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Business Model Canvas

        @One Enactus Weekend
        April 13, 2013 - Karlsruhe

Workshop: BUSINESS MODEL CANVAS & LEAN START-UP
What are we aiming for?




                © comedy_nose, Flickr.com (CC)
What is a

business model
             ?
What do you think?




                     © @boetter, Flickr.com (CC)
Use
                                    post-its
                                    to collect
                                    ideas.




© Peter Hellberg, Flickr.com (CC)
Def.:


A business model describes the rationale
of how an organization creates, delivers,
and captures value.
                  Business Model Generation, A. Osterwalder, Yves Pigneur, Alan
                  Smith, and 470 practitioners from 45 countries, self published, 2010
create                            deliver                    capture




Source: www2.informatik.hu-berlin.de   Source: bazaardesigns.com   Source:123rf.com




                             value.
Def.:


Or in English: A business model describes
how your company makes money.
                  What’s a startup? First Principles, Steve Blank, Blog article,
                  www.steveblank.com (Retrieved Oct 26, 2012)
9 building blocks




                    Image Source: Alex Osterwalder, JAM
9 building blocks




                    Image Source: Alex Osterwalder, JAM
Our product
is not just a
piece of
cake…it‘s
the whole
cake.




                © Jay Shouldol, Flickr.com (CC)
A business model can be structured into
9 essential building blocks around the
broader areas of

    product
    customer interface
    infrastructure management
    financial
customer segments
                Image Source: Alex Osterwalder, JAM
Image Source: thefunnypicspage.com
value proposition
                    Image Source: Alex Osterwalder, JAM
© CollegeDegrees360, Flickr.com
channels
           Image Source: Alex Osterwalder, JAM
© NASA's Marshall Space Flight Center, Flickr.com
customer relationship
                  Image Source: Alex Osterwalder, JAM
Image Source: relationshiptalk.net
revenue streams
                  Image Source: Alex Osterwalder, JAM
Image Source: consumerwarningnetwork.com
key resources
                Image Source: Alex Osterwalder, JAM
physical




                                                                 financial

                                    © torkildr, Flirckr.com                            © emilio labrador, Flirckr.com




                                                              RESOURCES
                                 intellectual




                                                                                 human

                                                                          © José Goulão, Flirckr.com
© Michael Neubert, Flirckr.com
key activities
                 Image Source: Alex Osterwalder, JAM
ACTIVITIES
 production




                           © Wayan Vota, Flirckr.com




 network-building




                                                                         problem-solving

© sjcockell, Flirckr.com                                Image Source: neotechproducts.com
key partners
               Image Source: Alex Osterwalder, JAM
© SalFalko, Flickr.com
cost structure
                 Image Source: Alex Osterwalder, JAM
costs in $
                                         variable
                                          fixed

                                         volume




© ecstaticist, Flickr.com
business model theatre




                 Image Source: Alex Osterwalder, JAM
Let‘s examine the notion of

value proposition
                              a little closer.
© Alex Osterwalder, Flickr.com
Image Source: Alex Osterwalder, businessmodelgeneration.com
Goal: product-market fit




                           © Alex Osterwalder, Flickr.com
What jobs is she trying to
get done?
(functional, social, emotional etc…)




                                       © Alex Osterwalder, Flickr.com
What pains does she have?
(Emotions, cost, situations, risks…)




                                       © Alex Osterwalder, Flickr.com
What gains is she hoping for?
(functional, social, emotional, costs etc…)




                                              © Alex Osterwalder, Flickr.com
On which products/
services is your VP based?
(in-/tangible, digital/virtual, financial, …)




                           © Alex Osterwalder, Flickr.com
How are they pain killers?
(Emotionen, Kosten, Situationen, Risiken …)




                       © Alex Osterwalder, Flickr.com
How are they delivering
gains?
(funktional, sozial, emotional, Kosten …)




                         © Alex Osterwalder, Flickr.com
Now you do it:
Design a value proposition for the
energy consumption app case.




