business model innovation space
DESCRIPTION
Business Model Innovation Space. Innovation Space Task :. Develop a business model that will make the Innovation Space profitable and sustainable. Table of Contents. Business Model Walk Through 9 Building Blocks of Business Model s Building Block Comparison Funding Options Explored. - PowerPoint PPT PresentationTRANSCRIPT
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Business ModelInnovation Space
• Innovation Space– Task:
Develop a business model that will make the Innovation Space profitable and sustainable
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Table of Contents
1. Business Model Walk Through2. 9 Building Blocks of Business Models3. Building Block Comparison4. Funding Options Explored
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Brief Walkthrough of Models
Empirical Example
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Business Models Overview
• Time-Use– Pay for time used
• Library– Pay membership fee– Pay overage or late fees
• Revenue Sharing– No usage charges– Returns are based on
productivity of designs
*** The majority of the 9 Building Blocks are very similar for each business model, however, the main differences are highlighted
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How would the Innovation Space business work?1.)
Cart…Meet John…
… John is interested in making the cart he learned about during his iSPACES class
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Business Model Walkthrough2.)
Unfortunately, John doesn’t have the necessary tools to build the cart…
… but WAIT!
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Business Model Walkthrough3.)
John realizes that the Innovation Space has all those materials!
… so off he goes!
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Choose your business model…
Rolls Royce Model Library Model Revenue Sharing ModelTime-Use Model
We took time in choosing three business model options that we will attempt to validate during a trip to Tanzania.Try them out by clicking the respective images to start!
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Walkthrough: Time-Use4.)
John arrives at the Innovation Space and now he must sign in to indicate he is using the equipment…
… once signed in, John is free to use any of the equipment available!
JOHN•Tools-Hammer- Etc.•Space- A1
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Walkthrough: Time-Use5.)
Although John has all the basic materials to build a cart, he needs a Universal Connector to bind all his materials together
… so John pays the Innovation Space Operator for a number of Universal Connectors that are uniquely offered that the Innovation Space.
$$$
***To learn more about the Universal Connector, visit THIS PAGE***
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Walkthrough: Time-Use6.)
John uses the equipment and workshop area provided by the Innovation Space to create his cart!
… now he makes his way toward the check-out counter to sign out.
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Walkthrough: Time-Use7.)
Back at the check-out counter, John signs out, indicating that he is finished with the space he occupied and the tools he used…
… now for the payment
JOHN•Tools-Hammer- Etc.•Space- A1
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Walkthrough: Time-Use8.)
John now pays the Innovation Space Operator a fee for the time he spent using certain tools and space
… the Innovation Space Operator collects the fee with hopes of making a profit or investing that money back into the Innovation Space itself!
$$$
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Summary:What was the value exchange?
•John gets access to valuable resources which eventually leads to him walking home with a cart that he can use or sell
•The Innovation Space gets money in exchange for the universal connectors sold to John, as well as the fees he paid for the time he spent in the Innovation Space
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Try business model other options…?
Click below to go back to the options page to try out the
other models
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Walkthrough: Library Model4.)
John arrives at the Innovation Space and now he must pay his upfront membership fee to the Innovation Space Operator…
… once he’s paid, John is free to use any of the equipment available!
$$$
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Walkthrough: Library Model5.)
Although John has all the basic materials to build a cart, he needs a Universal Connector to bind all his materials together
… so John pays the Innovation Space Operator for a number of Universal Connectors that are uniquely offered that the Innovation Space.
$$$
***To learn more about the Universal Connector, visit THIS PAGE***
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Walkthrough: Library Model6.)
John uses the equipment and workshop area provided by the Innovation Space to create his cart!
… because John is a member he is free to keep working or to take his cart and head home!
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What was the value exchange?
•John gets access to valuable resources which eventually leads to him walking home with a cart that he can use or sell
•The Innovation Space gets money in exchange for the universal connectors sold to John, as well as the periodic membership fee that John will have to pay to keep using the Innovation Space
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Try business model other options…?
