L. SETYOBUDI

2014

BUSINESS CONCEPT

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CONTENTS1. Business Idea2. Business Concept3. Attribute Map4. Guideline to Develop a Business Concept5. Case: Medical Automation Technology6. Business Model

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Positioning of Business Concept in Business Development Stage

Dream Idea

BusinessIdea

BusinessConcept

BusinessModel

Business Plan

Search for Dev. Theme

Initial Dev. Development Product Development

Production

Strategy

3

Operation

Checking Business Concept

Checking Business Model

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From “Dream Ideas” to Business Concept

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Business Ideas

Business Concepts

“Dream” ideas

Business Model

問題・ニーズ

問題の解決策

悩んでいる顧客セグメント

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“Dream” Idea

Business Idea

Business Concept

1. BUSINESS IDEAOctober 24,2014 Ms. Junko Ishiguro Oasis Consulting K.K.

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顧客セグメント

Working women in their twentiesI want to be beautiful!

Want to be healed! I want a boyfriend!

Want to have a good career!

Someone who enjoys jogging

I want to run faster! I want to run a long distance!

I want to take soon tired! I want to run fun! I want to know…..

the level of their own!

Summarizes the customers likely to have thoughts similar to "I want to ●●"

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There are an infinite number of segments

• Age, gender • Residence (Tokyo Osaka, Japan ⇔ ⇔

America ...) • Religion (Buddhists, Christians, Muslims ...) • Food (Grilled beef, noodles ...) • Sports (tennis, climbing, jogging ...) • Music (J-POP, K-POP, rock, classical ...) • You are in trouble (want to lose weight,

dietary restrictions do not want to ...)11/23/2014 LSB EEFK 7

Alex Osborn’s checklist 1. Put to other uses? As it is?… If modified?..

2. Adapt? Is there anything else like this? What does this tell you? Is the past comparable?

3. Modify? Give it a new angle? Alter the color, sound, odor, meaning, motion, and shape?

4. Magnify? Can anything be added, time, frequency, height, length, strength? Can it be duplicated, multiplied or exaggerated?

5. Minify? Can anything be taken away? Made smaller? Lowered? Shortened? Lightened? Omitted? Broken up?

6. Substitute? Different ingredients used? Other material? Other processes? Other place? Other approach? Other tone of voice? Someone else?

7. Rearrange? Swap components? Alter the pattern, sequence or layout? Change the pace or schedule? Transpose cause and effect?

8. Reverse? Opposites? Backwards? Reverse roles? Change shoes? Turn tables? Turn other cheek? Transpose ‘+/-‘?

9. Combine? Combine units, purposes, appeals or ideas? A blend, alloy, or an ensemble?11/23/2014 LSB EEFK 8

New business is born with overturned the common sense

Bar Kids not allowed

Kids are welcome

Wash hair Just cut hairBarbershop

FrenchRestaurant

Eat slowly Eat fast

Park For kids Parents also enjoy

アイデア発想

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High School

Go to school

Only avatar　goes to school

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１． Common practice

Wash away the cut hair

２． Reverse of common practice

Not wash away the cut hair

３． Problem The guests go home while the cut hair

４． Key word How to deal with the hair that was cut

５． Hint Floor cleaning by vacuum cleaner at barbershop

６． New Idea Rather than wash away the hair, and suck up with a vacuum cleaner

アイデア発想

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１． Common practice

Eat slowly

２． Reverse of common practice

Eat fast

３． Problem It is not allowed to pressure customers to finish quickly

４． Key word Finish quickly and leave their own wish

５． Hint Buckwheat stand

６． New Idea No chair

アイデア発想

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Avatar School

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アイデア発想

１． Common practice

Go to school every day

２． Reverse of common practice

Go to school only four days per year

３． Problem It is difficult to communicate with other students

４． Key word Communication using your avatar

５． Hint Nintendo 3DS

６． New Idea Your avatar goes to school every day, and communicate with other avatars

http://digital.asahi.com/articles/ASGB63VM9GB6UTIL02S.html?iref=comkiji_txt_end_s_kjid_ASGB63VM9GB6UTIL02S

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2. BUSINESS CONCEPT

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出所： Business Model Generation, Osterwalder, A. & Pigneur, Y. (2010)

1.Customer Segments

4. Customer Relationships

3. Channels

2.Value Propositions

7. Key Activities

6. Key Resources

8. Key Partnerships

5.Revenue Streams9.Cost Structure

Positioning of Business Concept in Business Model Canvas

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Three Elements Business Concept

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Business Concept

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Value Proposition

Key Resources(Solution to

the problems)

