How to Design an Effective Business Model

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30-minute lecture for idExpress, NOVU & dutch in Dialogues House Amsterdam on June 22, 2011

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  • How to design an effective business modeliDexpress, NOVU & dutch

  • The next 30 minutes will provide you with insights on how to design effective business models with both business logic and creative instinct

  • 34%

    14%

    41%

    3%7%

    Retail and FMCGHigh-tech industryMedia and technologyCreative industryProfessional services

    Publishers, broadcasters, retailers and technology companiesEntertainment, telecom and television production companiesTravel and leisure, architecture, fashion and professional services companiesIndustrial manufacturing, (bio-)technology, science and education, banking and insurance companiesAviation, automotive, engineering and construction companies

    2011

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    Let me introduce myself

    Strategy Consultant: 80% corporate/executive + 20% start-up/new ventures

  • Goal to learn how to design effective business models

    1.Lets meet the canvas>>> and your greatest challenges

    2.Lets think services>>> and use your creative instinct

    3.Lets talk business >>> and bring in your business logic

  • 1The canvasthe players, the game

  • Lets meet the canvas

  • What are the most important costs inherent in our business model? Which Key Resources are most expensive? Which Key Activities are most expensive?

    ATeT]dTBcaTP\b

    Through which Channels do our Customer Segments want to be reached? How are we reaching them now?How are our Channels integrated? Which ones work best?Which ones are most cost-efficient? How are we integrating them with customer routines?

    For what value are our customers really willing to pay?For what do they currently pay? How are they currently paying? How would they prefer to pay? How much does each Revenue Stream contribute to overall revenues?

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  • What are the most important costs inherent in our business model? Which Key Resources are most expensive? Which Key Activities are most expensive?

    ATeT]dTBcaTP\b

    Through which Channels do our Customer Segments want to be reached? How are we reaching them now?How are our Channels integrated? Which ones work best?Which ones are most cost-efficient? How are we integrating them with customer routines?

    For what value are our customers really willing to pay?For what do they currently pay? How are they currently paying? How would they prefer to pay? How much does each Revenue Stream contribute to overall revenues?

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    $0UcTabP[Tb 7^fS^fT_a^eXST_^bc_daRWPbTRdbc^\Tabd__^ac.

  • What are the most important costs inherent in our business model? Which Key Resources are most expensive? Which Key Activities are most expensive?

    ATeT]dTBcaTP\b

    Through which Channels do our Customer Segments want to be reached? How are we reaching them now?How are our Channels integrated? Which ones work best?Which ones are most cost-efficient? How are we integrating them with customer routines?

    For what value are our customers really willing to pay?For what do they currently pay? How are they currently paying? How would they prefer to pay? How much does each Revenue Stream contribute to overall revenues?

    2WP]]T[b

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    $0UcTabP[Tb 7^fS^fT_a^eXST_^bc_daRWPbTRdbc^\Tabd__^ac.

  • What are the most important costs inherent in our business model? Which Key Resources are most expensive? Which Key Activities are most expensive?

    ATeT]dTBcaTP\b

    Through which Channels do our Customer Segments want to be reached? How are we reaching them now?How are our Channels integrated? Which ones work best?Which ones are most cost-efficient? How are we integrating them with customer routines?

    For what value are our customers really willing to pay?For what do they currently pay? How are they currently paying? How would they prefer to pay? How much does each Revenue Stream contribute to overall revenues?

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    $0UcTabP[Tb 7^fS^fT_a^eXST_^bc_daRWPbTRdbc^\Tabd__^ac.

  • What are the most important costs inherent in our business model? Which Key Resources are most expensive? Which Key Activities are most expensive?

    ATeT]dTBcaTP\b

    Through which Channels do our Customer Segments want to be reached? How are we reaching them now?How are our Channels integrated? Which ones work best?Which ones are most cost-efficient? How are we integrating them with customer routines?

    For what value are our customers really willing to pay?For what do they currently pay? How are they currently paying? How would they prefer to pay? How much does each Revenue Stream contribute to overall revenues?

    2WP]]T[b

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    $0UcTabP[Tb 7^fS^fT_a^eXST_^bc_daRWPbTRdbc^\Tabd__^ac.

  • } 44 The Business Model Canvas

    Cost Structure

    Key Partners

    Key Resources

    Channels

    Key Activities

    Value Proposition

    Customer Relationships

    CustomerSegments

    Revenue StreamsWhat are the most important costs inherent in our business model? Which Key Resources are most expensive?

    Which Key Activities are most expensive?

    ATeT]dTBcaTP\b

    Through which Channels do our Customer Segments want to be reached? How are we reaching them now?How are our Channels integrated? Which ones work best?Which ones are most cost-efficient? How are we integrating them with customer routines?

    For what value are our customers really willing to pay?For what do they currently pay? How are they currently paying? How would they prefer to pay? How much does each Revenue Stream contribute to overall revenues?

