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Business Model vs Lean Canvas

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The presentation has been created for StartupbootcampIstanbul participants aiming to briefly summarise and compare today's most famous business model design patterns.

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Business Model vs Lean Canvas

  1. 1. Business Model Design yakup bayrak Startupbootcamp Istanbul | 04.09.2015
  2. 2. Yakup Bayrak Lycée Saint Joseph Boğaziçi Üniversitesi Turizm İşletme akampus.com IVME Marketing Group Ajans 27 Niş Events Bilge Adam BT Akademisi 27 Pure New Media KeyFruit DAM Startup Studio SHERPA DAM Growth Hackers Dijital Stüdyo Ciz.io … about.me/yakup
  3. 3. What’s in it for you? 10.00 - 10.45 Part 1 Why we need a model for designing your business flow What is Business Model Canvas? Why should you use Business Model Canvas? What is Lean Canvas? Why should you use Lean Canvas? What are the differences between Business Model and Lean Canvas? 10.45 - 11.00 Coffee break 11.00 - 11.45 Part 2 Let's see how they used Business Model Canvas Let's see how they used Lean Canvas Let's build a Business Model Canvas Let's build a Lean Canvas What's next? 11.45 - 12.15 Q&A 12.15 End of course
  4. 4. Why do we need a model for designing your business flow?
  5. 5. THE BUSINESS PLAN A written document that describes in detail how a new business is going to achieve its goals. A business plan will lay out a written plan from a marketing, financial and operational viewpoint. THE BUSINESS MODEL The plan implemented by a company to generate revenue and make a profit from operations. The model includes the components and functions of the business, as well as the revenues it generates and the expenses it incurs. Business Plan ≠ Business Model
  6. 6. Business Model A business model describes the rationale of how an organization creates, delivers, and captures value. It is simple, intuitively understandable and suitable for iterative development.
  7. 7. not Business Plan Business Plan: A document investors make you write that they don’t read. Business Model: A single diagram that describes your business. - Steve Blank
  8. 8. Business Models Heny Chesbrough - Open Innovation New innovations often require new business models. This is where the idea of business model innovation really started to gain traction. Chesbrough didn’t just describe business models, he also discussed how changing a business model can be an innovation just by itself. Key Points Further reading - http://www.slideshare.net/SiliconValleyST/business-model-innovation-by-h-chesbrough
  9. 9. Business Models Strategy Diamond The first key point here is that a good business model is integrated. All of the elements need to be consistent with and support the others. If you change one element, it’s likely that you’ll need to change all of them. Second, this model illustrates how closely linked strategy and business models are. When you design a business model, you can’t do it without clearly articulating a strategy. Key Points Further reading - http://www.provenmodels.com/598/strategy-diamond/donald-c.-hambrick--james-w.-fredrickson/
  10. 10. Business Models Patrick Staehler - Business Models in the Digital Economy Leadership Style, Relationship Style and Values. Think about that in relation to the point above about integration. If you change the relationship style within your organisation, you’ll likely need to change the rest of your business model as well. Furthermore, this business model innovation could be a source of competitive advantage. This is a very powerful point. Key Points Further reading - http://blog.business-model-innovation.com/tools/
  11. 11. What’s about this famous Business Model Canvas?
  12. 12. Born in Winterthur, Osterwalder obtained his MA in Political Science in 2000 at the University of Lausanne, where in 2004 he also obtained his PhD in Management Information Systems under Yves Pigneur with the thesis, entitled "The Business Model Ontology - a proposition in a design science approach.” In 1999 Osterwalder co- founded his first startup Netfinance.ch, which supplied education in online trading and investing. He was journalist for the Swiss business magazine BILANZ in 2000-01, and Senior Research Fellow back at the University of Lausanne from 2000 to 2005 in the time he finished his PhD research. Alex Osterwalder In 2006 he founded BusinessModelDesign.com, and in 2010 he co-founded the consultancy firm Strategyzer. In the late 2000s "Osterwalder and a team of 470 co-creators published a very attractive and popular model for describing business models: the Business Model Canvas. The Business Model Canvas offers you an excellent model to further develop your ideas about the business model for monetizing data." Further reading - http://businessmodelalchemist.com/
