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Management2.0: Competitive Advantage through Business Model Design & Innovation Guadalajara, June 2007 Alexander Osterwald...
change is the process by which the future invades our lives -> Alvin Toffler
first of all: what are  YOUR  concerns? (buzz groups)
what are YOUR biggest  issues  and  fears  you face in strategic management today?
where do YOU see the largest  opportunities  to improve strategic management today?
your  expectations  for today?
what is innovation?
tell me about the most important innovations in your company
types of innovation?
technology innovation
process innovation
product & service innovation
business model innovation
four levels of innovation business model innovation product & service innovation process innovation technology innovation
“ Business model innovation matters” and it is a top priority of CEOs
Operating Margin Growth in Excess of Competitive Peers  compound annual growth rate over five years [Source: IBM, CEOs are...
Benefits Cited by Business Model Innovators percent of respondents [Source: IBM, Global CEO Study 2006]
why talk about business models?
how do you  describe  a business model?
without a common language
how do you  communicate  a business model?
<ul><li>Development plan </li></ul><ul><li>Quisque augue felis, commodo a, elementum id, faucibus id, sem. Aenean rutrum e...
how do you  implement  a business model?
with outdated methods
how do you  measure  the  success  of a business model?
we don’t
how do you  change  a business model  and innovate ?
we re-invent the wheel
what is a business model?
VALUE PROPOSITION COST STRUCTURE CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS ACTIVITY CONFIGURATION CORE CAPABILITIES PARTNER...
case study
you become the new owner of a soccer club …
describe  YOUR  club’s business model
describing how a wealth management bank acquires its clients what  value proposition  do you offer,  to  which  customer  ...
VALUE PROPOSITION CUSTOMER SEGMENTS value proposition 1 value proposition 2 … target customer 1 target customer 2 … CUSTOM...
what value proposition do you offer, to which customer segments?  (example) spectacular offensive football  fans CUSTOMER ...
how do you  reach  your  customers ?
VALUE PROPOSITION COMMUNICATION  & DISTRIBUTION CHANNELS value proposition 1 value proposition 2 … channel 1 channel 2 … O...
spectacular offensive football  stadium & box office CUSTOMER OFFER how do you reach your customers?  (example) club owned...
how do you build relationships?
VALUE PROPOSITION CUSTOMER RELATIONSHIP value proposition 1 value proposition 2 … mechanism 1 mechanism 2 … OFFER CUSTOMER...
spectacular offensive football  personalized website (ticketing) CUSTOMER OFFER team blog (RSS) fans … how do you build re...
how do you  earn  your  money  with this business model?
VALUE PROPOSITION REVENUE STREAMS value proposition 1 value proposition 2 … revenue stream 1 revenue stream 2 … OFFER CUST...
spectacular offensive football  ticket sales FINANCE OFFER TV channel subscriber fees fans mobile phone TV subscriber fees...
the big picture  (business model)
<ul><li>team management </li></ul><ul><li>event management </li></ul><ul><li>venue management </li></ul><ul><li>ticketing ...
<ul><li>team management </li></ul><ul><li>event management </li></ul><ul><li>venue management </li></ul><ul><li>ticketing ...
<ul><li>team management </li></ul><ul><li>event management </li></ul><ul><li>venue management </li></ul><ul><li>ticketing ...
<ul><li>team management </li></ul><ul><li>event management </li></ul><ul><li>venue management </li></ul><ul><li>ticketing ...
<ul><li>team management </li></ul><ul><li>event management </li></ul><ul><li>venue management </li></ul><ul><li>ticketing ...
