Business Modeling for Startups (Semantic Web Seminar, AIFB at KIT)
1. Business Modeling for Startups
AIFB Seminar: Developing Business Models
for the Semantic Web (WS 12/13, KIT)
Julius Parrisius, Center für Innovation & Entrepreneurship 30.10.2012
2. The story
What is a Design and Connection How does
Business Model Testing of between Business Model
and how does Business Design and and Business
it relate to Models. Testing. Plan fit
startups? together?
3. The story
What is a Design and Connection How does
Business Model Testing of between Business Model
and how does Business Design and and Business
it relate to Models. Testing. Plan fit
startups? together?
4. Def.:
A business model describes the rationale
of how an organization creates, delivers,
and captures value.
Business Model Generation, A. Osterwalder, Yves Pigneur, Alan
Smith, and 470 practitioners from 45 countries, self published, 2010
5. Def.:
Or in English: A business model describes
how your company makes money.
What’s a startup? First Principles, Steve Blank, Blog article,
www.steveblank.com (Retrieved Oct 26, 2012)
6. An ad-based freemium-model.
Advertiser
Money
Lead to music fans
Free music service Music-fan
(free)
Subscription fee $9.99/month
Music-fan
Ad-free premium music (premium)
service
So far 15mio users are signed up, 4mio of them as
paying customers (at: 08/2012).
7. A one-sided Match-making plattform.
Match-making service
Visitor
Room to rent Money
Match-making service
Renter
Community
6-12 % commission
More than 200.000 offers in more than 26.000 cities
(192 countries) and over 1mio users (at: 07/2012).
8. A marketplace for fund seekers.
Large micro-funding
Small micro-funding
exposure exposure member member
Fund seeker
Crowd of backers
5 % Gebühr
Small reward
Large reward
74.000 projects (success rate of 44%) have been
funded with roughly $381mio (at: 10/2012).
9. Def.:
A startup is a human institution designed
to create a new product or service
under conditions of extreme uncertainty.
The lean startup, Eric Ries, Crown Business, 2011
10. Def.:
[…] a startup is an organization formed
to search for a repeatable and scalable
business model. Teaching Entrepreneurship – By Getting Out of the Building, Steve
Blank, Blog article, www.steveblank.com (Retrieved Oct 26, 2012)
12. The story
What is a Design and Connection How does
Business Model Testing of between Business Model
and how does Business Design and and Business
it relate to Models. Testing. Plan fit
startups? together?
17. “[…] building a product is NOT
“the product” of your startup.
Your business model is “the product”.
Running Lean (2nd edition), Ash Maurya, O‟Reilly, 2012
22. Why is this so important?
Life is too short to build something
nobody wants. Running Lean (2nd edition), Ash Maurya, O‟Reilly, 2012
23. Customer focus should be on the
early adopters in the beginning.
Technology adoption lifecycle
(Everett Rogers„ bell curve)
Early adopters Early majority
Refined with „the Chasm“
(Crossing the Chasm, Geoffrey Moore, Harper, 1991)
32. Avg. Income:
$12.50/hr
A search saves the Savings:
user 6min (avg). $1.25/search
Creating value
at $1.25/search
Google creates
Google in U.S.:
$1.5bln value/day
1.2bln searches/day
in U.S.
Creating value
at $1.25/search
Cost for Google: Cost to customer
0.2 cents/search value ratio: 625!!!
„ [..] a stunning value proposition by any measure.“
IT-Driven Business Models, Kagermann et al., John Wiley & Sons, 2011
36. The old way
The Four Steps to the Epiphany, Steve
Blank, printed by Lulu.com, 2006, p. 2.
37. The new way
Lean Startups Aren’t Cheap Startups, Steve Blank, Blog
article, http://venturebeat.com/2009/11/03/lean-startups-
aren‟t-cheap-startups/ , (Retrieved Oct 26, 2012)
41. The story
What is a Design and Connection How does
Business Model Testing of between Business Model
and how does Business Design and and Business
it relate to Models. Testing. Plan fit
startups? together?
46. The story
What is a Design and Connection How does
Business Model Testing of between Business Model
and how does Business Design and and Business
it relate to Models. Testing. Plan fit
startups? together?
52. Today many resources are free or cheap
=> we can run experiments.
Time is the only resource that will always
be limited => we have to fail fast.
„Fail fast“ concept applied from: Fail Fast, Jim Shore, IEEE Computer
Society, 2004, www.martinfowler.com/ieeeSoftware/failFast.pdf
53. Why is the Business Model Canvas great?
fast. concise. portable.
Running Lean (2nd edition), Ash Maurya, O‟Reilly, 2012
56. Inhalte eines Business Plans
Cover Page and Table of Contents
Executive Summary
Business Description
Business Environment Analysis
Industry Background
Competitive Analysis
Market Analysis
Marketing Plan
Operations Plan
Management Team
Financial Plan
Attachments and Milestones
57. Operations Plan Market Analysis
Business
Description
Marketing Plan
Financial Plan
58. Perfect your pitch, then write your plan.
Use the business-plan exercise as a way to get your team on the
same page.
Keep it short: ten to twenty pages.
Spend no more than two weeks writing it.
Don‟t get obsessed with details in your financial forecast because it
should be one page long.
Is a business plan necessary, Guy Kawasaki (Silicon Valley VC, bestselling
author), blog article, blog.guykawasaki.com (Retrieved Oct 27, 2012)