Presentation held at Makerversity in Amsterdam specifically for designers, makers, and startups. Please contact juan.tejeda@brainsandhearts.de if you have any questions or comments.

2. BUSINESS DESIGN
FOR DESIGNERS
AND MAKERS

3. WELCOME

4. HI, I AM
JUAN
TEJEDA
BUSINESS DESIGNER /
ENTREPRENEUR

5. I AM A BUSINESS
DESIGNER…

6. WHAT DO YOU DO?

7. WE DESIGN
BUSINESSES…

8. ENGLISH, MOTHERF***ER.
DO YOU SPEAK IT?

9. DESIGN HAS BEEN CALLED:
“THE INNOVATION DRIVER FOR
THE FUTURE OF COMPANIES”

10. “THE AGENT OF CHANGE FOR
COMPANIES TO STAY AHEAD
IN THE MARKET”

11. DESIGN = BUSINESS STRATEGY

12. MARC NEWSON
JONI IVES

13. MAURO PORCINI
IS PEPSICO’S FIRST
CHIEF DESIGN
OFFICER

14. BRIAN
CHESKY
JOE
GEBBIA
NATHAN
BLEICHARCZYK

15. CREATING A GREAT PRODUCT,
SERVICE OR EXPERIENCE IS
NOT A BUSINESS

16. THIS IS HOW DESIGNERS
SEE BUSINESS…

17. THIS IS HOW DESIGNERS
SEE BUSINESS PEOPLE…
MAMI!

18. IN CONTRAST, THIS IS HOW
BUSINESS PEOPLE SEE DESIGN…

19. HOW BUSINESS PEOPLE SEE
DESIGNERS…

20. CLASH OF
CULTURES

21. CLASH OF CULTURES:
COLLABORATION
UNCERTAINTY
EXPERIMENTATION
CALCULATED RISKS
COMPETITION
CERTAINTY
PROVEN RESULTS
MINIMAL OR NO RISK
FAIL TO LEARN NO FAILURE
SUSTAINABLE CONSUMABLE

22. LUCKILY, THIS IS CHANGING…

23. ACCORDING TO THE

24. • COMPLEX PROBLEM SOLVING
• CRITICAL THINKING
• CREATIVITY
TOP JOB SKILLS IN 2020

25. MANAGEMENT CONSULTING,
OTHER FINANCIAL AND IT
COMPANIES HAVE WOKEN UP
TO THIS FACT…
CHECK OUT THEIR LATEST ACQUISITIONS:

26. MANAGEMENT
CONSULTANCIES
FJORD
LUNAR DESIGN
AGILITI
IDEO
HEAT
UBERMIND
CYNERGY
FAHRENHEIT 212
ACCENTURE
McKINSEY
DELOITTE
KPMG
CAP GEMINI
KYU COLLECTIVE
DESIGN AGENCIES/
CONSULTANCIES

27. STAMFORD
BGT
CADIENT
SEREN
ROUNDABOUT
BERTAFORE
PWC
COGNIZANT
ERNST & YOUNG
BAIN CAPITAL
MANAGEMENT
CONSULTANCIES
DESIGN AGENCIES/
CONSULTANCIES
ADAPTIVE PATHCAPITAL ONE
SPRING STUDIOBBVA

28. ECX.IO
APERTO
RESOURCE/AMMIRATI
BRIGHTHOUSE
STRATEGIC & CREATIVE
DESIGNIT
IBM
BOSTON CONSULTING
WIPRO
DESIGN AGENCIES/
CONSULTANCIES
MANAGEMENT
CONSULTANCIES/IT/BANK