  13. 13. Business Model Canvas “We believe a business model can best be described through nine basic building blocks that show the logic of how a company intends to make money. The nine blocks cover the four main areas of a business: customers, offer, infrastructure, and financial viability. The business model is like a blueprint for a strategy to be implemented through organisational structures, processes, and systems.”
  14. 14. Why should you use Business Model Canvas?
  15. 15. Business Model Canvas “The business model canvas — as opposed to the traditional, intricate business plan — helps organizations conduct structured, tangible, and strategic conversations around new businesses or existing ones. Leading global companies like GE, P&G, and Nestlé use the canvas to manage strategy or create new growth engines, while start-ups use it in their search for the right business model. The canvas’s main objective is to help companies move beyond product-centric thinking and towards business model thinking.”
  16. 16. Business Model Canvas
  17. 17. And what’s about that other one; Lean Canvas?
  18. 18. "Life's too short to build something nobody wants." I have been an entrepreneur for more than a decade, and throughout that time I have been in search of a better, faster way for building successful products. Then I ran into early works on Customer Development and Lean Startup pioneered by Steve Blank and Eric Ries. I joined in on the conversation and have been rigorously applying and testing these principles since then. I started sharing my learning on this blog, which then turned into a book, and subsequently into a series of products aimed at helping entrepreneurs raise their odds of success. That is my mission and reason for being. Ash Maurya Further reading - http://leanstack.com/
  19. 19. “I particularly like Alex Osterwalder’s 1 page canvas approach to business model generation. It visually captures the essential components of a business model. I do find some of Osterwalder’s blocks a bit too general for a lean startup and specifically my type of business – web apps. For instance, before product/market fit, I need to see more emphasis on Problem/Solution than key partners or a customer relationship model. Rob Fitzpatrick created a great adaption of Osterwalder’s canvas that better captures the “4 Steps of Epiphany” type of hypotheses. Rob’s goal is to version each update so you get an automatic way for tracking the evolution of your model/pivots. However, after using the Rob’s Startup Canvas, I found it unfortunate that he left out a few critical blocks like the cost/revenue pieces which make up the foundation of the business model. So I decided to iterate on this one more level and created a new version.” a new version of Business Model Canvas Further reading - http://leanstack.com/books/
  20. 20. 1 234 5 67 8 9 Lean Canvas
  21. 21. 1 132 3 2 4 4 ? Lean Canvas 41 2 3 Product Risk Customer Risk Market Risk
  22. 22. Why should you use Lean Canvas?
  23. 23. Leand Canvas “Lean Canvas is designed for entrepreneurs, not consultants, customers, advisors, or investors. That said, the entrepreneur can greatly benefit by engaging all of those people while validating their canvas.”
  24. 24. Business Model vs Lean Canvas?
  25. 25. Business Model and Lean Canvas Element Business Model Canvas Lean Canvas Target New and existing businesses Startup businesses purely Focus Customers, Investors, Entrepreneurs, Consultants, Advisors Entrepreneurs purely Customers Lays emphasis on customer segments, channels and customer relationships for all businesses Does not lay much emphasis on customer segments because startups have no known or tested products to sell Approach It lays down the infrastructure, lists the nature and sources of financing and the anticipated revenue streams of the business It begins with the problem, a proposed solution, the channels to achieving the solution, costs involved and the anticipated revenue streams Competition It focuses on value proposition in quantitative and qualitative terms as way to stay smart in the market It assesses whether the business has an unfair advantage over the rest and how to capitalize on it for better grounding Application It fosters candid understanding, creativity, discussion and constructive analysis It is a simple problem-solution oriented approach which enables the entrepreneur to develop step-by- step
  26. 26. design your life, first… about.me/yakup

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