Customer Segment

with problems and needs

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Find solutions to problems and needs of customer segment and develop a business

concept

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Problems and needs （ customer segments ） without solution

No time for cleaning home

Clean home during absence

Add cleaning capability to

robot

Develop and try various solutions

Establish the Value

Proposition

Business Concept

Find problems and needs which can be solved by key resources, and develop a business concept

We have technology but we do not know

what kind of problems it can solve

Establish value

propositions

Can we find problems in home using

our robot technology

Clean home during

absence

Two income households have no time

to clean homes

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Try to find problems which can be solved

by our technology

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Business Concept

Two incomes households

No time for cleaning Cleaning Robots

Customer segment with

problemsProblems Solutions× ×

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Three Components of Business Concept

Cleaning Robot

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Who is in trouble in anything? (Overt, potentially)

How to respond to the problems which customers are facing?

What does make customers happy? (Specifically)

Customer Segments（ Problems faced by customers ）

Provide Goods and services

Value Proposition× ＝

Business Concept

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I'm in trouble is said to brag bitches that plane ride of scheduled flights, 1% of rich people

SNS 1 Million dollar to join

It is easier to talk since people in this expensive SNS since they

are all same living standard.

Customer Segments（ Problems ）

Provide Product/service

Value Proposition× ＝

Business Concept

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Customer Segments（ Problems faced by

customers ）

Provide Goods and services

Value Proposition× ＝

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3. ATTRIBUTE MAPTO CLARIFY THE RELATIONSHIPS BETWEEN MARKET SEGMENT AND VALUE PROPOSITION

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An attribute map describes your offering in terms of what it does to please, or displease, key customer segments.

Based on 　 “ The Entrepreneurial Mindset” By Rita McGrath and Ian MacMillanHarvard University Press, 2000

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Transform What You Sell in a Meaningful Way

• Premise: Every offering you sell has some things customers like, some things they don’t and some things they simply don’t care about– The strategy: change your products and

services to create meaningful differentiation from a customers’ point of view

– Capitalize on the fact that different segments will make different tradeoffs

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Attribute Map to Assess Customer Attitudes

• A simple mapping process gives you a start on capturing how well your product or service is appealing to customer's needs at the moment.

• Prepare one analysis per segment per product.• The first column of the attribute map lists the three

basic attitudes that customers may hold about a feature of any product or service: negative, positive or neutral.

• Along the top of the figure, we indicate the level of energy generated by the customer’s reaction to the feature, compared with competitors’ offerings.

Attribute Map

• Attribute map simplifies the complexity of your proposition to your customers and your position with respect to competitors.

• Attribute map describes your offering in terms of what it does to please, or displease, key customer segments. Along the rows are the reactions of a target customer segment to the features in your product or service.

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Positive, Negative, Neutral Rows

• The top row shows those features and attributes that customers regard positively; these attributes might prompt them to purchase and stay loyal to your products and services.

• The feature in the second row are the negative, these are things that customers dislike and would prefer to do without.

• In the third wo are attributes about which customers are neutral. They don’t care or don’s know, about these features.

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Basic, Discriminating, Energizing Columns• The labels of the columns try to capture how your offering

stacks up relative to other ways customers might meet their needs.

• If customers judge that a feature is basic, it means that they take it for granted that all compositing products have that feature.

• The middle column lists discriminating features- those attributes that cause customers to judge one offering to be superiors or inferior to another.

• The third column shows energizing features. These are attributes that, as far as customers are concerned, dominate the decision to buy and use the product or to contract for the service. They typically evoke a powerful emotional response that can overwhelm everything else you do.

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Value PropositionsValue

PropositionsComments

1．

Newness Some value propositions satisfy an entirely new set of needs that customers previously did not perceive because there was no similar offering

2．

Performance Improving product or service performance has traditionally been a common way to create value.

3．

Customization Tailoring products and services to the specific needs of individual customers or customer segments creates value in recent years, the concepts of mass customization and customer co-creation have gained importance.

4．

Design Design is an important but difficult element to measure.

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Value Propositions

Value Propositions Comments5 Brand/status Customers may find value in the simple act of using and

displaying a specific brand. Wearing a Rolex or Channel signifies wealth.

6 Price Offering similar value at a lower price is a common way to satisfy the needs of price-sensitive customer segments.

7 Accessibility Making products and services available to customers who previously lacked access to them is another way to create value.

8 Convenience/use-ability

Making things more convenient or easier to use can create substantial value.

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Value PropositionsValue Propositions Comments

9 Getting the job done

Value can be created simply by helping a customer get certain jobs done.

