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Why your next
CEO is a designer

October 2013
Patrick van der Pijl
@patrickpijl
#bmgen
LAST YEARS…
I INTRODUCED YOU
TO BUSINESS MODEL
THINKING
NOW I WOULD LIKE
TO SHOW YOU THE
LATEST INSIGHTS
BUSINESS MODEL
THINKING AND
PRACTICING
TRAINING COURSES
Tallinn (EST)

Bilbao (ESP)

Tokyo (JAP)

Hawaii (USA)

Amsterdam (NET)

Santiago (CHI)

Zagreb (CRO)

Paris (FRA)

Los Angeles (USA)
START-UP
PROGRAMS
IN AMSTERDAM AND BUCHAREST
AS ENGINE IN INCUBATORS (I)
AS ENGINE IN INCUBATORS (II)
BUSINESS MODEL
INNOVATION
Your Next CEO is a Designer
WHAT WE
LEARNED…
IS ABOUT
NEW TOOLS
NEW SKILLS
NEW MINDSET
FOR THE CEO…
AND HIS TEAM!
JUST BEFORE WE
START…
Q:
WHO IS FAMILIAR
WITH THE BUSINESS
MODEL CANVAS?
KEY ACTIVITIES

VALUE PROPOSITIONS

CUSTOMER
SEGMENTS

KEY PARTNERS

COST STRUCTURE

CUSTOMER
RELATIONSHIPS

KEY RESOURCES

CHANNELS

REVENUE STREAMS
WE NEED TO
RETHINK THE WAY
WE DO BUSINESS!
DESIGNING BETTER BUSINESSES
WHY?
TODAY…
…WE SEE FORCES
WE HAVEN’T SEEN
BEFORE…
…WE CALL THEM
NEW RULES
OF THE BUSINESS
GAME.
Q:
WHICH ONE HAS
MOST IMPACT?
SUSTAINABILITY
CREDIT CRISIS
UPCOMING MARKETS
NEW GROWTH REGIONS
GENERATION Z
ONLINE REVOLUTION
NEW TECHOLOGY
THROUGH THE
POWER OF INTERNET
AND SOCIAL MEDIA
WE CAN START A
BUSINESS AT
ALMOST ZERO COST
DOES THAT HELP US
DESIGNING BETTER
BUSINESSES?
LET’S SEE HOW
THAT PLAYS OUT
FOR
START-UPS…
AND CORPORATES…
LET’S LOOK INTO
SOME EXAMPLES
OF BUSINESS
MODEL
INNOVATION
SO YOU COME UP WITH A NEW IDEA…
AND YOU THINK IT IS
WORTH A FORTUNE!
Your Next CEO is a Designer
BUT IT IS NOT!
Your Next CEO is a Designer
BECAUSE AN IDEA…
OR BUSINESS
MODEL…
IS ONLY ON PAPER AND IS…
DESIGNING BETTER BUSINESSES
IT HAS
NO VALUE
ZERO
EVERY IDEA IS
ALREADY
INVENTED…
ONLY NOT BY YOU!
HOW COME?
BECAUSE WE ALL
HAVE THE SAME
PERSONAL
FRUSTRATIONS…
Your Next CEO is a Designer
AND WE HAVE ALL
ACCESS TO THE
SAME INFORMATION
Your Next CEO is a Designer
SO WHAT YOU DO?
Your Next CEO is a Designer
DO YOU GO
FASTER
TO MARKET?
OR DO YOU…
NOT EVEN
START?
OR DO YOU
‘LEARN’ FROM
OTHERS?
OR WRITE A
BUSINESS PLAN?
WELL…
HE WAS
CLEARLY NOT
THE FIRST to
MARKET…

