to have the skills, resources, and technology to pull it off. A classic cautionary tale here is teranos. The promise of rapid,
accurate blood testing was incredibly desirable, but the technology
simply wasn't feasible. So in the end, the product couldn't do
what it claimed, and the entire company When the company collapse, viability ask,
will this idea make sense financially? You might have something people want,
and you might even be able to build it, but if the numbers don't
add up, it won't survive. Let's take an example of Webvan,
the online grocery delivery company from the dot-com boom. Customers wanted. Desirability was there,
and they could deliver groceries, so feasibility was clearly there. But the business model
itself wasn't viable. The costs were too high,
the margins were too thin, and they burned over a billion
dollars before shutting down. Adaptability ask, can this
survive and thrive over time? You see, market shift, competitors arrive,
and customers needs change. If your idea can't adapt, it won't last. Now, think about the Windows phone. Microsoft had the resources
and the technologies, and smartphones were certainly desirable
back then, but they couldn't adapt quickly enough
to the fast-moving mobile ecosystem. Developer didn't build apps,
user didn't stay, and eventually, the platform was abandoned. So looking at innovation through these
four lenses gives us a complete picture. It's not just about having a cool idea,
it's about making sure it's desirable, visible, viable, and adaptable. But here's the thing. No matter how clever or ambitious your
idea is, you always have to start with desirability. And desirability comes down to only
one thing, which is your customers. If people don't want what you're offering,
it doesn't matter how feasible, how viable, or how adaptable
it is, it won't matter. And that's why customers are at the center
of every innovation, because without them, nothing else works. So before we dive deeper into designing
the next step is to talk about customer segments, or simply put,
finding your crowds.
4. Customer Segments: Finding Your Crowd: Every successful business model
starts with a simple question. Who are you creating value for? Now, we call this your customer segment,
but in plain language, it just means your crowd, the specific
group of people you're trying to serve. So traditionally, businesses have defined
customer segment using things like demographics, which is age, gender,
income, geography, which is where they live,
or psychographics, which is their interests or lifestyle. Now, this can be helpful, but they only
describe the customer on the service. They don't always explain
why people actually buy. And that's where the jobs to be
done approach or JTBD, comes in. Originally developed
by Harvard Professor Clayton Christensen, and now widely used by companies
and innovation coaches around the world, JTBD shift the focus
from who your customers are to what they are trying to get done. And here's the key idea. People don't buy products. They hire solutions to do a job
in their lives. And when a product does the job, well,
they keep it. When it doesn't, well, they fire
it and move on to something else. So think about it. Nobody buys a drill because
they love drills, right? They buy it because they
need a hole in the wall. Nobody subscribe to a fitness
app because they love apps. They do it because they want to feel
fitter, healthier, or more confident. So when you start thinking in terms
of jobs to be done, your customer segment becomes much clearer. Instead of saying 25 to 34 years old
who live in cities, you're saying people who want to get fit
but don't have time for the gym, or people who need design assets if you're
selling designs, quickly without hiring a designer. Now, this matter because innovation always
starts with desirability, and desirability comes from solving
a job your customers truly care about. So here's your task for this stage. Take a few minutes to jot down two or
three possible customer segments for your project. Now, for each one of them,
describe not just who they are, but also what job they're hiring
your product or service to do. Now,
I encourage you to pause here and do this now because in the next section,
we'll be talking about pains and gains, and those will only make sense
once you've identified the jobs. But don't worry,
if you rather keep watching and come back later, that works too. What's important is that you capture those
customer jobs before moving too far ahead.
