Business model Canvas
120
BUSINESS MODEL How to design, test, and pivot business models Ibrahim Faza May 29th 2015
-
Upload
ibrahim-faza -
Category
Small Business & Entrepreneurship
-
view
91 -
download
1
Transcript of Business model Canvas
BUSINESS MODELHow to design, test, and pivot business models
Ibrahim Faza May 29th 2015
About MeIbrahim Faza @ifaza1
Entrepreneur, Investor & startup adviser
Cofounded startups in Mobile payment, Mobile Apps, Social news and IT fields.
Founding team of two telecom startups.
Seed fund founding manager @ KAUST
Mentor, coach & judge.
Telecom Engineer
?whatʼs a business model?
What is Business Model
What is Business Model
A Business Model describes the
rationale of how an organization
creates, delivers, and captures
value.
Building Business Model
1language
2strategies
3experiments
1language
2strategies
3experiments
1language
2strategies
3experimentsDesign Strategies Experiment
Business Model Canvas1
language
2strategies
3experiments
Design
Business Model Canvas
A Business Model can best be
described through nine basic building blocks cover the main areas of a business: customers, offer, infrastructure and financial viability.
1language
2strategies
3experiments
Design
Business Model Canvas
A Business Model can best be
described through nine basic building blocks cover the main areas of a business: customers, offer, infrastructure and financial viability.
The Business Model Canvas
Revenue Streams
Channels
Customer SegmentsValue PropositionsKey ActivitiesKey Partners
Key Resources
Cost Structure
Customer Relationships
Designed by: Date: Version:Designed for:
designed by: Business Model Foundry AGThe makers of Business Model Generation and Strategyzer
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. strategyzer.com
Customer Segmentsare the groups of people and/or orga-
nizations a company or organization
aims to reach and create value for
with a dedicated Value Proposition.
Value Propositionsare based on a bundle of products
and services that create value for a
Customer Segment.
Channelsdescribe how a Value Proposition is
communicated and delivered to a
Customer Segment through commu-
nication, distribution, and sales
Channels.
Customer Relationships outline what type of relationship is
established and maintained with
each Customer Segment, and they
explain how customers are acquired
and retained.
Revenue Streamsresult from a Value Proposition
successfully offered to a Customer
Segment. It is how an organization
captures value with a price that
customers are willing to pay.
Key Resourcesare the most important assets
required to offer and deliver the previ-
ously described elements.
Key Activitiesare the most important activities an
organization needs to perform well.
Key Partnerships shows the network of suppliers
and partners that bring in external
resources and activities.
Cost Structuredescribes all costs incurred to oper-
ate a business model.
Profitis calculated by subtracting the
total of all costs in the Cost Struc-
ture from the total of all Revenue
Streams.
Embed your value proposition in a viable business model to capture value for your organization. To do so, you can use the Business Model Canvas, a tool to describe how your organization creates, delivers, and captures value. The Business Model, and Value Propo-sition Canvas perfectly integrate, with the latter being like a plug-in to the former that allows you to zoom into the details of how you are creating value for customers.
The refresher of the Business Model Canvas on this spread is sufficient to work through this book and create great value propositions. Go to the online resources if you are interested in more or get Business Model Genera-tion,* the sister publication to this book.
Refresher: The Business Model Canvas
* Business Model Generation (2010), Osterwalder and Pigneur
STR
ATE
GY
ZE
R.C
OM
/ V
PD
/ IN
TRO
STR
ATE
GY
ZE
R.C
OM
/ V
PD
/ IN
TRO
Download detailed Business Model Canvas Explanation and the Business Model Canvas pdf
XVI XVII
1language
2strategies
3experiments
Design
Business Model Canvas in 3 Min.
Business Model Video
CUSTOMER SEGMENTS
which customers and users are you serving? An organization serves one or several Customer Segments.
VALUE PROPOSITIONS
what are you offering them? It seeks to solve customer problems and satisfy customer needs
with value propositions.
