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How to Describe and Improve
   your Business Model
   Openinnovation, Dublin, 24 Oct 2007




© Arvetica
   © Arvetica, September 2007            Page 1
photos are from flickr under a « creative
   commons » license - authors are referenced in the
   comment section




© Arvetica                                             Page 2
IBM Global CEO Survey




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




© Arvetica                                       Page 3
How Do We Describe Business Models
   Today?




© Arvetica                              Page 4
Going to War without a Map…

                                 Karl von Clausewitz (~1800)




© Arvetica                                          Page 5
Insufficiently Well


                    Here                             Ok




                                      Here




             CEOs
              10°

                           Managers
                             60°




                                             Staff
© Arvetica                                   360°         Page 6
The Result




© Arvetica      Page 7
Could it Be Different?




© Arvetica                  Page 8
It Exists in Business Process Modeling




© Arvetica                                  Page 9
A Management Toolbox for Business Model
   Design and Innovation




© Arvetica                                   Page 10
A Template to Describe Business Models




                                            42’941
                                            downloads




© Arvetica                                         Page 11
Describe a Business Model: 9 Building
   Blocks



                   PARTNER
                    PARTNER
                      CLIENT                      CLIENT
                                                  CLIENT
                                                   CLIENT
                      CLIENT
                       CLIENT
                       CLIENT                      CLIENT
                                                    CLIENT
                                                    CLIENT
                   NETWORK
                   NETWORK
                   SEGMENTS                   RELATIONSHIPS
                                              RELATIONSHIPS
                                                SEGMENTS
                    SEGMENTS
                    SEGMENTS
                     SEGMENTS                    SEGMENTS
                                                 SEGMENTS
                                                  SEGMENTS



 KEY ISSUES TO
 KEY CLIENT TO
      ISSUES                       CLIENT                       CLIENT
                                                                 CLIENT
                                                                 CLIENT
      CLIENT
       CLIENT
       CLIENT                      OFFER
                                    CLIENT
                                   OFFER
                                    CLIENT
                                     CLIENT                       CLIENT
                                                               CLIENTS
                                                                  CLIENT
                                                                CLIENTS
                                                                   CLIENT
     SOLVE
     SOLVE
   SEGMENTS                      SEGMENTS                     SEGMENTS
                                                              SEGMENTS
                                                               SEGMENTS
   SEGMENTS
    SEGMENTS
    SEGMENTS                     SEGMENTS
                                  SEGMENTS
                                  SEGMENTS                     SEGMENTS
                                                                SEGMENTS
                                                                SEGMENTS


                 COMPETENCIES,
                 COMPETENCIES,                DISTRIBUTION
                                              DISTRIBUTION
                                                  CLIENT
                                                  CLIENT
                      CLIENT
                   ACTIVITIES,
                      CLIENT
                   ACTIVITIES,
                       CLIENT                      CLIENT
                                                   CLIENT
                                               CHANNELS
                       CLIENT                   CHANNELS
                                                SEGMENTS
                                                SEGMENTS
                    SEGMENTS
                  RESOURCES
                    SEGMENTS
                   RESOURCES
                     SEGMENTS                    SEGMENTS
                                                 SEGMENTS
                     SEGMENTS




                     COST
                     COST
                     CLIENT                     REVENUE
                                                REVENUE
                                                  CLIENT
                     CLIENT
                      CLIENT
                      CLIENT                       CLIENT
                                                   CLIENT
                                                    CLIENT
                  STRUCTURE
                  STRUCTURE
                   SEGMENTS                      FLOWS
                                                  FLOWS
                                                SEGMENTS
                   SEGMENTS
                    SEGMENTS
                    SEGMENTS                    SEGMENTS
                                                 SEGMENTS
                                                 SEGMENTS




© Arvetica                                                          Page 12
Example: Bizner Bank



                      PARTNER
                       PARTNER
                         CLIENT                                    automatized
                                                                     CLIENT
                                                                   automatized
                                                                      CLIENT
                                                                      CLIENT
                         CLIENT
                      Reeleezee
                          CLIENT
                       Reeleezee
                          CLIENT                                       CLIENT
                                                                       CLIENT
                                                                        CLIENT
                      NETWORK
                      NETWORK
                      SEGMENTS                                   RELATIONSHIPS
                                                                   relationship
                                                                 RELATIONSHIPS
                                                                    relationship
                                                                    SEGMENTS
                       SEGMENTS
                       SEGMENTS
                        SEGMENTS                                    SEGMENTS
                                                                     SEGMENTS
                                                                     SEGMENTS



                                               BizBallance
                                                BizBallance
 KEYaccounting,
  IT, ISSUES TO
 KEYaccounting,
   IT, CLIENT TO
       ISSUES                                      CLIENT
                                          (integrated banking                         CLIENT
                                                                                       CLIENT
                                                                                       CLIENT
        CLIENT
        CLIENT
         CLIENT                                   OFFER
                                                   CLIENT
                                           (integrated banking
                                                  OFFER
                                                    CLIENT
                                                    CLIENT                              CLIENT
                                                                                   entrepreneurs
                                                                                     CLIENTS
                                                                                        CLIENT
                                                                                   entrepreneurs
                                                                                      CLIENTS
                                                                                         CLIENT
      banking
       SOLVE
       banking
       SOLVE
     SEGMENTS                                   SEGMENTS                            SEGMENTS
                                                                                    SEGMENTS
     SEGMENTS
      SEGMENTS                               andSEGMENTS
                                                  accounting)
                                                SEGMENTS
                                             andSEGMENTS
                                                  accounting)                        SEGMENTS
                                                                                     SEGMENTS
                                                                                      SEGMENTS
      SEGMENTS                                                                        SEGMENTS


                   COMPETENCIES,
                       IT infra mgmt
                   COMPETENCIES,
                        IT infra mgmt                            DISTRIBUTION
                                                                 DISTRIBUTION
                                                                     CLIENT
                                                                     Web
                                                                     CLIENT
                            CLIENT
                       ACTIVITIES,
                      account mgmt,
                            CLIENT
                        ACTIVITIES,
                       account mgmt,
                             CLIENT                                   Web
                                                                      CLIENT
                                                                      CLIENT
                             CLIENT                               CHANNELS
                                                                   CHANNELS
                                                                   SEGMENTS
                         SEGMENTS
                      RESOURCES
                    transactions, etc.
                         SEGMENTS                                  SEGMENTS
                                                                    SEGMENTS
                                                                    SEGMENTS
                       RESOURCES
                     transactions, etc.
                          SEGMENTS
                          SEGMENTS




                   IT infrastructure,
                    IT infrastructure,
                         COST
                          COST
                         CLIENT                                    REVENUE
                                                                   REVENUE
                                                                     CLIENT
                          CLIENT
                       marketing,
                        marketing,
                           CLIENT
                           CLIENT                                     CLIENT
                                                                   monthly fee
                                                                   monthly fee
                                                                      CLIENT
                                                                       CLIENT
                     STRUCTURE
                     STRUCTURE
                       SEGMENTS                                     FLOWS
                                                                     FLOWS
                                                                   SEGMENTS
                       SEGMENTS
                   partnership costs
                   partnership costs
                        SEGMENTS
                        SEGMENTS                                   SEGMENTS
                                                                    SEGMENTS
                                                                    SEGMENTS




