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At the Endeavor Summit 2013 in San Francisco we presented a way to design your business model for the future.

At the Endeavor Summit 2013 in San Francisco we presented a way to design your business model for the future.

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Is your business model ready for the future? Presentation Transcript

  • 1. Is your businessmodel ready forthe future?Endeavor San Francisco, June 21st 2013Lisa Kay Solomon and Patrick van der Pijl
  • 2. @patrickpijl@lisakaysolomon
  • 3. WARNING!
  • 4. IT’SFRIDAY
  • 5. AND WE WILL WORKHARD THE NEXTTWO HOURS!
  • 6. WHAT WE DO IN 2HOURS TIMETODAY?
  • 7. DESIGNING BETTER BUSINESSESTraditional business models aredead…
  • 8. We need new tools…
  • 9. We need new skills and mindsets…
  • 10. And stop writing business plans!
  • 11. FIRST ANINTRODUCTION
  • 12. DESIGNING BETTER BUSINESSES
  • 13. DESIGNING BETTER BUSINESSES
  • 14. SON OF..
  • 15. DESIGNING BETTER BUSINESSES
  • 16. DESIGNING BETTER BUSINESSES
  • 17. DESIGNING BETTER BUSINESSES
  • 18. DESIGNING BETTER BUSINESSES
  • 19. DESIGNING BETTER BUSINESSES
  • 20. LET’S CHANGE THEBUSINESS MODEL OFTHE PUBLISHINGINDUSTRY!
  • 21. In November 2008 we started anonline platform
  • 22. Every participant paid 24 USD
  • 23. $24.
  • 24. $36.
  • 25. $54.
  • 26. $81.
  • 27. $243.
  • 28. so why did people participate andpay??!
  • 29. people love being trendy & want to bethe first
  • 30. people want to be part of somethingBIGGER and prove it
  • 31. and it’s all about communities (ofpractitioners or passionates)
  • 32. + 600.000 books+ 26 translations♯
  • 33. WE NEED TORETHINK THE WAYWE DO BUSINESS!
  • 34. TODAY…
  • 35. …WE SEE FORCESWE HAVEN’T SEENBEFORE…
  • 36. …I CALL THEMNEW RULESOF THE BUSINESSGAME.
  • 37. DRIVER #1
  • 38. SUSTAINABILITY
  • 39. DESIGNING BETTER BUSINESSES
  • 40. Driver #2
  • 41. CREDIT CRISIS
  • 42. DESIGNING BETTER BUSINESSES
  • 43. DESIGNING BETTER BUSINESSES
  • 44. Driver #3
  • 45. “IT’S MY TURN”ECONOMY
  • 46. UPCOMINGMARKETS
  • 47. DESIGNING BETTER BUSINESSES
  • 48. OR MARKETS THATCAME UP?
  • 49. DESIGNING BETTER BUSINESSES
  • 50. Driver #4
  • 51. DIFFERENTCUSTOMERBEHAVIOR
  • 52. generation  y  
  • 53. Driver #5
  • 54. THE ONLINEREVOLUTION
  • 55. Driver #6
  • 56. TECHNOLOGY
  • 57. SOME EXAMPLES OFBUSINESS MODELSWE SEE RIGHTNOW…
  • 58. RE-IMAGINATIONNEWS ANDINFORMATIONFLOW…
  • 59. From reporters...
  • 60. …to twitter
  • 61. RE-IMAGINATION OFBOOKS
  • 62. From books...!
  • 63. …to kindle
  • 64. RE-IMAGINATION OFCALLING A CAB
  • 65. From waiting in the rain...
  • 66. …to a single push of a button
  • 67. RE-IMAGINATION OFVIDEO
  • 68. From video store...
  • 69. …to youtube
  • 70. RE-IMAGINATION OFNAVIGATION
  • 71. From map...
  • 72. …to navigon
  • 73. SO...
  • 74. DE WORLD HASREALLY CHANGED.
  • 75. BUT DO YOU SEETHIS ALSO?
  • 76. NEW PROBLEMS…
  • 77. REQUIRE NEW TOOLS
  • 78. REQUIRE NEWSKILLS
  • 79. REQUIRE NEWMINDSETS
  • 80. SO WHAT ARE NEWTOOLS?
  • 81. WHAT IS ABUSINESS MODEL?
  • 82. DESIGNING BETTER BUSINESSES
  • 83. WHAT AREBUSINESS MODELS?
