Workshop Alex Osterwalder

AlexOsterwalder.comTwitter: business_design

Rethinking Business Models

BusinessModelGeneration.com

Time Machine

[sources: Henry Chesbrough, photo: life.com]

[sources: Henry Chesbrough, photo: xerox.com]

Time Machine

?what do both examples have in common?

they didnʼt give a d%*&Y about the status-quo models

the business model “trumps”/enables the technology innovation

there was no way they could prove their business

models would work

Time Machine

?WHAT IS YOUR BUSINESS MODEL

so is there...

61

formula for successful

business models?

there is none!

63[photo sources: BusinessWeek.com]

63

17%[photo sources: BusinessWeek.com]

yet, we can be more systematic in our creativity to find the next ...

AGENDA

AGENDAbusiness models

AGENDAdesign thinking

business models

AGENDAdesign thinking

business models

ongoing process

67

Your Expectations?

business models

buzzgroup

?What was Appleʼs business model for the iPod? Discuss & describe it

buzzgroup

?discuss with your seat neighbor what a business model is and

write down your definition

?what elements did you mention in 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

CANVAS OVERLAY

images by JAM

OFFER

CHANNELS


CUSTOMERSEGMENTS

REVENUE STREAMSCOST STRUCTURE

KEYACTIVITIES

KEYPARTNERS

KEYRESOURCES

images by JAM

CANVAS OVERLAYOFFER

CHANNELS


CUSTOMERSEGMENTS


KEYACTIVITIES

KEYPARTNERS

KEYRESOURCES

KEYPARTNERS

OFFER

CHANNELS


CUSTOMERSEGMENTS


KEYACTIVITIES

KEYRESOURCES

The Business Model Canvas

KEYPARTNERS

OFFER

CHANNELS


CUSTOMERSEGMENTS


KEYACTIVITIES

KEYRESOURCES

buildingblock

buildingblock

buildingblock

buildingblockbuilding

block

building

block

buildingblock

buildingblock

buildingblock

buildingblock

buildingblock

buildingblock


illustra-on

KEYPARTNERS

OFFER

CHANNELS


CUSTOMERSEGMENTS


KEYACTIVITIES

KEYRESOURCES

iPod/iTunes Business Model

KEYPARTNERS

OFFER

CHANNELS


CUSTOMERSEGMENTS


KEYACTIVITIES

KEYRESOURCES


seamless music

experience &

great design

KEYPARTNERS

OFFER

CHANNELS


CUSTOMERSEGMENTS


KEYACTIVITIES

KEYRESOURCES


seamless music

experience &

great design

(high-end) mass market

KEYPARTNERS

OFFER

CHANNELS


CUSTOMERSEGMENTS


KEYACTIVITIES

KEYRESOURCES


seamless music

experience &

great design


retailstores

KEYPARTNERS

OFFER

CHANNELS


CUSTOMERSEGMENTS


KEYACTIVITIES

KEYRESOURCES


seamless music

experience &

great design


retailstores

Apple.comwebsite

KEYPARTNERS

OFFER

CHANNELS


CUSTOMERSEGMENTS


KEYACTIVITIES

KEYRESOURCES


seamless music

experience &

great design


Applestores

retailstores

Apple.comwebsite

KEYPARTNERS

OFFER

CHANNELS


CUSTOMERSEGMENTS


KEYACTIVITIES

KEYRESOURCES


seamless music

experience &

great design


iTunes soft &

storeApple

stores

retailstores

Apple.comwebsite

KEYPARTNERS

OFFER

CHANNELS


CUSTOMERSEGMENTS


KEYACTIVITIES

KEYRESOURCES


seamless music

experience &

great design


iTunes soft &

storeApple

stores

Lovemark

retailstores

Apple.comwebsite

KEYPARTNERS

OFFER

CHANNELS


CUSTOMERSEGMENTS


KEYACTIVITIES

KEYRESOURCES


seamless music

experience &

great design


iTunes soft &

storeApple

stores

Lovemark

retailstores

Apple.comwebsite

switchingcosts

KEYPARTNERS

OFFER

CHANNELS


CUSTOMERSEGMENTS


KEYACTIVITIES

KEYRESOURCES


seamless music

experience &

great design


iTunes soft &

storeApple

stores

high-margin

hardware rev.

Lovemark

retailstores

Apple.comwebsite

switchingcosts

KEYPARTNERS

OFFER

CHANNELS


CUSTOMERSEGMENTS


KEYACTIVITIES

KEYRESOURCES


seamless music

experience &

great design


iTunes soft &

storeApple

stores

high-margin

hardware rev.

Lovemark

retailstores

Apple.comwebsite

high-volume content rev.

switchingcosts

KEYPARTNERS

OFFER

CHANNELS


CUSTOMERSEGMENTS


KEYACTIVITIES

KEYRESOURCES


seamless music

experience &

great design


iTunes soft &

storeApple

stores

high-margin

hardware rev.

Lovemark

retailstores

Apple.comwebsite


switchingcosts

talented people (designers)

KEYPARTNERS

OFFER

CHANNELS


CUSTOMERSEGMENTS


KEYACTIVITIES

KEYRESOURCES


seamless music

experience &

great design


iTunes soft &

storeApple

stores

high-margin

hardware rev.

