The second part. We will discuss ideas and problems.

The second part. We will discuss ideas and problems.

2. Ideas and problems. (More on the Business Model)

Think what problem is your startup going to solve and then build a business case around it.

The closer you are to the people you are going to research and who you are going to eventually solve a problem with, the better. The optimal situation is when you are solving your problem because, in this case, you know exactly what to expect from the solution.

And it is easier to discover problems not perceived by you than by others. There are several cases of startups that were born as solutions to their own problems. ContaCal is an example. If you solve a problem of your own, when your product is ready and you are using it, you will clearly understand the interaction flow of your system and know what can be improved.

The only care to take is that you will quickly be an advanced user of your own product and you should not forget that there will always be new users who have never seen your product and will need a very different user experience.

Analysis of demand

In the digital world, new business rules do not stop appearing that must be internalized constantly. There are many tools and methodologies that can give us a sistematic aproch to this ever changing world.

Among the main factors that an organization must take into account to be socially and competitively relevant is to offer a product or service that has a use value for a given market, so that said market is willing to pay an exchange value for this either tangible or intangible.

For this, the relational market approach starts from the identification of needs in a specific market (transcending the Machiavellian vision of the creation of needs), in order to create a value proposition (product / service, price, distribution channels and communications) adapted to these needs.

Countless innovative models appear every day. Completely new industries form while the old ones collapse. Innovators challenge the old guard, who is fervently fighting for and reinventing.

In the early stages of economic development, companies defined themselves as a source because they performed repetitive tasks, measuring results according to production, under strong control schemes, seeking to meet the expectations of owners to earn money.

Today, business management is not so simple, those in charge of carrying it out must take into account many factors, because markets no longer grow according to supply.

The development of organizational processes and the search for new perspectives that guarantee good management (which is based on criteria of quality, efficient, effective and effective productivity, satisfaction, coherence and congruence, and commitment and individual and collective participation) have led to propose management strategies or models that Try to ensure better organizational development.

These postulates allow us to account for the challenges that companies face today to be socially relevant and profitable over time. Management is a primary part of a company because it is responsible for productivity and the economic process. It is the piece of society that is responsible for making business resources more productive.

The impact of digitalization.

The impact of digitalization in the media sector has been especially fast and intense compared to others. The
Digitization has transformed the value chain as a whole, especially as regards the distribution model and,
therefore, to the business model. It is surprising that in the information society are the media, whose subject matter Premium is precisely that, the information, the ones that are suffering the most to find a viable and sustainable business model over time.


For this, organizations trace a strategic direction, which defines the philosophy and organizational strategy, in which the stable entity who is, how it wants to be in the future and through what it will achieve this scenario. However, and as indicated above, planning is dynamic, so organizations must anticipate possible trends and actors that can impact their future, based on the fact that business management must be based on demand. real and adapted to a social context, which makes an organization relevant and viable over time.

Summing up: Problem + Technology = Product Solution


In short, when we put together a problem, which is not always easy to discover, but the closer you are to us, the better, with the technology capable of solving that problem, we have a possible solution that can become a product idea.

Competitiveness Strategy


Competitive strategy is the activity of creating competitive advantage in every business unit where companies compete. The survival of a company is affected by the implementation of decisions and policy strategies. Strategy means that all activities within the company environment include the allocation of all company resources. The basis of organizational competitiveness has shifted from physical and tangible resources to knowledge.

The Competition

The Competition When entering a specific market, it’s vital that you understand who you’ll have to face off against. Check to see how many people are already doing what you want to do, and how successful they are.

Dont Forget the Revenue Streams

Revenue Streams The big idea that made you decide to start a business in the first place, will be your main source of revenue. However, you should also consider what other possibilities there are to add multiple revenue streams.

A tool to facilitate the visualization of the future business.

The digital revolution, the customer era, globalization and the speed of change in all areas of knowledge - education, science, art, technology - are directly affecting the business world.

The science of business administration, which gained strength from the beginning of the twentieth century, has needed to incorporate a series of new concepts to act in the midst of these changes.

The most recent initiative, well received by entrepreneurs, is the synthesis of the company's functions in a single framework, the result of studies and experiments carried out by Alex Osterwalder and Yves Pigneur.

Any business is a system. A system is the combination of several elements, interconnected, in order to constitute a whole organized.

      • A business is understood to be a system because it consists of several parts or functions and needs all of them to be successful.
      • A model is a description of a system. This description can be done linearly, with texts and numbers, for example, or visually, like a drawing, a doll, a graphic.
      • The Business Model in this case, is the possibility to visualize the description of the business, of the parts that compose it, so that the idea about the business is understood by those who read the way the model owner intended.

Using visual aids (like the Whiteboard, self-adhesive stickers and colors) is also a fun way to work collaboratively. It is always good when creating to be able to hear the opinion of possible partners, partners, potential customers, family, friends, in short, whoever is willing to help.

Success in selecting ar business model.

Business models as concepts have been started by new ideas. A good business model is rooted in two fundamental issues of value propositions:

1) who is the customer and what is the value of the customer;
2) what underlies economic logic that explains how we deliver value to customers at the appropriate sacrifice.

According to Peter Drucker's the two fundamental problems imply that business models refer to the logic of how companies in their business can make money through value that can be given to customers and the company's ability to capture, create and deliver values in the process of serving customers.