  • 84. DESIGNING BETTER BUSINESSES
  • 85. IMAGINE(BOARDROOM)CONVERSATIONS…
  • 86. CLAYTONCHRISTENSEN
  • 87. WE NEED NEWTOOLS TOUNDERSTAND ANDCRAFT NEWBUSINESS MODELS
  • 88. A business model describesthe rationale of how anorganization creates, deliversand captures valueDefinition_Business Model
  • 89. BUSINESS MODELCANVASTHE
  • 90. BuildingBlocks9
  • 91. Who is my customer?!images by JAM!
  • 92. What is my value proposition?!images by JAM!
  • 93. What channels will I use?!images by JAM!
  • 94. What relationship do I entertain?!images by JAM!
  • 95. What is my revenue stream?!images by JAM!
  • 96. What are my key resources?!images by JAM!
  • 97. What are the key activities?!images by JAM!
  • 98. Who are my key partners?!images by JAM!
  • 99. How does the cost structure look like?!images by JAM!
  • 100. customersegments!keypartners!coststructure!revenuestreams!distributionchannels!customerrelationships!keyactivities!keyresources!valueproposition!images by JAM!
  • 101. Let us look at the business modelof Nespresso
  • 102. OFFERDISTRIBUTIONCHANNELSCUSTOMERRELATIONSHIPSCUSTOMERSEGMENTSREVENUE STREAMSCOST STRUCTUREKEYACTIVITIESPARTNERNETWORKKEYRESOURCESThe Business Model of NespressoHouseholdsRetailMailOrderNespressoClubProductionB2CDistribution MarketingB2CDistributionProduction MarketingMachineManufacturer1 x MachineSalesRepetitivePad SalesBusinessCallCenterNespressoStoresNespresso.comNespressoMachinesNespressoPadsPatents BrandCoffeeProductionFacilitiesDistributionChannels
  • 103. Partners! Proposition! Relation! Customers!Channels!Activities!Resources!Costs! Revenues!
  • 104. WHAT ABOUT YOURBUSINESS MODEL?
  • 105. “What does your currentbusiness model look like?”Interview your neighbor and define his orher current business model. Spend 10minutes each.
  • 106. OFFERDISTRIBUTIONCHANNELSCUSTOMERRELATIONSHIPSCUSTOMERSEGMENTSREVENUE STREAMSCOST STRUCTUREKEYACTIVITIESPARTNERNETWORKKEYRESOURCESThe Business Model of ConsultingAny clientHours High ratesBlahBlahBlahBlahBlahReports
  • 107. VALUEPROPOSITION    What  customer  needs  do  we  satisfy?  What  problem  do  we  help  our  customers  solve?    What  advantages  do  our  products  and  services  provide  our  customers  with?    What  products  and  services  do  we  deliver  to  our  customers?  CHANNELS  Through  what  channels  do  we  deliver  our  products  and  services?  CUSTOMERRELATIONSHIPS  What  kind  of  relationship  do  we  maintain  with  our  customers?  Personal  contact?  Automatic?  Self-­‐service?    CUSTOMERSEGMENTS  Who  is  our  customer?  For  whom  do  we  create  value?    Can  we  distinguish  different  customer  segments?  REVENUE STREAMS  What  revenue  streams  do  we  generate?    What  is  the  size  of  each  revenue  stream?      COST STRUCTURE  What  are  the  inherent  costs  in  our  current  business  model?    What  is  the  size  of  each  cost?  KEYACTIVITIES  What  type  of  key  activities  do  we  perform?    KEYPARTNERS    Who  are  our  key  partners?    What  is  our  motivation  to  work  with  partners?    What  key  resources  do  we  acquire  through  partners?    What  key  activities  do  our  partners  perform?  KEYRESOURCES  What  key  resources  does  our  proposition  require?      Physical?  Intellectual?  Human?  Financial?  CURRENT BUSINESS MODEL  
  • 108. “WHAT DOES YOURCURRENT BUSINESS MODELLOOK LIKE?”INTERVIEW YOUR NEIGHBOR AND DEFINEHIS OR HER CURRENT BUSINESS MODEL.SPEND 10 MINUTES EACH.
  • 109. SO NOW YOU HAVEPUT YOUR MODELTOGETHER…
  • 110. IS IT READY FOR THEFUTURE?
