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Business
      Models
    Reloaded
designing tomorrowʼs
           enterprise


     BusinessModelGeneration.com
               @business_design
Alex Osterwalder: Business Models Reloaded (SKOLKOVO open lecture)
letʼs start with a story...
BusinessModelGeneration.com
1,000,000
        new book titles were
  published in the U.S. in ʼ10
11,000
new business books
  appear every year
12%
 decline of sales in major
bookstore chains (ʻ07-ʼ09)
Alex Osterwalder: Business Models Reloaded (SKOLKOVO open lecture)
?
so what did
  we do?
we changed the product...
Alex Osterwalder: Business Models Reloaded (SKOLKOVO open lecture)
Alex Osterwalder: Business Models Reloaded (SKOLKOVO open lecture)
Alex Osterwalder: Business Models Reloaded (SKOLKOVO open lecture)
Alex Osterwalder: Business Models Reloaded (SKOLKOVO open lecture)
Alex Osterwalder: Business Models Reloaded (SKOLKOVO open lecture)
Alex Osterwalder: Business Models Reloaded (SKOLKOVO open lecture)
Alex Osterwalder: Business Models Reloaded (SKOLKOVO open lecture)
?
 would a big publishing
house have taken us on
    with this book?
No!
we changed the business model...
“   you canʼt write about
    business model innovation
    without an innovative
    business model
                   ”
Alex Osterwalder: Business Models Reloaded (SKOLKOVO open lecture)
Alex Osterwalder: Business Models Reloaded (SKOLKOVO open lecture)
$24.-
$36.-
$54.-
$81.-
$250.-
Results
Alex Osterwalder: Business Models Reloaded (SKOLKOVO open lecture)
#   in the top 10 of softcover
    business books in the US
#   150ʼ000+ #bmgen copies in
    print (May 2011)
#   18 #bmgen translations
    upcoming in 2011
more importantly...
Alex Osterwalder: Business Models Reloaded (SKOLKOVO open lecture)
Alex Osterwalder: Business Models Reloaded (SKOLKOVO open lecture)
letʼs go back in time to understand
business models...
Time Machine
1958
[sources: Henry Chesbrough, photo: life.com]
revenue growth of 41%
compounded for the next 20 years




                  [sources: Henry Chesbrough, photo: xerox.com]
Time Machine
1997
Alex Osterwalder: Business Models Reloaded (SKOLKOVO open lecture)
ʼ10 revenue of $29.32 billion ($8.5
        billion net income)
?
what do both examples
  have in common?
1
      Product innovation
          alone was not
                sufficient
       They enabled the
    new product through
     the business model
2
       They didnʼt nor
      could they copy
    from competitors
        They invented
        new business
               models
3
    They couldnʼt prove
    in advance that the
    models would work
       They had to take
         some risk and
            experiment
123
 business
  beyond       beyond
                design      beyond
                            testing
  product
   model       thinking
               copying      asking
                            before
innovation
 language    competitors
               attitude    for proof
                           building
business
model
language
           1
buzz
group
Alex Osterwalder: Business Models Reloaded (SKOLKOVO open lecture)
how much did the cost of
  home coffee consumption
change for Swiss households
over the last couple of years?
6-8 x
more
Alex Osterwalder: Business Models Reloaded (SKOLKOVO open lecture)
Nespresso
  changed the
business model
  for espresso
RESULTS
own
 recycling
containers
one of the fastest-
growing businesses in
   the Nestlé group
average growth of
30% p.a. since 2000
over 3 billion CHF annual
revenue with 1 product line
       (2.4 bio EUR)
buzz
group
?
Discuss and describe what
  you think Nespressoʼs
    business model is
buzz
group
Alex Osterwalder: Business Models Reloaded (SKOLKOVO open lecture)
?
discuss with your seat neighbor
 what a business model is and
   write down your definition
?
 what elements did you
mention in your definition?
Alex Osterwalder: Business Models Reloaded (SKOLKOVO open lecture)
?   ?
Alex Osterwalder: Business Models Reloaded (SKOLKOVO open lecture)
Alex Osterwalder: Business Models Reloaded (SKOLKOVO open lecture)
Business
Model Canvas
to describe, challenge,
design, and invent
business models more
systematically
9   building
    blocks
CUSTOMER SEGMENTS




