Download - Module - Business Model Generation
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INTRODUCTION TO BUSINESS MODEL DESIGNModule: Value Proposition and Business
Model DesignLecturer: [Insert name]Date: [Insert date]
PRESENTATION SUPPORTED BY
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Do we really understand why some organisations are more successful than others?
How did Apple become such a high valued company?
Why is Microsoft still the market leader in operating systems if Apple products and their software are better?
How is it possible that some start-ups can disrupt entire industries while the market leaders cannot do anything against it?
Just some of the question we should know an answer for …
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In this course you will gain knowledge about social entrepreneurship and social entrepreneurs
By the end of this session you should be able:• to define what a business model is and
define its importance in today’s business environment
• to name each building block of the Business Model Canvas and describe different characterisations each building block can have
• to analyse existing and develop new business models using the Business Model Canvas, if sufficient information on the context of the business is available
This is a very hands on course! Each lecture we will take one of the 9 building blocks of the most used business model framework and use 2 cases to explore the building block in detail. Applying your learnings from the previous weeks, you will analyse 2 additional cases at the end of the course from A to Z.
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Table of Contents
• DEFINITION of the business model term1
• Business model FRAMEWORKS2
• The BUSINESS MODEL CANVAS3
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A business model is defined as the rationale
of how an organization creates and delivers value
to its customers and captures value in return
Defining the term business model
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Overview of business model frameworks (1/2)
Source Components #Horowitz (1996) Price, product, distribution, organizational characteristics, and technology 5Viscio and Pasternak (1996) Global core, governance, business units, services, and linkages 5Timmers (1998) Product/service/information flow architecture, business actors and roles, actor
benefits, revenue sources, and marketing strategy5
Markides (1999) Product innovation, customer relationship, infrastructure management, and financial aspects
4
Donath (1999) Customer understanding, marketing tactics, corporate governance, and intranet/extranet capabilities
5
Chesbrough and Rosenbaum (2000)
Value proposition, target markets, internal value chain structure, cost structure and profit model, value network, and competitive strategy
6
Gordijn et al. (2001) Actors, market segments, value offering, value activity, stakeholder network, value interfaces, value ports, and value exchanges
8
Linder and Cantrell (2001) Pricing model, revenue model, channel model, commerce process model, Internet-enabled commerce relationship, organizational form, and value proposition
8
Petrovic et al. (2001) Value model, resource model, production model, customer relations model, revenue model, capital model, and market model
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Overview of business model frameworks (2/2)
Source Components #Horowitz (1996) Price, product, distribution, organizational characteristics, and technology 5Viscio and Pasternak (1996) Global core, governance, business units, services, and linkages 5Timmers (1998) Product/service/information flow architecture, business actors and roles, actor
benefits, revenue sources, and marketing strategy5
Markides (1999) Product innovation, customer relationship, infrastructure management, and financial aspects
4
Donath (1999) Customer understanding, marketing tactics, corporate governance, and intranet/extranet capabilities
5
Chesbrough and Rosenbaum (2000)
Value proposition, target markets, internal value chain structure, cost structure and profit model, value network, and competitive strategy
6
Gordijn et al. (2001) Actors, market segments, value offering, value activity, stakeholder network, value interfaces, value ports, and value exchanges
8
Linder and Cantrell (2001) Pricing model, revenue model, channel model, commerce process model, Internet-enabled commerce relationship, organizational form, and value proposition
8
Petrovic et al. (2001) Value model, resource model, production model, customer relations model, revenue model, capital model, and market model
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?Discussion question: Which elements of the frameworks do you think are key?
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The Business Model Canvas (BMC)
The BMC contains 9 building blocks
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The Business Model Canvas (BMC)
The canvas tries to describe the
infrastructure (how), the offering (what),
the customers (who) and the finances
(how much)
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The Business Model Canvas (BMC): An example
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?Discussion question: Which components of other business model frameworks are missing in the BMC?
