Fielt - Business Modeling for Start-ups

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Business Design and Innovation Circle

Business Modeling for Start-ups

Dr Erwin Fielt

e.fielt@qut.edu.au

Information Systems School
Queensland University of Technology

Wednesday, 9th of May 2012

Business Design and Innovation Circle
(Brisbane, Australia)
 Organizers:

 Michael Eales

 Alan Scott

 Erwin Fielt

 Harpreet Singh

 Matt Kelly

2 Erwin Fielt - Business Modeling for Start-ups 5/11/2012

Business models?

3 Erwin Fielt - Business Modeling for Start-ups 5/11/2012

Business models!
 Sell the car
 Sell car parts
 Rent the car out
 Taxi
 Advertising
 Mobile coffee bar
 Racing
 First prize in a lottery
 ...

4 Erwin Fielt - Business Modeling for Start-ups 5/11/2012

Source: Hugh MacLeod (http://www.gapingvoid.com/ )

5 Erwin Fielt - Business Modeling for Start-ups 5/11/2012

What about Gillette?

Razor and blade

6 Erwin Fielt - Business Modeling for Start-ups 5/11/2012

What about SouthWest Airlines?

Low-cost carrier

7 Erwin Fielt - Business Modeling for Start-ups 5/11/2012

What about Google Search?

Keyword advertising and auctioning

8 Erwin Fielt - Business Modeling for Start-ups 5/11/2012

What about Threadless?

Customer is the company

9 Erwin Fielt - Business Modeling for Start-ups 5/11/2012

Business model
 A business model describes the value logic of an organization in
terms of creating and capturing customer value

 The central element is the value proposition: the value (or
benefits) the provider promises to deliver to the customers

 Often the focal organization is part of a business network, which
needs to be taken into account.

10 Erwin Fielt - Business Modeling for Start-ups 5/11/2012

How can you ............. a business model in a
holistic and systematic way?

• Describe • Analyse

• Design • Innovate

• Communicate • Etcetera

11 Erwin Fielt - Business Modeling for Start-ups 5/11/2012

Business model frameworks
 The Business Model Canvas (Osterwalder & Pigneur)

 The Four-Box Business Model (Johnson)

 The STOF model (Bouwman, De Vos & Haaker)

 Business Model Schematics (Weill & Vitale)

 Technology/market mediation (Chesbrough & Rosenbloom)

 Entrepreneur’s business model (Morris, Schindehutte & Allen)

 e3-value (Gordijn & Akkerman)

See also the whitepaper “Understanding business models” (Fielt, 2011),
available via http://eprints.qut.edu.au/41609/
12 Erwin Fielt - Business Modeling for Start-ups 5/11/2012

Business Model Canvas

Business Model TV, http://www.youtube.com/watch?v=QoAOzMTLP5s

13 Erwin Fielt - Business Modeling for Start-ups 5/11/2012

Visualisation

Source: Business models Inc (2010)

14 Erwin Fielt - Business Modeling for Start-ups 5/11/2012

Business Model Canvas Sheet
www.businessmodelgeneration.com

Source: Osterwalder & Pigneur (2009)

15 Erwin Fielt - Business Modeling for Start-ups 5/11/2012

Business Model Generation Book
www.businessmodelgeneration.com

Download a free 72 pages preview!
Source: Osterwalder & Pigneur (2009)