10 Cost reduction Helping customers reduce costs is an important way to create value.

11 Risk reduction Customers value reducing the risks they incur when purchasing products or services. For a used car buyer a one-year service guarantee reduces the risk of post purchasing breakdowns and repairs.

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Principles for Redesigning Your Offering

Source: MacMillan & McGrath, 'Discover Your Products' Hidden Potential' HBR, 1997

　 Basic Discriminator Energizers

Positive Perform at competitive par, watch costs

Pick a few attributes customers will notice and care about to focus on

Execute with vigor and prepare for competitive reaction

Negative Perform no worse than competition

Perform a little better than competitors

Eliminate yours, capitalize on your competitors’

Neutral Only keep if cheap, or needed for other segments

Add features that would make the offering complete

No such beast

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Re-segmenting by Innovating the Attribute Map

1. Dramatically Improve Positive Features2. Eliminate Tolerable or Emerging Dissatisfier3. Infuse the Offering with Empathy4. Add a Compelling Parallel Offering5. Eliminate Complexity6. Capture the Full Value You Deliver

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Guidelines for Attribute Map InnovationIdentify your current major market segments.

What are the three to four key links in the Consumption Chain for each segment?

Do a high-level attribute map for key links each major segment– Are there any definable segments that are poorly served? Why?

What attributes would they value?– Are there any current tolerable that we can reduce or remove?– Can you see a way to get some customers to make different tradeoffs

to spark re-segmenting (High vs. low volume, time vs. cost, etc.)– Is ‘radical surgery’ a possibility – cutting out things that are neutral to

boost positives or reduce price?– Can you infuse the offering with empathy?– Can you add a compelling parallel offering?– Are there ways to eliminate complexity?– Are you capturing the full value of what you deliver?

What would the attribute map for a proposed new segment look like?

Application of Attribute Map• Design new product and service

– Analyze customer needs and develop features which will satisfy customer needs.

• Develop competitive strategy– Do attribute map of competitor's products and

services, and find weak part of the competitor’s products.

• Development Business Concept– Find the exciting value proposition for a particular

customer segment.

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4 ． GUIDELINE TO DEVELOP A BUSINESS CONCEPT

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Ａ

Ｂ

Ｃ

①Customer

Segmentation

②Customer

Needs

Needs

Ａ　Ｂ　Ｃ

③Selection of

Target Segments

④Attribute Map

④－１Current Offering

④　 -　２Competitor’s

Product

Five Steps to Business Concept

④－３New Offering

Ａ

Ｂ

Ｃ

Market Size

Selection of Target Customer Segments

Business Concept

(Customer segment,

Value Proposition)

⑤　 Business Concept and Strategy Development

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To clarify the Business Concept• Do not sit in front of your PC for a long time,

but go out and meet people who can help you:– Anyone who may purchase your products,

• Try to meet at least five potential customers to check your attribute map 1

• Try to find someone who purchased or used your competitors products or services to check the competitor’s attribute map 2

– Anyone who could help your technical problems, – Anyone who can help you financially

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Tips to Develop Attribute Map

• Find the most decisive attribute of your offering. – Develop basic characteristics and differentiator

attributes of the positive position. – Develop attributes of negative stance – Develop attributes of neutral stance

• Draw attribute maps for several customer segments. – It is important to realize that an attribute map itself

is a list of assumptions, and it should be checked.

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①　 Customer Segments (Attribute Map Sheet )

1. List up potential customer segments (at least three segments) for your offering.

2. Five major segmentation strategies are – behavior segmentation, – benefit segmentation, – demographic segmentation, – geographic segmentation, and – psychographic segmentation.

3. You may start from demographic segmentation (gender, age, size, etc.) , and move to behavior or benefit segmentations.

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②　 Need Analysis (Attribute Map Sheet )

1. List up customers’ needs as many as possible (at least 26 needs)

2. Rate the importance of customers’ needs for each customer segments

3. Observe need patterns of customers’ segments

4. If there are several customer segments that share many needs, it is worth to create a new customer segment.

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③　Major Customer Segment (Attribute Map Sheet )

1. List up several customer segments2. For each customer segment,

– Very likely price for your offering– Market size (Number and amount)– Growth trend– List up main competitors

3. Select one customer segment as the major segment

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④ Attribute Map (Attribute Map Sheet )

• Draw attribute map for competitor’s products first for the selected major customer segment

• Draw attribute map for your old or existing products for the selected major customer segment

• Develop attribute map for your new offering for the major customers.

