Baden-Württemberg connected: BMGen-Seminar 2014.05.15

© Vujàdé Ltd. – Supporting Forward Thinking
Alexander Osterwalder
www.businessmodelgeneration.com
Judith Wimmer
Vujàdé Ltd. – Supporting Forward Thinking
2014.05.15
Photoby:VujàdéLtd–JasperBouwsma
BUSINESS MODEL GENERATION
A common language to develop
and discuss business models

2

3
Vu-jà-dé
Vujàdé is the opposite of déjà vu and gives the impression that something
has not yet taken place, or has never been there.
Looking for new solutions. Critically questioning existing structures and behavior.
Looking at something from a different or an unusual point of view.
In other words, Vujàdé stands for innovation.
Photo by: Vujàdé Ltd – Jasper Bouwsma

1. CORPORATE CONSULTING
2. START-UP SUPPORT
3. INCUBATION
À PROPOS

Judith Wimmer
Sr. Consultant, Vujàdé Ltd.
Vujàdé is a consultancy supporting organizations to achieve breakthrough
innovation. We work with companies of all sizes, from corporates to SMEs and
start-ups, in industries from insurance to fashion, and from construction to life
sciences. Vujàdé is located in Biel/Bienne, Switzerland, and is establishing a
presence in London, UK.
Judith Wimmer is a Senior Consultant at Vujàdé and combines an open minded
spirit with a well structured hands-on mentality. Due to her working experience
in and for start-ups as well as with large organizations, she has a quick and
natural understanding of customer and client needs.
She has gained extensive experience in applying the Business Model Generation
framework in various customer projects and industries. Judith is trained by
Alexander Osterwalder, and his company Strategyzer.
Judith was born and raised in Austria, has a background in Media Technology
and Design. She worked as project manager in the field of corporate
communications in Germany and Switzerland. In addition, Judith consulted
individuals and teams in strategic projects and organisational development
and is currently finishing her MAS Change and Organisational Dynamics.

TOPIC
OUR
FOR TODAY

9
ACCELERATED INNOVATION
WE ARE INVETING MORE, MORE QUICKLY

1
ACCELERATED ADOPTION
SOCIETY IS ADOPTING TECHNOLOGY FASTER AS WELL

Curt Carlson,
SRI International
CEO
In exponential times, if you improve
your performance incrementally
YOU FALL BEHIND
EXPONENTIALLY
”
“

1
A Swiss Business Book author.

© Vujàdé Ltd. – Supporting Forward Thinking© Vujàdé Ltd. – Supporting Forward Thinking
Insert Photo of book with Jasper’s Name.
Co-Created by
470 practitioners from 45 countries.

AGENDA

AGENDA
DESIGN THINKING
A NEW GENERATION
THE BUSINESS MODEL GENERATION
GETTING FAMILIAR
WITH THE BMC
I II III

AGENDA
II III1 2 3
BUSINESS MODEL
GENERATION
I

Case Study
Nespresso
•  B2C & B2B
•  Business Model Portfolio

THE BUSINESS MODEL CANVAS
COST STRUCTURE REVENUE STREAMS
KEY
PARTNERS
KEY
ACTIVITIES
KEY
RESOURCES
CHANNELS
CUSTOMER
SEGMENTS
CUSTOMER
RELATIONSHIP
VALUE
PROPOSITIONS
House-
hold
N-Club
Stores
Produc-
tion
Marketing
Machine
Pro-
ducers
Produc-
tion
Distri-
bution
Marketing
Machine Pods
Call
Center
N.com
Brand
Produc-
tion
facilities
Distri-
bution
channels
Retail
Patents
IP
(1800+
patents) Business

HAS TAKEN A
WHILE TO BECOME
SUCCESSFUL…
NESPRESSO

© Vujàdé Ltd. – Supporting Forward ThinkingVujàdé Ltd. – Supporting Forward Thinking
THE RIGHT BUSINESS MODEL
CAN BE THE DIFFERENCE
BETWEEN SUCCESS AND
FAILURE FOR EXACTLY THE
SAME TECHNOLOGY OR
PRODUCT

WHY WILL
NESPRESSO EVEN
BE MORE
SUCCESSFUL?
?

