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Business Model Design for Designers


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James Kalbach at User Experience Roundtable Hamburg 2-Jul-2012 …

James Kalbach at User Experience Roundtable Hamburg 2-Jul-2012

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  • 1. Business Model Design for Designers
  • 2. JIM KALBACHPrincipal UX Strategist, USEEDS°Rutgers University, USADesigning Web 2
  • 3. What is a business model?Was ist ein Geschäftsmodell?
  • 4. “The Business Model:Theoretical Roots,Recent Developments,and Future Research”C. Zott, R. Amit, &L.Massa.,WP-862, IESE, June,2010 - revisedSeptember 2010 4
  • 5. Definition A business model describes the rationale of how an organization creates, delivers, and captures value. ALEXANDER OSTERWALDERUSEEDS° user centred thinking 5
  • 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. Enter:The Business Model Canvas
  • 8. 1. Customer SegmentsThe groups of people or organizations an enterprise aims to reach and serve 8
  • 9. 2. Value PropositionThe bundle of products and services that create value for a specific Segment. 9
  • 10. 3. ChannelsHow a company communicates with and reachesits Customer Segments to deliver a Value Proposition 10
  • 11. 4. Customer RelationshipsThe types of relationships a companyestablishes with specific Customer Segments 11
  • 12. 5. Revenue StreamsThe cash a company generates from each CustomerSegment (costs must be subtracted from revenues tocreate earnings ;) 12
  • 13. 6. Key RessourcesThe most important assets requiredto make a business model work 13
  • 14. 7. Key ActivitiesThe most important things a company must doto make its business model work 14
  • 15. 8. Key PartnersThe network of suppliers and partners that makethe business model work 15
  • 16. 9. Cost StructureAll costs incurred to operate a business model 16
  • 17. The Business Model CanvasThe nine business model Building Blocks formthe basis for a handy tool, called Business Model Canvas. 17
  • 18. The Business Model Canvas 18
  • 19. The Business Model Canvas Back Stage: Front Strage: Business Customer Processes Facing Business Customer 19
  • 20. BFD,Kalbach
  • 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. USEEDS° user centred thinking 22
  • 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. Prototype Business Models 24
  • 25. 2.8 billion people don‟t have proper sanitationEvery 15 seconds a child dies from sanitation-related illnesses 25
  • 26. 26
  • 27. PeePoopleThe Business Model Canvas Accessible, People in dev. affordable world w/o sanitation toilets 27
  • 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. Business Model Prototyping 29
  • 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. It Doesn’t Work*(*for you, most of the time)
  • 32. Uses of the Business Model Canvas for Designers 1. Understanding business modelsUSEEDS° user centred thinking 32
  • 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. Business Model Design: Disruption Case Study [Xiamter] 34
  • 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. The Business Model Canvas 36
  • 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. Lean Canvas USEEDS° user centred thinking 38
  • 39. Project CanvasUSEEDS° user centred thinking 39
  • 40. Project CanvasUSEEDS° user centred thinking 40
  • 41. Canvanizer.comUSEEDS° user centred thinking 41
  • 42. Project Canvas USEEDS° user centred thinking 42
  • 43. Download the Project Canvas° project-canvas-defining-your-project-visually/ USEEDS° Blog: We„re hiring!USEEDS° user centred thinking 43
  • 44. Danke schön© USEEDS° GmbH | Burchardstr. 19 | 20095 Hamburg Tel.: +49 (0)40 – 696 6691 32 l 44