Strategyzer Webinar: Introduction To Strategyzer Tools

The broadcast is now starting. All attendees are in listen only mode. Hey everybody. Welcome to another Strat Chat webinar session. The broadcast will be starting in a couple of minutes. Until then, while everybody's trickling into the room, I just wanted to pose a question to all of you and you can submit your answer in the GoToWebinar questions box. But what do you hope to learn from today's session? You can also at any time throughout this broadcast, send your comments and thoughts to us on Twitter raategizer and just use the hashtag stratchat when submitting your tweet. We'll get things running in about two minutes. Sa. All right, let's get started. Hello everybody. Welcome again to another Strat Chat webinar session. Today's topic is is a bit of a long time coming. We're going to be talking about an introduction to the Strategizer family of tools. Now things are a little different with this broadcast. Of course. As always, I'm your moderator Kavi Gupta and I manage content and community at Strategizer. But our host is co founder of Strategizer, Alan Smith. You can find him on Twitter as Inksmith and he's going to be running us through the program today. At any point throughout the webinar. If you want to get in touch with us, share your comments or or thoughts, feel free to tweet us at Strategizer and just use the hashtag Stratchat. You can also check out blog.stragizer.com for tons of extra articles and resources about much on what Alan will be talking about today. I'm just going to quickly go over two of our major courses that we have online at strategizer.com Alan will touch more on this throughout the presentation, but there is a Master's bundle that we offer that includes both the Mastering Business Models course, an online course that will teach you how to map, design, assess and test business models, as well as the new Mastering Value Propositions course, an online course that will teach you how to better understand customers and create value propositions that sell. Now here's what you get. It's going to be the proven methodology that we've introduced in not only our global best selling book Business Model Generation, but also the book that we also have called Value Proposition Design. You're going to get over 70 bite sized learning pieces across 13 lessons on six crucial topics and and you get unlimited access to 50 videos and over eight hours of learning content that doesn't expire. What's most important to many of the users who do our course is that certificate of completion because we know that it differentiates yourself and allows you to stand out as a top performer. So there is going to be an exclusive offer for attendees on the webinar today if you purchase the Master's Bundle, which is both the Mastering Business Models and Mastering Value Proposition Design courses together will give you 15% off in the next 48 hours if you use the code NOVEMBERWEBINAR2017. Now I will pass the link throughout the session within the GoToWebinar chat box. So don't worry, you won't miss it. You'll also get it in a follow up email after the session. If you're not satisfied with the course, we'll give you your money back with a 60 day money back guarantee. That's it. No questions asked. And lastly, if you're an enterprise team and you're looking for solutions to help your global companies upskill, validate new ideas, expand existing business lines, or launch new growth engines, you can visit strategizer.com enterprise to see more of our enterprise offering or get in touch with sales strategizer.com and someone from our team will jump right on a board. So Alan, I'm going to hand the reins over to you and let you get started with the presentation.

All right, thanks Gabby. Nice to have everyone here. See if we can get my screen going. I'm just getting over a cold, so if you get sick, we checked with the guys at gotowebinar. They said it's a very low chance that you're gonna end up getting sick from this webinar. But you know, my voice might sound a little bit funny if you hear me cough. That's why it's cold and flu season. So let's see. Can you guys see my screen now? Kavi, does that look good?

Yep, everything's good.

Okay, so like Kavi said, we've never really done. A lot of people have maybe heard of the business model canvas, heard of the value proposition canvas, are interested in the product, are thinking like, okay, how should I get involved with this whole thing? What can Strategizer really do for me? This is what this webinar is sort of aimed at you guys who are just new to Strategizer and are trying to figure out what value there is for you. So let's start with a couple of challenges that are facing companies right now. First, 17 out of 10 of all new product innovations flop. So whether you're in a small company launching a new product, you know, startup with a new product or service idea, you're in a big company launching a new product or service idea. That value proposition is likely not going to resonate with customers. Statistically, that's pretty scary when we think about the amount of time and money we spend on these things. The second 74% of CEOs are afraid of new entrants disrupting their business model. This means that if you're in an established company, let's say over 20, $50 million, and on up to multibillion dollar companies, business models expire like yogurt in the fridge and somebody's going to come in with something better and expire your business model. CEOs are afraid of this happening right now. And in regards to either one of those very few executives, only 6% feel that their company is doing a decent job on innovation performance. So as far as. It's kind of a gloomy picture, isn't it? I'm curious. You know, we're going to try out this polling thing in Gotowebinar and I'm curious, what are you hoping Strategizer can help you with and cavi if you can launch the poll.

Cool. It's launched.

We've got a few options here, so it's not completely free form. Tell us which one you're hoping Strategizer will be able to help you with. Kevi, let me know when enough results came in. You're ready to close it. Cool.

Let's just give it another 10 seconds.

