1 00:00:00,320 --> 00:00:04,400 The Better Business Analysis Institute Presence, the Better 2 00:00:04,400 --> 00:00:07,760 Business Analysis Podcast with Kingsman Walsh. 3 00:00:12,520 --> 00:00:15,240 Hi everybody and welcome back to the Better Business Analysis 4 00:00:15,240 --> 00:00:17,560 podcast with Benjamin. Walsh Now we're going to be 5 00:00:17,560 --> 00:00:22,360 dipping back into our Business Analysis Unleashed series kind 6 00:00:22,360 --> 00:00:24,920 of just kicking off. Where we left off. 7 00:00:25,400 --> 00:00:29,500 So we've already covered some strategic business analysis 8 00:00:29,500 --> 00:00:33,100 techniques or just. General strategic analysis 9 00:00:33,100 --> 00:00:38,420 techniques that are useful to craft what the market looks 10 00:00:38,420 --> 00:00:41,700 like, what our competitors are doing, what our. 11 00:00:41,700 --> 00:00:46,220 Strengths and our weaknesses are about and now it's time to 12 00:00:46,220 --> 00:00:52,100 really connect that strategy back into the enterprise or back 13 00:00:52,100 --> 00:00:55,420 into the organization. And and when I say. 14 00:00:56,090 --> 00:00:58,450 Terms like enterprise or strategy. 15 00:00:58,850 --> 00:01:01,490 This could relate to a business of any size. 16 00:01:01,890 --> 00:01:04,810 This could relate to a startup company, a charity, a small 17 00:01:04,810 --> 00:01:07,130 business or a. Large enterprise. 18 00:01:07,370 --> 00:01:10,810 So these techniques, even though they might sound burgin and and 19 00:01:10,810 --> 00:01:13,010 complex, and we've already covered a few, they're not that 20 00:01:13,010 --> 00:01:16,210 complicated, They're. Really straight up common sense 21 00:01:16,690 --> 00:01:19,410 questions and techniques that anyone can do. 22 00:01:20,730 --> 00:01:22,850 We. We can apply this to any 23 00:01:22,850 --> 00:01:25,090 business, so don't. Don't think for a minute that 24 00:01:25,090 --> 00:01:27,210 just because you work for a government department or you 25 00:01:27,210 --> 00:01:28,650 work. For a SME or you've got you 26 00:01:28,650 --> 00:01:29,650 know. Five staff. 27 00:01:29,930 --> 00:01:32,770 These techniques aren't applicable now. 28 00:01:33,010 --> 00:01:38,290 The ultimate goal here is to, when we are thinking about the 29 00:01:38,290 --> 00:01:42,130 enterprise, is to set some strategic objectives. 30 00:01:42,130 --> 00:01:46,050 So if you're a BA, you would have heard of the word strategic 31 00:01:46,050 --> 00:01:49,290 objectives or if you're in IT, these are this is kind of what 32 00:01:49,290 --> 00:01:52,760 you're setting for your plan. I mean, sometimes it's referred 33 00:01:52,760 --> 00:01:54,520 to as the. Strategic plan. 34 00:01:55,240 --> 00:01:58,000 These are the high level goals that your business has. 35 00:01:58,400 --> 00:02:00,520 And this could happen, well, once a year. 36 00:02:00,520 --> 00:02:02,640 Sometimes that's referred to as an annual. 37 00:02:03,080 --> 00:02:06,800 Plan, and usually if you're doing it annually, you might 38 00:02:06,800 --> 00:02:09,400 have a strategy that goes to for three years. 39 00:02:10,560 --> 00:02:15,400 It seems to be that the kind of amount of time that we plan for. 40 00:02:15,770 --> 00:02:19,170 You know not too far in terms of the, the future in terms of. 41 00:02:19,170 --> 00:02:22,050 Like a long term strategic plan which might be 15 years. 42 00:02:22,810 --> 00:02:25,410 Or five years, and somewhere between three and five years is 43 00:02:25,410 --> 00:02:28,730 usually what your strategic plan is looking at you. 44 00:02:28,770 --> 00:02:31,570 This is something that shouldn't change that much. 45 00:02:31,570 --> 00:02:35,090 Throughout that period may be reviewed by your senior 46 00:02:35,090 --> 00:02:37,250 leadership team or yourselves if you are a startup. 47 00:02:37,250 --> 00:02:41,090 Company and probably changes more of your startup company in 48 00:02:41,090 --> 00:02:44,010 terms of trying things. And when you're established, 49 00:02:44,210 --> 00:02:46,010 this might happen for. A three-year period. 50 00:02:46,850 --> 00:02:50,890 You might tweak it over the three years, so you've got the 51 00:02:50,890 --> 00:02:52,370 strategy. And we need to build that out. 52 00:02:52,370 --> 00:02:54,610 So that's OK. Really, it starts with these 53 00:02:54,610 --> 00:02:56,250 objectives. What are you trying to achieve? 54 00:02:56,290 --> 00:02:59,250 Over that period and then you start to look at some of the 55 00:02:59,250 --> 00:03:04,650 initiatives. And and be a term you could call 56 00:03:04,650 --> 00:03:08,610 the initiative strategic initiatives themes in the agile 57 00:03:08,610 --> 00:03:10,790 term? And then they drop down to epics 58 00:03:10,790 --> 00:03:12,830 which. Is generally the business area 59 00:03:12,830 --> 00:03:15,270 planning and then you could go down to? 60 00:03:15,270 --> 00:03:17,790 Stories which might be specific to the individual. 61 00:03:17,990 --> 00:03:20,590 It's a very BA method. I think it's a really great 62 00:03:20,590 --> 00:03:25,630 method to use to link projects to objectives, but usually you 63 00:03:25,630 --> 00:03:30,510 don't hear that language and within a MBA or within a 64 00:03:30,510 --> 00:03:32,030 business setting you would hear things. 65 00:03:32,030 --> 00:03:38,120 Like Kri's like key result areas and then Kpi's which are key 66 00:03:38,120 --> 00:03:40,280 performance indicators. Which generally relate down to 67 00:03:40,280 --> 00:03:42,360 an individual. And that's their performance 68 00:03:42,360 --> 00:03:44,600 management of your. Staff they are. 69 00:03:44,640 --> 00:03:47,840 They could be one and the same. So I'll talk about that in a 70 00:03:47,840 --> 00:03:49,560 later podcast, but effectively you. 71 00:03:49,560 --> 00:03:53,000 Could use the BA planning technique, which is great 72 00:03:53,000 --> 00:03:54,640 because then you're talking about projects, which is 73 00:03:54,640 --> 00:03:56,480 effectively what initiatives are. 74 00:03:57,080 --> 00:04:01,800 And you're using all that good projecty stuff and project 75 00:04:01,800 --> 00:04:05,560 management stuff to plan either products or your projects. 76 00:04:06,270 --> 00:04:09,910 And your people change and then, but if you're just talking about 77 00:04:09,910 --> 00:04:13,630 Kri's or Kpi's, it's it's. There are many ways of doing 78 00:04:13,630 --> 00:04:16,149 that and it's not well structured, so I I suggest that 79 00:04:16,149 --> 00:04:17,910 they are done. Together and they are one and 80 00:04:17,910 --> 00:04:19,870 the same. And I'll talk about that 81 00:04:19,870 --> 00:04:23,150 probably as a specific podcast talking about strategic. 82 00:04:23,150 --> 00:04:25,910 Performance planning. But right now all we need to 83 00:04:25,910 --> 00:04:29,350 know is that in order to get some goals for the business and 84 00:04:29,350 --> 00:04:32,150 really set, you know, tasks and and and. 85 00:04:32,150 --> 00:04:34,930 Areas of focus. For our business, we need to 86 00:04:34,930 --> 00:04:38,850 turn our strategic planning into more of the enterprise view. 87 00:04:39,970 --> 00:04:43,730 And there are lots of ways of doing this. 88 00:04:43,810 --> 00:04:50,890 And this is where I would say that you have many choices and 89 00:04:50,890 --> 00:04:53,250 sometimes you have too many choices in terms of how you can 90 00:04:53,250 --> 00:04:55,930 make this happen. One is to simply take the 91 00:04:55,930 --> 00:04:59,970 techniques we've covered so far, like the five forces pistol 92 00:04:59,970 --> 00:05:01,130 models. What analysis? 93 00:05:01,450 --> 00:05:04,330 And just drop out, you know, doing a a big room planning 94 00:05:04,330 --> 00:05:07,850 session at your leadership team, a session, you know, maybe 95 00:05:07,850 --> 00:05:11,370 sharing that with your business. Units waiting for their feedback 96 00:05:11,370 --> 00:05:14,250 and you kind of just talk about it and then you plan strategic 97 00:05:14,250 --> 00:05:19,370 objectives. The only kind of caveat there is 98 00:05:19,370 --> 00:05:22,010 that you're trying to do SMART objectives, the acronym SMART. 