Lessons Learned - Week 2
After having chosen a project and project team members in first week´s class, we started our hands on work on the business idea in the second week of LEP. We filled in a first business model canvas to reflect on central issues concerning the business idea – the value proposition, customer relations, and revenue streams among others. We further developed the canvas after class and spend much time developing a common understanding of our business idea´s value proposition.
As can be seen in the following canvas our main value proposition is to “help people organize administrative documents easily and provide useful add-on features.” What also grasps attention quickly and is essential for out further idea development. We believe in a brad costumer base of all digitally inclined people. Moreover, our services will be free of charge at first while we will monetize our offering when a large customer base has been acquired through add-on-premium features. For more detailed information check out our business model canvas in the following.
While working on the canvas we had further important learnings that we want to share with you:
SPEND A SIGNIFICANT AMOUNT TIME DEVELOPING A COMMON UNDERSTANDING OF THE BUSINESS IDEA!
When first filling in the business model canvas in class, we realized the importance of formulating the business idea jointly to gain a common understanding of the idea as the basis for filling in the canvas. If this is not the case, group members will have different ideas in mind, which consequently leads to different perceptions about revenue streams or customers. The business model canvas becomes flawed.
THINK ABOUT THE VALUE PROPOSITION OF YOUR IDEA THOROUGHLY. THEN FILL IN THE BUSINESS MODEL CANVAS!
When developing the business model canvas the value created must be the starting point. What value does an idea create? What problem does it solve? Only when this question is answered thoroughly the idea gains relevance. Filling in the rest of the canvas becomes easy once the value proposition has been developed.
DO COMPETITOR RESEARCH EARLY IN THE PROJECT!
Early competitor research is essential. Only after we had developed the idea we realized that competitors were offering similar solutions. We had to figure out how to differentiate. However, when competitor research begins early, insights can alter and better the business idea already throughout the development stage.
DO NOT GET LOST IN DISCUSSIONS BUT TEST DIFFERING ASSUMPTIONS AND PERCEPTIONS THROUGH CUSTOMER DEVELOPMENT!
Once the idea was further developed we found out that we had different perceptions about what customers wanted and how much they would be willing to pay. Fierce discussions were the consequence. Eventually we realized that we could not know the answers ourselves. We had to ask potential customers.
All the best! Your fload team!
