Business Model Design for Designers
JIM KALBACHPrincipal UX Strategist, USEEDS°Rutgers University, USADesigning Web Navigationwww.xing.com/profile/James_Kalba...
What is a business model?Was ist ein Geschäftsmodell?
“The Business Model:Theoretical Roots,Recent Developments,and Future Research”C. Zott, R. Amit, &L.Massa.,WP-862, IESE, Ju...
Definition    A business model describes    the rationale of how an    organization creates, delivers,    and captures val...
VisualizingBusiness Models„A business model, from ourpoint of view, consists of fourinterlocking elements that,taken toget...
Enter:The Business Model Canvas
1. Customer SegmentsThe groups of people or organizations an enterprise aims to reach and serve                           ...
2. Value PropositionThe bundle of products and services that create value for a specific Segment.                         ...
3. ChannelsHow a company communicates with and reachesits Customer Segments to deliver a Value Proposition                ...
4. Customer RelationshipsThe types of relationships a companyestablishes with specific Customer Segments                  ...
5. Revenue StreamsThe cash a company generates from each CustomerSegment (costs must be subtracted from revenues tocreate ...
6. Key RessourcesThe most important assets requiredto make a business model work                                     13
7. Key ActivitiesThe most important things a company must doto make its business model work                               ...
8. Key PartnersThe network of suppliers and partners that makethe business model work                                     ...
9. Cost StructureAll costs incurred to operate a business model                                                 16
The Business Model CanvasThe nine business model Building Blocks formthe basis for a handy tool, called Business Model Can...
The Business Model Canvas                            18
The Business Model Canvas   Back Stage:                Front Strage:    Business                    Customer    Processes ...
BFD,Kalbach
Business Model Innovation                                         “ While CEOs still believe that product,                ...
USEEDS° user centred thinking   22
Creativity & Business“CEOs identified creativity as thenumber-one leadership competency ofthe future…[But creativity] isn‘...
Prototype Business Models                            24
2.8 billion people don‟t have proper sanitationEvery 15 seconds a child dies from sanitation-related illnesses            ...
26
PeePoopleThe Business Model Canvas                       Accessible,                                     People in dev.   ...
PeePoople              Management,The Business Model Canvas              Coordination                                     ...
Business Model Prototyping                             29
BMC Addresses Problems of Business Models• Different definitions and understandings• Hard to change in established organiz...
It     Doesn’t      Work*(*for you, most of the time)
Uses of the Business Model Canvas for Designers    1. Understanding business modelsUSEEDS° user centred thinking          ...
#4: Never forget the business“Amazon’s business model isdeliberately designed, and thesite is designed to fit the business....
Business Model Design: Disruption Case Study [Xiamter]http://experiencinginformation.wordpress.com/2011/09/02/business-mod...
Uses of the Business Model Canvas for Designers    1. Understanding business models    2. Showing stakeholders why UX is i...
The Business Model Canvas                            36
Uses of the Business Model Canvas for Designers    1. Understand business models    2. Show stakeholders why UX is importa...
Lean Canvas                            http://succinctstories.wordpress.com/2011/02/28/running-lean-%E2%80%93-business-can...
Project CanvasUSEEDS° user centred thinking   39
Project CanvasUSEEDS° user centred thinking   http://teensplusdesign.wordpress.com/2011/03/22/tisdt-customer-journey-canva...
Canvanizer.comUSEEDS° user centred thinking   http://teensplusdesign.wordpress.com/2011/03/22/tisdt-customer-journey-canva...
Project Canvas USEEDS° user centred thinking   42
Download the Project Canvas°    http://uxtogo.wordpress.com/2012/05/25/the-    project-canvas-defining-your-project-visual...
Danke schön© USEEDS° GmbH | Burchardstr. 19 | 20095 Hamburg           Tel.: +49 (0)40 – 696 6691 32      ron.hofer@useeds....
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Business Model Design for Designers

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James Kalbach at User Experience Roundtable Hamburg 2-Jul-2012
http://www.uxhh.de/roundtable/archiv/index.html#Jul12

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Business Model Design for Designers