5. Pains & Gains: Understanding What Matters: In the previous segment,
we talk about customer segments and the job they're trying to get done. If you haven't taken the time to list
those out yet, I encourage you to pause and complete that exercise
before moving on. It will make everything in this
lesson more practical and meaningful. Now, once you know the jobs your customers
are trying to get done, it's important to remember that every job
has two sides: the pain customers want to avoid
and the the gains they hope to achieve. Pains are the frustration, obstacle,
or risk that gets in the way. For example, if someone's job is to stay
fit, their pain might include not having enough time, struggling with motivation,
or finding gym memberships just too expensive. Gains, on the other hand, are the positive
outcomes customers are looking for. In that same fitness example,
gains could be feeling healthier, looking better, having more energy,
or building confidence. Now, why does this matter? Because when you truly understand
the pains and gains of your customers, you can design a business model
that connects directly to what they care about most. So let's make this concrete. Imagine a small business owner whose job
is to market their products online. Their pains might be not enough time,
juggling too many tools, and not knowing which strategies actually work. Their gains might be attracting more
customers, saving times, and feeling confident that their
marketing is paying off. Here's something that
often gets overlooked. Gains are not always just
the opposite of pains. Now, this is a very subtle
but powerful distinction. So think about paying a meal for a second. If your credit card doesn't work,
well, that's clearly a pain. But when it works,
that's not automatically a gain. That's just expectation. Or take a coffee run. If your order comes out in two minutes,
well, that feels like a gain. At five minutes, it's fine.
It's normal. Nothing special. At 10 minutes, well,
that it turns into a pain. In other words, pains and gains often sit
on a continuum, not just the opposite ends. Sometimes, more isn't better,
like when a coffee is so hot that you can't drink it. As When you map out pains and gains,
here are three things to keep in mind. First, set the expectation bar. What's acceptable, what's frustrating,
and what's truly delightful? Secondly, look for minimums. Many pains and gains are points
on the same scale, not opposites. And third, spot the boundaries. When does more stop being helpful
and start becoming harmful? So your task at this stage is for each
of the customer segments you listed earlier,
write down at least two pains and two gains connected to their jobs to be done. And as you do this,
pay attention to whether they're true opposites or whether they sit
on a continuum or go beyond expectations. Now, if you take the time to do this now,
you'll get much more out of the next lesson,
where we'll look at value proposition and how to design offers that directly
relieve pains and create gains your customers actually care about.
6. Value Proposition: Designing Offers That Matter: In the last segment, we talk about the
pains and gains of your customer segments. Now it's time to take the next step,
designing offers that directly connect to those pains and gains. And that's what we call
your value proposition. So a value proposition is simply answering
the question why your customers should choose you. It's the promise of how your product,
your service, or your business model will will help them get a job done by relieving
their pains and creating the gains they care about most. And you can think of it as the bridge
between what your customers need and what you're offering. A strong value proposition works because
it speaks directly to the customer's biggest frustration
and most important desires. And here's the part
where many people miss. Your product and services are
just one piece of the equation. By themselves,
they don't explain the value. What matters is how those products
and services actually relieve pain and create gains. So let's look at the famous example,
the early days of Netflix. Not the streaming giants we know today,
but back when it was started as a DVD by mail service. So if you live in those days,
you will be familiar that if families wanted a weekend entertainment together,
they usually went to a video rental store like Blockbuster. That meant piling everyone into the car,
browsing the shelves, and then remembering to return
the DVD on time to avoid late fees. Well, it worked, but it
came with plenty of pain. And then comes Netflix. So Netflix products mailing DVDs
to customers, it sounds simple on the surface,
but when you map it to customer pains and gains, its value becomes clear. The job customers were trying to get done
was weekend entertainment with family. The pain included late fees,
limited selection at the store, and the hassle of making trips back and forth. The gains people wanted were more choice,
more convenience, and stress-free family time together. So by mailing DVDs with no late fees,
a wider library, Netflix relief pains and created gains in
a way traditional video stores couldn't. And that's what made their
value proposition so compelling. So instead of saying, We rent DVDs,
their value proposition was a lot closer to something like, Enjoy unlimited movies
delivered straight to your mailbox. No late fees, no trips to the store, just
more choice and easy family time together. So you see the difference? The first version is just a plain product. The second version connects that product
to customer pains and and gains, and that's what makes it matter. So that's the process you'll
use for your own project. First, start with your product or service,
whether it's a digital tool, a handmade item, or a service you provide. Secondly, ask the question,
which pain does it relieve? Which gain does it create? And finally, combine those into a clear,
simple statement that shows why your customers should care. Now, to make it even easier,
here's a simple Adlib template. You can use it as training wheels. We help customer segment
who struggle with pain by offering product or service so they can gain. So your task for this stage is to write
one or two sentences that bring it all together. Use the template if you like,
or free write in your own words. Keep it simple. Focus on the most
important pains and gains. Then use your products or services as the
proof points for how you deliver on them.
