Certificate Course - Module - Business Model Generation

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Certificate Course - Module - Business Model Generation

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Certificate Course - Module - Business Model Generation

  1. 1. [Insert your logo here] 1
  2. 2. INTRODUCTION TO BUSINESS MODEL DESIGN Module: Value Proposition and Business Model Design Lecturer: [Insert name] Date: [Insert date] PRESENTATION SUPPORTED BY [Insert your logo here]
  3. 3. 3 [Insert your logo here] Do we really understand why some organisations are more successful than others? How did Apple become such a high valued company? Why is Microsoft still the market leader in operating systems if Apple products and their software are better? How is it possible that some start-ups can disrupt entire industries while the market leaders cannot do anything against it? Just some of the question we should know an answer for …
  4. 4. 4 [Insert your logo here] In this course you will gain knowledge about social entrepreneurship and social entrepreneurs By the end of this session you should be able: • to define what a business model is and define its importance in today’s business environment • to name each building block of the Business Model Canvas and describe different characterisations each building block can have • to analyse existing and develop new business models using the Business Model Canvas, if sufficient information on the context of the business is available This is a very hands on course! Each lecture we will take one of the 9 building blocks of the most used business model framework and use 2 cases to explore the building block in detail. Applying your learnings from the previous weeks, you will analyse 2 additional cases at the end of the course from A to Z.
  5. 5. 5 [Insert your logo here] Table of Contents • DEFINITION of the business model term1 • Business model FRAMEWORKS2 • The BUSINESS MODEL CANVAS3
  6. 6. 6 [Insert your logo here] A business model is defined as the rationale of how an organization creates and delivers value to its customers and captures value in return Defining the term business model
  7. 7. 7 [Insert your logo here] Overview of business model frameworks (1/2) Source Components # Horowitz (1996) Price, product, distribution, organizational characteristics, and technology 5 Viscio and Pasternak (1996) Global core, governance, business units, services, and linkages 5 Timmers (1998) Product/service/information flow architecture, business actors and roles, actor benefits, revenue sources, and marketing strategy 5 Markides (1999) Product innovation, customer relationship, infrastructure management, and financial aspects 4 Donath (1999) Customer understanding, marketing tactics, corporate governance, and intranet/extranet capabilities 5 Chesbrough and Rosenbaum (2000) Value proposition, target markets, internal value chain structure, cost structure and profit model, value network, and competitive strategy 6 Gordijn et al. (2001) Actors, market segments, value offering, value activity, stakeholder network, value interfaces, value ports, and value exchanges 8 Linder and Cantrell (2001) Pricing model, revenue model, channel model, commerce process model, Internet- enabled commerce relationship, organizational form, and value proposition 8 Petrovic et al. (2001) Value model, resource model, production model, customer relations model, revenue model, capital model, and market model 7
  8. 8. 8 [Insert your logo here] Overview of business model frameworks (2/2) Source Components # Horowitz (1996) Price, product, distribution, organizational characteristics, and technology 5 Viscio and Pasternak (1996) Global core, governance, business units, services, and linkages 5 Timmers (1998) Product/service/information flow architecture, business actors and roles, actor benefits, revenue sources, and marketing strategy 5 Markides (1999) Product innovation, customer relationship, infrastructure management, and financial aspects 4 Donath (1999) Customer understanding, marketing tactics, corporate governance, and intranet/extranet capabilities 5 Chesbrough and Rosenbaum (2000) Value proposition, target markets, internal value chain structure, cost structure and profit model, value network, and competitive strategy 6 Gordijn et al. (2001) Actors, market segments, value offering, value activity, stakeholder network, value interfaces, value ports, and value exchanges 8 Linder and Cantrell (2001) Pricing model, revenue model, channel model, commerce process model, Internet- enabled commerce relationship, organizational form, and value proposition 8 Petrovic et al. (2001) Value model, resource model, production model, customer relations model, revenue model, capital model, and market model 7
  9. 9. 9 [Insert your logo here] Discussion question: Which elements of the frameworks do you think are key?