© Arvetica                                                                                 Page 13
Xerox 914 Business Model



                   PARTNER
                    PARTNER                             CLIENT
                                                        CLIENT
                                                         CLIENT
                      CLIENT
                      CLIENT
                       CLIENT
                       CLIENT
                   NETWORK
                                                   transactional
                                                       regular
                                                    transactional
                                                         CLIENT
                                                        regular
                                                          CLIENT
                                                          CLIENT
                                                   RELATIONSHIPS
                   NETWORK
                   SEGMENTS
                    SEGMENTS                       RELATIONSHIPS
                                                      SEGMENTS
                                                       SEGMENTS
                    SEGMENTS
                     SEGMENTS                          SEGMENTS
                                                        SEGMENTS



KEY ISSUES &
  financing &
       R&D
  financing TO
       R&D
 KEY CLIENT TO
       ISSUES                    leaseCLIENT
                                        high-end
                                  leaseCLIENT
                                        high-end                           large
                                                                            large
                                                                          CLIENT
                                                                           CLIENT
       CLIENT
        CLIENT
        CLIENT
      SOLVE
                                   photocopiers
                                   photocopiers
                                       OFFER
                                       OFFER
                                        CLIENT
                                        CLIENT
                                                                           CLIENT
                                                                            CLIENT
                                                                         CLIENTS
                                                                             CLIENT
                                                                          CLIENTS
                                                                             CLIENT
                                                                        SEGMENTS
      billing
manufacturing
       SOLVE
       billing
manufacturing
    SEGMENTS
     SEGMENTS
     SEGMENTS
      SEGMENTS
                                   photocopiers
                                   photocopiers
                                     SEGMENTS
                                     SEGMENTS
                                      SEGMENTS
                                      SEGMENTS
                                                                       companies
                                                                        SEGMENTS
                                                                       companies
                                                                         SEGMENTS
                                                                         SEGMENTS
                                                                          SEGMENTS
                                                                          SEGMENTS


                 COMPETENCIES,
                 COMPETENCIES,                      DISTRIBUTION
                                                    DISTRIBUTION
                                                         CLIENT
                      CLIENT
                   ACTIVITIES,
                      CLIENT
                   ACTIVITIES,
                       CLIENT
                       CLIENT
                                                    sales teams
                                                     sales team
                                                         CLIENT
                                                    sales teams
                                                     sales team
                                                          CLIENT
                                                          CLIENT
                                                      CHANNELS
                                                      CHANNELS
                    SEGMENTS                          SEGMENTS
                                                       SEGMENTS
                                                       SEGMENTS
                  RESOURCES
                    SEGMENTS
                   RESOURCES
                     SEGMENTS
                     SEGMENTS                           SEGMENTS




                     COST
                     COST
                     CLIENT
                                                   leaseCLIENT per
                                                      1 time 4ct
                                                            & 4ct
                                                      1 REVENUE
                                                        time sales
                                                    leaseCLIENT per
                                                             & sales
                                                        REVENUE
                     CLIENT
                      CLIENT
                      CLIENT                               CLIENT
                                                            CLIENT
                  STRUCTURE
                  STRUCTURE
                   SEGMENTS
                   SEGMENTS
                    SEGMENTS
                                                       copy (2k+)
                                                          FLOWS
                                                            fee
                                                       copy (2k+)
                                                          FLOWS
                                                            fee
                                                        SEGMENTS
                                                        SEGMENTS
                                                         SEGMENTS
                    SEGMENTS                             SEGMENTS




© Arvetica                                                                    Page 14
Multis Example


                  IT brand
                   IT brand                          long term
                                                      long term
                PARTNERS
                PARTNERS
                 manufacturer
                 manufacturer                       RELATIONS
                                                    RELATIONS
                                                       deep
                                                       deep
                       s
                       s                             integration
                                                      integration


                   manage
                   manage
    reverse
     reverse      secondary
                  secondary                                              brand
                                                                         brand
   logistics
    logistics    supply chain
                 supply chain                       re-marketing
                                                    re-marketing     manufacturers
                                                                     manufacturers
                                       total
                                        total                       customers base
                                                                    customers base
KEY ISSUES
  systems                       remanufacturing
                                remanufacturing
KEY ISSUES
  systems
                ACTIVITIES          OFFER           CHANNELS          CLIENTS
 knowledge
 TO SOLVE
 knowledge      ACTIVITIES
                manufacturing
                manufacturing       OFFER
                                solutions of high
                                solutions of high   CHANNELS          CLIENTS
                                                                       brand
                                                                        brand
 TO SOLVE                       end IT platforms
                                end IT platforms     « sales »
                                                     « sales »      manufacturers
                                                                    manufacturers
                 inventory                             team
                                                        team        of high end IT
                                                                    of high end IT
manufacturing
manufacturing     inventory
                management                                             platforms
                                                                       platforms
                management



                                                       sales
                                                       sales
                manufacturing
                manufacturing                       commission
                                                    commission
                  COSTS
                  COSTS                             REVENUES
                                                    REVENUES
                  inventory
                   inventory                          flat fee
                                                       flat fee


© Arvetica                                                                Page 15
The Process




© Arvetica       Page 16
“ find a way to play poker to
             unlock these models
             Prof Henry Chesbrough, Berkeley
                                               ”

© Arvetica                                     Page 17
5 Steps to Business Model Design & Renewal




1
1   VISUALIZE    2
                 2   ASSESS        3
                                   3   RENEW       4
                                                   4   PLAN        5
                                                                   5   IMPLEMENT


→ describe       → assess          → brainstorm on → turn new model → implement
  existing         strengths and     improvements    into a project   project
  business model   weaknesses        & opportunities roadmap          roadmap




© Arvetica                                                                Page 18
Visualize




© Arvetica     Page 19
© Arvetica   Page 20
Visualizing




© Arvetica       Page 21
Visualizing Amazon.com




© Arvetica                  Page 22
automatized
                                                   automatized
                 PARTNERS
                 PARTNERS
                   partners
                   partners                       RELATIONS
                                                  RELATIONS
                                                   relationships
                                                   relationships



    product
    product                                       Amazon.com
                                                  Amazon.com
   selection
   selection
                   content
                   content        selling stuff
                                  selling stuff                      mass
                                                                     mass
                 management
                 management       on the Web
                                  on the Web                       customer
                                                                   customer
  distribution
  distribution                                      affiliates
                                                    affiliates
KEY ISSUES
KEY ISSUES       warehousing
                  warehousing
                 ACTIVITIES
                 ACTIVITIES        OFFER
                                   OFFER          CHANNELS
                                                  CHANNELS         CLIENTS
                                                                   CLIENTS
 TO SOLVE
 TO SOLVE        & distribution
                 & distribution
    product
    product
    search
     search
                 data services
                 data services
Amazon.com
Amazon.com
 data grid
  data grid



                                                   selling stuff
                                                   selling stuff
                    IT infra
                     IT infra

                   COSTS
                   COSTS                          REVENUES
                                                  REVENUES
                   marketing
                   marketing



© Arvetica                                                            Page 23
Assess, Design & Renew




© Arvetica                  Page 24
“ good ideas are widely
             distributed, nobody has a
             monopoly on innovation
                  Prof Henry Chesbrough, Berkeley
                                                    ”
© Arvetica                                          Page 25
Assessing Amazon.com



   • where are some of
     Amazon.com‘s highest
     costs located?
   • what are some of
     Amazon.com‘s core
     competencies?
   • how could they leverage
     these competencies?

