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Startup MBA 2.1 - Business models - prototyping and moat design
- 2. hello@foundercentric.com foundercentric.com @foundercentric ! Mailing list: http://bit.ly/fc-list
- 4. Alex Osterwalder’s Business Model Canvas
- 5. Value propositions aren’t just lists of features. ! It’s how you create joy or relieve pain. You sell your value proposition...
- 6. Very specific customer segments are easier to think about. ! It’s better to have multiple specific segments than a single generic one. To a customers segment
- 7. Who you reach through some channel Channel has 2 parts: how they hear about it and how they actually buy it
- 8. How do you stop them from forgetting about you next time? ! How do you increase lock-in and retention? You have an ongoing relationship to create retention and lock-in
- 9. The right side of the canvas is customer-facing. ! It’s about reaching & keeping the customer and generating revenue. That’s how you make money.
- 10. Innovation on the left half of the canvas is about managing costs The left side is how you create the value proposition.That costs you money.
- 11. What is the activity so strategically core to your business that you would never outsource it? To create the value proposition, you do certain Key Activities
- 12. Key Resources are things competitors would have to replicate in order to compete. ! It could be your tech, your patents, or even your user- base. Using your Key Resources
- 13. Your company has certain core competencies used to create & deliver the value proposition. ! Everything else can potentially come from a partner. Anything you don’t do or have yourself, you get from a partner.
- 14. There are lots of ways to use the canvas
- 18. Los Angeles Times Magazine, 1992
- 19. Question What is ebay’s business model for collectors?
- 20. Sell anything
- 28. Sell anything CollectorsBuy hard- to-find products Indie merchants % commission Ads SEO The most buyers
- 29. Sell anything CollectorsBuy hard- to-find products Indie merchants % commission Ads SEO The most buyers
- 30. Sell anything CollectorsBuy hard- to-find products Indie merchants % commission Ads SEO The most buyers The most sellers
- 31. Sell anything CollectorsBuy hard- to-find products Indie merchants % commission Ads SEO The most buyers The most sellers
- 32. Sell anything CollectorsBuy hard- to-find products Indie merchants % commission Ads SEO The most buyers The most sellers The most products
- 33. Sell anything CollectorsBuy hard- to-find products Indie merchants % commission Ads SEO The most buyers The most sellers The most products Acquire users
- 34. Sell anything CollectorsBuy hard- to-find products Indie merchants % commission Ads SEO The most buyers The most sellers The most products Acquire users Acquire users
- 35. Sell anything CollectorsBuy hard- to-find products Indie merchants % commission Ads SEO The most buyers The most sellers The most products Acquire users Acquire users Ads
- 36. Sell anything CollectorsBuy hard- to-find products Indie merchants % commission Ads SEO The most buyers The most sellers The most products Acquire users Acquire users Ads Ratings
- 37. What makes ebay’s model so strong? The Key Resources are difficult to reproduce since they depend on being the biggest
- 38. Question Why has ebay been so resistant to competitors? What makes its model so strong?
- 39. Sell anything CollectorsBuy hard- to-find products Indie merchants % commission Ads SEO The most buyers The most sellers The most products Acquire users Acquire users Ads Ratings
- 40. Ebay’s network effect Ebay’s Key Resources are all a result of being the biggest, so they always have an edge over any new competitor
- 41. Does this capture every detail of ebay’s business? What about Paypal? Power sellers? Buy-it-now?
- 42. Business models are sketches Sketches aren’t meant to be perfect. They’re a disposable tool for understanding and communication.
- 43. Question Why do Chrome and Android matter so much to Google?
- 44. Searchers
- 48. So who is paying?
- 51. Find anything Searchers .000X / search $ / click Advertisers
- 52. Find anything Searchers Advertisers .000X / search $ / click Cost- effective advertising
- 53. Find anything Searchers Advertisers .000X / search $ / click Cost- effective advertising Measurable
- 54. Find anything Searchers Advertisers .000X / search $ / click Cost- effective advertising Measurable Any budget
- 55. Find anything Searchers Advertisers .000X / search $ / click Cost- effective advertising Measurable Any budget Big audience
- 56. Find anything Searchers Advertisers .000X / search $ / click Cost- effective advertising Big audience
- 57. Find anything Searchers Advertisers .000X / search $ / click Cost- effective advertising Big audience
- 58. Those are the basics. But how do they get and keep users?