CHANNELS
How does each customer segment want to be reached? Value propositions are delivered to customers through communication,
distribution, and sales Channels.
CUSTOMER RELATIONSHIOPS
What relationships are you establishing with each segment? Customer relationships are established and maintained with each
Customer Segment.
REVENUE STREAMS
What are customers really willing to pay for? how? Revenue streams result from value propositions successfully offered to
customers.
KEY RESOURCES
Which resources underpin your business model? Key resources are the assets required to offer and deliver the previously
described elements …
KEY ACTIVITIES
Which activities do you need to perform well in your business model? …by performing a number of Key Activities.
KEY PARTNERS
Which partners and suppliers leverage your model? Some activities are outsourced and some resources are acquired outside
the enterprise.
COST STRUCTURE
What is the resulting cost structure? The business model elements result in the cost structure.
customer segments
key partners
cost structure
revenue streamsdistribution
channels
customer relationships
key activities
key resources
value proposition
images by JAM
OFFER
DISTRIBUTION CHANNELS
CUSTOMER RELATIONSHIPS
CUSTOMERSEGMENTS
REVENUE STREAMSCOST STRUCTURE
KEYACTIVITIES
PARTNERNETWORK
KEYRESOURCES
CANVAS OVERLAY
OFFER
DISTRIBUTION CHANNELS
CUSTOMER RELATIONSHIPS
CUSTOMERSEGMENTS
REVENUE STREAMSCOST STRUCTURE
KEYACTIVITIES
PARTNERNETWORK
KEYRESOURCES
CANVAS OVERLAY
OFFER
DISTRIBUTION CHANNELS
CUSTOMER RELATIONSHIPS
CUSTOMERSEGMENTS
REVENUE STREAMSCOST STRUCTURE
KEYACTIVITIES
PARTNERNETWORK
KEYRESOURCES
THE BUSINESS MODEL CANVAS
OFFER
DISTRIBUTION CHANNELS
CUSTOMER RELATIONSHIPS
CUSTOMERSEGMENTS
REVENUE STREAMSCOST STRUCTURE
KEYACTIVITIES
PARTNERNETWORK
KEYRESOURCES
THE BUSINESS MODEL CANVAS
building block
building block
building block
building block
building block
building block building block
building block
building block
building block
building block
example
Case Study - iFood
Food ordering platform (Mobile App & Web)
Order food online from around 1000 restaurants around Jordan.
Covers Amman, Irbid, Salt, Zarqa, Madaba & Aqaba.
special offers
100% Free Service
Business Model- iFood} 44
The Business Model Canvas
Cost Structure
Key Partners
Key Resources
Channels
Key Activities
Value Proposition
Customer Relationships
CustomerSegments
Revenue Streams
Business Model- iFood} 44
The Business Model Canvas
Cost Structure
Key Partners
Key Resources
Channels
Key Activities
Value Proposition
Customer Relationships
CustomerSegments
Revenue Streams
Food buyers
Business Model- iFood} 44
The Business Model Canvas
Cost Structure
Key Partners
Key Resources
Channels
Key Activities
Value Proposition
Customer Relationships
CustomerSegments
Revenue Streams
Food buyersEasy ordering
Business Model- iFood} 44
The Business Model Canvas
Cost Structure
Key Partners
Key Resources
Channels
Key Activities
Value Proposition
Customer Relationships
CustomerSegments
Revenue Streams
Food buyers
Mobile AppSocial Media
Easy ordering