WE ARE MOVING FROM
PORTFOLIOS OF PRODUCTS
TO
PORTFOLIOS OF
BUSINESS MODELS.

REVENUE MODEL
≠
BUSINESS MODEL

Albert Einstein
Everything should be made
as simple as possible,
but not simpler.
“
Photoby:VujàdéLtd.–JasperBouwsma

Exercise
AirBnB & APPLE iTUNES
•  B2B
•  Product to Service Centric

5’ EXERCISE
BUSINESS MODEL
Key
Partners
Project Name Iteration Nr
Channels
This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License.
To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/ or send a
letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.
Vujàdé Ltd. – Consulting I Start-up Support I Incubation
Elfenaustrasse 3 I CH-2502 Biel/Bienne I Switzerland
+41 32 32 32 300 I contact@vujade.com I www.vujade.com
www.slideshare.net/vujade
Key
Activities
Value
Proposition
Customer
Relationship
Customer
Segments
Key
Ressources
Cost
Structure
Revenue
Streams
images by Mathilde
images by Mathilde
community
community
catalogue development
catalogue development
employees
employees
worldwide
coverage
worldwide
coverage
sales & marketing
sales & marketing
platform
platform
pay pal
pay pal
sales & marketing
sales & marketing
photographers
helpdesk

VALUE
PROPOSITIONS
KEY ACTIVITIES
KEY RESOURCES
REVENUE STREAMSCOST STRUCTURE
KEY PARTNERS CUSTOMER
SEGMENTS
CUSTOMER
RELATIONSHIP
CHANNELS
Images by XPLANE, with warm thanks to Alexander Osterwalder

VALUE
PROPOSITIONS
KEY ACTIVITIES
KEY RESOURCES
REVENUE STREAMSCOST STRUCTURE
SEGMENTS
CUSTOMER
RELATIONSHIP
CHANNELS
Images by Mathilda, with warm thanks to Yves Pigneur

© Vujàdé Ltd. – Supporting Forward ThinkingSource: http://stamen.com/clients/airbnb
2008

2009

2010

2011

TIPS &
TRICKS

VISUALIZE YOUR BUSINESS MODEL
VIDEO #BMGen – 02

… NEVER WRITE ON THE CANVAS
Using post-its allows an easily shifting and removing of elements.
Therefore the exercise stays dynamic and the business model or
the value propositions can be continuously developed.
KEY
PARTNERS
KEY
ACTIVITIES
KEY
RESOURCES
CHANNELS
CUSTOMER
SEGMENTS
CUSTOMER
RELATIONSHIP
VALUE
PROPOSITIONS

mothers
… ONE IDEA - ONE POST-IT
Use a thick marker!
No bullets, use for each point a separate post-it. This allows
you easily shifting the elements and quickly testing combinations.
teenagers

… COLOR CODING
Use different color post-its to highlight certain aspects of your
business model. For example, use different color stickies if you
have two very different customer segments in your business
model with very different jobs-to-be done (e.g. advertisers and
users). Then continue to use the same colors for the
corresponding value propositions, channels, etc.

… VISUALS & WORDS
Combining images and words to describe business model building
blocks is more powerful than just using words. Our brain
processes images quicker than words. Hence, images will allow
viewers of your Canvas to more rapidly grasp the big picture of
your model.
production customersocial
network

… GRANULARITY
Don’t add too many elements when you are sketching out the
strategic overview of a business model. Too many details hide the
big picture. On the other hand, adding detail is appropriate when
you work on the refinement of your business model, in order to
test it and consider customer development.

FREQUENTLY
COMMITTED
MISTAKES

… ORPHAN ELEMENTS
Make sure you don’t create “orphan” elements in your business
model. For example, every Statty in the revenue streams box
needs a corresponding Statty in the customer segment and value
proposition box that highlights who is willing to pay for what.
You should not, for instance, have “advertising” as a revenue
stream, without having an “advertiser” who is willing to pay for
“an audience”
Customer
Segment
Revenue
Source
Value
Proposition
Orphan

… MIXING PRESENT AND FUTURE
Make sure you clearly distinguish between presently existing
business models and future ideas. Mixing them can be confusing.
You can easily distinguish between the two by using color coding
or by using separate Canvases.
present
future

