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Visual Business ModelingSome Fun with Alex’ Osterwalders BMC | Service Design Drinks Berlin, 03.09.2012                   ...
Choices & Consequences                                        Activity Networks                            Value Flow Mapp...
Osterwalders Business Model Canvas: The Building BlocksImage Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.n...
Customer Segments                                           Which customers do we serve?                                  ...
Value Proposition                         Tip: Use the Value                            Proposition-                      ...
Channels                             How can we best reach/serve each customer segment?                                Wha...
Relationships                      What relations shall we establish with our customer segments?                          ...
Relationships                                                                                                     I n te r...
Revenue Streams                                 What are our customers really willing to pay for?                         ...
Key Resources                                          Which resources and assets are critical                            ...
Key Activities                                       What essential key activities do we have to                          ...
Key Partners               Who are critical partners and suppliers leveraging our business model?                         ...
Key Partners                                   t r uc t u re                        I nf ras               Who are critica...
Cost Structure                                            What is our resulting cost structure?                           ...
Cost Structure                                                                        Fi n ance                           ...
Key                                          Value                          Activities                                Prop...
Starting Points: Resource-Driven                          Key                                          Value              ...
Starting Points: Offer-Driven                          Key                                          Value                 ...
Starting Points: Customer-Driven                          Key                                          Value              ...
Starting Points: Finance-Driven                          Key                                          Value               ...
Starting Points: Multiple-Epicenter-Driven                          Key                                          Value    ...
Key                                          Value                          Activities                                Prop...
Key                                    Value                                Activities                          Propositio...
Key                                    Value                                Activities                          Propositio...
Video Gaming Strategy Canvas: Nintendo Wii (in 2007)                                                 Key                  ...
KP           KA          VP        CR                             CS             KR                    CHCS               ...
KP                   KA                                 VP                       CR                             CS        ...
KP                     KA                                 VP                       CR                                   CS...
KP                     KA                                     VP                       CR                                 ...
KP                              KA                                            VP                                       CR ...
KP                              KA                                            VP                                       CR ...
KP                              KA                                            VP                                       CR ...
Key                                          Value                          Activities                                Prop...
Key                                          Value                          Activities                                Prop...
What I haven’t told you                          23
Want to know more? Join the Business Model Generation! businessmodelgeneration.com/book          businessmodelyou.com     ...
… and start following these Guys and Organisations!   Alexander Osterwalder: http://www.businessmodelalchemist.com      Pa...
