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)
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.