  • 111. LETS LOOK INTO THEBUSINESS MODELMECHANICS…
  • 112. DEF: BUSINESS MODEL MECHANICSTHE INNER WORKINGS OF ANORGANIZATION’S BUSINESS MODEL.HOW THE BUILDING BLOCKS OF ABUSINESS MODEL WORK TOGETHERTO PRODUCE A BETTER OUTCOMEsource: www.strategyzer.com
  • 113. 6 QUESTIONSHOW DO YOU PERFORM ON A SCALE FROM 0 TO 10?0 102 4 6 8source: www.strategyzer.com
  • 114. SWITCHINGCOSTS1
  • 115. MECHANICS:SWITCHING COSTSHOW EASY OR HARD IS IT FOR YOURCUSTOMER TO SWITCH TO ANOTHERCOMPANY?source: www.strategyzer.com
  • 116. EXAMPLEIPOD
  • 117. What are the most important costs inherent in our business model?Which Key Resources are most expensive?Which Key Activities are most expensive?Through which Channels do our Customer Segmentswant to be reached?How are we reaching them now?How are our Channels integrated?Which ones work best?Which ones are most cost-efficient?How are we integrating them with customer routines?For what value are our customers really willing to pay?For what do they currently pay?How are they currently paying?How would they prefer to pay?How much does each Revenue Stream contribute to overall revenues?For whom are we creating value?Who are our most important customers?What type of relationship does each of our CustomerSegments expect us to establish and maintain with them?Which ones have we established?How are they integrated with the rest of our business model?How costly are they?What value do we deliver to the customer?Which one of our customer’s problems are we helping to solve?What bundles of products and services are we offering to each Customer Segment?Which customer needs are we satisfying?What Key Activities do our Value Propositions require?Our Distribution Channels?Customer Relationships?Revenue streams?Who are our Key Partners?Who are our key suppliers?Which Key Resources are we acquiring from partners?Which Key Activities do partners perform?What Key Resources do our Value Propositions require?Our Distribution Channels? Customer Relationships?Revenue Streams?Day Month YearNo.This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License.To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.RetailSwitchingcostsRecurringtransactionalsalesContentrevenuesMass MarketsItunessoftwareIPOD, 1000songs in apocketHard &softwareinnovationIpod (switching costs)source: www.strategyzer.com
  • 118. MECHANICS:SWITCHING COSTSHOW DO YOU PERFORM ON A SCALE FROM 0 TO 10?0 102 4 6 8source: www.strategyzer.com
  • 119. RECURRINGREVENUES2
  • 120. MECHANICS:RECURRING REVENUESIS EVERY SALES A NEW EFFORT(TRANSACTIONAL) OR WILL ITRESULT IN FOLLOW-UP REVENUESAND PURCHASES?source: www.strategyzer.com
  • 121. EXAMPLENESPRESSO
  • 122. What are the most important costs inherent in our business model?Which Key Resources are most expensive?Which Key Activities are most expensive?Through which Channels do our Customer Segmentswant to be reached?How are we reaching them now?How are our Channels integrated?Which ones work best?Which ones are most cost-efficient?How are we integrating them with customer routines?For what value are our customers really willing to pay?For what do they currently pay?How are they currently paying?How would they prefer to pay?How much does each Revenue Stream contribute to overall revenues?For whom are we creating value?Who are our most important customers?What type of relationship does each of our CustomerSegments expect us to establish and maintain with them?Which ones have we established?How are they integrated with the rest of our business model?How costly are they?What value do we deliver to the customer?Which one of our customer’s problems are we helping to solve?What bundles of products and services are we offering to each Customer Segment?Which customer needs are we satisfying?What Key Activities do our Value Propositions require?Our Distribution Channels?Customer Relationships?Revenue streams?Who are our Key Partners?Who are our key suppliers?Which Key Resources are we acquiring from partners?Which Key Activities do partners perform?What Key Resources do our Value Propositions require?Our Distribution Channels? Customer Relationships?Revenue Streams?Day Month YearNo.This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License.To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.HouseholdsRetailRepetitivePad SalesDirect salesNespressoMachinesNespressoPadsPatentsNespresso (recurring)source: www.strategyzer.com
