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Design your next
revenue model
Moniek Tiel Groenestege
Moniek.tiel.groenestege@businessmodelsinc.com
Business Models Inc.
San Francisco Amsterdam HQ TaipeiNew-York Brisbane
Stay ahead of competition
“It is all about you
today
“A structure that states &
explains the revenue
earning strategy of a
company
1
Value over price
2
Business models
are fluid
3
It’s a journey of
exploration
…
Where to start?
Show me
the money
guide
1
Value over price
Make money as fast as you can
“Nobody pays for
something they don’t
value
“One question…
“Where is value
created?
Business model canvas
Key partners Key activities
Key resources
Value propositions Customer relationships
Channels
Customer segments
Revenue streamsCost structure
Business Models Inc © www.businessmodelgeneration.com
“A business model describes
the rationale of how an
organization creates, delivers,
and captures value.
Business model canvas
Key partners Key activities
Key resources
Value propositions Customer relationships
Channels
Customer segments
Revenue streamsCost structure
Business Models Inc © www.businessmodelgeneration.com
Do we identify a target customer
segment?
Can we identify the need?
And are they willing to pay for this?
Business model canvas
Key partners Key activities
Key resources
Value propositions Customer relationships
Channels
Customer segments
Revenue streamsCost structure
Business Models Inc © www.businessmodelgeneration.com
A great startup
example
Meet Scott
Never won a fight
His vision…
Reduce headaches in the bar…
With an app…
You start drinking with your friends
You want to pay and leave…
Pay at the bar with an app
So where
to start?
?
IT IS NOT
ABOUT
THE PRODUCT
@patrickpijl
It is about
the
business
model!
!!
What does the
#1st business
model look like?
Business model canvas
Key partners Key activities
Key resources
Value propositions Customer relationships
Channels
Customer segments
Revenue streamsCost structure
Business Models Inc © www.businessmodelgeneration.com
Onetab #1
Develop &
maintain
app
Drinkers
App stores
App
download
fees
People
App
developm.
Social
media
Really cool
app for
buying
drinks
Dev Team
We almost forgot something…
What is our
key
assumption
here?
?
Drinkers want to
pay 99c for an app
to buy beers
Customers are still the party animals
What they learned
after visiting 40
pubs…
Nobody
wanted to
pay for an
app!
!!
His dream was destroyed…
But he had a point
of view…
Become financially independent
Improve the experience in the bars
So he went on…
Go out of the
building again!
Bar owners liked the app!
Order process went faster & no admin hassle
What does
#2nd
business
model look
like? ?
Business model canvas
Key partners Key activities
Key resources
Value propositions Customer relationships
Channels
Customer segments
Revenue streamsCost structure
Business Models Inc © www.businessmodelgeneration.com
Onetab #2
Develop
customer
base
Drinkers
App stores
Pay per
use
People
App
developm.
Social
Media
Keep the
night
moving, no
worries
about
paying
Marketeers
& Dev
Team
ONE TAB
APP
Faster
order
process &
more sales
Staff
Free
App store
fees
POS
software
provider
(H&L
Australia)
Develop &
maintain
app
But his team was puzzled
Nobody downloaded the app
Bar adoption was slow…
So,
what to do next?
How do you
visit each bar
in Australia? ?
How many sales people to hire?
So he looked for
investors
Mark
Carnegie
Show me clients first!
Then H&L
knocked on the
door…
Distribution at scale!
Business model canvas
Key partners Key activities
Key resources
Value propositions Customer relationships
Channels
Customer segments
Revenue streamsCost structure
Business Models Inc © www.businessmodelgeneration.com
Onetab #3
Develop
customer
base Drinkers
Point of
Sales Cash
Register
Pay per
use
People
App
developm.
Social
Media
Keep the
night
moving, no
worries
about
paying
Marketeers
& Dev
Team
ONE TAB
APP
Faster
order
process &
more sales
Staff
Free
App store
fees
POS
software
provider
(H&L
Australia)
Develop &
maintain
app
What does
the next
business
model look
like? ?
Power of data.
“In God we trust. For everything
else there’s data.”
Mark bought Scott’s company
What did
Scott learn
from his
journey ?
It is easy to get distracted in the short run
And the ride is not always fun…
Value first.
2
Business models
are fluid
2
Business models
are fluid
Technology
shift
“Intelligent” Artificial Intelligence
Augmented Reality
Blockchain – Here to stay?
Automation - Robotics
Internet of Things. - Intelligent Digital Mesh
People shift
In legal support, from expensive lawyers…
…to Do It Yourself - online
In mobility, from ownership…
…to access through BMW Drivenow - IoT
In retail shopping, from visiting the store…
…to food delivery by Amazon Fresh… - AI
…to Foodboxes.
In personal mobility, from waiting…
…to instant serving and comfort
In shopping, from physical 9-5 stores…
…to 24/7 shopping and delivery…
…even in your car! (by Amazon, who else?)
Why?
1. Simplified
2. Minimized
distractions
3. Flexibility
4. Frictionless
Business
models shift
Written by:
Patrick van der Pijl
and Justin Lokitz
Designed by:
Maarten van Lieshout
Written by:
Patrick van der Pijl
and Justin Lokitz
Designed by:
Maarten van Lieshout
EXPLORETHE EDGE
OF INNOVATION
AND CREATE YOUR
BUSINESS MODEL
OF TOMORROW.
Written by:
Patrick van der Pijl
and Justin Lokitz
Designed by:
Maarten van Lieshout
Explore the edge of
innovation, inspire
change and shift
your strategies.