the process of designing a business model
the focus of the business modeler
user-centered
Nokia: Jan Chipchase
creativity & exploration
Googleplex
interdisciplinary approach
Grameen Phone Bangladesh
holistic design
Apple iTunes & iPod
strategic fit
Amazon.com
the business modeler’s toolbox
co-creation
ideation
visualization
prototyping
the design process
1. identify interdisciplinary stakeholders -> set-up team
2. understand business environment –> frame problem
3. suspend reality -> ideate
4. bring back reality  -> prototype
5. chose suitable design -> decide
6. sketch out projects & workload  -> draw implementation plan
7. outline key indicators to follow -> choose measures
8. select the right teams and people -> make responsible
9. execute the plan -> manage implementation & change
10. evaluate, learn and redesign -> manage improvement
examples
to come…
feedback for this draft ppt welcome!! [email_address]
 
Alexander Osterwalder, PhD [email_address] www.arvetica.com
all photos from Flickr under a creative commons license authors indicated in comment page of ppt
When you stop learning, you stop competing. We scan the knowledge universe for you, across disciplines and industries. We ...
annexes
annex I business model template
VALUE PROPOSITION COST STRUCTURE CUSTOMER RELATIONSHIP TARGET CUSTOMER DISTRIBUTION CHANNEL VALUE CONFIGURATION CORE CAPAB...
VALUE PROPOSITION COST STRUCTURE CUSTOMER RELATIONSHIP TARGET CUSTOMER DISTRIBUTION CHANNEL VALUE CONFIGURATION CORE CAPAB...
VALUE PROPOSITION value proposition 1 value proposition 2 … OFFER describing a company’s offer
VALUE PROPOSITION TARGET CUSTOMER value proposition 1 value proposition 2 … target customer 1 target customer 2 … CUSTOMER...
VALUE PROPOSITION TARGET CUSTOMER DISTRIBUTION CHANNEL value proposition 1 value proposition 2 … distribution channel 1 di...
VALUE PROPOSITION TARGET CUSTOMER CUSTOMER RELATIONSHIP value proposition 1 value proposition 2 … relationship type 1 rela...
TARGET CUSTOMER REVENUE STREAM revenue stream 1 revenue stream 2 … target customer 1 target customer 2 … FINANCE VALUE PRO...
CORE CAPABILITIES VALUE PROPOSITION core capability 1 core capability 2 … value proposition 1 value proposition 2 … OFFER ...
describing what activities are required VALUE PROPOSITION VALUE CONFIGURATION CORE CAPABILITIES value proposition 1 value ...
describing the partners that leverage the business model VALUE PROPOSITION PARTNER NETWORK CORE CAPABILITIES value proposi...
VALUE PROPOSITION COST STRUCTURE cost account 1 cost account 2 … value proposition 1 value proposition 2 … FINANCE INFRAST...
annex ii other
 
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Management2.0: Competitive Advantage through Business Model Design & Innovation

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Draft for a workshop on Business Model Design and Innovation, which I will facilitate in June in Guadalajara, Mexico

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Management2.0: Competitive Advantage through Business Model Design & Innovation

  1. 1. Management2.0: Competitive Advantage through Business Model Design & Innovation Guadalajara, June 2007 Alexander Osterwalder, PhD [email_address] DRAFT VERSION
  2. 2. change is the process by which the future invades our lives -> Alvin Toffler
  3. 3. first of all: what are YOUR concerns? (buzz groups)
  4. 4. what are YOUR biggest issues and fears you face in strategic management today?
  5. 5. where do YOU see the largest opportunities to improve strategic management today?
  6. 6. your expectations for today?
  7. 7. what is innovation?
  8. 8. tell me about the most important innovations in your company
  9. 9. types of innovation?
  10. 10. technology innovation
  11. 11. process innovation
  12. 12. product & service innovation
  13. 13. business model innovation
  14. 14. four levels of innovation business model innovation product & service innovation process innovation technology innovation
  15. 15. “ Business model innovation matters” and it is a top priority of CEOs
  16. 16. Operating Margin Growth in Excess of Competitive Peers compound annual growth rate over five years [Source: IBM, CEOs are expanding the innovation horizon: important implications for CIOs]
  17. 17. Benefits Cited by Business Model Innovators percent of respondents [Source: IBM, Global CEO Study 2006]
  18. 18. why talk about business models?
  19. 19. how do you describe a business model?
  20. 20. without a common language
  21. 21. how do you communicate a business model?
