BusinessModelGeneration&GreenTechnologies

Dr.MichaelPrange

WinterSemester2014/2015
Dr.Ing.MichaelPrange

TUHH Institut TIM(W7)

Schwarzenbergstrae 95D
D21073Hamburg
michael.prange@tuhh.de

Overview
1. Targetsofthecourse
2. Contentsoftheseminar
3. Teachingmethods
4. Schedule
5. Literature

Dr.Ing.MichaelPrange

Targetsofthecourse
ThecourseBusinessModelGeneration&GreenTechnologies"isoffered
regularlyinwintersemesterasanelectivecourseforallmaster'sprogramsat
TUHH.
Basedonexamplesandcasestudiesprimarilyinthefieldofgreen
technologies,studentslearnthebasicsofBusinessModelGenerationandwill
beabletodevelopbusinessmodelsandtoevaluatestartupprojects.
Assupplement,thecourseCorporateEntrepreneurship&GreenInnovation
takesplaceregularlyinsummersemester.

Dr.Ing.MichaelPrange

Contentsoftheseminar
GreenTechnologies
Globaltrends
Resourceefficiency
Climateprotection

BusinessModels
Businessidea
Formsofrepresentation
Businessmodelpatterns

BusinessStrategy
Designtechniques
Strategydevelopment
Valuepropositionarchitecture
Dr.Ing.MichaelPrange

BusinessPlanning
Businessplan
Financing
Foundation

GreenBusiness
Renewableenergysystems
Energyefficientbuildings
Integratedmobilitysolutions

CurrentTopics
Componentbasedfoundations
ConceptdrivenStartups
LeanStartupmethod
4

Teachingmethods

LectureswithPowerPointslides

Discussionusingexamples

Groupworkusingcasestudies

Gradingbywrittenexam

Dr.Ing.MichaelPrange

Schedule
15.10.2014

15.11.2014

06.12.2014

09:00 10:30

GreenTechnologies

BusinessStrategy

GreenBusiness

10:30 12:00

Groupwork

Groupwork

Groupwork

12:00 13:00

LunchBreak

LunchBreak

LunchBreak

13:00 14:30

BusinessModels

BusinessPlanning

CurrentTopics

14:30 16:00

Groupwork

Group work

Exam

Dr.Ing.MichaelPrange

Literature
Osterwalder,A.;Pigneur,Y.:BusinessModelGeneration.Wiley,2010.
Bessant,J.;Tidd,J.:InnovationandEntrepreneurship.Wiley,2011.
Cooper,B.;Vlaskovits,P.:TheLeanEntrepreneur.Wiley,2013.
Ries,E.:TheLeanStartup.CrownBusiness,2012.
Faltin,G.:BrainsversusCapital.Stiftung Entrepreneurship,2013.

Dr.Ing.MichaelPrange

GreenTechnologies

Dr.Ing.MichaelPrange

GreenTechnologies
1. Introduction
2. Globaltrends
3. Resourceefficiency
4. Climateprotection
5. Groupwork

Dr.Ing.MichaelPrange

Introduction

GreenTechnologies definetechnologiesforenvironmentalandclimate
protectionaswellasforsustainableandefficientuseofnaturalresources.
Alternative:CleanTechnologies,EnvironmentalTechnologies

GreenBusiness definesenterpriseswhichofferproductsandservicesinthe
fieldofGreenTechnologies.
Alternative:Cleantech Business,EnvironmentalBusiness

GreenEntrepreneurship definesinnovativeentrepreneurshipinthefieldof
GreenBusinessaswellasStartupsinthefieldofGreenTechnologies.
Alternative:Ecopreneurship,SustainableEntrepreneurship
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10

Trends
TypesofTrends:

Metatrends
Megatrends
Socioculturaltrends
ConsumptionandZeitgeisttrends
ProductandFashiontrends
Technotrends

PenetrationdepthsofTrends:

RequirementsforMegatrends:
Halfperiodofatleast25to30
years
Persistenceagainstshorttermups
anddowns
Appearanceandwithimpactinall
possibleareasoflife
Basicallyglobalcharacter

Puresurfacephenomenon
(e.g.Producttrends)
Deep,sustainabletendency
(e.g.Megatrends)

Source:Zukunftsinstitut (2013)
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11

Megatrends
Globalization
Urbanization
NeoEcology
Connectivity
Mobility
Health
NewLearning
NewWork
FemaleShift
SilverSociety

Source:Zukunftsinstitut (2013)

Individualization
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12

MegatrendUrbanization
Inthefuture,20to30megacitiesdominatetheworldeconomy:
1970aboutofhumanitylivedinci es.
2010morethanhalfofallpeoplelivedincities.
2050aboutofhumanityisexpectedtoliveincities.

RelatedtoGreenTechnologies:

SmartCity
CarSharing
BikeBoom
MixedMobility
UrbanFarming
UrbanMining
MegaCities
CityQuarters

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13

MegatrendNeoEcology
FocusonSustainabilityandEfficiencyinallareasofLife
LOHASmovementinUSA(LifestyleofHealthandSustainability)
RelatedtoGreenTechnologies:

BioBoom
RenewableEnergy
GreenJobs
Environmentalawareness
SustainabilitySociety
GreenInvestments
EMobility
EnergyGrids
Reuse,Reduce,Recycle
SmartBuildings

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14

MegatrendConnectivity
Internetwithmorethan4billionusersasbasisforworldwideInformation
andCooperation
StronggrowthofSocialMediaandCloudComputingaswellasincreasing
linkageofCyberspaceandRealWorld
RelatedtoGreenTechnologies:

ECommerce
InternetofThings
BigData
OpenInnovation
EnergyGrids
SmartDevices
SmallWorldNetworks
CrowdSourcing

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15

MegatrendMobility
Greaterindividualmobilitybymoreleisureandprosperity
Increaseinglobalmobilitybyroad,railandairtransport
Increaseintransportvolumeinlogisticsduetoglobalization
RelatedtoGreenTechnologies:

MCommerce
EMobility
Marketsontheway
24/7Society
MixedMobility
BikeBoom
CarSharing
SlowTraffic

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16

MegatrendsasbasisforInnovations
Megatrends
Actionfields

Dr.Ing.MichaelPrange

SmartCity
CarSharing
BioBoom
EMobility
EnergyGrids
Smart Buildings
BigData
ECommerce
MixedMobility
BikeBoom

Green
Technologies

17

KondratieffCycles

1790

Steamengine
Cotton

1890

1840

Steel
Railway

Electrical
engineering
Chemistry

1940

Petrochemistry
Automobile

1990

Information
technology

LongeconomicwavesduetonewBasicTechnologies

Clothing
1.Kondratieff

Dr.Ing.MichaelPrange

Masstransport
2.Kondratieff

Mass consumption

Individual
mobility

3.Kondratieff

4.Kondratieff

Information,
Communication

5.Kondratieff

18

WhatinfluencesthenextKondratieffCycle?
Noincremental,butonlyradicalinnovationsformthetriggerforlong
economicwaves.
GreenTechnologiesandLifeScienceTechnologiesbasedonInformation
TechnologiescouldbethenewBasicTechnologiesforthe6th Kondratieff
cycle.
AfterthedotcomboombeginsinSiliconValleyalreadythegreentechboom.
Thedevelopmentspeedofinternetbasedeconomyisurgentlyneededin
GreenBusinessforresourceefficiency,climatechangeandsustainable
growth!

