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Baden-Württemberg connected: BMGen-Seminar 2014.05.15

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  • 1. © Vujàdé Ltd. – Supporting Forward Thinking Alexander Osterwalder www.businessmodelgeneration.com Judith Wimmer Vujàdé Ltd. – Supporting Forward Thinking 2014.05.15 Photoby:VujàdéLtd–JasperBouwsma BUSINESS MODEL GENERATION A common language to develop and discuss business models
  • 2. © Vujàdé Ltd. – Supporting Forward Thinking 2 Photoby:VujàdéLtd–JasperBouwsma
  • 3. © Vujàdé Ltd. – Supporting Forward Thinking 3 Vu-jà-dé Vujàdé is the opposite of déjà vu and gives the impression that something has not yet taken place, or has never been there. Looking for new solutions. Critically questioning existing structures and behavior. Looking at something from a different or an unusual point of view. In other words, Vujàdé stands for innovation. Photo by: Vujàdé Ltd – Jasper Bouwsma
  • 4. © Vujàdé Ltd. – Supporting Forward Thinking 1. CORPORATE CONSULTING 2. START-UP SUPPORT 3. INCUBATION À PROPOS Photo by: Vujàdé Ltd – Jasper Bouwsma
  • 5. © Vujàdé Ltd. – Supporting Forward Thinking Judith Wimmer Sr. Consultant, Vujàdé Ltd. Photo by: Vujàdé Ltd – Jasper Bouwsma Vujàdé is a consultancy supporting organizations to achieve breakthrough innovation. We work with companies of all sizes, from corporates to SMEs and start-ups, in industries from insurance to fashion, and from construction to life sciences. Vujàdé is located in Biel/Bienne, Switzerland, and is establishing a presence in London, UK. Judith Wimmer is a Senior Consultant at Vujàdé and combines an open minded spirit with a well structured hands-on mentality. Due to her working experience in and for start-ups as well as with large organizations, she has a quick and natural understanding of customer and client needs. She has gained extensive experience in applying the Business Model Generation framework in various customer projects and industries. Judith is trained by Alexander Osterwalder, and his company Strategyzer. Judith was born and raised in Austria, has a background in Media Technology and Design. She worked as project manager in the field of corporate communications in Germany and Switzerland. In addition, Judith consulted individuals and teams in strategic projects and organisational development and is currently finishing her MAS Change and Organisational Dynamics.
  • 6. © Vujàdé Ltd. – Supporting Forward Thinking TOPIC OUR FOR TODAY
  • 7. © Vujàdé Ltd. – Supporting Forward Thinking
  • 8. © Vujàdé Ltd. – Supporting Forward Thinking
  • 9. © Vujàdé Ltd. – Supporting Forward Thinking 9 ACCELERATED INNOVATION WE ARE INVETING MORE, MORE QUICKLY
  • 10. © Vujàdé Ltd. – Supporting Forward Thinking 1 ACCELERATED ADOPTION SOCIETY IS ADOPTING TECHNOLOGY FASTER AS WELL
  • 11. © Vujàdé Ltd. – Supporting Forward Thinking Curt Carlson, SRI International CEO In exponential times, if you improve your performance incrementally YOU FALL BEHIND EXPONENTIALLY ” “
  • 12. © Vujàdé Ltd. – Supporting Forward Thinking 1 Alexander Osterwalder A Swiss Business Book author.
  • 13. © Vujàdé Ltd. – Supporting Forward Thinking© Vujàdé Ltd. – Supporting Forward Thinking Insert Photo of book with Jasper’s Name. Co-Created by 470 practitioners from 45 countries.
  • 14. © Vujàdé Ltd. – Supporting Forward Thinking© Vujàdé Ltd. – Supporting Forward Thinking AGENDA
  • 15. © Vujàdé Ltd. – Supporting Forward Thinking AGENDA DESIGN THINKING A NEW GENERATION THE BUSINESS MODEL GENERATION GETTING FAMILIAR WITH THE BMC I II III Photoby:VujàdéLtd–JasperBouwsma
  • 16. © Vujàdé Ltd. – Supporting Forward Thinking AGENDA II III1 2 3 BUSINESS MODEL GENERATION I Photoby:VujàdéLtd–JasperBouwsma
  • 17. © Vujàdé Ltd. – Supporting Forward Thinking© Vujàdé Ltd. – Supporting Forward Thinking Case Study Nespresso •  B2C & B2B •  Business Model Portfolio
  • 18. © Vujàdé Ltd. – Supporting Forward Thinking© Vujàdé Ltd. – Supporting Forward Thinking
  • 19. © Vujàdé Ltd. – Supporting Forward Thinking
  • 20. © Vujàdé Ltd. – Supporting Forward Thinking THE BUSINESS MODEL CANVAS Alexander Osterwalder www.businessmodelgeneration.com COST STRUCTURE REVENUE STREAMS KEY PARTNERS KEY ACTIVITIES KEY RESOURCES CHANNELS CUSTOMER SEGMENTS CUSTOMER RELATIONSHIP VALUE PROPOSITIONS THE BUSINESS MODEL CANVAS House- hold N-Club Stores Produc- tion Marketing Machine Pro- ducers Produc- tion Distri- bution Marketing Machine Pods Call Center N.com Brand Produc- tion facilities Distri- bution channels Retail Patents IP (1800+ patents) Business
  • 21. © Vujàdé Ltd. – Supporting Forward Thinking HAS TAKEN A WHILE TO BECOME SUCCESSFUL… NESPRESSO
  • 22. © Vujàdé Ltd. – Supporting Forward Thinking
  • 23. © Vujàdé Ltd. – Supporting Forward Thinking
  • 24. © Vujàdé Ltd. – Supporting Forward ThinkingVujàdé Ltd. – Supporting Forward Thinking THE RIGHT BUSINESS MODEL CAN BE THE DIFFERENCE BETWEEN SUCCESS AND FAILURE FOR EXACTLY THE SAME TECHNOLOGY OR PRODUCT
  • 25. © Vujàdé Ltd. – Supporting Forward ThinkingVujàdé Ltd. – Supporting Forward Thinking WHY WILL NESPRESSO EVEN BE MORE SUCCESSFUL? ?