  22. 22. <ul><li>Development plan </li></ul><ul><li>Quisque augue felis, commodo a, elementum id, faucibus id, sem. Aenean rutrum enim. Praesent pulvinar dignissim nisl. Cras a nunc. Donec tincidunt odio sit amet lacus. Pellentesque metus tortor, ullamcorper vitae, lobortis vel, euismod in, mi. Ut laoreet, tellus laoreet blandit mollis, massa purus posuere purus, quis molestie ligula massa eu metus. Duis placerat, nulla sit amet ornare interdum, neque nunc mollis leo, vitae porttitor mi orci sit amet neque. Donec at enim. In facilisis tellus gravida ligula. Phasellus ut lorem. Pellentesque ac tortor eget augue suscipit ullamcorper. Aenean eleifend porta orci. </li></ul><ul><li>Etiam at arcu. Vestibulum lacinia nunc in eros. Suspendisse potenti. Aliquam erat volutpat. Donec gravida. Lorem ipsum dolor sit amet, consectetuer adipiscing elit. Cum sociis natoque penatibus et magnis dis parturient montes, nascetur ridiculus mus. Maecenas vel enim et metus semper fringilla. Donec ornare arcu. Maecenas faucibus ligula convallis nibh. Mauris dui quam, congue eu, commodo nec, tristique in, enim. Nulla auctor semper urna. Quisque a elit eu purus iaculis vestibulum. Aliquam dictum risus at odio. Fusce at lorem et elit faucibus placerat. Aenean velit. Proin elit odio, blandit et, scelerisque quis, pulvinar a, dui. Nunc magna dolor, bibendum ut, accumsan congue, tincidunt sit amet, neque. Proin consequat tincidunt lacus. In urna dui, congue nec, tincidunt sit amet, facilisis imperdiet, lorem. </li></ul><ul><li>Morbi sed nibh. Vivamus vitae dolor. Ut bibendum volutpat mi. Pellentesque quis magna non lectus elementum pretium. Aliquam quis est vitae arcu consequat fringilla. Cras magna risus, placerat eget, egestas consectetuer, ornare vel, felis. Nam ornare justo id orci mattis ultricies. Morbi luctus. Ut pretium odio ac libero. Nunc sollicitudin pharetra lorem. Aenean scelerisque, lacus eget ullamcorper scelerisque, ipsum urna viverra mi, eget viverra quam eros eget velit. Ut lacinia feugiat purus. Cum sociis natoque penatibus et magnis dis parturient montes, nascetur ridiculus mus. Etiam nunc nisl, aliquam blandit, luctus id, commodo laoreet, sem. Phasellus sit amet orci ut sapien vulputate pellentesque. Pellentesque dapibus purus et quam. Nam sit amet magna in neque dignissim sodales. Aenean non justo nec magna lobortis volutpat. </li></ul>Strategy Lorem ipsum dolor sit amet, consectetuer adipiscing elit. Cras in tortor. Sed posuere erat. Maecenas pulvinar nulla eu magna. Vivamus semper, risus ut egestas pulvinar, lectus ante feugiat quam, sit amet congue odio lacus ac ipsum. Aliquam suscipit, est ut volutpat vulputate, nulla felis pulvinar libero, non ornare libero ipsum tristique tortor. Fusce sed lorem vitae justo feugiat malesuada. Donec aliquet. Vivamus semper eros nec diam. Vivamus sem arcu, imperdiet nec, congue ac, scelerisque vel, nulla. Donec et mauris. Integer a nulla vulputate pede consequat euismod. Praesent molestie urna nec leo. Proin eros. Maecenas ac sem nec dui sodales tempus. Maecenas suscipit egestas velit. Suspendisse vel tortor. Proin imperdiet, sem nec aliquet ultrices, nunc est egestas eros, non hendrerit magna eros eget augue. Maecenas sed leo vitae leo faucibus vulputate. Proin dignissim eros at augue. Nam luctus nulla non nibh. Nam at lorem ac mauris laoreet viverra. In placerat consequat nunc. Donec rhoncus nunc ac urna. Integer vestibulum condimentum orci. Fusce velit turpis, malesuada quis, scelerisque ut, eleifend vitae, ipsum. Vestibulum eu erat. Vestibulum justo nisl, tincidunt et, semper vel, tristique quis, eros. Vestibulum tempus, massa vel consectetuer congue, erat magna consequat purus, a facilisis orci nibh vitae purus. Nam tincidunt venenatis ligula. Nunc orci nulla, ornare quis, lobortis viverra, dapibus at, turpis. Suspendisse sit amet nisl at enim tincidunt blandit. Curabitur augue est, suscipit sed, egestas sit amet, vehicula vitae, tellus. Maecenas nec metus vel nisi interdum pellentesque. Words Text Text Text 18% 300% 12% 1% through inappropriate means
  23. 23. how do you implement a business model?
