Designing Tangible Business Models
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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 IKEA 2012-2013 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 5 2012-2013 IKEA
  • 2. “After the first lesson, I wanted to know everything there is to know about business models. I got hooked by the way of energetic, fast-paced teaching and working. I learned a lot about business and design in the past six weeks. It provided me with a new way of thinking.” Industrial Design Student Eindhoven University of Technology
  • 3. Business model hunger
  • 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 2012-2013
  • 9. Expectations?
  • 10. Industrial Design Student “I am interested in the link between business and the design process. I am curious to see the connection between myself as a designer and business.”
  • 11. Industrial Design Student “I want to broaden my business knowledge. I would like to learn about business modeling and the skills to do it. ”
  • 12. Industrial Design Student “I am curious to learn how to simplify structures in business. I want to know how to work with stakeholders.”
  • 13. Industrial Design Student “I want to learn from scratch. This is the start for me within this competency area. I do not know anything about business. I do not know anything about business models. I want to learn the ability to make a business model. I want to gain more knowledge.”
  • 14. Industrial Design Student “I am thinking about starting a business. I want to learn how to communicate with clients about future plans of a concept. I would like to learn how to talk the same language as my clients.”
  • 15. Industrial Design Student “I want to improve my chances to get interesting jobs. This is an opportunity to learn about business, design, and companies. I would like to learn why businesses succeed and fail, and how they adapt.”
  • 16. Industrial Design Student “I heard good things about this assignment.”
  • 17. Guiding rules
  • 18. Help me to help you
  • 19. Pressure cooker concept (theory, practice, feedback and homework)
  • 20. Learning by experience and never stop asking the right questions
  • 21. Development is your own responsibility
  • 22. Case
  • 23. 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
  • 24. Assignment
  • 25. “What does the business model look like?”
  • 26. “How to build a tangible business model?”
  • 27. Combine business and design!
  • 28. Lectures
  • 29. What is it all about?
  • 30. 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
  • 31. 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
  • 32. 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
  • 33. 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
  • 34. Homework
  • 35. Pitching to an external panel
  • 36. Tangible business models
  • 37. Final report
  • 38. Evaluation
  • 39. Key learning points
  • 40. Industrial Design Student “This assignment was great. I learned true designing skills. I learned a lot about design and making other people understand. I also learned about business. How to analyze a business in one single framework, the business model canvas.”
  • 41. Industrial Design Student “The fact that we needed to dig into the empathy map of customers was great. We had to translate thoughts and communication back to the business models. We needed to come up with something that was interesting to the audience.”
  • 42. Industrial Design Student “You learn a lot from looking at the positive things in a performance. It is quite hard to see good things and to come up with positive things as feedback. But this is very useful. You see things, also from other teams, and you learn from the things that you did not do.”
  • 43. Industrial Design Student “Last week, I had to report another project. I did that with more energy and a faster pace than before. It was great. I used pictures and colors instead of bullet points and text. And guess what, it just worked.”
  • 44. Industrial Design Student “I learned a lot about teamwork. The value of teamwork. The process of creation gets easier if you work in a team. It opens opportunities to discuss your work and to get various angles of the same issue. It is great to use the talents of different people to achieve the goal.”
  • 45. Industrial Design Student “I learned about visual communication. Also regarding presentations and slide decks. You can tell a lot with visuals. You get the attention of the audience in this way. You use presentation tools for the red thread while you give the performance yourself.”
  • 46. Industrial Design Student “The approach was great. We learn a lot more as students when the lecturer is enthusiastic. Your energy and way of teaching taught me a lot. The way of getting people interested was very interesting. I got the feeling after the first lecture I want to know everything there is to know about business models!”
  • 47. Industrial Design Student “You also believed in our abilities as design students. It was a high level of trust. You also expect us to come up with ideas. We were free to choose what we liked. It was very challenging and rewarding. There was enough direction in the assignment, but also freedom and space to act and design. You also approached us as designers, not as business people.”
  • 48. Industrial Design Student “I got a new interpretation on my presentation. The fact that we had to present in front of a jury of real business people and design people was just great. That taught me a lot. The set-up of the assignment is great. It is really structured and we had a clear roadmap for the journey from the very first lecture.”
  • 49. Industrial Design Student “I learned to never excuse myself. I will take on the perspective of getting the 8,0 up to a 9,5 on the scale of maximum 10. I will focus on excel my own talent. I really enjoyed the overall positive feeling we got when working on this assignment. That was due to the way we were instructed to give feedback.”
  • 50. Talking to an expert on Industrial Design
  • 51. “My background is Industrial Design. At Alphachimp Studios, we use design and design thinking to solve big business problems. We facilitate the thinking within companies. We as designers help companies to understand complex situations and decide what to do next. We organize and communicate their thinking. As an Industrial Designer, you can easily stage the thinking for businesses and organizations.” Peter Durand, Alphachimp Studio Inc., US
  • 52. 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