Aotrueventures 110721122749-phpapp01 (1)

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Aotrueventures 110721122749-phpapp01 (1)

  1. 1. DESIGNING & TESTING BUSINESS MODELS AlexOsterwalder.com @business_design SteveBlank.com @sgblank
  2. 2. ? where do I come from, what do I do?
  3. 3. )-: my workplace
  4. 4. )-: my current MVP
  5. 5. BusinessModelGeneration.com/toolbox iPad stencil, actual scale, template by hortis, le studio. Feb. 2010. http://hortis.lestudio.ch screen: author: project: date:
  6. 6. this workshop day combines two global bestsellers + BusinessModelGeneration.com SteveBlank.com/books.html
  7. 7. Swiss Time Machine
  8. 8. 1958
  9. 9. [sources: Henry Chesbrough, photo: life.com]
  10. 10. revenue growth of 41% compounded for the next 20 years [sources: Henry Chesbrough, photo: xerox.com]
  11. 11. Swiss Time Machine
  12. 12. 2009
  13. 13. BusinessModelGeneration.com
  14. 14. 1,000,000 new book titles were published in the U.S. in ʼ10
  15. 15. 11,000 new business books appear every year
  16. 16. 12% decline of sales in major bookstore chains (ʻ07-ʼ09)
  17. 17. ? so what did we do?
  18. 18. we changed the product...
  19. 19. ? would a big publishing house have taken us on with this book?
  20. 20. No!
  21. 21. we changed the business model...
  22. 22. “ you canʼt write about business model innovation without an innovative business model ”
  23. 23. $24.-
  24. 24. $36.-
  25. 25. $54.-
  26. 26. $81.-
  27. 27. $250.-
  28. 28. Results
  29. 29. # in the top 10 of softcover business books in the US
  30. 30. # 170ʼ000+ English #bmgen copies in print (June 2011)
  31. 31. # 18 #bmgen translations upcoming in 2011
  32. 32. more importantly...
  33. 33. business models enable (new) products and technologies and help solve (entirely new) customer problems
  34. 34. the 100 Million dollar question
  35. 35. how do you search for the right business model?
  36. 36. 1 2 3 4 understanding business models prototyping alternatives of “what could be” evaluating your business model design testing business models with customer development
  37. 37. 1 but hey, what is a business model anyways?
  38. 38. ? whatʼs a business model?
  39. 39. ? ?
  40. 40. Business Model Canvas
  41. 41. to describe, challenge, design, and invent business models more systematically
  42. 42. 9 building blocks
  43. 43. CUSTOMER SEGMENTS images by JAM
  44. 44. VALUE PROPOSITIONS images by JAM
  45. 45. CHANNELS images by JAM
  46. 46. CUSTOMER RELATIONSHIPS images by JAM
  47. 47. REVENUE STREAMS images by JAM
  48. 48. KEY RESOURCES images by JAM
  49. 49. KEY ACTIVITIES images by JAM
  50. 50. KEY PARTNERS images by JAM
  51. 51. COST STRUCTURE images by JAM
  52. 52. key activities value proposition customer relationships key customer partners segments cost structure key resources revenue channels streams images by JAM
  53. 53. The Business Model Canvas value key proposition activities KEY PARTNERS key KEY ACTIVITIES OFFER building CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS customer block segments building building building block block building relationships building block partners block customer KEY RESOURCES block CHANNELS building block building block building block cost COST STRUCTURE key structure building resources block REVENUE STREAMS buildi ng block building channelsck blo revenue streams images by JAM
  54. 54. BusinessModelGeneration.com/canvas
  55. 55. illustration
  56. 56. how much less or more do the Swiss pay per gram of coffee consumed at home compared to a decade ago?
  57. 57. 600% to 800% more
  58. 58. Nespresso changed the business model for espresso
  59. 59. RESULTS
  60. 60. own recycling containers
  61. 61. one of the fastestgrowing businesses in the Nestlé group
  62. 62. average growth of 30% p.a. since 2000
  63. 63. global sales of 3.8+ billion USD
  64. 64. Nespresso’s business Model KEY PARTNERS KEY ACTIVITIES B2C tion distribu ine coffee mach rs manufacture Nespre CUSTOMER SEGMENTS households sso (espresso fans) Club *** Nespresso machines businesses KEY RESOURCES Nespresso distribu e coffe pods tion channel s facilities ion mail order m n COST STRUCTURE B2C distrib ut CHANNELS etail **** r ts outle Nespresso.co pod produ ctio ts paten production CUSTOMER RELATIONSHIPS marketing pod production coffee growers Value Proposition call center Nespresso stores REVENUE STREAMS marketing resso sales of Nesp pods sales of Nespress o machines
  65. 65. but Nespresso almost failed in 1987 due to a nonperforming business model
  66. 66. Nespresso’s 1987 Model KEY PARTNERS KEY ACTIVITIES machine manufacturer KEY RESOURCES Value Proposition Nespresso system CUSTOMER RELATIONSHIPS offices CHANNELS joint venture with machine manufacturer COST STRUCTURE CUSTOMER SEGMENTS REVENUE STREAMS