Okay, well, maybe we can share the results. Let's see if it comes back with the results. This is our first time trying the polling feature in our webinar, so let's see if it works. Did it come back?

Polls closed. I'm going to share the results. Let's see how this goes. There we go.

Cool. So unfortunately, I can't see it.

Okay, so the answers are quite interesting. As far as launching a new product or service. 31% grow or rejuvenate a new business unit. 16% expand my team skill set 22% repeatable scalable process for innovation 31%.

Excellent. Okay, so excuse me, there's that cost. My goal is by the end of the day or by the end of the day. By the end of the hour, you're going to know how you can get the benefit you're looking for from these tools and from this company, from our different services and offerings, or if what you're looking for is actually lies outside of what we offer. You need to look elsewhere. So a couple things about Strategizer very quickly, you know, we help teams make better decisions. Lots of people have read our book. Lots of people subscribe to our blog. Lots of people use our software and take our courses and come to our workshops. Our methodology has been recognized by the Thinkers50, twice our core thought leaders. Alex and Eve are In the top 10 of all management thinkers. As of a couple weeks ago, they were given the award. Congratulations to them. We're super excited about it. And there's been global adoption of these tools. And I don't share this to brag. I share this because you're going to be investing your time in learning this stuff. And when you learn a methodology or you take on a tools, tool set or a method, you don't want to waste time on something that's not proven. And I share this to show you that this is well proven. It works in a lot of companies. A lot of people love it. We work really hard to make it simple and that's why it's had the adoption and success that it's had so far. So this is really to just give you a little bit of peace of mind that as you go deeper into this, it's time well invested. Maybe you know one of these books, Business Model Generation or Value Proposition Design? We worked on the first one, Alex, Eve and myself. I was the designer on the book. After working on that one, we realized there was a big component missing which was around the Value Proposition Design. And we worked on that one. Co author on that book with Alex and Nev. Lots of big companies use this stuff, lots of small companies use this stuff. But you wouldn't recognize their logo. So I'm not going to share them with you. So let's get into the tools. Let me show you what our core tool set is and give you a sense of what is the core of the methodology. So the first component, or maybe the widest sweeping component is the business Model Environment map. And that helps you understand where do you compete in the market? What are the consumer forces pushing on your business model? What are the economic forces pushing on your business model? What are the competitive and industry forces pushing on your business model? Are there technical trends, you know, pushing on it? This is the environment in which you live. This is the jungle which you cannot control and you just need to map to help understand where you compete in the market. Our most famous tool and most popular is the Business Model Canvas, which helps you understand how you create value for your business. It's a Map of nine building blocks that can make up any business model. Then we created the Value Proposition Canvas, which zooms into two of those building blocks, actually the ones with the sticky notes on them, the value proposition and the customer segment, to help you better understand how you create value for your customer. If you don't understand your customer and you don't, you can't have a really clear value proposition or a value proposition that's relevant to them. So we built this tool to help zoom into that because we noticed that people were trying to accomplish this task on the Business Model campus. And it's not for that. That's about how you create value for your business. So these tools do very separate things. Okay. Then lastly, this stuff doesn't stay the same. You could create your very first idea. Does the first idea ever end up being the last idea? Not at all. We have a series of tools to help you de risk new ideas and grow the business. And this is really in line with Lean Startup methodology pioneered by Steve Blank and Eric Ries and helps you move from Business Model Canvas to Business Model Canvas. These aren't one time things. These are constantly evolving. The faster you learn, the faster you can evolve. The faster you can evolve, the faster you can grow. And of course avoid the risk of shrinking, which is, you know, very scary. Lastly, there's a lot of different tools. I won't go back. There's a lot of different supporting tools, checklists, different little best practice guidelines booklets, all kinds of stuff that we've made that supports and helps you get better outcomes and achieve specific tasks using each one of the tools. There's different things you can use the different tools for and those help you with it. So let's launch the second poll. Cabbie. I'm just curious, which tools are you guys actually familiar with? And it should be a multiple choice question. So let's launch that.

Cool. Poll's up.

My guess is most people are going to be familiar with the Business Model Canvas. Second, the Value Proposition Canvas. Very few familiar with the testing tools and maybe some with the environment map. That's my guess. Do you want to take a bet, Cabby? That's a no. He's not going to bet me.

All right, we're going to close the poll.

Okay.

Here are the results. 16% for business model environment, 86% for business model canvas. You're right there, Alan. 66% for value proposition canvas, 8% for test card and testing suite, and 8% for all are new to me.

