Designing Tangible Business Models

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DG512 Business Model Design is an assignment within the Industrial Design Bachelor Program at the Eindhoven University of Technology. It is part of the Competency Area Business Process Design. …

DG512 Business Model Design is an assignment within the Industrial Design Bachelor Program at the Eindhoven University of Technology. It is part of the Competency Area Business Process Design. Industrial Design students develop their business acumen during an intensive, pressure-cooker, workshop-based 6 weeks assignment by designing the business model for a real-life business case and deploying their design skills by building a tangible representation of the business model. DG512 Business Model Design is an experiment at the intersection of Education, Research, and Business. The responsible teacher for DG512 Business Model Design is Camilla van den Boom MSc, Department of Industrial Design at Eindhoven University of Technology.

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  • 1. Designing Tangible Business Models DG512 Assignment Business Model Design Spotify 2011-2012 An experiment at the intersection of Education, Research and Business Eindhoven University of Technology Department of Industrial Design Competency Area Business Process Design Camilla van den Boom MSc DG512 Assignment 3 2011-2012 Spotify
  • 2. “I thought business modeling was a commercial process, but it is not. The commercial part of it is the selling aspect. Business modeling is a design process. I really enjoyed to hack the canvas every week.” Industrial Design Student Eindhoven University of Technology
  • 3. The DG512 weekly habit of hacking the business model canvas
  • 4. What is this about?
  • 5. Business…
  • 6. …and design
  • 7. …becomes business design
  • 8. DG512 Assignment Business Model Design Camilla van den Boom MSc Designing Tangible Business Models An experiment at the intersection of Education, Research and Business Eindhoven University of Technology Department of Industrial Design Competency Area Business Process Design 2011-2012
  • 9. Expectations?
  • 10. Industrial Design Student “This business modeling assignment seems to be a wise thing to do for me being an Industrial Design Student. It might be wise for me being a designer to develop this competency area.”
  • 11. Industrial Design Student “I visited a workshop before on business models. It seems to be an interesting area. It is better to do this at an earlier stage in my studies. It is better for my designs.”
  • 12. Industrial Design Student “I am lacking in the Industrial Design competency area ‘Business Process Design’, so I need to be here. I never liked ‘business’. I am here because I need to be here.”
  • 13. Industrial Design Student “I am interesting in the combination between business and design. How to combine business with design. I would like to learn more about the business side of design.”
  • 14. Industrial Design Student “I have heard about this business modeling assignment. I am interested in seeing things from a different perspective. I red the description of the business modeling assignment and it immediately got my attention.”
  • 15. Industrial Design Student “I have never done anything with business before. This is the first time. I would like to learn how to integrate ‘Business Process Design’ into my projects.”
  • 16. Industrial Design Student “I am interested in working with different stakeholders. The business model canvas seems to be a good model for doing that. It seems to be a good basic structure to hold on to. I need that.”
  • 17. Industrial Design Student “I prefer to work with models instead of big chunks of text.”
  • 18. Guiding rules
  • 19. Help me to help you
  • 20. Pressure cooker concept (theory, practice, feedback and homework)
  • 21. Learning by experience and never stop asking the right questions
  • 22. Feedback is your own responsibility
  • 23. Case
  • 24. The Music Industry
  • 25. A dynamic market a global industry characterized by many players and fierce competition
  • 26. The role of music in peoples’ lives “Music is something most people love, that no one dislikes and that touches everyone throughout their lives” BrandAmp study, Millward Brown, 2007
  • 27. “We are going to provide music to everyone (any time, any place) for free in a legal way” www.spotify.com
  • 28. “Our dream is to collect all the world’s music and make it accessible to everyone.” www.spotify.com
  • 29. “Spotify aggregates content from right holders, distributes it to consumers through the technical platform and monetizes both through a free, ad funded service, and a subscription service.” www.spotify.com
  • 30. Assignment
  • 31. “What does the business model look like?”
  • 32. “How to build a tangible business model?”
  • 33. Combine business and design!
  • 34. Lectures
  • 35. What is it all about?
  • 36. WHAT DOES (S)HE THINK AND FEEL? What is important? Sorrows? Aspirations? WHAT DOES (S)HE HEAR? WHAT DOES (S)HE SEE? What do friends say? What does the boss say? What do media influencers say? Environment? Friends? Market offer? WHAT DOES (S)HE SAY AND DO? Attitude in public? Appearance? Behaviors? PAIN GAIN Fears? Frustrations? Obstacles? Requests and needs? Measures of success? Obstacles? www.xplane.com
  • 37. The Business Model Canvas KEY PARTNERS KEY ACTIVITIES VALUE PROPOSITION KEY RESOURCES WHAT IS THE VALUE PROPOSITION? COST STRUCTURE RELATIONSHIPS CUSTOMER SEGMENTS CHANNELS WHO IS THE CUSTOMER? REVENUE STREAMS www.businessmodelgeneration.com
  • 38. The Business Model Canvas KEY PARTNERS KEY ACTIVITIES VALUE PROPOSITION RELATIONSHIPS CUSTOMER SEGMENTS HOW DO WE ENGAGE THE CUSTOMER? KEY RESOURCES WHAT IS THE VALUE PROPOSITION? WHO IS THE CUSTOMER? CHANNELS WHAT CHANNELS DO WE USE? COST STRUCTURE REVENUE STREAMS WHAT DOES IT BRING IN TERMS OF REVENUES? www.businessmodelgeneration.com