99 00:05:22,690 --> 00:05:25,420 Look that up if you don't know what they are in terms of being 100 00:05:25,420 --> 00:05:27,620 specific and measurable and accurate and repeatable and 101 00:05:27,620 --> 00:05:30,020 timely so. They're statements that are like 102 00:05:30,540 --> 00:05:35,300 reduce customer retention by 20% by the end of 2023. 103 00:05:35,580 --> 00:05:39,260 That's a smart objective. And that's the kind of level 104 00:05:39,260 --> 00:05:41,540 we're talking about here when we talk about strategic objectives 105 00:05:41,540 --> 00:05:45,020 and we talk about the. The very high level what and not 106 00:05:45,020 --> 00:05:47,140 necessary how we're going to do that which. 107 00:05:47,540 --> 00:05:51,460 We ask our operational teams and our project teams to come up 108 00:05:51,460 --> 00:05:55,670 with that. One technique that I've seen you 109 00:05:56,470 --> 00:06:01,790 effectively and and effectively. So I'm going to premise this 110 00:06:02,110 --> 00:06:04,950 suggestion. With the fact that I've seen it 111 00:06:05,430 --> 00:06:12,230 as just a time waster. Or or or an artifact that you do 112 00:06:12,270 --> 00:06:15,870 and then you never go back to. And people sometimes see this 113 00:06:15,870 --> 00:06:19,710 as. Being a technique that that 114 00:06:19,790 --> 00:06:22,630 doesn't add as much value as it may portray. 115 00:06:23,800 --> 00:06:28,640 But in saying that of you know it's a we we're evolve our 116 00:06:28,640 --> 00:06:32,000 thinking we use these techniques and some of the questions that. 117 00:06:32,200 --> 00:06:37,640 This particular technique asks are the right questions. 118 00:06:38,240 --> 00:06:42,240 In terms of moving that strategic thinking into business 119 00:06:42,240 --> 00:06:46,360 thinking? So if you're a I would say if 120 00:06:46,360 --> 00:06:51,640 you are a business that is established, you're not a 121 00:06:51,640 --> 00:06:55,100 startup company. This is where the differences 122 00:06:56,260 --> 00:06:59,500 may may come about, and I'm going to assume that you're not 123 00:06:59,500 --> 00:07:01,820 a startup company for for right now, and then I'll. 124 00:07:01,820 --> 00:07:04,420 And then I'll flip to what you can do if you're a startup 125 00:07:04,420 --> 00:07:07,660 company. And and the good reason why 126 00:07:07,660 --> 00:07:09,860 we're going to start here is actually this came first before 127 00:07:09,860 --> 00:07:12,540 the technique that we're going to talk about for startups, the. 128 00:07:12,620 --> 00:07:15,300 Technique that we're going to talk about right now is called 129 00:07:15,300 --> 00:07:19,090 the Business Model Canvas. Okay, it's. 130 00:07:19,970 --> 00:07:22,690 It's an extremely fluid technique and that's why I said 131 00:07:23,490 --> 00:07:27,770 like anything, it could go, it could be so fluid that it could 132 00:07:27,770 --> 00:07:32,370 be flushed down the toilet. Or it could be well managed and 133 00:07:32,370 --> 00:07:37,610 it could. Be, you know, specific to the 134 00:07:37,610 --> 00:07:38,770 company. That you need and you really 135 00:07:38,770 --> 00:07:42,090 need to make it specific to your to your company. 136 00:07:43,300 --> 00:07:47,900 The business model canvas is a one page document, which is why 137 00:07:47,900 --> 00:07:51,060 it's. Kind of great one pages or, you 138 00:07:51,060 --> 00:07:54,380 know, white one. White board of of information is 139 00:07:54,380 --> 00:07:56,940 the way that we really want to express information these days. 140 00:07:57,100 --> 00:08:00,180 Some rise onto A1 pager. That doesn't mean just reduce 141 00:08:00,180 --> 00:08:04,700 your font down to. You know, two point, it's about 142 00:08:04,700 --> 00:08:07,100 having less words and just really specific words. 143 00:08:09,480 --> 00:08:12,680 The business model canvas allows us to carry out really high 144 00:08:12,680 --> 00:08:15,440 level analysis. So we are doing what I would say 145 00:08:15,440 --> 00:08:19,160 true BA work here and but primarily this hasn't come from 146 00:08:19,160 --> 00:08:21,280 the world of BA, come from the world of business. 147 00:08:22,480 --> 00:08:27,040 And it is made-up of nine different sections, so you can 148 00:08:27,040 --> 00:08:30,400 imagine an A for. A piece of paper with, you know, 149 00:08:30,400 --> 00:08:31,960 business model canvas on the top. 150 00:08:32,360 --> 00:08:34,480 And it's divided into different segments. 151 00:08:35,659 --> 00:08:39,940 If you have heard of a lean canvas, which is very much more 152 00:08:39,940 --> 00:08:45,180 of a modern term, then you do know what a business model 153 00:08:45,180 --> 00:08:48,140 canvas is. The difference between a 154 00:08:48,140 --> 00:08:50,860 business model canvas and a lean canvas is a lean canvas which 155 00:08:51,020 --> 00:08:54,340 was evolved out of this technique for startups. 156 00:08:54,660 --> 00:08:56,900 So when I said before. What would you do if you're a 157 00:08:56,900 --> 00:08:58,300 startup company? I would suggest. 158 00:08:58,300 --> 00:09:01,460 A lean canvas, or if you're doing a pivot within your 159 00:09:01,460 --> 00:09:04,180 organization, doing a lean canvas is probably your best 160 00:09:04,540 --> 00:09:07,370 bet. And if you're an established 161 00:09:07,370 --> 00:09:10,050 business, then you're you really want to do a business model 162 00:09:10,050 --> 00:09:12,210 canvas, which basically assumes that. 163 00:09:12,450 --> 00:09:16,690 Few of these key areas I'm going to talk about a little bit more 164 00:09:16,690 --> 00:09:22,290 known and we're we're taking less gambles here even though 165 00:09:22,290 --> 00:09:25,290 the business model canvas is divided into these sections 166 00:09:25,290 --> 00:09:27,770 which I'll talk about. Key partners on the left and 167 00:09:27,770 --> 00:09:30,490 then next to it. Moving from left to right, key 168 00:09:30,490 --> 00:09:34,580 activities, then key resources, your value propositions, your 169 00:09:34,580 --> 00:09:38,140 customer relationships, your channels and then your customer. 170 00:09:38,140 --> 00:09:40,900 Segments on the right. Then underneath all of that, you 171 00:09:40,900 --> 00:09:43,780 kind of have two areas, which are your costs and your revenue 172 00:09:43,780 --> 00:09:45,500 streams. So it's an 1/4. 173 00:09:45,580 --> 00:09:47,940 Piece of paper made-up of these 9 sections. 174 00:09:48,380 --> 00:09:51,900 And really, it's just you can you can Google this, you'll find 175 00:09:51,980 --> 00:09:54,700 a copy of a business model canvas, no problem. 176 00:09:56,260 --> 00:09:59,140 And ironically, you don't fit in left to right. 177 00:09:59,140 --> 00:10:01,980 You you start with your customer segments, so you should start 178 00:10:01,980 --> 00:10:03,860 with your customer segments after it's been. 179 00:10:04,400 --> 00:10:06,680 It's been used quite a bit and people realize that you know 180 00:10:06,720 --> 00:10:09,040 it's you should probably be starting on the right hand side 181 00:10:09,040 --> 00:10:13,520 with who are you serving. So this business model canvas is 182 00:10:13,520 --> 00:10:14,920 A1. Page piece of paper. 183 00:10:15,160 --> 00:10:18,840 There are nine, six areas that you fill in and you start not 184 00:10:18,840 --> 00:10:21,640 necessarily on left to right, but at your customer areas. 185 00:10:22,520 --> 00:10:27,320 Now this relates very, very heavily to a technique that 186 00:10:27,320 --> 00:10:29,880 we've developed at the bit of. Persistence Analysis Institute 187 00:10:29,880 --> 00:10:33,120 called the 4P Plus. Model which is around people. 188 00:10:33,680 --> 00:10:36,320 It's around processes, around projects and it's around 189 00:10:36,400 --> 00:10:38,560 products and it's around, you know, the concept of people 190 00:10:38,560 --> 00:10:42,040 driving things. 1st that they have problems and we aim to 191 00:10:42,040 --> 00:10:44,320 solve them. If you look at the, if you 192 00:10:44,320 --> 00:10:46,760 understand that and you've listened to that podcast, that 193 00:10:46,760 --> 00:10:49,000 will be helpful. Because when we talk about our 194 00:10:49,000 --> 00:10:50,440 customer segments, we're talking. 