1. Business Model Design for Designers

2. JIM KALBACH
Principal UX Strategist, USEEDS°
Rutgers University, USA
Designing Web Navigation
www.xing.com/profile/James_Kalbach
@jameskalbach
www.ExperiencingInformation.com
www.UxToGo.com
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3. What is a business model?

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
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5. Definition
A business model describes
the rationale of how an
organization creates, delivers,
and captures value
Alexander Osterwalder
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6. Visualizing
Business Models
„A business model, from our
point of view, consists of four
interlocking elements that,
taken together, create and
deliver value.“
Mark W. Johnson et al.,
“Reimagine Your Business Model,”
HBR (Dec 2008)
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7. Enter:
The Business Model Canvas

8. 1. Customer Segments
The groups of people or organizations an enterprise aims to reach and serve
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9. 2. Value Proposition
The bundle of products and services that create value for a specific Segment.
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10. 3. Channels
How a company communicates with and reaches
its Customer Segments to deliver a Value Proposition
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11. 4. Customer Relationships
The types of relationships a company
establishes with specific Customer Segments
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12. 5. Revenue Streams
The cash a company generates from each Customer
Segment (costs must be subtracted from revenues to
create earnings ;)
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13. 6. Key Ressources
The most important assets required
to make a business model work
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14. 7. Key Activities
The most important things a company must do
to make its business model work
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15. 8. Key Partners
The network of suppliers and partners that make
the business model work
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16. 9. Cost Structure
All costs incurred to operate a business model
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17. The Business Model Canvas
The nine business model Building Blocks form
the basis for a handy tool, called Business Model Canvas.
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18. The Business Model Canvas
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19. logic and emotion in the Business Model Canvas:
Left brain: Right brain:
BACK Logic
 efficiency FRONT Emotion
 value
STAGE STAGE
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20. BFD,
Kalbach

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
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22. Creativity & Business
“CEOs identified creativity as the
number-one leadership competency of
the future…
[But creativity] isn‘t something they
learn within their company, and it
certainly isn‘t something they are
taught in business school. Business
schools teach people how to be
deliverers, not discoverers.“
Jeff Dyer and Hal Gregersen, The Innovator‘s DNA, Harvard Business Press, 2011 22

23. Prototype Business Models
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24. Business Model Prototyping
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25. BMC Addresses Problems Of Business Models
Different definitions and understandings
Siloed organizational decision making
The logic is “invisible“
Hard to challenge and change in established orgs
Often not creatively designed
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26. It
Doesn‘t
Work*
(*for you, most of the time)

27. Uses of the Business Model Canvas for Designers
1. Understanding business models
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28. “Never forget the business.
Amazon’s business model is
deliberately designed, and the
site is designed to fit the
business.
You have to start with a great
business model to produce a
great experience.“
JARED SPOOL, “Revealing Design Treasures From The Amazon Site“
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29. Uses of the Business Model Canvas for Designers
1. Understanding business models
2. Showing stakeholders why UX is important
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30. The Business Model Canvas
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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“ logic
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32. Lean Canvas
http://succinctstories.wordpress.com/2011/02/28/running-lean-%E2%80%93-business-canvas-variant/
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33. Project Canvas
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34. Project Canvas
USEEDS° user centred thinking http://teensplusdesign.wordpress.com/2011/03/22/tisdt-customer-journey-canvas/ 34

35. Project Canvas
Project 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 scope
Created by USEEDS° GmbH, Beta Version Project End
This work is licensed under a Creative Commons Attribution-ShareAlike 3.0 Unported License.
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36. Download the Project Canvas°
http://uxtogo.wordpress.com/2012/05/25/the-
project-canvas-defining-your-project-visually/
USEEDS° Blog: www.uxtogo.com
We„re hiring!
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37. Danke schön
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