Visual Business Modeling

Visual Business Modeling
Some Fun with Alex Osterwalders BMC | Service Design Drinks Berlin, 03.09.2012
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Choices & Consequences
Activity Networks
Value Flow Mapping for Ecosystems
Value Conguration Perspective: Chains/Shops/Networks
Tom Hulmes Canvas (IDEO)
Patrick Sthlers Canvas (Fluidmind)
etc.
!
Other Scientic Conceptualisations
Fraunhofer IAO Canvas
Image Credits / Sources in order of appearance: Casadesus-Masanell, R., & Ricart, J. E. (2011). How to Design A Winning Business Model. Harvard Business Review, 89(1/2), 100107. // Porter, M. E. (1996). What is Strategy? Harvard Business Review, (November - December). // Ouden, E. den. (2011). Innovation Design: Creating Value for People, Organizations and Society (1st ed.). Springer London. // Fjeldstad, . D., & Stabell, C. B. (1998). Conguring Value for Competitive Advantage: On Chains, Shops, and Networks. Strategic Management Journal,, Vol 19, 413437. // valuenetworksandcollaboration.com, 2011 // Tom Hulme (http://weijiblog.com/ startup-tools/) // Patrick Sthler (http://blog.business-model-innovation.com/tools/) // Johnson, M. W., Christensen, C. M., & Kagermann, H. (2008). Reinventing Your Business Model. Harvard Business Review, 86(12), 5059. // Fraunhofer IAO (http://moby.iao.fraunhofer.de/)
Osterwalders Business Model Canvas: The Building Blocks
Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl)
Customer Segments
Which customers do we serve? What are the jobs they need to get done?
Value Proposition
Tip: Use the Value PropositionDesigner!
What do we offer them? Which problem do we really solve? What value do we really provide?
Channels
How can we best reach/serve each customer segment? What are the best interaction/touch points?
Relationships
What relations shall we establish with our customer segments? Personal? Automated? Acquisitive? Retentive?
Relationships
fe r i ng f
ome r C us t
r f ac e I n te
What relations shall we establish with our customer segments? Personal? Automated? Acquisitive? Retentive?
Revenue Streams
What are our customers really willing to pay for? How? Transactional or recurring revenues?
images by JAM
Key Resources
Which resources and assets are critical to successfully run our business?
images by JAM
Key Activities
What essential key activities do we have to perform to deliver our value proposition?
images by JAM
10
Key Partners
Who are critical partners and suppliers leveraging our business model? With whom do we co-create value?
images by JAM
11
Key Partners
nf ras I
t u re t r uc
Who are critical partners and suppliers leveraging our business model? With whom do we co-create value?
images by JAM
11
Cost Structure
What is our resulting cost structure? Which key elements drive costs?
12
Cost Structure
ance Fi n
What is our resulting cost structure? Which key elements drive costs?
12
Key Activities
Value Proposition
Relationships
Key Partners
Customer Segments
Cost Structure
Key Resources
Revenue Streams Channels
13
Starting Points: Resource-Driven

Key Activities Value Proposition Relationships
Key Partners
Customer Segments
Cost Structure
Key Resources
14
Starting Points: Offer-Driven

Key Partners
Customer Segments
Cost Structure
Key Resources
15
Starting Points: Customer-Driven

Key Partners
Customer Segments
Cost Structure
Key Resources
16
Starting Points: Finance-Driven

Key Partners
Customer Segments
Cost Structure
Key Resources
17
Starting Points: Multiple-Epicenter-Driven

Key Partners
Customer Segments
Cost Structure
Key Resources
18
Key Activities
Value Proposition
Relationships
Key Partners
Customer Segments
Cost Structure
Key Resources
19
Key Activities
Value Proposition
Relationships
Key Partners
Customer Segments
i n a te Elim
s ts Co
Re duc e /
C re ate /R
Va l ue
aise
Cost Structure
Key Resources
19
Key Activities
Value Proposition
Relationships
Key Partners
Best Sustainable Equilibrium
Customer Segments
i n a te Elim
s ts Co
Re duc e /
C re ate /R
Va l ue
aise
a l ue x. v ma f or u re ap t c any mp e co th
Cost Structure Key Resources
m a x. v a l ue f or t he u se r
19
Video Gaming Strategy Canvas: Nintendo Wii (in 2007)

Nintendo Wii
Microsoft Xbox 360
Sony PS3
Key Partners
Customer Segments
Value Level & Price
i n a te Elim
s ts Co
Re duc e /
C re ate /R
Va l ue
aise
tro l
isk
rd D
ec ti
Mo
nC
Ga
Do
Us er
Ha
nn
un
tio
Co
Mo
Ux
/F
Ec
os
Key Resources
DV
Channels
Re
lby
Fa cto
ys tem
5.1
ce
CP
Pri
GP
on
me s
vie
vit
ac
Cost Structure
Revenue Streams
r
iy
20
KP
KA
VP
CR
CS
KR
CH
CS
RS
Nintendo Wii (in 2007)
eliminate
reduce
create
raise
unchanged
KP
KA
VP
CR
CS
state-of-the-art chip development
male hardcore gamers

