Why should anybody care for your business? How do you find the right thing customers love and with which you earn money? What are the jobs-to-be-done for your customers. The presentation was held at the StartupCamp Switzerland 2014. It is all about finding the right business model and how to develop a real, customer tested business from your idea. Cases are blacksocks, Über, Mytaxi, AirBnB, Krinner, Geberit and many others.

1. Doing
the
Right Thing
is the essence of
entrepreneurship
StartupCamp Switzerland 2014
Patrick Stähler, fluidminds

2. However, what is the
right
thing?

3. What are innovative
companies that
wowed you lately?

4. «To WOW
customers and
to earn
MONEY is key»

5. Outside the box thinking
We need new
boxes for fresh
ideas. We see
only what we
are able to see.
What are
the new
boxes?

6. What is this?

7. What is this?

8. Same thing,
different
perspective!

9. „Which innovation
expanded the global
market for mobile
communication the
most?*“
*After the invention of mobile telephony itself

10. Which innovation
made this possible?
Dr. Patrick Stähler |
10

11. A small c
ha
opened n nge in billing
ew mark
ets in
Africa, A
sia, Lati
n Americ
Youths, e
a,
tc..
Prepaid

12. Innovation is all about
being different

13. But if everybody is doing
he same, you have to find
something else

14. The best is if your customers
love your business due to your
fantastic value proposition and
and your ability to deliver
what you promise

15. Do you know this man?
Hans Rausing = Inventor
of the Tetra Pack Systems
Dr. Patrick Stähler | 15

16. He could have sold his
packaging machines,
but…

17. But he sold packaged
services
Tetra Pack is not a
product innovation but
an implementation of a
n
innovative value
proposition aka business
model

18. The business perspective: Technology or a new product does not
create value. It is the business model that creates value
X
product/technology
value
creates
enables
business model
defines
business strategy

19. The customer perspective: Technology does not create value. It
is the value proposition the customer loves
product/services
X
happy customers
solves
creates
customer problem
business model
addressed
by
delivered by
value proposition

20. „What is a
business
model? “

21. The business model is
the DNA of your
business
Are you
aware of
your
DNA?

22. The business model
gives meaning to your
employees and
customers

23. 4 key questions for a successful business:
What excites
our
customers?
How do we
create value
for our
customers?
How do we
earn money?
Value Proposition
Value Architecture
Revenue Model
Who is on our
team?
What values
do we
pursue?
Team & Values

24. „ What industry
are we in? Who
are our
competitors?
“

25. „ In which industry
are we in? “

26. „That was the job
the customer
wanted to do.
“
Dr. Patrick Stähler |
26

27. Customer job to be done
We do not need a drilling
machine, screws and dowels.
We want to hang up a picture.
Customers hire a product or
service to get a job done. The
products are a means to an
end, not an end in themselves.
The value proposition
creates the value for
the customer, not the
product!

28. Value Proposition
The job-to-get-done is
solution neutral. The job is to
hang up a picture.
Potential solution:
§ The drilling machine, the
dowel and screws
§ Hammer and nail
§ Powerstrips® by Tesa
§ A friend with a drilling
machine
It is of uttermost
importance to
understand the core
job we solve for our
customers

29. What excites our customer?
Value
Proposition
Customer
• Who is our
customer?
• What job do we
solve for them?
Value
• What value do we
create for our
customers? What
value do we create
for our partners?

30. Customer job to be done
Is it easy to put a
Christmas tree straight
up and keep it there
safely and green?

31. There was no big
market for Christmas
tree stands until Mr
Krinner saw the badly
solved job

32. „What is the job
customers want to
get done in their
vacation?“

33. Customer job to be done
We want the perfect
vacation. We want to relax
and restore our batteries.
We want to learn more
about a country and enjoy
life.
What job did the
travel agent solve
in the past? What is
today's job he gets
done for the
customer?

34. How do we create the value?
Value
architecture
Offer
• What is our offer?
Distribution &
Communication
Channels
• How do we reach
our customers?
• How do we
communicate with
our customers?
Core Capabilities
• What are the core
capabilities we
need?
Partner
• What partners do
we need?
Value Chain
• What activitites do
we have to do to
produce our offer?
• How does our
value chain look
like?

