Lean Canvas Business Model- Lean Canvas Word Template Example

Lean Canvas Business Model, Lean Canvas Word Template & Example. Lean Canvas Model. Also, Lean Canvas Word Template, Lean Canvas Example, Lean Canvas Elements, Lean Business Model.

Lean Canvas Model

The Lean Canvas model refers to a business plan template outlining nine essential elements of the new business. In 2010, Ash Maurya developed the one-page business template and termed it the Lean Canvas Model. The lean canvas model assists entrepreneurship in pre-assume the nine essential critical ideas related to the Business.

Lean Canvas is adapted from Business Model Canvas introduced by Alex Osterwalder in 2005. Therefore, the lean canvas model is also known as the Lean Canvas Business Model.  The alternative names of the Lean Canvas are the Lean Canvas Model, Lean Business Canvas, Lean Business Model, Lean Startup Canvas, and Lean Canvas Online.

Lean Canvas Business Model

Lean canvas business model refers to a one-page business plan template describing nine key idea elements related to the market: problem, solution, unique value proposition, unfair advantage, customer segments, key metrics, channels, cost structure, and revenue structure. However, the additional elements of the lean canvas model are existing alternatives, high-level concepts, and early adopters. It replaces detailed business plans with a concise and single-page business template. 

History of the Lean Business Model

Lean Canvas Business Model is adopted from Business Model Canvas and Business Model Canvas was adapted from Business Model Ontology. In 2004, Alex Osterwalder introduced Business Model Ontology for digital business. After one year, In 2005, he introduced the Business Model Canvas based on the previous theory “Business Model Ontology.” In 2010, Ash Maurya introduced the Lean Canvas model for entrepreneurship to start a new business with concise information regarding the business, including problem, solution,  target audiences, competitors, and so more.

Lean Canvas Example – Word File Download Link

Lean Canvas Word Template

Lean Canvas Business Model- Lean Canvas Word Template Example
Figure 1: Lean Model Canvas
How to Fill Out a Lean Canvas
Lean Canvas Business Model- Lean Canvas Word Template Example
Figure 2: Instruction To Fill out Lean Model Canvas

lean canvas business model example

BambooS- An Eco-Friendly Company in Malaysia

BambooS is an environment-friendly company in Malaysia that produces bamboo straws. Nowadays, restaurants do not provide plastic straws due to polluting the ocean extremely. So, the BambooS has come up with straw made by Bamboo. These products are cheap, portable, reusable, and decomposable. The government of many countries, including Malaysia, has given directives to reduce the use of plastic. Therefore, many restaurants, including McDonald’s, KFC, PizzaHut, and Nando’s, do not provide plastic straws. It is really difficult to drink juice without a straw; hence BambooS has started to sell portable and reuseable bamboo straw.

It is an example of a Lean Canvas template filled out by BambooS, an eco-friendly company in Malaysia. The student at University Putra Malaysia students completes these lean startups for assignment purposes. However, entrepreneurship also follows the same instructions to complete the lean canvas template. Hopefully, it will assist you in obtaining ideas on how to fill out a lean canvas.

Lean Canvas Business Model- Lean Canvas Word Template Example

The Lean Canvas example will help you to know how to fill the lean canvas word template. The author has attached a blank and filled lean canvas word template for entrepreneurship. It will definitely assist the new businessmen to start new business wisely.

The 9 Elements of the Lean Canvas Business Model are:
  1. Problem
  2. Solution
  3. Unique Value Proposition
  4. Unfair Advantage
  5. Customer Segments
  6. Key Metrics
  7. Channels
  8. Cost Structure
  9. Revenue Structure
1. Problem

Firstly, as an entrepreneur, you have to identify some existing problems that you want to solve with the new products and services. It is very crucial to find out at least three essential problems that your product and service will solve completely. Therefore, the entrepreneur needs to list down three problems under the problem section in the lean canvas.

