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Business Model Design Certainty comes from the courage to follow uncertain paths
Breaking the ICE
Iqbal Quadir Had a Dream Reference:  Business Models Beyond Profit - Social Entrepreneurship Lecture Alexander Osterwalder
Achieving the Dream Reference:  Business Models Beyond Profit - Social Entrepreneurship Lecture Alexander Osterwalder
How do you provide connectivity to villagers when they are too poor to buy a phone ? Customers management  Reference:  Business Models Beyond Profit - Social Entrepreneurship Lecture Alexander Osterwalder
By providing an intermediary a loan to buy a phone and resell call services Customers management  Reference:  Business Models Beyond Profit - Social Entrepreneurship Lecture Alexander Osterwalder
What about Network Management & Customers ? Customers management  Reference:  Business Models Beyond Profit - Social Entrepreneurship Lecture Alexander Osterwalder
Show Me the Money Customers management  Reference:  Business Models Beyond Profit - Social Entrepreneurship Lecture Alexander Osterwalder
Achieving the Dream Reference:  Business Models Beyond Profit - Social Entrepreneurship Lecture Alexander Osterwalder
Rashmi, 24 Bangladeshi village phone  lady 2-3 $ daily income ,[object Object],[object Object],[object Object],[object Object],Reference:  Business Models Beyond Profit - Social Entrepreneurship Lecture Alexander Osterwalder
Business Model Ingredients Value Proposition (VP) Change Philosophy Key Resources & Platforms Key Processes Reference:  Business Models Beyond Profit - Social Entrepreneurship Lecture Alexander Osterwalder   Return  Structure Profit Formula Human Capital Orientation –  Role of the Crowds Growth Model Financing Options
GrameenPhone Business Model For Profit Organization with core social impact ingredient  Enabling mobile connection to rural people who normally cannot afford to own a telephone, provides a good income-earning opportunity to Village Phone operators living in rural areas   Customers management  Reference:  Business Models Beyond Profit - Social Entrepreneurship Lecture Alexander Osterwalder
Change Philosophy 1
Return Structure 2 ,[object Object],[object Object],[object Object],Social and/or Environmental Return Purely philanthropic enterprises Purely commercial enterprises Economic  Return
Value Proposition (VP) ,[object Object],[object Object],[object Object],Target Customer Job to be Done Offering 3
Profit Formula ,[object Object],Revenue Model: price x volume  Cost  Structure Margin  Model 4 Quick-Wins
Human Capital Orientation – Role of the Crowds 5 Collaborative Production Fully Partially None
Key Resources & Platforms ,[object Object],[object Object],Every company also has generic resources that do not create competitive differentiation 6
Key Processes ,[object Object],7 Processes & Norms Rules &  Metrics
Financing Options 8 Equity Financing Debt Financing Angel Investment Donations & Grants 3 Fs Investment Family / Friends / Fools Self Financing
Growth Model 9 Franchise By Concept One Self Different Perspective
OK. Where do I start ? Value Proposition (VP) Change Philosophy Key Resources & Platforms Key Processes Founder’s Oriented Choices Customer’s Oriented Choices Reality Bites Entrepreneurship Mindset Design Thinking & Innovation Business  As Usual Return  Structure Profit Formula Human Capital Orientation –  Role of the Crowds Growth Model Financing Options
Going Forward…What to do ? Return  Structure Profit Formula Human Capital Orientation –  Role of the Crowds Growth Model Financing Options Value Proposition (VP) Change Philosophy Key Resources & Platforms Key Processes Less  Frequently Changing More  Frequently Changing Customers Competition Money
Constrained Innovation  !!
Case In Point : Tata Motors Nano Car ,[object Object],[object Object],[object Object],[object Object],[object Object]
Case In Point : Tata Motors Nano Car ,[object Object],[object Object],[object Object],[object Object],[object Object],However, he could still make money if he could increase sales volume dramatically, and he knew that his target base of consumers was potentially huge
Case In Point : Tata Motors Nano Car ,[object Object]
Case In Point : Tata Motors Nano Car ,[object Object],[object Object],[object Object],[object Object],[object Object],Choose to outsource a remarkable 85% of the Nano’s components and use nearly 60% fewer vendors than normal to reduce transaction costs and achieve better economies of scale Envisioned an entirely new way of assembling and distributing its cars. The ultimate plan is to ship the modular components of the vehicles to a combined network of company-owned and independent entrepreneur-owned assembly plants, which will build them to order.
