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![[Joe Fox] The whole purpose of places like
Starbucks is for people with no decision-making
ability whatsoever to make six decisions just to
buy one cup of coffee. Short, tall, light, dark,
caf, decaf, low-fat, non-fat, etc. So people who
don't know what the hell they're doing or who on
earth they are, can, for only $2.95, get not just
a cup of coffee but an absolutely defining sense
of self: Tall! Decaf! Cappuccino!
Customer Segment
Value Proposition](https://image.slidesharecdn.com/introductiontobmdesignfinal-171003160929/75/Introduction-to-Business-Model-Design-22-2048.jpg)
Uploaded byChristos Makiyama
Introduction to Business Model Design
The document outlines an entrepreneurship bootcamp in Athens, Greece. It discusses designing a business model canvas and value proposition canvas to define a customer problem and proposed solution. Examples are provided of Starbucks' and Super Mario's business models and value propositions. The document emphasizes that the business model is more important than the product, and that there must be market-fit for any business to succeed. It advises entrepreneurs to get out and test assumptions rather than relying on guesses.
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Introduction to Business Model Design
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- 2. Today • Design and communicate your idea using Business Model Canvas and Value Proposition Canvas •Define the customer problem you are trying to solve and your solution • Create a plan of how you will test your assumptions
- 3. What How Why The core ideaof any business Value Proposition Product/Service Business Model Process/Method Mission Motives 1-5 years 10-20 years 100 years You need to revise every…
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- 5. What is aBusiness Model?
- 6. Business model isthe structure of how an enterprise creates value for a target group of people (customers) and makes profits from such activity
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- 11. Apple, iPhone Control Integration Chips & components Suppliers (i.e. Samsung) Manufacturing Services (i.e.Foxconn) iTunes users OS.X BoM R&D Key Partnerships Key Activities Value Proposition Customer Relationships Customer Segments Key Resources Channels Revenue StreamsCost Structure Apps Store IT operation cost Stores CapEx & Opex
- 12. Samsung, Galaxy S R&D Capex Key Partnerships Key ActivitiesValue Proposition Customer Relationships Customer Segments Key Resources Channels Revenue StreamsCost Structure Manufacturing Mobile Operators Partnerships
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- 14. Business Model makes thedifference and not the product Credit: Procsilas Moscas
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- 16. Key Partnerships Key Activities Value Proposition Customer Relationships Customer Segments Key ResourcesChannels Revenue StreamsCost Structure The two fundamental building blocks Who?What? Needs and Wants Value Proposition Market- Product fit
- 17. Key Partnerships Key Activities Value Proposition Customer Relationships Customer Segments Key ResourcesChannels Revenue StreamsCost Structure The two fundamental building blocks
- 18. Customer Segment Value Proposition Canvas – Alex Osterwalder Customer Jobs Gains Pains Value Proposition Gain Creators Pain Relievers Products & Services What arethe needs/wants beyond your customer expectations? Gains How your product and services will set new expectations of needs/wants? Gain Creators How your product and services will reduce, or eliminate the pains which your customer experiences to meet his expectations? Pain Relievers What your customer needs/wants to accomplish and his expectations? Jobs to get done What are the products and services that your Value Proposition is built around Products & Services What are the challenges, constrains, limitations to meet his expectations? Pains
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- 20. Founded in 1971,Seattle U.S.A 26,000+ stores 75 countries 330,000 employees $20.9B FY16
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- 22. [Joe Fox] Thewhole purpose of places like Starbucks is for people with no decision-making ability whatsoever to make six decisions just to buy one cup of coffee. Short, tall, light, dark, caf, decaf, low-fat, non-fat, etc. So people who don't know what the hell they're doing or who on earth they are, can, for only $2.95, get not just a cup of coffee but an absolutely defining sense of self: Tall! Decaf! Cappuccino! Customer Segment Value Proposition
- 23. Credit: REUTERS/Lucas Jackson Starbucks’ target Customer Profile Relatively highsocial consciousness Work in organizations with limited autonomy Educated Urbanites Women & Men Professional careers Age 25-40
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- 25. Key Partnerships Key Activities Value Proposition Customer Relationships Customer Segments Key ResourcesChannels Revenue StreamsCost Structure Starbucks’ Business Model in 1980’s-90’s Urbanites Women & Men Office Workers Age 25-40 Starbuck Coffee Shops Coffee Machine makers Factories & Logistic centers Store Operation (Rent etc.) Labor Coffee/Bev erage Food Goods (i.e. Cups) Coffee beans Raw materials (Coffee Beans, cups etc.)
- 26. Key Partnerships Key Activities Value Proposition Customer Relationships Customer Segments Key ResourcesChannels Revenue StreamsCost Structure Starbucks’ Business Model in 1980’s-90’s Urbanites Women & Men Office Workers Age 25-40 Starbuck Coffee Shops Coffee Machine makers Factories & Logistic centers Store Operation (Rent etc.) Labor Coffee/Bev erage Food Goods (i.e. Cups) Coffee beans Raw materials (Coffee Beans, cups etc.) Growing Market Economy of Scale
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- 28. Starbucks VP Gain Creators Pain Relievers Products & Services Automated espresso machines Hip, contemporary atmosphere shops (& non-smoking!) Australia in 2000… Customer Segment Many, many, manyshops (14,000+) No issue to wait 10 minutes for their coffee order Gloria Jeans, McCafe etc. competition (Late comer and value for money)
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- 35. Focus on onemajor idea=need! Built your Value Proposition around it.
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- 37. “Get out ofthe building! Get insights, turn your guesses into facts” Steve Blank, “The Startup Owner’s Manual”
- 38. Summary • Business Model Canvas and Value Proposition Canvas • Business Model makes the difference and not the product •Any business model will fail without a Market-Product fit • Focus on one major idea=need and built your VP around it • Get out of the building! Get insights, turn your guesses into facts
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