  24. 24. with outdated methods
  25. 25. how do you measure the success of a business model?
  26. 26. we don’t
  27. 27. how do you change a business model and innovate ?
  28. 28. we re-invent the wheel
  29. 29. what is a business model?
  30. 30. VALUE PROPOSITION COST STRUCTURE CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS ACTIVITY CONFIGURATION CORE CAPABILITIES PARTNER NETWORK REVENUE STREAMS INFRASTRUCTURE CUSTOMER OFFER FINANCE a business model describes the value an organization offers to various customers and portrays the capabilities and partners required for creating, marketing, and delivering this value and relationship capital with the goal of generating profitable and sustainable revenue streams DISTRIBUTION CHANNELS [Osterwalder (2004) The Business Model Ontology] business model framework
  31. 31. case study
  32. 32. you become the new owner of a soccer club …
  33. 33. describe YOUR club’s business model
  34. 34. describing how a wealth management bank acquires its clients what value proposition do you offer, to which customer segments ?
  35. 35. VALUE PROPOSITION CUSTOMER SEGMENTS value proposition 1 value proposition 2 … target customer 1 target customer 2 … CUSTOMER OFFER what value proposition do you offer, to which customer segments? (model)
  36. 36. what value proposition do you offer, to which customer segments? (example) spectacular offensive football fans CUSTOMER OFFER advertising space & high visibility advertisers … …
  37. 37. how do you reach your customers ?
  38. 38. VALUE PROPOSITION COMMUNICATION & DISTRIBUTION CHANNELS value proposition 1 value proposition 2 … channel 1 channel 2 … OFFER how do you reach your customers? (model) CUSTOMER SEGMENTS target customer 1 target customer 2 … CUSTOMER
  39. 39. spectacular offensive football stadium & box office CUSTOMER OFFER how do you reach your customers? (example) club owned TV channel fans mobile phone TV advertising space & high visibility sales force advertisers
  40. 40. how do you build relationships?
  41. 41. VALUE PROPOSITION CUSTOMER RELATIONSHIP value proposition 1 value proposition 2 … mechanism 1 mechanism 2 … OFFER CUSTOMER SEGMENTS target customer 1 target customer 2 … CUSTOMER how do you build relationships with your customers? (model)
  42. 42. spectacular offensive football personalized website (ticketing) CUSTOMER OFFER team blog (RSS) fans … how do you build relationships with your customers? (example)
  43. 43. how do you earn your money with this business model?