KEY
PARTNERS
KEY
ACTIVITIES
KEY
RESOURCES
CHANNELS
CUSTOMER
SEGMENTS
CUSTOMER
RELATIONSHIP
VALUE
PROPOSITIONS
… TOO MANY IDEAS IN ONE CANVAS
Describing too many different ideas in the same Business Model
Canvas can lead to con- fusion. Try using separate Canvases to
sketch out individual ideas. If necessary you can always bring
them together in the same Canvas later on.
KEY
PARTNERS
KEY
ACTIVITIES
KEY
RESOURCES
CHANNELS
CUSTOMER
SEGMENTS
CUSTOMER
RELATIONSHIP
VALUE
PROPOSITIONS
KEY
PARTNERS
KEY
ACTIVITIES
KEY
RESOURCES
CHANNELS
CUSTOMER
SEGMENTS
CUSTOMER
RELATIONSHIP
VALUE
PROPOSITIONS
KEY
PARTNERS
KEY
ACTIVITIES
KEY
RESOURCES
CHANNELS
CUSTOMER
SEGMENTS
CUSTOMER
RELATIONSHIP
VALUE
PROPOSITIONS

AGENDA
II III1 2 3
GETTING FAMILIAR
WITH THE BMC
I

3GROUPS
3CASES

3 GROUPS | 3 CASES
You are ...
a car repair centre
You generate revenues from
the sale of spare parts and repair contracts.
You are ...
a retailer
You generate revenues from the sale of single items
which you purchase from supply chain partners.
You are...
a transportation business
You generate revenues from ticket sales
for trips.

3 GROUPS | 3 CASES
A CHALLENGE FOR EACH…

You are ...
a car repair centre
You generate revenues from
the sale of spare parts and repair contracts.
You are ...
a retailer
You generate revenues from the sale of single items
which you purchase from supply chain partners.
You are...
a transportation business
You generate revenues from ticket sales
for trips.
3 GROUPS | 3 CASES
A CHALLENGE FOR EACH…

Work on the Frontstage
of the Business Model Canvas
•  Value Propositions
•  Customer Segments
•  Customer Relationship
•  Channels
•  Revenue Streams
Past
Future
3 GROUPS | 3 CASES
ENJOY PART 1

Work on the Backstage
of the Business Model Canvas
•  Value Propositions
•  Key Partners
•  Key Activities
•  Key Ressources
•  Cost structure
Past
Future
3 GROUPS | 3 CASES
ENJOY PART 2

Share your key-findings
•  Bankruptcy or is there a future for your case?
•  Will it be easy to face the challenge?
•  Was the canvas useful for the group discussion?
3 GROUPS | 3 CASES
PITCH PER GROUP

EPICENTERS
OF
BUSINESS MODEL
INNOVATION

SEGMENTS
VALUE
PROPOSITIONS
CUSTOMER
RELATIONSHIP
CHANNELS
KEY ACTIVITIES
KEY RESOURCES
EPICENTERS OF BUSINESS MODEL INNOVATION
RESOURCE-DRIVEN
Resource-driven innovation originates from an organization’s
existing infrastructure or partnerships to expand or transform
the business model.
Example: Amazon Web Services

OFFER-DRIVEN
Offer-driven innovations create new value propositions that
affect other business model building blocks.
Example: Cemex
SEGMENTS
VALUE
PROPOSITIONS
CUSTOMER
RELATIONSHIP
CHANNELS
KEY ACTIVITIES
KEY RESOURCES

CUSTOMER-DRIVEN
Customer-driven innovations are based on customer needs,
facilitated access, or increased convenience. Like all innovations
emerging from a single epicenter, they effect other building blocks.
Example: 23andMe
SEGMENTS
VALUE
PROPOSITIONS
CUSTOMER
RELATIONSHIP
CHANNELS
KEY ACTIVITIES
KEY RESOURCES

FINANCE-DRIVEN
Innovations driven by new revenue streams, pricing mechanisms,
or reduced cost-structures that affect other business model
building blocks.
Example: Xerox
SEGMENTS
VALUE
PROPOSITIONS
CUSTOMER
RELATIONSHIP
CHANNELS
KEY ACTIVITIES
KEY RESOURCES

