How to think of BUSINESS MODELS Alexander Osterwalder Twitter: business_design Web: AlexOsterwalder.com
Sep 18, 2014
How to think of BUSINESS MODELS
Alexander OsterwalderTwitter: business_design
Web: AlexOsterwalder.com
Alexander OsterwalderTwitter: business_design
Web: AlexOsterwalder.com
BusinessModelGeneration.com
AGENDAwhere?how?what?
what?
I would like you to meet…
Adam, 43long experience in the cultural heritage sector
Adam was promoted to…
Director Cultural Heritage Dep.City of Manchester
he was brought in to…
explore extraordinary ideas
of course Adam is excited…
TECHNOLOGYaugmented
reality
but he is also worried about…
BUDGETSgovernment
deficits
he knows he needs to focus on…
USER NEEDSoverwhelming choice
www
Adam is competing for attention…
COMPETITIONthe attention economy
so what is Adam going to do?
US
ER
NE
ED
S
TECHNOLOGY
CO
MPE
TIT
OR
S
BUDGETS
US
ER
NE
ED
S
TECHNOLOGY
CO
MPE
TIT
OR
S
BUDGETS
traditio
nal models
are not g
oing to do th
e
job
Adam and his team need to…
unlearn&
reboot
need to focus on
NEWBusiness Models
buzzgroup
discuss with your seat neighbor what a business model is and write down
your definition
?what elements did you mention in your
definition?
what actually is a business
model?
BUSINESS MODEL
CANVAS
the
building blocks
9
the 9 building blocks of a business model
images by JAM
CUSTOMER SEGMENTS
images by JAM
VALUE PROPOSITIONS
images by JAM
CHANNELS
images by JAM
CUSTOMER RELATIONSHIOPS
images by JAM
REVENUE STREAMS
images by JAM
KEY RESOURCES
images by JAM
KEY ACTIVITIES
images by JAM
KEY PARTNERS
images by JAM
COST STRUCTURE
images by JAM
customer segments
key partners
cost structure
revenue streamsdistribution
channels
customer relationships
key activities
key resources
value proposition
images by JAM
images by JAM
customer segments
key partners
cost structure
revenue streamsdistribution
channels
customer relationships
key activities
key resources
value proposition
images by JAM
OFFER
DISTRIBUTION CHANNELS
CUSTOMER RELATIONSHIPS
CUSTOMERSEGMENTS
REVENUE STREAMSCOST STRUCTURE
KEYACTIVITIES
PARTNERNETWORK
KEYRESOURCES
CANVAS OVERLAY
images by JAM
OFFER
DISTRIBUTION CHANNELS
CUSTOMER RELATIONSHIPS
CUSTOMERSEGMENTS
REVENUE STREAMSCOST STRUCTURE
KEYACTIVITIES
PARTNERNETWORK
KEYRESOURCES
CANVAS OVERLAY
images by JAM
OFFER
DISTRIBUTION CHANNELS
CUSTOMER RELATIONSHIPS
CUSTOMERSEGMENTS
REVENUE STREAMSCOST STRUCTURE
KEYACTIVITIES
PARTNERNETWORK
KEYRESOURCES
THE BUSINESS MODEL CANVAS
building block
building block
building block
building
block
building block
building block
building block
building
block
building block
building block
building block
example
performing
shows
ticketing channels
CUSTOMERSEGMENTS
PARTNERNETWORK
OFFER
star performers
focus on families
loads of animals
animal
“maintenance”
relatively low ticket fees
REVENUE STREAMS
DISTRIBUTION CHANNELS
KEYACTIVITIES
animal care
KEYRESOURCES
logistics
transactional
CUSTOMER RELATIONSHIPS
COST STRUCTURE
star
performers
brand
animal shows
fun &
humor
logisticsfees for stars
The Circus Business Model
What did Cirque de Soleil change?
performing
shows
ticketing channels
CUSTOMERSEGMENTS
PARTNERNETWORK
OFFER
star performers
focus on families
loads of animals
animal
“maintenance”
relatively low ticket fees
REVENUE STREAMS
DISTRIBUTION CHANNELS
KEYACTIVITIES
animal care
KEYRESOURCES
logistics
transactional
CUSTOMER RELATIONSHIPS
COST STRUCTURE
star
performers
brand
animal shows
fun &
humor
logisticsfees for stars
artistic, music
& dance
shows
theater, opera
visitors
high ticket
fees
that’s exactly what we did for..