  44. 44. VALUE PROPOSITION REVENUE STREAMS value proposition 1 value proposition 2 … revenue stream 1 revenue stream 2 … OFFER CUSTOMER SEGMENTS target customer 1 target customer 2 … FINANCE how do you earn your money with this business model? (model)
  45. 45. spectacular offensive football ticket sales FINANCE OFFER TV channel subscriber fees fans mobile phone TV subscriber fees advertising space & high visibility advertising revenues advertisers how do you earn your money with this business model? (example)
  46. 46. the big picture (business model)
  47. 47. <ul><li>team management </li></ul><ul><li>event management </li></ul><ul><li>venue management </li></ul><ul><li>ticketing </li></ul><ul><li>VIP relationship management </li></ul><ul><li>video crew </li></ul><ul><li>… </li></ul><ul><li>attractive soccer </li></ul><ul><li>360 º event (match, dining, shopping) </li></ul><ul><li>exclusive VIP lounges </li></ul><ul><li>merchandising </li></ul><ul><li>renting out stadium </li></ul><ul><li>… </li></ul><ul><li>stadium </li></ul><ul><li>POS networks </li></ul><ul><li>club website (+online TV) </li></ul><ul><li>club cable TV channel </li></ul><ul><li>mobile phone TV channel </li></ul><ul><li>… </li></ul><ul><li>play attractive & win games </li></ul><ul><li>brand management </li></ul><ul><li>video images </li></ul><ul><li>channel management </li></ul><ul><li>fans (families, etc.) </li></ul><ul><li>fan groups </li></ul><ul><li>companies </li></ul><ul><li>event/concert organizers </li></ul><ul><li>advertisers </li></ul><ul><li>… </li></ul><ul><li>team & maintenance </li></ul><ul><li>infrastructure management </li></ul><ul><li>marketing </li></ul><ul><li>video </li></ul><ul><li>Ticket fees & season tickets </li></ul><ul><li>online TV subscription revenues </li></ul><ul><li>revenue sharing cable & mobile phone TV </li></ul><ul><li>renting out stadium for events </li></ul><ul><li>advertising revenues </li></ul><ul><li>merchandising revenues </li></ul><ul><li>food & beverages </li></ul><ul><li>ticketing services </li></ul><ul><li>promoters </li></ul><ul><li>ad placement </li></ul><ul><li>telecom operator </li></ul><ul><li>TV operator </li></ul><ul><li>… </li></ul><ul><li>personalized web profile </li></ul><ul><li>newsletter </li></ul><ul><li>team blog (RSS) </li></ul><ul><li>VIP events with team </li></ul><ul><li>… </li></ul>Value Proposition Distribution Channel Target Customer Customer Relationship Partner Network Activity Configuration Core Capability Cost Structure Revenue Model the big picture
  48. 48. <ul><li>team management </li></ul><ul><li>event management </li></ul><ul><li>venue management </li></ul><ul><li>ticketing </li></ul><ul><li>VIP relationship management </li></ul><ul><li>video crew </li></ul><ul><li>… </li></ul><ul><li>attractive soccer </li></ul><ul><li>360 º event (match, dining, shopping) </li></ul><ul><li>exclusive VIP lounges </li></ul><ul><li>merchandising </li></ul><ul><li>renting out stadium </li></ul><ul><li>… </li></ul><ul><li>stadium </li></ul><ul><li>POS networks </li></ul><ul><li>club website (+online TV) </li></ul><ul><li>club cable TV channel </li></ul><ul><li>mobile phone TV channel </li></ul><ul><li>… </li></ul><ul><li>play attractive & win games </li></ul><ul><li>brand management </li></ul><ul><li>video images </li></ul><ul><li>channel management </li></ul><ul><li>fans (families, etc.) </li></ul><ul><li>fan groups </li></ul><ul><li>companies </li></ul><ul><li>event/concert organizers </li></ul><ul><li>advertisers </li></ul><ul><li>… </li></ul><ul><li>team & maintenance </li></ul><ul><li>infrastructure management </li></ul><ul><li>marketing </li></ul><ul><li>video </li></ul><ul><li>Ticket fees & season tickets </li></ul><ul><li>online TV subscription revenues </li></ul><ul><li>revenue sharing cable & mobile phone TV </li></ul><ul><li>renting out stadium for events </li></ul><ul><li>advertising revenues </li></ul><ul><li>merchandising revenues </li></ul><ul><li>food & beverages </li></ul><ul><li>ticketing services </li></ul><ul><li>promoters </li></ul><ul><li>ad placement </li></ul><ul><li>telecom operator </li></ul><ul><li>TV operator </li></ul><ul><li>… </li></ul><ul><li>personalized web profile </li></ul><ul><li>newsletter </li></ul><ul><li>team blog (RSS) </li></ul><ul><li>VIP events with team </li></ul><ul><li>… </li></ul>Value Proposition Distribution Channel Target Customer Customer Relationship Partner Network Activity Configuration Core Capability Cost Structure Revenue Model value creates revenues
