I showed you earlier how to go in and edit this business model canvas template.
Now, because of my unfortunate handwriting,
I think we'll have a better time if I show you how to walk through the canvas using this.
But I would generally suggest that you print out
the canvas and kind of sketch on it with paper initially.
Otherwise, you may end up getting too absorbed in
the intricacies of how to put stuff into this and so forth.
So anyway, with that said,
let's take a look here.
Now if you'll remember, this has these different slides that you can
use to call attention to different things and so forth.
But if you want to edit the actual canvas elements here, as it says,
we go to view and we go to master because this is a background slide.
And as you can see here,
we can actually edit these items.
The example I'll go over is United Children's Theater,
the outsourced arts education company that we looked at in the examples.
Now, they have actually a number of different segments that they work with.
So, we'll start with their core users which are children of
there may be various sort of personas but we'll just put
in the segments here and parents.
Maybe we'll leave them in a kind of a paragraph together.
And then teachers, these are people who recommend and kind of work with them,
they work at the public schools.
And administrators, so a
principal or someone who's in charge of an arts program overall at a school.
And then they have donors,
so there are individual donors,
and then there are charitable organizations and
government institutions that maybe support the arts groups.
Okay. And I'll just take those those little lines out.
Okay, now customer relationships are the way that they
interface with these different segments to deliver their value propositions.
Now, the customer relationships are the ways that
United Children's Theater in this case delivers their value propositions.
And they do that a few different ways.
They have personal service where
a teacher can call them up and talk to any number of people.
So, since that's kind of a one to many relationship,
it is not one single person to one singled person,
we'll just call that personal service since they're talking to somebody that
they give a name and they
talk to them in a sort of regular person to person conversation.
And then the student-teacher relationship where the student has a specific teacher.
So, that would be what we'd call direct personal service.
Certain student knows that Mr. or Mrs. Carmichael was their teacher.
And then we talked about how they use
a Facebook group a lot so we would make note of that here.
Online community that's a way that parents get questions answered and so forth.
So, those are the as far as I can tell,
we can always come back to this and change it. That's fine.
That is the customer relationships they have.
And the channels are the means through which they
deliver those relationships to their customer segments.
In this case, they have a few different things.
They have the parents auxiliary,
so this is sort a parents' sort of like a PTA type thing.
They have Facebook, their Facebook group.
And then they have the local schools that's probably the most important channel from
a delivery standpoint where they come in contact with students and future students.
Okay, so now let's go to the revenue stream since
we've kind of covered the customer facing hemisphere of all this.
The way that they make money is I mean they do charge, so they have financial aid.
So, they have tuition as one revenue stream,
they have donations and then they get grants as well which are a little kind of
like donations but of course they have a specific charter and they apply for those.
So, that's our revenue streams.
Now we go to this sort of pivotal item of the value propositions.
What do they do for these people that they care about, these customer segments?
They do a few different things.
So, we'll start with the children and the parents.
So, they deliver quality arts education
and they provide these students a unique peer group.
So, some students may find it most important not so much they're getting
arts education but that they don't relate to the kids that played football or soccer.
They wanted to hang out with another crew and that's maybe what's most important to them.
Affordability is important.
And for the teachers and administrators it's probably that idea of being
able to outsource the arts function is important.
For donors I guess they probably are looking to,
from what we understand, cultivate the arts locally.
So, cultivating the arts locally is what they care about.
And they probably care about enhancing education
for low income students.
All right, so I think those are probably their core value propositions.
On the other slides,
you can sort of draw attention to which
customer segments find which value propositions important.
So, now we get to the delivery half of the proposition.
How do they deliver these value propositions as a company?
So, they have a few key activities that we talked
about that have to do with the arts education itself,
raising money and creating
a repeatable infrastructure for delivering this value proposition.
So, in terms of key activities we might have
things like well they do curriculum development.
They don't build a lot of their own curriculum, they go find it in places.
But that's still an important part of building their infrastructure.
Student developments or figuring out how do we take Timmy or
Tamra from grade one to grade six within arts education,
that's maybe what they would call student development.
That's definitely a key activity,
creating a continuity from year to year for the students so that it's not just
one off things but rather sort of a repeatable arc of arts experiences.
And then, what else? School programming,
so being able to deliver plays and things to the schools since
the schools value that and that's how they get in front of that audience.
Volunteer development because so much of
their time that they use to
deliver the service is rendered by parents and other volunteers.
And donor involvement, so basically selling donors on staying involved with the cause.
And then what are the assets that they have that enable them to do this?
Well, the fact that they have this track record of
doing this for a while is really important.
The facility, the physical building they have let's say is
donated and it's in a central part of town that lots of schools can reach.
They have a lot of repeat donors,
so those donor relationships are really important.
Their curriculum that they have, that's a resource.
And their volunteer base is also,
I would say, a resource, Okay.
So,there we have an idea on resources.
Now, we'll look at these partners.
So, who are the people that help them execute
their key activities that don't actually work for the company?
And we can think of a few of those, probably the parents,
the volunteers, the schools,
donors, city government helps them with donations and space,
content providers give them plays and musicals and so forth.
Now, and their cost structure,
so what are their big cost drivers?
Well, they have teacher salaries,
that's a big one.
They have staff salaries,
so people who help sort of run the business but aren't involved in teaching.
Content licensing of these various plays and so forth.
And production, they've put on these plays.
I mean they have to promote them even though obviously people are acting for free.
So, that's a way to kind of pencil this out.
Now, admittedly, I'm familiar with
this company and this exercise so I went through it pretty fast.
But I really do think that after you practice this a few times,
you'll find that you can do a Q&A and you can sketch this out in
about 20 minutes with a collaborator who knows about the business in question.
And you'll probably find that a really useful way to anchor your,
particularly, your IT projects.
And we'll talk over the course of lessons about
how to bring those key activities forward into
a prototyping process so that you make sure you're driving the things that are really
valuable for the business as you implement
your IT instead of creating stuff that nobody wants.