1. Business Model Design for Designers

2. JIM KALBACH
Principal UX Strategist, USEEDS°
Rutgers University, USA
Designing Web Navigation
www.xing.com/profile/James_Kalbach
@jameskalbach
www.ExperiencingInformation.com
www.UxToGo.com
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3. What is a business model?
Was ist ein Geschäftsmodell?

4. “The Business Model:
Theoretical Roots,
Recent Developments,
and Future Research”
C. Zott, R. Amit, &
L.Massa.,
WP-862, IESE, June,
2010 - revised
September 2010
http://www.iese.edu/re
search/pdfs/DI-0862-
E.pdf
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5. Definition
A business model describes
the rationale of how an
organization creates, delivers,
and captures value.
ALEXANDER OSTERWALDER
USEEDS° user centred thinking 5

6. Visualizing
Business Models
„A business model, from our
point of view, consists of four
interlocking elements that,
taken together, create and
deliver value.“
MARK W. JOHNSON et al.,
“Reimagine Your Business Model,”
HBR (Dec 2008)
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7. Enter:
The Business Model Canvas

8. 1. Customer Segments
The groups of people or organizations an enterprise aims to reach and serve
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9. 2. Value Proposition
The bundle of products and services that create value for a specific Segment.
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10. 3. Channels
How a company communicates with and reaches
its Customer Segments to deliver a Value Proposition
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11. 4. Customer Relationships
The types of relationships a company
establishes with specific Customer Segments
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12. 5. Revenue Streams
The cash a company generates from each Customer
Segment (costs must be subtracted from revenues to
create earnings ;)
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13. 6. Key Ressources
The most important assets required
to make a business model work
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14. 7. Key Activities
The most important things a company must do
to make its business model work
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15. 8. Key Partners
The network of suppliers and partners that make
the business model work
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16. 9. Cost Structure
All costs incurred to operate a business model
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17. The Business Model Canvas
The nine business model Building Blocks form
the basis for a handy tool, called Business Model Canvas.
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18. The Business Model Canvas
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19. The Business Model Canvas
Back Stage: Front Strage:
Business Customer
Processes Facing
Business Customer
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20. BFD,
Kalbach

21. Business Model Innovation
“ While CEOs still believe that product,
service and operational innovations are
important, they feel that innovation
must also be applied to a company’s
very core — to the way it does business
and drives revenue. CEOs deemed these
business model innovations vital to
creating new and differentiating value
for their companies.”
IBM Global Service, “Business Model Innovation,” Sept 2006
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22. USEEDS° user centred thinking 22

23. Creativity & Business
“CEOs identified creativity as the
number-one leadership competency of
the future…
[But creativity] isn‘t something they
learn within their company, and it
certainly isn‘t something they are
taught in business school. Business
schools teach people how to be
deliverers, not discoverers.“
JEFF DYER AND HAL GREGERSEN, The Innovator‘s DNA, Harvard Business Press, 2011 23

24. Prototype Business Models
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25. 2.8 billion people don‟t have proper sanitation
Every 15 seconds a child dies from sanitation-related illnesses
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26. 26

27. PeePoople
The Business Model Canvas
Accessible,
People in dev.
affordable
world w/o
sanitation
toilets
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28. PeePoople
Management,
The Business Model Canvas
Coordination
Direct,
of Franchises
personal,
family
NGOs Distribution Accessible,
and collection People in dev.
affordable
Awareness, world w/o
sanitation
Marketing Partner toilets
QA
Local
governments
Direct POU
Chance to sales on Franchiser -
UN earn money location via
IP, Women
Technology Franchise
Franchise Sales of
operations Peace of mind franchise
packages
HR Production Transporta- Per bag sales Bulk sales
tion revenue
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29. Business Model Prototyping
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30. BMC Addresses Problems of Business Models
• Different definitions and understandings
• Hard to change in established organizations
• The logic is “invisible“
• Often not creatively designed
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31. It
Doesn’t
Work*
(*for you, most of the time)

32. Uses of the Business Model Canvas for Designers
1. Understanding business models
USEEDS° user centred thinking 32

33. #4: Never forget the business
“Amazon’s business model is
deliberately designed, and the
site is designed to fit the business.
You have to start with a great
business model to produce a great
experience.“
JARED SPOOL, “Revealing Design Treasures From The Amazon Site“
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34. Business Model Design: Disruption Case Study [Xiamter]
http://experiencinginformation.wordpress.com/2011/09/02/business-model-design-disruption-case-study/
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35. Uses of the Business Model Canvas for Designers
1. Understanding business models
2. Showing stakeholders why UX is important
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36. The Business Model Canvas
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37. Uses of the Business Model Canvas for Designers
1. Understand business models
2. Show stakeholders why UX is important
3. Use canvases to show “invisible“ logic
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38. Lean Canvas
http://succinctstories.wordpress.com/2011/02/28/running-lean-%E2%80%93-business-canvas-variant/
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39. Project Canvas
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40. Project Canvas
USEEDS° user centred thinking http://teensplusdesign.wordpress.com/2011/03/22/tisdt-customer-journey-canvas/ 40

41. Canvanizer.com
USEEDS° user centred thinking http://teensplusdesign.wordpress.com/2011/03/22/tisdt-customer-journey-canvas/ 41

42. Project Canvas
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43. Download the Project Canvas°
http://uxtogo.wordpress.com/2012/05/25/the-
project-canvas-defining-your-project-visually/
USEEDS° Blog: www.uxtogo.com
We„re hiring!
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44. Danke schön
© USEEDS° GmbH | Burchardstr. 19 | 20095 Hamburg
Tel.: +49 (0)40 – 696 6691 32
ron.hofer@useeds.de l www.useeds.de
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