  • 123. MECHANICS:RECURRING REVENUESHOW DO YOU PERFORM ON A SCALE FROM 0 TO 10?0 102 4 6 8source: www.strategyzer.com
  • 124. EARN BEFOREYOU SPEND3
  • 125. MECHANICS:EARN BEFORE YOU SPENDARE YOU EARNING MONEY BEFOREYOU ARE SPENDING IT (E.G. FORPRODUCTION, PLATFORMS ETC.)?source: www.strategyzer.com
  • 126. EXAMPLEBMGEN
  • 127. source: www.strategyzer.com
  • 128. MECHANICS:EARN BEFORE YOU SPENDHOW DO YOU PERFORM ON A SCALE FROM 0 TO 10?0 102 4 6 8
  • 129. GAME CHANGINGCOSTSTRUCTURE4
  • 130. MECHANICS:GAME CHANGING COSTSTRUCTUREIS YOUR COST STRUCTURESUBSTANTIALLY DIFFERENT ANDBETTER THAN THAT OFCOMPETITORS?source: www.strategyzer.com
  • 131. EXAMPLESKYPE
  • 132. MECHANICS:GAME CHANGING COSTSTRUCTUREHOW DO YOU PERFORM ON A SCALE FROM 0 TO 10?0 102 4 6 8source: www.strategyzer.com
  • 133. GETTINGOTHERSTO DOTHE WORK5
  • 134. MECHANICS:GETTING OTHERS TO DO THEWORKHOW MUCH DOES YOUR BUSINESSMODEL GET CUSTOMERS OR THIRDPARTIES TO CREATE VALUE FOR YOU?source: www.strategyzer.com
  • 135. EXAMPLEFACEBOOK
  • 136. MECHANICS:GETTING OTHERS TO DO THEWORKHOW DO YOU PERFORM ON A SCALE FROM 0 TO 10?0 102 4 6 8source: www.strategyzer.com
  • 137. SCALABILITY6
  • 138. MECHANICS:SCALABILITYHOW RAPIDLY AND HOW EASILY CANYOU GROW YOUR BUSINESS MODELWITHOUT HITTING ROADBLOCKS (E.G.INFRASTRUCTURE, CUSTOMERSUPPORT ETC.)source: www.strategyzer.com
  • 139. EXAMPLEDINERS CLUB
  • 140. source: www.strategyzer.com
  • 141. What are the most important costs inherent in our business model?Which Key Resources are most expensive?Which Key Activities are most expensive?Through which Channels do our Customer Segmentswant to be reached?How are we reaching them now?How are our Channels integrated?Which ones work best?Which ones are most cost-efficient?How are we integrating them with customer routines?For what value are our customers really willing to pay?For what do they currently pay?How are they currently paying?How would they prefer to pay?How much does each Revenue Stream contribute to overall revenues?For whom are we creating value?Who are our most important customers?What type of relationship does each of our CustomerSegments expect us to establish and maintain with them?Which ones have we established?How are they integrated with the rest of our business model?How costly are they?What value do we deliver to the customer?Which one of our customer’s problems are we helping to solve?What bundles of products and services are we offering to each Customer Segment?Which customer needs are we satisfying?What Key Activities do our Value Propositions require?Our Distribution Channels?Customer Relationships?Revenue streams?Who are our Key Partners?Who are our key suppliers?Which Key Resources are we acquiring from partners?Which Key Activities do partners perform?What Key Resources do our Value Propositions require?Our Distribution Channels? Customer Relationships?Revenue Streams?Day Month YearNo.This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License.To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.Salesmen7%transactioncosts3 USD annualfeeRestaurants(14 initially inNY)Credit inseveralrestaurantsAccess toclients andloyaltyRestaurantsthat acceptcreditcardsDiners club (scalability)source: www.strategyzer.com
  • 142. MECHANICS:SCALABILITYHOW DO YOU PERFORM ON A SCALE FROM 0 TO 10?0 102 4 6 8source: www.strategyzer.com
  • 143. WHAT IS YOURSCORE?
  • 144. WHAT ARE THEMECHANICS YOUWANT TO WORK ON?
