“the design of business modelsimi.ntu.edu.sg/NewsEvents/Events/PublishingImages/... · business...

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business model innovation & design NTU Institute for Media Innovation alex osterwalder yves pigneur ? How does one design successful business models? too little attention is given to the design of business models too odels David J. Teece UC Berkeley

Transcript of “the design of business modelsimi.ntu.edu.sg/NewsEvents/Events/PublishingImages/... · business...

Page 1: “the design of business modelsimi.ntu.edu.sg/NewsEvents/Events/PublishingImages/... · business model innovation & design NTU Institute for Media Innovation alex osterwalderae os

business modelinnovation & design

NTU Institute for Media Innovation

alex osterwaldera e os e a dyves pigneur

?How does one design successful business models?

too little attention is given to the design of business models “too

”odels

David J. TeeceUC Berkeley

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conceptualmodeling

1designmethod

2computerized

tools

3business

modeldesign thinking

computer-aided

business model 1

common language

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geBusiness Model Canvas

to describe, challenge, design, and invent business models more systematically

customer segment

defines the different groups of people or organizations the company aims to help with getting a job done

images by JAM

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value proposition

images by JAM

describes the bundle of products and services that create value for a specific customer segments

distribution channel

images by JAM

outlines the customer touch points through which the company reach the customer segments to communicate and deliver a value proposition

customer relationship

images by JAM

describes how an organization gets, keeps, and grows each customer segment and what type of relationships it entertains with each of them

revenue stream

images by JAM

represents the type of revenues an organization generates from each customer segment for a specific value proposition

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key resources

images by JAM

describes the most important assets, capabilities and know-how required to make a business model work

key activities

images by JAM

present the most important tasks and processes a company must perform to make its business model work

key partners

images by JAM

outlines the network of suppliers and partners that leverage the business model

cost structure

images by JAM

describes all costs incurred to operate a business model

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customer segments

key partners

cost structure

revenue streamsdistribution

channels

customer relationshipskey activities

keyresources

value proposition

images by JAM2222

VALUEPROPOSITION

CUSTOMERRELATIONSHIP

CUSTOMERSEGMENT

DISTRIBUTIONCHANNEL

KEYACTIVITIES

KEYRESOURCES

KEYPARTNERS

COST REVENUES

The Business Model Canvas

http://www.businessmodelgeneration.com

DIGITALPLATFORM

DIGITALLIFESTYLE

DIGITALHUB

HARDWARE MANUFACTURER

1998 2001 2007 2010

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?What was apple’s business model for the iPod?

buzz group how much did the cost of home coffee consumption change for Swiss

households over the last couple of years?

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600% to 800% more ?describe the Nespresso’s

business model using the canvas

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RESULTS average growth of 30% p.a. since 2000

in 2011, 3 billion CHF annual revenue with 1 product line

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2design thinking

analyticalthinking

intuitivethinking

designthinking

Roger MartinRotman School @ Toronto

business people don’t just need to understand designers better; they need to become designers

“bus

”ners

[source: Sony Pictures]

YPING

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[source: Sony Pictures]

[source: Sony Pictures]

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[source: flickr]

Jim Glymph,Gehry PartnerJimGe

if you freeze to an idea too quickly, you fall in love with it ...“if yo

” it ... Jim Glymph,Gehry Partner

if you refine it too quickly you become attached to it ...“if yo

”o it ...

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?what does it means for business models?

prototyping

51

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?where is solar energy particularly useful?

JJJJJJJJJJJJJJJiiiiiiiigggggggggaaaaaarrrrrrrrrrrrrrrrrrrrrrrrrrrr SSSSSSSSSSSSSSSSSSSSSSShhhhhhaaaaaaaaaaaaaaaaahhhhhh5656566566

in the contexxt ooff sshhoppppiingg ccenteerrs

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SOLAR PANEL INSTALLATION

SALES FORCE

MID- TO LARGE ORGANIZATIONS

PURCHASING FEE

LONG TERMRELATIONS

SOLAR EXPERTS

PATENTS

CUSTOMER ACQUISITION

PANEL MANUFACTURERS

INSTALL PANELS

VALUEPROPOSITION

CUSTOMERRELATIONSHIP

CUSTOMERSEGMENT

DISTRIBUTIONCHANNEL

KEYACTIVITIES

KEYRESOURCES

KEYPARTNERS

COST REVENUES

1

?why don’t the retail stores and shopping centers

switch to solar energy?

60

why don’t the re

tail stores

and

shopping c

enters switch t

o

solar ener

gy?

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?what if we gave the panels away for free to eliminate the hurdle of upfront investment

VALUEPROPOSITION

CUSTOMERRELATIONSHIP

CUSTOMERSEGMENT

DISTRIBUTIONCHANNEL

KEYACTIVITIES

KEYRESOURCES

KEYPARTNERS

COST REVENUES

2K

SOLAR EXPERTS SALES FORCE

MID- TO LARGE ORGANIZATIONS

INSTALLING & MANAGING

INSTALLATIONS

INSTALL & MANAGE

INSTALLATIONS

PANEL MANUFACTURERS

SOLAR PANEL INSTALLATIONSOLAR PANEL INSTALLATION

POWER PURCHASING AGREEMENTS

REGULAR PPA PAYMENTS

ACQUIRING PPAS

XPERTS

SOLAR ENERGY INSTALLATIONS

STALLA

ACQUIRE PPAS

?but how to finance the upfront investment

64

but how to f

inance the

upfront in

vestment

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VALUEPROPOSITION

CUSTOMERRELATIONSHIP

CUSTOMERSEGMENT

DISTRIBUTIONCHANNEL

KEYACTIVITIES

KEYRESOURCES

KEYPARTNERS

COST REVENUES

3K

LOW-RISK INVESTMENT

RETURN FINANCIAL INSTITUTIONS

INSTITUTIONAL

& PRIVATE INVESTORS

INVESTMENT FEE

ACQUIRING INVESTORS

SOLAR EXPERTS

CHANNEL

SALES FORCE

MID- TO LARGE ORGANIZATIONS

INSTALLING & MANAGING

INSTALLATIONS ACQUIRING

PPAS

ACQUIRE PPAS

ACQU

INSTALL & MANAGE

INSTALLATIONS

REGULAR PPA PAYMENTS

R TS

SOLAR ENERGY INSTALLATIONS

POWER PURCHASING AGREEMENTS

REGULAR PPAPAYMENTS

DEVELOPMENT & MONITORING FEE

ACPPACKAGE & SELL PPAS

EINST

POOL OF PPAS

RESULTS

SunEdison is now the largest provider of solar

power in the US

SunEdison bought in ’09 by MEMC Electronic Materials

for USD 200 million

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3computer-aided

d

727272BusinessModelGeneration.com

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conceptualmodeling

1designmethod

2computerized

tools

3business

modeldesign thinking

computer-aided