Alex Osterwalder: Business Models Reloaded (SKOLKOVO open lecture)
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The document discusses the importance of innovative business models in driving product success, highlighting how companies like Nespresso transformed their industries by changing their business strategies rather than just focusing on product innovation. It introduces the Business Model Canvas as a tool for systematically describing, designing, and challenging business models. Additionally, the document emphasizes the necessity of testing hypotheses related to business models in order to ensure their effectiveness.
![[sources: Henry Chesbrough, photo: life.com]](https://image.slidesharecdn.com/skolkovoopenlecturealexanderosterwalder-110701054246-phpapp02/85/Alex-Osterwalder-Business-Models-Reloaded-SKOLKOVO-open-lecture-40-320.jpg)
![revenue growth of 41%
compounded for the next 20 years
[sources: Henry Chesbrough, photo: xerox.com]](https://image.slidesharecdn.com/skolkovoopenlecturealexanderosterwalder-110701054246-phpapp02/85/Alex-Osterwalder-Business-Models-Reloaded-SKOLKOVO-open-lecture-41-320.jpg)
![F rank
G ehry
[source: Sony Pictures]](https://image.slidesharecdn.com/skolkovoopenlecturealexanderosterwalder-110701054246-phpapp02/85/Alex-Osterwalder-Business-Models-Reloaded-SKOLKOVO-open-lecture-116-320.jpg)
![[source: Sony Pictures]](https://image.slidesharecdn.com/skolkovoopenlecturealexanderosterwalder-110701054246-phpapp02/85/Alex-Osterwalder-Business-Models-Reloaded-SKOLKOVO-open-lecture-119-320.jpg)
![[source: Sony Pictures]](https://image.slidesharecdn.com/skolkovoopenlecturealexanderosterwalder-110701054246-phpapp02/85/Alex-Osterwalder-Business-Models-Reloaded-SKOLKOVO-open-lecture-120-320.jpg)
![[source: Wikimedia Commons]](https://image.slidesharecdn.com/skolkovoopenlecturealexanderosterwalder-110701054246-phpapp02/85/Alex-Osterwalder-Business-Models-Reloaded-SKOLKOVO-open-lecture-121-320.jpg)
Alex Osterwalder: Business Models Reloaded (SKOLKOVO open lecture)
- 1. Business Models Reloaded designing tomorrowʼs enterprise BusinessModelGeneration.com @business_design
- 3. letʼs start with a story...
- 5. 1,000,000 new book titles were published in the U.S. in ʼ10
- 6. 11,000 new business books appear every year
- 7. 12% decline of sales in major bookstore chains (ʻ07-ʼ09)
- 9. ? so what did we do?
- 10. we changed the product...
- 18. ? would a big publishing house have taken us on with this book?
- 19. No!
- 20. we changed the business model...
- 21. “ you canʼt write about business model innovation without an innovative business model ”
- 24. $24.-
- 25. $36.-
- 26. $54.-
- 27. $81.-
- 28. $250.-
- 29. Results
- 31. # in the top 10 of softcover business books in the US
- 32. # 150ʼ000+ #bmgen copies in print (May 2011)
- 33. # 18 #bmgen translations upcoming in 2011
- 37. letʼs go back in time to understand business models...
- 38. Time Machine
- 39. 1958
- 40. [sources: Henry Chesbrough, photo: life.com]
- 41. revenue growth of 41% compounded for the next 20 years [sources: Henry Chesbrough, photo: xerox.com]
- 42. Time Machine
- 43. 1997
- 45. ʼ10 revenue of $29.32 billion ($8.5 billion net income)
- 46. ? what do both examples have in common?
- 47. 1 Product innovation alone was not sufficient They enabled the new product through the business model
- 48. 2 They didnʼt nor could they copy from competitors They invented new business models
- 49. 3 They couldnʼt prove in advance that the models would work They had to take some risk and experiment
- 50. 123 business beyond beyond design beyond testing product model thinking copying asking before innovation language competitors attitude for proof building
- 51. business model language 1
- 52. buzz group
- 54. how much did the cost of home coffee consumption change for Swiss households over the last couple of years?
