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Business model generation

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The presentation for lecture Business Model Canvas within the Kyiv School of Economics

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Business model generation

  1. 1. BUSINESS MODEL CANVAS
  2. 2. Mykola Skyba Director of the “Agency of cultural strategies," founder of the educational platform for youth the "Next Generation Business School“. We concentrate on the creative economy and innovation. Expert of the “Cultura2025" platform of strategic initiatives. Partner in the Program "Code of City“. I deal with the strategic consulting, in particular - how to use the cultural resources to define the value proposition in business. Implements the cognitive approach for decision- making process.
  3. 3. WHY MODEL?
  4. 4.  In the strategic level the mono-logic dos not work  Each decision it is the composition of the solution  Composite logic complicated than usual not just at times - and in stages.  We able to mastering with complexity only operate by models
  5. 5. The top manger never works with reality. He| she deals with some model and uses it for creating your reality via making solution witch base on his/her vision of the reality and taking responsibility for these. Viacheslav Geraschenko , kmbs
  6. 6. What is being sold? Asset Type Financial Physical Intellectual Human Asset Right Ownership– Significant Transformation Entrepreneur Manufacture r Inventor Human Creator Ownership– Limited Transformation (Distributor) Financial Trader Wholesaler/ Retailer IP Trader HumanDi stributor Use (Landlord) Financial Landlord Physical Landlord Intellectu al Landlord Contract or Matching (Broker) Financial Broker Physical Broker IP Broker HR Broker Source: MIT eBusiness Process Repository MIT Business Model Archetypes (BMAs)
  7. 7. Using this framework, researcher from MIT classify the revenue streams of the top 1000 firms in the US economy in fiscal year 2000 and analyze their financial performance.
  8. 8. The results show that business models are a better predictor of financial performance than industry classifications and that some business models do, indeed, perform better than others. Specifically, selling the right to use assets is more profitable and more highly valued by the market than selling ownership of assets. http://seeit.mit.edu/publications/BusinessModels6May2004.pdf
  9. 9. HOW TO OPERATE THE BYSINESS MODEL?
  10. 10. BM CANVAS = ENTERPENERSHIP + DESIGN
  11. 11. THE DESIGN THINKING PROCESS
  12. 12. DROW PLEASE FIVETANGULAR STAR (don’t away your hand from the paper) DROW PLEASE SEVENTANGULAR STAR (don’t away your hand from the paper) task 1 task 2 Exercise What in results?
  13. 13. .. . . . . .
  14. 14. . . . . . . ..
  15. 15. Task 3 DROW PLEASE NINECORNER STAR (don’t away your hand from the paper) Exercise
  16. 16. . . . . . . . . .
  17. 17. . . . . . . . . .ПРОПОЗИЦІЯ КЛІЄНТ РЕСУРСИ PARTNERS ДИСТРИБУЦІЯ ГРОШОВИЙ ПОТІК КАЛЬКУЛЯЦІЯ ВИ REVENUE PROPOSITION CUSTOMERS RESOURCES RELATION/PRO MOTION DISTRIBUTION COST
  18. 18. . . . . . .. . . ПРОПОЗИЦІЯ CUSTOMERS PARTNERS REVENUE RESOURCES RELATION/PRO MOTION DISTRIBUTION COST
  19. 19. BUSINESS MODEL CANVAS
  20. 20. https://www.youtube.com/watch?v=wlKP-BaC0jA
  21. 21. https://www.youtube.com/watch?v=Fro8nMI8cxY The long tail model
  22. 22. BUSINESS MODEL CANVAS step by step
  23. 23. CUSTOMER SEGMENTS
  24. 24. 1
  25. 25. Portrait Behavior facts Want and goals Gregory House, 40+ He is doctor working in the Princeton- Pleynsboro clinic. He walks with a cane Drive with the bicke Honda CBR1000RR Repsol Replica When Wilson call to Gregory, his phone plays the song of ABBA "Dancing Queen". Want to get rid of chronic pain in the leg. Requires good rest. Try to face up with complicated case in clinical practice. Diagnoses only briefly talking with the client. Tends to ignore established rules Often repeats: "All lie.“ Use the FB several times a week
  26. 26. Seek Behavior Cluster Seek Desire Cluster
  27. 27. CHARACTERISTICS Newness Performance Customization “Getting the Job Done” Design What value do we deliver to the customer? Which one of our customer’s problems are we helping to solve? What bundles of products und services are we offering to each Customer Segment? Which customer needs are satisfying? Brand/Status Price Cost Reduction Risk Reduction Accessibility Convinced/Usability
  28. 28. Smart Tie  Niche Market Convinced Usability Design
  29. 29. Mans who care about you appearanc and invest personal brand Confident in perfections of the image Smart Tie
  30. 30. DELFAST  Newness  Risk Reduction  “Getting the  Job Done”  Mass Market + Diversified
  31. 31. Delivery a small object (7 kg max) for a 1 hour around city DELFAST Wide audie of private clients Corporate clients Guaranty deliveries just in time
  32. 32. “Escada-М”  Performance  Segmented Customers
  33. 33. The highest quality plywood for Ukrainian market DELFAST Ukrainian furniture manufacto and stores %) European furniture manufacto (70 %) High quality and cheap raw materials for Italian market
  34. 34.  Performance  Customization  Design
