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    Business model canvas ism Business model canvas ism Presentation Transcript

    • Business Model Generation Iskandar Muda Oct 18, 2012
    • 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 fearsyou face in strategic management today?
    • where do YOU see the largest opportunitiesto improve strategic management today?
    • your expectations for today?
    • what is innovation?
    • tell me about the most important innovations in your company
    • types ofinnovation?
    • technology innovation
    • process innovation
    • product & serviceinnovation
    • business model innovation
    • four rings of innovation business model innovation product & service innovation process innovation technology innovation
    • which one of yourexamples qualify as business model innovation?
    • “Business model innovation matters” and it is a top priority of CEOs
    • why talk aboutbusiness models?
    • how do you describe abusiness model?
    • without a common language
    • how do you communicate a business model?
    • 1% 18%Strategy 300%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 felispulvinar libero, non ornare libero ipsum tristique tortor. Fusce sed lorem vitae justo feugiat malesuada. Donec aliquet. Vivamus semper eros necText Textdiam. 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 faucibusvulputate. 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 vestibulumcondimentum orci. Fusce velit turpis, malesuada quis, scelerisque ut, eleifend vitae, ipsum. Vestibulum eu erat. Vestibulum justo nisl, tinciduntet, semper vel, tristique quis, eros. Vestibulum tempus, massa vel consectetuer congue, erat magna consequat purus, a facilisis orci nibh vitaeTextpurus. Nam tincidunt venenatis ligula. Nunc orci nulla, ornare quis, lobortis viverra, dapibus at, turpis. Suspendisse sit amet nisl at enim tinciduntblandit. Curabitur augue est, suscipit sed, egestas sit amet, vehicula vitae, tellus. Maecenas nec metus vel nisi interdum pellentesque.Development plan• 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.• 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.• 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 ac12% 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, Words 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. through inappropriate means
    • Here Ok HereCEOs 10° Managers 60° Staff 360°
    • how do you implement a business model?
    • with outdated methods
    • how do you measure thesuccess of a business model?
    • we don’t
    • how do you change a businessmodel and innovate?
    • we re-invent the wheel
    • what is a business model?
    • Alexander Osterwalder, PhD.
    • business model framework 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 [Osterwalder (2004) The Business Model Ontology]
    • Value Proposition
    • The Channel
    • Customer Relationship
    • Revenue Stream
    • Key Resources
    • Key Activities
    • Key Partnership
    • Cost Structure
    • the big picture Key Partner Key Activities Value Proposition Customer Relationship Target Customer Key Resources Channel … Cost Structure Revenue Stream
    • value create revenue Key Partner Key Activities Value Proposition Customer Relationship Target Customer Key Resources Channel … Cost Structure Revenue Stream
    • creating value requires infrastructure Key Partner Key Activities Value Proposition Customer Relationship Target Customer Key Resources Channel … Cost Structure Revenue Stream
    • Infrastructure generating costs Key Partner Key Activities Value Proposition Customer Relationship Target Customer Key Resources Channel … Cost Structure Revenue Stream
    • The profit zone Key Partner Key Activities Value Proposition Customer Relationship Target Customer Key Resources Channel … Cost Structure Revenue Stream <
    • case study
    • you become the new owner of asoccer club …
    • describe YOURclub’s business model
    • what value proposition do you offer, towhich customer segments? describing how a wealth management bank acquires its clients
    • what value proposition do you offer, towhich customer segments? (model) OFFER CUSTOMER VALUE CUSTOMER PROPOSITION SEGMENTS value proposition 1 target customer 1 value proposition 2 target customer 2 … …
    • what value proposition do you offer, towhich customer segments? (example) OFFER CUSTOMER spectacular fans offensive football advertising space & advertisers high visibility … …
    • how do you reach your customers?
    • how do you reach your customers? (model) OFFER CUSTOMER COMMUNICATION VALUE CUSTOMER & DISTRIBUTION PROPOSITION SEGMENTS CHANNELS value proposition 1 channel 1 target customer 1 value proposition 2 channel 2 target customer 2 … … …
    • how do you reach your customers? (example) OFFER CUSTOMER stadium & box office spectacular club owned TV fans offensive football channel mobile phone TV advertising space & sales force advertisers high visibility
    • how do you build relationships?
