Rethinking Business Models AlexOsterwalder.com
Twitter: business_design
BusinessModelGeneration.com
Time Machine
Time Machine
2009
2005
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1995
1990
1985
1980
1975
1970
1965
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[sources: Henry Chesbrough, photo: life.com]
[sources: Henry Chesbrough, photo: xerox.com]
Time Machine
Time Machine
1960
1970
1980
1990
1991
1992
1993
1994
1995
1996
1997
?
what do both examples have in common?
they didn始t give a d%*&Y about the status-quo models
the business model “trumps�/enables the technology innovation
there was no way they could prove their business models would work
Time Machine
Time Machine
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
?
WHAT IS YOUR BUSINESS MODEL
so is there...
formula for successful business models? 61
there is none!
63 [photo sources: BusinessWeek.com]
17% 63 [photo sources: BusinessWeek.com]
yet, we can be more systematic in our creativity to find the next ...
AGENDA
AGENDA business models
AGENDA business models
design thinking
AGENDA business models
design thinking
ongoing process
Your Expectations?
67
business models
buzz group
?
What was Apple始s business model for the iPod? Discuss & describe it
buzz group
?
discuss with your seat neighbor what a business model is and write down your definition
?
what elements did you mention in your definition?
Business Model Canvas
to describe, challenge, design, and invent
business models more systematically
9
building blocks
CUSTOMER SEGMENTS
images by JAM
VALUE PROPOSITIONS
images by JAM
CHANNELS
images by JAM
CUSTOMER RELATIONSHIPS
images by JAM
REVENUE STREAMS
images by JAM
KEY RESOURCES
images by JAM
KEY ACTIVITIES
images by JAM
KEY PARTNERS
images by JAM
COST STRUCTURE
images by JAM
key activities
value proposition
customer relationships
key
customer
partners
segments
cost structure
key resources
revenue channels
streams images by JAM
key activities
value proposition
customer relationships
key
customer
partners
segments
cost structure
key resources
revenue channels
streams images by JAM
images by JAM
CANVAS OVERLAY KEY PARTNERS
KEY ACTIVITIES
KEY RESOURCES
COST STRUCTURE
OFFER
CUSTOMER RELATIONSHIPS
CUSTOMER SEGMENTS
CHANNELS
REVENUE STREAMS
images by JAM
CANVAS OVERLAY KEY PARTNERS
KEY ACTIVITIES
KEY RESOURCES
COST STRUCTURE
OFFER
CUSTOMER RELATIONSHIPS
CUSTOMER SEGMENTS
CHANNELS
REVENUE STREAMS
images by JAM
The Business Model Canvas KEY PARTNERS
KEY ACTIVITIES
KEY RESOURCES
COST STRUCTURE
OFFER
CUSTOMER RELATIONSHIPS
CHANNELS
REVENUE STREAMS
CUSTOMER SEGMENTS
The Business Model Canvas KEY ACTIVITIES
KEY PARTNERS
OFFER
building block
building
building block
block
KEY RESOURCES
block
CHANNELS building block
building block
building block
COST STRUCTURE g buildin block
CUSTOMER SEGMENTS
building block
building
building block
CUSTOMER RELATIONSHIPS
REVENUE STREAMS buildi ng block
building block
illustra-on
iPod/iTunes Business Model KEY PARTNERS
KEY ACTIVITIES
KEY RESOURCES
COST STRUCTURE
OFFER
CUSTOMER RELATIONSHIPS
CHANNELS
REVENUE STREAMS
CUSTOMER SEGMENTS
iPod/iTunes Business Model KEY PARTNERS
KEY ACTIVITIES
OFFER
CUSTOMER RELATIONSHIPS
ic seamless mus experience & great design
KEY RESOURCES
COST STRUCTURE
CHANNELS
REVENUE STREAMS
CUSTOMER SEGMENTS
iPod/iTunes Business Model KEY PARTNERS
KEY ACTIVITIES
OFFER
CUSTOMER RELATIONSHIPS
ic seamless mus experience &
(high-end ) mass market
great design
KEY RESOURCES
COST STRUCTURE
CUSTOMER SEGMENTS
CHANNELS
REVENUE STREAMS
iPod/iTunes Business Model KEY PARTNERS
KEY ACTIVITIES
OFFER
CUSTOMER RELATIONSHIPS
ic seamless mus experience &
CUSTOMER SEGMENTS
(high-end ) mass market
great design
KEY RESOURCES
CHANNELS
retail stores
COST STRUCTURE
REVENUE STREAMS
iPod/iTunes Business Model KEY PARTNERS
KEY ACTIVITIES
OFFER
CUSTOMER RELATIONSHIPS
ic seamless mus experience &
(high-end ) mass market
great design
KEY RESOURCES
CHANNELS
retail stores
COST STRUCTURE
CUSTOMER SEGMENTS
Apple.com website
REVENUE STREAMS
iPod/iTunes Business Model KEY PARTNERS
KEY ACTIVITIES
OFFER
CUSTOMER RELATIONSHIPS
CUSTOMER SEGMENTS
ic seamless mus experience &
(high-end ) mass market
great design
KEY RESOURCES
CHANNELS Apple
stores
retail stores
COST STRUCTURE
Apple.com website
REVENUE STREAMS
iPod/iTunes Business Model KEY PARTNERS
KEY ACTIVITIES
OFFER
CUSTOMER RELATIONSHIPS
CUSTOMER SEGMENTS
ic seamless mus experience &
(high-end ) mass market
great design
KEY RESOURCES
CHANNELS ft & iTunes so store
retail stores
COST STRUCTURE
Apple
stores
Apple.com website
REVENUE STREAMS
iPod/iTunes Business Model KEY PARTNERS
KEY ACTIVITIES
OFFER
CUSTOMER RELATIONSHIPS
CUSTOMER SEGMENTS
Lovemark
ic seamless mus experience &
(high-end ) mass market
great design
KEY RESOURCES
CHANNELS ft & iTunes so store
retail stores
COST STRUCTURE
Apple
stores
Apple.com website
REVENUE STREAMS
iPod/iTunes Business Model KEY PARTNERS
KEY ACTIVITIES
OFFER
CUSTOMER RELATIONSHIPS
CUSTOMER SEGMENTS
Lovemark
ic seamless mus experience &
switch
ing
great design
KEY RESOURCES
CHANNELS ft & iTunes so store
retail stores
COST STRUCTURE
(high-end ) mass market
costs
Apple
stores
Apple.com website
REVENUE STREAMS
iPod/iTunes Business Model KEY PARTNERS
KEY ACTIVITIES
CUSTOMER RELATIONSHIPS
OFFER
CUSTOMER SEGMENTS
Lovemark
ic seamless mus experience &
switch
ing
great design
KEY RESOURCES
CHANNELS ft & iTunes so store
retail stores
COST STRUCTURE
(high-end ) mass market
costs
Apple
stores
Apple.com website
REVENUE STREAMS high-margin hardware rev.
iPod/iTunes Business Model KEY PARTNERS
KEY ACTIVITIES
CUSTOMER RELATIONSHIPS
OFFER
CUSTOMER SEGMENTS
Lovemark
ic seamless mus experience &
switch
ing
great design
KEY RESOURCES
CHANNELS ft & iTunes so store
retail stores
COST STRUCTURE
(high-end ) mass market
costs
Apple
stores
Apple.com website
REVENUE STREAMS high-margin hardware rev.
high-volum e content re v.
iPod/iTunes Business Model KEY PARTNERS
KEY ACTIVITIES
CUSTOMER RELATIONSHIPS
OFFER
CUSTOMER SEGMENTS
Lovemark
ic seamless mus experience &
switch
ing
great design
KEY RESOURCES talented people (designers)
CHANNELS ft & iTunes so store
retail stores
COST STRUCTURE
(high-end ) mass market
costs
Apple
stores
Apple.com website
REVENUE STREAMS high-margin hardware rev.
high-volum e content re v.
iPod/iTunes Business Model KEY PARTNERS
KEY ACTIVITIES
CUSTOMER RELATIONSHIPS
OFFER
CUSTOMER SEGMENTS
Lovemark
ic seamless mus experience &
switch
ing
great design
KEY RESOURCES
CHANNELS ft & iTunes so store
talented people (designers)
retail
iPod
COST STRUCTURE
(high-end ) mass market
costs
hardware
stores
Apple
stores
Apple.com website
REVENUE STREAMS high-margin hardware rev.
high-volum e content re v.
iPod/iTunes Business Model KEY PARTNERS
KEY ACTIVITIES
CUSTOMER RELATIONSHIPS
OFFER
CUSTOMER SEGMENTS
Lovemark
ic seamless mus experience &
switch
ing
great design
KEY iTunes RESOURCES
software
talented people (designers)
COST STRUCTURE
CHANNELS ft & iTunes so store
retail
iPod
hardware
(high-end ) mass market
costs
stores
Apple
stores
Apple.com website
REVENUE STREAMS high-margin hardware rev.
