baden-württemberg connected: bmgen-seminar 2014.05.15
TRANSCRIPT
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© Vujàdé Ltd. – Supporting Forward Thinking Alexander Osterwalder www.businessmodelgeneration.com
Judith Wimmer Vujàdé Ltd. – Supporting Forward Thinking 2014.05.15
Phot
o by
: Vu
jàdé
Ltd
– J
aspe
r Bo
uwsm
a
BUSINESS MODEL GENERATION A common language to develop and discuss business models
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© Vujàdé Ltd. – Supporting Forward Thinking 2
Phot
o by
: Vu
jàdé
Ltd
– J
aspe
r Bou
wsm
a
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© Vujàdé Ltd. – Supporting Forward Thinking 3
Vu-jà-dé
Vujàdé is the opposite of déjà vu and gives the impression that something has not yet taken place, or has never been there.
Looking for new solutions. Critically questioning existing structures and behavior.
Looking at something from a different or an unusual point of view. In other words, Vujàdé stands for innovation.
Photo by: Vujàdé Ltd – Jasper Bouwsma
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© Vujàdé Ltd. – Supporting Forward Thinking
1. CORPORATE CONSULTING
2. START-UP SUPPORT
3. INCUBATION
À PROPOS
Photo by: Vujàdé Ltd – Jasper Bouwsma
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© Vujàdé Ltd. – Supporting Forward Thinking
Judith Wimmer Sr. Consultant, Vujàdé Ltd.
Photo by: Vujàdé Ltd – Jasper Bouwsma
Vujàdé is a consultancy supporting organizations to achieve breakthrough innovation. We work with companies of all sizes, from corporates to SMEs and start-ups, in industries from insurance to fashion, and from construction to life sciences. Vujàdé is located in Biel/Bienne, Switzerland, and is establishing a presence in London, UK. Judith Wimmer is a Senior Consultant at Vujàdé and combines an open minded spirit with a well structured hands-on mentality. Due to her working experience in and for start-ups as well as with large organizations, she has a quick and natural understanding of customer and client needs. She has gained extensive experience in applying the Business Model Generation framework in various customer projects and industries. Judith is trained by Alexander Osterwalder, and his company Strategyzer. Judith was born and raised in Austria, has a background in Media Technology and Design. She worked as project manager in the field of corporate communications in Germany and Switzerland. In addition, Judith consulted individuals and teams in strategic projects and organisational development and is currently finishing her MAS Change and Organisational Dynamics.
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© Vujàdé Ltd. – Supporting Forward Thinking
TOPIC OUR
FOR TODAY
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© Vujàdé Ltd. – Supporting Forward Thinking
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© Vujàdé Ltd. – Supporting Forward Thinking
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ACCELERATED INNOVATION WE ARE INVETING MORE, MORE QUICKLY
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ACCELERATED ADOPTION SOCIETY IS ADOPTING TECHNOLOGY FASTER AS WELL
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© Vujàdé Ltd. – Supporting Forward Thinking
Curt Carlson, SRI International CEO
In exponential times, if you improve your performance incrementally
YOU FALL BEHIND EXPONENTIALLY
”
“
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Alexander Osterwalder A Swiss Business Book author.
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© Vujàdé Ltd. – Supporting Forward Thinking © Vujàdé Ltd. – Supporting Forward Thinking
Insert Photo of book with Jasper’s Name.
Co-Created by 470 practitioners from 45 countries.
