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Business Model Design for Designers

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Business Model Design for Designers

  1. 1. Business Model Design for Designers
  2. 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 2
  3. 3. What is a business model? Was ist ein Geschäftsmodell?
  4. 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 4
  5. 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. 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) 6
  7. 7. Enter: The Business Model Canvas
  8. 8. 1. Customer Segments The groups of people or organizations an enterprise aims to reach and serve 8
  9. 9. 2. Value Proposition The bundle of products and services that create value for a specific Segment. 9
  10. 10. 3. Channels How a company communicates with and reaches its Customer Segments to deliver a Value Proposition 10
  11. 11. 4. Customer Relationships The types of relationships a company establishes with specific Customer Segments 11
  12. 12. 5. Revenue Streams The cash a company generates from each Customer Segment (costs must be subtracted from revenues to create earnings ;) 12
  13. 13. 6. Key Ressources The most important assets required to make a business model work 13
  14. 14. 7. Key Activities The most important things a company must do to make its business model work 14
  15. 15. 8. Key Partners The network of suppliers and partners that make the business model work 15
  16. 16. 9. Cost Structure All costs incurred to operate a business model 16
  17. 17. The Business Model Canvas The nine business model Building Blocks form the basis for a handy tool, called Business Model Canvas. 17
  18. 18. The Business Model Canvas 18
  19. 19. The Business Model Canvas Back Stage: Front Strage: Business Customer Processes Facing Business Customer 19
  20. 20. BFD, Kalbach
  21. 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 21
  22. 22. USEEDS° user centred thinking 22
  23. 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. 24. Prototype Business Models 24
  25. 25. 2.8 billion people don‟t have proper sanitation Every 15 seconds a child dies from sanitation-related illnesses 25
  26. 26. 26
  27. 27. PeePoople The Business Model Canvas Accessible, People in dev. affordable world w/o sanitation toilets 27
  28. 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 28
  29. 29. Business Model Prototyping 29
  30. 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 30
  31. 31. It Doesn’t Work* (*for you, most of the time)
  32. 32. Uses of the Business Model Canvas for Designers 1. Understanding business models USEEDS° user centred thinking 32
  33. 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“ 33
  34. 34. Business Model Design: Disruption Case Study [Xiamter] http://experiencinginformation.wordpress.com/2011/09/02/business-model-design-disruption-case-study/ 34
  35. 35. Uses of the Business Model Canvas for Designers 1. Understanding business models 2. Showing stakeholders why UX is important USEEDS° user centred thinking 35
  36. 36. The Business Model Canvas 36
  37. 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 USEEDS° user centred thinking 37
  38. 38. Lean Canvas http://succinctstories.wordpress.com/2011/02/28/running-lean-%E2%80%93-business-canvas-variant/ USEEDS° user centred thinking 38
  39. 39. Project Canvas USEEDS° user centred thinking 39
  40. 40. Project Canvas USEEDS° user centred thinking http://teensplusdesign.wordpress.com/2011/03/22/tisdt-customer-journey-canvas/ 40
  41. 41. Canvanizer.com USEEDS° user centred thinking http://teensplusdesign.wordpress.com/2011/03/22/tisdt-customer-journey-canvas/ 41
  42. 42. Project Canvas USEEDS° user centred thinking 42
  43. 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! USEEDS° user centred thinking 43
  44. 44. Danke schön © USEEDS° GmbH | Burchardstr. 19 | 20095 Hamburg Tel.: +49 (0)40 – 696 6691 32 ron.hofer@useeds.de l www.useeds.de 44

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