195 00:10:50,440 --> 00:10:54,400 About the kind of personas, the highest level customer segments. 196 00:10:54,520 --> 00:10:57,750 In the market that we've literally been talking about as 197 00:10:57,750 --> 00:10:59,190 part of our strategic analysis like. 198 00:10:59,190 --> 00:11:03,190 Who is our actual customer and this is a real challenge for a 199 00:11:03,190 --> 00:11:06,710 lot of business, they just don't know, so they might be doing 200 00:11:06,710 --> 00:11:08,190 really well. So they've never really worked 201 00:11:08,190 --> 00:11:12,790 out who their main target customers or their task customer 202 00:11:12,790 --> 00:11:15,590 segment is. It could also be different to 203 00:11:15,590 --> 00:11:19,030 what you started off. Targeting and other customer 204 00:11:19,030 --> 00:11:22,980 segments were attracted to your product and became your main 205 00:11:22,980 --> 00:11:25,700 source of income. So you're talking about your do 206 00:11:25,700 --> 00:11:28,180 the customer segments you actually serve that are 207 00:11:28,180 --> 00:11:30,980 profitable? Do you talk to them as your 208 00:11:30,980 --> 00:11:36,500 customer? So for example, if we were just 209 00:11:36,500 --> 00:11:42,740 running local mechanics, our customer segments could be local 210 00:11:43,260 --> 00:11:46,330 friends and family we know or there could be 1 customer 211 00:11:46,330 --> 00:11:47,890 segment. So people that have a high trust 212 00:11:47,890 --> 00:11:49,650 model there could. Also be a segment around 213 00:11:49,650 --> 00:11:52,410 customers who and new customers who have just found us. 214 00:11:53,010 --> 00:11:55,970 Found out about us through referrals and then it could. 215 00:11:55,970 --> 00:11:58,290 Be just a random customer, so you've got. 216 00:11:58,290 --> 00:12:00,930 These are really high level kind of marketing segments if you 217 00:12:00,930 --> 00:12:03,490 like. That kind of term with personas 218 00:12:03,490 --> 00:12:06,170 that could represent those people you start with those 219 00:12:06,170 --> 00:12:07,930 customer segments. And then you talk about the 220 00:12:07,930 --> 00:12:09,730 value proposition that you offer them. 221 00:12:10,630 --> 00:12:13,790 And because this isn't a lean canvas, you're not making up 222 00:12:13,870 --> 00:12:16,950 what the value proposition is you're actually finding. 223 00:12:17,310 --> 00:12:20,070 Or you know why those customers are coming to you? 224 00:12:20,590 --> 00:12:24,110 And so for the local friends and family, it could be the value 225 00:12:24,110 --> 00:12:26,670 proposition is a trusted garage where you know that you're 226 00:12:27,110 --> 00:12:30,270 getting quality service for what you're paying for, for those who 227 00:12:30,270 --> 00:12:33,470 are. Referred it could be again, it 228 00:12:33,470 --> 00:12:34,950 could be around trust, but it could also. 229 00:12:34,950 --> 00:12:41,230 Be fair cost for for service and those that are just finding you 230 00:12:41,470 --> 00:12:43,310 funny out about you and don't are just. 231 00:12:43,470 --> 00:12:46,230 Indirect and haven't been referred, just finding you in 232 00:12:46,230 --> 00:12:49,350 the Google search. Or, you know, Yellow Pages or 233 00:12:49,350 --> 00:12:51,470 whatever the equivalent is in the country. 234 00:12:51,470 --> 00:12:54,270 You're in, then that could just all those random customers. 235 00:12:54,270 --> 00:12:57,470 It could simply be that you are available and you have 236 00:12:57,470 --> 00:13:00,150 availability. And that you're you seem to have 237 00:13:00,150 --> 00:13:02,830 a. Good reviews on on Google 238 00:13:02,990 --> 00:13:05,270 Review. So these value propositions are 239 00:13:06,030 --> 00:13:09,740 kind of talking about how. Kind of what are you offering 240 00:13:09,740 --> 00:13:13,220 those people that's different and and and in all those cases I 241 00:13:13,220 --> 00:13:16,820 just listed it is mechanical services, but I was just kind of 242 00:13:16,820 --> 00:13:19,740 a guess specifying the difference in terms of what 243 00:13:19,740 --> 00:13:21,700 they. Would know it's best to write it 244 00:13:21,700 --> 00:13:25,580 in the language in which your customer would state it not. 245 00:13:25,580 --> 00:13:28,540 Necessarily something boring or clinical that you can come up 246 00:13:28,540 --> 00:13:31,540 with. The third part of the section we 247 00:13:31,540 --> 00:13:34,130 go to is the channels. You don't know what channels 248 00:13:34,130 --> 00:13:35,170 are. Channels are all. 249 00:13:35,170 --> 00:13:38,330 The different ways in which you communicate with your customer 250 00:13:38,930 --> 00:13:41,410 inwardly and outwardly. So it could be your website as a 251 00:13:41,410 --> 00:13:45,410 channel podcast. Compare channel for example it 252 00:13:45,410 --> 00:13:51,170 could be the in store if you had a store so face to face it could 253 00:13:51,170 --> 00:13:53,170 be Facebook, could be your social channels. 254 00:13:53,570 --> 00:13:56,250 And it could be your website booking system, you know, 255 00:13:56,250 --> 00:13:59,330 referral. From AA or something, which is 256 00:13:59,330 --> 00:14:01,570 the Automotive Institute in New Zealand. 257 00:14:01,570 --> 00:14:04,450 Not alcoholic Alcoholics Anonymous as it is in the 258 00:14:04,450 --> 00:14:07,130 States. So it's just the ways you 259 00:14:07,130 --> 00:14:09,770 communicate to your customers and you get to draw this up. 260 00:14:09,810 --> 00:14:13,690 It's really quite good if you do a customer journey map with your 261 00:14:13,770 --> 00:14:15,890 business model canvas. If you're not sure about these 262 00:14:15,890 --> 00:14:18,210 things once you've done the customer. 263 00:14:18,210 --> 00:14:20,930 Journey map. You know, once you would just 264 00:14:21,050 --> 00:14:24,010 maybe update your business Middle Canvas through these 265 00:14:24,010 --> 00:14:25,970 three-year cycles. When you're doing strategic 266 00:14:25,970 --> 00:14:30,000 planning, there's customer relationships, which is #4 the 267 00:14:30,000 --> 00:14:32,040 relationships you have with your different customers. 268 00:14:32,720 --> 00:14:34,320 Then there's the. Revenue stream. 269 00:14:34,320 --> 00:14:37,040 So how much money? Is each one of these customer 270 00:14:37,040 --> 00:14:38,960 segments kind of bringing? In through what channel? 271 00:14:39,960 --> 00:14:43,080 Then you move on to the resources required to service 272 00:14:43,560 --> 00:14:46,480 those customers. The key resources, not every 273 00:14:46,680 --> 00:14:48,560 resource. So it might be mechanics. 274 00:14:48,960 --> 00:14:51,960 In this case, key activities that you're providing could be 275 00:14:51,960 --> 00:14:55,690 warrant, warrant, fitness. It could be just basic 276 00:14:55,730 --> 00:14:57,690 mechanical services, it could be. 277 00:14:58,210 --> 00:15:02,530 Oil change, you know, it could be any mechanical breakdown. 278 00:15:02,530 --> 00:15:05,090 Faults could be towing. So what are the key? 279 00:15:05,090 --> 00:15:07,450 Activities you're providing which which are really 280 00:15:07,450 --> 00:15:09,450 important. Another way of writing key 281 00:15:09,450 --> 00:15:15,570 activities it it could. Be what are your main business 282 00:15:15,570 --> 00:15:19,290 capabilities, so your highest. Level business processes that a 283 00:15:19,290 --> 00:15:21,570 customer facing. What is it that your? 284 00:15:22,610 --> 00:15:27,330 Business provides as its catalog of services, so. 285 00:15:27,490 --> 00:15:29,610 You know, that's it's really important and we're going to 286 00:15:29,610 --> 00:15:33,730 bring that, we're going to come up to that and come back to 287 00:15:33,730 --> 00:15:35,690 that. Point when we talk about how we 288 00:15:35,690 --> 00:15:38,930 then take this model and break it down even. 289 00:15:39,810 --> 00:15:43,570 So those key activities are your business processes, but because 290 00:15:43,570 --> 00:15:45,730 this is a business model canvas, we're talking about the ones 291 00:15:45,730 --> 00:15:50,010 that are really more customer focused if under the customer 292 00:15:50,010 --> 00:15:53,760 focus processes. So if we weren't a mechanic? 