Download - Corporate Entrepreneurship Workshop
TODAY’S AGENDA
Introductions/Presentation Intro to the Business Model Canvas BREAK Pitch Ideas / Form groups Begin exercise with BMC Group Presentations End of the workshop
10:00 11:00 11:20 11:40 12:00 13:00 13:30
THE MOST FAMOUS BLOGPOST OF 2015…
Something interesting is happening… – Tom Goodwin, “The Battle Is For The Customer Interface” (Tech Crunch article)
The most valuable retailer, has no inventoryALIBABA
The world’s most popular media owner, creates no contentFACEBOOK
The world’s largest accommodation provider, owns no real estateAIRBNB
The world’s largest taxi company, owns no vehiclesUBER
Companies valued at over $1 billion in 2015: Zenefits, a human resources software.
Oscar Health Insurance, insurance sector. MarkLogic, enterprise software company.
In the digital age, “unicorns” are changing and disrupting
traditional industries and businesses at a record speed.
SOURCE: research firm CB Insights
In order to stay relevant and growing in the digital age, companies have to transform or perish.
Every company is just a startup away to be put out of business.
DCF TRAP / PARMENIDE’S FALLACY
SOURCE: Innovation Killers: How Financial Tools Destroy Your Capacity to Do New Things By Clayton Christensen, Stephen Kaufman, Willy Shih
ASSUMED cash stream resulting from doing nothing
MORE LIKELY cash stream resulting from doing nothing
PROJECTED cash stream from investing in innovation
Companies should be making this comparison
DCF and NPV Methodologies implicitly make this comparison
NPV = DCF - Required investment
DCF = Discounted Cash Flow NPV = Net Present Value
AN EXAMPLE OF DOING NOTHING…
In 1975 Kodak engineer Steven Sasson invented the first digital still camera, which used a Fairchild 100 x 100 pixel CCD. By 1986 Kodak had developed a sensor with 1.4 million pixels.
DYING INDUSTRIES
SOON TO FOLLOW:
Oil and Gas Steel Manufacturing Television
Video Rentals Recordable media manufacturing Hardware manufacturing Data recovery services
A lot of young and unexperienced talent…
Timmy here, is looking to solve a personal problem, which might not be the one of your current customer.
He dreams to be the next Zuckerberg…
GREENFIELD vs CORPORATE ENTREPRENEUR
GREENFIELD ENTREPRENEURS
Ideas for a start-up usually try to solve a PERSONAL problem hoping to find an audience with a similar problem.
CORPORATE ENTREPRENEURS
Find or create opportunities, based on the corporate strategy or the company’s core business. They look to solve the problems that the company’s customers have.
Employees that can:
• Identify or create opportunities aligned with the corporate strategy
• Have an understanding of needed resources
• Provide the drive to bring an idea to life
All in the form of a business
INTERNAL ENTREPRENEURS = INTRAPRENEURS
Reason #1 Next competitive advantage from inside knowledge
Developing for the enterprise relies heavily on the insights, knowledge and experience of industry insiders. It is therefore better for companies to look inward instead of looking for outsiders.
Reason #2 Accelerate internal innovation processCorporate Entrepreneurs help accelerate the innovation process by creating new business opportunities in a neutral setting, rid of procedural complications and company politics.
Reason #3 Employee RetentionMillennials realised that starting a company, even if it crashes and burn, teaches them more in two years than sitting in a cubicle for 20 years.
Reason #1 Advance your career
Intrapreneurs like entrepreneurs take initiative and calculated risks. They’re creative and problem solvers, but most importantly, they don’t give up.
These are attributes the business world has always valued, and they are equally important today.
Reason #2 Intrapreneurship is the first step to entrepreneurship
Some 94 percent of intrapreneurs think they have the required skills and knowledge to start a firm of their own after having developed an intrapreneurial project.
Reason #3 Work on a passion project
“Working hard for something we don’t care is called stress; working hard for something we love is called passion” – Simon Sinek
GERMANY: STILL TOUGH FOR A WORKING GAL
Board Seats Held by Women, by Country
SOURCE: http://www.catalyst.org/knowledge/board-seats-held-women-country
GERMANY: STILL TOUGH FOR A WORKING GAL
“…There are only 10 women out of 135 executive committee members in the country’s top companies…
…Lufthansa is the only company in the group to have two women on its five-person ExCom, making it Germany’s only gender balanced leadership team”
SOURCE: https://hbr.org/2014/07/how-6-countries-compare-on-executive-gender-balance/
PLEASE CONSIDER THESE FACTS:
Women are better investors than the average man, according to LouAnn Lofton, author of “Warren Buffett Invests Like a Girl — And Why You Should, Too”
PLEASE CONSIDER THESE FACTS:
Companies that include more women on their executive management teams are more likely to succeed than companies with men-only executive suites, according to “Women at the Wheel: Do Female Executives Drive Start-up Success?” research conducted by Dow Jones.
VTHE SHORT ROAD: BASE CAMP / ICEFALL
IDEATE + PLAN VALIDATE UNTIL PROVEN
PROTOTYPE
PREPARE A DECK FIND A SPONSOR PRESENT!
DESIGNED FOR: DESIGNED BY: DATE: ITERATION:
Who are our Key Partners?Who are our key suppliers?Which Key Resources are we acquairing from partners?Which Key Activities do partners perform?
MOTIVATIONS FOR PARTNERSHIPS Optimization and economy Reduction of risk and uncertaintyAcquisition of particular resources and activities
What Key Activities do our Value Propositions require?Our Distribution Channels?Customer Relationships?Revenue streams?
CATEGORIES ProductionProblem SolvingPlatform/Network
For what value are our customers really willing to pay?For what do they currently pay?How are they currently paying?How would they prefer to pay?How much does each Revenue Stream contribute to overall revenues?
TYPES Asset saleUsage feeSubscription FeesLending/Renting/LeasingLicensingBrokerage feesAdvertising
FIXED PRICING List PriceProduct feature dependentCustomer segmentdependentVolume dependent
DYNAMIC PRICING Negotiation (bargaining)Yield ManagementReal-time-Market
What are the most important costs inherent in our business model?Which Key Resources are most expensive?Which Key Activities are most expensive?
