Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Business Modeling Starter Kit UxBerlin

2,118 views

Published on

The Business Innovation Kit modifies and extends the basic version of the Business Modeling Starter Kit. Both enable entrepreneurial teams to explore the range of ideas and viable business models for a new or existing business. Where the Starter Kit ends the Business Innovation Kit goes into depth: Exploring revenue models or the customer journey in depth, or competitive advantages that may be achieved through normative orientations such as sustainability. Results provide the basis for business model implementation that proceeds through iterative exploration, elaboration, evaluation, experimentation and evolution of assumptions.

Published in: Business

Business Modeling Starter Kit UxBerlin

  1. 1. Business Modeling Starter Kit Turning ideas into value and innovation Presentation by Prof. Dr. Henning Breuer and María del Mar Agudelo, M.A. May 8th, 2014 Technische Universität Berlin Fakultät für Wirtschaft und Management
  2. 2. / INTRODUCTION
  3. 3. From the Latin innovare:“To renew or to change,” innovation, further than a buzz word, is a decisive competitive factor in our knowledge based economy.
  4. 4. A large variety of business model definitions, their components and how-to approaches have been proposed in the last decade in order to turn ideas into innovation. However, such complexity called for a simplified reference model which, in contrast to the existing ones, emanates from a value-driven perspective.
  5. 5. That simplified reference model is the Business Modeling Starter Kit, an out-of-the-box workshop that empowers entrepreneurial teams to generate new value-based and customer-focused business models with the different stakeholders in mind.
  6. 6. Why the Starter Kit was created? As an answer to recurring requests by innovation teams to conduct business modeling workshops this Do-it- Yourself approach was chosen.
  7. 7. What is the purpose of the Starter Kit? Empowering innovation teams, small business (idea) owners and students to develop business models based on real customer needs and relevant value propositions.
  8. 8. The advanced version is now in English language. It also allows to tackle "wicked problems" such as renewal of energy business. Status Quo of the Starter Kit For more information, see: Breuer, H. & Lüdeke-Freund, F. (2014). Normative Innovation for Sustainable Business Models in Value Networks [Proceedings of XXV ISPIM Innovation Conference. Dublin]. Manuscript in preparation.
  9. 9. // THE ELEMENTS OF THE STARTER KIT
  10. 10. Handbook
  11. 11. Playground
  12. 12. Components Value proposition It refers to the values a company provides to its customers and society. What makes your service or product unique? Why should customers take notice of it? Think of the existential values behind such a proposition...
  13. 13. Stakeholder Segments Descriptions of the most relevant individuals or specific groups for your business. They could be positively or negatively affected by your business.
  14. 14. Touchpoints Customers encounter new products and services along seven touchpoints: (1) Becoming aware of an offering, (2) collecting information, (3) acquiring the chosen product, (4) starting up usage to develop routines and preferences, (5) using the product, (6) altering it and (7) disposing or renewing it.
  15. 15. Distribution Distribution channels describe, from a company viewpoint, how the product gets to the customer (e.g. mobile or partner stores; agents, retailers, wholesalers).
  16. 16. Revenue Model Think about possible combinations of income sources and price models. Several revenue models may be combined.
  17. 17. Partners These are those alliances you consider for your business within the innovation processes. Select your partner with caution: avoid one-sided dependencies and carefully consider which capabilities you require inhouse, what can be done through partners.
  18. 18. Cost Structure The cost-drivers of the model’s initial costs and their development. When going back to the stakeholder segments, consider how to reduce external costs and values lost through your activities in order to create a sustainable business.
  19. 19. More components When modeling with the Starter Kit you may consider which components are the most important for you. If professional communication is at the core of your business, you will consider branding and a corporate vision. If you deal with legal rights, legalities will be a component to discuss.