293 00:15:53,760 --> 00:15:56,480 We were don't know tax department. 294 00:15:56,800 --> 00:16:00,200 Then key activities may not be necessarily all. 295 00:16:00,200 --> 00:16:03,640 Customer facing the key resources which we already 296 00:16:03,640 --> 00:16:06,880 talked about which is 6th, just a point on that is that. 297 00:16:07,040 --> 00:16:09,120 It could be your largest amount of people. 298 00:16:09,440 --> 00:16:12,720 Resources. Not just physical resources. 299 00:16:12,960 --> 00:16:15,360 So I said mechanics before. That would be a good example, 300 00:16:15,840 --> 00:16:18,640 but it could also be. Other resources that you use. 301 00:16:18,640 --> 00:16:20,480 So if you're a mining company, it could be the. 302 00:16:21,450 --> 00:16:23,210 The. The location, the equipment and 303 00:16:23,210 --> 00:16:26,570 also the. I guess you know the the 304 00:16:26,690 --> 00:16:31,770 material that you're mining key partners is #8, which is the 305 00:16:31,770 --> 00:16:34,050 partners that make this business. 306 00:16:34,050 --> 00:16:37,370 Model possible. Not just random people that you 307 00:16:37,370 --> 00:16:40,570 use, but pretty much the partners that. 308 00:16:40,570 --> 00:16:43,530 You have in order to be successful in this business. 309 00:16:43,530 --> 00:16:46,490 Without them, you wouldn't be. The when we say key, these are 310 00:16:46,530 --> 00:16:48,050 all things that you. Have to have. 311 00:16:48,370 --> 00:16:51,880 They're not should haves or. Could haves that or nice to 312 00:16:51,880 --> 00:16:54,240 haves they are. The things that make your 313 00:16:54,240 --> 00:16:57,320 business tick and then. Finally, we land on our costs 314 00:16:57,400 --> 00:17:00,640 and of course, the costs. Are driven from your key 315 00:17:00,640 --> 00:17:03,760 partners, the key activities and the key resources. 316 00:17:04,680 --> 00:17:07,520 Key partners could also be suppliers and that's your kind 317 00:17:07,520 --> 00:17:09,240 of. Cost and then on the up right, 318 00:17:09,800 --> 00:17:12,880 the right hand side of the diagram, but where we started 319 00:17:13,119 --> 00:17:16,960 was really talking about the customers, their relationships, 320 00:17:16,960 --> 00:17:18,319 the channels. And their revenue? 321 00:17:18,930 --> 00:17:21,050 And then in the middle we've got that value proposition. 322 00:17:21,050 --> 00:17:23,410 So you're kind of. Linking one side of the canvas 323 00:17:23,810 --> 00:17:26,930 talking about, you know, what are you providing and the cost 324 00:17:26,930 --> 00:17:29,930 behind it and then the right hand side is more around, OK, 325 00:17:29,930 --> 00:17:33,250 well who's buying it? And between them it's. 326 00:17:33,250 --> 00:17:36,010 The link between your product customer which is your value 327 00:17:36,010 --> 00:17:37,690 proposition. Why you? 328 00:17:37,970 --> 00:17:41,130 Why not your competitor? And so all these questions. 329 00:17:41,450 --> 00:17:43,930 A lot of the answers to these questions, not all of them. 330 00:17:44,050 --> 00:17:46,810 Because now we're looking internally as a kind of an 331 00:17:46,810 --> 00:17:51,030 enterprise analysis technique. We discussed a lot of these 332 00:17:51,030 --> 00:17:54,870 areas as all we discussed a lot of these points. 333 00:17:55,310 --> 00:17:57,870 Throughout some of those strategic analysis techniques, 334 00:17:58,670 --> 00:18:00,470 and really this is a difficult this is not. 335 00:18:00,470 --> 00:18:04,950 Naturally, naturally an easy thing to complete and ask hard 336 00:18:04,950 --> 00:18:07,550 questions, you should be thinking. 337 00:18:07,550 --> 00:18:11,630 About the change of market here, you should be taking thinking 338 00:18:11,630 --> 00:18:13,270 about each element you put in here. 339 00:18:13,870 --> 00:18:17,270 So if you've got key partners that are we talked about before, 340 00:18:17,270 --> 00:18:21,390 if the buying power of your of the buyer or the seller of your 341 00:18:21,390 --> 00:18:24,470 service has changed then? You know you can't guarantee 342 00:18:24,470 --> 00:18:26,750 that your revenue revenue streams were the same. 343 00:18:26,750 --> 00:18:30,950 If there's going to be some economic uncertainty, cost of 344 00:18:30,950 --> 00:18:33,190 living, then your cost could go up. 345 00:18:34,550 --> 00:18:38,150 Or and therefore you need to. Therefore, you need to put your 346 00:18:38,150 --> 00:18:40,670 sales cost up. Which could affect your revenue 347 00:18:40,670 --> 00:18:43,810 streams, so. All those techniques we talked 348 00:18:43,810 --> 00:18:45,970 about, once you've done your business model canvas, you 349 00:18:45,970 --> 00:18:48,810 should go. Back to your strategic analysis 350 00:18:48,930 --> 00:18:51,530 outputs like your spot analysis and your five forces, your 351 00:18:52,050 --> 00:18:54,610 pistol analysis. And then overlay that and say is 352 00:18:54,610 --> 00:18:55,650 this any different? Is this? 353 00:18:55,650 --> 00:18:57,970 Different, You know? Does this change anything? 354 00:18:58,210 --> 00:19:00,130 Does that mean some of the assumptions we've gotten here 355 00:19:00,130 --> 00:19:02,570 aren't tested? And we need now need to monitor 356 00:19:02,570 --> 00:19:05,330 them. And so that provides you with a 357 00:19:05,490 --> 00:19:10,100 bit of a bit of a connection back to the business and you're. 358 00:19:10,100 --> 00:19:12,900 Starting to really think about your business as a whole. 359 00:19:14,380 --> 00:19:17,140 Again, you could just do this independently of the strategic. 360 00:19:18,420 --> 00:19:20,700 Kind of analysis techniques, but what's? 361 00:19:20,700 --> 00:19:23,380 Important about this is that we know business isn't static, so 362 00:19:23,380 --> 00:19:25,580 you might go all. These things are true, OK, but 363 00:19:25,580 --> 00:19:28,380 I'm just a girl to ignore the market, although the. 364 00:19:29,420 --> 00:19:31,500 Outside of my business. And then your business just 365 00:19:31,500 --> 00:19:33,660 won't last. Because you have said, OK, well 366 00:19:33,660 --> 00:19:36,860 our costs going to be static and our revenues going to be static. 367 00:19:37,220 --> 00:19:39,820 So everything's fine and dandy, and a lot of business do that. 368 00:19:40,180 --> 00:19:42,820 And then the market changes around them and then they're not 369 00:19:42,820 --> 00:19:44,060 competitive enough. Their key? 370 00:19:44,060 --> 00:19:47,260 Partners leave that their value proposition is no longer as 371 00:19:47,260 --> 00:19:49,540 strong as it needs to be. Some of the customer segments 372 00:19:49,780 --> 00:19:53,660 stolen, some of the channels that other businesses that are. 373 00:19:53,780 --> 00:19:57,260 Offering through growing, so you're like lagging. 374 00:19:57,260 --> 00:20:00,060 Behind and your key resource costs go up. 375 00:20:01,180 --> 00:20:03,660 So that's how that those techniques we've already talked 376 00:20:03,660 --> 00:20:07,340 about relate to this. Particular model it's it sounds 377 00:20:07,340 --> 00:20:08,980 really. When you'll Google it and you'll 378 00:20:08,980 --> 00:20:12,900 see a piece of paper. Of this you know and I can 379 00:20:12,900 --> 00:20:17,660 probably link through to 1. However, it will seem easy and 380 00:20:17,660 --> 00:20:21,620 it sometimes is done badly because it's just filled in, but 381 00:20:21,620 --> 00:20:24,140 it isn't necessarily thinking about all those other. 382 00:20:24,140 --> 00:20:26,020 Factors, so make sure when you do this. 383 00:20:26,780 --> 00:20:29,300 Yes, you start by just filling it in with what you know. 384 00:20:29,700 --> 00:20:32,180 Then you're. Applying the strategic analysis 385 00:20:32,580 --> 00:20:37,990 mindset across it the other as I talked about. 