  • 26. © Vujàdé Ltd. – Supporting Forward Thinking
  • 27. © Vujàdé Ltd. – Supporting Forward Thinking
  • 28. © Vujàdé Ltd. – Supporting Forward ThinkingVujàdé Ltd. – Supporting Forward Thinking WE ARE MOVING FROM PORTFOLIOS OF PRODUCTS TO PORTFOLIOS OF BUSINESS MODELS.
  • 29. © Vujàdé Ltd. – Supporting Forward ThinkingVujàdé Ltd. – Supporting Forward Thinking REVENUE MODEL ≠ BUSINESS MODEL
  • 30. © Vujàdé Ltd. – Supporting Forward Thinking Albert Einstein Everything should be made as simple as possible, but not simpler. “ Photoby:VujàdéLtd.–JasperBouwsma
  • 31. © Vujàdé Ltd. – Supporting Forward Thinking AGENDA II III1 2 3 BUSINESS MODEL GENERATION I Photoby:VujàdéLtd–JasperBouwsma
  • 32. © Vujàdé Ltd. – Supporting Forward Thinking© Vujàdé Ltd. – Supporting Forward Thinking Exercise AirBnB & APPLE iTUNES •  B2B •  Product to Service Centric
  • 33. © Vujàdé Ltd. – Supporting Forward Thinking 5’ EXERCISE BUSINESS MODEL THE BUSINESS MODEL CANVAS Key Partners Project Name Iteration Nr Channels www.businessmodelgeneration.com 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. Vujàdé Ltd. – Consulting I Start-up Support I Incubation Elfenaustrasse 3 I CH-2502 Biel/Bienne I Switzerland +41 32 32 32 300 I contact@vujade.com I www.vujade.com www.slideshare.net/vujade Key Activities Value Proposition Customer Relationship Customer Segments Key Ressources Cost Structure Revenue Streams images by Mathilde images by Mathilde community community catalogue development catalogue development employees employees worldwide coverage worldwide coverage sales & marketing sales & marketing platform platform pay pal pay pal sales & marketing sales & marketing photographers helpdesk
  • 34. © Vujàdé Ltd. – Supporting Forward Thinking VALUE PROPOSITIONS KEY ACTIVITIES KEY RESOURCES REVENUE STREAMSCOST STRUCTURE KEY PARTNERS CUSTOMER SEGMENTS CUSTOMER RELATIONSHIP CHANNELS Images by XPLANE, with warm thanks to Alexander Osterwalder
  • 35. © Vujàdé Ltd. – Supporting Forward Thinking VALUE PROPOSITIONS KEY ACTIVITIES KEY RESOURCES REVENUE STREAMSCOST STRUCTURE KEY PARTNERS CUSTOMER SEGMENTS CUSTOMER RELATIONSHIP CHANNELS Images by Mathilda, with warm thanks to Yves Pigneur
  • 36. © Vujàdé Ltd. – Supporting Forward ThinkingSource: http://stamen.com/clients/airbnb 2008
  • 37. © Vujàdé Ltd. – Supporting Forward ThinkingSource: http://stamen.com/clients/airbnb 2009
  • 38. © Vujàdé Ltd. – Supporting Forward ThinkingSource: http://stamen.com/clients/airbnb 2010
  • 39. © Vujàdé Ltd. – Supporting Forward ThinkingSource: http://stamen.com/clients/airbnb 2011
  • 40. © Vujàdé Ltd. – Supporting Forward ThinkingSource: www.tagesanzeiger.ch/wirtschaft/unternehmen-und-konjunktur/Bund-nimmt-ZimmerTeilet-unter-die-Lupe/story/25680550
  • 41. © Vujàdé Ltd. – Supporting Forward Thinking AGENDA II III1 2 3 BUSINESS MODEL GENERATION I Photoby:VujàdéLtd–JasperBouwsma
  • 42. © Vujàdé Ltd. – Supporting Forward Thinking TIPS & TRICKS
  • 43. © Vujàdé Ltd. – Supporting Forward Thinking VISUALIZE YOUR BUSINESS MODEL VIDEO #BMGen – 02
  • 44. © Vujàdé Ltd. – Supporting Forward Thinking … NEVER WRITE ON THE CANVAS Using post-its allows an easily shifting and removing of elements. Therefore the exercise stays dynamic and the business model or the value propositions can be continuously developed. COST STRUCTURE REVENUE STREAMS KEY PARTNERS KEY ACTIVITIES KEY RESOURCES CHANNELS CUSTOMER SEGMENTS CUSTOMER RELATIONSHIP VALUE PROPOSITIONS
  • 45. © Vujàdé Ltd. – Supporting Forward Thinking mothers … ONE IDEA - ONE POST-IT Use a thick marker! No bullets, use for each point a separate post-it. This allows you easily shifting the elements and quickly testing combinations. teenagers
  • 46. © Vujàdé Ltd. – Supporting Forward Thinking … COLOR CODING Use different color post-its to highlight certain aspects of your business model. For example, use different color stickies if you have two very different customer segments in your business model with very different jobs-to-be done (e.g. advertisers and users). Then continue to use the same colors for the corresponding value propositions, channels, etc.