   • how could they leverage
     investments?


© Arvetica                     Page 26
automatized
                                                   automatized
                 PARTNERS
                 PARTNERS
                   partners
                   partners                       RELATIONS
                                                  RELATIONS
                                                   relationships
                                                   relationships



    product
    product                                       Amazon.com
                                                  Amazon.com
   selection
   selection
                   content
                   content        selling stuff
                                  selling stuff                      mass
                                                                     mass
                 management
                 management       on the Web
                                  on the Web                       customer
                                                                   customer
  distribution
  distribution                                      affiliates
                                                    affiliates
KEY ISSUES
KEY ISSUES       warehousing
                  warehousing
                 ACTIVITIES
                 ACTIVITIES        OFFER
                                   OFFER          CHANNELS
                                                  CHANNELS         CLIENTS
                                                                   CLIENTS
 TO SOLVE
 TO SOLVE        & distribution
                 & distribution
    product
    product
    search
     search
                 data services
                 data services
Amazon.com
Amazon.com
 data grid
  data grid



                                                   selling stuff
                                                   selling stuff
                    IT infra
                     IT infra

                   COSTS
                   COSTS                          REVENUES
                                                  REVENUES
                   marketing
                   marketing



© Arvetica                                                            Page 27
Leveraging IT at Amazon.com




© Arvetica                       Page 28
automatized
                                                   automatized
                 PARTNERS
                 PARTNERS
                   partners
                   partners                       RELATIONS
                                                  RELATIONS
                                                   relationships
                                                   relationships



    product
    product                                       Amazon.com
                                                  Amazon.com
   selection
   selection
                   content
                   content        selling stuff
                                  selling stuff                       mass
                                                                      mass
                 management
                 management       on the Web
                                  on the Web                        customer
                                                                    customer
  distribution
  distribution                                      affiliates
                                                    affiliates
KEY ISSUES
KEY ISSUES       warehousing
                  warehousing                                       Web2.0
                                                                     Web2.0
                 ACTIVITIES
                 ACTIVITIES        OFFER
                                   OFFER
                                  Amazon S3
                                  Amazon S3       CHANNELS
                                                  CHANNELS         CLIENTS
                                                                   CLIENTS
 TO SOLVE
 TO SOLVE        & distribution
                 & distribution                                    companies
                                                                   companies
    product
    product
    search                                         Internet API
                                                    Internet API
     search
                                  A9 product
                                  A9 product                       e-commerce
                                                                   e-commerce
                 data services
                 data services     search
                                    search                             sites
                                                                       sites
Amazon.com
Amazon.com
 data grid                                           Internet
                                                      Internet
  data grid



                                                   selling stuff
                                                   selling stuff
                    IT infra
                     IT infra
                                                   data storage
                                                   data storage
                   COSTS
                   COSTS                          REVENUES
                                                  REVENUES
                                                     fees
                                                      fees
                   marketing
                   marketing
                                                  search engine
                                                  search engine
                                                    revenues
                                                    revenues
© Arvetica                                                             Page 29
Changing the Business Model:
   Examples




© Arvetica                        Page 30
Building on Existing Customer Relationships:
   Walmart Clinics




                      PARTNER
                       PARTNER
                         CLIENT                         frequent
                                                        CLIENT
                                                         frequent
                                                         CLIENT
                                                          CLIENT
                         CLIENT
                          CLIENT
                          CLIENT                          CLIENT
                                                           CLIENT
                                                           CLIENT
                      NETWORK
                      NETWORK
                      SEGMENTS                        relationship
                                                    RELATIONSHIPS
                                                       relationship
                                                    RELATIONSHIPS
                                                      SEGMENTS
                       SEGMENTS
                       SEGMENTS
                        SEGMENTS                       SEGMENTS
                                                        SEGMENTS
                                                        SEGMENTS



 KEY ISSUES TO
medical knowledge
 KEY CLIENT TO
      ISSUES
medical knowledge                       Walmart
                                         Walmart
                                         CLIENT                          CLIENT
                                                                         CLIENT
                                                                          CLIENT
      CLIENT
       CLIENT
       CLIENT                             CLIENT
                                         OFFER
                                         OFFER
                                          CLIENT
                                           CLIENT                         CLIENT
                                                                        shoppers
                                                                       CLIENTS
                                                                           CLIENT
                                                                        shoppers
                                                                        CLIENTS
                                                                           CLIENT
     SOLVE
    and staff
     SOLVE
     and staff
   SEGMENTS                              Clinics
                                          Clinics
                                       SEGMENTS                       SEGMENTS
                                                                      SEGMENTS
                                                                       SEGMENTS
   SEGMENTS
    SEGMENTS
    SEGMENTS                           SEGMENTS
                                        SEGMENTS
                                        SEGMENTS                       SEGMENTS
                                                                        SEGMENTS
                                                                        SEGMENTS


                    COMPETENCIES,
                    COMPETENCIES,                   DISTRIBUTION
                                                    DISTRIBUTION
                                                        CLIENT
                                                        CLIENT
                         CLIENT
                      ACTIVITIES,
                     health services
                          CLIENT
                      ACTIVITIES,
                     health services
                          CLIENT                         CLIENT
                                                         CLIENT
                                                     CHANNELS
                           CLIENT                     CHANNELS
                                                      SEGMENTS
                                                      SEGMENTS
                       SEGMENTS
                     RESOURCES
                       SEGMENTS
                      RESOURCES
                        SEGMENTS                       SEGMENTS
                                                       SEGMENTS
                        SEGMENTS




                         COST
                         COST
                         CLIENT                       REVENUE
                                                      REVENUE
                                                        CLIENT
                         CLIENT
                          CLIENT
                          CLIENT                         CLIENT
                                                         CLIENT
                                                          CLIENT
                      STRUCTURE
                      STRUCTURE
                       SEGMENTS                        FLOWS
                                                        FLOWS
                                                      SEGMENTS
                       SEGMENTS
                        SEGMENTS
                        SEGMENTS                      SEGMENTS
                                                       SEGMENTS
                                                       SEGMENTS



© Arvetica                                                                  Page 31
Changing the Game:
   Cirque de Soleil




                    PARTNER
                     PARTNER
                       CLIENT                            CLIENT
                                                         CLIENT
                                                          CLIENT
                       CLIENT
                        CLIENT
                        CLIENT                            CLIENT
                                                           CLIENT
                                                           CLIENT
                    NETWORK
                    NETWORK
                    SEGMENTS                         RELATIONSHIPS
                                                     RELATIONSHIPS
                                                       SEGMENTS
                     SEGMENTS
                     SEGMENTS
                      SEGMENTS                          SEGMENTS
                                                        SEGMENTS
                                                         SEGMENTS