  10. 10. 10 [Insert your logo here] The Business Model Canvas (BMC) The BMC contains 9 building blocks
  11. 11. 11 [Insert your logo here] The Business Model Canvas (BMC) The canvas tries to describe the infrastructure (how), the offering (what), the customers (who) and the finances (how much)
  12. 12. 12 [Insert your logo here] The Business Model Canvas (BMC):An example
  13. 13. 13 [Insert your logo here] Discussion question: Which components of other business model frameworks are missing in the BMC?
  14. 14. 14 [Insert your logo here] The next weeks Each week we will explore the 9 building blocks of the business model canvas one after another. We will do so, by discussing two companies and what. Your job is it to conduct EXTENSIVE research on both companies so that we can start analysing them in the next session
  15. 15. [Insert your logo here] 15 THANK YOU FOR YOUR ATTENTION
  16. 16. BMC01 – CUSTOMER SEGMENTS Module: Value Proposition and Business Model Design Lecturer: [Insert name] Date: [Insert date] PRESENTATION SUPPORTED BY [Insert your logo here]
  17. 17. 17 [Insert your logo here] A short reminder: The Business Model Canvas (BMC) The canvas tries to describe the infrastructure (how), the offering (what), the customers (who) and the finances (how much)
  18. 18. 18 [Insert your logo here] The Business Model Canvas (BMC) This is what we talk about today
  19. 19. 19 [Insert your logo here] Customer segments Key Questions: • For whom are we creating value? • Who are our most important customers? Potential characteristics • Mass Market • Niche Market • Segmented • Diversified • Multi-sided Platform
  20. 20. 20 [Insert your logo here] Task: find at least three examples for each of the potential characteristics outlined on the previous slide
  21. 21. 21 [Insert your logo here] Lets take a closer look! Describe in detail the customer segments of the following companies: Create groups, get up your chairs and using Post-it notes, flipcharts/flip chart paper put on the wall, whiteboards or whatever available to work in a more dynamic setting.
  22. 22. 22 [Insert your logo here] Question: Which problems did you have when characterising the customer segments?
  23. 23. 23 [Insert your logo here] Reminder Do not forget to make a picture of your work (you will need it in the next sessions)
  24. 24. [Insert your logo here] 24 THANK YOU FOR YOUR ATTENTION
  25. 25. BMC02 – VALUE PROPOSITION Module: Value Proposition and Business Model Design Lecturer: [Insert name] Date: [Insert date] PRESENTATION SUPPORTED BY [Insert your logo here]
  26. 26. 26 [Insert your logo here] A short reminder: The Business Model Canvas (BMC) The canvas tries to describe the infrastructure (how), the offering (what), the customers (who) and the finances (how much)
  27. 27. 27 [Insert your logo here] The Business Model Canvas (BMC) This is what we talk about today
  28. 28. 28 [Insert your logo here] Value proposition Key questions: • What value do we deliver to the customer? • Which one of our customer’s problems are we helping to solve? • What bundles of products and services are we offering to each Customer Segment? • Which customer needs are we satisfying? Potential characteristics • Newness • Performance • Customization • “Getting the Job Done” • Design • Brand/Status • Price • Cost Reduction • Risk Reduction • Accessibility • Convenience /Usability
  29. 29. 29 [Insert your logo here] Task: find at least one example for each of the potential characteristics outlined on the previous slide
  30. 30. 30 [Insert your logo here] Lets take a closer look! Describe in detail the value proposition of the following companies: Create groups, get up your chairs and using Post-it notes, flipcharts/flip chart paper put on the wall, whiteboards or whatever available to work in a more dynamic setting.
  31. 31. 31 [Insert your logo here] Question: Which problems did you have when characterising the value propositions?
