Designing Business Models

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talk given at Sierre, December 2010

talk given at Sierre, December 2010

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  • 1. desig ning ss mo delbusine red op prepaa worksh erby alex osterwald rand y ves pigneu c. 2010 Sierre De
  • 2. service innovationFLICKR.COM
  • 3. process innovationFLICKR.COM
  • 4. business model innovationFLICKR.COM
  • 5. Time Machine
  • 6. 1958
  • 7. [sources: Henry Chesbrough, photo: life.com]
  • 8. [sources: Henry Chesbrough, photo: life.com]
  • 9. Time Machine
  • 10. 1997
  • 11. ?what do both examples have in common?
  • 12. 1 Product innovation alone was not sufficient They enabled the new product through the business model
  • 13. 2 They didnʼt nor could they copy from competitors They invented new business models
  • 14. 3They couldnʼt prove in advance that the models would work They had to take some risk and experiment
  • 15. “ The enemy ofinnovation are twowords - prove it -you can not prove ” any new idea Roger Martin, Dean Rotman School
  • 16. ?So how does one come up with successful business models?
  • 17. 3 Themesbusiness design ongoing models thinking process
  • 18. !"#$%&##()*&+# 1
  • 19. ,)(()%+-%."-.&
  • 20. Business ModelCanvas
  • 21. to describe, challenge,design, and inventbusiness models moresystematically
  • 22. 9 building blocks
  • 23. CUSTOMER SEGMENTSDESCRIBING WHO A COMPANY OFFERS VALUE TO images by JAM
  • 24. VALUE PROPOSITIONSDESCRIBING A COMPANY’S OFFER images by JAM
  • 25. CHANNELSDESCRIBING HOW A COMPANY REACHES ITS CUSTOMERS images by JAM
  • 26. CUSTOMER RELATIONSHIPSDESCRIBING THE RELATIONSHIPS A COMPANY BUILDS images by JAM
  • 27. REVENUE STREAMSDESCRIBING HOW A COMPANY MAKES MONEY images by JAM
  • 28. KEY RESOURCESDESCRIBING WHAT CAPABILITIES ARE REQUIRED images by JAM
  • 29. KEY ACTIVITIESDESCRIBING WHAT ACTIVITIES ARE REQUIRED images by JAM
  • 30. KEY PARTNERSTHE PARTNERS THAT LEVERAGE THE BUSINESS MODEL images by JAM
  • 31. COST STRUCTUREDESCRIBING THE COSTS OF A BUSINESS MODEL images by JAM
  • 32. key value customer activities proposition relationships key customerpartners segments cost revenuestructure key streams resources channels images by JAM
  • 33. building building block block building building block buildingbuilding block block block building block building building block block build in g ng building buildi bloc k block block
  • 34. !""#$%&()*
  • 35. artistic feel theater & & opera visitors atmosphere stage & manage artistic circus spectacle & without lions higher ticket logistics pricesCIRQUE DU SOLEIL
  • 36. nagestage & ma spectacle & logistics theater & opera artistic visitors circus ns without lioartistic feel & atmosphere higher ticket prices
  • 37. *&#$.%/0$%1$%. 2
  • 38. “ business people don’t just need to understand designers better; they need to become designers ” Roger Martin, Dean Rotman School
  • 39. analytical intuitivethinking thinking thin king d esign
  • 40. the desig ner’st ool k it ...
  • 41. !"#$%&()*+#*,-$
  • 42. analyze from the customer perspectivePARTNER KEY OFFER CUSTOMER CUSTOMERNETWORK ACTIVITIES RELATIONSHIPS SEGMENTS KEY DISTRIBUTION RESOURCES CHANNELS COST STRUCTURE REVENUE STREAMS
  • 43. .*#"/0)$-*+1*+,
  • 44. +&,-.)#%
  • 45. KEY CUSTOMER ACTIVITIES RELATIONSHIPSKEY VALUE CUSTOMERPARTNERS PROPOSITIONS SEGMENTS KEY RESOURCES CHANNELSCOST REVENUE$TRUCTURE $TREAMS
  • 46. 2(%$%$32*+,
  • 47. “ The lack of trust to experiment with new ideas is what makes companies obsoleteover a period of time ” Roger Martin, Dean Rotman School
  • 48. [source: Sony Pictures]
  • 49. architecture
  • 50. [source: Sony Pictures]
  • 51. [source: Sony Pictures]
  • 52. (-%-.$%.-#*&#$.%$%.222
  • 53. !""#$%&()*
  • 54. 34
  • 55. +&,-.)#%
  • 56. http://upload.wikimedia.org/wikipedia/commons/0/02/Montreux_Jazz_Festival.jpg
  • 57. 35
  • 58. )%.)$%.67),&## 3
  • 59. uncertainty/patterns/insight clarity/focus research designing business model business model design to & understand prototypes be implemented89)"7,&:-*-6/&*;7)(<-($&%=&>(-%?@&%/7-+A 69
  • 60. 3 Themesbusiness design ongoing models thinking process
  • 61. THANK YOU! BusinessModelGeneration.com osterwalder@gmail.com yves.pigneur@unil.ch