                    images by JAM
VALUE PROPOSITIONS




                     images by JAM
CHANNELS




           images by JAM
CUSTOMER RELATIONSHIPS




                     images by JAM
REVENUE STREAMS




                  images by JAM
KEY RESOURCES




                images by JAM
KEY ACTIVITIES




                 images by JAM
KEY PARTNERS




               images by JAM
COST STRUCTURE




                 images by JAM
key      value          customer
            activities   proposition      relationships




    key                                              customer
partners                                             segments




    cost                                             revenue
structure          key                               streams
             resources                 channels

                                                     images by JAM
key      value          customer
            activities   proposition      relationships




    key                                              customer
partners                                             segments




    cost                                             revenue
structure          key                               streams
             resources                 channels

                                                     images by JAM
images by JAM
CANVAS OVERLAY
   KEY          KEY       OFFER     CUSTOMER      CUSTOMER
PARTNERS     ACTIVITIES           RELATIONSHIPS   SEGMENTS




               KEY                  CHANNELS
            RESOURCES




       COST STRUCTURE              REVENUE STREAMS




                                                     images by JAM
CANVAS OVERLAY
   KEY          KEY       OFFER     CUSTOMER      CUSTOMER
PARTNERS     ACTIVITIES           RELATIONSHIPS   SEGMENTS




               KEY                  CHANNELS
            RESOURCES




       COST STRUCTURE              REVENUE STREAMS




                                                     images by JAM
The Business Model Canvas
   KEY                  KEY                     OFFER        CUSTOMER                CUSTOMER
PARTNERS             ACTIVITIES                            RELATIONSHIPS             SEGMENTS

                   building                                    building
                    block                                       block


                          building
                                                building                              building
                          block
building                                         block                                block
 block
                       KEY                                    CHANNELS
                    RESOURCES
                                                           building
                                                            block
                      building
                       block
                                                                      building
                                                                      block



            COST STRUCTURE                                   REVENUE STREAMS
                                     buildi
               g                           ng                             building
       buildin                       block
           block                                                           block
illustra-on
Nespresso
  changed the
business model
  for espresso
Nespresso’s business Model
     KEY                            KEY                          Value                    CUSTOMER                CUSTOMER
  PARTNERS                       ACTIVITIES                    Proposition              RELATIONSHIPS             SEGMENTS

                     B2C                  marketing
                           tion                                                            Nespre
                  distribu                                                                       sso                households
                                                                                             Club                 (espresso fans)


                                                               *** Nespresso
            ne
coffee machi                     production                      machines
             rs
 manufacture
                                                                                                                    businesses

                                                                                      etail
                                    KEY                                         **** r CHANNELS
                                                               Nespresso                ts
                                 RESOURCES                                        outle                 mail
   coffee                                                        pods
                                       distribu                                                         order
   growers                                        tion
                     c   offee          channels

                                                                                   Nespresso.com


                                           productio                            call
                          t  s                             n                                   Nespresso stores
                    paten                     facilities                       center



