This document summarizes a workshop on business models held on February 2nd, 2012 by Stefano Mizio. The workshop discussed how business plans differ from business models, and that startups focus on searching for a repeatable business model through iteration rather than planning. It was noted that business models can be described using nine building blocks including customer segments, value propositions, channels, customer relationships, revenue streams, key resources, key activities, key partnerships, and cost structure. The workshop emphasized testing business model hypotheses through customer interaction.

1. InnoVits Workshop on Business Model
February 2nd 2012
Stefano Mizio

2. This Talk is Based On
• Business Model Generation
• Steve Blank Blog/materials
• Alexander Osterwalder Blog
• Lean Startup

3. We are all familiar with Business Plan

4. Business Plan
1. A document your investors make you write that
they don’t read
2. A useful place for you to collect your guesses
about your business
• Size of Opportunity
• Customers
• Channel
• Demand Creation
• Revenue/Expenses/Profit
3. The template to look like everyone else when
you do present to VC’s
Steve Blank

5. Product Introduction Model
Concept/ Product Alpha/Beta Launch/
Seed Round Dev. Test 1st Ship
The Leading Cause of Startup Death

6. Product Introduction Model:
Two Implicit Assumptions
Customer Problem : known
Concept/ Product Alpha/Beta Launch/
Seed Round Dev. Test 1st Ship
Product Features : known

7. What Is a Business Model?
 It describes the rationale of how an organization
creates, delivers and captures value
 A diagram that shows all the flows between your
company and its customers
 All on a single sheet of paper
* Alex Osterwalder

8. What’s A Startup?
Search Execute
Scalable Large
Startup Company
A Startup is a temporary organization used to search
for a repeatable and scalable business model
Steve Blank

9. Startups Model, Companies Plan
The Search for the Business Model The Execution of the Business Model
Scalable Large
Transition
Startup Company
- Business Model
- describes “unknowns”
- customer needs
- feature set
- business model
- found by iteration

10. Startups Model, Companies Plan
The Execution of the Business Model
Scalable Large
Transition
Startup Company
Business Plan
- describes “knowns”
- features
- customers/markets
- business model

11. No Business Plan survives first
contact with customers
So Search for a Business Model
Steve Blank

12. The Business Model:
Any company can be described in
9 building blocks
Customers – Offer – Infrastructure - Financial Viability
Alexander Osterwalder

13. CUSTOMER SEGMENTS
which customers and users are you serving?
which jobs do they really want to get done?

14. VALUE PROPOSITIONS
what are you offering them? what is that
getting done for them? do they care?

15. CHANNELS
how does each customer segment want to be reached?
through which interaction points?

16. CUSTOMER RELATIONSHIPS
what relationships are you establishing with each segment?
personal? automated? acquisitive? retentive?

17. REVENUE STREAMS
what are customers really willing to pay for? how?
are you generating transactional or recurring revenues?

18. KEY RESOURCES
which resources underpin your business model? which
assets are essential?

19. KEY ACTIVITIES
which activities do you need to perform well in your
business model? what is crucial?
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20. KEY PARTNERS
which partners and suppliers leverage your model?
who do you need to rely on?

21. COST STRUCTURE
what is the resulting cost structure?
which key elements drive your costs?

22. key activities value customer
proposition relationships
key customer
partners segments
cost revenue
structure key streams
resources channels
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images by JAM

23. Turning Hypotheses to Facts
Test Test
Hypotheses: Hypotheses:
• Product • Problem
• Market Type • Customer
• Competition • User
• Payer
Test Hypotheses:
• Pricing Model / Pricing

24. S.MIZIO@ALUMNIMIP.IT
Innovitamins on Linkedin