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Business Model Canvas* for
designing e-services based on open
               data
           * By A. Osterwalder
            Maxim Arzumanyan
  State University of Telecommunications

           Maxim Arzumanyan, 3rd ISS Student school 2013
Two different planets…

Business people                             Software developers




           Maxim Arzumanyan, 3rd ISS Student school 2013
Imagine…

                                               in which concepts
                                              will you describe it?



You have an idea about
  the new e-service…



              Maxim Arzumanyan, 3rd ISS Student school 2013
• «…so you should have the picture
  that helps you to understand each
  other. Without this picture – all your
  talks is nothing…
• People may say the same word and
  don’t understand you each other.
  But when you brain your
  understanding, map it to the formal
  chart, picture, diagram, it is much
  better then any talk or any text…»
                            T. Gavrilova

    Maxim Arzumanyan, 3rd ISS Student school 2013
Business Model
    Canvas
Alexander Osterwalder
         Maxim Arzumanyan, 3rd ISS Student school 2013
Video




Maxim Arzumanyan, 3rd ISS Student school 2013
Slide from Alexander Osterwalder: Business
                                                Models Reloaded (SKOLKOVO open lecture)




Maxim Arzumanyan, 3rd ISS Student school 2013
Slide from Alexander Osterwalder: Business
                                                Models Reloaded (SKOLKOVO open lecture)




Maxim Arzumanyan, 3rd ISS Student school 2013
Slide from Alexander Osterwalder: Business
                                                Models Reloaded (SKOLKOVO open lecture)




Maxim Arzumanyan, 3rd ISS Student school 2013
Slide from Alexander Osterwalder: Business
                                                Models Reloaded (SKOLKOVO open lecture)




Maxim Arzumanyan, 3rd ISS Student school 2013
Slide from Alexander Osterwalder: Business
                                                Models Reloaded (SKOLKOVO open lecture)




Maxim Arzumanyan, 3rd ISS Student school 2013
Slide from Alexander Osterwalder: Business
                                                Models Reloaded (SKOLKOVO open lecture)




Maxim Arzumanyan, 3rd ISS Student school 2013
Slide from Alexander Osterwalder: Business
                                                Models Reloaded (SKOLKOVO open lecture)




Maxim Arzumanyan, 3rd ISS Student school 2013
Slide from Alexander Osterwalder: Business
                                                Models Reloaded (SKOLKOVO open lecture)




Maxim Arzumanyan, 3rd ISS Student school 2013
Slide from Alexander Osterwalder: Business
                                                Models Reloaded (SKOLKOVO open lecture)




Maxim Arzumanyan, 3rd ISS Student school 2013
Slide from Alexander Osterwalder: Business
                                                             Models Reloaded (SKOLKOVO open lecture)




ACTIVITIES
                                                                                VALUE




                       Finance

             Maxim Arzumanyan, 3rd ISS Student school 2013
Slide from Alexander Osterwalder: Business
                                                Models Reloaded (SKOLKOVO open lecture)




Maxim Arzumanyan, 3rd ISS Student school 2013
Business Model Canvas is a way to
             get…




                              mutual understanding
         Maxim Arzumanyan, 3rd ISS Student school 2013
Customizing Business Model for e-services


Means                                                                            Transactional
                          What is your key                                 Constant (social networks)    Who will use this?
integration
                          activities? What                                      Focus on what?          Only end customers
•    Government                                                               attracting; keeping;
                          should you do to                                                              (B2C), or company's
•    Social Net                                                                    extra sales
                          make service work?                                                                   (B2B)?
•    Source of open
     data                                                                                                    Personas,
                                                                                                                POV
Distribution…                                                                                             What will be the
                                                                                                          afford to attract
Try to use, not to                                 Right                                                    customers?
                          Data, infrastructure,    information/service
create…! Lots of          knowledge,               Availability
things done…              people,                                            Where to distribute,
                                                   To the right customer
integrate!                Funds (finance)          With right price          where to advertise?
                                                                             Where to promote?