high-volum e content re v.
iPod/iTunes Business Model KEY ACTIVITIES
KEY PARTNERS
CUSTOMER RELATIONSHIPS
OFFER
CUSTOMER SEGMENTS
Lovemark
ic seamless mus experience &
switch
ing
great design
KEY iTunes RESOURCES
software
talented people (designers)
Apple
brand
COST STRUCTURE
CHANNELS ft & iTunes so store
retail
iPod
hardware
(high-end ) mass market
costs
stores
Apple
stores
Apple.com website
REVENUE STREAMS high-margin hardware rev.
high-volum e content re v.
iPod/iTunes Business Model KEY ACTIVITIES
KEY PARTNERS
CUSTOMER RELATIONSHIPS
OFFER
CUSTOMER SEGMENTS
Lovemark
ic seamless mus experience &
switch
ing
great design
KEY
iTunes sof content & tware RESOURCES agreements talented people (designers)
Apple
brand
COST STRUCTURE
CHANNELS ft & iTunes so store
retail
iPod
hardware
(high-end ) mass market
costs
stores
Apple
stores
Apple.com website
REVENUE STREAMS high-margin hardware rev.
high-volum e content re v.
iPod/iTunes Business Model KEY ACTIVITIES
KEY PARTNERS
CUSTOMER RELATIONSHIPS
OFFER
CUSTOMER SEGMENTS
Lovemark
ic seamless mus experience &
record
switch
ing
great design
labels
KEY
iTunes sof content & tware RESOURCES agreements talented people (designers)
Apple
brand
COST STRUCTURE
CHANNELS ft & iTunes so store
retail
iPod
hardware
(high-end ) mass market
costs
stores
Apple
stores
Apple.com website
REVENUE STREAMS high-margin hardware rev.
high-volum e content re v.
iPod/iTunes Business Model KEY PARTNERS
KEY ACTIVITIES
CUSTOMER RELATIONSHIPS
OFFER
re
hard-/softwa design
Lovemark
ic seamless mus experience &
record
switch
ing
KEY
iTunes sof content & tware RESOURCES agreements talented people (designers)
Apple
brand
COST STRUCTURE
CHANNELS ft & iTunes so store
retail
iPod
hardware
(high-end ) mass market
costs
great design
labels
CUSTOMER SEGMENTS
stores
Apple
stores
Apple.com website
REVENUE STREAMS high-margin hardware rev.
high-volum e content re v.
iPod/iTunes Business Model KEY PARTNERS OEMs
KEY ACTIVITIES
CUSTOMER RELATIONSHIPS
OFFER
re
hard-/softwa design
Lovemark
ic seamless mus experience &
record
switch
ing
KEY
iTunes sof content & tware RESOURCES agreements talented people (designers)
Apple
brand
COST STRUCTURE
CHANNELS ft & iTunes so store
retail
iPod
hardware
(high-end ) mass market
costs
great design
labels
CUSTOMER SEGMENTS
stores
Apple
stores
Apple.com website
REVENUE STREAMS high-margin hardware rev.
high-volum e content re v.
iPod/iTunes Business Model KEY PARTNERS OEMs
KEY ACTIVITIES
CUSTOMER RELATIONSHIPS
OFFER
re
hard-/softwa design
Lovemark
supply chain management
record
ic seamless mus experience &
switch
ing
KEY
iTunes sof content & tware RESOURCES agreements talented people (designers)
Apple
brand
COST STRUCTURE
CHANNELS ft & iTunes so store
retail
iPod
hardware
(high-end ) mass market
costs
great design
labels
CUSTOMER SEGMENTS
stores
Apple
stores
Apple.com website
REVENUE STREAMS high-margin hardware rev.
high-volum e content re v.
iPod/iTunes Business Model KEY PARTNERS OEMs
KEY ACTIVITIES re
hard-/softwa design
marketing sales
ic seamless mus experience &
switch
ing
KEY
iTunes sof content & tware RESOURCES agreements talented people (designers)
Apple
brand
COST STRUCTURE
CHANNELS ft & iTunes so store
retail
iPod
hardware
(high-end ) mass market
costs
great design
labels
CUSTOMER SEGMENTS
Lovemark
and
supply chain management
record
CUSTOMER RELATIONSHIPS
OFFER
stores
Apple
stores
Apple.com website
REVENUE STREAMS high-margin hardware rev.
high-volum e content re v.
iPod/iTunes Business Model KEY ACTIVITIES
KEY PARTNERS
re
hard-/softwa design
OEMs
marketing sales
ic seamless mus experience &
switch
ing
KEY
iTunes sof content & tware RESOURCES agreements talented people (designers)
Apple
brand
COST STRUCTURE n, , desig people ent elopm v e d d an
CHANNELS ft & iTunes so store
retail
iPod
hardware
(high-end ) mass market
costs
great design
labels
CUSTOMER SEGMENTS
Lovemark
and
supply chain management
record
CUSTOMER RELATIONSHIPS
OFFER
stores
Apple
stores
Apple.com website
REVENUE STREAMS high-margin hardware rev.
high-volum e content re v.
iPod/iTunes Business Model KEY ACTIVITIES
KEY PARTNERS
re
hard-/softwa design
OEMs
marketing sales
ic seamless mus experience &
switch
ing
KEY
iTunes sof content & tware RESOURCES agreements talented people (designers)
Apple
brand
COST STRUCTURE n, , desig people ent elopm v e d d an
CHANNELS ft & iTunes so store
retail stores
iPod
hardware
Apple
stores
Apple.com website
REVENUE STREAMS
hardw
manu
(high-end ) mass market
costs
great design
labels
CUSTOMER SEGMENTS
Lovemark
and
supply chain management
record
CUSTOMER RELATIONSHIPS
OFFER
are
factu
ring
high-margin hardware rev.
high-volum e content re v.
iPod/iTunes Business Model KEY ACTIVITIES
KEY PARTNERS
re
hard-/softwa design
OEMs
marketing sales
ic seamless mus experience &
switch
ing
KEY
iTunes sof content & tware RESOURCES agreements talented people (designers)
Apple
COST STRUCTURE n, , desig people ent elopm v e d d an
marketing and sales
CHANNELS ft & iTunes so store
retail stores
iPod
brand
hardware
Apple
stores
Apple.com website
REVENUE STREAMS
hardw
manu
(high-end ) mass market
costs
great design
labels
CUSTOMER SEGMENTS
Lovemark
and
supply chain management
record
CUSTOMER RELATIONSHIPS
OFFER
are
factu
ring
high-margin hardware rev.
high-volum e content re v.
iPod/iTunes Business Model KEY ACTIVITIES
KEY PARTNERS
re
hard-/softwa design
OEMs
marketing sales
ic seamless mus experience &
switch
ing
KEY
iTunes sof content & tware RESOURCES agreements talented people (designers)
Apple
COST STRUCTURE n, , desig people ent elopm v e d d an
marketing and sales
CHANNELS ft & iTunes so store
retail stores
iPod
brand
hardware
Apple
stores
Apple.com website
REVENUE STREAMS
hardw
manu
(high-end ) mass market
costs
great design
labels
CUSTOMER SEGMENTS
Lovemark
and
supply chain management
record
CUSTOMER RELATIONSHIPS
OFFER
are
factu
ring
high-margin hardware rev.
high-volum e content re v.
iPod/iTunes Business Model KEY ACTIVITIES
KEY PARTNERS
re
hard-/softwa design
OEMs
marketing sales
ic seamless mus experience &
switch
ing
KEY
iTunes sof content & tware RESOURCES agreements talented people (designers)
Apple
COST STRUCTURE n, , desig people ent elopm v e d d an
marketing and sales
CHANNELS ft & iTunes so store
retail stores
iPod
brand
hardware
Apple
stores
Apple.com website
REVENUE STREAMS
hardw
manu
(high-end ) mass market
costs
great design
labels
CUSTOMER SEGMENTS
Lovemark
and
supply chain management
record
CUSTOMER RELATIONSHIPS
OFFER
are
factu
ring
high-margin hardware rev.
high-volum e content re v.
iPod/iTunes Business Model KEY ACTIVITIES
KEY PARTNERS
re
hard-/softwa design
OEMs
marketing sales
ic seamless mus experience &
switch
ing
KEY
iTunes sof content & tware RESOURCES agreements talented people (designers)
Apple
COST STRUCTURE n, , desig people ent elopm v e d d an
marketing and sales
CHANNELS ft & iTunes so store
retail stores
iPod
brand
hardware
Apple
stores
Apple.com website
REVENUE STREAMS
hardw
manu
(high-end ) mass market
costs
great design
labels
CUSTOMER SEGMENTS
Lovemark
and
supply chain management
record
CUSTOMER RELATIONSHIPS
OFFER
are
factu
ring
high-margin hardware rev.