  • 39. The Business Model Canvas KEY PARTNERS KEY ACTIVITIES VALUE PROPOSITION RELATIONSHIPS HOW DO WE ENGAGE THE CUSTOMER? WHAT ARE THE KEY ACTIVITIES? WHO ARE THE KEY PARTNERS? KEY RESOURCES CUSTOMER SEGMENTS WHAT IS THE VALUE PROPOSITION? WHAT ARE THE KEY RESOURCES? COST STRUCTURE WHAT DOES THE COST STRUCTURE LOOK LIKE? WHO IS THE CUSTOMER? CHANNELS WHAT CHANNELS DO WE USE? REVENUE STREAMS WHAT DOES IT BRING IN TERMS OF REVENUES? www.businessmodelgeneration.com
  • 40. Homework
  • 41. Storytelling
  • 42. Pitching to an external panel
  • 43. Tangible business models
  • 44. Final report
  • 45. Evaluation
  • 46. Industrial Design Student “This business model assignment made the combination between business and design clear. I learn how the business will look upon my product. I learned how to use business in design. Business modeling is very useful in the design process.”
  • 47. Industrial Design Student “This business model assignment was a first introduction to business. It is a good way to start an education. I will bring these insights with me in the rest of my education.”
  • 48. Industrial Design Student “I thought business modeling was a commercial process, but it is not. The commercial part of it is the selling aspect. Business modeling is a design process. I really enjoyed to hack the canvas every week!”
  • 49. Industrial Design Student “I learned a lot. I now know how to set up a business and a business model. I am curious about the rest!”
  • 50. Industrial Design Student “Since I started this business model assignment, I start to see business model canvases in all settings. There are business models everywhere!”
  • 51. Industrial Design Student “This assignment was a rollercoaster, with a clear stop at the end. I now see the light and I now can discover. I learned how business is created in the real world. I now look differently upon business.”
  • 52. Industrial Design Student “The tangible designs of the business model made it more clear. I now use the business model canvas to look differently on design.”
  • 53. Industrial Design Student “It is not only the business model canvas. It is also the process behind business modeling. To think about it. To present it. To keep improving it. To pitch it again. By working iteratively with the canvas, it became more clear along the way.”
  • 54. Industrial Design Student “I like the way we presented. How we were taught how to pitch our ideas in front of an audience.”
  • 55. Industrial Design Student “It is nice to see that everybody told a different story with the business model canvas.”
  • 56. Industrial Design Student “I learned a lot about enthusiasm. The enthusiasm that is needed to get an audience interested. It is not only about business. It is also about presenting and showcasing your ideas, and telling your story.”
  • 57. Industrial Design Student “I really enjoyed the positive attitude. How we during this assignment only got feedback on what we did very well. Our strengths were highlighted. You never brought forward the negative aspects of our work. We learned from the positive aspects, and from each other.”
  • 58. Industrial Design Student “Many teachers and coaches bring out the negative parts in our work and performance. It is never good enough. That is not productive. It is the good things that you have to move on with and to further develop.”
  • 59. Industrial Design Student “I learned that I do not have to do all of it. I need to focus on the part that I am good at. It is about going from being good to being great. This is a much better way of using your own qualities. The education system can learn a lot from this. And… I learned I had a skill I did not know! Presenting!”
  • 60. Industrial Design Student “The way we were taught to give feedback to each other was great. We saw the business model iterations and the tangible design develop every week and we could support each other along the way. We were taught to define what we liked in other people’s designs.”
  • 61. Industrial Design Student “We see a lot of different ways of presenting. It tells us that people work differently and that there are different ways to reach the same results. We saw diverse things and learned from all of it.”
  • 62. Industrial Design Student “This assignment was inspiring me. Normal business lectures are boring. Normally, there are professors talking and us students taking notes, trying to remember as much as possible. It is hard to understand. The message does not get across. It is dull and boring. This assignment was based on actualities. It was interactive. It was fun.”
  • 63. Industrial Design Student “We were kept motivated to enhance the deliverables every week. It was great to deepen our knowledge about one specific business case and to learn from it, step by step. The energy and enthusiasm stimulated us. I really enjoyed it.”
  • 64. Industrial Design Student “I really liked this assignment. Your enthusiasm. Everybody spent time on their homework. Your enthusiasm got me excited and made me work. We had the history part in all lectures. Then we had Camilla dancing, talking about business models.”
  • 65. Industrial Design Student “I forgot time and place when working on this assignment.”
  • 66. Industrial Design Student “Business Process Design is fun and interesting. The combination of business and design rocks!”
  • 67. For more information, please get in touch Camilla van den Boom MSc Designing Tangible Business Models Eindhoven University of Technology Teacher DG512 Assignment Business Model Design Department of Industrial Design DG512 Assignment Business Model Design About.me camillavandenboom Philips LinkedIn Ambient Light Experience Hospital 2010-2011 camillavandenboom Twitter @camillavandenbo Email c.b.v.d.boom@tue.nl An Tel experiment at the intersection of Education, Research and Business +31624158694 Eindhoven University of Technology Department of Industrial Design Competency Area Business Process Design Camilla van den Boom MSc