                      Promotion / advertising                                          Service cost
                      Support                                                          Additional services
                      Infrastructure (hosting)                                         Advertising



                                       Maxim Arzumanyan, 3rd ISS Student school 2013
Business Model traveling map




                                                            Software
   Investors                                               developers




     Friend
                                                             Experts




           Maxim Arzumanyan, 3rd ISS Student school 2013
Bridging main actors in e-service
              development
Business                             E-service                                   Software
people                                 idea                                      Developers

                                                                   10010111010




     Business Model is the passport of your idea for the business perspective


                        Maxim Arzumanyan, 3rd ISS Student school 2013
How Design Thinking may help

Scoping               360 research                                   synthesis




     prototyping                                                    ideation




                   validation                        implementation

                    Maxim Arzumanyan, 3rd ISS Student school 2013
Example: Skype business model

                    Software                                       Individual        Internet
  Internet
                  development           Free Skype
 providers                                                          settings           users
                                           calls                                    Users who
Distribution                            Cheep calls                                  wants to
 partners                               on phones                                     call on
                                       Videoconference                                phones
 Telecom           Software
 partners                                  services
                  developers                                           Skype.com
                                                                       Equipment
                   Software                                            producers


               Software development                                                 Free
                 Bag tracking                                                    Skypeout
                                                                              Sale equipment

                           Maxim Arzumanyan, 3rd ISS Student school 2013
Business styles suitable for e-service
• Multiparty (multysided) platforms (apple, goggle)
  – Free advertising
• Free business model
  – Freemium                                          E-services
  – Bait & the key
  – Advertising
• Long tail
• Separation
• Open business models

                Maxim Arzumanyan, 3rd ISS Student school 2013
Business                                          structure the
Model Canvas                                         way you…
•   dream… about new service/business
•   think about your idea
•   communicate and discuss your idea with others
•   present your idea to investors
•   count if it’s profitable or not
•   manage and improve your service/business


                Maxim Arzumanyan, 3rd ISS Student school 2013
Images from Alexander Osterwalder: Business
                                                          Models Reloaded (SKOLKOVO open lecture)


How to structure discussions about
            your idea?




         Maxim Arzumanyan, 3rd ISS Student school 2013
Tools of Business Model
       generation




    Maxim Arzumanyan, 3rd ISS Student school 2013
Do we need a business plan? Lets
 calculate your business model!
Validation




Maxim Arzumanyan, 3rd ISS Student school 2013
Maxim Arzumanyan, 3rd ISS Student school 2013
Maxim Arzumanyan, 3rd ISS Student school 2013
T h nk
   a   Y o
   u    !
  Maxim Arzumanyan, 3rd ISS Student school 2013

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Business model generation for e-services design