386 00:20:38,030 --> 00:20:44,430 Before, I would say there's kind of three areas here that are 387 00:20:44,430 --> 00:20:46,990 really. More difficult than the other 388 00:20:46,990 --> 00:20:50,150 areas. So usually sometimes businesses 389 00:20:50,150 --> 00:20:53,390 have a really hard time working. Out who their target customers 390 00:20:53,390 --> 00:20:56,510 are. So it might kick off a piece of 391 00:20:56,510 --> 00:20:59,830 research to research. Ask your customers questions and 392 00:20:59,830 --> 00:21:02,230 actually find out who they are. Bring them in. 393 00:21:02,230 --> 00:21:04,410 Meet them. Find out more about them. 394 00:21:04,450 --> 00:21:06,290 It might. Kick off a little, you know, 395 00:21:06,290 --> 00:21:10,410 marketing piece of analysis or even going out externally if 396 00:21:10,410 --> 00:21:11,890 you're a big enough company to pay for that. 397 00:21:12,650 --> 00:21:15,650 The other area that people struggle with is the value. 398 00:21:15,650 --> 00:21:18,090 Proposition of some of their products or services. 399 00:21:19,570 --> 00:21:21,650 So they may have a very strong value. 400 00:21:21,650 --> 00:21:24,970 Proposition for their core product or their core offering. 401 00:21:25,410 --> 00:21:27,690 But not so much for some of the other. 402 00:21:28,450 --> 00:21:31,370 Services they provide. So therefore, you know, behind 403 00:21:31,370 --> 00:21:33,610 that whole lot of activities and costs behind it. 404 00:21:33,610 --> 00:21:40,850 So you can have some, you know, quite heated long debate and you 405 00:21:40,850 --> 00:21:44,490 can't just say if, OK, so let me. 406 00:21:44,690 --> 00:21:48,410 Put it this way, if your value proposition sounds very very. 407 00:21:48,410 --> 00:21:51,770 Similar to your competitor and unless you've got some duopoly 408 00:21:51,770 --> 00:21:55,550 monopoly situation. Your company is not going to 409 00:21:55,550 --> 00:21:58,230 last. You need to make sure your value 410 00:21:58,230 --> 00:22:00,990 proposition is strong enough. Now, it may not be strong enough 411 00:22:00,990 --> 00:22:03,470 today, and that's OK, but you must include. 412 00:22:03,510 --> 00:22:06,110 That would be a key. Trigger for saying we need to do 413 00:22:06,110 --> 00:22:08,950 something in our strategic planning and our next you know 414 00:22:08,950 --> 00:22:13,630 three years to differentiate ourselves that could be, it 415 00:22:13,630 --> 00:22:17,030 could simply be a matter. Of offering something for 416 00:22:17,750 --> 00:22:21,710 cheaper then you know, getting less margin. 417 00:22:22,710 --> 00:22:25,230 That's one way of dealing with that problem, but that doesn't 418 00:22:25,230 --> 00:22:29,150 generally. Work in the long term or it 419 00:22:29,150 --> 00:22:31,190 could be around. Changing the you know, the way 420 00:22:31,190 --> 00:22:34,270 in which you offer the service, or just basically increasing. 421 00:22:34,270 --> 00:22:39,750 The value that a customer gets out of your product, so there 422 00:22:39,750 --> 00:22:41,310 that there's two there, so that's. 423 00:22:41,310 --> 00:22:43,990 Customer segments understanding who they are, the value. 424 00:22:45,550 --> 00:22:48,870 And then the other area that I I see people struggle. 425 00:22:48,870 --> 00:22:50,950 With and this is less around their. 426 00:22:51,950 --> 00:22:54,750 Strategy side, so customers and value. 427 00:22:55,670 --> 00:23:01,510 It's the key activities, so every organization that I've 428 00:23:01,510 --> 00:23:03,670 worked. Through work for and that's 429 00:23:03,750 --> 00:23:07,230 there's been many or done consultancy for. 430 00:23:08,030 --> 00:23:15,230 I've never seen a complete kind of process model catalog that 431 00:23:15,230 --> 00:23:18,310 there are definitely. Companies who are quite, you 432 00:23:18,310 --> 00:23:21,210 know, close to that. And then most of the time I see 433 00:23:21,210 --> 00:23:27,370 companies who just don't have any idea the processes are and 434 00:23:27,370 --> 00:23:31,010 so there are really good techniques process. 435 00:23:31,010 --> 00:23:34,650 Modeling techniques to help here does take a lot of time and 436 00:23:34,650 --> 00:23:36,890 investment. It doesn't mean you need to go 437 00:23:36,890 --> 00:23:39,330 to the end of the Greek. My recommendation is if you 438 00:23:39,330 --> 00:23:41,130 don't know what your key activities are. 439 00:23:41,410 --> 00:23:45,690 And make sure you go wide at the highest level before. 440 00:23:45,690 --> 00:23:49,210 You go deep. So what I mean by that is. 441 00:23:50,650 --> 00:23:53,210 Think about what the customer journey is and what needs to be 442 00:23:53,210 --> 00:23:55,410 true in order. To service those customers in 443 00:23:55,410 --> 00:23:58,330 order for them to get their job to be done with your customers. 444 00:23:58,330 --> 00:24:02,450 So providing mechanical services or cars, what is it? 445 00:24:02,450 --> 00:24:05,010 What are the touch points that they go through some of those 446 00:24:05,010 --> 00:24:07,050 activities that I talked about will be customer. 447 00:24:07,050 --> 00:24:11,570 Facing and others will not be customer facing, OK. 448 00:24:11,570 --> 00:24:17,710 So that's the business. Model Canvas O what we might. 449 00:24:17,710 --> 00:24:20,870 Go through is an example of what. 450 00:24:20,990 --> 00:24:26,230 A business model Canvas is for one of comanies that we all know 451 00:24:26,230 --> 00:25:23,810 about out there. OK, so we're going to do. 452 00:25:23,890 --> 00:25:30,010 A business model canvas for Disney, the large media company 453 00:25:30,010 --> 00:25:31,810 that actually owns quite a lot of assets. 454 00:25:32,770 --> 00:25:36,970 I've read a bit about Disney of. Late now I'm just a fascinating 455 00:25:38,610 --> 00:25:44,130 piece of kind of news article around why Disney was removing. 456 00:25:45,370 --> 00:25:48,530 Great. Content from Disney Plus and it 457 00:25:48,530 --> 00:25:51,670 was around the fact that they weren't making. 458 00:25:51,670 --> 00:25:55,550 As much money as they would like from Disney Plus subscription 459 00:25:56,030 --> 00:25:59,350 and they were having to this asset, this Disney. 460 00:25:59,350 --> 00:26:04,990 Plus asset as a separate kind of company was worth a lot of money 461 00:26:05,390 --> 00:26:09,550 and therefore they would have to pay a lot of tax on that new 462 00:26:09,550 --> 00:26:11,870 company. And so they were removing 463 00:26:11,990 --> 00:26:15,630 content from Disney plus so that their overall value was lower. 464 00:26:15,630 --> 00:26:17,990 So they didn't have. To pay as much tax, which meant 465 00:26:17,990 --> 00:26:21,210 that you and I would have less. Content on Disney Plus. 466 00:26:21,650 --> 00:26:24,010 It was a very, very strange article. 467 00:26:24,010 --> 00:26:25,610 But. Apparently it's something that's 468 00:26:25,610 --> 00:26:28,610 happening in the streaming market and so sparked my 469 00:26:28,610 --> 00:26:33,010 interest And so we'll see if any of that comes out here and we'll 470 00:26:33,010 --> 00:26:34,850 talk about. It a little bit in detail. 471 00:26:34,850 --> 00:26:37,170 So we're going to do the business model canvas. 472 00:26:37,290 --> 00:26:40,890 For Disney, and I'm going to start with the customer 473 00:26:40,890 --> 00:26:43,850 segments. So for Disney, because it's so 474 00:26:43,850 --> 00:26:47,330 huge, it really has a custom. Segment, which is kind of the 475 00:26:47,330 --> 00:26:48,610 mass market. So it's. 476 00:26:48,610 --> 00:26:51,410 Customers who enjoy Disney content across different media 477 00:26:51,410 --> 00:26:55,570 formats and platforms. It does have these kind of 478 00:26:55,570 --> 00:27:00,130 customers that are love individual Disney brands so 479 00:27:00,130 --> 00:27:02,690 star. Disney owned Star Wars, bought 480 00:27:02,690 --> 00:27:07,010 it from Locus film George Locust and obviously Marvel. 481 00:27:07,490 --> 00:27:10,840 Massive. Some franchises that owns many, 482 00:27:10,840 --> 00:27:14,160 but they are the biggest ones. So there's those specific 483 00:27:14,160 --> 00:27:16,880 customers who just love the individual Disney brand. 484 00:27:18,080 --> 00:27:20,280 They have a global market. So they have customers who live 485 00:27:20,280 --> 00:27:23,880 in different customers or regions around the world and 486 00:27:23,880 --> 00:27:26,440 then the family market which is really does where Disney 487 00:27:26,440 --> 00:27:28,920 traditionally started. Which are customers who want 488 00:27:28,960 --> 00:27:31,680 family friendly entertainment? Options for their children. 