THE CANVAS BUSINESS MODEL

Transcription

1 THE CANVAS BUSINESS MODEL Adapted from Alexander Osterwalder Jens Schumacher, Francesco Molinari, 1

2 INTRODUCTION Structure of the Canvas Business Model The 9 Blocks by Osterwalder 2

3 Structure of the Business Model Representation and visualization of business ideas and business models Takes into account the four key elements of a business model Who? What? How? TheEnd User The offer The infrastructure How much?the finance Canvas = inspired by artist who does his artwork on a canvas paint 3

4 9 blocks to evaluate business model The nine blocks describe how a company makes money By editing the 9 fields it is possible to document a business model, to describe, analyse, and understand relationships 4

5 The 9+5 blocks of Alcotra Innovation Next to the 9 blocks of Osterwalder we put: Living Lab Approach Cross Regionality Advance over SOTA Sustainability and Impact Overall Feasibility Assessment adjusted! 5

6 Implementing the business model Turning a business model into a sustainable enterprise, or implementing it in an existing organization To illustrate, the Canvas with Jay Galbraith s Star Model is combined to suggest aspects of organizational design Galbraith specifies five areas: Strategy Structure Processes Rewards People The business model is placed in the middle of the star as a center of gravity that holds the five areas together. 6

7 THE 9+5 BLOCKS Description of the 14 evaluation criteria to be used in Alcotra Innovation 7

8 1.End UserSegments Questions to answer: For whom are we creating value? Who are our most importantend Users? Elaborate: Common needs ofend User Common behaviors Other attributes Reasons why this segment is chosen Define type ofend Usersegment: Mass market Niche market Segmented Diversified Multi-sided platforms (or multi-sided markets) 8

9 2. Value Propositions What value do we deliver to theend User? Which one of ourend User sproblems are we helping to solve? What bundles of products and services are we offering to eachend UserSegment? Define how value creation takes place (characteristics): 1.Newness 2.Performance 3.Customization 4. Getting the job done 5.Design 6.Brand/status 7.Price 8.Cost reduction 9.Risk reduction 10.Accessibility 11.Convenience/usability 9

10 3. Channels Questions to answer: Through which channels do ourend Usersegments want to be reached? How are we reaching them now? How are our channels integrated? Which one works best? Which ones are most costefficient How are we integrating them withend Userroutines? Description: Actual interface withend Users(communication, distribution, sales channels) Which functions are carried out in the channels?(exemplary) Raising awareness amongend Usersabout a company s products and services HelpingEnd Usersevaluate a company s Value Proposition AllowingEnd Usersto purchase specific products and services Delivering a Value Proposition toend Users Providing post-purchaseend Usersupport 10

11 Define actual channel phases: 11

12 4.End UserRelationships Questions to answer: What type of relationship does each of ourend UserSegments expect us to establish and maintain with them? Which ones have we established? How are they integrated with the rest of our business model? How costly are they? Elaborate motivation: (exemplary) End Useracquisition End Userretention Boosting sales (upselling) Define: Type of relationship (personal, automated, etc.) Categories of relationships: Personal assistance Dedicated personal assistance Self-service Automated services Communities Co-creation 12

13 5. Revenue Stream Questions to answer: For what value are ourend Usersreally 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? Generating value streams per: Asset sale Usage fee Subscription fees Lending/Renting/Leasing Licensing Brokerage fee Advertising Type of pricing mechanism defined: Fixed pricing List price Product feature depended End Usersegment depended Volume depended Dynamic pricing Negotiation Yield management Real-time-market Auctions 13

14 6. Key Resources Questions to answer: What Key Resources do our Value Propositions require? Our Distributions Channels? End UserRelationships? Revenue streams? Define types of resources: 1.Physical 2.Intellectual 3.Human 4.Financial 5.Technological Getting resources by: Ownership Leasing Acquiring them from key partners Other 14

15 7. Key Activities Questions to answer: What Key Activities do our Value Propositions require? Our Distribution Channels? End UserRelationships? Revenue streams? Categories: 1.Production 2.Problem Solving 3.Platform/Networking 4.Updating Technology 5.Other 15

16 8. Key Partners Questions to answer: What are our Key Partners? Who are our key suppliers? Which Key Resources are we acquiring from partners? Which key Activities do partners perform? Define type of partnership: 1.Strategic alliance between non-competitors 2.Coopetition: strategic partnerships between competitors 3.Joint ventures to develop new businesses 4.Buyer-supplier relationships to assure reliable suppliers Describe motivation for partnership: (exemplary) Optimization and economy of scale Reduction of risk and uncertainty Acquisition of particular resources and activities 16