7. The Business Model Canvas: Completing the Picture: So far, we've covered a lot. Customer segments, their jobs,
their pains and gains, and how to design a value proposition that speaks to them. Now, if you stop here,
you already have the ingredients for something incredibly powerful,
which what usually referred to as product-market fit. But here's the problem. If you stop at product-market fit,
you're building only on half a foundation. Now, you might have a great product or
service that solves real customer problems, but without a full business
model, you're exposing yourself to big risk. Think about it. You could design an amazing value
proposition, but what if you don't have the right channels
to reach your customers? What if your revenue model can't sustain
the business, or your costs grow faster than your income? Without looking at the bigger picture,
even the best ideas can collapse. And that's where the business
model canvas comes in. The canvas was first introduced
by the best-selling book, Business Model Generation,
co-authored by Alexander Osterwalder, who is also the founder of Strategisa. Now, since then,
it's become one of the most widely used tools for entrepreneurs,
startups, and even global corporations, and for a good reason. It takes something as complex as
a business model and lays it out on a single page. Now, the business model canvas is made up
of nine building blocks, each representing a key part of how
a business creates, delivers, and captures value. These are customer segments,
value propositions, channels, customer relationships,
revenue streams, key activities, key resources, key partnerships,
and cost structures. And put together, they give you a complete
picture of how your business actually works, not just the part customer see,
but also the engine that keeps it running. Now, if your head is spinning or about
to explode after hearing all nine, don't worry, you don't need
to master them all in one go. We'll take them step by step. And here's the good news. We can actually simplify them by reframing
the nine blocks into three of the four innovation lenses we talked about earlier. Desirability shows up
in the customer-facing blocks, customer segments, value propositions,
channels and relationships. Visibility is about the engine behind
the scenes, your key activities, key resources, and key partnership. Viability comes from your revenue streams
and cost structure, making sure the numbers actually add up. Now, the only lens not fully captured here
is adaptability, which we'll come back to later when we talk about how
businesses evolve over time. So as we move forward,
we'll use the business canvas as our framework,
filling it in block by block until you've built a complete working
model of your business.
8. Desirability: Channels and Customer Relationships: Up to this point,
we've been working on the desirability side of the business model canvas. We started with customer segments,
finding your crowd. Then we moved on to value propositions
to design offers that matter. To complete desirability,
we need two more blocks, channels and customer relationships. Channels are the path customer use
to discover, evaluate, and get your offer. In practice, think of the touch points
where they hear about you, explore what you do, sign up or buy, and come back. Depending on your business,
this might include your website, online store, landing pages, your email,
your social media, marketplaces, or even an app. The goal is simple. Make it easy to find you and easy
to get the value you promise. On the other hand, customer relationships
describe the connection you build and maintain with customers. Is it high touch and personal,
which is popular in businesses like coaching and consulting? Is it mostly self-service and automated,
which is common in subscription business and software as a service? Is it community-driven or something like
forums, which is Discord and Patreon use? Or a thoughtful mix? Now, the right relationship matches your
segment's expectation and reinforces your value proposition. Let's see how this plays out in early
Netflix, which is the DVD by Mail business. Their channel was the website
or online platform. That's where customers discover titles,
manage their queue, subscribe, and control the experience. And yes, the DVDs do arrive at home,
but the customer channel experience lived online. Their customer relationships focus
on trust, simplicity, and reliability. A clear subscription, an easy queue, quick
turnarounds, and crucially, no late fees. This combination reinforced their value
proposition, which is more choice and convenience with less hassle. Notice how channels
and relationships complete the story. Customer segments tell
you who you're serving. Value propositions tell
you what you're offering. Channels explain how
people find and get it. Customer relationships show how you
keep the connection strong over time. Together, these four blocks give you
the full picture of desirability, everything that makes customers say,
Yes, this is for me. Your task for this stage is to take
the customer segment and value proposition you've already drafted and add two layers. First, list the primary channels you'll
use so customers can discover you and easily get your offer. For example, a website, landing page,
newsletter, specific social platform, or marketplace. Second, describe the relationship
style you'll maintain. Is it personal or high touch? Is it self-service Is it
continuous or automated? Is it community or a blend? Keep it simple and realistic. Focus on the few touch points
that matter most to your customers. Now, once you've done this,
you've completed the desirability lens. Customer segments, value propositions,
channels, and customer relationships. From here, we'll shift to how you make it
work behind the scenes with the visibility side of your business model.
