Business model generation by designers


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Russian team of Design students from BHSAD (Moscow) created a viable business model for the lamp design concept. A great example of Business by Design!

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Business model generation by designers

  1. 1. Business modelgeneration Made by Yulia Brazauskayte Elizaveta Yudina Ksenia Shlyaga
  2. 2. Tetri-tower + Interactive + Customizable + Flat and lightweight + Not expensive + Eco friendly + Safe for children from 4 y.o.
  3. 3. 100mm 50mm 50mm 100mm Tetri 50mm tower407mm 400mm 100mm 50mm Light weight package x6 50mm 7 mm 150mm 350mm
  4. 4. Value PropositionsWhat value do we deliver to the customer?Which one of our customer’s problems are we helping to solve?What bundles of products and services are we offering to eachCustomer Segment?Which customer needs are we satidfying?characteristicsNewness nd Tre io n) a ctPerformance te rCustomization “Getting the (i nJob Done” DesignBrand/StatusPriceCost ReductionRisk ReductionAccessibility Convenience/Usability Trendy The consumer became not only well-versed in the proposed goods but he became also very moody. He has definitely lacking in conventional products, which were previously. Therefore, in the foreground - interac- tivity. Products help not only being satisfied with the needs and solve the problems and but also include interaction with the user.
  5. 5. Customer SegmentsFor whom are we creating value?Who are our most important customers?Mass MarketNiche MarketSegmented DiversifiedMulti-sided Platform eks To u r ng e ists De sig I D esign Version with Russian architecture Designers made stuff lovers Young trendy families
  6. 6. Customer RelationshipsWhat type of relationship does each of our Customer Segments expectus to establish and maintain with them?Which ones have we established?How are they integrated with the rest of our business model?How costly are they?examples:Personal assistanceDedicated Personal AssistanceSelf-Service r vic eAutomated Services Communities e l f-seCo-creation S I nte r ati ve c o- c re atio n
  7. 7. ChannelsThrough which Channels do our Customer Segments want to be reached?How are we reaching them now?How are our Channels integrated?Which ones work best?Which ones are most cost-efficient?How are we integrating them with customer routines?channel phases:1. Awareness De s i g nHow do we raise awareness about ourcompany’s products and services?2. Evaluation s h opsHow do we help customers evaluate ourorganization’s Value Proposition?3. PurchaseHow do we allow customers to purchasespecific products and services?4. DeliveryHow do we deliver a Value Proposition tocustomers? Ou r5. After salesHow do we provide post-purchase customersupport? i nte r n et De s i g n I nte r n et s h op m a r kets s h ops
  8. 8. 14 shops in Moscow We are constantl y in search of ne products. If your w ideas and product meets o - originality, uniq ur requirements ueness, impecc waiting for inform able quality, ation at product@ First of all we are interested in the categories - lifes following produc tyle, stationery t supplies, gadge and office ts. «APPLE» Light YUBZ Mood Travel Light 3050 RUB 1810 RRepublica - a long-term project which aims to create a network for the Russianmarket of new books and music stores, guaranteeing end-user quality andcomfort. Republica - a social project that combines modern people seekingedification and takes a proactive stance, not indifferent to what is happeningaround them. Republica is for those who prefer to be first among equal.
  9. 9. Kawai Factory is actively cooperating with other domestic and foreign design studios and production associations, which issue popular with our products that we offer our customers.Kawaii factory Association Kawai Factory designs, manufactures and sells handbags,accessories, gifts.Average price 1000 RUBThe product range: gifts,original presents, watch, all for apple, purses, covers,office, bags, laptop, magnets,cups, accessories, umbrellas, In traveling, for auto,home, perfumery, postcards, cream, applications, games, clothing,In the holiday.
  10. 10. 3 shops in MoscowDesignBoom - this is a new format for the Russian market design-shop. The main ideaof the project - to provide design high quality product at an affordable price. If earlierdesigner items can only be seen in the pictures in the magazines and book on foreignwebsites, now you can see these things in person, touch and then buy, if anything like it.Average price 5000The product range: original works, game, umbrellas, bags,kitchen, serving,bar,decoration, lighting, furniture, householdequipment, audio, outdoor, office, for animals.