    2WP]]T[b

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  • Wrap up left-hand side of the business model

    1. Greatest challenge for your value proposition>>> customer orientation and service innovation

    2. Greatest challenge for your key activities>>> process innovation and automation

    3. Greatest challenge for your key resources>>> human resources

    4. Greatest challenge for your key partners>>> managing alliances

    5. Greatest challenge for your cost structure>>> productivity and cost control

    How to design an effective business modeliDexpress, NOVU & dutch

  • Break

    Lets describe your nightmare competitor

  • Goal imagine your ultimate competitor1. Think of a competitor with unlimited resources and working capital

    >>> dont rely on the past2. This competitor has as many valuable relationships as you have

    >>> forget any market barriers3. This competitor is operational in business today

    >>> let go of the status quo4. What would this ultimate competitor look like and how would he act?

    5. What would you do to deal with this competitor (e.g. prevent/defense/become/...)?

    5 minutes, individually

    Break

  • Lets play

  • Goal to learn how to design effective business models

    1.Lets meet the canvas>>> and your greatest challenges

    2.Lets think services>>> and use your creative instinct

    3.Lets talk business >>> and bring in your business logic

  • 2Servicethe concept

  • Lets think services

  • What are the most important costs inherent in our business model? Which Key Resources are most expensive? Which Key Activities are most expensive?

    ATeT]dTBcaTP\b

    Through which Channels do our Customer Segments want to be reached? How are we reaching them now?How are our Channels integrated? Which ones work best?Which ones are most cost-efficient? How are we integrating them with customer routines?

    For what value are our customers really willing to pay?For what do they currently pay? How are they currently paying? How would they prefer to pay? How much does each Revenue Stream contribute to overall revenues?

    2WP]]T[b

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    $0UcTabP[Tb 7^fS^fT_a^eXST_^bc_daRWPbTRdbc^\Tabd__^ac.

  • What are the most important costs inherent in our business model? Which Key Resources are most expensive? Which Key Activities are most expensive?

    ATeT]dTBcaTP\b

    Through which Channels do our Customer Segments want to be reached? How are we reaching them now?How are our Channels integrated? Which ones work best?Which ones are most cost-efficient? How are we integrating them with customer routines?

    For what value are our customers really willing to pay?For what do they currently pay? How are they currently paying? How would they prefer to pay? How much does each Revenue Stream contribute to overall revenues?

    2WP]]T[b

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  • What are the most important costs inherent in our business model? Which Key Resources are most expensive? Which Key Activities are most expensive?

    ATeT]dTBcaTP\b

    Through which Channels do our Customer Segments want to be reached? How are we reaching them now?How are our Channels integrated? Which ones work best?Which ones are most cost-efficient? How are we integrating them with customer routines?

    For what value are our customers really willing to pay?For what do they currently pay? How are they currently paying? How would they prefer to pay? How much does each Revenue Stream contribute to overall revenues?

    2WP]]T[b

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    $0UcTabP[Tb 7^fS^fT_a^eXST_^bc_daRWPbTRdbc^\Tabd__^ac.

  • What are the most important costs inherent in our business model? Which Key Resources are most expensive? Which Key Activities are most expensive?

    ATeT]dTBcaTP\b

    Through which Channels do our Customer Segments want to be reached? How are we reaching them now?How are our Channels integrated? Which ones work best?Which ones are most cost-efficient? How are we integrating them with customer routines?

    For what value are our customers really willing to pay?For what do they currently pay? How are they currently paying? How would they prefer to pay? How much does each Revenue Stream contribute to overall revenues?

    2WP]]T[b

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  • What are the most important costs inherent in our business model? Which Key Resources are most expensive? Which Key Activities are most expensive?

    ATeT]dTBcaTP\b

    Through which Channels do our Customer Segments want to be reached? How are we reaching them now?How are our Channels integrated? Which ones work best?Which ones are most cost-efficient? How are we integrating them with customer routines?

    For what value are our customers really willing to pay?For what do they currently pay? How are they currently paying? How would they prefer to pay? How much does each Revenue Stream contribute to overall revenues?

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  • } 44 The Business Model Canvas

    Cost Structure

    Key Partners

    Key Resources

    Channels

    Key Activities

    Value Proposition

    Customer Relationships

    CustomerSegments

    Revenue StreamsWhat are the most important costs inherent in our business model? Which Key Resources are most expensive?

    Which Key Activities are most expensive?

    ATeT]dTBcaTP\b

    Through which Channels do our Customer Segments want to be reached? How are we reaching them now?How are our Channels integrated? Which ones work best?Which ones are most cost-efficient? How are we integrating them with customer routines?

    For what value are our customers really willing to pay?For what do they currently pay? How are they currently paying? How would they prefer to pay? How much does each Revenue Stream contribute to overall revenues?

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  • How to design an effective business modeliDexpress, NOVU & dutchWrap up right-hand side of the business model

    1. Greatest challenge for your value proposition>>> customer orientation and service innovation

    2. Greatest challenge for your customer relationships>>> esta...