  • 47. © Vujàdé Ltd. – Supporting Forward Thinking … VISUALS & WORDS Combining images and words to describe business model building blocks is more powerful than just using words. Our brain processes images quicker than words. Hence, images will allow viewers of your Canvas to more rapidly grasp the big picture of your model. production customersocial network
  • 48. © Vujàdé Ltd. – Supporting Forward Thinking … GRANULARITY Don’t add too many elements when you are sketching out the strategic overview of a business model. Too many details hide the big picture. On the other hand, adding detail is appropriate when you work on the refinement of your business model, in order to test it and consider customer development.
  • 49. © Vujàdé Ltd. – Supporting Forward Thinking FREQUENTLY COMMITTED MISTAKES
  • 50. © Vujàdé Ltd. – Supporting Forward Thinking … ORPHAN ELEMENTS Make sure you don’t create “orphan” elements in your business model. For example, every Statty in the revenue streams box needs a corresponding Statty in the customer segment and value proposition box that highlights who is willing to pay for what. You should not, for instance, have “advertising” as a revenue stream, without having an “advertiser” who is willing to pay for “an audience” Customer Segment Revenue Source Value Proposition Orphan
  • 51. © Vujàdé Ltd. – Supporting Forward Thinking … MIXING PRESENT AND FUTURE Make sure you clearly distinguish between presently existing business models and future ideas. Mixing them can be confusing. You can easily distinguish between the two by using color coding or by using separate Canvases. present future
  • 52. © Vujàdé Ltd. – Supporting Forward Thinking COST STRUCTURE REVENUE STREAMS KEY PARTNERS KEY ACTIVITIES KEY RESOURCES CHANNELS CUSTOMER SEGMENTS CUSTOMER RELATIONSHIP VALUE PROPOSITIONS … TOO MANY IDEAS IN ONE CANVAS Describing too many different ideas in the same Business Model Canvas can lead to con- fusion. Try using separate Canvases to sketch out individual ideas. If necessary you can always bring them together in the same Canvas later on. COST STRUCTURE REVENUE STREAMS KEY PARTNERS KEY ACTIVITIES KEY RESOURCES CHANNELS CUSTOMER SEGMENTS CUSTOMER RELATIONSHIP VALUE PROPOSITIONS COST STRUCTURE REVENUE STREAMS KEY PARTNERS KEY ACTIVITIES KEY RESOURCES CHANNELS CUSTOMER SEGMENTS CUSTOMER RELATIONSHIP VALUE PROPOSITIONS COST STRUCTURE REVENUE STREAMS KEY PARTNERS KEY ACTIVITIES KEY RESOURCES CHANNELS CUSTOMER SEGMENTS CUSTOMER RELATIONSHIP VALUE PROPOSITIONS
  • 53. © Vujàdé Ltd. – Supporting Forward Thinking
  • 54. © Vujàdé Ltd. – Supporting Forward Thinking AGENDA DESIGN THINKING A NEW GENERATION THE BUSINESS MODEL GENERATION GETTING FAMILIAR WITH THE BMC I II III Photoby:VujàdéLtd–JasperBouwsma
  • 55. © Vujàdé Ltd. – Supporting Forward Thinking AGENDA II III1 2 3 GETTING FAMILIAR WITH THE BMC I Photoby:VujàdéLtd–JasperBouwsma
  • 56. © Vujàdé Ltd. – Supporting Forward Thinking 3GROUPS 3CASES
  • 57. © Vujàdé Ltd. – Supporting Forward Thinking 3 GROUPS | 3 CASES You are ... a car repair centre You generate revenues from the sale of spare parts and repair contracts. You are ... a retailer You generate revenues from the sale of single items which you purchase from supply chain partners. You are... a transportation business You generate revenues from ticket sales for trips.
