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Talk with Steve Blank at true ventures
- 1. DESIGNING & TESTING BUSINESS MODELS AlexOsterwalder.com SteveBlank.com @business_design @sgblank
- 2. ? where do I come from, what do I do?
- 9. BusinessModelGeneration.com/toolbox iPad stencil, actual scale, template by hortis, le studio. Feb. 2010. http://hortis.lestudio.ch date: project: screen: author:
- 10. this workshop day combines two global bestsellers + BusinessModelGeneration.com SteveBlank.com/books.html
- 12. 1958
- 13. [sources: Henry Chesbrough, photo: life.com]
- 14. revenue growth of 41% compounded for the next 20 years [sources: Henry Chesbrough, photo: xerox.com]
- 16. 2009
- 18. 1,000,000 new book titles were published in the U.S. in ʌ10
- 19. 11,000 new business books appear every year
- 20. 12% decline of sales in major bookstore chains (ʻ07-ʌ09)
- 22. ? so what did we do?
- 23. we changed the product...
- 30. ? would a big publishing house have taken us on with this book?
- 31. No!
- 32. we changed the business model...
- 33. â you canÊŒt write about business model innovation without an innovative business model â
- 36. $24.-
- 37. $36.-
- 38. $54.-
- 39. $81.-
- 40. $250.-
- 41. Results
- 43. # in the top 10 of softcover business books in the US
- 44. # 170ʌ000+ English #bmgen copies in print (June 2011)
- 45. # 18 #bmgen translations upcoming in 2011
- 49. business models enable (new) products and technologies and help solve (entirely new) customer problems
- 50. the 100 Million dollar question
- 51. how do you search for the right business model?
- 52. 1 understanding business models 2 prototyping alternatives of âwhat could beâ 3 evaluating your business model design 4 testing business models with customer development
- 53. but hey, 1 what is a business model anyways?
- 57. ? ?
- 61. to describe, challenge, design, and invent business models more systematically
- 62. 9 building blocks
- 63. CUSTOMER SEGMENTS images by JAM
- 64. VALUE PROPOSITIONS images by JAM
- 65. CHANNELS images by JAM
- 66. CUSTOMER RELATIONSHIPS images by JAM
- 67. REVENUE STREAMS images by JAM
- 68. KEY RESOURCES images by JAM
- 69. KEY ACTIVITIES images by JAM
- 70. KEY PARTNERS images by JAM
- 71. COST STRUCTURE images by JAM
- 72. key value customer activities proposition relationships key customer partners segments cost revenue structure key streams resources channels images by JAM
- 73. The Business Model Canvas key activities value proposition customer relationships KEY KEY OFFER CUSTOMER CUSTOMER PARTNERS ACTIVITIES RELATIONSHIPS SEGMENTS building building key block block customer partners segments building building building block building block block block KEY CHANNELS RESOURCES building block building block building block cost COST STRUCTURE REVENUE STREAMS revenue buildi structure building key ng building streams block resources block channelsck blo images by JAM
- 75. illustration
- 77. how much less or more do the Swiss pay per gram of coffee consumed at home compared to a decade ago?
- 80. Nespresso changed the business model for espresso
- 81. RESULTS
- 83. one of the fastest- growing businesses in the Nestlé group
- 84. average growth of 30% p.a. since 2000
- 85. global sales of 3.8+ billion USD
- 86. Nespressoâs business Model KEY KEY Value CUSTOMER CUSTOMER PARTNERS ACTIVITIES Proposition RELATIONSHIPS SEGMENTS B2C marketing tion distribu Nespre sso households Club (espresso fans) *** Nespresso ine pod production coffee mach machines rs manufacture businesses KEY etail CHANNELS **** r RESOURCES Nespresso ts coffee outle mail pods growers distribu order tion e coffe channel s m Nespresso.co pod produ call ts paten ctio n center Nespresso facilities stores COST STRUCTURE REVENUE STREAMS B2C distrib sales of Nespress resso o production ution sales of Nesp marketing machines pods
- 87. but Nespresso almost failed in 1987 due to a nonperforming business model
- 88. Nespressoâs 1987 Model KEY KEY Value CUSTOMER CUSTOMER PARTNERS ACTIVITIES Proposition RELATIONSHIPS SEGMENTS machine offices Nespresso manufacturer KEY system CHANNELS RESOURCES joint venture with machine manufacturer COST STRUCTURE REVENUE STREAMS
- 89. now Nestlé is building a portfolio of business models in their coffee business
- 96. prototype 2 alternatives and ask yourself what could be
- 97. ? letÊŒs take some time to work on a really, really big issue in the world?