- 55. 6-8 x more
- 57. Nespresso changed the business model for espresso
- 58. RESULTS
- 60. one of the fastest- growing businesses in the Nestlé group
- 61. average growth of 30% p.a. since 2000
- 62. over 3 billion CHF annual revenue with 1 product line (2.4 bio EUR)
- 63. buzz group
- 64. ? Discuss and describe what you think Nespressoʼs business model is
- 65. buzz group
- 67. ? discuss with your seat neighbor what a business model is and write down your definition
- 68. ? what elements did you mention in your definition?
- 70. ? ?
- 74. to describe, challenge, design, and invent business models more systematically
- 75. 9 building blocks
- 76. CUSTOMER SEGMENTS images by JAM
- 77. VALUE PROPOSITIONS images by JAM
- 78. CHANNELS images by JAM
- 79. CUSTOMER RELATIONSHIPS images by JAM
- 80. REVENUE STREAMS images by JAM
- 81. KEY RESOURCES images by JAM
- 82. KEY ACTIVITIES images by JAM
- 83. KEY PARTNERS images by JAM
- 84. COST STRUCTURE images by JAM
- 85. key value customer activities proposition relationships key customer partners segments cost revenue structure key streams resources channels images by JAM
- 86. key value customer activities proposition relationships key customer partners segments cost revenue structure key streams resources channels images by JAM
- 87. images by JAM
- 88. CANVAS OVERLAY KEY KEY OFFER CUSTOMER CUSTOMER PARTNERS ACTIVITIES RELATIONSHIPS SEGMENTS KEY CHANNELS RESOURCES COST STRUCTURE REVENUE STREAMS images by JAM
- 89. CANVAS OVERLAY KEY KEY OFFER CUSTOMER CUSTOMER PARTNERS ACTIVITIES RELATIONSHIPS SEGMENTS KEY CHANNELS RESOURCES COST STRUCTURE REVENUE STREAMS images by JAM
- 90. The Business Model Canvas KEY KEY OFFER CUSTOMER CUSTOMER PARTNERS ACTIVITIES RELATIONSHIPS SEGMENTS building building block block building building building block building block block block KEY CHANNELS RESOURCES building block building block building block COST STRUCTURE REVENUE STREAMS buildi g ng building buildin block block block
- 91. illustra-on
- 92. Nespresso changed the business model for espresso
- 93. Nespresso’s business Model KEY KEY Value CUSTOMER CUSTOMER PARTNERS ACTIVITIES Proposition RELATIONSHIPS SEGMENTS B2C marketing tion Nespre distribu sso households Club (espresso fans) *** Nespresso ne coffee machi production machines rs manufacture businesses etail KEY **** r CHANNELS Nespresso ts RESOURCES outle mail coffee pods distribu order growers tion c offee channels Nespresso.com productio call t s n Nespresso stores paten facilities center COST STRUCTURE REVENUE STREAMS B2C sales of distrib Nespresso ution sales of production machines marketing Nespresso po ds
- 94. but Nespresso almost failed in 1987 due to a nonperforming business model
- 95. Nespresso’s 1987 Model KEY KEY Value CUSTOMER CUSTOMER PARTNERS ACTIVITIES Proposition RELATIONSHIPS SEGMENTS machine offices Nespresso manufacturer KEY system CHANNELS RESOURCES joint venture with machine manufacturer COST STRUCTURE REVENUE STREAMS
- 97. buzz group
- 99. 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
- 103. the business model generation is changing the way we are creating value
- 106. value proposition/tech driven innovation
- 112. multiple-epicenter driven
- 114. design thinking attitude 2
- 115. design ≠ only form
- 116. F rank G ehry [source: Sony Pictures]
- 123. ? what does that have to do with business models and my organization?
- 125. ? what does that mean for us?