Click below to go back to the options page to try out the
other models
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Walkthrough: Revenue Share Model4.)
John arrives at the Innovation Space and signs up to become a member. However, unlike the Library Model, John does not pay a fee…
… once he’s signed up, John is free to use any of the equipment available!
$$$
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5.)Although John has all the basic materials to build a cart, he needs a Universal Connector to bind all his materials together
… so John pays the Innovation Space Operator for a number of Universal Connectors that are uniquely offered that the Innovation Space.
$$$
***To learn more about the Universal Connector, visit THIS PAGE***
Walkthrough: Revenue Share Model
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Walkthrough: Revenue Share Model6.)
John uses the equipment and workshop area provided by the Innovation Space to create his cart!
… now John needs to use the cart to pay back the Innovation Space for access to the tools and work area
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Walkthrough: Revenue Share Model7.)
John has two primary ways to make money from the cart:1. He can sell the cart2. He can make money from the use of the cart
… after John receives the money from the sale or use of his cart he then returns some of the funds to the Innovation Space
$$$
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•John gets access to valuable resources which eventually leads to him walking home with a cart that he can use or sell
•The Innovation Space gets money in exchange for the universal connectors sold to John, as well as the returns he will pay back to the Innovation Space based on what he does with his project
Summary:What was the value exchange?
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Try business model other options…?
Click below to go back to the options page to try out the
other models
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Outline9 Building Blocks of Business Model(s)
iSPACES
Continue with Slideshow to view:
OrClick below to return to
Business Model Walkthroughs
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#1
***Click the # next to any heading to jump to a comparison slide for that business model block***
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#2
***Click the # next to any heading to jump to a comparison slide for that business model block***
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#3
***Click the # next to any heading to jump to a comparison slide for that business model block***
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#4
***Click the # next to any heading to jump to a comparison slide for that business model block***
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#5
***Click the # next to any heading to jump to a comparison slide for that business model block***
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#6
***Click the # next to any heading to jump to a comparison slide for that business model block***
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#7
***Click the # next to any heading to jump to a comparison slide for that business model block***
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#8
***Click the # next to any heading to jump to a comparison slide for that business model block***
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#9
***Click the # next to any heading to jump to a comparison slide for that business model block***
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Model Comparison
Comparing the 9 Building Blocks of the Business Model(s)
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Customer Segments
Time-Use Model
• Any Local interested in:– Building things for
themselves– Creating guides to build
things– Providing information
about location and specs of materials
– Possibly someone who is willing to build something for another person
• Specific Users:– Students of Tumaini– Community Members– People traveling through
who need info about local materials
Library Model Revenue Sharing Model
• Any Local interested in:– Building things for
themselves– Creating guides to build
things– Providing information about
location and specs of materials
– Possibly someone who is willing to build something for another person
• Specific Users:– Students of Tumaini– Community Members
• Any Local interested in:– Building things for
themselves– Creating guides to
build things– Providing information
about location and specs of materials
– Possibly someone who is willing to build something for another person
• Specific Users:– Students of Tumaini– Community Members
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Value Propositions
• Students– Entrepreneurial
Opportunity– Hands-on Education
• Users of Innovation Space– Members only place to do
work– Access to:
• Materials• Building guides• Building ideas
• Innovation Space Champion– Job– Business Expansion
• Local Material Shops– Marketing and direction
toward their store
