Lean Canvas
Short Tip: A Canvas for products that are seen as independent business units (e.g., startups).
What is it?
It is a method adapted by Ash Maurya based on the Business Model Canvas, especially for Lean Startups. It combines in a single page relevant information to structure a product based on the perception of a problem and the search for a unique value proposition.
It is commonly used for innovative products that will compete in a market.
Why use it?
Many innovative products emerge as business units practically independent from the organization, with their own revenues and costs, in addition to a specific value proposition. In these cases, the Lean Canvas allows structuring a quick and effective business plan where the main hypotheses are clearly established and communicated to stakeholders at different levels.
How to use it?
The Canvas should be filled by the team. There is a recommended sequence indicated by the numbers on the Canvas. Based on the new information filled, it is expected, however, some rediscussion on previous fields.
It is suggested the following steps:
- Start from the previously selected idea to fill in the “Customer Segment” ①, “Problem” ②, its most relevant root causes ③ and “Solution” ④ quadrants based on previous discussions;
- Capture the alternatives currently adopted by the users ⑤;
- Identify the solution’s unique Value Proposition ⑥. Be as objective as possible;
- When you identify the value proposition, indicate how the product could be understood by the target audience in a simple way, and fill in the High-Level Concept ⑦;
- For this solution and value proposition, identity the users that will most likely adopt it first ⑧;
- Analyze the product’s competitive advantage, which will prevent its competitors from quickly creating or buying a similar product (“Unfair Advantages” section) ⑨;
- Then detail the customer interaction channels for the product (“Channels” section ⑩) in addition to the metrics for measuring the business (“Key Metrics” ⑪);
- Finally, assess the associated costs (fixed and variable) ⑫ and the potential sources of revenue (non-recurring or recurring) ⑬.
There may be cases where the Canvas addresses a solution in a very different way for two different target audiences (e.g., Students and Student’s Parents). If that happens, you can use post-its or markers of different colors or, if the Canvas loses clarity, use two Canvas, one for each specific audience.