- 99. 2.6 billion people lack access
- 100. 4 out of 10 people in the world lack even the most simple latrine to perform their needs
- 103. * single-use toilet bag * self-sanitizing * biodegradable * turns into fertilizer * (mainly) targeted at poor people * low production cost * people already pay for sanitation
- 104. The Business Model Canvas KEY KEY OFFER CUSTOMER CUSTOMER PARTNERS ACTIVITIES RELATIONSHIPS SEGMENTS KEY CHANNELS RESOURCES COST STRUCTURE REVENUE STREAMS
- 106. come up with as many business model ideas as possible for the Peepoo bag (not full Canvases)
- 107. * single-use toilet bag * self-sanitizing * biodegradable * turns into fertilizer * (mainly) targeted at poor people * low production cost * people already pay for sanitation
- 108. make rough prototypes of the different alternatives to analyze, evaluate and compare them
- 109. F rank Ge hry [source: Sony Pictures]
- 116. ? what does that have to do with business models and my organization?
- 118. no architect would build something that resembles his ïŹrst sketch
- 119. ? what does that mean for us?
- 123. business model prototyping napkin sketch Canvas business case ïŹeld test
- 124. â prototyping is the conversation you have with your ideas â Tom Wujec
- 125. evaluate 3 your business model design
- 126. building block building buildin block g blo ck building block building block build ing block building building block block build ing block building buil di block blo ng ck buildin g block
- 127. SWITCHING  COSTS How  easy  or  diïŹcult  is  it  for  customers  to  switch  to  another  company?
- 128. with  this  amazing  device  you  can  have  thousand  songs  in  a  pocket
- 129. ...and  youâr  screwing  us  because  it  has  just  become  more  diïŹcult  to  switch  devices
- 130. RECURRING  REVENUES Is  every  sales  a  new  eïŹort  or  will  it  result  in  follow-Ââup  revenues  and  purchases?  How  evenly  distributed  are  your  revenues  through  the  year?
- 132. EARN  BEFORE  YOU  PAY Are  you  earning  money  before  you  are  spending  it?
- 134. GAME  CHANGING  COST  STRUCTURE Is  your  cost  structure  substanSally  diïŹerent  and  beTer  than  those  of  compeStors?
- 135. phone  calls  will  be  totally  free  in  the  future
- 136. GETTING  OTHERS  TO  DO  THE  WORK How  much  does  your  business  model  get  customers  or  third  parSes  to  create  value  for  you?
- 138. go  ahead  and  share  on  your  facebook  page...
- 139. ...that  will  make  my  plaWorm  more  valuable...
- 140. ...and  raise  my  plaWormâs  value(aSon)...
- 141. SCALABILITY How  rapidly  and  how  easily  can  you  grow  your  business  model  without  hi[ng  roadblocks  (e.g.  infrastructure,  customer  support,  etc.)?
- 143. VIRALITY/ NETWORK  EFFECT How  viral  is  your  business  model?  How  substanSal  are  the  beneïŹts  to  share  with  others?
- 145. PROTECTION  FROM  COMPETITION How  much  is  your  business  model  protecSng  you  from  compeSSon?
- 146. a product/ technology focus is just not enough anymore
- 149. break-out session
- 151. The Business Model Canvas KEY KEY OFFER CUSTOMER CUSTOMER PARTNERS ACTIVITIES RELATIONSHIPS SEGMENTS KEY CHANNELS RESOURCES COST STRUCTURE REVENUE STREAMS
- 152. testing 4 business models with customer development
- 153. a business model might look great on paper... building block building buildin block g blo ck building block building block build ing block building building block block build block ing .. but after all it is only a... building buil di block blo ng ck buildin g block
- 154. ... a set of hypotheses guess guess guess guess guess guess guess guess guess guess g uess guess
- 156. THANK YOU! BusinessModelGeneration.com AlexOsterwalder.com / @business_design BusinessModelAlchemist.com
- 157. BusinessModelGeneration.com/toolbox iPad stencil, actual scale, template by hortis, le studio. Feb. 2010. http://hortis.lestudio.ch date: project: screen: author: