This document provides an overview of business model design. It discusses three key steps in business model design: visualizing the business model canvas, assessing strengths and weaknesses, and improving opportunities. The business model canvas is used to map out the key partners, activities, offers, customer relationships, customer segments, resources, channels, cost structure, and revenue streams. Business model patterns and examples like the long tail and two-sided markets are also examined. The document emphasizes adopting a design mindset to iteratively improve business models.

1. desi gning
usine ss mo dels
b
d
a course prepare
r
by a lex osterwalde
and yves pigneur

2. e -business
serv ice design
s cenario & s torytelling
t ask analysis
p rototyping
service to business
from
ueprint & v isualization
bl
service innovation
ess model innovation
busin
busin ess model
usiness mo del design
‣b

3. 3 steps of business model design
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4. business
model
ign
^
des

5. We believe that if managers adopted a design attitude, the
world of business would be different and better
[Boland & Collopy, 2004]

6. the desig ner’s
tool kit ...

8. analyze from the customer perspective
PARTNER KEY OFFER CUSTOMER CUSTOMER
NETWORK ACTIVITIES RELATIONSHIPS SEGMENTS
KEY DISTRIBUTION
RESOURCES CHANNELS
COST STRUCTURE REVENUE STREAMS

9. Jan Chipchase
(Nokia)

10. his main
weapon

12. India mobile
study

13. Rich Ling
(Telenor)

14. photo usage
study

15. do you d o if you
what
don’t h ave an
nthropo logist or
a
logist h andy ?
socio
rf.snoitartsulli

16. (customer) empathy map
what’s on his/her mind?
his/her preoccupations
his/her worries
what he/she thinks
what does he/she what does he/she
hear? see?
what his/her boss says his/her environment
what his/her friends say his/her friends
what media influences him/her what the market offers him/her
what does he/she say?
his/her attitude
how he/she appears in public
what he/she tells others
[Source: XPLANE, the visual thinking company]

19. co-designing

20. computer-aided designing

21. computer-aided designing

25. business
model
^
rns
pa tte

26. “ Pattern in architecture
is the idea of capturing
architectural design
ideas as archetypal and
reusable descriptions.
”
Christopher Alexander’s idea

27. “ long tail”
pat tern

29. it’s about selling less of
more…

30. focus on a small
number of products
sales
with large volume
number of products

31. focus on a large
number of products
sales
with low volume
number of products

33. the “traditional” record company
PARTNER KEY OFFER CUSTOMER CUSTOMER
NETWORK ACTIVITIES RELATIONSHIPS SEGMENTS
finding talent
marketing super-star mass market
artists & hits
distribution
channel KEY DISTRIBUTION
RESOURCES CHANNELS
retail outlets
protected
content
radio & TV
COST STRUCTURE REVENUE STREAMS
talent huge revenue
s
“production marketing from few ar
tists
”

34. New Ways to Discover & Popularize
Music…

36. business model
PARTNER KEY OFFER CUSTOMER CUSTOMER
NETWORK ACTIVITIES RELATIONSHIPS SEGMENTS
ies niche
platform platform for communit
segments
management musicians &
fans/buyers
content niche
producers KEY DISTRIBUTION
segments
RESOURCES CHANNELS
match-making
with taste
breadth of online niche
platform segments
COST STRUCTURE REVENUE STREAMS
small revenu music
platform es
from many subscription
maintenanc
e artists service?

37. 37

38. 38

39. “do uble si ded”
pat tern

42. ^
Two-sided business ...
according to Evans
two distinct sets of customers
who need each other
who can’t get together easily on their own
and for which a platform reduces network
effects
[Evans, 2006]

43. back t
o the
...
who
area

44. the business model canvas
KEY KEY OFFER CUSTOMER CUSTOMER
PARTNERS ACTIVITIES RELATIONSHIPS SEGMENTS
buyers
KEY DISTRIBUTION
RESOURCES CHANNELS
sellers
COST STRUCTURE REVENUE STREAMS

