The Product Roadmap is what distinguishes market leaders from utter failures. It is the foundation of every business, giving specific instructions on how to thrive in the sector, unveil resources, raise finances and stay ahead of the competition. No matter how amazing your concept is, it is likely to fail if it is not well implemented.
Writing a comprehensive product roadmap is sometimes a stumbling barrier for new businesses. Even the most eager computer aficionados are baffled by the prospect of developing a 200-page paper from the ground up. If you doubt where to begin, check out the Business Model Canvas. It is widely recognized as one of the most popular and successful methods for pitching your startup to investors, raising funding, developing value propositions, and identifying critical resources for the business. In this blog, you will understand how to Build a Product Roadmap Based on a Business Model Canvas and how to make the most of it.
A business model is a blueprint that describes how a company plans to create money. It defines who your consumer base is, how you provide value to them and the financing information. The business canvas model allows you to specify various components on a single page.
The business model canvas is a strategic tool for management that enables you to examine and evaluate your business idea or vision. It is a one-page document with nine boxes representing several crucial components of a firm.
The right corner of the canvas is focused on the client or the market, whereas the left corner is concerned with the business. In the middle, you will find value propositions that reflect the value exchange between the company and its customers.
This is the first and most critical step is determining your product’s key offer. List the customer issues your product is attempting to answer, the customer requirements and desires the product can satisfy, and the value it brings to your users in terms of features, cost, or simplicity of use to help you determine your product’s value proposition.
This block assists in determining the target consumers to whom the value offer will be most appealing, i.e., the important buyers. To guarantee that the product is delivering value for the chosen segment, assess the product-market fit Key performance metrics in terms of product uptake, revenues, and shorter sales cycles.
After identifying distinct customer groupings, it is critical to consider effectively retaining and increasing these customers by utilizing existing relationships. Having distinct interaction methods for each segment type based on their requirements might be beneficial. For example, giving personal support to larger companies while offering an automated service to people.
This block describes all of the communication channels that have been put in place to reach the intended audience. Depending on their preferences, each consumer group may require different approaches. It is beneficial to find both high-performing and cost-effective networks.
Key partners comprise everyone in the value chain who collaborates to supply the product, such as manufacturers, suppliers, distributors, and business alliances. It is also beneficial to understand which partners do important tasks and resources.
This block describes all of the major processes and actions necessary to generate, manage, deliver, and sell the product.
This block identifies the key employees necessary to produce the product and the resources required to build and manage client connections, distribution networks, and sources of income.
This block outlines the variable and fixed costs of conducting business or offering the value proposition, and it assists in determining the most costly activities and resources.
The last section specifies all streams of revenue generated by the product, such as subscription charges, advertising revenue, product sales, and, depending on the business strategy and kind of product/service delivered, licensing or lease fees.
McDonald’s Key Partners: Uber Eats and Door dash are two delivery services.
McDonald’s Primary Activities: These include payment processing, distribution, innovation and implementation, and product sales.
McDonald’s Value Proposition:
For customers: fast and economical meals, consistent quality service.
Franchisees: have achieved more profitability than the brand.
McDonald’s Customer Relationships: Customer, community, and social media services.
Buyers: it is for those who want to buy things such as fries, burgers, and more.
Franchisees: Restaurants seeking to maximize profits by using McDonald’s name.
It includes salaries, marketing, payment processing, and administration and operations.
Rent, royalties, and licensing fees.
There are several reasons to consider the business model canvas. It serves as a purpose statement for the product roadmap and gives a useful reference point to ensure that you consistently adhere to the plan and meet all of the strategic objectives outlined in the product roadmap.
Simplified and Faster Roadmaps
The canvas method usually takes a few hours. Thus, rather than describing every single minute detail about the product ahead of time, you can only state the highlights and then begin converting the canvas to the product roadmap.
Identify Any Gaps
Are there any attractive market opportunities? Fill it with an innovative product or service that will capture your customers’ attention. The business model canvas assists in identifying new opportunities that can be veiled from your competitors’ view.
A major drawback of the old way of documenting business models was that it became almost inaccurate as soon as the creator had finished drafting it. These things can be appropriate for a while, but not for long. The old method is lengthy, intricate, and mostly bogus by the time you complete it.
But only because you can create the canvas so swiftly, it becomes far more precise while representing your strategic intentions and existing organizational state. And if anything does change, it will be far easier to modify than a long and thorough strategy.
Flexibility to Pivot As Needed
Assume something occurs throughout the development process that requires you to re-prioritize or pivot your product.
In that scenario, changing this brief, the high-level document will be a lot easier than updating a long, intriguing market requirements document or some business strategy to take apart and update.
You will always be able to catch any plans that need to be updated fast if you use this one-page business model canvas to reference the business strategy.
You will need to adjust if the company’s goals change or new data emerges that necessitates a new approach to what you were doing previously.
The business model canvas approach is so adaptable that it can be applied to any type of business. Yet, it is appealing to businesses that sell goods and focus on online business.
We’ll go through the essential aspects of a business canvas for a hypothetical e-commerce business selling sports apparel.
Key Activities: The brand must digitally promote itself as one of the leading manufacturers in its industry. To reach that plan, it must enhance its Google ranking, diversify its presence on multiple online marketplaces, rapidly expand its inventory to remain competitive, and improve customer happiness. Its primary task will be to deploy a PIM system to automate catalog management, improve product material, and stand out across all platforms and for customers.
Key Resources: To implement this e-commerce strategy, the company must invest in the appropriate management tools. That software may necessitate a competent ERP or CMS system ( like Shopify) in addition to the PIM solution. There should also be professional employees who have been trained on these systems.
Key Partnerships: The manufacturer must determine which distribution and retail partners are most interested in its products to reach the greatest geographical scope and number of clients. Because these are sports-related apparel, the business will seek channel partners with a wide warehouse system in the market segment and who target significant retail chains.
Value Proposition: To succeed in its business model, this tennis brand must provide product quality as well as a solid, reputable brand image. It will need to develop its public strategy and ensure that the user experience is consistent from the opening post or the online platform to the final transaction.
Customer Segments: Assume the company has determined that the national market is of interest, although there may have been researching that indicates which autonomous cities and towns have the most training academies. The brand may target those groups, as well as clients of the gender, age, and area who are most interested in sports apparel.
Customer Relationships: Although this company does not sell directly to the end user, it may provide online assistance, question channels, and resources to build a community. Motivational tutorials and movies, for example, alongside prominent national sports figures or academies.
Channels: Because the firm is concentrating on an eCommerce approach, it will undoubtedly conclude that it requires an online store. It may also need platforms like Amazon and purchases via social media platforms such as Instagram. The brand will research which marketing channels are most popular among its client categories.
Cost Structure: The business examines the expenses associated with adopting a technological structure matched with the development of an omnichannel eCommerce strategy. It also considers if it would need to acquire new, specialist staff or whether it will be more cost-effective to educate its team about new tools.
Revenue Streams: The brand expects to earn from all online sales channels, but it can predict which ones will be more successful and, Thus, where it should devote the most of its efforts. If there is more traffic to sports apparel on marketplaces than on social networks, chances are most income stream will come from placing its products with Google rather than other channels.
Every business can benefit from the business model canvas. It assists in the planning, development, and execution of the product roadmap. In an ever-changing market, it is necessary to establish a business model canvas.
We hope now you’re well-versed in this domain of business model canvas. If not, you need to check out UNext’s Integrated Business Analytics Course in association with IIM Indore, which will surely brush up your concepts concisely and help you do a good job.