• Students– Entrepreneurial
Opportunity– Hands-on Education
• Users of Innovation Space– Free place to do work– Access to:
• Materials• Building guides• Building ideas
• Innovation Space Champion– Job– Business Expansion
• Local Material Shops– Marketing and direction
toward their store
Rolls Royce Model Library Model Revenue Sharing Model
• Students– Entrepreneurial
Opportunity– Hands-on Education
• Users of Innovation Space– Place to do work– Access to:
• Materials• Building guides• Building ideas
• Innovation Space Champion– Job– Business Expansion
• Local Material Shops– Marketing and direction
toward their store
Time-Use Model
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Channels
• Materials for:– Innovation Space
construction– Construction of cases
projects• Building Guides
– Provided through Cases & input from local users
• Material Location Information– Provided by users of
the innovation space as a crowdsourced knowledge
• Materials for:– Innovation Space
construction– Construction of cases
projects• Building Guides
– Provided through Cases & input from local users
• Material Location Information– Provided by users of
the innovation space as a crowdsourced knowledge
• Materials for:– Innovation Space
construction– Construction of cases
projects• Building Guides
– Provided through Cases & input from local users
• Material Location Information– Provided by users of the
innovation space as a crowdsourced knowledge
• Returns from projects– Items excluding capital
that the finished projects create
Rolls Royce Model Library Model Revenue Sharing ModelTime-Use Model
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Customer Relationships
• Teachers Students– Personal Assistance– Mutual Learning
• I.S. Champion– Personal Assistance
• Could be replaced by automated service
• Students/I.S. Users– Self-service + User
Community
• Teachers Students– Personal Assistance– Mutual Learning
• I.S. Champion– Personal Assistance
• Could be replaced by automated service
• Students/I.S. Users– Self-service + User
Community
• Teachers Students– Personal Assistance– Mutual Learning
• I.S. Champion– Personal Assistance
• Could be replaced by automated service
• Students/I.S. Users– Self-service + User
Community• User I.S.
– Users need to have trust in the system, strong ties to other users to keep revenue returns flowing
Rolls Royce Model Library Model Revenue Sharing ModelTime-Use Model
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Revenue Streams
• Innovation Space– Charge for time
use of:• Tools• Spaces• Building Guides• Local Materials
List
• Innovation Space– Charge periodic
membership fee– Free use of:
• Tools• Spaces• Building Guides• Local Materials
List
• Innovation Space– No usage or
membership fee– Users share profits
of the items made in the Innovation Space• Examples of returns:
– Crop from Greenhouse
– Battery Charge from windmill
– Basic Capital– Etc.
Rolls Royce Model Library Model Revenue Sharing ModelTime-Use Model
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Key Resources
Pre-Construction• Materials for I.S.
– Need info from I.S. team
Post-Construction• Champion to manage I.S.• Information from
builders– Building Guides
• Edits to guides– Where to find materials
in community• Specs of material
(get as specific as possible with info)
Pre-Construction• Materials for I.S.
– Need info from I.S. team
Post-Construction• Champion to manage I.S.• Information from
builders– Building Guides
• Edits to guides– Where to find materials
in community• Specs of material
(get as specific as possible with info)
Pre-Construction• Materials for I.S.
– Need info from I.S. team
Post-Construction• Champion to manage I.S.• Information from builders
– Building Guides• Edits to guides
– Where to find materials in community• Specs of material (get as
specific as possible with info)
• Appropriate Mix of Cash and products being exchanged– Too little cash may destroy the
model
Rolls Royce Model Library Model Revenue Sharing Model
*** Refer to Innovation Space Materials list for more detail
Time-Use Model
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Key Activities
Must Have:• Useable workspaces
& tools to keep locals spending time in I.S.– The more time spent
in the space the better the business fairs
• Working building guides– Without accurate
building guides, an entire time revenue stream is gone
Must Have:• Useable workspaces &
tools to provide incentive for locals to pay membership fee– The more time spent in
the space the more likely user are to renew membership
• Working building guides– Without accurate
building guides users are far less likely to find value in the entirety of the Innovation Space
Must Have:• Useable workspaces to
keep locals spending time in I.S.– The more time spent in
the space the better the business fairs
• Working building guides– Without accurate building
guides, an entire time revenue stream is gone
• Trust in the system– Believe that others will
follow rules of revenue sharing to keep Innovation Space running
Rolls Royce Model Library Model Revenue Sharing ModelTime-Use Model
