1 1 warm-up: business model innovation 2 concept: the business model canvas 3 intro: business incubation Jan 21-25, 2012, H‘rath/Aachen, Germany Business Model Innovation & Incubation Business Model Innovation & Incubation Business Model Innovation & Incubation Business Model Innovation & Incubation Workshop @
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1
1 warm-up: business model innovation
2 concept: the business model canvas
3 intro: business incubation
Jan 21-25, 2012, H‘rath/Aachen, Germany
Business Model Innovation & IncubationBusiness Model Innovation & IncubationBusiness Model Innovation & IncubationBusiness Model Innovation & Incubation
Workshop @
1 warm -up1 warm -up
CRAFTINGBUSINESS MODELS
Creators: Alex Osterwalder, PhD, and Yves Pigneur Drawings by JAM
Facilitator: Axel Friese
Creators: Alex Osterwalder, PhD, and Yves Pigneur Drawings by JAM
Facilitator: Axel Friese
innovative
do you know the business model canvas approach?
novice advanced
let’s kick off with a
QUESTION
what is the most popular business
management concept ever to describe
(value creation in) companies
1980s
firm infrastructure
human resource management
technology development
procurement
inbound logistics
operationsoutbound logistics
marketing & sales
service
THE VALUE CHAIN (PORTER 1985)
miniexercise
describe
with…
firm infrastructure
human resource management
technology development
procurement
inbound logistics
operationsoutbound logistics
marketing & sales
service
THE VALUE CHAIN
difficult isn’t it
THE CONTEXT HAS CHANGED!
we need new methods to
understand & craft business
models
VALUECREATION
what types of innovation do we find in companies…
business model innovation
product & service innovation
process innovation
technology innovation
*layers of innovation*
warm -upquiz
so we are focusing …
BUSINESS
MODEL
INNOVATION
now consider…
they offer a really neat service…
imagine you’re shopping…
and you hear a tune you like…
…but don’t know the title or artist
with Shazam you can…
dial a number…
hold your phone to the speakers…
…and get the title and artist by SMS
you know how they make money?
communication and SMS charges…
…and sales commissions
…and in the futureTV/video content
BUSINESS
MODEL
INNOVATION
that’s
quickquiz
who would have thought that we could rent and drop-off a car anywhere we want in a city
and pay per minute?
and then of course there is…
2 concept2 concept
buzzgroup
define what a business model is together with your seat neighbor and write your
definition down
2 minutes
what elements did you mention when you defined a business model?
there is a lack of definition“
”
few companies understand their existing business model well enough
“
”
so Alex Osterwalder and a crowd of 470 practitioners came up with a way to master business models through…
BUSINESS MODEL
CANVAS
the
they merged all existing concepts, designed & tested the synthesis…
BUILDING BLOCKS
the 9 building blocks of a business model
www.businessmodelalchemist.com all drawings by JAM
CUSTOMER SEGMENTS
mass market
niche market
segmented
diversified
multi-sided platformFor whom are we
creating value?
Who are our most
important customers?
VALUE PROPOSITION
What value do we deliver to the customer?
Which one of our customer’s problems are we helping to solve?
Which customer needs are we satisfying?
What bundles of products and services are we offering to each customer segment?
Newness
Performance
Customization
„Getting the job done“
Design
Brand / status
Price
Cost reduction
Accessibilty
Convenience /
Usability
KEY CHANNELS
Through which channels do our customer segments want to be reached?
How are our channels integrated?
How are we integrating them with customer routines?
Channels serve for
communication, sales, distribution
Own sales force
Web sales
Own stores
Partner stores
Retail & wholesale
CUSTOMER RELATIONSHIPS
Personal assistance
Self-service
Automatisierter Service
Co-creation
What type of relationships does each of our customer
segments expect us to establish and maintain with them?
How costly are they?
How are they integrated with the rest of our business model?
REVENUE STREAMS
For what value are our customers really willing to pay?
How would they prefer to pay?
How much does each revenue stream contribute to overall revenues?
Fixed Pricing Dynamic Pricing
List price
Product feature
dependent
Customer segment
dependent
Volume dependent
Negotiation
Yield management
Real-time-market
Auctions
KEY RESOURCES
drawings by JAM
Physical stock
Intellectual patent.
Human .
Financial.
What key resources do our value propositions require?
Our distribution channels?
Customer relationships?
Revenue streams?
KEY ACTIVITIES
What key activities do our value propositions require?
Our distribution channels?
Customer relationships?
Revenue streams?
Production vs.
Problem solving .
Platform / network .
KEY PARTNERS
Who are our key partners?
Who are our key suppliers?
Which key resources are we acquiring from partners?
Which key activities do partners perform?
Optimization and economy of scale
and suppliers
Reduction of risk
joint development of competing consumer electronics giants
Acquisition of particular resources and activities
uses operating system
COST STRUCTURE
What are the most important costs inherent in our business model?
Which key resources are most expensive?
Which key activities are most expensive?
Cost-driven
Value-driven
Fixed costs
Variable costs
Economies of scale
customer segments
key partners
cost structure
revenue streamskey
channels
customer relationships
key activities
key resources
value proposition
VALUE PROPOSITION
KEY CHANNELS
CUSTOMER RELATIONSHIPS
CUSTOMERSEGMENTS
REVENUE STREAMSCOST STRUCTURE
KEYACTIVITIES
PARTNERNETWORK
KEYRESOURCES
OVERLAY
VALUEPROPOSITION
KEYCHANNELS
CUSTOMERRELATIONSHIPS
CUSTOMERSEGMENTS
REVENUE STREAMSCOST STRUCTURE
KEYACTIVITIES
KEYPARTNERS
KEYRESOURCES
THE BUSINESS MODEL CANVAS
For what value are our customers really willing to pay? How would they prefer to pay? How much does each revenue stream contribute
to overall revenues?
What are the most important costs inherent in our business model? Which key resources are most expensive? Which key activities are
most expensive?
Who are our key partners? Who are our key suppliers? Which key resources are we
acquiring from partners? Which key activities do partners
perform?
What key activities do our value propositions require? Our
distribution channels? Customer relationships? Revenue
streams?
What key resources do our value propositions require? Our distribution channels? Customer
relationships? Revenue streams?
What value do we deliver to the customer? Which one of our customer’s problems are we
helping to solve? Which customer needs are we satisfying? What
bundles of products and services are we offering to each customer
segment?
Through which channels do our customer segments want to be
reached? How are our channels integrated? How are we
integrating them with customer routines?
What type of relationships does each of our customer segments
expect us to establish and maintain with them? How costly
are they? How are they integrated with the rest of our