Okay, so very few people know nothing about this stuff. That's good to know. So for the purpose of this webinar, we're not going to really look at the business model environment or any of the supporting tools. We're going to look at how these three tools link together to help you design and map a business model, either new or existing, and then figure out how to evolve it and move it forward and in the most effective risk free way. So let's say you got this idea and whether it's a change to an existing business model or a new product completely from scratch, is it a big change or a small change? Is it worth $10 million for your business? Is it worth a billion dollars for your business? It doesn't matter. Generally, the way people used to approach this stuff was you create a business plan and that'll take us from point A to point B. What we've learned is that, you know, it's not really a straight line between point A and point B. Especially near the beginning. Things are very chaotic. You're moving all over the place, you're going in different directions, and there's a lot of exploration before you sort of narrow down and get to that execution point. A business plan doesn't work for that. The lines in there between the numbers are pretty linear. Oh, we're going to make this much this month and this much the next month, et cetera, et cetera. Doesn't work. So what do we do if we're not going to be able to use a business plan? Well, it helps to break it up into phases a little bit. The first phase is really the search phase of really looking for the right idea or validating a particular idea, searching to see if it's worth deeply executing on. And the search phase has two phases of its own. One is the design phase, and the second is the testing phase. Design happens in the building, testing happens out of the building. Okay, so let's say we sat down and we made a really awesome business model canvas based on our idea. And we made a really awesome value proposition canvas based on our idea. We just designed a business model. We just designed a value proposition.

Great.

Then we would get out of the building and test it. We would realize, well, actually we did something wrong. Let's change the business model. Okay, we'll make a new one. Let's change the value proposition canvas. Okay, we'll make a new one or we'll adjust a few things. And you go through this cycle many times at the beginning and make big changes. And then as time goes on, you make smaller changes as you're narrowing in on something very successful until you've got a very successful business model and a very successful value proposition that you're executing and scaling as a company. So let's zoom in on the design process first. What does that look like and the language by which we design? So I'm going to give you guys a very quick example of a business model canvas. We're going to look at Google, okay? So if we ask ourselves, what's Google's business model? Right. You hear that question all the time, hey, what's the business model?

Right.

How do they create and capture value? So we're all users of Google, right? Users globally, and we use Google to help us find stuff. Google will help us find anything. Their value proposition is we'll help you find it on the Internet. And you go to google.com if you want to do that. Okay, cool. That's the channel. The customer relationship is a very automated relationship. They do lots of data mining and they look at us and our search habits and all that kind of stuff. But I've never talked to anybody at Google. It's not like a private bank where somebody knows my name and shakes hands and all that kind of stuff. It's a very automated relationship. To be able to provide this value proposition, they have to have these fancy patented algorithms, incredible IT infrastructure, and they need to spend a lot of time engineering that network and engineering the software. It costs a lot to do all this IT both to support the existing resources and activities. And one of their partners is the telcos or the pipes in which they transport this massive amounts of data. And they have to pay a lot of money for all that. Yet somehow they make no money from us consuming this value proposition. You don't have to pay for every search you do, do you? It's free. So what's the business model?

Right.

Usually when people say, what's the business model? They're often talking about, well, actually, what's the revenue stream? But for our purposes, we're talking about the whole mechanism by which a company creates value. So advertisers, Advertisers are interested in reaching an audience and selling. And the value proposition of Google is very interesting because you're reaching an audience and selling to them. And it's very targeted because you know what you're looking for. If I'm looking for Toronto Raptors, you know, fitted baseball cap, somebody who's advertising that is going to be able to find me. And that's a pretty powerful thing. They work through the AdWords platform and again, it's an automated relationship, so it can scale very well. You get an account rep if you spend over a certain amount. But this is a simplified version and one of the resources that these advertisers are interested in is actually all this traffic, right? So that's a resource that Google has everyone visiting their site every day. They can basically sell that. If that disappeared tomorrow and they were building their traffic from scratch, you know, they would have a very different business. Where they make all the money is not by selling specific, you know, inventory at a specific price, like a magazine ad for, you know, $30,000 per page. It's very, very, very intelligent way of selling this stuff, which is if somebody's bidding on that keyword, Toronto Raptors, you know, fitted baseball cap and somebody else.

Is.

