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How to explore business
models
Tsuyoshi Amano
Central Saint Martins
03/11/2016
Contents
1. Hands-on session: Marshmallow Challenge
2. What are business models?
3. Why business models?
4. Why not business plans?
5. A business model tool: Business model canvas
6. Examples of business model archetypes
7. Hands-on session: Visualise your business with business model canvas
8. Quick recap
Hands-on session:
The marshmallow challenge
The instruction of the marshmallow
challenge
http://www.tomwujec.com/design-projects/marshmallow-
challenge/
What are business models?
What is business models?
Value
CREATE
DELIVERCAPTURE
A business model shows:
• How to create the value?
• How to deliver the value?
• How to capture the value?
But, why business models
now?
But, why business models now?
Value
CREATE
DELIVERCAPTURE
Too much focus on creating
values (Product innovations)
But, why business models now?
Value
CREATE
DELIVERCAPTURE
Too much focus on
delivering values (Marketing
innovations)
But, why business models now?
Value
CREATE
DELIVERCAPTURE
Just ripping off?
But, why business models now?
Value
CREATE
DELIVERCAPTURE
The value of using the
business model approach is
the holistic perspective
Why not business plan?
Why not business plan?
It takes too much time to write
People don’t look back the
business plan once it’s
accepted
It doesn’t work after the first
contact with real customers
Why not business plan?
Value
CREATE
DELIVERCAPTURE
Also, business plan based
approaches are most likely
to focus on capturing
values.
Why not business plan?
Business plans are good to scale a business but not find new
opportunities.
A business model tool:
Business Model Canvas
A framework of business models
Value
CREATE
DELIVERCAPTURE
CREATE DELIVER
CAPTURE
VALUE
A case of Japanese
manufacturers
Hi-quality
traditional
Japanese crafts Hi-end
retailers
Distributors /
Sales agents
Product sales
Craftsmen skills
Distributors
Production Dedicated
customer service
Production cost
Export fee
Sales agent fee
Hi-quality
traditional
Japanese crafts Hi-end
retailers
Distributors /
Sales agents
Product sales
Craftsmen skills
Distributors
Production Dedicated
customer service
Distribution model
Production cost
Export fee
Sales agent fee
Applying business model
archetypes
Examples of business model archetypes
Direct sales
Subscription (Leasing)
Marketplace
Crowdsourcing
Blade and razor (printer and ink)
For more examples of business model archetypes, see:
Board of Innovation (2010) Business & Revenue Model Examples [Internet]. Available from:
<http://www.boardofinnovation.com/business-revenue-model-examples/> [Accessed 3 November
2016].
Johnson, M.W. (2010) Seizing the white space. Boston, Mass., Harvard Business Press.
Gassmann, O., Frankenberger, K. & Csik, M. (2014) The Business Model Navigator: 55 Models That Will
Revolutionise Your Business. 01 edition. Harlow, England ; New York, FT Publishing International.
Direct sales
Direct Sales
Hi-quality
traditional
Japanese crafts Hi-end
consumers
Direct sales
online
Product sales
Production cost
Export fee
Craftsmen skills
Warehouse
providers
Production
Online ads
PR companies
Warehouse cost
PR cost
Online
support
Online
marketing
Subscription (Leasing)
Subscription fee
Rental service
of hi-quality
traditional
Japanese crafts
Japanese
restaurant
owners
Distributors /
Sales agents
Subscription /
Monthly leasing
fee
Craftsmen skills
Distributors
Production Dedicated
customer service
Production cost
Export fee
Sales agent fee
Insurance
companies
Insurance
fee
Marketplace
BuyersSellers Marketplace
A market place
specialised for
Japanese crafts Hi-end
retailers
Online platform
Commission
Sellers
(Other Japanese
craftsmen)
Online customer
service
Online operation
cost
The community
of Japanese
craftsmen
Platform
management
Community
management
Crowdsourcing
Community
Community
members
Hi-quality
traditional
Japanese crafts Hi-end
retailers
Distributors /
Sales agents
Product sales
Craftsmen skills
Distributors
Production Dedicated
customer service
Production cost
Export fee
Sales agent fee
Crowdsourced
designers
The community
of designers
Blade and razor (printer and ink)
Profit from supplies
Japanese
lifestyle
experience Hi-end
retailers
Distributors /
Sales agents
Product sales
with low profit
Craftsmen skills
Distributors
Production
Dedicated
customer service
Production cost
Export fee
Sales agent fee
Sales of
Japanese Tea
Hi-end
consumers
Direct sales
online
Online ads
PR companies
PR cost
Online
support
Key points of using business model
canvas
Avoid exactly visualising a “right” business model (Simplicity and
nimbleness is important)
Explore possible business models on paper without risks
Hands-on session:
Visualise your business
model
Activity (20 mins)
Fill in the nine building blocks to visualise your business model
Put a name of the model
Modify your business model to explore by using the examples (if
you come up with a new model other than the examples, try to
visualise it instead!)
Show your business model to other people and get feedback
Now, you’ve got your business models
It’s time to get out of building to see if your business model(s)
actually works.
Also, thank you for Julia @juliagogacooke
Please keep in touch via:
E-mail: syntropylab@gmail.com
Twitter: @yo5h_a
The bullet points by Tony Thomas
http://medialoot.com/item/listicons-arrows-bullets-webfont/
Thank you very much to join!

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How to explore business models

  • 1. How to explore business models Tsuyoshi Amano Central Saint Martins 03/11/2016
  • 2. Contents 1. Hands-on session: Marshmallow Challenge 2. What are business models? 3. Why business models? 4. Why not business plans? 5. A business model tool: Business model canvas 6. Examples of business model archetypes 7. Hands-on session: Visualise your business with business model canvas 8. Quick recap
  • 4. The instruction of the marshmallow challenge http://www.tomwujec.com/design-projects/marshmallow- challenge/
  • 6. What is business models? Value CREATE DELIVERCAPTURE A business model shows: • How to create the value? • How to deliver the value? • How to capture the value?
  • 7. But, why business models now?
  • 8. But, why business models now? Value CREATE DELIVERCAPTURE Too much focus on creating values (Product innovations)
  • 9.
  • 10. But, why business models now? Value CREATE DELIVERCAPTURE Too much focus on delivering values (Marketing innovations)
  • 11. But, why business models now? Value CREATE DELIVERCAPTURE Just ripping off?
  • 12. But, why business models now? Value CREATE DELIVERCAPTURE The value of using the business model approach is the holistic perspective
  • 14. Why not business plan? It takes too much time to write People don’t look back the business plan once it’s accepted It doesn’t work after the first contact with real customers
  • 15. Why not business plan? Value CREATE DELIVERCAPTURE Also, business plan based approaches are most likely to focus on capturing values.
  • 16. Why not business plan? Business plans are good to scale a business but not find new opportunities.
  • 17. A business model tool: Business Model Canvas
  • 18.
  • 19. A framework of business models Value CREATE DELIVERCAPTURE
  • 21.
  • 22. A case of Japanese manufacturers
  • 23. Hi-quality traditional Japanese crafts Hi-end retailers Distributors / Sales agents Product sales Craftsmen skills Distributors Production Dedicated customer service Production cost Export fee Sales agent fee
  • 24. Hi-quality traditional Japanese crafts Hi-end retailers Distributors / Sales agents Product sales Craftsmen skills Distributors Production Dedicated customer service Distribution model Production cost Export fee Sales agent fee
  • 26. Examples of business model archetypes Direct sales Subscription (Leasing) Marketplace Crowdsourcing Blade and razor (printer and ink) For more examples of business model archetypes, see: Board of Innovation (2010) Business & Revenue Model Examples [Internet]. Available from: <http://www.boardofinnovation.com/business-revenue-model-examples/> [Accessed 3 November 2016]. Johnson, M.W. (2010) Seizing the white space. Boston, Mass., Harvard Business Press. Gassmann, O., Frankenberger, K. & Csik, M. (2014) The Business Model Navigator: 55 Models That Will Revolutionise Your Business. 01 edition. Harlow, England ; New York, FT Publishing International.
  • 28. Hi-quality traditional Japanese crafts Hi-end consumers Direct sales online Product sales Production cost Export fee Craftsmen skills Warehouse providers Production Online ads PR companies Warehouse cost PR cost Online support Online marketing
  • 30. Rental service of hi-quality traditional Japanese crafts Japanese restaurant owners Distributors / Sales agents Subscription / Monthly leasing fee Craftsmen skills Distributors Production Dedicated customer service Production cost Export fee Sales agent fee Insurance companies Insurance fee
  • 32. A market place specialised for Japanese crafts Hi-end retailers Online platform Commission Sellers (Other Japanese craftsmen) Online customer service Online operation cost The community of Japanese craftsmen Platform management Community management
  • 34. Hi-quality traditional Japanese crafts Hi-end retailers Distributors / Sales agents Product sales Craftsmen skills Distributors Production Dedicated customer service Production cost Export fee Sales agent fee Crowdsourced designers The community of designers
  • 35. Blade and razor (printer and ink) Profit from supplies
  • 36. Japanese lifestyle experience Hi-end retailers Distributors / Sales agents Product sales with low profit Craftsmen skills Distributors Production Dedicated customer service Production cost Export fee Sales agent fee Sales of Japanese Tea Hi-end consumers Direct sales online Online ads PR companies PR cost Online support
  • 37. Key points of using business model canvas Avoid exactly visualising a “right” business model (Simplicity and nimbleness is important) Explore possible business models on paper without risks
  • 39.
  • 40. Activity (20 mins) Fill in the nine building blocks to visualise your business model Put a name of the model Modify your business model to explore by using the examples (if you come up with a new model other than the examples, try to visualise it instead!) Show your business model to other people and get feedback
  • 41. Now, you’ve got your business models It’s time to get out of building to see if your business model(s) actually works.
  • 42. Also, thank you for Julia @juliagogacooke Please keep in touch via: E-mail: syntropylab@gmail.com Twitter: @yo5h_a The bullet points by Tony Thomas http://medialoot.com/item/listicons-arrows-bullets-webfont/ Thank you very much to join!