Russian team of Design students from BHSAD (Moscow) created a viable business model for the lamp design concept. A great example of Business by Design!

1. Business model
generation
Made by
Yulia Brazauskayte
Elizaveta Yudina
Ksenia Shlyaga

2. Tetri-tower
+ Interactive
+ Customizable
+ Flat and lightweight
+ Not expensive
+ Eco friendly
+ Safe for children from 4 y.o.

3. 100mm
50mm
50mm
100mm
Tetri
50mm
tower
407mm
400mm
100mm
50mm
Light weight package
x6
50mm
7 mm
150mm
350mm

4. Value Propositions
What value do we deliver to the customer?
Which one of our customer’s problems are we helping to solve?
What bundles of products and services are we offering to each
Customer Segment?
Which customer needs are we satidfying?
characteristics
Newness nd
Tre io n)
a ct
Performance
te r
Customization “Getting the
(i n
Job Done” Design
Brand/Status
Price
Cost Reduction
Risk Reduction
Accessibility Convenience/
Usability
Trendy
The consumer became not only well-versed in the proposed goods but
he became also very moody. He has definitely lacking in conventional
products, which were previously. Therefore, in the foreground - interac-
tivity. Products help not only being satisfied with the needs and solve the
problems and but also include interaction with the user.

5. Customer Segments
For whom are we creating value?
Who are our most important customers?
Mass Market
Niche Market
Segmented Diversified
Multi-sided Platform
eks To u r
ng e ists
De sig
I
D esign
Version with Russian architecture
Designers
made stuff
lovers
Young
trendy families

6. Customer Relationships
What type of relationship does each of our Customer Segments expect
us to establish and maintain with them?
Which ones have we established?
How are they integrated with the rest of our business model?
How costly are they?
examples:
Personal assistance
Dedicated Personal Assistance
Self-Service
r vic e
Automated Services Communities
e l f-se
Co-creation
S
I nte r ati ve
c o- c re atio n

7. Channels
Through which Channels do our Customer Segments want to be reached?
How are we reaching them now?
How are our Channels integrated?
Which ones work best?
Which ones are most cost-efficient?
How are we integrating them with customer routines?
channel phases:
1. Awareness
De s i g n
How do we raise awareness about our
company’s products and services?
2. Evaluation
s h ops
How do we help customers evaluate our
organization’s Value Proposition?
3. Purchase
How do we allow customers to purchase
specific products and services?
4. Delivery
How do we deliver a Value Proposition to
customers?
Ou r
5. After sales
How do we provide post-purchase customer
support?
i nte r n et De s i g n
I nte r n et s h op m a r kets
s h ops

8. 14 shops in Moscow
We are constantl
y in search of ne
products. If your w ideas and
product meets o
- originality, uniq ur requirements
ueness, impecc
waiting for inform able quality,
ation at product@
First of all we are respublica.ru.
interested in the
categories - lifes following produc
tyle, stationery t
supplies, gadge and office
ts.
«APPLE» Light YUBZ Mood Travel Light
3050 RUB 1810 R
Republica - a long-term project which aims to create a network for the Russian
market of new books and music stores, guaranteeing end-user quality and
comfort. Republica - a social project that combines modern people seeking
edification and takes a proactive stance, not indifferent to what is happening
around them. Republica is for those who prefer to be first among equal.

9. Kawai Factory is actively cooperating
with other domestic and foreign design
studios and production associations,
which issue popular with our products
that we offer our customers.
Kawaii factory
http://www.kawaiifactory.ru/
Creative Association Kawai Factory designs, manufactures and sells handbags,
accessories, gifts.
Average price 1000 RUB
The product range: gifts,original presents, watch, all for apple, purses, covers,
office, bags, laptop, magnets,cups, accessories, umbrellas, In traveling, for auto,
home, perfumery, postcards, cream, applications, games, clothing,In the holiday.

10. 3 shops in Moscow
DesignBoom
http://www.design-boom.ru
DesignBoom - this is a new format for the Russian market design-shop. The main idea
of the project - to provide design high quality product at an affordable price. If earlier
designer items can only be seen in the pictures in the magazines and book on foreign
websites, now you can see these things in person, touch and then buy, if anything like it.
Average price 5000
The product range: original works, game, umbrellas, bags,
kitchen, serving,bar,decoration, lighting, furniture, household
equipment, audio, outdoor, office, for animals.