71	
  
SO HOW YOU TURN
YOUR IDEA INTO A
VIABLE PRODUCT?
AND IF YOU HAVE A
VIABLE PRODUCT…
Your Next CEO is a Designer
HOW ARE YOU ABLE
TO SELL IT?
SO LET’S GET BACK
TO YOUR IDEA…
Your Next CEO is a Designer
YOU ASSUME THERE
ARE CUSTOMERS…
Your Next CEO is a Designer
WHO WANT YOUR
PRODUCT…
Your Next CEO is a Designer
AND… THAT THEY
ARE WILLING TO PAY
FOR IT!
BUT HOW YOU
FIGURE THAT OUT?
PLEASE LOOK INTO
THE FOLLOWING…
Source: Alex Osterwalder Instagram
YOU NEED TO TEST
YOUR ASSUMPTIONS
YOU NEED TO
CLARIFY YOUR
ASSUMPTIONS
GO OUT OF THE BUILDING…
KNOCK ON THE CUSTOMERS DOOR…
AND TALK TO THEM!
BEWARE!
DON’T DO IT THE
EASY WAY…
DON’T HIRE AN
AGENCY…
OR
SET UP A TEST
PANEL
BUT DO IT
YOURSELF!
THE MORE YOU
LEARN, THE SOONER
YOU SUCCEED
WHY?
YOU’LL INVENT
SOMETHING PEOPLE
DON’T NEED…
EXAMPLE OF
SEGWAY
Your Next CEO is a Designer
NEED I SAY MORE?
Your Next CEO is a Designer
WHO HAD ONE?
WHAT THEY HAVE IN
COMMON?
THEY SOLVE AN
IRRELEVANT JOB!
YOU NEED TO ASK
YOURSELF THE
FOLLOWING
IS THE PROBLEM A
REAL PROBLEM?
CAN WE IDENTIFY
THE NEED?
DO WE IDENTIFY A
TARGET CUSTOMER
SEGMENT?
AND ARE THEY
WILLING TO PAY FOR
THIS…?
YOU HAVE TO DO
THIS TOGETHER…
Your Next CEO is a Designer
AND GO OUT TO
TALK TO
CUSTOMERS…
Your Next CEO is a Designer
AND MAKE
PIVOTS…
WHAT PIVOTS?
PIVOT YOUR IDEA OR VALUE PROPOSITION
QUALITY AND MARGIN WAS NOT THE JOB…
PIVOT YOUR BUSINESS MODEL
ILOST CHANGED THEIR BUSINESS MODEL
A TRAVEL AGENT CLOSES THEIR SHOPS
PIVOT YOUR CUSTOMERS
NOT PARENTS AND CHILDREN BUT…
PIVOT YOUR TECHNIQUE
ONLY THEN YOU CAN SUCCEED…
AS A START-UP…
OR A CORPORATE START UP…
IT’S A VERY
STRUCTURED
PROCESS…
Your Next CEO is a Designer
SO…
WHAT ABOUT
NEW TOOLS
THE BUSINESS
MODEL
CANVAS
THE BUSINESS MODEL

CANVAS
A BUSINESS MODEL
DESCRIBES THE RATIONALE
OF HOW AN ORGANIZATION
CREATES, DELIVERS, AND
CAPTURES VALUE
KEY ACTIVITIES

VALUE PROPOSITIONS

CUSTOMER
SEGMENTS

KEY PARTNERS

COST STRUCTURE

CUSTOMER
RELATIONSHIPS

KEY RESOURCES

CHANNELS

REVENUE STREAMS
CURRENT BUSINESS MODEL

WHO ARE OUR KEY
PARTNERS?
WHAT IS OUR
MOTIVATION TO WORK
WITH PARTNERS?
WHAT KEY
RESOURCES DO WE
ACQUIRE THROUGH
PARTNERS?
WHAT KEY ACTIVITIES
DO OUR PARTNERS
PERFORM?

WHAT TYPE OF KEY
ACTIVITIES DO WE
PERFORM?

WHAT CUSTOMER NEEDS DO WE
SATISFY?
WHAT PROBLEM DO WE HELP
OUR CUSTOMERS SOLVE?

WHAT KEY
RESOURCES DOES
OUR PROPOSITION
REQUIRE?
PHYSICAL?
INTELLECTUAL?
HUMAN? FINANCIAL?

