Business Modeling Workshop
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This document summarizes a CEO day event hosted by Vujàdé focusing on business modeling. It describes three workshop tracks on the Business Model Canvas: basics, advanced concepts, and customer focus. The basics track demonstrates how to map a company's business model using Nespresso as a case study. The advanced track explores business model principles and mechanics. The customer focus track connects the Business Model Canvas to the Value Proposition Canvas and uses them to deeply understand customers.
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Business Modeling Workshop
- 1. CEO DAY 2014 BUSINESS MODELING IT’S YOUR CHOICE
- 2. VUJÀDÉ Vujàdé is looking for new solutions. Critically questioning existing structures and behavior. Looking at something from a different or an unusual point of view. In other words, Vujàdé stands for innovation.
- 3. INNOVATION SUPPORT • CONSULTING • TRAINING • CO-CREATION
- 4. TEAM JASPER BOUWSMA STRATEGY INNOVATION INCUBATION BMGEN JOHN FORSLUND APPS SERVICES GO-TO-MARKET MOBILE USER EXPERIENCE OLIVER GYR MOBILE CROSS-PLATFORM SERVICES MARKETING JUDITH WIMMER WEB TECHNOLOGY CUSTOMER EXPERIENCE PROCESS DESIGN ERIC KUENZI LEGAL STARTUP SERIAL ENTREPRENEUR
- 7. ALEXANDER OSTERWALDER A SWISS BUSINESS BOOK AUTHOR
- 8. CO-CREATED BY 470 PRACTITIONERS FROM 45 COUNTRIES
- 10. BUSINESS MODEL GENERATION VALUE PROPOSITION DESIGN 2010 2014
- 12. 3 TRACKS 11:30-12:15 #2 BMGEN ADVANCED #3 CUSTOMER FOCUS #1 BMGEN BASICS ? !
- 13. #1 BMGEN BASICS WITH JOHN Business Model Generation • Tool: Business Model Canvas • Case: Nespresso • Discussion 2010
- 14. #1 BMGEN BASICS KEY LEARNINGS • A Business Model can be described with 9 building blocks • Tell the story of your business model: elements need to be connected (no orphans) • Business Model ≠ Revenue Model • Don’t make it an academic exercise, it’s about the discussion which element to place where
- 15. #2 BMGEN ADVANCED WITH JASPER • Principles Example Cases • 7 Business Model Questions • QA 1. Cost structure 2. Reve nue s 3. Earning spending 4. Switching costs 5. Activities 6. Scalability 7. Pr ot ect i on
- 16. #2 BMGEN ADVANCED KEY LEARNINGS • The BMC is not an academic exercise • Overview of business model mechanics • You can use the business model mechanics • as design constraints to develop new business model prototypes • as 7BM-questions to assess your business model • as trigger questions to iterate your business model
- 17. #3 CUSTOMER FOCUS WITH JUDITH • Business Model Canvas Value Proposition Canvas • Customer Profile: Jobs, Gains, Pains • Value Map: Products Services, Gain Creators, Pain Relievers • Case: Hilti OCT 2014
- 18. #3 CUSTOMER FOCUS KEY LEARNINGS • Connection between the BMC and the VPC • Various value propositions for same customer profile possible • You can use the Value Proposition Canvas • to explore your customer • to identify high value jobs of your customer • test the fit of your existing value proposition • to develop new value propositions
- 19. #2 BMGEN ADVANCED #3 CUSTOMER FOCUS #1 BMGEN BASICS ? !
- 20. #1 BMGEN BASICS Business Model Generation • Tool: Business Model Canvas • Case: Nespresso • Discussion 2010
- 21. #1 BMGEN BASICS AGENDA The Business Model Canvas Exercise: Case Study Nespresso Wrap up
- 22. QUESTION HOW MUCH DOES 1KG COFFEE COST?
- 23. CHF 6.95
- 24. CHF 95.-
- 25. WHY HAS NESPRESSO BEEN SO SUCCESSFUL?
- 27. NESPRESSO CHANGED THE BUSINESS MODEL FOR COFFEE
- 28. 2013 USD4.0B+ BY A SINGLE PRODUCT 30% CAGR OVER A DECADE
- 29. DISCUSS DESCRIBE WHAT YOU THINK NESPRESSO’S BUSINESS MODEL IS.
- 30. BLAH BLAH BLAH BLAH BLAH BLAH !! !! !! !! !!