9. Feasibility: Building the Engine: If desirability is about making sure
customers actually wants what you're offering, then feasibility is about
making sure you can actually deliver it. Now, think of this lens as the engine
of your business model, the behind-the-scenes machinery
that powers everything your customers see and experience. Now, when we do this exercise
with clients, most people fill it out very quickly, and it makes sense. Because by the time you're building
a business, you usually already have a good sense of how your engine works. You know what resources you need,
what activities you perform, and who your main partners are. In other words, it often
feel like second nature. But here's the danger. Because it feels so obvious, many people
don't stop to think deeply about it. And when you skip over it,
you risk missing hidden weaknesses or opportunities to innovate. And that's why it's worth slowing
down and working through each piece. The feasibility side of the canvas has
three blocks: key resources, key activities, and key partnerships. Key resources are the most important
assets you need to make your business work. Now, this could be physical,
like delivery vans, or they could be human,
like skilled staff or creative talents, or they could be intangible,
like brand reputation, intellectual property, or even a technology. For early Netflix,
one of the most critical resources was the website and recommendation platform. Customer didn't just use it to sign up. It was where they discovered new titles,
managed their queues, and interacted with the entire service. Now, without it, their value
proposition would have collapsed. Key activities are the essential things
your business must do every day to deliver on your value proposition. What do you absolutely
need to be great at? For Netflix, it was managing logistics,
processing orders, shipping DVDs quickly, and keeping inventory flowing so
customers always had fresh titles. Without that, their promise of convenience
and choice would have fallen apart. Key partnerships are the external players
you rely on to make your business work. Very few businesses succeed alone. Netflix, for example,
depended on the post-sales service to deliver DVDs to the customers. They also partnered with movie studios
to secure the rights to distribute titles. Without those partnerships,
there simply wouldn't have been a Netflix that we know today. Now, let's talk about a common mistake. People often assume that everything is
a key resource or everything is a key activities, when really it isn't. Take a website for some businesses
is not actually critical. A local café might thrive purely through
location and word of mouth with no website at all. For Netflix, though,
the website was absolutely essential. The entire customer
experience ran through it. The same goes for activities. Many entrepreneurs think they need to be
doing constant social media posting as key activities, just an example. But that's not necessarily true. For some businesses,
social media is nice to have a channel to increase visibility,
if you like, but not essential to delivering their core value proposition. For others, for example,
like a content creator whose audience lives on Instagram or TikTok,
social media is the key activities. My point is this,
what's key depends entirely on whether your business model would fail without it. Now, all this together, resources,
activities, and partnerships form the backbone of feasibility. They are what turn your idea
into a working business. So your task for this stage is to take
the value proposition and desirability blocks you've already mapped out
and now ask yourself, what are the must-have
What resources I need to make this work? What are the critical activities
I need to perform consistently? And who are the partners
I can't succeed without? Don't just list everything you might use. Focus on the essentials,
the pieces of the engine that really keeps your model running. And once you've done this, you'll have
a clear view of your visibility lens. And once you know that you can actually
deliver what we'll be ready to talk about whether
the numbers add up, which is the viability part
of your business model.
