Lift11 Presentation

The NewBusinessModelsDesigning and testing great businesses@business_design

Mike34 MITAlumnus

Mikeis passionateabout a newproduct idea

Mikemasters all thetools ofbusiness

But...

“ No business plan survives the ﬁrst contact with customers Steve Blank ”

in entrepreneurship we still relyon real-life crash tests whichlead to costly failures

Sketching

Prototyping

Simulation

Testing

Could we designbusiness models theway we design cars?

But...what really is abusiness model

describe yourbusiness model toyour seat neighborin 30 seconds!

TheBusinessModelCanvas

9 Building Blocks

Customer Segments images by JAM

Value Proposition images by JAM

Channels images by JAM

Customer Relationships images by JAM

Revenue Streams images by JAM

Key Resources images by JAM

Key Activities images by JAM

Key Partners images by JAM

Cost Structure images by JAM

key value customer activities proposition relationships key customerpartners segments cost revenuestructure key streams resources channels images by JAM

The Business Model Canvas KEY KEY VALUE CUSTOMER CUSTOMERPARTNERS ACTIVITIES PROPOSITION RELATIONSHIPS SEGMENTS b u i ldi n g blo c k bu ilding b u ildin g blo ck blo c k b u ildin g blo c k b u ildin g KEY building CHANNELS blo c k RESOURCES bloc k bu ilding blo ck b u ildi n g blo c k bui ldin g blo ck COST STRUCTURE REVENUE STREAMS b u i ldi n g building bu ilding bl o c k blo ck block

h o r re n d o u s u p f ro nt i n st a l l at i o nc o st s b a r re d s o l a r e n e rg y f ro m t a k i n g o f f

JigarShah

KEY KEY OFFER CUSTOMER CUSTOMERPARTNERS ACTIVITIES RELATIONSHIPS SEGMENTS in st a ll a n d m a n a g e s o la r in st a ll atio n s sa le s sola r ene rgy at fixed pri ce - no companies inst allation costs s a le s (e.g. retailers) KEY fo rc e s CHANNELS RESOURCES er 5- 0 ye a r p o w 1 p u rc h a s in g s a g re e m e nts PPA institution al g re e n e n e rg y f i n a n c ia l and private in ve st m e nts i n sti t u tio n s inve sto rs sa le s fo rc e COST STRUCTURE REVENUE STREAMS in st a ll in g a n d m a n a g in g s o la r ma nagement fees in st a ll atio n s

S u nEdis o n is n ow the la rgest prov iderof so la r p ower i n the US - so ld to MEMC Ele ctro n ic Materia ls i n ’09 fo r USD 200M

Sketching

Prototyping

Every product or technologycan lead to ﬁve, ten, twentydifferent business models

KEY KEY VALUE CUSTOMER CUSTOMERPARTNERS ACTIVITIES PROPOSITION RELATIONSHIPS SEGMENTS KEY CHANNELS RESOURCES COST STRUCTURE REVENUE STREAMS

Selling Licensing Fertilizer Free Franchising Not-For- Cross Profit Subsidies Micro- financeAdvertising

Simulating

i ng mar ke t Ru nK eep er s o f t wa re Fre e app:rohtua :neercs :neercs :neercs :neercs :neercs development 2 iP h o ne s + M .6K An dro id 98 P h o ne s R u nK e e p e r us e rs s t af f Pro a pp App store and Android store IT i n f ra :tcejorp :tcejorp :tcejorp :tcejorp :tcejorp:etad 400K 100K 800K 2M s t af f a n d s o f t wa r e ad s IT i n f ra a pp s a le s development $9.99 599K hc.oidutsel.sitroh//:ptth .0102 .beF .oiduts el ,sitroh yb etalpmet ,elacs lautca ,licnets daPi

i ng mar ke t Fre e Ru nK eep er Ru nK eep er s o f t wa re Fre e app Pro app:rohtua :neercs :neercs :neercs :neercs development iP h o ne s10M 2M + 2.9M An dro id P h o ne s R u nt neeesp e r Fi K s us e rs s t af f Pl o se s Cra sa pp App store and Android store IT i n f ra www :tcejorp :tcejorp :tcejorp :tcejorp:etad 41MK 00 100K 82MK 00 2M 6 s t af f a n d s o f t wa r e ad s IT i n f ra caa s sss a le s l pp a le s development $19.99 $9.99 599K hc.oidutsel.sitroh//:ptth .0102 .beF .oiduts el ,sitroh yb etalpmet ,elacs lautca ,licnets daPi

i ng mar ke t Fre e Ru nK eep er Ru nK eep er s o f t wa re Fre e app Pro app:rohtua :neercs :neercs :neercs :neercs development iP h o ne s10M 2M + 88M An dro id 5. P h o ne s R u nt neeesp e r Fi K s us e rs s t af f P l a sabe s CrC luspp o App store and Android store IT i n f ra www :tcejorp :tcejorp :tcejorp :tcejorp:etad 41MK 00 100K 82MK 00 2M 9 6 s t af f a n d s o f t wa r e ad s IT i n f ra caa psss le sn subscripa le s l p a tio development $19.99 $9.99 4 hc.oidutsel.sitroh//:ptth .0102 .beF .oiduts el ,sitroh yb etalpmet ,elacs lautca ,licnets daPi

Testing

iS e Sng m a r k Et U G Fre e ESS Ru nK eep er s o t wa Geflopm re GUapp Pro dev UESS:rohtua :neercs e nt iP h o ne s10M + An dro id P hUESS G o ne s Fi t E s s GUneSS us e rs Gs t afSS UE f C lub App store and Android S S GUeE stor IGiUEa T nf r S www :tcejorp S:etad 1M 100K 2M 9M s t af f a n d UE a S s o f t wSre G pment GUESS ad s IT i n f ESS GU r a sGscrESion ub U ipt S develo $4.99 hc.oidutsel.sitroh//:ptth .0102 .beF .oiduts el ,sitroh yb etalpmet ,elacs lautca ,licnets daPi

i ng mar ke t Fre e Ru nK eep er s o f t wa re Pro app:rohtua :neercs development iP h o ne s10M + An dro id P h o ne s Fi t ne s s us e rs s t af f C lub App store and test Android store IT i n f ra www :tcejorp:etad s t af f a n d 1M 100K Learn2M 9M s o f t wa r e ad s IT i n f ra subscription development $4.99 hc.oidutsel.sitroh//:ptth .0102 .beF .oiduts el ,sitroh yb etalpmet ,elacs lautca ,licnets daPi

“ Get out of the building and talk to customers Steve Blank ”

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The RunKeeper Club Membership isnot yet available.You will be informedabout the lunch. Thank You!

New Modelpivot test Learn

Only whenyou nailed it...

Onethe new entrepreneuris systematic aboutdesigning and testingbusiness models.

Twothe new entrepreneur playswith alternative businessmodels to design greatones

Threethe new entrepreneur tests hisbusiness model hypotheseswith customers before hebuilds his organization

Thank You@business_design

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Lift11 Presentation

by Alexander Osterwalder on Feb 03, 2011

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