16 Erwin Fielt - Business Modeling for Start-ups 5/11/2012

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Improving Customer Performance as a Guide for Business Model Innovation - Case Studies and General Conclusions By Alexander Hohenberg Leechgasse 8, A 8010 Graz Austria – alexander.hohenberg@edu.uni-graz.at Antonio Osvaldo Ciriello Linley Green Road, Herefordshire, UK – antoniociriello@aol.com Wilhelm Graupner Am Freigarten 10, A 8020, Graz Austria – willi_graupner@yahoo.com April 23rd 2012 1 Abstract This report is investigating at how “improving customer performance” is used as a business model innovation approach throughout different industries. As a methodology, case studies and their structured evaluation for commonalities and differences were chosen. Typically “improving customer performance” is established as a new business model which replaces the old ways of doing business. As it is providing better perceived value for the customer it always leads to differentiation of a certain supplier. This is always ONE of the strategic goals. Others can be market entry for a supplier accompanied by shaping a new business or situations driven by the customer, e.g. to outsource a part of the value chain in order to increase profitability or flexibility. Often stronger customer retention is a feature of the new model. A complete survey including conclusions for different markets is provided. Keywords: business model innovation, total shareholder return, customer performance, innovation, differentiation, customer segment, crisis, cost, market entry, customer retention

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Fielt - Business Modeling for Start-ups

1. Business Design and Innovation Circle Business Modeling for Start-ups Dr Erwin Fielt e.fielt@qut.edu.au Information Systems School Queensland University of Technology Wednesday, 9th of May 2012

2. Business Design and Innovation Circle (Brisbane, Australia)  Organizers:  Michael Eales  Alan Scott  Erwin Fielt  Harpreet Singh  Matt Kelly 2 Erwin Fielt - Business Modeling for Start-ups 5/11/2012

3. Business models? 3 Erwin Fielt - Business Modeling for Start-ups 5/11/2012

4. Business models!  Sell the car  Sell car parts  Rent the car out  Taxi  Advertising  Mobile coffee bar  Racing  First prize in a lottery  ... 4 Erwin Fielt - Business Modeling for Start-ups 5/11/2012

5. Source: Hugh MacLeod (http://www.gapingvoid.com/ ) 5 Erwin Fielt - Business Modeling for Start-ups 5/11/2012

6. What about Gillette? Razor and blade 6 Erwin Fielt - Business Modeling for Start-ups 5/11/2012

7. What about SouthWest Airlines? Low-cost carrier 7 Erwin Fielt - Business Modeling for Start-ups 5/11/2012

8. What about Google Search? Keyword advertising and auctioning 8 Erwin Fielt - Business Modeling for Start-ups 5/11/2012

9. What about Threadless? Customer is the company 9 Erwin Fielt - Business Modeling for Start-ups 5/11/2012

10. Business model  A business model describes the value logic of an organization in terms of creating and capturing customer value  The central element is the value proposition: the value (or benefits) the provider promises to deliver to the customers  Often the focal organization is part of a business network, which needs to be taken into account. 10 Erwin Fielt - Business Modeling for Start-ups 5/11/2012

11. How can you ............. a business model in a holistic and systematic way? • Describe • Analyse • Design • Innovate • Communicate • Etcetera 11 Erwin Fielt - Business Modeling for Start-ups 5/11/2012

12. Business model frameworks  The Business Model Canvas (Osterwalder & Pigneur)  The Four-Box Business Model (Johnson)  The STOF model (Bouwman, De Vos & Haaker)  Business Model Schematics (Weill & Vitale)  Technology/market mediation (Chesbrough & Rosenbloom)  Entrepreneur’s business model (Morris, Schindehutte & Allen)  e3-value (Gordijn & Akkerman) See also the whitepaper “Understanding business models” (Fielt, 2011), available via http://eprints.qut.edu.au/41609/ 12 Erwin Fielt - Business Modeling for Start-ups 5/11/2012

13. Business Model Canvas Business Model TV, http://www.youtube.com/watch?v=QoAOzMTLP5s 13 Erwin Fielt - Business Modeling for Start-ups 5/11/2012

14. Visualisation Source: Business models Inc (2010) 14 Erwin Fielt - Business Modeling for Start-ups 5/11/2012

15. Business Model Canvas Sheet www.businessmodelgeneration.com Source: Osterwalder & Pigneur (2009) 15 Erwin Fielt - Business Modeling for Start-ups 5/11/2012

16. Business Model Generation Book www.businessmodelgeneration.com Download a free 72 pages preview! Source: Osterwalder & Pigneur (2009) 16 Erwin Fielt - Business Modeling for Start-ups 5/11/2012

Fielt - Business Modeling for Start-ups

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