45. back t
o the
...
what
area

46. the business model canvas
KEY KEY OFFER CUSTOMER CUSTOMER
PARTNERS ACTIVITIES RELATIONSHIPS SEGMENTS
buyers
offer for
RESOURCES buyers
KEY DISTRIBUTION
CHANNELS
offer for sellers
sellers
COST STRUCTURE REVENUE STREAMS

47. Transaction costs
“ main economic role of multi-
Reducing transactions costs is
sided platforms
”

48. audience building

49. cost saving

50. match making
http://www.pbase.com/srijith/image/88605858

51. the business model canvas
KEY KEY OFFER CUSTOMER CUSTOMER
PARTNERS ACTIVITIES RELATIONSHIPS SEGMENTS
match buyers
KEY
making cost DISTRIBUTION
RESOURCES CHANNELS
saving
audience sellers
building
COST STRUCTURE REVENUE STREAMS

52. back t
o the
...
how much
area

53. the business model canvas
KEY KEY OFFER CUSTOMER CUSTOMER
PARTNERS ACTIVITIES RELATIONSHIPS SEGMENTS
KEY DISTRIBUTION
RESOURCES CHANNELS
COST STRUCTURE revenue from
REVENUE STREAMS
revenue from sellers
buyers

54. customers who pays?
media & television readers/viewers
adverFsers adverFsers
(mainly)
credit cards cardholders
merchants merchants
(mainly)
web aucFons buyers
sellers sellers
(mainly)
www.strategy-business.com/press/16635507/03301

55. back t
o the
...
how
area

56. “ Value networks rely on a mediating
technology to link clients who are or
wish to be interdependent [...] and
facilitate exchange
relationships among customers
The firm provides a networking service.
”
Charles Stabell et al.
Configuring value for competitive advantage

57. the business model canvas
KEY
PARTNERS
KEY
ACTIVITIES
platform RELATIONSHIPS
OFFER CUSTOMER CUSTOMER
SEGMENTS
management
platform
promotion
service
RESOURCESision
prov
KEY
ing DISTRIBUTION
CHANNELS
COST STRUCTURE REVENUE STREAMS

58. the business model canvas
KEY KEY OFFER CUSTOMER CUSTOMER
PARTNERS ACTIVITIES RELATIONSHIPS SEGMENTS
platform
platform
promotion
management
buyers
service cost
match saving
provisioning KEY DISTRIBUTION
RESOURCES
making CHANNELS
audience sellers
building
COST STRUCTURE REVENUE STREAMS
revenue from
revenue from
sellers
buyers

59. 59

61. “f ree”
pat tern

63. farm2.static.flickr.com/1177/683534694_3c70cebe3b_o_d.jpg

65. 65

66. double-sided
market
r evi ew ✓two sets of customers
✓who need each other
✓with network externalities

67. value
NETWORK PROMOTION
Nobs
Network flow
Contract musicians flow SERVICE PROVISIONING flow
flow
musicians recordings
by MJF fit NETWORK
Selling recordings INFRASTRUCTURE
Contract sponsors fit
by Montreux Sounds
network
by MJF Programming
Sponsors Concerts see focus
Ticketing flow instruments by MJF
tickets by MJF, artists fit
flow by MJF, Ticket Corner fit
Recording concerts
Food & Beverages fit
Advertising the MJF by MJF
by MJF, caterers, Heineken venues
by MFJ, sponsors, media, Production
Swiss tourism, Montreux Commerce
by MJF
by shops share
fit Manage infrastructure
Merchandising
JAZZ by MJF, Municipality
Focus: Programming decomposed into its sub-activities (forming a value shop) by MJF
flow Manage JAZZ
Problem finding
by MJF
Define concert date
and stage to be filled Problem Manage volunteers
Evaluation solving by MJF
flow
Evaluate concert Nobs & staff list music styles and
and ticket sales possible artists
Legend
Put artist in Choose artist
Execution program Choice Resource Activity By ACTOR
r evi ew ✓platform promotion
✓service provisioning
✓platform management