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© Vujàdé Ltd. – Supporting Forward Thinking © Vujàdé Ltd. – Supporting Forward Thinking
AGENDA
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© Vujàdé Ltd. – Supporting Forward Thinking
AGENDA
DESIGN THINKING A NEW GENERATION THE BUSINESS MODEL GENERATION
GETTING FAMILIAR WITH THE BMC
I II III
Phot
o by
: Vu
jàdé
Ltd
– J
aspe
r Bo
uwsm
a
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© Vujàdé Ltd. – Supporting Forward Thinking
AGENDA
II III 1 2 3
BUSINESS MODEL GENERATION
I
Phot
o by
: Vu
jàdé
Ltd
– J
aspe
r Bo
uwsm
a
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© Vujàdé Ltd. – Supporting Forward Thinking © Vujàdé Ltd. – Supporting Forward Thinking
Case Study Nespresso • B2C & B2B • Business Model Portfolio
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© Vujàdé Ltd. – Supporting Forward Thinking © Vujàdé Ltd. – Supporting Forward Thinking
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© Vujàdé Ltd. – Supporting Forward Thinking
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© Vujàdé Ltd. – Supporting Forward Thinking
THE BUSINESS MODEL CANVAS
Alexander Osterwalder www.businessmodelgeneration.com
COST STRUCTURE REVENUE STREAMS
KEY PARTNERS
KEY ACTIVITIES
KEY RESOURCES
CHANNELS
CUSTOMER SEGMENTS
CUSTOMER RELATIONSHIP
VALUE PROPOSITIONS
THE BUSINESS MODEL CANVAS
House- hold
N-Club
Stores
Produc-tion
Marketing
Machine Pro-
ducers
Produc-tion
Distri-bution
Marketing Machine Pods
Call Center N.com
Brand Produc-
tion facilities
Distri-
bution
channels
Retail
Patents IP
(1800+ patents) Business
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© Vujàdé Ltd. – Supporting Forward Thinking
HAS TAKEN A WHILE TO BECOME
SUCCESSFUL…
NESPRESSO
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© Vujàdé Ltd. – Supporting Forward Thinking
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© Vujàdé Ltd. – Supporting Forward Thinking
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© Vujàdé Ltd. – Supporting Forward Thinking Vujàdé Ltd. – Supporting Forward Thinking
THE RIGHT BUSINESS MODEL CAN BE THE DIFFERENCE BETWEEN SUCCESS AND
FAILURE FOR EXACTLY THE SAME TECHNOLOGY OR
PRODUCT
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© Vujàdé Ltd. – Supporting Forward Thinking Vujàdé Ltd. – Supporting Forward Thinking
WHY WILL NESPRESSO EVEN
BE MORE SUCCESSFUL?
?
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© Vujàdé Ltd. – Supporting Forward Thinking
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© Vujàdé Ltd. – Supporting Forward Thinking
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© Vujàdé Ltd. – Supporting Forward Thinking Vujàdé Ltd. – Supporting Forward Thinking
WE ARE MOVING FROM PORTFOLIOS OF PRODUCTS
TO PORTFOLIOS OF
BUSINESS MODELS.
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© Vujàdé Ltd. – Supporting Forward Thinking Vujàdé Ltd. – Supporting Forward Thinking
REVENUE MODEL ≠
BUSINESS MODEL
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© Vujàdé Ltd. – Supporting Forward Thinking
Albert Einstein
”
Everything should be made as simple as possible,
but not simpler.
“
Phot
o by
: Vu
jàdé
Ltd
. –
Jasp
er B
ouw
sma
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© Vujàdé Ltd. – Supporting Forward Thinking
AGENDA
II III 1 2 3
BUSINESS MODEL GENERATION
I
Phot
o by
: Vu
jàdé
Ltd
– J
aspe
r Bo
uwsm
a
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© Vujàdé Ltd. – Supporting Forward Thinking © Vujàdé Ltd. – Supporting Forward Thinking
Exercise AirBnB & APPLE iTUNES • B2B • Product to Service Centric
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© Vujàdé Ltd. – Supporting Forward Thinking
5’ EXERCISE
BUSINESS MODEL
THE BUSINESS MODEL CANVASKeyPartners
Project Name Iteration Nr
Channels
www.businessmodelgeneration.comThis work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License.
To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/ or send aletter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.
Vujàdé Ltd. – Consulting I Start-up Support I IncubationElfenaustrasse 3 I CH-2502 Biel/Bienne I Switzerland +41 32 32 32 300 I [email protected] I www.vujade.comwww.slideshare.net/vujade
KeyActivities
ValueProposition
CustomerRelationship
CustomerSegments
KeyRessources
CostStructure
RevenueStreams
images by Mathilde
images by Mathilde
community
community
catalogue development
catalogue development
employees
employees
worldwide coverage
worldwide coverage
sales & marketing
sales & marketing
platform
platform
pay pal
pay pal
sales & marketing
sales & marketing
photographers
photographers
helpdesk
helpdesk
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© Vujàdé Ltd. – Supporting Forward Thinking
VALUE PROPOSITIONS
KEY ACTIVITIES
KEY RESOURCES
REVENUE STREAMS COST STRUCTURE
KEY PARTNERS CUSTOMER SEGMENTS
CUSTOMER RELATIONSHIP
CHANNELS
Images by XPLANE, with warm thanks to Alexander Osterwalder
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© Vujàdé Ltd. – Supporting Forward Thinking
VALUE PROPOSITIONS
KEY ACTIVITIES
KEY RESOURCES
REVENUE STREAMS COST STRUCTURE
KEY PARTNERS CUSTOMER SEGMENTS
CUSTOMER RELATIONSHIP
CHANNELS
Images by Mathilda, with warm thanks to Yves Pigneur
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© Vujàdé Ltd. – Supporting Forward Thinking Source: http://stamen.com/clients/airbnb
2008
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© Vujàdé Ltd. – Supporting Forward Thinking Source: http://stamen.com/clients/airbnb
2009
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© Vujàdé Ltd. – Supporting Forward Thinking Source: http://stamen.com/clients/airbnb
2010
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© Vujàdé Ltd. – Supporting Forward Thinking Source: http://stamen.com/clients/airbnb
2011
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© Vujàdé Ltd. – Supporting Forward Thinking Source: www.tagesanzeiger.ch/wirtschaft/unternehmen-und-konjunktur/Bund-nimmt-ZimmerTeilet-unter-die-Lupe/story/25680550
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© Vujàdé Ltd. – Supporting Forward Thinking
AGENDA
II III 1 2 3
BUSINESS MODEL GENERATION
I
Phot
o by
: Vu
jàdé
Ltd
– J
aspe
r Bo
uwsm
a
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© Vujàdé Ltd. – Supporting Forward Thinking
TIPS & TRICKS
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VISUALIZE YOUR BUSINESS MODEL VIDEO #BMGen – 02
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… NEVER WRITE ON THE CANVAS Using post-its allows an easily shifting and removing of elements. Therefore the exercise stays dynamic and the business model or the value propositions can be continuously developed.