11. 6 shops in Moscow
Offers of cooperation,
as well as ideas and
inventions send here:
news@buro-nahodok.ru
Buro nahodok
http://www.buro-nahodok.ru/
Here there is no usual categories, such as “unique gifts for men” or “unique
gifts for my birthday,” but the fact and interesting look. We do not have
anything familiar. Buro nahodok will only include the most unusual and
original gifts: often touching, sometimes challenging, sometimes crazy, but
always emotional.
Average price 1500
The product range: original works, games, gifts decoration, lighting,
furniture, household equipment, audio, outdoor, office.

12. Fairs and Open markets http:/
/enjoy-me.ru/ http:/
/storystore.ru/ http:/
/designgoods.ru/
EnjoyMe - Shop of unusual, Our philosophy - a commitment The purpose of the presentation of
creative and fun gifts, with a to the stylish, modern, non- our store is on the domestic market
huge selection of amazing and trivial design, which in its of high quality designer goods world-
at the same time functional entirety emphasizes the dignity class quality at democratic prices.
objects. Fun souvenirs and of each individual item. Every Products with design awards.
designer fashion, as well as item from our store will be able
unusual creative gifts. New to become a worthy exclusive «Leti 2»
ideas, reasonable prices and decoration of your interior. table lamp
the highest quality - these are 14 220 Rub
the features that characterize
all the products that our site is Contra Forma
original gifts. UHU Light
2 200 Rub
Christmas Fairs in Moscow lamp for reading «Organic»
"Little House" Oil Lamp
3 978 Rub 4 220 Rub
Calligaris
Carina
5 850 Rub Portable lamp
Svetosfera «Jerry»
1 100 Rub 5 990 Rub
BHSAD Fairs

13. Key Activities
What Key Activities do our Value Propositions require? Our Distribution
Channels?
Customer Relationships?
Revenue streams?
categories
Production
Problem Solving Platform/
Network
Ma r keti n g
O bje cts
fo r s a le
ratio n P ro du c t li ne
p repa m e nt
de ve l op

14. Cost Structure
What are the most important costs inherent in our business model?
Which Key Resources are most expensive?
Which Key Activities are most expensive?
is your business more:
Cost Driven
(leanest cost structure, low price value proposition,
maximum automation, extensive outsourcing)
Value Driven
( focused on value creation, premium value proposition)
sample characteristics:
Fixed Costs (salaries, rents, utilities)
Variable costs Ma rk eti n g
Economies of scale
Economies of scope
Bra n d
deve l o p m e nt
P ro du ctio n

15. prime cost
= + + + +
Cardboard LEDs Tracing paper PVA Glue on/off button
102.57 Rub 60 Rub 1 Rub 6.08 Rub battery holder
cabels
Beermat Board Flexible silicon led strip Tracing paper Glue 40gr
+
34.19 Rub/ Sheet 50 Rub / Meter 420x20m 6.08 RUB per 1
70x100 mm 35gr / m in package 72
500 mg Price: 64,88 RUB
1,15 mm Shenzhen Good http://www.lotos.
Electronics Co., Ltd. su/index.html
100 sheets in a pack http://papkiskrepki.ru/
http://www.bereg.net
~300 Rub
Laser Cutting prime cost
per lamp
aprox. 100
rub/lamp
Laser cutting
3 mm cardboad - 11 RUB/m
http://laser-company.ru

16. cost estimation
Fixed cost Initial outlay
Office rent ~ 30000-40000 Rub/Month Laser cutting machine ~ 200 000 Rub
Transportation ~ 500 Rub/day Internet shop creaing ~ 30 000Rub
Materials ~ 200 Rub/Lamp Brand building ~ 40 000 Rub
2 workers ~ 50000Rub/Month 4 month of advertising on social networks ~ 20 000Rub
Web site promotion ~ 15 000Rub
Advertising leaflets
Web Site Support 3000Rub/Year

17. How much money do we need?
Internet Shop
30 000 Rub
400 000Rub
Brand Building
40 000 Rub
3 month
office rent & salaries
Initial batch 240 000 Rub
300 pieces
90 000 Rub

18. Key Resources
What Key Resources do our Value Propositions require?
Our Distribution Channels? Customer Relationships?
Revenue Streams?
types of resources
Physical
Intellectual (brand patents,
copyrights, data) Human
et fo r
Financial
Bud g
St a r t up
Laser
cu tti n g
Bra n d

19. Key Partners
Who are our Key Partners?
Who are our key suppliers?
Which Key Resources are we acquiring from partners?
Which Key Activities do partners perform?
motivations for
partnerships:
Optimization and economy
Reduction of risk and
uncertainty
Su pp l ie rs i b u to rs
Acquisition of particular
D ist r
resources and activities
http://www.bereg.net De s i g n
s h ops
http://papkiskrepki.ru/
Shenzhen Good Electronics Co., Ltd
http://www.lotos.su/index.html
http://laser-company.ru

