Some amazing tips to present your business plan. Cheers

1. DRAFT
VERSION
Management2.0:
Competitive Advantage through Business
Model Design & Innovation
Guadalajara, June 2007
Alexander Osterwalder, PhD
alex@arvetica.com

2. change is the process by
which the future invades our
lives
-> Alvin Toffler

3. first of all: what
are YOUR
concerns?
(buzz groups)

4. what are YOUR biggest issues and
fears you face in strategic management
today?

5. where do YOU see the largest
opportunities to improve strategic
management today?

6. your expectations for
today?

7. what is
innovation?

8. tell me about the most
important innovations in your
company

9. types of
innovation?

10. technology
innovation

11. process
innovation

12. product &
service
innovation

13. business model
innovation

14. four levels of
innovation
business model innovation
product & service innovation
process innovation
technology innovation

15. “Business model innovation matters” and it is
a top priority of CEOs

16. Operating Margin Growth in Excess of
Competitive Peers
compound annual growth rate over five years
[Source: IBM, CEOs are expanding the innovation horizon: important implications for CIOs]

17. Benefits Cited by Business Model
Innovators
percent of respondents
[Source: IBM, Global CEO Study 2006]

18. why talk about
business models?

19. how do you describe a
business model?

20. without a common language

21. how do you
communicate a
business model?

22. 1%
Strategy
18%
300%
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Text
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Development plan
•
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•
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12%
•
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dignissim sodales. Aenean non justo nec magna lobortis volutpat.
Words
through inappropriate
means

23. how do you implement a business
model?

24. with outdated methods

25. how do you measure the
success of a business model?

26. we don’t

27. how do you change a
business model and
innovate?

28. we re-invent the
wheel

29. what is a business
model?

30. business model framework
INFRASTRUCTURE
CORE
CAPABILITIES
PARTNER
NETWORK
ACTIVITY
CONFIGURATION
COST
STRUCTURE
OFFER
VALUE
PROPOSITION
FINANCE
CUSTOMER
RELATIONSHIPS
DISTRIBUTION
CHANNELS
CUSTOMER
CUSTOMER
SEGMENTS
REVENUE
STREAMS
a business model describes the value an organization offers to
various customers and portrays the capabilities and partners
required for creating, marketing, and delivering this value and
relationship capital with the goal of generating profitable and
sustainable revenue streams
[Osterwalder (2004) The Business Model Ontology]

31. case study

32. you become the new owner of a
soccer club …

33. describe YOUR
club’s business
model

34. what value proposition do you offer,
to which customer segments?
describing how a wealth management bank acquires its clients

35. what value proposition do you offer,
to which customer segments?
(model)
OFFER
CUSTOMER
VALUE
PROPOSITION
CUSTOMER
SEGMENTS
value proposition 1
value proposition 2
…
target customer 1
target customer 2
…

36. what value proposition do you offer,
to which customer segments?
(example)
OFFER
CUSTOMER
spectacular
offensive football
fans
advertising space &
high visibility
advertisers
…
…

37. how do you reach your customers?

38. how do you reach your customers?
(model)
OFFER
CUSTOMER
VALUE
PROPOSITION
COMMUNICATION
& DISTRIBUTION
CHANNELS
CUSTOMER
SEGMENTS
value proposition 1
value proposition 2
…
channel 1
channel 2
…
target customer 1
target customer 2
…

39. how do you reach your customers?
(example)
OFFER
CUSTOMER
stadium & box office
spectacular
offensive football
club owned TV
channel
fans
mobile phone TV
advertising space &
high visibility
sales force
advertisers

40. how do you build relationships?

41. how do you build
relationships with your
customers? (model)
OFFER
CUSTOMER
VALUE
PROPOSITION
CUSTOMER
RELATIONSHIP
CUSTOMER
SEGMENTS
value proposition 1
value proposition 2
…
mechanism 1
mechanism 2
…
target customer 1
target customer 2
…

42. how do you build
relationships with your
customers? (example)
OFFER
CUSTOMER
personalized website
(ticketing)
spectacular
offensive football
team blog (RSS)
…
fans

43. how do you earn your money
with this business model?