IS YOUR BUSINESS MORECost Driven (leanest cost structure, low price value proposition, maximum automation, extensive outsourcing)Value Driven (focused on value creation, premium value proposition)
SAMPLE CHARACTERISTICSFixed Costs (salaries, rents, utilities)Variable costsEconomies of scaleEconomies of scope
What Key Resources do our Value Propositions require?Our Distribution Channels? Customer Relationships?Revenue Streams?
TYPES OF RESOURCES PhysicalIntellectual (brand patents, copyrights, data)HumanFinancial
Through which Channels do our Customer Segmentswant to be reached?How are we reaching them now?How are our Channels integrated?Which ones work best?Which ones are most cost-efficient?How are we integrating them with customer routines?
CHANNEL PHASESAwarenessHow do we raise awareness about our company’s products and services?EvaluationHow do we help customers evaluate our organization’s Value Proposition?PurchaseHow do we allow customers to purchase specific products and services?DeliveryHow do we deliver a Value Proposition to customers?After salesHow do we provide post-purchase customer support?
For whom are we creating value?Who are our most important customers?
Mass MarketNiche MarketSegmentedDiversifiedMulti-sided Platform
What value do we deliver to the customer?Which one of our customer’s problems are wehelping to solve?What bundles of products and services are weoffering to each Customer Segment?Which customer needs are we satisfying?
CHARACTERISTICS NewnessPerformanceCustomization“Getting the Job Done”DesignBrand/StatusPriceCost ReductionRisk ReductionAccessibilityConvenience/Usability
What type of relationship does each of ourCustomer Segments expect us to establishand maintain with them?Which ones have we established?How are they integrated with the rest of ourbusiness model?How costly are they?
EXAMPLES Personal assistanceDedicated Personal AssistanceSelf-ServiceAutomated ServicesCommunitiesCo-creation
DESIGNED FOR: DESIGNED BY: DATE: ITERATION:
Who are our Key Partners?Who are our key suppliers?Which Key Resources are we acquairing from partners?Which Key Activities do partners perform?
MOTIVATIONS FOR PARTNERSHIPS Optimization and economy Reduction of risk and uncertaintyAcquisition of particular resources and activities
What Key Activities do our Value Propositions require?Our Distribution Channels?Customer Relationships?Revenue streams?
CATEGORIES ProductionProblem SolvingPlatform/Network
For what value are our customers really willing to pay?For what do they currently pay?How are they currently paying?How would they prefer to pay?How much does each Revenue Stream contribute to overall revenues?
TYPES Asset saleUsage feeSubscription FeesLending/Renting/LeasingLicensingBrokerage feesAdvertising
FIXED PRICING List PriceProduct feature dependentCustomer segmentdependentVolume dependent
DYNAMIC PRICING Negotiation (bargaining)Yield ManagementReal-time-Market
What are the most important costs inherent in our business model?Which Key Resources are most expensive?Which Key Activities are most expensive?
IS YOUR BUSINESS MORECost Driven (leanest cost structure, low price value proposition, maximum automation, extensive outsourcing)Value Driven (focused on value creation, premium value proposition)
SAMPLE CHARACTERISTICSFixed Costs (salaries, rents, utilities)Variable costsEconomies of scaleEconomies of scope
What Key Resources do our Value Propositions require?Our Distribution Channels? Customer Relationships?Revenue Streams?
TYPES OF RESOURCES PhysicalIntellectual (brand patents, copyrights, data)HumanFinancial
Through which Channels do our Customer Segmentswant to be reached?How are we reaching them now?How are our Channels integrated?Which ones work best?Which ones are most cost-efficient?How are we integrating them with customer routines?
CHANNEL PHASESAwarenessHow do we raise awareness about our company’s products and services?EvaluationHow do we help customers evaluate our organization’s Value Proposition?PurchaseHow do we allow customers to purchase specific products and services?DeliveryHow do we deliver a Value Proposition to customers?After salesHow do we provide post-purchase customer support?
For whom are we creating value?Who are our most important customers?
Mass MarketNiche MarketSegmentedDiversifiedMulti-sided Platform
What value do we deliver to the customer?Which one of our customer’s problems are wehelping to solve?What bundles of products and services are weoffering to each Customer Segment?Which customer needs are we satisfying?
CHARACTERISTICS NewnessPerformanceCustomization“Getting the Job Done”DesignBrand/StatusPriceCost ReductionRisk ReductionAccessibilityConvenience/Usability
What type of relationship does each of ourCustomer Segments expect us to establishand maintain with them?Which ones have we established?How are they integrated with the rest of ourbusiness model?How costly are they?
EXAMPLES Personal assistanceDedicated Personal AssistanceSelf-ServiceAutomated ServicesCommunitiesCo-creation
BUSINESS PLAN
EXECUTIVE SUMMARY THE TEAM • Management Profile • Why are we a winning team THE BUSINESS MODEL • Vision • Mission / Values • How our Business Model works • Value Proposition • Target Markets • Marketing Plan • Key Resources and Activities FINANCIAL ANALYSIS • CVP Analysis • Sale Scenarios and Projections • Capital Spending • Operating Costs • Funding Requirements EXTERNAL ENVIRONMENT • The Economy • Market Analysis / Key Trends • Competitor Analysis • Competitive Advantage IMPLEMENTATION ROADMAP • Projects • Milestones • Roadmap RISK ANALYSIS • Limiting Factors and Obstacles • Critical Success Factors • Specific Risks and Countermeasures CONCLUSION ANNEXES
DESIGNED FOR: DESIGNED BY: DATE: ITERATION:
Who are our Key Partners?Who are our key suppliers?Which Key Resources are we acquairing from partners?Which Key Activities do partners perform?
MOTIVATIONS FOR PARTNERSHIPS Optimization and economy Reduction of risk and uncertaintyAcquisition of particular resources and activities
What Key Activities do our Value Propositions require?Our Distribution Channels?Customer Relationships?Revenue streams?