29. PROFIT…
B*TCH…

31. WE NEED A COMMON
LANGUAGE

32. DESIGNED FOR: DESIGNED BY: DATE: ITERATION:
Who are our Key Partners?
Who are our key suppliers?
Which Key Resources are we acquairing from partners?
Which Key Activities do partners perform?
MOTIVATIONS FOR PARTNERSHIPS
Optimization and economy
Reduction of risk and uncertainty
Acquisition of particular resources and activities
What Key Activities do our Value Propositions require?
Our Distribution Channels?
Customer Relationships?
Revenue streams?
CATEGORIES
Production
Problem Solving
Platform/Network
For 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
Asset sale
Usage fee
Subscription Fees
Lending/Renting/Leasing
Licensing
Brokerage fees
Advertising
FIXED PRICING
List Price
Product feature dependent
Customer segment
dependent
Volume dependent
DYNAMIC PRICING
Negotiation (bargaining)
Yield Management
Real-time-Market
What 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
Economies of scale
Economies of scope
What Key Resources do our Value Propositions require?
Our Distribution Channels? Customer Relationships?
Revenue Streams?
TYPES OF RESOURCES
Physical
Intellectual (brand patents, copyrights, data)
Human
Financial
Through 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
Awareness
How do we raise awareness about our company’s products and services?
Evaluation
How do we help customers evaluate our organization’s Value Proposition?
Purchase
How do we allow customers to purchase specific products and services?
Delivery
How do we deliver a Value Proposition to customers?
After sales
How do we provide post-purchase customer support?
For whom are we creating value?
Who are our most important customers?
Mass Market
Niche Market
Segmented
Diversified
Multi-sided Platform
What 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 each Customer Segment?
Which customer needs are we satisfying?
CHARACTERISTICS
Newness
Performance
Customization
“Getting the Job Done”
Design
Brand/Status
Price
Cost Reduction
Risk Reduction
Accessibility
Convenience/Usability
What type of relationship does each of our
Customer Segments expect us 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 assistance
Dedicated Personal Assistance
Self-Service
Automated Services
Communities
Co-creation
BUSINESS PLAN
EXECUTIVE SUMMARY
THE TEAM
• Management Profile
• Why are we a winning team
THE BUSINESS MODEL
• Vision
• Mission / Values
• How our Business Model works
• Value Proposition
• Target Markets
• Marketing Plan
• Key Resources and Activities
FINANCIAL ANALYSIS
• CVP Analysis / BEP Analysis
• Sale Scenarios and Projections
• Capital Spending
• Operating Costs
• Funding Requirements
EXTERNAL ENVIRONMENT
• The Economy
• Market Analysis / Key Trends
• Competitor Analysis
• Competitive Advantage
IMPLEMENTATION ROADMAP
• Projects
• Milestones
• Roadmap
RISK ANALYSIS
• Limiting Factors and Obstacles
• Critical Success Factors
• Specific Risks and Countermeasures
CONCLUSION
ANNEXES
ALEX OSTERWALDER
ST.GALLEN

33. MORE VISUAL

34. MORE INCLUSIVE

35. MORE FLEXIBLE AND INTUITIVE

36. “Oh, I am going to start (this or
that) business and it will be
awesome. It will be great…”
SOUNDS FAMILIAR?

37. AFTER THE LAUNCH…
“NO BUSINESS PLAN
SURVIVES FIRST CONTACT
WITH A CUSTOMER”
– STEPHEN BLANK

38. MOST BUSINESSES (STARTED BY
ANYBODY, DESIGNER OR NOT)
HAVE A 96% CHANCE TO FAIL
WITHIN THE FIRST FIVE YEARS.
REALITY CHECK:
We only hear the stories about those who
made it and not the majority that failed.

39. DON’T RELY IN FAITH
MAMI!

40. WANTREPRENEURS…

41. JUMP WITH CONFIDENCE

42. WHAT ABOUT ME? WHAT DO I
NEED TO DO/LEARN?…

43. 1. LEARN ABOUT BUSINESS
At least the basics…

44. GO BACK TO SCHOOL AND GET A DEGREE
LYNDA.COM / COURSERA / UDACITY
MAKE AN ONLINE COURSE ABOUT BUSINESS BASICS
DO SOME READING
MASTER IN BUSINESS ADMINISTRATION
MASTER IN BUSINESS DESIGN
MASTER OF BUSINESS & DESIGN

45. 2. TEAM UP!
You will not a “the business guy” from one
day to the next. Find people to work with you.

