Workshop Alex Osterwalder

Rethinking Business Models AlexOsterwalder.com

Twitter: business_design

BusinessModelGeneration.com

Time Machine

Time Machine

2009

2005

2000

1995

1990

1985

1980

1975

1970

1965

1960

1959

1958

[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

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

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

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

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

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

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

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

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

notfall reehave Skype Out to pay

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 no network

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

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

paymen t provide rs Logitech telco partners

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

paymen t provide rs outsourcing Logitech non-core telco partners

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

paymen t provide rs outsourcing Logitech non-core telco partners

Software COST STRUCTURE

are w t f so ent m p o devel

complaint software company 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

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!