desig ning
       ss mo del
busine
                   red
         op prepa
a worksh
                   er
by alex osterwald
                 r
and y ves pigneu



           c. 2010
 Sierre De
service innovation




FLICKR.COM
process innovation




FLICKR.COM
business model innovation




FLICKR.COM
Time Machine
1958
[sources: Henry Chesbrough, photo: life.com]
[sources: Henry Chesbrough, photo: life.com]
Time Machine
1997
?
what do both examples have
        in common?
1
      Product innovation
          alone was not
                sufficient
       They enabled the
    new product through
     the business model
2
       They didnʼt nor
      could they copy
    from competitors
        They invented
        new business
               models
3
They couldnʼt prove in
     advance that the
  models would work
    They had to take
       some risk and
          experiment
“   The enemy of
innovation are two
words - prove it -
you can not prove


                                       ”
      any new idea


    Roger Martin, Dean Rotman School
?
So how does one come up
 with successful business
         models?
3 Themes
business    design    ongoing
 models    thinking   process
!"#$%&##'
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            1
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Business Model
Canvas
to describe, challenge,
design, and invent
business models more
systematically
9   building
    blocks
CUSTOMER SEGMENTS




DESCRIBING WHO A COMPANY OFFERS VALUE TO   images by JAM
VALUE PROPOSITIONS




DESCRIBING A COMPANY’S OFFER   images by JAM
CHANNELS




DESCRIBING HOW A COMPANY REACHES ITS CUSTOMERS   images by JAM
CUSTOMER RELATIONSHIPS




DESCRIBING THE RELATIONSHIPS A COMPANY BUILDS   images by JAM
REVENUE STREAMS




DESCRIBING HOW A COMPANY MAKES MONEY   images by JAM
KEY RESOURCES




DESCRIBING WHAT CAPABILITIES ARE REQUIRED   images by JAM
KEY ACTIVITIES




DESCRIBING WHAT ACTIVITIES ARE REQUIRED   images by JAM
KEY PARTNERS




THE PARTNERS THAT LEVERAGE THE BUSINESS MODEL   images by JAM
COST STRUCTURE




DESCRIBING THE COSTS OF A BUSINESS MODEL   images by JAM
key      value          customer
            activities   proposition      relationships




    key                                              customer
partners                                             segments




    cost                                             revenue
structure          key                               streams
             resources                 channels

                                                          images by JAM
building
                                                          building
                  block
                                                            block

                       building
                                                                               building
                       block                building
building                                     block                             block
 block

                                                       building
                                                        block
                    building                                  building
                     block
                                                                  block




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artistic feel                                                        theater &
         &                                                             opera visitors
     atmosphere     stage & manage   artistic circus
                     spectacle &      without lions    higher ticket
                       logistics                          prices

CIRQUE DU SOLEIL
nage
stage & ma
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     logistics                              theater &
                                              opera
                     artistic                 visitors
                      circus
                               ns
                   without lio


artistic feel &
 atmosphere




                                    higher ticket
                                        prices
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           2
“   business people
    don’t just need to
    understand
    designers better;
    they need to
    become designers
                                       ”
    Roger Martin, Dean Rotman School
analytical             intuitive
thinking               thinking

           thin king
   d esign
the  desig    ner’s
t ool k it ...
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analyze from the customer perspective
PARTNER            KEY        OFFER     CUSTOMER          CUSTOMER
NETWORK          ACTIVITIES           RELATIONSHIPS       SEGMENTS




                   KEY                DISTRIBUTION
                RESOURCES              CHANNELS




          COST STRUCTURE                REVENUE STREAMS
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+&,'-.)#%
KEY                   CUSTOMER
               ACTIVITIES                  RELATIONSHIPS




KEY                            VALUE                       CUSTOMER
PARTNERS                    PROPOSITIONS                   SEGMENTS



            KEY RESOURCES                  CHANNELS




COST                                                       REVENUE
$TRUCTURE                                                  $TREAMS
2(%$%$32*+,
“
    The lack of trust to
    experiment with new
 ideas is what makes
    companies obsolete
over a period of time
                                             ”
          Roger Martin, Dean Rotman School
[source: Sony Pictures]
architecture
[source: Sony Pictures]
[source: Sony Pictures]
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35
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           3
uncertainty/patterns/insight                       clarity/focus




                 research                       designing business model    business model design to
               & understand                            prototypes               be implemented




89)"7,&:'-*-6/&*';7)('<-($&%'=&>(-%?'@&%/7-+A                                                     69
3 Themes
business    design    ongoing
 models    thinking   process
THANK YOU!


 BusinessModelGeneration.com

      osterwalder@gmail.com
          yves.pigneur@unil.ch

Designing Business Models