Bidding on it, well, who wants to pay more? We'll show the ad to whoever's willing to pay the most. That is what earned them tons of money. After that, you know, they went a little bit further. We're not going to go into details with this, but you know, they started adding the Android os. Developing that mobile OS cost them a lot of money. Took a lot of their resources to develop an entire os. As you can imagine, they've got these device manufacturers as a key partner because they wanted to help people find things more on mobile and deliver more mobile services. You get it through the phone this time, not through google.com the same value proposition applies to advertisers. I can reach a mobile audience now and sell to them in a different way. I know more information about them because they're mobile and the same thing, keyword auctions for this specific market. Device manufacturers are kind of a customer segment as well. They don't pay anything to use the os. The Google Play Store is one way in which users interact through this whole system. And then app developers are sort of the icing on the cake here because, sorry, they're one of the main ingredients of the cake. It doesn't work if you don't have apps. Right? So they're excited about this access to a billion Android users and every time they sell an app, Google has 30%. So now they've created another revenue stream. Right. So that was a really, really quick walkthrough of an example because we're doing a high level overview here today. And if you want to know more about the business model canvas, 86% of you are familiar with it. If you want to go deeper, you can go to strategizer.com and create an account. It's up in the top right corner, just hit sign up. And on the left hand side here you can see in our training section there's a free course called Business Model Basics. And, and it's got a bunch of videos in there. Some of them are pretty long, like 22 minutes, 15 minutes, 4 minutes, 2 minutes. There's a lot of content in there. That's a completely free course. You can just sign up and take that course if you like. If you don't want to create an account and you just want to go watch some videos, we have this stuff in a much less structured way on our YouTube account and have lots of different examples. You can see there's Amazon Web Services business model, Lego business model, Disney's business model. We share a lot of these different examples to just help you get a sense of the language and see where different things go on different building blocks. Because people really love examples. It's an easy way to learn. Right. Okay, let's move on to the value proposition canvas. Less of you guys are familiar with this, but still high familiarity. Let's look at the value proposition of Tesla. So what's Tesla's customer profile? Let's map out their customer profile first. Before we talk about their value proposition, let's talk about their customer. So their customer is the sort of middle to upper class or upper income men generally. That's the potential Tesla buyer that they identified early on. So let's just pretend we're back in the days and they only had the Model S. We're not going to talk about all their very much more robust product portfolio that they have today. Let's just assume that they're just making the Model S and this person's interested in the Model S. So what are their jobs to be done As a customer of this car? You need to commute to work. Maybe you want to convey an image of success. Cars can be a big status symbol for a lot of people. This customer specifically. And once in a while, you might want to drive and travel long distance. Okay, Related to those jobs. So if I'm commuting to work, if I want to commute to work, if I want to convey an image of success and I want to occasionally travel long distance, what might I be afraid of? You know, what problems might I have, what risks might there be, what obstacles or frustrations might I have in relation to these jobs and in relation specifically to the electric car segment? So we saw a Tesla a minute ago and that looked pretty cool. But this is what electric cars look like previously. So you Know when it's a Tesla customer was hearing, oh, electric car. This was what was in people's minds. It was kind of like a smartphone.

Before.

