0
Management2.0: Competitive Advantage through Business Model Design & Innovation Guadalajara, June 2007 Alexander Osterwald...
change is the process by which the future invades our lives -> Alvin Toffler
first of all: what are  YOUR  concerns? (buzz groups)
what are YOUR biggest  issues  and  fears  you face in strategic management today?
where do YOU see the largest  opportunities  to improve strategic management today?
your  expectations  for today?
what is innovation?
tell me about the most important innovations in your company
types of innovation?
technology innovation
process innovation
product & service innovation
business model innovation
four rings of innovation business model innovation product & service innovation process innovation technology innovation
which one of your examples qualify as  business model innovation ?
“ Business model innovation matters” and it is a top priority of CEOs
Operating Margin Growth in Excess of Competitive Peers  compound annual growth rate over five years [Source: IBM, CEOs are...
Benefits Cited by Business Model Innovators percent of respondents [Source: IBM, Global CEO Study 2006]
some  examples
NetJets: Fractional Ownership
Zopa.com: Peer-to-Peer lending
Bellum Concepts
why talk about business models?
how do you  describe  a business model?
without a common language
how do you  communicate  a business model?
<ul><li>Development plan </li></ul><ul><li>Quisque augue felis, commodo a, elementum id, faucibus id, sem. Aenean rutrum e...
Here CEOs 10° Managers 60° Here Staff 360° Ok
how do you  implement  a business model?
with outdated methods
how do you  measure  the  success  of a business model?
we don’t
how do you  change  a business model  and innovate ?
we re-invent the wheel
what is a business model?
VALUE PROPOSITION COST STRUCTURE CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS ACTIVITY CONFIGURATION CORE CAPABILITIES PARTNER...
case study
you become the new owner of a soccer club …
describe  YOUR  club’s business model
describing how a wealth management bank acquires its clients what  value proposition  do you offer,  to  which  customer  ...
VALUE PROPOSITION CUSTOMER SEGMENTS value proposition 1 value proposition 2 … target customer 1 target customer 2 … CUSTOM...
what value proposition do you offer, to which customer segments?  (example) spectacular offensive football  fans CUSTOMER ...
 
how do you  reach  your  customers ?
VALUE PROPOSITION COMMUNICATION  & DISTRIBUTION CHANNELS value proposition 1 value proposition 2 … channel 1 channel 2 … O...
spectacular offensive football  stadium & box office CUSTOMER OFFER how do you reach your customers?  (example) club owned...
how do you build relationships?
VALUE PROPOSITION CUSTOMER RELATIONSHIP value proposition 1 value proposition 2 … mechanism 1 mechanism 2 … OFFER CUSTOMER...
spectacular offensive football  personalized website (ticketing) CUSTOMER OFFER team blog (RSS) fans … how do you build re...
how do you  earn  your  money  with this business model?
VALUE PROPOSITION REVENUE STREAMS value proposition 1 value proposition 2 … revenue stream 1 revenue stream 2 … OFFER CUST...
spectacular offensive football  ticket sales FINANCE OFFER TV channel subscriber fees fans mobile phone TV subscriber fees...
the business models place in a company
the business model’s place in the company BUSINESS MODEL ORGANIZATION STRATEGY TECHNOLOGY
external forces
5 forces BUSINESS MODEL legal environment social environment competition customer needs technological change
the big picture  (business model)
<ul><li>team management </li></ul><ul><li>event management </li></ul><ul><li>venue management </li></ul><ul><li>ticketing ...
<ul><li>team management </li></ul><ul><li>event management </li></ul><ul><li>venue management </li></ul><ul><li>ticketing ...
<ul><li>team management </li></ul><ul><li>event management </li></ul><ul><li>venue management </li></ul><ul><li>ticketing ...
<ul><li>team management </li></ul><ul><li>event management </li></ul><ul><li>venue management </li></ul><ul><li>ticketing ...
<ul><li>team management </li></ul><ul><li>event management </li></ul><ul><li>venue management </li></ul><ul><li>ticketing ...
the process of designing innovative business models
the focus of the business model  innovator  & designer
user-centered
VALUE PROPOSITION COST STRUCTURE CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS ACTIVITY CONFIGURATION CORE CAPABILITIES PARTNER...
Nokia: Jan Chipchase
creativity & exploration
Googleplex
70:20: 10
API
VALUE PROPOSITION COST STRUCTURE CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS ACTIVITY CONFIGURATION CORE CAPABILITIES PARTNER...
continuous innovation
interdisciplinary approach
Grameen Phone Bangladesh
village telephony telecom infrastructure customer relationships villager activity configuration micro-credit Grameen Bank ...
holistic design
Apple iTunes & iPod
iPod cost structure lifestyle brand “ high-end” consumer prod. & softw. design hardware & softw. dev. hardware revenues iT...
strategic fit
the Amazon.com you know
Amazon Simple Storage Services (S3)
selling stuff on the Web IT infra customer relationships mass customer data services Amazon.com data grid partners selling...
the business modeler’s toolbox
co-creation
ideation
visualization
prototyping
the design process
1. identify interdisciplinary stakeholders -> set-up team
do you have to get the IT team out of their cubicles?
2. understand (business) environment –> frame problem
VALUE PROPOSITION COST STRUCTURE CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS ACTIVITY CONFIGURATION CORE CAPABILITIES PARTNER...
3. suspend reality -> ideate
4. bring back reality  -> prototype
5. chose suitable design -> decide
6. sketch out projects & workload  -> draw implementation plan
… 38 man/days Project C1 Distribution Channels 120 man/days Project V2 10 man/days Project V1 Value Proposition Estimated ...