CATEGORIES ProductionProblem SolvingPlatform/Network
For what value are our customers really willing to pay?For what do they currently pay?How are they currently paying?How would they prefer to pay?How much does each Revenue Stream contribute to overall revenues?
TYPES Asset saleUsage feeSubscription FeesLending/Renting/LeasingLicensingBrokerage feesAdvertising
FIXED PRICING List PriceProduct feature dependentCustomer segmentdependentVolume dependent
DYNAMIC PRICING Negotiation (bargaining)Yield ManagementReal-time-Market
What are the most important costs inherent in our business model?Which Key Resources are most expensive?Which Key Activities are most expensive?
IS YOUR BUSINESS MORECost Driven (leanest cost structure, low price value proposition, maximum automation, extensive outsourcing)Value Driven (focused on value creation, premium value proposition)
SAMPLE CHARACTERISTICSFixed Costs (salaries, rents, utilities)Variable costsEconomies of scaleEconomies of scope
What Key Resources do our Value Propositions require?Our Distribution Channels? Customer Relationships?Revenue Streams?
TYPES OF RESOURCES PhysicalIntellectual (brand patents, copyrights, data)HumanFinancial
Through which Channels do our Customer Segmentswant to be reached?How are we reaching them now?How are our Channels integrated?Which ones work best?Which ones are most cost-efficient?How are we integrating them with customer routines?
CHANNEL PHASESAwarenessHow do we raise awareness about our company’s products and services?EvaluationHow do we help customers evaluate our organization’s Value Proposition?PurchaseHow do we allow customers to purchase specific products and services?DeliveryHow do we deliver a Value Proposition to customers?After salesHow do we provide post-purchase customer support?
For whom are we creating value?Who are our most important customers?
Mass MarketNiche MarketSegmentedDiversifiedMulti-sided Platform
What value do we deliver to the customer?Which one of our customer’s problems are wehelping to solve?What bundles of products and services are weoffering to each Customer Segment?Which customer needs are we satisfying?
CHARACTERISTICS NewnessPerformanceCustomization“Getting the Job Done”DesignBrand/StatusPriceCost ReductionRisk ReductionAccessibilityConvenience/Usability
What type of relationship does each of ourCustomer Segments expect us to establishand maintain with them?Which ones have we established?How are they integrated with the rest of ourbusiness model?How costly are they?
EXAMPLES Personal assistanceDedicated Personal AssistanceSelf-ServiceAutomated ServicesCommunitiesCo-creation
For whom are we creating value?Who are our most important customers?
Mass MarketNiche MarketSegmentedDiversifiedMulti-sided Platform
CUSTOMER SEGMENTS
The Customer Segments building block defines the groups of people or organisations an enterprise aims to reach and serve.
Customers comprise the heart of every business model. Without (profitable) customers, you have no business and no company can survive for long.
It’s good to group them into distance segments with common needs, common behaviours and other attributes. They represent separate segments if:
• Their needs require and justify a distance offer • They are reached through different distribution
channels • They require different types of relationships • They have different profitabilities • They are willing to pay for different parts of the offer
Alternative cheaper
conference calls for business
Students
Friends and Families
Everyone with a mobile
phone
Everyone that has a computer
People with high long distance
phone costs
Video calls
Hardware Manufacturers
DESIGNED FOR: DESIGNED BY: DATE: ITERATION:
Who are our Key Partners?Who are our key suppliers?Which Key Resources are we acquairing from partners?Which Key Activities do partners perform?
MOTIVATIONS FOR PARTNERSHIPS Optimization and economy Reduction of risk and uncertaintyAcquisition of particular resources and activities
What Key Activities do our Value Propositions require?Our Distribution Channels?Customer Relationships?Revenue streams?
CATEGORIES ProductionProblem SolvingPlatform/Network
For what value are our customers really willing to pay?For what do they currently pay?How are they currently paying?How would they prefer to pay?How much does each Revenue Stream contribute to overall revenues?
TYPES Asset saleUsage feeSubscription FeesLending/Renting/LeasingLicensingBrokerage feesAdvertising
FIXED PRICING List PriceProduct feature dependentCustomer segmentdependentVolume dependent
DYNAMIC PRICING Negotiation (bargaining)Yield ManagementReal-time-Market
What are the most important costs inherent in our business model?Which Key Resources are most expensive?Which Key Activities are most expensive?
IS YOUR BUSINESS MORECost Driven (leanest cost structure, low price value proposition, maximum automation, extensive outsourcing)Value Driven (focused on value creation, premium value proposition)
SAMPLE CHARACTERISTICSFixed Costs (salaries, rents, utilities)Variable costsEconomies of scaleEconomies of scope
What Key Resources do our Value Propositions require?Our Distribution Channels? Customer Relationships?Revenue Streams?
TYPES OF RESOURCES PhysicalIntellectual (brand patents, copyrights, data)HumanFinancial
Through which Channels do our Customer Segmentswant to be reached?How are we reaching them now?How are our Channels integrated?Which ones work best?Which ones are most cost-efficient?How are we integrating them with customer routines?
CHANNEL PHASESAwarenessHow do we raise awareness about our company’s products and services?EvaluationHow do we help customers evaluate our organization’s Value Proposition?PurchaseHow do we allow customers to purchase specific products and services?DeliveryHow do we deliver a Value Proposition to customers?After salesHow do we provide post-purchase customer support?
For whom are we creating value?Who are our most important customers?
Mass MarketNiche MarketSegmentedDiversifiedMulti-sided Platform
What value do we deliver to the customer?Which one of our customer’s problems are wehelping to solve?What bundles of products and services are weoffering to each Customer Segment?Which customer needs are we satisfying?
CHARACTERISTICS NewnessPerformanceCustomization“Getting the Job Done”DesignBrand/StatusPriceCost ReductionRisk ReductionAccessibilityConvenience/Usability
What type of relationship does each of ourCustomer Segments expect us to establishand maintain with them?Which ones have we established?How are they integrated with the rest of ourbusiness model?How costly are they?