- 33. Business Model ≠! Business Case or Plan
- 35. KEY PARTNERS KEY ACTIVITIES VALUE PROPOSITIONS CUSTOMER RELATIONSHIP CUSTOMER SEGMENTS KEY RESOURCES CHANNELS COST STRUCTURE REVENUE STREAMS
- 36. KEY PARTNERS KEY ACTIVITIES VALUE PROPOSITIONS CUSTOMER RELATIONSHIP CUSTOMER SEGMENTS KEY RESOURCES CHANNELS COST STRUCTURE REVENUE STREAMS
- 37. DIFFERENT LENSES KEY PARTNERS KEY ACTIVITIES VALUE PROPOSITIONS CUSTOMER RELATIONSHIP CUSTOMER SEGMENTS Reality check KEY RESOURCES CHANNELS Pitch Tool COST STRUCTURE REVENUE STREAMS
- 38. DIFFERENT LENSES: FOUNDER KEY PARTNERS KEY ACTIVITIES VALUE PROPOSITIONS CUSTOMER RELATIONSHIP CUSTOMER SEGMENTS KEY RESOURCES CHANNELS Value COST STRUCTURE REVENUE STREAMS
- 39. KEY PARTNERS KEY ACTIVITIES VALUE PROPOSITIONS CUSTOMER RELATIONSHIP CUSTOMER SEGMENTS KEY RESOURCES Benefit Identity CHANNELS COST STRUCTURE REVENUE STREAMS Price DIFFERENT LENSES: CUSTOMER
- 40. DIFFERENT LENSES: INVESTORS KEY PARTNERS KEY ACTIVITIES VALUE PROPOSITIONS CUSTOMER RELATIONSHIP CUSTOMER SEGMENTS Sustainable Advantages Market Size KEY RESOURCES Potential Traction CHANNELS COST STRUCTURE REVENUE STREAMS Profitability
- 41. #1 BMGEN BASICS AGENDA The Business Model Canvas Exercise: Case Study Nespresso Wrap up
- 43. EXERCISE Describe the Business Model of Nespresso using the Business Model Canvas Groups of 2 or 3 • Discuss with your partner • Place the stickers on the Business Model Canvas • 5’
- 44. KEY PARTNERS KEY ACTIVITIES VALUE PROPOSITIONS CUSTOMER RELATIONSHIP CUSTOMER SEGMENTS KEY RESOURCES CHANNELS COST STRUCTURE REVENUE STREAMS
- 45. INSIGHTS MECHANICS OF NESPRESSO’S BUSINESS MODEL
- 46. KEY PARTNERS KEY ACTIVITIES VALUE PROPOSITIONS CUSTOMER RELATIONSHIP CUSTOMER SEGMENTS KEY RESOURCES Loyalty + lock-in Coffee sold through own channels CHANNELS Cheap enough high-quality machines Pods COST STRUCTURE REVENUE STREAMS Sell coffee with much higher margin Cut of the machine revenue Machines sold through retail Nestle does not make these in CH High Quality growers Protection Premium Segment Protection
- 50. WE ARE MOVING FROM PORTFOLIOS OF PRODUCTS TO PORTFOLIOS OF BUSINESS MODELS.
- 51. VIDEO VISUALIZE YOUR BUSINESS MODEL www.youtube.com/user/businessmodeltv
- 52. #1 BMGEN BASICS AGENDA The Business Model Canvas Exercise: Case Study Nespresso Wrap up
- 53. #1 BMGEN BASICS KEY LEARNINGS • A Business Model can be described with 9 building blocks • Tell the story of your business model: elements need to be connected (no orphans) • Business Model ≠ Revenue Model • Don’t make it an academic exercise, it’s about the discussion which element to place where
- 54. #2 BMGEN ADVANCED #3 CUSTOMER FOCUS #1 BMGEN BASICS
- 55. #2 BMGEN ADVANCED WITH JASPER • Principles Example Cases • 7 Business Model Questions • QA 1. Cost structure 2. Reve nue s 3. Earning spending 4. Switching costs 5. Activities 6. Scalability 7. Pr ot ect i on
- 56. BUSINESS MODEL PRINCIPLES CASES
- 57. 1. Better cost structure 2. Recurring revenues 3. Earning before spending 4. Switching costs 5. Leverage the work of others 6. Easy scalability 7. Protection from competition
- 59. EASYJET’S LOW COST STRUCTURE KEY PARTNERS KEY ACTIVITIES VALUE PROPOSITIONS CUSTOMER RELATIONSHIP CUSTOMER SEGMENTS KEY RESOURCES CHANNELS COST STRUCTURE REVENUE STREAMS Low operating costs Low personal costs Low fleet costs