7. outline key indicators to follow -> choose measures
… 38 man/days Project C1 Distribution Channels 120 man/days Project V2 10 man/days Project V1 Value Proposition Target lev...
8. select the right teams and people -> make responsible
… 38 man/days Project C1 Distribution Channels Ms. Tee 120 man/days Project V2 Mr. Jan 10 man/days Project V1 Value Propos...
9. execute the plan -> manage implementation & change
10. evaluate, learn and redesign -> manage improvement
designing blue oceans
>  market boundaries are not given >  they are reconstructed by the actions & beliefs of industry players
<ul><li>compete in existing markets </li></ul><ul><li>beat the competition </li></ul><ul><li>explore existing demand </li>...
differentiate your value proposition
<ul><li>a customer value proposition gives an overall view of a company's bundle of products, services and client advice. ...
what are the 5 most important competitive attributes that characterize a game console’s offer?  (e.g. price, performance, ...
1 2 3 4 - - <ul><li>most important attribute </li></ul><ul><li>second most important </li></ul><ul><li>… </li></ul><ul><li...
<ul><li>… </li></ul><ul><li>… </li></ul><ul><li>… </li></ul><ul><li>… </li></ul><ul><li>… </li></ul>
 
attribute 1 attribute 2 attribute 3 attribute 5 1 - low 5 - high 3 - medium bank’s performance [Kim & Mauborgne (2002) Cha...
live Excel
 
eliminate raise reduce create
 
 
strong & valuable approach, but limited view
VALUE PROPOSITION COST STRUCTURE CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS ACTIVITY CONFIGURATION CORE CAPABILITIES PARTNER...
examples
Goldcorp mining low costs through open exploration CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS exploiting mines “ geology pri...
 
from copyright to creative commons
Skype free VoIP & value added services software development website global (non segmented) deliver voice & video quality “...
1291 Cityhomes low cost accommodation New York low cost CUSTOMER RELATIONSHIPS the cost sensible renting out rooms keep do...
Tecnovate low-cost multi-lingual call center outsourcing low cost CUSTOMER RELATIONSHIPS European corporations ACTIVITY CO...
Netflix (niche) movies over the Internet COST STRUCTURE profile specialized clientele ACTIVITY CONFIGURATION large movie d...
from bloated head to the long tail
sodi platforms VALUE PROPOSITION COST STRUCTURE CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS ACTIVITY CONFIGURATION CORE CAPAB...
NetJets VALUE PROPOSITION COST STRUCTURE CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS ACTIVITY CONFIGURATION CORE CAPABILITIES...
house for all seasons VALUE PROPOSITION COST STRUCTURE CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS ACTIVITY CONFIGURATION COR...
WISE VALUE PROPOSITION COST STRUCTURE CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS ACTIVITY CONFIGURATION CORE CAPABILITIES PA...
Blyk VALUE PROPOSITION COST STRUCTURE CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS ACTIVITY CONFIGURATION CORE CAPABILITIES PA...
 
myfootballclub VALUE PROPOSITION COST STRUCTURE CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS ACTIVITY CONFIGURATION CORE CAPAB...
 
Alexander Osterwalder, PhD [email_address] www.arvetica.com
all photos from Flickr under a creative commons license authors indicated in comment page of ppt
When you stop learning, you stop competing. We scan the knowledge universe for you, across disciplines and industries. We ...
annexes
annex I business model template
VALUE PROPOSITION COST STRUCTURE CUSTOMER RELATIONSHIP TARGET CUSTOMER DISTRIBUTION CHANNEL VALUE CONFIGURATION CORE CAPAB...
VALUE PROPOSITION COST STRUCTURE CUSTOMER RELATIONSHIP TARGET CUSTOMER DISTRIBUTION CHANNEL VALUE CONFIGURATION CORE CAPAB...
VALUE PROPOSITION value proposition 1 value proposition 2 … OFFER describing a company’s offer
VALUE PROPOSITION TARGET CUSTOMER value proposition 1 value proposition 2 … target customer 1 target customer 2 … CUSTOMER...
VALUE PROPOSITION TARGET CUSTOMER DISTRIBUTION CHANNEL value proposition 1 value proposition 2 … distribution channel 1 di...
VALUE PROPOSITION TARGET CUSTOMER CUSTOMER RELATIONSHIP value proposition 1 value proposition 2 … relationship type 1 rela...
TARGET CUSTOMER REVENUE STREAM revenue stream 1 revenue stream 2 … target customer 1 target customer 2 … FINANCE VALUE PRO...
CORE CAPABILITIES VALUE PROPOSITION core capability 1 core capability 2 … value proposition 1 value proposition 2 … OFFER ...
describing what activities are required VALUE PROPOSITION VALUE CONFIGURATION CORE CAPABILITIES value proposition 1 value ...
describing the partners that leverage the business model VALUE PROPOSITION PARTNER NETWORK CORE CAPABILITIES value proposi...
VALUE PROPOSITION COST STRUCTURE cost account 1 cost account 2 … value proposition 1 value proposition 2 … FINANCE INFRAST...
annex ii other
 
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Business Model Design And Innovation For Competitive Advantage

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  • Transcript of "Business Model Design And Innovation For Competitive Advantage"

    1. 1. Management2.0: Competitive Advantage through Business Model Design & Innovation Guadalajara, June 2007 Alexander Osterwalder, PhD [email_address]
    2. 2. change is the process by which the future invades our lives -> Alvin Toffler
    3. 3. first of all: what are YOUR concerns? (buzz groups)
    4. 4. what are YOUR biggest issues and fears you face in strategic management today?