    • how do you build relationshipswith your customers? (model) OFFER CUSTOMER VALUE CUSTOMER CUSTOMER PROPOSITION RELATIONSHIP SEGMENTS value proposition 1 mechanism 1 target customer 1 value proposition 2 mechanism 2 target customer 2 … … …
    • how do you build relationshipswith your customers? (example) OFFER CUSTOMER personalized website (ticketing) spectacular team blog (RSS) fans offensive football …
    • how do you earn your money withthis business model?
    • how do you earn your money withthis business model? (model) OFFER FINANCE VALUE REVENUE CUSTOMER PROPOSITION STREAMS SEGMENTS value proposition 1 revenue stream 1 target customer 1 value proposition 2 revenue stream 2 target customer 2 … … …
    • how do you earn your money withthis business model? (example) OFFER FINANCE ticket sales spectacular TV channel fans offensive football subscriber fees mobile phone TV subscriber fees advertising space & advertising revenues advertisers high visibility
    • the businessmodels place in a company
    • STRATEGY BUSINESS MODEL ORGANIZATION TECHNOLOGYthe business model’s place in the company
    • external forces
    • 5 forces customer technological needs change BUSINESS MODEL legal social environment environment competition
    • the big picture (business model)
    • the big picture Partner Network Customer Relationship • food & beverages • personalized web profile • ticketing services • newsletter • promoters • team blog (RSS) • ad placement • VIP events with team • telecom operator • … • TV operator • … Core Capability Activity Configuration Value Proposition Distribution Channel Target Customer • play attractive & win • team management • attractive soccer • stadium • fans (families, etc.) games • event management • 360º event (match, • POS networks • fan groups • brand management • venue management dining, shopping) • club website (+online TV) • companies • video images • ticketing • exclusive VIP lounges • club cable TV channel • event/concert organizers • channel management • VIP relationship • merchandising • mobile phone TV channel • advertisers management • renting out stadium • … • … • video crew •… •… Cost Structure Revenue Model • team & maintenance • Ticket fees & season tickets • infrastructure management • online TV subscription revenues • marketing • revenue sharing cable & mobile phone TV • video • renting out stadium for events • advertising revenues • merchandising revenues
    • value creates revenues Partner Network Customer Relationship • food & beverages • personalized web profile • ticketing services • newsletter • promoters • team blog (RSS) • ad placement • VIP events with team • telecom operator • … • TV operator • … Core Capability Activity Configuration Value Proposition Distribution Channel Target Customer • play attractive & win • team management • attractive soccer • stadium • fans (families, etc.) games • event management • 360º event (match, • POS networks • fan groups • brand management • venue management dining, shopping) • club website (+online TV) • companies • video images • ticketing • exclusive VIP lounges • club cable TV channel • event/concert organizers • channel management • VIP relationship • merchandising • mobile phone TV channel • advertisers management • renting out stadium • … • … • video crew •… •… Cost Structure Revenue Model • team & maintenance • Ticket fees & season tickets • infrastructure management • online TV subscription revenues • marketing • revenue sharing cable & mobile phone TV • video • renting out stadium for events • advertising revenues • merchandising revenues
    • creating value requires infrastructure Partner Network Customer Relationship • food & beverages • personalized web profile • ticketing services • newsletter • promoters • team blog (RSS) • ad placement • VIP events with team • telecom operator • … • TV operator • … Core Capability Activity Configuration Value Proposition Distribution Channel Target Customer • play attractive & win • team management • attractive soccer • stadium • fans (families, etc.) games • event management • 360º event (match, • POS networks • fan groups • brand management • venue management dining, shopping) • club website (+online TV) • companies • video images • ticketing • exclusive VIP lounges • club cable TV channel • event/concert organizers • channel management • VIP relationship • merchandising • mobile phone TV channel • advertisers management • renting out stadium • … • … • video crew •… •… Cost Structure Revenue Model • team & maintenance • Ticket fees & season tickets • infrastructure management • online TV subscription revenues • marketing • revenue sharing cable & mobile phone TV • video • renting out stadium for events • advertising revenues • merchandising revenues