                  COST STRUCTURE                                                          REVENUE STREAMS
                          B2C                                                                                sales of
                      distrib                                                                               Nespresso
                              ution                                                 sales of
 production                                                                                                 machines
                                                 marketing                       Nespresso po
                                                                                              ds
but Nespresso almost failed in
1987 due to a nonperforming
       business model
Nespresso’s 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
Alex Osterwalder: Business Models Reloaded (SKOLKOVO open lecture)
buzz	
  
group
BusinessModelGeneration.com/canvas
UNDERSTANDER (interviewer)    EXPLAINER (interviewee)
asks questions and sketches   answers business model
out interlocutors business    questions to help interviewer
model with post-it notes      understand his/her core model
Alex Osterwalder: Business Models Reloaded (SKOLKOVO open lecture)
Alex Osterwalder: Business Models Reloaded (SKOLKOVO open lecture)
Alex Osterwalder: Business Models Reloaded (SKOLKOVO open lecture)
the business
model generation
 is changing the
      way we are
   creating value
resource
driven innovation
Alex Osterwalder: Business Models Reloaded (SKOLKOVO open lecture)
value proposition/tech
     driven innovation
Alex Osterwalder: Business Models Reloaded (SKOLKOVO open lecture)
job-to-get-done
driven innovation
Alex Osterwalder: Business Models Reloaded (SKOLKOVO open lecture)
finance
driven innovation
Alex Osterwalder: Business Models Reloaded (SKOLKOVO open lecture)
multiple-epicenter
            driven
Alex Osterwalder: Business Models Reloaded (SKOLKOVO open lecture)
design
thinking
attitude
           2
design
    ≠
only form
F rank
G  ehry
    [source: Sony Pictures]
Alex Osterwalder: Business Models Reloaded (SKOLKOVO open lecture)
Alex Osterwalder: Business Models Reloaded (SKOLKOVO open lecture)
[source: Sony Pictures]
[source: Sony Pictures]
[source: Wikimedia Commons]
Alex Osterwalder: Business Models Reloaded (SKOLKOVO open lecture)
?
what does that have to do
with business models and
     my organization?
Alex Osterwalder: Business Models Reloaded (SKOLKOVO open lecture)
?
what does that
mean for us?
BusinessModelGeneration.com
Alex Osterwalder: Business Models Reloaded (SKOLKOVO open lecture)
Alex Osterwalder: Business Models Reloaded (SKOLKOVO open lecture)
business model prototyping




napkin sketch   Canvas   business case   field test
case
study
3 years ago in Mexico
Alex Osterwalder: Business Models Reloaded (SKOLKOVO open lecture)
Pomarfin - a Finnish shoe manufacturer
PARTNER                  KEY                    OFFER     CUSTOMER          CUSTOMER
 NETWORK                ACTIVITIES                       RELATIONSHIPS       SEGMENTS
                          shoe
                    manufacturing


              B2B
                                                                             mass sho
                                                                                      e
            logistics
                                                                              market


                           KEY                           DISTRIBUTION
                        RESOURCES                         CHANNELS
                                                             retail
                                                           partners
                                                                               retail
                                                                             partners
                                                             sales
                                                             force


              COST STRUCTURE                               REVENUE STREAMS
                                                           sales to
        uring
manufact                             logistics
                                                           retailers
    costs                             cost
?
Whatʼs the big challenge for
  Pomarfin and its shoe
  manufacturing model?
Alex Osterwalder: Business Models Reloaded (SKOLKOVO open lecture)
so Pomarfin invented the
“perfect fit” shoe, based on
  a technology innovation
Alex Osterwalder: Business Models Reloaded (SKOLKOVO open lecture)
PARTNER                  KEY                     OFFER     CUSTOMER          CUSTOMER
 NETWORK                ACTIVITIES                        RELATIONSHIPS       SEGMENTS
                          shoe
                    manufacturing


              B2B
                                                                              mass sho
                                                                                       e
            logistics
                                                                               market


                           KEY                            DISTRIBUTION
                        RESOURCES                          CHANNELS
                                                              retail
                                                            partners
                                                                                retail
                                                                              partners
                                   ning
                         foot scan                            sales
                                     y
                           technolog                          force


              COST STRUCTURE                                REVENUE STREAMS
                                                            sales to
        uring
manufact                              logistics
                                                            retailers
    costs                                 cost
buzz
group
?
How could Pomarfin use foot-
   scanner technology to
 become competitive again?
PARTNER                  KEY                     OFFER     CUSTOMER          CUSTOMER
 NETWORK                ACTIVITIES                        RELATIONSHIPS       SEGMENTS
                          shoe
                    manufacturing


