Lecture on Business Model Generation @ Zeppelin University

1Lecture on E-Business Models @ Zeppelin University, 09.28.2012

Business Models

01 What is a b_model?02 Building blocks of a b_model

03 Create a b_model04 Example b_models

Q&A

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Business Model Lecture | 2012 relevantive AG

What is aBusiness Model?


Group work!What is a

business model?

Image curtsey: http://1.bp.blogspot.com/-ZVgDabCg3z0/UDKCBR_JJlI/AAAAAAAAAvI/7cnvydrHZKA/s1600/IMG_1183.JPG

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Bla

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What are the most important costs inherent in our business model? Which Key Resources are most expensive? Which Key Activities are most expensive?

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Through which Channels do our Customer Segments want to be reached? How are we reaching them now?How are our Channels integrated? Which ones work best?Which ones are most cost-efficient? How are we integrating them with customer routines?

For what value are our customers really willing to pay?For what do they currently pay? How are they currently paying? How would they prefer to pay? How much does each Revenue Stream contribute to overall revenues?

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Customer Segment

Key Activities

Key Resources

Channels

Customer Relationship

Key Partner Value Proposition

Cost Structure Revenue Streams


Value Proposition

Newness

Image curtsey: http://www.flickr.com/photos/72439897@N02/6623264623/sizes/l/in/photostream/


Value Proposition

Performance

Image curtsey: http://www.babez.de/wp-content/myfotos/bf-performance-gt660/bf-performance-gt-660-02.jpg


Value Proposition

Customization

http://weirdnews.about.com/od/weirdphotos/ig/Geoff-Ostling-Tattoos/Armpit.htm


Value Proposition

Getting things done

http://capmembers.com/media/cms/working_together_in_space_hires_E77D1F50E1332.jpg


Value Proposition

Design, UX, CX

http://3.bp.blogspot.com/_wuUoxyO0BNI/TCsb1xIOeuI/AAAAAAAAIWw/k9ph1nqXj2w/s1600/P1040804.JPG


Value Proposition

Price

http://www.gemeinde-asbach.de/img/ALDI.JPG


Value Proposition

Cost reduction

http://cdn.physorg.com/newman/gfx/news/hires/2012/1-containershi.jpg


Value Proposition

Risk reduction

http://files.mercedes-fans.de/images/2010/09/mercedes-benz-hightech-airbag-gurtstraffer-w126-innovationtf012.jpg


Value Proposition

Accessibility

http://www.airlinereporter.com/wp-content/uploads/2010/10/airlines1.jpg


Customer Segment

Key Activities

Key Resources

Channels





Customer Segment

Mass market

Image curtsey: http://1.bp.blogspot.com/-wYRDKwwuvZk/Tq6Esx2CoAI/AAAAAAAABkg/d7jEc7vPzT0/s1600/Crowd_Obama_Inauguration_Day_Big.jpg


Customer Segment

Niche Market

Image curtsey: http://www.trashness.com/wp-content/uploads/2012/06/preppy-hipster.jpg


Customer Segment

Segmented

Image curtsey: http://www.kotorikits.com/ekmps/shops/mummymadeit/resources/Design/father-and-son.jpg


Customer Segment

Diversifiziert

Image curtsey:http://4.bp.blogspot.com/-ECdDDi3kO50/TaHu-p5cQcI/AAAAAAAAAAM/np6_jKgDQ0U/s1600/Farmers-Market-foods.jpg


Customer Segment

Multi Sided

Image curtsey: http://landarzt.files.wordpress.com/2008/10/pillen.jpg


Customer Segment

Key Activities

Key Resources

Channels





Customer Segment

Key Activities

Key Ressources

Channels

Serving the customer


Customer Segment

Key Activities

Key Ressources

Channel TypesChannel Types Channel PhasesChannel PhasesChannel PhasesChannel PhasesChannel Phases