 KEY ISSUES &
  create art &
  create art TO
 KEY CLIENT TO
      ISSUES                       artistic circus
                                   artistic circus
                                        CLIENT
                                                                      theater & opera
                                                                       theater & opera
                                                                           CLIENT
                                                                            CLIENT
      CLIENT
       CLIENT                           CLIENT
                                       OFFER
                                        OFFER
                                         CLIENT                             CLIENT
                                                                             CLIENT
                                                                          CLIENTS
                                                                             CLIENT
                                                                           CLIENTS
       CLIENT
  atmosphere
     SOLVE                               CLIENT
                                   without lions                              CLIENT
                                                                           visiitors
                                                                         SEGMENTS
                                                                           visiitors
  atmosphere
      SOLVE
   SEGMENTS
    SEGMENTS
    SEGMENTS                        without lions
                                     SEGMENTS
                                      SEGMENTS
                                      SEGMENTS
                                                                         SEGMENTS
                                                                          SEGMENTS
                                                                          SEGMENTS
                                                                           SEGMENTS
     SEGMENTS                         SEGMENTS                            SEGMENTS


                  stage & manage
                  stage & manage
                  COMPETENCIES,
                   COMPETENCIES,                     DISTRIBUTION
                                                     DISTRIBUTION
                                                         CLIENT
                                                         CLIENT
                         CLIENT
                    spectacle &
                     ACTIVITIES,
                         CLIENT
                     spectacle &
                     ACTIVITIES,
                          CLIENT                          CLIENT
                                                          CLIENT
                                                      CHANNELS
                          CLIENT                       CHANNELS
                                                       SEGMENTS
                                                       SEGMENTS
                      SEGMENTS
                    RESOURCES
                      SEGMENTS
                      logistics
                     RESOURCES
                       SEGMENTS                         SEGMENTS
                                                        SEGMENTS
                       logistics
                       SEGMENTS




                      COST
                      COST
                      CLIENT
                      CLIENT
                                                      higher ticket
                                                      higher ticket
                                                        REVENUE
                                                        REVENUE
                                                          CLIENT
                                                           CLIENT
                       CLIENT
                       CLIENT
                   STRUCTURE                               CLIENT
                                                            CLIENT
                                                         FLOWS
                   STRUCTURE
                    SEGMENTS
                    SEGMENTS                              prices
                                                          FLOWS
                                                          prices
                                                        SEGMENTS
                                                        SEGMENTS
                     SEGMENTS
                     SEGMENTS                            SEGMENTS
                                                        SEGMENTS



© Arvetica                                                                      Page 32
Demand-Creating Alliances:
   Intel Processor Platform




                 partners with
                  partners with
                   PARTNER
                    PARTNER                          CLIENT
                                                     CLIENT
                                                      CLIENT
                 everCLIENT
                      “heavier”
                 everCLIENT
                       “heavier”
                      CLIENT
                       CLIENT                         CLIENT
                                                       CLIENT
                                                       CLIENT
                   NETWORK
                   NETWORK
                   SEGMENTS                      RELATIONSHIPS
                                                 RELATIONSHIPS
                                                   SEGMENTS
                    SEGMENTS
                  applications
                    SEGMENTS
                  applications
                     SEGMENTS                       SEGMENTS
                                                    SEGMENTS
                                                     SEGMENTS



 KEY ISSUES TO
 KEY CLIENT TO
      ISSUES                         speedy
                                     speedy                        CLIENT
                                                                    CLIENT
                                                                 endCLIENT
      CLIENT
       CLIENT
       CLIENT
     SOLVE
                                      CLIENT
                                       CLIENT
                                      OFFER
                                      OFFER
                                       CLIENT
                                        CLIENT                    end users
                                                                    CLIENT
                                                                       users
                                                                     CLIENT
                                                                  CLIENTS
                                                                     CLIENT
                                                                   CLIENTS
                                                                 SEGMENTS
     SOLVE
   SEGMENTS
   SEGMENTS
    SEGMENTS
                                   processors
                                   processors
                                    SEGMENTS
                                    SEGMENTS                     SEGMENTS
                                                                  SEGMENTS
                                                                  SEGMENTS
    SEGMENTS                         SEGMENTS
                                    SEGMENTS                       SEGMENTS
                                                                   SEGMENTS


                 COMPETENCIES,
                 COMPETENCIES,                   DISTRIBUTION
                                                 DISTRIBUTION
                                                     CLIENT
                                                     CLIENT
                      CLIENT
                   ACTIVITIES,
                      CLIENT
                   ACTIVITIES,
                       CLIENT                         CLIENT
                                                      CLIENT
                                                  CHANNELS
                       CLIENT                      CHANNELS
                                                   SEGMENTS
                                                   SEGMENTS
                    SEGMENTS
                  RESOURCES
                    SEGMENTS
                   RESOURCES
                     SEGMENTS                       SEGMENTS
                                                    SEGMENTS
                     SEGMENTS




                     COST
                     COST
                     CLIENT                        REVENUE
                                                   REVENUE
                                                     CLIENT
                     CLIENT
                      CLIENT
                      CLIENT                          CLIENT
                                                      CLIENT
                                                       CLIENT
                  STRUCTURE
                  STRUCTURE
                   SEGMENTS                         FLOWS
                                                     FLOWS
                                                   SEGMENTS
                   SEGMENTS
                    SEGMENTS
                    SEGMENTS                       SEGMENTS
                                                    SEGMENTS
                                                    SEGMENTS



© Arvetica                                                             Page 33
Planning & Implemention




© Arvetica                   Page 34
Introducing a Family Office Service through a
   Partnership




                  independent
                   independent                             tight
                                                            tight
                     PARTNER
                     PARTNER
                       CLIENT
                                                     tightCLIENT
                                                            personal
                                                          CLIENT
                                                      tightCLIENT
                                                            personal
                                                          CLIENT
                                                      relationships
                   multi-family
                       CLIENT
                    multi-family
                        CLIENT
                        CLIENT                         relationships
                                                           CLIENT
                                                            CLIENT
                                                    RELATIONSHIPS
                    NETWORK
                     NETWORK
                     SEGMENTS
                     SEGMENTS
                                                      relationships
                                                    RELATIONSHIPS
                                                       relationships
                                                        SEGMENTS
                                                       with UHNWI
                                                         SEGMENTS
                       office
                      SEGMENTS
                       office
                      SEGMENTS                         with UHNWI
                                                       SEGMENTS
                                                       SEGMENTS



 KEY ISSUES TO
 KEY CLIENT TO
      ISSUES                       familyprivate
                                    local office
                                   local private
                                    family office                        ultra high net
                                                                        affluent clients
                                                                         ultra high net
                                                                        affluent clients
                                                                             CLIENT
                                                                             CLIENT
      CLIENT                            CLIENT
                                        CLIENT
                                       OFFER                                  CLIENT
       CLIENT
       CLIENT
     SOLVE
     SOLVE
   SEGMENTS
                                        OFFER
                                         CLIENT
                                         CLIENT
                                      services
                                      banking
                                      services
                                       banking
                                     SEGMENTS                          worth CLIENT
                                                                            CLIENTS
                                                                               CLIENT
                                                                             CLIENTS
                                                                               CLIENT
                                                                       worth individuals
                                                                        (100k-1+mio)
                                                                          SEGMENTS
                                                                               individuals
                                                                         (100k-1+mio)
                                                                          SEGMENTS
                                                                           SEGMENTS
   SEGMENTS
    SEGMENTS
    SEGMENTS                          SEGMENTS
                                      SEGMENTS
                                     SEGMENTS                               SEGMENTS
                                                                           SEGMENTS
                                                                           SEGMENTS