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19

Discussion
WhatimpactdoesthemegatrendUrbanizationhaveonourcities?
WhatinfluencedoesthemegatrendNeoEcologyhaveonourdailylife?
HowwillthemegatrendConnectivitychangeourworkingenvironment?
WhichroledoesthemegatrendMobilityplayintheworldeconomy?
WhatcanGreenTechnologieseffectinthefuture?

Dr.Ing.MichaelPrange

20

Resourceefficiency

Resourceefficiency isdefinedastheratioofaparticularbenefittothe
requireduseofnaturalresources.
Thebenefitcanbeprovidedintheformofaproductorservice.Thelowerthe
requiredinputofnaturalresourcesorthehigherthebenefitoftheproductor
service,thehigheristheresourceefficiency.

NaturalResources arecomponentsorfunctionsofnaturethathavean
economicbenefit.Theseincluderawmaterials,spaceaswellasthefunction
andqualityofcomponentsoftheenvironmentsuchassoil,airandwater.

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21

Resourceefficiencyasapoliticalgoal
Avoidanceofsupplybottlenecks(technicalandeconomicavailabilityof
certainrawmaterials)
Raisingofmarketpotentialandcompetitiveadvantagesforresource
efficiencytechnologiesinthesenseofecologicalmodernizationofthe
economy
Reductionofnegativeenvironmentaleffectsresultingfromtheextraction
andprocessingofrawmaterials,themanufacturingofsemifinishedand
finishedgoodsaswellastheuseofthegeneratedproductsandtheirdisposal
Compliancewithplanetarysustainabilityboundaries
Preservationofnaturalresourcesforfuturegenerations

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22

Resourceefficiencyintheproductlifecycle
Lightweightandminiaturization
alreadyinproductdesign
Savingsofrawmaterialsduring
theproduction
Reductionofmaterial
consumptionintheusephase
Possibilityofcleanseparationand
recyclingofthematerialsinthe
technicalornaturalcycles

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23

Climateprotection

Climateprotection isthecollectivetermforallmeasuresthatcounteract
humaninducedglobalwarmingandmitigatepossibleconsequencesoreven
preventthem.

Globalwarming referstotheriseintheaveragetemperatureofthelower
atmosphereandtheoceans,whichhasbeenobservedsincethemiddleofthe
19thcentury.
ByClimateResearchexpectedandpartlyalreadyobservableconsequencesof
globalwarmingincludedependingontheEarthregion:seaiceandglaciers
melt,sealevelrise,thawingofpermafrost,growingaridzonesandincreasing
weatherextremeswithcorrespondingrepercussionsonthelifeandsurvival
situationofpeopleandanimals.

Dr.Ing.MichaelPrange

24

Climateprotectionasapoliticalgoal
Reductionoftheconsumptionoffossilfuels
Reductionoftheemissionofgreenhousegasesthatarereleasedbyindustrial
andagriculturalproduction,byenergyconsumptionintransport,inprivate
homesandinpublicspaces
Preservationandpromotionofsuchnaturalcomponentsthatcan
accommodatethequantitativelymostsignificantgreenhousegascarbon
dioxide(oceans,tropicalrainforests,borealforests,wetlands)
Measurestoadapttotheunavoidableclimatechange(dikeconstruction,
disasterpreparedness)
Educationandbehavioralchangesofpeople,especiallyinindustrialized
countrieswithhighenergyconsumptionandgreenhousegasemissions
Dr.Ing.MichaelPrange

25

SustainablegrowthinEurope
Buildingamorecompetitivelowcarboneconomythatmakesefficient,
sustainableuseofresources
Protectingtheenvironment,reducingemissionsandpreventingbiodiversity
loss
CapitalizingonEurope'sleadershipindevelopingnewgreentechnologiesand
productionmethods
Introducingefficientsmartelectricitygrids
HarnessingEUscalenetworkstogiveEuropeanbusinesses(especiallysmall
manufacturingfirms)anadditionalcompetitiveadvantage
Improvingthebusinessenvironment(inparticularforSMEs)
Dr.Ing.MichaelPrange

26

HighTechStrategyoftheGermanGovernment
Prioritizefuturetasksforprosperityandqualityoflife

DigitalEconomyandSociety
SustainableEconomicsandEnergy
InnovativeWorkingEnvironment
HealthyLiving
IntelligentMobility
CivilSecurity

Joinforcesandpromotetransfer
Strengtheninnovationdynamicsoftheeconomy
Createafavorableenvironmentforinnovation
Strengthendialogueandparticipation

Dr.Ing.MichaelPrange

27

EconomicSectorsofGreenBusiness
AutomobileandTransport
BioFuelsandAgriculture
EnergyManagementandEfficiency
RenewableEnergyTechnologies
EnergyStorage
NanotechnologyandNanomaterials
WasteManagement
Water

Dr.Ing.MichaelPrange

28

Discussion
WhyhastheEuropeanUnioncommittedtosustainablegrowth?
WhatdoestheGermangovernmentwanttoachievewiththeirhightech
strategy?
Inadditiontothepoliticalgoals,doesitalsomakesensefromabusiness
perspectivetodealwithresourceefficiency?
Whatcanbusinessescontributetoclimateprotection?

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29

Groupwork1:GreenTechnologies
60MinutesWorkingTime
20MinutesPresentation
10MinutesDiscussion

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30

BusinessModels

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31

BusinessModels
1. Introduction
2. Businessidea
3. Formsofrepresentation
4. Businessmodelpatterns
5. Groupwork

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32

Introduction

Abusinessidea isaconceptwithwhichaneconomicexistencecanbe
established.

Abusinessmodel describestherationaleofhowanorganizationcreates,
deliversandcapturesvalue.

Abusinessmodelpattern describesbusinessmodelswithsimilar
characteristics,similararrangementsofbuildingblocksorsimilarbehaviors.

Abusinessmodelinnovation isadeliberatealterationofanexistingbusiness
modelorthegenerationofanewbusinessmodelforanexistingorganization.