    • infrastructure generates costs Partner Network Customer Relationship • food & beverages • personalized web profile • ticketing services • newsletter • promoters • team blog (RSS) • ad placement • VIP events with team • telecom operator • … • TV operator • … Core Capability Activity Configuration Value Proposition Distribution Channel Target Customer • play attractive & win • team management • attractive soccer • stadium • fans (families, etc.) games • event management • 360º event (match, • POS networks • fan groups • brand management • venue management dining, shopping) • club website (+online TV) • companies • video images • ticketing • exclusive VIP lounges • club cable TV channel • event/concert organizers • channel management • VIP relationship • merchandising • mobile phone TV channel • advertisers management • renting out stadium • … • … • video crew •… •… Cost Structure Revenue Model • team & maintenance • Ticket fees & season tickets • infrastructure management • online TV subscription revenues • marketing • revenue sharing cable & mobile phone TV • video • renting out stadium for events • advertising revenues • merchandising revenues
    • the profit zone Partner Network Customer Relationship • food & beverages • personalized web profile • ticketing services • newsletter • promoters • team blog (RSS) • ad placement • VIP events with team • telecom operator • … • TV operator • … Core Capability Activity Configuration Value Proposition Distribution Channel Target Customer • play attractive & win • team management • attractive soccer • stadium • fans (families, etc.) games • event management • 360º event (match, • POS networks • fan groups • brand management • venue management dining, shopping) • club website (+online TV) • companies • video images • ticketing • exclusive VIP lounges • club cable TV channel • event/concert organizers • channel management • VIP relationship • merchandising • mobile phone TV channel • advertisers management • renting out stadium • … • … • video crew •… •… Cost Structure Revenue Model • team & maintenance • Ticket fees & season tickets • infrastructure management • online TV subscription revenues • • • marketing video < • revenue sharing cable & mobile phone TV renting out stadium for events • advertising revenues • merchandising revenues
    • the process ofdesigning innovative business models
    • the focus of the business modelinnovator & designer
    • user-centered
    • PARTNER CUSTOMER NETWORK RELATIONSHIPS CORE VALUE CUSTOMERCAPABILITIES PROPOSITION SEGMENTS ACTIVITY DISTRIBUTION CONFIGURATION CHANNELS COST REVENUE STRUCTURE STREAMS
    • creativity & exploration
    • Googleplex
    • 70:20:10
    • PARTNER CUSTOMER NETWORK RELATIONSHIPS CORE VALUE CUSTOMERCAPABILITIES PROPOSITION SEGMENTS ACTIVITY DISTRIBUTION CONFIGURATION CHANNELS COST REVENUE STRUCTURE STREAMS
    • continuous innovation
    • interdisciplinary approach
    • Grameen Phone Bangladesh
    • Grameen Bank customer relationships telecom operatorsmicro-credit village phone ladies villager telephony mobile activity telephony configuration source of Grameen phone ladies revenue Bank (billing) billing telecom mobile phone infrastructure revenues
    • holistic design
    • Apple iTunes & iPod
    • content producers lifestyle brand hardware suppliershardware & prod. & softw.softw. dev. design iPod Apple storese-commerce brand management dealer “high-end” iBook network consumer multimedia hardwarerights mgmt distribution multimedia iTunes downloads content content distribution hardware revenues cost structure multimedia revenues
    • strategic fit
    • the Amazon.com you know
    • Amazon Simple Storage Services (S3)
    • customer partners relationships product selection content selling stuff mass Amazon.com management on the Web customer distribution warehousing Web2.0 Amazon S3 Internet API & distribution companies product search A9 product e-commerce data services Internet search sitesAmazon.com data grid selling stuff IT infra data storage fees marketing search engine revenues
    • the businessmodeler’s toolbox
    • co-creation
    • ideation
    • visualization
    • prototyping
    • the design process
    • 1. identify interdisciplinary stakeholders -> set-up team
    • do you have to get the ITteam out of their cubicles?
