Business Models By Design · business model innovation without an innovative ... Nespresso changed...
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BusinessModelGeneration.com @business_design Business Models By Design
Transcript of Business Models By Design · business model innovation without an innovative ... Nespresso changed...
BusinessModelGeneration.com@business_design
Business Models By
Design
BusinessModelGeneration.com
1,000,000new book titles were
published in the U.S. in ʼ10
11,000new business books
appear every year
12%decline of sales in major
bookstore chains (ʻ07-ʼ09)
?so what did we do?
we designed a new product...
?would a big publishing house have taken us
on with this book?
No!
you canʼt write about business model innovation without an innovative business model
“”
$24.-
$36.-
$54.-
$81.-
$250.-
Results
150ʼ000+ #bmgen copies in print (May ʼ11)#
top 10 softcover business book year-to-date (after 11 months on the shelves)#
18 #bmgen translations upcoming in 2011#
more importantly...
and even...
?whatʼs the take-away?
Product innovation alone was not
sufficient The product innovation
was enabled by the business model1
It wasnʼt a copy-paste from
competitorsWe designed a
new business model2
We couldnʼt prove in advance that the
model would workWe had to take some risk and
experiment3
?So how does one design successful business
models?
3 Themesdesign thinking attitude
business model
language
business modeltoolbox
proj
ect:
scre
en:
date
: au
thor
:
iPad stencil, actual scale, template by hortis, le studio. Feb. 2010. http://hortis.lestudio.ch
business model language 1
buzzgroup
?discuss with your seat neighbor what a business model is and
write down your definition
? ?
Business Model Canvas
to describe, challenge, design, and invent business models more systematically
building blocks 9
CUSTOMER SEGMENTS
images by JAM
VALUE PROPOSITIONS
images by JAM
CHANNELS
images by JAM
CUSTOMER RELATIONSHIPS
images by JAM
REVENUE STREAMS
images by JAM
KEY RESOURCES
images by JAM
KEY ACTIVITIES
images by JAM
KEY PARTNERS
images by JAM
COST STRUCTURE
images by JAM
images by JAM
customer segments
key partners
cost structure
revenue streams
channels
customer relationships
key activities
key resources
value proposition
images by JAM
customer segments
key partners
cost structure
revenue streams
channels
customer relationships
key activities
key resources
value proposition
images by JAM
CANVAS OVERLAY
images by JAM
OFFER
CHANNELS
CUSTOMER RELATIONSHIPS
CUSTOMERSEGMENTS
REVENUE STREAMSCOST STRUCTURE
KEYACTIVITIES
KEYPARTNERS
KEYRESOURCES
images by JAM
CANVAS OVERLAYOFFER
CHANNELS
CUSTOMER RELATIONSHIPS
CUSTOMERSEGMENTS
REVENUE STREAMSCOST STRUCTURE
KEYACTIVITIES
KEYPARTNERS
KEYRESOURCES
KEYPARTNERS
OFFER
CHANNELS
CUSTOMER RELATIONSHIPS
CUSTOMERSEGMENTS
REVENUE STREAMSCOST STRUCTURE
KEYACTIVITIES
KEYRESOURCES
buildingblock
buildingblock
buildingblock
buildingblockbuilding
block
building
block
buildingblock
buildingblock
buildingblock
buildingblock
buildingblock
buildingblock
The Business Model Canvas
illustra-on
how much did the cost of home coffee consumption
change for Swiss households over the last couple of years?
6-8 x more
Nespresso changed the
business model for espresso
RESULTS
one of the fastest-growing businesses in
the Nestlé group
average growth of 30% p.a. since 2000
over 3 billion CHF annual revenue with 1 product line
(2.4 bio EUR)
KEYPARTNERS
OFFER
CHANNELS
CUSTOMER RELATIONSHIPS
CUSTOMERSEGMENTS
REVENUE STREAMSCOST STRUCTURE
KEYACTIVITIES
KEYRESOURCES
Nespresso’s business Model
households (espresso fans)
distribution channels
**** retail
outlets
sales of
Nespresso pods
mailorder
Nespresso stores
NespressoClub
production facilities
coffee machine
manufacturersbusinesses
sales of Nespresso machines
Nespressopods
patents
marketing
production
B2Cdistribution
production
callcenter
Nespresso.com
*** Nespresso machines
marketing
B2Cdistribution
but Nespresso almost failed in 1987 due to a nonperforming
business model
KEYPARTNERS
OFFER
CHANNELS
CUSTOMER RELATIONSHIPS
CUSTOMERSEGMENTS
REVENUE STREAMSCOST STRUCTURE
KEYACTIVITIES
KEYRESOURCES
Nespresso’s 1987 Model
officesNespressosystem
joint venture with machine manufacturer
machine manufacturer
design thinkingattitude 2
[source: Sony Pictures]
Frank Gehry
[source: Sony Pictures]
[source: Sony Pictures]
[source: Wikimedia Commons]
?what does that have to do with
business models?
business model prototyping
napkin sketch Canvas business case field test
casestudy
?letʼs brainstorm on a really, really big issue in
the world?
access to proper
sanitation
2.6 billion people lack
access
4 out of 10 people in the world lack even the most simplest latrine to
perform their needs
* single-use toilet bag* self-sanitizing* biodegradable* turns into fertilizer
* low production cost* (mainly) targeted at poor people
* people already pay for sanitation
come up with a good business model idea of how Peepoople could build a profitable business and scale quickly
* single-use toilet bag* self-sanitizing* biodegradable* turns into fertilizer
* low production cost* (mainly) targeted at poor people
* people already pay for sanitation
business model toolbox 3
proj
ect:
scre
en:
date
: au
thor
:
iPad stencil, actual scale, template by hortis, le studio. Feb. 2010. http://hortis.lestudio.ch
proj
ect:
scre
en:
date
: au
thor
:
iPad stencil, actual scale, template by hortis, le studio. Feb. 2010. http://hortis.lestudio.ch
THANK YOU!BusinessModelGeneration.com
AlexOsterwalder.com BusinessModelAlchemist.com
Twitter: business_design