MULTI-EPICENTER-DRIVEN
Innovations driven by multiple epicenters can have significant
impact on several other building blocks.
Example: Hilti
SEGMENTS
VALUE
PROPOSITIONS
CUSTOMER
RELATIONSHIP
CHANNELS
KEY ACTIVITIES
KEY RESOURCES

INCREMENTAL
VS.
DISRUPTIVE
ACTIVE VS. PASSIVE

THE
BUSINESS MODEL
ENVIRONMENT

Source: Business Model Generation Book
SEGMENTS
VALUE
PROPOSITIONS
CUSTOMER
RELATIONSHIP
CHANNELS
KEY ACTIVITIES
KEY RESOURCES
INDUSTRY
FORCES
MARKET
FORCES
MACRO
ECONOMIC
FORCES
KEY
TRENDS
FORESIGHT
MACRO-ECONOMICS
COMPETITIVEANALYSIS
MARKETANALYSIS

MARKET ANALYSIS
CUSTOMER
SEGMENTS
REAMS
MARKET
FORCES
MARKET SEGMENTS
NEEDS & DEMAND
MARKET ISSUES
SWITCHING COSTS
REVENUE ATTRACTIVENESS

COMPETITIVE ANALYSIS
KEY PARTNERS
COST
INDUSTRY
FORCES
SUPPLIERS & OTHER
VALUE CHAIN ACTORS
STAKEHOLDERS
COMPETITORS
(INCUMBENTS)
NEW ENTRANTS
(INSURGENTS)
SUBSTITUTE PRODUCTS
&SERVICES

FORESIGHT
SEGMENTS
VALUE
PROPOSITIONS
CUSTOMER
RELATIONSHIP
KEY ACTIVITIES
KEY
TRENDS
TECHNOLOGY
TRENDS
REGULATORY
TRENDS
SOCIETAL &
CULTURAL TRENDS
SOCIAL-ECONOMIC
TRENDS

MACRO-ECONOMICS
MACRO
ECONOMIC
FORCES
GLOBAL MARKET
CONDITIONS
CAPITAL
MARKETS
COMMODITIES &
OTHER RESOURCES
ECONOMIC
INFRASTRUCTURE

BUSINESS MODEL MASTERY
VIDEO

AGENDA
II III 1 2 3
DESIGN THINKING
I

DESIGN THINKING

PROTOTYPING

Once you understand business models
you can then start prototyping
business models just like
you prototype products.
“

Sergey Brin, Co-Founder Google
The more you stumble around,
the more likely you are
to stumble across
something valuable.
“

KEY
PARTNERS
KEY
ACTIVITIES
KEY
RESOURCES
CHANNELS
CUSTOMER
SEGMENTS
CUSTOMER
RELATIONSHIP
VALUE
PROPOSITIONS

KEY
PARTNERS
KEY
ACTIVITIES
KEY
RESOURCES
CHANNELS
CUSTOMER
SEGMENTS
CUSTOMER
RELATIONSHIP
VALUE
PROPOSITIONS
Guess
Guess
Guess
Guess
Guess
Guess
Guess
Guess
Guess
Guess
Guess
Guess
Guess
Guess
Guess
Guess Guess Guess
Guess Guess Guess

HYPOTHESES

HORIZONTAL
ITERATION
VERTICAL
ITERATION INCREASE
INSIGHT
ITERATE ITERATE ITERATE
GET SMARTER DURING YOUR JOURNEY

If you cannot measure it,
you cannot improve it.
“
William Thomson,
1st Baron Kelvin (26 June 1824 – 17 December 1907)
was a Belfast-born mathematical physicist and engineer.

