Thinking carefully about economics and business strategy can mean the difference between having great technology and having a great company. This lecture focuses on clearly defining your business model, including how you’re going to make money with your product or service. Case studies are used to test concepts against a specific business.

1. ess
sin
Bu
Model
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nv
Ca
E101
Mark Zimmerman
@markzim

7. Who do you serve?

8. What problem do you
solve?
W
ou do?
b do y
hat jo

9. ustomers
How do c
find you?
How do they buy?
How do you deliver?

10. What type of
relationships do you
have?

11. How do you get paid?

12. What things
mudo you do?
st

13. What resources do
you need to do them?

14. Who else do you need
need
to make your model
work?

15. What does it cost to
operate the model?

16. What?
Who?
How?
Why?

17. What?
Who?
How?
Why?

18. Founder

19. Customer
Identity
Benefit
Price

20. Investor
Traction
Defensibility
Margin
Marke
Size

23. 1970 - Invented
1976 - Patented
1986 - Launched
Sold as a complete solution, machines & coffee for a per cup
price to restaurants and offices.

24. 1970 - Invented
1976 - Patented
1986 - Launched
Sold as a complete solution, machines & coffee for a per cup
price to restaurants and offices.
1988 - Acknowledged dud, Nestle considers shutdown.

25. 1989 - Jean Paul Gaillard named
Commercial Director. - “Pivots”
1970 - Invented
1976 - Patented
1986 - Launched
Sold as a complete solution, machines & coffee for a per cup
price to restaurants and offices.
1988 - Acknowledged dud, Nestle considers shutdown.

26. Separate the machine from the coffee.

27. Made and serviced by 3rd parties.
Sold through independent retail
stores.
Manufacturers handle delivery and
stocking.
Nespresso handles sales training.

28. Made and serviced by 3rd parties.
Sold through independent retail
stores.
Manufacturers handle delivery and
stocking.
Nespresso handles sales training.
Sold online and over the phone direct
to members of the Nespresso Club.
Delivered direct to consumers in 24
hours or less.

29. As market matured Nespresso
added their own brand machines
made by an OEM.
Added it’s own retail boutiques to
further control the sales message.
Created Nespresso Pro channel to
serve the office market.

31. marketing
Nespresso
e
offe e
C
chin
ma ers
mak
production
logistics
distribution
brand
high end
restaurant
quality
espresso at
home
patents
production
plants
distribtutio
n
& sales
member
high end
households
retail
nespresso.com
call centre!
nespresso
boutiques!
manufacturing
marketing
capsule sales
hardw
are sal
es

32. Nespresso

33. Business Model Generation
Alexander Osterwalder &
Yves Pigneur
Running Lean
Ash Maurya

34. Plans are of little importance,
but planning is essential.
- Churchill
Thank You.
Mark Zimmerman
@markzim