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Searching for Business Models




                        paulshawsmith
                           scientific business strategy
paulshawsmith
   scientific business strategy
Alex Osterwalder




                   paulshawsmith
                      scientific business strategy
paulshawsmith
   scientific business strategy
paulshawsmith
   scientific business strategy
Product Innovation
Business Model Innovation




                  paulshawsmith
                     scientific business strategy
The could copy
competitors
They invented new
 business models




                paulshawsmith
                   scientific business strategy
Can’t prove in new BM
In advance
Had to experiment
And take risks




                paulshawsmith
                   scientific business strategy
Define the what is a business model.
             (2 mins)




                              paulshawsmith
                                 scientific business strategy
Customer
Value Proposition
Channels
Customer Relationships
Revenue Streams
Key Resources
Key Activities
Key Partnerships
Cost Structure
Marketing &
  Sales
Marketing &
  Sales
Marketing &
  Sales
Marketing &
  Sales
How much did the price of coffee
consumption change in Swiss households
     over the last couple of years?




                           paulshawsmith
                              scientific business strategy
paulshawsmith
   scientific business strategy
A New
Business Model




      paulshawsmith
         scientific business strategy
How would you design Nespresso’s
       Business Model?
           (10 mins)




                         paulshawsmith
                            scientific business strategy
Households
(espresso fans)
Households
(espresso fans)
Households
(espresso fans)
Households
(espresso fans)
Households
(espresso fans)
Households
(espresso fans)
Households
(espresso fans)
Households
(espresso fans)
Households
                (espresso fans)




Nespresso.com
Households
                (espresso fans)




Nespresso.com
Households
                (espresso fans)




Nespresso.com
Households
                (espresso fans)




Nespresso.com
Households
                (espresso fans)




Nespresso.com
Households
                (espresso fans)




Nespresso.com
Households
                (espresso fans)




Nespresso.com
Households
                (espresso fans)




Nespresso.com
Households
                (espresso fans)




Nespresso.com
Households
                (espresso fans)




Nespresso.com
Households
                (espresso fans)




Nespresso.com
Households
                (espresso fans)




Nespresso.com
Households
                               (espresso fans)




               Nespresso.com




    B2c
distribution
Households
                               (espresso fans)




               Nespresso.com




    B2c
distribution
JV with machine
 Manufactures
paulshawsmith
   scientific business strategy
Come up with as
Many business models as you can
           (6 mins)




                          paulshawsmith
                             scientific business strategy
The best business model…




                   Is only a…

                                paulshawsmith
                                   scientific business strategy
Guess?            Guess?
Guess?              Guess?               Guess?




           Guess?            Guess?




         Guess?                 Guess?
Testing Business Models




                     paulshawsmith
                        scientific business strategy
Steve Blank




    paulshawsmith
       scientific business strategy
paulshawsmith
   scientific business strategy
paulshawsmith
                          scientific business strategy
Source: Blank (2007)
paulshawsmith
                          scientific business strategy
Source: Blank (2007)
paulshawsmith
   scientific business strategy
Minimum Viable Business Model




                         paulshawsmith
                            scientific business strategy
What is the least amount of work I need to do
         to test my business model?




                                  paulshawsmith
                                     scientific business strategy
Minimum             Minimum
             Tasks               Tasks
                      Minimum                Minimum
Minimum                Tasks                  Tasks
 Tasks


            Minimum             Minimum
             Tasks               Tasks


                                   Minimum
          Minimum
                                    Tasks
           Tasks
Map out your business model?




                         paulshawsmith
                            scientific business strategy
What actions could you take to test your
            assumptions?




                                paulshawsmith
                                   scientific business strategy

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Business Models Search Strategies