44. how do you earn your money
with this business model?
(model)
OFFER
FINANCE
VALUE
PROPOSITION
REVENUE
STREAMS
CUSTOMER
SEGMENTS
value proposition 1
value proposition 2
…
revenue stream 1
revenue stream 2
…
target customer 1
target customer 2
…

45. how do you earn your money
with this business model?
(example)
OFFER
FINANCE
ticket sales
spectacular
offensive football
TV channel
subscriber fees
fans
mobile phone TV
subscriber fees
advertising space &
high visibility
advertising revenues
advertisers

46. the big picture (business
model)

47. the big
picture
Partner Network
•
•
•
•
•
•
•
Core Capability
• play attractive & win
games
• brand management
• video images
• channel management
•
•
•
•
•
food & beverages
ticketing services
promoters
ad placement
telecom operator
TV operator
…
Activity Configuration
•
•
•
•
•
team management
event management
venue management
ticketing
VIP relationship
management
• video crew
•…
Cost Structure
•
•
•
•
Customer Relationship
team & maintenance
infrastructure management
marketing
video
Value Proposition
• attractive soccer
• 360º event (match,
dining, shopping)
• exclusive VIP lounges
• merchandising
• renting out stadium
•…
personalized web profile
newsletter
team blog (RSS)
VIP events with team
…
Distribution Channel
•
•
•
•
•
•
stadium
POS networks
club website (+online TV)
club cable TV channel
mobile phone TV channel
…
Revenue Model
•
•
•
•
•
•
Ticket fees & season tickets
online TV subscription revenues
revenue sharing cable & mobile phone TV
renting out stadium for events
advertising revenues
merchandising revenues
Target Customer
•
•
•
•
•
•
fans (families, etc.)
fan groups
companies
event/concert organizers
advertisers
…

48. value creates
revenues
Partner Network
•
•
•
•
•
•
•
Core Capability
• play attractive & win
games
• brand management
• video images
• channel management
•
•
•
•
•
food & beverages
ticketing services
promoters
ad placement
telecom operator
TV operator
…
Activity Configuration
•
•
•
•
•
team management
event management
venue management
ticketing
VIP relationship
management
• video crew
•…
Cost Structure
•
•
•
•
Customer Relationship
team & maintenance
infrastructure management
marketing
video
Value Proposition
• attractive soccer
• 360º event (match,
dining, shopping)
• exclusive VIP lounges
• merchandising
• renting out stadium
•…
personalized web profile
newsletter
team blog (RSS)
VIP events with team
…
Distribution Channel
•
•
•
•
•
•
stadium
POS networks
club website (+online TV)
club cable TV channel
mobile phone TV channel
…
Revenue Model
•
•
•
•
•
•
Ticket fees & season tickets
online TV subscription revenues
revenue sharing cable & mobile phone TV
renting out stadium for events
advertising revenues
merchandising revenues
Target Customer
•
•
•
•
•
•
fans (families, etc.)
fan groups
companies
event/concert organizers
advertisers
…

49. creating value requires
infrastructure
Partner Network
•
•
•
•
•
•
•
Core Capability
• play attractive & win
games
• brand management
• video images
• channel management
•
•
•
•
•
food & beverages
ticketing services
promoters
ad placement
telecom operator
TV operator
…
Activity Configuration
•
•
•
•
•
team management
event management
venue management
ticketing
VIP relationship
management
• video crew
•…
Cost Structure
•
•
•
•
Customer Relationship
team & maintenance
infrastructure management
marketing
video
Value Proposition
• attractive soccer
• 360º event (match,
dining, shopping)
• exclusive VIP lounges
• merchandising
• renting out stadium
•…
personalized web profile
newsletter
team blog (RSS)
VIP events with team
…
Distribution Channel
•
•
•
•
•
•
stadium
POS networks
club website (+online TV)
club cable TV channel
mobile phone TV channel
…
Revenue Model
•
•
•
•
•
•
Ticket fees & season tickets
online TV subscription revenues
revenue sharing cable & mobile phone TV
renting out stadium for events
advertising revenues
merchandising revenues
Target Customer
•
•
•
•
•
•
fans (families, etc.)
fan groups
companies
event/concert organizers
advertisers
…