              B2B
                                                                              mass sho
                                                                                       e
            logistics
                                                                               market


                           KEY                            DISTRIBUTION
                        RESOURCES                          CHANNELS
                                                              retail
                                                            partners
                                                                                retail
                                                                              partners
                                   ning
                         foot scan                            sales
                                     y
                           technolog                          force


              COST STRUCTURE                                REVENUE STREAMS
                                                            sales to
        uring
manufact                              logistics
                                                            retailers
    costs                                 cost
Pomar’s	
  
design	
  
decision
Alex Osterwalder: Business Models Reloaded (SKOLKOVO open lecture)
Alex Osterwalder: Business Models Reloaded (SKOLKOVO open lecture)
PARTNER                  KEY                    OFFER     CUSTOMER           CUSTOMER
 NETWORK                ACTIVITIES                       RELATIONSHIPS        SEGMENTS
                         shoe
                    manufacturing                        personal online
                                                            footprint
               B2C
               B2Bcs
                  ti                                                         high-end men’s
             logis             IT                                             mass sho
                                                                                       e
            logistics      manageme                                              market
                                    nt                                         market


                           KEY                           DISTRIBUTION
                    ss                                   own s
                ma RESOURCESn                                   tores
                                                            CHANNELSn
                       atio                                            a d
                to miz                                   retailretai
                                                                partnl
            cus     tory                                               ers
                 fac                                         partners
                                                                                retail
                                                           online
                                                                               partners
                                  ning                     store
                        foot scan                             sales
                                    y
                          technolog                           force


              COST STRUCTURE                               REVENUE STREAMS

                     royalty                                sales to
        uring
manufact          payments           logistics
                                                            retailers        direct web
                              to
    costs           retailers            cost                                  sales
testing
before
building
           3
Alex Osterwalder: Business Models Reloaded (SKOLKOVO open lecture)
-­‐$800m
a business model might look
great on paper...


                 building
                  block
                                                         building
                      buildin                             block
                              g
   building           block
    block                               building
                                         block
                                                                          build
                                                                                ing
                                                                          block

                                                   building
                 building                           block
                  block
                                                          build
                                                          block
                                                                ing
                                                                                      .. but after all
                                                                                      it is only a...
      building              buil
                                 ding
       block                blo
                                ck
                                                              buildin
                                                                      g
                                                              block
... a set of hypotheses


        guess              guess
          guess
                  guess              guess
guess
                          guess
         guess               guess

             guess
  guess                        guess
StevenBlank.com/books.html
you need to get out of the
building and ...
test each hypothesis
(e.g. with customers)
business model layer
                            t
                     t  sho
               r bes          s
          you          s ines
th is is       ou r bu      k
      h o w y          wor
                    ld
 at          l  cou
     m   ode


                                 building
                                                                          building
                                  block
                                                                           block

                                       building
                                        block                                                   building
                                                           building
              building                                      block                               block
               block

                                                                      building
                                                                       block

                                    building                                     building
                                     block
                                                                                  block




                                               buildin
                             g                         g                             building
                     buildin                   block
                      block                                                           block
exp
hypothesis layer                                                                                 imp
                                                                                                              licit
                                                                                                           ly o
                                                                                                      ort       utli
                                                                                                          ant        ne
                                                                                                whi                     the
                                                                                                    ch          hyp          mo
                                                                                                       you           oth          st
                                                                                                            r bu         ese
                                                                                                                 sine        s o
                                                                                                                      ss         n
                                                                                                           is b           mo
                                                                                                                uilt          del

                                         hypothesis
                                                                                                hypothesis


                                                  hypothesis
                                                                                 s                                hypothesi
                                                                    hypothesi                                              s
                        hypothesis

                        building                                                                     s
                                                                       building          hypothesi
                         block
                                                                        block