COST STRUCTURE REVENUE STREAMS
KEY PARTNERS
KEY ACTIVITIES
KEY RESOURCES
CHANNELS
CUSTOMER SEGMENTS
CUSTOMER RELATIONSHIP
VALUE PROPOSITIONS
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© Vujàdé Ltd. – Supporting Forward Thinking
mothers
… ONE IDEA - ONE POST-IT Use a thick marker! No bullets, use for each point a separate post-it. This allows you easily shifting the elements and quickly testing combinations.
teenagers
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© Vujàdé Ltd. – Supporting Forward Thinking
… COLOR CODING Use different color post-its to highlight certain aspects of your business model. For example, use different color stickies if you have two very different customer segments in your business model with very different jobs-to-be done (e.g. advertisers and users). Then continue to use the same colors for the corresponding value propositions, channels, etc.
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© Vujàdé Ltd. – Supporting Forward Thinking
… VISUALS & WORDS Combining images and words to describe business model building blocks is more powerful than just using words. Our brain processes images quicker than words. Hence, images will allow viewers of your Canvas to more rapidly grasp the big picture of your model.
production customer social network
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© Vujàdé Ltd. – Supporting Forward Thinking
… GRANULARITY Don’t add too many elements when you are sketching out the strategic overview of a business model. Too many details hide the big picture. On the other hand, adding detail is appropriate when you work on the refinement of your business model, in order to test it and consider customer development.
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© Vujàdé Ltd. – Supporting Forward Thinking
FREQUENTLY COMMITTED MISTAKES
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© Vujàdé Ltd. – Supporting Forward Thinking
… ORPHAN ELEMENTS Make sure you don’t create “orphan” elements in your business model. For example, every Statty in the revenue streams box needs a corresponding Statty in the customer segment and value proposition box that highlights who is willing to pay for what. You should not, for instance, have “advertising” as a revenue stream, without having an “advertiser” who is willing to pay for “an audience”
Customer
Segment
Revenue Source
Value Proposition
Orphan
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© Vujàdé Ltd. – Supporting Forward Thinking
… MIXING PRESENT AND FUTURE Make sure you clearly distinguish between presently existing business models and future ideas. Mixing them can be confusing. You can easily distinguish between the two by using color coding or by using separate Canvases.
present
future
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© Vujàdé Ltd. – Supporting Forward Thinking
COST STRUCTURE REVENUE STREAMS
KEY PARTNERS
KEY ACTIVITIES
KEY RESOURCES
CHANNELS
CUSTOMER SEGMENTS
CUSTOMER RELATIONSHIP
VALUE PROPOSITIONS
… TOO MANY IDEAS IN ONE CANVAS Describing too many different ideas in the same Business Model Canvas can lead to con- fusion. Try using separate Canvases to sketch out individual ideas. If necessary you can always bring them together in the same Canvas later on.
