Business Model Canvas - Entrepreneurship 101

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E101
Business Model
Canvas
November 11, 2015
Mark Zimmerman
@markzim


A startup is a temporary
organization used to
search for a repeatable and
scalable business model.
Steve Blank


“In preparing for battle I have always
found that plans are useless, but
planning is indispensable.”
-Dwight Eisenhower


Business
Model
Generation
Alexander Osterwälder & Yves
Pigneur + 470 practitioners.


Customer
Segments
Value
Proposition
Customer
Relationships
Channels
Revenue Streams
Key
Resources
Key
Activities
Key
Partners
Cost Structure


Customer
Segments
Who do you serve?


Customer
Segments
Value
PropositionWhat problems
do you solve?
What jobs do
you do?


“The customer rarely buys what the
company thinks it’s selling.”
-Peter Drucker
“Most companies segment their markets by customer
demographics or product characteristics and
differentiate their offerings by adding features and
functions. But the consumer has a diﬀerent view
of the marketplace. He simply has a job to be
done and is seeking to “hire” the best product or
service to do it. Marketers must adopt that
perspective.”
-Clayton M. Christensen, Scott D. Anthony, Gerald Berstell and Denise Nitterhouse


Customer
Segments
Value
Proposition
Products & Services
Gain Creators
Pain Relievers
Customer Job(s)
Gains
Pains
Value proposition canvas.


Gain Creators
Pain Relievers Pains
Gains
Products
& Services
Customer
Job(s)
Value Proposition Customer Segment
copyright: Strategyzer AG
The makers of Business Model Generation and Strategyzer
The Value Proposition Canvas
strategyzer.com
Fit.
Problem/Solution
Product/Market


Customer
Segments
Value
Proposition
Channels
How do
customers find
you?
How do they
buy?
How do you
deliver?


Customer
Segments
Value
Proposition
Customer
Relationships
Channels
What type of
relationships do
you have?


Customer
Segments
Value
Proposition
Customer
Relationships
Channels
Revenue StreamsHow do you get
paid?


Customer
Segments
Value
Proposition
Customer
Relationships
Channels
Revenue Streams
Key
Activities
What things
must you do?


Customer
Segments
Value
Proposition
Customer
Relationships
Channels
Revenue Streams
Key
Resources
Key
Activities
What resources do you
need to do them?


Customer
Segments
Value
Proposition
Customer
Relationships
Channels
Revenue Streams
Key
Resources
Key
Activities
Key
Partners
Who else do you need to
make your model work?


Customer
Segments
Value
Proposition
Customer
Relationships
Channels
Revenue Streams
Key
Resources
Key
Activities
Key
Partners
Cost Structure
What does it cost to
operate the model?


Customer
Segments
Value
Proposition
Customer
Relationships
Channels
Revenue Streams
Key
Resources
Key
Activities
Key
Partners
Cost Structure
How do you capture
value?


Customer
Segments
Value
Proposition
Customer
Relationships
Channels
Revenue Streams
Key
Resources
Key
Activities
Key
Partners
Cost Structure
Social & environmental
costs
Social & environmental
benefits


Customer
Segments
Value
Proposition
Customer
Relationships
Channels
Revenue Streams
Key
Resources
Key
Activities
Key
Partners
Cost Structure
What?
Who?
Why?
How?


1970 - Invented
1976 - Patented
1986 - Launched
Sold as a complete
solution, machines
& coffee for a per
cup price to
restaurants and
offices.


1970 - Invented
1976 - Patented
1986 - Launched
Sold as a complete
solution, machines
& coffee for a per
cup price to
restaurants and
offices.
1988 - Acknowledged
dud, Nestle considers
shutdown.


1989 - Jean Paul
Gaillard named
Commercial
Director - “Pivots”


Separate the machine from the coffee.


Made and serviced by 3rd parties.
Sold through independent retail stores.
Manufacturers handle delivery and stocking.
Nespresso handles sales training.


Made and serviced by 3rd parties.
Sold through independent retail stores.
Manufacturers handle delivery and stocking.
Nespresso handles sales training.
Sold online and over the
phone direct to members
of the Nespresso Club.
Delivered direct to
consumers in 24 hours or
less.


As market matured Nespresso added their own brand machines made by OEMs.
Added it’s own retail boutiques to further control the sales message.
Created Nespresso Pro channel to serve the office market.


~$3 billion in annual revenue
50 countries
30% CAGR over 10
years
12 million
machines
20 billion
capsules


Customer
Segments
Value
Proposition
Customer
Relationships
Channels
Revenue Streams
Key
Resources
Key
Activities
Key
Partners
Cost Structure
Nespresso
high end
households
member
high end
restaurant
quality
espresso at
home
Coffee
machine
makers
marketing
distribution
& sales
manufacturing
capsule sales hardware sales
retail
nespresso.com
nespresso
boutiques
call centre
productio
n plants
distribution
patents
brand
production
marketing
logistics


E101
Business Model
Canvas
November 11, 2015
Mark Zimmerman
@markzim
Thank
You

Business Model Canvas - Entrepreneurship 101

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