CEMS Block SeminarGödöllő, 2015David Varga

Why does it matter to me?

10+ years of professional experience

30+ startup companies advised

Establishing the first open-innovation platform in Hungary

but most of all….

Why does it matter to you?

„A business model describes the rationale of how an organization creates, delivers and captures value” – Osterwalder and Pigneur

The BUSINESS MODEL CANVAS

The 9 building blocks

1. Customer Segments

Who we want to reach?Who are our customers?What characterize our segments?

Mass market? Niche?1 or more segments? – Multi sided business model

2. Value Propositons

What do we offer?What makes us different?Why would customers choose us?What is our secret sauce?

Some possible value added:newness, performance, designbrand, price, convenience?

3. Channels

What are our customer touch points?How do we raise awarness?How we deliver our value propositions?How do we integrate our channels?Are the channels are appropriate?

Some considerable channels strategies:direct, indirectcustomer personasfrom awarness to after sales

4. Customer Relationships

What is our motivation?What do our customers expect?How much it cost to us?Acquisition, retention, upsales?

Some possible relationships:personal, self-service, automated,co-creation, communities

5. Revenue Streams

One of the most important!CASH FLOW from sales!How many streams do we have?

Examples for revenues streams:asset sale (books, cars, etc)usage fee, subscription fee, lending

6. Key Resources

What KR do we have to produce our VP?What KR our Channels require?How do we create Revenue Streams?

Key resources can be: physical, intellectual, human, financial, etc

7. Key Activites

What key activities do we have toperform in order to successfully reach our customers, produce ourvalue propositions and operate the revenue streams?

Examples can be marketing,networking, problem solving, production, etc.

8. Key Partnerships

Key partnerships can add a great valueStrategic alliancesJoint venturesCooperationBuyer – supplier relationshipsEconomy of scale

9. Cost Structure

What are our most important costs?Which key resources are the costliest?Can we modifiy in our business modelto reduce cost?

What type of cost structure do we have?cost-driven, value-driven?

What are our fixed and variable costs?How can we optimize our economy of scale?

Patterns

Spotify – the FREEMIUM pattern

Gillette – the BAIT & HOOK pattern

Financial Times – MULTI SIDED PLATFORM

How to do it?

# 1 Customer insights, persona # 2 Ideation - Innovation DNA# 3 Diverse team# 4 Brainstorming# 5 Visual thinking# 6 Prototyping# 7 Scenarios

DESIGN techniques

Is this all?

Some books that you might find interesting

Thank you for your attention!

Q&A Session