The iPhone came out. It was a very different looking thing came to your mind before it was this little sheet of glass. So when you're looking at that car and you have this picture in your mind, you're like, oh, man, I'm really worried about a fear of dead battery. I hear electric car. I'm worried that the battery is going to die. I'm worried it's going to take a really long time to recharge and I'm worried I'm going to have to charge it all the time. That's very concerning also, maybe it looks geeky, maybe it's way too small. And on the flip side, what am I really looking for is what does success look like? What are the desired outcomes or benefits? These are the customer gains. Hey, if this car could drive really fast, that would be great if it was always up to date with the latest features. Because every car has an infotainment system and all kinds of technology in it. Now I want that technology to be up to date, not out of date a year later. And if it had long range, like over 300 kilometers, wow, I could totally travel that long distance that I'm hoping for. Right. If it looks good, it has high safety ratings, even better. So this value proposition is not going to connect to that customer. That's just not going to do it. So let's look at how Tesla designed a different kind of car with this customer in mind. High performance, luxury electrical car, not economy. It was a luxury electrical car and one important component of that is the 60 to 85 kilowatt hour battery. So let's look at how does that base package of a sort of basic product. You know, I'm told this doesn't do anything for a customer on its own until we sort of make that explicit. So, you know, this high battery capacity means that I don't have to worry about the fear of a dead battery. This free charging app, Supercharger stations, they offered that for the first year, the first two generations of Teslas and high speed charging was something they're working on as well. These features or these pain relievers specifically connect to customer pains that they're really concerned about. So the features need to be able to provide those pain relievers which connect to the customer pains which are related back to the job. So if I need to travel long distance, trip, and I'm afraid of fear of a Dead battery. The fact that I get these superstitions along the way and there's huge capacity, that's great. So for game creators, wow, it's fast. There's other components of the car that we could break down as far as the products and services there. The torque converter is incredible. There's all kinds of things in the drivetrain that allow it to achieve that performance. But the gain creator is, hey, we have top performance, which connects to the customer gain they were looking for, which was performance like a sports car. That long range, the upgrade via remote access. There's a whole set of specific features and components of the product or service, like the over the air automatic upgrades. That's a very specific feature that they needed to develop to be able to provide that game creator and, and create the gain actually for customers and sort of fit that gain. And in the end they end up with fit, right? That's the important thing. This customer fits with this value proposition. This is called product market fit, a lot of it, or it's called that way in other places, but we just call it fit between the value proposition and the customer segment. So there's lots and lots of resources available on strategizer.com, i'll show you where those are in a minute to help you do a better job on this stuff. One of the examples is seven questions to assess your business model design. There's a couple of different sheets that help design better. Value propositions, different best practices lists. It's all. So we covered how to design or at least map a business model or value proposition, right? So if I just gave you a business model canvas right now or a value proposition canvas right now, and you had one of the guides to help give you trip your question so you didn't get stuck, you'd actually be able to make a business model and a value proposition. It wouldn't be the best one you've ever made, but it'll be the first one you've ever made. If you've never made one before and you'd get it on paper and then you'd probably say, okay, well now what? Right, well now what is you need to get out of the building and test it. Especially if you're making a change or you know, deciding to make a change if one of those. So if we look back at this guy here, oops, I have to skip through this. Sorry guys. On the next slide, a lot of the different resources that we have are designed to help you make changes to your business model. So for example, the seven questions to assess your business model design is there to help you figure out, okay, well, how might we improve switching costs? Right. How might we improve recurring revenues? When you ask yourself those questions, you're going to make changes to an existing business model or to your idea, and those changes might be risky. So let's admit to that into the testing suite. So any business model or value proposition might look great on paper, but at the end of the day, it's really just to set a hypothesis. So what does that mean? What we need to do is we need to pull out the hypothesis. What unproved assumptions are present in our ideas? Any new idea, there's going to be some sort of assumption that is based on. We want to pull those out, extract them from the business model canvas and value proposition canvas, then figure out, okay, well, how are we going to produce some evidence to de risk those hypothesis and those assumptions? If we have evidence that tells us that this is true or not true, we can either proceed safely or say, oh, actually bad idea. Let's not actually invest in that and build that out. That evidence, what you actually observe in your tests, evidence is okay on its own, but it always needs to be interpreted and you need to learn something from it. So what is the insight behind some evidence and what will you do based on it? This is the most important part. Before returning to the design phase, what do you think are you, you're actually going to do about it? So what this tends to look like is you end up with a big pile of hypothesis and there's so many. But what you really need to do is prioritize them and say, okay, well, let's pull out the most important one. Let's rank them top to bottom. Let's prioritize the most critical business hypothesis. If this is not true, all the other ones at the bottom of the list don't matter because we really need to validate this one first. This will kill the whole idea. This is the biggest assumption that this is based on. We want to take that hypothesis and turn it into some sort of evidence that we can take an action on. How do we do that? Well, like we said, testing happens outside of the building. You need to talk to people, look at people, understand how they're thinking about a problem. It always ends up outside of the building. So we've got this little diagram. The scientists reviewing people in the test tube, shoving them in there and getting some sort of data, generally reducing the risk over time. So what will happen with that hypothesis? Either you'll validate it, it'll be inconclusive, your evidence, or you'll realize that it was invalid at a high level. Those are the things that are going to happen at the end of an experiment. That's what your evidence will do. So the question then becomes, well, how do we design a good experiment to actually get that evidence right? So first you need a hypothesis to test, and we talked about that already, of how we create one of those. And the second is we need to design an experiment. There's lots of different types of experiments that you can design. But apart from the experiment design, whether it's like, oh, okay, we'll run a set of customer interviews, we'll do a landing page test, we'll launch an mvp, we'll build a prototype, we'll set up a call center, whatever it happens to be. There's lots of different experiment types, wizard of Oz, all these different types of experiments. There's some experiment that you're going to run. And very importantly, that experiment needs metrics. What will you measure? And the third component that it must have within the experiment is the threshold. How will you know if you were right or wrong, valid or invalid? So saying up front, if 50% of people say yes or no, then we were right or wrong. So a quick example would be, you know, customer segment X frequently struggles with problem Y. Okay, that's the hypothesis. And our experiment is going to be a very simple, you know, customer interview. We're going to talk to 50 customers and ask them why they struggle with why. And then, you know, based on the number of customers who experienced the struggle at least four times in the last 30 days, that's what we're looking for. That's our key metric in this experiment, and we're going to validate it. If 25 or more customers struggled with that in the last struggle with y at least four times in the last 30 days, great. But maybe this isn't such a great experiment design because what people say isn't always what people do. So how could we change this? Well, rather than saying, okay, well, customer segment X frequently struggles. This is an okay experiment design. You get lots of value from this. You can get even more by just making these small tweaks to it. So rather than asking the hypothesis, let's change the hypothesis a little bit. Customer segment X cares about struggle, cares about this struggle with problem Y, that this is actually a real struggle for them, not just something they struggle with. And rather than just Talking to those 50 customers and asking them about their struggle with why, why don't we talk to 50 customers and give those who struggle a trackable URL with pointing to the solution. If there's a real problem for you, check out this URL. It's got a great solution. Then our metric will be the number of customers who we gave the link to, how many actually clicked on the URL, so our conversion rate. Lastly, we can pick any number we want here, but it's validated if 25 or more customers clicked on the URL to get a solution. So what's really important, sort of last point I'll make here is, you know, we want to have. We've seen that squiggle right between the search and the execution. Over time, the risk comes down. And over time, you know, you don't want to bet a lot when the risk is high. So you bet a little. You do a customer interview series is short, it's cheap. It's is a very cheap way of getting some information. And then maybe you want to build more of a prototype or spend a little bit more as time goes on. Right? Test the most critical assumptions first because they're the highest risk. Use cheap and quick experiments first and test the less critical assumptions later. Spend a little bit more time and money later on when the risk is lower. So let's actually go through a really quick example, outlet baby care. So I'm just going to build up this business model and value proposition for you really quickly and show you an example of a test that they did and how that ended up pivoting. So if you start Strategizer, you can get a free trial of the app. You could be doing this on paper as well, but I'm going to do it here in the app just because it's the easiest way to share with you guys. So let's say I'm Owlet and I'm creating my first business model and I'm gonna say Owlet for nurses, because they had this idea for this little, this little smart baby sock, wireless pulse oximetry. So one of them used to be a nurse and they felt that this was a big problem. They're tripping all over the cords and stuff all the time. So they came up with this idea of pulse oximetry monitor. I always spell oximetry wrong. And they're gonna reach the nurses through the hospitals. And they realized that there was another segment here too. Like the hospital itself is sort of a segment, sort of hospital admin. Let's go with that. Then. That doesn't really tell us very much about the value proposition. Right? This is pretty clear. Oh, so let's not map out the whole business model but let's say there's also a salesforce and let's just do some color coding here and make the salesforce like this. And hospital admins are the ones who would probably be getting sold to, you know, by the salesforce. No, the nurses aren't selling. But let's look at the value proposition now. So we looked at the business model, very rough. It's a quick idea at this point in time. And let's look at the value proposition to the nurse. But first, understanding the customers, the customer's problems. Let's just pick one job which is they need to monitor patients.