                              © Alex Osterwalder, Flickr.com
How to use these

design tools
                   properly.
© Carelinamia, Flickr.com
1


    Work on a business model
    canvas for no more than
    15 minutes.

    It forces your to be clear
    and concise.
„If you can‘t explain
   it simply you don‘t
    understand it well
             enough.“
          Albert Einstein, famous quote.
2              Work with post-its. It keeps you flexible.


                                                                                                             pppjsak
                                     Hpopo                                                                   flojnasf
                                     kakdno       Hpopo
                                                                                 pppjsak                     lka
                hoiuad               na e         kakdno
                                                  na e                           flojnasf
                hohasd
hoiuad                                                                           lka
hohasd                                   Hpopo                                                                      pppjsak
                                         kakdno                                                        pppjsak
                                                           Hpopo                                                    flojnasf
                                         na e                                                          flojnasf
                                                           kakdno                                                   lka
                                                                      pppjsak                          lka
                                                           na e
                                                                      flojnasf
    pppjsak    hoiuad                                                 lka
    flojnasf   hohasd
    lka




                                                                                            pppjsak
                                                           pppjsak                          flojnasf
                                             pppjsak       flojnasf                         lka
                                             flojnasf      lka
                                             lka




                                                                                       Hpopo
                         hoiuad
                                                                                       kakdno
                                                                                           Hpopo
                         hohasd
                                  pppjsak                                              na ekakdno
                                  flojnasf                                                 na e
                                  lka
3
   Work with the       …and together with
   canvas by yourself… the whole team.




© Tommy P World, Flickr.com              © jfravel, Flickr.com




   This will clarify consensus & disagreement.
4


    Get feedback from
    others (not only
    friends & familiy).

    It will enrich your work
    dramatically.
5



    A   C   Iterate often to incorporate
            your learnings.

            Management orientation:
    P   D
            Plan-Do-Check-Act.
6
        diverging
        creative
        process
                                                ideas




    Source: annebrogdonportfolio.blogspot.com
7
               converging
                analytical
                  process


    research
                    Source: mostphotos.com
classical
design thinking
     approach.




             Source: ssireview.org
summarized
1                     2                                                                                       3             4
                                                                                                  p
                                                                                                  p
                                                                                                  p
                                                  H                                               j
                                                  p                                               s
                                                  o                                               a
                                                              H               p
                                                  p                                               k
                                                              p               p
                                                  o                                               f
                                                              o               p
                                                  k                                               l
                                      h                       p               j
                                                  a                                               o
                                      o                       o               s
                                                  k                                               j
                                      i                       k               a
                                                  d                                               n
                                      u                       a               k                   a




                                                                                                              Work
                          h                       n           k
                                      a                                       f                       p
                          o                       o                                               s
                                      d                       d               l                       p
                          i                           H                                       p   f
                                      h           n           n               o                       p
                          u                           p                                       p   l
                                      o           a           o               j                       j
                          a                           o                                       p   k
                                      h                       n               n                       s
                          d                           p           H                           j   a
                                      a           e           a               a                       a
                          h                           o           p                           s
                                      s               k                       s               a       k
                          o                                       o
                                      d                       e           p   f                       f
                          h                           a           p                           k
                                                      k           o       p   l               f       l
                          a
                                                      d           k       p   k               l       o
                          s
                                                      n           a       j   a               o       j
                          d
                                                      o           k       s                   j       n
                              p                                           a                           a
                                                      n           d                           n
                              p                                           k                           s
                                  h                   a           n                           a
                              p                                           f                           f
                                  o                               o                           s
                              j                                           l                           l
                                  i                   e           n                           f
                              s                                           o                           k
                                  u                               a                           l
                              a                                           j                           a
                                  a                                                           k
                              k                                           n
                                  d                               e                           a
                              f                                           a
                                  h




                                                                                                              by yourself
                              l                                           s
                                  o
                              o                                           f
                                  h
                              j                                           l
                                  a
                              n                                           k
                                  s
                              a                                           a
                                  d
                              s
                              f
                              l
                              k
                              a
                                                                                          p
                                                                                          p
                                                                      p                   p
                                                                      p                   j
                                                                      p                   s
                                                          p           j                   a
                                                          p           s                   k
                                                          p           a                   f
                                                          j           k                   l
                                                          s           f                   o
                                                                      l                   j