  20. 20. Describe the value and benefit yourproposal generates and who will profit orbe affected. What have you got to offer the customer? – Give a brief summary of the consumer’s needs: Whichconsumer problem can your proposal solve?– Which customer ideals and wishes are you addressing with your proposal? – Describe how the customer will experience the benefit ofyour product or service. – What would they tell their friends about the benefits ofyour product or service? – What are you promising your customer? How will youachieve it and why in such a way? – What kind of developments could your proposal trigger on the part of the customer? VALUEPROPOSITION FACILITATION CARDS Facilitation Cards Instructions These are the instructions and questions, which will guide you through the workshop. Task This is an overall description of the working step in question. The color code and symbol on the card indicate the corresponding section on the playground.
  21. 21. Case Cards NEWS FOOTBALL JERSEYADVERTISING Since the 60s, soccer clubshave been accepting jerseysponsorship from businesses.For major clubs, it was soonfollowed by touchline adver-tising, and subsequently byadditional advertising rightsin newer media formats suchas television, newscasts andsocial media platforms. Spon-sored presentation gameshave now become part ofpre-season preparations. CASE Tip Each card displays a clue as to which component it belongs to. Designating a card to a particular component must not always be obvious. Discussion counts.
  22. 22. >> How can you reestab-lish and strengthen trustamong your customers? >> How do you proceedfrom the initial transac-tion stage to enduringsustainable customerrelations? Bottlenecks in the supplychain are causing signifi-cant delays in the deliveryof your product. Custom-ers are complaining andorders are in decline. CHALLENGE OI Challenger Cards Tip Challenger cards marked with I (conceptual ideas) help you to develop a new business model, whereas challenger cards marked O (optimization) help you to optimize and examine your business closely.
  23. 23. Value Proposition Stakeholder Segments Touchpoints Distribution Revenue Model Capabilities Partners Cost Structure UXBerlinInnovation Consulting Title Date Evaluation Refinementsheet for Business Modeling www.uxberlin.com // This sheet is adapted from the Business Model Canvas (BusinessModelGeneration.com) Refinement Sheets
  24. 24. /// HOW TO PROCEED
  25. 25. 4 31 2 Place the playground on the table. Place the Case Cards on the playground. Place the Challenger Cards on the playground. Place the Facilitator Cards on the playground. Setting-up the workshop
  26. 26. • It is the place to write the basic initial idea, vision and scope to sum up your project (e.g. your plan to provide sustainable services in Germany). • The case cards help you to learn how existing business models can be mapped onto the ideapool. G R O U N D I N G0
  27. 27. 1         DEMAND This brainstorming exercise gets right to the core of your business idea. Read the questions on the facilitator cards and describe what you have to offer to your customers and why it would appeal to their wishes and needs.
  28. 28. 2         I N T E R A C T I O N By analyzing touchpoints as focal points of value creation and experience, you will explore how to communicate and deliver the value proposition to the customer. You will also discover what kind of return to expect. Keep track of all your ideas in the ideapool.
  29. 29.         PERFORMANCE3 This exercise addresses the business and human capabilities and resources required to fulfill your value proposition and perform the necessary services. Consider which partners could help you and elaborate upon the resulting cost structure. Once again, the facilitator cards will provide the key questions to deal with during this exercise.
  30. 30. 4          M O D E L I N G Time to harvest your ideas! Compile the most promising ideas onto a refinement sheet. Each sheet will represent a distinct business model. Question the proposed business model in depth. Each challenger card will confront you with a different scenario, which may prompt you to rethink your business strategy. Choose only cards that are relevant to you.
  31. 31. N E X T STEPS5 In the sector “open issues” collect sticky notes with critical questions that crop up during the course of the workshop but cannot be discussed immediately. Dealing with these questions is one of a series of further steps. You will find follow-up activities on the facilitator cards.