BusinessModelGeneration.com
and it was a success…
what did we change?
old styleold style
old styleold style
old styleold style
old styleold style
old styleold style
yawn
let’s forget publishers and just start…
new stylenew style
so we built a Hub…
new stylenew style
new stylenew style
new stylenew style
$24.-
$36.-
$54.-
$81.-
$121.50
$243.-
why did people pay for
the Hub?
be the first
BIGGER
be part of something
learn from each other
how?
we need to develop a design
attitude
“
”
prototyping
[source: Sony Pictures]
Frank
Gehry
[source: Sony Pictures]
[source: Sony Pictures]
[source: Wikimedia Commons]
?what does that have to do with business models
and my organization?
?how do we do that?
OFFER
DISTRIBUTION CHANNELS
CUSTOMER RELATIONSHIPS
CUSTOMERSEGMENTS
REVENUE STREAMSCOST STRUCTURE
KEYACTIVITIES
PARTNERNETWORK
KEYRESOURCES
THE BUSINESS MODEL CANVAS
building block
building block
building block
building
block
building block
building block
building block
building
block
building block
building block
building block
business model prototyping
napkin sketch Canvas business case field test
customer centricity
customer segments
key partners
cost structure
revenue streamsdistribution
channels
customer relationships
key activities
key resources
images by JAM
value proposition
OFFER
DISTRIBUTION CHANNELS
CUSTOMER RELATIONSHIPS
CUSTOMERSEGMENTS
REVENUE STREAMSCOST STRUCTURE
KEYACTIVITIES
PARTNERNETWORK
KEYRESOURCES
analyze from the customer perspective
Jan Chipchase (Nokia)
Jan Chipchase (Nokia)
his main weaponhis main weapon
India mobile study
India mobile study
Rich Ling (Telenor)Rich Ling (Telenor)
photo usage study
photo usage study
OFFER
DISTRIBUTION CHANNELS
CUSTOMER RELATIONSHIPS
CUSTOMERSEGMENTS
REVENUE STREAMSCOST STRUCTURE
KEYACTIVITIES
PARTNERNETWORK
KEYRESOURCES
analyze from the customer perspective
ideation
a silly
exercise
the silly cow exercise
Muuuuhhhh
sketch out 2 business models..
…in which I, the cow, play the
main act!
example
cows-for-advertising
rent-a-cow-for-the-weekend
got it?
you got 1 minute!
you got 1 minute!
GO!
where?
Business Model InnovationCultural Heritage
Digitale feiten
...26% digitized ...42% needs to be digitized
...32% not necessary
(*Digitale feiten, 2009)
Digital facts
A substantial amount of material has been digitized...
...But only a small amount of material is available where it is most valuable...
61%
41%
?%
Bottlenecks
Copyright
Revenue modelsICT Infrastructure
Organization
(*Osterwalder, 2009)
open
Revenue Models
Plan Open Business Models
1: create a hub
2: Select case studies
3. organize workshops
4. Map them out
buzzgroup
?Have you tried business model innovation already?
Are you interested in trying? Do you see obstacles to
this?
THANK YOU!THANK YOU!THANK YOU!THANK YOU!
www.businessmodelgeneration.comwww.alexosterwalder.com
www.businessmodelalchemist.com Twitter: business_design
www.businessmodelgeneration.comwww.alexosterwalder.com
www.businessmodelalchemist.com Twitter: business_design
the book