1. DESIGNING & TESTING BUSINESS MODELS AlexOsterwalder.com @business_designSteveBlank.com @sgblank

2. ?where do I come from, what do I do? 3. )-: my workplace 4. )-: my current MVP 5. BusinessModelGeneration.com/toolbox iPad stencil, actual scale, template by hortis, le studio. Feb. 2010. http://hortis.lestudio.chscreen:author:project:date: 6. this workshop day combines two global bestsellers+BusinessModelGeneration.comSteveBlank.com/books.html 7. Swiss Time Machine 8. 1958 9. [sources: Henry Chesbrough, photo: life.com] 10. revenue growth of 41% compounded for the next 20 years[sources: Henry Chesbrough, photo: xerox.com] 11. Swiss Time Machine 12. 2009 13. BusinessModelGeneration.com 14. 1,000,000 new book titles were published in the U.S. in 10 15. 11,000 new business books appear every year 16. 12% decline of sales in major bookstore chains (07-09) 17. ? so what did we do? 18. we changed the product... 19. ?would a big publishing house have taken us on with this book? 20. No! 21. we changed the business model... 22. you cant write about business model innovation without an innovative business model 23. $24.- 24. $36.- 25. $54.- 26. $81.- 27. $250.- 28. Results 29. #in the top 10 of softcover business books in the US 30. #170000+ English #bmgen copies in print (June 2011) 31. #18 #bmgen translations upcoming in 2011 32. more importantly... 33. business models enable (new) products and technologies and help solve (entirely new) customer problems 34. the 100 Million dollar question 35. how do you search for the right business model? 36. 1 2 3 4understanding business models prototyping alternatives of what could be evaluating your business model design testing business models with customer development 37. 1but hey, what is a business model anyways? 38. ? whats a business model? 39. ?? 40. Business Model Canvas 41. to describe, challenge, design, and inventbusiness models more systematically 42. 9building blocks 43. CUSTOMER SEGMENTSimages by JAM 44. VALUE PROPOSITIONSimages by JAM 45. CHANNELSimages by JAM 46. CUSTOMER RELATIONSHIPSimages by JAM 47. REVENUE STREAMSimages by JAM 48. KEY RESOURCESimages by JAM 49. KEY ACTIVITIESimages by JAM 50. KEY PARTNERSimages by JAM 51. COST STRUCTUREimages by JAM 52. key activitiesvalue propositioncustomer relationshipskeycustomerpartnerssegmentscost structurekey resourcesrevenue channelsstreamsimages by JAM 53. The Business Model Canvas valuekeypropositionactivitiesKEY PARTNERS keyKEY ACTIVITIESOFFERbuildingCUSTOMER RELATIONSHIPSCUSTOMER SEGMENTS customerblocksegmentsbuildingbuildingbuilding blockblockbuildingrelationshipsbuildingblockpartnersblockcustomerKEY RESOURCESblockCHANNELS building blockbuilding blockbuilding blockcostCOST STRUCTURE keystructure building resources blockREVENUE STREAMS buildingblockbuildingchannelsck blorevenue streamsimages by JAM 54. BusinessModelGeneration.com/canvas 55. illustration 56. how much less or more do the Swiss pay per gram of coffee consumed at home compared to a decade ago? 57. 600% to 800% more 58. Nespresso changed the business model for espresso 59. RESULTS 60. own recycling containers 61. one of the fastestgrowing businesses in the Nestl group 62. average growth of 30% p.a. since 2000 63. global sales of 3.8+ billion USD 64. Nespressos business Model KEY PARTNERSKEY ACTIVITIES B2C tion distribuine coffee mach rs manufactureNespreCUSTOMER SEGMENTShouseholdssso(espresso fans)Club*** Nespresso machinesbusinessesKEY RESOURCESNespressodistribue coffepodstionchannel sfacilitiesionmailordermnCOST STRUCTURE B2C distrib utCHANNELS etail **** r ts outle Nespresso.copod produ ctiots patenproductionCUSTOMER RELATIONSHIPSmarketingpod productioncoffeegrowersValue PropositioncallcenterNespresso storesREVENUE STREAMSmarketingresso sales of Nesp podssales of Nespress o machines 65. but Nespresso almost failed in 1987 due to a nonperforming business model 66. Nespressos 1987 Model KEY PARTNERSKEY ACTIVITIESmachinemanufacturerKEY RESOURCESValue PropositionNespresso systemCUSTOMER RELATIONSHIPSofficesCHANNELS joint venture with machine manufacturerCOST STRUCTURECUSTOMER SEGMENTSREVENUE STREAMS 67. now Nestl is building a portfolio of business models in their coffee business 68. BusinessModelGeneration.com/canvas 69. 