489 00:27:32,900 --> 00:27:36,300 And then there's there is now. Where Disney's going into which 490 00:27:36,300 --> 00:27:39,300 is the premium market, where customers who are willing to pay 491 00:27:39,300 --> 00:27:43,940 more for exclusive or premium content or experiences from 492 00:27:43,940 --> 00:27:48,300 Disney as well. So that's not just Disney who, 493 00:27:48,300 --> 00:27:50,500 you know, we think about Disney, we think about the cartoons, We 494 00:27:50,500 --> 00:27:51,900 also think about the theme parks. 495 00:27:52,420 --> 00:27:53,660 But they are huge. They do. 496 00:27:53,660 --> 00:27:57,830 Own a lot of assets, media assets and now they're offering 497 00:27:57,870 --> 00:27:59,470 for. Example, if you want to watch a 498 00:27:59,510 --> 00:28:02,270 movie that's just come out and the movies, you can pay extra on 499 00:28:02,270 --> 00:28:04,830 distinct Plus to watch that before it comes out. 500 00:28:04,830 --> 00:28:10,390 So that's kind of a premium. Experience in terms of the. 501 00:28:10,470 --> 00:28:14,310 Kind of channels in which they reach, sorry in terms of the 502 00:28:14,310 --> 00:28:16,310 value proposition that they. Offer and we'll get to channels 503 00:28:16,310 --> 00:28:19,350 after that. They offer, I guess they, they 504 00:28:19,350 --> 00:28:22,110 would say they offer unparalleled storytelling that 505 00:28:22,110 --> 00:28:24,030 entertains. And forms and inspires people 506 00:28:24,030 --> 00:28:29,560 around the globe. Almost their that's their vision 507 00:28:29,680 --> 00:28:34,520 for the company. They have iconic brands, they 508 00:28:34,520 --> 00:28:36,920 have creative minds. They have innovative. 509 00:28:37,000 --> 00:28:40,240 Technology that makes them, you know, quite a premier. 510 00:28:40,320 --> 00:28:44,240 Entertainment company as opposed to a budget one, they have a 511 00:28:44,240 --> 00:28:46,640 diverse. Portfolio of content across 512 00:28:46,640 --> 00:28:49,520 different genres and market and I guess. 513 00:28:49,520 --> 00:28:52,400 They've got a really, really strong brand, the. 514 00:28:52,400 --> 00:28:57,490 Loyalty of Disney. People that love Disney and the 515 00:28:57,490 --> 00:28:58,970 characters and the stories behind them. 516 00:28:59,410 --> 00:29:03,610 People are very much associated with that and then when in their 517 00:29:04,850 --> 00:29:08,210 parks division they have probably they are quite unique 518 00:29:08,210 --> 00:29:09,890 in. Offering this immersive and 519 00:29:09,890 --> 00:29:12,730 memorable experience through the theme park and the reservoirs 520 00:29:13,130 --> 00:29:15,050 and even the consumer. Products that we buy. 521 00:29:15,500 --> 00:29:19,180 So that's quite unique to them, that is. 522 00:29:19,300 --> 00:29:23,580 Quite expensive to run those parks and not other any not many 523 00:29:23,580 --> 00:29:26,380 other entertainment franchises kind of. 524 00:29:26,380 --> 00:29:28,940 Have that same immersive experience. 525 00:29:30,340 --> 00:29:32,980 Finally, I guess you could say that they offer personalized 526 00:29:32,980 --> 00:29:34,340 and. Convenient access to their 527 00:29:34,340 --> 00:29:36,380 content through streaming products like Disney. 528 00:29:36,380 --> 00:29:39,580 Plus, but the same would be true for any other. 529 00:29:40,500 --> 00:29:43,800 Entertainment County these days Who wants to survive but But 530 00:29:43,800 --> 00:29:46,080 it's true that a lot of other entertainment companies don't 531 00:29:46,080 --> 00:29:47,800 necessarily run their own streaming service. 532 00:29:47,800 --> 00:29:55,080 They might publish that their. Content through, sorry, Netflix 533 00:29:55,080 --> 00:29:59,000 for example, or other platforms that exist in terms of the 534 00:29:59,000 --> 00:30:03,880 channels and this is probably where they are huge and it's the 535 00:30:03,880 --> 00:30:07,680 same kind of universal or content or characters that 536 00:30:07,680 --> 00:30:09,400 they're. Providing which makes it unique. 537 00:30:10,890 --> 00:30:13,810 Which is they've got obviously cinema, cinema, theaters. 538 00:30:14,050 --> 00:30:16,810 With TV networks and cable channels, they've got streaming 539 00:30:16,810 --> 00:30:22,170 platforms like Disney Plus and Hulu and ESPN Plus. 540 00:30:22,170 --> 00:30:25,210 They own that as well. They've put, they've got a 541 00:30:25,770 --> 00:30:28,250 pretty big. Presence on YouTube and Facebook 542 00:30:28,250 --> 00:30:31,610 and Instagram mobile apps. They've got theme. 543 00:30:31,610 --> 00:30:34,970 Parks and resorts, they've got merchandise stores and then they 544 00:30:34,970 --> 00:30:38,850 also do. Events and and kind of exhibits 545 00:30:38,850 --> 00:30:41,500 around the world as well. So you know Mickey Mouse if you 546 00:30:41,500 --> 00:30:44,140 just take. Mickey Mouse, that character 547 00:30:44,140 --> 00:30:45,540 which has actually been less and less. 548 00:30:46,820 --> 00:30:51,380 Developed by Disney actually, but when Mickey Mouse was at 549 00:30:51,380 --> 00:30:55,180 its. Top you, you would see that 550 00:30:55,180 --> 00:30:57,060 character across. All those platforms. 551 00:30:57,060 --> 00:31:01,820 So that's quite, quite unique in that respect and it's Disney is 552 00:31:01,820 --> 00:31:03,820 so good. At their merchandising side, 553 00:31:03,820 --> 00:31:07,130 it's pretty much a large part of their business, other 554 00:31:07,130 --> 00:31:08,770 entertainment. Companies have kind of copied 555 00:31:08,770 --> 00:31:10,530 Disney in terms of how it does that. 556 00:31:12,810 --> 00:31:15,850 Now that's kind of the value, that's the customer. 557 00:31:15,850 --> 00:31:19,410 So really large customer base, not particularly will be the 558 00:31:19,410 --> 00:31:21,170 same. For you and your company it is 559 00:31:21,170 --> 00:31:24,810 quite exceptional. And how big Disney is but their 560 00:31:24,810 --> 00:31:26,410 value? Proposition is really important. 561 00:31:26,410 --> 00:31:28,730 They're finding at the moment that they're. 562 00:31:29,340 --> 00:31:31,220 Value proposition isn't as strong as they would. 563 00:31:31,220 --> 00:31:35,020 Have liked and Disney Plus and also the themes in part the 564 00:31:35,060 --> 00:31:36,580 parks for. Example they're getting going 565 00:31:36,660 --> 00:31:39,060 through some legal problems at the moment in the US. 566 00:31:40,180 --> 00:31:42,260 To do with political players in Florida. 567 00:31:43,220 --> 00:31:46,340 And so all of those strategic planning techniques could have 568 00:31:46,340 --> 00:31:48,340 been would. Have been done by Disney, of 569 00:31:48,620 --> 00:31:52,340 course, and they're now thinking about how those apply to. 570 00:31:52,340 --> 00:31:54,860 Their customers, is that changing the value proposition? 571 00:31:54,860 --> 00:31:56,020 They're. Offering and the channels that 572 00:31:56,020 --> 00:31:58,180 they offer or should they be offering all these channels? 573 00:31:58,750 --> 00:32:02,950 Expensive to do that now in order to. 574 00:32:03,390 --> 00:32:11,190 I guess deliver on all of that. They've got some key resources, 575 00:32:11,350 --> 00:32:15,190 key activities, key partners. And then got this kind of I 576 00:32:15,230 --> 00:32:18,390 guess cost structure that they need to put in but. 577 00:32:18,390 --> 00:32:21,350 In terms of the customers and the value proposition they're 578 00:32:21,350 --> 00:32:24,390 offering and the channels they're getting revenue through, 579 00:32:24,390 --> 00:32:26,590 things like. The box office from the movies, 580 00:32:27,030 --> 00:32:30,160 which has obviously gone down. People are moving to stream 581 00:32:30,160 --> 00:32:33,000 platforms, which kind of forced us into that position. 582 00:32:33,400 --> 00:32:36,320 Again, this is all the strategic analysis we're talking about. 583 00:32:36,800 --> 00:32:40,520 They get distribution fees from movie studios and distributors. 