  • 1. Business Model Canvas* for designing e-services based on open data * By A. Osterwalder Maxim Arzumanyan State University of Telecommunications Maxim Arzumanyan, 3rd ISS Student school 2013
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  • 3. Two different planets… Business people Software developers Maxim Arzumanyan, 3rd ISS Student school 2013
  • 4. Imagine… in which concepts will you describe it? You have an idea about the new e-service… Maxim Arzumanyan, 3rd ISS Student school 2013
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  • 6. • «…so you should have the picture that helps you to understand each other. Without this picture – all your talks is nothing… • People may say the same word and don’t understand you each other. But when you brain your understanding, map it to the formal chart, picture, diagram, it is much better then any talk or any text…» T. Gavrilova Maxim Arzumanyan, 3rd ISS Student school 2013
  • 7. Business Model Canvas Alexander Osterwalder Maxim Arzumanyan, 3rd ISS Student school 2013
  • 8. Video Maxim Arzumanyan, 3rd ISS Student school 2013
  • 9. Slide from Alexander Osterwalder: Business Models Reloaded (SKOLKOVO open lecture) Maxim Arzumanyan, 3rd ISS Student school 2013
  • 10. Slide from Alexander Osterwalder: Business Models Reloaded (SKOLKOVO open lecture) Maxim Arzumanyan, 3rd ISS Student school 2013
  • 11. Slide from Alexander Osterwalder: Business Models Reloaded (SKOLKOVO open lecture) Maxim Arzumanyan, 3rd ISS Student school 2013
  • 12. Slide from Alexander Osterwalder: Business Models Reloaded (SKOLKOVO open lecture) Maxim Arzumanyan, 3rd ISS Student school 2013
  • 13. Slide from Alexander Osterwalder: Business Models Reloaded (SKOLKOVO open lecture) Maxim Arzumanyan, 3rd ISS Student school 2013
  • 14. Slide from Alexander Osterwalder: Business Models Reloaded (SKOLKOVO open lecture) Maxim Arzumanyan, 3rd ISS Student school 2013
  • 15. Slide from Alexander Osterwalder: Business Models Reloaded (SKOLKOVO open lecture) Maxim Arzumanyan, 3rd ISS Student school 2013
  • 16. Slide from Alexander Osterwalder: Business Models Reloaded (SKOLKOVO open lecture) Maxim Arzumanyan, 3rd ISS Student school 2013
  • 17. Slide from Alexander Osterwalder: Business Models Reloaded (SKOLKOVO open lecture) Maxim Arzumanyan, 3rd ISS Student school 2013
  • 18. Slide from Alexander Osterwalder: Business Models Reloaded (SKOLKOVO open lecture) ACTIVITIES VALUE Finance Maxim Arzumanyan, 3rd ISS Student school 2013
  • 19. Slide from Alexander Osterwalder: Business Models Reloaded (SKOLKOVO open lecture) Maxim Arzumanyan, 3rd ISS Student school 2013
  • 20. Business Model Canvas is a way to get… mutual understanding Maxim Arzumanyan, 3rd ISS Student school 2013
  • 21. Customizing Business Model for e-services Means Transactional What is your key Constant (social networks) Who will use this? integration activities? What Focus on what? Only end customers • Government attracting; keeping; should you do to (B2C), or company's • Social Net extra sales make service work? (B2B)? • Source of open data Personas, POV Distribution… What will be the afford to attract Try to use, not to Right customers? Data, infrastructure, information/service create…! Lots of knowledge, Availability things done… people, Where to distribute, To the right customer integrate! Funds (finance) With right price where to advertise? Where to promote? Promotion / advertising Service cost Support Additional services Infrastructure (hosting) Advertising Maxim Arzumanyan, 3rd ISS Student school 2013
  • 22. Business Model traveling map Software Investors developers Friend Experts Maxim Arzumanyan, 3rd ISS Student school 2013
  • 23. Bridging main actors in e-service development Business E-service Software people idea Developers 10010111010 Business Model is the passport of your idea for the business perspective Maxim Arzumanyan, 3rd ISS Student school 2013
  • 24. How Design Thinking may help Scoping 360 research synthesis prototyping ideation validation implementation Maxim Arzumanyan, 3rd ISS Student school 2013
  • 25. Example: Skype business model Software Individual Internet Internet development Free Skype providers settings users calls Users who Distribution Cheep calls wants to partners on phones call on Videoconference phones Telecom Software partners services developers Skype.com Equipment Software producers Software development Free Bag tracking Skypeout Sale equipment Maxim Arzumanyan, 3rd ISS Student school 2013
  • 26. Business styles suitable for e-service • Multiparty (multysided) platforms (apple, goggle) – Free advertising • Free business model – Freemium E-services – Bait & the key – Advertising • Long tail • Separation • Open business models Maxim Arzumanyan, 3rd ISS Student school 2013
  • 27. Business structure the Model Canvas way you… • dream… about new service/business • think about your idea • communicate and discuss your idea with others • present your idea to investors • count if it’s profitable or not • manage and improve your service/business Maxim Arzumanyan, 3rd ISS Student school 2013
  • 28. Images from Alexander Osterwalder: Business Models Reloaded (SKOLKOVO open lecture) How to structure discussions about your idea? Maxim Arzumanyan, 3rd ISS Student school 2013
  • 29. Tools of Business Model generation Maxim Arzumanyan, 3rd ISS Student school 2013
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  • 31. Do we need a business plan? Lets calculate your business model!
  • 32. Validation Maxim Arzumanyan, 3rd ISS Student school 2013
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  • 34. Maxim Arzumanyan, 3rd ISS Student school 2013
  • 35. T h nk a Y o u ! Maxim Arzumanyan, 3rd ISS Student school 2013