high-volum e content re v.
iPod/iTunes Business Model KEY ACTIVITIES
KEY PARTNERS
re
hard-/softwa design
OEMs
marketing sales
ic seamless mus experience &
switch
ing
KEY
iTunes sof content & tware RESOURCES agreements talented people (designers)
Apple
COST STRUCTURE n, , desig people ent elopm v e d d an
marketing and sales
CHANNELS ft & iTunes so store
retail stores
iPod
brand
hardware
Apple
stores
Apple.com website
REVENUE STREAMS
hardw
manu
(high-end ) mass market
costs
great design
labels
CUSTOMER SEGMENTS
Lovemark
and
supply chain management
record
CUSTOMER RELATIONSHIPS
OFFER
are
factu
ring
high-margin hardware rev.
high-volum e content re v.
iPod/iTunes Business Model KEY PARTNERS
KEY ACTIVITIES
KEY RESOURCES
COST STRUCTURE
OFFER
CUSTOMER RELATIONSHIPS
CHANNELS
REVENUE STREAMS
CUSTOMER SEGMENTS
mini break�out
WHAT IS YOUR MODEL? KEY PARTNERS
KEY ACTIVITIES
KEY RESOURCES
COST STRUCTURE
? OFFER
CUSTOMER RELATIONSHIPS
CHANNELS
REVENUE STREAMS
CUSTOMER SEGMENTS
UNDERSTANDER (interviewer) asks questions and sketches out interlocutors business model with post-it notes
UNDERSTANDER (interviewer)
EXPLAINER (interviewee)
asks questions and sketches
answers business model
out interlocutors business
questions to help interviewer
model with post-it notes
understand his/her core model
illustra-on
(New) Apple’s 4 Business Model Stages
1
HARDWARE MANUFACTURER
HARDWARE MANUFACTURER KEY PARTNERS
KEY ACTIVITIES
KEY RESOURCES
COST STRUCTURE
OFFER
CUSTOMER RELATIONSHIPS
CHANNELS
REVENUE STREAMS
CUSTOMER SEGMENTS
HARDWARE MANUFACTURER KEY PARTNERS
KEY ACTIVITIES
OFFER
CUSTOMER RELATIONSHIPS
CUSTOMER SEGMENTS
acquire he arts and loyalt y
great hardware
KEY RESOURCES
COST STRUCTURE
design plus
ease of use
CHANNELS
high-end t o mass mark et
REVENUE STREAMS
HARDWARE MANUFACTURER KEY PARTNERS
KEY ACTIVITIES
OFFER
CUSTOMER RELATIONSHIPS
CUSTOMER SEGMENTS
acquire he arts and loyalt y
great hardware
KEY RESOURCES
design plus
high-end t o mass mark et
CHANNELS
ease of use
Apple
stores
retail stores
COST STRUCTURE
Apple.com website
REVENUE STREAMS
HARDWARE MANUFACTURER KEY PARTNERS
KEY ACTIVITIES
CUSTOMER RELATIONSHIPS
OFFER
CUSTOMER SEGMENTS
acquire he arts and loyalt y
great hardware
KEY RESOURCES
design plus
high-end t o mass mark et
CHANNELS
ease of use
Apple
stores
retail stores
COST STRUCTURE
Apple.com website
REVENUE STREAMS high-margin s hardware sale
HARDWARE MANUFACTURER KEY PARTNERS l Origina ent Equipm s cturer Manufa
KEY ACTIVITIES re
hard-/softwa design
marketing
supply chain management
KEY RESOURCES
CUSTOMER RELATIONSHIPS
OFFER
sales
and
CUSTOMER SEGMENTS
acquire he arts and loyalt y
great hardware design plus
high-end t o mass mark et
CHANNELS
ease of use
Apple
stores
retail stores
COST STRUCTURE
Apple.com website
REVENUE STREAMS high-margin s hardware sale
HARDWARE MANUFACTURER KEY ACTIVITIES
KEY PARTNERS
re
hard-/softwa design
l Origina ent Equipm s cturer Manufa
marketing
supply chain management
Microsoft
gKEY operatin RESOURCES (OS) system
other software
CUSTOMER RELATIONSHIPS
OFFER
sales
and
acquire he arts and loyalt y
great hardware design plus
(designers)
Apple
high-end t o mass mark et
CHANNELS
ease of use
Apple
stores
talented people
suppliers
CUSTOMER SEGMENTS
retail stores
Apple.com website
brand
COST STRUCTURE
REVENUE STREAMS high-margin s hardware sale
HARDWARE MANUFACTURER KEY ACTIVITIES
KEY PARTNERS
re
hard-/softwa design
l Origina ent Equipm s cturer Manufa
marketing sales
and
supply chain management
Microsoft
acquire he arts and loyalt y
design plus
high-end t o mass mark et
CHANNELS
ease of use
Apple
stores
talented people
suppliers
CUSTOMER SEGMENTS
great hardware
gKEY operatin RESOURCES (OS) system
other software
CUSTOMER RELATIONSHIPS
OFFER
(designers)
retail stores
Apple
Apple.com website
brand
COST STRUCTURE n, , desig people ent elopm v e d d an
marketing and sales
REVENUE STREAMS hardw
manu
are
factu
ring
high-margin s hardware sale
HARDWARE MANUFACTURER KEY ACTIVITIES
KEY PARTNERS
re
hard-/softwa design
l Origina ent Equipm s cturer Manufa
marketing sales
and
supply chain management
Microsoft
acquire he arts and loyalt y
design plus
high-end t o mass mark et
CHANNELS
ease of use
Apple
stores
talented people
suppliers
CUSTOMER SEGMENTS
great hardware
gKEY operatin RESOURCES (OS) system
other software
CUSTOMER RELATIONSHIPS
OFFER
(designers)
retail stores
Apple
Apple.com website
brand
COST STRUCTURE n, , desig people ent elopm v e d d an
marketing and sales
REVENUE STREAMS hardw
manu
are
factu
ring
high-margin s hardware sale
2
PLATFORM OPERATOR
PLATFORM OPERATOR KEY ACTIVITIES
KEY PARTNERS
re
hard-/softwa design
OEMs
OFFER
marketing sales
and
CUSTOMER RELATIONSHIPS
CUSTOMER SEGMENTS
Lovemark
supply chain management
KEY RESOURCES
(high-end ) mass market
CHANNELS
Apple
stores
talented people (designers)
retail stores
Apple
Apple.com website
brand
COST STRUCTURE n, , desig people ent elopm v e d d an
marketing and sales
REVENUE STREAMS hardw
manu
are
factu
ring
high-margin hardware rev.
PLATFORM OPERATOR KEY ACTIVITIES
KEY PARTNERS
re
hard-/softwa design
OEMs
CUSTOMER RELATIONSHIPS
OFFER
marketing sales
supply chain management
CUSTOMER SEGMENTS
Lovemark
and
ic seamless mus experience & great design
KEY RESOURCES
(high-end ) mass market
CHANNELS
Apple
stores
talented people (designers)
retail stores
Apple
Apple.com website
brand
COST STRUCTURE n, , desig people ent elopm v e d d an
marketing and sales
REVENUE STREAMS hardw
manu
are
factu
ring
high-margin hardware rev.
PLATFORM OPERATOR KEY ACTIVITIES
KEY PARTNERS
re
hard-/softwa design
OEMs
CUSTOMER RELATIONSHIPS
OFFER
marketing sales
supply chain management
Lovemark
and
ic seamless mus experience &
switch
ing
costs
great design
KEY RESOURCES
CUSTOMER SEGMENTS
(high-end ) mass market
CHANNELS ft & iTunes so store
talented people (designers)
retail stores
Apple
Apple
stores
Apple.com website
brand
COST STRUCTURE n, , desig people ent elopm v e d d an
marketing and sales
REVENUE STREAMS hardw
manu
are
factu
ring
high-margin hardware rev.
high-volum e content re v.
PLATFORM OPERATOR KEY ACTIVITIES
KEY PARTNERS
re
hard-/softwa design
OEMs
marketing sales
ic seamless mus experience &
switch
ing
costs
great design
labels
KEY
iTunes sof content & tware RESOURCES agreements talented people (designers)
Apple
brand
COST STRUCTURE n, , desig people ent elopm v e d d an
marketing and music sales royalties
ft & iTunes so store
stores
hardware
Apple
stores
Apple.com website
REVENUE STREAMS
hardw
manu
(high-end ) mass market
CHANNELS
retail
iPod
CUSTOMER SEGMENTS
Lovemark
and
supply chain management
record
CUSTOMER RELATIONSHIPS
OFFER
are
factu
ring
high-margin hardware rev.
high-volum e content re v.
