? business model innovation & design How does one design - PowerPoint PPT Presentation

? business model innovation & design How does one design successful business models? NTU Institute for Media Innovation a e os e alex osterwalder a d yves pigneur “ too little attention is given to too ” the design of business models odels David J. Teece UC Berkeley

1 2 3 model 1 business business design computer- conceptual design computerized modeling model thinking method aided tools common language

e g Business Model Canvas customer segment to describe, challenge, design, and invent business models more systematically de fi nes the different groups of people or organizations the company aims to help with getting a job done images by JAM

value proposition distribution channel describes the bundle of products and services that create value outlines the customer touch points through which the company reach the customer for a speci fi c customer segments segments to communicate and deliver a value proposition images by JAM images by JAM customer relationship revenue stream describes how an organization gets, keeps, and grows each customer segment and represents the type of revenues an organization generates what type of relationships it entertains with each of them from each customer segment for a speci fi c value proposition images by JAM images by JAM

key resources key activities describes the most important assets, capabilities and know-how required present the most important tasks and processes a company must perform to make a business model work to make its business model work images by JAM images by JAM key partners cost structure outlines the network of suppliers and partners that describes all costs incurred to operate a business model leverage the business model images by JAM images by JAM

The Business Model Canvas customer key activities value proposition relationships KEY KEY VALUE CUSTOMER CUSTOMER PARTNERS ACTIVITIES PROPOSITION RELATIONSHIP SEGMENT key customer partners segments KEY DISTRIBUTION RESOURCES CHANNEL COST REVENUES cost revenue structure streams key distribution resources channels 22 22 images by JAM HARDWARE DIGITAL DIGITAL DIGITAL MANUFACTURER HUB LIFESTYLE PLATFORM 1998 2001 2007 2010 http://www.businessmodelgeneration.com

? What was apple’s business model for the iPod? buzz group how much did the cost of home co ff ee consumption change for Swiss households over the last couple of years?

? 600% to describe the Nespresso’s 800% business model using the canvas more

RESULTS average growth of 30% p.a. since 2000 in 2011, 3 billion CHF annual revenue with 1 product line

design analytical intuitive 2 thinking thinking thinking n g i s e d g n i k n i h t YPING “ business people don’t bus just need to understand designers better; they need to become ” designers ners Roger Martin Rotman School @ Toronto [source: Sony Pictures]

[source: Sony Pictures] [source: Sony Pictures]

[source: flickr] “ “ if yo if you freeze to an idea if yo if you re fi ne it too too quickly, you fall in quickly you become ” ” love with it ... it ... attached to it ... o it ... Jim Glymph, Jim Jim Glymph, Ge Gehry Partner Gehry Partner

? what does it means for business models? prototyping 51

? where is solar energy particularly useful? Jigar Shah in the context of shopping centers 56 56 56 56 6 6

1 ? KEY KEY VALUE CUSTOMER CUSTOMER PARTNERS ACTIVITIES PROPOSITION RELATIONSHIP SEGMENT I N S T A L L P A N E L S L O N G T E R M why don’t the retail stores R E CUSTOMER L A T I O N S ACQUISITION MID - SOLAR PANEL TO LARGE INSTALLATION PANEL OR G ANIZA and shopping centers TIONS MANUFACTURERS KEY DISTRIBUTION RESOURCES CHANNEL switch to solar energy? SOLAR EXPERTS SALES FORCE P A T E N T S COST REVENUES P U R C H A S I N G F E E t the retail stores and shopping centers switch to why don’ solar energy? 60

2 ? KEY K KEY VALUE CUSTOMER CUSTOMER PARTNERS ACTIVITIES PROPOSITION RELATIONSHIP SEGMENT & L T A L I N S E A G A N M N S T I O L L A A T T A A L L I N S S ACQUIRE what if we gave the panels P P A S POWER SOLAR PANEL SOLAR PANEL MID - TO LARGE PURCHASING INSTALLATION INSTALLATION OR G PANEL AGREEMENTS ANIZA TIONS away for free to eliminate the MANUFACTURERS KEY DISTRIBUTION RESOURCES CHANNEL hurdle of upfront investment SOLAR SALES FORCE EXPERTS XPERTS SOLAR ENERGY INSTALLATIONS COST REVENUES INSTALLING & MANAGING ACQUIRING INSTALLATIONS REGULAR PPA S PPA PAYMENTS ? but how to fi nance the upfront investment but how to finance the upfront investment 64

3 K KEY KEY VALUE CUSTOMER CUSTOMER PARTNERS ACTIVITIES PROPOSITION RELATIONSHIP SEGMENT & A L L N S T I G E A N A M S I O N A T A L L N S T I RESULTS AC ACQU ACQUIRE P PPA S PACKAGE & SELL PPA S MID - TO LARGE OR G POWER ANIZA TIONS PURCHASING AGREEMENTS KEY DISTRIBUTION RESOURCES CHANNEL CHANNEL SOLAR R SALES FORCE EXPERTS TS N A L SOLAR T I O LOW - RISK I T U N S T I E ENERGY & PRIVATE INVESTMENT INST INSTALLATIONS O R S RETURN S T N V E F I I N A N C I A L I N POOL OF PPA S S T I T U T I O N S COST REVENUES INSTALLING & INVESTMENT MANAGING A C Q U I R I N G D E V E L INSTALLATIONS O P M ACQUIRING I FEE E N T & N V E M S T O REGULAR PPA REGULAR PPA O N I R S T O R I N G F E E PPA S PAYMENTS PAYMENTS SunEdison is now the SunEdison bought in ’09 by largest provider of solar MEMC Electronic Materials power in the US for USD 200 million

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