                              building        hypothesis                                            hypothesi
                                                                                                              s
                               block                                                              building
                                                  building
     building                                      block                                           block
      block

                                                         hypo      building
                                         is                    thesis ock
                                   othes                            bl                                   hypothesis
                               hyp
                           building                                           building
                            block
                                                                               block




                                      buildin
                    g                         g                                      building
            buildin                   block
             block                                                                    block
test layer

                                                                    test
                                                                                                                         test


                                                                           test
                                                                                                test                                    test
                                                   test

                                              building
                                                                                                building              test
                                               block
                                                                                                 block

                                                      building          test
                                                                                                                             test
                                                       block                                                            building
                                                                        building
                           building                                      block                                           block
                             block
                         building
                                                                          building         ilding
                          block                                                    test bu
                                                                           block         block                                  test
                                                           test
                               building            building                                         building
                                block               block g                                     building k
                                                    buildin                                          bloc
      building                                        block                                      block
       block

                                                                        ilding
                                                             buildin bu
                                          g                         g block                                building
                                  buildin                    block
                                    block                                                                   block
                            building
                                                                                 building
                             block
                                                                                  block




                                                                                                                                             sts
             buildin
                     g
                                       buildin
                                       block
                                               g                                     building
                                                                                                                             come up with te
              block                                                                   block

                                                                                                                                           ach
                                                                                                                               to verify e
                                                                                                                                       hypothesis
iPad
app
BusinessModelGeneration.com/toolbox
                      iPad stencil, actual scale, template by hortis, le studio. Feb. 2010. http://hortis.lestudio.ch




date:
          project:
          screen:
author:
BusinessModelGeneration.com/toolbox
                      iPad stencil, actual scale, template by hortis, le studio. Feb. 2010. http://hortis.lestudio.ch




date:
          project:
          screen:
author:
FAQ
?
 so whereʼs the
competition in this
    model?



                 FAQ
?
   is business model
 innovation only about
disruptive new models?



                  FAQ
?
isnʼt execution the
  most important
       thing?



                 FAQ
THANK YOU!
    BusinessModelGeneration.com
             AlexOsterwalder.com
     BusinessModelAlchemist.com
          Twitter: business_design

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Alex Osterwalder: Business Models Reloaded (SKOLKOVO open lecture)