  32. 32. 32 [Insert your logo here] Reminder Do not forget to make a picture of your work (you will need it in the next sessions)
  33. 33. [Insert your logo here] 33 THANK YOU FOR YOUR ATTENTION
  34. 34. BMC03 – CHANNELS Module: Value Proposition and Business Model Design Lecturer: [Insert name] Date: [Insert date] PRESENTATION SUPPORTED BY [Insert your logo here]
  35. 35. 35 [Insert your logo here] A short reminder: The Business Model Canvas (BMC) The canvas tries to describe the infrastructure (how), the offering (what), the customers (who) and the finances (how much)
  36. 36. 36 [Insert your logo here] The Business Model Canvas (BMC) This is what we talk about today
  37. 37. 37 [Insert your logo here] Channels Key questions: • Through which Channels do our Customer Segments want to be reached? • How are we reaching them now? • How are our Channels integrated? • Which ones work best? • Which ones are most cost-efficient? • How are we integrating them with customer routines?
  38. 38. 38 [Insert your logo here] Channels Channel phases: • Awareness - How do we raise awareness about our company’s products and services? • Evaluation - How do we help customers evaluate our organization’s Value Proposition? • Purchase - How do we allow customers to purchase specific products and services? • Delivery - How do we deliver a Value Proposition to customers? • After sales - How do we provide post-purchase customer support?
  39. 39. 39 [Insert your logo here] Lets take a closer look! Describe in detail the channels used by of the following companies: Create groups, get up your chairs and using Post-it notes, flipcharts/flip chart paper put on the wall, whiteboards or whatever available to work in a more dynamic setting.
  40. 40. 40 [Insert your logo here] Question: Which problems did you have when characterising the value propositions?
  41. 41. 41 [Insert your logo here] Reminder Do not forget to make a picture of your work (you will need it in the next sessions)
  42. 42. [Insert your logo here] 42 THANK YOU FOR YOUR ATTENTION
  43. 43. BMC04 – CUSTOMER RELATIONSHIPS Module: Value Proposition and Business Model Design Lecturer: [Insert name] Date: [Insert date] PRESENTATION SUPPORTED BY [Insert your logo here]
  44. 44. 44 [Insert your logo here] A short reminder: The Business Model Canvas (BMC) The canvas tries to describe the infrastructure (how), the offering (what), the customers (who) and the finances (how much)
  45. 45. 45 [Insert your logo here] The Business Model Canvas (BMC) This is what we talk about today
  46. 46. 46 [Insert your logo here] Customer relationships Key questions • What type of relationship does each of our Customer • Segments expect us to establish and maintain with them? • Which ones have we established? • How are they integrated with the rest of our business model? • How costly are they? Examples • Personal assistance • Dedicated Personal Assistance • Self-Service • Automated Services • Communities • Co-creation
  47. 47. 47 [Insert your logo here] Task: find at least two examples for each of the potential characteristics outlined on the previous slide
  48. 48. 48 [Insert your logo here] Lets take a closer look! Describe in detail the customer relationships of the following companies: Create groups, get up your chairs and using Post-it notes, flipcharts/flip chart paper put on the wall, whiteboards or whatever available to work in a more dynamic setting.
  49. 49. 49 [Insert your logo here] Question: Which problems did you have when characterising the customer relationships?
  50. 50. 50 [Insert your logo here] Reminder Do not forget to make a picture of your work (you will need it in the next sessions)
  51. 51. [Insert your logo here] 51 THANK YOU FOR YOUR ATTENTION
  52. 52. BMC05 – REVENUE STREAMS Module: Value Proposition and Business Model Design Lecturer: [Insert name] Date: [Insert date] PRESENTATION SUPPORTED BY [Insert your logo here]
  53. 53. 53 [Insert your logo here] A short reminder: The Business Model Canvas (BMC) The canvas tries to describe the infrastructure (how), the offering (what), the customers (who) and the finances (how much)
  54. 54. 54 [Insert your logo here] The Business Model Canvas (BMC) This is what we talk about today
  55. 55. 55 [Insert your logo here] Customer relationships Key questions • For what value are our customers really willing to pay? • For what do they currently pay? • How are they currently paying? • How would they prefer to pay? • How much does each Revenue Stream contribute to overall revenues? Types: • Asset sale • Usage fee • Subscription Fees • Lending/Renting/Leasing • Licensing • Brokerage fees • Advertising
  56. 56. 56 [Insert your logo here] Customer relationships Fixed pricing • List Price • Product feature dependent • Customer segment dependent • Volume dependent Dynamic pricing • Negotiation( bargaining) • Yield Management • Real-time-Market
  57. 57. 57 [Insert your logo here] Lets take a closer look! Describe in detail the revenue streams of the following companies: Create groups, get up your chairs and using Post-it notes, flipcharts/flip chart paper put on the wall, whiteboards or whatever available to work in a more dynamic setting.