                                                                                                              & in team.
                                                          a
                                                          k           o                   n
                                                          f           j                   a
                                                          l           n                   s
                                                          o           a                   f
                                                          j           s                   l
                                                          n           f                   k
                                                          a           l                   a
                                                          s           k
                                                          f           a
                                                          l
                                                          k
                                                          a




                                                                                  H
                                                                                  p
                                          h
                                                                                  o
                                          o
                                                                                  p   H
                                          i   p                                   o   p
                                          u   p                                   k   o
                                          a   p                                   a   p
                                          d   j                                   k   o
                                          h   s                                   d   k
                                          o   a                                   n   a
                                          h   k                                   o   k
                                          a   f                                   n   d
                                          s   l                                   a   n
                                          d   o
                                                                                      o
                                              j                                   e   n
                                              n
                                                                                      a
                                              a
                                              s
                                                                                      e
                                              f
                                              l
                                              k
                                              a




        15min                             work with post-its.                                                                   feedback


5                         6                                                                               7
    A             C



    P             D
        iterate                           creative                                                                      analytical
Business Modeling & Lean
   How do you combine them to get the most out of it?
Testing Design




                                      Inspration from Alex Osterwalder, Flickr.com
Thank you!

           Questions?

Julius Parrisius
Website: juliusparrisius.wordpress.com
E-Mail: juliusparrisius@gmail.com
Twitter: @JRParrisius

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Business Modeling Tools & Design Process

