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Visual Business Modeling

Some Fun with Alex Osterwalders BMC | Service Design Drinks Berlin, 03.09.2012
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Choices & Consequences

Activity Networks

Value Flow Mapping for Ecosystems

Value Conguration Perspective: Chains/Shops/Networks

Tom Hulmes Canvas (IDEO)

Patrick Sthlers Canvas (Fluidmind)

etc.
!

Other Scientic Conceptualisations

Fraunhofer IAO Canvas

Image Credits / Sources in order of appearance: Casadesus-Masanell, R., & Ricart, J. E. (2011). How to Design A Winning Business Model. Harvard Business Review, 89(1/2), 100107. // Porter, M. E. (1996). What is Strategy? Harvard Business Review, (November - December). // Ouden, E. den. (2011). Innovation Design: Creating Value for People, Organizations and Society (1st ed.). Springer London. // Fjeldstad, . D., & Stabell, C. B. (1998). Conguring Value for Competitive Advantage: On Chains, Shops, and Networks. Strategic Management Journal,, Vol 19, 413437. // valuenetworksandcollaboration.com, 2011 // Tom Hulme (http://weijiblog.com/ startup-tools/) // Patrick Sthler (http://blog.business-model-innovation.com/tools/) // Johnson, M. W., Christensen, C. M., & Kagermann, H. (2008). Reinventing Your Business Model. Harvard Business Review, 86(12), 5059. // Fraunhofer IAO (http://moby.iao.fraunhofer.de/)

Osterwalders Business Model Canvas: The Building Blocks

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

Customer Segments

Which customers do we serve? What are the jobs they need to get done?
Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl)

Value Proposition

Tip: Use the Value PropositionDesigner!

What do we offer them? Which problem do we really solve? What value do we really provide?
Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl)

Channels

How can we best reach/serve each customer segment? What are the best interaction/touch points?
Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl)

Relationships

What relations shall we establish with our customer segments? Personal? Automated? Acquisitive? Retentive?
Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl)

Relationships

fe r i ng f

ome r C us t

r f ac e I n te

What relations shall we establish with our customer segments? Personal? Automated? Acquisitive? Retentive?
Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl)

Revenue Streams

What are our customers really willing to pay for? How? Transactional or recurring revenues?
images by JAM
Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl)

Key Resources

Which resources and assets are critical to successfully run our business?
images by JAM
Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl)

Key Activities

What essential key activities do we have to perform to deliver our value proposition?
images by JAM
Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl)

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Key Partners

Who are critical partners and suppliers leveraging our business model? With whom do we co-create value?
images by JAM
Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl)

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Key Partners

nf ras I

t u re t r uc

Who are critical partners and suppliers leveraging our business model? With whom do we co-create value?
images by JAM
Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl)

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Cost Structure

What is our resulting cost structure? Which key elements drive costs?
Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl)

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Cost Structure

ance Fi n

What is our resulting cost structure? Which key elements drive costs?
Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl)

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Key Activities

Value Proposition

Relationships

Key Partners

Customer Segments

Cost Structure

Key Resources

Revenue Streams Channels

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

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Starting Points: Resource-Driven


Key Activities Value Proposition Relationships

Key Partners

Customer Segments

Cost Structure

Key Resources

Revenue Streams Channels

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

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Starting Points: Offer-Driven


Key Activities Value Proposition Relationships

Key Partners

Customer Segments

Cost Structure

Key Resources

Revenue Streams Channels

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

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Starting Points: Customer-Driven


Key Activities Value Proposition Relationships

Key Partners

Customer Segments

Cost Structure

Key Resources

Revenue Streams Channels

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

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Starting Points: Finance-Driven


Key Activities Value Proposition Relationships

Key Partners

Customer Segments

Cost Structure

Key Resources

Revenue Streams Channels

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

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Starting Points: Multiple-Epicenter-Driven


Key Activities Value Proposition Relationships

Key Partners

Customer Segments

Cost Structure

Key Resources

Revenue Streams Channels

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

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Key Activities

Value Proposition

Relationships

Key Partners

Customer Segments

Cost Structure

Key Resources

Revenue Streams Channels

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

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Key Activities

Value Proposition

Relationships

Key Partners

Customer Segments

i n a te Elim

s ts Co

Re duc e /

C re ate /R

Va l ue

aise

Cost Structure

Key Resources

Revenue Streams Channels

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

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Key Activities

Value Proposition

Relationships

Key Partners

Best Sustainable Equilibrium

Customer Segments

i n a te Elim

s ts Co

Re duc e /

C re ate /R

Va l ue

aise

a l ue x. v ma f or u re ap t c any mp e co th
Cost Structure Key Resources

m a x. v a l ue f or t he u se r

Revenue Streams Channels

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

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Video Gaming Strategy Canvas: Nintendo Wii (in 2007)


Key Activities Value Proposition Relationships

Nintendo Wii

Microsoft Xbox 360

Sony PS3

Key Partners

Customer Segments

Value Level & Price

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Re duc e /

C re ate /R

Va l ue

aise

tro l

isk

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Mo

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Ga

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Ha

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Key Resources
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Channels
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CP