10. Viability: Making the Numbers Work: Now that we've covered desirability,
which is what customer wants, and feasibility,
which is the engine that makes it possible, it's time to move
to the third lens, viability. And let's be honest,
this is usually something that's everyone's favorite part because, yes,
we finally get to talk about money. Viability is about making
sure the numbers add up. Now, it's not enough to have a product
people love and the ability to deliver it. If the economics don't work,
the business can't survive. In the canvas, viability comes down to two
building blocks, revenue streams and cost structure. Revenue streams describe how your business
earns money from delivering value. Now, this might be one-time sales,
subscriptions, licensing, advertising, freemium upgrades,
or a mix of different models. And the key here is to connect
back to your value propositions. What exactly are customers
paying for and how? Take early Netflix. Their revenue stream was simple
but powerful, a monthly subscription fee for unlimited DVD rentals. Now, that might sound obvious today,
but at the time, it was a very bold shift against the industry standard. You see, traditional DVD rental companies
earn money through per rental fee, with a big chunk coming from,
you guessed it, late fees. Now, Netflix flipped that model
by introducing subscriptions, removing late fees entirely,
and making money through predictable and recurring revenue instead. Now, this is a great reminder for all
of us that revenue models aren't set in stone. They can be reimagined. What looks normal today might be
completely disrupted tomorrow by a smarter approach to capturing value. Now, let's look at the cost structure. This is What are the expenses required
to operate your business model? Both fixed costs, which is like salaries,
technology or rent, and variable costs, which is like
shipping, printing, or transactions. Now, for Netflix,
major costs include shipping DVDs, managing inventory,
and maintaining their website. Here again, they challenge assumption. Most people assume DVD rental
companies needed physical stores. Well, Netflix proof that you could deliver
the same entertainment value without the overhead of retail space. Together, Netflix shift
in revenue model and cost structure created a business that was more scalable,
more convenient, and more sustainable than the traditional rental store model. And that's the bigger lesson here. Viability is not just about
making the numbers balance. It's about questioning the traditional
way money is and costs are structured. So your task for this stage is to write
down the main ways your business earns money or could earn money,
and the key costs that come from delivering your value proposition. Then take a step back and ask yourself,
Am I just copying what's normal in my industry? Or is there a different way to think about
revenue and cost that could set me apart? And Don't worry about being perfect. This isn't a financial statement. And the goal here is simply to see whether
the story you've been building is financially sustainable. Now, once you've mapped your revenue
and cost, you'll have the full picture of viability. And with desirability, feasibility,
and viability all in place, we'll be ready to talk about
the final piece, adaptability. How your business model can evolve
and survive in a changing world.
11. Adaptability: Thriving in a Changing World: So far, we've built up a complete picture
of your business model across three lenses. Desirability, which talks
about what customer wants. Visibility, talks about
how you deliver it. And viability, talks about
how the numbers add up. With all these three in place,
you've got a strong foundation. But here's the reality. Even the strongest business model
can fail if it cannot adapt. Market shift, technology evolves,
customer behavior changes, new rules are being introduced. And sometimes, society itself takes
a sudden turns, like what we all experience during COVID. And that's why the fourth lens of
innovation, adaptability, is so critical. Adaptability is about asking,
how resilient is your business model when things change? Can it evolve or will it break? We've seen both What's the side of this? You remember Windows phone? On paper, Microsoft had
everything going for it. Resources, technology, distribution,
brand recognition. But it couldn't adapt fast enough after
the explosions of iOS and Android ecosystem. So despite all its assets,
the model liked the flexibility to attract developers and build
the ecosystem customers wanted. Billions were invested, but the product
couldn't survive in the end. Now, contrast that with Netflix,
who started with DVD by mail, then shifted into streaming,
and eventually into producing their own content. Each time, they spotted
the signals of change. Faster internet speed,
growing appetite for on demand content, customer frustration with DVDs, and so on,
and then move before others did. That adaptability transformed them
from a niche rental service into a global entertainment leader. And here's a question I got
to ask a lot by clients. How do we actually find these signals? Well, the truth is, if you're an industry
insider, you're often aware of them long before the general public. They rarely come as a total surprise. They would bubble in the background