Lovemark

retailstores

Apple.comwebsite


switchingcosts

iPodhardware


KEYPARTNERS

OFFER

CHANNELS


CUSTOMERSEGMENTS


KEYACTIVITIES

KEYRESOURCES


seamless music

experience &

great design


iTunes soft &

storeApple

stores

high-margin

hardware rev.

Lovemark

retailstores

Apple.comwebsite


switchingcosts

iPodhardware


iTunes software

KEYPARTNERS

OFFER

CHANNELS


CUSTOMERSEGMENTS


KEYACTIVITIES

KEYRESOURCES


seamless music

experience &

great design


iTunes soft &

storeApple

stores

high-margin

hardware rev.

Lovemark

retailstores

Apple.comwebsite


switchingcosts

Applebrand

iPodhardware


iTunes software

KEYPARTNERS

OFFER

CHANNELS


CUSTOMERSEGMENTS


KEYACTIVITIES

KEYRESOURCES


seamless music

experience &

great design


content &

agreements iTunes soft &

storeApple

stores

high-margin

hardware rev.

Lovemark

retailstores

Apple.comwebsite


switchingcosts

Applebrand

iPodhardware


iTunes software

KEYPARTNERS

OFFER

CHANNELS


CUSTOMERSEGMENTS


KEYACTIVITIES

KEYRESOURCES


seamless music

experience &

great design


content &

agreements iTunes soft &

storeApple

stores

high-margin

hardware rev.

Lovemark

retailstores

Apple.comwebsite


switchingcosts

Applebrand

iPodhardware


iTunes software

recordlabels

KEYPARTNERS

OFFER

CHANNELS


CUSTOMERSEGMENTS


KEYACTIVITIES

KEYRESOURCES


seamless music

experience &

great design


content &

agreements

hard-/software

design

iTunes soft &

storeApple

stores

high-margin

hardware rev.

Lovemark

retailstores

Apple.comwebsite


switchingcosts

Applebrand

iPodhardware


iTunes software

recordlabels

KEYPARTNERS

OFFER

CHANNELS


CUSTOMERSEGMENTS


KEYACTIVITIES

KEYRESOURCES


seamless music

experience &

great design


content &

agreements

OEMs

hard-/software

design

iTunes soft &

storeApple

stores

high-margin

hardware rev.

Lovemark

retailstores

Apple.comwebsite


switchingcosts

Applebrand

iPodhardware


iTunes software

recordlabels

KEYPARTNERS

OFFER

CHANNELS


CUSTOMERSEGMENTS


KEYACTIVITIES

KEYRESOURCES


seamless music

experience &

great design


content &

agreements

OEMs

hard-/software

design

iTunes soft &

storeApple

stores

high-margin

hardware rev.

Lovemark

retailstores

Apple.comwebsite


switchingcosts

Applebrand

iPodhardware


iTunes software

recordlabels

supply chain

management

KEYPARTNERS

OFFER

CHANNELS


CUSTOMERSEGMENTS


KEYACTIVITIES

KEYRESOURCES


seamless music

experience &

great design


content &

agreements

marketing and salesOEMs

hard-/software

design

iTunes soft &

storeApple

stores

high-margin

hardware rev.

Lovemark

retailstores

Apple.comwebsite


switchingcosts

Applebrand

iPodhardware


iTunes software

recordlabels

supply chain

management

KEYPARTNERS

OFFER

CHANNELS


CUSTOMERSEGMENTS


KEYACTIVITIES

KEYRESOURCES


seamless music

experience &

great design


content &

agreements


people, design,

and development

hard-/software

design

iTunes soft &

storeApple

stores

high-margin

hardware rev.

Lovemark

retailstores

Apple.comwebsite


switchingcosts

Applebrand

iPodhardware


iTunes software

recordlabels

supply chain

management

KEYPARTNERS

OFFER

CHANNELS


CUSTOMERSEGMENTS


KEYACTIVITIES

KEYRESOURCES


seamless music

experience &

great design


content &

agreements


people, design,

and development

hard-/software

design

hardware manufacturing

iTunes soft &

storeApple

stores

high-margin

hardware rev.

Lovemark

retailstores

Apple.comwebsite


switchingcosts

Applebrand

iPodhardware


iTunes software

recordlabels

supply chain

management

KEYPARTNERS

OFFER

CHANNELS


CUSTOMERSEGMENTS


KEYACTIVITIES

KEYRESOURCES


seamless music

experience &

great design


content &

agreements


people, design,

and development

hard-/software

design


iTunes soft &

storeApple

stores

high-margin

hardware rev.

Lovemark

retailstores

Apple.comwebsite


switchingcosts

marketing and sales

Applebrand

iPodhardware


iTunes software

recordlabels

supply chain

management

KEYPARTNERS

OFFER

CHANNELS


CUSTOMERSEGMENTS


KEYACTIVITIES

KEYRESOURCES


minibreak‐out

KEYPARTNERS

OFFER

CHANNELS


CUSTOMERSEGMENTS


KEYACTIVITIES

KEYRESOURCES

WHAT IS YOUR MODEL?

?