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33

Businessidea
Thefollowingtypesofbusinessideascanbedistinguished:
Imitativebusinessideas
Improvedbusinessideas
Innovativebusinessideas
Businessidea

imitative

improved

innovative

Product

known

partlyknown

unknown

Functionality

known

partlyknown

unknown

Manufacturing&
distributioncosts

known

partlyknown

estimated

Price

known

partlyestimated

estimated

Product awareness

given

partlygiven

notgiven

Customerneeds

known

partlyknown

estimated

Dr.Ing.MichaelPrange

34

Innovativebusinessideas
Aninnovativebusinessideaisbasedonanewproductoranewservice,
whichisnotyetknowninthemarketandtheirneedsaredifficulttoestimate.
Variousdesigntechniquescanbeusedtodesignsuitablebusinessmodelsfor
innovativebusinessideas:

CustomerInsights
Ideation
VisualThinking
Prototyping
Storytelling
Scenarios

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35

Formsofrepresentation
Arepresentationofabusinessmodelmustcoverthemainareasofa
business:

Customers
Offer
Infrastructure
Finance

BusinessModelCanvasallowastructuredrepresentationandvisualizationof
businessideasandbusinessmodels.

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36

BusinessModelCanvas

KeyPartners

KeyActivities

KeyResources

CostStructure

Dr.Ing.MichaelPrange

ValuePropositions

CustomerRelationships

CustomerSegments

Channels

RevenueStreams

37

Buildingblocksofbusinessmodels
1. CustomerSegments
2. ValuePropositions
3. Channels
4. CustomerRelationships
5. RevenueStreams
6. KeyResources
7. KeyActivities
8. KeyPartnerships
9. CostStructure
Dr.Ing.MichaelPrange

38

Example:AppleiPod/iTunesBusinessModel

KeyPartners

KeyActivities

KeyResources

CostStructure

Dr.Ing.MichaelPrange

ValuePropositions

CustomerRelationships

CustomerSegments

Channels

RevenueStreams

39

CustomerSegments
TheCustomerSegmentsBuildingBlockdefinesthedifferentgroupsofpeople
ororganizationsanenterpriseaimstoreachandserve:
Forwhomarewecreatingvalue?
Whoareourmostimportantcustomers?

Examples:

MassMarket
NicheMarket
Segmented
Diversified
MultisidedPlatform

Dr.Ing.MichaelPrange

40

Example:AppleiPod/iTunesBusinessModel

KeyPartners

KeyActivities

ValuePropositions

CustomerRelationships

CustomerSegments
Massmarket

KeyResources

CostStructure

Dr.Ing.MichaelPrange

Channels

RevenueStreams

41

ValuePropositions
TheValuePropositionsBuildingBlockdescribesthebundleofproductsand
servicesthatcreatevalueforaspecificCustomerSegment:

Whatvaluedowedelivertothecustomer?
Whichoneofourcustomersproblemsarewehelpingtosolve?
WhatbundlesofproductsandservicesareweofferingtoeachCustomerSegment?
Whichcustomerneedsarewesatisfying?

Characteristics:

Newness
Performance
Customization
GettingtheJobDone
Design,Brand/Status
Price,CostReduction,RiskReduction
Accessibility,Convenience/Usability

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42

Example:AppleiPod/iTunesBusinessModel

KeyPartners

KeyActivities

ValuePropositions

CustomerRelationships

Seamless
music
experience

KeyResources

CostStructure

Dr.Ing.MichaelPrange

CustomerSegments
Massmarket

Channels

RevenueStreams

43

Channels
TheChannelsBuildingBlockdescribeshowacompanycommunicateswith
andreachesitsCustomerSegmentstodeliveraValueProposition:

ThroughwhichChannelsdoourCustomerSegmentswanttobereached?
Howarewereachingthemnow?HowareourChannelsintegrated?
Whichonesworkbest?Whichonesaremostcostefficient?
Howareweintegratingthemwithcustomerroutines?

Channelphases:
1. Awareness:Howdoweraiseawarenessaboutourcompanysproductsand
services?
2. Evaluation:HowdowehelpcustomersevaluateourorganizationsValue
Proposition?
3. Purchase:Howdoweallowcustomerstopurchasespecificproductsandservices?
4. Delivery:HowdowedeliveraValuePropositiontocustomers?
5. Aftersales:Howdoweprovidepostpurchasecustomersupport?
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44

Example:AppleiPod/iTunesBusinessModel

KeyPartners

KeyActivities

ValuePropositions

CustomerRelationships

Seamless
music
experience

KeyResources

CustomerSegments
Massmarket

Channels
Retailstores
Applestores
Website
iTunesstore

CostStructure

Dr.Ing.MichaelPrange

RevenueStreams

45

CustomerRelationships
TheCustomerRelationshipsBuildingBlockdescribesthetypesof
relationshipsacompanyestablisheswithspecificCustomerSegments:
WhattypeofrelationshipdoeseachofourCustomerSegmentsexpectusto
establishandmaintainwiththem?
Whichoneshaveweestablished?
Howaretheyintegratedwiththerestofourbusinessmodel?
Howcostlyarethey?

Examples:

Personalassistance
DedicatedPersonalAssistance
SelfService
AutomatedServices
Communities
Cocreation

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46

Example:AppleiPod/iTunesBusinessModel

KeyPartners

KeyActivities

ValuePropositions

CustomerRelationships

Seamless
music
experience

Lovemark

CustomerSegments
Massmarket

Highswitching
costs

KeyResources

Channels
Retailstores
Applestores
Website
iTunesstore

CostStructure

Dr.Ing.MichaelPrange

RevenueStreams

47

RevenueStreams
TheRevenueStreamsBuildingBlockrepresentsthecashacompany
generatesfromeachCustomerSegment(costsmustbesubtractedfrom
revenuestocreateearnings):

Forwhatvalueareourcustomersreallywillingtopay?
Forwhatdotheycurrentlypay?
Howaretheycurrentlypaying?
Howwouldtheyprefertopay?
HowmuchdoeseachRevenueStreamcontributetooverallrevenues?

Types:

Assetsale
Usagefee/subscription
Lending/renting/leasing
FixedPricing
DynamicPricing

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Example:AppleiPod/iTunesBusinessModel

KeyPartners

KeyActivities

ValuePropositions

CustomerRelationships

Seamless
music
experience

Lovemark

CustomerSegments
Massmarket

Highswitching
costs

KeyResources

Channels
Retailstores
Applestores
Website
iTunesstore

CostStructure

RevenueStreams
Largehardware
revenues

Dr.Ing.MichaelPrange

Lowmusic
revenues

49

KeyResources
TheKeyResourcesBuildingBlockdescribesthemostimportantassets
requiredtomakeabusinessmodelwork:

WhatKeyResourcesdoourValuePropositionsrequire?
OurDistributionChannels?
OurCustomerRelationships?
OurRevenueStreams?