For example, according to BambooS’ lean canvas, the three problems are environmental pollution, one-time use, and restaurants do not provide plastic straws now. So, BambooS is a new company that has outlined these three problems.

2.Solution

The solution is the goal of your business. So, you must have to outline the solution to the problems mentioned in the problem section. The solutions have to be concise, significant, and capable enough to resolve the problems.

For example, according to figure 3, the three solutions are eco-friendly products, reusable and portable. These three proposed solutions are sufficient to resolve the problems.

3. Unique Value Proposition

A unique value proportion refers to a commitment of value that the product or service will definitely provide. It is the fundamental reason for what the customer will buy the products or services. So, you have to differentiate your product or services from others to grab customer’s attention. The unique value proposition also represents the company tagline somewhat relevant to the mission and vision.

For example, the unique value proposition of the BambooS products is bamboo straws- reusable and eco-friendly products, customized products- different sizes and made by natural material. The tagline is Grab me with zero pollution to save the planet.

4. Unfair Advantage

Unfair advantage denotes something of the company that competitors will not be able to replicate. It is an exceptional quality of the product or services that makes the company distinguished. However, it would help if you had to remember that your unfair advantages are sustainable. 

For example, BambooS’ company’s unfair advantages are the new eco-friendly product in the market, unique packaging with pouch bag made by jute, and providing engraved service. These unfair advantages are sustainable and exceptional that no company offers now in Malaysia. 

5. Customer Segments

The problems and customer segments are interconnected issues; because the customers create problems. So, the problem can not endure without customers.  Additionally, customers are the consumer of your products and services. Therefore, you have to analyze your target customer before identifying the problems. Some questions related to the customers should be kept in mind to segment customers, such as where your customer lives, the economic conditions, the demographic factors, and so more. Customer segmentation is also known as demographic, geographic, psychographic market segmentation.

For example, the BambooS authority has chosen the University Putra Malaysia to target audiences. Additionally, they have included Cafe and Restaurant at UPM, Facebook and Instagram Users, and eCommerce Marketplaces (Lazada & Shopee Users) to the customer segment section. 

6. Key Metrics

Key metric refers to the factors that the company owner measure to run the business properly. The key metric drives the performance of the business, so the owner must need to focus on these factors to keep the record. Actually, key metrics are the statistical data related to market share, consumers, number of new users, revenue per customer, and so more. For example, how many followers of the social media pages and the monthly sales revenue. Sometimes, management invests in marketing based on the key metrics data. Every company invests to get

For example, the three key metrics of the BambooS company are active community growth rate at UPM and bamboo straw users, Social media page followers and monthly selling rate, and customer’s positive feedback vs. sales revenue. These data will definitely help the authority to adopt a strategic marketing policy to increase sales revenue. If the company can sell the product properly on social media platforms compared to offline sales, they definitely focus on increasing followers on social media pages to earn more. 

7. Channels

Channels are the media in which management reaches the customers. The channel plays an essential media in conducting a marketing campaign.  There are many types of channels or media that allow you to reach customers as well as regulate campaigns. The two most important types of communication channels are offline and online channels. The offline channels are face-to-face marketing, placard, banner, festoon, Newspaper, TV, and radio.

On the other hand, online media are social media platforms, e-commerce sites, and website traffic. Usually, the market analyzer researches the customer’s background to decide which channels they want to use to conduct a marketing campaign. Nowadays, most companies utilize e-commerce and social media channels to conduct digital marketing. The covid-19 pandemic has changed people’s lifestyles, business patterns, and education procedures. Nowadays, many organizations are using online meeting platforms to conduct organizational meetings as well as regulate business properly.

For example, the BambooS’ authority has chosen Facebook, Instagram, LinkedIn, company official website, Lazada, Shopee, and  Word-of-mouth marketing- WOM for the UPM community.  

8. Cost Structure

Cost structure refers to the costs of launching the new business, for example, equipment acquisition costs, marketing costs, operational costs, and website domain and hosting costs. According to a statistic report, around 90 percent of new companies fail to operate the business due to not considering the total cost of starting and driving the business. Therefore, the owner needs to launch a new business after arranging the full payment.

