aotrueventures 110721122749-phpapp01 (1)
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TRANSCRIPT
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DESIGNING & TESTING BUSINESS MODELSAlexOsterwalder.com@business_design
SteveBlank.com@sgblank
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?where do I come from, what do I do?
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:-)my workplace
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:-)my current MVP
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proj
ect:
scre
en:
date
: au
thor
:
iPad stencil, actual scale, template by hortis, le studio. Feb. 2010. http://hortis.lestudio.ch
BusinessModelGeneration.com/toolbox
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BusinessModelGeneration.com SteveBlank.com/books.html
+
this workshop day combines two global bestsellers
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Swiss Time Machine
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1958
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[sources: Henry Chesbrough, photo: life.com]
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[sources: Henry Chesbrough, photo: xerox.com]
revenue growth of 41% compounded for the next 20 years
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Swiss Time Machine
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2009
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BusinessModelGeneration.com
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1,000,000new book titles were
published in the U.S. in ʼ10
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11,000new business books
appear every year
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12%decline of sales in major
bookstore chains (ʻ07-ʼ09)
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?so what did we do?
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we changed the product...
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?would a big publishing house have taken us on
with this book?
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No!
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we changed the business model...
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you canʼt write about business model innovation without an innovative business model
“”
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$24.-
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$36.-
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$54.-
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$81.-
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$250.-
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Results
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in the top 10 of softcover business books in the US#
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170ʼ000+ English #bmgen copies in print (June 2011)#
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18 #bmgen translations upcoming in 2011#
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more importantly...
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business models enable (new) products and technologies and
help solve (entirely new) customer
problems
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the 100 Million dollar
question
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how do you search for the right business model?
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understanding business models1
2 prototyping alternatives of “what could be”
3 evaluating your business model design
testing business models with customer development4
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but hey, what is a business
model anyways?
1
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?whatʼs a business model?
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? ?
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Business Model Canvas
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to describe, challenge, design, and invent business models more systematically
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building blocks 9
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CUSTOMER SEGMENTS
images by JAM
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VALUE PROPOSITIONS
images by JAM
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CHANNELS
images by JAM
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CUSTOMER RELATIONSHIPS
images by JAM
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REVENUE STREAMS
images by JAM
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KEY RESOURCES
images by JAM
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KEY ACTIVITIES
images by JAM
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KEY PARTNERS
images by JAM
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COST STRUCTURE
images by JAM
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images by JAM
customer segments
key partners
cost structure
revenue streams
channels
customer relationships
key activities
key resources
value proposition
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KEYPARTNERS
COST STRUCTURE
KEYACTIVITIES
KEYRESOURCES
OFFER
CHANNELS
CUSTOMER RELATIONSHIPS
CUSTOMERSEGMENTS
REVENUE STREAMS
buildingblock
buildingblock
buildingblock
buildingblockbuilding
block
building
block
buildingblock
buildingblock
buildingblock
buildingblock
buildingblock
buildingblock
The Business Model Canvas
images by JAM
customer segments
key partners
cost structure
revenue streams
channels
customer relationships
key activities
key resources
value proposition
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BusinessModelGeneration.com/canvas
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illustration
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how much less or more do the Swiss pay per gram of coffee consumed at home
compared to a decade ago?
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600% to 800% more
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Nespresso changed the
business model for espresso
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RESULTS
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own recycling
containers
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one of the fastest-growing businesses in
the Nestlé group
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average growth of 30% p.a. since 2000
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global sales of3.8+ billion USD
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KEYPARTNERS
ValueProposition
CHANNELS
CUSTOMER RELATIONSHIPS
CUSTOMERSEGMENTS
REVENUE STREAMSCOST STRUCTURE
KEYACTIVITIES
KEYRESOURCES
Nespresso’s business Model
households (espresso fans)
**** retail
outlets
sales of Nespresso
pods
mailorder
Nespresso stores
NespressoClub
coffee machine
manufacturers businesses
sales of Nespresso machines
Nespressopods
patents
marketing
pod production
B2Cdistribution
production
callcenter
Nespresso.com
*** Nespresso machines
marketing
B2Cdistribution
distribution channelscoffee
coffeegrowers
pod production facilities
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but Nespresso almost failed in 1987 due to a nonperforming
business model
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KEYPARTNERS
ValueProposition
CHANNELS
CUSTOMER RELATIONSHIPS
CUSTOMERSEGMENTS
REVENUE STREAMSCOST STRUCTURE
KEYACTIVITIES
KEYRESOURCES
Nespresso’s 1987 Model
officesNespressosystem
joint venture with machine manufacturer
machine manufacturer
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now Nestlé is building a portfolio of business models
in their coffee business
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BusinessModelGeneration.com/canvas
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prototype alternatives
and ask yourself what
could be2
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?letʼs take some time to work on a really, really big
issue in the world?