UNDERSTANDER (interviewer) asks questions and sketches out interlocutors business model with post-it notes

UNDERSTANDER (interviewer) asks questions and sketches out interlocutors business model with post-it notes

EXPLAINER (interviewee) answers business model questions to help interviewer understand his/her core model

illustra-on

(New) Apple’s 4 Business

Model Stages

1 HARDWARE MANUFACTURER

OFFERKEYPARTNERS


CUSTOMERSEGMENTS


KEYACTIVITIES

KEYRESOURCES

CHANNELS

HARDWARE MANUFACTURER

OFFERKEYPARTNERS


CUSTOMERSEGMENTS


KEYACTIVITIES

KEYRESOURCES

CHANNELS


high-end to mass market

acquire hearts and loyalty

great hardware design plus ease of use

OFFERKEYPARTNERS


CUSTOMERSEGMENTS


KEYACTIVITIES

KEYRESOURCES

CHANNELS




Applestores

retailstores

Apple.comwebsite


OFFERKEYPARTNERS


CUSTOMERSEGMENTS


KEYACTIVITIES

KEYRESOURCES

CHANNELS




Applestores

retailstores

Apple.comwebsite


high-margin

hardware sales

OFFERKEYPARTNERS


CUSTOMERSEGMENTS


KEYACTIVITIES

KEYRESOURCES

CHANNELS




marketing and sales

hard-/software

design

supply chain

management

Applestores

retailstores

Apple.comwebsite


Original

Equipment

Manufacturers

high-margin

hardware sales

OFFERKEYPARTNERS


CUSTOMERSEGMENTS


KEYACTIVITIES

KEYRESOURCES

CHANNELS




marketing and sales

hard-/software

design

supply chain

management

Applestores

retailstores

Apple.comwebsite


Original

Equipment

Manufacturers

high-margin

hardware sales

Microsoft

other software suppliers

operating

system (OS)

Applebrand


OFFERKEYPARTNERS


CUSTOMERSEGMENTS


KEYACTIVITIES

KEYRESOURCES

CHANNELS




marketing and sales

hard-/software

design

supply chain

management

people, design,

and development


marketing and sales

Applestores

retailstores

Apple.comwebsite


Original

Equipment

Manufacturers

high-margin

hardware sales

Microsoft

other software suppliers

operating

system (OS)

Applebrand


2 PLATFORM OPERATOR

OFFERKEYPARTNERS

CHANNELS


CUSTOMERSEGMENTS


KEYACTIVITIES

KEYRESOURCES

PLATFORM OPERATOR



people, design,

and development

hard-/software

design


Applestores

high-margin

hardware rev.

Lovemark

retailstores

Apple.comwebsite

marketing and sales

Applebrand


supply chain

management

OFFERKEYPARTNERS

CHANNELS


CUSTOMERSEGMENTS


KEYACTIVITIES

KEYRESOURCES

PLATFORM OPERATOR



people, design,

and development

hard-/software

design


Applestores

high-margin

hardware rev.

Lovemark

retailstores

Apple.comwebsite

marketing and sales

Applebrand


supply chain

management seamless music

experience &

great design

OFFERKEYPARTNERS

CHANNELS


CUSTOMERSEGMENTS


KEYACTIVITIES

KEYRESOURCES

PLATFORM OPERATOR



people, design,

and development

hard-/software

design


Applestores

high-margin

hardware rev.

Lovemark

retailstores

Apple.comwebsite


marketing and sales

Applebrand


supply chain

managementswitchingcosts

seamless music

experience &

great design

iTunes soft &

store

OFFERKEYPARTNERS

CHANNELS


CUSTOMERSEGMENTS


KEYACTIVITIES

KEYRESOURCES

PLATFORM OPERATOR



people, design,

and development

hard-/software

design


Applestores

high-margin

hardware rev.

Lovemark

retailstores

Apple.comwebsite


marketing and sales

Applebrand


supply chain

managementswitchingcosts

content &

agreements

iPodhardware

iTunes software

recordlabels

seamless music

experience &

great design

iTunes soft &

store

musicroyalties

3 MARKET OPERATOR

OFFERKEYPARTNERS

CHANNELS


CUSTOMERSEGMENTS


KEYACTIVITIES

KEYRESOURCES

MARKET OPERATOR

(high-end) mass marketcontent &

agreements


people, design,

and development

hard-/software

design


iTunes soft &

storeApple

stores

high-margin

hardware rev.

Lovemark

retailstores

Apple.comwebsite


switchingcosts

marketing and sales

Applebrand

iPodhardware


iTunes software

recordlabels

supply chain

management

OFFERKEYPARTNERS

CHANNELS


CUSTOMERSEGMENTS


KEYACTIVITIES

KEYRESOURCES

MARKET OPERATOR


agreements


people, design,

and development

hard-/software

design


iTunes soft &

storeApple

stores

high-margin

hardware rev.

Lovemark

retailstores

Apple.comwebsite


switchingcosts

marketing and sales

Applebrand

iPodhardware


iTunes software

recordlabels

supply chain

managementseamless

smart-phone

exp. & design

OFFERKEYPARTNERS

CHANNELS


CUSTOMERSEGMENTS


KEYACTIVITIES

KEYRESOURCES

MARKET OPERATOR


agreements


people, design,

and development

hard-/software

design


iTunes soft &

storeApple

stores

high-margin

hardware rev.