  67. 67. now Nestlé is building a portfolio of business models in their coffee business
  68. 68. BusinessModelGeneration.com/canvas
  69. 69. 2 prototype alternatives and ask yourself what could be
  70. 70. ? letʼs take some time to work on a really, really big issue in the world?
  71. 71. access to proper sanitation
  72. 72. 2.6 billion people lack access
  73. 73. 4 out of 10 people in the world lack even the most simple latrine to perform their needs
  74. 74. * single-use toilet bag * self-sanitizing * biodegradable * turns into fertilizer * (mainly) targeted at poor people * low production cost * people already pay for sanitation
  75. 75. The Business Model Canvas KEY PARTNERS KEY ACTIVITIES KEY RESOURCES COST STRUCTURE OFFER CUSTOMER RELATIONSHIPS CHANNELS REVENUE STREAMS CUSTOMER SEGMENTS
  76. 76. mini brainstorming session
  77. 77. come up with as many business model ideas as possible for the Peepoo bag (not full Canvases)
  78. 78. * single-use toilet bag * self-sanitizing * biodegradable * turns into fertilizer * (mainly) targeted at poor people * low production cost * people already pay for sanitation
  79. 79. make rough prototypes of the different alternatives to analyze, evaluate and compare them
  80. 80. rank F hry Ge [source: Sony Pictures]
  81. 81. [source: Sony Pictures]
  82. 82. [source: Sony Pictures]
  83. 83. [source: Wikimedia Commons]
  84. 84. ? what does that have to do with business models and my organization?
  85. 85. no architect would build something that resembles his first sketch
  86. 86. ? what does that mean for us?
  87. 87. BusinessModelGeneration.com
  88. 88. business model prototyping napkin sketch Canvas business case field test
  89. 89. “ prototyping is the conversation you have with your ideas ” Tom Wujec
  90. 90. 3 evaluate your business model design
  91. 91. building block building block buildin g blo ck building block building block build ing block building block building block build ing block building block buil di blo ng ck buildin g block
  92. 92. SWITCHING   COSTS How  easy  or  difficult  is  it  for  customers   to  switch  to  another  company?
  93. 93. with   this  amazing  device   you  can  have  thousand   songs  in  a  pocket
  94. 94. ...and   you’r  screwing  us   because  it  has  just   become  more  difficult  to   switch  devices
  95. 95. RECURRING   REVENUES Is  every  sales  a  new  effort  or  will  it  result   in  follow-­‐up  revenues  and  purchases?   How  evenly  distributed  are  your  revenues   through  the  year?
  96. 96. EARN  BEFORE   YOU  PAY Are  you  earning  money  before   you  are  spending  it?
  97. 97. GAME  CHANGING   COST  STRUCTURE Is  your  cost  structure  substanSally   different  and  beTer  than  those  of   compeStors?
  98. 98. phone   calls  will  be  totally   free  in  the  future
  99. 99. GETTING  OTHERS   TO  DO  THE  WORK How  much  does  your  business   model  get  customers  or  third  parSes   to  create  value  for  you?
  100. 100. go   ahead  and  share   on  your  facebook   page...
  101. 101. ...that   will  make  my   plaWorm  more   valuable...
  102. 102. ...and   raise  my  plaWorm’s   value(aSon)...
  103. 103. SCALABILITY How  rapidly  and  how  easily  can  you   grow  your  business  model  without   hi[ng  roadblocks  (e.g.  infrastructure,   customer  support,  etc.)?
  104. 104. VIRALITY/ NETWORK  EFFECT How  viral  is  your  business  model?   How  substanSal  are  the  benefits  to   share  with  others?
  105. 105. PROTECTION  FROM   COMPETITION How  much  is  your  business  model   protecSng  you  from  compeSSon?
  106. 106. a product/ technology focus is just not enough anymore
  107. 107. break-out session
  108. 108. BusinessModelGeneration.com/canvas
  109. 109. The Business Model Canvas KEY PARTNERS KEY ACTIVITIES KEY RESOURCES COST STRUCTURE OFFER CUSTOMER RELATIONSHIPS CHANNELS REVENUE STREAMS CUSTOMER SEGMENTS
  110. 110. 4 testing business models with customer development
  111. 111. a business model might look great on paper... building block building block buildin g blo ck building block building block build ing block building block building block build ing block building block buil di blo ng ck buildin g block .. but after all it is only a...
  112. 112. ... a set of hypotheses guess guess guess guess guess uess g guess guess guess guess guess guess
  113. 113. StevenBlank.com/books.html
  114. 114. THANK YOU! BusinessModelGeneration.com AlexOsterwalder.com / @business_design BusinessModelAlchemist.com
  115. 115. BusinessModelGeneration.com/toolbox iPad stencil, actual scale, template by hortis, le studio. Feb. 2010. http://hortis.lestudio.ch screen: author: project: date:

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