Designing a Business Model
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Transcript of Designing a Business Model
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DESIGNING BUSINESS
MODELS
6 techniques to better, more innovative designs
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DESIGNING BUSINESS
MODELS
6 techniques to better, more innovative designs
based on the book Business Model Generation
by Alex Osterwalder and Yves Pigneur.
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CUSTOMER INSIGHTS
getting into the mind of the customer
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EMPATHY MAP
Talking to customers is not always
useful. So we create an empathy
map by walking in the shoes of a
target customer. It helps understand
the customer’s pain points and how
one can try to eliminate them.
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IDEATION
brainstorming for new ideas
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WHAT IF…
inspiring crazy new ideas
One needs to ask “What if…”
questions, no matter how crazy
they sound. Some of the best
business models have been formed
in response to some of the craziest
questions.
PS: Can you identify the companies
that dared to ask the questions on
the right?
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WHERE
do business ideas
originate?
This is a typical business model
canvas. If you haven’t seen one
before, it is recommended that you
look it up before proceeding.
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WHERE
do business ideas
originate?
Your key partnerships, activities
and resources form your overall
resources.
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WHERE
do business ideas
originate?
Your value proposition is your
offer.
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WHERE
do business ideas
originate?
Customer relationships and
segments, and channels form the
customer side of the business
model.
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WHERE
do business ideas
originate?
The cost structure and revenue
stream form the finance part of the
business model.
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WHERE
do business ideas
originate?
A business idea can start at any of
these four epicenters. For example,
Google started as a search engine
and then leveraged its web servers
(resources) to offer other services
like Gmail. Dell was trying to
improve the cost structure
(finance) when it introduced its
business model.
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HOW
to generate and select the best ideas
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HOW
to generate and select the best ideas
you first generate as many business ideas as you can, focusing on
quantity rather than quality. Then you stop generating ideas, and
discuss the ones you have, eliminating or combining ideas as you
proceed. You should be left with a few implementable ideas at the end.
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VISUAL THINKING
using visual tools to construct meaning
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VISUAL THINKING
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This is NOT visual…
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This is…
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And so is this…
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4 BENEFITS
of visual thinking
1. Understand the essence
2. Enhance dialogue
3. Explore ideas
4. Improve communication
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PROTOTYPING
explore all avenues for business models
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PROTOTYPING
at different scales
A prototype of a business model
can be created at various scales. A
napkin sketch is the most basic
version, with usually only the value
proposition and revenue streams
mentioned. You can draw one on a
napkin while having coffee!
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PROTOTYPING
at different scales
An elaborated canvas contains a full
business model canvas with an
estimation of the market potential
and some fact checking.
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PROTOTYPING
at different scales
A business case will build on the
elaborated canvas with key data,
costs and revenues and profit
potential.
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PROTOTYPING
at different scales
This involves an investigation on
customer acceptance and feasibility
of the plan with an actual field test.
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PROTOTYPING
at different scales
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STORYTELLING
because everyone has one to tell
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BENEFITS
of storytelling
Introducing new ideas
Pitching to investors
Engaging employees
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TELLING A STORY
Company
perspective
Customer
perspective
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TELLING A STORY
Company
perspective
Customer
perspective
You can tell a story either from the company side or from the customer side.
In the former, you speak about the company’s resources and how they can
be used to benefit the customers and make a profit. In the latter, you speak
about the customer’s pain points and how you can eliminate them.
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TELLING A
STORY
various techniques
This little piggy went to the market….This little piggy stayed at home. This little piggy got stoned.
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SCENARIOS
discuss all possibilities
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SCENARIOS
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SCENARIOS
Imagine specific scenarios
about the kind of customers
using your product/service,
how they are using them,
their concerns and desires.
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CUSTOMER SETTINGS
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SCENARIOS
Imagine future possibilities
about how the market might
change, new competition that
might enter, how customer
roles might evolve, etc.
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FUTURE ENVIRONMENTS
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Slide 17: Drawings: http://multiplayerblog.mtv.com/wp-content/uploads/2009/02/sc0019b49d.jpg
Slide 18: http://blogs-images.forbes.com/tedgreenwald/files/2012/01/business_model_canvas_poster-02.jpg
Slide 19: http://businessmodelsinc.files.wordpress.com/2009/10/nespresso_businnes_model.png
Slide 20: http://secouu.files.wordpress.com/2010/10/businessmodelcanvasnew.jpg
Slides 23-27: Pokemon: http://pokemondb.net/pokedex/
IMAGE CREDITS
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GET IN TOUCH!
Email: [email protected]
Twitter: @vezance
Recommended reading: Business Model Generation by
Alex Osterwalder and Yves Pigneur
http://www.businessmodelgeneration.com
Disclaimer: I am not affiliated with the authors or publishers of this book. I have
created this presentation after having purchased and read the book. The book
contains a lot more information on business models, patterns and strategizing.