PLATFORM OPERATOR KEY ACTIVITIES
KEY PARTNERS
re
hard-/softwa design
OEMs
marketing sales
ic seamless mus experience &
switch
ing
costs
great design
labels
KEY
iTunes sof content & tware RESOURCES agreements talented people (designers)
Apple
brand
COST STRUCTURE n, , desig people ent elopm v e d d an
marketing and music sales royalties
ft & iTunes so store
stores
hardware
Apple
stores
Apple.com website
REVENUE STREAMS
hardw
manu
(high-end ) mass market
CHANNELS
retail
iPod
CUSTOMER SEGMENTS
Lovemark
and
supply chain management
record
CUSTOMER RELATIONSHIPS
OFFER
are
factu
ring
high-margin hardware rev.
high-volum e content re v.
3
MARKET OPERATOR
MARKET OPERATOR KEY ACTIVITIES
KEY PARTNERS
re
hard-/softwa design
OEMs
OFFER
marketing sales
and
CUSTOMER RELATIONSHIPS Lovemark
supply chain management
record
labels
switch
ing
costs
KEY
iTunes sof content & tware RESOURCES agreements talented people (designers)
Apple
COST STRUCTURE n, , desig people ent elopm v e d d an
marketing and sales
ft & iTunes so store
stores
hardware
Apple
stores
Apple.com website
REVENUE STREAMS
hardw
manu
(high-end ) mass market
CHANNELS
retail
iPod
brand
CUSTOMER SEGMENTS
are
factu
ring
high-margin hardware rev.
high-volum e content re v.
MARKET OPERATOR KEY ACTIVITIES
KEY PARTNERS
re
hard-/softwa design
OEMs
OFFER
marketing sales
and
supply chain management
record
CUSTOMER RELATIONSHIPS Lovemark
switch
seamless smart-phone
ing
costs
exp. & design
labels
KEY
iTunes sof content & tware RESOURCES agreements talented people (designers)
Apple
COST STRUCTURE n, , desig people ent elopm v e d d an
marketing and sales
ft & iTunes so store
stores
hardware
Apple
stores
Apple.com website
REVENUE STREAMS
hardw
manu
(high-end ) mass market
CHANNELS
retail
iPod
brand
CUSTOMER SEGMENTS
are
factu
ring
high-margin hardware rev.
high-volum e content re v.
MARKET OPERATOR KEY ACTIVITIES
KEY PARTNERS
re
hard-/softwa design
OEMs
OFFER
marketing sales
and
supply chain management
record
CUSTOMER RELATIONSHIPS
ing
costs
KEY
talented people (designers)
Apple
COST STRUCTURE n, , desig people ent elopm v e d d an
marketing and sales
sroeftin& iTaupnpessto nrees uo st iT
stores
hardware
Apple
stores
Apple.com website
REVENUE STREAMS
hardw
manu
(high-end ) mass market
CHANNELS
retail
iPod
brand
developers
switch
seamless smart-phone
iTunes sof content & tware RESOURCES agreements
app(lication)
Lovemark
exp. & design
labels
CUSTOMER SEGMENTS
are
factu
ring
high-margin hardware rev.
high-volum e content re v.
MARKET OPERATOR KEY ACTIVITIES
KEY PARTNERS
re
hard-/softwa design
OEMs
OFFER
marketing sales
and
supply chain management
record
CUSTOMER RELATIONSHIPS
ing
costs
KEY
talented people (designers)
Apple
COST STRUCTURE n, , desig people ent elopm v e d d an
marketing and sales
sroeftin& iTaupnpessto nrees uo st iT
stores
hardware
Apple
stores
Apple.com website
REVENUE STREAMS
hardw
manu
(high-end ) mass market
CHANNELS
retail
iPod
brand
developers
switch
seamless smart-phone
iTunes sof content & tware RESOURCES agreements
app(lication)
Lovemark
exp. & design
labels
CUSTOMER SEGMENTS
are
factu
ring
high-margin hardware rev.
high-volum e content re v.
MARKET OPERATOR KEY ACTIVITIES
KEY PARTNERS
re
hard-/softwa design
OEMs
OFFER
marketing sales
and
supply chain management
record
CUSTOMER RELATIONSHIPS
ing
costs
KEY
talented people (designers)
Apple
COST STRUCTURE n, , desig people ent elopm v e d d an
marketing and sales
sroeftin& iTaupnpessto nrees uo st iT
stores
hardware
Apple
stores
Apple.com website
REVENUE STREAMS
hardw
manu
(high-end ) mass market
CHANNELS
retail
iPod
brand
developers
switch
seamless smart-phone
iTunes sof content & tware RESOURCES agreements
app(lication)
Lovemark
exp. & design
labels
CUSTOMER SEGMENTS
are
factu
ring
ionhigh-volum high-margin 30% transact e c o p . n p v t a re e nt rev. cut on hardware sales
MARKET OPERATOR KEY ACTIVITIES
KEY PARTNERS
OFFER
re hard-/softwa marketing and design apps control sale s
OEMs
CUSTOMER RELATIONSHIPS
CUSTOMER SEGMENTS app(lication)
Lovemark
developers
and approval
supply chain management
record
switch
seamless smart-phone
ing
costs
exp. & design
labels
KEY
iTunes sof content & tware RESOURCES agreements talented people (designers)
Apple
COST STRUCTURE n, , desig people ent elopm v e d d an
marketing and sales
CHANNELS sroeftin& iTaupnpessto nrees uo st iT
retail stores
iPod
brand
hardware
Apple
stores
Apple.com website
REVENUE STREAMS
hardw
manu
(high-end ) mass market
are
factu
ring
ionhigh-volum high-margin 30% transact e c o p . n p v t a re e nt rev. cut on hardware sales
4
ECOSYSTEM PROVIDER
ecosystem provider KEY ACTIVITIES
KEY PARTNERS
OFFER
re hard-/softwa marketing and design apps control sale s
OEMs
CUSTOMER RELATIONSHIPS
CUSTOMER SEGMENTS app(lication)
Lovemark
developers
and approval
supply chain management
record
labels
switch
ing
costs
KEY
iTunes sof content & tware RESOURCES agreements talented people (designers)
Apple
COST STRUCTURE n, , desig people ent elopm v e d d an
marketing and sales
CHANNELS sroeftin& iTaupnpessto nrees uo st iT
retail stores
iPod
brand
hardware
Apple
stores
Apple.com website
REVENUE STREAMS
hardw
manu
(high-end ) mass market
are
factu
ring
ionhigh-volum high-margin 30% transact e c o p . n p v t a re e nt rev. cut on hardware sales
ecosystem provider KEY ACTIVITIES
KEY PARTNERS
CUSTOMER RELATIONSHIPS
OFFER
re hard-/softwa marketing and design apps control sale s
OEMs
CUSTOMER SEGMENTS app(lication)
Lovemark
developers
and approval
supply chain management
record
labels
switch
ing
experience
KEY
iTunes sof content & tware RESOURCES agreements talented people (designers)
Apple
COST STRUCTURE n, , desig people ent elopm v e d d an
marketing and sales
sroeftin& iTaupnpessto nrees uo st iT
stores
hardware
Apple
stores
Apple.com website
REVENUE STREAMS
hardw
manu
(high-end ) mass market
CHANNELS
retail
iPod
brand
costs
seamless tablet
are
factu
ring
ionhigh-volum high-margin 30% transact e c o p . n p v t a re e nt rev. cut on hardware sales
ecosystem provider KEY ACTIVITIES
KEY PARTNERS
CUSTOMER RELATIONSHIPS
OFFER
re hard-/softwa marketing and design apps control sale s
OEMs
and approval
record
labels
experience
talented people (designers)
n, , desig people ent elopm v e d d an
marketing and sales
advertisers
CHANNELS
(high-end ) mass market
sroeftin& iTaupnpessto nrees uo st iT
retail stores
iPod
COST STRUCTURE
switch
costs
seamless tablet
KEY
brand
developers
ing
iTunes sof content & tware RESOURCES agreements
Apple
app(lication)
Lovemark iAds
supply chain management
CUSTOMER SEGMENTS
hardware
stores
Apple.com website
REVENUE STREAMS
hardw
manu
Apple
are
factu
ring
nhigh-volum ction actio transa 30% trans high-margin40% e c o p . n p v t a re e cut nt rev. ad fees t on cuon hardware sales
HARDWARE MANUFACTURER
PLATFORM OPERATOR
MARKET OPERATOR
ECOSYSTEM PROVIDER
mini break�out
Niklas Zennstrรถm
Skype is…
7
years old
500
million users
100
billion free calls
550
million USD revenue 08
it was sold to eBay after 3 years for‌
â‚Ź2.1
billion
â‚Ź1.2
+ billion optional
PARTNER NETWORK
KEY ACTIVITIES
KEY RESOURCES
COST STRUCTURE
OFFER
CUSTOMER RELATIONSHIPS
DISTRIBUTION CHANNELS
REVENUE STREAMS
CUSTOMER SEGMENTS
PARTNER NETWORK
KEY ACTIVITIES
KEY RESOURCES
COST STRUCTURE
OFFER
CUSTOMER RELATIONSHIPS
