Designing a Business Model


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In today's world of cut-throat competition, one needs a business model that's truly unique/innovative in order to make an impact on the market. This presentation outlines the basics of designing a good business model through 6 techniques. These techniques can be used independently or combined for the best results. The presentation is based on the book Business Model Generation by Alex Osterwalder and Yves Pigneur.

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Designing a Business Model

  1. 1. DESIGNING BUSINESSMODELS6 techniques to better, more innovative designs
  2. 2. DESIGNING BUSINESSMODELS6 techniques to better, more innovative designsbased on the book Business Model Generationby Alex Osterwalder and Yves Pigneur.
  3. 3. CUSTOMER INSIGHTSgetting into the mind of the customer
  4. 4. EMPATHY MAPTalking to customers is not alwaysuseful. So we create an empathymap by walking in the shoes of atarget customer. It helps understandthe customer’s pain points and howone can try to eliminate them.
  5. 5. IDEATIONbrainstorming for new ideas
  6. 6.  WHAT IF… inspiring crazy new ideas One needs to ask “What if…”questions, no matter how crazythey sound. Some of the best business models have been formedin response to some of the craziestquestions.PS: Can you identify the companies that dared to ask the questions onthe right?
  7. 7. WHERE do business ideas originate?This is a typical business modelcanvas. If you haven’t seen onebefore, it is recommended that youlook it up before proceeding.
  8. 8. WHERE do business ideas originate?Your key partnerships, activitiesand resources form your overallresources.
  9. 9. WHERE do business ideas originate?Your value proposition is youroffer.
  10. 10. WHERE do business ideas originate?Customer relationships andsegments, and channels form thecustomer side of the businessmodel.
  11. 11. WHERE do business ideas originate?The cost structure and revenuestream form the finance part of thebusiness model.
  12. 12. WHERE do business ideas originate?A business idea can start at any ofthese four epicenters. For example,Google started as a search engineand then leveraged its web servers(resources) to offer other serviceslike Gmail. Dell was trying toimprove the cost structure(finance) when it introduced itsbusiness model.
  13. 13. HOWto generate and select the best ideas
  14. 14. HOWto generate and select the best ideasyou first generate as many business ideas as you can, focusing onquantity rather than quality. Then you stop generating ideas, anddiscuss the ones you have, eliminating or combining ideas as youproceed. You should be left with a few implementable ideas at the end.
  15. 15. VISUAL THINKINGusing visual tools to construct meaning
  17. 17. This is NOT visual…
  18. 18. This is…
  19. 19. And so is this…
  20. 20. 1. Understand the essence4 BENEFITS 2. Enhance dialogue of visual thinking 3. Explore ideas 4. Improve communication
  21. 21. PROTOTYPINGexplore all avenues for business models
  22. 22. PROTOTYPING at different scalesA prototype of a business modelcan be created at various scales. Anapkin sketch is the most basicversion, with usually only the valueproposition and revenue streamsmentioned. You can draw one on anapkin while having coffee!
  23. 23. PROTOTYPING at different scalesAn elaborated canvas contains a fullbusiness model canvas with anestimation of the market potentialand some fact checking.
  24. 24. PROTOTYPING at different scalesA business case will build on theelaborated canvas with key data,costs and revenues and profitpotential.
  25. 25. PROTOTYPING at different scalesThis involves an investigation oncustomer acceptance and feasibilityof the plan with an actual field test.
  26. 26. PROTOTYPING at different scales
  27. 27. STORYTELLINGbecause everyone has one to tell
  28. 28.  Introducing new ideasBENEFITS of storytelling  Pitching to investors  Engaging employees
  29. 29. TELLING A STORYCompany Customerperspective perspective
  30. 30. TELLING A STORY You can tell a story either from the company side or from the customer side. In the former, you speak about the company’s resources and how they can be used to benefit the customers and make a profit. In the latter, you speak about the customer’s pain points and how you can eliminate them.Company Customerperspective perspective
  31. 31. TELLING A STORYvarious techniques This little piggy went to the market….This little piggy stayed at home. This little piggy got stoned.
  32. 32. SCENARIOSdiscuss all possibilities
  33. 33. SCENARIOS
  34. 34. SCENARIOS Imagine specific scenarios about the kind of customers using your product/service, how they are using them, their concerns and desires.
  36. 36. SCENARIOSImagine future possibilitiesabout how the market mightchange, new competition thatmight enter, how customerroles might evolve, etc.
  38. 38. IMAGE CREDITSSlide 17: Drawings: 18: 19: 20: 23-27: Pokemon:
  39. 39. GET IN TOUCH!Email: vezance@gmail.comTwitter: @vezanceRecommended reading: Business Model Generation byAlex Osterwalder and Yves Pigneurhttp://www.businessmodelgeneration.comDisclaimer: I am not affiliated with the authors or publishers of this book. I havecreated this presentation after having purchased and read the book. The bookcontains a lot more information on business models, patterns and strategizing.