  • 1. Business Models Reloaded designing tomorrowʼs enterprise BusinessModelGeneration.com @business_design
  • 3. letʼs start with a story...
  • 5. 1,000,000 new book titles were published in the U.S. in ʼ10
  • 6. 11,000 new business books appear every year
  • 7. 12% decline of sales in major bookstore chains (ʻ07-ʼ09)
  • 9. ? so what did we do?
  • 10. we changed the product...
  • 18. ? would a big publishing house have taken us on with this book?
  • 19. No!
  • 20. we changed the business model...
  • 21. you canʼt write about business model innovation without an innovative business model ”
  • 24. $24.-
  • 25. $36.-
  • 26. $54.-
  • 27. $81.-
  • 31. # in the top 10 of softcover business books in the US
  • 32. # 150ʼ000+ #bmgen copies in print (May 2011)
  • 33. # 18 #bmgen translations upcoming in 2011
  • 37. letʼs go back in time to understand business models...
  • 39. 1958
  • 40. [sources: Henry Chesbrough, photo: life.com]
  • 41. revenue growth of 41% compounded for the next 20 years [sources: Henry Chesbrough, photo: xerox.com]
  • 43. 1997
  • 45. ʼ10 revenue of $29.32 billion ($8.5 billion net income)
  • 46. ? what do both examples have in common?
  • 47. 1 Product innovation alone was not sufficient They enabled the new product through the business model
  • 48. 2 They didnʼt nor could they copy from competitors They invented new business models
  • 49. 3 They couldnʼt prove in advance that the models would work They had to take some risk and experiment
  • 50. 123 business beyond beyond design beyond testing product model thinking copying asking before innovation language competitors attitude for proof building
  • 54. how much did the cost of home coffee consumption change for Swiss households over the last couple of years?
  • 57. Nespresso changed the business model for espresso
  • 60. one of the fastest- growing businesses in the Nestlé group
  • 61. average growth of 30% p.a. since 2000
  • 62. over 3 billion CHF annual revenue with 1 product line (2.4 bio EUR)
  • 64. ? Discuss and describe what you think Nespressoʼs business model is
  • 67. ? discuss with your seat neighbor what a business model is and write down your definition
  • 68. ? what elements did you mention in your definition?
  • 70. ? ?
  • 74. to describe, challenge, design, and invent business models more systematically
  • 75. 9 building blocks
  • 76. CUSTOMER SEGMENTS images by JAM
  • 77. VALUE PROPOSITIONS images by JAM
  • 78. CHANNELS images by JAM
  • 79. CUSTOMER RELATIONSHIPS images by JAM
  • 80. REVENUE STREAMS images by JAM
  • 81. KEY RESOURCES images by JAM
  • 82. KEY ACTIVITIES images by JAM
  • 83. KEY PARTNERS images by JAM
  • 84. COST STRUCTURE images by JAM
  • 85. key value customer activities proposition relationships key customer partners segments cost revenue structure key streams resources channels images by JAM
  • 86. key value customer activities proposition relationships key customer partners segments cost revenue structure key streams resources channels images by JAM
  • 88. CANVAS OVERLAY KEY KEY OFFER CUSTOMER CUSTOMER PARTNERS ACTIVITIES RELATIONSHIPS SEGMENTS KEY CHANNELS RESOURCES COST STRUCTURE REVENUE STREAMS images by JAM
  • 89. CANVAS OVERLAY KEY KEY OFFER CUSTOMER CUSTOMER PARTNERS ACTIVITIES RELATIONSHIPS SEGMENTS KEY CHANNELS RESOURCES COST STRUCTURE REVENUE STREAMS images by JAM
  • 90. The Business Model Canvas KEY KEY OFFER CUSTOMER CUSTOMER PARTNERS ACTIVITIES RELATIONSHIPS SEGMENTS building building block block building building building block building block block block KEY CHANNELS RESOURCES building block building block building block COST STRUCTURE REVENUE STREAMS buildi g ng building buildin block block block
  • 92. Nespresso changed the business model for espresso
  • 93. Nespresso’s business Model KEY KEY Value CUSTOMER CUSTOMER PARTNERS ACTIVITIES Proposition RELATIONSHIPS SEGMENTS B2C marketing tion Nespre distribu sso households Club (espresso fans) *** Nespresso ne coffee machi production machines rs manufacture businesses etail KEY **** r CHANNELS Nespresso ts RESOURCES outle mail coffee pods distribu order growers tion c offee channels Nespresso.com productio call t s n Nespresso stores paten facilities center COST STRUCTURE REVENUE STREAMS B2C sales of distrib Nespresso ution sales of production machines marketing Nespresso po ds
  • 94. but Nespresso almost failed in 1987 due to a nonperforming business model
  • 95. Nespresso’s 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
  • 99. UNDERSTANDER (interviewer) EXPLAINER (interviewee) asks questions and sketches answers business model out interlocutors business questions to help interviewer model with post-it notes understand his/her core model