    • 2. understand (business) environment –> frame problem
    • various starting points / depending on context PARTNER CUSTOMER NETWORK RELATIONSHIPS CORE VALUE CUSTOMERCAPABILITIES PROPOSITION SEGMENTS ACTIVITY DISTRIBUTION CONFIGURATION CHANNELS COST REVENUE STRUCTURE STREAMS [Osterwalder (2004) The Business Model Ontology]
    • 3. suspend reality -> ideate
    • 4. bring back reality -> prototype
    • 5. chose suitable design -> decide
    • 6. sketch out projects & workload -> draw implementation plan
    • Project Estimated Area name workload 10 Project V1Value man/daysProposition 120 Project V2 man/daysDistribution 38 Project C1Channels man/days …
    • 7. outline key indicators to follow -> choose measures
    • Project Estimated KPI Target Area name workload (measure) level 10 Project V1Value man/daysProposition 120 Project V2 man/daysDistribution 38 Project C1Channels man/days …
    • 8. select the right teams and people -> make responsible
    • Project Estimated KPI Target Area leader name workload (measure) level 10 Project V1 Mr. JanValue man/daysProposition 120 Project V2 Ms. Tee man/daysDistribution 38 Project C1Channels man/days …
    • 9. execute the plan -> manage implementation & change
    • 10. evaluate, learn and redesign -> manage improvement
    • Exercise
    • Google’s Business Model Key Partner Key Activities Value Proposition Customer Relationship Target Customer • Platform Management • Managing Services • Expanding Search designing blue Key Resources • Targeted Ads • Free search • Monetizing Content Channel • Advertisers • Web Surfers • Content Owners oceans • Search Platform Cost Structure Revenue Stream • Keyword Auctions • Platform Costs • Free
    • from bloated head to the long tail
    • > market boundaries are not given> they are reconstructed by the actions & beliefs of industry players
    • RED OCEAN BLUE OCEAN• compete in existing markets • create uncontested markets• beat the competition • make competition irrelevant• explore existing demand • create & capture new demand• make the value/cost trad-off • break value/cost trad-off• align with differentiation OR • align with differentiation low cost AND low cost
    • differentiate your value proposition
    • working definition value proposition • a customer value proposition gives an overall view of a companys bundle of products, services and client advice. • it is the sum of the total benefits a customer is promised to receive in return for a payment (or other value transfer)
    • group warm-up what are the 5 most important competitive attributes that characterize a game console’s offer? (e.g. price, performance, design) attribute 1 attribute 2 e.g. performance e.g. price
    • 5 attributes 1 2 1. most important attribute 2. second most important 3. … 3 4. …4 - -
    • 1. …2. …3. …4. …5. …
    • draw a value proposition 5 - high bank’s performance 3 - medium 1 - low [Kim & Mauborgne (2002) Charting Your Companys Future]
    • live Excel
    • eliminate raise reduce create
    • strong & valuable approach, but limited view
    • PARTNER CUSTOMER NETWORK RELATIONSHIPS CORE VALUE CUSTOMERCAPABILITIES PROPOSITION SEGMENTS ACTIVITY DISTRIBUTION CONFIGURATION CHANNELS COST REVENUE STRUCTURE STREAMS
    • examples
    • Goldcorp “geology prize” CUSTOMER 500’000 $US RELATIONSHIPSexploiting CUSTOMER mining mines SEGMENTS DISTRIBUTION research CHANNELS low costs through REVENUE open exploration STREAMS Goldcorp publicly shared all of its geological data and offered US$ 500’000 in prizes for determining where they might find the next 6 million ounces of gold
    • from copyright to creative commons
    • Skype “eBay” website deliver voice & free VoIP & value global video quality added services (non segmented) software internet development software large scale development low margin free voice-over-IP VoIP telephony & value-added services
    • 1291 Cityhomes low-cost hotel/rental in New York City young curious Swiss CUSTOMER RELATIONSHIPS apartment owners keep down low cost costs renting out DISTRIBUTION the cost accommodation rooms CHANNELS sensible New York find demand low cost rents
    • Tecnovate “import” young curious CUSTOMER Europeans to RELATIONSHIPS India to work low-cost multi-keep down ACTIVITY lingual call DISTRIBUTION European costs CONFIGURATION center CHANNELS corporations outsourcing REVENUE low cost STREAMS business process outsourcing “up-side down” in India
    • Netflix independent profile filmslarge movie (niche) movies specialized database over the clientele ACTIVITY Internet Web CONFIGURATION COST REVENUE STRUCTURE STREAMS online movie rental (with large niche movie database)