Business Model- iFood} 44
The Business Model Canvas
Cost Structure
Key Partners
Key Resources
Channels
Key Activities
Value Proposition
Customer Relationships
CustomerSegments
Revenue Streams
Food buyers
Mobile AppSocial Media
Easy ordering CRM
Business Model- iFood} 44
The Business Model Canvas
Cost Structure
Key Partners
Key Resources
Channels
Key Activities
Value Proposition
Customer Relationships
CustomerSegments
Revenue Streams
Food buyers
Mobile AppSocial Media
Easy ordering CRM
Free
Business Model- iFood} 44
The Business Model Canvas
Cost Structure
Key Partners
Key Resources
Channels
Key Activities
Value Proposition
Customer Relationships
CustomerSegments
Revenue Streams
Restaurants & food chains
Food buyers
Mobile AppSocial Media
Easy ordering CRM
Free
Business Model- iFood} 44
The Business Model Canvas
Cost Structure
Key Partners
Key Resources
Channels
Key Activities
Value Proposition
Customer Relationships
CustomerSegments
Revenue Streams
Restaurants & food chains
Food buyers
Mobile AppSocial Media
Sales Leads
Easy ordering CRM
Free
Business Model- iFood} 44
The Business Model Canvas
Cost Structure
Key Partners
Key Resources
Channels
Key Activities
Value Proposition
Customer Relationships
CustomerSegments
Revenue Streams
Restaurants & food chains
Food buyers
Direct Sales
Mobile AppSocial Media
Sales Leads
Easy ordering CRM
Free
Business Model- iFood} 44
The Business Model Canvas
Cost Structure
Key Partners
Key Resources
Channels
Key Activities
Value Proposition
Customer Relationships
CustomerSegments
Revenue Streams
Restaurants & food chains
Food buyers
Direct Sales
Mobile AppSocial Media
Sales Leads
Easy ordering
% per transaction
CRM
Free
Business Model- iFood} 44
The Business Model Canvas
Cost Structure
Key Partners
Key Resources
Channels
Key Activities
Value Proposition
Customer Relationships
CustomerSegments
Revenue Streams
Restaurants & food chains
Food buyers
Direct Sales
Mobile AppSocial Media
Sales Leads
Easy ordering
% per transaction Ads
CRM
Free
Business Model- iFood} 44
The Business Model Canvas
Cost Structure
Key Partners
Key Resources
Channels
Key Activities
Value Proposition
Customer Relationships
CustomerSegments
Revenue Streams
Restaurants & food chains
Food buyers
Direct Sales
Mobile AppSocial Media
Sales Leads
Easy ordering
% per transaction Ads
Mobile App
CRM
Free
Business Model- iFood} 44
The Business Model Canvas
Cost Structure
Key Partners
Key Resources
Channels
Key Activities
Value Proposition
Customer Relationships
CustomerSegments
Revenue Streams
Restaurants & food chains
Food buyers
Direct Sales
Mobile AppSocial Media
Sales Leads
Easy ordering
% per transaction Ads
Restaurants agreements
Mobile App
CRM
Free
Business Model- iFood} 44
The Business Model Canvas
Cost Structure
Key Partners
Key Resources
Channels
Key Activities
Value Proposition
Customer Relationships
CustomerSegments
Revenue Streams
Restaurants & food chains
Food buyers
Direct Sales
Mobile AppSocial Media
Sales Leads
Easy ordering
% per transaction Ads
Restaurants agreements
Mobile App
SW DevelopmentCRM
Free
Business Model- iFood} 44