  32. 32. Idea Pool Get to know the various aspects of business models based on examples. The goal of this exercise is to gain a better understanding of the individual components and their interaction. There’s no such thing as a wrong answer. Discussion among your team is the important factor! Procedure: 1. Take a stack of the example cards and divide them out among your team. Each participant reads out one example card at a time to the rest of the team. 2. Discuss each card with the entire team and think together strategically about which section of the idea pool would be most suitable for the card. 3. Discuss the example as a whole: Try to grasp an under- standing of the interrelation between the individual components. 4. As soon as you’re finished with the warm-up exercise, remove all the example cards from the idea pool and move on to the next step, “Demand”. Describe the value and benefit your proposal generates and who will profit from it. Which groups of people will benefit from the value you’re creating? – Describe your target group: Who will use your service or product? – Who are the potential pilot users or early adopters? – How do your customers live and work? – Which values and attitudes do they have? – What’s important in their lives? What excites them? – How many potential customer segments are there? – Which private customers and which business customers do you wish to reach? Explain how you will fulfill your value proposition for the customer and what you expect in return from the customer. How will your product enter the world of the customer? How will the customer come into contact with it? How will the customer navigate from one touchpoint to the next? – Where will the customer encounter your offer? How can you make such encounters a unique experience for the customer? – How will customers become aware of your products or services? – How can they get informed? – How can they acquire your service or product? – Why and how will they use it for the first time? – How will they use it in their everyday lives? – How can they modify it and how can they dispose of it? – How can you offer your customer support in navigating through the touchpoints? – How can you encourage long-term loyalty for your offer? Think about the skills and resources you need to perform everything you’ve de- veloped up to now. Who are your most important business partners and suppli- ers? – Identify all the organizations and individuals whose tech- nology or resources you’re reliant on in order to develop and market your offer. Describe your current business re- lationship with these partners. Which dependencies exist? – How can you identify and reach potential business part- ners? How can you convince them of the advantages of a co-operation? – Which types of co-operations with potential competitors could make sense? Consider the risks involved. Describe your competitive strategy and the opportuni- ties for growth. Draw up your business idea This exercise will challenge you to question and re-think some aspects of the business model you have just sketched out. Each challenger card illustrates a scenario that will help you to adjust your business model in response to common market dynamics. Cards marked with “O” (Optimization) will help you refine your ideas with the use of scenarios Cards marked with “I” (Ideation) will help you generate new ideas Procedure: 1. Choose scenarios, which are relevant to your business model. You can skip the rest. 2. Choose a card, read the scenario out loud and discuss the outlined challenge with your team. What are the solutions proposed for your business model? 3. Develop your business model further in relation to the scenarios outlined. Work on all the various components of the idea pool simultaneously. 4. Think about how your enterprise can grow in the course of time and how best to protect it against potential competi- tors in the market place. Analyze your current state of progress and plan out the next steps. Assess the maturity levels of your ideas At the end of the session, you should have collected enough ideas on all components to develop at least one business mod- el. Should you have come up with several models, choose one, which you’d like to work on immediately. You’ve probably already recognized which component offers the better options and which has accumulated the greater amount of good ideas, and which one you should take a closer look at. Evaluate the maturity levels of your ideas for each component individually. 1. The ideas are worded in a relatively vague manner or you’re uncertain whether you’ve taken all possible alternatives suf- ficiently into account. With the aid of research and in-depth creative exercises, you can put your ideas into concrete terms. 2. The ideas are straightforward and worded clearly und you’re certain you’ve taken all the relevant options into consideration. Describe how you plan to implement your ideas and analyze the assumptions contained. 3. The ideas are so well defined that they can be implemented in operational measures straight away and the assumptions contained are verifiable. Decide for each component which team member will take over the responsibility for the next steps. Helpful follow-up activities can be found in the second part of the user manual. We wish you the best of success!
  33. 33. //// NEXT STEPS
