SOME EXAMPLES OF BUSINESS MODELS 3 Key Messages for the CEO

FOR THE CEO… (corporate or start-up) 3 KEY MESSAGES FOR THE CEO CEO FORUM Taipei, December 11th 2013 Patrick van der Pijl

TODAY…

I HAVE THREE KEY MESSAGES FOR YOU

WHY WE NEED TO CHANGE

HOW WE CAN DO THAT

D.I.D.

LET’S START…

WHY WE NEED TO CHANGE

DESIGNING BETTER BUSINESSES

WE NEED TO RETHINK THE WAY WE DO BUSINESS!

WHY?

TODAY…

…WE SEE FORCES WE HAVEN’T SEEN BEFORE…

…WE CALL THEM NEW RULES OF THE BUSINESS GAME.

SUSTAINABILITY

CREDIT CRISIS

UPCOMING MARKETS?

MARKETS CAME ALREADY UP

NEW GENERATION generation y

BETTER PICTURE?

GENERATION Z

ONLINE REVOLUTION

NEW TECHOLOGY

SOME EXAMPLES OF BUSINESS MODELS WE SEE RIGHT NOW…

RE-IMAGINATION NEWS AND INFORMATION FLOW…

From reporters...

…to twitter

RE-IMAGINATION OF BOOKS

From books...!

…to kindle

RE-IMAGINATION OF CALLING A CAB

From waiting in the rain...

…to a single push of a button

RE-IMAGINATION OF VIDEO

From video store...

…to youtube

RE-IMAGINATION OF NAVIGATION

From map...

…to navigon

The speed of developments has increased…!

resulting in shorter shelf lives of companies…!

and focusing on product innovation is not enough… !

HOW WE CAN DO THAT

WHAT WE LEARNED…

IS ABOUT

NEW TOOLS

NEW SKILLS

NEW MINDSET

FOR THE CEO… (corporate or start-up)

AND HIS TEAM!

SO WHAT ARE NEW TOOLS?

WHAT IS A BUSINESS MODEL?

IMAGINE (BOARDROOM) CONVERSATIONS…

WE NEED NEW TOOLS TO UNDERSTAND AND CRAFT NEW BUSINESS MODELS

THE BUSINESS MODEL CANVAS

A BUSINESS MODEL DESCRIBES THE RATIONALE OF HOW AN ORGANIZATION CREATES, DELIVERS, AND CAPTURES VALUE

1 CUSTOMER SEGMENTS

2 VALUE PROPOSITIONS

3 CHANNELS

4 CUSTOMER RELATIONSHIPS

5 REVENUE STREAMS

6 KEY RESOURCES

7 KEY ACTIVITIES

8 KEY PARTNERS

9 COST STRUCTURE

KEY ACTIVITIES VALUE PROPOSITIONS CUSTOMER SEGMENTS KEY PARTNERS COST STRUCTURE CUSTOMER RELATIONSHIPS KEY RESOURCES CHANNELS REVENUE STREAMS

Let us look at the business model of Nespresso

The Business Model of Nespresso PARTNER NETWORK KEY ACTIVITIES B2C Distribution Machine Manufacturer Marketing OFFER CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS Nespresso Club Households DISTRIBUTION CHANNELS Business Nespresso Machines Production KEY RESOURCES Patents Brand Distribution Channels Coffee Production Facilities COST STRUCTURE Production Marketing B2C Distribution Nespresso Pads Mail Order Retail Nespresso .com Call Center Nespresso Stores REVENUE STREAMS 1 x Machine Sales Repetitive Pad Sales

BUSINESS MODEL CANVAS NESPRESSO

WE HAVE DIFFERENT TOOLS IN DIFFERENT STAGES

WE SHARE THESE TOOLS ONLINE…

D.I.D.

D.I.D. DO IT DIFFERENT

NEW SKILLS

WE BASICALLY NEED DESIGNERS TO HAVE A SEAT AT THE TABLE

OR WE SHOULD THINK AND ACT LIKE DESIGNERS.

OBSERVE

WHEREVER YOU LOOK THAT’S WHAT YOU SEE. JERRY SEINFELD

OUR EYES OUR EARS CAMERA NOTEBOOK AND PEN

THINK VISUALLY

DRAWING IS THE NEW WRITING

EYES, PENCILS AND THE HAND MAY BE TOOLS OF THE PAST, …I BELIEVE THEY ARE TOOLS OF THE FUTURE. John Maeda, RISD

BUT THAT’S NOT ENOUGH…

THE CONTEXT MAP OF A COMPANY Insert 4 photos of the team discussion

Future scenario

Business model

SPOTIFY BUSINESS MODEL

IDEATE

YOU NEED TO BE ABLE TO JUGGLE WITH BUSINESS MODELS

CURRENT BUSINESS MODEL KEY PARTNERS KEY ACTIVITIES KEY RESOURCES COST STRUCTURE VALUE PROPOSITION CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS CHANNELS REVENUE STREAMS

PROTOTYPING

the past was about choosing solutions the future is about generating options

Frank Gehry

8 PROTOTYPES

GO OUT OF THE BUILDING & LEARN!

BECAUSE AN IDEA…

OR BUSINESS MODEL…

IS ONLY ON PAPER AND IS…

IT HAS NO VALUE

ZERO

YOU NEED TO TEST YOUR ASSUMPTIONS

STEVE BLANK

KNOCK ON THE CUSTOMERS DOOR…

AND TALK TO THEM!

BEWARE!

DON’T DO IT THE EASY WAY…

DON’T HIRE AN AGENCY…

OR SET UP A TEST PANEL

BUT DO IT YOURSELF!

THE MORE YOU LEARN, THE SOONER YOU SUCCEED

WHY?

YOU’LL INVENT SOMETHING PEOPLE DON’T NEED…

EXAMPLE OF SEGWAY

NEED I SAY MORE?

WHO HAD ONE?

SO YOU NEED TO ASK YOURSELF THE FOLLOWING

IS THE PROBLEM A REAL PROBLEM?

CAN WE IDENTIFY THE NEED?

DO WE IDENTIFY A TARGET CUSTOMER SEGMENT?

AND ARE THEY WILLING TO PAY FOR THIS…?

YOU HAVE TO DO THIS TOGETHER…

AND GO OUT TO TALK TO CUSTOMERS…

AND LEARN…

QUALITY AND MARGIN WAS NOT THE JOB…

NOT PARENTS AND CHILDREN BUT…

ONLY THEN YOU CAN SUCCEED…

AS A START-UP…

OR A CORPORATE START UP…

SO WHAT IS NEXT?

SO WHAT DOES THAT MEAN FOR THE CEO?

DON’T WRITE PLANS….

HE NEEDS TO THINK AND ACT LIKE A DESIGNER TOO.

HE NEEDS TO GO BACK TO SCHOOL!

BUT NOT TO HARVARD OR STANFORD…

BUT TO THE COLLEGE OF THE ARTS…

WHERE THEY PREPARE THE NEW GENERATION OF LEADERS FOR A WORLD…

THAT IS NOT ONLY PROFITABLE…

BUT ALSO SUSTAINABLE, ETHICAL AND TRULY MEANINGFUL.

A SUPERMAN

MY THREE KEY MESSAGES FOR YOU

WE NEED TO CHANGE

HOW YOU CAN DO THAT

D.I.D.

patrick@businessmodelsinc.com DESIGNING BETTER BUSINESSES