  1. 1. Business Model Design for Designers
  2. 2. JIM KALBACHPrincipal UX Strategist, USEEDS°Rutgers University, USADesigning Web Navigationwww.xing.com/profile/James_Kalbach@jameskalbachwww.ExperiencingInformation.comwww.UxToGo.com 2
  3. 3. What is a business model?Was ist ein Geschäftsmodell?
  4. 4. “The Business Model:Theoretical Roots,Recent Developments,and Future Research”C. Zott, R. Amit, &L.Massa.,WP-862, IESE, June,2010 - revisedSeptember 2010http://www.iese.edu/research/pdfs/DI-0862-E.pdf 4
  5. 5. Definition A business model describes the rationale of how an organization creates, delivers, and captures value. ALEXANDER OSTERWALDERUSEEDS° user centred thinking 5
  6. 6. VisualizingBusiness Models„A business model, from ourpoint of view, consists of fourinterlocking elements that,taken together, create anddeliver value.“ MARK W. JOHNSON et al., “Reimagine Your Business Model,” HBR (Dec 2008) 6
  7. 7. Enter:The Business Model Canvas
  8. 8. 1. Customer SegmentsThe groups of people or organizations an enterprise aims to reach and serve 8
  9. 9. 2. Value PropositionThe bundle of products and services that create value for a specific Segment. 9
  10. 10. 3. ChannelsHow a company communicates with and reachesits Customer Segments to deliver a Value Proposition 10
  11. 11. 4. Customer RelationshipsThe types of relationships a companyestablishes with specific Customer Segments 11
  12. 12. 5. Revenue StreamsThe cash a company generates from each CustomerSegment (costs must be subtracted from revenues tocreate earnings ;) 12
  13. 13. 6. Key RessourcesThe most important assets requiredto make a business model work 13
  14. 14. 7. Key ActivitiesThe most important things a company must doto make its business model work 14
  15. 15. 8. Key PartnersThe network of suppliers and partners that makethe business model work 15
  16. 16. 9. Cost StructureAll costs incurred to operate a business model 16
  17. 17. The Business Model CanvasThe nine business model Building Blocks formthe basis for a handy tool, called Business Model Canvas. 17
  18. 18. The Business Model Canvas 18
  19. 19. The Business Model Canvas Back Stage: Front Strage: Business Customer Processes Facing Business Customer 19
  20. 20. BFD,Kalbach
  21. 21. Business Model Innovation “ While CEOs still believe that product, service and operational innovations are important, they feel that innovation must also be applied to a company’s very core — to the way it does business and drives revenue. CEOs deemed these business model innovations vital to creating new and differentiating value for their companies.”IBM Global Service, “Business Model Innovation,” Sept 2006 21
  22. 22. USEEDS° user centred thinking 22
  23. 23. Creativity & Business“CEOs identified creativity as thenumber-one leadership competency ofthe future…[But creativity] isn‘t something theylearn within their company, and itcertainly isn‘t something they aretaught in business school. Businessschools teach people how to bedeliverers, not discoverers.“ JEFF DYER AND HAL GREGERSEN, The Innovator‘s DNA, Harvard Business Press, 2011 23
  24. 24. Prototype Business Models 24
  25. 25. 2.8 billion people don‟t have proper sanitationEvery 15 seconds a child dies from sanitation-related illnesses 25
  26. 26. 26
  27. 27. PeePoopleThe Business Model Canvas Accessible, People in dev. affordable world w/o sanitation toilets 27
  28. 28. PeePoople Management,The Business Model Canvas Coordination Direct, of Franchises personal, family NGOs Distribution Accessible, and collection People in dev. affordable Awareness, world w/o sanitation Marketing Partner toilets QA Local governments Direct POU Chance to sales on Franchiser - UN earn money location via IP, Women Technology Franchise Franchise Sales of operations Peace of mind franchise packages HR Production Transporta- Per bag sales Bulk sales tion revenue 28
  29. 29. Business Model Prototyping 29
  30. 30. BMC Addresses Problems of Business Models• Different definitions and understandings• Hard to change in established organizations• The logic is “invisible“• Often not creatively designed 30
  31. 31. It Doesn’t Work*(*for you, most of the time)
  32. 32. Uses of the Business Model Canvas for Designers 1. Understanding business modelsUSEEDS° user centred thinking 32
  33. 33. #4: Never forget the business“Amazon’s business model isdeliberately designed, and thesite is designed to fit the business.You have to start with a greatbusiness model to produce a greatexperience.“JARED SPOOL, “Revealing Design Treasures From The Amazon Site“ 33
  34. 34. Business Model Design: Disruption Case Study [Xiamter]http://experiencinginformation.wordpress.com/2011/09/02/business-model-design-disruption-case-study/ 34
  35. 35. Uses of the Business Model Canvas for Designers 1. Understanding business models 2. Showing stakeholders why UX is importantUSEEDS° user centred thinking 35
  36. 36. The Business Model Canvas 36
  37. 37. Uses of the Business Model Canvas for Designers 1. Understand business models 2. Show stakeholders why UX is important 3. Use canvases to show “invisible“ logicUSEEDS° user centred thinking 37
  38. 38. Lean Canvas http://succinctstories.wordpress.com/2011/02/28/running-lean-%E2%80%93-business-canvas-variant/ USEEDS° user centred thinking 38
  39. 39. Project CanvasUSEEDS° user centred thinking 39
  40. 40. Project CanvasUSEEDS° user centred thinking http://teensplusdesign.wordpress.com/2011/03/22/tisdt-customer-journey-canvas/ 40
  41. 41. Canvanizer.comUSEEDS° user centred thinking http://teensplusdesign.wordpress.com/2011/03/22/tisdt-customer-journey-canvas/ 41
  42. 42. Project Canvas USEEDS° user centred thinking 42
  43. 43. Download the Project Canvas° http://uxtogo.wordpress.com/2012/05/25/the- project-canvas-defining-your-project-visually/ USEEDS° Blog: www.uxtogo.com We„re hiring!USEEDS° user centred thinking 43
  44. 44. Danke schön© USEEDS° GmbH | Burchardstr. 19 | 20095 Hamburg Tel.: +49 (0)40 – 696 6691 32 ron.hofer@useeds.de l www.useeds.de 44
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