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desi gning
  usine ss mo dels
b

                  d
a course prepare
                    r
by a lex osterwalde
and   yves...
e -business
serv  ice design
s cenario & s torytelling
 t ask analysis
 p rototyping
        service to   business
 from
 ...
3 steps of business model design




 !"   VISUALIZE      #"                   %"                 $"



 !! "#$%&'(#)#*'$+...
business
 model
     ign
        ^
  des
We believe that if managers adopted a design attitude, the
world of business would be different and better
[Boland & Collo...
the desig   ner’s
tool kit ...
analyze from the customer perspective
PARTNER            KEY        OFFER     CUSTOMER          CUSTOMER
NETWORK          ...
Jan Chipchase
    (Nokia)
his main
weapon
India mobile
   study
Rich Ling
(Telenor)
photo usage
   study
do you d  o if you
                   what
                   don’t h ave an
                      nthropo logist or
     ...
(customer) empathy map
                                   what’s on his/her mind?
                                        ...
co-designing
computer-aided designing
computer-aided designing
business
 model
        ^
      rns
pa tte
“ Pattern in architecture
  is the idea of capturing
  architectural design
  ideas as archetypal and
  reusable descripti...
“ long  tail”
   pat tern
it’s about selling less of
         more…
focus on a small
           number of products
sales



           with large volume




        number of products
focus on a large
           number of products
sales



           with low volume




        number of products
the “traditional” record company
  PARTNER               KEY              OFFER           CUSTOMER           CUSTOMER
  NE...
New Ways to Discover & Popularize
            Music…
business model
 PARTNER              KEY             OFFER             CUSTOMER            CUSTOMER
 NETWORK            AC...
37
38
“do uble si ded”
    pat tern
^
        Two-sided business ...
                              according to Evans




                two distinct sets of...
back t
       o the
             ...



         who
             area
the business model canvas
   KEY             KEY        OFFER     CUSTOMER          CUSTOMER
PARTNERS         ACTIVITIES  ...
back t
       o the
             ...



        what
             area
the business model canvas
   KEY             KEY         OFFER        CUSTOMER          CUSTOMER
PARTNERS         ACTIVITI...
Transaction costs




“ main economic role of multi-
   Reducing transactions costs is

  sided platforms
                ...
audience building
cost saving
match making
http://www.pbase.com/srijith/image/88605858
the business model canvas
   KEY             KEY               OFFER           CUSTOMER          CUSTOMER
PARTNERS        ...
back t
       o the
             ...



how much
             area
the business model canvas
   KEY             KEY        OFFER      CUSTOMER          CUSTOMER
PARTNERS         ACTIVITIES ...
customers       who
pays?
        media
&
television readers/viewers
                           adverFsers                ...
back t
       o the
             ...



         how
             area
“ Value networks rely on a mediating
  technology  to link clients who are or
  wish to be interdependent [...] and
  faci...
the business model canvas
   KEY
PARTNERS
                   KEY
                 ACTIVITIES
                             ...
the business model canvas
    KEY             KEY           OFFER           CUSTOMER             CUSTOMER
 PARTNERS       ...
59
“f ree”
pat tern
farm2.static.flickr.com/1177/683534694_3c70cebe3b_o_d.jpg
65
double-sided
         market

r evi ew ✓two sets of customers
         ✓who need each other
         ✓with network externa...
value
                             NETWORK PROMOTION
    Nobs
   Network                                                  ...
Business Model Design
Business Model Design
Business Model Design
Business Model Design
Business Model Design
Business Model Design
Business Model Design
Business Model Design
Business Model Design
Business Model Design
Business Model Design
Business Model Design
Business Model Design
Business Model Design
Business Model Design
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Business Model Design

