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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 …

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. Visual Business ModelingSome Fun with Alex’ Osterwalders BMC | Service Design Drinks Berlin, 03.09.2012 1
  • 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. Osterwalders Business Model Canvas: The Building BlocksImage Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl) 3
  • 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. KP KA VP CR CS KR CHCS RSNintendo Wii (in 2007) eliminate reduce create raise unchanged
  • 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. 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. 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. 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. 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. 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. 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. 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. What I haven’t told you 23
  • 36. Want to know more? Join the Business Model Generation! businessmodelgeneration.com/book businessmodelyou.com 24
  • 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. Design-drivenstrategic businessplanningJan Schmiedgen // Zwiestädter Straße 7 // 12055 Berlin // +49 173 3 83 15 26 // kontakt@schmiedgen.eu 26
  • 39. Backup: Some Examples of well known Business Models 27
  • 40. Image Credit: © 2011 Business Models Inc. (www.businessmodelsinc.com) www.businessmodelgeneration.com
  • 41. Image Credit: © 2008 XPLANE (www.xplane.com) & Alexander Osterwalder (www.alexosterwalder.com) 29
  • 42. Image Credit: © 2008 XPLANE (www.xplane.com) & Alexander Osterwalder (www.alexosterwalder.com) 30
  • 43. Image Credit: © 2011 Business Models Inc. (www.businessmodelsinc.com) www.businessmodelgeneration.com
  • 44. Image Credit: © 2011 Business Models Inc. (www.businessmodelsinc.com) www.businessmodelgeneration.com