Business Model Canvas ?

 

I have been working on my clothing brand for the past four years and for me desigining and producing my vision to actual garments brings me great amount of joy. I used to think that I have been running my firm smoothly and I understand the nuances of the business.

At Kingston, my professor Janja Song mentioned the word “UNLEARN“. This word has forced me to introspect and made me re-evaluate how much I know. I want to Unlearn and Relearn from start.

Before going to the class I prepared myself by reading a few chapters from “The Lean Start Up” by Eric Ries. I also watched “The Founder”, which was highly recommended by the faculty. In my class I could relate to Ray’s thought process from the movie. I realised why Ray wanted to give franchises to couples looking to earn money who would put their heart and soul in the store instead of the rich who just saw it as an additional source of income. Movie also made me realise how everything needs to have a value proposition and should be something that people are willing to try.

What is a business model ? 

A business model describes the rationale of how an organisation creates, delivers and captures value. ( pg14. Business model generation by A. Osterwalder and Y. Pigneur )

How do we understand the business model ?

According to A. Osterwald, there are 9 building blocks of the business model, which should be interconnected somehow to get the desired results. Business model is basically a tool, through which one can understand the different sections and the connections between them. Below is the picture showing the 9 different sections in a business model. (pg18 business model generation by A.Osterwald and Y.Pigneur)

business model.png

We discussed NETFLIX business model in the class, and it was interesting to note that how Netflix used to pay distributors for the rights to showcase there content on their platform initially. Whereas now, they have launched NETFLIX ORIGINALS making them content creators as well. They had been profiling and analysing data through over time. Below is the video from Strategyser which explains the business model canvas.

Strategyzer Published on Sep 1, 2011

After our class, we were assigned to choose a traditional business and discuss what would need to change to innovate ?

I chose to design a business model of a bookstore in the my hometown Chandigarh (India). It’s the book store where all syllabus related books for students from different schools are available. In this business model  the customer segments include parents, who buy books for their children, which makes the children the end users.  Value proposition in this case is the customer saving time and getting all books related to their children at one store. These books are already stacked according there respective classes, making it a personalised relationship between the store and the customer. With all the remaining information I was to innovate the process.

I had seen that after every academic year parents would line up in front of the shop to get the book, which made me think that there should be an easier way. I came up with the idea of having an application for the store through which parents can order the set of books for their children, which would decrease the hassle for them to wait for long hours and would also help the store to function easily.

While presenting in the class, and discussing with Janja I understood that what I had proposed as an Innovation, in form of an App was only increasing the cost structure for the store and not helping the store increase their revenue. Why should a company introduce an APP which will not help them increase their revenue streams ?  Which got me to thinking about my brand as well .

Have I been taking right decisions till now in the my clothing business ? Have the decisions actually helped me achieve the results or I have incurred cost ? 

I learnt that every decision should be analysed through a proper business model and then put into action, seeing if they produced the desired results.

 

 

 

 

 

Lean start up

IMG_2575Last week we started with our induction week, which was very challenging and overwhelming for me. Just in a span of a few days, I was trying to adjust to a new country and a course which was going to be an amalgamation of my creative side to business. I have been involved in fashion industry and designing from past four years and I figured I needed to learn the business aspects as well.

Here I was, totally out my comfort zone listening and trying to understand terms and definitions which were new to me. But I was in high spirits to learn and take in everything that was coming towards me.

Best part of the week, for me was the last two days where we kind of got to do a crash course in Lean start-up. We were asked to design a product/service for ADIDAS keeping in mind the age group from 17 to 25 years, which would also get a change in the society.  We had to choose the teams we wanted to work in and preferably each member of the team should be from a different country. After forming the team we were supposed to find an issue we wanted to work with. We as a team decided to take on homelessness and wanted to work around it. For the first day, our entire team was super excited and after discussing for few hours we felt that we were a good team and we would figure everything out. Only by the end of the day, we saw that we had actually gone too far and created a very complex situation for ourselves. Before going back home we were not sure about what we were going to do the next day.

So we all were there the next day with newer approaches to our issue and we learnt that we had to go deeper and precise rather than making it complex for ourselves. We created a campaign for Adidas, which would be run in Berlin (Germany) supporting the homeless people in the cold weather. We created the whole campaign based on how customers buying the basic essentials like socks, caps, gloves would also help a homeless person with the exact same thing.

At the end of the day, I learnt so much about  what we were going to do in the entire year which made me excited and motivated. But I also realised that I had been working in my business and would have been taking decisions according to what I felt was right, and now suddenly we had to listen to each member of the team and actually process everything. There were things I learnt about communication, team work, different cultures and how time management is very important.

Janja Song our course director had actually tried to explain us different approaches practically while we were designing the campaign, that actually helped me to understand them better. It was  wonderful learning experience for me and a great way to step out of my comfort zone and challenge myself, which I felt is the real LEARNING .

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