                 COMPETENCIES,
                 COMPETENCIES,                      localCLIENT&of
                                                           branch
                                                     localCLIENT &of
                                                           branch
                                                       branches
                                                     DISTRIBUTION
                                                       branches
                                                      DISTRIBUTION
                      CLIENT
                   ACTIVITIES,
                      CLIENT
                   ACTIVITIES,
                       CLIENT                              CLIENT
                                                           CLIENT
                                                      family office
                                                       CHANNELS
                       CLIENT
                    SEGMENTS
                                                       family office
                                                         bankers
                                                        CHANNELS
                                                         bankers
                                                        SEGMENTS
                                                        SEGMENTS
                  RESOURCES
                    SEGMENTS
                   RESOURCES
                     SEGMENTS
                     SEGMENTS                          SEGMENTS
                                                       SEGMENTS




                     COST
                     COST
                     CLIENT                         revenueproduct
                                                     mainly sharing
                                                    revenueproduct
                                                     mainly sharing
                                                        REVENUE
                                                        REVENUE
                                                          CLIENT
                     CLIENT
                      CLIENT
                      CLIENT                               CLIENT
                                                           CLIENT
                                                            CLIENT
                  STRUCTURE
                  STRUCTURE
                   SEGMENTS
                   SEGMENTS                            agreement
                                                         FLOWS
                                                        revenues
                                                       agreement
                                                          FLOWS
                                                        revenues
                                                        SEGMENTS
                                                        SEGMENTS
                    SEGMENTS
                    SEGMENTS                             SEGMENTS
                                                        SEGMENTS



© Arvetica                                                                        Page 35
Project Roadmap

     CLIENT
     CLIENT
     UHNWI
      UHNWI
    SEGMENT
    SEGMENT

    family office
     family office       work out client
                         work out client
       OFFER
       OFFER
       services
       services          presentation
                         presentation

    CLIENT
     UHNWI
     CLIENT
     UHNWI
RELATIONSHIPS
  relationships          set-up CRM tool
                         set-up CRM tool
RELATIONSHIPS
  relationships
  relationship
  relationship
 ACQUISITION
 ACQUISITION             generate prioritized
                         generate prioritized     relationship manager
                                                  relationship manager
managers & new
managers & new                                                            client reception area
                                                                          client reception area
  CHANNELS
  CHANNELS               prospect list
                         prospect list            collaboration process
                                                  collaboration process
     office
      office

                         establish acquisition
                          establish acquisition                           develop marketing
                                                                          develop marketing
                                                  training program
                                                   training program
                         learning process
                          learning process                                material
                                                                          material

client trust, internal
client trust, internal   internal concept
                          internal concept
    ACTIVITIES
    ACTIVITIES                                    team set-up
                                                   team set-up
    cooperation
     cooperation         presentation
                          presentation

mutli-family office
mutli-family office      design collaboration
                         design collaboration
  PARTNER
  PARTNER
      partner
      partner            process
                         process

    REVNUE
    REVNUE
 revenue sharing
 revenue sharing         profit center set-up
                         profit center set-up
   STREAMS
    STREAMS
© Arvetica                                                                                    Page 36
“ the only thing that’s not
             designed is nature        ”
                    Dave Kelly, IDEO




© Arvetica                             Page 37
“ business people don’t just
      need to understand designers
       better; they need to become
                          designers              ”
              Roger Martin, Dean Rotman School


© Arvetica                                       Page 38
Thank You




© Arvetica     Page 39
www.arvetica.com




               business-model-design.blogspot.com
© Arvetica                                          Page 40
Alexander Osterwalder




                           Before joining Arvetica Alex founded Business Model Design, a
                           consulting boutique specialized in business model innovation.

                           Besides consulting the private sector he was also involved in

                           building up a globally active NGO based in Thailand in the field of

                           knowledge    management,       HIV/AIDS   and   malaria.   Prior   to

                           consulting, Alex worked at the University of Lausanne, as an

                           entrepreneur in the banking sector and as an online journalist for
                           the major Swiss business magazine BILANZ. He holds a PhD and

                           Masters degree of the HEC Business School of the University of

                           Lausanne, Switzerland. Alex is an active member of the IMD based

                           Open World Initiative (OWI).




© Arvetica                                                                               Page 41
Waster Water Treatment Example




© Arvetica                          Page 42
waste water
                                                   Canadian
              treatment
                  offer    sales force
                           distribution channel   customer segment
                                                  mining sites
                system



                             one time
                            revenue stream
                             sales fee




© Arvetica                                                Page 43
total waste water
              sell waste water                  Canadian
                  treatment      sales force
             treatment system                  mining sites
                management



                                  recurring
                                  one time
                                 servicefee
                                  sales fee




© Arvetica                                          Page 44
partner network
                       suppliers                               client
                                                            follow-up
                                                           relationship



                                       sell waste water
water treatment     build treatment                                         Canadian
core capabilities    core activities       treatment       sales force
  knowledge             systems                                            mining sites
                                             system




                      production                          one time sales
                        costs
                        costs                                   fee




© Arvetica                                                                      Page 45
suppliers                         follow-up
                                                     call center



    water           build        total waste water
   error free                                                       Canadian
 treatment         dispatch
                 treatment           treatment       sales force
   systems                                                         mining sites
knowledge       repair teams
                  systems          management
development


                variable costs
                 production                           recurring
                   of repair
                    costs                            service fee
                   services




© Arvetica                                                              Page 46

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Describe and-improve-your-business-model-1193048778204895-2