- 59. Find anything Searchers Advertisers .000X / search $ / click Cost- effective advertising Big audience
- 60. Find anything Searchers Advertisers .000X / search $ / click Cost- effective advertising Word of mouth? Big audience
- 61. Find anything Searchers Advertisers .000X / search $ / click Cost- effective advertising Word of mouth? Brand? Big audience
- 62. Find anything Searchers Advertisers .000X / search $ / click Cost- effective advertising Word of mouth? Brand? Twitter? Big audience
- 63. Seems weak. When the answer seems suspicious, keep looking.
- 64. When you searched for something today, why did you use Google?
- 65. Find anything Searchers Advertisers .000X / search $ / click Cost- effective advertising Word of mouth? Brand? Twitter? Big audience
- 66. Find anything Searchers Advertisers .000X / search $ / click Cost- effective advertising Word of mouth? Brand? Twitter? Big audience Greatproduct?
- 67. Find anything Searchers Advertisers .000X / search $ / click Cost- effective advertising Word of mouth? Brand? Twitter? Big audience Greatproduct? No other options?
- 68. Find anything Searchers Advertisers .000X / search $ / click Cost- effective advertising Word of mouth? Brand? Twitter? Big audience Greatproduct? No other options?
- 69. Find anything Searchers Advertisers .000X / search $ / click Cost- effective advertising Word of mouth? Brand? Twitter? Big audience
- 70. Find anything Searchers Advertisers .000X / search $ / click Cost- effective advertising Word of mouth? Brand? Twitter? Big audience It’s the default
- 72. Find anything Searchers Advertisers .000X / search $ / click Cost- effective advertising Word of mouth? Brand? Twitter? Big audience It’s the default
- 73. Find anything Searchers Advertisers .000X / search $ / click Cost- effective advertising Word of mouth? Brand? Twitter? Big audience It’s the default Mozilla’s Firefox
- 74. Find anything Searchers Advertisers .000X / search $ / click Cost- effective advertising Word of mouth? Brand? Twitter? Big audience It’s the default Mozilla’s Firefox Apple’s Safari
- 75. Find anything Searchers Advertisers .000X / search $ / click Cost- effective advertising Word of mouth? Brand? Twitter? Big audience It’s the default Mozilla’s Firefox Apple’s Safari
- 76. Find anything Searchers Advertisers .000X / search $ / click Cost- effective advertising Big audience It’s the default Mozilla’s Firefox Apple’s Safari Browser partnerships
- 77. Find anything Searchers Advertisers .000X / search $ / click Cost- effective advertising Big audience It’s the default Mozilla’s Firefox Apple’s Safari Browser partnerships $X00 M / year
- 78. Find anything Searchers Advertisers .000X / search $ / click Cost- effective advertising Big audience It’s the default Mozilla’s Firefox Apple’s Safari Browser partnerships $X00 M / year
- 79. Question Why do Chrome and Android matter so much to Google?
- 80. Find anything Searchers Advertisers .000X / search $ / click Cost- effective advertising Big audience It’s the default Mozilla’s Firefox Apple’s Safari Browser partnerships $X00 M / year
- 81. Find anything Searchers Advertisers .000X / search $ / click Cost- effective advertising Big audience It’s the default Mozilla’s Firefox Apple’s Safari Browser partnerships $X00 M / year
- 82. Find anything Searchers Advertisers .000X / search $ / click Cost- effective advertising Big audience It’s the default Mozilla’s Firefox Apple’s Safari Browser partnerships $X00 M / year
- 83. Find anything Searchers Advertisers .000X / search $ / click Cost- effective advertising Big audience It’s the default $X00 M / year
- 84. Find anything Searchers Advertisers .000X / search $ / click Cost- effective advertising Big audience It’s the default $X00 M / year
- 85. Find anything Searchers Advertisers .000X / search $ / click Cost- effective advertising Big audience It’s the default $X00 M / year Build a browser
- 86. Find anything Searchers Advertisers .000X / search $ / click Cost- effective advertising Big audience It’s the default $X00 M / year Build a browser 35% browser share
- 87. Find anything Searchers Advertisers .000X / search $ / click Cost- effective advertising Big audience It’s the default $X00 M / year Build a browser 35% browser share Our own browser
- 88. Find anything Searchers Advertisers .000X / search $ / click Cost- effective advertising Big audience It’s the default $X00 M / year Build a browser 35% browser share Our own browser Phone default search
- 89. Find anything Searchers Advertisers .000X / search $ / click Cost- effective advertising Big audience It’s the default $X00 M / year Build a browser 35% browser share Our own browser Phone default search iOS etc...