Design-drivenstrategic businessplanningJan Schmiedgen // Zwiestädter Straße 7 // 12055 Berlin // +49 173 3 83 15 26 // kon...
Backup: Some Examples of well known Business Models                                                      27
Image Credit: © 2011 Business Models Inc. (www.businessmodelsinc.com)   www.businessmodelgeneration.com
Image Credit: © 2008 XPLANE (www.xplane.com) & Alexander Osterwalder (www.alexosterwalder.com)   29
Image Credit: © 2008 XPLANE (www.xplane.com) & Alexander Osterwalder (www.alexosterwalder.com)   30
Image Credit: © 2011 Business Models Inc. (www.businessmodelsinc.com)   www.businessmodelgeneration.com
Image Credit: © 2011 Business Models Inc. (www.businessmodelsinc.com)   www.businessmodelgeneration.com
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Visual Business Modeling | Service Design Drinks Berlin

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How about arming yourself with new tools for the next project? Many have stumbled upon the Business Model Canvas, yet only a few of you use it as part of their standard repertoire. Together with Jan Schmiedgen a ‘Service Design Drinks’ session tried to change that. Jan is a co-founder of Global Waste Ideas and wrote his Master’s thesis on ‘The Interrelations of Business Model Innovation, Service Design Thinking and the Production of Meaning’. He gave a short introduction to the canvas and led a hands-on session. This is his slide deck …

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  1. 1. Visual Business ModelingSome Fun with Alex’ Osterwalders BMC | Service Design Drinks Berlin, 03.09.2012 1
  2. 2. Choices & Consequences Activity Networks Value Flow Mapping for Ecosystems Value Configuration Perspective: ! Tom Hulmes Canvas (IDEO) Patrick Stählers Canvas (Fluidmind) Chains/Shops/Networks ! etc. Other »Scientific Conceptualisations« Fraunhofer IAO CanvasImage Credits / Sources in order of appearance: Casadesus-Masanell, R., & Ricart, J. E. (2011). How to Design A Winning Business Model. Harvard Business Review, 89(1/2), 100–107. // Porter, M. E. (1996). What is Strategy? Harvard Business Review, (November - December). // Ouden, E. den. (2011). Innovation Design: Creating Value for People, Organizations and Society (1st ed.). Springer London. // Fjeldstad, Ø. D., & Stabell, C. B. (1998). Configuring Value for Competitive Advantage: On Chains, Shops, and Networks. Strategic Management Journal,, Vol 19, 413–437. // valuenetworksandcollaboration.com, 2011 // Tom Hulme (http://weijiblog.com/ startup-tools/) // Patrick Stähler (http://blog.business-model-innovation.com/tools/) // Johnson, M. W., Christensen, C. M., & Kagermann, H. (2008). Reinventing Your Business Model. Harvard Business Review, 86(12), 50–59. // Fraunhofer IAO (http://moby.iao.fraunhofer.de/)
  3. 3. Osterwalders Business Model Canvas: The Building BlocksImage Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl) 3
  4. 4. Customer Segments Which customers do we serve? What are the jobs they need to get done?Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl) 4
  5. 5. Value Proposition Tip: Use the Value Proposition- Designer! What do we offer them? Which »problem« do we really solve? What value do we really provide?Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl) 5
  6. 6. Channels How can we best reach/serve each customer segment? What are the best interaction/touch points?Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl) 6
  7. 7. Relationships What relations shall we establish with our customer segments? Personal? Automated? Acquisitive? Retentive?Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl) 7
  8. 8. Relationships I n te r f ac e O f fe r i ng C us t ome r What relations shall we establish with our customer segments? Personal? Automated? Acquisitive? Retentive?Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl) 7
  9. 9. Revenue Streams What are our customers really willing to pay for? How? Transactional or recurring revenues? images by JAMImage Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl) 8
  10. 10. Key Resources Which resources and assets are critical to successfully run our business? images by JAMImage Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl) 9
  11. 11. Key Activities What essential key activities do we have to perform to deliver our value proposition? images by JAMImage Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl) 10