FS
Other Constrained Innovations  !!!! $30 cataract surgery Aravind Eye hospital   $0.01 cell phone minute Bharti Airtel  $0.01 shampoo Hindustan Unilever   $25 micro loans KIVA Organization
Constrained Innovation  !! Value Proposition (VP) Change Philosophy Key Resources & Platforms Key Processes Values Return  Structure Profit Formula Human Capital Orientation –  Role of the Crowds Growth Model Financing Options
Putting It All Together Customers’ Base Values
Any Questions ?
Looking Forward to Seeing You There. Quick-Wins

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Business model design

  • 1. Business Model Design Certainty comes from the courage to follow uncertain paths
  • 3. Iqbal Quadir Had a Dream Reference: Business Models Beyond Profit - Social Entrepreneurship Lecture Alexander Osterwalder
  • 4. Achieving the Dream Reference: Business Models Beyond Profit - Social Entrepreneurship Lecture Alexander Osterwalder
  • 5. How do you provide connectivity to villagers when they are too poor to buy a phone ? Customers management Reference: Business Models Beyond Profit - Social Entrepreneurship Lecture Alexander Osterwalder
  • 6. By providing an intermediary a loan to buy a phone and resell call services Customers management Reference: Business Models Beyond Profit - Social Entrepreneurship Lecture Alexander Osterwalder
  • 7. What about Network Management & Customers ? Customers management Reference: Business Models Beyond Profit - Social Entrepreneurship Lecture Alexander Osterwalder
  • 8. Show Me the Money Customers management Reference: Business Models Beyond Profit - Social Entrepreneurship Lecture Alexander Osterwalder
  • 9. Achieving the Dream Reference: Business Models Beyond Profit - Social Entrepreneurship Lecture Alexander Osterwalder
  • 10.
  • 11. Business Model Ingredients Value Proposition (VP) Change Philosophy Key Resources & Platforms Key Processes Reference: Business Models Beyond Profit - Social Entrepreneurship Lecture Alexander Osterwalder Return Structure Profit Formula Human Capital Orientation – Role of the Crowds Growth Model Financing Options
  • 12. GrameenPhone Business Model For Profit Organization with core social impact ingredient Enabling mobile connection to rural people who normally cannot afford to own a telephone, provides a good income-earning opportunity to Village Phone operators living in rural areas Customers management Reference: Business Models Beyond Profit - Social Entrepreneurship Lecture Alexander Osterwalder
  • 14.
  • 15.
  • 16.
  • 17. Human Capital Orientation – Role of the Crowds 5 Collaborative Production Fully Partially None
  • 18.
  • 19.
  • 20. Financing Options 8 Equity Financing Debt Financing Angel Investment Donations & Grants 3 Fs Investment Family / Friends / Fools Self Financing
  • 21. Growth Model 9 Franchise By Concept One Self Different Perspective
  • 22. OK. Where do I start ? Value Proposition (VP) Change Philosophy Key Resources & Platforms Key Processes Founder’s Oriented Choices Customer’s Oriented Choices Reality Bites Entrepreneurship Mindset Design Thinking & Innovation Business As Usual Return Structure Profit Formula Human Capital Orientation – Role of the Crowds Growth Model Financing Options
  • 23. Going Forward…What to do ? Return Structure Profit Formula Human Capital Orientation – Role of the Crowds Growth Model Financing Options Value Proposition (VP) Change Philosophy Key Resources & Platforms Key Processes Less Frequently Changing More Frequently Changing Customers Competition Money
  • 25.
  • 26.
  • 27.
  • 28.
  • 29. FS
  • 30. Other Constrained Innovations !!!! $30 cataract surgery Aravind Eye hospital $0.01 cell phone minute Bharti Airtel $0.01 shampoo Hindustan Unilever $25 micro loans KIVA Organization
  • 31. Constrained Innovation !! Value Proposition (VP) Change Philosophy Key Resources & Platforms Key Processes Values Return Structure Profit Formula Human Capital Orientation – Role of the Crowds Growth Model Financing Options
  • 32. Putting It All Together Customers’ Base Values
  • 34. Looking Forward to Seeing You There. Quick-Wins