EXAMPLES Personal assistanceDedicated Personal AssistanceSelf-ServiceAutomated ServicesCommunitiesCo-creation
What type of relationship does each of ourCustomer Segments expect us to establishand maintain with them?Which ones have we established?How are they integrated with the rest of ourbusiness model?How costly are they?
EXAMPLES Personal assistanceDedicated Personal AssistanceSelf-ServiceAutomated ServicesCommunitiesCo-creation
CUSTOMER RELATIONSHIPS
This building block describes the types of relationships a company establishes with a specific customer segments. These relationships can range from personal to automated and may be driven by the following motivations:
• Customer acquisition • Customer retention • Boosting sales (up-selling)Software
features
Community
Cheaper calling rates
Help website
DESIGNED FOR: DESIGNED BY: DATE: ITERATION:
Who are our Key Partners?Who are our key suppliers?Which Key Resources are we acquairing from partners?Which Key Activities do partners perform?
MOTIVATIONS FOR PARTNERSHIPS Optimization and economy Reduction of risk and uncertaintyAcquisition of particular resources and activities
What Key Activities do our Value Propositions require?Our Distribution Channels?Customer Relationships?Revenue streams?
CATEGORIES ProductionProblem SolvingPlatform/Network
For what value are our customers really willing to pay?For what do they currently pay?How are they currently paying?How would they prefer to pay?How much does each Revenue Stream contribute to overall revenues?
TYPES Asset saleUsage feeSubscription FeesLending/Renting/LeasingLicensingBrokerage feesAdvertising
FIXED PRICING List PriceProduct feature dependentCustomer segmentdependentVolume dependent
DYNAMIC PRICING Negotiation (bargaining)Yield ManagementReal-time-Market
What are the most important costs inherent in our business model?Which Key Resources are most expensive?Which Key Activities are most expensive?
IS YOUR BUSINESS MORECost Driven (leanest cost structure, low price value proposition, maximum automation, extensive outsourcing)Value Driven (focused on value creation, premium value proposition)
SAMPLE CHARACTERISTICSFixed Costs (salaries, rents, utilities)Variable costsEconomies of scaleEconomies of scope
What Key Resources do our Value Propositions require?Our Distribution Channels? Customer Relationships?Revenue Streams?
TYPES OF RESOURCES PhysicalIntellectual (brand patents, copyrights, data)HumanFinancial
Through which Channels do our Customer Segmentswant to be reached?How are we reaching them now?How are our Channels integrated?Which ones work best?Which ones are most cost-efficient?How are we integrating them with customer routines?
CHANNEL PHASESAwarenessHow do we raise awareness about our company’s products and services?EvaluationHow do we help customers evaluate our organization’s Value Proposition?PurchaseHow do we allow customers to purchase specific products and services?DeliveryHow do we deliver a Value Proposition to customers?After salesHow do we provide post-purchase customer support?
For whom are we creating value?Who are our most important customers?
Mass MarketNiche MarketSegmentedDiversifiedMulti-sided Platform
What value do we deliver to the customer?Which one of our customer’s problems are wehelping to solve?What bundles of products and services are weoffering to each Customer Segment?Which customer needs are we satisfying?
CHARACTERISTICS NewnessPerformanceCustomization“Getting the Job Done”DesignBrand/StatusPriceCost ReductionRisk ReductionAccessibilityConvenience/Usability
What type of relationship does each of ourCustomer Segments expect us to establishand maintain with them?Which ones have we established?How are they integrated with the rest of ourbusiness model?How costly are they?
EXAMPLES Personal assistanceDedicated Personal AssistanceSelf-ServiceAutomated ServicesCommunitiesCo-creation
CHANNELS
This building block describes how a company communicates with and reaches its Customer Segments to deliver a Value Proposition.
Channels are customer touchpoint and play an important role in the overall customer experience. They have several functions including:
• Raise awareness among a customers about a company’s
• Helping customers evaluate a company’s Value Proposition
• Deliver post-purchase customer support
Through which Channels do our Customer Segmentswant to be reached?How are we reaching them now?How are our Channels integrated?Which ones work best?Which ones are most cost-efficient?How are we integrating them with customer routines?
CHANNEL PHASESAwarenessHow do we raise awareness about our company’s products and services?EvaluationHow do we help customers evaluate our organization’s Value Proposition?PurchaseHow do we allow customers to purchase specific products and services?DeliveryHow do we deliver a Value Proposition to customers?After salesHow do we provide post-purchase customer support?
Partner Website
Headset partnerships
Website
Skype Client
DESIGNED FOR: DESIGNED BY: DATE: ITERATION:
Who are our Key Partners?Who are our key suppliers?Which Key Resources are we acquairing from partners?Which Key Activities do partners perform?
MOTIVATIONS FOR PARTNERSHIPS Optimization and economy Reduction of risk and uncertaintyAcquisition of particular resources and activities
What Key Activities do our Value Propositions require?Our Distribution Channels?Customer Relationships?Revenue streams?
CATEGORIES ProductionProblem SolvingPlatform/Network
For what value are our customers really willing to pay?For what do they currently pay?How are they currently paying?How would they prefer to pay?How much does each Revenue Stream contribute to overall revenues?
TYPES Asset saleUsage feeSubscription FeesLending/Renting/LeasingLicensingBrokerage feesAdvertising
FIXED PRICING List PriceProduct feature dependentCustomer segmentdependentVolume dependent
DYNAMIC PRICING Negotiation (bargaining)Yield ManagementReal-time-Market
What are the most important costs inherent in our business model?Which Key Resources are most expensive?Which Key Activities are most expensive?
IS YOUR BUSINESS MORECost Driven (leanest cost structure, low price value proposition, maximum automation, extensive outsourcing)Value Driven (focused on value creation, premium value proposition)
SAMPLE CHARACTERISTICSFixed Costs (salaries, rents, utilities)Variable costsEconomies of scaleEconomies of scope
What Key Resources do our Value Propositions require?Our Distribution Channels? Customer Relationships?Revenue Streams?