50. infrastructure generates
costs
Partner Network
•
•
•
•
•
•
•
Core Capability
• play attractive & win
games
• brand management
• video images
• channel management
•
•
•
•
•
food & beverages
ticketing services
promoters
ad placement
telecom operator
TV operator
…
Activity Configuration
•
•
•
•
•
team management
event management
venue management
ticketing
VIP relationship
management
• video crew
•…
Cost Structure
•
•
•
•
Customer Relationship
team & maintenance
infrastructure management
marketing
video
Value Proposition
• attractive soccer
• 360º event (match,
dining, shopping)
• exclusive VIP lounges
• merchandising
• renting out stadium
•…
personalized web profile
newsletter
team blog (RSS)
VIP events with team
…
Distribution Channel
•
•
•
•
•
•
stadium
POS networks
club website (+online TV)
club cable TV channel
mobile phone TV channel
…
Revenue Model
•
•
•
•
•
•
Ticket fees & season tickets
online TV subscription revenues
revenue sharing cable & mobile phone TV
renting out stadium for events
advertising revenues
merchandising revenues
Target Customer
•
•
•
•
•
•
fans (families, etc.)
fan groups
companies
event/concert organizers
advertisers
…

51. the profit
zone
Partner Network
•
•
•
•
•
•
•
Core Capability
• play attractive & win
games
• brand management
• video images
• channel management
Customer Relationship
•
•
•
•
•
food & beverages
ticketing services
promoters
ad placement
telecom operator
TV operator
…
Activity Configuration
Value Proposition
•
•
•
•
•
• attractive soccer
• 360º event (match,
dining, shopping)
• exclusive VIP lounges
• merchandising
• renting out stadium
•…
team management
event management
venue management
ticketing
VIP relationship
management
• video crew
•…
Cost Structure
•
•
•
•
team & maintenance
infrastructure management
marketing
video
personalized web profile
newsletter
team blog (RSS)
VIP events with team
…
Distribution Channel
•
•
•
•
•
•
stadium
POS networks
club website (+online TV)
club cable TV channel
mobile phone TV channel
…
Revenue Model
<
•
•
•
•
•
•
Ticket fees & season tickets
online TV subscription revenues
revenue sharing cable & mobile phone TV
renting out stadium for events
advertising revenues
merchandising revenues
Target Customer
•
•
•
•
•
•
fans (families, etc.)
fan groups
companies
event/concert organizers
advertisers
…

52. the process of
designing a
business model

53. the focus of the
business modeler

54. usercentered

55. Nokia: Jan
Chipchase

56. creativity & exploration

57. Googleple
x

58. interdisciplinary
approach

59. Grameen Phone
Bangladesh

60. holistic
design

61. Apple iTunes &
iPod

62. strategic fit

63. Amazon.co
m

64. the business
modeler’s toolbox

65. co-creation

66. ideation

67. visualization

68. prototyping

69. the design
process

70. 1. identify interdisciplinary
stakeholders
-> set-up team

71. 2. understand business
environment
–> frame problem

72. 3. suspend reality
-> ideate

73. 4. bring back
reality ->
prototype

74. 5. chose suitable
design
-> decide

75. 6. sketch out projects & workload
-> draw implementation plan

76. 7. outline key indicators to
follow
-> choose measures

77. 8. select the right teams and
people
-> make responsible

78. 9. execute the plan
-> manage implementation &
change

79. 10. evaluate, learn and
redesign
-> manage improvement

80. examples

81. to come…

82. is !
t h e!
or m
f
ck elco
ba w
ed pt
om
.c
fe t p
ca
ti
f
ve
ra
d
ar
x@
le
a

84. Alexander Osterwalder, PhD
alex@arvetica.com
www.arvetica.com

85. all photos from Flickr
under a creative commons license
authors indicated in comment page of ppt

86. we co-create
Nobody knows your business environment better than
yourself. We co-design your strategic vision by building
on your knowledge. Through group thinking we find the
right answers to the right questions together
we operationalize
Having a great vision is not sufficient - implementation
counts. We help you reconcile long term views with short
term actions. We make strategy everyone's job by
translating it into pragmatic and prioritized projects.
we manage change
Change does not happen accidentally it has to be
managed. We help you align strategy, people and
processes with respect to your organizational culture and
values.
we build knowledge
When you stop learning, you stop competing. We scan the
knowledge universe for you, across disciplines and
industries. We transfer the best methods, tools and
theory in business to your organization.
we connect
Specific problems require specific skills that you do not
necessarily dispose of in-house. Through our
interdisciplinary network we connect you with leading
domain experts.