  • 58. © Vujàdé Ltd. – Supporting Forward Thinking 3 GROUPS | 3 CASES A CHALLENGE FOR EACH…
  • 59. © Vujàdé Ltd. – Supporting Forward Thinking You are ... a car repair centre You generate revenues from the sale of spare parts and repair contracts. You are ... a retailer You generate revenues from the sale of single items which you purchase from supply chain partners. You are... a transportation business You generate revenues from ticket sales for trips. 3 GROUPS | 3 CASES A CHALLENGE FOR EACH…
  • 60. © Vujàdé Ltd. – Supporting Forward Thinking Work on the Frontstage of the Business Model Canvas •  Value Propositions •  Customer Segments •  Customer Relationship •  Channels •  Revenue Streams Past Future 3 GROUPS | 3 CASES ENJOY PART 1
  • 61. © Vujàdé Ltd. – Supporting Forward Thinking Work on the Backstage of the Business Model Canvas •  Value Propositions •  Key Partners •  Key Activities •  Key Ressources •  Cost structure Past Future 3 GROUPS | 3 CASES ENJOY PART 2
  • 62. © Vujàdé Ltd. – Supporting Forward Thinking Share your key-findings •  Bankruptcy or is there a future for your case? •  Will it be easy to face the challenge? •  Was the canvas useful for the group discussion? 3 GROUPS | 3 CASES PITCH PER GROUP
  • 63. © Vujàdé Ltd. – Supporting Forward Thinking AGENDA II III1 2 3 GETTING FAMILIAR WITH THE BMC I Photoby:VujàdéLtd–JasperBouwsma
  • 64. © Vujàdé Ltd. – Supporting Forward Thinking EPICENTERS OF BUSINESS MODEL INNOVATION
  • 65. © Vujàdé Ltd. – Supporting Forward Thinking KEY PARTNERS CUSTOMER SEGMENTS VALUE PROPOSITIONS CUSTOMER RELATIONSHIP CHANNELS KEY ACTIVITIES KEY RESOURCES COST STRUCTURE REVENUE STREAMS EPICENTERS OF BUSINESS MODEL INNOVATION RESOURCE-DRIVEN Resource-driven innovation originates from an organization’s existing infrastructure or partnerships to expand or transform the business model. Example: Amazon Web Services
  • 66. © Vujàdé Ltd. – Supporting Forward Thinking EPICENTERS OF BUSINESS MODEL INNOVATION OFFER-DRIVEN Offer-driven innovations create new value propositions that affect other business model building blocks. Example: Cemex KEY PARTNERS CUSTOMER SEGMENTS VALUE PROPOSITIONS CUSTOMER RELATIONSHIP CHANNELS KEY ACTIVITIES KEY RESOURCES COST STRUCTURE REVENUE STREAMS
  • 67. © Vujàdé Ltd. – Supporting Forward Thinking EPICENTERS OF BUSINESS MODEL INNOVATION CUSTOMER-DRIVEN Customer-driven innovations are based on customer needs, facilitated access, or increased convenience. Like all innovations emerging from a single epicenter, they effect other building blocks. Example: 23andMe KEY PARTNERS CUSTOMER SEGMENTS VALUE PROPOSITIONS CUSTOMER RELATIONSHIP CHANNELS KEY ACTIVITIES KEY RESOURCES COST STRUCTURE REVENUE STREAMS
  • 68. © Vujàdé Ltd. – Supporting Forward Thinking EPICENTERS OF BUSINESS MODEL INNOVATION FINANCE-DRIVEN Innovations driven by new revenue streams, pricing mechanisms, or reduced cost-structures that affect other business model building blocks. Example: Xerox KEY PARTNERS CUSTOMER SEGMENTS VALUE PROPOSITIONS CUSTOMER RELATIONSHIP CHANNELS KEY ACTIVITIES KEY RESOURCES COST STRUCTURE REVENUE STREAMS
  • 69. © Vujàdé Ltd. – Supporting Forward Thinking EPICENTERS OF BUSINESS MODEL INNOVATION MULTI-EPICENTER-DRIVEN Innovations driven by multiple epicenters can have significant impact on several other building blocks. Example: Hilti KEY PARTNERS CUSTOMER SEGMENTS VALUE PROPOSITIONS CUSTOMER RELATIONSHIP CHANNELS KEY ACTIVITIES KEY RESOURCES COST STRUCTURE REVENUE STREAMS
  • 70. © Vujàdé Ltd. – Supporting Forward Thinking INCREMENTAL VS. DISRUPTIVE ACTIVE VS. PASSIVE
  • 71. © Vujàdé Ltd. – Supporting Forward Thinking THE BUSINESS MODEL ENVIRONMENT
