How about arming yourself with new tools for the next project? Many have stumbled upon the Business Model Canvas, yet only a few of you use it as part of their standard repertoire. Together with Jan Schmiedgen a ‘Service Design Drinks’ session tried to change that. Jan is a co-founder of Global Waste Ideas and wrote his Master’s thesis on ‘The Interrelations of Business Model Innovation, Service Design Thinking and the Production of Meaning’. He gave a short introduction to the canvas and led a hands-on session. This is his slide deck …

1. Visual Business Modeling
Some Fun with Alex’ Osterwalders BMC | Service Design Drinks Berlin, 03.09.2012
1

2. Choices & Consequences Activity Networks Value Flow Mapping for Ecosystems
Value Configuration Perspective: !
Tom Hulmes Canvas (IDEO) Patrick Stählers Canvas (Fluidmind)
Chains/Shops/Networks
!
etc.
Other »Scientific Conceptualisations« Fraunhofer IAO Canvas
Image Credits / Sources in order of appearance: Casadesus-Masanell, R., & Ricart, J. E. (2011). How to Design A Winning Business Model. Harvard Business Review,
89(1/2), 100–107. // Porter, M. E. (1996). What is Strategy? Harvard Business Review, (November - December). // Ouden, E. den. (2011). Innovation Design: Creating
Value for People, Organizations and Society (1st ed.). Springer London. // Fjeldstad, Ø. D., & Stabell, C. B. (1998). Configuring Value for Competitive Advantage: On
Chains, Shops, and Networks. Strategic Management Journal,, Vol 19, 413–437. // valuenetworksandcollaboration.com, 2011 // Tom Hulme (http://weijiblog.com/
startup-tools/) // Patrick Stähler (http://blog.business-model-innovation.com/tools/) // Johnson, M. W., Christensen, C. M., & Kagermann, H. (2008). Reinventing Your
Business Model. Harvard Business Review, 86(12), 50–59. // Fraunhofer IAO (http://moby.iao.fraunhofer.de/)

3. Osterwalders Business Model Canvas: The Building Blocks
Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl) 3

4. Customer Segments
Which customers do we serve?
What are the jobs they need to get done?
Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl) 4

5. Value Proposition
Tip: Use the Value
Proposition-
Designer!
What do we offer them? Which »problem« do we
really solve? What value do we really provide?
Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl) 5

6. Channels
How can we best reach/serve each customer segment?
What are the best interaction/touch points?
Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl) 6

7. Relationships
What relations shall we establish with our customer segments?
Personal? Automated? Acquisitive? Retentive?
Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl) 7

8. Relationships
I n te r f ac e
O f fe r i ng C us t ome r
What relations shall we establish with our customer segments?
Personal? Automated? Acquisitive? Retentive?
Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl) 7

9. Revenue Streams
What are our customers really willing to pay for?
How? Transactional or recurring revenues?
images by JAM
Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl) 8

10. Key Resources
Which resources and assets are critical
to successfully run our business?
images by JAM
Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl) 9

11. Key Activities
What essential key activities do we have to
perform to deliver our value proposition?
images by JAM
Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl) 10

12. Key Partners
Who are critical partners and suppliers leveraging our business model?
With whom do we co-create value?
images by JAM
Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl) 11

13. Key Partners
t r uc t u re
I nf ras
Who are critical partners and suppliers leveraging our business model?
With whom do we co-create value?
images by JAM
Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl) 11

14. Cost Structure
What is our resulting cost structure?
Which key elements drive costs?
Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl) 12

15. Cost Structure
Fi n ance
What is our resulting cost structure?
Which key elements drive costs?
Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl) 12

16. Key Value
Activities Proposition Relationships
Key Customer
Partners Segments
Cost Revenue
Structure Streams
Key
Resources Channels
Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl) 13

17. Starting Points: Resource-Driven
Key Value
Activities Proposition Relationships
Key Customer
Partners Segments
Cost Revenue
Structure Streams
Key
Resources Channels
Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl) 14

18. Starting Points: Offer-Driven
Key Value
Activities Proposition Relationships
Key Customer
Partners Segments
Cost Revenue
Structure Streams
Key
Resources Channels
Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl) 15

