View
508
Download
0
Embed Size (px)
DESCRIPTION
Citation preview
Page 1© Arvetica
How to Describe and Improveyour Business ModelOpeninnovation, Dublin, 24 Oct 2007
© Arvetica, September 2007
Page 2© Arvetica
photos are from flickr under a « creative commons » license - authors are referenced in the comment section
Page 3© Arvetica
“Business model innovation matters” and it is a top priority of CEOs
IBM Global CEO Survey
Page 4© Arvetica
How Do We Describe Business Models Today?
Page 5© Arvetica
Going to War without a Map…
Karl von Clausewitz (~1800)
Page 6© Arvetica
Here
CEOs10°
Managers60°
Here
Staff360°
Ok
Insufficiently Well
Page 7© Arvetica
The Result
Page 8© Arvetica
Could it Be Different?
Page 9© Arvetica
It Exists in Business Process Modeling
Page 10© Arvetica
A Management Toolbox for Business Model Design and Innovation
Page 11© Arvetica
A Template to Describe Business Models
42’941 downloads
Page 12© Arvetica
CLIENTSCLIENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
Describe a Business Model: 9 Building Blocks
OFFEROFFER
COST STRUCTURE
COST STRUCTURE
CLIENTRELATIONSHIPS
CLIENTRELATIONSHIPS
CLIENTSEGMENTS
CLIENTSEGMENTS
COMPETENCIES, ACTIVITIES,
RESOURCES
COMPETENCIES, ACTIVITIES,
RESOURCES
PARTNER NETWORKPARTNER NETWORK
REVENUEFLOWS
REVENUEFLOWS
DISTRIBUTION CHANNELS
DISTRIBUTION CHANNELS
KEY ISSUES TO SOLVE
KEY ISSUES TO SOLVE
Page 13© Arvetica
CLIENTSCLIENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
Example: Bizner Bank
OFFEROFFER
COST STRUCTURE
COST STRUCTURE
CLIENTRELATIONSHIPS
CLIENTRELATIONSHIPS
CLIENTSEGMENTS
CLIENTSEGMENTS
COMPETENCIES, ACTIVITIES,
RESOURCES
COMPETENCIES, ACTIVITIES,
RESOURCES
PARTNER NETWORKPARTNER NETWORK
REVENUEFLOWS
REVENUEFLOWS
entrepreneursentrepreneurs
automatized relationship
automatized relationship
BizBallance (integrated banking
and accounting)
BizBallance (integrated banking
and accounting)
monthly feemonthly fee
ReeleezeeReeleezee
IT infra mgmt account mgmt,
transactions, etc.
IT infra mgmt account mgmt,
transactions, etc.
IT infrastructure, marketing,
partnership costs
IT infrastructure, marketing,
partnership costs
DISTRIBUTION CHANNELS
DISTRIBUTION CHANNELSWebWeb
KEY ISSUES TO SOLVE
KEY ISSUES TO SOLVE
IT, accounting, banking
IT, accounting, banking
Page 14© Arvetica
CLIENTSCLIENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
Xerox 914 Business Model
OFFEROFFER
COST STRUCTURE
COST STRUCTURE
CLIENTRELATIONSHIPS
CLIENTRELATIONSHIPS
CLIENTSEGMENTS
CLIENTSEGMENTS
COMPETENCIES, ACTIVITIES,
RESOURCES
COMPETENCIES, ACTIVITIES,
RESOURCES
PARTNER NETWORKPARTNER NETWORK
REVENUEFLOWS
REVENUEFLOWS
DISTRIBUTION CHANNELS
DISTRIBUTION CHANNELS
KEY ISSUES TO SOLVE
KEY ISSUES TO SOLVE
large companies
large companies
transactionaltransactional
sales teamsales team
1 time sales fee
1 time sales fee
photocopiersphotocopiersR&D manufacturing
