The Virtual Art Gallery Experience (VAGE) Project:
The Virtual Art Gallery Experience (VAGE) is a new-generation startup business proposal to redefine the art market using modern virtual and augmented reality technologies. Completing the BMC results, it is possible to see the entirety of the VAGE business model mapped, including customer segments, value propositions, channels, relationships, revenue streams, essential resources, key activities, key partners, and cost structures. Following this BMC, the VAGE team has used lean startup methodology, an innovative customer-centric and build-measure-learn-loop methodology that focuses on validating the business models through the trial and error process (Ries, 2011).
One of the VAGE team’s lean startup guidelines is creating consumer categories early on. They needed to understand customer segments and how effectively their products would appeal to them. To do this, the team interviewed potential clients and used questionnaires or focus groups to identify their needs (Blank & Dorf, 2012). This helped them identify its shortcomings and the needs of artists, collectors, galleries, and art aficionados. The VAGE BMC also uses the continual Minimum Viable Product (MVP) methodology. The team used the lean approach to create an MVP with the essential features needed to implement the business model and get customer feedback (Ries, 2011). This iterative technique helped the VAGE team verify their assumptions and form hypotheses with facts, allowing them to make data-driven decisions and tailor product development and business models to users’ needs.
The VAGE team prioritized validated learning after each critical step before moving on. They knew they needed more customer feedback to measure customers’ behavior and interactions with the MVP to determine where it had value to give their attention and where it lacked value to warrant changes or alterations (Blank & Dorf, 2012). Thus, we should move from following the leadership’s views and implementing them in the BMC to using the data obtained to determine clients’ desires and models the BMC should offer.
Lean startups also prioritize being fast and ready to adjust the company model based on consumer input, or ‘validated learning’ (Ries, 2011). VAGE embraced this approach since they knew they could change their thoughts and plans based on consumer encounters and market conditions while working on the business idea. This methodology made the BMC agile because the team could easily coordinate and explore ways to serve target customers in a changing market better. Thus, using lean startup concepts, the VAGE team launched a well-designed, customer-focused BMC that met these targeted clients’ needs. The BMC shows that the company would offer customers and stakeholders art experiences and entertainment, global accessibility of its solutions, and a new art-selling experience. They also establish a sufficient distribution channel and internet platform, use VR and AR headsets, and cooperate with firms and art schools to build technologies to reach clients.
The BMC lists subscription fees, artistic commissions, virtual event tickets, advertising and sponsorships, and licensing and partnership fees as sustainable revenue sources. These many revenue streams help the VAGE business model and give artists and galleries visibility, retail sales, and virtual exhibition and sales earnings. Considering these value propositions, the BMC has crucial capacities to create value and earn income. Technological resources include VR and AR development platforms, safe and trustworthy electronic product commerce platforms, and high-quality digitized artwork images. It also highlights the importance of VR/AR software developers, art curators, marketers, platform creators and maintainers, content creators and curators, publishers, sales, and customer support staff.
The BMC also believes strategic alliances are vital to VAGE companies. Other partners include art galleries and museums, technological companies that make VR and AR hardware and software, e-commerce and payment solution providers, artists and curators, and educational and research institutions. Finally, the BMC describes VAGE business model expenses such as staff salaries, rental charges, and equipment and facility depreciation. This covers sales for marketing and advertising, content procurement and curation for VR/AR, licensing of product development tools, hosting, customer relations, and transactions. The VAGE BMC is a logically sound and cohesive strategy plan for the company that helps the team optimize future decisions and strategies as they adjust to market input and cues (Osterwalder & Pigneur, 2010). The VAGE team’s lean startup strategy created a customer-focused, adaptable BMC that fit the creative market and VR/AR possibilities. The BMC also determines the value proposition, sustainable revenue sources, necessary resources, activities, partners, and costs to create, produce, promote, and sell an engaging and unique art experience to an international audience.
Summary:
The new firm Virtual Art Gallery Experience (VAGE) aims to transform the art market with VR and AR. Customers, segments, value propositions, channels, relationships, revenue streams, essential resources, key activities, partners, and cost structure formulas are in VAGE Business Model Canvas. VAGE followed the lean startup method to construct the BMC, targeting user demands and adjusting the model to learn. This includes using interviews and focus groups to define the customer segment, creating an MVP to test assumptions and get feedback, measuring customer behavior to validate critical learnings, and using Lean Startup principles of agility to adjust the business model based on insights. A well-structured and convincing Value Proposition promotes immersive art experiences, worldwide accessibility, and an art-selling solution from the BMC. They discussed VR/AR headsets, partners, and an online platform. Subscriptions, artwork, event tickets, advertising, and license agreements generate revenue. STechnological and human capital are significant components of the BMC: platform development, content curation, marketing, customer support, VR/AR platforms, e-commerce systems, and developers and curators. These art-technology collaborators include creative hubs, tech businesses, e-commerce partners, artists, curators, and university and college partners. It also covers worker salary and space, product advertising, blog creation or acquisition, online hosting, and transaction fees. The VAGE BMC provides a sound, customer-oriented, and flexible architecture framework for business decision-making and strategy based on customer feedback and market dynamics. The business team updates and refines the VAGE BMC based on new customer feedback and market development.
References:
Blank, S., & Dorf, B. (2012). The startup owner’s manual: The step-by-step guide for building a great company. K&S Ranch.
Osterwalder, A., & Pigneur, Y. (2010). Business model generation: A handbook for visionaries, game changers, and challengers. John Wiley & Sons.
Ries, E. (2011). The lean startup: How today’s entrepreneurs use continuous innovation to create radically successful businesses. Crown Business.