Get your facts first,
then you can distort them
as you please.
“

TESTING

THEOF
GET OUT
BUI NGIDL

BUSINESS MODEL ENVIRONMENT
The three layers

A) BUSINESS MODEL LAYER
•  Build prototypes for your business model
•  Discuss and select the prototype you are going to
further develop

B) HYPOTHESES LAYER
•  Quantify your model with hypotheses
•  Analyse your enviroment and develop foresights
•  Build hypotheses for the market, competitors,
customers and challenges

C) TEST LAYER
•  GOOTB!!!
•  Test your hypotheses by asking customers and partners
•  Iterate your Business Model
•  Constantly test your models and reiterate

The stages of an iteractive process

NEWOLD
VJD
SHAKEN NOT STIRRED
COMBINE THE BEST OF BOTH WORLDS

VUJÀDÉ’s HOLY TRINITY
NEEDS | BUSINESS | TECHNOLOGY

VUJÀDÉ PRINCIPLES
DEVELOPMENT OF INSIGHTS DURING PROCESS
TIME

WRAP-UP
REFLECTION

Albert Einstein
The important thing is not to stop
questioning.
Curiosity has its own reason for existing.
“

Vujàdé Ltd.
Supporting Forward Thinking
Elfenaustrasse 3
CH-2502 Biel/Bienne
Switzerland
+41 (0)32 32 32 300
contact@vujade.com
www.vujade.com

3+7 QUESTIONS
TO ASSESS YOUR
BUSINESS MODEL
www.businessmodelalchemist.com/2011/09/7-questions-to-assess-your-business-model-design.html

3+7 QUESTIONS TO ASSESS YOUR BUSINESS MODEL
FIRST,
ASK YOURSELF HOW WELL YOUR VALUE
PROPOSITION IS GETTING YOUR TARGET
CUSTOMER’S JOB DONE.
BASICS

SECONDLY,
ASK YOURSELF HOW MANY PEOPLE OR
COMPANIES THERE ARE WITH A SIMILAR
JOB-TO-BE-DONE.
BASICS

THIRDLY,
ASK YOURSELF HOW IMPORTANT THIS
JOB REALLY IS FOR THE CUSTOMER
AND IF SHE ACTUALLY HAS A BUDGET
TO SPEND ON IT.
BASICS

#1
HOW MUCH DO SWITCHING COSTS
PREVENT YOUR CUSTOMERS FROM
CHURNING?

#1
How much do switching costs prevent your customers from churning?
The time, effort, or budget a customer has to spend to switch from one product or service
provider to another is called “switching costs”. The higher the switching costs, the likelier
a customer is to stick to one provider rather than to leave for the products or services of
a competitor.
A great example of designing switching costs into a business model is Apple’s introduction
of the iPod in 2001. Do you remember how Steve Jobs heralded his new product with the
catchphrase “thousand songs in a pocket”? Well, that was more than a product innovation
focusing on storage. It was a business model strategy to get customers to copy all their
music into iTunes and their iPod, which would make it more difficult for them to switch
to competing digital music players. In a time when little more than brand preferences
were preventing people from switching from one player to another this was a smart move
and laid the foundation for Apple’s subsequent stronghold on music and later innovations.

#2
HOW SCALABLE IS
YOUR BUSINESS MODEL?

#2
How scalable is your business model?
Scalability describes how easy it is to expand a business model without equally increasing
its cost base. Of course software- and Web-based business models are naturally more
scalable than those based on bricks and mortar, but even among digital business models
there are large differences.
An impressive example of scalability is Facebook. With only a couple of thousand of
engineers they create value for hundreds of millions of users. Only few other companies in
the world have such a ratio of users per employee. A company that has pushed the limits
even further is the social gaming company Zynga. By building games like Farmville or
Cityville on the back Facebook, the world’s largest social network, they could benefit from
Facebook’s reach (and scale) without having to build it themselves. A company that quickly
learned its lessons regarding scalability was peer-to-peer communication company Skype
in its early days. Their customer relationship collapsed under the weight of large numbers,
when they were signing up ten thousands of users per day. They quickly had to adapt their
business model to become more scalable.

#3
DOES YOUR BUSINESS MODEL
PRODUCE RECURRING REVENUES?

