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Business Modeling for Entrepreneurs and Startup Founders
Business Model Canvas and Business Model Patterns
By: Jean-Luc Scherer, Founder Innoopolis
WHY STARTUPS SUCCEED?
1. Timing (42%)
2. Team/Execution (32%)
3. Idea “Truth” Outlier (28%)
4. Business Model (24%)
5. Funding (14%)
BABY MOP
1 2 3
STEP 1 – PROBLEM SOLUTION FIT
YOUR JOB IS NOT TO VALIDATE
YOUR PRODUCT…
It’s to validate the problem, who
has it and then how best to solve it?
STEP 2 – SOLUTION MARKET FIT
“Can you build and deliver a product that
satisfies the customer problem or need?”
“Does the product deliver value?
Does the product alleviate pain, create
gains to the customer?”
STEP 3 – BUSINESS MODEL FIT
“Can you build and validate a repeatable
and scalable business model?”
VALUE PROPOSITION CANVAS
WHAT IS A BUSINESS MODEL?
Which customers and users are you serving?
Which jobs do they really want to get done?
What are you offering them?
Which one of our customer's problems are we helping to solve?
How does each customer segment want to be reached?
How are we reaching them now?
What relationships are you establishing with each segment?
Personal? Automated? Self-Service? Communities?
What are customers really willing to pay for? How?
Are you generating transactional or recurring revenues?
Which resources underpin your business model?
Which assets are essential?
Which activities do you need to perform well in your business model?
What is crucial?
Which partners and suppliers leverage your model?
Who do you need to rely on?
What is the resulting cost structure?
Which key elements drive your costs?
FACEBooK
THE SOCIAL NETWORK
Reach, Relevance,
Social Context,
Engagement
Connect with your
friend. Discover and
learn. Express
yourself
Content Partners (TV
Shows, Movies,
Music, News Articles)
FreeMarketing & SalesData Center Costs
General &
Administrative
Research &
Development
Same-side Network
Effects
Cross-side Network
Effects
Website, Mobile Apps
Facebook ads,
Facebook Pages
Developer Tools APIs
Personalized and
social experiences.
Social distribution
payments
Adverstiers and
Marketers
Developers
Internet Users
Platform Development
Data Center
Operations
Management
Facebook Platform
Technology
Infrastructure
Ad Revenues
Payment Revenues
NESPRESSO
crowdsourcing traffic data
Perfect coffee is not just an
indulgence, it is a lifestyle.
Nespresso is committed to offering the Ultimate
Coffee Experience. Their devotion to excellence in
everything they do has established them as the
worldwide pioneer and leader in portioned premium
coffee.
Make coffee
drinking a unique
experience
Most revenues
from the capsule
Hook & Bait
business model
Loyalty cardPatents
AIRBNB
crowdsourcing RENTAL SPACE
• Multi-sided
• Freemium
• Advertising
• Long-tail
BUSINESS MODEL PATTERNS
› Unbundled
› Hook & Bait
› Subscription
› Rev. Share
Business Canvas Variation
Lean Canvas
30
Questions?

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Business Model Canvas and Patterns for Startups

  • 1. Business Modeling for Entrepreneurs and Startup Founders Business Model Canvas and Business Model Patterns By: Jean-Luc Scherer, Founder Innoopolis
  • 2. WHY STARTUPS SUCCEED? 1. Timing (42%) 2. Team/Execution (32%) 3. Idea “Truth” Outlier (28%) 4. Business Model (24%) 5. Funding (14%)
  • 4.
  • 5.
  • 7. STEP 1 – PROBLEM SOLUTION FIT YOUR JOB IS NOT TO VALIDATE YOUR PRODUCT… It’s to validate the problem, who has it and then how best to solve it?
  • 8. STEP 2 – SOLUTION MARKET FIT “Can you build and deliver a product that satisfies the customer problem or need?” “Does the product deliver value? Does the product alleviate pain, create gains to the customer?”
  • 9. STEP 3 – BUSINESS MODEL FIT “Can you build and validate a repeatable and scalable business model?”
  • 11. WHAT IS A BUSINESS MODEL?
  • 12. Which customers and users are you serving? Which jobs do they really want to get done?
  • 13. What are you offering them? Which one of our customer's problems are we helping to solve?
  • 14. How does each customer segment want to be reached? How are we reaching them now?
  • 15. What relationships are you establishing with each segment? Personal? Automated? Self-Service? Communities?
  • 16. What are customers really willing to pay for? How? Are you generating transactional or recurring revenues?
  • 17. Which resources underpin your business model? Which assets are essential?
  • 18. Which activities do you need to perform well in your business model? What is crucial?
  • 19. Which partners and suppliers leverage your model? Who do you need to rely on?
  • 20. What is the resulting cost structure? Which key elements drive your costs?
  • 21.
  • 23. Reach, Relevance, Social Context, Engagement Connect with your friend. Discover and learn. Express yourself Content Partners (TV Shows, Movies, Music, News Articles) FreeMarketing & SalesData Center Costs General & Administrative Research & Development Same-side Network Effects Cross-side Network Effects Website, Mobile Apps Facebook ads, Facebook Pages Developer Tools APIs Personalized and social experiences. Social distribution payments Adverstiers and Marketers Developers Internet Users Platform Development Data Center Operations Management Facebook Platform Technology Infrastructure Ad Revenues Payment Revenues
  • 24. NESPRESSO crowdsourcing traffic data Perfect coffee is not just an indulgence, it is a lifestyle. Nespresso is committed to offering the Ultimate Coffee Experience. Their devotion to excellence in everything they do has established them as the worldwide pioneer and leader in portioned premium coffee.
  • 25. Make coffee drinking a unique experience Most revenues from the capsule Hook & Bait business model Loyalty cardPatents
  • 27.
  • 28. • Multi-sided • Freemium • Advertising • Long-tail BUSINESS MODEL PATTERNS › Unbundled › Hook & Bait › Subscription › Rev. Share

