Startup MBA 2.1 - Business models - prototyping and moat design
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Startup MBA 2.1 - Business models - prototyping and moat design

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    Startup MBA 2.1 - Business models - prototyping and moat design Startup MBA 2.1 - Business models - prototyping and moat design Presentation Transcript

    • business model prototyping & moats http://startupmba.foundercentric.com
    • hello@foundercentric.com foundercentric.com @foundercentric ! Mailing list: http://bit.ly/fc-list
    • Part I Prototyping, communication and exploration
    • Alex Osterwalder’s Business Model Canvas
    • Value propositions aren’t just lists of features. ! It’s how you create joy or relieve pain. You sell your value proposition...
    • Very specific customer segments are easier to think about. ! It’s better to have multiple specific segments than a single generic one. To a customers segment
    • Who you reach through some channel Channel has 2 parts: how they hear about it and how they actually buy it
    • How do you stop them from forgetting about you next time? ! How do you increase lock-in and retention? You have an ongoing relationship to create retention and lock-in
    • The right side of the canvas is customer-facing. ! It’s about reaching & keeping the customer and generating revenue. That’s how you make money.
    • Innovation on the left half of the canvas is about managing costs The left side is how you create the value proposition.That costs you money.
    • What is the activity so strategically core to your business that you would never outsource it? To create the value proposition, you do certain Key Activities
    • Key Resources are things competitors would have to replicate in order to compete. ! It could be your tech, your patents, or even your user- base. Using your Key Resources
    • Your company has certain core competencies used to create & deliver the value proposition. ! Everything else can potentially come from a partner. Anything you don’t do or have yourself, you get from a partner.
    • There are lots of ways to use the canvas
    • Los Angeles Times Magazine, 1992
    • Question What is ebay’s business model for collectors?
    • Sell anything
    • Sell anything Indie merchants
    • Sell anything Collectors Indie merchants
    • Sell anything CollectorsBuy hard- to-find products Indie merchants
    • Sell anything CollectorsBuy hard- to-find products Indie merchants % commission
    • Sell anything CollectorsBuy hard- to-find products Indie merchants % commission Ads
    • Sell anything CollectorsBuy hard- to-find products Indie merchants % commission Ads SEO
    • Sell anything CollectorsBuy hard- to-find products Indie merchants % commission Ads SEO
    • Sell anything CollectorsBuy hard- to-find products Indie merchants % commission Ads SEO The most buyers
    • Sell anything CollectorsBuy hard- to-find products Indie merchants % commission Ads SEO The most buyers
    • Sell anything CollectorsBuy hard- to-find products Indie merchants % commission Ads SEO The most buyers The most sellers
    • Sell anything CollectorsBuy hard- to-find products Indie merchants % commission Ads SEO The most buyers The most sellers
    • Sell anything CollectorsBuy hard- to-find products Indie merchants % commission Ads SEO The most buyers The most sellers The most products
    • Sell anything CollectorsBuy hard- to-find products Indie merchants % commission Ads SEO The most buyers The most sellers The most products Acquire users
    • Sell anything CollectorsBuy hard- to-find products Indie merchants % commission Ads SEO The most buyers The most sellers The most products Acquire users Acquire users
    • Sell anything CollectorsBuy hard- to-find products Indie merchants % commission Ads SEO The most buyers The most sellers The most products Acquire users Acquire users Ads
    • Sell anything CollectorsBuy hard- to-find products Indie merchants % commission Ads SEO The most buyers The most sellers The most products Acquire users Acquire users Ads Ratings
    • What makes ebay’s model so strong? The Key Resources are difficult to reproduce since they depend on being the biggest
    • Question Why has ebay been so resistant to competitors? What makes its model so strong?
    • Sell anything CollectorsBuy hard- to-find products Indie merchants % commission Ads SEO The most buyers The most sellers The most products Acquire users Acquire users Ads Ratings
    • Ebay’s network effect Ebay’s Key Resources are all a result of being the biggest, so they always have an edge over any new competitor
    • Does this capture every detail of ebay’s business? What about Paypal? Power sellers? Buy-it-now?
    • Business models are sketches Sketches aren’t meant to be perfect. They’re a disposable tool for understanding and communication.
    • Question Why do Chrome and Android matter so much to Google?
    • Searchers
    • Find anything Searchers
    • Find anything Searchers ?
    • Find anything Searchers .000X / search
    • So who is paying?
    • Find anything Searchers .000X / search
    • Find anything Searchers .000X / search Advertisers
    • Find anything Searchers .000X / search $ / click Advertisers
    • Find anything Searchers Advertisers .000X / search $ / click Cost- effective advertising
    • Find anything Searchers Advertisers .000X / search $ / click Cost- effective advertising Measurable
    • Find anything Searchers Advertisers .000X / search $ / click Cost- effective advertising Measurable Any budget
    • Find anything Searchers Advertisers .000X / search $ / click Cost- effective advertising Measurable Any budget Big audience