  • 145. LEARNINGS
  • 146. YOU CAN ASSESSAND IMPROVE YOURBUSINESS MODEL BYASKING 6 QUESTIONSsource: www.strategyzer.com
  • 147. A GREAT BUSINESSMODEL ALONE IS NOTENOUGH - YOU NEEDMARKET TRACTIONsource: www.strategyzer.com
  • 148. BY IMPROVING YOURBUSINESS MODELMECHANICS YOU ARELIKELY TOOUTCOMPETE OTHERSsource: www.strategyzer.com
  • 149. SO WE NEED NEWTOOLS…
  • 150. AND WE NEED NEWSKILLS…
  • 151. WE NEED NEWMINDSETS…
  • 152. WE NEED THINK ANDACT LIKEDESIGNERS
  • 153. OBSERVE1
  • 154. Clayton Christensen
  • 155. WHEREVER YOU LOOKTHAT’S WHAT YOU SEE.JERRY SEINFELD
  • 156. THINKVISUALLY2
  • 157. DRAWING IS THENEW WRITING
  • 158. EYES, PENCILS AND THE HANDMAY BE TOOLS OF THE PAST,…I BELIEVE THEY ARE TOOLSOF THE FUTURE.John Maeda, RISD
  • 159. DESIGNING BETTER BUSINESSES
  • 160. “The Wall is the New Desk”Dave Gray CEO XPLANE1!
  • 161. … but that is not enough
  • 162. IDEATE3
  • 163. DESIGNING BETTER BUSINESSES
  • 164. VALUEPROPOSITION    CHANNELS  CUSTOMERRELATIONSHIPS  CUSTOMERSEGMENTS    REVENUE STREAMS    COST STRUCTUREKEYACTIVITIES    KEYPARTNERS      KEYRESOURCES  CURRENT BUSINESS MODEL  
  • 165. VALUEPROPOSITION    CHANNELS  CUSTOMERRELATIONSHIPS  CUSTOMERSEGMENTS    REVENUE STREAMS    COST STRUCTUREKEYACTIVITIES    KEYPARTNERS      KEYRESOURCESCURRENT BUSINESS MODEL  
  • 166. VALUEPROPOSITION    CHANNELS  CUSTOMERRELATIONSHIPS  CUSTOMERSEGMENTS    REVENUE STREAMS    COST STRUCTUREKEYACTIVITIES    KEYPARTNERS      KEYRESOURCES  CURRENT BUSINESS MODEL  
  • 167. VALUEPROPOSITION    CHANNELS  CUSTOMERRELATIONSHIPS  CUSTOMERSEGMENTS    REVENUE STREAMS    COST STRUCTUREKEYACTIVITIES    KEYPARTNERSKEYRESOURCES  CURRENT BUSINESS MODEL  
  • 168. YOU NEED TO BEABLE TO JUGGLEWITH BUSINESSMODELS
  • 169. PROTOTYPE4
  • 170. the past was aboutchoosing solutionsthe future is aboutgenerating options
  • 171. Frank Gehry
  • 172. 8 PROTOTYPES
  • 173. MAKERSMIND5
  • 174. Chris Anderson
  • 175. FORESEEFUTURE6
  • 176. THERE IS ONLY ONEWAY TO LIVE IN AWORLD OF SPEED,SURPRISE, NOISE ANDRESPONSIVENESSGrant McCracken
  • 177. THAT IS TO VISITTHE FUTUREFREQUENTLYGrant McCracken
  • 178. ALLOW FOR MANYPOSSIBLE, PLAUSIBLEFUTURES
  • 179. THE BEST WAY TOPREDICT THEFUTURE IS TOCREATE ITPETER DRUCKER
  • 180. WE BELIEVE THESEARE THELEADERSHIP SKILLSOF THE FUTURE
  • 181. THIS IS HOWWE DO IT.
  • 182. Method for Business Model Innovation
  • 183. WITH FIXED PRICES
  • 184. AND OUR RULES OFTHE GAME
  • 185. DESIGNINGSTRATEGICCONVERSATIONSTHAT MATTER
  • 186. VISUALIZATIONONLY
  • 187. Future scenario
  • 188. Business model
  • 189. Story or roadmap
  • 190. OUR JOURNEY…
  • 191. Tallinn (EST)Hawaii (USA) Amsterdam (NET)Bilbao (ESP) Tokyo (JAP)Santiago (CHI)Zagreb (CRO) Paris (FRA) Los Angeles (USA)
  • 192. OUR CLIENTS…
  • 193. AND A NEWBUSINESS MODELFOR CONSULTING
  • 194. CHECK THESESOURCES
  • 195. Online learning
  • 196. Business Model Software
  • 197. Our agency
  • 198. Thank God it’sFriday!(5 PM)Lisa@businessmodelsinc.comPatrick@businessmodelsinc.com
  • 199. DESIGNING BETTER BUSINESSES