Designing Business Models

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talk given at Sierre, December 2010

Published in: Business

Designing Business Models

  1. 1. desig ning ss mo delbusine red op prepaa worksh erby alex osterwald rand y ves pigneu c. 2010 Sierre De
  2. 2. service innovationFLICKR.COM
  3. 3. process innovationFLICKR.COM
  4. 4. business model innovationFLICKR.COM
  5. 5. Time Machine
  6. 6. 1958
  7. 7. [sources: Henry Chesbrough, photo: life.com]
  8. 8. [sources: Henry Chesbrough, photo: life.com]
  9. 9. Time Machine
  10. 10. 1997
  11. 11. ?what do both examples have in common?
  12. 12. 1 Product innovation alone was not sufficient They enabled the new product through the business model
  13. 13. 2 They didnʼt nor could they copy from competitors They invented new business models
  14. 14. 3They couldnʼt prove in advance that the models would work They had to take some risk and experiment
  15. 15. “ The enemy ofinnovation are twowords - prove it -you can not prove ” any new idea Roger Martin, Dean Rotman School
  16. 16. ?So how does one come up with successful business models?
  17. 17. 3 Themesbusiness design ongoing models thinking process
  18. 18. !"#$%&##()*&+# 1
  19. 19. ,)(()%+-%."-.&
  20. 20. Business ModelCanvas
  21. 21. to describe, challenge,design, and inventbusiness models moresystematically
  22. 22. 9 building blocks
  23. 23. CUSTOMER SEGMENTSDESCRIBING WHO A COMPANY OFFERS VALUE TO images by JAM
  24. 24. VALUE PROPOSITIONSDESCRIBING A COMPANY’S OFFER images by JAM
  25. 25. CHANNELSDESCRIBING HOW A COMPANY REACHES ITS CUSTOMERS images by JAM
  26. 26. CUSTOMER RELATIONSHIPSDESCRIBING THE RELATIONSHIPS A COMPANY BUILDS images by JAM
  27. 27. REVENUE STREAMSDESCRIBING HOW A COMPANY MAKES MONEY images by JAM
  28. 28. KEY RESOURCESDESCRIBING WHAT CAPABILITIES ARE REQUIRED images by JAM
  29. 29. KEY ACTIVITIESDESCRIBING WHAT ACTIVITIES ARE REQUIRED images by JAM
  30. 30. KEY PARTNERSTHE PARTNERS THAT LEVERAGE THE BUSINESS MODEL images by JAM
  31. 31. COST STRUCTUREDESCRIBING THE COSTS OF A BUSINESS MODEL images by JAM
  32. 32. key value customer activities proposition relationships key customerpartners segments cost revenuestructure key streams resources channels images by JAM
  33. 33. building building block block building building block buildingbuilding block block block building block building building block block build in g ng building buildi bloc k block block
  34. 34. !""#$%&()*
  35. 35. artistic feel theater & & opera visitors atmosphere stage & manage artistic circus spectacle & without lions higher ticket logistics pricesCIRQUE DU SOLEIL
  36. 36. nagestage & ma spectacle & logistics theater & opera artistic visitors circus ns without lioartistic feel & atmosphere higher ticket prices
  37. 37. *&#$.%/0$%1$%. 2
  38. 38. “ business people don’t just need to understand designers better; they need to become designers ” Roger Martin, Dean Rotman School
  39. 39. analytical intuitivethinking thinking thin king d esign
  40. 40. the desig ner’st ool k it ...
  41. 41. !"#$%&()*+#*,-$
  42. 42. analyze from the customer perspectivePARTNER KEY OFFER CUSTOMER CUSTOMERNETWORK ACTIVITIES RELATIONSHIPS SEGMENTS KEY DISTRIBUTION RESOURCES CHANNELS COST STRUCTURE REVENUE STREAMS
  43. 43. .*#"/0)$-*+1*+,
  44. 44. +&,-.)#%
  45. 45. KEY CUSTOMER ACTIVITIES RELATIONSHIPSKEY VALUE CUSTOMERPARTNERS PROPOSITIONS SEGMENTS KEY RESOURCES CHANNELSCOST REVENUE$TRUCTURE $TREAMS
  46. 46. 2(%$%$32*+,
  47. 47. “ The lack of trust to experiment with new ideas is what makes companies obsoleteover a period of time ” Roger Martin, Dean Rotman School
  48. 48. [source: Sony Pictures]
  49. 49. architecture
  50. 50. [source: Sony Pictures]
  51. 51. [source: Sony Pictures]
  52. 52. (-%-.$%.-#*&#$.%$%.222
  53. 53. !""#$%&()*
  54. 54. 34
  55. 55. +&,-.)#%
  56. 56. http://upload.wikimedia.org/wikipedia/commons/0/02/Montreux_Jazz_Festival.jpg
  57. 57. 35
  58. 58. )%.)$%.67),&## 3
  59. 59. uncertainty/patterns/insight clarity/focus research designing business model business model design to & understand prototypes be implemented89)"7,&:-*-6/&*;7)(<-($&%=&>(-%?@&%/7-+A 69
  60. 60. 3 Themesbusiness design ongoing models thinking process
  61. 61. THANK YOU! BusinessModelGeneration.com osterwalder@gmail.com yves.pigneur@unil.ch

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