The Green Thing – Engage Resources

The Green Thing

Business Models, Idea Generation

Green_Thing-Photo_Torgeir-Aadland-scaled

By Torgeir Aadland, Associate Professor, NTNU

About the exercise

This is a discussion-based exercise designed to introduce students to business models and business model design. The exercise promotes learning through several examples, and the discussion-based teaching enables the students to follow along. It also includes an open-ended idea creation brainstorm, and the opportunity to let students make a “quick and dirty” assessment of their ideas. The exercise could either be the students’ first encounter with Business Models and the Osterwalder Business Model Canvas (BMC), or as a follow-up after an introductory lecture on business models.
The BMC is a valuable and common tool for entrepreneurs to define a business model. However, it is not self-explanatory for students with little entrepreneurial experience – they could get confused when trying to understand and use the canvas on their own. This exercise puts the educator in control to prevent misconceptions while students define different aspects of the business model.

Learning Objectives

Understand and strategize on important elements of a business and its business model
Understanding the BMC, and using it in an early-stage idea process
Using the Business Model Canvas (BMC) as a tool to evaluate an idea at an early stage, involving important aspects of the potential business
Idea creation and brainstorming

Usage suggestions

The exercise fits multidisciplinary students at any level of higher education – one could even use it in shorter “hackathons” or projects. It could be used to help students understand the concept of business models at an early stage – for instance before or just after an introduction to business models and the BMC. The exercise would work best with classes of 20-40 students, to have time to include everyone in the discussion.
Digital version: You can do this exercise digitally, using breakout rooms. However, this might require more attention to include all students in the discussion.

Materials list and physical space

Materials:
– A green object or picture of a green object. The image could be of an actual product – like the downloadable image below, or an object with an abstract shape or simple shape.
– A blackboard, flipboard or similar to list ideas
– A printed or digital version of the business model canvas

Physical space:
Classroom with group setup, for groups of 3-5 students.

FREE TO USE PHOTO OF GREEN OBJECT – GREEN_THING.JPG

Pre-work required by students

This depends on how you structure the topic – the exercise is designed to be the students’ first encounter with business models as a concept and the BMC as a strategic tool. However, you could also choose to through an introduction in a lecture before the exercise, or have your students read up on the basics of business models and the Business Model Canvas in advance.

Theoretical Foundations

Osterwalder, A., Pigneur, Y. (2010) Business model generation: a handbook for visionaries, game changers, and challengers. John Wiley and Sons, Inc., Hoboken, New Jersey.
Morris, M., Schindehutte, M., & Allen, J. (2005). The entrepreneur’s business model: toward a unified perspective.Journal of business research, 58(6), 726-735.

Time Plan

Step 1: Idea generation for the Green Thing (5-10 minutes):
The educator shows the student groups a “Green object”, using an image or physical object. The students are asked to come up with ideas for products or product-service combinations for this object, which is green and can make sounds.

Step 2: The classroom idea list (10 – 15 minutes, plenary):
The educator asks the students to share some of the ideas that came up in the group, listing the ideas on a blackboard.

Step 3: Plenary Business Model discussion (45-60 minutes, plenary):
Students and the educator discuss and outline a potential business model around one idea from each group, using a printed or digital version of the Business Model Canvas (link). Each group are asked to select one of their ideas, and the educator ask questions related to different parts of the canvas in plenary with one group at a time, relating to their idea. The aim is to discuss through important elements of the potential business, and lastly have groups evaluate whether the idea has merit, based on the developed business model. The Educator drives the discussion forward, asking specific questions related to each part of the Business Model Canvas:

Who would use the product/service, and who would pay for it? (users/customers)
What could be the value proposition of the product/service?
Channels: Manufacturing, distribution, sales, marketing
How would we establish relationships with potential customers?
What resources, partners and activities would we need to deliver the product / service?
What would be the important revenue streams and cost factors of the potential business? – Could this be a viable business idea? Why / why not?

Key Takeaways

Students learn more about important aspects of business models, and how to use the Business Model Canvas at an early stage. They start seeing different aspects of a business, and the relationship between them. The exercise also lets students practice their ability to develop creative ideas, and use business model aspects as a way to give an early-stage assessment of the idea.

Related resources

Engage Talk – Entrepreneurship and circular economy

Engage Talk – Entrepreneurship and crowdfunding

Design thinking

The Green Thing

Workshop Guide