  49. 49. <ul><li>team management </li></ul><ul><li>event management </li></ul><ul><li>venue management </li></ul><ul><li>ticketing </li></ul><ul><li>VIP relationship management </li></ul><ul><li>video crew </li></ul><ul><li>… </li></ul><ul><li>attractive soccer </li></ul><ul><li>360 º event (match, dining, shopping) </li></ul><ul><li>exclusive VIP lounges </li></ul><ul><li>merchandising </li></ul><ul><li>renting out stadium </li></ul><ul><li>… </li></ul><ul><li>stadium </li></ul><ul><li>POS networks </li></ul><ul><li>club website (+online TV) </li></ul><ul><li>club cable TV channel </li></ul><ul><li>mobile phone TV channel </li></ul><ul><li>… </li></ul><ul><li>play attractive & win games </li></ul><ul><li>brand management </li></ul><ul><li>video images </li></ul><ul><li>channel management </li></ul><ul><li>fans (families, etc.) </li></ul><ul><li>fan groups </li></ul><ul><li>companies </li></ul><ul><li>event/concert organizers </li></ul><ul><li>advertisers </li></ul><ul><li>… </li></ul><ul><li>team & maintenance </li></ul><ul><li>infrastructure management </li></ul><ul><li>marketing </li></ul><ul><li>video </li></ul><ul><li>Ticket fees & season tickets </li></ul><ul><li>online TV subscription revenues </li></ul><ul><li>revenue sharing cable & mobile phone TV </li></ul><ul><li>renting out stadium for events </li></ul><ul><li>advertising revenues </li></ul><ul><li>merchandising revenues </li></ul><ul><li>food & beverages </li></ul><ul><li>ticketing services </li></ul><ul><li>promoters </li></ul><ul><li>ad placement </li></ul><ul><li>telecom operator </li></ul><ul><li>TV operator </li></ul><ul><li>… </li></ul><ul><li>personalized web profile </li></ul><ul><li>newsletter </li></ul><ul><li>team blog (RSS) </li></ul><ul><li>VIP events with team </li></ul><ul><li>… </li></ul>Value Proposition Distribution Channel Target Customer Customer Relationship Partner Network Activity Configuration Core Capability Cost Structure Revenue Model creating value requires infrastructure
  50. 50. <ul><li>team management </li></ul><ul><li>event management </li></ul><ul><li>venue management </li></ul><ul><li>ticketing </li></ul><ul><li>VIP relationship management </li></ul><ul><li>video crew </li></ul><ul><li>… </li></ul><ul><li>attractive soccer </li></ul><ul><li>360 º event (match, dining, shopping) </li></ul><ul><li>exclusive VIP lounges </li></ul><ul><li>merchandising </li></ul><ul><li>renting out stadium </li></ul><ul><li>… </li></ul><ul><li>stadium </li></ul><ul><li>POS networks </li></ul><ul><li>club website (+online TV) </li></ul><ul><li>club cable TV channel </li></ul><ul><li>mobile phone TV channel </li></ul><ul><li>… </li></ul><ul><li>play attractive & win games </li></ul><ul><li>brand management </li></ul><ul><li>video images </li></ul><ul><li>channel management </li></ul><ul><li>fans (families, etc.) </li></ul><ul><li>fan groups </li></ul><ul><li>companies </li></ul><ul><li>event/concert organizers </li></ul><ul><li>advertisers </li></ul><ul><li>… </li></ul><ul><li>team & maintenance </li></ul><ul><li>infrastructure management </li></ul><ul><li>marketing </li></ul><ul><li>video </li></ul><ul><li>Ticket fees & season tickets </li></ul><ul><li>online TV subscription revenues </li></ul><ul><li>revenue sharing cable & mobile phone TV </li></ul><ul><li>renting out stadium for events </li></ul><ul><li>advertising revenues </li></ul><ul><li>merchandising revenues </li></ul><ul><li>food & beverages </li></ul><ul><li>ticketing services </li></ul><ul><li>promoters </li></ul><ul><li>ad placement </li></ul><ul><li>telecom operator </li></ul><ul><li>TV operator </li></ul><ul><li>… </li></ul><ul><li>personalized web profile </li></ul><ul><li>newsletter </li></ul><ul><li>team blog (RSS) </li></ul><ul><li>VIP events with team </li></ul><ul><li>… </li></ul>Value Proposition Distribution Channel Target Customer Customer Relationship Partner Network Activity Configuration Core Capability Cost Structure Revenue Model infrastructure generates costs
