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The NewBusinessModelsDesigning and testing great businesses

@business_design

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?

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?

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?

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?

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e

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Mike34 MIT Alumnus

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Mikeis passionate about a new product idea

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Mikemasters all the tools of business

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But...

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No business plan survives the first contact with customersSteve Blank

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in entrepreneurship we still rely on real-life crash tests which lead to costly failures

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?

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Sketching

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Prototyping

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Simulation

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Testing

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Could we design business models the way we design cars?

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?

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But...what really is a business model

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describe your business model to your seat neighbor in 30 seconds!

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TheBusinessModelCanvas

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BuildingBlocks9

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images by JAM

Customer Segments

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images by JAM

Value Proposition

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images by JAM

Channels

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images by JAM

Customer Relationships

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images by JAM

Revenue Streams

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images by JAM

Key Resources

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images by JAM

Key Activities

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images by JAM

Key Partners

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images by JAM

Cost Structure

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images by JAM

customer segments

key partners

cost structure

revenue streams

channels

customer relationships

keyactivities

keyresources

valueproposition

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The Business Model CanvasKEY

ACTIVITIES CUSTOMER

RELATIONSHIPSKEY

PARTNERSVALUE

PROPOSITION

CHANNELS

CUSTOMERSEGMENTS

REVENUE STREAMSCOST STRUCTURE

KEYRESOURCES

building block

building block

building block

building block

building block

building block

building block

building block

building block building

block

building block

building block

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e

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h o r rendo us upfro nt i nsta l lat io n

c osts ba rred so la r energ y fro m tak i ng of f

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Jigar Shah

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KEYACTIVITIES

CUSTOMER RELATIONSHIPS

KEYPARTNERS

OFFER

CHANNELS

CUSTOMERSEGMENTS

REVENUE STREAMSCOST STRUCTURE

KEYRESOURCES

companies (e.g. retailers)sales

forces

financial institutions

institutional and private

investors

solar energy at fixed price - no

installation costs

management fees

sales

install and manage solar installations

5-10 year power purchasing

agreements PPAs

installing and managing solar

installations

sales force

green energy investments

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Su nEdison is now the largest provider

of so lar power in the US - so ld to MEMC Electron ic Materia ls in

’09 for USD 200M

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Sketching

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Prototyping

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Every product or technology can lead to five, ten, twenty different business models

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e

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KEYACTIVITIES

CUSTOMER RELATIONSHIPS

KEYPARTNERS

VALUE PROPOSITION

CHANNELS

CUSTOMERSEGMENTS

REVENUE STREAMSCOST STRUCTURE

KEYRESOURCES

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Franchising

Advertising

Micro-finance

LicensingSelling Fertilizer

Cross Subsidies

Not-For-Profit

Free

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Simulating

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e

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project:

screen:

date:

author:

iPad stencil, actual scale, template by hortis, le studio. Feb. 2010. http://hortis.lestudio.ch

iPhones + Android Phones usersRunKeeper

Pro app

2M

app sales$9.99

2M

IT infrastaff and software development

ads

marketing

IT infra

software development

staff Appstore and

Android store

100K 800K400K

599K

RunKeeper Free app

project:

screen:

date:

author:

iPad stencil, actual scale, template by hortis, le studio. Feb. 2010. http://hortis.lestudio.ch

project:

screen:

date:

author:

iPad stencil, actual scale, template by hortis, le studio. Feb. 2010. http://hortis.lestudio.ch

project:

screen:

date:

author:

iPad stencil, actual scale, template by hortis, le studio. Feb. 2010. http://hortis.lestudio.ch

project:

screen:

date:

author:

iPad stencil, actual scale, template by hortis, le studio. Feb. 2010. http://hortis.lestudio.ch

98.6K

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iPhones + Android Phones usersRunKeeper

Pro app

2M

app sales$9.99

2M

IT infrastaff and software development

ads

marketing

IT infra

software development

staff Appstore and

Android store

100K 800K400K

599K

RunKeeper Free app

project:

screen:

date:

author:

iPad stencil, actual scale, template by hortis, le studio. Feb. 2010. http://hortis.lestudio.ch

project:

screen:

date:

author:

iPad stencil, actual scale, template by hortis, le studio. Feb. 2010. http://hortis.lestudio.ch

project:

screen:

date:

author:

iPad stencil, actual scale, template by hortis, le studio. Feb. 2010. http://hortis.lestudio.ch

project:

screen:

date:

author:

iPad stencil, actual scale, template by hortis, le studio. Feb. 2010. http://hortis.lestudio.ch

Fitness Classes

10M

class sales $19.99

6M

Free RunKeeper

Pro app

www

2M1M

2.9M

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iPhones + Android Phones usersRunKeeper

Pro app

2M

app sales$9.99

2M

IT infrastaff and software development

ads

marketing

IT infra

software development

staff Appstore and

Android store

100K 800K400K

RunKeeper Free app

project:

screen:

date:

author:

iPad stencil, actual scale, template by hortis, le studio. Feb. 2010. http://hortis.lestudio.ch

project:

screen:

date:

author:

iPad stencil, actual scale, template by hortis, le studio. Feb. 2010. http://hortis.lestudio.ch

project:

screen:

date:

author:

iPad stencil, actual scale, template by hortis, le studio. Feb. 2010. http://hortis.lestudio.ch

project:

screen:

date:

author:

iPad stencil, actual scale, template by hortis, le studio. Feb. 2010. http://hortis.lestudio.ch

Fitness Classes

10M

class sales $19.99

6M

Free RunKeeper

Pro app

www

2M1M

Fitness Club

subscription $4.99

9M

www5.88M

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Testing

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project:

screen:

date:

author:

iPad stencil, actual scale, template by hortis, le studio. Feb. 2010. http://hortis.lestudio.ch

iPhones + Android Phones usersFitness

Club

10M

subscription $4.99

9M

IT infrastaff and software development

ads

marketing

IT infra

software development

staff Appstore and

Android store

100K 2M1M

Free RunKeeper

Pro app

www

GUESS

GUESS

GUESS

GUESSGUES

S

GUESS GUESSGUES

SGUESS

GUESS

GUESS

GUESS

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Learn

test

project:

screen:

date:

author:

iPad stencil, actual scale, template by hortis, le studio. Feb. 2010. http://hortis.lestudio.ch

iPhones + Android Phones usersFitness

Club

10M

subscription $4.99

9M

IT infrastaff and software development

ads

marketing

IT infra

software development

staff Appstore and

Android store

100K 2M1M

Free RunKeeper

Pro app

www

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Get out of the building and talk to customersSteve Blank

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New Fitness Club Membership $4.99/month

BUY NOW

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The RunKeeper Club Membership is not yet available. You will be informed about the lunch. Thank You!

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Learn

testpivot

New Model

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Only when you nailed it...

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!

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Onethe new entrepreneur is systematic about designing and testing business models.

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Twothe new entrepreneur plays with alternative business models to design great ones

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Threethe new entrepreneur tests his business model hypotheses with customers before he builds his organization

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Thank You@business_design