    • Find anything Searchers Advertisers .000X / search $ / click Cost- effective advertising Big audience
    • Find anything Searchers Advertisers .000X / search $ / click Cost- effective advertising Big audience
    • Those are the basics. But how do they get and keep users?
    • Find anything Searchers Advertisers .000X / search $ / click Cost- effective advertising Big audience
    • Find anything Searchers Advertisers .000X / search $ / click Cost- effective advertising Word of mouth? Big audience
    • Find anything Searchers Advertisers .000X / search $ / click Cost- effective advertising Word of mouth? Brand? Big audience
    • Find anything Searchers Advertisers .000X / search $ / click Cost- effective advertising Word of mouth? Brand? Twitter? Big audience
    • Seems weak. When the answer seems suspicious, keep looking.
    • When you searched for something today, why did you use Google?
    • Find anything Searchers Advertisers .000X / search $ / click Cost- effective advertising Word of mouth? Brand? Twitter? Big audience
    • Find anything Searchers Advertisers .000X / search $ / click Cost- effective advertising Word of mouth? Brand? Twitter? Big audience Greatproduct?
    • Find anything Searchers Advertisers .000X / search $ / click Cost- effective advertising Word of mouth? Brand? Twitter? Big audience Greatproduct? No other options?
    • Find anything Searchers Advertisers .000X / search $ / click Cost- effective advertising Word of mouth? Brand? Twitter? Big audience Greatproduct? No other options?
    • Find anything Searchers Advertisers .000X / search $ / click Cost- effective advertising Word of mouth? Brand? Twitter? Big audience
    • Find anything Searchers Advertisers .000X / search $ / click Cost- effective advertising Word of mouth? Brand? Twitter? Big audience It’s the default
    • The default? Where?
    • Find anything Searchers Advertisers .000X / search $ / click Cost- effective advertising Word of mouth? Brand? Twitter? Big audience It’s the default
    • Find anything Searchers Advertisers .000X / search $ / click Cost- effective advertising Word of mouth? Brand? Twitter? Big audience It’s the default Mozilla’s Firefox
    • Find anything Searchers Advertisers .000X / search $ / click Cost- effective advertising Word of mouth? Brand? Twitter? Big audience It’s the default Mozilla’s Firefox Apple’s Safari
    • Find anything Searchers Advertisers .000X / search $ / click Cost- effective advertising Word of mouth? Brand? Twitter? Big audience It’s the default Mozilla’s Firefox Apple’s Safari
    • Find anything Searchers Advertisers .000X / search $ / click Cost- effective advertising Big audience It’s the default Mozilla’s Firefox Apple’s Safari Browser partnerships
    • Find anything Searchers Advertisers .000X / search $ / click Cost- effective advertising Big audience It’s the default Mozilla’s Firefox Apple’s Safari Browser partnerships $X00 M / year
    • Find anything Searchers Advertisers .000X / search $ / click Cost- effective advertising Big audience It’s the default Mozilla’s Firefox Apple’s Safari Browser partnerships $X00 M / year
    • Question Why do Chrome and Android matter so much to Google?
    • Find anything Searchers Advertisers .000X / search $ / click Cost- effective advertising Big audience It’s the default Mozilla’s Firefox Apple’s Safari Browser partnerships $X00 M / year
    • Find anything Searchers Advertisers .000X / search $ / click Cost- effective advertising Big audience It’s the default Mozilla’s Firefox Apple’s Safari Browser partnerships $X00 M / year
    • Find anything Searchers Advertisers .000X / search $ / click Cost- effective advertising Big audience It’s the default Mozilla’s Firefox Apple’s Safari Browser partnerships $X00 M / year
    • Find anything Searchers Advertisers .000X / search $ / click Cost- effective advertising Big audience It’s the default $X00 M / year
    • Find anything Searchers Advertisers .000X / search $ / click Cost- effective advertising Big audience It’s the default $X00 M / year
    • Find anything Searchers Advertisers .000X / search $ / click Cost- effective advertising Big audience It’s the default $X00 M / year Build a browser
    • Find anything Searchers Advertisers .000X / search $ / click Cost- effective advertising Big audience It’s the default $X00 M / year Build a browser 35% browser share
    • Find anything Searchers Advertisers .000X / search $ / click Cost- effective advertising Big audience It’s the default $X00 M / year Build a browser 35% browser share Our own browser
    • Find anything Searchers Advertisers .000X / search $ / click Cost- effective advertising Big audience It’s the default $X00 M / year Build a browser 35% browser share Our own browser Phone default search
    • Find anything Searchers Advertisers .000X / search $ / click Cost- effective advertising Big audience It’s the default $X00 M / year Build a browser 35% browser share Our own browser Phone default search iOS etc...
    • The business model holds the answer If Google didn’t win with Chrome and Android, they would be forced to spend a fortune on partnerships (and might even lose their whole business)
    • In review:
    • You sell your value proposition...
    • To a customers segment
    • Who you reach through some channel
    • You have an ongoing relationship to create retention and lock-in
    • That’s how you make money.
    • The left side is how you create the value proposition.That costs you money.
    • To create the value proposition, you do certain Key Activities
    • Using your Key Resources
    • Anything you don’t do or have yourself, you get from a partner.
    • Final business model tips • Separate colors for each customer segment
 