  • 72. © Vujàdé Ltd. – Supporting Forward Thinking Source: Business Model Generation Book www.businessmodelgeneration.com KEY PARTNERS CUSTOMER SEGMENTS VALUE PROPOSITIONS CUSTOMER RELATIONSHIP CHANNELS KEY ACTIVITIES KEY RESOURCES COST STRUCTURE REVENUE STREAMS INDUSTRY FORCES MARKET FORCES MACRO ECONOMIC FORCES KEY TRENDS FORESIGHT MACRO-ECONOMICS COMPETITIVEANALYSIS MARKETANALYSIS
  • 73. © Vujàdé Ltd. – Supporting Forward Thinking Source: Business Model Generation Book www.businessmodelgeneration.com MARKET ANALYSIS CUSTOMER SEGMENTS REAMS MARKET FORCES MARKET SEGMENTS NEEDS & DEMAND MARKET ISSUES SWITCHING COSTS REVENUE ATTRACTIVENESS
  • 74. © Vujàdé Ltd. – Supporting Forward Thinking Source: Business Model Generation Book www.businessmodelgeneration.com COMPETITIVE ANALYSIS KEY PARTNERS COST INDUSTRY FORCES SUPPLIERS & OTHER VALUE CHAIN ACTORS STAKEHOLDERS COMPETITORS (INCUMBENTS) NEW ENTRANTS (INSURGENTS) SUBSTITUTE PRODUCTS &SERVICES
  • 75. © Vujàdé Ltd. – Supporting Forward Thinking Source: Business Model Generation Book www.businessmodelgeneration.com FORESIGHT KEY PARTNERS CUSTOMER SEGMENTS VALUE PROPOSITIONS CUSTOMER RELATIONSHIP KEY ACTIVITIES KEY TRENDS TECHNOLOGY TRENDS REGULATORY TRENDS SOCIETAL & CULTURAL TRENDS SOCIAL-ECONOMIC TRENDS
  • 76. © Vujàdé Ltd. – Supporting Forward Thinking Source: Business Model Generation Book www.businessmodelgeneration.com MACRO-ECONOMICS COST STRUCTURE REVENUE STREAMS MACRO ECONOMIC FORCES GLOBAL MARKET CONDITIONS CAPITAL MARKETS COMMODITIES & OTHER RESOURCES ECONOMIC INFRASTRUCTURE
  • 77. © Vujàdé Ltd. – Supporting Forward Thinking AGENDA II III1 2 3 GETTING FAMILIAR WITH THE BMC I Photoby:VujàdéLtd–JasperBouwsma
  • 78. © Vujàdé Ltd. – Supporting Forward Thinking BUSINESS MODEL MASTERY VIDEO
  • 79. © Vujàdé Ltd. – Supporting Forward Thinking© Vujàdé Ltd. – Supporting Forward Thinking
  • 80. © Vujàdé Ltd. – Supporting Forward Thinking AGENDA II III 1 2 3 DESIGN THINKING I Photoby:VujàdéLtd–JasperBouwsma
  • 81. © Vujàdé Ltd. – Supporting Forward Thinking© Vujàdé Ltd. – Supporting Forward Thinking DESIGN THINKING
  • 82. © Vujàdé Ltd. – Supporting Forward Thinking© Vujàdé Ltd. – Supporting Forward Thinking PROTOTYPING
  • 83. © Vujàdé Ltd. – Supporting Forward Thinking Alexander Osterwalder Once you understand business models you can then start prototyping business models just like you prototype products. “ Photoby:VujàdéLtd.–JasperBouwsma
  • 84. © Vujàdé Ltd. – Supporting Forward Thinking Sergey Brin, Co-Founder Google The more you stumble around, the more likely you are to stumble across something valuable. “ Photoby:VujàdéLtd.–JasperBouwsma
  • 85. © Vujàdé Ltd. – Supporting Forward Thinking© Vujàdé Ltd. – Supporting Forward Thinking
  • 86. © Vujàdé Ltd. – Supporting Forward Thinking THE BUSINESS MODEL CANVAS Alexander Osterwalder www.businessmodelgeneration.com COST STRUCTURE REVENUE STREAMS KEY PARTNERS KEY ACTIVITIES KEY RESOURCES CHANNELS CUSTOMER SEGMENTS CUSTOMER RELATIONSHIP VALUE PROPOSITIONS THE BUSINESS MODEL CANVAS
  • 87. © Vujàdé Ltd. – Supporting Forward Thinking THE BUSINESS MODEL CANVAS Alexander Osterwalder www.businessmodelgeneration.com COST STRUCTURE REVENUE STREAMS KEY PARTNERS KEY ACTIVITIES KEY RESOURCES CHANNELS CUSTOMER SEGMENTS CUSTOMER RELATIONSHIP VALUE PROPOSITIONS Guess Guess Guess Guess Guess Guess Guess Guess Guess Guess Guess Guess Guess Guess Guess Guess Guess Guess THE BUSINESS MODEL CANVAS Guess Guess Guess
  • 88. © Vujàdé Ltd. – Supporting Forward Thinking© Vujàdé Ltd. – Supporting Forward Thinking HYPOTHESES
  • 89. © Vujàdé Ltd. – Supporting Forward Thinking© Vujàdé Ltd. – Supporting Forward Thinking HORIZONTAL ITERATION VERTICAL ITERATION INCREASE INSIGHT ITERATE ITERATE ITERATE GET SMARTER DURING YOUR JOURNEY
  • 90. © Vujàdé Ltd. – Supporting Forward Thinking If you cannot measure it, you cannot improve it. “ Photoby:VujàdéLtd.–JasperBouwsma William Thomson, 1st Baron Kelvin (26 June 1824 – 17 December 1907) was a Belfast-born mathematical physicist and engineer.