Typesofresources:

Physical
Intellectual(brands,patents,copyrights,data)
Human
Financial

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50

Example:AppleiPod/iTunesBusinessModel

KeyPartners

KeyActivities

ValuePropositions

CustomerRelationships

Seamless
music
experience

Lovemark

CustomerSegments
Massmarket

Highswitching
costs

KeyResources

CostStructure

Channels

People

Retailstores

iPodhardware

Applestores

iTunessoftware

Website

Content+
agreements

iTunesstore

RevenueStreams
Largehardware
revenues

Dr.Ing.MichaelPrange

Lowmusic
revenues

51

KeyActivities
TheKeyActivitiesBuildingBlockdescribesthemostimportantthingsa
companymustdotomakeitsbusinessmodelwork:

WhatKeyActivitiesdoourValuePropositionsrequire?
OurDistributionChannels?
OurCustomerRelationships?
OurRevenuestreams?

Categories:
Production
ProblemSolving
Platform/Network

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52

Example:AppleiPod/iTunesBusinessModel

KeyPartners

KeyActivities
Hardwaredesign

ValuePropositions

CustomerRelationships

Seamless
music
experience

Lovemark

Marketing

KeyResources

CostStructure

Massmarket

Highswitching
costs

Channels

People

Retailstores

iPodhardware

Applestores

iTunessoftware

Website

Content+
agreements

iTunesstore

RevenueStreams
Largehardware
revenues

Dr.Ing.MichaelPrange

CustomerSegments

Lowmusic
revenues

53

KeyPartnerships
TheKeyPartnershipsBuildingBlockdescribesthenetworkofsuppliersand
partnersthatmakethebusinessmodelwork:

WhoareourKeyPartners?
WhoareourKeySuppliers?
WhichKeyResourcesareweacquiringfrompartners?
WhichKeyActivitiesdopartnersperform?

Motivationsforpartnerships:
Optimizationandeconomy
Reductionofriskanduncertainty
Acquisitionofparticularresourcesandactivities

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54

Example:AppleiPod/iTunesBusinessModel

KeyPartners

KeyActivities

Recordcompanies

Hardwaredesign

OEM

Marketing

KeyResources

CostStructure

ValuePropositions

CustomerRelationships

Seamless
music
experience

Lovemark

Massmarket

Highswitching
costs

Channels

People

Retailstores

iPodhardware

Applestores

iTunessoftware

Website

Content+
agreements

iTunesstore

RevenueStreams
Largehardware
revenues

Dr.Ing.MichaelPrange

CustomerSegments

Lowmusic
revenues

55

CostStructure
TheCostStructuredescribesallcostsincurredtooperateabusinessmodel:
Whatarethemostimportantcostsinherentinourbusinessmodel?
WhichKeyResourcesaremostexpensive?
WhichKeyActivitiesaremostexpensive?

Isyourbusinessmore:
CostDriven(leanestcoststructure,lowpricevalueproposition,maximum
automation,extensiveoutsourcing)
ValueDriven(focusedonvaluecreation,premiumvalueproposition)

SampleCharacteristics:

FixedCosts(salaries,rents,utilities)
Variablecosts
Economiesofscale
Economiesofscope

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Example:AppleiPod/iTunesBusinessModel

KeyPartners

KeyActivities

Recordcompanies

Hardwaredesign

OEM

Marketing

KeyResources

CustomerRelationships

Seamless
music
experience

Lovemark

CustomerSegments
Massmarket

Highswitching
costs

Channels

People

Retailstores

iPodhardware

Applestores

iTunessoftware

Website

Content+
agreements

iTunesstore

CostStructure
Marketing
+
Sales

ValuePropositions

RevenueStreams
People

Largehardware
revenues

Lowmusic
revenues

Manufacturing

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57

Discussion
Whataretheadvantagesofauniformrepresentationofbusinessmodels
withBusinessModelCanvas?
Whichimportancedokeypartnershipshaveinabusinessmodel?
WhatcanbederivedfromthefinancialstructureshownintheBusiness
ModelCanvas,andwhatnot?

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58

Businessmodelpatterns
Businessmodelswithsimilarcharacteristics,similararrangementsofbuilding
blocksorsimilarbehaviorscanbedescribedbybusinessmodelpatterns.
Someimportantconceptsofbusinessmodelpatternsare:
1.
2.
3.
4.
5.

Unbundlingbusinessmodels
LongTail
MultiSidedPlatforms
FREEasabusinessmodel
Openbusinessmodels

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59

Unbundlingbusinessmodels
Theconceptoftheunbundledcorporationholdsthattherearethree
fundamentallydifferenttypesofbusinesses:
CustomerRelationshipbusinesses,
Productinnovationbusinesses,
Infrastructurebusinesses.

Eachtypehasdifferenteconomic,competitiveandculturalimperatives.
Thethreetypesmaycoexistwithinasinglecorporation,butideallytheyare
unbundledintoseparateentitiesinordertoavoidconflictsorundesirable
tradeoffs.
Examples:Mobiletelecomindustry,privatebankingindustry,EnergyIndustry

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60

Example:Unbundlingbusinessmodel

KeyPartners
Product&service
innovation

KeyActivities
Infrastructure

ValuePropositions

CustomerRelationships

Infrastructure
services

Strong
relationships,
acquisition&
retention

ManageR&D
Infrastructure
management

Customer
acquisition
KeyResources

Product& service
innovation
Highlyservice
oriented

CustomerSegments
B2B
B2C/B2B
Customerfocused

Channels

Largevolume

Strongchannels

Talentpool
Customerbase

CostStructure
Highfixedcosts
Highemployee
costs
Dr.Ing.MichaelPrange

RevenueStreams
Highcostsof
customer
acquisition

Commodities
pricing

Largeshareof
wallet

Premiumpricing
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LongTail
Longtailbusinessmodelsareaboutsellinglessofmore:Theyfocuson
offeringalargenumberofnicheproducts,eachofwhichsellsrelatively
infrequently.
Aggregatesalesofnicheitemscanbeaslucrativeasthetraditionalmodel
wherebyasmallnumberofbestsellersaccountformostrevenues.
LongTailbusinessmodelsrequirelowinventorycostsandstrongplatformsto
makenichecontentreadilyavailabletointerestedbuyers.
Examples:Amazon,Ebay,YouTube,Facebook

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62

Example:LongTailbusinessmodel

KeyPartners

KeyActivities

ValuePropositions

CustomerRelationships

CustomerSegments

Nichecontent
providers

Platform
management

Largescopeof
nichecontent

Manyniche
segments

Usergenerated
content

Service
provisioning

Content
productiontools

Nichecontent
providers

KeyResources

Channels

Platform

CostStructure
Platform
management&
development

Dr.Ing.MichaelPrange

Internet

RevenueStreams
Sellinglessof
more

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MultiSidedPlatforms
Multisidedplatformsbringtogethertwoormoredistinctbutinterdependent
groupsofcustomers.
Suchplatformsareofvaluetoonegroupofcustomersonlyiftheother
groupsofcustomersarealsopresent.
Theplatformcreatesvaluebyfacilitatinginteractionsbetweenthedifferent
groups.Amultisidedplatformgrowsinvaluetotheextentthatitattracts
moreusers,aphenomenonknownasthenetworkeffect.
Examples:Visa,Google,Ebay,MicrosoftWindows