TYPES OF RESOURCES PhysicalIntellectual (brand patents, copyrights, data)HumanFinancial
Through which Channels do our Customer Segmentswant to be reached?How are we reaching them now?How are our Channels integrated?Which ones work best?Which ones are most cost-efficient?How are we integrating them with customer routines?
CHANNEL PHASESAwarenessHow do we raise awareness about our company’s products and services?EvaluationHow do we help customers evaluate our organization’s Value Proposition?PurchaseHow do we allow customers to purchase specific products and services?DeliveryHow do we deliver a Value Proposition to customers?After salesHow do we provide post-purchase customer support?
For whom are we creating value?Who are our most important customers?
Mass MarketNiche MarketSegmentedDiversifiedMulti-sided Platform
What value do we deliver to the customer?Which one of our customer’s problems are wehelping to solve?What bundles of products and services are weoffering to each Customer Segment?Which customer needs are we satisfying?
CHARACTERISTICS NewnessPerformanceCustomization“Getting the Job Done”DesignBrand/StatusPriceCost ReductionRisk ReductionAccessibilityConvenience/Usability
What type of relationship does each of ourCustomer Segments expect us to establishand maintain with them?Which ones have we established?How are they integrated with the rest of ourbusiness model?How costly are they?
EXAMPLES Personal assistanceDedicated Personal AssistanceSelf-ServiceAutomated ServicesCommunitiesCo-creation
VALUE PROPOSITIONS
A value proposition is a promise of value to be delivered. It's the primary reason a prospect should buy from you. explains how your product solves customers' problems or improves their situation (relevancy), delivers specific benefits (quantified value),
EXAMPLE:
What value do we deliver to the customer?Which one of our customer’s problems are wehelping to solve?What bundles of products and services are weoffering to each Customer Segment?Which customer needs are we satisfying?
CHARACTERISTICS NewnessPerformanceCustomization“Getting the Job Done”DesignBrand/StatusPriceCost ReductionRisk ReductionAccessibilityConvenience/Usability
Skype offers a simple and convenient way for people in almost every country around the world to stay in touch over the Internet through free voice and video calls, sending instant messages, SMS (text messaging) or files, and by making low-cost calls to landline and mobile numbers.
Stay in touch with your loved ones
Easy, cost effective video conferencing
Video calls
International
SMS
Instant messages
License to produce Skype
hardware
DESIGNED FOR: DESIGNED BY: DATE: ITERATION:
Who are our Key Partners?Who are our key suppliers?Which Key Resources are we acquairing from partners?Which Key Activities do partners perform?
MOTIVATIONS FOR PARTNERSHIPS Optimization and economy Reduction of risk and uncertaintyAcquisition of particular resources and activities
What Key Activities do our Value Propositions require?Our Distribution Channels?Customer Relationships?Revenue streams?
CATEGORIES ProductionProblem SolvingPlatform/Network
For what value are our customers really willing to pay?For what do they currently pay?How are they currently paying?How would they prefer to pay?How much does each Revenue Stream contribute to overall revenues?
TYPES Asset saleUsage feeSubscription FeesLending/Renting/LeasingLicensingBrokerage feesAdvertising
FIXED PRICING List PriceProduct feature dependentCustomer segmentdependentVolume dependent
DYNAMIC PRICING Negotiation (bargaining)Yield ManagementReal-time-Market
What are the most important costs inherent in our business model?Which Key Resources are most expensive?Which Key Activities are most expensive?
IS YOUR BUSINESS MORECost Driven (leanest cost structure, low price value proposition, maximum automation, extensive outsourcing)Value Driven (focused on value creation, premium value proposition)
SAMPLE CHARACTERISTICSFixed Costs (salaries, rents, utilities)Variable costsEconomies of scaleEconomies of scope
What Key Resources do our Value Propositions require?Our Distribution Channels? Customer Relationships?Revenue Streams?
TYPES OF RESOURCES PhysicalIntellectual (brand patents, copyrights, data)HumanFinancial
Through which Channels do our Customer Segmentswant to be reached?How are we reaching them now?How are our Channels integrated?Which ones work best?Which ones are most cost-efficient?How are we integrating them with customer routines?
CHANNEL PHASESAwarenessHow do we raise awareness about our company’s products and services?EvaluationHow do we help customers evaluate our organization’s Value Proposition?PurchaseHow do we allow customers to purchase specific products and services?DeliveryHow do we deliver a Value Proposition to customers?After salesHow do we provide post-purchase customer support?
For whom are we creating value?Who are our most important customers?
Mass MarketNiche MarketSegmentedDiversifiedMulti-sided Platform
What value do we deliver to the customer?Which one of our customer’s problems are wehelping to solve?What bundles of products and services are weoffering to each Customer Segment?Which customer needs are we satisfying?
CHARACTERISTICS NewnessPerformanceCustomization“Getting the Job Done”DesignBrand/StatusPriceCost ReductionRisk ReductionAccessibilityConvenience/Usability
What type of relationship does each of ourCustomer Segments expect us to establishand maintain with them?Which ones have we established?How are they integrated with the rest of ourbusiness model?How costly are they?
EXAMPLES Personal assistanceDedicated Personal AssistanceSelf-ServiceAutomated ServicesCommunitiesCo-creation
KEY ACTIVITIES
It describes the most important things a company must do to make its business model work. By doing these activities the company can operate successfully.
These activities can be categorise as follows:
• Production • Problem solving • Platform/Network
What Key Activities do our Value Propositions require?Our Distribution Channels?Customer Relationships?Revenue streams?
CATEGORIES ProductionProblem SolvingPlatform/Network
Connections with regular
phone system
Software development
Promote the brand
DESIGNED FOR: DESIGNED BY: DATE: ITERATION:
Who are our Key Partners?Who are our key suppliers?Which Key Resources are we acquairing from partners?Which Key Activities do partners perform?
MOTIVATIONS FOR PARTNERSHIPS Optimization and economy Reduction of risk and uncertaintyAcquisition of particular resources and activities
What Key Activities do our Value Propositions require?Our Distribution Channels?Customer Relationships?Revenue streams?
