Bep class session3

BUSINESS

ENTREPRENEURSHIP

CLASS

LECTURE SLIDES

FALL 2013

ERDEM OVACIK

Erdem Ovacik – Business Entrepreneurship Project – Fall 2013 2

BUSINESS MODEL GENERATION – THE CANVAS





THE ‘LEAN’ CANVAS


WHO ARE OUR MOST IMPORTANT CUSTOMERS?

Two sided:2 or more interdependent customersEx: Credit Card holders & merchants

Diversified:Unrelated groupsEx: Amazon

Niche:Specific specialized segmentsEx: car part manufacturers

Segmented:Slightly different problemsEx: Credit Suisse Retail Banking

Mass:One broad groupEx: Milk


WHAT VALUE DO WE PROPOSE?

New Service Cell phones, ethical investment funds.

Performance PC market, light bulbs, energy efficient equipment

Customization Threadless, car market, MYC4

Payment per use RollsRoyce engines, subscription software

Design Swatch, Mini

Brand / Status Rolex, Bentley, Louis Vuitton

Price Ryanair, free email

Cost reduction Salesforce software on the cloud

Risk reduction IT service level guarantees, car 1-yr service guarantee

Accessibility 7Eleven in Denmark, NetJets

Convenience / Usability iPod, Google Search & Mail


WHICH CHANNELS BEST SUITED TO REACH CUSTOMERS?

Own Channel

Partner Channel

Direct Indirect

Sales force

Web sales

Own stores

Partner stores

Wholesaler


Awareness

Evaluation Purchase Delivery After

sales

CHANNEL DEVELOPMENT STAGES

Developing channels takes time!


WHAT KIND OF RELATIONSHIPS WITH CUSTOMER ARE MOST VIABLE?

Personal assistance(dedicated vs not-)

Self- service

Automated services (stimulates personal care)

Communities / co-creation(peer reviews, peer-recommendation)


HOW MUCH AND HOW ARE YOUR CUSTOMERS GOING TO PAY?

Asset sale Subscription

Pay for use

Licensing Advertising

Rent / lease / lend Brokerage


PRICING STRATEGIES

Fixed Menu Pricing

(prices pre-defined based on certain

variables)

Dynamic Pricing(price based on market

conditions)

• List price

• Product/feature dependent (upgrade for new features)

• Customer segment dependent (price discrimination)

• Volume dependent (get 3 for 2)

• Negotiation

• Yield management (plane seats, hotel booking)

• Real time market (Commodity markets)

• Auctions (Google and Facebook Ads)


KEY RESOURCES

Physical Assets

Intellectual asset, copyright, code, knowledge

Relationships, Trust, Brand recognition

The team with their skills and motivations

Petty cash


KEY ACTIVITIES

Production.

Value: quality, flexibility, lean (not wasteful), just in time

Problem solving.

Value: knowledge management, continuous training

Platform.

Value: Match demand & supply, security, performance


KEY PARTNERSHIPS

Strategic Alliance non-competitors

Coopetition alliance betw. competitors

Joint ventures develop new biz

Buyer / supplier reliable sales / supplies

TYPES

WHY Acquisition of particular resources or activities (ie, google motorola)

Optimization and economies of scale (Starbucks buys coffee)

Reduction of risk and uncertainty (Touch screen manufacturer)


COST STRUCTURE

Cost-driven versus Value-driven business: different sensitivity around cost

vs

Fixed costs Variable costsEconomies of scale

Economies of scope

Office, factory Labor, energy Bulk purchase is cheaper

Important concepts:

Synergies between business lines


UNTIL END OF SUNDAY

1. Your business canvas – use the lean canvas

a. Conduct research for each field

b. Write down your thoughts for each of the field / boxes in a vertical text

c. Then make the summary of your thoughts on a PowerPoint

2. Read Effectuation Ch 4, 11 and 12

Erdem Ovacik – Business Entrepreneurship Project – Fall 2013