Patients.

As they do their rounds. And the faster they can do this, the better. The shortest round time is the best round time. Something that's been bothering them is this cord between the device and monitor display. Okay, cool. So how is Alec going to help out with this? Let's look at the pulse oximeter monitor. So they're going to make it a wireless pulse oximetry monitor. Okay, cool. That wireless, no tangles. And you can see how that they need to monitor patients, the cord is a pain for them and then that results in this pain reliever. Wireless, no tangle, pulse oximetry monitor.

Cool.

Then going up here we've got the ankle worn tracking. It's way easier to slap on than the previous finger one which didn't work, which leads to a shorter time there as well. Great. So wait a minute, based on this though, there's a bit of a guess which is that this wireless component is going to be interesting to people. So let's make a hypothesis. So the hypothesis would be this wireless pulse oximetry is more convenient. We create that hypothesis. Okay, cool. We don't need to go into details about this right now. We don't know if it's valid or not. This is still unknown. So how are we going to test this? Right, let's move on to our test. Okay, well let's add a new test and our new test will be interview 50 nurses. Okay. Go to the hospital, interview nurses. Pretty basic test description. What are we going to measure? Well, let's measure percentage of positive feedback to wireless pulse oximeter concept. Okay, cool. And then what's success? Let's say, let's say if 75% of nurses respond positively, we were right. Okay, cool. We got it. So let's say that we went out into the field and we did this, we came back and now we need to track our evidence in the system. So we say nurse interview series results. And let's say, okay, well, we might want to paste a link. So like a link to the Google Doc or something with a ton of results or a photo or something like that of all the different actual interview transcripts that we did. But let's say that, you know, of the 58 nurses we interviewed, 93% prefer wireless monitoring. Wow. Okay, great. So let's add a highlight. 93% positive response. Awesome. Okay, so we're doing pretty well here. Is there an insight? Not really. But if we go back to the hypothesis for a minute and we think, okay, well, wait a minute, it's more convenient, but is anyone going to pay for it? So let's also talk to the hospital admins. So we'll do an interview series on hospital admins, create the test and say, you know, talk to hospital admins. Same thing. Percentage, positive feedback and the success criteria. Same thing. Let's say 75%. Love it. And let's track the evidence. Let's say we went out, we talked to them. Okay.

Okay.