  • 91. © Vujàdé Ltd. – Supporting Forward Thinking Get your facts first, then you can distort them as you please. “ Photoby:VujàdéLtd.–JasperBouwsma
  • 92. © Vujàdé Ltd. – Supporting Forward Thinking© Vujàdé Ltd. – Supporting Forward Thinking TESTING
  • 93. © Vujàdé Ltd. – Supporting Forward Thinking THEOF GET OUT BUI NGIDL
  • 94. © Vujàdé Ltd. – Supporting Forward Thinking Alexander Osterwalder www.businessmodelgeneration.com BUSINESS MODEL ENVIRONMENT The three layers
  • 95. © Vujàdé Ltd. – Supporting Forward Thinking Alexander Osterwalder www.businessmodelgeneration.com BUSINESS MODEL ENVIRONMENT A) BUSINESS MODEL LAYER •  Build prototypes for your business model •  Discuss and select the prototype you are going to further develop
  • 96. © Vujàdé Ltd. – Supporting Forward Thinking Alexander Osterwalder www.businessmodelgeneration.com BUSINESS MODEL ENVIRONMENT B) HYPOTHESES LAYER •  Quantify your model with hypotheses •  Analyse your enviroment and develop foresights •  Build hypotheses for the market, competitors, customers and challenges
  • 97. © Vujàdé Ltd. – Supporting Forward Thinking Alexander Osterwalder www.businessmodelgeneration.com BUSINESS MODEL ENVIRONMENT C) TEST LAYER •  GOOTB!!! •  Test your hypotheses by asking customers and partners •  Iterate your Business Model •  Constantly test your models and reiterate
  • 98. © Vujàdé Ltd. – Supporting Forward Thinking Alexander Osterwalder www.businessmodelgeneration.com BUSINESS MODEL ENVIRONMENT The stages of an iteractive process
  • 99. © Vujàdé Ltd. – Supporting Forward Thinking© Vujàdé Ltd. – Supporting Forward Thinking NEWOLD VJD SHAKEN NOT STIRRED COMBINE THE BEST OF BOTH WORLDS
  • 100. © Vujàdé Ltd. – Supporting Forward Thinking© Vujàdé Ltd. – Supporting Forward Thinking VUJÀDÉ’s HOLY TRINITY NEEDS | BUSINESS | TECHNOLOGY
  • 101. © Vujàdé Ltd. – Supporting Forward Thinking© Vujàdé Ltd. – Supporting Forward Thinking VUJÀDÉ PRINCIPLES DEVELOPMENT OF INSIGHTS DURING PROCESS TIME
  • 102. © Vujàdé Ltd. – Supporting Forward Thinking WRAP-UP REFLECTION
  • 103. © Vujàdé Ltd. – Supporting Forward Thinking Albert Einstein The important thing is not to stop questioning. Curiosity has its own reason for existing. “ Photoby:VujàdéLtd.–JasperBouwsma
  • 104. © Vujàdé Ltd. – Supporting Forward Thinking Vujàdé Ltd. Supporting Forward Thinking Elfenaustrasse 3 CH-2502 Biel/Bienne Switzerland +41 (0)32 32 32 300 contact@vujade.com www.vujade.com Photoby:VujàdéLtd–JasperBouwsma
  • 105. © Vujàdé Ltd. – Supporting Forward Thinking 3+7 QUESTIONS TO ASSESS YOUR BUSINESS MODEL www.businessmodelalchemist.com/2011/09/7-questions-to-assess-your-business-model-design.html
  • 106. © Vujàdé Ltd. – Supporting Forward Thinking 3+7 QUESTIONS TO ASSESS YOUR BUSINESS MODEL FIRST, ASK YOURSELF HOW WELL YOUR VALUE PROPOSITION IS GETTING YOUR TARGET CUSTOMER’S JOB DONE. BASICS www.businessmodelalchemist.com/2011/09/7-questions-to-assess-your-business-model-design.html
  • 107. © Vujàdé Ltd. – Supporting Forward Thinking 3+7 QUESTIONS TO ASSESS YOUR BUSINESS MODEL SECONDLY, ASK YOURSELF HOW MANY PEOPLE OR COMPANIES THERE ARE WITH A SIMILAR JOB-TO-BE-DONE. BASICS www.businessmodelalchemist.com/2011/09/7-questions-to-assess-your-business-model-design.html
  • 108. © Vujàdé Ltd. – Supporting Forward Thinking 3+7 QUESTIONS TO ASSESS YOUR BUSINESS MODEL THIRDLY, ASK YOURSELF HOW IMPORTANT THIS JOB REALLY IS FOR THE CUSTOMER AND IF SHE ACTUALLY HAS A BUDGET TO SPEND ON IT. BASICS www.businessmodelalchemist.com/2011/09/7-questions-to-assess-your-business-model-design.html
  • 109. © Vujàdé Ltd. – Supporting Forward Thinking 3+7 QUESTIONS TO ASSESS YOUR BUSINESS MODEL #1 HOW MUCH DO SWITCHING COSTS PREVENT YOUR CUSTOMERS FROM CHURNING? www.businessmodelalchemist.com/2011/09/7-questions-to-assess-your-business-model-design.html
  • 110. © Vujàdé Ltd. – Supporting Forward Thinking 3+7 QUESTIONS TO ASSESS YOUR BUSINESS MODEL #1 How much do switching costs prevent your customers from churning? The time, effort, or budget a customer has to spend to switch from one product or service provider to another is called “switching costs”. The higher the switching costs, the likelier a customer is to stick to one provider rather than to leave for the products or services of a competitor. A great example of designing switching costs into a business model is Apple’s introduction of the iPod in 2001. Do you remember how Steve Jobs heralded his new product with the catchphrase “thousand songs in a pocket”? Well, that was more than a product innovation focusing on storage. It was a business model strategy to get customers to copy all their music into iTunes and their iPod, which would make it more difficult for them to switch to competing digital music players. In a time when little more than brand preferences were preventing people from switching from one player to another this was a smart move and laid the foundation for Apple’s subsequent stronghold on music and later innovations. www.businessmodelalchemist.com/2011/09/7-questions-to-assess-your-business-model-design.html