Lovemark

retailstores

Apple.comwebsite


switchingcosts

marketing and sales

Applebrand

iPodhardware


iTunes software

recordlabels

supply chain

managementseamless

smart-phone

exp. & design

appstore in

iTunes

app(lication) developers

OFFERKEYPARTNERS

CHANNELS


CUSTOMERSEGMENTS


KEYACTIVITIES

KEYRESOURCES

MARKET OPERATOR


agreements


people, design,

and development

hard-/software

design


iTunes soft &

storeApple

stores

high-margin

hardware rev.

Lovemark

retailstores

Apple.comwebsite


switchingcosts

marketing and sales

Applebrand

iPodhardware


iTunes software

recordlabels

supply chain

managementseamless

smart-phone

exp. & design

appstore in

iTunes


30% transaction

cut on app sales

OFFERKEYPARTNERS

CHANNELS


CUSTOMERSEGMENTS


KEYACTIVITIES

KEYRESOURCES

MARKET OPERATOR


agreements


people, design,

and development

hard-/software

design


iTunes soft &

storeApple

stores

high-margin

hardware rev.

Lovemark

retailstores

Apple.comwebsite


switchingcosts

marketing and sales

Applebrand

iPodhardware


iTunes software

recordlabels

supply chain

managementseamless

smart-phone

exp. & design

appstore in

iTunes


30% transaction

cut on app sales

apps control and approval

4 ECOSYSTEM PROVIDER

OFFERKEYPARTNERS

CHANNELS


CUSTOMERSEGMENTS


KEYACTIVITIES

KEYRESOURCES

ecosystem provider


agreements


people, design,

and development

hard-/software

design


iTunes soft &

storeApple

stores

high-margin

hardware rev.

Lovemark

retailstores

Apple.comwebsite


switchingcosts

marketing and sales

Applebrand

iPodhardware


iTunes software

recordlabels

supply chain

management

appstore in

iTunes


30% transaction

cut on app sales


OFFERKEYPARTNERS

CHANNELS


CUSTOMERSEGMENTS


KEYACTIVITIES

KEYRESOURCES

ecosystem provider


agreements


people, design,

and development

hard-/software

design


iTunes soft &

storeApple

stores

high-margin

hardware rev.

Lovemark

retailstores

Apple.comwebsite


switchingcosts

marketing and sales

Applebrand

iPodhardware


iTunes software

recordlabels

supply chain

management

appstore in

iTunes


30% transaction

cut on app sales


seamless tablet experience

OFFERKEYPARTNERS

CHANNELS


CUSTOMERSEGMENTS


KEYACTIVITIES

KEYRESOURCES

ecosystem provider


agreements


people, design,

and development

hard-/software

design


iTunes soft &

storeApple

stores

high-margin

hardware rev.

Lovemark

retailstores

Apple.comwebsite


switchingcosts

marketing and sales

Applebrand

iPodhardware


iTunes software

recordlabels

supply chain

management

appstore in

iTunes


30% transaction

cut on app sales


seamless tablet experience

advertisers

40% transaction cut on ad fees

iAds

ECOSYSTEM PROVIDER

MARKET OPERATOR

PLATFORM OPERATOR


minibreak‐out

NiklasZennström

Skype is…

7 years old

500 million users

100 billion free calls

550 million USD revenue 08

it was sold to eBay after 3 years for…

€2.1 billion

€1.2 + billion optional

OFFER

DISTRIBUTION CHANNELS


CUSTOMERSEGMENTS

REVENUE STREAMS

KEYACTIVITIES

COST STRUCTURE

KEYRESOURCES

PARTNERNETWORK

OFFER



CUSTOMERSEGMENTS

REVENUE STREAMS

KEYACTIVITIES

mass customers globally

COST STRUCTURE

KEYRESOURCES

PARTNERNETWORK

OFFER



CUSTOMERSEGMENTS

REVENUE STREAMS

KEYACTIVITIES

SME businesses


COST STRUCTURE

KEYRESOURCES

PARTNERNETWORK

OFFER



CUSTOMERSEGMENTS

REVENUE STREAMS

KEYACTIVITIES

free VoIP &

video callingSME

businesses


COST STRUCTURE

KEYRESOURCES

PARTNERNETWORK

OFFER



CUSTOMERSEGMENTS

REVENUE STREAMS

KEYACTIVITIES

free VoIP &

video callingSME

businesses

mass customers globallycheap

calls

(Skype Out)

COST STRUCTURE

KEYRESOURCES

PARTNERNETWORK

OFFER



CUSTOMERSEGMENTS

REVENUE STREAMS

KEYACTIVITIES

free VoIP &

video calling

Skype.com

SME businesses


calls

(Skype Out)

COST STRUCTURE

KEYRESOURCES

PARTNERNETWORK

OFFER



CUSTOMERSEGMENTS

REVENUE STREAMS

KEYACTIVITIES

free VoIP &

video calling

Logitech partnership

Skype.com

SME businesses


calls

(Skype Out)

COST STRUCTURE

KEYRESOURCES

PARTNERNETWORK

mass

customized

OFFER



CUSTOMERSEGMENTS

REVENUE STREAMS

KEYACTIVITIES

free VoIP &

video calling


Skype.com

SME businesses


calls

(Skype Out)