46. Find people with a
different skill set than
yours. Start understanding
and sharing different
points of view.

47. 3. PLAN YOUR BUSINESS,
INSTEAD OF A BUSINESS PLAN
Start believing in validated
data and not gut feelings.

48. DESIGNED FOR: DESIGNED BY: DATE: ITERATION:
Who are our Key Partners?
Who are our key suppliers?
Which Key Resources are we acquairing from partners?
Which Key Activities do partners perform?
MOTIVATIONS FOR PARTNERSHIPS
Optimization and economy
Reduction of risk and uncertainty
Acquisition of particular resources and activities
What Key Activities do our Value Propositions require?
Our Distribution Channels?
Customer Relationships?
Revenue streams?
CATEGORIES
Production
Problem Solving
Platform/Network
For 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
Asset sale
Usage fee
Subscription Fees
Lending/Renting/Leasing
Licensing
Brokerage fees
Advertising
FIXED PRICING
List Price
Product feature dependent
Customer segment
dependent
Volume dependent
DYNAMIC PRICING
Negotiation (bargaining)
Yield Management
Real-time-Market
What 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
Economies of scale
Economies of scope
What Key Resources do our Value Propositions require?
Our Distribution Channels? Customer Relationships?
Revenue Streams?
TYPES OF RESOURCES
Physical
Intellectual (brand patents, copyrights, data)
Human
Financial
Through 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
Awareness
How do we raise awareness about our company’s products and services?
Evaluation
How do we help customers evaluate our organization’s Value Proposition?
Purchase
How do we allow customers to purchase specific products and services?
Delivery
How do we deliver a Value Proposition to customers?
After sales
How do we provide post-purchase customer support?
For whom are we creating value?
Who are our most important customers?
Mass Market
Niche Market
Segmented
Diversified
Multi-sided Platform
What 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 each Customer Segment?
Which customer needs are we satisfying?
CHARACTERISTICS
Newness
Performance
Customization
“Getting the Job Done”
Design
Brand/Status
Price
Cost Reduction
Risk Reduction
Accessibility
Convenience/Usability
What type of relationship does each of our
Customer Segments expect us 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 assistance
Dedicated Personal Assistance
Self-Service
Automated Services
Communities
Co-creation
BUSINESS PLAN
EXECUTIVE SUMMARY
THE TEAM
• Management Profile
• Why are we a winning team
THE BUSINESS MODEL
• Vision
• Mission / Values
• How our Business Model works
• Value Proposition
• Target Markets
• Marketing Plan
• Key Resources and Activities
FINANCIAL ANALYSIS
• CVP Analysis / BEP Analysis
• Sale Scenarios and Projections
• Capital Spending
• Operating Costs
• Funding Requirements
EXTERNAL ENVIRONMENT
• The Economy
• Market Analysis / Key Trends
• Competitor Analysis
• Competitive Advantage
IMPLEMENTATION ROADMAP
• Projects
• Milestones
• Roadmap
RISK ANALYSIS
• Limiting Factors and Obstacles
• Critical Success Factors
• Specific Risks and Countermeasures
CONCLUSION
ANNEXES
Make this an iterative
process until it works…

49. PRODUCT
DATA
IDEAS
Keep doing Lean…

50. YOUR STARTUP IS NOT A
SMALLER VERSION OF A
BIGGER COMPANY.
REMEMBER:

51. MOST DESIGNERS FAIL TO UNDERSTAND THAT
THE PURPOSE OF BUSINESS IS TO MAKE A:
PROFIT

54. “Greed is good”
– Gordon Gekko, 1987
ASSOCIATED STIGMA:

55. ASSOCIATED STIGMA:
MODERN SLAVERY
THWARTING OF PUBLIC POLICY
CHILD LABOR
HUMAN EXPLOITATION
DESTRUCTION OF THE ENVIRONMENT
SCAMS AND THEFT
GAMBLING WITH OTHER PEOPLE’S MONEY
LOBBYING POLITICIANS
DESTROYING COMMUNITIES…

56. …AND AGAIN IN THE
2008 WORLD
FINANCIAL CRISIS

57. …AND AGAIN IN THE
WELLS FARGO
SCAM IN 2015…

58. “IF CORPORATIONS WERE TO BE
CONSIDERED PEOPLE, MOST OF THEM
WOULD HAVE THE PERSONALITY
TRAITS OF A PSYCHOPATH”
– Documentary “The Corporation” (2003)

59. REALITY CHECK:
Business itself is not to be blamed for it.
ULTIMATELY, THESE ARE
ATROCITIES CAUSED BY THE
GREED OF THE PEOPLE
RUNNING THE BUSINESS.

60. CONSIDER THESE COMPANIES…

61. BUY THEIR PRODUCTS ONLY
IF YOU REALLY NEED THEM

62. MADE OUT OF RECYCLED
PLASTIC FROM THE OCEAN

63. RECYCLED PAPER PRODUCTS
SHADE-GROWN COFFEE
GREEN BUILDING STANDARDS
FAIR TRADE COFEE

64. GOOGLE ECOSYSTEM AND THEIR
INITIATIVES AROUND THE WORLD,
INCLUDING FREE INTERNET FOR
3RD WORLD COUNTRIES.

65. i

67. FIGHTING THE CHOCOLATE
INDUSTRY ONE BAR AT A TIME
TO RID IT OF MODERN SLAVERY

68. BUSINESS IS GOOD, IF IT CREATES
VALUE FOR BOTH COMPANIES
AND PEOPLE IN A RESPONSIBLE
AND SUSTAINABLE WAY.

69. WIN-WIN

70. BUSINESS IN PURSUIT OF PROFIT
STILL OFFERS THE BEST HOPE OF
ADDRESSING MANY OF MANKIND’S
MOST DEEPLY ROOTED PROBLEMS.
(Conscious Capitalism)

71. IT IS OUR RESPONSIBILITY TO
CREATE BETTER BUSINESSES,
THAT ARE SUSTAINABLE AND
FAIR FOR EVERYONE.
DESIGN IS INFLUENCING THE BUSINESS
LANDSCAPE LIKE NEVER BEFORE…

72. OK MOTHERF***ER,
TELL ME… WHAT
BUSINESS DESIGN IS…

73. WE DESIGN NOT ONLY THE PRODUCTS,
SERVICES AND EXPERIENCES, BUT ALSO THE
BUSINESS ITSELF, COMBINING: DESIGN
THINKING + BUSINESS CONSULTING +
LEAN STARTUP METHODOLOGIES

74. HUMAN-CENTRED APPROACH

75. USE OF VISUAL THINKING
AND STORYTELLING

76. WORK AND CO-CREATE
COLLABORATIVELY

77. REFINE THROUGH ITERATIONS
AND VALIDATED DATA

78. KEEP A HOLISTIC PERSPECTIVE

82. WE WANT TO CREATE BUSINESS
VALUE FOR COMPANIES AND FOR
PEOPLE, BY CHANGING BUSINESS
FROM THE INSIDE OUT.

83. LIKE NEVER BEFORE IN HISTORY,
YOU HAVE THE CHANCE
TO CHANGE BUSINESS FOR
THE BETTER.

84. TAKE IT.

85. THANK YOU.

86. Ahhh… Just one
more thing…

87. BUSINESS
DESIGN
JAM
www.businessdesignjam.org

90. THANK YOU!

91. www.brainsandhearts.de