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The next weeks
Each week we will explore the 9 building blocks of the business model canvas one after another.
We will do so, by discussing two companies and what. Your job is it to conduct EXTENSIVE research
on both companies so that we can start analysing them in the next session
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THANK YOUFOR YOUR ATTENTION
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BMC01 – CUSTOMER SEGMENTSModule: Value Proposition and Business
Model DesignLecturer: [Insert name]Date: [Insert date]
PRESENTATION SUPPORTED BY
[Insert your logo here]
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A short reminder: The Business Model Canvas (BMC)
The canvas tries to describe the
infrastructure (how), the offering (what), the customers (who) and
the finances (how much)
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The Business Model Canvas (BMC)
This is what we talk about today
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Customer segments
Key Questions:• For whom are we creating value?• Who are our most important customers?
Potential characteristics• Mass Market• Niche Market• Segmented• Diversified• Multi-sided Platform
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?Task: find at least three examples for each of the potential characteristics outlined on the previous slide
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Lets take a closer look!
Describe in detail the customer segments of the following companies:
Create groups, get up your chairs and using Post-it notes, flipcharts/flip chart paper put on the wall, whiteboards or whatever
available to work in a more dynamic setting.
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?Question: Which problems did you have when characterising the customer segments?
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Reminder
Do not forget to make a picture of your work (you will need it in the next sessions)
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THANK YOUFOR YOUR ATTENTION
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BMC02 – VALUE PROPOSITIONModule: Value Proposition and Business
Model DesignLecturer: [Insert name]Date: [Insert date]
PRESENTATION SUPPORTED BY
[Insert your logo here]
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A short reminder: The Business Model Canvas (BMC)
The canvas tries to describe the
infrastructure (how), the offering (what), the customers (who) and
the finances (how much)
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The Business Model Canvas (BMC)
This is what we talk about today
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Value proposition
Key questions:• What value do we deliver to the customer?• Which one of our customer’s problems are we helping to solve? • What bundles of products and services are we offering to each
Customer Segment?• Which customer needs are we satisfying?
Potential characteristics• Newness• Performance• Customization• “Getting the Job Done”
• Design• Brand/Status• Price• Cost Reduction
• Risk Reduction• Accessibility• Convenience
/Usability
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?Task: find at least one example for each of the potential characteristics outlined on the previous slide
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Lets take a closer look!
Describe in detail the value propositionof the following companies:
Create groups, get up your chairs and using Post-it notes, flipcharts/flip chart paper put on the wall, whiteboards or whatever
available to work in a more dynamic setting.
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?Question: Which problems did you have when characterising the value propositions?
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Reminder
Do not forget to make a picture of your work (you will need it in the next sessions)
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THANK YOUFOR YOUR ATTENTION
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BMC03 – CHANNELS
Module: Value Proposition and Business Model Design
Lecturer: [Insert name]Date: [Insert date]
PRESENTATION SUPPORTED BY
[Insert your logo here]
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A short reminder: The Business Model Canvas (BMC)
The canvas tries to describe the
infrastructure (how), the offering (what), the customers (who) and
the finances (how much)
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The Business Model Canvas (BMC)
This is what we talk about today
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Channels
Key questions:• Through which Channels do our Customer Segments want to be
reached? • How are we reaching them now?• How are our Channels integrated? • Which ones work best?• Which ones are most cost-efficient? • How are we integrating them with customer routines?
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Channels
Channel phases:
• Awareness - How do we raise awareness about our company’s products and services?
• Evaluation - How do we help customers evaluate our organization’s Value Proposition?
• Purchase - How do we allow customers to purchase specific products and services?
• Delivery - How do we deliver a Value Proposition to customers?• After sales - How do we provide post-purchase customer support?
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Lets take a closer look!
Describe in detail the channels used byof the following companies:
Create groups, get up your chairs and using Post-it notes, flipcharts/flip chart paper put on the wall, whiteboards or whatever
available to work in a more dynamic setting.