COST STRUCTURE REVENUE STREAMS
KEY PARTNERS
KEY ACTIVITIES
KEY RESOURCES
CHANNELS
CUSTOMER SEGMENTS
CUSTOMER RELATIONSHIP
VALUE PROPOSITIONS
COST STRUCTURE REVENUE STREAMS
KEY PARTNERS
KEY ACTIVITIES
KEY RESOURCES
CHANNELS
CUSTOMER SEGMENTS
CUSTOMER RELATIONSHIP
VALUE PROPOSITIONS
COST STRUCTURE REVENUE STREAMS
KEY PARTNERS
KEY ACTIVITIES
KEY RESOURCES
CHANNELS
CUSTOMER SEGMENTS
CUSTOMER RELATIONSHIP
VALUE PROPOSITIONS
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© Vujàdé Ltd. – Supporting Forward Thinking
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© Vujàdé Ltd. – Supporting Forward Thinking
AGENDA
DESIGN THINKING A NEW GENERATION THE BUSINESS MODEL GENERATION
GETTING FAMILIAR WITH THE BMC
I II III
Phot
o by
: Vu
jàdé
Ltd
– J
aspe
r Bo
uwsm
a
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© Vujàdé Ltd. – Supporting Forward Thinking
AGENDA
II III 1 2 3
GETTING FAMILIAR WITH THE BMC
I
Phot
o by
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© Vujàdé Ltd. – Supporting Forward Thinking
3GROUPS 3CASES
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© Vujàdé Ltd. – Supporting Forward Thinking
3 GROUPS | 3 CASES
You are ... a car repair centreYou generate revenues from the sale of spare parts and repair contracts.
You are ... a retailerYou generate revenues from the sale of single items which you purchase from supply chain partners.
You are ... a transportation businessYou generate revenues from ticket sales for trips.
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© Vujàdé Ltd. – Supporting Forward Thinking
3 GROUPS | 3 CASES A CHALLENGE FOR EACH…
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© Vujàdé Ltd. – Supporting Forward Thinking
You are ... a car repair centreYou generate revenues from the sale of spare parts and repair contracts.
You are ... a retailerYou generate revenues from the sale of single items which you purchase from supply chain partners.
You are ... a transportation businessYou generate revenues from ticket sales for trips.
3 GROUPS | 3 CASES A CHALLENGE FOR EACH…
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© Vujàdé Ltd. – Supporting Forward Thinking
Work on the Frontstage of the Business Model Canvas • Value Propositions • Customer Segments • Customer Relationship • Channels • Revenue Streams Past
Future
3 GROUPS | 3 CASES ENJOY PART 1
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© Vujàdé Ltd. – Supporting Forward Thinking
Work on the Backstage of the Business Model Canvas • Value Propositions • Key Partners • Key Activities • Key Ressources • Cost structure
Past
Future
3 GROUPS | 3 CASES ENJOY PART 2
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© Vujàdé Ltd. – Supporting Forward Thinking
Share your key-findings • Bankruptcy or is there a future for your case? • Will it be easy to face the challenge? • Was the canvas useful for the group discussion?
3 GROUPS | 3 CASES PITCH PER GROUP
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© Vujàdé Ltd. – Supporting Forward Thinking
AGENDA
II III 1 2 3
GETTING FAMILIAR WITH THE BMC
I
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o by
: Vu
jàdé
Ltd
– J
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© Vujàdé Ltd. – Supporting Forward Thinking
EPICENTERS OF
BUSINESS MODEL INNOVATION
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© Vujàdé Ltd. – Supporting Forward Thinking
KEY PARTNERS CUSTOMER SEGMENTS
VALUE PROPOSITIONS
CUSTOMER RELATIONSHIP
CHANNELS
KEY ACTIVITIES
KEY RESOURCES
COST STRUCTURE REVENUE STREAMS
EPICENTERS OF BUSINESS MODEL INNOVATION
RESOURCE-DRIVEN
Resource-driven innovation originates from an organization’s existing infrastructure or partnerships to expand or transform the business model. Example: Amazon Web Services
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© Vujàdé Ltd. – Supporting Forward Thinking
EPICENTERS OF BUSINESS MODEL INNOVATION
OFFER-DRIVEN
Offer-driven innovations create new value propositions that affect other business model building blocks. Example: Cemex
KEY PARTNERS CUSTOMER SEGMENTS
VALUE PROPOSITIONS
CUSTOMER RELATIONSHIP
CHANNELS
KEY ACTIVITIES
KEY RESOURCES
COST STRUCTURE REVENUE STREAMS
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© Vujàdé Ltd. – Supporting Forward Thinking
EPICENTERS OF BUSINESS MODEL INNOVATION
CUSTOMER-DRIVEN
Customer-driven innovations are based on customer needs, facilitated access, or increased convenience. Like all innovations emerging from a single epicenter, they effect other building blocks. Example: 23andMe
KEY PARTNERS CUSTOMER SEGMENTS
VALUE PROPOSITIONS
CUSTOMER RELATIONSHIP
CHANNELS
KEY ACTIVITIES
KEY RESOURCES
COST STRUCTURE REVENUE STREAMS
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© Vujàdé Ltd. – Supporting Forward Thinking
EPICENTERS OF BUSINESS MODEL INNOVATION
FINANCE-DRIVEN
Innovations driven by new revenue streams, pricing mechanisms, or reduced cost-structures that affect other business model building blocks. Example: Xerox
KEY PARTNERS CUSTOMER SEGMENTS
VALUE PROPOSITIONS
CUSTOMER RELATIONSHIP
CHANNELS
KEY ACTIVITIES
KEY RESOURCES
COST STRUCTURE REVENUE STREAMS
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© Vujàdé Ltd. – Supporting Forward Thinking
EPICENTERS OF BUSINESS MODEL INNOVATION
MULTI-EPICENTER-DRIVEN
Innovations driven by multiple epicenters can have significant impact on several other building blocks. Example: Hilti
KEY PARTNERS CUSTOMER SEGMENTS
VALUE PROPOSITIONS
CUSTOMER RELATIONSHIP
CHANNELS
KEY ACTIVITIES
KEY RESOURCES
COST STRUCTURE REVENUE STREAMS
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© Vujàdé Ltd. – Supporting Forward Thinking
INCREMENTAL VS.