  • 1. Business Model Canvas @One Enactus Weekend April 13, 2013 - Karlsruhe Workshop: BUSINESS MODEL CANVAS & LEAN START-UP
  • 2. What are we aiming for? © comedy_nose, Flickr.com (CC)
  • 4. What do you think? © @boetter, Flickr.com (CC)
  • 5. Use post-its to collect ideas. © Peter Hellberg, Flickr.com (CC)
  • 6. Def.: A business model describes the rationale of how an organization creates, delivers, and captures value. Business Model Generation, A. Osterwalder, Yves Pigneur, Alan Smith, and 470 practitioners from 45 countries, self published, 2010
  • 7. create deliver capture Source: www2.informatik.hu-berlin.de Source: bazaardesigns.com Source:123rf.com value.
  • 8. Def.: Or in English: A business model describes how your company makes money. What’s a startup? First Principles, Steve Blank, Blog article, www.steveblank.com (Retrieved Oct 26, 2012)
  • 9. 9 building blocks Image Source: Alex Osterwalder, JAM
  • 10. 9 building blocks Image Source: Alex Osterwalder, JAM
  • 11. Our product is not just a piece of cake…it‘s the whole cake. © Jay Shouldol, Flickr.com (CC)
  • 12. A business model can be structured into 9 essential building blocks around the broader areas of product customer interface infrastructure management financial
  • 13. customer segments Image Source: Alex Osterwalder, JAM
  • 15. value proposition Image Source: Alex Osterwalder, JAM
  • 17. channels Image Source: Alex Osterwalder, JAM
  • 18. © NASA's Marshall Space Flight Center, Flickr.com
  • 19. customer relationship Image Source: Alex Osterwalder, JAM
  • 21. revenue streams Image Source: Alex Osterwalder, JAM
  • 23. key resources Image Source: Alex Osterwalder, JAM
  • 24. physical financial © torkildr, Flirckr.com © emilio labrador, Flirckr.com RESOURCES intellectual human © José Goulão, Flirckr.com © Michael Neubert, Flirckr.com
  • 25. key activities Image Source: Alex Osterwalder, JAM
  • 26. ACTIVITIES production © Wayan Vota, Flirckr.com network-building problem-solving © sjcockell, Flirckr.com Image Source: neotechproducts.com
  • 27. key partners Image Source: Alex Osterwalder, JAM
  • 29. cost structure Image Source: Alex Osterwalder, JAM
  • 30. costs in $ variable fixed volume © ecstaticist, Flickr.com
  • 31.
  • 32. business model theatre Image Source: Alex Osterwalder, JAM
  • 33. Let‘s examine the notion of value proposition a little closer.
  • 34. © Alex Osterwalder, Flickr.com
  • 35. Image Source: Alex Osterwalder, businessmodelgeneration.com
  • 36. Goal: product-market fit © Alex Osterwalder, Flickr.com
  • 37. What jobs is she trying to get done? (functional, social, emotional etc…) © Alex Osterwalder, Flickr.com
  • 38. What pains does she have? (Emotions, cost, situations, risks…) © Alex Osterwalder, Flickr.com
  • 39. What gains is she hoping for? (functional, social, emotional, costs etc…) © Alex Osterwalder, Flickr.com
  • 40. On which products/ services is your VP based? (in-/tangible, digital/virtual, financial, …) © Alex Osterwalder, Flickr.com
  • 41. How are they pain killers? (Emotionen, Kosten, Situationen, Risiken …) © Alex Osterwalder, Flickr.com
  • 42. How are they delivering gains? (funktional, sozial, emotional, Kosten …) © Alex Osterwalder, Flickr.com
  • 43. Now you do it: Design a value proposition for the energy consumption app case. © Alex Osterwalder, Flickr.com
  • 44. How to use these design tools properly.
  • 46. 1 Work on a business model canvas for no more than 15 minutes. It forces your to be clear and concise.
  • 47. „If you can‘t explain it simply you don‘t understand it well enough.“ Albert Einstein, famous quote.
  • 48. 2 Work with post-its. It keeps you flexible. pppjsak Hpopo flojnasf kakdno Hpopo pppjsak lka hoiuad na e kakdno na e flojnasf hohasd hoiuad lka hohasd Hpopo pppjsak kakdno pppjsak Hpopo flojnasf na e flojnasf kakdno lka pppjsak lka na e flojnasf pppjsak hoiuad lka flojnasf hohasd lka pppjsak pppjsak flojnasf pppjsak flojnasf lka flojnasf lka lka Hpopo hoiuad kakdno Hpopo hohasd pppjsak na ekakdno flojnasf na e lka
  • 49. 3 Work with the …and together with canvas by yourself… the whole team. © Tommy P World, Flickr.com © jfravel, Flickr.com This will clarify consensus & disagreement.
  • 50. 4 Get feedback from others (not only friends & familiy). It will enrich your work dramatically.
  • 51. 5 A C Iterate often to incorporate your learnings. Management orientation: P D Plan-Do-Check-Act.
  • 52. 6 diverging creative process ideas Source: annebrogdonportfolio.blogspot.com
  • 53. 7 converging analytical process research Source: mostphotos.com
  • 54. classical design thinking approach. Source: ssireview.org
  • 55. summarized 1 2 3 4 p p p H j p s o a H p p k p p o f o p k l h p j a o o o s k j i k a d n u a k a Work h n k a f p o o s d d l p i H p f h n n o p u p p l o a o j j a o p k h n n s d p H j a a e a a a h o p s s k s a k o o d e p f f h a p k k o p l f l a d k p k l o s n a j a o j d o k s j n p a a n d n p k s h a n a p f f o o s j l l i e n f s o k u a l a j a a k k n d e a f a h by yourself l s o o f h j l a n k s a a d s f l k a p p p p p j p s p j a p s k p a f j k l s f o l j & in team. a k o n f j a l n s o a f j s l n f k a l a s k f a l k a H p h o o p H i p o p u p k o a p a p d j k o h s d k o a n a h k o k a f n d s l a n d o o j e n n a a s e f l k a 15min work with post-its. feedback 5 6 7 A C P D iterate creative analytical
  • 56. Business Modeling & Lean How do you combine them to get the most out of it? Testing Design Inspration from Alex Osterwalder, Flickr.com
  • 57. Thank you! Questions? Julius Parrisius Website: juliusparrisius.wordpress.com E-Mail: juliusparrisius@gmail.com Twitter: @JRParrisius