For example, the BambooS’ authority outlines the sectors where they have to invest money to launch business initially. The list is following:

  • Purchasing Bamboo, Pouches, Coconut fiber cleaning brush, and Paper box.
  • Delivery fee.
  • 3D Printing service cost.
  • Website design and online Paid-advertising.
9. Revenue Structure

Revenue is the key performance indicator of a company. The factors of the company performance and the revenue has a positive relationship that influences each other. Revenue structure is also known as a revenue stream. You have to assess and set the price of the product before releasing it to the market. Many companies make the mistake that set a meager price when launching the product in the market.

The minimum price may bring an adverse impact on business. It damages the future probabilities of your business. Firstly, you might lose a customer when increasing your product price later. The price module must be tested several times through multiple ways to catch the market by the products. The revenue structure depends on the types of business, whether you want to sell products or services. It also depends on whether the company is online platforms based or physical market-based.

For example, BambooS includes the factors to the revenue model, such as physical product selling, launching price is not so much low or high, and online selling price lower than direct selling.

Difference Between Lean Canvas and Business Model Canvas

Lean Canvas Business Model- Lean Canvas Word Template Example

Firstly, Ash Maurya developed the Lean Canvas Model in 2010, whereas Alex Osterwalder introduced the Business Model canvas in 2005.

Secondly, the nine basic elements of the lean canvas model are the problem, solution, unique value proposition, unfair advantage, customer segments, key metrics, channels, cost structure, and revenue structure. On the other hand, the nine fundamental elements of the Business model canvas are customer segments, value propositions, channels, customer relationships, revenue streams, key resources, key activities, key partnerships, and cost structure.

Additionally, the Lean canvas model is suitable for new entrepreneurship who want to start a new business and startup. In contrast, Business Model Canvas is suitable for an existing business.

Usually, entrepreneurship, founder, and investor of the company apply the lean canvas model. However, the senior manager, marketing manager, and operation manager utilize the business model canvas to yield positive outcomes from the business.

Moreover, the purpose of applying lean canvas is to identify the problem and solution to fit new entrants. On the other hand, the objective of using the Business model canvas is to understand the existing market and identify opportunities.

Furthermore, the basis of the lean canvas model indicates testing ideas, assessing the assumption, and focusing on the value proposition. In contrast, the basis of the Business model canvas shows advance and progressive innovation.

Lean Canvas Versus Business Model Canvas

Lean Canvas Business Model, Lean Canvas Word Template & Example

Lean Model Canvas Example For Google

A sample of a lean model canvas of Google has been presented here for a better understanding of how to fill out the template.

Lean Canvas Business Model, Lean Canvas Word Template & Example

Lean Model Canvas Example For YouTube

Lean Canvas Business Model, Lean Canvas Word Template & Example

Netflix Organizational Change- Organizational Change Examples

Netflix Organizational Change, Organizational Management Change Examples. Netflix change management case study and organizational change examples. Also, Netflix Business Model Change and How Netflix Handles the Forces of Organizational Change.

Netflix

Netflix is an online video streaming platform that allows users to watch movies, TV shows, documentaries online. The user can watch all these videos through a subscription service. Netflix adds new movies, series, and TV shows regularly to the chart so that subscribers can watch them instantly. It has managed to secure its position within the top 50 websites, following Google, YouTube, Yahoo, Facebook, Twitter, etc. So, Netflix is the most popular video streaming site or web portal in the world now.

What is Organizational Change?

Organizational change means the action of business modification in which a company changes its business tools, such as policy, strategy, operation, structure, infrastructure, and culture. The most prevalent organizational change is technological change that enables the company to cope with the digital era. Therefore,  many organization has embraced technological changes to adjust with the digital age. Organizational change assists the company in replacing old systems with new strategies to achieve competitive advantages in the same marketplace.