The Business Model Canvas
Cost Structure
Key Partners
Key Resources
Channels
Key Activities
Value Proposition
Customer Relationships
CustomerSegments
Revenue Streams
Restaurants & food chains
Food buyers
Direct Sales
Mobile AppSocial Media
Sales Leads
Easy ordering
% per transaction Ads
Restaurants agreements
Mobile App
Marketing
SW DevelopmentCRM
Free
Business Model- iFood} 44
The Business Model Canvas
Cost Structure
Key Partners
Key Resources
Channels
Key Activities
Value Proposition
Customer Relationships
CustomerSegments
Revenue Streams
Restaurants & food chains
Food buyers
Direct Sales
Mobile AppSocial Media
Sales Leads
Easy ordering
% per transaction Ads
Restaurants agreements
Mobile App
Marketing
SW Development
Delivery providers
CRM
Free
Business Model- iFood} 44
The Business Model Canvas
Cost Structure
Key Partners
Key Resources
Channels
Key Activities
Value Proposition
Customer Relationships
CustomerSegments
Revenue Streams
Restaurants & food chains
Food buyers
Direct Sales
Mobile AppSocial Media
Sales Leads
Easy ordering
% per transaction Ads
Restaurants agreements
Mobile App
Marketing
SW Development
SW Development
Delivery providers
CRM
Free
Business Model- iFood} 44
The Business Model Canvas
Cost Structure
Key Partners
Key Resources
Channels
Key Activities
Value Proposition
Customer Relationships
CustomerSegments
Revenue Streams
Restaurants & food chains
Food buyers
Direct Sales
Mobile AppSocial Media
Sales Leads
Easy ordering
% per transaction Ads
Restaurants agreements
Mobile App
Marketing
SW Development
SW DevelopmentSupport
Delivery providers
CRM
Free
Business Model- iFood} 44
The Business Model Canvas
Cost Structure
Key Partners
Key Resources
Channels
Key Activities
Value Proposition
Customer Relationships
CustomerSegments
Revenue Streams
Restaurants & food chains
Food buyers
Direct Sales
Mobile AppSocial Media
Sales Leads
Easy ordering
% per transaction Ads
Restaurants agreements
Mobile App
Marketing
SW Development
SW DevelopmentSupport
Delivery providers
CRM
FreeMarketing
Business Model Design Tactics
Business Model Design Tactics
Most common mistake?
Business Model Design Tactics
Most common mistake?
Starting here!!!
Business Model Design Tactics
OFFER
DISTRIBUTION CHANNELS
CUSTOMER RELATIONSHIPS
CUSTOMERSEGMENTS
REVENUE STREAMSCOST STRUCTURE
KEYACTIVITIES
PARTNERNETWORK
KEYRESOURCES
Customer perspective
Source: Osterwalder, A, and Y. Pigneur. 2010. Business Model Generation. Hoboken, New Jersey: Wiley.
Business Model Design Tactics
Source: Osterwalder, A, and Y. Pigneur. 2010. Business Model Generation. Hoboken, New Jersey: Wiley.
Who?
Business Model Design Tactics
Source: Osterwalder, A, and Y. Pigneur. 2010. Business Model Generation. Hoboken, New Jersey: Wiley.
Who?What? Why?
Business Model Design Tactics
Source: Osterwalder, A, and Y. Pigneur. 2010. Business Model Generation. Hoboken, New Jersey: Wiley.
Who?What? Why?
How?
Business Model Design Tactics
Source: Osterwalder, A, and Y. Pigneur. 2010. Business Model Generation. Hoboken, New Jersey: Wiley.
Who?What? Why?
How?
How much?