R&D manufacturing
regularregular
large companies
large companies
lease high-end photocopiers
lease high-end photocopiers
sales teamssales teams
lease & 4ct per copy (2k+)
lease & 4ct per copy (2k+)
financing & billing
financing & billing
Page 15© Arvetica
REVENUESREVENUESCOSTSCOSTS
KEY ISSUES TO SOLVE
KEY ISSUES TO SOLVE ACTIVITIESACTIVITIES
PARTNERSPARTNERS RELATIONSRELATIONS
OFFEROFFER CLIENTSCLIENTSCHANNELSCHANNELS
total remanufacturing solutions of high end IT platforms
total remanufacturing solutions of high end IT platforms
manufacturingmanufacturing
long term deep
integration
long term deep
integration
brand manufacturers
customers base
brand manufacturers
customers base
manufacturingmanufacturing
IT brand manufacturer
s
IT brand manufacturer
s
sales commission
sales commission
re-marketingre-marketing
inventory management
inventory management
systems knowledgesystems
knowledge
manage secondary
supply chain
manage secondary
supply chain
reverse logisticsreverse logistics
manufacturingmanufacturing
inventoryinventory
« sales » team
« sales » team
brand manufacturers of high end IT
platforms
brand manufacturers of high end IT
platforms
flat feeflat fee
Multis Example
Page 16© Arvetica
The Process
Page 17© Arvetica
find a way to play poker to unlock these models
Prof Henry Chesbrough, Berkeley
“”
Page 18© Arvetica
5 Steps to Business Model Design & Renewal
→ describe
existing business model
→ assess
strengths and weaknesses
→ brainstorm on
improvements & opportunities
→ turn new model
into a project roadmap
11 22 4433VISUALIZEVISUALIZE ASSESSASSESS RENEWRENEW PLANPLAN 55 IMPLEMENTIMPLEMENT
→ implement
project roadmap
Page 19© Arvetica
Visualize
Page 20© Arvetica
Page 21© Arvetica
Visualizing
Page 22© Arvetica
Visualizing Amazon.com
Page 23© Arvetica
REVENUESREVENUESCOSTSCOSTS
KEY ISSUES TO SOLVE
KEY ISSUES TO SOLVE ACTIVITIESACTIVITIES
PARTNERSPARTNERS RELATIONSRELATIONS
OFFEROFFER CLIENTSCLIENTSCHANNELSCHANNELS
selling stuffon the Webselling stuffon the Web
IT infraIT infra
automatized relationshipsautomatized relationships
mass customer
mass customer
data servicesdata services
Amazon.com data grid
Amazon.com data grid
partnerspartners
selling stuffselling stuff
Amazon.comAmazon.com
warehousing & distributionwarehousing & distribution
distributiondistribution
content management
content management
product selectionproduct
selection
product search
product search
marketingmarketing
affiliatesaffiliates
Page 24© Arvetica
Assess, Design & Renew
Page 25© Arvetica
good ideas are widely distributed, nobody has a monopoly on innovation
Prof Henry Chesbrough, Berkeley
“
”
Page 26© Arvetica
Assessing Amazon.com
• where are some of Amazon.com‘s highest costs located?
• what are some of Amazon.com‘s core competencies?
• how could they leverage these competencies?
• how could they leverage investments?