  51. 51. <ul><li>team management </li></ul><ul><li>event management </li></ul><ul><li>venue management </li></ul><ul><li>ticketing </li></ul><ul><li>VIP relationship management </li></ul><ul><li>video crew </li></ul><ul><li>… </li></ul><ul><li>attractive soccer </li></ul><ul><li>360 º event (match, dining, shopping) </li></ul><ul><li>exclusive VIP lounges </li></ul><ul><li>merchandising </li></ul><ul><li>renting out stadium </li></ul><ul><li>… </li></ul><ul><li>stadium </li></ul><ul><li>POS networks </li></ul><ul><li>club website (+online TV) </li></ul><ul><li>club cable TV channel </li></ul><ul><li>mobile phone TV channel </li></ul><ul><li>… </li></ul><ul><li>play attractive & win games </li></ul><ul><li>brand management </li></ul><ul><li>video images </li></ul><ul><li>channel management </li></ul><ul><li>fans (families, etc.) </li></ul><ul><li>fan groups </li></ul><ul><li>companies </li></ul><ul><li>event/concert organizers </li></ul><ul><li>advertisers </li></ul><ul><li>… </li></ul><ul><li>team & maintenance </li></ul><ul><li>infrastructure management </li></ul><ul><li>marketing </li></ul><ul><li>video </li></ul><ul><li>Ticket fees & season tickets </li></ul><ul><li>online TV subscription revenues </li></ul><ul><li>revenue sharing cable & mobile phone TV </li></ul><ul><li>renting out stadium for events </li></ul><ul><li>advertising revenues </li></ul><ul><li>merchandising revenues </li></ul><ul><li>food & beverages </li></ul><ul><li>ticketing services </li></ul><ul><li>promoters </li></ul><ul><li>ad placement </li></ul><ul><li>telecom operator </li></ul><ul><li>TV operator </li></ul><ul><li>… </li></ul><ul><li>personalized web profile </li></ul><ul><li>newsletter </li></ul><ul><li>team blog (RSS) </li></ul><ul><li>VIP events with team </li></ul><ul><li>… </li></ul>Value Proposition Distribution Channel Target Customer Customer Relationship Partner Network Activity Configuration Core Capability Cost Structure Revenue Model the profit zone <
  52. 52. the process of designing a business model
  53. 53. the focus of the business modeler
  54. 54. user-centered
  55. 55. Nokia: Jan Chipchase
  56. 56. creativity & exploration
  57. 57. Googleplex
  58. 58. interdisciplinary approach
  59. 59. Grameen Phone Bangladesh
  60. 60. holistic design
  61. 61. Apple iTunes & iPod
  62. 62. strategic fit
  63. 63. Amazon.com
  64. 64. the business modeler’s toolbox
  65. 65. co-creation
  66. 66. ideation
  67. 67. visualization
  68. 68. prototyping
  69. 69. the design process
  70. 70. 1. identify interdisciplinary stakeholders -> set-up team
  71. 71. 2. understand business environment –> frame problem
  72. 72. 3. suspend reality -> ideate
  73. 73. 4. bring back reality -> prototype
  74. 74. 5. chose suitable design -> decide
  75. 75. 6. sketch out projects & workload -> draw implementation plan
  76. 76. 7. outline key indicators to follow -> choose measures
  77. 77. 8. select the right teams and people -> make responsible
  78. 78. 9. execute the plan -> manage implementation & change
  79. 79. 10. evaluate, learn and redesign -> manage improvement
  80. 80. examples
  81. 81. to come…
  82. 82. feedback for this draft ppt welcome!! [email_address]
  83. 84. Alexander Osterwalder, PhD [email_address] www.arvetica.com
  84. 85. all photos from Flickr under a creative commons license authors indicated in comment page of ppt
