Post on 13-May-2015
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Designing Your Business Model
Speaker: Michael H. Huber, MBA
Huber Planning“Implementing Your Vision Through Integrated
Marketing and Financial Planning”
Also brought to you by:
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About the Speaker
• Development of business models, plans, marketing plans, and budgets for numerous businesses in Vermont.
• Experience in software implementation for manufacturing, retail, hospital industries.
• Controller for steel fabrication and food processing companies.
• Wants More Snow!
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Video
Managing as Designing - Multiple ModelsJim Glymph of Gehry Partners:
“If you freeze an idea too quickly, you fall in love with it. If you refine it too quickly, you become attached to it and it becomes very hard to keep exploring, to keep looking for better. The crudeness of the early models in particular is very deliberate.”
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VALUEPROPOSITION
COSTSTRUCTURE
CUSTOMERRELATIONSHIP
TARGETCUSTOMER
DISTRIBUTIONCHANNEL
KEYRESOURCES
KEYPARTNERS
KEYACTIVITIES
REVENUESTREAMS
INFRASTRUCTURE CUSTOMEROFFER
FINANCE
A business model describes the value an organization offers to various customers and portrays the capabilities and partners required for creating, marketing, and delivering this value and relationship capital with the goal of generating profitable and
sustainable revenue streams.
Model concept devised by Alexander Osterwalder and Ives Peigner, Authors of Business Model Generation www.businessmodelalchemist.com
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VALUEPROPOSITION
COSTSTRUCTURE
CUSTOMERRELATIONSHIP
TARGETCUSTOMER
DISTRIBUTIONCHANNEL
KEYRESOURCES
KEYPARTNERS
KEYACTIVITIES
REVENUESTREAMS
gives an overall view of a company's bundle of products and services
portrays the network of cooperative
agreements with other companies
describes the channels to communicate and
get in touch with customers
describes the arrangement of
resources
explains the relationships a
company establishes with its customers
sums up the monetary consequences to run a
business model
describes the revenue streams through which
money is earned
describes the customers a company wants to offer value to
outlines the activities/ capabilities required to
run a company's business model
INFRASTRUCTURE CUSTOMER
OFFER
FINANCE
Describing A Company’s Business Model
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Skype
free VoIP & value added services
software development
website
global(non segmented)
ebay
Deliver Voice & Video Quality
large scalelow margin
internetsoftware
development
free voice-over-IP VoIP telephony & value-added services
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VALUEPROPOSITION
Scoops of Premium Ice Cream
OFFER
Describing a Company’s Offer
Example: Ben & Jerry’s Early Years
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VALUEPROPOSITION
TARGETCUSTOMER
Burlington Area Res.Tourists
CUSTOMEROFFER
Describing Who a Company Offers Value to
Example: Ben & Jerry’s Early Years
Scoops of Premium Ice Cream
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VALUEPROPOSITION
TARGETCUSTOMER
DISTRIBUTIONCHANNEL
Scoops of PremiumIce Cream
Local StoreHigh Visibility
Burlington Area Res.Tourists
CUSTOMEROFFER
Describing How A Company Reaches Its Customers
Example: Ben & Jerry’s Early Years
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VALUEPROPOSITION
TARGETCUSTOMER
CUSTOMERRELATIONSHIP
Scoops of PremiumIce Cream
Know OwnersFun
Local Burlington Res.Tourists
CUSTOMEROFFER
Describing the Relationships a Company Builds
Example: Ben & Jerry’s Early Years
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TARGETCUSTOMER
REVENUESTREAM
Premium Price Burlington Area Res.Tourist
FINANCE
VALUEPROPOSITION
Scoops of Premium Ice Cream
OFFER CUSTOMER
Describing How a Company Makes Money
Example: Ben & Jerry’s Early Years
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KEY ACTIVITIES