DISRUPTIVE ACTIVE VS. PASSIVE
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© Vujàdé Ltd. – Supporting Forward Thinking
THE BUSINESS MODEL ENVIRONMENT
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© Vujàdé Ltd. – Supporting Forward Thinking Source: Business Model Generation Book www.businessmodelgeneration.com
KEY PARTNERS CUSTOMER SEGMENTS
VALUE PROPOSITIONS
CUSTOMER RELATIONSHIP
CHANNELS
KEY ACTIVITIES
KEY RESOURCES
COST STRUCTURE REVENUE STREAMS
INDUSTRY FORCES
MARKET FORCES
MACRO ECONOMIC
FORCES
KEY TRENDS
MARKET SEGMENTS
NEEDS & DEMANDS
MARKET ISSUES
SWITCHING COSTS
REVENUE ATTRACTIVENESS
FORESIGHT
MACRO-ECONOMICS
COM
PETI
TIVE
AN
ALY
SIS
MA
RKET AN
ALYSIS
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© Vujàdé Ltd. – Supporting Forward Thinking Source: Business Model Generation Book www.businessmodelgeneration.com
MARKET ANALYSIS
KEY PARTNERS CUSTOMER SEGMENTS
VALUE PROPOSITIONS
CUSTOMER RELATIONSHIP
CHANNELS
KEY ACTIVITIES
KEY RESOURCES
COST STRUCTURE REVENUE STREAMS
INDUSTRY FORCES
MARKET FORCES
MACRO ECONOMIC
FORCES
KEY TRENDS
MARKET SEGMENTS NEEDS & DEMAND MARKET ISSUES SWITCHING COSTS REVENUE ATTRACTIVENESS
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© Vujàdé Ltd. – Supporting Forward Thinking Source: Business Model Generation Book www.businessmodelgeneration.com
COMPETITIVE ANALYSIS
KEY PARTNERS CUSTOMER SEGMENTS
VALUE PROPOSITIONS
CUSTOMER RELATIONSHIP
CHANNELS
KEY ACTIVITIES
KEY RESOURCES
COST STRUCTURE REVENUE STREAMS
INDUSTRY FORCES
MARKET FORCES
MACRO ECONOMIC
FORCES
KEY TRENDS
SUPPLIERS & OTHER VALUE CHAIN ACTORS
STAKEHOLDERS
COMPETITORS (INCUMBENTS)
NEW ENTRANTS
(INSURGENTS)
SUBSTITUTE PRODUCTS &SERVICES
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© Vujàdé Ltd. – Supporting Forward Thinking Source: Business Model Generation Book www.businessmodelgeneration.com
FORESIGHT
KEY PARTNERS CUSTOMER SEGMENTS
VALUE PROPOSITIONS
CUSTOMER RELATIONSHIP
CHANNELS
KEY ACTIVITIES
KEY RESOURCES
COST STRUCTURE REVENUE STREAMS
INDUSTRY FORCES
MARKET FORCES
MACRO ECONOMIC
FORCES
KEY TRENDS
TECHNOLOGY TRENDS
REGULATORY TRENDS
SOCIETAL & CULTURAL TRENDS
SOCIAL-ECONOMIC TRENDS
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© Vujàdé Ltd. – Supporting Forward Thinking Source: Business Model Generation Book www.businessmodelgeneration.com
MACRO-ECONOMICS
KEY PARTNERS CUSTOMER SEGMENTS
VALUE PROPOSITIONS
CUSTOMER RELATIONSHIP
CHANNELS
KEY ACTIVITIES
KEY RESOURCES
COST STRUCTURE REVENUE STREAMS
INDUSTRY FORCES
MARKET FORCES
MACRO ECONOMIC
FORCES
KEY TRENDS
GLOBAL MARKET CONDITIONS
CAPITAL MARKETS
COMMODITIES &
OTHER RESOURCES
ECONOMIC
INFRASTRUCTURE
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© Vujàdé Ltd. – Supporting Forward Thinking
AGENDA
II III 1 2 3
GETTING FAMILIAR WITH THE BMC
I
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o by
: Vu
jàdé
Ltd
– J
aspe
r Bo
uwsm
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© Vujàdé Ltd. – Supporting Forward Thinking
BUSINESS MODEL MASTERY VIDEO