- 129. business model prototyping napkin sketch Canvas business case field test
- 130. case study
- 131. 3 years ago in Mexico
- 133. Pomarfin - a Finnish shoe manufacturer
- 134. PARTNER KEY OFFER CUSTOMER CUSTOMER NETWORK ACTIVITIES RELATIONSHIPS SEGMENTS shoe manufacturing B2B mass sho e logistics market KEY DISTRIBUTION RESOURCES CHANNELS retail partners retail partners sales force COST STRUCTURE REVENUE STREAMS sales to uring manufact logistics retailers costs cost
- 135. ? Whatʼs the big challenge for Pomarfin and its shoe manufacturing model?
- 137. so Pomarfin invented the “perfect fit” shoe, based on a technology innovation
- 139. PARTNER KEY OFFER CUSTOMER CUSTOMER NETWORK ACTIVITIES RELATIONSHIPS SEGMENTS shoe manufacturing B2B mass sho e logistics market KEY DISTRIBUTION RESOURCES CHANNELS retail partners retail partners ning foot scan sales y technolog force COST STRUCTURE REVENUE STREAMS sales to uring manufact logistics retailers costs cost
- 140. buzz group
- 141. ? How could Pomarfin use foot- scanner technology to become competitive again?
- 142. PARTNER KEY OFFER CUSTOMER CUSTOMER NETWORK ACTIVITIES RELATIONSHIPS SEGMENTS shoe manufacturing B2B mass sho e logistics market KEY DISTRIBUTION RESOURCES CHANNELS retail partners retail partners ning foot scan sales y technolog force COST STRUCTURE REVENUE STREAMS sales to uring manufact logistics retailers costs cost
- 146. PARTNER KEY OFFER CUSTOMER CUSTOMER NETWORK ACTIVITIES RELATIONSHIPS SEGMENTS shoe manufacturing personal online footprint B2C B2Bcs ti high-end men’s logis IT mass sho e logistics manageme market nt market KEY DISTRIBUTION ss own s ma RESOURCESn tores CHANNELSn atio a d to miz retailretai partnl cus tory ers fac partners retail online partners ning store foot scan sales y technolog force COST STRUCTURE REVENUE STREAMS royalty sales to uring manufact payments logistics retailers direct web to costs retailers cost sales
- 147. testing before building 3
- 149. -‐$800m
- 150. a business model might look great on paper... building block building buildin block g building block block building block build ing block building building block block build block ing .. but after all it is only a... building buil ding block blo ck buildin g block
- 151. ... a set of hypotheses guess guess guess guess guess guess guess guess guess guess guess guess
- 153. you need to get out of the building and ...
- 154. test each hypothesis (e.g. with customers)
- 155. business model layer t t sho r bes s you s ines th is is ou r bu k h o w y wor ld at l cou m ode building building block block building block building building building block block block building block building building block block buildin g g building buildin block block block
- 156. exp hypothesis layer imp licit ly o ort utli ant ne whi the ch hyp mo you oth st r bu ese sine s o ss n is b mo uilt del hypothesis hypothesis hypothesis s hypothesi hypothesi s hypothesis building s building hypothesi block block building hypothesis hypothesi s block building building building block block block hypo building is thesis ock othes bl hypothesis hyp building building block block buildin g g building buildin block block block
- 157. test layer test test test test test test building building test block block building test test block building building building block block block building building ilding block test bu block block test test building building building block block g building k buildin bloc building block block block ilding buildin bu g g block building buildin block block block building building block block sts buildin g buildin block g building come up with te block block ach to verify e hypothesis
- 158. iPad app
- 159. BusinessModelGeneration.com/toolbox iPad stencil, actual scale, template by hortis, le studio. Feb. 2010. http://hortis.lestudio.ch date: project: screen: author:
- 160. BusinessModelGeneration.com/toolbox iPad stencil, actual scale, template by hortis, le studio. Feb. 2010. http://hortis.lestudio.ch date: project: screen: author:
- 161. FAQ
- 162. ? so whereʼs the competition in this model? FAQ
- 163. ? is business model innovation only about disruptive new models? FAQ
- 164. ? isnʼt execution the most important thing? FAQ
- 165. THANK YOU! BusinessModelGeneration.com AlexOsterwalder.com BusinessModelAlchemist.com Twitter: business_design