Walkthrough of the business model canvas - Part 2

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From the course by University of Maryland, College Park

Innovation for Entrepreneurs: From Idea to Marketplace

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University of Maryland, College Park

Innovation for Entrepreneurs: From Idea to Marketplace

232 ratings

Course 2 of 4 in the Specialization Entrepreneurship: Launching an Innovative Business

Develop insights on navigating the innovation process from idea generation to commercialization. Build knowledge on how to create strategies to bring innovations to market. Develop an innovation portfolio and business model canvas for your venture. We establish a framework for examining the innovation process, and quickly transition into exploring how to successfully bring innovations to market. Key questions answered within the course include: * What are the key indicators of innovation opportunities? * What steps are critical for entrepreneurs to bring innovations to the marketplace? * What innovation strategies are valuable for new ventures to establish and maintain a competitive advantage? With this course, students experience a sampling of the ideas and techniques explored in the University of Maryland's master's degree in technology entrepreneurship, an innovative, 100% online program. Learn more at http://mte.umd.edu/landing.

From the lesson

Introduction

This module includes a welcome to the course, an orientation to our teaching approach and faculty, and an introduction to the fundamentals of innovation and commercialization.

What are entrepreneurial opportunities?11:42

What factors influence the feasibility of an innovation?15:22

Which innovation strategy: technology-push or market-pull?8:01

Product-market fit8:00

How do you develop a business model6:42

Walkthrough of the business model canvas - Part 15:53

Walkthrough of the business model canvas - Part 24:50

Meet the Instructors

Dr. Thomas J. Mierzwa
Lecturer of Technology Entrepreneurship
Maryland Technology Enterprise Institute (Mtech)

Okay, we've, we've talked through the right hand side of the business model,

canvas, the customer facing side.

It's time to talk about the other side of the business model canvas a little bit,

just as in production before we get started.

We're going to pay much less attention to this side of the business model canvas in

this course.

In 12 weeks it's logical to think that maybe we

could find a value proposition for a customer segment,

maybe we'll find product market fit, it's not logical to think that we're going to

get the whole business model nailed down in, in 12 weeks.

It, it may happen, but it's, it's, it's not likely and, you don't want to

lose focus, you want to pay attention to the customer facing side first.

But on the other side of the business model canvas in the sectors that

are numbered seven, six, seven, eight, and

nine here, are, are the internal sides of the business.

These have to work right for

the business to work, but they're not as important to nail down right away.

Except if their their conscious.

You have to sort of nail down the main things first.

Key partners is a question of what are you going to do yourself and

what are you going to have other people do for you?

I'm sure you've heard the term core competencies about a business.

This are the things that you really do well,

that you are doing that are unique that no one else is doing.

The other stuff, why not have someone else do it if you can't?

That's where partners come in.

So, the question here on the business model canvas is

who are these key partners?

Who are your key suppliers?

because they are very important kind of partner.

Particularly if you are in the business of making physical goods.

And what are you getting form it?

And of course you don't get without giving,

so when you get from them what are you giving back to them?

What is your relationship like with those partners?

That's the key partners part of the business model.

Key activities are the core competencies,

those are the things you're going to do yourself.

What are you going to do?

and, and, and what can you do well?

Do you need to do manufacturing?

Is manufacturing something you're going to outsource, or

is it something you're going to do yourself?

Are you good at it?

Are you great at it?

Maybe that's something, maybe that's a key activity for you.

What about software development?

Do you have to do that?

What about securing intellectual property?

Do you have to do that?

Key activities are things that you must do in order for

your business to be a success.

Resources are what you need to get your partnerships done and

what you need to get your activities done.

What do you need in the way of money?

What do you need in the way of physical space?

What do you need in the way of manufacturing space, office space?

What geographies do you have to operate in?

What do you need in terms of intellectual property?

What patents do you need?

What copyrights do you need?

What trade sequence do you need to protect?

What do you need in the way of human resources?

How are you going to find the talent that you need?

What are the talent groups that you need and how are you going to locate them?

That's, that's the sort of question of Key Resources.

Resources, activities and partners are sort of a balancing act.

They, they all go together.

You might need a key resource, but not need or, or want to supply it yourself.

In which case, you have to find a partner who will supply it for you.

So you pin down the resources.

They tell you what you need.

You say which of the things are going to be your core competencies?

Those are your key activities.

And you find stable partners to whom you can offer value to do the rest of

the thing.

And then finally, last but not least, is the cost structure.

What are the costs of your business?

This is last in the business model canvas enumeration that we're doing today,

but getting a rough bead on this may be first, because if you don't get,

if you can't produce the thing profitably, you don't have a business at all.

If it turns out that people are only going to pay ten for

something, and it takes 20 to make it, you don't have a business.

So you have to get, nail that down in some very broad terms.

Before you get very far with the business model canvas.

It's a little bit akin to what happens with electricians on the worksite.

They're the very first people to supply, to do work on the worksite,

because everyone else needs electricity.

But then they come back and finish up later.

So you get a rough idea of your cost to begin with, and then you come back and

you finish it up later.

The main points,

the left-hand side of the business model has to do with how you do it.

It's your internal processes, it's what you need to get the job done.

What do you do yourself, what do you have others do, what does it all cost.

Once again let me remind you that the business model canvas is

a living document.

You're going to be putting down your assumptions.

You're going to be correcting them as you go along.

And then at the inflection points, you're going to have something that you can

show to others and say, this is how my business works.

Thank you.

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