Designing Business Models

desig ning ss mo delbusine red op prepaa worksh erby alex osterwald rand y ves pigneu c. 2010 Sierre De

service innovationFLICKR.COM

process innovationFLICKR.COM

business model innovationFLICKR.COM

Time Machine

[sources: Henry Chesbrough, photo: life.com]

Time Machine

?what do both examples have in common?

1 Product innovation alone was not sufﬁcient They enabled the new product through the business model

2 They didnʼt nor could they copy from competitors They invented new business models

3They couldnʼt prove in advance that the models would work They had to take some risk and experiment

“ The enemy ofinnovation are twowords - prove it -you can not prove ” any new idea Roger Martin, Dean Rotman School

?So how does one come up with successful business models?

3 Themesbusiness design ongoing models thinking process

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Business ModelCanvas

to describe, challenge,design, and inventbusiness models moresystematically

9 building blocks

CUSTOMER SEGMENTSDESCRIBING WHO A COMPANY OFFERS VALUE TO images by JAM

VALUE PROPOSITIONSDESCRIBING A COMPANY’S OFFER images by JAM

CHANNELSDESCRIBING HOW A COMPANY REACHES ITS CUSTOMERS images by JAM

CUSTOMER RELATIONSHIPSDESCRIBING THE RELATIONSHIPS A COMPANY BUILDS images by JAM

REVENUE STREAMSDESCRIBING HOW A COMPANY MAKES MONEY images by JAM

KEY RESOURCESDESCRIBING WHAT CAPABILITIES ARE REQUIRED images by JAM

KEY ACTIVITIESDESCRIBING WHAT ACTIVITIES ARE REQUIRED images by JAM

KEY PARTNERSTHE PARTNERS THAT LEVERAGE THE BUSINESS MODEL images by JAM

COST STRUCTUREDESCRIBING THE COSTS OF A BUSINESS MODEL images by JAM

key value customer activities proposition relationships key customerpartners segments cost revenuestructure key streams resources channels images by JAM

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

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artistic feel theater & & opera visitors atmosphere stage & manage artistic circus spectacle & without lions higher ticket logistics pricesCIRQUE DU SOLEIL

nagestage & ma spectacle & logistics theater & opera artistic visitors circus ns without lioartistic feel & atmosphere higher ticket prices

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“ business people don’t just need to understand designers better; they need to become designers ” Roger Martin, Dean Rotman School

analytical intuitivethinking thinking thin king d esign

the desig ner’st ool k it ...

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analyze from the customer perspectivePARTNER KEY OFFER CUSTOMER CUSTOMERNETWORK ACTIVITIES RELATIONSHIPS SEGMENTS KEY DISTRIBUTION RESOURCES CHANNELS COST STRUCTURE REVENUE STREAMS

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KEY CUSTOMER ACTIVITIES RELATIONSHIPSKEY VALUE CUSTOMERPARTNERS PROPOSITIONS SEGMENTS KEY RESOURCES CHANNELSCOST REVENUE$TRUCTURE $TREAMS

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“ The lack of trust to experiment with new ideas is what makes companies obsoleteover a period of time ” Roger Martin, Dean Rotman School

[source: Sony Pictures]

architecture

[source: Sony Pictures]

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uncertainty/patterns/insight clarity/focus research designing business model business model design to & understand prototypes be implemented89)"7,&:-*-6/&*;7)(<-($&%=&>(-%?@&%/7-+A 69

3 Themesbusiness design ongoing models thinking process

THANK YOU! BusinessModelGeneration.com osterwalder@gmail.com yves.pigneur@unil.ch

Designing Business Models

by Yves Pigneur

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