for years, but many businesses ignore them until it's too late. So that's exactly what
happened with Windows phone. Microsoft saw With no iOS and Android
taking off, app ecosystems exploding, and developers moving elsewhere. So the signals were loud and clear,
but they chose to downplay them. And by the time they reacted,
the market had moved on. Take the rise of AI as another example. Now, I'm not an AI person myself,
but every AI entrepreneur I've spoken to has told me the same thing. They knew this was coming. The research, the breakthroughs,
the investments, the signals were all there years before ChatGPT. So when ChatGPT launched in 2022
and the world suddenly noticed, insiders weren't surprised. They already know well ahead of time. And again, Netflix is another good
example of watching signals closely. Their pivot into streaming
wasn't a gamble. It was a response to clear trends. Broadband Internet was spreading,
digital content was becoming mainstream, and customers were tired
of late fees and physical DVDs. They connected the dots and adapted early. And by the way, it's not
just about technology. Regulation can force change,
like new data privacy laws that push companies everywhere to rethink
how they handle information. Societal shift can reshape industry, too. Covid, as you know, turn delivery services
services, remote work, and telehealth from nice to have
extra into everyday expectations. The key here is to train yourself to keep
asking, are customers really shifting their behavior, or is this just hype? Are competitors solving
problems in ways I cannot? Is there a new technology that could
make what I do irrelevant? Could a regulatory change
force me to adjust? Or more broadly, is society
redefining what normal looks like? A great business model today won't
necessarily be a great business model tomorrow. But if you make it a habit of spotting
these signals and running small experiments to test how you might adapt,
you'll be ready when it matters most. So your task for this stage is to take
a look at the business model you've mapped so far and reflect on the forces
that could impact it. What changes in technology, regulation,
customer behavior, or society might disrupt it? Which of those feel like background noise,
and which could be trend setting shift? And what small experiments could you
run now to test your ability to adapt? Write your reflections
in the Project and Resources tab. Now, they don't have to be perfect. The goal here is to simply build the habit
of noticing signals and preparing for disruptions before it's too late. So with adaptability in place,
you now have the full set of lenses: desirability, feasibility,
fiability, and adaptability. All these together,
they give you the tools not only to design a great business model, but to keep
it strong and relevant over time.
12. Assessing and Challenging Your Business Model: So far, you've worked through all
of the nine building blocks of the business model canvas. Now you have a complete business model. But here's the catch. Just because you complete the canvas
doesn't mean you've created innovation. It is the starting point,
but not the finish line. And really, this is what separates
a beginner in business model design with that of a true master. You see, innovation comes When you take
a step back and challenge your business model. Ask yourself if this is just business as
usual, or am I stretching into new ways of creating, delivering, and capturing value? Ikea reimagined furniture retail. Instead of selling fully-built expensive
pieces in showrooms, they ship flat packs, which cut costs and turn
assembly into the customer's job. The breakthrough wasn't
new chairs or tables. It was the system behind
Spotify shifted the music industry from ownership to access. So instead of buying individual albums or
tracks, people now stream unlimited music for a monthly fee. Same product,
just different business model. Airbnb transformed hospitality
by connecting people who had spare rooms with travelers. Now, they didn't invent a new bed or room,
just a business model that redefined how value is exchanged. Now, these innovations didn't happen
because someone completed the canvas. They happened because someone
challenged how each block work. So how do you do the same
with your own business model? Well, a powerful way is to run your canvas
through an assessment checklist, block by block, starting with customer segments. Is there a large customer market
that nobody is serving yet? Could I go after a group
that competitors ignore? For example, Nintendo,
we surprise the gaming industry by focusing not on hardcore gamers,
but on families, casual players, and even grandparents. They unlock a huge new market simply
by redefining who the customer was. Value proposition. Beyond relieving pain and creating gains,
what would make this an awesome experience for customers? Could I design something people
don't just need but love? For example, So think about Apple. Smartphones already existed well before
the iPhone, but Apple focused on creating an experience, design, usability,
and ecosystem that went far beyond functional gains. They didn't just remove pains. They redefine what great felt like. Channels. Are my channels the most effective way