35. Architectural innovation
Customers have to transport
and assemble the furniture by
themselves, thereby saving
IKEA two expensive steps in
their value chain
Value Proposition
A new value proposition
beyond price and good design
is created: Instant satisfaction
without waiting for the later
delivery of the furniture

36. How do we earn money?
Revenue
Model
Cost Structure
• Cost structure is
defined by your
value architecture.
Revenue Sources
• With what do we
earn money?

37. Revenue Model Innovation
Power-by-the-hour: Jet
engine maintenance paid
by the hours in service
Value Proposition
Airlines get variable costs
that depend on their
business success.

38. Who is on our team? What values do we live?
Team &
Values
Team
• Who is in our
team?
• What
competencies do
we have in our
team?
Values
• What values do we
life in our team?
• How do we
interact with each
other and with
customers?

40. Questions for a Successful Business Model
Value Architecture
Offer
What is our offer?
Value Proposition
Distribution & Communication
Channels
How do we reach our customers?
How do we communicate with
our customers?
Value Chain
What are our value creating steps?
What is our value chain?
Core Capabilities
What are the core capabilities
we need?
Customers
Who are our customers?
What job do we solve for our
customers?
Customer Benefit
What benefit do we create for our
customers?
What benefit do we create for our
partners?
Partner
Which partners do we need?
Revenue Model
Cost Structure
Cost structure is defined by the
value architecture.
Revenue Sources
With what do we earn money?
Team & Values
Team
Who is on our team?
What competencies do we have
on the team?
Values
What values do we pursue?
How do we interact with each other
and the customers?

41. Questions for a Successful Business Model
Value Architecture
Offer
What is our offer?
Value Proposition
Distribution & Communication
Channels
How do we reach our customers?
How do we communicate with
our customers?
Value Chain
What are our value creating steps?
What is our value chain?
Core Capabilities
What are the core capabilities
we need?
Customers
Who are our customers?
What job do we solve for our
customers?
Customer Benefit
What benefit do we create for our
customers?
What benefit do we create for our
partners?
Partner
Which partners do we need?
Revenue Model
Cost Structure
Cost structure is defined by the
value architecture.
Revenue Sources
With what do we earn money?
Team & Values
Team
Who is on our team?
What competencies do we have
on the team?
Values
What values do we pursue?
How do we interact with each other
and the customers?

42. usiness Model
Questions for a Successful Business Model
In the end the
Value Architecture
value proposition
Offer
bution has to work.
&What is our offer?
Communication
els
o we reach our customers?
Value Chain
o we communicate with steps?
What are our value creating
What
stomers? is our value chain?
Core Capabilities
What are the core capabilities
we need?
Value Proposition
Distribution & Communication
Channels
How do we reach our customers?
How do we communicate with
our customers?
Value Proposition
Customers
Who are our customers?
What job do we solve for our
customers?
Customers
Who are our customers?
What job do we solve for our
Customer Benefit
customers?
What benefit do we create for our
customers?
What benefit do we create for our
partners?
Customer Benefit
What benefit do we create for our
Partner
Which partners do we need?
customers?
What benefit do we create for our
partners?
Revenue Model
er
Cost Structure
Cost structure is defined
partners do we need? by the
value architecture.
Revenue Sources
With what do we earn money?
Team & Values
Team
Who is on our team?
What competencies do we have
on the team?
Values
What values do we pursue?
How do we interact with each other
and the customers?

43. Geberit – a product innovator or is there more?
From plumber supply to under-the-wall systems for baths

44. Customer job to be done
Geberit understood that
the badly solved job in the
sanitary industry was, how
fast a bath room can be
renovated. With Geberit’s
products you can renovate
bathrooms faster and in
Geberit is the
better quality. And they
master in
understood that plumbers understanding how
to build and use
are their core sales
bathrooms.
channel.

