The document provides an overview of a workshop on business model design. It introduces business model canvas as a tool to visualize and design business models. Examples are used to illustrate how the canvas can be applied to understand Spotify's business model. Additional tools like vision canvas and context canvas are introduced. Tips are provided on how to use the business model canvas for redesign and innovation, including testing assumptions with customers and applying patterns from other business models.

1. @busmodinc
#bmgen
Practical Tools To
Re-design Your
Business Model
November 20th,
2014

2. WHAT ARE WE
GOING TO DO
TODAY?

3. WE NEED
NEW TOOLS
NEW SKILLS
NEW MINDSET

4. WHY?

5. BUSINESS AS USUAL
IS DEAD

6. BUSINESS PLANS ARE
SO 1980

7. OUR SHARED GOAL, A
BETTER BUSINESS

8. WE WILL GIVE YOU
TOOLS

9. IMPORTANT LESSONS
FOR YOUR BUSINESS

10. ` ARE YOU READY?

11. BUT FIRST
INTRODUCTIONS

12. ` MAAIKE

14. DO`UG

15. WE (RE-) DESIGN
BUSINESSES

16. CREATING
RESULTS WITH
TEAMS

17. DIRECT RESULTS
IN THE BOTTOM
LINE

18. ` ENGINE IN START-UPS

19. ` ENGINE IN CORPORATES

20. HOW IT ALL
STARTED

22. WE WANTED TO
DISRUPT THE
PUBLISHING
INDUSTRY

23. 8 PROTOTYPES

26. 1 MILLION COPIES
30 TRANSLATIONS

27. MOST ADDED
VALUE IN
VALUE
PROPOSITION
DESIGN

28. PUBLISHED
IN OCTOBER

29. WHY IS
BUSINESS
MODELING SO
POPULAR?

31. VUCA – WORLD:
NON-STOP VOLATILITY,
UNCERTAINTY,
COMPLEXITY AND
AMBIQUITY

32. LIKE AN AMUSEMENT
`
PARK: FULL OF
`
THRILLING RIDES. NOT
`
ALL OF THEM ARE FUN.
`
Source: Moments of Impact

34. THE SPEED OF DEVELOPMENTS
`
HAS INCREASED
`

38. YOU WANT TO BRING
THE IDEA TO LIFE!

39. TOGETHER WITH A
DEC
DIVERS TEAM
DEC

40. DECISIONDE CMAKING
AT A LOWER LEVEL
DEC

41. AND JUST DO IT

42. WE NEED
NEW TOOLS
NEW SKILLS
NEW MINDSET

43. TOOL
BUSINESS MODEL CANVAS

44. A BUSINESS MODEL
DESCRIBES THE RATIONALE
OF HOW AN ORGANIZATION
CREATES, DELIVERS, AND
CAPTURES VALUE

45. THE BUSINESS
MODEL CANVAS

46. C1USTOMER SEGMENTS

47. V2ALUE PROPOSITIONS

48. 3CHANNELS

49. C4USTOMER RELATIONSHIPS

50. 5REVENUE STREAMS

51. 6KEY RESOURCES

52. 7 KEY ACTIVITIES

53. 8KEY PARTNERS

54. 9COST STRUCTURE

55. CUSTOM
ER
SEGMEN
TS
KEY
PARTNERS
COST
STRUCTURE
REVENUE
STREAMS
VALUE
PROPOSITIONS
CHANNE
LS
CUSTOMER
RELATIONSH
IPS
KEY
RESOURCE
S
KEY
ACTIVITIES

56. LETS LOOK AT
AN EXAMPLE

58. “WE ARE GOING TO
PROVIDE MUSIC TO
EVERYONE
(ANY TIME, ANY
PLACE)
FOR FREE
IN A LEGAL WAY”