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?Question: Which problems did you have when characterising the value propositions?
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Reminder
Do not forget to make a picture of your work (you will need it in the next sessions)
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THANK YOUFOR YOUR ATTENTION
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BMC04 – CUSTOMER RELATIONSHIPSModule: Value Proposition and Business
Model DesignLecturer: [Insert name]Date: [Insert date]
PRESENTATION SUPPORTED BY
[Insert your logo here]
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A short reminder: The Business Model Canvas (BMC)
The canvas tries to describe the
infrastructure (how), the offering (what), the customers (who) and
the finances (how much)
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[Insert your logo here]
The Business Model Canvas (BMC)
This is what we talk about today
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Customer relationships
Key questions• What type of relationship does each of our Customer• Segments expect us to establish and maintain with them?• Which ones have we established? • How are they integrated with the rest of our business model?• How costly are they?
Examples• Personal assistance• Dedicated Personal Assistance• Self-Service• Automated Services
• Communities• Co-creation
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?Task: find at least two examples for each of the potential characteristics outlined on the previous slide
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[Insert your logo here]
Lets take a closer look!
Describe in detail the customer relationshipsof the following companies:
Create groups, get up your chairs and using Post-it notes, flipcharts/flip chart paper put on the wall, whiteboards or whatever
available to work in a more dynamic setting.
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?Question: Which problems did you have when characterising the customer relationships?
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Reminder
Do not forget to make a picture of your work (you will need it in the next sessions)
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THANK YOUFOR YOUR ATTENTION
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BMC05 – REVENUE STREAMSModule: Value Proposition and Business
Model DesignLecturer: [Insert name]Date: [Insert date]
PRESENTATION SUPPORTED BY
[Insert your logo here]
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[Insert your logo here]
A short reminder: The Business Model Canvas (BMC)
The canvas tries to describe the
infrastructure (how), the offering (what), the customers (who) and
the finances (how much)
![Page 54: Module - Business Model Generation](https://reader034.vdocument.in/reader034/viewer/2022052514/58a843af1a28ab30658b6617/html5/thumbnails/54.jpg)
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[Insert your logo here]
The Business Model Canvas (BMC)
This is what we talk about today
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Customer relationships
Key questions• For what value are our customers really willing to pay?• For what do they currently pay? • How are they currently paying? • How would they prefer to pay? • How much does each Revenue Stream contribute to overall
revenues?
Types:• Asset sale• Usage fee• Subscription Fees• Lending/Renting/Leasing
• Licensing• Brokerage fees• Advertising
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Customer relationships
Fixed pricing• List Price• Product feature dependent• Customer segment dependent• Volume dependent
Dynamic pricing• Negotiation( bargaining)• Yield Management• Real-time-Market
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Lets take a closer look!
Describe in detail the revenue streamsof the following companies:
Create groups, get up your chairs and using Post-it notes, flipcharts/flip chart paper put on the wall, whiteboards or whatever
available to work in a more dynamic setting.
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?Question: Which problems did you have when characterising the revenue streams?
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Reminder
Do not forget to make a picture of your work (you will need it in the next sessions)
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THANK YOUFOR YOUR ATTENTION
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BMC06 – KEY RESOURCESModule: Value Proposition and Business
Model DesignLecturer: [Insert name]Date: [Insert date]
PRESENTATION SUPPORTED BY
[Insert your logo here]
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[Insert your logo here]
A short reminder: The Business Model Canvas (BMC)
The canvas tries to describe the
infrastructure (how), the offering (what), the customers (who) and
the finances (how much)
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[Insert your logo here]
The Business Model Canvas (BMC)
This is what we talk about today
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Key resources
Key questions• What Key Resources do our Value Propositions require?• Our Distribution Channels? Customer Relationships?• Revenue Streams?
Types of resources• Physical• Intellectual (brand patents, copyrights, data)• Human• Financial
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?Task: find at least two examples for companies which are primary depending on each of the resource types
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[Insert your logo here]
Lets take a closer look!