  • 1. How to Describe and Improve your Business Model Openinnovation, Dublin, 24 Oct 2007 © Arvetica © Arvetica, September 2007 Page 1
  • 2. photos are from flickr under a « creative commons » license - authors are referenced in the comment section © Arvetica Page 2
  • 3. IBM Global CEO Survey “Business model innovation matters” and it is a top priority of CEOs © Arvetica Page 3
  • 4. How Do We Describe Business Models Today? © Arvetica Page 4
  • 5. Going to War without a Map… Karl von Clausewitz (~1800) © Arvetica Page 5
  • 6. Insufficiently Well Here Ok Here CEOs 10° Managers 60° Staff © Arvetica 360° Page 6
  • 8. Could it Be Different? © Arvetica Page 8
  • 9. It Exists in Business Process Modeling © Arvetica Page 9
  • 10. A Management Toolbox for Business Model Design and Innovation © Arvetica Page 10
  • 11. A Template to Describe Business Models 42’941 downloads © Arvetica Page 11
  • 12. Describe a Business Model: 9 Building Blocks PARTNER PARTNER CLIENT CLIENT CLIENT CLIENT CLIENT CLIENT CLIENT CLIENT CLIENT CLIENT NETWORK NETWORK SEGMENTS RELATIONSHIPS RELATIONSHIPS SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS KEY ISSUES TO KEY CLIENT TO ISSUES CLIENT CLIENT CLIENT CLIENT CLIENT CLIENT CLIENT OFFER CLIENT OFFER CLIENT CLIENT CLIENT CLIENTS CLIENT CLIENTS CLIENT SOLVE SOLVE SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS COMPETENCIES, COMPETENCIES, DISTRIBUTION DISTRIBUTION CLIENT CLIENT CLIENT ACTIVITIES, CLIENT ACTIVITIES, CLIENT CLIENT CLIENT CHANNELS CLIENT CHANNELS SEGMENTS SEGMENTS SEGMENTS RESOURCES SEGMENTS RESOURCES SEGMENTS SEGMENTS SEGMENTS SEGMENTS COST COST CLIENT REVENUE REVENUE CLIENT CLIENT CLIENT CLIENT CLIENT CLIENT CLIENT STRUCTURE STRUCTURE SEGMENTS FLOWS FLOWS SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS © Arvetica Page 12
  • 13. Example: Bizner Bank PARTNER PARTNER CLIENT automatized CLIENT automatized CLIENT CLIENT CLIENT Reeleezee CLIENT Reeleezee CLIENT CLIENT CLIENT CLIENT NETWORK NETWORK SEGMENTS RELATIONSHIPS relationship RELATIONSHIPS relationship SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS BizBallance BizBallance KEYaccounting, IT, ISSUES TO KEYaccounting, IT, CLIENT TO ISSUES CLIENT (integrated banking CLIENT CLIENT CLIENT CLIENT CLIENT CLIENT OFFER CLIENT (integrated banking OFFER CLIENT CLIENT CLIENT entrepreneurs CLIENTS CLIENT entrepreneurs CLIENTS CLIENT banking SOLVE banking SOLVE SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS andSEGMENTS accounting) SEGMENTS andSEGMENTS accounting) SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS COMPETENCIES, IT infra mgmt COMPETENCIES, IT infra mgmt DISTRIBUTION DISTRIBUTION CLIENT Web CLIENT CLIENT ACTIVITIES, account mgmt, CLIENT ACTIVITIES, account mgmt, CLIENT Web CLIENT CLIENT CLIENT CHANNELS CHANNELS SEGMENTS SEGMENTS RESOURCES transactions, etc. SEGMENTS SEGMENTS SEGMENTS SEGMENTS RESOURCES transactions, etc. SEGMENTS SEGMENTS IT infrastructure, IT infrastructure, COST COST CLIENT REVENUE REVENUE CLIENT CLIENT marketing, marketing, CLIENT CLIENT CLIENT monthly fee monthly fee CLIENT CLIENT STRUCTURE STRUCTURE SEGMENTS FLOWS FLOWS SEGMENTS SEGMENTS partnership costs partnership costs SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS © Arvetica Page 13
  • 14. Xerox 914 Business Model PARTNER PARTNER CLIENT CLIENT CLIENT CLIENT CLIENT CLIENT CLIENT NETWORK transactional regular transactional CLIENT regular CLIENT CLIENT RELATIONSHIPS NETWORK SEGMENTS SEGMENTS RELATIONSHIPS SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS KEY ISSUES & financing & R&D financing TO R&D KEY CLIENT TO ISSUES leaseCLIENT high-end leaseCLIENT high-end large large CLIENT CLIENT CLIENT CLIENT CLIENT SOLVE photocopiers photocopiers OFFER OFFER CLIENT CLIENT CLIENT CLIENT CLIENTS CLIENT CLIENTS CLIENT SEGMENTS billing manufacturing SOLVE billing manufacturing SEGMENTS SEGMENTS SEGMENTS SEGMENTS photocopiers photocopiers SEGMENTS SEGMENTS SEGMENTS SEGMENTS companies SEGMENTS companies SEGMENTS SEGMENTS SEGMENTS SEGMENTS COMPETENCIES, COMPETENCIES, DISTRIBUTION DISTRIBUTION CLIENT CLIENT ACTIVITIES, CLIENT ACTIVITIES, CLIENT CLIENT sales teams sales team CLIENT sales teams sales team CLIENT CLIENT CHANNELS CHANNELS SEGMENTS SEGMENTS SEGMENTS SEGMENTS RESOURCES SEGMENTS RESOURCES SEGMENTS SEGMENTS SEGMENTS COST COST CLIENT leaseCLIENT per 1 time 4ct & 4ct 1 REVENUE time sales leaseCLIENT per & sales REVENUE CLIENT CLIENT CLIENT CLIENT CLIENT STRUCTURE STRUCTURE SEGMENTS SEGMENTS SEGMENTS copy (2k+) FLOWS fee copy (2k+) FLOWS fee SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS © Arvetica Page 14
  • 15. Multis Example IT brand IT brand long term long term PARTNERS PARTNERS manufacturer manufacturer RELATIONS RELATIONS deep deep s s integration integration manage manage reverse reverse secondary secondary brand brand logistics logistics supply chain supply chain re-marketing re-marketing manufacturers manufacturers total total customers base customers base KEY ISSUES systems remanufacturing remanufacturing KEY ISSUES systems ACTIVITIES OFFER CHANNELS CLIENTS knowledge TO SOLVE knowledge ACTIVITIES manufacturing manufacturing OFFER solutions of high solutions of high CHANNELS CLIENTS brand brand TO SOLVE end IT platforms end IT platforms « sales » « sales » manufacturers manufacturers inventory team team of high end IT of high end IT manufacturing manufacturing inventory management platforms platforms management sales sales manufacturing manufacturing commission commission COSTS COSTS REVENUES REVENUES inventory inventory flat fee flat fee © Arvetica Page 15
  • 17. “ find a way to play poker to unlock these models Prof Henry Chesbrough, Berkeley ” © Arvetica Page 17
  • 18. 5 Steps to Business Model Design & Renewal 1 1 VISUALIZE 2 2 ASSESS 3 3 RENEW 4 4 PLAN 5 5 IMPLEMENT → describe → assess → brainstorm on → turn new model → implement existing strengths and improvements into a project project business model weaknesses & opportunities roadmap roadmap © Arvetica Page 18
  • 20. © Arvetica Page 20
  • 23. automatized automatized PARTNERS PARTNERS partners partners RELATIONS RELATIONS relationships relationships product product Amazon.com Amazon.com selection selection content content selling stuff selling stuff mass mass management management on the Web on the Web customer customer distribution distribution affiliates affiliates KEY ISSUES KEY ISSUES warehousing warehousing ACTIVITIES ACTIVITIES OFFER OFFER CHANNELS CHANNELS CLIENTS CLIENTS TO SOLVE TO SOLVE & distribution & distribution product product search search data services data services Amazon.com Amazon.com data grid data grid selling stuff selling stuff IT infra IT infra COSTS COSTS REVENUES REVENUES marketing marketing © Arvetica Page 23
  • 24. Assess, Design & Renew © Arvetica Page 24
  • 25. “ good ideas are widely distributed, nobody has a monopoly on innovation Prof Henry Chesbrough, Berkeley ” © Arvetica Page 25
  • 26. Assessing Amazon.com • where are some of Amazon.com‘s highest costs located? • what are some of Amazon.com‘s core competencies? • how could they leverage these competencies? • how could they leverage investments? © Arvetica Page 26
  • 27. automatized automatized PARTNERS PARTNERS partners partners RELATIONS RELATIONS relationships relationships product product Amazon.com Amazon.com selection selection content content selling stuff selling stuff mass mass management management on the Web on the Web customer customer distribution distribution affiliates affiliates KEY ISSUES KEY ISSUES warehousing warehousing ACTIVITIES ACTIVITIES OFFER OFFER CHANNELS CHANNELS CLIENTS CLIENTS TO SOLVE TO SOLVE & distribution & distribution product product search search data services data services Amazon.com Amazon.com data grid data grid selling stuff selling stuff IT infra IT infra COSTS COSTS REVENUES REVENUES marketing marketing © Arvetica Page 27
  • 28. Leveraging IT at Amazon.com © Arvetica Page 28
  • 29. automatized automatized PARTNERS PARTNERS partners partners RELATIONS RELATIONS relationships relationships product product Amazon.com Amazon.com selection selection content content selling stuff selling stuff mass mass management management on the Web on the Web customer customer distribution distribution affiliates affiliates KEY ISSUES KEY ISSUES warehousing warehousing Web2.0 Web2.0 ACTIVITIES ACTIVITIES OFFER OFFER Amazon S3 Amazon S3 CHANNELS CHANNELS CLIENTS CLIENTS TO SOLVE TO SOLVE & distribution & distribution companies companies product product search Internet API Internet API search A9 product A9 product e-commerce e-commerce data services data services search search sites sites Amazon.com Amazon.com data grid Internet Internet data grid selling stuff selling stuff IT infra IT infra data storage data storage COSTS COSTS REVENUES REVENUES fees fees marketing marketing search engine search engine revenues revenues © Arvetica Page 29
