Framing ‘Lean Canvas’ for New Product Development
In continuation of my previous article on ‘Business Model Canvas’, it is also essential to understand whether it is enough for new product developments. Probably, sometimes yes and sometimes no. Ideally, every product development starts by thinking of solving a problem; either for internal or external customers.
There are a few minor differences between BMC & LC, although LC has 9 segments as well. But LC is more focused on solving a problem with some specific solutions which is an ideal start for new product development. [LC is invented by Ash Maurya]
The primary differences between BMC & LC are below:-
a. ‘Key Partners’ is replaced with a ‘Problem’ statement.
b. ‘Key Activities’ is replaced with a/few ‘Solution’s.
c. ‘Key Resources’ is replaced with ‘Key Metrics’.
d. ‘Customer Relationships’ is replaced with ‘Unfair Advantage’.
e. ‘Value Propositions’ is replaced with ‘Unique Value Propositions’, a very minor change in the text but very powerful.
I will be explaining only the 5 building blocks which are different from BMC, as the remaining 4 blocks are the same for both BMC & LC.
- Problem:- What is/are the core problems we have identified? Are those really problems for users? Are those problems related to price, time, effort, psychological, physical etc.? In this block, try to identify the min. 1 to max. 3 problems.
- Solution:- What are the key features we are delivering to solve the core problems? In this block, try to identify the min. 1 to max. 3 solutions depending on total problems.
- Key Metrics:- What are the key activities you want to measure? [engagement, repeat, willingness to buy etc.]
- Unique Value Propositions:- Why I am different and worth buying? How the new values will help customers solve current problems?
- Unfair Advantage:- Is it possible to get copied or bought easily by someone? Do we have any special capabilities or advantages which can be leveraged?
LC: Filling Steps & Segments:-
Like BMC, We do have the order to fill all 9 segments of LC as well. The below snapshot (LC Factorization) clearly explains the order to fill the canvas.
In LC, we start with identifying the ‘Problem’ (No.-1) first → then focus on ‘Market Segments’ (No.-2) → identify the ‘Unique Value Propositions’ (No.-3) → find the possible ‘Solutions’ (No.-4) → see if we have any ‘Unfair Advantage’ (No.-5) → find the ‘Revenue Structures’ (No.-6) and ‘Cost Structures’ (No.-7) → identify the ‘Key Metrics’ (No.-8) to measure and at last identify the communication ‘Channels’(No -9).
Example of LC Analysis:-
Here is an example of LC analysis for one of the Indian companies “Dunzo”. I have done the BMC analysis for the same company in my previous article. Using the same company for both BMC & LC will help to differentiate between both the canvas.
A short summary below on ‘Dunzo’ (similar to my previous article).
Product/Platform Short-Background: — Dunzo is an online platform which provides delivery services in most Tier-1 cities in India starting from Fruits-Veggies, groceries, medicines, fish, chicken-mutton, paan-cigarette, pet supplies and many more. Even we can courier any item from one address to another within the same city in 30–90 mins.
Dunzo started as a “tiny beta” in 2015. They ran their first 5,000 tasks completion through Whatsapp to understand customer pain points. They are backed by big investors like Aspada Investments, Blume Ventures, Google, Alteria Capital etc.
To know more about Dunzo, you can refer to the below links:-
Feel free to connect with me on LinkedIn 🙂.
Reference:- Prof. Haragopal Mangipudi (IIM Bangalore).