45. Business Model: Why
homeowners love Geberit?
Value Architecture
Offer
Value Chain
Value Proposition
Distribution & Communication
Channels
• Plumbers are the sales channel
• Architects are used for direct
communication with homeowner
Customers
• Homeowners
Job-to-be done:
• Get my bathroom renovated very
well (design & quality) with as
little hassle as possible
Customer Benefit
Core Capabilities
• Faster and more convenient
renovation of baths
• Actually, it needs a lot of
initiative not to get Geberit
(Plumbers offer only Geberit)
Partner
• Deep understanding how baths are • Architects
renovated & used
• Plumbers
• Understanding how homeowners
decide to procure sanitary
equipment
Revenue Model
Cost Structure
• Installation systems are more expensive
than pure toilette tanks
Revenue Sources
• Willingness of homeowners to pay more is
higher due to the benefits speed & design
Team & Values
Team
• Plumbers, Engineers, Marketeers
• Diverse team
Values
• high quality
• long lasting products
• looking for better solution. Always!

46. Business Model:
Why plumbers love Geberit?
Value Architecture
Offer
Value Proposition
Distribution & Communication
• Planning tools (CAD, product
Channels
• Plumbers are reached with direct
handbook)
sales, classical marketing
• integrated logistics
• trainings, material, certificates
• via training
Value Chain
Customers
• Plumbers
Job-to-be done:
• Have little hassle as possible with a
customer job and still earn a high
margin
Customer Benefit
Core Capabilities
• Easy to plan, order, prefabricate and
install all components
• All components from one supplier
• Satisfied homeowners that pay a
higher price
• New products for upselling
Partner
• Deep understanding how plumbers • trade schools
work and think about their business
(Handwerkerkammern)
• Training know-how
• Partner & eco system mgm’t
Revenue Model
Cost Structure
• All these tools for plumbers cost money
Revenue Sources
• Geberit earns money via end customers
• Some income for trainings
Team & Values
Team
• Plumbers, Engineers, Marketeers
• Diverse team
Values
• long-term thinking, willingness to invest long-term in
relationship with plumbers
• innovative solutions

47. Let’s be a traveler. You arrive at
Cairo Airport. What are your
first thoughts? “Is the taxi driver
trustworthy? Does he know the
way? Will he take the direct and
safest way?”

48. “Ok, I found a taxi I like, but I
just have no local currency.
Does he take credit card? Does
he give me a proper receipt for
my company expenses?”

49. Many badly solved jobs in
taking a taxi in a not wellknown city.
Is there not a better solution
than taxi queues or a taxi call
with a different number in
every city?

50. Customer job to be done
Get safely, without any
hassles, with an
acceptable level of quality
and for a reasonable price
from A to B in a city

51. „What could be a solution for all
these badly solved jobs of a
customer?“

52. Just an app or a business
model innovation?
Über or m
yt
solve the axi
job to fin
d
a trustw
orthy ta
xi

53. What’s in for the customer?
With a simple app he can
solve his job of simple
traveling with a taxi

54. Easy receipt management
On a business travel you have
one receipt for all your taxi
expenses during a trip.

55. Easy Expense Mgmt for firms
mytaxi makes life of big business
customers like consultancies easier
by central invoices and central
analysis of travel expenses (if
integrated into AirPlus account)

56. Integrated payment
processes
Easy pap
erl
process w ess payment
ith online
receipt f
or
handling expense
. Easy tip
pin
Wow, gre
at for dr g.
ivers!

57. There is a big fight in
the moment between
mytaxi and drivers due
to new auctioning pricing
model

58. Business Model:
Why do customers like mytaxi?
Value Architecture
Offer
• taxi app to connect
passengers with drivers
Value Chain
Ordering
taxi
Core Capabilities
Value Proposition
Distribution & Communication
Channels
Customers
• local mytaxi offices for drivers
• word-of-mouth/ Online
Marketing
Matching
passenger
& taxi
Payment
passenger
& taxi
Receipt
mgmt
(business)
Customer Benefit
Partner
• optimal organization for matching
drivers and passengers incl. payment
process.
• Passengers
• Passengers
Driver
• • Businesses with
Job-to-be-done
Job-to-be-done travels
many business
Getting rides and
• • Finding quick a good
• Drivers
passengers
taxis without hassle
• Mgmt of receipts
• Hotels, Restaurants
with many guest who
order taxis
• Bringing ordering a taxi into
Direct booking without
• • Direct booking with push of
the digital age
dispatch center
one button
• Passenger: Easy to get a taxi of
No entry fee,
contract
• • Known quality no taxi driver
good quality of
obligation
Easy payment
• • Driver: Easy to get passengers
• Easy receipt management
Simple payment process
• • Simple & integrated processes
Revenue Model
Cost Structure
• asset light. No ownership of taxis
or other transportation means
Revenue Sources
• Takes a cut of 2.75% from direct
payments via mytaxi, base fee 0.79 €
• no entry fee, no contract obligation
Team & Values
Team
• Entrepreneurs, User interface designer,
marketeers, actually at beginning
nobody with knowhow of the taxi
industry
Values
• Entrepreneurial drive
• Don’t ask for permission ask for
forgiveness