#3
Does your business model produce recurring revenues?
Recurring revenues are best explained through a simple example.
When a newspaper earns revenues from the sales at a newsstand they are transactional,
while revenues from a subscription are recurring. Recurring revenues have two major
advantages. Firstly, the costs of sales incur only once for repetitive revenues. Secondly,
with recurring revenues you have a better idea of how much you will earn in the future.
A nice example of recurring revenues is Redhat, which provides open source software and
support to enterprises based on a continuous subscription basis. In this model clients don’t
pay for new software versions because it is continuously updated. In the world of Software
as a Service (Saas) these types of subscriptions are now the norm. This contrasts with
Microsoft, which sells most of its software in the form of licenses for every major release.
However, there is another aspect to recurring revenues, which are additional revenues
generated from an initial sales. For example, when you buy a printer, you continue to
spend on cartridges, or when you buy a game console, you’ll continue to spend on games.
Or have a look at Apple. While they still earn most of their revenues from hardware sales,
the recurring revenues from content and apps is steadily growing.

#4
DO YOU EARN BEFORE YOU SPEND?

#4
Do you earn before you spend?
This one goes without saying. The more you can earn before spending, the better.
Dell pioneered this model in the computer hardware manufacturing industry. By assembling
on order after selling directly they managed to escape the terrible inventory depreciation
costs of the hardware industry. Results showed how powerful it is to earn before spending.

#5
HOW MUCH DO YOU GET
OTHERS TO DO THE WORK?

#5
How much do you get others to do the work?
This is probably one of the least publicized weapons of mass destruction in business model
design. What could be more powerful than getting others to do the work while you earn
the money?
In the bricks and mortar world IKEA gets us to assemble the furniture we buy from them.
We do the work. They save money. On the web Facebook gets us to post photos, create and
participate in conversations, and “like” stuff. That’s the real value of Facebook, entirely
created by users, while they simply provide the platform. We do the work. They earn the
sky-high valuations of their shares.
Previously mentioned Redhat crafted another smart business model based on other
people’s work. Their entire business model is built on top of software developed by the
open source software development community. This allowed them to substantially reduce
their development costs and compete head-on with larger companies like Microsoft.
A more malicious business model in which others do the work is the one practiced by so-
called patent trolls. In this model patents are purchased with the sole intention of suing
successful companies to extract payments from them.

#6
DOES YOUR BUSINESS MODEL
PROVIDE BUILT-IN PROTECTION
FROM COMPETITION?

#6
Does your business model provide built-in protection from
competition?
A great business model can provide you with a longer-term protection from competition
than just a great product.
Apple’s main competitive advantage arises more from its powerful business model than
purely from its innovative products. It’s easier for Samsung, for instance, to copy the
iPhone than to build an ecosystem like Apple’s appstore, which caters to developers and
users alike and hosts hundred thousands of applications.

#7
IS YOUR BUSINESS MODEL
BASED ON A
GAME CHANGING COST STRUCTURE?

#7
Is your business model based on a game changing cost structure?
Cutting costs is a long practiced sport in business. Some business models, however,
go beyond cost cutting by creating value based on a totally different cost structure.
Skype, for example, provides calls and communication almost like a conventional telecom
company, but for free or for a very low cost. They can do this because their business model
has a very different cost structure. In fact, Skype’s model is based on the economics of
a software company, while a telecom provider’s model is based on the economics of a
network company. The former’s costs are mainly people; while the latter’s cost include
huge capital expenditures in infrastructure.
Similarly, Bharti Airtel, one of the world’s largest mobile network providers, has
substantially modified its cost structure by getting rid of their entire network and IT.
By buying in network capacity on a variable cost basis from a consortium around network
equipment manufacturer Ericsson and IBM, they can now offer among the lowest prices
for mobile telephony globally.
Redhat, which was mentioned previously, also built its business model on a game changing
cost structure: by smartly building its own model on top of other people’s work.

“The secret of getting ahead is getting started.
The secret of getting started is breaking
your complex overwhelming tasks into small
manageable tasks, and then
starting on the first one.”
“

Baden-Württemberg connected: BMGen-Seminar 2014.05.15

Empfohlen

Empfohlen

Weitere ähnliche Inhalte

Andere mochten auch

Andere mochten auch (20)

Ähnlich wie Baden-Württemberg connected: BMGen-Seminar 2014.05.15

Ähnlich wie Baden-Württemberg connected: BMGen-Seminar 2014.05.15 (20)

Mehr von Vujàdé

Mehr von Vujàdé (20)

Kürzlich hochgeladen

Kürzlich hochgeladen (20)

Baden-Württemberg connected: BMGen-Seminar 2014.05.15