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Example:MultiSidedPlatform

KeyPartners

KeyActivities

ValuePropositions

CustomerRelationships

CustomerSegments

Platform
management

Valueproposition
1

Customer
segment1

Service
provisioning

Valueproposition
2

Customer
segment2

Valueproposition
3

Customer
segment3

KeyResources

Channels

Platform

CostStructure
Platform
management&
development

Dr.Ing.MichaelPrange

RevenueStreams
Possiblerevenue
flowsubsidy

Revenueflow3

Revenueflow1
Revenueflow2

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FREEasabusinessmodel
InthefreebusinessmodelatleastonesubstantialCustomerSegmentisable
tocontinuouslybenefitfromafreeofchargeoffer.
Differentpatternsmakethefreeofferpossible.
Nonpayingcustomersarefinancedbyanotherpartofthebusinessmodelor
byanotherCustomerSegment.
Examples:Skype,Google,OpenSource,freemobilephones

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Example:FREEasabusinessmodel

KeyPartners

KeyActivities
Infrastructure
development&
maintenance

ValuePropositions

CustomerRelationships

Premiumservice

Automated&
masscustomized

CustomerSegments
Smallbaseof
payingusers

Freebasicservice
Largebaseoffree
users

KeyResources

Channels

Platform

CostStructure
Fixedcosts
Costofservicefor
premiumusers
Dr.Ing.MichaelPrange

RevenueStreams
Costofservicefor
freeusers

Paidpremium
services
Freebasicservices
67

Openbusinessmodels
Openbusinessmodelscanbeusedbycompaniestocreateandcapturevalue
bysystematicallycollaboratingwithoutsidepartners.
Thismayhappenfromtheoutsideinbyexploitingexternalideaswithinthe
firm,orfromtheinsideoutbyprovidingexternalpartieswithideasor
assetslyingidlewithinthefirm.
Examples:Procter&Gamble,GlaxoSmithKline,InnoCentive

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Example:Openbusinessmodel

KeyPartners
Innovation
partners
Research
community

KeyActivities

ValuePropositions

CustomerRelationships

CustomerSegments

Screening

Sellinnovation

Secondarymarket

Managing
networks

R&Dresults

Licensees

Unused
intellectual
property

Innovation
customers

Exploringmarket
KeyResources
Screening
capabilities

Channels
Buyinnovation

Internetplatforms

Accessto
innovation
network
CostStructure
Externalizing
development
costs

Dr.Ing.MichaelPrange

RevenueStreams
Spinoff

Salesdivestiture
Licensefees

69

Discussion
Whatsensedoesitmaketodealwithalreadyknownconceptsofbusiness
modelpatternswhendesigninganewbusinessmodelforaninnovative
businessidea?
Whichbusinessmodelpatternsarealsostillwidespread?
Whereindobusinessmodelsdifferthatarebuiltonthesamebusinessmodel
pattern?

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Groupwork2:BusinessModels
60MinutesWorkingTime
20MinutesPresentation
10MinutesDiscussion

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BusinessStrategy

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72

BusinessStrategy
1. Introduction
2. Designtechniques
3. Strategydevelopment
4. Valuepropositionarchitecture
5. Groupwork

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73

Introduction

Abusinessstrategy describesthemedium andlongtermplannedbehavior

ofacompanytoachieveitsbusinessobjectives.

Designtechniques aremethodstopromotecreativityandgeneratingnew
ideastargetedtodevelopvisionsorsolveproblems.

Thevaluepropositionarchitecture ofacompanydefineshowthedivisionof
laborlookslikeandhowtocoordinatethespecialized,butlogicallyrelated
valueaddedlaboractivities.

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Designtechniques
Designtechniquescanhelptodesignbetterandmoreinnovativebusiness
models.
Designtechniquesareprimarilyusedinworkshopswhereagroupofpeople
oftenexploresunfamiliarterrainwhiledesigningbusinessmodels.
Wellknownbusinessmodeldesigntechniquesare:

CustomerInsights
Ideation
VisualThinking
Prototyping
Storytelling
Scenarios

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CustomerInsights
Adoptingthecustomerperspectiveisaguidingprinciplefortheentire
businessmodeldesignprocess.Customerperspectivesshouldinformour
choicesregardingValuePropositions,DistributionChannels,Customer
Relationships,andRevenueStreams.
Customercentricbusinessmodeldesign:

Whatjobsdoourcustomersneedtogetdoneandhowcanwehelp?
Whatareourcustomersaspirationsandhowcanwehelphimliveuptothem?
Howdoourcustomersprefertobeaddressed?
Howdowe,asanenterprise,bestfitintotheirroutines?
Whatrelationshipdoourcustomersexpectustoestablishwiththem?
Forwhatvaluesarecustomerstrulywillingtopay?

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Ideation
Basicattitudeforideageneration:

Ignorethestatusquo
Forgetthepast
Stopfocusingoncompetitors
Challengeorthodoxies

Epicentersofbusinessmodelinnovation:

Resourcedriven
Offerdriven
Customerdriven
Financedriven
MultiEpicenterdriven

Challengeconventionalassumptionswithwhatifquestions

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VisualThinking
ArgumentsforVisualThinking:

Understandtheessence
Enhancedialogue
Exploreideas
Improvecommunication

ToolsforVisualizing:
PostitNotes
Drawings
Mindmaps

TellingaVisualStory:

Mapyourbusinessmodel
Draweachbusinessmodelelementonanote
Definethestoryline
Tellthestoryusingthenotesonthecanvas

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Prototyping
MindsetofPrototyping:

Multiplebusinessmodelsinandacrossindustries
Insideout:businessmodelstransformindustries
Opportunisticthinking
Exploratorysearchforbusinessmodel
Designfocused
Value andefficiencyfocused

Prototypesatdifferentscales:

Napkinsketch:outlineandpitcharoughidea
Elaboratedcanvas:explorewhatitwouldtaketomaketheideawork
Businesscase:examinetheviabilityoftheidea
Fieldtest:investigatecustomeracceptanceandfeasibility

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Storytelling
ReasonsforStorytelling:
IntroducetheNewandmakeittangible
Clarificationofcomplexrelationships
Engagingpeople(investors,employees,customers,)

PerspectivesforStorytelling:
Companyperspective
Customerperspective

TechniquesforStorytelling:

Talk&Image
VideoClip
RolePlay
Text&Image
ComicStrip

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Scenarios
Scenarioscanbeusefulinguidingthedesignofnewbusinessmodelsto
rendertheabstracttangible.
Useofdifferenttypesofscenarios:
Customerscenarios
Futurescenarios

Developmentofnewbusinessmodelswithfuturescenarios:
Developasetoffuturescenariosbasedontwoormoremaincriteria
Describeeachscenariowithastorythatoutlinesthemainelementsofthescenario
Developoneormoreappropriatebusinessmodelsforeachscenario

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Discussion
Whyisitusefultotakethecustomer'sperspective forthedevelopmentof
businessmodels?
Whyshouldaneutral,nonjudgmentalattitudebetakenforIdeation?
HowdoVisualThinkingandStorytellingsupportthedevelopmentand
presentationofbusinessmodels?
Whydoesitmakesensetocreateseveralprototypesofdifferentpossible
businessmodelsfirstinsteadofonedetailedbusinessplanning?
WhatroledoScenariosplayforbusinessmodelinnovation?

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82

Strategydevelopment
Thereisnotonlyasinglebusinessmodel,therearereallyalotof
opportunitiesandoptionsthatwillbediscovered.
Thebusinessmodelenvironmentmustbeconsideredforthestrategy
development:

Keytrends
Industryforces
Marketforces
Macroeconomicforces

Strengths,weaknesses,opportunitiesundthreatsofbusinessmodelscanbe
evaluatedwithaSWOTanalysis.Herebyallbuildingsblocksofabusiness
modelcanvaswillbeanalyzedindetail.

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83

Valuepropositionarchitecture
Thestrategydevelopmentprocessleadstothevaluepropositionarchitecture
ofthecompany.
Theorganizationalstructureandtheprocessorganizationofthecompanycan
bederivedfromthevaluepropositionarchitecture.
Establishedcompaniesmustoftenbeabletomanagemultiplebusiness
models.Thereforetheyhavedifferentoptions:
Integration
Autonomy
Separation

Theevaluationofthevaluepropositionarchitecturebycreatingnewand
innovativebusinessmodelsisapermanentprocess.

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84

Example:StrategiesofDaimlerandCAR2GO
Daimler(www.daimler.com)isaninternationalautomobilemanufacturer
withanannualrevenueexceeding136billionEurothroughsalesofmore
than2millionvehicles.
Car2go(www.car2go.com)isastartupbusinessofferingcitydwellersmobility
ondemandusingacitywidefleetofSmartcars.
Bothcompanieshavedifferentbusinessstrategiestooffertheircustomers
individualmobility.Thereforetheyusedifferentbusinessmodels.

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Example:DaimlerBusinessModel

KeyPartners
CarParts
Manufacturers

KeyActivities
Manufacturing

ValuePropositions

CustomerRelationships

Cars,Trucks,
Vans,Busses,
FinancialServices

MainlyHighEnd
Brands

CustomerSegments
Massmarket

Design

KeyResources

Channels

VehiclePlants

Dealers

Intellectual
Property

SalesForce

Brands
CostStructure
Marketing
+
Sales

RevenueStreams
R&D

VehicleSales

VehicleFinancing

Manufacturing

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86

Example:CAR2GOBusinessModel

KeyPartners
CityManagement

KeyActivities
Fleet
Management

ValuePropositions

CustomerRelationships

Individualurban
mobilitywithout
carownership

OneoffSignup

CustomerSegments
CityDwellers

Telematics
Cleaning
KeyResources

Channels

Serviceteam

CAR2GO.COM
Mobilephone

Telematics
Systems

CAR2GOshops
Parkinglots

Carfleet
CostStructure
Systems
Management

Dr.Ing.MichaelPrange

RevenueStreams
Fleet
Management

Payperminute

87

Discussion
WhereindothebusinessstrategiesofDaimlerandCar2godiffer?
Whatarethefundamentaldifferencesinthevaluepropositionofthetwo
businessmodels?
Whatbusinessstrategyismoreappropriatefortheglobalmegatrendsof
UrbanizationandMobility?

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88

Groupwork3:BusinessStrategy
60MinutesWorkingTime
20MinutesPresentation
10MinutesDiscussion

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BusinessPlanning

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90

BusinessPlanning
1. Introduction
2. Businessplan
3. Financing
4. Foundation
5. Groupwork

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Introduction

Abusinessplan isawrittendocumentwhichdescribesallnecessary
measuresfortheimplementationofabusinessideainastructuredform.

Financing includesalloperationalprocessesforprovidingandrepaymentof
funds.

Thefoundation includesallprocessestoimplementabusinessideauntilthe
startofthebusinessoperationinanewcompany.

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Businessplan
A businessplanisaninstructionaldescriptionfromtheideatothe
foundation.Itisthebasisforactionanddecisionmakingforinvestors.
Thebusinessplanconsistsof4parts,inwhichtheresultsanddecisionsofa
feasibilitystudyarecomposed:

Foundationplan
Marketingplan
Managementplan
Financialplan

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Foundationplan
Thefoundationplanshouldincludethefollowingpoints:
Formaldata
Nameofthefounder,companyname,legalform,businessactivity

Foundingidea
Whatistheproduct?Whatisit?Whatwedo?
Isitsomethingspecial?Whydowewanttodothat?

Market
Condition,size,revenues,prices,specialfeatures

Competition
Number,marketshares,changes
Insightsfromthesuccessesandmistakesofothermarketparticipants

Forecast
Assumptionsandexpectations,potentialofthecompany
Whyisthecompanyprofitable?

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Marketingplan
Themarketingplandescribeshowweenterthemarket,claimingitandwant
togrow:
Targetmarket
Whoandwhereareourcustomers?Istheresomethingspecialtothem?

Stateofthemarketandcompetitors
Resultsofthemarketandcompetitiveanalysis
Howisourproductdifferentfromthecompetition?
Whatcanwelearnfromthecompetition?

Marketexpansionandmarketdifferentiation
Dowecanandwanttoexpandourmarket?
Dowewanttograduallypenetratenewmarketsormarketsegments?

Customerapproach
Howdowewanttoattractcustomers,keepthemandincreasetheirnumber?
Whichmarketingtoolsdowewanttouse?

Price
Howdowewanttomakethepricesofourproducts?
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Managementplan
Themanagementplanmakesclearknowledge,skillsandtheorganization:
People
Whorunsthecompany?
Whatobligationsandwhatpersonalandprofessionalbackgrounddotheyhave?

Tasks
Whoisresponsibleforwhichtask?
Whatarethestrengthsandweaknessesofthepeopleandhowcanwesolvedeficits?

Employees
Areemployeestobetaken?Whenandforwhatpurposes?
Howmanyemployeeswithwhatskillsareneeded?