Describe in detail the key resourcesof the following companies:
Create groups, get up your chairs and using Post-it notes, flipcharts/flip chart paper put on the wall, whiteboards or whatever
available to work in a more dynamic setting.
![Page 67: Module - Business Model Generation](https://reader034.vdocument.in/reader034/viewer/2022052514/58a843af1a28ab30658b6617/html5/thumbnails/67.jpg)
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?Question: Which problems did you have when characterising the key resources?
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[Insert your logo here]
Reminder
Do not forget to make a picture of your work (you will need it in the next sessions)
![Page 69: Module - Business Model Generation](https://reader034.vdocument.in/reader034/viewer/2022052514/58a843af1a28ab30658b6617/html5/thumbnails/69.jpg)
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THANK YOUFOR YOUR ATTENTION
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BMC07 – KEY ACTIVITIESModule: Value Proposition and Business
Model DesignLecturer: [Insert name]Date: [Insert date]
PRESENTATION SUPPORTED BY
[Insert your logo here]
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[Insert your logo here]
A short reminder: The Business Model Canvas (BMC)
The canvas tries to describe the
infrastructure (how), the offering (what), the customers (who) and
the finances (how much)
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The Business Model Canvas (BMC)
This is what we talk about today
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Customer relationships
Key questions• What Key Activities do our Value Propositions require?• Our Distribution Channels? • Customer Relationships?• Revenue streams?
Categories• Production• Problem Solving• Platform/Network
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?Task: find at least three examples for each of the categories outlined on the previous slide
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[Insert your logo here]
Lets take a closer look!
Describe in detail the key activitiesof the following companies:
Create groups, get up your chairs and using Post-it notes, flipcharts/flip chart paper put on the wall, whiteboards or whatever
available to work in a more dynamic setting.
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?Question: Which problems did you have when characterising the key activitites?
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77
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Reminder
Do not forget to make a picture of your work (you will need it in the next sessions)
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[Insert your logo here]
78
THANK YOUFOR YOUR ATTENTION
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BMC08 – KEY PARTNERSHIPSModule: Value Proposition and Business
Model DesignLecturer: [Insert name]Date: [Insert date]
PRESENTATION SUPPORTED BY
[Insert your logo here]
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80
[Insert your logo here]
A short reminder: The Business Model Canvas (BMC)
The canvas tries to describe the
infrastructure (how), the offering (what), the customers (who) and
the finances (how much)
![Page 81: Module - Business Model Generation](https://reader034.vdocument.in/reader034/viewer/2022052514/58a843af1a28ab30658b6617/html5/thumbnails/81.jpg)
81
[Insert your logo here]
The Business Model Canvas (BMC)
This is what we talk about today
![Page 82: Module - Business Model Generation](https://reader034.vdocument.in/reader034/viewer/2022052514/58a843af1a28ab30658b6617/html5/thumbnails/82.jpg)
82
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Customer relationships
Key questions• Who are our Key Partners? • Who are our key suppliers?• Which Key Resources are we acquiring from partners?• Which Key Activities do partners perform?
Motivations for partnerships:• Optimization and economy • Reduction of risk and uncertainty• Acquisition of particular resources and activities
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?Task: find at least three examples of companies representing each partnering motivation
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84
[Insert your logo here]
Lets take a closer look!
Describe in detail the key partnershipsof the following companies:
Create groups, get up your chairs and using Post-it notes, flipcharts/flip chart paper put on the wall, whiteboards or whatever
available to work in a more dynamic setting.
![Page 85: Module - Business Model Generation](https://reader034.vdocument.in/reader034/viewer/2022052514/58a843af1a28ab30658b6617/html5/thumbnails/85.jpg)
85
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?Question: Which problems did you have when characterising the key partners?