  11. 11. 6 shops in Moscow Offers of cooperation, as well as ideas and inventions send here: news@buro-nahodok.ruBuro nahodok there is no usual categories, such as “unique gifts for men” or “uniquegifts for my birthday,” but the fact and interesting look. We do not haveanything familiar. Buro nahodok will only include the most unusual andoriginal gifts: often touching, sometimes challenging, sometimes crazy, butalways emotional.Average price 1500The product range: original works, games, gifts decoration, lighting,furniture, household equipment, audio, outdoor, office.
  12. 12. Fairs and Open markets http:/ / http:/ / http:/ / EnjoyMe - Shop of unusual, Our philosophy - a commitment The purpose of the presentation of creative and fun gifts, with a to the stylish, modern, non- our store is on the domestic market huge selection of amazing and trivial design, which in its of high quality designer goods world- at the same time functional entirety emphasizes the dignity class quality at democratic prices. objects. Fun souvenirs and of each individual item. Every Products with design awards. designer fashion, as well as item from our store will be able unusual creative gifts. New to become a worthy exclusive «Leti 2» ideas, reasonable prices and decoration of your interior. table lamp the highest quality - these are 14 220 Rub the features that characterize all the products that our site is Contra Forma original gifts. UHU Light 2 200 RubChristmas Fairs in Moscow lamp for reading «Organic» "Little House" Oil Lamp 3 978 Rub 4 220 Rub Calligaris Carina 5 850 Rub Portable lamp Svetosfera «Jerry» 1 100 Rub 5 990 Rub BHSAD Fairs
  13. 13. Key ActivitiesWhat Key Activities do our Value Propositions require? Our DistributionChannels?Customer Relationships?Revenue streams?categoriesProductionProblem Solving Platform/Network Ma r keti n g O bje cts fo r s a le ratio n P ro du c t li ne p repa m e nt de ve l op
  14. 14. Cost StructureWhat are the most important costs inherent in our business model?Which Key Resources are most expensive?Which Key Activities are most expensive?is your business more:Cost Driven(leanest cost structure, low price value proposition,maximum automation, extensive outsourcing)Value Driven( focused on value creation, premium value proposition)sample characteristics:Fixed Costs (salaries, rents, utilities)Variable costs Ma rk eti n gEconomies of scaleEconomies of scope Bra n d deve l o p m e nt P ro du ctio n
  15. 15. prime cost = + + + + Cardboard LEDs Tracing paper PVA Glue on/off button 102.57 Rub 60 Rub 1 Rub 6.08 Rub battery holder cabels Beermat Board Flexible silicon led strip Tracing paper Glue 40gr + 34.19 Rub/ Sheet 50 Rub / Meter 420x20m 6.08 RUB per 1 70x100 mm 35gr / m in package 72 500 mg Price: 64,88 RUB 1,15 mm Shenzhen Good http://www.lotos. Electronics Co., Ltd. su/index.html 100 sheets in a pack ~300 Rub Laser Cutting prime cost per lamp aprox. 100 rub/lamp Laser cutting3 mm cardboad - 11 RUB/m
  16. 16. cost estimation Fixed cost Initial outlayOffice rent ~ 30000-40000 Rub/Month Laser cutting machine ~ 200 000 Rub Transportation ~ 500 Rub/day Internet shop creaing ~ 30 000Rub Materials ~ 200 Rub/Lamp Brand building ~ 40 000 Rub 2 workers ~ 50000Rub/Month 4 month of advertising on social networks ~ 20 000Rub Web site promotion ~ 15 000Rub Advertising leaflets Web Site Support 3000Rub/Year
  17. 17. How much money do we need? Internet Shop 30 000 Rub 400 000RubBrand Building 40 000 Rub 3 month office rent & salaries Initial batch 240 000 Rub 300 pieces 90 000 Rub
  18. 18. Key ResourcesWhat Key Resources do our Value Propositions require?Our Distribution Channels? Customer Relationships?Revenue Streams?types of resourcesPhysicalIntellectual (brand patents,copyrights, data) Human et fo rFinancial Bud g St a r t up Laser cu tti n g Bra n d
  19. 19. Key PartnersWho are our Key Partners?Who are our key suppliers?Which Key Resources are we acquiring from partners?Which Key Activities do partners perform?motivations forpartnerships:Optimization and economyReduction of risk anduncertainty Su pp l ie rs i b u to rsAcquisition of particular D ist rresources and activities De s i g n s h ops Shenzhen Good Electronics Co., Ltd