584 00:32:40,520 --> 00:32:44,040 Because they could be surfacing those, I've got subscription 585 00:32:44,040 --> 00:32:47,440 fees from the stream platforms, which again I said is not 586 00:32:47,440 --> 00:32:51,640 necessarily covering their cost. They've got advertising revenue 587 00:32:51,640 --> 00:32:54,040 from TV networks. And online platforms. 588 00:32:54,040 --> 00:32:58,280 So if they're SPN and someone's advertising Coke or whatever, 589 00:32:58,640 --> 00:33:00,760 brewing a game. Then Disney's getting that 590 00:33:00,760 --> 00:33:03,000 money. They have licensing fees from 591 00:33:03,400 --> 00:33:08,200 merchants and manufacturers and retailers, so Disney doesn't 592 00:33:08,200 --> 00:33:11,120 necessarily produce every. Single character. 593 00:33:11,120 --> 00:33:14,720 Or every, you know soft toy. Or every action figure. 594 00:33:14,920 --> 00:33:18,880 They license it to other providers who obviously have a 595 00:33:18,880 --> 00:33:21,440 strict rules. To keep the brand in place are 596 00:33:21,440 --> 00:33:24,480 they almost have to sign off and some of this equipment, but they 597 00:33:24,480 --> 00:33:26,120 get a lot of money through those sales. 598 00:33:26,960 --> 00:33:29,640 They've got ticket sales and admin fees from the themes and 599 00:33:29,640 --> 00:33:33,600 resorts, Then they've got the merchandise sales inside the 600 00:33:33,600 --> 00:33:35,880 theme parks. And resorts and stores, and 601 00:33:35,880 --> 00:33:37,960 that's really important. Because that's there's there's 602 00:33:37,960 --> 00:33:41,880 they make a large amount of money from from that and then 603 00:33:41,880 --> 00:33:43,480 they've got. Sponsorship and partnership 604 00:33:43,480 --> 00:33:45,400 deals with other brands and organizations. 605 00:33:45,400 --> 00:33:48,240 So, I don't know. Let's say Nike wanted to put 606 00:33:48,240 --> 00:33:52,520 out. Some shoes that had. 607 00:33:52,980 --> 00:33:56,260 Spider Man shoes or something that Disney would would be. 608 00:33:56,260 --> 00:33:59,140 Able to own that? Or Star Wars cups or something 609 00:33:59,340 --> 00:34:01,660 that are that a. Specific other company wanted to 610 00:34:01,660 --> 00:34:05,100 use their brand for they make all of the money through all the 611 00:34:05,540 --> 00:34:07,780 very. Complicated bunch of channels or 612 00:34:07,780 --> 00:34:10,340 how they hit their customers and then through all that. 613 00:34:10,340 --> 00:34:11,780 They've got lots of different revenue. 614 00:34:11,780 --> 00:34:13,659 Models through there. So it's quite a. 615 00:34:13,699 --> 00:34:15,719 It is a complicated company and they do a. 616 00:34:15,719 --> 00:34:17,960 Lot of things and not all of them are as profitable. 617 00:34:17,960 --> 00:34:19,600 As others. And then they've got to decide 618 00:34:19,800 --> 00:34:22,840 where they're going to invest and which resources. 619 00:34:22,840 --> 00:34:25,719 Are going to go where. So that's our kind of right hand 620 00:34:25,719 --> 00:34:28,320 side of our. Business Model Canvas, the Kind 621 00:34:28,320 --> 00:34:30,000 of Who are we offering? So what are we? 622 00:34:30,000 --> 00:34:31,520 Offering Where are we offering it? 623 00:34:32,960 --> 00:34:35,360 Why are we special? Why are people coming to us? 624 00:34:35,880 --> 00:34:38,199 And then you know the revenue streams we're getting from our. 625 00:34:38,199 --> 00:34:40,510 Customers to make all that happen. 626 00:34:40,510 --> 00:34:43,110 And the connection between, you know, the product we're selling 627 00:34:43,110 --> 00:34:46,190 and our customer, we've got some resources. 628 00:34:46,190 --> 00:34:50,270 We need to invest, so number one, and some of those are not 629 00:34:50,270 --> 00:34:53,989 just resources we need. To put in like expenses, like 630 00:34:53,989 --> 00:34:56,389 wages, but also the key resources. 631 00:34:56,389 --> 00:34:59,790 That make U.S. special. So if we were ever sold, one 632 00:34:59,870 --> 00:35:02,630 good example here is the intellectual property rights of 633 00:35:02,630 --> 00:35:04,430 Disney. So the characters, the stories, 634 00:35:04,430 --> 00:35:06,630 what they've? Purchased in terms of Lucas 635 00:35:06,630 --> 00:35:10,990 phone for example, the creative talent that they attract, that 636 00:35:10,990 --> 00:35:15,470 is a huge key resource. So they own. 637 00:35:15,630 --> 00:35:20,230 All of all of that and that in. Itself is probably with lots and 638 00:35:20,230 --> 00:35:21,790 lots of money in terms of assets. 639 00:35:22,550 --> 00:35:24,910 They do have a whole technology infrastructure. 640 00:35:24,910 --> 00:35:27,830 And platforms that support content creation and 641 00:35:27,830 --> 00:35:31,750 distribution and consumption, we it would be fascinating to know 642 00:35:31,750 --> 00:35:34,710 how that all works, and I don't think many of us necessarily 643 00:35:34,950 --> 00:35:36,870 know that apart from. Watching maybe some 644 00:35:36,870 --> 00:35:40,830 documentaries on like you know how they used to draw cartoons, 645 00:35:41,110 --> 00:35:42,710 but the equivalent in New Zealand we. 646 00:35:42,710 --> 00:35:45,790 Have Rita here, which is owned by Peter Jackson, who's 647 00:35:45,830 --> 00:35:47,790 obviously with Disney on a few films as well. 648 00:35:48,350 --> 00:35:51,470 And you know, I've had the privilege. 649 00:35:51,470 --> 00:35:53,670 Of kind of seeing behind the scenes on some of those puts and 650 00:35:53,670 --> 00:35:55,750 pieces and it's and it's, it's pretty amazing. 651 00:35:57,040 --> 00:36:00,040 They've got physical assets such as the theme parks, resorts, the 652 00:36:00,040 --> 00:36:03,960 studios, the equipment. They've kind of got this brand 653 00:36:04,000 --> 00:36:06,680 equity and reputation as of Disney so. 654 00:36:06,720 --> 00:36:09,200 If something has the word sponsored by Disney or presented 655 00:36:09,200 --> 00:36:12,080 by Disney, usually think usually think of that as a premium 656 00:36:12,080 --> 00:36:15,120 brand. And then it's of quality, so the 657 00:36:15,120 --> 00:36:18,080 brand itself. Is worth a lot in terms of just 658 00:36:18,080 --> 00:36:25,210 the name the key activities that they kind of actually a doing 659 00:36:25,410 --> 00:36:30,210 and you know Disney Limited is creating the high quality 660 00:36:30,210 --> 00:36:33,730 content across different. Media platforms, they do. 661 00:36:33,730 --> 00:36:39,130 They are more of a high quality than manufacturer. 662 00:36:39,130 --> 00:36:41,930 They're not looking. To just do a whole lot of B or C 663 00:36:41,930 --> 00:36:44,970 grand movies, even though some of the movies may not have been. 664 00:36:44,970 --> 00:36:47,290 Hit That's not really where they. 665 00:36:48,210 --> 00:36:51,010 So it's not content, it's not volume, it's usually quality of 666 00:36:51,010 --> 00:36:53,360 content. They do a hot. 667 00:36:53,360 --> 00:36:55,880 Basically, they're marketing a distribution company across 668 00:36:55,880 --> 00:36:57,040 global audiences. They do a. 669 00:36:57,080 --> 00:36:59,320 Large amount of that. I'm sure that's a large part of 670 00:36:59,320 --> 00:37:05,320 their workforces in that space. They've got a licensing and 671 00:37:05,320 --> 00:37:08,400 franchising content to generate additional revenue. 672 00:37:08,400 --> 00:37:10,000 So again, they wouldn't be necessarily. 673 00:37:10,000 --> 00:37:14,000 Producing every toy that from the Disney world's they would be 674 00:37:14,000 --> 00:37:17,880 franchising that out and managing that is the completely 675 00:37:17,880 --> 00:37:20,760 separate operation and expansion of their theme. 676 00:37:20,760 --> 00:37:24,900 Parks and Resorts and then they've also got, I guess, have 677 00:37:24,900 --> 00:37:28,540 to be developing and integrating new technologies to enhance 678 00:37:28,540 --> 00:37:30,260 customer experience. That's right. 679 00:37:30,260 --> 00:37:33,060 You know, as we've said before, they're trying to offer 680 00:37:33,060 --> 00:37:36,500 unparalleled storytelling. That entertains and forms and 681 00:37:36,780 --> 00:37:39,580 inspires people. Well, one way they would be 682 00:37:39,580 --> 00:37:41,220 doing. That is by making sure that 683 00:37:41,220 --> 00:37:42,900 they're at the forefront of technology. 