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86
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Reminder
Do not forget to make a picture of your work (you will need it in the next sessions)
![Page 87: Module - Business Model Generation](https://reader034.vdocument.in/reader034/viewer/2022052514/58a843af1a28ab30658b6617/html5/thumbnails/87.jpg)
[Insert your logo here]
87
THANK YOUFOR YOUR ATTENTION
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BMC09 – COST STRUCTUREModule: Value Proposition and Business
Model DesignLecturer: [Insert name]Date: [Insert date]
PRESENTATION SUPPORTED BY
[Insert your logo here]
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89
[Insert your logo here]
A short reminder: The Business Model Canvas (BMC)
The canvas tries to describe the
infrastructure (how), the offering (what), the customers (who) and
the finances (how much)
![Page 90: Module - Business Model Generation](https://reader034.vdocument.in/reader034/viewer/2022052514/58a843af1a28ab30658b6617/html5/thumbnails/90.jpg)
90
[Insert your logo here]
The Business Model Canvas (BMC)
This is what we talk about today
![Page 91: Module - Business Model Generation](https://reader034.vdocument.in/reader034/viewer/2022052514/58a843af1a28ab30658b6617/html5/thumbnails/91.jpg)
91
[Insert your logo here]
Customer relationships
Key questions• What are the most important costs inherent in our business model? • Which Key Resources are most expensive? • Which Key Activities are most expensive?
Is your business more:• Cost Driven (leanest cost structure, low price value proposition,
maximum automation, extensive outsourcing)• Value Driven (focused on value creation, premium value proposition)
Sample characteristics:• Fixed Costs (salaries, rents, utilities)• Variable costs
• Economies of scale• Economies of scope
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?Task: find at least three examples for cost and value-driven companies, and one where it changed
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93
[Insert your logo here]
Lets take a closer look!
Describe in detail the cost structureof the following companies:
Create groups, get up your chairs and using Post-it notes, flipcharts/flip chart paper put on the wall, whiteboards or whatever
available to work in a more dynamic setting.
![Page 94: Module - Business Model Generation](https://reader034.vdocument.in/reader034/viewer/2022052514/58a843af1a28ab30658b6617/html5/thumbnails/94.jpg)
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?Question: Which problems did you have when characterising the key partners?
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95
[Insert your logo here]
Reminder
Do not forget to make a picture of your work (you will need it in the next sessions)
![Page 96: Module - Business Model Generation](https://reader034.vdocument.in/reader034/viewer/2022052514/58a843af1a28ab30658b6617/html5/thumbnails/96.jpg)
[Insert your logo here]
96
THANK YOUFOR YOUR ATTENTION
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BUSINESS MODEL CASESModule: Value Proposition and Business
Model DesignLecturer: [Insert name]Date: [Insert date]
PRESENTATION SUPPORTED BY
[Insert your logo here]
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The bigger picture
Having separately analyse each component of Google’s and Walt Disney’s business model, it is time to look at the bigger picture.
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The bigger picture
It is now your task to analyse the business model as a whole and develop new business model which Google resp. Walt Disney could implement in the future.
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The bigger picture
To do so, split in groups and hang the business model canvas on the wall (including all your results from the previous sessions) and develop different scenarios for future business models.
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The bigger picture
Evaluate each scenario and present your results later in front of the other groups (there you also have to detail which criteria you used to evaluate the.
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102
THANK YOUFOR YOUR ATTENTION
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BUSINESS MODEL CASE II – OWN IDEAModule: Value Proposition and Business
Model DesignLecturer: [Insert name]Date: [Insert date]
PRESENTATION SUPPORTED BY
[Insert your logo here]
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From existing to new ideas
In the past weeks you have learned how to analyse existing business models.
Now it is time to develop one from the scratch.
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Your task
Build groups and select one idea which has not yet been implemented. This can either be an idea you have yourself or you might take one from the internet (e.g. you can look for innovative ideas at crowdfunding platform).
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Your task
Put the business model canvas on the wall and get started.
Be prepared to present your results to the other groups.
ENJOY!
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107
THANK YOUFOR YOUR ATTENTION