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© Vujàdé Ltd. – Supporting Forward Thinking © Vujàdé Ltd. – Supporting Forward Thinking
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© Vujàdé Ltd. – Supporting Forward Thinking
AGENDA
II III 1 2 3
DESIGN THINKING
I
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© Vujàdé Ltd. – Supporting Forward Thinking © Vujàdé Ltd. – Supporting Forward Thinking
DESIGN THINKING
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© Vujàdé Ltd. – Supporting Forward Thinking © Vujàdé Ltd. – Supporting Forward Thinking
PROTOTYPING
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© Vujàdé Ltd. – Supporting Forward Thinking
Alexander Osterwalder
”
Once you understand business models you can then start prototyping
business models just like you prototype products.
“
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. –
Jasp
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sma
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© Vujàdé Ltd. – Supporting Forward Thinking
Sergey Brin, Co-Founder Google
”
The more you stumble around, the more likely you are
to stumble across something valuable.
“
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© Vujàdé Ltd. – Supporting Forward Thinking © Vujàdé Ltd. – Supporting Forward Thinking
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© Vujàdé Ltd. – Supporting Forward Thinking
THE BUSINESS MODEL CANVAS
Alexander Osterwalder www.businessmodelgeneration.com
COST STRUCTURE REVENUE STREAMS
KEY PARTNERS
KEY ACTIVITIES
KEY RESOURCES
CHANNELS
CUSTOMER SEGMENTS
CUSTOMER RELATIONSHIP
VALUE PROPOSITIONS
THE BUSINESS MODEL CANVAS
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© Vujàdé Ltd. – Supporting Forward Thinking
THE BUSINESS MODEL CANVAS
Alexander Osterwalder www.businessmodelgeneration.com
COST STRUCTURE REVENUE STREAMS
KEY PARTNERS
KEY ACTIVITIES
KEY RESOURCES
CHANNELS
CUSTOMER SEGMENTS
CUSTOMER RELATIONSHIP
VALUE PROPOSITIONS
Guess
Guess
Guess Guess Guess
Guess Guess
Guess
Guess
Guess Guess
Guess Guess
Guess
Guess
Guess Guess Guess
THE BUSINESS MODEL CANVAS
Guess Guess Guess
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© Vujàdé Ltd. – Supporting Forward Thinking © Vujàdé Ltd. – Supporting Forward Thinking
HYPOTHESES
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© Vujàdé Ltd. – Supporting Forward Thinking © Vujàdé Ltd. – Supporting Forward Thinking
HORIZONTAL ITERATION
VERT
ICAL
IT
ERAT
ION
INCREASE INSIGHT
ITERATE ITERATE ITERATE GET SMARTER DURING YOUR JOURNEY
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© Vujàdé Ltd. – Supporting Forward Thinking ”
If you cannot measure it, you cannot improve it.
“
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William Thomson, 1st Baron Kelvin (26 June 1824 – 17 December 1907)
was a Belfast-born mathematical physicist and engineer.
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© Vujàdé Ltd. – Supporting Forward Thinking ”
Get your facts first, then you can distort them
as you please.