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⑤‐1　 Development of Business Concept

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Customer Segmentation

Value Propositions

( Exciter)

Problems and/or needs

Solutions

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⑤‐2Strategy to Develop Attractive Offerings

Source: MacMillan & McGrath, 'Discover Your Products' Hidden Potential' HBR, 1997

　 Basic Discriminator Energizers

Positive Perform at competitive par, watch costs

Pick a few attributes customers will notice and care about to focus on

Execute with vigor and prepare for competitive reaction

Negative Perform no worse than competition

Perform a little better than competitors

Eliminate yours, capitalize on your competitors’

Neutral Only keep if cheap, or needed for other segments

Add features that would make the offering complete

No such beast

Validation of Attribute Map

• Attribute Map is a list of assumptions.• It is important to "validate" these assumptions

to make a realistic Attribute Map. • "Validation" is done through:

– Meeting potential customers – Meeting users of competitors’ products– Meeting users of current products

• Without sales you do not have any profits nor any business.

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Entrepreneur’s Perspective

• Sales perspective focuses "selling now”. • Marketing perspective focuses " continuation

and selling in the future”. • Brand perspective focuses “growth and survival

of the company".• Perspective of entrepreneurs focus first

"whether potential customers do listen my story" and "whether they understand my story”.

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5. Case: Medical Automation Technology

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Medical automation market expected to grow to $23.2B by 2014

Medical automation technologies are defined as technologies for the electromechanical control or operation of diagnostic or therapeutic processes or systems or training of healthcare professionals, which result in a reduced need for human intervention or no such need at all. Examples of such technologies include health monitoring kiosks, automated X-rays and surgical robots.11/23/2014

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Beberapa Contoh Teknologi• Automated health assessment and monitoring

technologies;• Automated medical imaging and image analysis;• Automated prescription fulfillment devices;• Automated therapeutic (non-surgical) devices;• Robotic and computer-assisted surgical equipment;• Automated laboratory testing and analysis;• Automated healthcare logistics, resource and patient

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MEDICAL AUTOMATION MARKET BY TYPE

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6. HOW TO DEVELOP A BUSINESS MODEL

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Resource: Business Model Generation, Osterwalder, A. & Pigneur, Y. (2010)

Business Model and Nine Components

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4.Customer Relationship

3.Channel

2.Value Proposition

7. Main Activities

6. Resources(Intellectual property, Assets)

8.Partner

5.Revenue

9.Cost structure

1.Customer Segment

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1. Customer SegmentI. What relationship that the target

customer expects you to establish?II. How can you integrate that into

your business in terms of cost and format?

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2. Value Proposition

• What core value do you deliver to the customer?

• Which customer needs are you satisfying?

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• What value do we deliver to the customer?

• Which one of out customer’s are we helping to solve?

• What bundles of products and services are we offering to each customer segments?

• Which customer we are satisfying?

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Characteristic:

NewnessPerformanceCustomization*Getting the job

done*DesignBrand/statusPrice

Cost ReductionRisk ReductionAccessibilityConvinience/Use-

ability

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3. Distribution Channels

• Through which channels that your customers want to be reached?

• Which channels work best? How much do they cost? How can they be integrated into your and your customers’ routines?

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4. Customer Relationship• What relationship that the target

customer expects you to establish?• How can you integrate that into your

business in terms of cost and format?

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5. Revenue Stream

• For what value are your customers willing to pay?

• Wht and how do they recently pay? How would they prefer to pay?

• How much does every revenue stream contribute to the overall revenues?

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6. Key Resources• What key resources does your value

proposition require?• What resources are important the

most in distribution channels, customer relationships, revenue stream…?

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7. Key Activities• What key activities does your value

proposition require?• What activities are important the

most in distribution channels, customer relationships, revenue stream…?

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8. Key Partners• Who are your key

partners/suppliers?• What are the motivations for the

partnerships?

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9. Cost Structure• What are the most cost in your

business?• Which key resources/ activities

are most expensive?

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BMC

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Business Model Canvas

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Key Partners Key ActivitiesValue

PropositionsCustomer

RelationshipsCustomer Segments

The network of suppliers and partners that make the

business model work

The most important activities a company must do to make its business

model workThe value proposition is the reason why customers turn to company over another. It solves a customer problem

or satisfies a customer need.

A company should clarify the type of relationship it wants to establish with

each customer segment.In order to better satisfy

customers, a company may group them into distinct segments with common

needs, common behaviors, or other attributes

Key Resources Channels

The most important assets required to make a

business model work.

Communication, distribution and sales channels comprise a

company's interface with customers.

Cost Structure Revenue Streams

The most important costs incurred while operating under a particular business model. Creating and delivering value, maintain customer

relationships, and generating revenue all incur costs.The cash a company generates from each customer segment

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