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DESIGNING BUSINESS
MODELS
6 techniques to better, more innovative designs
DESIGNING BUSINESS
MODELS
6 techniques to better, more innovative designs
based on the book Business Model Generation
by Alex Osterwalder and Yves Pigneur.
CUSTOMER INSIGHTS
getting into the mind of the customer
EMPATHY MAP

Talking to customers is not always
useful. So we create an empathy
map by walking in the shoes of a
target customer. It helps understand
the customer’s pain points and how
one can try to eliminate them.
IDEATION
brainstorming for new ideas


      WHAT IF…
      inspiring crazy new ideas       

One needs to ask “What if…”
questions, no matter how crazy
they sound. Some of the best
                                      
business models have been formed
in response to some of the craziest
questions.

PS: Can you identify the companies
                                      
that dared to ask the questions on
the right?
WHERE
            do business ideas
                   originate?
This is a typical business model
canvas. If you haven’t seen one
before, it is recommended that you
look it up before proceeding.
WHERE
           do business ideas
                  originate?
Your key partnerships, activities
and resources form your overall
resources.
WHERE
          do business ideas
                 originate?
Your value proposition is your
offer.
WHERE
           do business ideas
                  originate?
Customer     relationships  and
segments, and channels form the
customer side of the business
model.
WHERE
            do business ideas
                   originate?
The cost structure and revenue
stream form the finance part of the
business model.
WHERE
            do business ideas
                   originate?
A business idea can start at any of
these four epicenters. For example,
Google started as a search engine
and then leveraged its web servers
(resources) to offer other services
like Gmail. Dell was trying to
improve the cost structure
(finance) when it introduced its
business model.
HOW
to generate and select the best ideas
HOW
to generate and select the best ideas
you first generate as many business ideas as you can, focusing on
quantity rather than quality. Then you stop generating ideas, and
discuss the ones you have, eliminating or combining ideas as you
proceed. You should be left with a few implementable ideas at the end.
VISUAL THINKING
using visual tools to construct meaning
VISUAL THINKING
This is NOT visual…
This is…
And so is this…
1. Understand the essence

4 BENEFITS            2. Enhance dialogue
 of visual thinking
                      3. Explore ideas

                      4. Improve communication
PROTOTYPING
explore all avenues for business models
PROTOTYPING
             at different scales

A prototype of a business model
can be created at various scales. A
napkin sketch is the most basic
version, with usually only the value
proposition and revenue streams
mentioned. You can draw one on a
napkin while having coffee!
PROTOTYPING
             at different scales

An elaborated canvas contains a full
business model canvas with an
estimation of the market potential
and some fact checking.
PROTOTYPING
            at different scales

A business case will build on the
elaborated canvas with key data,
costs and revenues and profit
potential.
PROTOTYPING
             at different scales

This involves an investigation on
customer acceptance and feasibility
of the plan with an actual field test.
PROTOTYPING
  at different scales
STORYTELLING
because everyone has one to tell
 Introducing new ideas
BENEFITS
 of storytelling    Pitching to investors

                    Engaging employees
TELLING A STORY



Company            Customer
perspective        perspective
TELLING A STORY
 You can tell a story either from the company side or from the customer side.
 In the former, you speak about the company’s resources and how they can
 be used to benefit the customers and make a profit. In the latter, you speak
 about the customer’s pain points and how you can eliminate them.




Company                                                Customer
perspective                                            perspective
TELLING A
    STORY
various techniques




                     This little piggy went to the
                     market….This little piggy
                     stayed at home. This little
                     piggy got stoned.
SCENARIOS
discuss all possibilities
SCENARIOS
SCENARIOS

            Imagine specific scenarios
            about the kind of customers
            using your product/service,
            how they are using them,
            their concerns and desires.
CUSTOMER SETTINGS
SCENARIOS

Imagine future possibilities
about how the market might
change, new competition that
might enter, how customer
roles might evolve, etc.
FUTURE ENVIRONMENTS
IMAGE CREDITS
Slide 17: Drawings: http://multiplayerblog.mtv.com/wp-content/uploads/2009/02/sc0019b49d.jpg
Slide 18: http://blogs-images.forbes.com/tedgreenwald/files/2012/01/business_model_canvas_poster-02.jpg
Slide 19: http://businessmodelsinc.files.wordpress.com/2009/10/nespresso_businnes_model.png
Slide 20: http://secouu.files.wordpress.com/2010/10/businessmodelcanvasnew.jpg
Slides 23-27: Pokemon: http://pokemondb.net/pokedex/
GET IN TOUCH!
Email: vezance@gmail.com
Twitter: @vezance

Recommended reading: Business Model Generation by
Alex Osterwalder and Yves Pigneur
http://www.businessmodelgeneration.com
Disclaimer: I am not affiliated with the authors or publishers of this book. I have
created this presentation after having purchased and read the book. The book
contains a lot more information on business models, patterns and strategizing.