WHAT ADVANTAGES DO OUR
PRODUCTS AND SERVICES
PROVIDE OUR CUSTOMERS
WITH?
WHAT PRODUCTS AND SERVICES
DO WE DELIVER TO OUR
CUSTOMERS

WHAT IS THE SIZE OF
EACH COST?

WHAT KIND OF
RELATIONSHIP DO WE
MAINTAIN WITH OUR
CUSTOMERS?
PERSONAL CONTACT?
AUTOMATIC? SELFSERVICE?

THROUGH WHAT
CHANNELS DO WE
DELIVER OUR
PRODUCTS AND
SERVICES?

WHAT REVENUE
STREAMS DO WE
GENERATE?

WHO IS OUR
CUSTOMER?
FOR WHOM DO WE
CREATE VALUE?
CAN WE
DISTINGUISH
DIFFERENT
CUSTOMER
SEGMENTS?

WHAT IS THE SIZE OF EACH
REVENUE STREAM?
THE VALUE
PROPOSITION
DESIGNER
UNDERSTANDING
ALL ABOUT YOUR
CUSTOMERS
THINK&FEEL
THINK&FEEL
THINK&FEEL
THINK&FEEL

§ 
§ 
§ 
§ 

§ 
§ 
§ 
§ 

HEAR
HEAR
HEAR
HEAR

§ 
§ 
§ 
§ 

§ 
§ 
§ 
§ 

SEE
SEE
SEE
SEE

SAY&DO
SAY&DO
SAY&DO
SAY&DO

§  PAINS
§  PAINS

§  GAINS
§  GAINS

§  PAINS

§  GAINS
BUT THAT’S NOT
ENOUGH…
WHAT ABOUT THE
JOB YOU GET DONE?
CLAYTON
CHRISTENSEN
§  GAIN CREATORS
§  GAIN CREATORS

§  GAINS

§  GAIN CREATORS
§  PRODUCT

§  GAIN CREATORS

§  SERVICE

§  GAINS
§  GAINS

§  GAINS
§  JOB

§  GAIN CREATORS

§  JOB
§  JOB

§  PRODUCT
§  JOB
§  SERVICE

§  PAIN KILLERS

§  JOB
§  PAINS

§  PAIN KILLERS

§  PRODUCT
§  PAIN KILLERS

§  PAIN KILLERS
§  PAIN KILLERS

§  PAINS
§  PAINS

§  PAINS
THE CONTEXT
MAP
WHERE IS
COMPETITION IN THE
CANVAS?
WHERE DO I SEE
CUSTOMER NEEDS?
HOW DO I IDENTIFY
RELEVANT TRENDS?
CONTEXT CANVAS
THE VISION
MAP
WHAT WOULD YOU
LIKE TO ACHIEVE?
WHAT ARE YOUR
GOALS?
MA

NE N
GAZI

AME

URE/
PICT NT
E
MOM

PICTURE/
MOMENT

PICTURE/
MOMENT

PICTURE/
MOMENT

PICTURE/
MOMENT

PICTURE/
MOMENT
NEW SKILLS
WE BASICALLY NEED
DESIGNERS TO HAVE
A SEAT AT THE
TABLE
OR WE SHOULD
THINK AND ACT LIKE
DESIGNERS.
OBSERVE
WHEREVER YOU LOOK
THAT’S WHAT YOU
SEE.
JERRY SEINFELD
“MOLESKINE AS A PLATFORM FOR
PERSONAL MEANING”
Your Next CEO is a Designer
THINK
VISUALLY
DRAWING IS THE
NEW WRITING
EYES, PENCILS AND THE HAND
MAY BE TOOLS OF THE PAST,
…I BELIEVE THEY ARE TOOLS
OF THE FUTURE.
John Maeda, RISD
Your Next CEO is a Designer
DESIGNING BETTER BUSINESSES
BUT THAT’S NOT
ENOUGH…
Your Next CEO is a Designer
IDEATE
CURRENT BUSINESS MODEL	
  