87. annexes

88. annex I
business model
template

89. INFRASTRUCTURE
PARTNER
NETWORK
CORE
CAPABILITIES
OFFER
CUSTOMER
RELATIONSHIP
VALUE
PROPOSITION
VALUE
CONFIGURATION
COST
STRUCTURE
TARGET
CUSTOMER
DISTRIBUTION
CHANNEL
FINANCE
CUSTOMER
REVENUE
STREAMS
a business model describes the value an organization offers to
various customers and portrays the capabilities and partners
required for creating, marketing, and delivering this value and
relationship capital with the goal of generating profitable and
sustainable revenue streams

90. describing a company’s business model
INFRASTRUCTURE
CORE
CAPABILITIES
outlines the capabilities
required to run a
company's business
model
PARTNER
NETWORK
CUSTOMER
RELATIONSHIP
OFFER
portrays the network of
cooperative
agreements with other
companies
VALUE
CONFIGURATION
VALUE
PROPOSITION
gives an overall view of
a company's bundle of
products and services
COST
STRUCTURE
DISTRIBUTION
CHANNEL
TARGET
CUSTOMER
describes the
customers a company
wants to offer value to
describes the channels
to communicate and
get in touch with
customers
describes the
arrangement of
activities and resources
sums up the monetary
consequences to run a
business model
explains the
relationships a
company establishes
with its customers
CUSTOMER
FINANCE
REVENUE
STREAMS
describes the revenue
streams through which
money is earned

91. describing a company’s offer
OFFER
VALUE
PROPOSITION
value proposition 1
value proposition 2
…

92. describing who a company offers value to
OFFER
CUSTOMER
VALUE
PROPOSITION
TARGET
CUSTOMER
value proposition 1
value proposition 2
…
target customer 1
target customer 2
…

93. describing how a company reaches its customers
OFFER
CUSTOMER
VALUE
PROPOSITION
DISTRIBUTION
CHANNEL
TARGET
CUSTOMER
value proposition 1
value proposition 2
…
distribution channel 1
distribution channel 2
…
target customer 1
target customer 2
…

94. describing the relationships a company builds
OFFER
CUSTOMER
VALUE
PROPOSITION
CUSTOMER
RELATIONSHIP
TARGET
CUSTOMER
value proposition 1
value proposition 2
…
relationship type 1
relationship type 2
…
target customer 1
target customer 2
…

95. describing how a company makes money
OFFER
FINANCE
CUSTOMER
VALUE
PROPOSITION
REVENUE
STREAM
TARGET
CUSTOMER
value proposition 1
value proposition 2
…
revenue stream 1
revenue stream 2
…
target customer 1
target customer 2
…

96. describing what capabilities are required
INFRASTRUCTURE
OFFER
CORE
CAPABILITIES
VALUE
PROPOSITION
core capability 1
core capability 2
…
value proposition 1
value proposition 2
…

97. describing what activities are required
INFRASTRUCTURE
OFFER
CORE
CAPABILITIES
VALUE
CONFIGURATION
VALUE
PROPOSITION
core capability 1
core capability 2
…
activity 1
activity 2
…
value proposition 1
value proposition 2
…

98. describing the partners that leverage the business model
INFRASTRUCTURE
OFFER
CORE
CAPABILITIES
PARTNER
NETWORK
VALUE
PROPOSITION
core capability 1
core capability 2
…
partner 1
partner 2
…
value proposition 1
value proposition 2
…

99. describing the costs of a business model
INFRASTRUCTURE
FINANCE
OFFER
CORE
CAPABILITIES
COST
STRUCTURE
VALUE
PROPOSITION
core capability 1
core capability 2
…
cost account 1
cost account 2
…
value proposition 1
value proposition 2
…

100. annex ii
other