Business Model Design Tactics
example
Business Model - Madfo3atCom
Business Model - Madfo3atCom} 44
The Business Model Canvas
Cost Structure
Key Partners
Key Resources
Channels
Key Activities
Value Proposition
Customer Relationships
CustomerSegments
Revenue Streams
Business Model - Madfo3atCom} 44
The Business Model Canvas
Cost Structure
Key Partners
Key Resources
Channels
Key Activities
Value Proposition
Customer Relationships
CustomerSegments
Revenue Streams
Bill payers
Business Model - Madfo3atCom} 44
The Business Model Canvas
Cost Structure
Key Partners
Key Resources
Channels
Key Activities
Value Proposition
Customer Relationships
CustomerSegments
Revenue Streams
Bill payersOnline bill payment
Business Model - Madfo3atCom} 44
The Business Model Canvas
Cost Structure
Key Partners
Key Resources
Channels
Key Activities
Value Proposition
Customer Relationships
CustomerSegments
Revenue Streams
Bill payers
Online banking
Online bill payment
Business Model - Madfo3atCom} 44
The Business Model Canvas
Cost Structure
Key Partners
Key Resources
Channels
Key Activities
Value Proposition
Customer Relationships
CustomerSegments
Revenue Streams
Bill payers
Online banking
Online bill payment
madfo3atcom.com
Business Model - Madfo3atCom} 44
The Business Model Canvas
Cost Structure
Key Partners
Key Resources
Channels
Key Activities
Value Proposition
Customer Relationships
CustomerSegments
Revenue Streams
Bill payers
Online banking
Online bill payment
madfo3atcom.com
Free (Almost)
Business Model - Madfo3atCom} 44
The Business Model Canvas
Cost Structure
Key Partners
Key Resources
Channels
Key Activities
Value Proposition
Customer Relationships
CustomerSegments
Revenue Streams
Business
Bill payers
Online banking
Online bill payment
madfo3atcom.com
Free (Almost)
Business Model - Madfo3atCom} 44
The Business Model Canvas
Cost Structure
Key Partners
Key Resources
Channels
Key Activities
Value Proposition
Customer Relationships
CustomerSegments
Revenue Streams
Business
Bill payers
Online banking
Reach / cost reduction
Online bill payment
madfo3atcom.com
Free (Almost)
Business Model - Madfo3atCom} 44
The Business Model Canvas
Cost Structure
Key Partners
Key Resources
Channels
Key Activities
Value Proposition
Customer Relationships
CustomerSegments
Revenue Streams
Business
Bill payers
Online banking
Reach / cost reduction
Online bill payment
madfo3atcom.com
Flat fee per transaction Free (Almost)
Business Model - Madfo3atCom} 44
The Business Model Canvas
Cost Structure
Key Partners
Key Resources
Channels
Key Activities
Value Proposition
Customer Relationships
CustomerSegments
Revenue Streams
Business
Bill payers
Online banking
Reach / cost reduction
Online bill payment
Software
madfo3atcom.com
Flat fee per transaction Free (Almost)
Business Model - Madfo3atCom} 44
The Business Model Canvas
Cost Structure
Key Partners
Key Resources
Channels
Key Activities
Value Proposition
Customer Relationships
CustomerSegments
Revenue Streams
Business
Bill payers
Online banking
Reach / cost reduction
Online bill payment
Software
Central Bank Contract
madfo3atcom.com
Flat fee per transaction Free (Almost)
Business Model - Madfo3atCom} 44
The Business Model Canvas
Cost Structure
Key Partners
Key Resources
Channels
Key Activities
Value Proposition
Customer Relationships
CustomerSegments
Revenue Streams
Business
Bill payers
Online banking
Reach / cost reduction
Online bill payment
Software
Central Bank Contract
madfo3atcom.com
Flat fee per transaction
Businesses agreements
Free (Almost)
Business Model - Madfo3atCom} 44
The Business Model Canvas
Cost Structure
Key Partners
Key Resources
Channels
Key Activities
Value Proposition
Customer Relationships
CustomerSegments
Revenue Streams
Business
Bill payers
Online banking
Reach / cost reduction
Online bill payment