Editor's Notes

  1. The History of Nespresso The beginnings… It all began 23 years ago with a simple but revolutionary idea—to create the perfect cup of Espresso coffee with exquisite crema, tantalising aroma and full-bodied taste—just like skilled baristas. During the 1970’s, Nestlé anticipated the demand for gourmet specialty coffee. After many years of research and development, including many patents, the preparation of perfect espresso was mastered in 1986 with the Nespresso System. As the worldwide pioneer, Nespresso redefined the way coffee lovers around the world enjoy their Espresso coffee through a unique combination of premium quality Grand Cru coffees, smart coffee machines and exceptional customer services. Nespresso grew to embody a unique coffee concept designed to produce perfect coffee, time after time, cup after cup. The unrivalled Nespresso “trilogy” united the world’s highest quality Grand Cru coffees with smart and stylish, award winning coffee machines and exclusive, personalized services to deliver moments of genuine coffee pleasure and indulgence. Key Milestones 1986 Nestlé Nespresso SA is founded by the Nestlé Group as a strategic business unit responsible for its own research and development, raw materials sourcing, production and marketing. 2001 Nespresso revolutionises the espresso market once again by launching its new Concept machine in Europe. The machine's striking ergonomic design and ease-of use lead to record sales of Nespresso machines. 2004 The year of the Nespresso Essenza machine, a combination of revolutionary technology and ultra-modern design, that enjoys phenomenal success with more than 200,000 machines sold in 12 countries in just three months. Today Partnerships with leading coffee machine manufacturers provide a range of 32 different coffee machine models, all featuring a combination of innovative technology, highest functionality and avant-garde design. Le Cube has become one of the best-selling Nespresso machines. A must for design aficionados, Le Cube has set new standards for machine innovation with its pure, minimalist “cubed” design combined with advanced functionality. Lattissima, is making its debut. A machine with a new twist, Lattissima’s one-touch fresh milk function enables coffee connoisseurs to prepare cappuccino, latte, macchiato and other espresso-based milk recipes with perfect consistency. Nearly 90 Nespresso Boutiques worldwide. The Philosphy For true coffee lovers and connoisseurs, perfect coffee is not just an indulgence, it is a lifestyle. Nespresso is committed to offering the Ultimate Coffee Experience. Their devotion to excellence in everything they do has established them as the worldwide pioneer and leader in portioned premium coffee. The non-stop quest for perfection begins with the transformation of the finest green coffees into exquisite Nespresso Grands Crus offering full-bodied taste, exceptional aromas, and perfect crema. Moreover, Nespresso ensure that coffee farmers and their communities benefit from a shared dedication to highest quality coffee through the Nespresso EcolabarationTM program. These exclusive Grand Cru coffees, combined with stylish, east-to-use espresso machines and personalised services are all designed to guarantee you moments of genuine coffee pleasure wherever, whenever and however you wish. The quintessential Nespresso system: the perfect trilogy of capsule, machine and Club Nespresso is in a league of it’s own in the world of coffee. It genuinely combines perfection and enjoyment, simplicity and aesthetics. The Nespresso system is a complete system, featuring individual capsules filled with the finest of coffees and innovative machines equipped with advanced coffee-extraction technology specifically developed for Nespresso. It also includes a Club offering a comprehensive range of exclusive, personalised services. The Coffee Capsule At the heart of this innovative system are the unique capsules, containing the right portion of perfectly roasted and ground premium coffee to guarantee a perfect espresso every time. Hermetically-sealed, they preserve the freshness of each Premium Blend and its 900 or so aromas and flavours from the harmful effects of air, light and humidity. The technologically advanced machine The advanced functionality built into every Nespresso machine begins with a ptented extraction and brewing system, guaranteeing superior high pressure extraction to reveal all of the delicate flavours and aromas of each Grand Cru and to enhance them with a topping of thick, smooth crema. The Nespresso Club Anyone who purchases a Nespresso machines is welcomed by the Nespresso Club. It offers personalised information, advise and specialised services based around the coffees, the machines and the Nespresso lifestyle—all part of the Ultimate Coffee Experience. Current Value Proposition - Making the best coffee is now a straight forward operation, kept “simple” The coffee machines are affordable, clever in size and the perfect balance between technology and design You can make the best coffee, to your guests preference, perfect “art” every time. Finding and buying the coffee, machines and accessories is easy and “exclusive”. A great tasting coffee made by oneself which “consistently” meets individual consumer preferences. Consumers “feel good” making the coffee – and it is actually fun. This brand is accessible for most people and although the target market would be broad, the marketing cleverly appeals to “individual” consumer desires. “Fair trade” and has a simple “recycling solution” Accessible and “immediate assistance” should consumers need it for whatever reason.