  34. 34. After the business modeling workshop Time to: 1. Communicate your ideas with an elevator pitch. 2. Collect feedback from different stakeholders. 3. Elaborate upon and evaluate the risks and assumptions with respect to the implementation of your business model.
  35. 35. 1. The elevator pitch
  36. 36. What Describe your business in about three sentences very much to the point. Make it understood in less than thirty seconds.
  37. 37. Why The elevator pitch will help you to focus on the essentials and to convince potential stakeholders or investors. It also helps you to spread the word.
  38. 38. How Try different versions of your pitch with friends, colleagues and business partners. Do they get a clear and sufficient understanding? Ask them to explain your business model to a third party.
  39. 39. Four steps to proceed
  40. 40. 1.1 Attract Start with an interesting statement, quote or observation to draw your audience attention. Explain why they should care.
  41. 41. 1.2 Distinguish Explain why your company and proposition are unique and deserve immediate attention.
  42. 42. 1.3 Engage Engage your audience by asking open question and sharing a dramatic story.
  43. 43. 1.4 Call to action The pitch ends with a request for a meeting or phone call. Which response do you want your contact to complete?
  44. 44. Tip Consider the most important aspects of your business: the value you provide and problem you solve, the market, your revenue model and competitive advantage, and your unique capabilities.
  45. 45. 2. Feedback
  46. 46. What Collect feedback to your business ideas from unprejudiced people.
  47. 47. Why Asking strangers will tell you even more about the strengths and weaknesses of your idea. Even though none of these answers will be representative, challenging your ideas from multiple perspectives helps to protect you from unpleasant surprises later on.
  48. 48. How • Render your idea in tangible ways (brief description, illustrations and storyboards, films or prototypes). • Ask your audience open questions; ask them about their impressions of your idea: what they like about it, what they do not like and in which situations they would be interested in your proposition. • Speak your customer’s language; keep your questions as simple and as short as possible.
  49. 49. A brief explanation contains: • The value or problem you address with your idea. • Your unique or superior solution to this problem. • How the solution can be provided.
  50. 50. 3. Five E
  51. 51. “Learning is the way from great ideas to practice.”The Five E Framework for Lean Venturing describes the elaboration and implementation of business models as a learning process that startups and new business units need to go through.
  52. 52. This process may be organized by learning objectives on five levels of maturity —exploration, elaboration, evaluation, experiments, evolution— and backed up with scaffolding tools and methods.
  53. 53. Exploration Explore potential business models using the Business Modeling Starter Kit. Conduct several modeling sessions with different participants and some time in between sessions.
  54. 54. Elaboration Desk research, creative exercises and design thinking methods allow you to consider the full range of options for each component and to select and quantify the most promising ones.
  55. 55. Evaluation Interpret your ideas as assumptions and evaluate each of them through expert and customer development interviews. Refine them according to the feedback and analyze the inherent risks.
  56. 56. Experiments Some critical issues have to be tested empirically —e.g. the willingness-to- pay of potential customers—. Design a sprint plan of investigation in such a way that you learn about the reasons why your assumptions are confirmed or rejected.
  57. 57. Evolution Your own ideals and normative vision, as well as alternative future scenarios and hints from diverse stakeholders, provide insights on how to run your business in a sustainable manner.
  58. 58. Specify and differentiate the assumptions within your business model, evaluate them with experts and clients in a test market environment.
  59. 59. ///// NEXT STEPS
  60. 60. Only iterative experimentation can overcome barriers and take advantage of the potential and value of alternative business models. For more information about this topic, visit: www.uxberlin.com
  61. 61. THANK YOU!
  62. 62. The information used for this presentation is extracted from the Business Modeling Starter Kit’s handbook and the article:“Lean Venturing: Learning to Create New Business through Exploration, Elaboration, Evaluation, Experimentation, and Evolution,”written by Prof. Dr. Henning Breuer for the International Journal of Innovation Management, Vol. 17, No. 3 (June 2013)*. * Download it for free from: http://www.worldscientific.com/doi/abs/10.1142/S1363919613400136

×