    5. 5. where do YOU see the largest opportunities to improve strategic management today?
    6. 6. your expectations for today?
    7. 7. what is innovation?
    8. 8. tell me about the most important innovations in your company
    9. 9. types of innovation?
    10. 10. technology innovation
    11. 11. process innovation
    12. 12. product & service innovation
    13. 13. business model innovation
    14. 14. four rings of innovation business model innovation product & service innovation process innovation technology innovation
    15. 15. which one of your examples qualify as business model innovation ?
    16. 16. “ Business model innovation matters” and it is a top priority of CEOs
    17. 17. Operating Margin Growth in Excess of Competitive Peers compound annual growth rate over five years [Source: IBM, CEOs are expanding the innovation horizon: important implications for CIOs]
    18. 18. Benefits Cited by Business Model Innovators percent of respondents [Source: IBM, Global CEO Study 2006]
    19. 19. some examples
    20. 20. NetJets: Fractional Ownership
    21. 21. Zopa.com: Peer-to-Peer lending
    22. 22. Bellum Concepts
    23. 23. why talk about business models?
    24. 24. how do you describe a business model?
    25. 25. without a common language
    26. 26. how do you communicate a business model?
    27. 27. <ul><li>Development plan </li></ul><ul><li>Quisque augue felis, commodo a, elementum id, faucibus id, sem. Aenean rutrum enim. Praesent pulvinar dignissim nisl. Cras a nunc. Donec tincidunt odio sit amet lacus. Pellentesque metus tortor, ullamcorper vitae, lobortis vel, euismod in, mi. Ut laoreet, tellus laoreet blandit mollis, massa purus posuere purus, quis molestie ligula massa eu metus. Duis placerat, nulla sit amet ornare interdum, neque nunc mollis leo, vitae porttitor mi orci sit amet neque. Donec at enim. In facilisis tellus gravida ligula. Phasellus ut lorem. Pellentesque ac tortor eget augue suscipit ullamcorper. Aenean eleifend porta orci. </li></ul><ul><li>Etiam at arcu. Vestibulum lacinia nunc in eros. Suspendisse potenti. Aliquam erat volutpat. Donec gravida. Lorem ipsum dolor sit amet, consectetuer adipiscing elit. Cum sociis natoque penatibus et magnis dis parturient montes, nascetur ridiculus mus. Maecenas vel enim et metus semper fringilla. Donec ornare arcu. Maecenas faucibus ligula convallis nibh. Mauris dui quam, congue eu, commodo nec, tristique in, enim. Nulla auctor semper urna. Quisque a elit eu purus iaculis vestibulum. Aliquam dictum risus at odio. Fusce at lorem et elit faucibus placerat. Aenean velit. Proin elit odio, blandit et, scelerisque quis, pulvinar a, dui. Nunc magna dolor, bibendum ut, accumsan congue, tincidunt sit amet, neque. Proin consequat tincidunt lacus. In urna dui, congue nec, tincidunt sit amet, facilisis imperdiet, lorem. </li></ul><ul><li>Morbi sed nibh. Vivamus vitae dolor. Ut bibendum volutpat mi. Pellentesque quis magna non lectus elementum pretium. Aliquam quis est vitae arcu consequat fringilla. Cras magna risus, placerat eget, egestas consectetuer, ornare vel, felis. Nam ornare justo id orci mattis ultricies. Morbi luctus. Ut pretium odio ac libero. Nunc sollicitudin pharetra lorem. Aenean scelerisque, lacus eget ullamcorper scelerisque, ipsum urna viverra mi, eget viverra quam eros eget velit. Ut lacinia feugiat purus. Cum sociis natoque penatibus et magnis dis parturient montes, nascetur ridiculus mus. Etiam nunc nisl, aliquam blandit, luctus id, commodo laoreet, sem. Phasellus sit amet orci ut sapien vulputate pellentesque. Pellentesque dapibus purus et quam. Nam sit amet magna in neque dignissim sodales. Aenean non justo nec magna lobortis volutpat. </li></ul>Strategy Lorem ipsum dolor sit amet, consectetuer adipiscing elit. Cras in tortor. Sed posuere erat. Maecenas pulvinar nulla eu magna. Vivamus semper, risus ut egestas pulvinar, lectus ante feugiat quam, sit amet congue odio lacus ac ipsum. Aliquam suscipit, est ut volutpat vulputate, nulla felis pulvinar libero, non ornare libero ipsum tristique tortor. Fusce sed lorem vitae justo feugiat malesuada. Donec aliquet. Vivamus semper eros nec diam. Vivamus sem arcu, imperdiet nec, congue ac, scelerisque vel, nulla. Donec et mauris. Integer a nulla vulputate pede consequat euismod. Praesent molestie urna nec leo. Proin eros. Maecenas ac sem nec dui sodales tempus. Maecenas suscipit egestas velit. Suspendisse vel tortor. Proin imperdiet, sem nec aliquet ultrices, nunc est egestas eros, non hendrerit magna eros eget augue. Maecenas sed leo vitae leo faucibus vulputate. Proin dignissim eros at augue. Nam luctus nulla non nibh. Nam at lorem ac mauris laoreet viverra. In placerat consequat nunc. Donec rhoncus nunc ac urna. Integer vestibulum condimentum orci. Fusce velit turpis, malesuada quis, scelerisque ut, eleifend vitae, ipsum. Vestibulum eu erat. Vestibulum justo nisl, tincidunt et, semper vel, tristique quis, eros. Vestibulum tempus, massa vel consectetuer congue, erat magna consequat purus, a facilisis orci nibh vitae purus. Nam tincidunt venenatis ligula. Nunc orci nulla, ornare quis, lobortis viverra, dapibus at, turpis. Suspendisse sit amet nisl at enim tincidunt blandit. Curabitur augue est, suscipit sed, egestas sit amet, vehicula vitae, tellus. Maecenas nec metus vel nisi interdum pellentesque. Words Text Text Text 18% 300% 12% 1% through inappropriate means
    28. 28. Here CEOs 10° Managers 60° Here Staff 360° Ok
    29. 29. how do you implement a business model?