  12. 12. Key Partners Who are critical partners and suppliers leveraging our business model? With whom do we co-create value? images by JAMImage Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl) 11
  13. 13. Key Partners t r uc t u re I nf ras Who are critical partners and suppliers leveraging our business model? With whom do we co-create value? images by JAMImage Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl) 11
  14. 14. Cost Structure What is our resulting cost structure? Which key elements drive costs?Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl) 12
  15. 15. Cost Structure Fi n ance What is our resulting cost structure? Which key elements drive costs?Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl) 12
  16. 16. Key Value Activities Proposition Relationships Key Customer Partners Segments Cost Revenue Structure Streams Key Resources ChannelsImage Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl) 13
  17. 17. Starting Points: Resource-Driven Key Value Activities Proposition Relationships Key Customer Partners Segments Cost Revenue Structure Streams Key Resources ChannelsImage Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl) 14
  18. 18. Starting Points: Offer-Driven Key Value Activities Proposition Relationships Key Customer Partners Segments Cost Revenue Structure Streams Key Resources ChannelsImage Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl) 15
  19. 19. Starting Points: Customer-Driven Key Value Activities Proposition Relationships Key Customer Partners Segments Cost Revenue Structure Streams Key Resources ChannelsImage Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl) 16
  20. 20. Starting Points: Finance-Driven Key Value Activities Proposition Relationships Key Customer Partners Segments Cost Revenue Structure Streams Key Resources ChannelsImage Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl) 17
  21. 21. Starting Points: Multiple-Epicenter-Driven Key Value Activities Proposition Relationships Key Customer Partners Segments Cost Revenue Structure Streams Key Resources ChannelsImage Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl) 18
  22. 22. Key Value Activities Proposition Relationships Key Customer Partners Segments Cost Revenue Structure Streams Key Resources ChannelsImage Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl) 19
  23. 23. Key Value Activities Proposition Relationships Key Customer Partners Segments C re ate /R / Re duc e aise Elim i n a te Va l ue Co s ts Cost Revenue Structure Streams Key Resources ChannelsImage Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl) 19
  24. 24. Key Value Activities Proposition Relationships Best Sustainable Key Equilibrium Customer Partners Segments C re ate /R / Re duc e aise Elim i n a te Va l ue Co s ts x. v a l ue m a x. v a l ma f or f or t he u ue c ap t u re se r mp a ny th e co Cost Revenue Structure Streams Key Resources ChannelsImage Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl) 19
  25. 25. Video Gaming Strategy Canvas: Nintendo Wii (in 2007) Key Value Activities Proposition Relationships Nintendo Wii Microsoft Xbox 360 Sony PS3 Key Customer Partners Segments C re ate /R Re duc eValue Level & Price / aise Elim i n a te Va l ue Co s ts Cost Revenue Structure Streams s isk 5.1 D iy ce U U l h s r m tro Key cto vie me ac DV vit CP GP te Pri D on Resources Channels Re lby ys Mo ti Fa Ga rd ec nC os Do er Ha un nn Ec Us tio /F Co Mo Ux 20
  26. 26. KP KA VP CR CS KR CHCS RSNintendo Wii (in 2007) eliminate reduce create raise unchanged
  27. 27. KP KA VP CR CS state-of-the-art chip development male »hardcore gamers« KR CH passive immersion with high-end n e w p r o p r ie t performance and ar y te c h n o l o g y graphicsCS RS c o n s o le su b s idie sNintendo Wii (in 2007) eliminate reduce create raise unchanged
  28. 28. KP KA VP CR CS state-of-the-art chip development g ame de ve l o p e r s male »hardcore gamers« KR CH passive immersion with high-end n e w p r o p r ie t performance and retail game ar y developers te c h n o l o g y graphics distributionCS RS royalties c o n s o le from game su b s idie s developersNintendo Wii (in 2007) eliminate reduce create raise unchanged
  29. 29. KP KA VP CR CS state-of-the-art chip development g ame de ve l o p e r s male »hardcore gamers« KR CH passive immersion with high-end n e w p r o p r ie t performance and retail game ar y developers te c h n o l o g y graphics distributionCS RS technology development costs co n s o le royalties c o n s o le uc t io n from game su b s idie s pro d s cos t developersNintendo Wii (in 2007) eliminate reduce create raise unchanged