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Designing Business Models: 6 Techniques

  • 1. DESIGNING BUSINESS MODELS 6 techniques to better, more innovative designs
  • 2. DESIGNING BUSINESS MODELS 6 techniques to better, more innovative designs based on the book Business Model Generation by Alex Osterwalder and Yves Pigneur.
  • 3. CUSTOMER INSIGHTS getting into the mind of the customer
  • 4.
  • 5. EMPATHY MAP Talking to customers is not always useful. So we create an empathy map by walking in the shoes of a target customer. It helps understand the customer’s pain points and how one can try to eliminate them.
  • 7. WHAT IF… inspiring crazy new ideas  One needs to ask “What if…” questions, no matter how crazy they sound. Some of the best  business models have been formed in response to some of the craziest questions. PS: Can you identify the companies  that dared to ask the questions on the right?
  • 8. WHERE do business ideas originate? This is a typical business model canvas. If you haven’t seen one before, it is recommended that you look it up before proceeding.
  • 9. WHERE do business ideas originate? Your key partnerships, activities and resources form your overall resources.
  • 10. WHERE do business ideas originate? Your value proposition is your offer.
  • 11. WHERE do business ideas originate? Customer relationships and segments, and channels form the customer side of the business model.
  • 12. WHERE do business ideas originate? The cost structure and revenue stream form the finance part of the business model.
  • 13. WHERE do business ideas originate? A business idea can start at any of these four epicenters. For example, Google started as a search engine and then leveraged its web servers (resources) to offer other services like Gmail. Dell was trying to improve the cost structure (finance) when it introduced its business model.
  • 14. HOW to generate and select the best ideas
  • 15. HOW to generate and select the best ideas you first generate as many business ideas as you can, focusing on quantity rather than quality. Then you stop generating ideas, and discuss the ones you have, eliminating or combining ideas as you proceed. You should be left with a few implementable ideas at the end.
  • 16. VISUAL THINKING using visual tools to construct meaning
  • 18. This is NOT visual…
  • 20. And so is this…
  • 21. 1. Understand the essence 4 BENEFITS 2. Enhance dialogue of visual thinking 3. Explore ideas 4. Improve communication
  • 22. PROTOTYPING explore all avenues for business models
  • 23. PROTOTYPING at different scales A prototype of a business model can be created at various scales. A napkin sketch is the most basic version, with usually only the value proposition and revenue streams mentioned. You can draw one on a napkin while having coffee!
  • 24. PROTOTYPING at different scales An elaborated canvas contains a full business model canvas with an estimation of the market potential and some fact checking.
  • 25. PROTOTYPING at different scales A business case will build on the elaborated canvas with key data, costs and revenues and profit potential.
  • 26. PROTOTYPING at different scales This involves an investigation on customer acceptance and feasibility of the plan with an actual field test.
  • 27. PROTOTYPING at different scales
  • 29.  Introducing new ideas BENEFITS of storytelling  Pitching to investors  Engaging employees
  • 30. TELLING A STORY Company Customer perspective perspective
  • 31. TELLING A STORY You can tell a story either from the company side or from the customer side. In the former, you speak about the company’s resources and how they can be used to benefit the customers and make a profit. In the latter, you speak about the customer’s pain points and how you can eliminate them. Company Customer perspective perspective
  • 32. TELLING A STORY various techniques This little piggy went to the market….This little piggy stayed at home. This little piggy got stoned.
  • 35. SCENARIOS Imagine specific scenarios about the kind of customers using your product/service, how they are using them, their concerns and desires.
  • 37. SCENARIOS Imagine future possibilities about how the market might change, new competition that might enter, how customer roles might evolve, etc.
  • 39. IMAGE CREDITS Slide 17: Drawings: http://multiplayerblog.mtv.com/wp-content/uploads/2009/02/sc0019b49d.jpg Slide 18: http://blogs-images.forbes.com/tedgreenwald/files/2012/01/business_model_canvas_poster-02.jpg Slide 19: http://businessmodelsinc.files.wordpress.com/2009/10/nespresso_businnes_model.png Slide 20: http://secouu.files.wordpress.com/2010/10/businessmodelcanvasnew.jpg Slides 23-27: Pokemon: http://pokemondb.net/pokedex/
  • 40. GET IN TOUCH! Email: vezance@gmail.com Twitter: @vezance Recommended reading: Business Model Generation by Alex Osterwalder and Yves Pigneur http://www.businessmodelgeneration.com Disclaimer: I am not affiliated with the authors or publishers of this book. I have created this presentation after having purchased and read the book. The book contains a lot more information on business models, patterns and strategizing.