VALUEPROPOSITION
Making Unique Ice Cream
Community Involvement
Scoops of PremiumIce Cream
OFFERINFRASTRUCTURE
Describing What Capabilities/Activities Are Required
Example: Ben & Jerry’s Early Years
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Describing What Resources Are Required
VALUEPROPOSITION
KEY ACTIVITIES
KEYRESOURCES
Scoops of PremiumIce Cream
Ben & JerryLocal Support
Making Unique Ice Cream
CommunityInvolvement
INFRASTRUCTURE OFFER
Example: Ben & Jerry’s Early Years
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Describing the Partners That Leverage the Business Model
VALUEPROPOSITION
PARTNERNETWORK
KEYRESOURCES
Scoops of PremiumIce Cream
Ben & JerryLocal Support
Local DairiesLocal Restaurants
INFRASTRUCTURE OFFER
Example: Ben & Jerry’s Early Years
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VALUEPROPOSITION
COSTSTRUCTURE
EquipmentBuilding/Cart
Scoops of PremiumIce Cream
FINANCEINFRASTRUCTURE OFFER
Describing the Costs of a Business Model
KEYRESOURCES
Ben & JerryLocal Support
Example: Ben & Jerry’s Early Years
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VALUEPROPOSITION
COSTSTRUCTURE
CUSTOMERRELATIONSHIP
TARGETCUSTOMER
DISTRIBUTIONCHANNEL
KEYRESOURCES
KEYPARTNERS
KEY ACTIVITIES
REVENUESTREAMS
Scoops of PremiumIce Cream
Make Unique Ice Cream
Community Involvement
Local StoreHigh Visibility
Ben & JerryLocal Support
Know OwnersFun
EquipmentBuilding/Cart
Premium Priced
Burlington Area Res.Tourists
Local DairiesRestaurants
INFRASTRUCTURE CUSTOMER
OFFER
FINANCE
Example: Ben & Jerry’s Early Years
www.huberplanning.com huberplanning@gmail.com
VALUEPROPOSITION
COSTSTRUCTURE
CUSTOMERRELATIONSHIP
TARGETCUSTOMER
DISTRIBUTIONCHANNEL
KEYRESOURCES
KEYPARTNERS
KEY ACTIVITIES
REVENUESTREAMS
Scoops of PremiumIce Cream
Make Unique Ice Cream
Community Involvement
Local StoreHigh Visibility
Ben & JerryLocal Support
Know OwnersFun
EquipmentBuilding/Cart
Premium Priced
Burlington Area Res.Tourists
Local DairiesNon-Profits
INFRASTRUCTURE CUSTOMER
OFFER
FINANCE
Example: Ben & Jerry’s
Limitations for Larger Distribution/Revenue
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VALUEPROPOSITION
COSTSTRUCTURE
CUSTOMERRELATIONSHIP
TARGETCUSTOMER
DISTRIBUTIONCHANNEL
KEYRESOURCES
KEYPARTNERS
KEY ACTIVITIES
REVENUESTREAMS
Scoops & PintsOf Premium Ice Cream
(Now a Variety of products)
Make Unique Ice Cream
Social Action
Shopping AreasBig Box GrocersBrand
Mass
Many Scoop ShopsLarge Manufacturing
Premium Priced
Higher Income Shoppers
Socially Conscious
National DistributorNational Marketing
INFRASTRUCTURE CUSTOMER
OFFER
FINANCE
Example: Ben & Jerry’s
Larger Distribution/Revenue
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VALUEPROPOSITION
COSTSTRUCTURE
CUSTOMERRELATIONSHIP
TARGETCUSTOMER
DISTRIBUTIONCHANNEL
KEYRESOURCES
KEYPARTNERS
KEY ACTIVITIES
REVENUESTREAMS
Bottled Delicious FoodFresh IngredientsLocally Sourced
Complete Traceability
Develop RecipesSourcing Ingredients
StrategicallyQuality Control
Local CooperativesHealth Food Stores
Independent Markets
Consumer Products Goods Background
Chef
Mass- CustomizedDirect Feedback
R&DInventory
Production Costs
Premium PricedRetail
Local FarmsCo-Packer
Trade Associations
INFRASTRUCTURE CUSTOMER
OFFER
FINANCE
Health & Sustainability Conscious
New England Area
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Test Your Model
• Value Proposition– Product/Service, Market Type, Competition
• Customer Segments– Problem, Customer, User, Payer
• Channels
• Key Partners
• Cost and Revenue Streams
…Enough fun! Now write a Business Plan!
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Resources• Open Innovation:
http://www.openinnovation.net/• Business Model Generation:
www.businessmodelalchemist.com• Business Model Canvas:
www.businessmodelgeneration.com/downloads• Steve Blank – Entrepreneur, Instructor at
Columbia: www.steveblank.com
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Any Questions?
Huber Planning“Implementing Your Vision Through Integrated
Marketing and Financial Planning”