59. Business Model:
Value Architecture
Offer
• taxi app to connect
passengers with drivers
Value Chain
Ordering
taxi
Core Capabilities
Value Proposition
Distribution & Communication
Channels
Customers
• Passengers
• Businesses with
many business travels
• Drivers
• local mytaxi offices for drivers
• word-of-mouth/ Online
Marketing
Matching
passenger
& taxi
Payment
passenger
& taxi
Receipt
mgmt
(business)
Customer Benefit
Partner
• optimal organization for matching
drivers and passengers incl. payment
process.
• Hotels, Restaurants
with many guest who
order taxis
• Bringing ordering a taxi into
the digital age
• Passenger: Easy to get a taxi of
good quality
• Driver: Easy to get passengers
• Simple & integrated processes
Revenue Model
Cost Structure
• asset light. No ownership of taxis
or other transportation means
Revenue Sources
• Takes a cut of 2.75% from direct
payments via mytaxi, base fee 0.79 €
• no entry fee, no contract obligation
Team & Values
Team
• User interface designer, marketeers,
actually at beginning nobody with
knowhow of the taxi industry
Values
• Bringing «ordering and
Entrepreneurial drive
• paying taxis» to ask fordigital
Don’t ask for permission the
forgiveness
age

60. mytaxi is not the revolution of the taxi business. However the
new model addresses many deficiencies of the old experience
Job-to-be-done
• Get safely, without any hassles, with an acceptable level of quality and for a reasonable price
from A to B
"Old" experience
"New" experience
• Queue in line, hail a taxi on street or
find a number to call a taxi
• Request taxi via app
• Taxi ride starts with unknown driver,
quality experience may vary
• Customer knows which taxi & driver will
arrive at what time
• Cash payment required (and maybe
driver tries to rip client off…)
• Automated, cashless payment
• Client has to ask for receipt
• Online receipt for expense handling
• Client has to hand in receipt to
employer to get expenses back
• Easier expense report handling
• Complain with driver (or company) if
service was not satisfying
• Easily rate/review experience via app

61. Customer job to be done
I want a very special place
to stay, at a good price,
and want get local insights
where to go out, to eat
and to shop.
Of course, I want to know
if I can trust the person I
stay with.

62. AirBnB opened a whole new
segment of offers to the
individualistic traveler of
today

63. Would yo
ud
this? Wha are to say
t would b
e
answer o
f your bo the
ss?
“Well, I know we are in a
commodity market where
the price is key, but I
believe we can sell the
good for 10x as much as
before.”

64. mytaxi is not the revolution of the taxi business. However the
new model addresses many deficiencies of the old experience
Job-to-be-done
• Get safely, without any hassles, with an acceptable level of quality and for a reasonable price
from A to B
"Old" experience
"New" experience
• Queue in line, hail a taxi on street or
find a number to call a taxi
• Request taxi via app
• Taxi ride starts with unknown driver,
quality experience may vary
• Customer knows which taxi & driver will
arrive at what time
• Cash payment required (and maybe
driver tries to rip client off…)
• Automated, cashless payment
• Client has to ask for receipt
• Online receipt for expense handling
• Client has to hand in receipt to
employer to get expenses back
• Easier expense report handling
• Complain with driver (or company) if
service was not satisfying
• Easily rate/review experience via app

65. Customer job to be done
I want a very special place
to stay, at a good price,
and want get local insights
where to go out, to eat
and to shop.
Of course, I want to know
if I can trust the person I
stay with.