  • 30. Changing the Business Model: Examples © Arvetica Page 30
  • 31. Building on Existing Customer Relationships: Walmart Clinics PARTNER PARTNER CLIENT frequent CLIENT frequent CLIENT CLIENT CLIENT CLIENT CLIENT CLIENT CLIENT CLIENT NETWORK NETWORK SEGMENTS relationship RELATIONSHIPS relationship RELATIONSHIPS SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS KEY ISSUES TO medical knowledge KEY CLIENT TO ISSUES medical knowledge Walmart Walmart CLIENT CLIENT CLIENT CLIENT CLIENT CLIENT CLIENT CLIENT OFFER OFFER CLIENT CLIENT CLIENT shoppers CLIENTS CLIENT shoppers CLIENTS CLIENT SOLVE and staff SOLVE and staff SEGMENTS Clinics Clinics SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS COMPETENCIES, COMPETENCIES, DISTRIBUTION DISTRIBUTION CLIENT CLIENT CLIENT ACTIVITIES, health services CLIENT ACTIVITIES, health services CLIENT CLIENT CLIENT CHANNELS CLIENT CHANNELS SEGMENTS SEGMENTS SEGMENTS RESOURCES SEGMENTS RESOURCES SEGMENTS SEGMENTS SEGMENTS SEGMENTS COST COST CLIENT REVENUE REVENUE CLIENT CLIENT CLIENT CLIENT CLIENT CLIENT CLIENT STRUCTURE STRUCTURE SEGMENTS FLOWS FLOWS SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS © Arvetica Page 31
  • 32. Changing the Game: Cirque de Soleil PARTNER PARTNER CLIENT CLIENT CLIENT CLIENT CLIENT CLIENT CLIENT CLIENT CLIENT CLIENT NETWORK NETWORK SEGMENTS RELATIONSHIPS RELATIONSHIPS SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS KEY ISSUES & create art & create art TO KEY CLIENT TO ISSUES artistic circus artistic circus CLIENT theater & opera theater & opera CLIENT CLIENT CLIENT CLIENT CLIENT OFFER OFFER CLIENT CLIENT CLIENT CLIENTS CLIENT CLIENTS CLIENT atmosphere SOLVE CLIENT without lions CLIENT visiitors SEGMENTS visiitors atmosphere SOLVE SEGMENTS SEGMENTS SEGMENTS without lions SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS stage & manage stage & manage COMPETENCIES, COMPETENCIES, DISTRIBUTION DISTRIBUTION CLIENT CLIENT CLIENT spectacle & ACTIVITIES, CLIENT spectacle & ACTIVITIES, CLIENT CLIENT CLIENT CHANNELS CLIENT CHANNELS SEGMENTS SEGMENTS SEGMENTS RESOURCES SEGMENTS logistics RESOURCES SEGMENTS SEGMENTS SEGMENTS logistics SEGMENTS COST COST CLIENT CLIENT higher ticket higher ticket REVENUE REVENUE CLIENT CLIENT CLIENT CLIENT STRUCTURE CLIENT CLIENT FLOWS STRUCTURE SEGMENTS SEGMENTS prices FLOWS prices SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS © Arvetica Page 32
  • 33. Demand-Creating Alliances: Intel Processor Platform partners with partners with PARTNER PARTNER CLIENT CLIENT CLIENT everCLIENT “heavier” everCLIENT “heavier” CLIENT CLIENT CLIENT CLIENT CLIENT NETWORK NETWORK SEGMENTS RELATIONSHIPS RELATIONSHIPS SEGMENTS SEGMENTS applications SEGMENTS applications SEGMENTS SEGMENTS SEGMENTS SEGMENTS KEY ISSUES TO KEY CLIENT TO ISSUES speedy speedy CLIENT CLIENT endCLIENT CLIENT CLIENT CLIENT SOLVE CLIENT CLIENT OFFER OFFER CLIENT CLIENT end users CLIENT users CLIENT CLIENTS CLIENT CLIENTS SEGMENTS SOLVE SEGMENTS SEGMENTS SEGMENTS processors processors SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS COMPETENCIES, COMPETENCIES, DISTRIBUTION DISTRIBUTION CLIENT CLIENT CLIENT ACTIVITIES, CLIENT ACTIVITIES, CLIENT CLIENT CLIENT CHANNELS CLIENT CHANNELS SEGMENTS SEGMENTS SEGMENTS RESOURCES SEGMENTS RESOURCES SEGMENTS SEGMENTS SEGMENTS SEGMENTS COST COST CLIENT REVENUE REVENUE CLIENT CLIENT CLIENT CLIENT CLIENT CLIENT CLIENT STRUCTURE STRUCTURE SEGMENTS FLOWS FLOWS SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS © Arvetica Page 33
  • 34. Planning & Implemention © Arvetica Page 34
  • 35. Introducing a Family Office Service through a Partnership independent independent tight tight PARTNER PARTNER CLIENT tightCLIENT personal CLIENT tightCLIENT personal CLIENT relationships multi-family CLIENT multi-family CLIENT CLIENT relationships CLIENT CLIENT RELATIONSHIPS NETWORK NETWORK SEGMENTS SEGMENTS relationships RELATIONSHIPS relationships SEGMENTS with UHNWI SEGMENTS office SEGMENTS office SEGMENTS with UHNWI SEGMENTS SEGMENTS KEY ISSUES TO KEY CLIENT TO ISSUES familyprivate local office local private family office ultra high net affluent clients ultra high net affluent clients CLIENT CLIENT CLIENT CLIENT CLIENT OFFER CLIENT CLIENT CLIENT SOLVE SOLVE SEGMENTS OFFER CLIENT CLIENT services banking services banking SEGMENTS worth CLIENT CLIENTS CLIENT CLIENTS CLIENT worth individuals (100k-1+mio) SEGMENTS individuals (100k-1+mio) SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS COMPETENCIES, COMPETENCIES, localCLIENT&of branch localCLIENT &of branch branches DISTRIBUTION branches DISTRIBUTION CLIENT ACTIVITIES, CLIENT ACTIVITIES, CLIENT CLIENT CLIENT family office CHANNELS CLIENT SEGMENTS family office bankers CHANNELS bankers SEGMENTS SEGMENTS RESOURCES SEGMENTS RESOURCES SEGMENTS SEGMENTS SEGMENTS SEGMENTS COST COST CLIENT revenueproduct mainly sharing revenueproduct mainly sharing REVENUE REVENUE CLIENT CLIENT CLIENT CLIENT CLIENT CLIENT CLIENT STRUCTURE STRUCTURE SEGMENTS SEGMENTS agreement FLOWS revenues agreement FLOWS revenues SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS © Arvetica Page 35
  • 36. Project Roadmap CLIENT CLIENT UHNWI UHNWI SEGMENT SEGMENT family office family office work out client work out client OFFER OFFER services services presentation presentation CLIENT UHNWI CLIENT UHNWI RELATIONSHIPS relationships set-up CRM tool set-up CRM tool RELATIONSHIPS relationships relationship relationship ACQUISITION ACQUISITION generate prioritized generate prioritized relationship manager relationship manager managers & new managers & new client reception area client reception area CHANNELS CHANNELS prospect list prospect list collaboration process collaboration process office office establish acquisition establish acquisition develop marketing develop marketing training program training program learning process learning process material material client trust, internal client trust, internal internal concept internal concept ACTIVITIES ACTIVITIES team set-up team set-up cooperation cooperation presentation presentation mutli-family office mutli-family office design collaboration design collaboration PARTNER PARTNER partner partner process process REVNUE REVNUE revenue sharing revenue sharing profit center set-up profit center set-up STREAMS STREAMS © Arvetica Page 36
  • 37. “ the only thing that’s not designed is nature ” Dave Kelly, IDEO © Arvetica Page 37
  • 38. “ business people don’t just need to understand designers better; they need to become designers ” Roger Martin, Dean Rotman School © Arvetica Page 38
  • 40. www.arvetica.com business-model-design.blogspot.com © Arvetica Page 40
  • 41. Alexander Osterwalder Before joining Arvetica Alex founded Business Model Design, a consulting boutique specialized in business model innovation. Besides consulting the private sector he was also involved in building up a globally active NGO based in Thailand in the field of knowledge management, HIV/AIDS and malaria. Prior to consulting, Alex worked at the University of Lausanne, as an entrepreneur in the banking sector and as an online journalist for the major Swiss business magazine BILANZ. He holds a PhD and Masters degree of the HEC Business School of the University of Lausanne, Switzerland. Alex is an active member of the IMD based Open World Initiative (OWI). © Arvetica Page 41
  • 42. Waster Water Treatment Example © Arvetica Page 42
  • 43. waste water Canadian treatment offer sales force distribution channel customer segment mining sites system one time revenue stream sales fee © Arvetica Page 43
  • 44. total waste water sell waste water Canadian treatment sales force treatment system mining sites management recurring one time servicefee sales fee © Arvetica Page 44
  • 45. partner network suppliers client follow-up relationship sell waste water water treatment build treatment Canadian core capabilities core activities treatment sales force knowledge systems mining sites system production one time sales costs costs fee © Arvetica Page 45
  • 46. suppliers follow-up call center water build total waste water error free Canadian treatment dispatch treatment treatment sales force systems mining sites knowledge repair teams systems management development variable costs production recurring of repair costs service fee services © Arvetica Page 46