CATEGORIES ProductionProblem SolvingPlatform/Network
For what value are our customers really willing to pay?For what do they currently pay?How are they currently paying?How would they prefer to pay?How much does each Revenue Stream contribute to overall revenues?
TYPES Asset saleUsage feeSubscription FeesLending/Renting/LeasingLicensingBrokerage feesAdvertising
FIXED PRICING List PriceProduct feature dependentCustomer segmentdependentVolume dependent
DYNAMIC PRICING Negotiation (bargaining)Yield ManagementReal-time-Market
What are the most important costs inherent in our business model?Which Key Resources are most expensive?Which Key Activities are most expensive?
IS YOUR BUSINESS MORECost Driven (leanest cost structure, low price value proposition, maximum automation, extensive outsourcing)Value Driven (focused on value creation, premium value proposition)
SAMPLE CHARACTERISTICSFixed Costs (salaries, rents, utilities)Variable costsEconomies of scaleEconomies of scope
What Key Resources do our Value Propositions require?Our Distribution Channels? Customer Relationships?Revenue Streams?
TYPES OF RESOURCES PhysicalIntellectual (brand patents, copyrights, data)HumanFinancial
Through which Channels do our Customer Segmentswant to be reached?How are we reaching them now?How are our Channels integrated?Which ones work best?Which ones are most cost-efficient?How are we integrating them with customer routines?
CHANNEL PHASESAwarenessHow do we raise awareness about our company’s products and services?EvaluationHow do we help customers evaluate our organization’s Value Proposition?PurchaseHow do we allow customers to purchase specific products and services?DeliveryHow do we deliver a Value Proposition to customers?After salesHow do we provide post-purchase customer support?
For whom are we creating value?Who are our most important customers?
Mass MarketNiche MarketSegmentedDiversifiedMulti-sided Platform
What value do we deliver to the customer?Which one of our customer’s problems are wehelping to solve?What bundles of products and services are weoffering to each Customer Segment?Which customer needs are we satisfying?
CHARACTERISTICS NewnessPerformanceCustomization“Getting the Job Done”DesignBrand/StatusPriceCost ReductionRisk ReductionAccessibilityConvenience/Usability
What type of relationship does each of ourCustomer Segments expect us to establishand maintain with them?Which ones have we established?How are they integrated with the rest of ourbusiness model?How costly are they?
EXAMPLES Personal assistanceDedicated Personal AssistanceSelf-ServiceAutomated ServicesCommunitiesCo-creation
KEY RESOURCES
It refers to the most important assets required to make the business model work.
Key resources can be physical, financial, intellectual or human depending on the business. These resources can be owned, leased or acquired through partnership.
What Key Resources do our Value Propositions require?Our Distribution Channels? Customer Relationships?Revenue Streams?
TYPES OF RESOURCES PhysicalIntellectual (brand patents, copyrights, data)HumanFinancial
DevelopersUX Designers
Recognisable brand
Software
DESIGNED FOR: DESIGNED BY: DATE: ITERATION:
Who are our Key Partners?Who are our key suppliers?Which Key Resources are we acquairing from partners?Which Key Activities do partners perform?
MOTIVATIONS FOR PARTNERSHIPS Optimization and economy Reduction of risk and uncertaintyAcquisition of particular resources and activities
What Key Activities do our Value Propositions require?Our Distribution Channels?Customer Relationships?Revenue streams?
CATEGORIES ProductionProblem SolvingPlatform/Network
For what value are our customers really willing to pay?For what do they currently pay?How are they currently paying?How would they prefer to pay?How much does each Revenue Stream contribute to overall revenues?
TYPES Asset saleUsage feeSubscription FeesLending/Renting/LeasingLicensingBrokerage feesAdvertising
FIXED PRICING List PriceProduct feature dependentCustomer segmentdependentVolume dependent
DYNAMIC PRICING Negotiation (bargaining)Yield ManagementReal-time-Market
What are the most important costs inherent in our business model?Which Key Resources are most expensive?Which Key Activities are most expensive?
IS YOUR BUSINESS MORECost Driven (leanest cost structure, low price value proposition, maximum automation, extensive outsourcing)Value Driven (focused on value creation, premium value proposition)
SAMPLE CHARACTERISTICSFixed Costs (salaries, rents, utilities)Variable costsEconomies of scaleEconomies of scope
What Key Resources do our Value Propositions require?Our Distribution Channels? Customer Relationships?Revenue Streams?
TYPES OF RESOURCES PhysicalIntellectual (brand patents, copyrights, data)HumanFinancial
Through which Channels do our Customer Segmentswant to be reached?How are we reaching them now?How are our Channels integrated?Which ones work best?Which ones are most cost-efficient?How are we integrating them with customer routines?
CHANNEL PHASESAwarenessHow do we raise awareness about our company’s products and services?EvaluationHow do we help customers evaluate our organization’s Value Proposition?PurchaseHow do we allow customers to purchase specific products and services?DeliveryHow do we deliver a Value Proposition to customers?After salesHow do we provide post-purchase customer support?
For whom are we creating value?Who are our most important customers?
Mass MarketNiche MarketSegmentedDiversifiedMulti-sided Platform
What value do we deliver to the customer?Which one of our customer’s problems are wehelping to solve?What bundles of products and services are weoffering to each Customer Segment?Which customer needs are we satisfying?
CHARACTERISTICS NewnessPerformanceCustomization“Getting the Job Done”DesignBrand/StatusPriceCost ReductionRisk ReductionAccessibilityConvenience/Usability
What type of relationship does each of ourCustomer Segments expect us to establishand maintain with them?Which ones have we established?How are they integrated with the rest of ourbusiness model?How costly are they?
EXAMPLES Personal assistanceDedicated Personal AssistanceSelf-ServiceAutomated ServicesCommunitiesCo-creation
KEY PARTNERS
We refer to a network or suppliers and partners that make the business model work.