COST STRUCTURE

KEYRESOURCES

PARTNERNETWORK

mass

customized

OFFER



CUSTOMERSEGMENTS

REVENUE STREAMS

KEYACTIVITIES

free VoIP &

video calling


Skype.com

SME businesses


calls

(Skype Out)

COST STRUCTURE

KEYRESOURCES

PARTNERNETWORK

free

mass

customized

OFFER



CUSTOMERSEGMENTS

REVENUE STREAMS

KEYACTIVITIES

free VoIP &

video calling


Skype.com

SME businesses


calls

(Skype Out)

COST STRUCTURE

KEYRESOURCES

PARTNERNETWORK

freeSkype Out

mass

customized

OFFER



CUSTOMERSEGMENTS

REVENUE STREAMS

KEYACTIVITIES

free VoIP &

video calling


Skype.com

SME businesses


calls

(Skype Out)

hardware sales

COST STRUCTURE

KEYRESOURCES

PARTNERNETWORK

freeSkype Out

mass

customized

OFFER



CUSTOMERSEGMENTS

REVENUE STREAMS

KEYACTIVITIES

free VoIP &

video calling


Skype.com

SME businesses


calls

(Skype Out)

hardware sales

COST STRUCTURE

KEYRESOURCES

PARTNERNETWORK

Software

freeSkype Out

mass

customized

OFFER



CUSTOMERSEGMENTS

REVENUE STREAMS

KEYACTIVITIES

free VoIP &

video calling


Skype.com

SME businesses


calls

(Skype Out)

hardware sales

COST STRUCTURE

KEYRESOURCES

PARTNERNETWORK

software

developers

Software

freeSkype Out

mass

customized

OFFER



CUSTOMERSEGMENTS

REVENUE STREAMS

KEYACTIVITIES

free VoIP &

video calling


Skype.com

SME businesses


calls

(Skype Out)

hardware sales

COST STRUCTURE

KEYRESOURCES

PARTNERNETWORK

software

developers

Software

software development

freeSkype Out

mass

customized

OFFER



CUSTOMERSEGMENTS

REVENUE STREAMS

KEYACTIVITIES

free VoIP &

video calling


Skype.com

SME businesses


calls

(Skype Out)

hardware sales

COST STRUCTURE

KEYRESOURCES

PARTNERNETWORK

software

developers

Software

fraud management


freeSkype Out

mass

customized

OFFER



CUSTOMERSEGMENTS

REVENUE STREAMS

KEYACTIVITIES

free VoIP &

video calling


Skype.com

SME businesses


calls

(Skype Out)

hardware sales

COST STRUCTURE

KEYRESOURCES

PARTNERNETWORK

software

developers

Software

fraud management


payment providers

freeSkype Out

mass

customized

OFFER



CUSTOMERSEGMENTS

REVENUE STREAMS

KEYACTIVITIES

free VoIP &

video calling


Skype.com

SME businesses


calls

(Skype Out)

hardware sales

COST STRUCTURE

KEYRESOURCES

PARTNERNETWORK

software

developers

Software

telco

partners

fraud management


payment providers

freeSkype Out

mass

customized

OFFER



CUSTOMERSEGMENTS

REVENUE STREAMS

KEYACTIVITIES

free VoIP &

video calling


Skype.com

SME businesses


calls

(Skype Out)

hardware sales

COST STRUCTURE

KEYRESOURCES

PARTNERNETWORK

software

developers

Software

telco

partners

fraud management


payment providers

Logitech

freeSkype Out

mass

customized

OFFER



CUSTOMERSEGMENTS

REVENUE STREAMS

KEYACTIVITIES

free VoIP &

video calling


Skype.com

SME businesses


calls

(Skype Out)

hardware sales

COST STRUCTURE

software

development

KEYRESOURCES

PARTNERNETWORK

software

developers

Software

telco

partners

fraud management


payment providers

Logitech

freeSkype Out

mass

customized

OFFER



CUSTOMERSEGMENTS

REVENUE STREAMS

KEYACTIVITIES

free VoIP &

video calling


Skype.com

SME businesses


calls

(Skype Out)

hardware sales

COST STRUCTURE

software

development

KEYRESOURCES

PARTNERNETWORK

software

developers

Software

telco

partners

fraud management


payment providers

Logitech

freeSkype Outcomplaint management

buzzgroup

mass

customized

OFFER



CUSTOMERSEGMENTS

REVENUE STREAMS

KEYACTIVITIES

free VoIP &

video calling


Skype.com

SME businesses


calls

(Skype Out)

hardware sales

COST STRUCTURE

software

development

KEYRESOURCES

PARTNERNETWORK

software

developers

Software

telco

partners

fraud management


payment providers

Logitech


mass

customized

OFFER



CUSTOMERSEGMENTS

REVENUE STREAMS

KEYACTIVITIES

free VoIP &

video calling


Skype.com

SME businesses


calls

(Skype Out)

hardware sales

COST STRUCTURE

software

development

KEYRESOURCES

PARTNERNETWORK

software

developers

Software

telco

partners

fraud management


payment providers

Logitech


vs Telco

mass

customized

OFFER



CUSTOMERSEGMENTS

REVENUE STREAMS

KEYACTIVITIES

free VoIP &

video calling


Skype.com

SME businesses


calls

(Skype Out)