to reach and serve customers, or just the easiest and most familiar? Could I create more convenience
or efficiency by changing them? For example, Netflix shifted the channel
focus from retail video rental shops to an online experience. By moving away from physical stores,
they were able to offer value that simply couldn't exist in retail. Unlimited selection, no late fees,
and the convenience of ordering from home. Customer Relationships. Do I have ways to build loyalty,
trust, or locked in? Or could customers switch to a competitor
tomorrow without noticing the difference. For example, Apple iPod wasn't just
about a thousand songs in your pocket. The real lock-in came
from its convenience. You see, back in the day,
once your entire music library lived inside your iPod, moving those songs back
to CDs or onto another player was a hassle. Apple turned convenience into lock-in. It was simply easier to stay
with the iPod than to leave. Revenue streams. In Am I charging in the same
way everyone else does? Could I rethink how I charge? For example, subscription,
licensing, bundles, or who I charge? For example, customers
versus advertiser versus partners. For example,
Netflix broke from the traditional DVD rental model where you paid per rental
by introducing a subscription that gave unlimited access. It was a simple change in the way
customers paid, but it reshaped the entire industry. Key resources. Am I truly clear on the critical
resources, or am I investing in things that aren't essential? Could I rethink what's necessary? For example, Nintendo Wii challenged
the idea that top-of-the-line hardware was essential for a game console. Instead, they use simpler technology
and achieve great success, proving that sometimes inferior resources
paired with superior business model can still win. Key activities. Am I focused on the activities that really
drive my value proposition, or am I stuck doing busy work
that doesn't move the needle? For example, IKEA saved massively on its
key activities by challenging the norm of fully assembling
furniture before selling it. Instead, they made assembly
the customer's job. Now, today, flat packs and self-assembly
are common across many furniture brands, but when IKEA pioneered it,
it was a radical shift. And this just clearly shows
that innovation doesn't have to come from tech company. It can be as simple as
rethinking who does the work. Key partnerships. Do I have partnerships that give me a real
advantage, lowering costs, reducing risk, or opening new opportunities? Or am I doing too much alone? For example, Airbnb builds its business
model on an unusual partnership, not with hotels or property companies,
but with everyday lay people willing to rent out their spare rooms. Now, at the time,
this seemed risky and unconventional, but it unlocked a supply of accommodations
the company could never have created on its own. That unusual partnership became
the foundation of their success. Cost structure. Am my biggest cost aligned with the value
I deliver, or am I carrying unnecessary costs that don't actually
improve the customer experience? For example, Nintendo,
we reduce costs by not investing in expensive high-end graphics hardware
because that wasn't what their new customer segment cared about. Ikea cut costs by making customers
part of the assembly process. Both moves by these companies reshape
their cost structures, not just as cost-cutting exercises, but as
integral parts of their business models. I want to point out one thing. There's a big difference between
innovating costs and recklessly cutting them. Strip costs in the wrong place and you
risk destroying the very value customers come for. The real The question is, which costs
matter to them and which don't? Well, hopefully from this discussion,
you begin to notice how each block can be challenged. This is the step that separates innovating
your business from simply describing your business model. The business model canvas is just
there to facilitate the process. Real innovation comes from you. Now, keep one thing in mind that these
questions, the question I suggested here, are just a few of the ones we commonly
use to challenge business model. In practice, there are dozens more ways
to stress test, pressure, and rethink a model. And the deeper you go, the more
detailed and complex it can become. Come, but that's not our focus here. The goal of this course is to get you
started, to give you the tools, the mindset, and the confidence
to begin innovating your business model. We're not diving into every little detail
because that can get overwhelming fast. So your task for this part is to go back
to the business model canvas you've completed and run it through
this checklist block by block. For each building block, ask
the challenging question we just covered. Push yourself. What if you flipped it, twisted, or even
borrowed an idea from another industry? Capture at least three insights across
your canvas, small or big, and post your reflections
in the Project and resources tab. Now, not expected to solve
everything right now. The purpose of this task is to help you
see your model with your fresh eyes. And that's where real innovation begins.