Salaries
Whatarethesalariesofthefoundersanditsemployeesandhowshouldsalariesdevelop?

AccountingandControlling
Howisaccountingorganized?Whatprocessesarecoveredandhow?
Howoftenarethecontrollingresultsevaluated?

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Financialplan
Thebudgetforcapital,costsandrevenuesmustmatchbytime.
Thefinancialplanconsistsofthefoundationbudgetandtheoperatingbudget
andisthesetoffiguresofthebusinessplan.Bothbudgetsoverlap,because
thetransitionissmooth.
Liquidityisthe"Achillesheel"ofthecompany.
Thefoundationbudgetisamonthlystatementwhenwhichfundsmustbe
availableforthestartupprocess.
Theoperatingbudgetrelatestotheongoingoperationandincludesthefixed
andvariablecostsasforecastedfiguresforthefirst3to5yearsofdoing
business.Forthefirstfiscalyearamonthlylistiscommon.

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97

Discussion
Whatisthepurposeofthebusinessplan?
Whatwouldyousuggestafoundertocheckitscompanyspecificskillsand
knowledge?
Whateffectdotheexpectationsofthefoundershaveonthebusinessplan
andhowcanthedangerofoverestimatingbereduced?

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98

Financing
Thefinancialviabilityoftheprojectisdeterminedbytheformationoftrust
andperspectives.
Thefundscanbedividedinto:

Equity
Venturecapital
Borrowing
Publicfunding

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99

Equity
Themainfeatureofequityisthatitisliable,andthereforeitissubjecttothe
riskofloss.
Thedecisiontoallocatecapitalistheresultofthefollowingrational
consideration:
Howbigistheriskoflosingmymoney?
Whatismypotentialprofit?

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100

Venturecapital
Venturecapitalisaspecialformofequity,whichismadeavailablebythird
parties.
Venturecapitalcanbedistinguishedasfollows:
Informalriskcapital
Formalriskcapital

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Informalriskcapital
Informalriskcapitalisprovidedbyfamilyandfriends.
Relationship,trustandgoodwillarecrucialforinformalriskcapital.
Thepotentialprofitisnotalwaysthefocus.
Informalriskcapitalplaysamajorroleespeciallyintheearlystagesofastart
upproject.

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102

Formalriskcapital
Formalriskcapitalisprovidedbyventurecapitalcompanies.Thefundscome
fromwealthyindividuals,businessesandthecompaniesthemselves.
Sincetheyareoftenworkingwithforeignmoneyforalimitedtime(usually
upto10years),theprofitisthefocusandmustbeaboveaverage.
Theallocationofformalriskcapitalisprecededby:

Selectionofpossibleprojects
Assessmentoftheprojects
Examinationofthebusinessplan
Assessmentofthefoundersandtheprojectteam
Decisiononthestart(when,byhowmuch,forhowlong)
Controllingandoptionallyadviceofthecurrentbusinessoperation
Exit(disinvestmentorsaleofequityshares)

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Borrowing
Borrowingsaremostlyloansthatcanbeverydifferent.
Basisforthedecisionisthefounderandhisbusinessplanandawillingnessto
acceptaletterofguarantee.
Loantype

Loaner

Loanperiod

Securities

Payingout

Costs

Repayment

Bankloans

Bank

negotiable

banking
practice

negotiable

interest

monthly,
negotiable

Personalloans Friends&
family

negotiable

negotiable

negotiable

negotiable

negotiable

Shareholder
loans

Shareholder

negotiable

usuallynone

negotiable

negotiable

negotiable

Overdraft
credit

Bank

until60days

none

100%until
limit

highinterest

openuntil
limit

until90days

purchased
goods

informof
purchased
goods

higherprice or within90days
highinterest

Suppliercredit Supplier

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Publicfunding
Publicfundingcanbedividedintothefollowingcategories:
1. Transfersinkind
2. Transfersincash
3. Combinationsof1and2

Transfersinkindarehelpandadvice(e.g.counselingcenters,hotlines,
training),whichareworthmoney,butarenotgivenintheformofadirect
payment.
Transfersincasharefinancialbenefits.Thistakesplaceintheformofsavings
forthefounders.Theseprimarilyincludeinterestratesubsidies,taxbreaks
andloanguarantees.

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105

Discussion
Istheterm"informalriskcapital"forequitycontributionsfromfamilyand
friendsreallytrue?
Whyisinformalriskcapitalespeciallyintheearlystageofformationof
particularimportance?
Isformalriskcapitalanoptiononlyforinnovativeandfastgrowing
companiesoralsoforonlyfastgrowingcompanies?
Canfounderslimittheirliabilitytotheirinvestmentthroughthechoiceofthe
legalform"GmbH"?
Whywoulditbeinterestingforabanktoincludepublicfunding
inthestartupfinancing andwhynot?

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106

Foundation
Ifthefinancingofthebusinessplanissecured,thefinaldecisiononsettingup
abusinessispending.
Incaseofapositivedecision,thefoundingprocesscanbegin.Therethe
requirementsdefinedinthebusinessplanaretranslatedintoaction.
Duringthestartupphaseandthesubsequentoperationalactivities,a
continuousadjustmentofthecurrentbusinessdatawiththedatafromthe
businessplanhastobedone.

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107

Foundingprocess
Theclassicfoundingprocessbeginswithafeasibilitystudy,abusinessplan
andsecuringfinancing.
Theimplementationofthestartupprocessforacorporationisdonein
severalsteps:
1.
2.
3.
4.
5.
6.
7.

Openingacompanybankaccountandpaymentoftheequitysharecapital
Notarialcertificateoftheincorporation
EntryinthecommercialregisterattheRegistrationCourt
Registrationofthetrade
Registrationatthetaxoffice
RegistrationwiththeSocialSecurity
RegistrationwiththeProfessionalAssociation

Aftercompletingtheformalities:thenewcompanyisauthorizedtooperate
andcanputthebusinessplanintoaction.
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Groupwork4:BusinessPlanning
60MinutesWorkingTime
20MinutesPresentation
10MinutesDiscussion

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GreenBusiness

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110

GreenBusiness
1. Introduction
2. Renewableenergysystems
3. Energyefficientbuildings
4. Integratedmobilitysolutions
5. Groupwork

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111

Introduction

GreenBusiness definesenterpriseswhichofferproductsandservicesinthe
fieldofGreenTechnologies.
EconomicsectorsofGreenBusinessare,interalia,AutomobileandTransport,
BioFuelsandAgriculture,EnergyManagementandEfficiency,Renewable
EnergyTechnologies,EnergyStorage,NanotechnologyandNanomaterials,
WasteManagementandWater.
GreenInvestments areinvestmentactivitiesthatfocusoncompaniesor
projectsthatarecommittedtotheconservationofnaturalresources,the
productionanddiscoveryofalternativeenergysources,theimplementation
ofcleanairandwaterprojects,and/orotherenvironmentallyconscious
businesspractices.

