Business Models Presented by Tom Kosnik September 15, 2014 Gear Up Model slides by Ramfelt,...

Business Models

Presented by Tom Kosnik

September 15, 2014

Gear Up Model slides by Ramfelt, Kjellberg, and Kosnik (2014),

Gear Up: Test Your Business Model Potential

and Plan Your Path to Success

Business Model Canvas based on: Osterwalder, Alexander and Yves Pigneur (2010), Business Model Generation: A

Handbook for Visionaries, Game Changers, and Challengers

Customer Development from Blank, Steve (2012) The Startup Owner’s Manual

GEAR UP: Your Best Idea Ever

LENA RAMFELT JONAS KJELLBERG

TOM KOSNIKBASED ON THE BETA VERSION OF THE BOOK

Gear Up: A System for Creating New Markets

and Disrupting Existing Markets

Source: Ramfelt, Kjellberg, and Kosnik (2013) Gear Up: Bring Business Opportunities to Life.

Agenda

Agenda

• Two Social Venture Examples• Toraja Melo

• Gear Up Business Model: Playing the Zero Game

• Business Model Videos• Muhammad Yunus

• Eric Osterwalder and The Business Model Canvas

• Summary of Business Model

7

Forming your Teams

Form Teams:4 or 5 people per team:

• Make sure you have diversity:

• Men and women

• Different academic strengths or concentrations

• If possible, different countries, or regions of Indonesia

• Why diversity?

• To increase your understanding about how different people (employees, investors, customers) think and make decisions

• To prepare you to work in entrepreneurial teams.

Gear Up: A System for Creating New Markets

and Disrupting Existing Markets


BUSINESS MODEL


FROM IDEA TO

CASH Source:

Ramfelt,

Kosnik, and Kjellberg (2011) "Do you

Delight?" Closed Beta. Do Not

copy or Distribute.c

Source: Ramfelt, Kjellberg, and Kosnik (2013) ”Gear Up: Your Best Idea Ever” Do Not copy or Distribute.

Source: Ramfelt, Kjellberg, and Kosnik (2013) ”Gear Up: Your Best Idea Ever” Do not copy or distribute.

Source: Ramfelt, Kjellberg, and Kosnik (2013) ”Gear Up: Your Best Idea Ever” Do Not copy or Distribute.

Exercise: The Zero Game• Work in your teams• What are the largest costs for your competitors, if you

have a social business or for competitors of:

• Identify ways to drive the costs to zero – or to a very small number.

• Prepare to share

Muhammad Yunus on“Social Business Model”

http://www.youtube.com/watch?v=0C3XQ3BTd4o

Eric Osterwalder on Business Model Canvas

http://ecorner.stanford.edu/authorMaterialInfo.html?mid=2877

17images by JAM

customer segments

key partners

cost structure

revenue streams

channels

customer relationships

key activities

key resources

value proposition

http://www.businessmodelgeneration.com/ accessed September 21, 2010.

The Business Model Canvas

9 GuessesSocial Business Model CanvasAdapted by Tom Kosnik from the Business Model Canvas


Social Impact Environmental Impact

BeneficiariesOr

Customers’ Customers

9 GuessesIdentify your key assumptions –

Your “Best Guesses”



BeneficiariesOr


Guess Guess

Guess

Guess

Guess

Guess

Guess

GuessGuess

GuessGuess

Guess

Exercise• Work in your teams• Identify 1 part of the Business Model canvas that you

can innovate for your social venture or for:

• Make a plan to “Get out of the building” to test your innovation with customers & channel partners.

9 GuessesExercise: Identify at least one part of the business model canvas where you can innovate. “Get out of the building” and test your idea for business model innovation with customers & partners.



BeneficiariesOr


Business Model Summary:

• Two complementary tools enable effective analysis of your business model:

• Gear Up & Business Creation: The Zero Game

• Business Model Canvas

• What do all the tools have in common?• Get out of the building & talk to customers and

partners to test your assumptions.

• Refine your business model or pivot*

* “Pivot” is used by Steve Blank and Eric Reis to mean a change in direction - different customer segment or different value proposition.

This Talk is Based On Three Books• Gear Up• Business Model Generation• The Startup Owner’s Manual

Shameless Plug:

Gear Up is available on Amazon.com:http://www.amazon.com/Gear-Up-Business-Potential-Success/dp/085708562X/ref=sr_1_1?s=books&ie=UTF8&qid=1400514218&sr=1-1&keywords=ramfelt+gear+up#

Thank You

Tom Kosnik+1 650 450 3330

[email protected]

Guy Kawasaki on “Business Model”

http://www.youtube.com/watch?v=G4O0epfxzq4

A Business Model Shows Your Critical “Guesses,” AKA Assumptions or Hypotheses

• Conversion rate (from prospect to paying customer)• Customer acquisition cost• Average selling price per unit• Variable cost per unit• Material cost• Distribution channel margins• Length of sales cycle• Life time value of a customer• Etc.Test your guesses/assumptions/hypotheses about

these key numbers before developing elaborate financial projections for a business plan.

Adapted from: Blank, Steven B. (2011) “Business Model” Talk delivered at Clean Tech Open Accelerator Workshop.

Business Models Presented by Tom Kosnik September 15, 2014 Gear Up Model slides by Ramfelt,...

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