20. Revenue Streams
For what value are our customers really willing to pay?
For what do they currently pay?
How are they currently paying?
How would they prefer to pay?
How much does each Revenue Stream contribute to overall revenues?
types: fixed pricing: dynamic pricing:
Asset sale List Price Negotiation( bargaining)
Usage fee Product feature Yield Management
Subscription Fees dependent Customer Real-time-Market
Lending/Renting/Leasing segment dependent Volume
Licensing dependent
e e ds
Brokerage fees Advertising
P ro c
f ro m s a le
flo ati n g pric es

21. Designed by: Yulia Brazauskayte
Day Month Year
The Business Model Canvas
On:
Designed for: Professional Development & Employability module.
Product design, Level 5. Yelizaveta Yudina No.
Ksenia Shlyaga Iteration:
Key Partners Key Activities Value Propositions Customer Relationships Customer Segments
Who are our Key Partners? What Key Activities do our Value Propositions require? What value do we deliver to the customer? What type of relationship does each of our Customer For whom are we creating value?
Who are our key suppliers? Our Distribution Channels? Which one of our customer’s problems are we helping to solve? Segments expect us to establish and maintain with them? Who are our most important customers?
Which Key Resources are we acquiring from partners? Customer Relationships? What bundles of products and services are we offering to each Customer Segment? Which ones have we established?
g
Marketin
Mass Market
Which Key Activities do partners perform? Revenue streams? Which customer needs are we satisfying? How are they integrated with the rest of our business model? Niche Market
Segmented
motivations for partnerships:
Optimization and economy
categories
Production
characteristics
Newness
How costly are they? Diversified
Multi-sided Platform
Reduction of risk and uncertainty Problem Solving Performance examples
Customization Personal assistance
ne
Acquisition of particular resources and activities Platform/Network
roduct li
“Getting the Job Done” Dedicated Personal Assistance
Design Self-Service
P
Brand/Status Automated Services
Price Communities
nt
velopme
Cost Reduction Co-creation
Self Design
Risk Reduction
de
Accessibility
Distributors
Convenience/Usability
service geeks
Objects Trend interactive
Design for sale (interactio
n)
co-creation I
shops preparat
ion
Design
Key Resources Channels
What Key Resources do our Value Propositions require? Through which Channels do our Customer Segments
Our Distribution Channels? Customer Relationships? want to be reached?
Supplier Revenue Streams? How are we reaching them now?
Self service
How are our Channels integrated?
http://www
s types of resources
Physical
Which ones work best?
Budget
Intellectual (brand patents, copyrights, data)
.bereg.ne
Human
Which ones are most cost-efficient?
http://pap
kiskrepki.
t
Financial
(after sales)
How are we integrating them with customer routines?
Tourists
ru/
Shenzhen
for
channel phases:
Good
1. Awareness
Electronic
Internet
How do we raise awareness about our company’s products and services?
s Co., Ltd
2. Evaluation
Start up
http://www
tion
How do we help customers evaluate our organization’s Value Proposition?
.lotos.su/i 3. Purchase
ndex.
c
How do we allow customers to purchase specific products and services?
shops
odu
html
4. Delivery
How do we deliver a Value Proposition to customers?
Pr
5. After sales
http://lase
How do we provide post-purchase customer support?
r-compan
y.ru
Brand Design
markets Design
shops
Cost Structure Revenue Streams
What are the most important costs inherent in our business model? For what value are our customers really willing to pay?
g
Marketin Producti
on Proceeds
Which Key Resources are most expensive? For what do they currently pay?
Which Key Activities are most expensive? How are they currently paying?
How would they prefer to pay?
e
from sal
is your business more:
Cost Driven (leanest cost structure, low price value proposition, maximum automation, extensive outsourcing)
How much does each Revenue Stream contribute to overall revenues?
Brand
Value Driven ( focused on value creation, premium value proposition)
Logistics
sample characteristics: types: fixed pricing dynamic pricing
Asset sale List Price Negotiation( bargaining)
nt
Fixed Costs (salaries, rents, utilities)
developme
Variable costs Usage fee Product feature dependent Yield Management
Economies of scale Subscription Fees Customer segment dependent Real-time-Market
Economies of scope Lending/Renting/Leasing Volume dependent
Licensing
Brokerage fees
Advertising
floating prices
www.businessmodelgeneration.com
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