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Business Model Design

  1. 1. desi gning usine ss mo dels b d a course prepare r by a lex osterwalde and yves pigneur
  2. 2. e -business serv ice design s cenario & s torytelling t ask analysis p rototyping service to business from ueprint & v isualization bl service innovation ess model innovation busin busin ess model usiness mo del design ‣b
  3. 3. 3 steps of business model design !" VISUALIZE #" %" $" !! "#$%&'(#)#*'$+,-) !! 2$$#$$) !! (&2',$30&/)0,) !! 3.&,),# (.$',#$$)/0"#1) $3&#,-34$)2,") '/7&08#/#,3$)9) ',30)2)7 5#26,#$$#$) 0770&3.,'+#$)) &02"/2
  4. 4. business model ign ^ des
  5. 5. We believe that if managers adopted a design attitude, the world of business would be different and better [Boland & Collopy, 2004]
  6. 6. the desig ner’s tool kit ...
  7. 7. analyze from the customer perspective PARTNER KEY OFFER CUSTOMER CUSTOMER NETWORK ACTIVITIES RELATIONSHIPS SEGMENTS KEY DISTRIBUTION RESOURCES CHANNELS COST STRUCTURE REVENUE STREAMS
  8. 8. Jan Chipchase (Nokia)
  9. 9. his main weapon
  10. 10. India mobile study
  11. 11. Rich Ling (Telenor)
  12. 12. photo usage study
  13. 13. do you d o if you what don’t h ave an nthropo logist or a logist h andy ? socio rf.snoitartsulli
  14. 14. (customer) empathy map what’s on his/her mind? his/her preoccupations his/her worries what he/she thinks what does he/she what does he/she hear? see? what his/her boss says his/her environment what his/her friends say his/her friends what media influences him/her what the market offers him/her what does he/she say? his/her attitude how he/she appears in public what he/she tells others [Source:
XPLANE,
the
visual
thinking
company]
  15. 15. co-designing
  16. 16. computer-aided designing
  17. 17. computer-aided designing
  18. 18. business model ^ rns pa tte
  19. 19. “ Pattern in architecture is the idea of capturing architectural design ideas as archetypal and reusable descriptions. ” Christopher Alexander’s idea
  20. 20. “ long tail” pat tern
  21. 21. it’s about selling less of more…
  22. 22. focus on a small number of products sales with large volume number of products
  23. 23. focus on a large number of products sales with low volume number of products
  24. 24. the “traditional” record company PARTNER KEY OFFER CUSTOMER CUSTOMER NETWORK ACTIVITIES RELATIONSHIPS SEGMENTS finding talent marketing super-star mass market artists & hits distribution channel KEY DISTRIBUTION RESOURCES CHANNELS retail outlets protected content radio & TV COST STRUCTURE REVENUE STREAMS talent huge revenue s “production marketing from few ar tists ”
  25. 25. New Ways to Discover & Popularize Music…
  26. 26. business model PARTNER KEY OFFER CUSTOMER CUSTOMER NETWORK ACTIVITIES RELATIONSHIPS SEGMENTS ies niche platform platform for communit segments management musicians & fans/buyers content niche producers KEY DISTRIBUTION segments RESOURCES CHANNELS match-making with taste breadth of online niche platform segments COST STRUCTURE REVENUE STREAMS small revenu music platform es from many subscription maintenanc e artists service?
  27. 27. 37
  28. 28. 38
  29. 29. “do uble si ded” pat tern
  30. 30. ^ Two-sided business ... according to Evans two distinct sets of customers who need each other who can’t get together easily on their own and for which a platform reduces network effects [Evans, 2006]
  31. 31. back t o the ... who area
  32. 32. the business model canvas KEY KEY OFFER CUSTOMER CUSTOMER PARTNERS ACTIVITIES RELATIONSHIPS SEGMENTS buyers KEY DISTRIBUTION RESOURCES CHANNELS sellers COST STRUCTURE REVENUE STREAMS
  33. 33. back t o the ... what area
  34. 34. the business model canvas KEY KEY OFFER CUSTOMER CUSTOMER PARTNERS ACTIVITIES RELATIONSHIPS SEGMENTS buyers offer for RESOURCES buyers KEY DISTRIBUTION CHANNELS offer for sellers sellers COST STRUCTURE REVENUE STREAMS
  35. 35. Transaction costs “ main economic role of multi- Reducing transactions costs is sided platforms ”
  36. 36. audience building
  37. 37. cost saving
  38. 38. match making http://www.pbase.com/srijith/image/88605858
  39. 39. the business model canvas KEY KEY OFFER CUSTOMER CUSTOMER PARTNERS ACTIVITIES RELATIONSHIPS SEGMENTS match buyers KEY making cost DISTRIBUTION RESOURCES CHANNELS saving audience sellers building COST STRUCTURE REVENUE STREAMS
  40. 40. back t o the ... how much area
  41. 41. the business model canvas KEY KEY OFFER CUSTOMER CUSTOMER PARTNERS ACTIVITIES RELATIONSHIPS SEGMENTS KEY DISTRIBUTION RESOURCES CHANNELS COST STRUCTURE revenue from REVENUE STREAMS revenue from sellers buyers
  42. 42. customers who
pays? media
&
television readers/viewers adverFsers adverFsers
 (mainly) credit
cards cardholders merchants merchants
 (mainly) web
aucFons buyers sellers sellers
 (mainly) www.strategy-business.com/press/16635507/03301
  43. 43. back t o the ... how area
  44. 44. “ Value networks rely on a mediating technology  to link clients who are or wish to be interdependent [...] and facilitate exchange relationships among customers The firm provides a networking service.  ” Charles Stabell et al. Configuring value for competitive advantage
  45. 45. the business model canvas KEY PARTNERS KEY ACTIVITIES platform RELATIONSHIPS OFFER CUSTOMER CUSTOMER SEGMENTS management platform promotion service RESOURCESision prov KEY ing DISTRIBUTION CHANNELS COST STRUCTURE REVENUE STREAMS
  46. 46. the business model canvas KEY KEY OFFER CUSTOMER CUSTOMER PARTNERS ACTIVITIES RELATIONSHIPS SEGMENTS platform platform promotion management buyers service cost match saving provisioning KEY DISTRIBUTION RESOURCES making CHANNELS audience sellers building COST STRUCTURE REVENUE STREAMS revenue from revenue from sellers buyers
  47. 47. 59
  48. 48. “f ree” pat tern
  49. 49. farm2.static.flickr.com/1177/683534694_3c70cebe3b_o_d.jpg
  50. 50. 65
  51. 51. double-sided market r evi ew ✓two sets of customers ✓who need each other ✓with network externalities
  52. 52. value NETWORK PROMOTION Nobs Network flow Contract musicians flow SERVICE PROVISIONING flow flow musicians recordings by MJF fit NETWORK Selling recordings INFRASTRUCTURE Contract sponsors fit by Montreux Sounds network by MJF Programming Sponsors Concerts see focus Ticketing flow instruments by MJF tickets by MJF, artists fit flow by MJF, Ticket Corner fit Recording concerts Food & Beverages fit Advertising the MJF by MJF by MJF, caterers, Heineken venues by MFJ, sponsors, media, Production Swiss tourism, Montreux Commerce by MJF by shops share fit Manage infrastructure Merchandising JAZZ by MJF, Municipality Focus: Programming decomposed into its sub-activities (forming a value shop) by MJF flow Manage JAZZ Problem finding by MJF Define concert date and stage to be filled Problem Manage volunteers Evaluation solving by MJF flow Evaluate concert Nobs & staff list music styles and and ticket sales possible artists Legend Put artist in Choose artist Execution program Choice Resource Activity By ACTOR r evi ew ✓platform promotion ✓service provisioning ✓platform management

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