19. Starting Points: Customer-Driven
Key Value
Activities Proposition Relationships
Key Customer
Partners Segments
Cost Revenue
Structure Streams
Key
Resources Channels
Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl) 16

20. Starting Points: Finance-Driven
Key Value
Activities Proposition Relationships
Key Customer
Partners Segments
Cost Revenue
Structure Streams
Key
Resources Channels
Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl) 17

21. Starting Points: Multiple-Epicenter-Driven
Key Value
Activities Proposition Relationships
Key Customer
Partners Segments
Cost Revenue
Structure Streams
Key
Resources Channels
Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl) 18

22. Key Value
Activities Proposition Relationships
Key Customer
Partners Segments
Cost Revenue
Structure Streams
Key
Resources Channels
Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl) 19

23. Key Value
Activities Proposition Relationships
Key Customer
Partners Segments
C re ate /R
/ Re duc e aise
Elim i n a te Va l ue
Co s ts
Cost Revenue
Structure Streams
Key
Resources Channels
Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl) 19

24. Key Value
Activities Proposition Relationships
Best
Sustainable
Key Equilibrium Customer
Partners Segments
C re ate /R
/ Re duc e aise
Elim i n a te Va l ue
Co s ts
x. v a l ue m a x. v a l
ma f or f or t he u
ue
c ap t u re se r
mp a ny
th e co
Cost Revenue
Structure Streams
Key
Resources Channels
Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl) 19

25. Video Gaming Strategy Canvas: Nintendo Wii (in 2007)
Key Value
Activities Proposition Relationships
Nintendo Wii Microsoft Xbox 360 Sony PS3
Key Customer
Partners Segments
C re ate /R
Re duc e
Value Level & Price
/ aise
Elim i n a te Va l ue
Co s ts
Cost Revenue
Structure Streams
s
isk
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Key
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ac
DV
vit
CP
GP
te
Pri
D
on
Resources Channels
Re
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ys
Mo
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Fa
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ec
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os
Do
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20

26. KP KA VP CR CS
KR CH
CS RS
Nintendo Wii (in 2007) eliminate reduce create raise unchanged

27. KP KA VP CR CS
state-of-the-art
chip development
male
»hardcore
gamers«
KR CH
passive immersion
with high-end
n e w p r o p r ie t performance and
ar y
te c h n o l o g y graphics
CS RS
c o n s o le
su b s idie s
Nintendo Wii (in 2007) eliminate reduce create raise unchanged

28. KP KA VP CR CS
state-of-the-art
chip development
g ame
de ve l o p e r
s
male
»hardcore
gamers«
KR CH
passive immersion
with high-end
n e w p r o p r ie t performance and retail
game ar y
developers te c h n o l o g y graphics distribution
CS RS
royalties
c o n s o le from game
su b s idie s developers
Nintendo Wii (in 2007) eliminate reduce create raise unchanged

29. KP KA VP CR CS
state-of-the-art
chip development
g ame
de ve l o p e r
s
male
»hardcore
gamers«
KR CH
passive immersion
with high-end
n e w p r o p r ie t performance and retail
game ar y
developers te c h n o l o g y graphics distribution
CS RS
technology
development
costs co n s o le royalties
c o n s o le uc t io n from game
su b s idie s pro d s
cos t developers
Nintendo Wii (in 2007) eliminate reduce create raise unchanged

30. KP KA VP CR CS
state-of-the-art mo t i o n
chip development
c o n t ro l g ame
le d de ve l o p e r
g am i ng s
a l te r n a t i ve
g ame c h once p t u t, f un f
re s e a rc rko er y ac t o r male
, wo e c o v e x pe r , so cial
o rt a l r
sp ic ie n c e »hardcore
f am i l »
ic ro - r p h ys y gamers«
STM c s f o
ro n i
e le c t EMS KR physical activity, CH
M
le rom e te rs social get-together
ac c e m o t io n c asua l
n t ro l
co
te c h n olo gy g ame rs
passive immersion
with high-end
n e w p r o p r ie t performance and families
game ar y retail
developers te c h n o l o g y graphics distribution gi r ls
CS RS
technology
development
costs co n s o le royalties
c o n s o le uc t io n from game
su b s idie s pro d s
cos t developers
Nintendo Wii (in 2007) eliminate reduce create raise unchanged