  30. 30. KP KA VP CR CS state-of-the-art mo t i o n chip development c o n t ro l g ame le d de ve l o p e r g am i ng s a l te r n a t i ve g ame c h once p t u t, f un f re s e a rc rko er y ac t o r male , wo e c o v e x pe r , so cial o rt a l r sp ic ie n c e »hardcore f am i l » ic ro - r p h ys y gamers« STM c s f o ro n i e le c t EMS KR physical activity, CH M le rom e te rs social get-together ac c e m o t io n c asua l n t ro l co te c h n olo gy g ame rs passive immersion with high-end n e w p r o p r ie t performance and families game ar y retail developers te c h n o l o g y graphics distribution gi r lsCS RS technology development costs co n s o le royalties c o n s o le uc t io n from game su b s idie s pro d s cos t developersNintendo Wii (in 2007) eliminate reduce create raise unchanged
  31. 31. KP KA VP CR CS state-of-the-art mo t i o n chip development c o n t ro l g ame standard le d de ve l o p e r component g am i ng s hardware a l te r n a t i ve manufacturers once p t g ame c h u t, f un f re s e a rc rko er y ac t o r male , wo e c o v e x pe r , so cial o rt a l r sp ic ie n c e retail store »hardcore f am i l » involvement ic ro - r p h ys y gamers« STM c s f o ro n i e le c t EMS KR physical activity, CH M le rom e te rs social get-together ac c e m o t io n c asua l n t ro l co te c h n olo gy g ame rs passive immersion with high-end n e w p r o p r ie t performance and families game ar y retail developers te c h n o l o g y graphics distribution gi r lsCS RS technology development costs co n s o le royalties h a rd w c o n s o le uc t io n from game s a le s a re su b s idie s pro d s pro f i cos t developers tNintendo Wii (in 2007) eliminate reduce create raise unchanged
  32. 32. KP KA VP CR CS state-of-the-art mo t i o n chip development c o n t ro l g ame standard le d de ve l o p e r component g am i ng s hardware a l te r n a t i ve Desirability manufacturers once p t g ame c h u t, f un f re s e a rc rko er y ac t o r male , wo e c o v e x pe r , so cial o rt a l r sp ic ie n c e retail store »hardcore f am i l » involvement ic ro - r p h ys y gamers« STM c s f o ro n i e le c t EMS KR physical activity, CH M le rom e te rs social get-together ac c e m o t io n c asua l n t ro l co te c h n olo gy Best g ame rs Sustainable passive immersion with high-end game n e w p r o p r ie t ar y Equilibrium performance and retail families developers te c h n o l o g y graphics distribution gi r ls Feasibility ViabilityCS RS technology development costs co n s o le royalties h a rd w c o n s o le uc t io n from game s a le s a re su b s idie s pro d s pro f i cos t developers tNintendo Wii (in 2007) eliminate reduce create raise unchanged
  33. 33. Key Value Activities Proposition Relationships Key Customer Partners Segments Cost Revenue Structure Streams Key Resources ChannelsImage Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl) 22
  34. 34. Key Value Activities Proposition Relationships Key Customer Partners Segments 10: MI NU T 00 ES Cost Revenue Structure Streams Key Resources ChannelsImage Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl) 22
  35. 35. What I haven’t told you 23
  36. 36. Want to know more? Join the Business Model Generation! businessmodelgeneration.com/book businessmodelyou.com 24
  37. 37. … and start following these Guys and Organisations! Alexander Osterwalder: http://www.businessmodelalchemist.com Patrick Stähler: http://blog.business-model-innovation.com Steve Blank: http://steveblank.com Doblin Group: http://news.doblin.com Innosight: http://www.innosight.com BusinessModelsInc: http://www.businessmodelsinc.com DesignWorks @ Rotman: http://bit.ly/TYRLhG Illinois Institute of Design: http://www.id.iit.edu/news 25
  38. 38. Design-drivenstrategic businessplanningJan Schmiedgen // Zwiestädter Straße 7 // 12055 Berlin // +49 173 3 83 15 26 // kontakt@schmiedgen.eu 26
  39. 39. Backup: Some Examples of well known Business Models 27
  40. 40. Image Credit: © 2011 Business Models Inc. (www.businessmodelsinc.com) www.businessmodelgeneration.com
  41. 41. Image Credit: © 2008 XPLANE (www.xplane.com) & Alexander Osterwalder (www.alexosterwalder.com) 29
  42. 42. Image Credit: © 2008 XPLANE (www.xplane.com) & Alexander Osterwalder (www.alexosterwalder.com) 30
  43. 43. Image Credit: © 2011 Business Models Inc. (www.businessmodelsinc.com) www.businessmodelgeneration.com
  44. 44. Image Credit: © 2011 Business Models Inc. (www.businessmodelsinc.com) www.businessmodelgeneration.com
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