Understand how Jack Dorsey - CEO Square - is changing business models in the banking industry. Will he disrupt the banks?

1. HOW SQUARE IS
DISRUPTING BANKS
JACK
DORSEY
CEO SQUARE

2. UNDERSTANDING
THE BUSINESS
MODEL OF SQUARE
Business Model Case Study
May, 2014

3. INTRODUCTION

4. INTRODUCTION
WELCOME TO
THIS
BUSINESS
MODEL
CASE STUDY

5. WHAT ABOUT
THE BANKING
INDUSTRY?

6. Bill Gates
BANKING IS
NECESSARY.
BANKS ARE
NOT.

7. Quote:
“The biggest risk to the finance sector today is
not from other banks , nor related to the inability
to apply Basel III risk controls or standards. The
biggest risk to the finance sector today is the
growing gap between the institution and the
customer.”
Brett King, author of Bank 2.0 and Bank 3.0

8. LET’S LOOK AT
A DISRUPTIVE
BUSINESS
MODEL

9. Business Model Case Study:
SQUARE

10. BUSINESSMODELCASESTUDY

11. BUSINESSMODELCASESTUDY
“I WANT TO
SEE THE
BASIC ISSUES
AND
ANNOYANCES
THAT PEOPLE
DEAL WITH IN
THEIR LIVES.”
Jack Dorsey Tries To
Break Out Of The
Bubble By Riding The
Bus “Every Single Day”,
posted Sep 12, 2012 in
TechCrunch.

12. WHAT
IS THEIR
VISION?
BUSINESSMODELCASESTUDY

13. BUSINESSMODELCASESTUDY
Jack Dorsey
Founder and CEO of Square
Co-creator and co-founder of Twitter
“Square is rethinking payments
and money, which have been
around for thousands of years.
We want to take the
mechanical burden
out of the process.”

14. WHAT IS
THE MOST
IMPORTANT
TREND THEY
CONNECT TO?
BUSINESSMODELCASESTUDY

15. BUSINESSMODELCASESTUDY

16. WHAT IS
THE PROMISE
TO THEIR
CUSTOMERS?
BUSINESSMODELCASESTUDY

17. For sellers:
SELLING MADE SIMPLE.
AFFORDABLE TOOLS TO START,
RUN, AND GROW YOUR
BUSINESS.
For buyers:
A SIMPLE AND MAGICAL WAY TO
PAY. PAYMENT IS AUTOMATIC.
BUSINESSMODELCASESTUDY

18. WHAT IS
THE JOB THEY
GET DONE
FOR THEIR
CUSTOMERS?
BUSINESSMODELCASESTUDY

19. CONNECT LOCAL
SELLERS WITH BUYERS
EVERYWHERE
BUSINESSMODELCASESTUDY

20. HOW DO
THEY CONNECT
TO THEIR
CUSTOMERS?
BUSINESSMODELCASESTUDY

21. BUSINESSMODELCASESTUDY
SIGNUP
GET FREE READER
GROW

22. BUSINESSMODELCASESTUDY
OR BUY THE $10
SQUA(RED) READER AND
FIGHT AIDS

23. HOW DO
THEY CAPTURE
VALUE?
BUSINESSMODELCASESTUDY

24. BUSINESSMODELCASESTUDY

25. WHAT
PRODUCTS AND
SERVICES
DO THEY
OFFER?
BUSINESSMODELCASESTUDY

26. BUSINESSMODELCASESTUDY
SQUARE REGISTER FOR
SELLING IN STORE
AND ON THE GO

27. BUSINESSMODELCASESTUDY
SQUARE MARKET FOR
SELLING ONLINE

28. BUSINESSMODELCASESTUDY
SQUARE WALLET FOR
CONSUMERS

29. BUSINESSMODELCASESTUDY
SQUARE CASH FOR
CONSUMERS

30. WHAT
IS THEIR
MINDSET?
BUSINESSMODELCASESTUDY

31. Quote:
“Business Model Innovation does not come from
creatives only. It comes from understanding other
business models and learning from them.”
Patrick van der Pijl, Producer Business Model Generation, CEO Business Models Inc.

32. BUSINESSMODELCASESTUDY
“Everything we do
is about getting people to be
more open, more creative, more courageous.”

33. WHAT
ARE THEIR
SKILLS?
BUSINESSMODELCASESTUDY

34. BUSINESSMODELCASESTUDY
DESIGN
COLLABORATION
OBSERVATION

35. WHAT
TOOLS
DO THEY
USE?
BUSINESSMODELCASESTUDY

36. REGULAR OFF-SITES
WEEKLY TOWN HALLS
BUSINESSMODELCASESTUDY
Visual by
Gregory Koberger
Startupnotes.org

37. BUSINESSMODELCASESTUDY
Key Partners Key Activities
Key Resources
Value Proposition
Channels
Relationships Customers
Revenue StreamsCost Structure
SQUARE BUSINESS MODEL
Square Wallet:
Paying easy
and
automagically
Businesses
of all sizes
(US, Canada,
Japan)
Get your
money fast
Simple
pricing.
Only pay
when you sell
No fees for
presence in
Square
Market
Free
No restrictions
on number of
devices
On the go: run
your business
on smart device
In store: turn
iPad into
complete POS
Online: free
store in Square
Market
Square Market
Word of Mouth
Apple Store
Best Buy
Rethinking
buying and
selling
Build software
and hardware
Creative and
collaboratieve
entrepreneurs
Hardware
and software
RED
for offering the
SQUA(RED)
reader to fight
aids
Jobvite for
recruiting the
best people
Sumitomo
Mitsui Card
Corporation
Off-sites
ICT and
hardware
development
and systems
People
Consumers
Square Cash:
Send and
receive money

38. BUSINESSMODELCASESTUDY
WHAT WILL BE
JACK DORSEY’S
NEXT
STRATEGIC
CHOICE?

39. ASK YOURSELF
THESE
QUESTIONS!

40. BUSINESSMODELCASESTUDY
1. WHAT
DID YOU
LEARN?

41. BUSINESSMODELCASESTUDY
2. WHAT
QUESTIONS
DOES THIS
RAISE?

42. BUSINESSMODELCASESTUDY
3. WHAT IS
YOUR NEXT
STRATEGIC
CHOICE?

43. BUSINESSMODELCASESTUDY
4. HOW IS THAT
REFLECTED IN
YOUR
BUSINESS
MODEL?

44. CONTACTINFORMATION
Patrick van der Pijl
patrick@businessmodelsinc.com
@patrickpijl
Roland Wijnen
roland@businessmodelsinc.com
@rolandwijnen
Contact us for business model case studies customized to your strategic issues

45. COLOFON
Copyright © 2014 Business
Models Inc.
All rights reserved.
The information and
insights presented in this
business model case study
are based on public sources
and our experience in over
250 business model
innovation projects. This
business model case study
reflects our current
perspective on the Square
model. The purpose is to
inspire thinking about value
creation and new business
models. It is not meant to
describe an absolute truth.
Copyright of photographs
and written material lies
with the respective authors.
Thank
you
for
watching!