13 Business Model

🎯 Session Objectives

• Transform a technical solution into a viable business proposition.

• Understand the Lean Canvas methodology tailored for Technology-Based Companies (EBT).

• Define the B2B value proposition and target customers.

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🧠 Theoretical Content

1. The Business of Technology

A great invention is not an innovation until it reaches the market and generates value (financial or social). As Industrial Engineers, you must package the technology within a profitable Business Model.

2. The Lean Canvas

The Lean Canvas is an adaptation of the Business Model Canvas designed specifically for startups and high-uncertainty technology projects.

3. B2B vs. B2C Technology Pricing

• B2C (Business to Consumer): High volume, low margin (e.g., a $2 app on the App Store).

• B2B (Business to Business): Low volume, high margin (e.g., a $10,000 industrial software license). As most industrial engineering technology projects solve corporate problems, the B2B model is preferred.

Common Tech Revenue Models:

• SaaS (Software as a Service): Monthly subscription for cloud access.

• Asset Sale: Selling the physical Arduino/hardware unit.

• RaaS (Robotics as a Service): Leasing the hardware while charging a monthly fee for the data analysis.

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🛠️ Class Activity: Lean Canvas Workshop

Goal: Draft the business foundation for your technology.

1

Draw the Canvas

Use a digital whiteboard (Miro/Mural) or a physical A3 paper.

2

Fill the 9 Blocks

Focus heavily on the Problem and the Customer Segments. (Hint: "Everyone" is not a customer segment. "Mid-sized logistics companies in Colombia" is a segment).

3

Define Unfair Advantage

What prevents a massive company from copying your Python/Arduino code tomorrow? (This links back to your Week 4 IP Strategy).

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📚 Assignments

• Finalize Lean Canvas: Complete the digital version of your Lean Canvas.

• Pricing Hypothesis: Brainstorm how much you will charge for your technology (Asset sale vs. SaaS) for next week's valuation class.