Before you can start turning your idea into a full-fledged business, there are several questions you need to ask yourself. The answers will give you a better sense of direction and help you determine the right approach

Read more at Gist: How To Choose The Most Profitable Business Model For Your Startup https://getgist.com/how-to-choose-the-most-profitable-business-model-for-your-startup/

So success in selecting one or another business model will depend on the singularities of each startup, its specialization, size, and its value proposition to the client.

A Business Model describes the logic of creating, delivering and capturing value on the part of an organization.”
Alexandre Osterwalder

Before you can start turning your idea into a full-fledged business, there are several questions you need to ask yourself. The answers will give you a better sense of direction and help you determine the right approach:

Visual Thinking


It consists of using drawings to represent ideas or situations.
Quadro uses visual thinking, allowing you to see the model as a drawing and not as a text sheet. When looking at a Chart, you can quickly understand what kind of business it is. Drawing allows us to compare the relationships between the different blocks and find out if it makes sense to do all of these things, if they complete each other. The Business Model described in the Chart gives us much more clarity about whether an idea is viable or not.

Systemic view


It is the possibility of understanding the whole based on an analysis
of the parties and the interaction between them. When looking at the Chart, it is easy to see the whole in the relationship of the parties, that is, to see the whole business by the nine related blocks, through the side of that value with the side of Efficiency and considering the four aspects that any company involves: o that, who, how and how much.

Co-creation


Due to the possibility of being visual and allowing systemic vision, it becomes much simpler for people not directly involved in the business to support, help, collaborate in the construction and analysis of the model. It enables people of different hierarchies, knowledge and experiences to influence and contribute to making the business more innovative.

Simplicity and applicability


The Business Model is one of the most used tools by entrepreneurs and companies, either to start a business or to innovate in already established companies. With less time to create and much more clarity, the Framework gives us the chance to check and correct, focuses on everything that is most important and helps to discover links that we would not have noticed in a long descriptive text.

We will be covering too basic methotologies that have proven to be reliable and easy to implement:

  •  Derivation of Requirements -  Lean Start-ups

    The lean Start-up

    The lean Start-up treats every item of information in the business model as a hypothesis which must be validated by an empirical experiment.

  • Template-Based Approaches - Canvas

Template-Based Approaches

Almost all business model architectures fall into this category. The most widely used template is Osterwalder's "Business Model Canvas" (BMC) (Osterwalder und Pigneur, 2010), shown in Figure 2. This focus firm template consists of nine components. 

For the moment we will introduce you to a tool called Canvas:

Canvas as a business model proposal is an agile and practical methodology for structuring proposals of value. Its scope of application is broad: from large companies to microenterprises and middle enterprises.

This paper, describes the application of the model investigated in six microenterprises belonging to two parish councils in Quito: Tababela and Checa. We worked with a random sample of 479 business clients. The process followed was a characterization of each parish, identification of the microenterprises, a survey was applied to the clients and an interview with the owners of the businesses. With these inputs, a situational
diagnosis was made involving the nine modules of the Canvas business model. These results were taxed to the internal analysis and allowed the preparation of the canvas for each business.

Today, in a market where globalization is a paradigm effect, the Canvas business model has become a star tool in the strategic and business management of a business.

The Canvas model through the use of its canvas can graphically detail from the business idea to the different factors that influence when it is put into action. Through nine modules covering the areas of customers, offer, structure and economic viability, everything necessary to fully identify the structure of a business is included.

Canvas is a model that aims to explain how the different areas of the business are related: considering market segmentation, having the right partners, resources and key activities, in order to know the value proposition offered to customers, capturing more consumers and improving the profitability of the business. And it is conceived as a process that goes from the identification of customer segments to the business cost structure.

Alexander Osterwalder, a Swiss business specialist, clarified the origin and evolution of the business model concept (Osterwalder, Pigneur and Tucci, 2005). The cusp of its contribution reaches it with the creation of the Canvas business model whose purpose can be expressed in the following terms:

Establish a logical relationship between each of the components of the organization and all the factors that influence whether or not it is successful. Through a “graphic” canvas, it is detailed from the business idea, to the different factors that will influence it When launching it, some of them that can serve as examples to structure it effectively are: the relationship of the brand or product with its target market, the income and expenses that influence its operation and the direct or indirect factors that could reduce its functioning.

In conclusion, the Canvas business model applied in the six microenterprises will improve their income, customer service and consolidate them as business initiatives.

It can be determined that currently the Canvas business model is widely used in companies of all types and dimensions. This management tool allows, in an easy way, to interact with all the people who participate in the business model to reach decision-making.

With the diagnosis of the situation of microenterprises and considering the perception of customers, it is evident that the attention in business, for the most part, is very good. However, in most microenterprises there are weaknesses such as insufficient infrastructure, they do not have a business diversification and they do not publish the business offer on the web and social networks.

The application of the Canvas business model allowed to know the customer segment to which each business is directed, the key resources and activities that should be used in the economic, human and intellectual, with constant communication with customers and a correct interrelation, the adequate management of physical and intellectual costs and generate an appropriate value proposition to the client.

The Lean Start-up.

The Lean Start-up in the other hand is a management approach for start-up companies that was developed and popularized by the entrepreneurs Steve Blank (Blank and Dorf, 2012) and Eric Ries (Ries, 2011) with the aim of mitigating the inherent market risks in a new venture. It has quickly established itself as the preferred method for start-ups and is favoured by many start-up accelerators and incubators.

Lean Start-up is a discovery-driven process. It postulates hypotheses about central aspects of the business model which are then tested empirically by experiment.

More on the Lean Start-ups