Business model design
Upcoming SlideShare
Loading in...5
×
 

Business model design

on

  • 1,359 views

 

Statistics

Views

Total Views
1,359
Views on SlideShare
1,348
Embed Views
11

Actions

Likes
3
Downloads
146
Comments
0

1 Embed 11

http://www.linkedin.com 11

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

CC Attribution License

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

Business model design Business model design Presentation Transcript

  • Business Model Design Certainty comes from the courage to follow uncertain paths
  • Breaking the ICE
  • Iqbal Quadir Had a Dream Reference: Business Models Beyond Profit - Social Entrepreneurship Lecture Alexander Osterwalder
  • Achieving the Dream Reference: Business Models Beyond Profit - Social Entrepreneurship Lecture Alexander Osterwalder
  • How do you provide connectivity to villagers when they are too poor to buy a phone ? Customers management Reference: Business Models Beyond Profit - Social Entrepreneurship Lecture Alexander Osterwalder
  • By providing an intermediary a loan to buy a phone and resell call services Customers management Reference: Business Models Beyond Profit - Social Entrepreneurship Lecture Alexander Osterwalder
  • What about Network Management & Customers ? Customers management Reference: Business Models Beyond Profit - Social Entrepreneurship Lecture Alexander Osterwalder
  • Show Me the Money Customers management Reference: Business Models Beyond Profit - Social Entrepreneurship Lecture Alexander Osterwalder
  • Achieving the Dream Reference: Business Models Beyond Profit - Social Entrepreneurship Lecture Alexander Osterwalder
  • Rashmi, 24 Bangladeshi village phone lady 2-3 $ daily income
    • There are about 250ʼ000 women retailing telephone services in 60ʼ000 villages giving access to about 100 million people
    • The 250ʼ000 telephones are producing revenues at an annual rate of well over $100 million for GrameenPhone
    • Each entrepreneur makes about $2 in profits per day or about $700 per year
    • $50 million net profit for GrameenPhone
    Reference: Business Models Beyond Profit - Social Entrepreneurship Lecture Alexander Osterwalder
  • Business Model Ingredients Value Proposition (VP) Change Philosophy Key Resources & Platforms Key Processes Reference: Business Models Beyond Profit - Social Entrepreneurship Lecture Alexander Osterwalder Return Structure Profit Formula Human Capital Orientation – Role of the Crowds Growth Model Financing Options
  • GrameenPhone Business Model For Profit Organization with core social impact ingredient Enabling mobile connection to rural people who normally cannot afford to own a telephone, provides a good income-earning opportunity to Village Phone operators living in rural areas Customers management Reference: Business Models Beyond Profit - Social Entrepreneurship Lecture Alexander Osterwalder
  • Change Philosophy 1
  • Return Structure 2
    • Trying to balance the generation of both social/environmental and economic returns
    • To remain effective and sustainable at the same time
    • The balance between economic and social/environmental return are choices base (No best practice or correct answer)
    Social and/or Environmental Return Purely philanthropic enterprises Purely commercial enterprises Economic Return
  • Value Proposition (VP)
    • The way to create value for customers—that is, a way to help customers get an important job done
    • By “job” we mean a fundamental problem in a given situation that needs a solution
    • Once we understand the job and all its dimensions, including the full process for how to get it done, we can design the offering
    Target Customer Job to be Done Offering 3
  • Profit Formula
    • The blueprint that defines how the company creates value for itself while providing value to the customer
    Revenue Model: price x volume Cost Structure Margin Model 4 Quick-Wins
  • Human Capital Orientation – Role of the Crowds 5 Collaborative Production Fully Partially None
  • Key Resources & Platforms
    • The key resources are assets such as technology, products, facilities, equipment, and channels required to deliver the value proposition to the targeted customer. The focus here is on the key elements that create
    • value for the customer and the company, and the way those elements interact
    Every company also has generic resources that do not create competitive differentiation 6
  • Key Processes
    • Operational and managerial processes that allow them to deliver value in a way they can successfully repeat and increase in scale. These may include such recurrent tasks as training, development, manufacturing, budgeting, planning, sales, and service.
    7 Processes & Norms Rules & Metrics
  • Financing Options 8 Equity Financing Debt Financing Angel Investment Donations & Grants 3 Fs Investment Family / Friends / Fools Self Financing
  • Growth Model 9 Franchise By Concept One Self Different Perspective
  • OK. Where do I start ? Value Proposition (VP) Change Philosophy Key Resources & Platforms Key Processes Founder’s Oriented Choices Customer’s Oriented Choices Reality Bites Entrepreneurship Mindset Design Thinking & Innovation Business As Usual Return Structure Profit Formula Human Capital Orientation – Role of the Crowds Growth Model Financing Options
  • Going Forward…What to do ? Return Structure Profit Formula Human Capital Orientation – Role of the Crowds Growth Model Financing Options Value Proposition (VP) Change Philosophy Key Resources & Platforms Key Processes Less Frequently Changing More Frequently Changing Customers Competition Money
  • Constrained Innovation !!
  • Case In Point : Tata Motors Nano Car
    • Providing a safer alternative for scooter families.
    • The cheapest car available in India cost five times what a scooter did
    • and that many of these
    • families could not afford one.
    • “ Offering an affordable, safer, all-weather alternative for scooter families, one with the potential to reach tens of millions of people who were not yet part of the car-buying market”
  • Case In Point : Tata Motors Nano Car
    • Envisioning a price point of around US$2,500, less than half the price of the cheapest car available.
    • This, of course, had dramatic ramifications for the profit formula:
    • Significant drop in gross margins.
    • Radical reduction in many elements
    • of the cost structure
    However, he could still make money if he could increase sales volume dramatically, and he knew that his target base of consumers was potentially huge
  • Case In Point : Tata Motors Nano Car
    • For Tata Motors to fulfill the requirements of its customer value proposition and profit formula for the Nano, it had to reconceived how a car is designed, manufactured, and distributed
  • Case In Point : Tata Motors Nano Car
    • Built a small team of fairly young engineers who would not
    • - like the company’s more-experienced designers -
    • be influenced and constrained in their
    • thinking by the automaker’s existing profit formulas.
    • This team dramatically minimized the number of parts in the vehicle, resulting in a significant cost saving
    Choose to outsource a remarkable 85% of the Nano’s components and use nearly 60% fewer vendors than normal to reduce transaction costs and achieve better economies of scale Envisioned an entirely new way of assembling and distributing its cars. The ultimate plan is to ship the modular components of the vehicles to a combined network of company-owned and independent entrepreneur-owned assembly plants, which will build them to order.
  • FS
  • Other Constrained Innovations !!!! $30 cataract surgery Aravind Eye hospital $0.01 cell phone minute Bharti Airtel $0.01 shampoo Hindustan Unilever $25 micro loans KIVA Organization
  • Constrained Innovation !! Value Proposition (VP) Change Philosophy Key Resources & Platforms Key Processes Values Return Structure Profit Formula Human Capital Orientation – Role of the Crowds Growth Model Financing Options
  • Putting It All Together Customers’ Base Values
  • Any Questions ?
  • Looking Forward to Seeing You There. Quick-Wins