Page 27© Arvetica
REVENUESREVENUESCOSTSCOSTS
KEY ISSUES TO SOLVE
KEY ISSUES TO SOLVE ACTIVITIESACTIVITIES
PARTNERSPARTNERS RELATIONSRELATIONS
OFFEROFFER CLIENTSCLIENTSCHANNELSCHANNELS
selling stuffon the Webselling stuffon the Web
IT infraIT infra
automatized relationshipsautomatized relationships
mass customer
mass customer
data servicesdata services
Amazon.com data grid
Amazon.com data grid
partnerspartners
selling stuffselling stuff
Amazon.comAmazon.com
warehousing & distributionwarehousing & distribution
distributiondistribution
content management
content management
product selectionproduct
selection
product search
product search
marketingmarketing
affiliatesaffiliates
Page 28© Arvetica
Leveraging IT at Amazon.com
Page 29© Arvetica
REVENUESREVENUESCOSTSCOSTS
KEY ISSUES TO SOLVE
KEY ISSUES TO SOLVE ACTIVITIESACTIVITIES
PARTNERSPARTNERS RELATIONSRELATIONS
OFFEROFFER CLIENTSCLIENTSCHANNELSCHANNELS
selling stuffon the Webselling stuffon the Web
IT infraIT infra
automatized relationshipsautomatized relationships
mass customer
mass customer
data servicesdata services
Amazon.com data grid
Amazon.com data grid
partnerspartners
selling stuffselling stuff
Amazon S3Amazon S3
Amazon.comAmazon.com
Internet APIInternet API
Web2.0 companiesWeb2.0
companieswarehousing & distributionwarehousing & distribution
distributiondistribution
content management
content management
product selectionproduct
selection
A9 product search
A9 product search
data storage fees
data storage fees
product search
product search
search engine revenues
search engine revenues
e-commerce sites
e-commerce sites
InternetInternet
marketingmarketing
affiliatesaffiliates
Page 30© Arvetica
Changing the Business Model: Examples
Page 31© Arvetica
CLIENTSCLIENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
Building on Existing Customer Relationships:Walmart Clinics
OFFEROFFER
COST STRUCTURE
COST STRUCTURE
CLIENTRELATIONSHIPS
CLIENTRELATIONSHIPS
CLIENTSEGMENTS
CLIENTSEGMENTS
COMPETENCIES, ACTIVITIES,
RESOURCES
COMPETENCIES, ACTIVITIES,
RESOURCES
PARTNER NETWORKPARTNER NETWORK
REVENUEFLOWS
REVENUEFLOWS
DISTRIBUTION CHANNELS
DISTRIBUTION CHANNELS
KEY ISSUES TO SOLVE
KEY ISSUES TO SOLVE shoppersshoppers
frequent relationshipfrequent
relationship
WalmartClinics
WalmartClinics
health serviceshealth services
medical knowledge and staff
medical knowledge and staff
Page 32© Arvetica
CLIENTSCLIENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
Changing the Game:Cirque de Soleil
OFFEROFFER
COST STRUCTURE
COST STRUCTURE
CLIENTRELATIONSHIPS
CLIENTRELATIONSHIPS
CLIENTSEGMENTS
CLIENTSEGMENTS
COMPETENCIES, ACTIVITIES,
RESOURCES
COMPETENCIES, ACTIVITIES,
RESOURCES
PARTNER NETWORKPARTNER NETWORK
REVENUEFLOWS
REVENUEFLOWS
DISTRIBUTION CHANNELS
DISTRIBUTION CHANNELS
KEY ISSUES TO SOLVE
KEY ISSUES TO SOLVE
theater & opera visiitors
theater & opera visiitors
artistic circus without lions
artistic circus without lions
stage & manage spectacle &
logistics
stage & manage spectacle &
logistics
create art & atmospherecreate art & atmosphere
higher ticket prices
higher ticket prices
Page 33© Arvetica
CLIENTSCLIENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
Demand-Creating Alliances:Intel Processor Platform
OFFEROFFER
COST STRUCTURE
COST STRUCTURE
CLIENTRELATIONSHIPS
CLIENTRELATIONSHIPS
CLIENTSEGMENTS
CLIENTSEGMENTS
COMPETENCIES, ACTIVITIES,
RESOURCES
COMPETENCIES, ACTIVITIES,
RESOURCES
PARTNER NETWORKPARTNER NETWORK
REVENUEFLOWS
REVENUEFLOWS
DISTRIBUTION CHANNELS
DISTRIBUTION CHANNELS
KEY ISSUES TO SOLVE
KEY ISSUES TO SOLVE end usersend usersspeedy
processorsspeedy
processors
partners with ever “heavier” applications
partners with ever “heavier” applications
Page 34© Arvetica
Planning & Implemention
Page 35© Arvetica
CLIENTSCLIENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
CLIENTSEGMENTS
Introducing a Family Office Service through a Partnership
OFFEROFFER
COST STRUCTURE
COST STRUCTURE
CLIENTRELATIONSHIPS
CLIENTRELATIONSHIPS
CLIENTSEGMENTS
CLIENTSEGMENTS
COMPETENCIES, ACTIVITIES,