  58. 58. 58 [Insert your logo here] Question: Which problems did you have when characterising the revenue streams?
  59. 59. 59 [Insert your logo here] Reminder Do not forget to make a picture of your work (you will need it in the next sessions)
  60. 60. [Insert your logo here] 60 THANK YOU FOR YOUR ATTENTION
  61. 61. BMC06 – KEY RESOURCES Module: Value Proposition and Business Model Design Lecturer: [Insert name] Date: [Insert date] PRESENTATION SUPPORTED BY [Insert your logo here]
  62. 62. 62 [Insert your logo here] A short reminder: The Business Model Canvas (BMC) The canvas tries to describe the infrastructure (how), the offering (what), the customers (who) and the finances (how much)
  63. 63. 63 [Insert your logo here] The Business Model Canvas (BMC) This is what we talk about today
  64. 64. 64 [Insert your logo here] Key resources Key questions • What Key Resources do our Value Propositions require? • Our Distribution Channels? Customer Relationships? • Revenue Streams? Types of resources • Physical • Intellectual (brand patents, copyrights, data) • Human • Financial
  65. 65. 65 [Insert your logo here] Task: find at least two examples for companies which are primary depending on each of the resource types
  66. 66. 66 [Insert your logo here] Lets take a closer look! Describe in detail the key resources of the following companies: Create groups, get up your chairs and using Post-it notes, flipcharts/flip chart paper put on the wall, whiteboards or whatever available to work in a more dynamic setting.
  67. 67. 67 [Insert your logo here] Question: Which problems did you have when characterising the key resources?
  68. 68. 68 [Insert your logo here] Reminder Do not forget to make a picture of your work (you will need it in the next sessions)
  69. 69. [Insert your logo here] 69 THANK YOU FOR YOUR ATTENTION
  70. 70. BMC07 – KEY ACTIVITIES Module: Value Proposition and Business Model Design Lecturer: [Insert name] Date: [Insert date] PRESENTATION SUPPORTED BY [Insert your logo here]
  71. 71. 71 [Insert your logo here] A short reminder: The Business Model Canvas (BMC) The canvas tries to describe the infrastructure (how), the offering (what), the customers (who) and the finances (how much)
  72. 72. 72 [Insert your logo here] The Business Model Canvas (BMC) This is what we talk about today
  73. 73. 73 [Insert your logo here] Customer relationships Key questions • What Key Activities do our Value Propositions require? • Our Distribution Channels? • Customer Relationships? • Revenue streams? Categories • Production • Problem Solving • Platform/Network
  74. 74. 74 [Insert your logo here] Task: find at least three examples for each of the categories outlined on the previous slide
  75. 75. 75 [Insert your logo here] Lets take a closer look! Describe in detail the key activities of the following companies: Create groups, get up your chairs and using Post-it notes, flipcharts/flip chart paper put on the wall, whiteboards or whatever available to work in a more dynamic setting.
  76. 76. 76 [Insert your logo here] Question: Which problems did you have when characterising the key activitites?