  35. 35. Spend time with children making something interesting DELFAST Family with children 12
  36. 36.  Risk Reduction  Accessibility  Diversified
  37. 37. Improves written communication in English GRAMMARLY job seekers, foreign stud and English language learners, an non-native English-spea professiona more than 6 leading universities and corporation instant feedback on the accuracy, impact, and credibility of their English writing
  38. 38. NetHunt CRM  Convinced/ Usability  Segmented Customers + Diversified
  39. 39. Entreprene gmail users around wo who try to familiar an flexible wh their busin data and informatio Confident in perfections of the image NetHunt CRM
  40. 40.  Convinced/ Usability
  41. 41. Awareness Evaluation Purchase Delivery After sales
  42. 42. Awareness How we do raise awareness about our company’s product and services? Evaluation How we help customers evaluate our organization’s Value Proposition Purchase How we allow customers to purchase specific products and services Delivery How we deliver a Value Proposition to customers? After sales How we provide post-purchase customer support? CHANELL TYPES
  43. 43. INNOVATION IN LOG
  44. 44. Smartphone - remote contro of the life in the modern world include delivery channel of the many service
  45. 45. 3D Printer combined with smartphone
  46. 46. DELFAST http://ua.delfast.co/en/index.html  Delivery by electro bicycle
  47. 47. Delivery a small object (7 kg max) for a 1 hour around city DELFAST Wide audience of private clients Corporate clients Guaranty deliveries just in time Via high speed electro- bicycle
  48. 48. Entrepreneurs gmail users around worlds who try to be familiar and flexible whit their business data and information Confident in perfections of the image NetHunt CRM Via gmail, context adverting
  49. 49. Be careful with visual communications NB
  50. 50. CUSTOMER RELATIONSHIP
  51. 51. What type of relationship does each of our Customers Segment 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?
  52. 52.  Personal assistance  Dedicated personal assistance  Self-service  Automated service  Communities  Co-creation Type of relationship
  53. 53.  Personal assistance SMART TIE
  54. 54. DELFAST  Communities  To be face of the brand  Participation in crucial exhibition
  55. 55. Delivery a small object (7 kg max) for a 1 hour around city DELFAST Wide audie of private clients Corporate clients Guaranty deliveries just in time Via high speed electro- bicycle With wide audience online: via FB, article, etc. With key partner in personal way
  56. 56. “What the most important thing it is personal contact with customers. Therefore, the main item of expenditure it is travel the sales managers.” Volodymyr Patias ESKADA-M
  57. 57. The highest quality plywood for Ukrainian market DELFAST Ukrainian furniture manufacto and stores %) European furniture manufacto (70 %) High quality and cheap raw materials for Italian market Personal contact with key clients in b2b segment – thematic exhibition
  58. 58.  Co-creating
  59. 59. Revenue Stream
  60. 60. DELFAST  Problem solving With sending and receiving small items
  61. 61. DELFAST  Fixed price
  62. 62.  Negotiation: smart discount for intelligent people SMART TIE
  63. 63. NB Crucial point: How easy it to pay?
  64. 64. https://www.fiserv.com/blog/the-point/planning-stay- business-make-easy-consumers-pay-you-blog.aspx NB
  65. 65. KEY RESOURSES
  66. 66. TYPES OF RESOURCES Physical Intellectual (brand patents, copyright, data) Human Financial
  67. 67. Entreprene gmail users around wo who try to familiar an flexible wh their busin data and information Confident in perfections of the image NetHunt CRM New soft Human recourses Internet Personal assistance Via gmail, context adverting
  68. 68. DELFAST  Founders’ charisma  Investment 300К$  Motivated  bicyclist
  69. 69. Delivery a small object (7 kg max) for a 1 hour around city DELFAST Wide audie of private clients Corporate clients Guaranty deliveries just in time Via high speed electro- bicycle With wide audience online: via FB, article, etc. With key partner in personal way -Founders’ charisma -Investment - Motivated bicyclist
  70. 70. KEY ACTIVITIES
  71. 71. Identification of Key Activities involve as assessing: what Key Activities do our Value Propositions require? Our Distribution Channels? Customer Relationships? Revenue streams? The key Activities Building Block describes the most important things a company must do to make its business model work Key Activities Key Activities can be categorized as follows: • Production • Problem solving • Platform/Network
  72. 72. DELFAST  Problem solving
  73. 73. WHAT YOU GET WITH DELFAST: SPEED As opposed to regular «delivery for tomorrow» DelFast will deliver your order in an hour. SEQURITY & SAFETY Your goods are insured for amount up to UAH 10,000 according to agreement. FLEXIBLE COOPERATION We deliver goods either from e-shops or from individuals from hands to hands. ECOLOGICAL COMPATIBILITY We only use electric transport, thus preserving air purity. GOOD TESTIMONIALS Our courier will get adjusted to your customers’ schedule. As a result — everyone is pleased!