Software
Central Bank Contract
SW Development
madfo3atcom.com
Flat fee per transaction
Businesses agreements
Free (Almost)
Business Model - Madfo3atCom} 44
The Business Model Canvas
Cost Structure
Key Partners
Key Resources
Channels
Key Activities
Value Proposition
Customer Relationships
CustomerSegments
Revenue Streams
Business
Bill payers
Online banking
Reach / cost reduction
Online bill payment
Software
Central Bank Contract
Business agreements
SW Development
madfo3atcom.com
Flat fee per transaction
Businesses agreements
Free (Almost)
Business Model - Madfo3atCom} 44
The Business Model Canvas
Cost Structure
Key Partners
Key Resources
Channels
Key Activities
Value Proposition
Customer Relationships
CustomerSegments
Revenue Streams
Business
Bill payers
Online banking
Reach / cost reduction
Online bill payment
Software
Central Bank Contract
Business agreements
SW Development
Central Bank madfo3atcom.com
Flat fee per transaction
Businesses agreements
Free (Almost)
Business Model - Madfo3atCom} 44
The Business Model Canvas
Cost Structure
Key Partners
Key Resources
Channels
Key Activities
Value Proposition
Customer Relationships
CustomerSegments
Revenue Streams
Business
Bill payers
Online banking
Reach / cost reduction
Online bill payment
Software
Central Bank Contract
Business agreements
SW Development
Central Bank
Banks
madfo3atcom.com
Flat fee per transaction
Businesses agreements
Free (Almost)
Business Model - Madfo3atCom} 44
The Business Model Canvas
Cost Structure
Key Partners
Key Resources
Channels
Key Activities
Value Proposition
Customer Relationships
CustomerSegments
Revenue Streams
Business
Bill payers
Online banking
Reach / cost reduction
Online bill payment
Software
Central Bank Contract
Business agreements
SW Development
Central Bank
Banks
payment providers
madfo3atcom.com
Flat fee per transaction
Businesses agreements
Free (Almost)
Business Model - Madfo3atCom} 44
The Business Model Canvas
Cost Structure
Key Partners
Key Resources
Channels
Key Activities
Value Proposition
Customer Relationships
CustomerSegments
Revenue Streams
Business
Bill payers
Online banking
Reach / cost reduction
Online bill payment
Software
Central Bank Contract
Business agreements
SW Development
SW Development
Central Bank
Banks
payment providers
madfo3atcom.com
Flat fee per transaction
Businesses agreements
Free (Almost)
Business Model - Madfo3atCom} 44
The Business Model Canvas
Cost Structure
Key Partners
Key Resources
Channels
Key Activities
Value Proposition
Customer Relationships
CustomerSegments
Revenue Streams
Business
Bill payers
Online banking
Reach / cost reduction
Online bill payment
Software
Central Bank Contract
Business agreements
SW Development
SW Development Support
Central Bank
Banks
payment providers
madfo3atcom.com
Flat fee per transaction
Businesses agreements
Free (Almost)
prototyping
1language
2strategies
3experiments
Startegies
Nespresso changed the
business model for espresso
Nespresso changed the business model for espresso
Nespresso changed the
business model for espresso
Case Study - Nespresso
Title Text
how much did the cost of coffee consumed at home change for Swiss households over the last
couple of years?
how much did the cost of coffee consumed at home change for Swiss households over the last
couple of years?
• One of the fastest-‐ growing businesses in the Nestlé group
• Average growth of 30% p.a. since 2000
• Over 3.5 billion CHF annual revenue with 1 product line (3.8 billion USD)
Title Text
Nespresso almost failed in 1987 and was
about to close due to a
nonperforming business model
how much did the cost of coffee consumed at home change for Swiss households over the last
couple of years?
how much did the cost of coffee consumed at home change for Swiss households over the last
couple of years?