  • 111. © Vujàdé Ltd. – Supporting Forward Thinking 3+7 QUESTIONS TO ASSESS YOUR BUSINESS MODEL #2 HOW SCALABLE IS YOUR BUSINESS MODEL? www.businessmodelalchemist.com/2011/09/7-questions-to-assess-your-business-model-design.html
  • 112. © Vujàdé Ltd. – Supporting Forward Thinking 3+7 QUESTIONS TO ASSESS YOUR BUSINESS MODEL #2 How scalable is your business model? Scalability describes how easy it is to expand a business model without equally increasing its cost base. Of course software- and Web-based business models are naturally more scalable than those based on bricks and mortar, but even among digital business models there are large differences. An impressive example of scalability is Facebook. With only a couple of thousand of engineers they create value for hundreds of millions of users. Only few other companies in the world have such a ratio of users per employee. A company that has pushed the limits even further is the social gaming company Zynga. By building games like Farmville or Cityville on the back Facebook, the world’s largest social network, they could benefit from Facebook’s reach (and scale) without having to build it themselves. A company that quickly learned its lessons regarding scalability was peer-to-peer communication company Skype in its early days. Their customer relationship collapsed under the weight of large numbers, when they were signing up ten thousands of users per day. They quickly had to adapt their business model to become more scalable. www.businessmodelalchemist.com/2011/09/7-questions-to-assess-your-business-model-design.html
  • 113. © Vujàdé Ltd. – Supporting Forward Thinking 3+7 QUESTIONS TO ASSESS YOUR BUSINESS MODEL #3 DOES YOUR BUSINESS MODEL PRODUCE RECURRING REVENUES? www.businessmodelalchemist.com/2011/09/7-questions-to-assess-your-business-model-design.html
  • 114. © Vujàdé Ltd. – Supporting Forward Thinking 3+7 QUESTIONS TO ASSESS YOUR BUSINESS MODEL #3 Does your business model produce recurring revenues? Recurring revenues are best explained through a simple example. When a newspaper earns revenues from the sales at a newsstand they are transactional, while revenues from a subscription are recurring. Recurring revenues have two major advantages. Firstly, the costs of sales incur only once for repetitive revenues. Secondly, with recurring revenues you have a better idea of how much you will earn in the future. A nice example of recurring revenues is Redhat, which provides open source software and support to enterprises based on a continuous subscription basis. In this model clients don’t pay for new software versions because it is continuously updated. In the world of Software as a Service (Saas) these types of subscriptions are now the norm. This contrasts with Microsoft, which sells most of its software in the form of licenses for every major release. However, there is another aspect to recurring revenues, which are additional revenues generated from an initial sales. For example, when you buy a printer, you continue to spend on cartridges, or when you buy a game console, you’ll continue to spend on games. Or have a look at Apple. While they still earn most of their revenues from hardware sales, the recurring revenues from content and apps is steadily growing. www.businessmodelalchemist.com/2011/09/7-questions-to-assess-your-business-model-design.html
  • 115. © Vujàdé Ltd. – Supporting Forward Thinking 3+7 QUESTIONS TO ASSESS YOUR BUSINESS MODEL #4 DO YOU EARN BEFORE YOU SPEND? www.businessmodelalchemist.com/2011/09/7-questions-to-assess-your-business-model-design.html
  • 116. © Vujàdé Ltd. – Supporting Forward Thinking 3+7 QUESTIONS TO ASSESS YOUR BUSINESS MODEL #4 Do you earn before you spend? This one goes without saying. The more you can earn before spending, the better. Dell pioneered this model in the computer hardware manufacturing industry. By assembling on order after selling directly they managed to escape the terrible inventory depreciation costs of the hardware industry. Results showed how powerful it is to earn before spending. www.businessmodelalchemist.com/2011/09/7-questions-to-assess-your-business-model-design.html
