Understand: the Customer’s Business Model

A business model is made up of the following elements:

• Customer Segments Served: Who are they creating value for? Who are their most important customers?
• Value Propositions: What value are they delivering to customers? What customer’s problems are they helping to solve? Which customer needs are they satisfying?
• Channels to Market: Through which Channels do their Customer Segments want to be reached? How are they reaching their Customer Segments now?
• Customer Relationships: What relationships do each of the customer segments expect? What ones have been established? How costly are they?
• Revenue Streams: What value are customers willing to pay and what are they currently paying?
• Key Resources: What key resources are required by Value Proposition, Channels, Customer Relationships & Revenue Streams?
• Key Activties: What key activities are required by Value Proposition, Channels, Customer Relationships & Revenue Streams?
• Key Partnerships: Who are their Key Partners & Key Suppliers. Which Key Resources are they acquiring from partners? Which Key Activities do partners perform?
• Cost Structure: What are the most important costs inherent in the business model? Which Key Resources are the most expensive? Which Key Activities are the most expensive

Diagnose: Pain Points

Diagnose where the customers pain points are in their business model:

• Find new customer segments?
• Create new value propositions?
• Reach customers more effectively?
• Increase Revenue Streams?
• Provide new key resources or key resources with better attributes?
• Increase key activities efficiency?
• Replace one of their key partners?
• Reduce cost structure ?

Create: Solution

Create a solution:-

• Define benefits
• Define investment
• Demonstrate capability using references and endorsements
• Communicate in customer’s language showing Return On Investment.

Communicate: Solution

Resolve concerns on solution, risk and price.

Communicate in customer’s language showing Return On Investment.

Deliver: Solution

Deliver the solution.

Use project management tools to manage delivery.

Demonstrate that benefits have been delivered. Ensure customer satisfaction.