Business Model Process Canvas vs. Business Model Brain for Nespresso: What's Your Favorite Tool for...

Problem

Learn

Cost Structure (C$)

The Business Model Brain A Gameboard for Con.nuous Problem Solving, Improvement, Innova.on, and Learning Using

The 5 Problem Solving Ac3vi3es of Problem, Plan, Build, Measure, and Learn

Key Partners (KP)

Key Resources (KR)

Key Ac<vi<es (KA)

Revenue Streams (R$)

Value Proposi<on (VP: Product/Service)

Customer Segment (CS)

Channel (CH)

Customer Rela<onships (CR)

Right Brain

LeA Brain

Measure Build

Plan

Copyright 2013. Dr. Rod King. [email protected] & hIp://businessmodels.ning.com & hIp://twiIer.com/RodKuhnKing

5 Steps for Solving Any Business Model Problem Accelerate ConMnuous Problem Solving, Improvement, InnovaMon, and Learning

PROBLEM: Observe, document, model, and validate exisMng (“as is”) problems/moMvaMons/ performance of organizaMon’s and/or compeMtor’s 3Cs (Customers/Channels/Customer RelaMonships) as well as Non-‐customers

PLAN: Generate ideas and goals for an acMon (“to be”) plan/Value ProposiMon/Targeted Customer’s Job-‐To-‐Be-‐Done (JTBD)/Outcome. Select best idea

BUILD: Build Prototype (Minimum Version) of the Product/Service as well as 3Ks (Key Partnerships, Key Resources, and Key AcMviMes) for achieving Value ProposiMon

MEASURE: Assess customer experience as well as impacts of the prototype on key metrics such as for Cost (Structure), Revenue (Streams), and/or markeMng funnel

LEARN: Document insights and lessons learned as well as emergent problems and opportuniMes. Repeat steps 1-‐5 un.l problems are solved or have insignificant trade-‐offs


1

2

3

4

5

Most Organiza<ons

Especially Startup Businesses

Fail

Because

They Cannot EffecMvely IdenMfy and Solve

Their Marke<ng & Sales (MS) Problem

Before The OrganizaMon Runs Out of Resources

Such as Time and Money

The Business Model Brain

Is

A One-‐Page Marke<ng & Sales (MS) Dashboard

For

HolisMcally, ScienMfically, and IteraMvely Solving

The Marke<ng & Sales (MS) Problem

Especially for

Businesses OperaMng Under CondiMons of

Great Uncertainty

The Vital Purpose of a (Startup) Business Is

To Itera<vely Build A Scalable Marke<ng & Sales

(MS) Organiza<on

That Solves Customers’ Problems Using

Insanely Great Products, Services, and Customer Experiences

Learn

Business Model Brain for Nespresso How Nespresso ConMnuously Solves its MarkeMng & Sales (MS) Problem

Key Resources (KR) Problem Customer Segment (CS) Households; Offices: Low quality coffee

Channel (CH) Retail (Machines Only); Nespresso.com; Nespresso BouMques; Mail Order; Call Center

Customer Rela<onships (CR) Nespresso Club; Salesforce


Plan

Best Quality Coffee at Home/in Office (Nespresso Coffee Machine/Pods)

Key Partners (KP)

Build

Coffee Machine Manuf.

Patents/IP; Brand; Plant

•  Sale of Coffee Machine •  Sale of Pods/Capsules •  Sale of Other Machine

Accessories

Revenue Streams (R$) Key Ac<vi<es (KA) ProducMon; MarkeMng; DistribuMon/LogisMcs


Deliver Value

Create Value

Measure

•  Supplies/Inputs •  Employees/IP •  Manufacturing/Prodn •  MarkeMng/Distrib.

Cost Structure (C$)

(-‐) (+)

Business Model Process (BMP) Canvas for Nespresso: Nodes or Discrete Building Blocks


Customer Segment (CS) Households; Offices: Low quality coffee





Key Partners (KP) Coffee Machine Manuf.



Accessories


Key Ac<vi<es (KA) ProducMon; MarkeMng; DistribuMon/LogisMcs


Cost Structure (C$)

Key Resources (KR)

(-‐) (+)

Business Model Process (BMP) Canvas for Nespresso: Supply (Process/Value) Chain


Customer Segment (CS) Households; Offices: Low quality coffee





Key Partners (KP) Coffee Machine Manuf.



Accessories


Key Ac<vi<es (KA) ProducMon; MarkeMng; DistribuMon/LogisMcs


Cost Structure (C$)

Key Resources (KR)

(-‐) (+)

Business Model Process (BMP) Canvas: Supply Chain Worksheet


Customer Segment (CS)

Channel (CH)

Customer Rela<onships (CR)


Key Partners (KP)


Key Ac<vi<es (KA)

Cost Structure (C$)

Key Resources (KR)

(-‐) (+)

Global Problem Solving (GPS) Canvas: Worksheet


Global Problem Solving (GPS) Grid: Worksheet


PROBLEM SOLVING ACTIVITIES ITEM

LEARN MEASURE

BUILD

PLAN

PROBLEM

HOW TO COLLABORATIVELY USE THE BUSINESS MODEL (BM) BRAIN Gameboard for AcceleraMng ConMnuous Problem Solving, Improvement, InnovaMon, and Learning

1 •  Draw or Print out a large template of the Business Model (BM) Brain or Business Model Process (BMP) Canvas, e.g., on A4 size paper or laminaMon of 24”x36”

2 •  Put the BM Brain or Process Canvas on a wall or large table

3

•  CollaboraMvely and sequenMally populate (using Post-‐its or note-‐cards) or write on the 5 modules of the BM Brain or Canvas: First, formulate proposals (hypotheses) for each module of the BM Brain or Process Canvas in the following sequence of 5 Problem-‐Solving Ac.vi.es: “Problem-‐Plan-‐Build-‐Measure-‐Learn.” Then, go out in the field and itera.vely validate the proposals (hypotheses) for each module on the BM Brain or Business Model Process (BMP) Canvas (project/business ecosystem plan).


Which Method of Business Model Visualiza<on

Do You Prefer? Business Model Brain

Or Business Model Process Canvas?

Why?

Business Model Process Canvas vs. Business Model Brain for Nespresso: What's Your Favorite Tool for...

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