  77. 77. 77 [Insert your logo here] Reminder Do not forget to make a picture of your work (you will need it in the next sessions)
  78. 78. [Insert your logo here] 78 THANK YOU FOR YOUR ATTENTION
  79. 79. BMC08 – KEY PARTNERSHIPS Module: Value Proposition and Business Model Design Lecturer: [Insert name] Date: [Insert date] PRESENTATION SUPPORTED BY [Insert your logo here]
  80. 80. 80 [Insert your logo here] A short reminder: The Business Model Canvas (BMC) The canvas tries to describe the infrastructure (how), the offering (what), the customers (who) and the finances (how much)
  81. 81. 81 [Insert your logo here] The Business Model Canvas (BMC) This is what we talk about today
  82. 82. 82 [Insert your logo here] Customer relationships Key questions • Who are our Key Partners? • Who are our key suppliers? • Which Key Resources are we acquiring from partners? • Which Key Activities do partners perform? Motivations for partnerships: • Optimization and economy • Reduction of risk and uncertainty • Acquisition of particular resources and activities
  83. 83. 83 [Insert your logo here] Task: find at least three examples of companies representing each partnering motivation
  84. 84. 84 [Insert your logo here] Lets take a closer look! Describe in detail the key partnerships of the following companies: Create groups, get up your chairs and using Post-it notes, flipcharts/flip chart paper put on the wall, whiteboards or whatever available to work in a more dynamic setting.
  85. 85. 85 [Insert your logo here] Question: Which problems did you have when characterising the key partners?
  86. 86. 86 [Insert your logo here] Reminder Do not forget to make a picture of your work (you will need it in the next sessions)
  87. 87. [Insert your logo here] 87 THANK YOU FOR YOUR ATTENTION
  88. 88. BMC09 – COST STRUCTURE Module: Value Proposition and Business Model Design Lecturer: [Insert name] Date: [Insert date] PRESENTATION SUPPORTED BY [Insert your logo here]
  89. 89. 89 [Insert your logo here] A short reminder: The Business Model Canvas (BMC) The canvas tries to describe the infrastructure (how), the offering (what), the customers (who) and the finances (how much)
  90. 90. 90 [Insert your logo here] The Business Model Canvas (BMC) This is what we talk about today
  91. 91. 91 [Insert your logo here] Customer relationships Key questions • What are the most important costs inherent in our business model? • Which Key Resources are most expensive? • Which Key Activities are most expensive? Is your business more: • Cost Driven (leanest cost structure, low price value proposition, maximum automation, extensive outsourcing) • Value Driven (focused on value creation, premium value proposition) Sample characteristics: • Fixed Costs (salaries, rents, utilities) • Variable costs • Economies of scale • Economies of scope
  92. 92. 92 [Insert your logo here] Task: find at least three examples for cost and value-driven companies, and one where it changed
  93. 93. 93 [Insert your logo here] Lets take a closer look! Describe in detail the cost structure of the following companies: Create groups, get up your chairs and using Post-it notes, flipcharts/flip chart paper put on the wall, whiteboards or whatever available to work in a more dynamic setting.
  94. 94. 94 [Insert your logo here] Question: Which problems did you have when characterising the key partners?
  95. 95. 95 [Insert your logo here] Reminder Do not forget to make a picture of your work (you will need it in the next sessions)
  96. 96. [Insert your logo here] 96 THANK YOU FOR YOUR ATTENTION
  97. 97. BUSINESS MODEL CASES Module: Value Proposition and Business Model Design Lecturer: [Insert name] Date: [Insert date] PRESENTATION SUPPORTED BY [Insert your logo here]
  98. 98. 98 [Insert your logo here] The bigger picture Having separately analyse each component of Google’s and Walt Disney’s business model, it is time to look at the bigger picture.
  99. 99. 99 [Insert your logo here] The bigger picture It is now your task to analyse the business model as a whole and develop new business model which Google resp. Walt Disney could implement in the future.
  100. 100. 10 0 [Insert your logo here] The bigger picture To do so, split in groups and hang the business model canvas on the wall (including all your results from the previous sessions) and develop different scenarios for future business models.
  101. 101. 10 1 [Insert your logo here] The bigger picture Evaluate each scenario and present your results later in front of the other groups (there you also have to detail which criteria you used to evaluate the.
  102. 102. [Insert your logo here] 10 2 THANK YOU FOR YOUR ATTENTION

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