Editor's Notes

  1. http://www.flickr.com/photos/wrote/1496412666/ creative commons attribution license Mathias Klang
  2. http://www.napoleonguide.com/maps_hmheilsberg.htm
  3. http://en.wikipedia.org/wiki/Image:Brueghel-tower-of-babel.jpg
  4. http://www.flickr.com/photos/barretthall/331459910/ CC Attribution License Rob
  5. http://www.cutter.com/content-and-analysis/resource-centers/enterprise-architecture/sample-our-research/index/ear0503side02figb.gif
  6. Amazon S3 Here are the facts: This is a web service, and so Amazon is not releasing a customer facing service. They are offering standards-based REST and SOAP web services interfaces for developers. Entire classes of companies can be built on S3 that would not have been possible before due to infrastructure costs for the developer. Virtually any file type is allowed, up to 5 GB. Files may be set as public, shared or private and will have a unique URL. Pricing is cheaper than anything else I’ve seen: $0.15 per GB of storage per month, and $0.20 for each GB of data transferred up or downstream. This translates to $15 per month for 100 GB of storage, net of any transfer fees (to move that much data on to S3 would be a one time cost of $20). These prices are going to be significantly below the development and ongoing costs for small or medium sized storage projects - meaning a lot of the front end services I’ve previously profiled will be much better off moving their entire back end to S3.
  7. http://www.flickr.com/photos/framesniper/153464496/ CC Attribution-NoDerivs License Jeff Ryan
  8. Amazon S3 Here are the facts: This is a web service, and so Amazon is not releasing a customer facing service. They are offering standards-based REST and SOAP web services interfaces for developers. Entire classes of companies can be built on S3 that would not have been possible before due to infrastructure costs for the developer. Virtually any file type is allowed, up to 5 GB. Files may be set as public, shared or private and will have a unique URL. Pricing is cheaper than anything else I’ve seen: $0.15 per GB of storage per month, and $0.20 for each GB of data transferred up or downstream. This translates to $15 per month for 100 GB of storage, net of any transfer fees (to move that much data on to S3 would be a one time cost of $20). These prices are going to be significantly below the development and ongoing costs for small or medium sized storage projects - meaning a lot of the front end services I’ve previously profiled will be much better off moving their entire back end to S3.
  9. Amazon S3 Here are the facts: This is a web service, and so Amazon is not releasing a customer facing service. They are offering standards-based REST and SOAP web services interfaces for developers. Entire classes of companies can be built on S3 that would not have been possible before due to infrastructure costs for the developer. Virtually any file type is allowed, up to 5 GB. Files may be set as public, shared or private and will have a unique URL. Pricing is cheaper than anything else I’ve seen: $0.15 per GB of storage per month, and $0.20 for each GB of data transferred up or downstream. This translates to $15 per month for 100 GB of storage, net of any transfer fees (to move that much data on to S3 would be a one time cost of $20). These prices are going to be significantly below the development and ongoing costs for small or medium sized storage projects - meaning a lot of the front end services I’ve previously profiled will be much better off moving their entire back end to S3.
  10. http://www.flickr.com/photos/fcrippa/884383108/ Creative Commons – Attribution License Francesco Crippa
  11. Amazon S3 Here are the facts: This is a web service, and so Amazon is not releasing a customer facing service. They are offering standards-based REST and SOAP web services interfaces for developers. Entire classes of companies can be built on S3 that would not have been possible before due to infrastructure costs for the developer. Virtually any file type is allowed, up to 5 GB. Files may be set as public, shared or private and will have a unique URL. Pricing is cheaper than anything else I’ve seen: $0.15 per GB of storage per month, and $0.20 for each GB of data transferred up or downstream. This translates to $15 per month for 100 GB of storage, net of any transfer fees (to move that much data on to S3 would be a one time cost of $20). These prices are going to be significantly below the development and ongoing costs for small or medium sized storage projects - meaning a lot of the front end services I’ve previously profiled will be much better off moving their entire back end to S3.
  12. http://www.flickr.com/photos/judepics/378329050/ Creative Commons – Attribution License Judith