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FOR THE CEO… (corporate or start-up)

3 KEY MESSAGES
FOR THE CEO

CEO FORUM Taipei, December 11th 2013
Patrick van der Pijl
TODAY…
I HAVE THREE KEY
MESSAGES FOR YOU
WHY

WE NEED TO
CHANGE
HOW

WE CAN DO
THAT
D.I.D.
LET’S START…
WHY

WE NEED TO
CHANGE
DESIGNING BETTER BUSINESSES
DESIGNING BETTER BUSINESSES
WE NEED TO
RETHINK THE WAY
WE DO BUSINESS!
DESIGNING BETTER BUSINESSES
WHY?
TODAY…
…WE SEE FORCES
WE HAVEN’T SEEN
BEFORE…
…WE CALL THEM
NEW RULES
OF THE BUSINESS
GAME.
SUSTAINABILITY
CREDIT CRISIS
UPCOMING MARKETS?
MARKETS CAME ALREADY UP
NEW GENERATION

generation	
  y	
  
BETTER PICTURE?
GENERATION Z
ONLINE REVOLUTION
NEW TECHOLOGY
SOME EXAMPLES OF
BUSINESS MODELS
WE SEE RIGHT
NOW…
RE-IMAGINATION
NEWS AND
INFORMATION
FLOW…
From reporters...
…to twitter
RE-IMAGINATION OF
BOOKS
From books...!
…to kindle
RE-IMAGINATION OF
CALLING A CAB
From waiting in the rain...
…to a single push of a button
RE-IMAGINATION OF
VIDEO
From video store...
…to youtube
RE-IMAGINATION OF
NAVIGATION
From map...
…to navigon
The speed of developments has
increased…!
resulting in shorter shelf lives of
companies…!
and focusing on product
innovation is not enough… !
HOW

WE CAN DO
THAT
WHAT WE
LEARNED…
IS ABOUT
NEW TOOLS
NEW SKILLS
NEW MINDSET
FOR THE CEO… (corporate or start-up)
AND HIS TEAM!
SO WHAT ARE NEW
TOOLS?
WHAT IS A
BUSINESS MODEL?
IMAGINE
(BOARDROOM)
CONVERSATIONS…
WE NEED NEW
TOOLS TO
UNDERSTAND AND
CRAFT NEW
BUSINESS MODELS
THE BUSINESS MODEL

CANVAS
A BUSINESS MODEL
DESCRIBES THE RATIONALE
OF HOW AN ORGANIZATION
CREATES, DELIVERS, AND
CAPTURES VALUE
1 CUSTOMER SEGMENTS
2 VALUE PROPOSITIONS
3 CHANNELS
4 CUSTOMER RELATIONSHIPS
5

REVENUE STREAMS
6 KEY RESOURCES
7

KEY ACTIVITIES
8 KEY PARTNERS
9

COST STRUCTURE
KEY ACTIVITIES

VALUE PROPOSITIONS

CUSTOMER
SEGMENTS

KEY PARTNERS

COST STRUCTURE

CUSTOMER
RELATIONSHIPS

KEY RESOURCES

CHANNELS

REVENUE STREAMS
Let us look at the business model
of Nespresso
The Business Model of Nespresso
PARTNER
NETWORK

KEY
ACTIVITIES
B2C
Distribution

Machine
Manufacturer

Marketing

OFFER

CUSTOMER
RELATIONSHIPS

CUSTOMER
SEGMENTS

Nespresso
Club

Households

DISTRIBUTION
CHANNELS

Business

Nespresso
Machines

Production

KEY
RESOURCES
Patents

Brand

Distribution
Channels
Coffee

Production
Facilities

COST STRUCTURE
Production

Marketing
B2C
Distribution

Nespresso
Pads

Mail
Order

Retail

Nespresso
.com
Call
Center

Nespresso
Stores

REVENUE STREAMS
1 x Machine
Sales

Repetitive
Pad Sales
BUSINESS MODEL CANVAS NESPRESSO
WE HAVE DIFFERENT
TOOLS IN DIFFERENT
STAGES
WE SHARE THESE
TOOLS ONLINE…
D.I.D.
D.I.D.
DO
IT
DIFFERENT
NEW SKILLS
WE BASICALLY NEED
DESIGNERS TO HAVE
A SEAT AT THE
TABLE
OR WE SHOULD
THINK AND ACT LIKE
DESIGNERS.
OBSERVE
WHEREVER YOU LOOK
THAT’S WHAT YOU
SEE.
JERRY SEINFELD
OUR EYES

OUR EARS

CAMERA

NOTEBOOK AND PEN
THINK
VISUALLY
DRAWING IS THE
NEW WRITING
EYES, PENCILS AND THE HAND
MAY BE TOOLS OF THE PAST,
…I BELIEVE THEY ARE TOOLS
OF THE FUTURE.
John Maeda, RISD
BUT THAT’S NOT
ENOUGH…
THE CONTEXT MAP OF A COMPANY