Own

Sales force01

Awareness02

Evaluation03

Purchase04

Delivery05

After sales

Own Web Sales

01 Awareness

02 Evaluation

03Purchase

04Delivery

05After sales

Own

Own Store

01 Awareness

02 Evaluation

03Purchase

04Delivery

05After sales

Partner

Partner Store

01 Awareness

02 Evaluation

03Purchase

04Delivery

05After sales

Partner

Wholesaler

01 Awareness

02 Evaluation

03Purchase

04Delivery

05After sales


Customer Segment

Key Activities

Key Resources

Channels





Customer relationships

Personal assistance

http://www.entrepreneur-resources.net/wp-content/uploads/2011/10/remote-call-center-agent.jpg



Dedicated Personal

assistance

http://www.bruchsal.org/sites/default/files/1_40_Jahre_Dinner_for_one.jpg



Self-service

http://erickadukes.com/site/wp-content/uploads/2011/02/IMG_3889.jpg



Automated service



Communities




Co-creation (directly)




Co-creation (indirectly)



Customer Segment

Key Activities

Key Resources

Channels





Revenue Streams

Service Sales


Revenue Streams

Subscription


Revenue Streams

Retail


Revenue Streams

Commision


Revenue Streams

Licensing


Revenue Streams

Advertising


Revenue Streams

Renting



Customer Segment

Key Activities

Key Resources

Channels





CSKA

KR

C

CR

KP VP

CS RS


BM


7 B_Models


B_model: Service sales

Skype


Customer Segment

Key Activities

Key Resources

Channels




Subscription: Skype

Free calls (almost), chat

and video.Easy to use.

Mass market

Netflix tried to split branding but had to cancel

Prepaid. Fee for fixed line calls

Cost like an internet company


Customer Segment

Key Activities

Key Resources

Channels




Subscription: Skype



Mass market

Small percentage of paying costumers, but large

customer base

Anybody with internet.

Disruptive value proposition.




Same product than telco but different cost structure.


Customer Segment

Key Activities

Key Resources

Channels




Subscription: Skype



Mass market

Small percentage of paying costumers, but large

customer base

Anybody with internet.

Disruptive value proposition.




Same product than telco but different cost structure.

Not beeing able to scale or monetize.


B_model: subscription

XING


Customer Segment

Key Activities

Key Resources

Channels




Subscription: XING

Network for professionals Professionals


Yearly subscription fee

Access to professionals Headhunter

Usage fee


Customer Segment

Key Activities

Key Resources

Channels




Subscription: XING


Most people forget, that they are subscriber.

Lock in and network effects




Usage fee


Customer Segment

Key Activities

Key Resources

Channels




Subscription: XING


Most people forget, that they are subscriber.

Lock in and network effects




Usage fee

RISK: Beliefe that people like to be held captive. Value for the customer Usage!


Revenue Streams

Retail


Customer Segment

Key Activities

Key Resources

Channels




Retail: Amazon

Mass market


Selling ownership.Online and offline (logistics).

Best prices, recommonda

tion, trust and zero shipping costs and

retour.


Customer Segment

Key Activities

Key Resources

Channels




Retail: Amazon

Mass market



Logistic cost are critical to be profitable.



retour.


Customer Segment

Key Activities

Key Resources

Channels




Retail: Amazon

Mass market



Logistic cost are critical to be profitable.

Risk: Treating online like offline.Hight return costs.Low margin: 0-3%.



retour.


Revenue Streams

Commision


Customer Segment

Key Activities

Key Resources

Channels




Commision: ebay

Buying Products Buyer


Post auction fee

Selling products Seller

Pre auction fee


Customer Segment

Key Activities

Key Resources

Channels




Commision: ebay



Post auction fee


Pre auction fee

Trustworthy transactions for private and professional sellers

Create diverse and great no. of offers


Customer Segment

Key Activities

Key Resources

Channels




Commision: ebay


Thinking your clients wont deal behind your back


Post auction fee


Pre auction fee

Attractive products and prices

Trustworthy transactions for private and professional sellers

Create diverse and great no. of offers


Revenue Streams

Licensing


Customer Segment

Key Activities

Key Resources

Channels




Licensing: apps

Product solving a pain and creating

a gain

Buyer


License fee


Customer Segment

Key Activities

Key Resources

Channels




Licensing: apps


a gain

Buyer


License fee

Deep domain knowledge

Matching hypothesis/assumption and with real market demand.