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access to proper
sanitation
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2.6 billion people lack
access
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4 out of 10 people in the world lack even the most simple latrine to perform
their needs
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* single-use toilet bag* self-sanitizing* biodegradable* turns into fertilizer
* low production cost* (mainly) targeted at poor people
* people already pay for sanitation
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KEYPARTNERS
COST STRUCTURE
KEYACTIVITIES
KEYRESOURCES
OFFER
CHANNELS
CUSTOMER RELATIONSHIPS
CUSTOMERSEGMENTS
REVENUE STREAMS
The Business Model Canvas
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mini brainstorming session
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come up with as many business model ideas as possible for the Peepoo bag (not full Canvases)
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* single-use toilet bag* self-sanitizing* biodegradable* turns into fertilizer
* low production cost* (mainly) targeted at poor people
* people already pay for sanitation
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make rough prototypes of the
different alternatives to analyze, evaluate and compare them
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[source: Sony Pictures]
Frank Gehry
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[source: Sony Pictures]
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[source: Sony Pictures]
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[source: Wikimedia Commons]
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?what does that have to do with business models and
my organization?
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no architect would build something that
resembles his first sketch
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?what does that mean for us?
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BusinessModelGeneration.com
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business model prototyping
napkin sketch Canvas business case field test
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prototyping is the conversation you have with your ideas
“”Tom Wujec
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evaluate your
business model design
3
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buildingblock
buildingblock
buildingblock
building blockbuildingblock
buildingblock
buildingblock
buildingblock
buildingblock
buildingblock
buildingblock
buildingblock
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SWITCHING COSTS
How easy or difficult is it for customers to switch to another company?
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with this amazing device
you can have thousand songs in a pocket
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...and you’r screwing us because it has just
become more difficult to switch devices
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RECURRING REVENUES
Is every sales a new effort or will it result in follow-‐up revenues and purchases? How evenly distributed are your revenues through the year?
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EARN BEFORE YOU PAY
Are you earning money before you are spending it?
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GAME CHANGING COST STRUCTURE
Is your cost structure substanSally different and beTer than those of compeStors?
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phone calls will be totally free in the future
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GETTING OTHERS TO DO THE WORK
How much does your business model get customers or third parSes to create value for you?
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go ahead and share on your facebook
page...
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...that will make my plaWorm more valuable...
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...and raise my plaWorm’s
value(aSon)...
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SCALABILITY
How rapidly and how easily can you grow your business model without hi[ng roadblocks (e.g. infrastructure, customer support, etc.)?
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VIRALITY/NETWORK EFFECT
How viral is your business model? How substanSal are the benefits to share with others?
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PROTECTION FROM COMPETITION
How much is your business model protecSng you from compeSSon?
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a product/technology focus is
just not enough anymore
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break-out session
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BusinessModelGeneration.com/canvas
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KEYPARTNERS
COST STRUCTURE
KEYACTIVITIES
KEYRESOURCES
OFFER
CHANNELS
CUSTOMER RELATIONSHIPS
CUSTOMERSEGMENTS
REVENUE STREAMS
The Business Model Canvas
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testing business
models with customer
development4
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a business model might look great on paper...
buildingblock
buildingblock
buildingblock
building blockbuildingblock
buildingblock
buildingblock
buildingblock
buildingblock
buildingblock
buildingblock
buildingblock
.. but after all it is only a...
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guess guess
guess
guessguess
guess
guess
guess
guess
guess
guess
guess
... a set of hypotheses
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StevenBlank.com/books.html
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THANK YOU!BusinessModelGeneration.com
AlexOsterwalder.com / @business_design BusinessModelAlchemist.com
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proj
ect:
scre
en:
date
: au
thor
:
iPad stencil, actual scale, template by hortis, le studio. Feb. 2010. http://hortis.lestudio.ch
BusinessModelGeneration.com/toolbox