So hospital admin results, interview test results, create the evidence and, you know, let's just jump straight to the highlight, which was. So maybe let's say, okay, zero percent, we're ready to pay more. Oh, man, they won't pay more for wireless. Wireless is going to be more expensive, of course. So the highlight is 0% will pay. Oh, man, Bummer. So going back, you know, this is sort of an insight we didn't really expect. We were hoping to talk to them about convenience, but they weren't willing to pay. So that leads to an insight which is that ease of use is not a pain if not cost effective. Great. And what are we going to do about that? So now we know that we can't sell this to these guys and we can't make it cheaper. So what do we do? Well, we're going to have to change customer segment. So at this point in time, you know, you go back to the canvas. And so now we're looping back around to the design phase. We've been out of the building, we sort of come back into the building and let's just duplicate the canvas and say outlet for, okay, maybe not nurses, but let's go parents. There we go. And in here, you know, hospitals, that's not gonna work. Let's kill it. Hospital admins are not interested. Let's kill it. Hospitals aren't interested. Kill it. And the salesforce, you know, we're not going to need them anymore. And so without going into detail. Now I'm left, you know, if I'm out, I'm left with the same place and say, okay, well, now what do I do with this wireless pulse exchanger? Remoter. Maybe parents, maybe baby stores. I sell it direct and maybe, you know, I sell it for $200 purchase of the technology. Okay, so now I've got a new set of hypothesis, right. And I can jump in and describe. Okay, well, for parents. Yeah. How does this. What, you know, what's their job? Taking care of babies, Maybe they want peace of mind would be great. And so with convenience, maybe SIDS is something they're very concerned about, something they're really scared about. So it's a big be great. And we'd look at, okay, well, you know, maybe add a baby alarm and we put it in, you know, we make a mobile app and we make it wireless, you know, and okay, cool, so same thing. And now I would have a new hypothesis, right. I'd have to go in and test that in a different way so you could get a sense of how these cycles work and how we go from a very basic idea, sketching it out very quickly, coming up with the hypothesis, going out and testing those hypothesis, bringing back the results and making a change based on those results. This is obviously a very extreme change to completely change customer segments, but it does give you a good example of what we're talking about here. So let me jump back to Alec for a minute so you can watch a video online of Alit actually presenting, you know, the work that they did using the business model canvas to validate their idea. This is a true story. They did really well. They're growing really quickly and are selling tons of these little baby socks. It's a real thing. It's awesome. There's a couple more iterations to the story as well that we don't really have time for. So bringing this home, we've sort of just got two things left. One is, who's this for? And, you know, what do we really offer? We find that big companies think that, hey, this is like a startup thing, and startups think, hey, that's a big company thing. Consultants are like, yeah, this is for me, for sure. And SMEs, you know, sometimes land somewhere in the middle and academics just pick it up as well. So we have a lot of different people who, who are interested in Strategizor and end up using this stuff. Kevi, let's do a poll and see what best describes the people on the call here today.

Sounds Good. I'm going to launch the poll now. I'll give it another 10 seconds. All right, I'm going to close the poll. Here we go. I'm going to share the results. All right, Alan, So we've got 20% who identify as being a pre revenue startup or growing startup, 10% who identify as being an SME, 43% who identify as being consultants, 8% identify as academic, and 19% identify as being of the enterprise. Awesome.

Okay, so now I can share with you guys, you know, how you can start building out your canvases and use these tools to help advance your business. I'll sort of give you three paths that you can take as far as next steps go. So the first is, you know, just try it. You know, jump into Strategizer. Try mapping your business model. Assess your business model using some of the assessment worksheets and checklists and best practices resources available. Try extracting your hypothesis. Try running an experiment and evolve your idea. You could get all the free resources, most of which I didn't show. But you know, the business model canvas, value proposition canvas for sure. And the test card you can get@stragizer.com resources and if that doesn't work, just go to strategizer.com and click the login. Create free account. You can create a free account. You'll never have to pay for anything on it. You'll just get access to those resources. Once you create a free account, you can start a 38 day free trial of the app that I just showed you. If you like to manage your business model, try it out. What we hear a lot is that people are afraid to get started because they want to learn a little bit more and that's okay. So there's three ways to read up. You can go to blog.strag.com, cavi runs and maintains the blog. He does a great job. We have amazing content on there. It's all based on direct feedback and customer problems that we're hearing. We write about those and so it's very tailored to the problems that we hear from our customers. We're writing a lot of enterprise content now, especially so the enterprise people on the call. That might be a nice place for you to start. You go to strategizer.com books to look for value proposition designer business model generation. Those are really valuable for having around an office or sharing with someone who you want to get involved in ideas. For some reason, if you give someone a book, it feels good rather than if you give someone A link. It feels like work sometimes. So 30 bucks and you can really push an idea down someone's throat. If you want@YouTube.com strategizer you can watch a bunch of videos on there for free. You can take a course. And so we have these two great courses, Mastering Business Models, Mastering Value Propositions, which go much deeper and are much more practical and structured than the books, only because they're less about getting the idea across and more about actually helping you do the work. They actually cover both in just as much detail. So strategizer.com training courses and you can learn more about those. Cabby mentioned them at the top of the webinar. And then lastly, you can attend a workshop in person. So if you're the kind of person who really likes to get out of the office of the building and spend a couple days in person learning about this kind of stuff, we do six to eight workshops a year. We do Boston if you're in the States, Toronto if you're here in Canada or on the east coast, you can travel up here if you're in Europe. Berlin and London are two main destinations and we tend to do a few Asian destinations each year as well. So then the last one is our enterprise services. So if you're of the 19% who are enterprise, you know, we have three services tailored specifically to you guys. You know, the first one is in house workshops so you can hire a trainer to come help you learn the methodology and actually apply it a bit over the course of a day or two days. Pretty typical sort of training thing, training method that you might be used to as far as hiring someone to come teach it to you. A little bit more interesting and we found more effective, especially for any larger size group, would be the Cloud Academy, which is a really great way to help your teams master business models, master value propositions and upskill a large group of people in this methodology in a very short period of time in a more cost effective way than actually sending out a bunch of trainers to a bunch of different locations. And then lastly, if you really want some help applying this to an existing product line or business unit or series of business units or teams, we have this innovation Sprint, which blends learning and execution together in a sort of 10 week program specifically designed to get really, really tangible results at the end of it. And if you email salesratechizer.com, they're going to give you a bunch more content about how any one of these things work and how much they cost and all that kind of Good stuff. So there's only five minutes left. @ the end of the webinar, Kavi said we might not. We won't do audience questions. If we have five minutes, do you think we could take one or two, Kavi?