66. AirBnB opened a whole new
segment of offers to the
individualistic traveler of
today

67. Even more individual choice
for the traveler who looks
for the special place to stay
AND connect to the people
of the place he visits:
AirBnB

68. Easy to book, transparent
pricing: AirBnB

69. Building trust by very
personal reviews (peer-topeer social control
mechanism plus insurance
coverage)

70. Business Model:
Why do customers like airbnB?
Value Architecture
Value Proposition
Value Proposition
Distribution & Communication
Channels
Channels
Offer
• Website, App to connect
B&Bs with customers
Value Chain
Build up
BnB
offer
Help find
right
spot
• word-of-mouth
• sales crew for BnB
owners
Match
needs &
offer
Core Capabilities
Core Capabilities
• Acquisition of BnB places
• Quality & Trust Mgmt
• Know-how of locations
Payment
& GTC
Reputation
& Trust
Mgmt
Partner
Partner
• n./a.
Customers
• Customer (Travelers)
Households that offer
• • Customer (C) looking BnB
Job-to-be-done
Job-to-be-done to
for special place
• Finding a special place to
Earning money
• stay
Have
• • stay the world at home
Private households
• (PH) who to know the
Getting offer BnB
hidden gems of destination
Customer Benefit
Customer Benefit
• PH: Income and international
• Offer very rent
Refinancing
• contacts for special places that
BnB owners
• cannot booked by platform
Trust provided anywhere else
• C: places to stay that are
• Connect with locals that share
Risk of damage
• outside the norm is insured
• their insights
Connecting with people from
• Contacts with locals
abroad
Revenue Model
Cost Structure
Cost Structure
• running site & acquisition costs of
BnBs (PH)
• asset light
Revenue Sources
Revenue Sources
• Customers pay BnB owner
• Takes services fees from the rent the
households get (app. 15%)
Team & Values
Team & Values
Team
Values
• n/a
Travel like a human

71. Business Model:
Why do customers like airbnB?
Value Architecture
Value Proposition
Distribution & Communication
Channels
Offer
• Website, App to connect
B&Bs with customers
Value Chain
Build up
BnB
offer
Help find
right
spot
• word-of-mouth
• sales crew for BnB
owners
Match
needs &
offer
Core Capabilities
• Acquisition of BnB places
• Quality & Trust Mgmt
• Know-how of locations
Payment
& GTC
Reputation
& Trust
Mgmt
Partner
• n./a.
Customers
• Customer (C) looking
for special place to
stay
• Private households
(PH) who offer BnB
Customer Benefit
• C: places to stay that are
outside the norm
• Contacts with locals
• PH: Income and international
contacts for BnB owners
Revenue Model
Cost Structure
• running site & acquisition costs of
BnBs (PH)
• asset light
Revenue Sources
• Customers pay BnB owner
• Takes services fees from the rent the
households get (app. 15%)
Team & Values
Team
Values
• n/a
Travel like a human

72. Finding a place to stay in a city and
connect to locals
Client problem
• I want a very special place to stay, at a good price, and want to connect with locals to get
their insights where to go out, to eat and to shop.
• Of course, I want to know if I can trust the person I stay with.
"Old" experience
"New" experience
• Having friends in a city where you can
stay
• (Not) Finding via web offers directly
from BnB owners
• Asking tourist information at your
destination
• Read Lonely Planet or visit Tripadvisor
• Go to Interhome to find flat and holiday
homes
• Stay in overpriced, commodity city
hotels
AirBnB offers everything on one site
• Finding the right neighborhood in a
city
• Find & book the right place (room,
local person)
• Payment Settlement
• Trust & Reference Building

73. Customer job to be done
I want to fly conveniently
from A to B for a good
price.

74. Southwest: the innovator of the no-frill
business model for airlines
Client problem
• I want to fly conveniently from A to B for a good price.
"Old" experience
"New" experience
• Flights go often via big hubs where
transfer is a hassle
• You pay for services you might not
need (like baggage, food, lounges,
credit card payments, etc.)
• Intransparent pricing, different prices
per sales channel
• Direct flights. No hassle for catching
connecting flights
• Pay for what you want and value
(Check-in bags, reserved seats, SMS
Flight Details)
• Direct sales via Internet, no travel
agencies
Customers just pay for
what they really want!