hardware sales

COST STRUCTURE

software

development

KEYRESOURCES

PARTNERNETWORK

software

developers

Software

telco

partners

fraud management


payment providers

Logitech


roughly similar but

cheaper/free

vs Telco

mass

customized

OFFER



CUSTOMERSEGMENTS

REVENUE STREAMS

KEYACTIVITIES

free VoIP &

video calling


Skype.com

SME businesses


calls

(Skype Out)

hardware sales

COST STRUCTURE

software

development

KEYRESOURCES

PARTNERNETWORK

software

developers

Software

telco

partners

fraud management


payment providers

Logitech


global coverage

roughly similar but

cheaper/free

vs Telco

mass

customized

OFFER



CUSTOMERSEGMENTS

REVENUE STREAMS

KEYACTIVITIES

free VoIP &

video calling


Skype.com

SME businesses


calls

(Skype Out)

hardware sales

COST STRUCTURE

software

development

KEYRESOURCES

PARTNERNETWORK

software

developers

Software

telco

partners

fraud management


payment providers

Logitech


global coverage

100% low cost

roughly similar but

cheaper/free

vs Telco

mass

customized

OFFER



CUSTOMERSEGMENTS

REVENUE STREAMS

KEYACTIVITIES

free VoIP &

video calling


Skype.com

SME businesses


calls

(Skype Out)

hardware sales

COST STRUCTURE

software

development

KEYRESOURCES

PARTNERNETWORK

software

developers

Software

telco

partners

fraud management


payment providers

Logitech


global coverage

100% low cost

100% automatic

roughly similar but

cheaper/free

vs Telco

mass

customized

OFFER



CUSTOMERSEGMENTS

REVENUE STREAMS

KEYACTIVITIES

free VoIP &

video calling


Skype.com

SME businesses


calls

(Skype Out)

hardware sales

COST STRUCTURE

software

development

KEYRESOURCES

PARTNERNETWORK

software

developers

Software

telco

partners

fraud management


payment providers

Logitech


global coverage

100% low cost

100% automatic

roughly similar but

cheaper/free

not all have to pay

vs Telco

mass

customized

OFFER



CUSTOMERSEGMENTS

REVENUE STREAMS

KEYACTIVITIES

free VoIP &

video calling


Skype.com

SME businesses


calls

(Skype Out)

hardware sales

COST STRUCTURE

software

development

KEYRESOURCES

PARTNERNETWORK

software

developers

Software

telco

partners

fraud management


payment providers

Logitech


global coverage

100% low cost

100% automatic

roughly similar but

cheaper/free

no network

not all have to pay

vs Telco

mass

customized

OFFER



CUSTOMERSEGMENTS

REVENUE STREAMS

KEYACTIVITIES

free VoIP &

video calling


Skype.com

SME businesses


calls

(Skype Out)

hardware sales

COST STRUCTURE

software

development

KEYRESOURCES

PARTNERNETWORK

software

developers

Software

telco

partners

fraud management


payment providers

Logitech


global coverage

100% low cost

100% automatic

roughly similar but

cheaper/free

no network

software developm.

not all have to pay

vs Telco

mass

customized

OFFER



CUSTOMERSEGMENTS

REVENUE STREAMS

KEYACTIVITIES

free VoIP &

video calling


Skype.com

SME businesses


calls

(Skype Out)

hardware sales

COST STRUCTURE

software

development

KEYRESOURCES

PARTNERNETWORK

software

developers

Software

telco

partners

fraud management


payment providers

Logitech


global coverage

100% low cost

100% automatic

roughly similar but

cheaper/free

no network

software developm.

not all have to pay

outsourcing non-core

vs Telco

mass

customized

OFFER



CUSTOMERSEGMENTS

REVENUE STREAMS

KEYACTIVITIES

free VoIP &

video calling


Skype.com

SME businesses


calls

(Skype Out)

hardware sales

COST STRUCTURE

software

development

KEYRESOURCES

PARTNERNETWORK

software

developers

Software

telco

partners

fraud management


payment providers

Logitech


global coverage

100% low cost

100% automatic

roughly similar but

cheaper/free

no network

software developm.

not all have to pay

software company

outsourcing non-core

vs Telco

design thinking

design≠

only form

business people donʼt just need to understand designers better; they need to become designers

Roger Martin, Dean Rotman School

“

”

The enemy of innovation are two words - prove it -

you can not prove any new idea


“

”

The lack of trust to experiment with new ideas is

what makes companies obsolete over a period of time


“

”

let us look into design thinking and business (model innovation)

# customer centricity# prototyping business models

customer centricity

images by JAM

key partners

cost structure

revenue streams

channels

customer relationships

key activities

key resources

value proposition

customer segments

analyze from the customer perspectiveOFFER

CHANNELS


CUSTOMERSEGMENTS


KEYACTIVITIES

KEYPARTNERS

KEYRESOURCES

Jan Chipchase

(Nokia)

his main weapon

India mobile study

analyze from the customer perspectiveOFFER

CHANNELS


CUSTOMERSEGMENTS


KEYACTIVITIES

KEYPARTNERS

KEYRESOURCES

example:Hil-

156

[sources: Mark W. Johnson, photo: Hilti.com]

157[source photo: ceratizit.com]

OFFER

CHANNELS


CUSTOMERSEGMENTS


KEYACTIVITIES

KEYPARTNERS

KEYRESOURCES

manufactures and sells light machine tools for builders

OFFER

CHANNELS


CUSTOMERSEGMENTS


KEYACTIVITIES

KEYPARTNERS

KEYRESOURCES


but there’s a substantial

problem with this business model

buzzgroup

?How could Hilti innovate their business model to regain

competitiveness?