    30. 30. with outdated methods
    31. 31. how do you measure the success of a business model?
    32. 32. we don’t
    33. 33. how do you change a business model and innovate ?
    34. 34. we re-invent the wheel
    35. 35. what is a business model?
    36. 36. VALUE PROPOSITION COST STRUCTURE CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS ACTIVITY CONFIGURATION CORE CAPABILITIES PARTNER NETWORK REVENUE STREAMS INFRASTRUCTURE CUSTOMER OFFER FINANCE a business model describes the value an organization offers to various customers and portrays the capabilities and partners required for creating, marketing, and delivering this value and relationship capital with the goal of generating profitable and sustainable revenue streams DISTRIBUTION CHANNELS [Osterwalder (2004) The Business Model Ontology] business model framework
    37. 37. case study
    38. 38. you become the new owner of a soccer club …
    39. 39. describe YOUR club’s business model
    40. 40. describing how a wealth management bank acquires its clients what value proposition do you offer, to which customer segments ?
    41. 41. VALUE PROPOSITION CUSTOMER SEGMENTS value proposition 1 value proposition 2 … target customer 1 target customer 2 … CUSTOMER OFFER what value proposition do you offer, to which customer segments? (model)
    42. 42. what value proposition do you offer, to which customer segments? (example) spectacular offensive football fans CUSTOMER OFFER advertising space & high visibility advertisers … …
    43. 44. how do you reach your customers ?
    44. 45. VALUE PROPOSITION COMMUNICATION & DISTRIBUTION CHANNELS value proposition 1 value proposition 2 … channel 1 channel 2 … OFFER how do you reach your customers? (model) CUSTOMER SEGMENTS target customer 1 target customer 2 … CUSTOMER
    45. 46. spectacular offensive football stadium & box office CUSTOMER OFFER how do you reach your customers? (example) club owned TV channel fans mobile phone TV advertising space & high visibility sales force advertisers
    46. 47. how do you build relationships?
    47. 48. VALUE PROPOSITION CUSTOMER RELATIONSHIP value proposition 1 value proposition 2 … mechanism 1 mechanism 2 … OFFER CUSTOMER SEGMENTS target customer 1 target customer 2 … CUSTOMER how do you build relationships with your customers? (model)
    48. 49. spectacular offensive football personalized website (ticketing) CUSTOMER OFFER team blog (RSS) fans … how do you build relationships with your customers? (example)
    49. 50. how do you earn your money with this business model?
    50. 51. VALUE PROPOSITION REVENUE STREAMS value proposition 1 value proposition 2 … revenue stream 1 revenue stream 2 … OFFER CUSTOMER SEGMENTS target customer 1 target customer 2 … FINANCE how do you earn your money with this business model? (model)
    51. 52. spectacular offensive football ticket sales FINANCE OFFER TV channel subscriber fees fans mobile phone TV subscriber fees advertising space & high visibility advertising revenues advertisers how do you earn your money with this business model? (example)
    52. 53. the business models place in a company
    53. 54. the business model’s place in the company BUSINESS MODEL ORGANIZATION STRATEGY TECHNOLOGY
    54. 55. external forces
    55. 56. 5 forces BUSINESS MODEL legal environment social environment competition customer needs technological change
    56. 57. the big picture (business model)
    57. 58. <ul><li>team management </li></ul><ul><li>event management </li></ul><ul><li>venue management </li></ul><ul><li>ticketing </li></ul><ul><li>VIP relationship management </li></ul><ul><li>video crew </li></ul><ul><li>… </li></ul><ul><li>attractive soccer </li></ul><ul><li>360 º event (match, dining, shopping) </li></ul><ul><li>exclusive VIP lounges </li></ul><ul><li>merchandising </li></ul><ul><li>renting out stadium </li></ul><ul><li>… </li></ul><ul><li>stadium </li></ul><ul><li>POS networks </li></ul><ul><li>club website (+online TV) </li></ul><ul><li>club cable TV channel </li></ul><ul><li>mobile phone TV channel </li></ul><ul><li>… </li></ul><ul><li>play attractive & win games </li></ul><ul><li>brand management </li></ul><ul><li>video images </li></ul><ul><li>channel management </li></ul><ul><li>fans (families, etc.) </li></ul><ul><li>fan groups </li></ul><ul><li>companies </li></ul><ul><li>event/concert organizers </li></ul><ul><li>advertisers </li></ul><ul><li>… </li></ul><ul><li>team & maintenance </li></ul><ul><li>infrastructure management </li></ul><ul><li>marketing </li></ul><ul><li>video </li></ul><ul><li>Ticket fees & season tickets </li></ul><ul><li>online TV subscription revenues </li></ul><ul><li>revenue sharing cable & mobile phone TV </li></ul><ul><li>renting out stadium for events </li></ul><ul><li>advertising revenues </li></ul><ul><li>merchandising revenues </li></ul><ul><li>food & beverages </li></ul><ul><li>ticketing services </li></ul><ul><li>promoters </li></ul><ul><li>ad placement </li></ul><ul><li>telecom operator </li></ul><ul><li>TV operator </li></ul><ul><li>… </li></ul><ul><li>personalized web profile </li></ul><ul><li>newsletter </li></ul><ul><li>team blog (RSS) </li></ul><ul><li>VIP events with team </li></ul><ul><li>… </li></ul>Value Proposition Distribution Channel Target Customer Customer Relationship Partner Network Activity Configuration Core Capability Cost Structure Revenue Model the big picture
