1. Business Model Innovation & Incubation
Workshop @
Jan 21-25, 2012,
H‘rath/Aachen, Germany
1 warm-up: business model innovation
2 concept: the business model canvas
3 intro: business incubation
1

2. 1 warm-up

3. CRAFTING innovative
BUSINESS MODELS
Creators: Alex Osterwalder, PhD, and Yves Pigneur
Drawings by JAM
Facilitator: Axel Friese

4. do you know the business
model canvas approach?
novice advanced

5. let’s kick off with a
QUESTION

6. what is the most
popular business
management concept
ever to describe
(value creation in)
companies

7. 1980s

8. THE VALUE CHAIN (PORTER 1985)
firm infrastructure
human resource management
technology development
procurement
inbound outbound marketing
operations service
logistics logistics & sales

9. mini
exercise

10. describe
with…

11. THE VALUE CHAIN
firm infrastructure
human resource management
technology development
procurement
inbound outbound marketing
operations service
logistics logistics & sales

12. difficult isn’t it

13. THE CONTEXT
HAS CHANGED!

14. we need new
methods to
understand &
craft business
models

15. VALUE
CREATION

16. what types of innovation do we
find in companies…

17. business model innovation
product & service innovation
process innovation
technology innovation
*layers of innovation*

18. warm-up
quiz

24. so we are focusing …

25. BUSINESS
MODEL
INNOVATION

26. now consider…

28. they offer a really neat
service…

29. imagine you’re shopping…

30. and you hear a tune
you like…

31. …but don’t know
the title or artist

32. with Shazam you can…

33. dial a number…

34. hold your phone to
the speakers…

35. …and get the title and
artist by SMS

36. you know how they make
money?

37. communication and
SMS charges…

38. …and sales commissions

39. …and in the future
TV/video content

40. that’s
BUSINESS
MODEL
INNOVATION

41. quick
quiz

42. who would have thought that we could rent
and drop-off a car anywhere we want in a city
and pay per minute?

44. and then of course
there is…

45. 2 concept

46. buzz
group

47. define what a business model
is together with your seat
neighbor and write your
definition down
2 minutes

48. what elements did you
mention when you defined a
business model?

49. “ there is a lack of definition
”

50. “ few companies understand their
existing business model well enough
”

51. so Alex Osterwalder and a crowd of
470 practitioners came up with a way
to master business models through…

52. the
BUSINESS MODEL
CANVAS

53. they merged all existing concepts,
designed & tested the synthesis…

54. BUILDING
BLOCKS

55. the 9 building blocks of a business model
www.businessmodelalchemist.com all drawings by JAM

56. CUSTOMER SEGMENTS
mass market
niche market
segmented
diversified
multi-sided platform
For whom are we
creating value?
Who are our most
important customers?

57. VALUE PROPOSITION
Newness Brand / status
Performance Price
Customization Cost reduction
„Getting the job done“ Accessibilty
Design Convenience /
Usability
What value do we deliver to the customer?
Which one of our customer’s problems are we helping to solve?
Which customer needs are we satisfying?
What bundles of products and services are we offering to each customer segment?

58. KEY CHANNELS
Channels serve for
communication, sales, distribution
Own sales force
Web sales
Own stores
Partner stores
Retail & wholesale
Through which channels do our customer segments want to be reached?
How are our channels integrated?
How are we integrating them with customer routines?

59. CUSTOMER RELATIONSHIPS
Personal assistance
Self-service
Automatisierter Service
Co-creation
What type of relationships does each of our customer
segments expect us to establish and maintain with them?
How costly are they?
How are they integrated with the rest of our business model?

60. REVENUE STREAMS
Fixed Pricing Dynamic Pricing
List price
Negotiation
Product feature
dependent Yield management
Customer segment Real-time-market
dependent
Auctions
Volume dependent
For what value are our customers really willing to pay?
How would they prefer to pay?
How much does each revenue stream contribute to overall revenues?

61. KEY RESOURCES
Physical stock
Intellectual patent.
Human .
Financial.
What key resources do our value propositions require?
Our distribution channels?
Customer relationships?
Revenue streams?
drawings by JAM

62. KEY ACTIVITIES
Production vs.
Problem solving .
Platform / network .
What key activities do our value propositions require?
Our distribution channels?
Customer relationships?
Revenue streams?

63. KEY PARTNERS
Optimization and economy of scale
and suppliers
Reduction of risk
joint development of competing consumer electronics giants
Acquisition of particular resources and activities
uses operating system
Who are our key partners?
Who are our key suppliers?
Which key resources are we acquiring from partners?
Which key activities do partners perform?

64. COST STRUCTURE
Cost-driven
Value-driven
Fixed costs
Variable costs
Economies of scale
What are the most important costs inherent in our business model?
Which key resources are most expensive?
Which key activities are most expensive?