OFFER

CHANNELS


CUSTOMERSEGMENTS


KEYACTIVITIES

KEYPARTNERS

KEYRESOURCES


OFFER

CHANNELS


CUSTOMERSEGMENTS


KEYACTIVITIES

KEYPARTNERS

KEYRESOURCES


they learned by understanding

customers

OFFER

CHANNELS


CUSTOMERSEGMENTS


KEYACTIVITIES

KEYPARTNERS

KEYRESOURCES


164[source photo: dholmes.com]

the custom

er’s biggest

job to get

done is NOT

to buy the

tools

165[source photo: griffinindustrial.co.uk]

his most important job to

get

done is to manage (r

ight tool,

right construct

ion site),

maintain, and rep

lace the tools

OFFER

CHANNELS


CUSTOMERSEGMENTS


KEYACTIVITIES

KEYPARTNERS

KEYRESOURCES


OFFER

CHANNELS


CUSTOMERSEGMENTS


KEYACTIVITIES

KEYPARTNERS

KEYRESOURCES


monthly rental fee

prototyping

[source: Sony Pictures]

Frank Gehry

[source: Wikimedia Commons]

?what does that have to do with business models and

my organization?


Frank Gehry

[image source: planetagadget.com]

[planetagadget.com]

?how do we do we business model prototyping?

OFFER

CHANNELS


CUSTOMERSEGMENTS


KEYACTIVITIES

KEYPARTNERS

KEYRESOURCES


buildingblock

buildingblock

buildingblock

buildingblockbuilding

block

building

block

buildingblock

buildingblock

buildingblock

buildingblock

buildingblock

buildingblock

BusinessModelAlchemist.com/tools

business model prototyping

napkin sketch


napkin sketch Canvas


napkin sketch Canvas business case


napkin sketch Canvas business case field test

breakout

* single-use toilet bag

* single-use toilet bag* self-sanitizing

* single-use toilet bag* self-sanitizing* biodegradable

* single-use toilet bag* self-sanitizing* biodegradable* turns into fertilizer

* single-use toilet bag* self-sanitizing* biodegradable* turns into fertilizer* (mainly) targeted at poor people

* single-use toilet bag* self-sanitizing* biodegradable* turns into fertilizer

* low production cost* (mainly) targeted at poor people

KEYPARTNERS

OFFER

CHANNELS


CUSTOMERSEGMENTS


KEYACTIVITIES

KEYRESOURCES


ongoing process

197

uncertainty/patterns/insight clarity/focus

research& understand

designing business model prototypes

business model design to be implemented

[Source:adaptedfromDamienNewman,Central]

story:pitchyourbusinessmodelstory

THANK YOU!BusinessModelGeneration.com

AlexOsterwalder.com BusinessModelAlchemist.com

Twitter: business_design

OFFER

CHANNELS


CUSTOMERSEGMENTS


KEYACTIVITIES

KEYPARTNERS

KEYRESOURCES


differentiation

RED OCEAN

• compete in existing markets

• beat the competition

• explore existing demand

• make the value/cost trade-off

• align with differentiation OR lower cost

BLUE OCEANRED OCEAN






• create uncontested markets

• make competition irrelevant

• create & capture new demand

• break value/cost trade-off

• align with differentiation AND lower cost

example

?what is Sony Playstationʼs business model?

OFFER

CHANNELS


CUSTOMERSEGMENTS


KEYACTIVITIES

KEYPARTNERS

KEYRESOURCES

Sony Playstation

RED OCEAN






[source: art by Nintendo - provided by britishgaming.co.uk]

?whatʼs different in Nintendo Wiiʼs business model?

BLUE OCEAN

• create uncontested markets

• make competition irrelevant

• create & capture new demand

• break value/cost trade-off

• align with differentiation AND lower cost

four actions framework

eliminate

−


reduce

eliminate

−


reduce

raise

eliminate

−


reduce

raise

eliminate

−

create

✚


buzzgroup

reduce

raise

eliminate

−

create

✚

how much did the price of coffee consumed at home

change for Swiss households over the last couple of years?