31. KP KA VP CR CS
state-of-the-art mo t i o n
chip development
c o n t ro l g ame
standard le d de ve l o p e r
component g am i ng s
hardware
a l te r n a t i ve
manufacturers once p t
g ame c h u t, f un f
re s e a rc rko er y ac t o r male
, wo e c o v e x pe r , so cial
o rt a l r
sp ic ie n c e retail store »hardcore
f am i l » involvement
ic ro - r p h ys y gamers«
STM c s f o
ro n i
e le c t EMS KR physical activity, CH
M
le rom e te rs social get-together
ac c e m o t io n c asua l
n t ro l
co
te c h n olo gy g ame rs
passive immersion
with high-end
n e w p r o p r ie t performance and families
game ar y retail
developers te c h n o l o g y graphics distribution gi r ls
CS RS
technology
development
costs co n s o le royalties h a rd w
c o n s o le uc t io n from game s a le s a re
su b s idie s pro d s pro f i
cos t developers t
Nintendo Wii (in 2007) eliminate reduce create raise unchanged

32. KP KA VP CR CS
state-of-the-art mo t i o n
chip development
c o n t ro l g ame
standard le d de ve l o p e r
component g am i ng s
hardware
a l te r n a t i ve Desirability
manufacturers once p t
g ame c h u t, f un f
re s e a rc rko er y ac t o r male
, wo e c o v e x pe r , so cial
o rt a l r
sp ic ie n c e retail store »hardcore
f am i l » involvement
ic ro - r p h ys y gamers«
STM c s f o
ro n i
e le c t EMS KR physical activity, CH
M
le rom e te rs social get-together
ac c e m o t io n c asua l
n t ro l
co
te c h n olo gy Best g ame rs
Sustainable
passive immersion
with high-end
game
n e w p r o p r ie t
ar y
Equilibrium
performance and retail families
developers te c h n o l o g y graphics distribution gi r ls
Feasibility Viability
CS RS
technology
development
costs co n s o le royalties h a rd w
c o n s o le uc t io n from game s a le s a re
su b s idie s pro d s pro f i
cos t developers t
Nintendo Wii (in 2007) eliminate reduce create raise unchanged

33. Key Value
Activities Proposition Relationships
Key Customer
Partners Segments
Cost Revenue
Structure Streams
Key
Resources Channels
Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl) 22

34. Key Value
Activities Proposition Relationships
Key Customer
Partners Segments
10:
MI
NU
T
00
ES
Cost Revenue
Structure Streams
Key
Resources Channels
Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl) 22

35. What I haven’t told you
23

36. Want to know more? Join the Business Model Generation!
businessmodelgeneration.com/book businessmodelyou.com
24

37. … and start following these Guys and Organisations!
Alexander Osterwalder: http://www.businessmodelalchemist.com
Patrick Stähler: http://blog.business-model-innovation.com
Steve Blank: http://steveblank.com
Doblin Group: http://news.doblin.com
Innosight: http://www.innosight.com
BusinessModelsInc: http://www.businessmodelsinc.com
DesignWorks @ Rotman: http://bit.ly/TYRLhG
Illinois Institute of Design: http://www.id.iit.edu/news
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38. Design-driven
strategic business
planning
Jan Schmiedgen // Zwiestädter Straße 7 // 12055 Berlin // +49 173 3 83 15 26 // kontakt@schmiedgen.eu 26

39. Backup: Some Examples of well known Business Models
27

40. Image Credit: © 2011 Business Models Inc. (www.businessmodelsinc.com) www.businessmodelgeneration.com

41. Image Credit: © 2008 XPLANE (www.xplane.com) & Alexander Osterwalder (www.alexosterwalder.com) 29

42. Image Credit: © 2008 XPLANE (www.xplane.com) & Alexander Osterwalder (www.alexosterwalder.com) 30

43. Image Credit: © 2011 Business Models Inc. (www.businessmodelsinc.com) www.businessmodelgeneration.com

44. Image Credit: © 2011 Business Models Inc. (www.businessmodelsinc.com) www.businessmodelgeneration.com