This document provides an overview of business models and how to explore them. It begins with a hands-on activity to demonstrate business model thinking. Key points covered include defining business models as how value is created, delivered, and captured. The document discusses why business models are important given past overfocus on products and marketing. A business model canvas tool is introduced and examples like direct sales, subscriptions, marketplaces are analyzed. The document concludes with an activity for participants to visualize their own business models and get feedback.

1. How to explore business
models
Tsuyoshi Amano
Central Saint Martins
03/11/2016

2. Contents
1. Hands-on session: Marshmallow Challenge
2. What are business models?
3. Why business models?
4. Why not business plans?
5. A business model tool: Business model canvas
6. Examples of business model archetypes
7. Hands-on session: Visualise your business with business model canvas
8. Quick recap

3. Hands-on session:
The marshmallow challenge

4. The instruction of the marshmallow
challenge
Qhttp://www.tomwujec.com/design-projects/marshmallow-
challenge/

5. What are business models?

6. What is business models?
Value
CREATE
DELIVERCAPTURE
A business model shows:
• How to create the value?
• How to deliver the value?
• How to capture the value?

7. But, why business models
now?

8. But, why business models now?
Value
CREATE
DELIVERCAPTURE
Too much focus on creating
values (Product innovations)

10. But, why business models now?
Value
CREATE
DELIVERCAPTURE
Too much focus on
delivering values (Marketing
innovations)

11. But, why business models now?
Value
CREATE
DELIVERCAPTURE
Just ripping off?

12. But, why business models now?
Value
CREATE
DELIVERCAPTURE
The value of using the
business model approach is
the holistic perspective

13. Why not business plan?

14. Why not business plan?
QIt takes too much time to write
QPeople don’t look back the
business plan once it’s
accepted
QIt doesn’t work after the first
contact with real customers

15. Why not business plan?
Value
CREATE
DELIVERCAPTURE
Also, business plan based
approaches are most likely
to focus on capturing
values.

16. Why not business plan?
Business plans are good to scale a business but not find new
opportunities.

17. A business model tool:
Business Model Canvas

19. A framework of business models
Value
CREATE
DELIVERCAPTURE

20. CREATE DELIVER
CAPTURE
VALUE

22. A case of Japanese
manufacturers

23. Hi-quality
traditional
Japanese crafts Hi-end
retailers
Distributors /
Sales agents
Product sales
Craftsmen skills
Distributors
Production Dedicated
customer service
Production cost
Export fee
Sales agent fee

24. Hi-quality
traditional
Japanese crafts Hi-end
retailers
Distributors /
Sales agents
Product sales
Craftsmen skills
Distributors
Production Dedicated
customer service
Distribution model
Production cost
Export fee
Sales agent fee

25. Applying business model
archetypes

26. Examples of business model archetypes
Q Direct sales
Q Subscription (Leasing)
Q Marketplace
Q Crowdsourcing
Q Blade and razor (printer and ink)
For more examples of business model archetypes, see:
Q Board of Innovation (2010) Business & Revenue Model Examples [Internet]. Available from:
<http://www.boardofinnovation.com/business-revenue-model-examples/> [Accessed 3 November
2016].
Q Johnson, M.W. (2010) Seizing the white space. Boston, Mass., Harvard Business Press.
Q Gassmann, O., Frankenberger, K. & Csik, M. (2014) The Business Model Navigator: 55 Models That
Will Revolutionise Your Business. 01 edition. Harlow, England ; New York, FT Publishing
International.

27. Direct sales
Direct Sales

28. Hi-quality
traditional
Japanese crafts Hi-end
consumers
Direct sales
online
Product sales
Production cost
Export fee
Craftsmen skills
Warehouse
providers
Production
Online ads
PR companies
Warehouse cost
PR cost
Online
support
Online
marketing

29. Subscription (Leasing)
Subscription fee

30. Rental service
of hi-quality
traditional
Japanese crafts
Japanese
restaurant
owners
Distributors /
Sales agents
Subscription /
Monthly leasing
fee
Craftsmen skills
Distributors
Production Dedicated
customer service
Production cost
Export fee
Sales agent fee
Insurance
companies
Insurance
fee

31. Marketplace
BuyersSellers Marketplace

32. A market place
specialised for
Japanese crafts Hi-end
retailers
Online platform
Commission
Sellers
(Other
Japanese
craftsmen)
Online customer
service
Online operation
cost
The community
of Japanese
craftsmen
Platform
management
Community
management

33. Crowdsourcing
Community
Community
members

34. Hi-quality
traditional
Japanese crafts Hi-end
retailers
Distributors /
Sales agents
Product sales
Craftsmen skills
Distributors
Production Dedicated
customer service
Production cost
Export fee
Sales agent fee
Crowdsourced
designers
The community
of designers

35. Blade and razor (printer and ink)
Profit from supplies

36. Japanese
lifestyle
experience Hi-end
retailers
Distributors /
Sales agents
Product sales
with low profit
Craftsmen skills
Distributors
Production
Dedicated
customer service
Production cost
Export fee
Sales agent fee
Sales of
Japanese Tea
Hi-end
consumers
Direct sales
online
Online ads
PR companies
PR cost
Online
support

37. Key points of using business model
canvas
QAvoid exactly visualising a “right” business model (Simplicity
and nimbleness is important)
QExplore possible business models on paper without risks

38. Hands-on session:
Visualise your business model

40. Activity (20 mins)
QFill in the nine building blocks to visualise your business model
QPut a name of the model
QModify your business model to explore by using the examples
(if you come up with a new model other than the examples, try
to visualise it instead!)
QShow your business model to other people and get feedback

41. Now, you’ve got your business models
It’s time to get out of building to see if your business model(s)
actually works.

42. Also, thank you for Julia @juliagogacooke
Please keep in touch via:
E-mail: syntropylab@gmail.com
Twitter: @yo5h_a
The bullet points by Tony Thomas
http://medialoot.com/item/listicons-arrows-bullets-webfont/
Thank you very much to join!