Sure, I think.

Oh, sorry. Let's pull them first and ask, based on what you've seen here today, what action are you going to take? Are you going to. And Kevi, launch the poll? There's a few options in there.

Poll is launched. Give it another 10 seconds. Alright. Closing the poll. 29% say that they're going to map their business model and value proposition. 13% say they'll assess the business model and value proposition. 20%. This is interesting. Want to extract hypotheses and design tests. 35% want to learn more, try the course. And of course, 2% want to get an enterprise consultation.

Okay, great. So from that, it's really cool to hear that you guys are getting interested in the testing component. This is the thing that most people forget getting into that. That's really cool to hear that you guys are sort of getting that saw the value presented in it so far. With that, I want to say thanks, Kavi. If there's time for now, there's only five minutes left. If there's time for one question or not, you decide you're the webinar boss.

Let's take one. I think one of the things that the audience has been asking quite frequently today and tonight where I am is are the tools used differently in a B2C or B2B setting? I know we've had some experience with that with a number of companies. What's your kind of take on that?

Yeah, absolutely. And they're used differently in every type of company as well, right? Or every size of company. So what I can tell you some quick sort of tips on B2C versus B2B setting. In the B2B setting, there's generally more than one customer. So you need a value proposition for each one of the customers. You know, maybe there's a decision maker, the economic buyer, the recommender and the end user itself. You need to understand, you know, how your value proposition solves specific pains and gains for each one of them. So by mapping each one of those customer segments, you can get a really incredible sense of where the blind spots were and where you realize, well, wait a minute, we're actually not doing anything to make this easier for the economic buyer. Or wait a minute, our value proposition kind of sucks for the person who's going to end up consuming it as the end user at the end of the day. So by mapping that and having a discussion around those explicitly, you can get a completely different feel there. Sometimes there's another is an intermediary sense where if you're selling, let's say you sell through to retail and then retail sells through to your customer. You are maybe B2C but you have this B2B retail, they're also your customer. If you sell sell books, you know, maybe you sell to Amazon, but you also sell books to the person who reads books, right? So how do you convince Amazon this is a good book for them to promote and put online, have a good value proposition to them, and to have a good value proposition to the people who end up buying the book in the long run. So understanding what the different customers are, that's the most common and sort of quickest way to get more value out of the tools in a B2C B2B setting. Specifically testing is even more important in B2B and oftentimes you can get much deeper relationships with B2B and be able to have longer interviews, better understand customer problems than in a B2C setting where the transaction value is much lower and there's maybe less interest or less commitment from the customer to spend so much time learning from you. The customer interviews and testing is actually sometimes even easier in a B2B setting as you've got people who are really dedicated to solving a problem and are about to spend a lot of money and are willing to spend a lot of time with you to get that solved. So yeah, I hope that answers that question and gives you one sense of how that is. Cathy, do we have any specific blog posts on this topic?

In general, we do have the in depth Q and A that we did with WL and Gore where they actually addressed the, you know, challenges of what they had first heard about using the tools in a B2C or a startup concept context and then applied it to their own very kind of technical and difficult B2B context. And it's a great Q and A. I'll probably add it to the email that goes out to attendees so they can kind of take a look at it. There's some great nuggets of advice on what a very, very staunch B2B company was able to do with tools that like you said, a lot of people say, oh, this is just for startup people or this is just for consultants. They really were able to use it for their own customer discovery process in a very productive and effective way. That is all the time we have left for this session. Alan, thank you for jumping in. I know this is a bit different than what we've usually done. And to all the attendees, thank you for participating in the polls. That was a lot of fun and something new for us, too. You will get a recording of this session within the next 24 hours, along with a reminder for your offer, the live Attendee Offer Bundle. We thank you all for joining. Whether it's your morning or afternoon or evening or late night, we hope you'll join for another Strat chat session. Thanks a lot, Alan. Thanks a lot, everybody. We're going to sign off now.

Bye, guys. Thanks a lot.