In last video we introduced the Business Model Canvas as a tool to make sure you're anchored in what's really valuable and important to the company where you're going to do your IT or Enterprise software project. In this video we're going to answer the first of three really critical questions that we need to answer to be thoughtful about what we put in this Business Model Canvas. This is our key tool. This will help us drive to more meaningful, better validated problem scenarios so we don't create Enterprise software that no one wants and no one finds valuable. This question, more than anything else, is really the independent variable and the driver for the contents of the rest of the business model. Here's an example of what this might look like for Home Depot. You can see here different customer segments, so these might be themselves personas or sets of personas about people that shop at Home Depot. And here are some made up by me, and I am not an expert on hardware retail, value propositions that seem like they're important for such an organization. And these arrows that you see here, like the red arrow, the gray arrow. These say that, okay for example, contractors find hypothetically, this value proposition and this value proposition most important. And basically this is what we want to arrive at by the end of the video. So take a minute and think about the customer segments for your business. Are there multiple parts, like for example, eBay has buyers and sellers? Those are at least two segments. What are they, and take a minute and write those down. Here's what those look like for United Children's Theater. So basically you have, children are really the end users but they of course arrange these things and participate in them with the assistance and guidance of their parents. Teachers and administrators at the public schools guide the students to go ahead and enroll in these programs if they're interested. And they manage the logistics, for instance, of a school coming and seeing a play. And then finally is the nonprofit, and they have donors who help support them. Now we look at value proposition. So what are the really, really compelling reasons that a customer buys your product, uses your service, whatever it is. What are they getting out of it that's important to them and uniquely compelling? Take a minute, and think about that for your project. And remember, if you're not sure, the best thing to do here is not to hand a blank Business Model Canvas to your boss or your manager. But I would say in most cases, it's to sketch out a bunch of ideas for them to react to, and make it easy for them to help you edit these things. So even if you're not positive about these, and it's not your job to define this, my advice is take a few minutes, sketch it out. It'll make it quicker for you to get to a nice quick workable answer on these things that will help you proceed with your project. Here's what these look like for United Children's Theater. It gotta be affordable, they're having an outsource arts function is a great thing for this folks. Cultivating the arts locally and improving the quality of education for low-income peoples is something that's important for donors and this is of course, important for the parents, and the children benefit from it as well. And here's what this would like like sketched out on the Business Model Canvas. These arrows just like you saw with the Home Depot example, are linking segments and the value propositions that are particularly compelling to them. We'll show you this in some of the examples, but I recommend actually sitting down with a paper version of this canvas first, sketching these things out. I'm also going to show you a Google doc that you can use if you want to have something that's editable and shareable and presentable. But it's a little more cumbersome to work with and I think you'll find it easiest to sketch this out on a piece of paper, a printed version of the Business Model Canvas, which we've supplied in the lesson materials. So here we've seen how to look at this really key relationship between these two things, and this thing that drives the rest of the business model. In the next two videos, we'll look at the customer journey, and we'll pencil these things out here, and then we'll look at what's strategically important to the business, and we'll do these items here, key activities and key resources.