684 00:37:42,900 --> 00:37:47,190 And when it comes to customer experience and all of those 685 00:37:47,190 --> 00:37:50,230 partners that make that all. There's obviously the movie 686 00:37:50,230 --> 00:37:52,230 studios themselves and distributors. 687 00:37:52,710 --> 00:37:55,110 There's the TV networks and streaming platforms. 688 00:37:55,430 --> 00:37:58,270 It's the people making the merchandise or the merchandise 689 00:37:58,270 --> 00:38:02,550 manufacturers and retailers. There's the theme park operators 690 00:38:02,550 --> 00:38:04,590 and travel agencies that make that all work. 691 00:38:05,430 --> 00:38:08,230 And I'm not actually sure you know how much of the Disney 692 00:38:08,230 --> 00:38:10,590 might own the park, but they may have. 693 00:38:10,590 --> 00:38:11,870 A separate company that operates it? 694 00:38:11,870 --> 00:38:13,990 I'm not sure. I assume not. 695 00:38:14,500 --> 00:38:16,300 And then they've got the technology providers and 696 00:38:16,300 --> 00:38:18,420 innovators who who are behind the. 697 00:38:18,420 --> 00:38:21,020 Scenes, you know, helping them create that world class content. 698 00:38:21,020 --> 00:38:27,540 So that's the key activities, the key partners and the kind of 699 00:38:28,380 --> 00:38:30,860 resources. That they need in order to 700 00:38:30,860 --> 00:38:34,740 produce the product or products in this case and when we talked 701 00:38:34,740 --> 00:38:38,620 about those key activities like creating high quality content 702 00:38:38,620 --> 00:38:40,180 across. Different media formats. 703 00:38:40,720 --> 00:38:41,720 You could break that down further. 704 00:38:41,720 --> 00:38:43,560 So that's the creation of content, the. 705 00:38:43,560 --> 00:38:46,280 Production of product, that's the highest level business 706 00:38:46,280 --> 00:38:48,880 process in that area. And then secondly, there's. 707 00:38:48,880 --> 00:38:51,560 Marketing and distribution. So that's its own division. 708 00:38:51,960 --> 00:38:55,720 You've got licensing and franchising and you've got 709 00:38:55,800 --> 00:38:59,080 operating, expanding, you know theme parks and then you've got 710 00:38:59,080 --> 00:39:01,840 developing and integrating. New technologies of finding new 711 00:39:01,840 --> 00:39:05,760 customer experience enhancing, that's more developing new 712 00:39:05,760 --> 00:39:08,280 products and so they are the highest level. 713 00:39:08,560 --> 00:39:11,880 Business processes and the company's so huge it will take a 714 00:39:11,880 --> 00:39:13,480 while. You might want to break them up 715 00:39:14,000 --> 00:39:16,400 into different. Divisions at that point, but you 716 00:39:16,400 --> 00:39:20,560 could now see if you had pain points or changes in market, 717 00:39:20,920 --> 00:39:23,720 political environment or. Partnerships or buying or 718 00:39:23,720 --> 00:39:27,360 selling deals or change of environment or social factors 719 00:39:27,720 --> 00:39:31,480 that you could overlay those strategic. 720 00:39:32,120 --> 00:39:35,600 Analysis outputs like strengths, weaknesses and opportunities and 721 00:39:35,600 --> 00:39:40,850 threats over though and and locate where we're in the key 722 00:39:41,130 --> 00:39:43,290 you know where those particular opportunities. 723 00:39:43,290 --> 00:39:48,370 Threats, Positives, Negatives. Or just risk issues, risks, or 724 00:39:49,090 --> 00:39:53,370 pieces of information and map. Them to those specific key areas 725 00:39:53,690 --> 00:39:56,650 and say that this will this area will be affected and so 726 00:39:56,650 --> 00:40:00,330 therefore there's an action or strategic objective or action 727 00:40:00,330 --> 00:40:03,170 plan that we need to put in place to mitigate that or to 728 00:40:03,410 --> 00:40:04,730 take. Advantage of that? 729 00:40:07,090 --> 00:40:11,050 With your key partners, activities and resources, you 730 00:40:11,050 --> 00:40:14,450 then need to think about your cost structure so. 731 00:40:14,450 --> 00:40:18,250 Disney Finally, Disney has a production cost of creating and 732 00:40:18,250 --> 00:40:20,890 generating the content across those media formats and must be 733 00:40:20,890 --> 00:40:22,250 quite. Smart at doing that. 734 00:40:22,690 --> 00:40:25,210 And, you know, trying to get, you know, one piece of content 735 00:40:25,210 --> 00:40:27,770 they've created across all these channels must you know that must 736 00:40:27,770 --> 00:40:30,370 be an efficiency gain and it's not efficient. 737 00:40:30,370 --> 00:40:33,010 That might be part of the strategic plan to make that more 738 00:40:34,820 --> 00:40:37,140 optimal. They've got the marketing and 739 00:40:37,140 --> 00:40:39,380 distribution cost of reaching customers. 740 00:40:39,940 --> 00:40:42,980 They've got the licensing and franchising cost of acquiring 741 00:40:42,980 --> 00:40:45,380 and granting rights to use Disney content. 742 00:40:46,660 --> 00:40:49,340 They've got the operating and maintenance cost of running the 743 00:40:49,340 --> 00:40:52,660 theme parks and the stores and all that, so that's expensive, 744 00:40:52,660 --> 00:40:54,180 so. Again, you know there would be 745 00:40:54,180 --> 00:40:56,380 a. You could do a separate business 746 00:40:56,380 --> 00:40:59,900 model canvas just for that area, the resource system. 747 00:41:00,410 --> 00:41:02,930 The research and development cost of exploring new 748 00:41:02,930 --> 00:41:06,810 technologies and then there will just be standardized costs. 749 00:41:06,810 --> 00:41:10,290 They're so massive that they will have a huge administration 750 00:41:10,290 --> 00:41:13,530 and overhead cost of just. Running the business and they 751 00:41:13,530 --> 00:41:16,450 may be you know, they may have admin and management costs in 752 00:41:16,450 --> 00:41:18,890 each division as well as a global division. 753 00:41:20,290 --> 00:41:23,250 So that gives you an idea of what a business model canvas 754 00:41:23,250 --> 00:41:25,930 would look like. For Disney, this is a. 755 00:41:25,930 --> 00:41:30,620 Really large example to show you the nth degree and your 756 00:41:31,060 --> 00:41:34,820 particular business model. Canvas for your business would 757 00:41:34,820 --> 00:41:38,860 be much I think. Probably a little down from this 758 00:41:39,380 --> 00:41:41,500 in terms of 1. Little you know division 759 00:41:41,940 --> 00:41:44,700 compared to a massive multi corporate like Disney. 760 00:41:45,060 --> 00:41:49,860 It gives you an idea. OK, so this is how you you know. 761 00:41:49,900 --> 00:41:52,260 Please Google Business Model Canvas. 762 00:41:52,900 --> 00:41:56,760 Apply it to your business. Or to a theoretical business to 763 00:41:56,760 --> 00:41:59,320 understand this because this helps link what we've just. 764 00:41:59,320 --> 00:42:00,920 Already done in the previous weeks. 765 00:42:01,440 --> 00:42:05,680 For more of a real bringing it into the business, look at a 766 00:42:05,720 --> 00:42:09,200 lean canvas as well. It is different to this I. 767 00:42:09,200 --> 00:42:12,320 Will cover that in the next week's episode. 768 00:42:12,840 --> 00:42:14,720 This is. That's when you're focusing on 769 00:42:14,720 --> 00:42:17,160 startup. There are a few differences, but 770 00:42:17,160 --> 00:42:20,320 it uses the same layout which is useful, and the sections are 771 00:42:20,320 --> 00:42:23,330 slightly different. Now that we've got this, we can 772 00:42:23,330 --> 00:42:25,930 start looking at our. Highest level business 773 00:42:25,930 --> 00:42:29,650 capabilities and start to look at some actions, some strategic 774 00:42:29,650 --> 00:42:32,690 objectives that we need to put into our strategy. 775 00:42:33,410 --> 00:42:35,770 And then we'll look at, you know, the activities that come 776 00:42:35,770 --> 00:42:38,970 after that in the coming weeks. You're starting to get pretty 777 00:42:38,970 --> 00:42:42,290 good at the strategic planning. I hope you enjoy and enjoyed 778 00:42:42,290 --> 00:42:44,490 this episode and I'll see you next time.