RESOURCES
COMPETENCIES, ACTIVITIES,
RESOURCES
REVENUEFLOWS
REVENUEFLOWS
DISTRIBUTION CHANNELS
DISTRIBUTION CHANNELS
KEY ISSUES TO SOLVE
KEY ISSUES TO SOLVE
affluent clients (100k-1+mio)
affluent clients (100k-1+mio)
tight personal relationships
tight personal relationships
branches & bankers
branches & bankers
local private banking
local private banking
mainly product revenues
mainly product revenues
ultra high net worth individuals
ultra high net worth individuals
family office services
family office services
revenue sharing agreement
revenue sharing agreement
local branch of family office
local branch of family office
tight relationships with UHNWI
tight relationships with UHNWI
PARTNER NETWORKPARTNER NETWORKPARTNER NETWORKPARTNER NETWORK
independent multi-family
office
independent multi-family
office
Page 36© Arvetica
OFFEROFFER
CLIENT RELATIONSHIPS
CLIENT RELATIONSHIPS
CLIENT SEGMENTCLIENT
SEGMENT
ACTIVITIESACTIVITIES
PARTNERPARTNER
REVNUE STREAMSREVNUE
STREAMS
ACQUISITION CHANNELS
ACQUISITION CHANNELS
Project Roadmap
family office services
family office services
UHNWI relationships
UHNWI relationships
UHNWIUHNWI
client trust, internal cooperation
client trust, internal cooperation
mutli-family office partner
mutli-family office partner
revenue sharingrevenue sharing
relationship managers & new
office
relationship managers & new
office
design collaboration processdesign collaboration process
training programtraining program develop marketing materialdevelop marketing material
internal concept presentationinternal concept presentation
generate prioritized prospect listgenerate prioritized prospect list
work out client presentationwork out client presentation
establish acquisition learning processestablish acquisition learning process
relationship manager collaboration processrelationship manager collaboration process
team set-upteam set-up
client reception areaclient reception area
profit center set-upprofit center set-up
set-up CRM toolset-up CRM tool
Page 37© Arvetica
the only thing that’s not designed is nature
Dave Kelly, IDEO
“”
Page 38© Arvetica
business people don’t just need to understand designers
better; they need to become designers
Roger Martin, Dean Rotman School
“
”
Page 39© Arvetica
Thank You
Page 40© Arvetica
www.arvetica.com
business-model-design.blogspot.com
Page 41© Arvetica
Alexander Osterwalder
Before joining Arvetica Alex founded Business Model Design, a consulting boutique
specialized in business model innovation. Besides consulting the private sector he was also
involved in building up a globally active NGO based in Thailand in the field of knowledge
management, HIV/AIDS and malaria. Prior to consulting, Alex worked at the University of
Lausanne, as an entrepreneur in the banking sector and as an online journalist for the major
Swiss business magazine BILANZ. He holds a PhD and Masters degree of the HEC Business
School of the University of Lausanne, Switzerland. Alex is an active member of the IMD based
Open World Initiative (OWI).
Page 42© Arvetica
Waster Water Treatment Example
Page 43© Arvetica
offer customer segment
revenue stream
distribution channel
waste water treatment system
Canadian mining sites
one time sales fee
sales force
Page 44© Arvetica
sell waste water treatment system
Canadian mining sites
one time sales fee
sales forcetotal waste water
treatment management
Canadian mining sites
recurring service fee
sales force
Page 45© Arvetica
sell waste water treatment system
Canadian mining sites
one time sales fee
sales forcecore activitiescore capabilities
costs
partner network client relationship
build treatment systems
water treatment knowledge
production costs
suppliers follow-up
Page 46© Arvetica
build treatment systems
water treatment
knowledge
production costs
suppliers follow-up
total waste water treatment
management
Canadian mining sites
recurring service fee
sales forcedispatch repair teams
error free systems
development
call center
variable costs of repair services