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Arche Assumption Canvas
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The Arche Assumption Canvas - based on David Bland's "Testing business ideas" - helps you and your team to create a structured understanding of the risks and uncertainties of an idea or product.
The canvas is used to formulate the assumptions for your idea or project by looking at the three perspectives of desirability, viability and feasibility. Together, these form the Sweet Spot of Innovation, which is also resembled within the Business Model Canvas.
how does the method work?
To understand the risk and uncertainty of an idea or product, you need to ask yourself the question, "What things need to be true for this idea or product to work?" The Arche Assumption Canvas is helpful in this regard for a collaborative discussion to create a full picture of this and to challenge your assumed "facts" in the process. A critical view along these three dimensions helps to minimize risks at an early stage and forms the basis for further prioritization in the validation phase.Assumptions can be identified along the three dimensions of desirability, feasibility and viability that underlie the idea or product:
- Desirability: Do users want this idea or product? Is there demand for this idea?
- Feasibility: Can we implement it or will we be able to implement it in the near future?
- Viability: Is the idea or product profitable enough? Should we implement it?
These three dimensions together form the Business Model Canvas and thus all the components of your business model. The Desirability dimension covers the areas of Value Proposition, Channels, Customer Relationships and Customer Segments. The Feasibility dimension covers the areas of Value Proposition, Key Activities, Key Resources and Partners. The Viability dimension comprises the areas Costs Structure and Revenue Streams.
Step by Step Guide
The canvas is divided into three sections along the three dimensions of Desirability, Feasibility and Viability.
Start with the customer and collect in the Desirability dimension all your assumptions you have made about the problem and the customer. In the Desirability dimension, there is a risk that the customer segment is too small or that the value proposition appeals to too few customers. In addition, you may also lack the ability to reach, attract and retain the target customers. Feel free to use trigger questions to derive your assumptions. Be critical and question whether your clear answers are not based on assumptions.
Then go through the other two dimensions, Feasibility and Viability. In the Feasibility dimension, there is a risk that there is not enough access to key resources (technology, brand, IP, etc.) or that it is not possible to build up important capabilities to carry out key activities. In addition, lack of partners to build and scale are also among the risks. In the dimension of viability, there is a risk that not enough revenue can be generated or also that there is not sufficient willingness to pay on the part of the customer. In addition, the costs may also be too high to generate a sustainable profit. Again, use the trigger questions to derive your assumptions. Be critical and question if your clear answers are not based on assumptions.
Create an overview of all 3 dimensions. The number of assumptions in all three dimensions should be as balanced as possible. If you notice that you still have room for maneuver in one of the dimensions, spend more time on this dimension to derive further assumptions that you may have overlooked so far.
method canvas
Use canvas
in Miro
or
pdf file