We can distinguish for types of partnerships:
• Strategic alliances between non-competitors • Coopetition: Strategic cooperation between
competitors • Joint ventures to develop new businesses • Buyer-supplier relationships to assure reliable
supplies
Who are our Key Partners?Who are our key suppliers?Which Key Resources are we acquairing from partners?Which Key Activities do partners perform?
MOTIVATIONS FOR PARTNERSHIPS Optimization and economy Reduction of risk and uncertaintyAcquisition of particular resources and activities
Telco partners
Payment providers
Distribution partners
Microsoft Network
DESIGNED FOR: DESIGNED BY: DATE: ITERATION:
Who are our Key Partners?Who are our key suppliers?Which Key Resources are we acquairing from partners?Which Key Activities do partners perform?
MOTIVATIONS FOR PARTNERSHIPS Optimization and economy Reduction of risk and uncertaintyAcquisition of particular resources and activities
What Key Activities do our Value Propositions require?Our Distribution Channels?Customer Relationships?Revenue streams?
CATEGORIES ProductionProblem SolvingPlatform/Network
For what value are our customers really willing to pay?For what do they currently pay?How are they currently paying?How would they prefer to pay?How much does each Revenue Stream contribute to overall revenues?
TYPES Asset saleUsage feeSubscription FeesLending/Renting/LeasingLicensingBrokerage feesAdvertising
FIXED PRICING List PriceProduct feature dependentCustomer segmentdependentVolume dependent
DYNAMIC PRICING Negotiation (bargaining)Yield ManagementReal-time-Market
What are the most important costs inherent in our business model?Which Key Resources are most expensive?Which Key Activities are most expensive?
IS YOUR BUSINESS MORECost Driven (leanest cost structure, low price value proposition, maximum automation, extensive outsourcing)Value Driven (focused on value creation, premium value proposition)
SAMPLE CHARACTERISTICSFixed Costs (salaries, rents, utilities)Variable costsEconomies of scaleEconomies of scope
What Key Resources do our Value Propositions require?Our Distribution Channels? Customer Relationships?Revenue Streams?
TYPES OF RESOURCES PhysicalIntellectual (brand patents, copyrights, data)HumanFinancial
Through which Channels do our Customer Segmentswant to be reached?How are we reaching them now?How are our Channels integrated?Which ones work best?Which ones are most cost-efficient?How are we integrating them with customer routines?
CHANNEL PHASESAwarenessHow do we raise awareness about our company’s products and services?EvaluationHow do we help customers evaluate our organization’s Value Proposition?PurchaseHow do we allow customers to purchase specific products and services?DeliveryHow do we deliver a Value Proposition to customers?After salesHow do we provide post-purchase customer support?
For whom are we creating value?Who are our most important customers?
Mass MarketNiche MarketSegmentedDiversifiedMulti-sided Platform
What value do we deliver to the customer?Which one of our customer’s problems are wehelping to solve?What bundles of products and services are weoffering to each Customer Segment?Which customer needs are we satisfying?
CHARACTERISTICS NewnessPerformanceCustomization“Getting the Job Done”DesignBrand/StatusPriceCost ReductionRisk ReductionAccessibilityConvenience/Usability
What type of relationship does each of ourCustomer Segments expect us to establishand maintain with them?Which ones have we established?How are they integrated with the rest of ourbusiness model?How costly are they?
EXAMPLES Personal assistanceDedicated Personal AssistanceSelf-ServiceAutomated ServicesCommunitiesCo-creation
COST STRUCTURE
Here all the necessary costs to operate the business are listed. Most of the time these costs can be calculated after defining the key resources, key activities and key partnerships.
There are several classes of cost structures:
• Cost-driven • Value-driven • Fixed-costs • Variable-Costs • Economies of scale • Economies of scope
What are the most important costs inherent in our business model?Which Key Resources are most expensive?Which Key Activities are most expensive?
IS YOUR BUSINESS MORECost Driven (leanest cost structure, low price value proposition, maximum automation, extensive outsourcing)Value Driven (focused on value creation, premium value proposition)
SAMPLE CHARACTERISTICSFixed Costs (salaries, rents, utilities)Variable costsEconomies of scaleEconomies of scope
Software development
MarketingPartner fees
Telecom costs
StaffCustomer
service Office Space (rent)
IT infrastructure
DESIGNED FOR: DESIGNED BY: DATE: ITERATION:
Who are our Key Partners?Who are our key suppliers?Which Key Resources are we acquairing from partners?Which Key Activities do partners perform?
MOTIVATIONS FOR PARTNERSHIPS Optimization and economy Reduction of risk and uncertaintyAcquisition of particular resources and activities
What Key Activities do our Value Propositions require?Our Distribution Channels?Customer Relationships?Revenue streams?
CATEGORIES ProductionProblem SolvingPlatform/Network
For what value are our customers really willing to pay?For what do they currently pay?How are they currently paying?How would they prefer to pay?How much does each Revenue Stream contribute to overall revenues?
TYPES Asset saleUsage feeSubscription FeesLending/Renting/LeasingLicensingBrokerage feesAdvertising
FIXED PRICING List PriceProduct feature dependentCustomer segmentdependentVolume dependent
DYNAMIC PRICING Negotiation (bargaining)Yield ManagementReal-time-Market
What are the most important costs inherent in our business model?Which Key Resources are most expensive?Which Key Activities are most expensive?
IS YOUR BUSINESS MORECost Driven (leanest cost structure, low price value proposition, maximum automation, extensive outsourcing)Value Driven (focused on value creation, premium value proposition)
SAMPLE CHARACTERISTICSFixed Costs (salaries, rents, utilities)Variable costsEconomies of scaleEconomies of scope
What Key Resources do our Value Propositions require?Our Distribution Channels? Customer Relationships?Revenue Streams?
TYPES OF RESOURCES PhysicalIntellectual (brand patents, copyrights, data)HumanFinancial
Through which Channels do our Customer Segmentswant to be reached?How are we reaching them now?How are our Channels integrated?Which ones work best?Which ones are most cost-efficient?How are we integrating them with customer routines?