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112

Renewableenergy
Renewableenergyareenergysourceswhicharevirtuallyinexhaustible
availableinthecontextofhumantimehorizonorrenewitselfrelatively
quickly.Thus,theydifferfromfossilenergysourcesthatregenerateonlyover
aperiodofmillionsofyears.
Renewableenergysourcesare,inadditiontohigherenergyefficiency,the
mostimportantbuildingblockofasustainableenergypolicyandenergy
transition.
Renewableenergyincludeshydropower,windenergy,solarradiation,
geothermalandrenewablerawmaterials.

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113

Decentralizedenergysystems
Indecentralizedenergysystems,electricpowerisgeneratedclosetothe
consumer,e.g.withinornearresidentialareasandindustrialplantsusing
smallpowerplants.
Thecapacityoftheelectricitygenerationplantsisusuallydesignedonlyto
meettheenergyneedsoftheimmediatelyorinthenearbyareaconnected
electricityconsumers.
Alsoisolatednetworks,i.e.theinterconnectionofafewsmallpower
producersandconsumersinremotelocationsthatarenotconnectedtothe
publicpowergrid,areseenasdecentralizedenergysystems.Likewise,wind
farmsandsolarparksarecommonlycountedtodecentralizedenergy
systems,buttheshifttocentralizedpowergeneration,especiallyforlarger
systems,isflowing.
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114

Example:SmartHydroPowerGmbH
Germancompanylocatedin
Feldafing (neartoMunich)
Minihydroelectricpowerplant
with5kWturbine
Energymanagementsystemwith
batterystorage
Microgridwithauxiliarydevices,
e.g.pumps,waterpurificationor
cooling
Connectorforthenationalgrid

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115

Energyefficientbuildings
InprivatehouseholdsinGermanyabout85percentoftotalenergydemandis
usedforspaceheatingandhotwater.
Thegreatestenergysavingspotentialliesinexistingbuildings.Hereabout
threetimesasmuchenergyisrequiredforheatingasinnewbuildings.
Theenergydemandcanbereducedupto20percentbyprofessionally
modernizationanduseofadvancedbuildingtechnologies.Fromtheenergy
savingpotential,however,onaverage,onlyaboutonethirdisexhausted
duringrenovationsinpractice.
Allpartieswouldbenefitfromenergyefficientconstructionandrenovation:
thetenantandlandlord,craftsandindustry,environmentandeconomy.

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116

Example:NestLabs,Inc.
AmericancompanylocatedinPalo
Alto(California)since2010
Buildingautomationsystemfor
energyefficiencyandsecurity
Thermostats,smokedetectorsand
webcams
DevicecontroloverInternetand
smartphones
Usabilityanddesignuniqueselling
proposition
AcquisitionbyGooglein2014
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117

Integratedmobilitysolutions
Integratedmobilitysolutionsarethefoundationforamodern,regionaland
municipalmobilitysystem:
Wellcoordinatedmobilityservices,
atransportofferingtailoredtothemobilityneedsofthecitizensand
acustomerfriendlyaccesstothedifferentmobilityservicesintheregion.

Itcreatestheprerequisitesforasustainablemobilitybehaviorofcitizens,
commutersandcompaniesintheregion.
Examplesarecarsharingsystems,bikerentalsystems,combinedbusandrail
services,liftarrangingagenciesandcrossmodalInternetplatforms.

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Example:ubitricity GmbH
GermancompanylocatedinBerlin
Costefficientcharging
infrastructureforelectriccars
Mobileelectricmeterswith
chargingcable
Communicationsplatformfor
transactionbasedbilling

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119

Discussion
Howcouldanenergysystemofthefuturelooklike?Whatchangeswillthe
energyindustrybefacedthen?
Whyareenergyefficientbuildingsanimportanttopicforthefuture?
Whereisagreatneedforintegratedmobilitysolutions?

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Groupwork5:GreenBusiness
60MinutesWorkingTime
20MinutesPresentation
10MinutesDiscussion

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121

CurrentTopics

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122

CurrentTopics
1. Componentbasedfoundations
2. ConceptdrivenStartups
3. LeanStartupmethod

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123

Componentbasedfoundations
Thetermcomponentbasedfoundations"meansthatevenacomplexentity
maybecreatedbyusingavailablecomponentsinthemarket:

Accounting
Officeservices
OnlineShop
Webdesignandprogramming
Logisticsservices

Byasuitablecompositionofcomponentsavailableonthemarket,the
investmentandriskofabusinessstartupcanbereducedsignificantly.

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ConceptdrivenStartups
ThetermconceptdrivenStartupsdescribesaprocedureforfindingan
innovativebusinessmodelbyfocusingonthefollowingproperties:

FunctionversusConvention
Scalability
Simplicity
Minimizingrisks

Examples:Teekampagne,Migros,Aldi,IKEA,Skype

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LeanStartupmethod
TheLeanStartupmethodisamethodfortheiterativesearchforaviable
businessmodelinseveralsteps:
1. Founderstranslateideasintobusinessmodelhypotheses,testassumptionsabout
theneedsofthecustomersandcreateaminimalfunctionalproducttotryoutthe
solutiontocustomers.
2. Thecompanycontinuestotestallotherhypothesesandattemptstovalidatethe
interestofthecustomerthroughearlyordersortheuseoftheproduct.Ifthereis
nointerest,thecompanycanrealignbychangingoneormorehypotheses.
3. Theproductwillberevisedtotheextentthatitcanbesold.Basedonitsproven
hypotheses,thecompanygeneratesdemandbyboostingupmarketingandsales
quicklyandexpandingthecompany.
4. Thecompanyslowlyleavesthestartupmode,inwhichateamforcustomer
developmentseeksanswers,andformsfunctionaldepartmentsforthe
implementationofthebusinessmodel.

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Discussion
Whyarecomponentbasedfoundationslessriskyandmorescalable?What
arethedisadvantages?
WhycanconceptcreativeStartupspossiblychangeentireindustries?
WhichindustriesistheLeanStartupmethodusefulfor?Whatarethe
advantages?

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127

Exam

Dr.Ing.MichaelPrange

128

Pleasenotethefollowinghints:
Onlystudentswithpriorregistrationareallowedtoparticipate!
Youhave90minutesforansweringthequestions.
Youcanachievemaximum60pointsintotal.Topasstheexam,youneed30
pointsormore.
YoucananswerthequestionseitherinEnglishorinGerman.
Pleasewriteclearlyandinapreciseandbriefmanner.
Noadditionaltools(calculator,books,etc.)andnoadditionalpaperare
allowed.
Pleaseturnyourmobilephonecompletelyoff.

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129

Exam

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130