  74. 74. Delivery a small object (7 kg max) for a 1 hour around city DELFAST Wide audience of private clients Corporate clients Guaranty deliveries just in time Via high speed electro- bicycle With wide audience online: via FB, article, etc. With key partner in personal way -Founders’ charisma -Investment - Motivated bicyclist - R&D (bicycle) - Expand the network of the service point - Earns the investment - Makes delivery Investors
  75. 75. KEY PARTNERSHIP
  76. 76. The highest quality plywood for Ukrainian market ESKADA-M Ukrainian furniture manufacto and stores %) European furniture manufacto (70 %) High quality and cheap raw materials for Italian market Personal contact with key clients in b2b segment – thematic exhibition -Founders’ charisma -Investment - Motivated bicyclist Fast electro bike -Founders’ charisma -Investment - Motivated bicyclist kmbs Strategy, skills
  77. 77. Delivery a small object (7 kg max) for a 1 hour around city DELFAST Wide audie of private clients Corporate clients Guaranty deliveries just in time Via high speed electro- bicycle With wide audience online: via FB, article, etc. With key partner in personal way -Founders’ charisma -Investment - Motivated bicyclist - R&D (bicycle) - Expand the network of the service point - Earns the investment - Makes delivery Investors Privat bank «Нова Пошта» Kniga.biz.ua Citrus.ua Eda.ua Bodo
  78. 78. WHAT YOU MUST TO KNOW WORKING with BUSINESS MODEL CANVAS
  79. 79. • Don’t fall in love in you first Business Model • Divide facts from hypothesis • The work with canvases – it is Iteration process • The work with canvases – it is Iteration process • Face up with unknowing • Pay most attention for value • Develop empathy • Annalise environment • Deal with ideation • Prototyping • Look around
  80. 80. Fact Hypothetic HypotheticHypothetic Hypothetic Hypothetic Hypothetic Fact Fact Fact Fact Hypothetic Hypothetic Fact Hypothetic Hypothetic Fact Hypothetic Divide facts from hypothesis
  81. 81. Systematically test your model
  82. 82. Pay attention for unknowing
  83. 83. Pay most attention to the value
  84. 84. http://www.businessmodelgeneration.com/canvas/vpc
  85. 85. https://www.youtube.com/watch?v=7-WNQgVLf2s
  86. 86. IDEATION SESSION
  87. 87. PROTOTYPING
  88. 88. Innovation (Інновації) Competition (Конкуренція) Demographics (Демографія) Economics (Економіка) Infrastructure (Інфраструктура) - Partners Social trends (Тенденції суспільного розвитку) Regulation (нормативно-правова база) LOOK AROUND
  89. 89. Case # 1 You are a top manager of the ski resort. You have reached the status of number one site for lovers of active winter recreation. Your company has attracted significant investment in infrastructure and improved service. But skiing season is very short. On average, within four months of the resort receives profits. The rest of the time you spend earned money on hotels and service equipment. And you need to return the investment and stay competitive. Your actions?
  90. 90. Bukovel: Project “The Carpathian sea”
  91. 91. Case # 2 You are the head of a hospital specializing in the treatment of asthma. Every day in your area of responsibility turns about 5,000 patients - most of them children. Asthma that causes the disease is sudden and treacherous. As many as 3 out of 4 asthma sufferers fail to use their inhalers correctly, which contributes to the thousands of avoidable asthma hospital admissions each year. You and your team's have task: find a way of increasing the efficacy of therapeutic compounds ASAP. On this will depend the life and health of patients, the reputation of your clinic. Your actions?
  92. 92. T-Haler device
  93. 93. 7. Ideation: http://treilanderror.blogspot.com/2011_02_01_archive.html http://surroundingsignifiers.com/training/ 8. Visual thinking https://slidemodel.com/templates/visual-thinking-methodology- powerpoint-diagram/ 1. http://alexosterwalder.com/ 2.https://alpinabook-a.akamaihd.net/iblock/0cb/listalka_bmg_p1-30.pdf 3.http://www.businessmodelgeneration.com/canvas/bmc 4.http://www.businessmodelgeneration.com/downloads/business_model_canvas_ poster.pdf 5. https://canvanizer.com/new/business-model-canvas 6. https://www.youtube.com/watch?v=2tdpNKdH7sM links
  94. 94. THANKS FOR ATTENTION  Mykola Skyba, myskyba@gmail.com

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