DISTRIBUTION CHANNELS
CUSTOMER SEGMENTS
mass customers globally
REVENUE STREAMS
PARTNER NETWORK
KEY ACTIVITIES
OFFER
CUSTOMER RELATIONSHIPS
CUSTOMER SEGMENTS
SME
busin
esses
KEY RESOURCES
COST STRUCTURE
DISTRIBUTION CHANNELS
mass customers globally
REVENUE STREAMS
PARTNER NETWORK
KEY ACTIVITIES
OFFER
CUSTOMER RELATIONSHIPS
CUSTOMER SEGMENTS
SME
P & free VoI ling video cal KEY RESOURCES
COST STRUCTURE
busin
esses
DISTRIBUTION CHANNELS
mass customers globally
REVENUE STREAMS
PARTNER NETWORK
KEY ACTIVITIES
OFFER
CUSTOMER RELATIONSHIPS
CUSTOMER SEGMENTS
SME
P & free VoI ling video cal KEY RESOURCES
COST STRUCTURE
alls c p a che ut) O e p (Sky
busin
esses
DISTRIBUTION CHANNELS
mass customers globally
REVENUE STREAMS
PARTNER NETWORK
KEY ACTIVITIES
OFFER
CUSTOMER RELATIONSHIPS
CUSTOMER SEGMENTS
SME
P & free VoI ling video cal KEY RESOURCES
COST STRUCTURE
alls c p a che ut) O e p (Sky
busin
esses
DISTRIBUTION CHANNELS
m Skype.co
mass customers globally
REVENUE STREAMS
PARTNER NETWORK
KEY ACTIVITIES
OFFER
CUSTOMER RELATIONSHIPS
CUSTOMER SEGMENTS
SME
P & free VoI ling video cal KEY RESOURCES
alls c p a che ut) O e p (Sky
busin
esses
DISTRIBUTION CHANNELS
m Skype.co
mass customers globally
Logitech partnership COST STRUCTURE
REVENUE STREAMS
PARTNER NETWORK
KEY ACTIVITIES
OFFER
P & free VoI ling video cal KEY RESOURCES
alls c p a che ut) O e p (Sky
CUSTOMER RELATIONSHIPS
CUSTOMER SEGMENTS
mass ized custom
DISTRIBUTION CHANNELS
m Skype.co
SME
busin
esses
mass customers globally
Logitech partnership COST STRUCTURE
REVENUE STREAMS
PARTNER NETWORK
KEY ACTIVITIES
OFFER
P & free VoI ling video cal KEY RESOURCES
alls c p a che ut) O e p (Sky
CUSTOMER RELATIONSHIPS
CUSTOMER SEGMENTS
mass ized custom
DISTRIBUTION CHANNELS
m Skype.co
SME
busin
esses
mass customers globally
Logitech partnership COST STRUCTURE
REVENUE STREAMS
free
PARTNER NETWORK
KEY ACTIVITIES
OFFER
P & free VoI ling video cal KEY RESOURCES
alls c p a che ut) O e p (Sky
CUSTOMER RELATIONSHIPS
CUSTOMER SEGMENTS
mass ized custom
DISTRIBUTION CHANNELS
m Skype.co
SME
busin
esses
mass customers globally
Logitech partnership COST STRUCTURE
REVENUE STREAMS
Skype Out
free
PARTNER NETWORK
KEY ACTIVITIES
OFFER
P & free VoI ling video cal KEY RESOURCES
alls c p a che ut) O e p (Sky
CUSTOMER RELATIONSHIPS
CUSTOMER SEGMENTS
mass ized custom
DISTRIBUTION CHANNELS
m Skype.co
SME
busin
esses
mass customers globally
Logitech partnership COST STRUCTURE
REVENUE STREAMS
Skype Out
free
hardware sales
PARTNER NETWORK
KEY ACTIVITIES
OFFER
P & free VoI ling video cal KEY RESOURCES
alls c p a che ut) O e p (Sky
CUSTOMER RELATIONSHIPS
CUSTOMER SEGMENTS
mass ized custom
DISTRIBUTION CHANNELS
m Skype.co
SME
busin
esses
mass customers globally
Logitech partnership
Software COST STRUCTURE
REVENUE STREAMS
Skype Out
free
hardware sales
PARTNER NETWORK
KEY ACTIVITIES
OFFER
P & free VoI ling video cal KEY RESOURCES e
war t f o s pers o l e v de
alls c p a che ut) O e p (Sky
CUSTOMER RELATIONSHIPS
CUSTOMER SEGMENTS
mass ized custom
DISTRIBUTION CHANNELS
m Skype.co
SME
busin
esses
mass customers globally
Logitech partnership
Software COST STRUCTURE
REVENUE STREAMS
Skype Out
free
hardware sales
PARTNER NETWORK
KEY ACTIVITIES
software development KEY RESOURCES e
war t f o s pers o l e v de
OFFER
P & free VoI ling video cal
alls c p a che ut) O e p (Sky
CUSTOMER RELATIONSHIPS
CUSTOMER SEGMENTS
mass ized custom
DISTRIBUTION CHANNELS
m Skype.co
SME
busin
esses
mass customers globally
Logitech partnership
Software COST STRUCTURE
REVENUE STREAMS
Skype Out
free
hardware sales
PARTNER NETWORK
KEY ACTIVITIES aud
OFFER
fr management
software development KEY RESOURCES e
war t f o s pers o l e v de
P & free VoI ling video cal
alls c p a che ut) O e p (Sky
CUSTOMER RELATIONSHIPS
CUSTOMER SEGMENTS
mass ized custom
DISTRIBUTION CHANNELS
m Skype.co
SME
busin
esses
mass customers globally
Logitech partnership
Software COST STRUCTURE
REVENUE STREAMS
Skype Out
free
hardware sales
PARTNER NETWORK
paymen t provide rs
KEY ACTIVITIES aud
OFFER
fr management
software development KEY RESOURCES e
war t f o s pers o l e v de
P & free VoI ling video cal
alls c p a che ut) O e p (Sky
CUSTOMER RELATIONSHIPS
CUSTOMER SEGMENTS
mass ized custom
DISTRIBUTION CHANNELS
m Skype.co
SME
busin
esses
mass customers globally
Logitech partnership
Software COST STRUCTURE
REVENUE STREAMS
Skype Out
free
hardware sales
PARTNER NETWORK
paymen t provide rs
KEY ACTIVITIES aud
fr management
software development KEY RESOURCES e
telco partners
OFFER
war t f o s pers o l e v de
P & free VoI ling video cal
alls c p a che ut) O e p (Sky
CUSTOMER RELATIONSHIPS
CUSTOMER SEGMENTS
mass ized custom
DISTRIBUTION CHANNELS
m Skype.co
SME
busin
esses
mass customers globally
Logitech partnership
Software COST STRUCTURE
REVENUE STREAMS
Skype Out
free
hardware sales
PARTNER NETWORK
paymen t provide rs Logitech telco partners
KEY ACTIVITIES aud
OFFER
fr management
software development KEY RESOURCES e
war t f o s pers o l e v de
P & free VoI ling video cal
alls c p a che ut) O e p (Sky
CUSTOMER RELATIONSHIPS
CUSTOMER SEGMENTS
mass ized custom
DISTRIBUTION CHANNELS
m Skype.co
SME
busin
esses
mass customers globally
Logitech partnership
Software COST STRUCTURE
REVENUE STREAMS
Skype Out
free
hardware sales
PARTNER NETWORK
KEY ACTIVITIES aud
OFFER
fr management
paymen t provide rs
software development
Logitech
KEY RESOURCES e
war t f o s pers o l e v de
telco partners
P & free VoI ling video cal
alls c p a che ut) O e p (Sky
CUSTOMER SEGMENTS
mass ized custom
DISTRIBUTION CHANNELS
m Skype.co
SME
busin
esses
mass customers globally
Logitech partnership
Software COST STRUCTURE
are w t f so ent m p o devel
CUSTOMER RELATIONSHIPS
REVENUE STREAMS
Skype Out
free
hardware sales
PARTNER NETWORK
KEY ACTIVITIES aud
OFFER
fr management
paymen t provide rs
software development
Logitech
KEY RESOURCES e
war t f o s pers o l e v de
telco partners
P & free VoI ling video cal
alls c p a che ut) O e p (Sky
COST STRUCTURE
complaint management
CUSTOMER SEGMENTS
mass ized custom
DISTRIBUTION CHANNELS
m Skype.co
SME
busin
esses
mass customers globally
Logitech partnership
Software
are w t f so ent m p o devel
CUSTOMER RELATIONSHIPS
REVENUE STREAMS
Skype Out
free
hardware sales
buzz group
PARTNER NETWORK
KEY ACTIVITIES aud
OFFER
fr management
paymen t provide rs
software development
Logitech
KEY RESOURCES e
war t f o s pers o l e v de
telco partners
P & free VoI ling video cal
alls c p a che ut) O e p (Sky
COST STRUCTURE
complaint management
CUSTOMER SEGMENTS
mass ized custom DISTRIBUTION CHANNELS
m Skype.co
SME
busin
esses
mass customers globally
Logitech partnership
Software
are w t f so ent m p o devel
CUSTOMER RELATIONSHIPS
REVENUE STREAMS
Skype Out
free
hardware sales
vs Telco PARTNER NETWORK
KEY ACTIVITIES aud
OFFER
fr management
paymen t provide rs
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Logitech
KEY RESOURCES e
war t f o s pers o l e v de
telco partners
P & free VoI ling video cal
alls c p a che ut) O e p (Sky
COST STRUCTURE
complaint management
CUSTOMER SEGMENTS
mass ized custom DISTRIBUTION CHANNELS
m Skype.co
SME
busin
esses
mass customers globally
Logitech partnership
Software
are w t f so ent m p o devel
CUSTOMER RELATIONSHIPS
REVENUE STREAMS
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fr management