    58. 59. <ul><li>team management </li></ul><ul><li>event management </li></ul><ul><li>venue management </li></ul><ul><li>ticketing </li></ul><ul><li>VIP relationship management </li></ul><ul><li>video crew </li></ul><ul><li>… </li></ul><ul><li>attractive soccer </li></ul><ul><li>360 º event (match, dining, shopping) </li></ul><ul><li>exclusive VIP lounges </li></ul><ul><li>merchandising </li></ul><ul><li>renting out stadium </li></ul><ul><li>… </li></ul><ul><li>stadium </li></ul><ul><li>POS networks </li></ul><ul><li>club website (+online TV) </li></ul><ul><li>club cable TV channel </li></ul><ul><li>mobile phone TV channel </li></ul><ul><li>… </li></ul><ul><li>play attractive & win games </li></ul><ul><li>brand management </li></ul><ul><li>video images </li></ul><ul><li>channel management </li></ul><ul><li>fans (families, etc.) </li></ul><ul><li>fan groups </li></ul><ul><li>companies </li></ul><ul><li>event/concert organizers </li></ul><ul><li>advertisers </li></ul><ul><li>… </li></ul><ul><li>team & maintenance </li></ul><ul><li>infrastructure management </li></ul><ul><li>marketing </li></ul><ul><li>video </li></ul><ul><li>Ticket fees & season tickets </li></ul><ul><li>online TV subscription revenues </li></ul><ul><li>revenue sharing cable & mobile phone TV </li></ul><ul><li>renting out stadium for events </li></ul><ul><li>advertising revenues </li></ul><ul><li>merchandising revenues </li></ul><ul><li>food & beverages </li></ul><ul><li>ticketing services </li></ul><ul><li>promoters </li></ul><ul><li>ad placement </li></ul><ul><li>telecom operator </li></ul><ul><li>TV operator </li></ul><ul><li>… </li></ul><ul><li>personalized web profile </li></ul><ul><li>newsletter </li></ul><ul><li>team blog (RSS) </li></ul><ul><li>VIP events with team </li></ul><ul><li>… </li></ul>Value Proposition Distribution Channel Target Customer Customer Relationship Partner Network Activity Configuration Core Capability Cost Structure Revenue Model value creates revenues
    59. 60. <ul><li>team management </li></ul><ul><li>event management </li></ul><ul><li>venue management </li></ul><ul><li>ticketing </li></ul><ul><li>VIP relationship management </li></ul><ul><li>video crew </li></ul><ul><li>… </li></ul><ul><li>attractive soccer </li></ul><ul><li>360 º event (match, dining, shopping) </li></ul><ul><li>exclusive VIP lounges </li></ul><ul><li>merchandising </li></ul><ul><li>renting out stadium </li></ul><ul><li>… </li></ul><ul><li>stadium </li></ul><ul><li>POS networks </li></ul><ul><li>club website (+online TV) </li></ul><ul><li>club cable TV channel </li></ul><ul><li>mobile phone TV channel </li></ul><ul><li>… </li></ul><ul><li>play attractive & win games </li></ul><ul><li>brand management </li></ul><ul><li>video images </li></ul><ul><li>channel management </li></ul><ul><li>fans (families, etc.) </li></ul><ul><li>fan groups </li></ul><ul><li>companies </li></ul><ul><li>event/concert organizers </li></ul><ul><li>advertisers </li></ul><ul><li>… </li></ul><ul><li>team & maintenance </li></ul><ul><li>infrastructure management </li></ul><ul><li>marketing </li></ul><ul><li>video </li></ul><ul><li>Ticket fees & season tickets </li></ul><ul><li>online TV subscription revenues </li></ul><ul><li>revenue sharing cable & mobile phone TV </li></ul><ul><li>renting out stadium for events </li></ul><ul><li>advertising revenues </li></ul><ul><li>merchandising revenues </li></ul><ul><li>food & beverages </li></ul><ul><li>ticketing services </li></ul><ul><li>promoters </li></ul><ul><li>ad placement </li></ul><ul><li>telecom operator </li></ul><ul><li>TV operator </li></ul><ul><li>… </li></ul><ul><li>personalized web profile </li></ul><ul><li>newsletter </li></ul><ul><li>team blog (RSS) </li></ul><ul><li>VIP events with team </li></ul><ul><li>… </li></ul>Value Proposition Distribution Channel Target Customer Customer Relationship Partner Network Activity Configuration Core Capability Cost Structure Revenue Model creating value requires infrastructure
    60. 61. <ul><li>team management </li></ul><ul><li>event management </li></ul><ul><li>venue management </li></ul><ul><li>ticketing </li></ul><ul><li>VIP relationship management </li></ul><ul><li>video crew </li></ul><ul><li>… </li></ul><ul><li>attractive soccer </li></ul><ul><li>360 º event (match, dining, shopping) </li></ul><ul><li>exclusive VIP lounges </li></ul><ul><li>merchandising </li></ul><ul><li>renting out stadium </li></ul><ul><li>… </li></ul><ul><li>stadium </li></ul><ul><li>POS networks </li></ul><ul><li>club website (+online TV) </li></ul><ul><li>club cable TV channel </li></ul><ul><li>mobile phone TV channel </li></ul><ul><li>… </li></ul><ul><li>play attractive & win games </li></ul><ul><li>brand management </li></ul><ul><li>video images </li></ul><ul><li>channel management </li></ul><ul><li>fans (families, etc.) </li></ul><ul><li>fan groups </li></ul><ul><li>companies </li></ul><ul><li>event/concert organizers </li></ul><ul><li>advertisers </li></ul><ul><li>… </li></ul><ul><li>team & maintenance </li></ul><ul><li>infrastructure management </li></ul><ul><li>marketing </li></ul><ul><li>video </li></ul><ul><li>Ticket fees & season tickets </li></ul><ul><li>online TV subscription revenues </li></ul><ul><li>revenue sharing cable & mobile phone TV </li></ul><ul><li>renting out stadium for events </li></ul><ul><li>advertising revenues </li></ul><ul><li>merchandising revenues </li></ul><ul><li>food & beverages </li></ul><ul><li>ticketing services </li></ul><ul><li>promoters </li></ul><ul><li>ad placement </li></ul><ul><li>telecom operator </li></ul><ul><li>TV operator </li></ul><ul><li>… </li></ul><ul><li>personalized web profile </li></ul><ul><li>newsletter </li></ul><ul><li>team blog (RSS) </li></ul><ul><li>VIP events with team </li></ul><ul><li>… </li></ul>Value Proposition Distribution Channel Target Customer Customer Relationship Partner Network Activity Configuration Core Capability Cost Structure Revenue Model infrastructure generates costs
    61. 62. <ul><li>team management </li></ul><ul><li>event management </li></ul><ul><li>venue management </li></ul><ul><li>ticketing </li></ul><ul><li>VIP relationship management </li></ul><ul><li>video crew </li></ul><ul><li>… </li></ul><ul><li>attractive soccer </li></ul><ul><li>360 º event (match, dining, shopping) </li></ul><ul><li>exclusive VIP lounges </li></ul><ul><li>merchandising </li></ul><ul><li>renting out stadium </li></ul><ul><li>… </li></ul><ul><li>stadium </li></ul><ul><li>POS networks </li></ul><ul><li>club website (+online TV) </li></ul><ul><li>club cable TV channel </li></ul><ul><li>mobile phone TV channel </li></ul><ul><li>… </li></ul><ul><li>play attractive & win games </li></ul><ul><li>brand management </li></ul><ul><li>video images </li></ul><ul><li>channel management </li></ul><ul><li>fans (families, etc.) </li></ul><ul><li>fan groups </li></ul><ul><li>companies </li></ul><ul><li>event/concert organizers </li></ul><ul><li>advertisers </li></ul><ul><li>… </li></ul><ul><li>team & maintenance </li></ul><ul><li>infrastructure management </li></ul><ul><li>marketing </li></ul><ul><li>video </li></ul><ul><li>Ticket fees & season tickets </li></ul><ul><li>online TV subscription revenues </li></ul><ul><li>revenue sharing cable & mobile phone TV </li></ul><ul><li>renting out stadium for events </li></ul><ul><li>advertising revenues </li></ul><ul><li>merchandising revenues </li></ul><ul><li>food & beverages </li></ul><ul><li>ticketing services </li></ul><ul><li>promoters </li></ul><ul><li>ad placement </li></ul><ul><li>telecom operator </li></ul><ul><li>TV operator </li></ul><ul><li>… </li></ul><ul><li>personalized web profile </li></ul><ul><li>newsletter </li></ul><ul><li>team blog (RSS) </li></ul><ul><li>VIP events with team </li></ul><ul><li>… </li></ul>Value Proposition Distribution Channel Target Customer Customer Relationship Partner Network Activity Configuration Core Capability Cost Structure Revenue Model the profit zone <
    62. 63. the process of designing innovative business models
    63. 64. the focus of the business model innovator & designer
    64. 65. user-centered
    65. 66. VALUE PROPOSITION COST STRUCTURE CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS ACTIVITY CONFIGURATION CORE CAPABILITIES PARTNER NETWORK REVENUE STREAMS DISTRIBUTION CHANNELS
    66. 67. Nokia: Jan Chipchase
    67. 68. creativity & exploration
    68. 69. Googleplex
    69. 70. 70:20: 10
    70. 71. API
    71. 72. VALUE PROPOSITION COST STRUCTURE CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS ACTIVITY CONFIGURATION CORE CAPABILITIES PARTNER NETWORK REVENUE STREAMS DISTRIBUTION CHANNELS
    72. 73. continuous innovation
    73. 74. interdisciplinary approach
    74. 75. Grameen Phone Bangladesh
    75. 76. village telephony telecom infrastructure customer relationships villager activity configuration micro-credit Grameen Bank mobile phone revenues source of revenue mobile telephony billing telecom operators Grameen Bank (billing) phone ladies phone ladies
    76. 77. holistic design
    77. 78. Apple iTunes & iPod
    78. 79. iPod cost structure lifestyle brand “ high-end” consumer prod. & softw. design hardware & softw. dev. hardware revenues iTunes multimedia downloads e-commerce multimedia rights mgmt iBook content producers Apple stores dealer network multimedia revenues hardware suppliers brand management hardware distribution content distribution content
    79. 80. strategic fit
    80. 81. the Amazon.com you know
    81. 82. Amazon Simple Storage Services (S3)
    82. 83. selling stuff on the Web IT infra customer relationships mass customer data services Amazon.com data grid partners selling stuff Amazon S3 Amazon.com Internet API Web2.0 companies warehousing & distribution distribution content management product selection A9 product search data storage fees product search search engine revenues e-commerce sites Internet marketing
    83. 84. the business modeler’s toolbox
    84. 85. co-creation
    85. 86. ideation
    86. 87. visualization
    87. 88. prototyping
    88. 89. the design process
    89. 90. 1. identify interdisciplinary stakeholders -> set-up team
    90. 91. do you have to get the IT team out of their cubicles?
