Building Business Model With Design Thinking

Innovation Journey
Building Business Models with

Design Thinking
Sunil Sangra Design Thinking | Creativity | Innovation | Strategy Consulting | Training | Coaching
Innovation Journey
Business Model Innovation
Innovation Journey
Innovation Journey
What is a Business Model?
Discuss with your seat neighbour and

write down your answer.
Innovation Journey
Business Model Vs. Business Plan
“Everybody has a
plan until they get
punched in the
mouth”
Mike Tyson
Innovation Journey
Innovation Journey
Innovation Journey
Traditional Lean
Business Plan. Business Model.

Strategy
Implementation driven. Hypothesis driven.
Product Management. Customer development.
New Product Process
Linear, step by step. Get out and test hypotheses.
Waterfall development. Fully Agile development. Build product
Engineering
specify the product before build. iteratively & incrementally.
Departments by function. Hire for Customer and Agile development
Organization
experience and execution. teams. Hire for Learning & Speed.
Accounting. Income statement, Metrics that matter. Customer
Financial Reporting
Balance Sheet, cash flow stat. acquisition cost, lifetime value…
Exception. Expected.
Failure
Fix by firing executives. Fix by iterating and pivoting.
Measured. Rapid.
Speed
Operates on complete data. Operates on good enough data.
Why the Lean Start-up Changes Everything; Steve Blank; Harvard Business Review, May 2013
Innovation Journey
Innovation Journey
Lean
Start-up
Traditional Lean
Business Plan. Business Model.

Strategy
Implementation driven. Hypothesis driven.
Product Management. Customer development.
New Product Process
Linear, step by step. Get out and test hypotheses.
Waterfall development. Fully Agile development. Build product
Engineering
specify the product before build. iteratively & incrementally.
Departments by function. Hire for Customer and Agile development
Organization
experience and execution. teams. Hire for Learning & Speed.
Accounting. Income statement, Metrics that matter. Customer
Financial Reporting
Balance Sheet, cash flow stat. acquisition cost, lifetime value…
Exception. Expected.
Failure
Fix by firing executives. Fix by iterating and pivoting.
Measured. Rapid.
Speed
Operates on complete data. Operates on good enough data.
Innovation Journey
Business Model Canvas
Innovation Journey
Innovation Journey
Design Thinking and BMC
Innovation Journey
Innovation Journey
Adoption of the Business Model Canvas
Across
Adoption of sectors,
the Business regions and
Model Canvas company
types
Innovation Journey
Innovation Journey
Innovation Journey
Jeff Immelt
“Nobody wants to work at an old-fashioned company. Nobody

wants to buy products from an old-fashioned company. And
nobody wants to invest in an old-fashioned company.”
Innovation Journey
GE’s Ambidextrous Growth Strategy

Stable Environment Changing Environment
Lean Six Sigma FastWorks

Improvement Program Innovation Program
Exploitation Exploration
Innovation Journey
FastWorks
Fast speed
launch
of
successful
products
Innovation Journey
Innovation Journey
How much did the cost of home coffee

consumption change for Swiss
households over the last couple of years?
Innovation Journey
Innovation Journey
Nespresso changed the

business model for
espresso
Innovation Journey
Average growth of 30% p.a. from 2000 to 2014
Innovation Journey
estimated US$ 5 billion annual sales from one product line
Innovation Journey
How did they do it?
Innovation Journey
Innovation Journey
Innovation Journey
Nespresso
Key Partners Key Activities Value Proposition Customer Relationships Customer Segments
ine g Nesp
M ach
ture Marketin re
Mach sso Acquire &
fa c B2C
manu ines lock-in
r distribution
Households
ction Nespresso
odu
Coffee Pr Club
growers
Key Resources Channels
Brand Retail
nts
Pate
Nespresso nespresso.
u t ion r& com
strib nels pods o r d e
i
D an Mail centre
ch Coffee call Nespr
esso
d uc tion stores
Pro ties
facili
Cost Structure Revenue Streams
B2C
Marketing & distribution 1X Mac p et i tive
Marketing & hine Re les
branding sales d s a
branding po
Production
Innovation Journey
Nespresso changed the

business model for
espresso
Innovation Journey
However, it was not

Nespresso’s first
business model
Innovation Journey
Nespresso
Mach Offices
manu ine Nespresso
factur
er Key Resources system Channels
s
th
JV wi rer
anu factu
m
Innovation Journey
Nespresso
ine g Nesp Acquire &

M ach
ture Marketin re
Mach sso lock-in
fa c B2C
manu Efficient ines
r distribution
logistics Lock-in Households
duction Nespresso
Pro
Coffee Club
growers High-end
Key Resources Channels households
Brand Retail
nts
Pate
Nespresso nespresso.
u t ion r& Direct access
com
strib nels pods
l o r d e
i
D an Mai centre multi-channels
ch Coffee call Nespr
c tion Focus on the esso
d u stores
Pro ties pods
facili
B2C
p et i tive
distribution Re les
Marketing & 1X Mac s a
Marketing & hine po d
branding branding sales Recurrent
Production revenues
Innovation Journey
the right business

model can be the
difference between
success and
failure for the
same product
Innovation Journey
the story is not

finished yet
Innovation Journey
Innovation Journey
Innovation Journey
they built a
business model
portfolio that aims
to sustain growth
and diversify risk
Innovation Journey
Innovation Journey
Innovation Journey
Innovation Journey
Innovation Journey
Innovation Journey
What’s Tesla Motors

Business Model?
Innovation Journey
Innovation Journey
Innovation Journey
Innovation Journey
Innovation Journey
Innovation Journey
Innovation Journey
Innovation Journey
Innovation Journey
Innovation Journey
Innovation Journey
Innovation Journey
What’s Tesla Motors

Business Model and it’s
mechanics?
Innovation Journey
Tesla Motors
Key Resources Channels
Innovation Journey
Sunil Sangra
Creativity | Innovation | Design Thinking | Strategy
Consulting | Training | Coaching
Mob: +91-9650866566
sunil.sangra@gmail.com
New Delhi, India

Building Business Model With Design Thinking

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Building Business Model With Design Thinking

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Innovation Journey

Building Business Models with

Business Model Innovation

What is a Business Model?

Discuss with your seat neighbour and

Business Model Vs. Business Plan

Business Plan. Business Model.

Business Plan. Business Model.

Business Model Canvas

Design Thinking and BMC

Adoption of the Business Model Canvas

Business Model Canvas

“Nobody wants to work at an old-fashioned company. Nobody

GE’s Ambidextrous Growth Strategy

Lean Six Sigma FastWorks

How much did the cost of home coffee

Nespresso changed the

Average growth of 30% p.a. from 2000 to 2014

estimated US$ 5 billion annual sales from one product line

How did they do it?

Nespresso changed the

However, it was not

Cost Structure Revenue Streams

ine g Nesp Acquire &

the right business

the story is not

What’s Tesla Motors

What’s Tesla Motors

Key Resources Channels

Cost Structure Revenue Streams

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