Organizational Change Examples

Netflix is one of the best examples of organizational change. It accepts the changes to cope with the new context. Netflix organizational change is a real-life example of Lewin’s change model. Every organizational change has few stages of completing the entire process. The most significant factors are technology, culture, and environment that stimulate an organization to accept the change. Netflix Organizational Change has replaced the old procedures with new strategies to adjust to the current situation. So, Netflix is the most prevalent example of organizational change. Additionally, Indian software companies Wipro, Infosys, Samsung, and Amazon accept organizational change to achieve a competitive advantage.

Netflix Change Management Case Study

The Netflix change management case study includes the organizational change at Netflix. Additionally, It describes the history of the Netflix business model.

Netflix Organizational Change

Technology has changed the world in many ways, including education, business, sports, entertainment, etc. Many worldwide renowned companies have been closed due to new technology such as computers, smartphones, and social media. Some have managed to cope with the force of change by applying sophisticated strategies and accepting organizational change.

Netflix is one of the best examples that had changed its business model and strategy to survive. It has handled the force of organizational change to achieve a competitive advantage. Hence, it has become one of the most popular video streaming platforms for netizens.

Netflix was founded in 1997 in California, USA. However, In 1998, Netflix started its business by selling DVDs and rentals by mail.  The product was a rent-by-mail DVD, and the payment system was the pay-per-rental model.

The next year, in 1999, Netflix launched its new subscription feature for customers to rent DVDs at a monthly rate. This service allowed the subscribers to enjoy unlimited DVD rental with monthly payment. So, the change was the pay-for-use model into a monthly subscription model. The subscribers choose the movie and video titles from Netflix’s official website. After that, the distributors send the shows in the form of DVDs to the subscribers.

In 2007, Netflix introduced a new video streaming feature for films and television series. The proper utilizing of the force of change has helped to achieve success. However, it is believed that Netflix is one of the most popular platforms for watching new movies, drama series, TV shows, and so more. They have achieved competitive advantages for adopting new features as per audience demand.

Netflix Organizational Change- Netflix change management case study
Netflix Organizational Change- Netflix change management case study
Additional Changes

In 2011, Netflix introduced its mobile apps and ios service for smartphone users. Smartphone users can download the apps free from Google as well as the Apple play store.

Recently, Netflix changed from HTTP to HTTPS encryption to ensure the viewer’s privacy (Reed & Kranch, 2017).

In 2016, Netflix launched its offline playback feature to cache the contents. Therefore, Netflix mobile apps users can watch high-quality cache content without an internet connection.

In 2018, Netflix added “the Skip Intro” option for customers to avoid intros of the shows. So, the users can skip the video if they want.

In 2021, Netflix started alerting customers for sharing their account IDs and passwords with others.

Organizational Change at Netflix
Organizational Change at Netflix

History of  Netflix

Netflix has become one of the most famous American production companies all over the world. It was established in 1997 by Marc Randolph and Reed Hastings in California. In 1998, Netflix introduced its official website with 925 items available to rent for pay per month approach and only 35 employees.

Netflix launched its operation with the first and largest online DVD rental store. Since 2012, Netflix is producing and distributing its original content, including film and television series that entertain many viewers. This variety of contents has been stored at the online library for viewing by the subscribers. Since 2016, it is providing services in around 190 countries. This company has established its office globally, including Brazil, the Netherlands, France, the United Kingdom, Japan, India, and South Korea. In 2020, it was estimated that Netflix owns more than 195 million subscribers globally involved in paying a monthly payment.

However, Netflix is available worldwide except in China, Syria, and North Korea. According to a report in 2020, Netflix has achieved $1.2 billion operating income for its outstanding performance with sophisticated features.

Netflix Business Model Change Timeline
First-Change in 1999
(Pay-For-Use Model Into a Subscription Model)

Netflix made two major changes since its launch. At first, it began the subscription option in 1999 to store DVD rental. This change allows consumers to rent unlimited DVD rental without late fees. It was the first change in the business model in the history of Netflix.