17 9. Cost Structure Questions to answer: What are the most important costs inherent in our business model? Which Key Resources are most expensive? Which Key Activities are most expensive? Drivers for business model: Cost driven Leanest cost structure Low price value proposition Maximum automation Extensive outsourcing Value driven Focused on value creation Premium value proposition Set characteristics: Fixed costs (salaries, rents, utilities) Variable costs Economies of scale Economies of scope 17

18 10. Living Lab Approach Questions to answer: How are the users/citizens involved? What participative LL Models/Methods will be used? How is the LL financed? Stakeholder Involvement Are all Stakeholders involved? Has a participative innovation approachbeen chosen? Are Users/Citizens involved in all phases of the project? Are IPR defined? Living Lab difference: Why is the LL approach suited for this project? How will the LL approach affect the product/service outcome 18

19 11. Cross Regionality Questions to answer: Are Partners from different Regions involved? Is there a symmetric distribution of resources? Is this planned as one cross-regional LL or with two independent regional Living Labs joined for this specific trial? Define characteristics of the cross regional partnership.: Other region is used to expand the current market Customization of product/service to regional specialities Co-development and deployment of cross-regional product/service Motivation for cross-regional approach: What is the Value-added for the Partners in the different regions Are the regional contexts addressed? Is the cross-regional management addressed? 19

20 12. Advance over SOTA In which respect are you improving over the sectorial state of the art? Technology innovation Market innovation Social innovation Institutional innovation Other Describe the characteristics of the thematic domain you are acting within: (exemplary) Too few innovations are reaching the market Too few innovations survive after marker launch The potential of people s involvement is largely ignored or discarded Market size is too tiny There are institutional barriers, local markets Language and cultural issues prevent the formation of a European single market Technologies proposed for implementation in the trial Mature (already productised or servitised) Immature (yet to become products or services) Other 20

21 13.Sustainability and Impact Will the consortium form a permanent Living Lab? If so, how shaped? As a business/technology service provider to third parties As a high-tech, R&D laboratory As a University spin-off As a Government initiative As a single enterprise As a business association Other Will the LL be sustainable after the trial is finished? How will the successful trial impact on: The economy Society Public Administration The Academic Sector Etc. of the Regions involved? 21

22 14. Feasibility Assessment How pertinent is the project idea with either of the thematic domains of Alcotra Innovation, namely Smart Energies Intelligent Mobility Creative industries ehealth? How coherent is it with the strategic indications of the Euroregion? How defined / packaged / promptly available are the technologies involved in the trial? How broad is the Living Lab partnership in terms of Territorial coverage Stakeholders End users? How much time is required to perform the various project activities, namely: Trial design Configuration Execution Evaluation? 22

23 THE VALUATION Methodology and results 23

24 Valuation method Excel chart elaborated Each block is evaluated after defined criteria Grades are given 5 = best 1 = worst Aim: Check if business plan is complete and sufficient elaborated The blocks are weighted End UserSegments 5,0% Value Proposition 5,0% Channels 5,0% End UserRelationships 5,0% Revenue Streams 5,0% Key Resources 5,0% Key Partners 5,0% Key Activities 5,0% Cost Structure 5,0% Weighting Living Lab Approach 11,0% Cross Regionality 11,0% Advance over SotA 11,0% Sustainability and Impact 11,0% Overall Feasibility Assessment 11,0% 24

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26 SUMMARY Collection of Keywords 26

27 Infrastructure Offer End User Key Partners Key Activities Value Proposition End UserRelationships End UserSegments Key Resources Channels Cost Structure Revenue Streams Profit equation LL Dimension Living Lab Approach Cross Regionality Advance over the state of the art Sustainability and Impact 27

28 CONCLUSIONS Touring the Valley of Death of Innovation Projects 28

29 Research is making knowledge out of money - Innovation is making money out of research Per Eriksson, Director for the Swedish Agency for Information Systems 85% of product development time is invested in products which never reach the market. Reinhold Bauer: KeinBedarffürPlastikräder. Freitag 43. Only 18 % of the innovations brought into the market prove sustainably successful. Innovation Network Austria Study

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31 Thanks for your attention Francesco Molinari, Jens Schumacher, 31