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KEY RESOURCES e
war t f o s pers o l e v de
telco partners
P & free VoI ling video cal roughly similar but cheaper/free alls c p a che ut) O e p (Sky
COST STRUCTURE
complaint management
CUSTOMER SEGMENTS
mass ized custom DISTRIBUTION CHANNELS
m Skype.co
SME
busin
esses
mass customers globally
Logitech partnership
Software
are w t f so ent m p o devel
CUSTOMER RELATIONSHIPS
REVENUE STREAMS
Skype Out
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vs Telco PARTNER NETWORK
KEY ACTIVITIES aud
OFFER
fr management
paymen t provide rs
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KEY RESOURCES e
war t f o s pers o l e v de
telco partners
P & free VoI ling video cal roughly similar but cheaper/free alls c p a che ut) O e p (Sky
COST STRUCTURE
complaint management
CUSTOMER SEGMENTS
mass ized custom DISTRIBUTION CHANNELS
m Skype.co
SME
busin
esses
global coverage mass
customers globally
Logitech partnership
Software
are w t f so ent m p o devel
CUSTOMER RELATIONSHIPS
REVENUE STREAMS
Skype Out
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vs Telco PARTNER NETWORK
KEY ACTIVITIES aud
OFFER
fr management
paymen t provide rs
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Logitech
KEY RESOURCES e
war t f o s pers o l e v de
telco partners
P & free VoI ling video cal roughly similar but cheaper/free alls c p a che ut) O e p (Sky
Software COST STRUCTURE
are w t f so ent m p o devel
complaint management
CUSTOMER RELATIONSHIPS
CUSTOMER SEGMENTS
mass ized custom DISTRIBUTION CHANNELS
m Skype.co 100% low cost Logitech partnership
SME
busin
esses
global coverage mass
customers globally
REVENUE STREAMS
Skype Out
free
hardware sales
vs Telco PARTNER NETWORK
KEY ACTIVITIES aud
OFFER
fr management
paymen t provide rs
software development
Logitech
KEY RESOURCES e
war t f o s pers o l e v de
telco partners
P & free VoI ling video cal roughly similar but cheaper/free alls c p a che ut) O e p (Sky
Software COST STRUCTURE
are w t f so ent m p o devel
complaint management
CUSTOMER RELATIONSHIPS
CUSTOMER SEGMENTS
100% mass automatic ized custom DISTRIBUTION CHANNELS
m Skype.co 100% low cost Logitech partnership
SME
busin
esses
global coverage mass
customers globally
REVENUE STREAMS
Skype Out
free
hardware sales
vs Telco PARTNER NETWORK
KEY ACTIVITIES aud
OFFER
fr management
paymen t provide rs
software development
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KEY RESOURCES e
war t f o s pers o l e v de
telco partners
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Software COST STRUCTURE
are w t f so ent m p o devel
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CUSTOMER RELATIONSHIPS
CUSTOMER SEGMENTS
100% mass automatic ized custom DISTRIBUTION CHANNELS
m Skype.co 100% low cost Logitech partnership
SME
busin
esses
global coverage mass
customers globally
REVENUE STREAMS
notfall reehave Skype Out to pay
hardware sales
vs Telco PARTNER NETWORK
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OFFER
fr management
paymen t provide rs
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Logitech
KEY RESOURCES e
war t f o s pers o l e v de no network
telco partners
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Software COST STRUCTURE
are w t f so ent m p o devel
complaint management
CUSTOMER RELATIONSHIPS
CUSTOMER SEGMENTS
100% mass automatic ized custom DISTRIBUTION CHANNELS
m Skype.co 100% low cost Logitech partnership
SME
busin
esses
global coverage mass
customers globally
REVENUE STREAMS
notfall reehave Skype Out to pay
hardware sales
vs Telco PARTNER NETWORK
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OFFER
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paymen t provide rs Logitech telco partners
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are w t f so ent m p o devel
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CUSTOMER RELATIONSHIPS
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100% mass automatic ized custom DISTRIBUTION CHANNELS
m Skype.co 100% low cost Logitech partnership
SME
busin
esses
global coverage mass
customers globally
REVENUE STREAMS
notfall reehave Skype Out to pay
hardware sales
vs Telco PARTNER NETWORK
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OFFER
fr anagement m software developm. P & software free VoI ling development video cal roughly similar but KEY cheaper/free RESOURCES e war t alls f c o s p a che rs e p o ut) l O e deve p (Sky no network
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Software COST STRUCTURE
are w t f so ent m p o devel
complaint management
CUSTOMER RELATIONSHIPS
CUSTOMER SEGMENTS
100% mass automatic ized custom DISTRIBUTION CHANNELS
m Skype.co 100% low cost Logitech partnership
SME
busin
esses
global coverage mass
customers globally
REVENUE STREAMS
notfall reehave Skype Out to pay
hardware sales
vs Telco PARTNER NETWORK
KEY ACTIVITIES aud
OFFER
fr anagement m software developm. P & software free VoI ling development video cal roughly similar but KEY cheaper/free RESOURCES e war t alls f c o s p a che rs e p o ut) l O e deve p (Sky no network
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Software COST STRUCTURE
are w t f so ent m p o devel
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CUSTOMER RELATIONSHIPS
CUSTOMER SEGMENTS
100% mass automatic ized custom DISTRIBUTION CHANNELS
m Skype.co 100% low cost Logitech partnership
SME
busin
esses
global coverage mass
customers globally
REVENUE STREAMS
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hardware sales
design thinking
design ≠only form
“ business people donʼt just
need to understand designers better; they need to become designers
”
Roger Martin, Dean Rotman School
“
The enemy of innovation are two words - prove it you can not prove any new idea Roger Martin, Dean Rotman School
�
The lack of trust to “ experiment with new ideas is what makes companies obsolete over a period of time Roger Martin, Dean Rotman School
�
let us look into design thinking and business (model innovation)
# customer centricity # prototyping business models
customer centricity
key activities
value proposition
customer relationships
key partners
customer segments
cost structure
revenue streams
key resources
channels images by JAM
analyze from the customer perspective KEY PARTNERS
KEY ACTIVITIES
KEY RESOURCES
COST STRUCTURE
OFFER
CUSTOMER RELATIONSHIPS
CHANNELS
REVENUE STREAMS
CUSTOMER SEGMENTS
Jan Chipchase (Nokia)
his main weapon
India mobile study
analyze from the customer perspective KEY PARTNERS
KEY ACTIVITIES
KEY RESOURCES
COST STRUCTURE
OFFER
CUSTOMER RELATIONSHIPS
CHANNELS
REVENUE STREAMS
CUSTOMER SEGMENTS
example:  Hil-
[sources: Mark W. Johnson, photo: Hilti.com]
156
[sources: Mark W. Johnson, photo: Hilti.com]
156
157 [source photo: ceratizit.com]
KEY PARTNERS
KEY ACTIVITIES
OFFER
CUSTOMER RELATIONSHIPS
manufactures and
sells light machine
KEY RESOURCES
CHANNELS
tools for builders
COST STRUCTURE
REVENUE STREAMS
CUSTOMER SEGMENTS
KEY PARTNERS
KEY ACTIVITIES
but
OFFER
CUSTOMER RELATIONSHIPS
there’s a substantial
CUSTOMER SEGMENTS
problem with this business
manufactures and model
sells light machine
KEY RESOURCES
CHANNELS
tools for builders
COST STRUCTURE
REVENUE STREAMS
buzz group
?