 
 
 
 

    • Final business model tips • Separate colors for each customer segment • Use as few sticky notes as possible
 
 
 

    • Final business model tips • Separate colors for each customer segment • Use as few sticky notes as possible • Focus on quick communication, not perfect representation
 

    • Final business model tips • Separate colors for each customer segment • Use as few sticky notes as possible • Focus on quick communication, not perfect representation • Explore lots of possibilities
    • Questions?
    • Zappos
    • Question How did Zappos survive against Amazon and others?
    • Huge shoe selection U.S. shoe buyers Display ads $ / pair Returns Fast & cheap Logistics & fulfillment Marketing MarketingWare- houses Support staff Inventory Re-target WH staff
    • Huge shoe selection U.S. shoe buyers Display ads $ / pair Returns Fast & cheap Logistics & fulfillment Marketing MarketingWare- houses Support staff Inventory Re-target WH staff
    • Huge shoe selection U.S. shoe buyers Display ads $ / pair Returns Fast & cheap Logistics & fulfillment Marketing MarketingWare- houses Support staff Inventory Re-target WH staff
    • Huge shoe selection U.S. shoe buyers Display ads $ / pair Returns Fast & cheap Logistics & fulfillment Marketing MarketingWare- houses Support staff Inventory Re-target WH staff
    • Huge shoe selection U.S. shoe buyers Display ads $ / pair Returns Fast & cheap Shoe- focused logistics & fulfillment Marketing MarketingWare- houses Support staff Inventory Re-target WH staff
    • Huge shoe selection U.S. shoe buyers Display ads $ / pair Returns Fast & cheap Shoe- focused logistics & fulfillment Marketing MarketingWare- houses Support staff Inventory Re-target WH staff
    • Huge shoe selection U.S. shoe buyers Display ads $ / pair Returns Fast & cheap Shoe- focused logistics & fulfillment Marketing Marketing WH staff Support staff Inventory Re-target Ware- houses
    • Huge shoe selection U.S. shoe buyers Display ads $ / pair Returns Fast & cheap Shoe- focused logistics & fulfillment Marketing Marketing Support staff Inventory Re-target Ware- houses
    • Huge shoe selection U.S. shoe buyers Display ads “Try it on at home” returns $ / pair Returns Fast & cheap Shoe- focused logistics & fulfillment Marketing Marketing Support staff Inventory Re-target Ware- houses
    • Huge shoe selection U.S. shoe buyers Display ads “Try it on at home” returns $ / pair Returns Fast & cheap Shoe- focused logistics & fulfillment Marketing Marketing Support staff Inventory Re-target Ware- houses
    • Huge shoe selection U.S. shoe buyers Display ads Ridiculous customer service “Try it on at home” returns $ / pair Returns Fast & cheap Shoe- focused logistics & fulfillment Marketing Marketing Support staff Inventory Re-target Ware- houses
    • Huge shoe selection U.S. shoe buyers Display ads Ridiculous customer service “Try it on at home” returns $ / pair Returns Fast & cheap Shoe- focused logistics & fulfillment Marketing Marketing Support staff Inventory Re-target Ware- houses
    • Huge shoe selection U.S. shoe buyers Display ads Ridiculous customer service “Try it on at home” returns $ / pair Returns Fast & cheap Shoe- focused logistics & fulfillment Marketing Marketing Support staff Inventory Re-target Ware- houses Love