- 90. The business model holds the answer If Google didn’t win with Chrome and Android, they would be forced to spend a fortune on partnerships (and might even lose their whole business)
- 91. In review:
- 92. You sell your value proposition...
- 93. To a customers segment
- 94. Who you reach through some channel
- 95. You have an ongoing relationship to create retention and lock-in
- 96. That’s how you make money.
- 97. The left side is how you create the value proposition.That costs you money.
- 98. To create the value proposition, you do certain Key Activities
- 99. Using your Key Resources
- 100. Anything you don’t do or have yourself, you get from a partner.
- 101. Final business model tips • Separate colors for each customer segment
- 102. Final business model tips • Separate colors for each customer segment • Use as few sticky notes as possible
- 103. Final business model tips • Separate colors for each customer segment • Use as few sticky notes as possible • Focus on quick communication, not perfect representation
- 104. Final business model tips • Separate colors for each customer segment • Use as few sticky notes as possible • Focus on quick communication, not perfect representation • Explore lots of possibilities
- 105. Questions?
- 106. Zappos
- 107. Question How did Zappos survive against Amazon and others?
- 108. Huge shoe selection U.S. shoe buyers Display ads $ / pair Returns Fast & cheap Logistics & fulfillment Marketing MarketingWare- houses Support staff Inventory Re-target WH staff
- 109. Huge shoe selection U.S. shoe buyers Display ads $ / pair Returns Fast & cheap Logistics & fulfillment Marketing MarketingWare- houses Support staff Inventory Re-target WH staff
- 110. Huge shoe selection U.S. shoe buyers Display ads $ / pair Returns Fast & cheap Logistics & fulfillment Marketing MarketingWare- houses Support staff Inventory Re-target WH staff
- 111. Huge shoe selection U.S. shoe buyers Display ads $ / pair Returns Fast & cheap Logistics & fulfillment Marketing MarketingWare- houses Support staff Inventory Re-target WH staff
- 112. Huge shoe selection U.S. shoe buyers Display ads $ / pair Returns Fast & cheap Shoe- focused logistics & fulfillment Marketing MarketingWare- houses Support staff Inventory Re-target WH staff
- 113. Huge shoe selection U.S. shoe buyers Display ads $ / pair Returns Fast & cheap Shoe- focused logistics & fulfillment Marketing MarketingWare- houses Support staff Inventory Re-target WH staff
- 114. Huge shoe selection U.S. shoe buyers Display ads $ / pair Returns Fast & cheap Shoe- focused logistics & fulfillment Marketing Marketing WH staff Support staff Inventory Re-target Ware- houses
- 115. Huge shoe selection U.S. shoe buyers Display ads $ / pair Returns Fast & cheap Shoe- focused logistics & fulfillment Marketing Marketing Support staff Inventory Re-target Ware- houses
- 116. Huge shoe selection U.S. shoe buyers Display ads “Try it on at home” returns $ / pair Returns Fast & cheap Shoe- focused logistics & fulfillment Marketing Marketing Support staff Inventory Re-target Ware- houses
- 117. Huge shoe selection U.S. shoe buyers Display ads “Try it on at home” returns $ / pair Returns Fast & cheap Shoe- focused logistics & fulfillment Marketing Marketing Support staff Inventory Re-target Ware- houses
- 118. Huge shoe selection U.S. shoe buyers Display ads Ridiculous customer service “Try it on at home” returns $ / pair Returns Fast & cheap Shoe- focused logistics & fulfillment Marketing Marketing Support staff Inventory Re-target Ware- houses
- 119. Huge shoe selection U.S. shoe buyers Display ads Ridiculous customer service “Try it on at home” returns $ / pair Returns Fast & cheap Shoe- focused logistics & fulfillment Marketing Marketing Support staff Inventory Re-target Ware- houses
- 120. Huge shoe selection U.S. shoe buyers Display ads Ridiculous customer service “Try it on at home” returns $ / pair Returns Fast & cheap Shoe- focused logistics & fulfillment Marketing Marketing Support staff Inventory Re-target Ware- houses Love