Second-Change in 2007
(Streaming Service)

Later, in 2007, Netflix made its second change by launching an online video streaming service. Consumers have accepted this change. It is believed that the launching of video streaming services has become the prime business pillar of income.

Purpose of Netflix Organizational Change

According to Corfield (2017), Netflix is becoming famous day by day for its easy accessibility quality and sophisticated features. After all, the new technology adoption and adaption is an inevitable approach to exceed customer demand. In the 21st century, people do not want to allocate extra time to go to the cinema hall. People used to go to the cinema hall to watch new movies before introducing watching movies at home on Netflix. New technology, including a computer, laptop, and smartphone, entertain people easily through internet service. In addition, the social media revolution changed the way we communicate with each other. It has become a great platform for sharing user-generated content, including photos and videos. Now, many citizen journalists are practicing democratic journalism because of the social media revolution.

Most people globally use social media in many perspectives, such as education, entertainment, and marketing. Netflix’s authority had perceived the upcoming market demand. Therefore, they have changed the business model to watch movies and television series on computers and smartphones. The management of Netflix realized that consumers do not like to store video, so they change the business model. Additionally, Netflix is always aware of the approaches of competitors. Blockbuster is a crucial Netflix competitor; hence, they added a new feature to become distinguished from competitors. The reason for changing the business model of Netflix was appropriate and effective to bring success.

How Netflix Handle the Organizational Change Forces

Organizational change refers to the adjustment and transformation of the way a company operates. The company brings a minor or significant change to improve productivity and cope with the new context. There are two types of forces of change in a company such as external forces and internal forces.

The element of the external forces is technological change, globalization, social and political change, and managing ethical behaviors. For example, technological change and globalization are the primary external forces that compel Netflix to change the feature. New technology changes people’s expectations and behaviors; therefore, changing the company product or service’s features, tools, and patterns is essential. Netflix handled the forces of change effectively to bring success and prosperity to the company. Apart from that, internal forces influence the organization to change, such as changing managerial personnel, work climate, effectiveness, employee expectations, and crisis. For example, Netflix realized that watching the movie at home would reduce the entertainment budget and time; therefore, they accepted the organizational change.

Conclusion and Takeaway

Netflix started its journey as an ordinary company, but it has achieved a competitive advantage by changing its business model to fulfill customer demand. The authority of the company changed its feature to cope with new technology. It has made two changes in 1999 and 2007. However, the video streaming service brought huge popularity and income for the company that launched in 2007. Based on the discussion, the author has determined some takeaways that can be a key point for any company. Firstly, it is essential to change the company feature to fulfill customers’ expectations.

Additionally, digital adaption and adoption need to be accepted for both employee and customer’s gratification. Finally, sophisticated features and tools have to be added to the company for better function, such as Netflix launched its online video streaming feature in 2007. “The measure of intelligence is the ability to change” -Albert Einstein

Netflix has followed the blue ocean strategy to achieve a competitive advantage. Blue ocean strategy refers to creating a new business market; whereas, red ocean strategy refers to contesting to beat the opponent companies in the same market. Blue ocean strategy introduced a new feature to attract the customer that creates a unique and uncontested marketplace. Finally, Netflix has accepted the blue ocean strategy and become one of the successful companies around the world.

References
Corfield, J. (2017). Network vs. Netflix: a comparative content analysis of demographics across prime-time television and Netflix Original Programming.

Reed, A., & Kranch, M. (2017, March). Identifying HTTPS-protected Netflix videos in real-time. In Proceedings of the Seventh ACM on Conference on Data and Application Security and Privacy (pp. 361-368).

Citation for this Article (APA 7th Edition)
Kobiruzzaman, M. M. (2021, January 30). Netflix Organizational Change: Organizational Management Change Examples. Educational Website For Online Learning. https://newsmoor.com/netflix-organizational-change-organizational-management-change-examples/