    91. 92. 2. understand (business) environment –> frame problem
    92. 93. VALUE PROPOSITION COST STRUCTURE CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS ACTIVITY CONFIGURATION CORE CAPABILITIES PARTNER NETWORK REVENUE STREAMS DISTRIBUTION CHANNELS [Osterwalder (2004) The Business Model Ontology] various starting points / depending on context
    93. 94. 3. suspend reality -> ideate
    94. 95. 4. bring back reality -> prototype
    95. 96. 5. chose suitable design -> decide
    96. 97. 6. sketch out projects & workload -> draw implementation plan
    97. 98. … 38 man/days Project C1 Distribution Channels 120 man/days Project V2 10 man/days Project V1 Value Proposition Estimated workload Project name Area
    98. 99. 7. outline key indicators to follow -> choose measures
    99. 100. … 38 man/days Project C1 Distribution Channels 120 man/days Project V2 10 man/days Project V1 Value Proposition Target level KPI (measure) Estimated workload Project name Area
    100. 101. 8. select the right teams and people -> make responsible
    101. 102. … 38 man/days Project C1 Distribution Channels Ms. Tee 120 man/days Project V2 Mr. Jan 10 man/days Project V1 Value Proposition leader Target level KPI (measure) Estimated workload Project name Area
    102. 103. 9. execute the plan -> manage implementation & change
    103. 104. 10. evaluate, learn and redesign -> manage improvement
    104. 105. designing blue oceans
    105. 106. > market boundaries are not given > they are reconstructed by the actions & beliefs of industry players
    106. 107. <ul><li>compete in existing markets </li></ul><ul><li>beat the competition </li></ul><ul><li>explore existing demand </li></ul><ul><li>make the value/cost trad-off </li></ul><ul><li>align with differentiation OR low cost </li></ul><ul><li>create uncontested markets </li></ul><ul><li>make competition irrelevant </li></ul><ul><li>create & capture new demand </li></ul><ul><li>break value/cost trad-off </li></ul><ul><li>align with differentiation AND low cost </li></ul>RED OCEAN BLUE OCEAN
    107. 108. differentiate your value proposition
    108. 109. <ul><li>a customer value proposition gives an overall view of a company's bundle of products, services and client advice. </li></ul><ul><li>it is the sum of the total benefits a customer is promised to receive in return for a payment (or other value transfer) </li></ul>working definition value proposition
    109. 110. what are the 5 most important competitive attributes that characterize a game console’s offer? (e.g. price, performance, design) attribute 2 e.g. price attribute 1 e.g. performance group warm-up
    110. 111. 1 2 3 4 - - <ul><li>most important attribute </li></ul><ul><li>second most important </li></ul><ul><li>… </li></ul><ul><li>… </li></ul>5 attributes
    111. 112. <ul><li>… </li></ul><ul><li>… </li></ul><ul><li>… </li></ul><ul><li>… </li></ul><ul><li>… </li></ul>
    112. 114. attribute 1 attribute 2 attribute 3 attribute 5 1 - low 5 - high 3 - medium bank’s performance [Kim & Mauborgne (2002) Charting Your Company's Future] draw a value proposition attribute 4
    113. 115. live Excel
    114. 117. eliminate raise reduce create
    115. 120. strong & valuable approach, but limited view
    116. 121. VALUE PROPOSITION COST STRUCTURE CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS ACTIVITY CONFIGURATION CORE CAPABILITIES PARTNER NETWORK REVENUE STREAMS DISTRIBUTION CHANNELS
    117. 122. examples
    118. 123. Goldcorp mining low costs through open exploration CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS exploiting mines “ geology prize” 500’000 $US REVENUE STREAMS DISTRIBUTION CHANNELS Goldcorp publicly shared all of its geological data and offered US$ 500’000 in prizes for determining where they might find the next 6 million ounces of gold research
    119. 125. from copyright to creative commons
    120. 126. Skype free VoIP & value added services software development website global (non segmented) deliver voice & video quality “ eBay” large scale low margin internet software development free voice-over-IP VoIP telephony & value-added services
    121. 127. 1291 Cityhomes low cost accommodation New York low cost CUSTOMER RELATIONSHIPS the cost sensible renting out rooms keep down costs apartment owners rents DISTRIBUTION CHANNELS find demand young curious Swiss low-cost hotel/rental in New York City
    122. 128. Tecnovate low-cost multi-lingual call center outsourcing low cost CUSTOMER RELATIONSHIPS European corporations ACTIVITY CONFIGURATION keep down costs “ import” young curious Europeans to India to work REVENUE STREAMS DISTRIBUTION CHANNELS business process outsourcing “up-side down” in India
    123. 129. Netflix (niche) movies over the Internet COST STRUCTURE profile specialized clientele ACTIVITY CONFIGURATION large movie database independent films REVENUE STREAMS Web online movie rental (with large niche movie database)
    124. 130. from bloated head to the long tail
    125. 131. sodi platforms VALUE PROPOSITION COST STRUCTURE CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS ACTIVITY CONFIGURATION CORE CAPABILITIES PARTNER NETWORK REVENUE STREAMS DISTRIBUTION CHANNELS
    126. 132. NetJets VALUE PROPOSITION COST STRUCTURE CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS ACTIVITY CONFIGURATION CORE CAPABILITIES PARTNER NETWORK REVENUE STREAMS DISTRIBUTION CHANNELS
