Business Model
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  • 1. Business Models A platform for analyzing existing business models and imagining new ones
  • 2. Hi, I’m Digit
  • 3. I’m here to talk to you about. . . Business Models
  • 4. This presentation is about using a common platform to describe business models.
  • 5. Let’s start with. . . “ What is a business model?”
  • 6. A business model describes how an entity organizes itself to create value and derive revenue. Alex Osterwalder PhD You can learn more at his website: http://www.businessmodelgeneration.com/
  • 7. By using a common platform to describe our business models we can . . . . . . have a common language to describe where we are going.
  • 8. . . . all understand how the work we do fits together to form the whole. By using a common platform to describe our business models we can . . .
  • 9. . . . imagine new capabilities to add to our organization to see how they would fit. By using a common platform to describe our business models we can . . .
  • 10. . . . ask questions about why we do things the way we do, and see the impacts everywhere. By using a common platform to describe our business models we can . . .
  • 11. By using a common platform to describe our business models we can . . . . . . evaluate the risk of changing our business structures.
  • 12. . . . use it to imagine new business models that would create new value and new revenue streams By using a common platform to describe our business models we can . . .
  • 13. Okay, we're convinced. A common platform to describe business models would be great. But what is this platform?
  • 14. Could you hurry up? These are heavy.
  • 15. Who - Customers The business model platform starts with customers.
  • 16. What - Offer Customers Next comes the offer made to customers.
  • 17. Offer How - Organization Customers Followed by the organization, the entity that makes the offer possible
  • 18. Why - Economics Offer Organization Customers Finally, the economics, the costs and revenues associated with it all. That’s it, only 4 categories?
  • 19. Economics Offer Organization Customers There’s more. Nine building blocks define the key relationships between these four areas.
  • 20. Customer Segments Economics Offer Organization Customers First, what are the customer segments your business model serves?
  • 21. Customer Segments Customer Segments Economics Offer Organization Customers Second, what is the offer you have for each segment? Value Proposition
  • 22. Customer Segments Customer Segments Economics Offer Organization Customers Third, what characterizes the relationship with the customer? Value Proposition Relationship Management
  • 23. Customer Segments Customer Segments Economics Offer Organization Customers Four, how will you distribute your offer to this customer type? Value Proposition Relationship Management Distribution Channels
  • 24. Customer Segments Customer Segments Economics Offer Organization Customers Five, how will you charge for this offer? Value Proposition Relationship Management Distribution Channels Revenue Flows Cool! That’s how our value generates revenue
  • 25. Customer Segments Customer Segments Economics Offer Organization Customers Six, what key activities do you perform to deliver this offer? Value Proposition Relationship Management Distribution Channels Revenue Flows Key Activities That’s us and our work.
  • 26. Customer Segments Customer Segments Economics Offer Organization Customers Seven, what activities will you give to partners to perform as they can do it better than you? Value Proposition Relationship Management Distribution Channels Revenue Flows Key Activities Partner Network
  • 27. Customer Segments Customer Segments Economics Offer Organization Customers Eight, what resources do you need to perform the activities? Value Proposition Relationship Management Distribution Channels Revenue Flows Key Activities Partner Network Key Resources
  • 28. Customer Segments Customer Segments Economics Offer Organization Customers Finally, how do your resources and partners drive costs? Value Proposition Relationship Management Distribution Channels Revenue Flows Key Activities Partner Network Key Resources Cost Structure Great. Can you show us an example?
  • 29. 9 Building Blocks Define Your Business Model Sure, but before we talk about that, take a moment to review the business model platform. Business Model Canvas © Alex Osterwalder
  • 30. Do you know Skype? Business Model Canvas © Alex Osterwalder
  • 31. They started by targeting travelers and small business owners. Business Model Canvas © Alex Osterwalder
    • Travelers
    • Small Business
  • 32.
    • Travelers
    • Small Business
    • Free calls
    • Reasonable Quality
    • Conference calls
    • Video calls
    • Cheap calls to phones (Skype out)
    With an offer for free calls, free video conference and cheap calls to phones. Business Model Canvas © Alex Osterwalder
  • 33.
    • Travelers
    • Small Business
    • Web
    • Automated web relationship
    • Software download set-up
    • Free calls
    • Reasonable Quality
    • Conference calls
    • Video calls
    • Cheap calls to phones (Skype out)
    The relationship was, and remains automatic, with distribution through the web. Business Model Canvas © Alex Osterwalder
  • 34.
    • Travelers
    • Small Business
    • Web
    • Skype Out
    • Ancillary Products
    • Free
    • Automated web relationship
    • Software download set-up
    • Free calls
    • Reasonable Quality
    • Conference calls
    • Video calls
    • Cheap calls to phones (Skype out)
    Revenues come from Skype-out calls and ancillary products. Most calls are free. Business Model Canvas © Alex Osterwalder
  • 35.
    • Travelers
    • Small Business
    • Web
    • Skype Out
    • Ancillary Products
    • Free
    • Software Development
    • Complaint Management
    • Automated web relationship
    • Software download set-up
    • Free calls
    • Reasonable Quality
    • Conference calls
    • Video calls
    • Cheap calls to phones (Skype out)
    Key activities are software development and complaint management. Business Model Canvas © Alex Osterwalder
  • 36.
    • Travelers
    • Small Business
    • Web
    • Skype Out
    • Ancillary Products
    • Free
    • Software Development
    • Complaint Management
    • Automated web relationship
    • Software download set-up
    • Country Telcos
    • Payment Providers
    • Logitech
    • Free calls
    • Reasonable Quality
    • Conference calls
    • Video calls
    • Cheap calls to phones (Skype out)
    They partner with Telcos, payment and product providers. Business Model Canvas © Alex Osterwalder
  • 37.
    • Travelers
    • Small Business
    • Web
    • Skype Out
    • Ancillary Products
    • Free
    • Software Development
    • Complaint Management
    • Software Developers
    • Software
    • Automated web relationship
    • Software download set-up
    • Country Telcos
    • Payment Providers
    • Logitech
    • Free calls
    • Reasonable Quality
    • Conference calls
    • Video calls
    • Cheap calls to phones (Skype out)
    Unlike Telcos with $billions invested in infrastructure, Skype’s key resources are developers and the software. Business Model Canvas © Alex Osterwalder
  • 38. As a software company their costs are limited to software development and complaint management.
    • Travelers
    • Small Business
    • Web
    • Skype Out
    • Ancillary Products
    • Free
    • Software Development
    • Complaint Management
    • Software Developers
    • Software
    • Software Development
    • Complaint Management
    • Automated web relationship
    • Software download set-up
    Business Model Canvas © Alex Osterwalder
    • Country Telcos
    • Payment Providers
    • Logitech
    • Free calls
    • Reasonable Quality
    • Conference calls
    • Video calls
    • Cheap calls to phones (Skype out)
    • Partner Fees
  • 39. See how easy it is to describe how a company works? Business Model Canvas © Alex Osterwalder
  • 40. Business Model Canvas © Alex Osterwalder
    • Just for fun Skype recently released their numbers for 2008.
      • 340 million registered users
      • 100 billion free calls
      • $550 million revenue
      • They’ve become the largest provider of cross-border voice communications in the world.
  • 41. So, that’s what business models are all about.
  • 42. Imagine if everyone in your organization had a common understanding of your business model?
  • 43. What value could you unlock?
  • 44. If you’d like more info. Call us and ask for John. Tell him Digit sent you. Ennova Inc. Toronto, Ontario 1-888- 6ennova 905-294-8050 (local) John @ennova.ca
  • 45. Hey Digit, can you give me a hand with this?