  85. 86. When you stop learning, you stop competing. We scan the knowledge universe for you, across disciplines and industries. We transfer the best methods, tools and theory in business to your organization. we build knowledge Change does not happen accidentally it has to be managed. We help you align strategy, people and processes with respect to your organizational culture and values. we manage change Specific problems require specific skills that you do not necessarily dispose of in-house. Through our interdisciplinary network we connect you with leading domain experts. we connect Having a great vision is not sufficient - implementation counts. We help you reconcile long term views with short term actions. We make strategy everyone's job by translating it into pragmatic and prioritized projects. we operationalize Nobody knows your business environment better than yourself. We co-design your strategic vision by building on your knowledge. Through group thinking we find the right answers to the right questions together we co-create
  86. 87. annexes
  87. 88. annex I business model template
  88. 89. VALUE PROPOSITION COST STRUCTURE CUSTOMER RELATIONSHIP TARGET CUSTOMER DISTRIBUTION CHANNEL VALUE CONFIGURATION CORE CAPABILITIES PARTNER NETWORK REVENUE STREAMS INFRASTRUCTURE CUSTOMER OFFER FINANCE a business model describes the value an organization offers to various customers and portrays the capabilities and partners required for creating, marketing, and delivering this value and relationship capital with the goal of generating profitable and sustainable revenue streams
  89. 90. VALUE PROPOSITION COST STRUCTURE CUSTOMER RELATIONSHIP TARGET CUSTOMER DISTRIBUTION CHANNEL VALUE CONFIGURATION CORE CAPABILITIES PARTNER NETWORK REVENUE STREAMS gives an overall view of a company's bundle of products and services portrays the network of cooperative agreements with other companies describes the channels to communicate and get in touch with customers describes the arrangement of activities and resources explains the relationships a company establishes with its customers sums up the monetary consequences to run a business model describes the revenue streams through which money is earned describes the customers a company wants to offer value to outlines the capabilities required to run a company's business model INFRASTRUCTURE CUSTOMER OFFER FINANCE describing a company’s business model
  90. 91. VALUE PROPOSITION value proposition 1 value proposition 2 … OFFER describing a company’s offer
  91. 92. VALUE PROPOSITION TARGET CUSTOMER value proposition 1 value proposition 2 … target customer 1 target customer 2 … CUSTOMER OFFER describing who a company offers value to
  92. 93. VALUE PROPOSITION TARGET CUSTOMER DISTRIBUTION CHANNEL value proposition 1 value proposition 2 … distribution channel 1 distribution channel 2 … target customer 1 target customer 2 … CUSTOMER OFFER describing how a company reaches its customers
  93. 94. VALUE PROPOSITION TARGET CUSTOMER CUSTOMER RELATIONSHIP value proposition 1 value proposition 2 … relationship type 1 relationship type 2 … target customer 1 target customer 2 … CUSTOMER OFFER describing the relationships a company builds
  94. 95. TARGET CUSTOMER REVENUE STREAM revenue stream 1 revenue stream 2 … target customer 1 target customer 2 … FINANCE VALUE PROPOSITION value proposition 1 value proposition 2 … OFFER CUSTOMER describing how a company makes money
  95. 96. CORE CAPABILITIES VALUE PROPOSITION core capability 1 core capability 2 … value proposition 1 value proposition 2 … OFFER INFRASTRUCTURE describing what capabilities are required
  96. 97. describing what activities are required VALUE PROPOSITION VALUE CONFIGURATION CORE CAPABILITIES value proposition 1 value proposition 2 … core capability 1 core capability 2 … activity 1 activity 2 … INFRASTRUCTURE OFFER
  97. 98. describing the partners that leverage the business model VALUE PROPOSITION PARTNER NETWORK CORE CAPABILITIES value proposition 1 value proposition 2 … core capability 1 core capability 2 … partner 1 partner 2 … INFRASTRUCTURE OFFER
  98. 99. VALUE PROPOSITION COST STRUCTURE cost account 1 cost account 2 … value proposition 1 value proposition 2 … FINANCE INFRASTRUCTURE OFFER describing the costs of a business model CORE CAPABILITIES core capability 1 core capability 2 …
  99. 100. annex ii other

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