    127. 133. house for all seasons VALUE PROPOSITION COST STRUCTURE CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS ACTIVITY CONFIGURATION CORE CAPABILITIES PARTNER NETWORK REVENUE STREAMS DISTRIBUTION CHANNELS
    128. 134. WISE VALUE PROPOSITION COST STRUCTURE CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS ACTIVITY CONFIGURATION CORE CAPABILITIES PARTNER NETWORK REVENUE STREAMS DISTRIBUTION CHANNELS
    129. 135. Blyk VALUE PROPOSITION COST STRUCTURE CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS ACTIVITY CONFIGURATION CORE CAPABILITIES PARTNER NETWORK REVENUE STREAMS DISTRIBUTION CHANNELS
    130. 137. myfootballclub VALUE PROPOSITION COST STRUCTURE CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS ACTIVITY CONFIGURATION CORE CAPABILITIES PARTNER NETWORK REVENUE STREAMS DISTRIBUTION CHANNELS
    131. 139. Alexander Osterwalder, PhD [email_address] www.arvetica.com
    132. 140. all photos from Flickr under a creative commons license authors indicated in comment page of ppt
    133. 141. When you stop learning, you stop competing. We scan the knowledge universe for you, across disciplines and industries. We transfer the best methods, tools and theory in business to your organization. we build knowledge Change does not happen accidentally it has to be managed. We help you align strategy, people and processes with respect to your organizational culture and values. we manage change Specific problems require specific skills that you do not necessarily dispose of in-house. Through our interdisciplinary network we connect you with leading domain experts. we connect Having a great vision is not sufficient - implementation counts. We help you reconcile long term views with short term actions. We make strategy everyone's job by translating it into pragmatic and prioritized projects. we operationalize Nobody knows your business environment better than yourself. We co-design your strategic vision by building on your knowledge. Through group thinking we find the right answers to the right questions together we co-create
    134. 142. annexes
    135. 143. annex I business model template
    136. 144. VALUE PROPOSITION COST STRUCTURE CUSTOMER RELATIONSHIP TARGET CUSTOMER DISTRIBUTION CHANNEL VALUE CONFIGURATION CORE CAPABILITIES PARTNER NETWORK REVENUE STREAMS INFRASTRUCTURE CUSTOMER OFFER FINANCE a business model describes the value an organization offers to various customers and portrays the capabilities and partners required for creating, marketing, and delivering this value and relationship capital with the goal of generating profitable and sustainable revenue streams
    137. 145. VALUE PROPOSITION COST STRUCTURE CUSTOMER RELATIONSHIP TARGET CUSTOMER DISTRIBUTION CHANNEL VALUE CONFIGURATION CORE CAPABILITIES PARTNER NETWORK REVENUE STREAMS gives an overall view of a company's bundle of products and services portrays the network of cooperative agreements with other companies describes the channels to communicate and get in touch with customers describes the arrangement of activities and resources explains the relationships a company establishes with its customers sums up the monetary consequences to run a business model describes the revenue streams through which money is earned describes the customers a company wants to offer value to outlines the capabilities required to run a company's business model INFRASTRUCTURE CUSTOMER OFFER FINANCE describing a company’s business model
    138. 146. VALUE PROPOSITION value proposition 1 value proposition 2 … OFFER describing a company’s offer
    139. 147. VALUE PROPOSITION TARGET CUSTOMER value proposition 1 value proposition 2 … target customer 1 target customer 2 … CUSTOMER OFFER describing who a company offers value to
    140. 148. VALUE PROPOSITION TARGET CUSTOMER DISTRIBUTION CHANNEL value proposition 1 value proposition 2 … distribution channel 1 distribution channel 2 … target customer 1 target customer 2 … CUSTOMER OFFER describing how a company reaches its customers
    141. 149. VALUE PROPOSITION TARGET CUSTOMER CUSTOMER RELATIONSHIP value proposition 1 value proposition 2 … relationship type 1 relationship type 2 … target customer 1 target customer 2 … CUSTOMER OFFER describing the relationships a company builds
    142. 150. TARGET CUSTOMER REVENUE STREAM revenue stream 1 revenue stream 2 … target customer 1 target customer 2 … FINANCE VALUE PROPOSITION value proposition 1 value proposition 2 … OFFER CUSTOMER describing how a company makes money
    143. 151. CORE CAPABILITIES VALUE PROPOSITION core capability 1 core capability 2 … value proposition 1 value proposition 2 … OFFER INFRASTRUCTURE describing what capabilities are required
    144. 152. describing what activities are required VALUE PROPOSITION VALUE CONFIGURATION CORE CAPABILITIES value proposition 1 value proposition 2 … core capability 1 core capability 2 … activity 1 activity 2 … INFRASTRUCTURE OFFER
    145. 153. describing the partners that leverage the business model VALUE PROPOSITION PARTNER NETWORK CORE CAPABILITIES value proposition 1 value proposition 2 … core capability 1 core capability 2 … partner 1 partner 2 … INFRASTRUCTURE OFFER
    146. 154. VALUE PROPOSITION COST STRUCTURE cost account 1 cost account 2 … value proposition 1 value proposition 2 … FINANCE INFRASTRUCTURE OFFER describing the costs of a business model CORE CAPABILITIES core capability 1 core capability 2 …
    147. 155. annex ii other
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