Business Models: Identifying How to Succeed · A Business Model? A business model describes the...
Transcript of Business Models: Identifying How to Succeed · A Business Model? A business model describes the...
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IEEE-USA Business Models: Identifying How to Succeed
John Prohodsky
IEEE-USA Annual Meeting August 2013
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A Business Model?
A business model describes the rationale of how an organization creates, delivers and captures value
Based upon the Business Model Canvas http://www.businessmodelgeneration.com/downl
oads/business_model_canvas_poster.pdf
Description of Business Model Canvas http://www.businessmodelgeneration.com/downl
oads/businessmodelgeneration_preview.pdf
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Business Model as Theater
Front stage (right side)
– Presents value
– Seen by customer
Back stage (left side)
– Presents costs
– Seen by business
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The Business Model Canvas
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Wedding Designer Business Model
Wedding designer
–Designs wedding experience
– Creates a memorable experience
Weddings - $120 billion/year industry
$27,000 average wedding cost
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Customer Segment Identification
Mass Market
Niche Market
Segmented
Diversified
Multi-sided
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Customer Segment
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Value?
Getting the job done
Design
Brand/status
Price
Cost reduction
Risk reduction
Accessibility
Convenience/usability
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The Value Proposition Canvas
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Value Proposition Canvas Logic
|Gains
| \
Customer Jobs | |
| /
|Pains
|Gain Creators
| \
| |Products and Services
| /
|Pain Relievers
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Value Proposition Canvas resources (1)
Value Proposition Canvas
– http://www.businessmodelgeneration.com/downloads/value_proposition_canvas.pdf
Introduction to Value Proposition Canvas
– http://businessmodelalchemist.com/2012/08/achieve-product-market-fit-with-our-brand-new-value-proposition-designer.html
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Value Proposition Canvas resources (2)
Testing Value Proposition
– http://businessmodelalchemist.com/2012/09/test-your-value-proposition-supercharge-lean-startup-and-custdev-principles.html
– Validates assumptions
– Very powerful when combined with Lean Startup Methodology
http://theleanstartup.com/principles
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Value Propositions:
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Channels – reaching customers
How a company communicates with and reaches its Customer Segments to Deliver a Value Proposition
–Marketing
– Sales
– Purchase
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Channels phases
Awareness: Referrals, Website and Social media
Evaluation: Present value proposition, social media, referrals
Purchase: Upfront retainer and balance due when wedding design is complete
Delivery: Present plan with instructions or referrals to vendors
After sales: Limited help to solve problems.
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Channels:
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Customer relationships types
Personal Assistance
Dedicated personal assistant
Self-service
Automated services
Communities
Co-creation
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Customer Relationships:
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Types of revenue streams
Asset sale
Usage fee
Subscription fee
Lending/Renting/Leasing
Licensing
Brokerage fees
Advertising
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Pricing considerations
List price
Product feature dependent
Customer segment dependent
Volume dependent
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Revenue streams:
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Key resources (assets) -
Physical
Intellectual
Human
Financial
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Key resources
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Key activities – what makes it work
Production
–Design
–Making
–Delivery
Problem solving
Platform/Network
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Key Activities:
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Key Partnerships – Networks that make the business model work
Motivations for partnerships
–Optimization and economy of scale
– Reduction of risk and uncertainty
– Acquisition of particular resources and activities
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Types of Partnerships
Strategic alliances
Strategic partnerships
Joint ventures
Buyer-supplier
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Key Partners
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Types of cost structures
Cost–driven
Value-driven
Fixed costs
Variable costs
Economies of scale
Economies of scope
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Cost Structure:
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Transition from Planning to Modeling
Plans describe what and how
Models capture value, costs and relationships
There are many dfferent models (conceptual frameworks)
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Lean canvas
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Personal Business Model Canvas
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Student Personal Business Model Canvas
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We welcome
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