KEY
PARTNERS
	
  
	
  
	
  

KEY
ACTIVITIES
	
  
	
  

KEY
RESOURCES
	
  

COST STRUCTURE

VALUE
PROPOSITION
	
  
	
  

CUSTOMER
RELATIONSHIPS
	
  

CUSTOMER
SEGMENTS
	
  
	
  

CHANNELS
	
  

REVENUE STREAMS
	
  
	
  
CURRENT BUSINESS MODEL	
  
KEY
PARTNERS
	
  
	
  
	
  

KEY
ACTIVITIES
	
  
	
  

KEY
RESOURCES

COST STRUCTURE

VALUE
PROPOSITION
	
  
	
  

CUSTOMER
RELATIONSHIPS
	
  

CUSTOMER
SEGMENTS
	
  
	
  

CHANNELS
	
  

REVENUE STREAMS
	
  
	
  
CURRENT BUSINESS MODEL	
  
KEY
PARTNERS
	
  
	
  
	
  

KEY
ACTIVITIES
	
  
	
  

KEY
RESOURCES
	
  

COST STRUCTURE

VALUE
PROPOSITION
	
  
	
  

CUSTOMER
RELATIONSHIPS
	
  

CUSTOMER
SEGMENTS
	
  
	
  

CHANNELS
	
  

REVENUE STREAMS
	
  
	
  
CURRENT BUSINESS MODEL	
  
KEY
PARTNERS

KEY
ACTIVITIES
	
  
	
  

KEY
RESOURCES
	
  

COST STRUCTURE

VALUE
PROPOSITION
	
  
	
  

CUSTOMER
RELATIONSHIPS
	
  

CUSTOMER
SEGMENTS
	
  
	
  

CHANNELS
	
  

REVENUE STREAMS
	
  
	
  
Your Next CEO is a Designer
YOU NEED TO BE
ABLE TO JUGGLE
WITH BUSINESS
MODELS
PROTOTYPING
the past was about
choosing solutions
the future is about
generating options
Frank Gehry
Your Next CEO is a Designer
Your Next CEO is a Designer
Your Next CEO is a Designer
8 PROTOTYPES
SEE THE
FUTURE
Your Next CEO is a Designer
THERE IS ONLY ONE
WAY TO LIVE IN A
WORLD OF SPEED,
SURPRISE, NOISE AND
RESPONSIVENESS
Grant McCracken
THAT IS TO VISIT
THE FUTURE
FREQUENTLY
Grant McCracken
Your Next CEO is a Designer
ALLOW FOR MANY
POSSIBLE, PLAUSIBLE
FUTURES
Your Next CEO is a Designer
Your Next CEO is a Designer
THE BEST WAY TO
PREDICT THE
FUTURE IS TO
CREATE IT
PETER DRUCKER
WE’LL WORK ON
THIS TOMORROW!
SO WHAT DOES
THAT MEAN FOR THE
CEO?
Your Next CEO is a Designer
HE NEEDS TO THINK
AND ACT LIKE A
DESIGNER TOO.
HE NEEDS TO GO
BACK TO SCHOOL!
BUT NOT TO
HARVARD OR
STANFORD…
BUT TO THE
COLLEGE OF THE
ARTS…
Your Next CEO is a Designer
WHERE THEY
PREPARE THE NEW
GENERATION OF
LEADERS FOR A
WORLD…
THAT IS NOT ONLY
PROFITABLE…
BUT ALSO
SUSTAINABLE,
ETHICAL AND TRULY
MEANINGFUL.
A SUPERMAN
Your Next CEO is a Designer
Last thing.
We want to challenge
the status quo.
Challenge the way we
design business.
To think different.
Because if YOU love
what you do…
You are more creative &
productive.
LET’S
DESIGN BETTER
BUSINESS
patrick@businessmodelsinc.com

DESIGNING BETTER BUSINESSES

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