USEEDS° :: Busines Model Design for Designers, Jim Kalbach


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USEEDS° :: Busines Model Design for Designers, Jim Kalbach

  1. 1. Business Model Design for Designers
  2. 2. JIM KALBACHPrincipal UX Strategist, USEEDS°Rutgers University, USADesigning Web 2
  3. 3. What is a business model?
  4. 4. Definitions The Business Model: Theoretical Roots, Recent Developments, and Future Research, C. Zott, R. Amit, & L.Massa., WP-862, IESE, June, 2010 - revised September 2010 http://www.iese.e du/research/pdfs/ DI-0862-E.pdf 4
  5. 5. Definition A business model describes the rationale of how an organization creates, delivers, and captures value Alexander OsterwalderUSEEDS° user centred thinking 5
  6. 6. VisualizingBusiness Models„A business model, from ourpoint of view, consists of fourinterlocking elements that,taken together, create anddeliver value.“ Mark W. Johnson et al., “Reimagine Your Business Model,” HBR (Dec 2008) 6
  7. 7. Enter:The Business Model Canvas
  8. 8. 1. Customer SegmentsThe groups of people or organizations an enterprise aims to reach and serve 8
  9. 9. 2. Value PropositionThe bundle of products and services that create value for a specific Segment. 9
  10. 10. 3. ChannelsHow a company communicates with and reachesits Customer Segments to deliver a Value Proposition 10
  11. 11. 4. Customer RelationshipsThe types of relationships a companyestablishes with specific Customer Segments 11
  12. 12. 5. Revenue StreamsThe cash a company generates from each CustomerSegment (costs must be subtracted from revenues tocreate earnings ;) 12
  13. 13. 6. Key RessourcesThe most important assets requiredto make a business model work 13
  14. 14. 7. Key ActivitiesThe most important things a company must doto make its business model work 14
  15. 15. 8. Key PartnersThe network of suppliers and partners that makethe business model work 15
  16. 16. 9. Cost StructureAll costs incurred to operate a business model 16
  17. 17. The Business Model CanvasThe nine business model Building Blocks formthe basis for a handy tool, called Business Model Canvas. 17
  18. 18. The Business Model Canvas 18
  19. 19. logic and emotion in the Business Model Canvas: Left brain: Right brain: BACK Logic  efficiency FRONT Emotion  value STAGE STAGE 19
  20. 20. BFD,Kalbach
  21. 21. Business Model Innovation “ While CEOs still believe that product, service and operational innovations are important, they feel that innovation must also be applied to a company’s very core — to the way it does business and drives revenue. CEOs deemed these business model innovations vital to creating new and differentiating value for their companies.”IBM Global Service, “Business Model Innovation,” Sept 2006 21
  22. 22. Creativity & Business“CEOs identified creativity as thenumber-one leadership competency ofthe future…[But creativity] isn‘t something theylearn within their company, and itcertainly isn‘t something they aretaught in business school. Businessschools teach people how to bedeliverers, not discoverers.“ Jeff Dyer and Hal Gregersen, The Innovator‘s DNA, Harvard Business Press, 2011 22
  23. 23. Prototype Business Models 23
  24. 24. Business Model Prototyping 24
  25. 25. BMC Addresses Problems Of Business ModelsDifferent definitions and understandingsSiloed organizational decision makingThe logic is “invisible“Hard to challenge and change in established orgsOften not creatively designed 25
  26. 26. It Doesn‘t Work*(*for you, most of the time)
  27. 27. Uses of the Business Model Canvas for Designers 1. Understanding business modelsUSEEDS° user centred thinking 27
  28. 28. “Never forget the business.Amazon’s business model isdeliberately designed, and thesite is designed to fit thebusiness.You have to start with a greatbusiness model to produce agreat experience.“JARED SPOOL, “Revealing Design Treasures From The Amazon Site“ 28
  29. 29. Uses of the Business Model Canvas for Designers 1. Understanding business models 2. Showing stakeholders why UX is importantUSEEDS° user centred thinking 29
  30. 30. The Business Model Canvas 30
  31. 31. Uses of the Business Model Canvas for Designers 1. Understand business models 2. Show stakeholders why UX is important 3. Use canvases to show “invisible“ logicUSEEDS° user centred thinking 31
  32. 32. Lean Canvas USEEDS° user centred thinking 32
  33. 33. Project CanvasUSEEDS° user centred thinking 33
  34. 34. Project CanvasUSEEDS° user centred thinking 34
  35. 35. Project CanvasProject M otivation PROJECT CANVAS° Participants Goals Users Activities Deliverables All project team members, stakeholders and third The primary objectives and intent of the project, Users of the product or service, listed as target The concrete tasks and actions the team will take to The outcomes and documents that will be shown to parties who play a role on the project. Also use this including success metrics groups or segments reach the project goals stakeholders or to customers box to show dependencies, if needed. User Benefits The overall value and concrete benefits users will after the project is sucessfully completed Risks Milestones Constraints Scope Possible future events that have a potentially negative impact on the The key dates and events that frame the overall timeline of the Limits and conditional requirements that directly affect the The breadth of the product or service to be included for consider ation for project project. deliverables, activities or project as a whole this project, including what is out of scopeCreated by USEEDS° GmbH, Beta Version Project End This work is licensed under a Creative Commons Attribution-ShareAlike 3.0 Unported License. USEEDS° user centred thinking 35
  36. 36. Download the Project Canvas° project-canvas-defining-your-project-visually/ USEEDS° Blog: We„re hiring!USEEDS° user centred thinking 36
  37. 37. Danke schön © USEEDS° GmbH | Chausseestr. 123 | 10115 Berlin Tel.: +49 (0)30 340 6005-0 | Fax: +49 (0)30 340 6005-49 l www.useeds.deWir schicken Ihnen gerne ergänzendes Informationsmaterial, Projektbeispiele oder unseren Schulungskatalog zu! 37