BMC in a nutshell

Hi - my name is @cemvogt – I’m a design thinking MBA*

Lecturing/
Mentoring
Framework/
Methods
Key Resources/
Key Partners

neun
vier
Ein Geschäftsmodell (Business Model) kann anhand
von neun grundlegenden Bausteinen (Blocks)
beschrieben werden.
Diese neun Blöcke decken vier relevante Kernbereiche
eines Unternehmens ab:
1. den Kunden,
2. das Angebot (Produkt/Service),
3. die Infrastruktur und
4. die langfristige Finanzierbarkeit.

Use as a guide (Leitfaden)
Market Organization

Customers are the reason for an
organization’s existence.
No organization survives long without
paying customers (B2B / B2C)

Mass market – one large group comprising only one segment
Niche market – specific,specialized customer group
Segmented – slightly different customer groups
Diversified – multiple unrelated customer segments
Multi-sided markets

VALUE PROVIDED: convenience,
price, design, brand/status, cost
reduction, risk reduction.
Designing an innovative customer
value proposition begins with
genuinely understanding the
customer's “job-to-be-done".
The premise is simple: customers
don't really buy products. They "hire"
them to do a job. Instead of asking
what products customers want to
buy, ask what fundamental problems
they hope to address.

Prof. Luc de Brabandere: “What managers can learn from great philosophers"

Describes the bundle of products or
services that create value for a specific
customer segment.
• What value do we deliver to the
customer?
• Which customer needs are we
satisfying?
• What are we offering to each customer
segment?

GAINS
:)
CUSTOMER
JOBS
Pains
:(
Pain
Relievers
Product &
Services
Gain
Relievers

PRODUCT MARKET FIT
=
A startup is not a smaller version of a
large company.
“A startup is a temporary organization
in search of a scalable, repeatable,
profitable business model” -Steve Blank

Five Functions
1. Create awareness for service/
product
2. Helping customers evaluate the
value proposition
3. Help potential customers to
purchase
4. Deliver value to customer
5. Ensure post-purchase satisfaction
through support

Personal, Automated or self service?
Co-creating products or services with
customers (i.e. Amazon, YouTube etc.)
Evaluating: the “Net Promoter Score (NPS)”

Organizations must know:
1. what will customer pay
2. accept payment in ways customer prefer
Two categories of revenue:
1. one-time customer payments
2. recurring payments
Outrage sale, lease or rent, service or usage
fee, subscription fees, licensing, brokerage
fees

Describes the most important assets
required to make a business model work
Can be physical, financial, intellectual, or
human
Key resources can be owned or leased by the
company or acquired from key partners

Describes the most important things a
company must do to make its business
model work.
• For PC manufacturer Dell, key activities
include supply chain management.
• For consultancy McKinsey, key activities
include problem solving.

Describes the network of suppliers and
partners that make the business model work
Types of partnerships:
Strategic alliances between non-competitors,
Joint ventures to develop new businesses,
Buyer-supplier relationships, Coopetition:
strategic partnerships between competitors

Describes all costs incurred to operate a
business model

PURPOSE STATEMENT:
I would like to help VP people CS through these activities KA
VP CS
KA

7 4
1 1
3
5
8
6
9
What is the
job-to-be-done?
Which of our
customer’s problems
are we helping to
solve?
Which customer
needs are we
satisfying
What are the Key
Features of our
product that match
customers problem/
need?
Through which
Channels
do our Customers
Segments want to be
reached?
What Key Activities
do we require?
Manufacturing?
Software? Supply
chain?
What Key Resources
do we require?
Financial? IP? HR?
What Job do they
want us to get done
for them?
Who are our most
important customers?
What are their
archetypes?
Who are our Key
Partners?
Who are our key
suppliers?
What are we getting
from them? Giving
them?
How do we make money?
What’s the revenue model? Pricing tactics?
What are the most important costs
inherent inner business model? Fixed? Variable?
How will we
Get, Keep and Grow
Customers?

Business Model
Macroeconomics &
Evaluation

+ -
– Internal – – External –
– Positive – – Negative –

BMC in a nutshell

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