Business Model Generation. Alexander Osterwalder & Yves Pigneur (2010) Hoboken, NJ: John Wiley & Sons, Inc.

Transcription

1 Business Model Generation Alexander Osterwalder & Yves Pigneur (2010) Hoboken, NJ: John Wiley & Sons, Inc.

2 Business Model

3 Value Propositions O What value do we deliver to the customer? O Which one of our customer s problems are we helping to solve? O What bundles of products and services are we offering to each Customer Segment? O Which customer needs are we satisfying? Differentiation

4 Channels O Through which Channels do our Customer Segments want to be reached? O How are we reaching them now? How are our Channels integrated? Which ones work best? O O Which ones are most costefficient? How are we integrating them with customer routines? Sales Marketing

5 Customer Segments O For whom are we creating value? O Who are our most important customers?

6 Customer Relationships O What type of relationship does each of our Customer Segments expect us to establish and maintain with them? O Which ones have we established? O How are they integrated with the rest of our business model? O How costly are they? Customer acquisition Customer retention Boosting sales (upselling)

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

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9 Wii versus PS/Xbox High Performance Console Switching Costs Hardcore Gamers Console Audience Retailer Game Developers Royalties Hardware Sales At A Loss

10 Wii versus PS/Xbox Family Console Switching Costs Casual Gamers Console Audience & Cheap Development Costs Retailer Game Developers Royalties Profitable Hardware Sales

11 Key Activities What Key Activities do our Value Propositions require? O Our Distribution Channels? O Customer Relationships? O Revenue streams?

12 Key Resources What Key Resources do our Value Propositions require? O Our Distribution Channels? O Customer Relationships? O Revenue Streams?

13 Key Partners O Who are our Key Partners? O Who are our key suppliers? O Which Key Resources are we acquiring from partners? O Which Key Activities do partners perform?

14 Cost Structure O What are the most important costs inherent in our business model? O Which Key Resources are most expensive? O Which Key Activities are most expensive?

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17 Free Advertising Platform Development & Maintenance Ad Space With High Visibility Advertisers Platform Desired Product or Service Customers Platform Costs Customer Acquisition Costs Ad Fees Free

18 Long Tail Pattern: Spreadshirt.com Platform Management & Promotion Production Large Scope of Niche Content Original Content Many Niche Segments User Generated Content Website Content Production Tools Internet Niche Content Providers Production Platform Management & Development Selling Less of More

19 Bait & Hook: Razor & Blades Manufacturers Marketing Razor Handle Built-In Lock-In Customers Retailers Retail Patents Blades Manufacturing Legal Marketing 1 x Handle Purchase Frequent Blade Replacements

20 Freemium Pattern: Skype Wholesale Carriers Software Development Free Internet & Video Calling Mass Customized Web Users Globally 90% of users Payment Providers Software Developers Software Cheap Calls To Phones (SkypeOut) Skype.com People Who Want To Call Phones 10% of users Software Development SkypeOut Pre-Paid or Subscription

21 Freemium Pattern: Flickr Yahoo! Platform Management Free Basic Photo Sharing Mass Customized Switching Costs Casual Users Flickr Platform Brand Premium Photo Sharing Flickr.com Yahoo.com High-Volume Users Storage Costs (variable) Platform Development (fixed) Annual Subscription Pro Account

22 Create a business model for mobile phones. *Use free phone concept

23 Bait & Hook: Mobile Phones Device Manufacturers Services Free Phones Contractual Lock-In Customers Network Retail Subscription Phones Service Network Monthly Subscription

24 What are the most important aspects of your business model?

25 Value Propositions O Newness O Performance O Customization O Getting the Job Done O Design O Brand/Status O Price O Cost Reduction O Risk Reduction O Accessibility O Convenience/Usability

26 Channel Phases: 1) Awareness O 2) Evaluation O 3) Purchase O 4) Delivery O 5) After sales O Channels How do we raise awareness about our company s products and services? How do we help customers evaluate our organization s Value Proposition? How do we allow customers to purchase specific products and services? How do we deliver a Value Proposition to customers? How do we provide post-purchase customer support?

27 Customer Segments O Mass Market O Niche Market O Segmented O Diversified O Multi-sided Platform

28 Customer Relationships Examples: O Personal assistance O Dedicated Personal Assistance O Self-Service O Automated Services O Communities O Co-creation Customer acquisition Customer retention Boosting sales (upselling)

29 Revenue Streams Types: O Asset sale O Usage fee O Subscription Fees O Lending/Renting/Leasing O Licensing O Brokerage fees O Advertising

30 Key Resources Types of resources: O Physical O Intellectual (brand patents, copyrights, data) O Human O Financial

31 Key Activities Categories: O Production O Problem Solving O Platform/Network

32 Key Partners Motivations for partnerships: O Optimization and economy O Reduction of risk and uncertainty O Acquisition of particular resources and activities

33 Cost Structure Is your business more: O Cost Driven (leanest cost structure, low price value proposition, maximum automation, extensive outsourcing) O Value Driven ( focused on value creation, premium value proposition)

34 Cost Structure Sample characteristics: O Fixed Costs (salaries, rents, utilities) O Variable costs O Economies of scale O Economies of scope

35 Increasing the Likelihood of Small Business Success Inadequate Financing Underestimate costs Sources of financing

36 Sources of Small Business Financing

37 Seed capital Debt Financing Allows complete control over your business Credit Cards Family and Friends Bank Loans (SBA backed) Equity Financing Finding Financing Venture Capitalists Angel Investors

38 Private Investors Small-business owners soon look for greater sums of money in order to continue operating and eventually grow. Venture capital is money invested in the small business by another business firm or group of individuals in exchange for an ownership share. Venture capitalists look for companies in which to invest even when the economy is sluggish. Recently, investors have expressed optimism and a focus on information technology, such as the Internet, cloud computing, and mobile/telecom. Venture capitalists usually have tough requirements for a solid business plan.

39 Increasing the Likelihood of Small Business Success Government Regulation Taxes, licenses, etc. Understanding organization options

40 Alternatives for Organizing a Business

41 Legal Structures to Meet Changing Needs Business form is not a permanent decision. Many organizations evolve from sole proprietorship to partnerships and corporations as needs change.

42 Business Ownership Sole Proprietorship business owned and usually operated by one person who is responsible for all of its debts General Partnership business with two or more owners who share in both the operation of the firm and the financial responsibility for its debts

43 Business Ownership Corporation business that is legally considered an entity separate from its owners and is liable for its own debts; owners liability extends to the limits of their investments

44 Sole Proprietorship Advantages Freedom Simple to form Low start-up costs Tax benefits Disadvantages Unlimited liability Limited resources Limited fundraising capability Lack of continuity

45 Partnerships Advantages More talent and money More fundraising capability Relatively easy to form Limited liability for limited partners Tax benefits Disadvantages Unlimited liability for general partners Disagreements among partners Lack of continuity

46 Corporations Advantages Limited liability Continuity Stronger fundraising capability Disadvantages Can be taken over against the will of its management Double taxation of profits Complicated and expensive to form

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48 Types of Corporations C Corporation S Corporation Limited Liability Companies Domestic, foreign, alien Employee-Owned Corporations Not-for-Profit Corporations

49 Corporate Management Stockholders acquire stocks in exchange for ownership Preferred Stock Common Stock Board of Directors elected by stockholders to oversee corporation Top Management (CEO, COO, CFO) make major corporate decisions Middle Management handle ongoing operations