13. Project Recap: Bringing It All Together: Back in segment 2, the project set up,
I asked you to start thinking about your project, building a business model
from scratch, either for your own business or one of the suggested options
in the project and resources tab. Now that you've gone through the course,
it's time to bring it all together. And this is the most important part
of your learning journey, which is submitting your business model. Your priority here is simple. Complete your business model canvas
and upload it into the project and resources tab. Now, it doesn't matter whether you're
using the downloadable PDF I've provided or a digital template on Miro,
Mural, or Canva. What matters is that you capture your
business model in a clear, structured way and share it. You don't have to make it perfect. Innovation is about progress, not polish. Even a rough canvas will help you make
a sense of your ideas and open doors for improvement. Think of it as version one
of your business model. And here's something we often do
with clients that may help you. We distinguish between the as
is and the to be business model. The as is business model is how
your business operates today. It's a snapshot of reality, customers,
resources, revenue, cost, exactly as they are. The to be business model is
your vision of the future. It's how you want your business to look
after you've innovated, shifted, or scaled. Now, you can choose to submit
either one of these projects. Now, if you already run a business,
it may help to map your as is model first, then sketch out your to be version
as your innovation exercise. Or if you're working with a fresh idea,
just focus on the to be. Now, if you'd like to go a step further,
you can also reflect on the questions we covered in segment 12, assessing
and challenging your business model. Now, these are optional but they'll
push your thinking further. So just to recap, your task is, first,
complete your business model canvas, either your as is, your to be, or both,
if you want to have an extra challenge. Secondly, upload your project
into the project and resources tab, either as a screenshot, PDF,
or link to your whiteboard if it's public. Or thirdly, which is optional,
take a few minutes to reflect on the assessment question from segment 12
and jot down any insights alongside your canvas. By submitting your canvas,
you'll not only finish this course with something tangible,
but also have a framework you can keep evolving, from today's
reality to tomorrow's vision.
14. Where to from Here: First of all, congratulations. You've made it all the
way through this course. Well done. Now,
if you're feeling enlightened and energized with new ideas, that's fantastic. Give yourself a pat on the back. If instead you're feeling a
little loss or overwhelmed, well, don't worry.
You're not alone. You see, innovation is a
process, not an event. And for many businesses, building and refining
a business model takes months and sometimes even years. The purpose of this course was to lay the groundwork
to give you the tools and mindset to start your journey into business
model innovation. Now, if you'd like
to dig deeper, you can always book a one on one coaching session with me right here
through Skillshare. It's a great way to
apply these ideas directly to your business and
get more tailored guidance. And before you go, here are three simple ways
you can make my day. First, leave a review of this
course here on Skillshare. It'll help me improve and it also helps other students
discover the course. Secondly, leave me a
recommendation on LinkedIn, and you can find a link on my Skillshare teacher profile or simply Google Emmanuel Accolade Coaching,
LinkedIn profile. It gets you to me everywhere. And lastly, share
a testimonial on Accolade Coaching website at testimonial dot
Accolade coaching.com. Now, if you can only do one of the above,
that's perfectly fine. If you do two,
that's even better. But if you can do all three, I will love you
with all my heart, except that I'm already married. Finally, if you
enjoy this class, make sure you hit
the follow button on my Skillshare profile. That way, you'll be
the first to know whenever I release new
classes or updates. Well, thank you again for
spending your time with me. I can't wait to see
the business models you've created and
more importantly, the innovations
you'll bring to L.
Emmanuel Setyawan, Innovation Coach