How could Hilti innovate their business model to regain competitiveness?
KEY PARTNERS
KEY ACTIVITIES
OFFER
CUSTOMER RELATIONSHIPS
manufactures and
sells light machine
KEY RESOURCES
CHANNELS
tools for builders
COST STRUCTURE
REVENUE STREAMS
CUSTOMER SEGMENTS
KEY PARTNERS
KEY ACTIVITIES
they
OFFER
CUSTOMER RELATIONSHIPS
learned by understanding customers
manufactures and
sells light machine
KEY RESOURCES
CHANNELS
tools for builders
COST STRUCTURE
REVENUE STREAMS
CUSTOMER SEGMENTS
KEY PARTNERS
KEY ACTIVITIES
OFFER
CUSTOMER RELATIONSHIPS
manufactures and
sells light machine
KEY RESOURCES
CHANNELS
tools for builders
COST STRUCTURE
REVENUE STREAMS
CUSTOMER SEGMENTS
t s e igg b r’s T e O m N o t is s e u c n o e d th s l et o g to o t e h t job uy b to 164 [source photo: dholmes.com]
t e g o t b o j t n a l, t r o o o p t m i ht t g i s r ( o e g a n his m a ), m e t o i t s n is o i e t n c o s u l d r o t o s t n o e c h t t e c righ a l p re d n a , n i a t n i a m 165 [source photo: griffinindustrial.co.uk]
The Business Model Canvas KEY PARTNERS
KEY ACTIVITIES
KEY RESOURCES
COST STRUCTURE
OFFER
CUSTOMER RELATIONSHIPS
CHANNELS
REVENUE STREAMS
CUSTOMER SEGMENTS
The Business Model Canvas KEY PARTNERS
KEY ACTIVITIES
KEY RESOURCES
COST STRUCTURE
OFFER
CUSTOMER RELATIONSHIPS
CHANNELS
REVENUE STREAMS
CUSTOMER SEGMENTS
The Business Model Canvas KEY PARTNERS
KEY ACTIVITIES
KEY RESOURCES
COST STRUCTURE
OFFER
CUSTOMER RELATIONSHIPS
CHANNELS
REVENUE STREAMS
monthly rental fee
CUSTOMER SEGMENTS
prototyping
k n a r F y r h e G [source: Sony Pictures]
[source: Sony Pictures]
[source: Sony Pictures]
[source: Wikimedia Commons]
?
what does that have to do with business models and my organization?
k n a r F y r h e G [source: Sony Pictures]
[image source: planetagadget.com]
[image source: planetagadget.com]
[image source: planetagadget.com]
[planetagadget.com]
?
how do we do we business model prototyping?
The Business Model Canvas KEY ACTIVITIES
KEY PARTNERS
OFFER
building block
building
building block
block
KEY RESOURCES
block
CHANNELS building block
building block
building block
COST STRUCTURE building block
CUSTOMER SEGMENTS
building block building
building block
CUSTOMER RELATIONSHIPS
REVENUE STREAMS buildi ng block
building block
BusinessModelAlchemist.com/ tools
business model prototyping
napkin sketch
business model prototyping
napkin sketch
Canvas
business model prototyping
napkin sketch
Canvas
business case
business model prototyping
napkin sketch
Canvas
business case
field test
break out
* single-use toilet bag
* single-use toilet bag * self-sanitizing
* single-use toilet bag * self-sanitizing * biodegradable
* single-use toilet bag * self-sanitizing * biodegradable * turns into fertilizer
* single-use toilet bag * self-sanitizing * biodegradable * turns into fertilizer * (mainly) targeted at poor people
* single-use toilet bag * self-sanitizing * biodegradable * turns into fertilizer * (mainly) targeted at poor people * low production cost
The Business Model Canvas KEY PARTNERS
KEY ACTIVITIES
KEY RESOURCES
COST STRUCTURE
OFFER
CUSTOMER RELATIONSHIPS
CHANNELS
REVENUE STREAMS
CUSTOMER SEGMENTS
ongoing process
uncertainty/patterns/insight
research & understand
designing business model prototypes
clarity/focus
business model design to be implemented
[Source: adapted from Damien Newman, Central]
197
story: pitch your business model story
THANK YOU! BusinessModelGeneration.com AlexOsterwalder.com BusinessModelAlchemist.com Twitter: business_design
The Business Model Canvas KEY PARTNERS
KEY ACTIVITIES
KEY RESOURCES
COST STRUCTURE
OFFER
CUSTOMER RELATIONSHIPS
CHANNELS
REVENUE STREAMS
CUSTOMER SEGMENTS
differentiation
RED OCEAN
• compete in existing markets • beat the competition • explore existing demand • make the value/cost trade-off • align with differentiation OR lower cost
RED OCEAN
BLUE OCEAN
• compete in existing markets
• create uncontested markets
• beat the competition
• make competition irrelevant
• explore existing demand
• create & capture new demand
• make the value/cost trade-off
• break value/cost trade-off
• align with differentiation OR lower cost
• align with differentiation AND lower cost
example
?
what is Sony Playstation始s business model?
Sony Playstation KEY PARTNERS
KEY ACTIVITIES
KEY RESOURCES
COST STRUCTURE
OFFER
CUSTOMER RELATIONSHIPS
CHANNELS
REVENUE STREAMS
CUSTOMER SEGMENTS
RED OCEAN
• compete in existing markets • beat the competition • explore existing demand • make the value/cost trade-off • align with differentiation OR lower cost
[source: art by Nintendo - provided by britishgaming.co.uk]
?
what始s different in Nintendo Wii始s business model?
BLUE OCEAN
• create uncontested markets • make competition irrelevant • create & capture new demand • break value/cost trade-off • align with differentiation AND lower cost
four actions framework
four actions framework eliminate −
four actions framework eliminate − reduce
four actions framework eliminate
raise
−
reduce
four actions framework eliminate
raise
−
reduce
create ✚
buzz group
eliminate
raise
−
reduce
create ✚
how much did the price of coffee consumed at home change for Swiss households over the last couple of years?
6-8 x more
Nespresso changed the business model for espresso
the business model canvas PARTNER NETWORK
KEY ACTIVITIES
KEY RESOURCES
COST STRUCTURE
OFFER
CUSTOMER RELATIONSHIPS
DISTRIBUTION CHANNELS
REVENUE STREAMS
CUSTOMER SEGMENTS
the business model canvas PARTNER NETWORK
KEY ACTIVITIES
OFFER
CUSTOMER RELATIONSHIPS
isto home Bar e experienc s) (machine KEY RESOURCES
COST STRUCTURE
DISTRIBUTION CHANNELS
REVENUE STREAMS
CUSTOMER SEGMENTS
the business model canvas PARTNER NETWORK
KEY ACTIVITIES
OFFER
CUSTOMER RELATIONSHIPS
isto home Bar e experienc s) (machine KEY RESOURCES
COST STRUCTURE
espres so capsu les
DISTRIBUTION CHANNELS
REVENUE STREAMS
CUSTOMER SEGMENTS
the business model canvas PARTNER NETWORK
KEY ACTIVITIES
OFFER
CUSTOMER RELATIONSHIPS
isto home Bar e experienc s) (machine KEY RESOURCES
COST STRUCTURE
espres so capsu les
CUSTOMER SEGMENTS
household
s
DISTRIBUTION CHANNELS
REVENUE STREAMS
the business model canvas PARTNER NETWORK
KEY ACTIVITIES
OFFER
CUSTOMER RELATIONSHIPS
isto home Bar e experienc s) (machine KEY RESOURCES
COST STRUCTURE
espres so capsu les
CUSTOMER SEGMENTS
household
s
DISTRIBUTION CHANNELS
business
REVENUE STREAMS
the business model canvas PARTNER NETWORK
KEY ACTIVITIES
OFFER
CUSTOMER RELATIONSHIPS
isto home Bar e experienc s) (machine KEY RESOURCES
COST STRUCTURE
espres so capsu les
CUSTOMER SEGMENTS
household
s
DISTRIBUTION CHANNELS
retail outlets
REVENUE STREAMS
business
the business model canvas PARTNER NETWORK
KEY ACTIVITIES
OFFER
CUSTOMER RELATIONSHIPS
isto home Bar e experienc s) (machine KEY RESOURCES
espres so capsu les
CUSTOMER SEGMENTS
household
s
DISTRIBUTION CHANNELS
retail tlestsso. Nes ou pre com
COST STRUCTURE
REVENUE STREAMS
business
the business model canvas PARTNER NETWORK
KEY ACTIVITIES
OFFER
CUSTOMER RELATIONSHIPS
isto home Bar e experienc s) (machine KEY RESOURCES
espres so capsu les
CUSTOMER SEGMENTS
household
s
DISTRIBUTION CHANNELS
retail enttser aollu tle ces N pc re sso. com
COST STRUCTURE
REVENUE STREAMS
business
the business model canvas PARTNER NETWORK
KEY ACTIVITIES
OFFER
CUSTOMER RELATIONSHIPS
isto home Bar e experienc s) (machine KEY RESOURCES
espres so capsu les
CUSTOMER SEGMENTS
household
s
DISTRIBUTION CHANNELS
retail enttser aollu tle ces N pc re sso. com
COST STRUCTURE
REVENUE STREAMS
business
the business model canvas PARTNER NETWORK
KEY ACTIVITIES
OFFER
CUSTOMER RELATIONSHIPS
isto home Bar e experienc s) (machine KEY RESOURCES
espres so capsu les
CUSTOMER SEGMENTS
household
s
DISTRIBUTION CHANNELS
Nespre sso il a t e srtores enttser aollu tle ces N pc re sso. com
COST STRUCTURE
REVENUE STREAMS
business
the business model canvas PARTNER NETWORK
KEY ACTIVITIES
OFFER
isto home Bar e experienc s) (machine KEY RESOURCES
espres so capsu les
CUSTOMER RELATIONSHIPS
Nespres club
CUSTOMER SEGMENTS
so household
s
DISTRIBUTION CHANNELS
Nespre sso il a t e srtores enttser aollu tle ces N pc re sso. com
COST STRUCTURE
REVENUE STREAMS
business
the business model canvas PARTNER NETWORK
KEY ACTIVITIES
OFFER
isto home Bar e experienc s) (machine KEY RESOURCES
espres so capsu les
CUSTOMER RELATIONSHIPS
Nespres club
CUSTOMER SEGMENTS
so household
s
DISTRIBUTION CHANNELS
Nespre sso il a t e srtores enttser aollu tle ces N pc re sso. com
COST STRUCTURE
REVENUE STREAMS
capsule sales
business
the business model canvas PARTNER NETWORK
KEY ACTIVITIES
OFFER
isto home Bar e experienc s) (machine KEY RESOURCES
espres so capsu les
CUSTOMER RELATIONSHIPS
Nespres club
CUSTOMER SEGMENTS
so household
s
DISTRIBUTION CHANNELS
Nespre sso il a t e srtores enttser aollu tle ces N pc re sso.