- 61. SKYPE’S LOW COST STRUCTURE KEY PARTNERS KEY ACTIVITIES VALUE PROPOSITIONS CUSTOMER RELATIONSHIP CUSTOMER SEGMENTS KEY RESOURCES CHANNELS COST STRUCTURE REVENUE STREAMS Software development Partner fees Marketing Telco companies Hardvware companies Payment prov iders
- 63. NESPRESSO’S RECURRING REVENUES KEY PARTNERS KEY ACTIVITIES VALUE PROPOSITIONS CUSTOMER RELATIONSHIP CUSTOMER SEGMENTS KEY RESOURCES CHANNELS COST STRUCTURE REVENUE STREAMS Sales Recurring Transactional Revenues Base Product Consumable
- 65. HP’S RECURRING REVENUES KEY PARTNERS KEY ACTIVITIES VALUE PROPOSITIONS CUSTOMER RELATIONSHIP CUSTOMER SEGMENTS KEY RESOURCES CHANNELS COST STRUCTURE REVENUE STREAMS Sales Recurring Transactional Revenues Base Product Consumable
- 67. DROPBOX’S RECURRING REVENUES KEY PARTNERS KEY ACTIVITIES VALUE PROPOSITIONS CUSTOMER RELATIONSHIP CUSTOMER SEGMENTS KEY RESOURCES CHANNELS Basic COST STRUCTURE REVENUE STREAMS 0.– Monthly fee Premium
- 69. DELL’S EARNING BEFORE SPENDING KEY PARTNERS KEY ACTIVITIES VALUE PROPOSITIONS CUSTOMER RELATIONSHIP CUSTOMER SEGMENTS Assembling after selling KEY RESOURCES CHANNELS COST STRUCTURE REVENUE STREAMS
- 71. NESPRESSO’S SWITCHING COSTS KEY PARTNERS KEY ACTIVITIES VALUE PROPOSITIONS CUSTOMER RELATIONSHIP CUSTOMER SEGMENTS KEY RESOURCES Club CHANNELS Inexpensive base product COST STRUCTURE REVENUE STREAMS
- 73. FACEBOOKS’S LEVERAGING THE WORK OF OTHERS KEY PARTNERS KEY ACTIVITIES VALUE PROPOSITIONS CUSTOMER RELATIONSHIP CUSTOMER SEGMENTS KEY RESOURCES CHANNELS COST STRUCTURE REVENUE STREAMS 0.– Revenue Stream B Va l u e Proposition A Va l u e Proposition B Customer A Customer B Connecting Platform Connecting Platform
- 75. TUPPERWARE’S LEVERAGING THE WORK OF OTHERS KEY PARTNERS KEY ACTIVITIES VALUE PROPOSITIONS CUSTOMER RELATIONSHIP CUSTOMER SEGMENTS KEY RESOURCES CHANNELS Free Sales Force COST STRUCTURE REVENUE STREAMS Free Sales Force (Company or Individuals)
- 77. IKEA’S LEVERAGING THE WORK OF OTHERS KEY PARTNERS KEY ACTIVITIES VALUE PROPOSITIONS CUSTOMER RELATIONSHIP CUSTOMER SEGMENTS KEY RESOURCES CHANNELS Space optimised inventory Self-assembling furniture Self service shops COST STRUCTURE REVENUE STREAMS
- 79. AIRBNB’S SCALABILTY ADVANTAGE KEY PARTNERS KEY ACTIVITIES VALUE PROPOSITIONS CUSTOMER RELATIONSHIP CUSTOMER SEGMENTS KEY RESOURCES CHANNELS Plattform Locations to rent Connecting Platform COST STRUCTURE REVENUE STREAMS 0.- on locations Connecting Platform Locations to let Plattform
- 81. APPLE’S PROTECTION FROM COMPETITION KEY PARTNERS KEY ACTIVITIES VALUE PROPOSITIONS CUSTOMER RELATIONSHIP CUSTOMER SEGMENTS Partner Mgt. KEY RESOURCES CHANNELS Ecosystem COST STRUCTURE REVENUE STREAMS Content Partner Production Partner iTunes App-Store
- 83. IPHONE’S PLATFORM ADVANTAGE KEY PARTNERS KEY ACTIVITIES VALUE PROPOSITIONS CUSTOMER RELATIONSHIP CUSTOMER SEGMENTS KEY RESOURCES CHANNELS COST STRUCTURE REVENUE STREAMS Revenue Stream A Revenue Stream B Va l u e Proposition A Va lue Proposition B Customer A Customer B Connecting Platform Connecting Platform
- 84. ASSESS YOUR BUSINESS MODEL 7 BUSINESS MODEL QUESTIONS 1. Is your business model based on a game changing cost structure? 2. Does your business model produce recurring revenues? 3. Do you earn before you spend? 4. How much do switching costs prevent your customers from churning? 5. How much do you get others to do the work? 6. How scalable is your business model? 7. Does your business model provide built-in protection www.strategyzer.com from competition?