6-8 x more

Nespresso changed the

business model for espresso

KEYRESOURCES

PARTNERNETWORK

OFFERKEYACTIVITIES

COST STRUCTURE

the business model canvasCUSTOMERSEGMENTS

REVENUE STREAMS



KEYRESOURCES

PARTNERNETWORK

OFFERKEYACTIVITIES

COST STRUCTURE


home Baristo

experience

(machines)

REVENUE STREAMS



KEYRESOURCES

PARTNERNETWORK

OFFERKEYACTIVITIES

COST STRUCTURE


home Baristo

experience

(machines)

REVENUE STREAMS

espresso capsules



KEYRESOURCES

PARTNERNETWORK

OFFERKEYACTIVITIES

COST STRUCTURE


home Baristo

experience

(machines)households

REVENUE STREAMS

espresso capsules



KEYRESOURCES

PARTNERNETWORK

OFFERKEYACTIVITIES

COST STRUCTURE


home Baristo

experience


REVENUE STREAMS

espresso capsules



business

KEYRESOURCES

PARTNERNETWORK

OFFERKEYACTIVITIES

COST STRUCTURE


home Baristo

experience


REVENUE STREAMS

espresso capsules retail outlets



business

KEYRESOURCES

PARTNERNETWORK

OFFERKEYACTIVITIES

COST STRUCTURE


home Baristo

experience


REVENUE STREAMS

espresso capsules retail outletsNespresso.com



business

KEYRESOURCES

PARTNERNETWORK

OFFERKEYACTIVITIES

COST STRUCTURE


home Baristo

experience


REVENUE STREAMS



call center


business

KEYRESOURCES

PARTNERNETWORK

OFFERKEYACTIVITIES

COST STRUCTURE


home Baristo

experience


REVENUE STREAMS



call center

Nespresso stores


business

KEYRESOURCES

PARTNERNETWORK

OFFERKEYACTIVITIES

COST STRUCTURE


home Baristo

experience


REVENUE STREAMS



call center

Nespresso stores

Nespresso

club


business

KEYRESOURCES

PARTNERNETWORK

OFFERKEYACTIVITIES

COST STRUCTURE


home Baristo

experience


capsule sales

REVENUE STREAMS



call center

Nespresso stores

Nespresso

club


business

KEYRESOURCES

PARTNERNETWORK

OFFERKEYACTIVITIES

COST STRUCTURE


home Baristo

experience


machinesales

capsule sales

REVENUE STREAMS



call center

Nespresso stores

Nespresso

club


business

KEYRESOURCES

PARTNERNETWORK

OFFERKEYACTIVITIES

distribution channels

COST STRUCTURE


home Baristo

experience


machinesales

capsule sales

REVENUE STREAMS



call center

Nespresso stores

Nespresso

club


business

KEYRESOURCES

PARTNERNETWORK

OFFERKEYACTIVITIES


COST STRUCTURE

brand


home Baristo

experience


machinesales

capsule sales

REVENUE STREAMS



call center

Nespresso stores

Nespresso

club


business

KEYRESOURCES

PARTNERNETWORK

OFFERKEYACTIVITIES


COST STRUCTURE

brand


home Baristo

experience


machinesales

capsule sales

REVENUE STREAMS



call center

Nespresso stores

Nespresso

club


businessproduction

facilities

KEYRESOURCES

PARTNERNETWORK

OFFERKEYACTIVITIES


COST STRUCTURE

brand


home Baristo

experience


machinesales

capsule sales

REVENUE STREAMS



call center

Nespresso stores

Nespresso

club


businessproduction

facilities

patents

production

KEYRESOURCES

PARTNERNETWORK

OFFERKEYACTIVITIES


COST STRUCTURE

brand


home Baristo

experience


machinesales

capsule sales

REVENUE STREAMS



call center

Nespresso stores

Nespresso

club


businessproduction

facilities

patents

production

KEYRESOURCES

PARTNERNETWORK

OFFERKEYACTIVITIES


COST STRUCTURE

brand


home Baristo

experience


machinesales

capsule sales

REVENUE STREAMS



call center

Nespresso stores

distributionNespresso

club


businessproduction

facilities

patents

production

KEYRESOURCES

PARTNERNETWORK

OFFERKEYACTIVITIES


COST STRUCTURE

brand


home Baristo

experience


machinesales

capsule sales

REVENUE STREAMS



call center

Nespresso stores

distribution

marketing

Nespresso

club


businessproduction

facilities

patents

production

KEYRESOURCES

PARTNERNETWORK

OFFERKEYACTIVITIES


COST STRUCTURE

brand


home Baristo

experience


machinesales

capsule sales

REVENUE STREAMS



call center

Nespresso stores

machine manufacturer

distribution

marketing

Nespresso

club


businessproduction

facilities

patents

production

KEYRESOURCES

PARTNERNETWORK

OFFERKEYACTIVITIES


COST STRUCTURE

brand


home Baristo

experience


marketingmachinesales

capsule sales

REVENUE STREAMS



call center

Nespresso stores


distribution

marketing

Nespresso

club


businessproduction

facilities

patents

production

KEYRESOURCES

PARTNERNETWORK

OFFERKEYACTIVITIES


COST STRUCTURE

brand


home Baristo

experience



capsule sales

REVENUE STREAMS



call center

Nespresso stores

retail logistics


distribution

marketing

Nespresso

club


businessproduction

facilities

patents

production

KEYRESOURCES

PARTNERNETWORK

OFFERKEYACTIVITIES


COST STRUCTURE

brand


home Baristo

experience



capsule sales

REVENUE STREAMS



call center

Nespresso stores

retail logistics


distribution

marketing

Nespresso

club


businessproduction

facilities

patents

production

RESULTS

35% growth p.a. for the last 8 consecutive years

achieved 2.5+ billion CHF revenue in 2009

fastest-growing business in the Nestlé group

there is something even more remarkable about this example!

Workshop Alex Osterwalder

Documents

Transcript of Workshop Alex Osterwalder