  • 117. © Vujàdé Ltd. – Supporting Forward Thinking 3+7 QUESTIONS TO ASSESS YOUR BUSINESS MODEL #5 HOW MUCH DO YOU GET OTHERS TO DO THE WORK? www.businessmodelalchemist.com/2011/09/7-questions-to-assess-your-business-model-design.html
  • 118. © Vujàdé Ltd. – Supporting Forward Thinking 3+7 QUESTIONS TO ASSESS YOUR BUSINESS MODEL www.businessmodelalchemist.com/2011/09/7-questions-to-assess-your-business-model-design.html #5 How much do you get others to do the work? This is probably one of the least publicized weapons of mass destruction in business model design. What could be more powerful than getting others to do the work while you earn the money? In the bricks and mortar world IKEA gets us to assemble the furniture we buy from them. We do the work. They save money. On the web Facebook gets us to post photos, create and participate in conversations, and “like” stuff. That’s the real value of Facebook, entirely created by users, while they simply provide the platform. We do the work. They earn the sky-high valuations of their shares. Previously mentioned Redhat crafted another smart business model based on other people’s work. Their entire business model is built on top of software developed by the open source software development community. This allowed them to substantially reduce their development costs and compete head-on with larger companies like Microsoft. A more malicious business model in which others do the work is the one practiced by so- called patent trolls. In this model patents are purchased with the sole intention of suing successful companies to extract payments from them.
  • 119. © Vujàdé Ltd. – Supporting Forward Thinking 3+7 QUESTIONS TO ASSESS YOUR BUSINESS MODEL #6 DOES YOUR BUSINESS MODEL PROVIDE BUILT-IN PROTECTION FROM COMPETITION? www.businessmodelalchemist.com/2011/09/7-questions-to-assess-your-business-model-design.html
  • 120. © Vujàdé Ltd. – Supporting Forward Thinking 3+7 QUESTIONS TO ASSESS YOUR BUSINESS MODEL #6 Does your business model provide built-in protection from competition? A great business model can provide you with a longer-term protection from competition than just a great product. Apple’s main competitive advantage arises more from its powerful business model than purely from its innovative products. It’s easier for Samsung, for instance, to copy the iPhone than to build an ecosystem like Apple’s appstore, which caters to developers and users alike and hosts hundred thousands of applications. www.businessmodelalchemist.com/2011/09/7-questions-to-assess-your-business-model-design.html
  • 121. © Vujàdé Ltd. – Supporting Forward Thinking 3+7 QUESTIONS TO ASSESS YOUR BUSINESS MODEL #7 IS YOUR BUSINESS MODEL BASED ON A GAME CHANGING COST STRUCTURE? www.businessmodelalchemist.com/2011/09/7-questions-to-assess-your-business-model-design.html
  • 122. © Vujàdé Ltd. – Supporting Forward Thinking 3+7 QUESTIONS TO ASSESS YOUR BUSINESS MODEL #7 Is your business model based on a game changing cost structure? Cutting costs is a long practiced sport in business. Some business models, however, go beyond cost cutting by creating value based on a totally different cost structure. Skype, for example, provides calls and communication almost like a conventional telecom company, but for free or for a very low cost. They can do this because their business model has a very different cost structure. In fact, Skype’s model is based on the economics of a software company, while a telecom provider’s model is based on the economics of a network company. The former’s costs are mainly people; while the latter’s cost include huge capital expenditures in infrastructure. Similarly, Bharti Airtel, one of the world’s largest mobile network providers, has substantially modified its cost structure by getting rid of their entire network and IT. By buying in network capacity on a variable cost basis from a consortium around network equipment manufacturer Ericsson and IBM, they can now offer among the lowest prices for mobile telephony globally. Redhat, which was mentioned previously, also built its business model on a game changing cost structure: by smartly building its own model on top of other people’s work. www.businessmodelalchemist.com/2011/09/7-questions-to-assess-your-business-model-design.html
  • 123. © Vujàdé Ltd. – Supporting Forward Thinking “The secret of getting ahead is getting started. The secret of getting started is breaking your complex overwhelming tasks into small manageable tasks, and then starting on the first one.” “ Photoby:VujàdéLtd.–JasperBouwsma
  • 124. © Vujàdé Ltd. – Supporting Forward Thinking Vujàdé Ltd. Supporting Forward Thinking Elfenaustrasse 3 CH-2502 Biel/Bienne Switzerland +41 (0)32 32 32 300 contact@vujade.com www.vujade.com Photoby:VujàdéLtd–JasperBouwsma