- 85. #2 BMEN ADVANCED KEY LEARNINGS • The BMC is not an academic exercise • Overview of business model mechanics • You can use the business model mechanics • as design constraints to develop new business model prototypes • as 7BM-questions to assess your business model • as trigger questions to iterate your business model
- 86. #3 CUSTOMER FOCUS #1 BMGEN BASICS #2 BMGEN ADVANCED ? !
- 87. #3 CUSTOMER FOCUS WITH JUDITH • Business Model Canvas Value Proposition Canvas • Customer Profile: Jobs, Gains, Pains • Value Map: Products Services, Gain Creators, Pain Relievers • Case: Hilti OCT 2014
- 88. A Value Proposition describes the benefits customers can expect from your product services
- 89. BUSINESS MODEL CANVAS How do you create value for your business? VALUE PROPOSITION CANVAS How do you create value for your customer? zoom out zoom in
- 93. CUSTOMER PROFILE CUSTOMER JOBS Work enjoyment GAINS PAINS 100 percent uptime Time lost in maintenance Get construction done Safe employees Delays Upfront investment Right tool for right task Theft Broken tools
- 94. VALUE MAP PRODUCTS SERVICES PAIN CREATORS PAIN RELIEVERS Safety triggers against mishandling Ergonomic, holds in hand Long life makes overall cost cheaper over time Robustness means less maintenance Quality tools
- 96. CUSTOMER PROFILE CUSTOMER JOBS Work enjoyment GAINS PAINS 100 percent uptime Time lost in maintenance Get construction done Profitability under control Safe employees Delays Upfront investment Right tool for right task Theft Broken tools Meeting planning schedule Financial penalties
- 97. VALUE MAP Subscription based fleet management PRODUCTS SERVICES PAIN CREATORS PAIN RELIEVERS Safety triggers against mishandling Ergonomic, holds in hand Long life makes overall cost cheaper over time Robustness means less maintenance Quality tools Latest technology Immediate tool replacement No cost for repair and replacement Predictable costs
- 98. VALUE PROPOSITION CANVAS Work enjoyment 100 percent uptime Time lost in maintenance Get construction done Safe employees Delays Upfront investment Right tool for right task Theft Broken tools Meeting planning schedule Financial penalties Safety triggers against mishandling Ergonomic, holds in hand Long life makes overall cost cheaper over time Robustness means less maintenance Subscription based fleet management Quality tools Latest technology Immediate tool replacement No cost for repair and replacement Predictable costs
- 100. KEY PARTNERS KEY ACTIVITIES VALUE PROPOSITIONS CUSTOMER RELATIONSHIP CUSTOMER SEGMENTS KEY RESOURCES CHANNELS COST STRUCTURE REVENUE STREAMS Construction Companies B2B Partner Stores Sales of To o l s RD Manufact-uring Customer Service Production Quality Power Tools Red Box Quality Brand Production facilities
- 101. KEY PARTNERS KEY ACTIVITIES VALUE PROPOSITIONS CUSTOMER RELATIONSHIP CUSTOMER SEGMENTS KEY RESOURCES Red Box Quality CHANNELS COST STRUCTURE REVENUE STREAMS Construction Companies B2B Partner Stores Sales of To o l s Brand Production facilities RD Manufact-uring Customer Service Production Quality Power Tools www. hilti.com CEOs Recurring Lease Fees Fleet Force Lease Contract Direct Sales Contract Mgt Inventory IT Systems Repair Maintenance service Fleet Mgt Service HIGH MARGINS
- 102. #3 CUSTOMER FOCUS KEY LEARNINGS • Connection between the BMC and the VPC • Various value propositions for same customer profile possible • You can use the Value Proposition Canvas • to explore your customer • to identify high value jobs of your customer • test the fit of your existing value proposition • to develop new value propositions
- 103. THANK YOU LET’S STAY IN TOUCH Vujàdé Ltd. – Consulting I Training I Co-Creation Elfenaustrasse 3 I CH-2502 Biel/Bienne I Switzerland +41 32 32 32 300 I contact@vujade.com I www.vujade.com for personal mail: name.surname@vujade.com