“
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© Vujàdé Ltd. – Supporting Forward Thinking © Vujàdé Ltd. – Supporting Forward Thinking
TESTING
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© Vujàdé Ltd. – Supporting Forward Thinking
THE OF G
E T O U T
B U I N G I D L
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© Vujàdé Ltd. – Supporting Forward Thinking Alexander Osterwalder www.businessmodelgeneration.com
BUSINESS MODEL ENVIRONMENT
The three layers
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© Vujàdé Ltd. – Supporting Forward Thinking Alexander Osterwalder www.businessmodelgeneration.com
BUSINESS MODEL ENVIRONMENT
A) BUSINESS MODEL LAYER • Build prototypes for your business model • Discuss and select the prototype you are going to
further develop
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© Vujàdé Ltd. – Supporting Forward Thinking Alexander Osterwalder www.businessmodelgeneration.com
BUSINESS MODEL ENVIRONMENT
B) HYPOTHESES LAYER • Quantify your model with hypotheses • Analyse your enviroment and develop foresights • Build hypotheses for the market, competitors,
customers and challenges
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© Vujàdé Ltd. – Supporting Forward Thinking Alexander Osterwalder www.businessmodelgeneration.com
BUSINESS MODEL ENVIRONMENT
C) TEST LAYER • GOOTB!!! • Test your hypotheses by asking customers and partners • Iterate your Business Model • Constantly test your models and reiterate
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© Vujàdé Ltd. – Supporting Forward Thinking Alexander Osterwalder www.businessmodelgeneration.com
BUSINESS MODEL ENVIRONMENT
The stages of an iteractive process
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© Vujàdé Ltd. – Supporting Forward Thinking © Vujàdé Ltd. – Supporting Forward Thinking
NEW OLD
VJD
SHAKEN NOT STIRRED COMBINE THE BEST OF BOTH WORLDS
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© Vujàdé Ltd. – Supporting Forward Thinking © Vujàdé Ltd. – Supporting Forward Thinking
VUJÀDÉ’s HOLY TRINITY NEEDS | BUSINESS | TECHNOLOGY
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© Vujàdé Ltd. – Supporting Forward Thinking © Vujàdé Ltd. – Supporting Forward Thinking
VUJÀDÉ PRINCIPLES DEVELOPMENT OF INSIGHTS DURING PROCESS
TIME
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© Vujàdé Ltd. – Supporting Forward Thinking
WRAP-UP REFLECTION
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© Vujàdé Ltd. – Supporting Forward Thinking
Albert Einstein
The important thing is not to stop questioning.
Curiosity has its own reason for existing.
“
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”
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© Vujàdé Ltd. – Supporting Forward Thinking
Vujàdé Ltd. Supporting Forward Thinking Elfenaustrasse 3 CH-2502 Biel/Bienne Switzerland +41 (0)32 32 32 300 [email protected] www.vujade.com
Phot
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© Vujàdé Ltd. – Supporting Forward Thinking
3+7 QUESTIONS TO ASSESS YOUR BUSINESS MODEL
www.businessmodelalchemist.com/2011/09/7-questions-to-assess-your-business-model-design.html
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© Vujàdé Ltd. – Supporting Forward Thinking
3+7 QUESTIONS TO ASSESS YOUR BUSINESS MODEL
FIRST, ASK YOURSELF HOW WELL YOUR VALUE PROPOSITION IS GETTING YOUR TARGET CUSTOMER’S JOB DONE.
BASICS
www.businessmodelalchemist.com/2011/09/7-questions-to-assess-your-business-model-design.html
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SECONDLY, ASK YOURSELF HOW MANY PEOPLE OR COMPANIES THERE ARE WITH A SIMILAR JOB-TO-BE-DONE.
BASICS
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THIRDLY, ASK YOURSELF HOW IMPORTANT THIS JOB REALLY IS FOR THE CUSTOMER AND IF SHE ACTUALLY HAS A BUDGET TO SPEND ON IT.
BASICS
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3+7 QUESTIONS TO ASSESS YOUR BUSINESS MODEL
#1 HOW MUCH DO SWITCHING COSTS PREVENT YOUR CUSTOMERS FROM CHURNING?
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#1 How much do switching costs prevent your customers from churning? The time, effort, or budget a customer has to spend to switch from one product or service provider to another is called “switching costs”. The higher the switching costs, the likelier a customer is to stick to one provider rather than to leave for the products or services of a competitor.
A great example of designing switching costs into a business model is Apple’s introduction of the iPod in 2001. Do you remember how Steve Jobs heralded his new product with the catchphrase “thousand songs in a pocket”? Well, that was more than a product innovation focusing on storage. It was a business model strategy to get customers to copy all their music into iTunes and their iPod, which would make it more difficult for them to switch to competing digital music players. In a time when little more than brand preferences were preventing people from switching from one player to another this was a smart move and laid the foundation for Apple’s subsequent stronghold on music and later innovations.
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#2 HOW SCALABLE IS YOUR BUSINESS MODEL?
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#2 How scalable is your business model? Scalability describes how easy it is to expand a business model without equally increasing its cost base. Of course software- and Web-based business models are naturally more scalable than those based on bricks and mortar, but even among digital business models there are large differences.