  20. 20. Revenue StreamsFor what value are our customers really willing to pay?For what do they currently pay?How are they currently paying?How would they prefer to pay?How much does each Revenue Stream contribute to overall revenues?types: fixed pricing: dynamic pricing:Asset sale List Price Negotiation( bargaining)Usage fee Product feature Yield ManagementSubscription Fees dependent Customer Real-time-MarketLending/Renting/Leasing segment dependent VolumeLicensing dependent e e dsBrokerage fees Advertising P ro c f ro m s a le flo ati n g pric es
  21. 21. Designed by: Yulia Brazauskayte Day Month YearThe Business Model Canvas On: Designed for: Professional Development & Employability module. Product design, Level 5. Yelizaveta Yudina No. Ksenia Shlyaga Iteration: Key Partners Key Activities Value Propositions Customer Relationships Customer Segments Who are our Key Partners? What Key Activities do our Value Propositions require? What value do we deliver to the customer? What type of relationship does each of our Customer For whom are we creating value? Who are our key suppliers? Our Distribution Channels? Which one of our customer’s problems are we helping to solve? Segments expect us to establish and maintain with them? Who are our most important customers? Which Key Resources are we acquiring from partners? Customer Relationships? What bundles of products and services are we offering to each Customer Segment? Which ones have we established? g Marketin Mass Market Which Key Activities do partners perform? Revenue streams? Which customer needs are we satisfying? How are they integrated with the rest of our business model? Niche Market Segmented motivations for partnerships: Optimization and economy categories Production characteristics Newness How costly are they? Diversified Multi-sided Platform Reduction of risk and uncertainty Problem Solving Performance examples Customization Personal assistance ne Acquisition of particular resources and activities Platform/Network roduct li “Getting the Job Done” Dedicated Personal Assistance Design Self-Service P Brand/Status Automated Services Price Communities nt velopme Cost Reduction Co-creation Self Design Risk Reduction de Accessibility Distributors Convenience/Usability service geeks Objects Trend interactive Design for sale (interactio n) co-creation I shops preparat ion Design Key Resources Channels What Key Resources do our Value Propositions require? Through which Channels do our Customer Segments Our Distribution Channels? Customer Relationships? want to be reached? Supplier Revenue Streams? How are we reaching them now? Self service How are our Channels integrated? http://www s types of resources Physical Which ones work best? Budget Intellectual (brand patents, copyrights, data) Human Which ones are most cost-efficient? http://pap kiskrepki. t Financial (after sales) How are we integrating them with customer routines? Tourists ru/ Shenzhen for channel phases: Good 1. Awareness Electronic Internet How do we raise awareness about our company’s products and services? s Co., Ltd 2. Evaluation Start up http://www tion How do we help customers evaluate our organization’s Value Proposition? 3. Purchase ndex. c How do we allow customers to purchase specific products and services? shops odu html 4. Delivery How do we deliver a Value Proposition to customers? Pr 5. After sales http://lase How do we provide post-purchase customer support? r-compan Brand Design markets Design shops Cost Structure Revenue Streams What are the most important costs inherent in our business model? For what value are our customers really willing to pay? g Marketin Producti on Proceeds Which Key Resources are most expensive? For what do they currently pay? Which Key Activities are most expensive? How are they currently paying? How would they prefer to pay? e from sal is your business more: Cost Driven (leanest cost structure, low price value proposition, maximum automation, extensive outsourcing) How much does each Revenue Stream contribute to overall revenues? Brand Value Driven ( focused on value creation, premium value proposition) Logistics sample characteristics: types: fixed pricing dynamic pricing Asset sale List Price Negotiation( bargaining) nt Fixed Costs (salaries, rents, utilities) developme Variable costs Usage fee Product feature dependent Yield Management Economies of scale Subscription Fees Customer segment dependent Real-time-Market Economies of scope Lending/Renting/Leasing Volume dependent Licensing Brokerage fees Advertising floating This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.