business
com
COST STRUCTURE
REVENUE STREAMS
capsule sales
machine sales
the business model canvas PARTNER NETWORK
KEY ACTIVITIES
OFFER
isto home Bar e experienc s) (machine KEY RESOURCES
distribution channels COST STRUCTURE
espres so capsu les
CUSTOMER RELATIONSHIPS
Nespres club
CUSTOMER SEGMENTS
so household
s
DISTRIBUTION CHANNELS
Nespre sso il a t e srtores enttser aollu tle ces N pc re sso.
business
com
REVENUE STREAMS
capsule sales
machine sales
the business model canvas PARTNER NETWORK
KEY ACTIVITIES
OFFER
isto home Bar e experienc s) (machine KEY RESOURCES
brand distribution channels COST STRUCTURE
espres so capsu les
CUSTOMER RELATIONSHIPS
Nespres club
CUSTOMER SEGMENTS
so household
s
DISTRIBUTION CHANNELS
Nespre sso il a t e srtores enttser aollu tle ces N pc re sso.
business
com
REVENUE STREAMS
capsule sales
machine sales
the business model canvas PARTNER NETWORK
KEY ACTIVITIES
OFFER
isto home Bar e experienc s) (machine KEY RESOURCES
n brandroductio p ies t i l i c fa distribution
espres so capsu les
CUSTOMER RELATIONSHIPS
Nespres club
so household
s
DISTRIBUTION CHANNELS
Nespre sso il a t e srtores enttser aollu tle ces N pc re sso.
business
com
channels COST STRUCTURE
CUSTOMER SEGMENTS
REVENUE STREAMS
capsule sales
machine sales
the business model canvas PARTNER NETWORK
KEY ACTIVITIES
OFFER
isto home Bar e experienc s) (machine KEY RESOURCES
patents n brandroductio p ies t i l i c fa distribution
espres so capsu les
CUSTOMER RELATIONSHIPS
Nespres club
so household
s
DISTRIBUTION CHANNELS
Nespre sso il a t e srtores enttser aollu tle ces N pc re sso.
business
com
channels COST STRUCTURE
CUSTOMER SEGMENTS
REVENUE STREAMS
capsule sales
machine sales
the business model canvas PARTNER NETWORK
KEY ACTIVITIES
production
KEY RESOURCES
patents n brandroductio p ies t i l i c fa distribution
OFFER
isto home Bar e experienc s) (machine
espres so capsu les
CUSTOMER RELATIONSHIPS
Nespres club
so household
s
DISTRIBUTION CHANNELS
Nespre sso il a t e srtores enttser aollu tle ces N pc re sso.
business
com
channels COST STRUCTURE
CUSTOMER SEGMENTS
REVENUE STREAMS
capsule sales
machine sales
the business model canvas PARTNER NETWORK
KEY ACTIVITIES
production distrib ution KEY RESOURCES
patents n brandroductio p ies t i l i c fa distribution
OFFER
isto home Bar e experienc s) (machine
espres so capsu les
CUSTOMER RELATIONSHIPS
Nespres club
so household
s
DISTRIBUTION CHANNELS
Nespre sso il a t e srtores enttser aollu tle ces N pc re sso.
business
com
channels COST STRUCTURE
CUSTOMER SEGMENTS
REVENUE STREAMS
capsule sales
machine sales
the business model canvas PARTNER NETWORK
KEY ACTIVITIES
g marketin
production distrib ution KEY RESOURCES
patents n brandroductio p ies t i l i c fa distribution
OFFER
isto home Bar e experienc s) (machine
espres so capsu les
CUSTOMER RELATIONSHIPS
Nespres club
so household
s
DISTRIBUTION CHANNELS
Nespre sso il a t e srtores enttser aollu tle ces N pc re sso.
business
com
channels COST STRUCTURE
CUSTOMER SEGMENTS
REVENUE STREAMS
capsule sales
machine sales
the business model canvas PARTNER NETWORK
KEY ACTIVITIES
g marketin
machine manufacturer
production distrib ution KEY RESOURCES
patents n brandroductio p ies t i l i c fa distribution
OFFER
isto home Bar e experienc s) (machine
espres so capsu les
CUSTOMER RELATIONSHIPS
Nespres club
so household
s
DISTRIBUTION CHANNELS
Nespre sso il a t e srtores enttser aollu tle ces N pc re sso.
business
com
channels COST STRUCTURE
CUSTOMER SEGMENTS
REVENUE STREAMS
capsule sales
machine sales
the business model canvas PARTNER NETWORK
KEY ACTIVITIES
g marketin
machine manufacturer
production distrib ution KEY RESOURCES
patents n brandroductio p ies t i l i c fa distribution
OFFER
isto home Bar e experienc s) (machine
espres so capsu les
CUSTOMER RELATIONSHIPS
Nespres club
marketing
so household
s
DISTRIBUTION CHANNELS
Nespre sso il a t e srtores enttser aollu tle ces N pc re sso.
business
com
channels COST STRUCTURE
CUSTOMER SEGMENTS
REVENUE STREAMS
capsule sales
machine sales
the business model canvas PARTNER NETWORK
KEY ACTIVITIES
OFFER
g marketin
machine manufacturer
production distrib ution KEY RESOURCES
patents n brandroductio p ies t i l i c fa distribution
isto home Bar e experienc s) (machine
espres so capsu les
CUSTOMER RELATIONSHIPS
Nespres club
marketing
so household
s
DISTRIBUTION CHANNELS
Nespre sso il a t e srtores enttser aollu tle ces N pc re sso.
business
com
channels COST STRUCTURE
CUSTOMER SEGMENTS
REVENUE STREAMS
retail logistic s
capsule sales
machine sales
the business model canvas PARTNER NETWORK
KEY ACTIVITIES
OFFER
g marketin
machine manufacturer
production distrib ution KEY RESOURCES
patents n brandroductio p ies t i l i c fa distribution
isto home Bar e experienc s) (machine
espres so capsu les
CUSTOMER RELATIONSHIPS
Nespres club
producti on g in t e mark
so household
s
DISTRIBUTION CHANNELS
Nespre sso il a t e srtores enttser aollu tle ces N pc re sso.
business
com
channels COST STRUCTURE
CUSTOMER SEGMENTS
REVENUE STREAMS
retail logistic s
capsule sales
machine sales
RESULTS
35% growth p.a. for the last 8 consecutive years
achieved 2.5+ billion CHF revenue in 2009
fastest-growing business in the NestlĂŠ group
there is something even more remarkable about this example!