An impressive example of scalability is Facebook. With only a couple of thousand of engineers they create value for hundreds of millions of users. Only few other companies in the world have such a ratio of users per employee. A company that has pushed the limits even further is the social gaming company Zynga. By building games like Farmville or Cityville on the back Facebook, the world’s largest social network, they could benefit from Facebook’s reach (and scale) without having to build it themselves. A company that quickly learned its lessons regarding scalability was peer-to-peer communication company Skype in its early days. Their customer relationship collapsed under the weight of large numbers, when they were signing up ten thousands of users per day. They quickly had to adapt their business model to become more scalable.
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#3 DOES YOUR BUSINESS MODEL PRODUCE RECURRING REVENUES?
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#3 Does your business model produce recurring revenues? Recurring revenues are best explained through a simple example.
When a newspaper earns revenues from the sales at a newsstand they are transactional, while revenues from a subscription are recurring. Recurring revenues have two major advantages. Firstly, the costs of sales incur only once for repetitive revenues. Secondly, with recurring revenues you have a better idea of how much you will earn in the future.
A nice example of recurring revenues is Redhat, which provides open source software and support to enterprises based on a continuous subscription basis. In this model clients don’t pay for new software versions because it is continuously updated. In the world of Software as a Service (Saas) these types of subscriptions are now the norm. This contrasts with Microsoft, which sells most of its software in the form of licenses for every major release.
However, there is another aspect to recurring revenues, which are additional revenues generated from an initial sales. For example, when you buy a printer, you continue to spend on cartridges, or when you buy a game console, you’ll continue to spend on games. Or have a look at Apple. While they still earn most of their revenues from hardware sales, the recurring revenues from content and apps is steadily growing.
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#4 DO YOU EARN BEFORE YOU SPEND?
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#4 Do you earn before you spend? This one goes without saying. The more you can earn before spending, the better.
Dell pioneered this model in the computer hardware manufacturing industry. By assembling on order after selling directly they managed to escape the terrible inventory depreciation costs of the hardware industry. Results showed how powerful it is to earn before spending.
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#5 HOW MUCH DO YOU GET OTHERS TO DO THE WORK?
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#5 How much do you get others to do the work? This is probably one of the least publicized weapons of mass destruction in business model design. What could be more powerful than getting others to do the work while you earn the money?
In the bricks and mortar world IKEA gets us to assemble the furniture we buy from them. We do the work. They save money. On the web Facebook gets us to post photos, create and participate in conversations, and “like” stuff. That’s the real value of Facebook, entirely created by users, while they simply provide the platform. We do the work. They earn the sky-high valuations of their shares.
Previously mentioned Redhat crafted another smart business model based on other people’s work. Their entire business model is built on top of software developed by the open source software development community. This allowed them to substantially reduce their development costs and compete head-on with larger companies like Microsoft.
A more malicious business model in which others do the work is the one practiced by so-called patent trolls. In this model patents are purchased with the sole intention of suing successful companies to extract payments from them.
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#6 DOES YOUR BUSINESS MODEL PROVIDE BUILT-IN PROTECTION FROM COMPETITION?
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#6 Does your business model provide built-in protection from competition? A great business model can provide you with a longer-term protection from competition than just a great product.
Apple’s main competitive advantage arises more from its powerful business model than purely from its innovative products. It’s easier for Samsung, for instance, to copy the iPhone than to build an ecosystem like Apple’s appstore, which caters to developers and users alike and hosts hundred thousands of applications.
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#7 IS YOUR BUSINESS MODEL BASED ON A GAME CHANGING COST STRUCTURE?
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#7 Is your business model based on a game changing cost structure? Cutting costs is a long practiced sport in business. Some business models, however, go beyond cost cutting by creating value based on a totally different cost structure. Skype, for example, provides calls and communication almost like a conventional telecom company, but for free or for a very low cost. They can do this because their business model has a very different cost structure. In fact, Skype’s model is based on the economics of a software company, while a telecom provider’s model is based on the economics of a network company. The former’s costs are mainly people; while the latter’s cost include huge capital expenditures in infrastructure. Similarly, Bharti Airtel, one of the world’s largest mobile network providers, has substantially modified its cost structure by getting rid of their entire network and IT. By buying in network capacity on a variable cost basis from a consortium around network equipment manufacturer Ericsson and IBM, they can now offer among the lowest prices for mobile telephony globally. Redhat, which was mentioned previously, also built its business model on a game changing cost structure: by smartly building its own model on top of other people’s work.
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