What do car design and creating businesses have in common?

1. The New
Business
Models
Designing and testing great businesses
@business_design

2. ?

3. ?

4. ?

5. ?

6. e

7. Mike
34 MIT
Alumnus

8. Mike
is passionate
about a new
product idea

9. Mike
masters all the
tools of
business

16. But...

17. “ No business plan
survives the first
contact with customers
Steve Blank ”

19. in entrepreneurship we still rely
on real-life crash tests which
lead to costly failures

20. ?

21. Sketching

23. Prototyping

26. Simulation

29. Testing

33. Could we design
business models the
way we design cars?

34. ?

35. But...
what really is a
business model

36. describe your
business model to
your seat neighbor
in 30 seconds!

39. The
Business
Model
Canvas

40. 9 Building
Blocks

41. Customer Segments
images by JAM

42. Value Proposition
images by JAM

43. Channels
images by JAM

44. Customer Relationships
images by JAM

45. Revenue Streams
images by JAM

46. Key Resources
images by JAM

47. Key Activities
images by JAM

48. Key Partners
images by JAM

49. Cost Structure
images by JAM

50. key value customer
activities proposition relationships
key customer
partners segments
cost revenue
structure key streams
resources channels
images by JAM

51. The Business Model Canvas
KEY KEY VALUE CUSTOMER CUSTOMER
PARTNERS ACTIVITIES PROPOSITION RELATIONSHIPS SEGMENTS
b u i ldi n g
blo c k
bu ilding
b u ildin g blo ck
blo c k
b u ildin g
blo c k b u ildin g
KEY building CHANNELS blo c k
RESOURCES bloc k
bu ilding
blo ck
b u ildi n g
blo c k
bui ldin g
blo ck
COST STRUCTURE REVENUE STREAMS
b u i ldi n g building
bu ilding
bl o c k blo ck
block

52. e

53. h o r re n d o u s
u p f ro nt i n st a l l at i o n
c o st s b a r re d s o l a r e n e rg y
f ro m t a k i n g o f f

54. Jigar
Shah

55. KEY KEY OFFER CUSTOMER CUSTOMER
PARTNERS ACTIVITIES RELATIONSHIPS SEGMENTS
in st a ll a n d
m a n a g e s o la r
in st a ll atio n s
sa le s
sola r ene rgy at
fixed pri ce - no companies
inst allation costs s a le s (e.g. retailers)
KEY fo rc e s
CHANNELS
RESOURCES
er
5- 0 ye a r p o w
1
p u rc h a s in g
s
a g re e m e nts PPA
institution al
g re e n e n e rg y f i n a n c ia l
and private
in ve st m e nts i n sti t u tio n s
inve sto rs
sa le s
fo rc e
COST STRUCTURE REVENUE STREAMS
in st a ll in g a n d
m a n a g in g s o la r ma nagement
fees
in st a ll atio n s

56. S u nEdis o n
is n ow the la rgest prov ider
of so la r p ower i n the US - so ld to
MEMC Ele ctro n ic Materia ls i n
’09 fo r USD 200M

58. Sketching

60. Prototyping

63. Every product or technology
can lead to five, ten, twenty
different business models

64. e

66. KEY KEY VALUE CUSTOMER CUSTOMER
PARTNERS ACTIVITIES PROPOSITION RELATIONSHIPS SEGMENTS
KEY CHANNELS
RESOURCES
COST STRUCTURE REVENUE STREAMS

67. Selling Licensing
Fertilizer
Free
Franchising
Not-For- Cross
Profit Subsidies
Micro-
finance
Advertising

68. Simulating

69. e

71. i ng
mar ke t
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s o f t wa re Fre e app
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subscripa le s
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74. Testing

75. iS
e Sng
m a r k Et
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ub U ipt S
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mar ke t
Fre e
Ru nK eep er
s o f t wa re Pro app
:rohtua
:neercs
development
iP h o ne s10M
+
An dro id
P h o ne s
Fi t ne s s us e rs
s t af f C lub App store
and
test
Android
store
IT i n f ra www
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s t af f a n d
1M 100K
Learn2M 9M
s o f t wa r e ad s IT i n f ra subscription
development $4.99
hc.oidutsel.sitroh//:ptth .0102 .beF .oiduts el ,sitroh yb etalpmet ,elacs lautca ,licnets daPi

77. “ Get out of the
building and talk to
customers
Steve Blank ”

78. New Fitness Club Membership
$4.99/month
BUY NOW

79. The RunKeeper Club Membership is
not yet available.You will be informed
about the lunch. Thank You!

80. New
Model
pivot test
Learn

81. Only when
you nailed it...

83. !

84. One
the new entrepreneur
is systematic about
designing and testing
business models.

85. Two
the new entrepreneur plays
with alternative business
models to design great
ones

86. Three
the new entrepreneur tests his
business model hypotheses
with customers before he
builds his organization

87. Thank You
@business_design