CHANNEL PHASESAwarenessHow do we raise awareness about our company’s products and services?EvaluationHow do we help customers evaluate our organization’s Value Proposition?PurchaseHow do we allow customers to purchase specific products and services?DeliveryHow do we deliver a Value Proposition to customers?After salesHow do we provide post-purchase customer support?
For whom are we creating value?Who are our most important customers?
Mass MarketNiche MarketSegmentedDiversifiedMulti-sided Platform
What value do we deliver to the customer?Which one of our customer’s problems are wehelping to solve?What bundles of products and services are weoffering to each Customer Segment?Which customer needs are we satisfying?
CHARACTERISTICS NewnessPerformanceCustomization“Getting the Job Done”DesignBrand/StatusPriceCost ReductionRisk ReductionAccessibilityConvenience/Usability
What type of relationship does each of ourCustomer Segments expect us to establishand maintain with them?Which ones have we established?How are they integrated with the rest of ourbusiness model?How costly are they?
EXAMPLES Personal assistanceDedicated Personal AssistanceSelf-ServiceAutomated ServicesCommunitiesCo-creation
REVENUE STREAMS
This building block describes how a company Makes money and create value. It represents the cash a company generates from each Customer Segment.
A company must ask itself, for what value is each Customer Segment willing to pay? Answering that question successfully allows the company to generate one or more Revenue Streams from each Customer Segment.
For what value are our customers really willing to pay?For what do they currently pay?How are they currently paying?How would they prefer to pay?How much does each Revenue Stream contribute to overall revenues?
TYPES Asset saleUsage feeSubscription FeesLending/Renting/LeasingLicensingBrokerage feesAdvertising
FIXED PRICING List PriceProduct feature dependentCustomer segmentdependentVolume dependent
DYNAMIC PRICING Negotiation (bargaining)Yield ManagementReal-time-Market
Pay-as-you-go for Business
Pre-paid or subscription
calls to regular phones
Free basic account
Skype hardware
DESIGNED FOR: DESIGNED BY: DATE: ITERATION:
Who are our Key Partners?Who are our key suppliers?Which Key Resources are we acquairing from partners?Which Key Activities do partners perform?
MOTIVATIONS FOR PARTNERSHIPS Optimization and economy Reduction of risk and uncertaintyAcquisition of particular resources and activities
What Key Activities do our Value Propositions require?Our Distribution Channels?Customer Relationships?Revenue streams?
CATEGORIES ProductionProblem SolvingPlatform/Network
For what value are our customers really willing to pay?For what do they currently pay?How are they currently paying?How would they prefer to pay?How much does each Revenue Stream contribute to overall revenues?
TYPES Asset saleUsage feeSubscription FeesLending/Renting/LeasingLicensingBrokerage feesAdvertising
FIXED PRICING List PriceProduct feature dependentCustomer segmentdependentVolume dependent
DYNAMIC PRICING Negotiation (bargaining)Yield ManagementReal-time-Market
What are the most important costs inherent in our business model?Which Key Resources are most expensive?Which Key Activities are most expensive?
IS YOUR BUSINESS MORECost Driven (leanest cost structure, low price value proposition, maximum automation, extensive outsourcing)Value Driven (focused on value creation, premium value proposition)
SAMPLE CHARACTERISTICSFixed Costs (salaries, rents, utilities)Variable costsEconomies of scaleEconomies of scope
What Key Resources do our Value Propositions require?Our Distribution Channels? Customer Relationships?Revenue Streams?
TYPES OF RESOURCES PhysicalIntellectual (brand patents, copyrights, data)HumanFinancial
Through which Channels do our Customer Segmentswant to be reached?How are we reaching them now?How are our Channels integrated?Which ones work best?Which ones are most cost-efficient?How are we integrating them with customer routines?
CHANNEL PHASESAwarenessHow do we raise awareness about our company’s products and services?EvaluationHow do we help customers evaluate our organization’s Value Proposition?PurchaseHow do we allow customers to purchase specific products and services?DeliveryHow do we deliver a Value Proposition to customers?After salesHow do we provide post-purchase customer support?
For whom are we creating value?Who are our most important customers?
Mass MarketNiche MarketSegmentedDiversifiedMulti-sided Platform
What value do we deliver to the customer?Which one of our customer’s problems are wehelping to solve?What bundles of products and services are weoffering to each Customer Segment?Which customer needs are we satisfying?
CHARACTERISTICS NewnessPerformanceCustomization“Getting the Job Done”DesignBrand/StatusPriceCost ReductionRisk ReductionAccessibilityConvenience/Usability
What type of relationship does each of ourCustomer Segments expect us to establishand maintain with them?Which ones have we established?How are they integrated with the rest of ourbusiness model?How costly are they?
EXAMPLES Personal assistanceDedicated Personal AssistanceSelf-ServiceAutomated ServicesCommunitiesCo-creation
Pay-as-you-go for Business
Pre-paid or subscription
calls to regular phones
Free basic account
Skype hardware
Software development
MarketingPartner fees
Telecom costs
StaffCustomer
service Office Space (rent)
IT infrastructure
Telco partners
Payment providers
Microsoft Network
Distribution partners
DevelopersUX
Designers
Recognisable brand
Software
Software development
Promote the brand
Connections with regular
phone system
Stay in touch
with your loved ones
Easy, cost effective video conferencing
Video calls
International
SMS
Instant messages
License to produce Skype
hardware
Partner Website Headset
partnerships
Website
Skype Client
Software features
Community
Cheaper calling rates
Help website
Students
Friends and
Families
Everyone with a mobile phone
Everyone that has a computer
People with high long distance phone costs
Video calls
Alternative cheaper
conference calls for business
GREENFIELD vs CORPORATE ENTREPRENEUR
GREENFIELD ENTREPRENEURS
Ideas for a start-up usually try to solve a PERSONAL problem hoping to find an audience with a similar problem.
CORPORATE ENTREPRENEURS
Find or create opportunities, based on the corporate strategy or the company’s core business. They look to solve the problems that the company’s customers have.
BRAINS & HEARTS | Holzstrasse 30, 80469 Munich | +49 (0)89 461-34 47-0 | [email protected]