  • 103. the business model generation is changing the way we are creating value
  • 106. value proposition/tech driven innovation
  • 115. design ≠ only form
  • 116. F rank G ehry [source: Sony Pictures]
  • 123. ? what does that have to do with business models and my organization?
  • 129. business model prototyping napkin sketch Canvas business case field test
  • 131. 3 years ago in Mexico
  • 133. Pomarfin - a Finnish shoe manufacturer
  • 134. PARTNER KEY OFFER CUSTOMER CUSTOMER NETWORK ACTIVITIES RELATIONSHIPS SEGMENTS shoe manufacturing B2B mass sho e logistics market KEY DISTRIBUTION RESOURCES CHANNELS retail partners retail partners sales force COST STRUCTURE REVENUE STREAMS sales to uring manufact logistics retailers costs cost
  • 135. ? Whatʼs the big challenge for Pomarfin and its shoe manufacturing model?
  • 137. so Pomarfin invented the “perfect fit” shoe, based on a technology innovation
  • 139. PARTNER KEY OFFER CUSTOMER CUSTOMER NETWORK ACTIVITIES RELATIONSHIPS SEGMENTS shoe manufacturing B2B mass sho e logistics market KEY DISTRIBUTION RESOURCES CHANNELS retail partners retail partners ning foot scan sales y technolog force COST STRUCTURE REVENUE STREAMS sales to uring manufact logistics retailers costs cost
  • 141. ? How could Pomarfin use foot- scanner technology to become competitive again?
  • 142. PARTNER KEY OFFER CUSTOMER CUSTOMER NETWORK ACTIVITIES RELATIONSHIPS SEGMENTS shoe manufacturing B2B mass sho e logistics market KEY DISTRIBUTION RESOURCES CHANNELS retail partners retail partners ning foot scan sales y technolog force COST STRUCTURE REVENUE STREAMS sales to uring manufact logistics retailers costs cost
  • 146. PARTNER KEY OFFER CUSTOMER CUSTOMER NETWORK ACTIVITIES RELATIONSHIPS SEGMENTS shoe manufacturing personal online footprint B2C B2Bcs ti high-end men’s logis IT mass sho e logistics manageme market nt market KEY DISTRIBUTION ss own s ma RESOURCESn tores CHANNELSn atio a d to miz retailretai partnl cus tory ers fac partners retail online partners ning store foot scan sales y technolog force COST STRUCTURE REVENUE STREAMS royalty sales to uring manufact payments logistics retailers direct web to costs retailers cost sales
  • 150. a business model might look great on paper... building block building buildin block g building block block building block build ing block building building block block build block ing .. but after all it is only a... building buil ding block blo ck buildin g block
  • 151. ... a set of hypotheses guess guess guess guess guess guess guess guess guess guess guess guess
  • 153. you need to get out of the building and ...
  • 154. test each hypothesis (e.g. with customers)
  • 155. business model layer t t sho r bes s you s ines th is is ou r bu k h o w y wor ld at l cou m ode building building block block building block building building building block block block building block building building block block buildin g g building buildin block block block
  • 156. exp hypothesis layer imp licit ly o ort utli ant ne whi the ch hyp mo you oth st r bu ese sine s o ss n is b mo uilt del hypothesis hypothesis hypothesis s hypothesi hypothesi s hypothesis building s building hypothesi block block building hypothesis hypothesi s block building building building block block block hypo building is thesis ock othes bl hypothesis hyp building building block block buildin g g building buildin block block block
  • 157. test layer test test test test test test building building test block block building test test block building building building block block block building building ilding block test bu block block test test building building building block block g building k buildin bloc building block block block ilding buildin bu g g block building buildin block block block building building block block sts buildin g buildin block g building come up with te block block ach to verify e hypothesis
  • 159. BusinessModelGeneration.com/toolbox iPad stencil, actual scale, template by hortis, le studio. Feb. 2010. http://hortis.lestudio.ch date: project: screen: author:
  • 160. BusinessModelGeneration.com/toolbox iPad stencil, actual scale, template by hortis, le studio. Feb. 2010. http://hortis.lestudio.ch date: project: screen: author:
  • 161. FAQ
  • 162. ? so whereʼs the competition in this model? FAQ
  • 163. ? is business model innovation only about disruptive new models? FAQ
  • 164. ? isnʼt execution the most important thing? FAQ
  • 165. THANK YOU! BusinessModelGeneration.com AlexOsterwalder.com BusinessModelAlchemist.com Twitter: business_design