65. key value customer
activities proposition relationships
key customer
partners segments
cost revenue
structure key key streams
resources channels

66. OVERLAY
PARTNER KEY VALUE CUSTOMER CUSTOMER
NETWORK ACTIVITIES PROPOSITION RELATIONSHIPS SEGMENTS
KEY KEY CHANNELS
RESOURCES
COST STRUCTURE REVENUE STREAMS

67. THE BUSINESS MODEL CANVAS
KEY KEY VALUE CUSTOMER CUSTOMER
PARTNERS ACTIVITIES PROPOSITION RELATIONSHIPS SEGMENTS
What type of relationships does
each of our customer segments
What key activities do our value expect us to establish and
propositions require? Our maintain with them? How costly
distribution channels? Customer are they? How are they
relationships? Revenue integrated with the rest of our
streams? business model?
What value do we deliver to the
customer? Which one of our
Who are our key partners?
customer’s problems are we
Who are our key suppliers? For whom are we creating
helping to solve? Which customer
Which key resources are we value? Who are our most
needs are we satisfying? What
acquiring from partners? Which KEY KEY important customers?
bundles of products and services
key activities do partners RESOURCES CHANNELS
are we offering to each customer
perform?
segment?
Through which channels do our
What key resources do our customer segments want to be
value propositions require? Our reached? How are our channels
distribution channels? Customer integrated? How are we
relationships? Revenue integrating them with customer
streams? routines?
COST STRUCTURE REVENUE STREAMS
What are the most important costs inherent in our business model? For what value are our customers really willing to pay? How would
Which key resources are most expensive? Which key activities are they prefer to pay? How much does each revenue stream contribute
most expensive? to overall revenues?

68. let us sketch out an
example

70. Skype is…

71. years old

72. billion users

73. million USD
revenue 08

74. in 2011 Skype was sold to Microsoft

75. at billion
value

76. break-out
session

77. reflect on the BM of
and choose the
3 most important BM elements
-> post-its
2 minutes

78. PARTNER SCHLÜSSEL- ANGEBOTE, KUNDEN- KUNDEN-
AKTIVITÄTEN NUTZEN- BEZIEHUNGEN SEGMENTE
VERSPRECHEN
SCHLÜSSEL- KANÄLE
RESSOURCEN
KOSTENSTRUKTUR ERLÖSSTRÖME

79. commonkey
activities
value
proposition
customer
relationships
key customer
partners segments
cost revenue
language
structure key key streams
resources channels

80. check out for more:
http://www.businessmodelgeneration.com/
http://businessmodelhub.com/ 6000 members
http://www.linkedin.com/groups/Business-
Model-Generation

81. 3 business
incubation

82. Tech Start-ups in the Aachen area
Start-
Lack of
space outside university institutes
coaching by experienced entrepreneurs
82

84. The Entrepreneurial Process
(Timmons)
Opportunity Ressources
Entrepreneurial
Team
84

85. Incubation’s Mission:
Support of the Entrepreneurial Process
Space,
MVP Proof-of-Concept
, Infrastructure
Business Model Design Access to
Seed-Capital
Team-Coaching,
-Complement
Senior Mentoring
85

86. Fully equipped offices
Complete infrastructure
Access to seed capital
86
86

87. Starting-
Starting-up amidst
Leading Technology Companies
600m2
87
87

88. Incubation
Incubation
Business Model Design
Lean Startup Methodology
Feedback Fusions
88
88

89. Senior Mentors support 1to1 with know-how
and network
Providing access to partners, potential
customers, investors and - credibility
89
89

90. Mentors at CO:FORWARD are experienced entrepreneurs and
industry insiders. They work voluntarily, support the team
individually and are wholly committed to the start-up needs.
Dr. Peter
Bernd Selzer
Fasel
Matthias Dr.
Popp René
Mauer
90
90

91. Mentors at CO:FORWARD are experienced entrepreneurs and
industry insiders. They work voluntarily, support the team
individually and are wholly committed to the start-up needs.
Carlo Prof. Dr.
Blatz Malte
Brettel
Dr.-Ing. Reinhard
Klaus Goethe
Lucka
91
91

92. Mentors at CO:FORWARD are experienced entrepreneurs and
industry insiders. They work voluntarily, support the team
individually and are wholly committed to the start-up needs.
Oliver Christian W.
Schiffers Rother
Dr. Rolf
Klaus Geisen
Glöggler
92

93. TEAMS
93
93

94. PARTNER
94
94

95. CONTACT
E-Mail: af@coforward.de
Web: www.coforward.de
http://www.facebook.com/COFORWARD
https://twitter.com/#!/co_forward
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