75. Would yo
ud
this? Wha are to say
t would b
e
answer o
f your bo the
ss?
“Well, I know we are in a
commodity market where
the price is key, but I
believe we can sell the
good for 10x as much as
before.”

77. The magic
formula for
great firms
Customer
utility
+
customer
value
price
+
company
profit
costs

78. A deliberate change of a business model is a great strategy
Starting points of business
model innovation
§
Business Model:
Value Architecture
Offer
Value Proposition
Distribution & Communication
Channels
Customers
All components of a business
model are starting points for
innovation
§
Value Innovation
§
Architectural Innovation
§
Revenue Model Innovation
§
Value Chain
Cultural Innovation
Customer Benefit
Core Capabilities
Partner
Revenue Model
Cost Structure
Revenue Sources
Team & Values
Team
Values
§
At the end, all business model
innovation must create more
value to the customers

79. StartupCamp Switzerland 2014
Dr. Patrick Stähler, fluidminds
Entrepreneurial
design – how
to bring it
alive?

80. Tools for Entrepreneurial Design
Business Model Canvas
Business Model:
Value Architecture
Offer
Design Thinking Process
1
Use the canvas to
develop your business
Distribution & Communication
model
Channels
2
Customer Insight
Value Proposition
-
Customers
-
-
Value Chain
-
3
Ideate
Understand
Observe your customers
What job is not yet or
badly solved?
How does the Customer
Experience Cycle look
like?
On what customer insights
is your idea based?
validate customer insight
-
-
-
Develop as many ideas as
possible in the area of
- customers/ value
proposition
- value architecture
- revenue model
understand the current
solutions and their
strength & weakness
understand how the
potential customer
thinks and decides
understand the market &
market mechanism
Customer Benefit
Core Capabilities
Partner
4
5
Design
-
-
Revenue Model
Cost Structure
Revenue Sources
-
-
-
Team & Values
Team
decide for three or four
options
design the business
models for the options
check the
interdependencies in the
business models
work on the uniqueness
(positioning)
optimize the building
blocks
6
Decide & Prototype
-
-
-
-
-
decide for the best
model to go for
build prototype
test prototype with
customers
write business case
decide again or work on
different option
Build & Learn
-
-
-
execute business model
learn continuously from
customer feedback and
control KPIs
adjust and refine
continuously the
business model
Values
Multidisciplinary Teams
The right culture & values

81. 1
2
Customer Insight
-
-
-
-
Understand
Ideate
-
Observe your customers
What job is not yet or
badly solved?
How does the Customer
Experience Cycle look
like?
On what customer insights
is your idea based?
validate customer insight
4
3
Develop as many ideas as
possible in the area of
- customers/ value
proposition
- value architecture
- revenue model
-
-
understand the current
solutions and their
strength & weakness
understand how the
potential customer
thinks and decides
understand the market &
market mechanism
5
Design
-
-
-
-
-
decide for three or four
options
design the business
models for the options
check the
interdependencies in the
business models
work on the uniqueness
(positioning)
optimize the building
blocks
6
Decide & Prototype
Build & Learn
-
-
-
-
-
-
-
decide for the best
model to go for
build prototype
test prototype with
customers
write business case
decide again or work on
different option
-
execute business model
learn continuously from
customer feedback and
control KPIs
adjust and refine
continuously the
business model

82. Designing is a process of opening your mind
and focusing at the end
Point of View
1
2
Customer
Insight
4
3
Understand
Ideate
5
Design
6
Decide &
Prototype
Build & Learn

83. Creating Business model design is a creative and
analytical process at the same time. There is a reason
why god gave us two brain hemispheres

84. Innovation Culture & Diversity

85. Where do we get a
Value Innovation
from? Let‘s find new
customer insights as a
starting point
Business
model
innovation
New value
proposition
Customers’
insight

86. 1
Customer Insight
- Observe your customers
What job is not yet or
badly solved?
- How does the Customer
Experience Cycle look
like?
- On what customer insights
is your idea based?
- validate customer insight

87. Value Proposition
Customers
Who are our customers?
What job do we solve for our
customers?
The best way is to
start with the job
we solve for our
customers?