} 44The Business Model Canvas
Cost Structure
Key Partners
Key Resources
Channels
Key Activities
Value Proposition
Customer Relationships
CustomerSegments
Revenue Streams
Business Model - Nespresso
Offices
Manufactures
Nespresso System
System Sales
Manufactures
} 44The Business Model Canvas
Cost Structure
Key Partners
Key Resources
Channels
Key Activities
Value Proposition
Customer Relationships
CustomerSegments
Revenue Streams
Business Model - Nespresso
Nespresso Machine
1x Machine Sales
Offices
} 44The Business Model Canvas
Cost Structure
Key Partners
Key Resources
Channels
Key Activities
Value Proposition
Customer Relationships
CustomerSegments
Revenue Streams
Business Model - Nespresso
HomeNespresso
Machine
1x Machine Sales
Offices
} 44The Business Model Canvas
Cost Structure
Key Partners
Key Resources
Channels
Key Activities
Value Proposition
Customer Relationships
CustomerSegments
Revenue Streams
Business Model - Nespresso
HomeNespresso
Machine
1x Machine Sales
RetailsOffices
} 44The Business Model Canvas
Cost Structure
Key Partners
Key Resources
Channels
Key Activities
Value Proposition
Customer Relationships
CustomerSegments
Revenue Streams
Business Model - Nespresso
HomeNespresso
Machine
1x Machine Sales
RetailsOfficesNespresso
Pods
} 44The Business Model Canvas
Cost Structure
Key Partners
Key Resources
Channels
Key Activities
Value Proposition
Customer Relationships
CustomerSegments
Revenue Streams
Business Model - Nespresso
HomeNespresso
Machine
1x Machine Sales
RetailsOffices
nespresso.com
Nespresso Stores
Call Center
Nespresso Pods
} 44The Business Model Canvas
Cost Structure
Key Partners
Key Resources
Channels
Key Activities
Value Proposition
Customer Relationships
CustomerSegments
Revenue Streams
Business Model - Nespresso
HomeNespresso
Machine
1x Machine Sales
RetailsOffices
nespresso.com
Nespresso Stores
Call Center
Nespresso Club
Nespresso Pods
} 44The Business Model Canvas
Cost Structure
Key Partners
Key Resources
Channels
Key Activities
Value Proposition
Customer Relationships
CustomerSegments
Revenue Streams
Business Model - Nespresso
HomeNespresso
Machine
1x Machine Sales
RetailsOffices
nespresso.com
Nespresso Stores
Call Center
Nespresso Club
Nespresso Pods
Repetitive pods Sales
} 44The Business Model Canvas
Cost Structure
Key Partners
Key Resources
Channels
Key Activities
Value Proposition
Customer Relationships
CustomerSegments
Revenue Streams
Business Model - Nespresso
Home
BrandPatent
Nespresso Machine
1x Machine Sales
RetailsOffices
nespresso.com
Nespresso Stores
Call Center
Nespresso Club
Nespresso Pods
Repetitive pods Sales
Distribution CH Pod
Production
} 44The Business Model Canvas
Cost Structure
Key Partners
Key Resources
Channels
Key Activities
Value Proposition
Customer Relationships
CustomerSegments
Revenue Streams
Business Model - Nespresso
Home
BrandPatent
Nespresso Machine
1x Machine Sales
RetailsOffices
nespresso.com
Nespresso Stores
Call Center
Nespresso Club
Nespresso Pods
Repetitive pods Sales
Distribution CH
B2C Distribution Marketing
production & SCM
Pod Production
} 44The Business Model Canvas
Cost Structure
Key Partners
Key Resources
Channels
Key Activities
Value Proposition
Customer Relationships
CustomerSegments
Revenue Streams
Business Model - Nespresso
HomeManufactures
BrandPatent
Nespresso Machine
1x Machine Sales
RetailsOffices
nespresso.com
Nespresso Stores
Call Center
Nespresso Club
Nespresso Pods
Repetitive pods Sales
Distribution CH
B2C Distribution Marketing
production & SCM
Pod Production
} 44The Business Model Canvas
Cost Structure
Key Partners
Key Resources
Channels
Key Activities
Value Proposition
Customer Relationships
CustomerSegments
Revenue Streams
Business Model - Nespresso
HomeManufactures
BrandPatent
Nespresso Machine
1x Machine Sales
RetailsOffices
nespresso.com
Nespresso Stores
Call Center
Nespresso Club
Nespresso Pods
Repetitive pods Sales
Distribution CH
Coffee Growers
B2C Distribution Marketing
production & SCM
Pod Production
} 44The Business Model Canvas
Cost Structure
Key Partners
Key Resources
Channels
Key Activities
Value Proposition
Customer Relationships
CustomerSegments
Revenue Streams
Business Model - Nespresso
HomeManufactures
BrandPatent
Nespresso Machine
1x Machine Sales
RetailsOffices
nespresso.com
Nespresso Stores
Call Center
Nespresso Club
Nespresso Pods
Repetitive pods Sales
Distribution CH
Coffee Growers
B2C Distribution Marketing
production & SCM
B2C Distribution
Marketingproduction
Pod Production
Business Model - Nespresso
?how do we do that?