Insert 4 photos of the team discussion
Future scenario
Business model
SPOTIFY BUSINESS MODEL
IDEATE
YOU NEED TO BE
ABLE TO JUGGLE
WITH BUSINESS
MODELS
CURRENT BUSINESS MODEL	
  
KEY
PARTNERS
	
  
	
  
	
  

KEY
ACTIVITIES
	
  
	
  

KEY
RESOURCES
	
  

COST STRUCTURE

VALUE
PROPOSITION
	
  
	
  

CUSTOMER
RELATIONSHIPS
	
  

CUSTOMER
SEGMENTS
	
  
	
  

CHANNELS
	
  

REVENUE STREAMS
	
  
	
  
CURRENT BUSINESS MODEL	
  
KEY
PARTNERS
	
  
	
  
	
  

KEY
ACTIVITIES
	
  
	
  

KEY
RESOURCES

COST STRUCTURE

VALUE
PROPOSITION
	
  
	
  

CUSTOMER
RELATIONSHIPS
	
  

CUSTOMER
SEGMENTS
	
  
	
  

CHANNELS
	
  

REVENUE STREAMS
	
  
	
  
CURRENT BUSINESS MODEL	
  
KEY
PARTNERS
	
  
	
  
	
  

KEY
ACTIVITIES
	
  
	
  

KEY
RESOURCES
	
  

COST STRUCTURE

VALUE
PROPOSITION
	
  
	
  

CUSTOMER
RELATIONSHIPS
	
  

CUSTOMER
SEGMENTS
	
  
	
  

CHANNELS
	
  

REVENUE STREAMS
	
  
	
  
CURRENT BUSINESS MODEL	
  
KEY
PARTNERS

KEY
ACTIVITIES
	
  
	
  

KEY
RESOURCES
	
  

COST STRUCTURE

VALUE
PROPOSITION
	
  
	
  

CUSTOMER
RELATIONSHIPS
	
  

CUSTOMER
SEGMENTS
	
  
	
  

CHANNELS
	
  

REVENUE STREAMS
	
  
	
  
PROTOTYPING
the past was about
choosing solutions
the future is about
generating options
Frank Gehry
8 PROTOTYPES
GO OUT OF
THE BUILDING
& LEARN!
BECAUSE AN IDEA…
OR BUSINESS
MODEL…
IS ONLY ON PAPER AND IS…
DESIGNING BETTER BUSINESSES
IT HAS
NO VALUE
ZERO
YOU NEED TO TEST
YOUR ASSUMPTIONS
STEVE BLANK
KNOCK ON THE CUSTOMERS DOOR…
AND TALK TO THEM!
BEWARE!
DON’T DO IT THE
EASY WAY…
DON’T HIRE AN
AGENCY…
OR
SET UP A TEST
PANEL
BUT DO IT
YOURSELF!
THE MORE YOU
LEARN, THE SOONER
YOU SUCCEED
WHY?
YOU’LL INVENT
SOMETHING PEOPLE
DON’T NEED…
EXAMPLE OF
SEGWAY
NEED I SAY MORE?
WHO HAD ONE?
SO YOU NEED TO
ASK YOURSELF THE
FOLLOWING
IS THE PROBLEM A
REAL PROBLEM?
CAN WE IDENTIFY
THE NEED?
DO WE IDENTIFY A
TARGET CUSTOMER
SEGMENT?
AND ARE THEY
WILLING TO PAY FOR
THIS…?
YOU HAVE TO DO
THIS TOGETHER…
AND GO OUT TO
TALK TO
CUSTOMERS…
AND LEARN…
QUALITY AND MARGIN WAS NOT THE JOB…
NOT PARENTS AND CHILDREN BUT…
ONLY THEN YOU CAN SUCCEED…
AS A START-UP…
OR A CORPORATE START UP…
SO WHAT IS NEXT?
SO WHAT DOES
THAT MEAN FOR THE
CEO?
DON’T WRITE PLANS….
HE NEEDS TO THINK
AND ACT LIKE A
DESIGNER TOO.
HE NEEDS TO GO
BACK TO SCHOOL!
BUT NOT TO
HARVARD OR
STANFORD…
BUT TO THE
COLLEGE OF THE
ARTS…
WHERE THEY
PREPARE THE NEW
GENERATION OF
LEADERS FOR A
WORLD…
THAT IS NOT ONLY
PROFITABLE…
BUT ALSO
SUSTAINABLE,
ETHICAL AND TRULY
MEANINGFUL.
A SUPERMAN
MY THREE KEY
MESSAGES FOR YOU
WE NEED TO
CHANGE
HOW

YOU CAN DO
THAT
D.I.D.
patrick@businessmodelsinc.com

DESIGNING BETTER BUSINESSES

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