Written by the authors of Design a Better Business and the publishers of Business Model
Generation: Patrick van der Pijl and Justin Lokitz. Designed by Maarten van Lieshout.
inspire change
“
Welcome
to the
late nineties
Marc Randolph and
Reed Hastings
VHS tapes too
expensive to
ship
Ship DVD’s
by mail
A linear
business model
start 1998
Business model canvas
Key partners Key activities
Key resources
Value propositions Customer relationships
Channels
Customer segments
Revenue streamsCost structure
Business Models Inc © www.businessmodelgeneration.com
USA
Mass
Market
Rental
Price
Comfort
Mail
order
Network
Titles
925 DVD’s
Distri-
bution
Sales
Netflix #1
1 DVD = 2X revenue
Netflix Linear business model
Flat fee
unlimited rentals
in 1999
Business model canvas
Key partners Key activities
Key resources
Value propositions Customer relationships
Channels
Customer segments
Revenue streamsCost structure
Business Models Inc © www.businessmodelgeneration.com
USA
Mass
Market
Price
Comfort
Mail
order
Network
Titles
Distri-
bution
35.000
films
Sub
scription
1mln DVD’s shipped
every day
Netflix #2
Personalized
video
recommendation
in 2006
Video
on demand
in 2007
Business model canvas
Key partners Key activities
Key resources
Value propositions Customer relationships
Channels
Customer segments
Revenue streamsCost structure
Business Models Inc © www.businessmodelgeneration.com
USA
Mass
Market
Price
Comfort
Distri-
bution
Sub
scription
Data
Algorithm
Video on
demand
Internet
TV
Netflix #3
Kevin, a new format
We are used to think in linear formats
Let’s publish in chapters all at once
“The worst idea!
Ruins’ our revenue model & people don’t want this
“Device and length
are irrelevant
Kevin Spacey
People want stories… about Frank Underwood
“At a reasonable
price
Kevin Spacy
“NETFLIX
immediately said:
YES!Is Kevin lucky or what?
Business model canvas
Key partners Key activities
Key resources
Value propositions Customer relationships
Channels
Customer segments
Revenue streamsCost structure
Business Models Inc © www.businessmodelgeneration.com
Content
Mass
Market
Sub-
scription
Price
Acces-
ibility
Unique
content
Netflix.co
m
Multiple
devicesAlgorithm
Commu-
nications
Network
IP
Cash
Content
SLA
Self
Service
Rating
Product
Placeme
nt
Netflix #4
Business
models change
over time.
3
It’s a journey of
exploration
There are many options
“Traditional revenue
models
Let’s look at 3 most common
1
Pay per product
One time transaction
Business model canvas
Key partners Key activities
Key resources
Value propositions Customer relationships
Channels
Customer segments
Revenue streamsCost structure
Business Models Inc © www.businessmodelgeneration.com
Giant
Product
sales
High
quality
bike
Men
2
Freemium
Free & paid at the same time
3
Bait & Hook
Products at a low price, refills are expensive
Business model canvas
Key partners Key activities
Key resources
Value propositions Customer relationships
Channels
Customer segments
Revenue streamsCost structure
Business Models Inc © www.businessmodelgeneration.com
Nespresso
X
“What we see
today…
Written by:
Patrick van der Pijl
and Justin Lokitz
Designed by:
Maarten van Lieshout
Written by:
Patrick van der Pijl
and Justin Lokitz
Designed by:
Maarten van Lieshout
EXPLORETHE EDGE
OF INNOVATION
AND CREATE YOUR
BUSINESS MODEL
OF TOMORROW.
Written by:
Patrick van der Pijl
and Justin Lokitz
Designed by:
Maarten van Lieshout
Explore the edge of
innovation, inspire
change and shift
your strategies.
Written by the authors of Design a Better Business and the publishers of Business Model
Generation: Patrick van der Pijl and Justin Lokitz. Designed by Maarten van Lieshout.
inspire change
1
Everything as a
service
Meet Dirk
A flat tire…
What’s his
solution?
He went to the bike repair shop
BIKING! I need to be able to bike!
Definition ‘as a service’
A move towards getting
the job done by selling the
use of a product
2
Pay per use
LIME operates as a platform through IOT
Find your LIME scooter, and ACTIVATE and DRIVE
Keep track of your rides and costs
Business model canvas
Key partners Key activities
Key resources
Value propositions Customer relationships
Channels
Customer segments
Revenue streamsCost structure
Business Models Inc © www.businessmodelgeneration.com
Lime
You and
me
Fee
(time &
distance)
Scooter
ride
from
A to B
Platform
Fun
App
Definition ‘pay per use’
When the customer is
charged for a specific
usage of a product or
service.
3
Platform
You and me…
Easy order and pick up
Clear price upfront
Review your driver
No cash to leave the cab
The driver – income opportunity
Easy pick up – no hassle
They review you too!
Easy administration
Business model canvas
Key partners Key activities
Key resources
Value propositions Customer relationships
Channels
Customer segments
Revenue streamsCost structure
Business Models Inc © www.businessmodelgeneration.com
UBER Platform
You and
me
Fee
(time
and
distance)
Taxi
services
from
A to B
Platform
Platform
promotio
n
Personal
App
%
DRIVERS
Income
opportun
ity
Promotio
n
Develop
ment
Definition ‘platform’
Creates value by
facilitating exchanges
between consumers
and producers.
For mobility only already a lot of options!
“No single right
solution
To summarize
+
1
Value over price
“Are people willing to pay”
2
Business models
are fluid
3
It’s a journey of
exploration
“No single right
solution
It is all about learning
Start experimenting
The sooner your learn, the sooner you succeed
Only then you will conquer the world.
Be the gamechanger…
“Where is value
created next?
Moniek Tiel Groenestege
+31 6 18 52 13 91
Moniek@businessmodelsinc.com
www.businessmodelsinc.com

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