Pri

GP

on

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vie

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Cost Structure

Revenue Streams
r

iy

20

KP

KA

VP

CR

CS

KR

CH

CS

RS

Nintendo Wii (in 2007)

eliminate

reduce

create

raise

unchanged

KP

KA

VP

CR

CS

state-of-the-art chip development

male hardcore gamers


KR CH

n e w p ro p r ie t ar y te c h n o l o g y

passive immersion with high-end performance and graphics

CS

RS

c o n s o le b s idie s su

Nintendo Wii (in 2007)

eliminate

reduce

create

raise

unchanged

KP

KA

VP

CR

CS

state-of-the-art chip development

g ame de ve l o p e r s
male hardcore gamers

KR

CH

game developers

n e w p ro p r ie t ar y te c h n o l o g y

passive immersion with high-end performance and graphics

retail distribution

CS

RS

c o n s o le b s idie s su

royalties from game developers

Nintendo Wii (in 2007)

eliminate

reduce

create

raise

unchanged

KP

KA

VP

CR

CS

state-of-the-art chip development

g ame de ve l o p e r s
male hardcore gamers

KR

CH

game developers

n e w p ro p r ie t ar y te c h n o l o g y

passive immersion with high-end performance and graphics

retail distribution

CS

RS

c o n s o le b s idie s su

technology development costs

n s o le co uc t io n pro d s cos t

royalties from game developers

Nintendo Wii (in 2007)

eliminate

reduce

create

raise

unchanged

KP

KA

VP

CR

CS

state-of-the-art chip development

r n a t i ve a l te once p t g ame c h re s e a rc
ic ro - r STM c s f o ro n i e le c t EMS M e te rs le rom ac c e

mo t i o n c o n t ro l le d g am i ng
u t, rko er y , wo e c o v o rt a l r sp ic h ys p
f un f ac t o r e x pe r , so cial ie n c e f am i l y
CH

g ame de ve l o p e r s
male hardcore gamers

KR

o t io n m n t ro l co olo gy te c h n

physical activity, social get-together

c asua l g ame rs
retail distribution families
gi r ls

game developers

n e w p ro p r ie t ar y te c h n o l o g y

passive immersion with high-end performance and graphics

CS

RS

c o n s o le b s idie s su

technology development costs

n s o le co uc t io n pro d s cos t

royalties from game developers

Nintendo Wii (in 2007)

eliminate

reduce

create

raise

unchanged

KP

KA

VP

CR

CS

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

r n a t i ve a l te once p t g ame c h re s e a rc

mo t i o n c o n t ro l le d g am i ng
u t, rko er y , wo e c o v o rt a l r sp ic h ys p
f un f ac t o r e x pe r , so cial ie n c e f am i l y
CH

g ame de ve l o p e r s
male hardcore gamers

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

retail store involvement

KR

o t io n m n t ro l co olo gy te c h n

physical activity, social get-together

c asua l g ame rs
retail distribution families
gi r ls

game developers

n e w p ro p r ie t ar y te c h n o l o g y

passive immersion with high-end performance and graphics

CS

RS

c o n s o le b s idie s su

technology development costs

n s o le co uc t io n pro d s cos t

royalties from game developers

h a rd w s a le s a re pro f i t

Nintendo Wii (in 2007)

eliminate

reduce

create

raise

unchanged

KP

KA

VP

CR

CS

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

r n a t i ve a l te once p t g ame c h re s e a rc

Desirability
u t, rko er y , wo e c o v o rt a l r sp ic h ys p
f un f ac t o r e x pe r , so cial ie n c e f am i l y
CH

mo t i o n c o n t ro l le d g am i ng

g ame de ve l o p e r s
male hardcore gamers

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

retail store involvement

KR

o t io n m n t ro l co olo gy te c h n

physical activity, social get-together

game developers

n e w p ro p r ie t ar y te c h n o l o g y

Best passive immersion Sustainable with high-end Equilibrium performance and


graphics

c asua l g ame rs
retail distribution families
gi r ls

Feasibility
CS RS

Viability
royalties from game developers

c o n s o le b s idie s su

technology development costs

n s o le co uc t io n pro d s cos t

h a rd w s a le s a re pro f i t

Nintendo Wii (in 2007)

eliminate

reduce

create

raise

unchanged

Key Activities

Value Proposition

Relationships

Key Partners

Customer Segments

Cost Structure

Key Resources

Revenue Streams Channels

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

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Key Activities

Value Proposition

Relationships

Key Partners

Customer Segments

10: MI 00 NU T
ES
Cost Structure Key Resources Revenue Streams Channels
Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl)

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What I havent told you

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Want to know more? Join the Business Model Generation!

businessmodelgeneration.com/book

businessmodelyou.com

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and start following these Guys and Organisations!

Alexander Osterwalder: http://www.businessmodelalchemist.com Patrick Sthler: http://blog.business-model-innovation.com Steve Blank: http://steveblank.com Doblin Group: http://news.doblin.com Innosight: http://www.innosight.com BusinessModelsInc: http://www.businessmodelsinc.com DesignWorks @ Rotman: http://bit.ly/TYRLhG Illinois Institute of Design: http://www.id.iit.edu/news
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Design-driven strategic business planning


Jan Schmiedgen // Zwiestdter Strae 7 // 12055 Berlin // +49 173 3 83 15 26 // kontakt@schmiedgen.eu

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Backup: Some Examples of well known Business Models

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Image Credit: 2011 Business Models Inc. (www.businessmodelsinc.com)

www.businessmodelgeneration.com

Image Credit: 2008 XPLANE (www.xplane.com) & Alexander Osterwalder (www.alexosterwalder.com)

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Image Credit: 2008 XPLANE (www.xplane.com) & Alexander Osterwalder (www.alexosterwalder.com)

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Image Credit: 2011 Business Models Inc. (www.businessmodelsinc.com)

www.businessmodelgeneration.com

Image Credit: 2011 Business Models Inc. (www.businessmodelsinc.com)

www.businessmodelgeneration.com