Business Model ValidationExperiment1
language
2strategies
3experiments
Business Model ValidationExperiment1
language
2strategies
3experiments
Business Model ValidationExperiment1
language
2strategies
3experiments
Business Model Validation} 44
The Business Model Canvas
Cost Structure
Key Partners
Key Resources
Channels
Key Activities
Value Proposition
Customer Relationships
CustomerSegments
Revenue Streams
GUSEE
GUSEE
GUSEE
GUSEEGUSEE
GUSEE GUSEE
GUSEE
GUSEE
no business plan survives the first
contact with customers
Steve Blank, entrepreneur & thought leader
“”
“ no business plan survives the first contact with customers
“Steve Blankentrepreneur & thought leader
?how do you best organize the process of experimentation?
How to validate Business Model
1. Document your plan A
2. Identify riskiest part of the model by stage and type
3. Select the right experiment maximizing Learning, Speed & Focus.
Business Model ValidationBrainstorm possible models
Time
X
XPrioritize where to start
Time
Based on
1- Customer pain level2- Ease of reach3- Market size4- Price / Margin
Business Model Validation
Time
Identify riskiest part of the model
X
X
Business Model Validation
Time
Test riskiest part of the model
X
XTesting Methods
1- Customer Interviews (Understand problem)2- Pre-Sales (Measure demands)3- MVP (Deliver customer expectation)
Business Model Validation
Time
Systematically test your business model
X
X
X
Business Model Validation
Time
Systematically test your business model
X…
X
X
Business Model Validation
Time
Systematically test your business model
X…
X
X
Business Model Validation
Pivot before Product/Market Fit, Optimize after
Another way to delineate the stages of a startup is before and after Product/
Market Fit.
Before Product/Market Fit, the focus of the startup centers around
learning and pivots. After Product/Market fit, the focus shifts towards
growth and optimization.
“Pivot” is a term used by Eric Ries to describe a change in direction of a
startup while staying grounded in learning. The best way to differentiate
pivots from optimizations is that pivots are about finding a plan that
works, while optimizations are about accelerating that plan.
In a pivot experiment, you attempt to validate parts of the business model
hypotheses in order to find a plan that works. In an optimization
experiment, you attempt to refine parts of the business model hypotheses
in order to accelerate a working plan. The goal of the first is a course
correction (or a pivot). The goal of the second is efficiency (or scale).
ROADMAP 23
3 stages of Startup
3 stages of StartupPART 1: PROBLEM/SOLUTION FIT
3 stages of Startup
PART 2: PRODUCT/LAUNCH FIT
3 stages of StartupPART 3: PRODUCT/MARKET FIT
3 stages of Startup
Pivot before Product/Market Fit, Optimize after
Another way to delineate the stages of a startup is before and after Product/
Market Fit.
Before Product/Market Fit, the focus of the startup centers around
learning and pivots. After Product/Market fit, the focus shifts towards
growth and optimization.
“Pivot” is a term used by Eric Ries to describe a change in direction of a
startup while staying grounded in learning. The best way to differentiate
pivots from optimizations is that pivots are about finding a plan that
works, while optimizations are about accelerating that plan.
In a pivot experiment, you attempt to validate parts of the business model
hypotheses in order to find a plan that works. In an optimization
experiment, you attempt to refine parts of the business model hypotheses
in order to accelerate a working plan. The goal of the first is a course
correction (or a pivot). The goal of the second is efficiency (or scale).
ROADMAP 23
THANKSQ & A
