business models by design · business model innovation without an innovative ... nespresso changed...
TRANSCRIPT
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BusinessModelGeneration.com@business_design
Business Models By
Design
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BusinessModelGeneration.com
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1,000,000new book titles were
published in the U.S. in ʼ10
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11,000new business books
appear every year
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12%decline of sales in major
bookstore chains (ʻ07-ʼ09)
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?so what did we do?
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we designed a new product...
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?would a big publishing house have taken us
on with this book?
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No!
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you canʼt write about business model innovation without an innovative business model
“”
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$24.-
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$36.-
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$54.-
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$81.-
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$250.-
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Results
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150ʼ000+ #bmgen copies in print (May ʼ11)#
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top 10 softcover business book year-to-date (after 11 months on the shelves)#
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18 #bmgen translations upcoming in 2011#
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more importantly...
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and even...
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?whatʼs the take-away?
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Product innovation alone was not
sufficient The product innovation
was enabled by the business model1
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It wasnʼt a copy-paste from
competitorsWe designed a
new business model2
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We couldnʼt prove in advance that the
model would workWe had to take some risk and
experiment3
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?So how does one design successful business
models?
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3 Themesdesign thinking attitude
business model
language
business modeltoolbox
proj
ect:
scre
en:
date
: au
thor
:
iPad stencil, actual scale, template by hortis, le studio. Feb. 2010. http://hortis.lestudio.ch
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business model language 1
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buzzgroup
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?discuss with your seat neighbor what a business model is and
write down your definition
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? ?
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Business Model Canvas
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to describe, challenge, design, and invent business models more systematically
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building blocks 9
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CUSTOMER SEGMENTS
images by JAM
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VALUE PROPOSITIONS
images by JAM
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CHANNELS
images by JAM
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CUSTOMER RELATIONSHIPS
images by JAM
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REVENUE STREAMS
images by JAM
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KEY RESOURCES
images by JAM
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KEY ACTIVITIES
images by JAM
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KEY PARTNERS
images by JAM
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COST STRUCTURE
images by JAM
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images by JAM
customer segments
key partners
cost structure
revenue streams
channels
customer relationships
key activities
key resources
value proposition
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images by JAM
customer segments
key partners
cost structure
revenue streams
channels
customer relationships
key activities
key resources
value proposition
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images by JAM
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CANVAS OVERLAY
images by JAM
OFFER
CHANNELS
CUSTOMER RELATIONSHIPS
CUSTOMERSEGMENTS
REVENUE STREAMSCOST STRUCTURE
KEYACTIVITIES
KEYPARTNERS
KEYRESOURCES
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images by JAM
CANVAS OVERLAYOFFER
CHANNELS
CUSTOMER RELATIONSHIPS
CUSTOMERSEGMENTS
REVENUE STREAMSCOST STRUCTURE
KEYACTIVITIES
KEYPARTNERS
KEYRESOURCES
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KEYPARTNERS
OFFER
CHANNELS
CUSTOMER RELATIONSHIPS
CUSTOMERSEGMENTS
REVENUE STREAMSCOST STRUCTURE
KEYACTIVITIES
KEYRESOURCES
buildingblock
buildingblock
buildingblock
buildingblockbuilding
block
building
block
buildingblock
buildingblock
buildingblock
buildingblock
buildingblock
buildingblock
The Business Model Canvas
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illustra-on
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how much did the cost of home coffee consumption
change for Swiss households over the last couple of years?
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6-8 x more
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Nespresso changed the
business model for espresso
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RESULTS
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one of the fastest-growing businesses in
the Nestlé group
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average growth of 30% p.a. since 2000
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over 3 billion CHF annual revenue with 1 product line
(2.4 bio EUR)
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KEYPARTNERS
OFFER
CHANNELS
CUSTOMER RELATIONSHIPS
CUSTOMERSEGMENTS
REVENUE STREAMSCOST STRUCTURE
KEYACTIVITIES
KEYRESOURCES
Nespresso’s business Model
households (espresso fans)
distribution channels
**** retail
outlets
sales of
Nespresso pods
mailorder
Nespresso stores
NespressoClub
production facilities
coffee machine
manufacturersbusinesses
sales of Nespresso machines
Nespressopods
patents
marketing
production
B2Cdistribution
production
callcenter
Nespresso.com
*** Nespresso machines
marketing
B2Cdistribution
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but Nespresso almost failed in 1987 due to a nonperforming
business model
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KEYPARTNERS
OFFER
CHANNELS
CUSTOMER RELATIONSHIPS
CUSTOMERSEGMENTS
REVENUE STREAMSCOST STRUCTURE
KEYACTIVITIES
KEYRESOURCES
Nespresso’s 1987 Model
officesNespressosystem
joint venture with machine manufacturer
machine manufacturer
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design thinkingattitude 2
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[source: Sony Pictures]
Frank Gehry
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[source: Sony Pictures]
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[source: Sony Pictures]
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[source: Wikimedia Commons]
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?what does that have to do with
business models?
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business model prototyping
napkin sketch Canvas business case field test
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casestudy
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?letʼs brainstorm on a really, really big issue in
the world?
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access to proper
sanitation
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2.6 billion people lack
access
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4 out of 10 people in the world lack even the most simplest latrine to
perform their needs
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* single-use toilet bag* self-sanitizing* biodegradable* turns into fertilizer
* low production cost* (mainly) targeted at poor people
* people already pay for sanitation
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come up with a good business model idea of how Peepoople could build a profitable business and scale quickly
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* single-use toilet bag* self-sanitizing* biodegradable* turns into fertilizer
* low production cost* (mainly) targeted at poor people
* people already pay for sanitation
![Page 99: Business Models By Design · business model innovation without an innovative ... Nespresso changed the business model for espresso. RESULTS. one of the fastest-growing businesses](https://reader030.vdocument.in/reader030/viewer/2022040409/5ec73232730fe931f161764e/html5/thumbnails/99.jpg)
business model toolbox 3
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proj
ect:
scre
en:
date
: au
thor
:
iPad stencil, actual scale, template by hortis, le studio. Feb. 2010. http://hortis.lestudio.ch
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proj
ect:
scre
en:
date
: au
thor
:
iPad stencil, actual scale, template by hortis, le studio. Feb. 2010. http://hortis.lestudio.ch
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THANK YOU!BusinessModelGeneration.com
AlexOsterwalder.com BusinessModelAlchemist.com
Twitter: business_design