CPI Business Model Canvas & Lean Startup 3 — Questions and Answers
Question 1: Which of the nine Business Model Canvas building blocks represents the network of suppliers and partners that make the business model work?
- Key Resources
- Key Activities
- Key Partners (Correct answer)
- Customer Relationships
Correct answer: Key Partners
Key Partners describes the network of suppliers and partners that make the business model work, helping companies optimize their models, reduce risk, or acquire resources.
Question 2: In Lean Startup, the 'Five Whys' technique is primarily used to:
- Interview five different customer segments
- Identify the root cause of a problem by asking 'why' five times (Correct answer)
- Create five product iterations before launch
- Set five key performance indicators for the MVP
Correct answer: Identify the root cause of a problem by asking 'why' five times
The Five Whys technique involves repeatedly asking 'why' to peel back layers of symptoms and identify the root cause of a problem.
Question 3: A 'freemium' business model is best described as which type of Revenue Stream pattern in the Business Model Canvas?
- Asset sale
- Subscription fees with a free tier that converts to paid (Correct answer)
- Licensing
- Brokerage fees
Correct answer: Subscription fees with a free tier that converts to paid
Freemium is a subscription model where a basic version is offered for free and premium features require payment, making it a subscription-based revenue stream with a free entry point.
Question 4: In Lean Startup methodology, what is an 'innovation accounting' metric used for?
- Tracking R&D tax credits for startups
- Measuring financial returns from patents
- Establishing baseline metrics, tuning the engine, and deciding to pivot or persevere (Correct answer)
- Calculating the total cost of product development
Correct answer: Establishing baseline metrics, tuning the engine, and deciding to pivot or persevere
Innovation accounting is a framework for measuring startup progress, establishing a baseline, tuning the engine of growth, and making the critical decision to pivot or persevere.
Question 5: Which Business Model Canvas block identifies the most important things a company must do to make its business model work?
- Key Resources
- Key Activities (Correct answer)
- Value Propositions
- Cost Structure
Correct answer: Key Activities
Key Activities describes the most important things a company must do to make its business model work, such as production, problem-solving, or platform/network management.
Question 6: In the Lean Startup framework, which 'engine of growth' relies on word-of-mouth and network effects to acquire new customers?
- Sticky Engine of Growth
- Paid Engine of Growth
- Viral Engine of Growth (Correct answer)
- Organic Engine of Growth
Correct answer: Viral Engine of Growth
The Viral Engine of Growth depends on customers spreading the product to others as a side effect of using it, creating a viral loop.
Question 7: When a Business Model Canvas shows the same company serving two or more unrelated customer segments with very different needs, this is called a:
- Multi-sided Platform
- Diversified (Correct answer)
- Segmented
- Mass Market
Correct answer: Diversified
A Diversified customer segment model serves two or more unrelated customer segments with very different needs and problems.
CPI Business Model Canvas & Lean Startup 3
Which of the nine Business Model Canvas building blocks represents the network of suppliers and partners that make the business model work?