59. THE BUSINESS
MODEL OF
SPOTIFY

60. BUSINESS MODEL CANVAS SPOTIFY
Access to
music via
streaming
and
download
services
Platform
development
and
maintenance
Licensing
agreements
Software and
network
engineers
Rightholders
(labels and
publishers)
Advertisers
3rd party APIs Communities
Internet +
PC
Royalties to Ad fees Subscription
FREE
rightholders
fees PC +
mobile
Salaries
Bandwith
costs
Automated
online
relationship
Global music
fans
Advertising
Platform and
brand
Internet +
mobile

62. HOW CAN THE
BUSINESS
MODEL CANVAS
BE USED?

63. THE BUSINESS
MODEL CANVAS
CAN BE USED
FOR REDESIGN
AND INVENTION

64. HOW DOES IT
CONNECT TO
VISION,
CONTEXT AND
STRATEGY

65. DESIGNING BETTER BUSINESSES
`
`
OUR
PROCESS

66. THESE ARE THE
MINIMUM
STRATEGIC
CONVERSATIONS

68. WHERE IS THE
COMPETITION IN
THE CANVAS?

69. HOW DO I
IDENTIFY
RELEVANT
TRENDS?

70. TOOL
CONTEXT CANVAS

72. WHAT WOULD
YOU LIKE TO
ACHIEVE?

73. WHAT ARE YOUR
GOALS?

74. TOOL
VISION CANVAS

77. LETS LOOK AT
AN EXAMPLE

79. WHAT IS THE
M O S T
I M P O R T A N T
TREND
THEY CONNECT
T O ?

81. CHINA: MAIN COURSE – UNITED STATES:
DESSERT

82. “FROM HIS HOME IN RURAL QINGHE COUNTY, IT
TOOK JUST
TWO YEARS FOR THE 35-YEAR-OLD TO RAKE IN
MORE THAN 10 MILLION YUAN ($1.6 MILLION)
SELLING WOOLEN YARN”

83. WHAT IS THEIR
VISION
?

84. MAKE IT EASY
TO DO BUSINESS
ANYWHERE

85. FIGHT FOR THE SMALL BUSINESS
ENTREPRENEUR

86. 1. CUSTOMERS 2. EMPLOYEES 3.
SHAREHOLDERS

87. 1 9

88. IPO: $25 BILLION, MARKET CAP: $230 BILLION

89. ONE FINAL
WORD OF
BUSINESS
(MODEL)
WISDOM FROM
JACK

90. “MAKE YOUR
CUSTOMER
HAPPY,
NOT YOUR

91. OUR
PROCESS

92. HOW DO WE
DESIGN NEW
BUSINESS
MODELS?

93. THINK LIKE A
DESIGNER!

94. IT’S A JOURNEY
OF
EXPLORATION

95. GENERATE
OPTIONS

97. EXPLORE
OPTIONS

98. THERE IS MORE
THAN 1 OPTION

99. CHECK
Against design criteria

101. REPEAT

102. TECHNIQUE
Scenario planning

103. VISIT THE
FUTURE
FREQUENTLY

105. TECHNIQUE
Apply business model patterns

106. UNDERSTAND
BUSINESS
MODEL
PATTERNS

107. Top 20%
Focus on a small
Number of products,
Each selling in high volume
LONG TAIL
Focus on a lage number of products,
each selling in low volumes
# of products
# of sales
FREE + PREMIUM
=
FREEMIUM

108. TECHNIQUE
Use customer insights

109. UNDERSTAND
CUSTOMERS’
PAIN AND GAIN

111. TECHNIQUE
Fresh watching

112. ‘LEARN’ FROM
OTHER BUSINESS
MODELS

114. TECHNIQUE
What if…

115. ASK YOURSELF
CRAZY
QUESTIONS

116. “WHAT IF…?”

117. OUR
PROCESS

118. TOOL
VALUE PROPOSITION
DESIGNER

119. MOST COMPANIES HAVE
NO IDEA WHO THEIR
CUSTOMER IS. DATA IS
NOT ENOUGH

120. ` WHO IS OUR CUSTOMER?

121. ` WHAT DOES HE WANT?

122. ` WILLINGNESS TO PAY?