88. How can we find systematically new customer insights?
Customer Experience Map
Buy
Delivery/
Assembly
Usage
§
Understand how the customers are buying,
using and disposing the product
§
Understand the whole lifecycle of customers‘
utility
Complements
Service
Disposal
§ How can we improve the buyer‘s utility cycle?
§ Can we do more for the customer?
§ Can we leave something to the customer?
Source: cp. Kim, W.C., Mauborgne, R., Knowing a Winning Business Idea when
you see one, HBR Sep-Oct. 2000

89. Unsolved job-to-be-done
What is the biggest
problem with socks?

90. Blacksocks – we save the world from socks problems
Starting
Points
Customer
Productivity
Simplicity
Usability
Risk
Image
fun
Enviromental
friendlyness
Buy
Delivery
Use
Washing
Putting
in pairs
Disposal

91. Blacksocks – We solve the world from its
socks problems
Socks subscription
(2001-2008)
40'000
40'000
20% market share
in Switzerland*
30'000
25'000
20'000
10'000
10'000
2002
Customer Insights
§ Buying socks is no fun
§ Putting socks in pairs even less fun
§ Good socks are a sign of „Being well
dressed“
Value Proposition
§ Blacksocks subscription solves all
problems
§ Always enough new socks
§ No pairing needed since all socks are
identical
Revenue Model
§ Upfront payment
§ Easy planning and negative working
capital
12'000
0
2001
=
Blacksocks l
ode
revenue m
innovation
2005
2008
* premium segment starting at 9CHF

92. 2
Understand
- understand the current
solutions and their
strength weakness
- understand how the
potential customer thinks
and decides
- understand the market
market mechanism

93. 3
Ideate
Develop as many ideas as
possible in the area of
- customers/ value
proposition
- value architecture
- revenue model

94. Business Model:
Value Architecture
Offer
Use the canvas to
fine tune your
business model
Distribution Communication
around a better
Channels
value proposition
Value Proposition
Customers
Value Chain
Customer Benefit
Core Capabilities
Partner
Revenue Model
Cost Structure
Revenue Sources
Team Values
Team
Values

95. 4
Design
- decide for three or four
options
- design the business
models for the options
- check the
interdependencies in the
business models
- work on the uniqueness
(positioning)
- optimize the building
blocks
Business Model:
Value Architecture
Offer
Use the canvas to
develop your business
Distribution Communication
model
Channels
Value Proposition
Customers
Value Chain
Customer Benefit
Core Capabilities
Partner
Revenue Model
Cost Structure
Revenue Sources
Team Values
Team
Values

96. 5
Decide Prototype
- decide for the best model
to go for
- build prototype
- test prototype with
customers
- write business case
- decide again or work on
different option

97. 6
Build Learn
- execute business model
- learn continuously from
customer feedback and
control KPIs
- adjust and refine
continuously the business
model

98. 1
2
Customer Insight
-
-
-
-
Understand
Ideate
-
Observe your customers
What job is not yet or
badly solved?
How does the Customer
Experience Cycle look
like?
On what customer insights
is your idea based?
validate customer insight
4
3
Develop as many ideas as
possible in the area of
- customers/ value
proposition
- value architecture
- revenue model
-
-
understand the current
solutions and their
strength weakness
understand how the
potential customer
thinks and decides
understand the market
market mechanism
5
Design
-
-
-
-
-
decide for three or four
options
design the business
models for the options
check the
interdependencies in the
business models
work on the uniqueness
(positioning)
optimize the building
blocks
6
Decide Prototype
Build Learn
-
-
-
-
-
-
-
decide for the best
model to go for
build prototype
test prototype with
customers
write business case
decide again or work on
different option
-
execute business model
learn continuously from
customer feedback and
control KPIs
adjust and refine
continuously the
business model

99. More Information on
http://blog.business-model-innovation.com
Dr. oec. Patrick Stähler
fluidminds GmbH
Bahnhofstrasse 35
CH-8001 Zürich
Patrick.Staehler@fluidminds.ch
www.fluidminds.ch
blog.business-model-innovation.com