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Key Partners
• Innovation Space Champion– Manage and potentially
expand the space• Tumaini University
– Provide strong connection between the curriculum to be implemented and the space
• Local University students– Serve as ambassadors for the
space by displaying the potential successes of the program & innovation space
• Local stores which provide building materials– Direct locals to Innovation
Space a reciprocity due to the increased business the store may gain from the space
• Innovation Space Champion– Manage and potentially
expand the space• Tumaini University
– Provide strong connection between the curriculum to be implemented and the space
• Local University students– Serve as ambassadors for the
space by displaying the potential successes of the program & innovation space
• Local stores which provide building materials– Direct locals to Innovation
Space a reciprocity due to the increased business the store may gain from the space
• Innovation Space Champion– Manage and potentially expand
the space• Tumaini University
– Provide strong connection between the curriculum to be implemented and the space
• Local University students– Serve as ambassadors for the
space by displaying the potential successes of the program & innovation space
• Local stores which provide building materials– Direct locals to Innovation Space
a reciprocity due to the increased business the store may gain from the space
• Innovation Space Users– Space must provide enough of a
benefit to keep the user coming back for access
Library Model Revenue Sharing ModelTime-Use Model
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Cost Structure
• Fixed– Initial cost of
Innovation Space• Variable
– Little cost aside from physical upkeep
– Costs may include:• Additional Tools• Universal
Connectors• Payment for I.S.
Champion• Rental Fees• Etc.
• Fixed– Initial cost of
Innovation Space• Variable
– Little cost aside from physical upkeep
– Costs may include:• Additional Tools• Universal
Connectors• Payment for I.S.
Champion• Rental Fees• Etc.
• Fixed– Initial cost of
Innovation Space• Variable
– Little cost aside from physical upkeep
– Costs may include:• Additional Tools• Universal
Connectors• Payment for I.S.
Champion• Rental Fees• Etc.
Library Model Revenue Sharing ModelTime-Use Model
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Funding Options Explored
Funding
***We are currently not seeking to use the following sources as funding for iSPACES. However, they were considered during the initial brainstorming process***
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What is Crowdfunding?• Accessing the collective funding power of a passionate and active
funding community• Through many small investments, any venture can become
funded as long as the venture has a compelling story and access to an audience of investors
• There are currently many websites which help with crowdfunding,. Most are focused on art, theater, and technology, but there are a number interested in global social ventures as well
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Crowdfunding MethodsDefinitions
• Direct ownership of the enterprise is allowed.
• This model is very difficult due to financial regulations, some of the first equity based platforms have come to market.
• They enable direct investment and returns from investor to startup
• In many ways an equity model is the best model with regard to aligning investor and entrepreneur’s interests
• No ownership developed
• There is a previous agreement set where an investor receives a non-equity perk for investing– Example:
• Usually a protoype• Project specific
item, like a handwritten card or video
• Credit: Often done in film funding
• The investor transfers money to a bank that delivers micro-loans
• No equity is maintained, however, the entrepreneur has the obligation to pay back the loan
• After the bank receives the principal plus interest the intial loan is paid back to the investor
• This model is typically used to fund individuals who form small groups for the purpose of social capital
Equity Funding Incentive Funding Microfinancing
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Crowdfunding MethodsExamples
• There are currently no functioning equity crowdfunding ventures active. However, crowdcube is attempting to do this in the near future.
LoveHerCover• Incentives Offered
– “If you invest anything, you'll get a beautiful thank you video from one of the girls you're helping in Liberia.”
– “And If you invest $100 or more, you'll get one of the first 200 laptop slip covers + the thank you video.”
Abunzubumwe Rusizi Group• Theogene Sibomana is a rice
farmer and the leader of the group Abunzubumwe. He is going to use his loan to buy fertilizer and to pay for labor for his rice-growing business. He would like to become a modern farmer in the Rusizi district and to educate his children well.
• They are seeking $4,075, of which $2,325 has already been funded
Equity Funding Incentive Funding Microfinancing