Customer Segment

Key Activities

Key Resources

Channels




Deep domain knowledge

Matching hypothesis/assumption and with real market demand.

Licensing: apps

Buyer

Risk: One product and one customer.


Transaction Fee

Risk: Value for a limited amount of customers. Beeing an agency.


a gain


Revenue Streams

Advertising


Customer Segment

Key Activities

Key Resources

Channels




Advertising: Google


Valuable service and information

for free. User

Free product.

Targeted ads. Advertiser

Performace fee.


Customer Segment

Key Activities

Key Resources

Channels




Advertising: Google



for free. User

Free product.


Performace fee.

People pay with their usage.

Building trust and highly involved users


Customer Segment

Key Activities

Key Resources

Channels




Advertising: Google


Invading peoples space or privacy.


for free. User

Free product.


Performace fee.

People pay with their usage.

Building trust and highly involved users


Revenue Streams

Renting



Customer Segment

Key Activities

Key Resources

Channels




Renting: Dirve now

Commuter


Renting/usage fee

Individual mobility.


Customer Segment

Key Activities

Key Resources

Channels




Renting: Dirve now

Commuter


Renting/usage fee


Granting someone the exclusive right to use a particular asset for a fixed period of time


Customer Segment

Key Activities

Key Resources

Channels




Renting: Dirve now

Commuter

Underestimate fraud


Renting/usage fee


Granting someone the exclusive right to use a particular asset for a fixed period of time


Failed B_Models:Netflix, HiGear.com,

giga.de


Launching new product by merging 2 existing.

Loosing 1.000.000 customers due to bad pricing strategy.


NetflixStock price Netflix: Jan 2010 - Jun 2011: +386%

What could possibly go wrong?


Merging 2 b_models:Netflix + Qwikster


Customer Segment

Key Activities

Key Resources

Channels




Product Netflix

Movie streaming

service

Customer (Massmarket)

$7,99/month


Customer Segment

Key Activities

Key Resources

Channels




Product Qwikster

DVD by mailCustomer

(Massmarket)

$7,99/month


Customer Segment

Key Activities

Key Resources

Channels




Qwikster

Combi DVD by mail +

streaming

Customer (Massmarket)

$15,98/month

Price raise of +60% for bundle to competition

Almost 1.000.000 clients left

Netflix tried to split branding but had to cancel the operation


Brand name -ster referred to other failed internet brands.


Netflix no. of subscribers

Really bad!


Netflix stockprice -200%


Members can rent out luxury cars to each other.

Many refer to Higear as the AirBnB* of cars.


Customer Segment

Key Activities

Key Resources

Channels




Airbnb.com

Matchmaking service:

Room for money

Renter

6%-12% commission

Visitor

In June 2011, Some travelers trashed and vandalized 2 apartments of AirBnB

After a huge PR crisis,AirBnb introduced a $50K

insurance policy.


Customer Segment

Key Activities

Key Resources

Channels




HiGear.com

Matchmaking service:

Luxury car for rent for 1/2 price of

regulat rent.

Renter

30% commission

Visitor

Criminal ring stole 4 vehicles worth $400.000

After a PR nightmareHigear had to close down at

the start of 2012.

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Business Model Lecture | 2012 relevantive AG 117

THX!

Business Model Lecture | 2012 relevantive AG 118

Life is a startup!

[email protected] @forstartups

Lecture on Business Model Generation @ Zeppelin University

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