126. OUR
PROCESS

127. SO YOU COME UP
WITH A NEW IDEA…

128. AND YOU THINK IT’S
WORTH A FORTUNE

129. BUT IT’S NOT

130. BECAUSE AN
IDEA…

131. OR BUSINESS
MODEL…

132. IS ON PAPER

133. …ONLY A SET OF HYPOTHESES
GUESS

134. IT HAS
NO VALUE

135. SO WHAT DO WE DO

136. THINK ABOUT YOUR NEW
BUSINESS MODEL AS IF
YOU ARE A START-UP

137. WHAT IS ACTUALLY
A START-UP

138. “A START-UP IS
NOT A SMALL
VERSION OF A
LARGE COMPANY.”
Steve Blank

139. A START-UP IS A
TEMPORARY
ORGANIZATION IN
SEARCH FOR A
PROFITABLE, SCALABLE
AND REPEATABLE
BUSINESS MODEL…

140. IT IS ALL
ABOUT
LEARNING!

141. YOU NEED TO
CLARIFY YOUR
ASSUMPTIONS

142. YOU NEED TO
TEST YOUR
ASSUMPTIONS

143. Source: Alex Osterwalder Instagram

144. GO OUT OF THE
BUILDING

145. GO OUT TO TALK TO
CUSTOMERS…

146. WATCH FIRST
THEN ASK

147. LOOK FOR NEEDS
NOT SOLUTIONS

148. STOP FEATURITIS NOW

150. DISRUPT OR
BE
DISRUPTED?

151. IN THE LAST FEW YEARS WE HAVE
BEEN WORKING WITH MORE THAN
400 INTERNATIONAL CLIENTS FROM
START-UPS TO CORPORATE
ORGANIZATIONS ON BUSINESS
MODELING. WE PUT ALL OUR
EXPERIENCES TOGETHER AND CAME
TO THE FOLLOWING 10 TIPS FOR
BUSINESS MODEL INNOVATION.
ENJOY BUSINESS MODELING!
www.businessmodelsinc.com

152. TIP#

153. START WITH THE AS-IS.
MAP THE CURRENT
BUSINESS MODEL,
CONTEXT AND VISION
ON A LARGE POSTER
WITH 3M POST IT
NOTES.

155. TIP#

156. DON’T TRY THIS ALONE.
LET YOUR COLLEAGUES
OR FRIENDS HELP YOU!

158. THE BUSINESS MODEL
CANVAS BRINGS PEOPLE
WITH DIFFERENT
PERSPECTIVES
TOGETHER

159. TIP#

160. LEARN FROM OTHER
BUSINESS MODELS!

162. TIP#

163. APPLY BUSINESS
MODEL PATTERNS.

165. TIP#

166. THINK AS A BUSINESS
MODEL DESIGNER.
DO NOT RELY ON 1
MODEL, BUILD
PROTOTYPES

167. THERE IS NO
SINGLE RIGHT
ANSWER

170. TIP#

171. “VISIT THE FUTURE
FREQUENTLY!”

173. TIP#

175. TIP#

176. “DRAWING IS THE
NEW WRITING”
THINK & WORK
VISUALLY!

179. TIP#

180. DON’T RELY ON
YOUR
ASSUMPTIONS.

181. GET OUT OF THE
BUILDING AND TEST
THEM!

182. TIP#

183. JUST DO IT!

185. USE THE BUSINESS
MODEL CANVAS ;-)

186. THE BUSINESS MODEL CANVAS

188. CONTACT US FOR MORE
INFORMATION AND TOOLS
MAAIKE
DOYER
STRATEGY DESIGNER
Business Models Inc.
Global
maaike@businessmodelsinc.com
+31 6 81 82 25 18
DOUG
MORWOOD
STRATEGY DESIGNER
Business Models Inc.
UK
doug.morwood@businessmodelsinc.com
+44 7921 373 114

189. Thank
you!
Business Models Inc.
www.businessmodelsinc.com