KR CH
n e w p ro p r ie t ar y te c h n o l o g y
passive immersion with high-end performance and graphics
CS
RS
c o n s o le b s idie s su
eliminate
reduce
create
raise
unchanged
KP
KA
VP
CR
CS
g ame de ve l o p e r s
KR
CH
game developers
retail distribution
CS
RS
royalties from game developers
eliminate
reduce
create
raise
unchanged
KP
KA
VP
CR
CS
KR
CH
game developers
retail distribution
CS
RS
technology development costs
n s o le co uc t io n pro d s cos t
eliminate
reduce
create
raise
unchanged
KP
KA
VP
CR
CS
r n a t i ve a l te once p t g ame c h re s e a rc
ic ro - r STM c s f o ro n i e le c t EMS M e te rs le rom ac c e
mo t i o n c o n t ro l le d g am i ng
u t, rko er y , wo e c o v o rt a l r sp ic h ys p
f un f ac t o r e x pe r , so cial ie n c e f am i l y
CH
KR
o t io n m n t ro l co olo gy te c h n
physical activity, social get-together
c asua l g ame rs
retail distribution families
gi r ls
game developers
CS
RS
eliminate
reduce
create
raise
unchanged
KP
KA
VP
CR
CS
state-of-the-art chip development standard component hardware manufacturers
CH
retail store involvement
KR
c asua l g ame rs
gi r ls
game developers
CS
RS
h a rd w s a le s a re pro f i t
eliminate
reduce
create
raise
unchanged
KP
KA
VP
CR
CS
state-of-the-art chip development standard component hardware manufacturers
Desirability
CH
retail store involvement
KR
game developers
Best passive immersion Sustainable with high-end Equilibrium performance and

graphics
c asua l g ame rs
gi r ls
Feasibility
CS RS
Viability
h a rd w s a le s a re pro f i t
eliminate
reduce
create
raise
unchanged
Key Activities
Value Proposition
Relationships
Key Partners
Customer Segments
Cost Structure
Key Resources
22
Key Activities
Value Proposition
Relationships
Key Partners
Customer Segments
10: MI 00 NU T
ES
Cost Structure Key Resources Revenue Streams Channels
22
What I havent told you
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Want to know more? Join the Business Model Generation!
businessmodelgeneration.com/book
businessmodelyou.com
24
and start following these Guys and Organisations!
Alexander Osterwalder: http://www.businessmodelalchemist.com Patrick Sthler: http://blog.business-model-innovation.com Steve Blank: http://steveblank.com Doblin Group: http://news.doblin.com Innosight: http://www.innosight.com BusinessModelsInc: http://www.businessmodelsinc.com DesignWorks @ Rotman: http://bit.ly/TYRLhG Illinois Institute of Design: http://www.id.iit.edu/news
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Design-driven strategic business planning

Jan Schmiedgen // Zwiestdter Strae 7 // 12055 Berlin // +49 173 3 83 15 26 // kontakt@schmiedgen.eu
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Backup: Some Examples of well known Business Models
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Image Credit: 2011 Business Models Inc. (www.businessmodelsinc.com)
www.businessmodelgeneration.com
Image Credit: 2008 XPLANE (www.xplane.com) & Alexander Osterwalder (www.alexosterwalder.com)
29
Image Credit: 2008 XPLANE (www.xplane.com) & Alexander Osterwalder (www.alexosterwalder.com)
30

Visual Business Modeling

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Visual Business Modeling

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Visual Business Modeling

Choices & Consequences

Value Flow Mapping for Ecosystems

Value Conguration Perspective: Chains/Shops/Networks

Tom Hulmes Canvas (IDEO)

Patrick Sthlers Canvas (Fluidmind)

Other Scientic Conceptualisations

Fraunhofer IAO Canvas

Osterwalders Business Model Canvas: The Building Blocks

Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl)

Tip: Use the Value PropositionDesigner!

Revenue Streams Channels

Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl)

Starting Points: Resource-Driven

Revenue Streams Channels

Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl)

Starting Points: Offer-Driven

Revenue Streams Channels

Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl)

Starting Points: Customer-Driven

Revenue Streams Channels

Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl)

Starting Points: Finance-Driven

Revenue Streams Channels

Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl)

Starting Points: Multiple-Epicenter-Driven

Revenue Streams Channels

Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl)

Revenue Streams Channels

Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl)

Revenue Streams Channels

Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl)

Best Sustainable Equilibrium

Revenue Streams Channels

Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl)

Video Gaming Strategy Canvas: Nintendo Wii (in 2007)

Microsoft Xbox 360

Value Level & Price

Nintendo Wii (in 2007)

state-of-the-art chip development

male hardcore gamers

passive immersion with high-end performance and graphics

Nintendo Wii (in 2007)

state-of-the-art chip development

passive immersion with high-end performance and graphics

royalties from game developers

Nintendo Wii (in 2007)

state-of-the-art chip development

passive immersion with high-end performance and graphics

technology development costs

royalties from game developers

Nintendo Wii (in 2007)

state-of-the-art chip development

physical activity, social get-together

passive immersion with high-end performance and graphics

technology development costs

royalties from game developers

Nintendo Wii (in 2007)

state-of-the-art chip development standard component hardware manufacturers

ic ro - r STM c s f o ro n i e le c t EMS M e te rs le rom ac c e

retail store involvement

physical activity, social get-together

passive immersion with high-end performance and graphics

technology development costs