2prototype alternatives and ask yourself what could be 70. ?lets take some time to work on a really, really big issue in the world? 71. access to proper sanitation 72. 2.6 billion people lack access 73. 4 out of 10 people in the world lack even the most simple latrine to perform their needs 74. * single-use toilet bag * self-sanitizing * biodegradable * turns into fertilizer * (mainly) targeted at poor people * low production cost * people already pay for sanitation 75. The Business Model Canvas KEY PARTNERSKEY ACTIVITIESKEY RESOURCESCOST STRUCTUREOFFERCUSTOMER RELATIONSHIPSCHANNELSREVENUE STREAMSCUSTOMER SEGMENTS 76. mini brainstorming session 77. come up with as many business model ideas as possible for the Peepoo bag (not full Canvases) 78. * single-use toilet bag * self-sanitizing * biodegradable * turns into fertilizer * (mainly) targeted at poor people * low production cost * people already pay for sanitation 79. make rough prototypes of the different alternatives to analyze, evaluate and compare them 80. rank F hry Ge [source: Sony Pictures] 81. [source: Sony Pictures] 82. [source: Sony Pictures] 83. [source: Wikimedia Commons] 84. ?what does that have to do with business models and my organization? 85. no architect would build something that resembles his rst sketch 86. ?what does that mean for us? 87. BusinessModelGeneration.com 88. business model prototypingnapkin sketchCanvasbusiness caseeld test 89. prototyping is the conversation you have with your ideasTom Wujec 90. 3evaluate your business model design 91. building block building blockbuilding blo ckbuilding blockbuilding blockbuild ing block building blockbuilding blockbuild ing block building blockbuil di blo ng ckbuildin g block 92. SWITCHING COSTS Howeasyordicultisitforcustomers toswitchtoanothercompany? 93. with thisamazingdevice youcanhavethousand songsinapocket 94. ...and yourscrewingus becauseithasjust becomemoredicultto switchdevices 95. RECURRING REVENUES Iseverysalesaneweortorwillitresult infollow-uprevenuesandpurchases? Howevenlydistributedareyourrevenues throughtheyear? 96. EARNBEFORE YOUPAY Areyouearningmoneybefore youarespendingit? 97. GAMECHANGING COSTSTRUCTURE IsyourcoststructuresubstanSally dierentandbeTerthanthoseof compeStors? 98. phone callswillbetotally freeinthefuture 99. GETTINGOTHERS TODOTHEWORK Howmuchdoesyourbusiness modelgetcustomersorthirdparSes tocreatevalueforyou? 100. go aheadandshare onyourfacebook page... 101. ...that willmakemy plaWormmore valuable... 102. ...and raisemyplaWorms value(aSon)... 103. SCALABILITY Howrapidlyandhoweasilycanyou growyourbusinessmodelwithout hi[ngroadblocks(e.g.infrastructure, customersupport,etc.)? 104. VIRALITY/ NETWORKEFFECT Howviralisyourbusinessmodel? HowsubstanSalarethebenetsto sharewithothers? 105. PROTECTIONFROM COMPETITION Howmuchisyourbusinessmodel protecSngyoufromcompeSSon? 106. a product/ technology focus is just not enough anymore 107. break-out session 108. BusinessModelGeneration.com/canvas 109. The Business Model Canvas KEY PARTNERSKEY ACTIVITIESKEY RESOURCESCOST STRUCTUREOFFERCUSTOMER RELATIONSHIPSCHANNELSREVENUE STREAMSCUSTOMER SEGMENTS 110. 4testing business models with customer development 111. a business model might look great on paper...building block building blockbuilding blo ckbuilding blockbuilding blockbuild ing block building blockbuilding blockbuild ing block building blockbuil di blo ng ckbuildin g block.. but after all it is only a... 112. ... a set of hypothesesguessguessguessguessguessuess gguessguessguessguess guess guess 113. StevenBlank.com/books.html 114. THANK YOU! BusinessModelGeneration.com AlexOsterwalder.com / @business_design BusinessModelAlchemist.com 115. BusinessModelGeneration.com/toolbox iPad stencil, actual scale, template by hortis, le studio. Feb. 2010. http://hortis.lestudio.chscreen:author:project:date: