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1 warm-up: business model innovation

2 concept: the business model canvas

3 intro: business incubation

Jan 21-25, 2012, H‘rath/Aachen, Germany

Business Model Innovation & IncubationBusiness Model Innovation & IncubationBusiness Model Innovation & IncubationBusiness Model Innovation & Incubation

Workshop @

1 warm -up1 warm -up

CRAFTINGBUSINESS MODELS

Creators: Alex Osterwalder, PhD, and Yves Pigneur Drawings by JAM

Facilitator: Axel Friese

Creators: Alex Osterwalder, PhD, and Yves Pigneur Drawings by JAM

Facilitator: Axel Friese

innovative

do you know the business model canvas approach?

novice advanced

let’s kick off with a

QUESTION

what is the most popular business

management concept ever to describe

(value creation in) companies

1980s

firm infrastructure

human resource management

technology development

procurement

inbound logistics

operationsoutbound logistics

marketing & sales

service

THE VALUE CHAIN (PORTER 1985)

miniexercise

describe

with…

firm infrastructure

human resource management

technology development

procurement

inbound logistics

operationsoutbound logistics

marketing & sales

service

THE VALUE CHAIN

difficult isn’t it

THE CONTEXT HAS CHANGED!

we need new methods to

understand & craft business

models

VALUECREATION

what types of innovation do we find in companies…

business model innovation

product & service innovation

process innovation

technology innovation

*layers of innovation*

warm -upquiz

so we are focusing …

BUSINESS

MODEL

INNOVATION

now consider…

they offer a really neat service…

imagine you’re shopping…

and you hear a tune you like…

…but don’t know the title or artist

with Shazam you can…

dial a number…

hold your phone to the speakers…

…and get the title and artist by SMS

you know how they make money?

communication and SMS charges…

…and sales commissions

…and in the futureTV/video content

BUSINESS

MODEL

INNOVATION

that’s

quickquiz

who would have thought that we could rent and drop-off a car anywhere we want in a city

and pay per minute?

and then of course there is…

2 concept2 concept

buzzgroup

define what a business model is together with your seat neighbor and write your

definition down

2 minutes

what elements did you mention when you defined a business model?

there is a lack of definition“

”

few companies understand their existing business model well enough

“

”

so Alex Osterwalder and a crowd of 470 practitioners came up with a way to master business models through…

BUSINESS MODEL

CANVAS

the

they merged all existing concepts, designed & tested the synthesis…

BUILDING BLOCKS

the 9 building blocks of a business model

www.businessmodelalchemist.com all drawings by JAM

CUSTOMER SEGMENTS

mass market

niche market

segmented

diversified

multi-sided platformFor whom are we

creating value?

Who are our most

important customers?

VALUE PROPOSITION

What value do we deliver to the customer?

Which one of our customer’s problems are we helping to solve?

Which customer needs are we satisfying?

What bundles of products and services are we offering to each customer segment?

Newness

Performance

Customization

„Getting the job done“

Design

Brand / status

Price

Cost reduction

Accessibilty

Convenience /

Usability

KEY CHANNELS

Through which channels do our customer segments want to be reached?

How are our channels integrated?

How are we integrating them with customer routines?

Channels serve for

communication, sales, distribution

Own sales force

Web sales

Own stores

Partner stores

Retail & wholesale

CUSTOMER RELATIONSHIPS

Personal assistance

Self-service

Automatisierter Service

Co-creation

What type of relationships does each of our customer

segments expect us to establish and maintain with them?

How costly are they?

How are they integrated with the rest of our business model?

REVENUE STREAMS

For what value are our customers really willing to pay?

How would they prefer to pay?

How much does each revenue stream contribute to overall revenues?

Fixed Pricing Dynamic Pricing

List price

Product feature

dependent

Customer segment

dependent

Volume dependent

Negotiation

Yield management

Real-time-market

Auctions

KEY RESOURCES

drawings by JAM

Physical stock

Intellectual patent.

Human .

Financial.

What key resources do our value propositions require?

Our distribution channels?

Customer relationships?

Revenue streams?

KEY ACTIVITIES

What key activities do our value propositions require?

Our distribution channels?

Customer relationships?

Revenue streams?

Production vs.

Problem solving .

Platform / network .

KEY PARTNERS

Who are our key partners?

Who are our key suppliers?

Which key resources are we acquiring from partners?

Which key activities do partners perform?

Optimization and economy of scale

and suppliers

Reduction of risk

joint development of competing consumer electronics giants

Acquisition of particular resources and activities

uses operating system

COST STRUCTURE

What are the most important costs inherent in our business model?

Which key resources are most expensive?

Which key activities are most expensive?

Cost-driven

Value-driven

Fixed costs

Variable costs

Economies of scale

customer segments

key partners

cost structure

revenue streamskey

channels

customer relationships

key activities

key resources

value proposition

VALUE PROPOSITION

KEY CHANNELS

CUSTOMER RELATIONSHIPS

CUSTOMERSEGMENTS

REVENUE STREAMSCOST STRUCTURE

KEYACTIVITIES

PARTNERNETWORK

KEYRESOURCES

OVERLAY

VALUEPROPOSITION

KEYCHANNELS

CUSTOMERRELATIONSHIPS

CUSTOMERSEGMENTS

REVENUE STREAMSCOST STRUCTURE

KEYACTIVITIES

KEYPARTNERS

KEYRESOURCES

THE BUSINESS MODEL CANVAS

For what value are our customers really willing to pay? How would they prefer to pay? How much does each revenue stream contribute

to overall revenues?

What are the most important costs inherent in our business model? Which key resources are most expensive? Which key activities are

most expensive?

Who are our key partners? Who are our key suppliers? Which key resources are we

acquiring from partners? Which key activities do partners

perform?

What key activities do our value propositions require? Our

distribution channels? Customer relationships? Revenue

streams?

What key resources do our value propositions require? Our distribution channels? Customer

relationships? Revenue streams?

What value do we deliver to the customer? Which one of our customer’s problems are we

helping to solve? Which customer needs are we satisfying? What

bundles of products and services are we offering to each customer

segment?

Through which channels do our customer segments want to be

reached? How are our channels integrated? How are we

integrating them with customer routines?

What type of relationships does each of our customer segments

expect us to establish and maintain with them? How costly

are they? How are they integrated with the rest of our

business model?

For whom are we creating value? Who are our most

important customers?

let us sketch out an example

Skype is…

years old

billion users

million USD revenue 08

in 2011 Skype was sold to Microsoft

billionvalue

at

break -out session

reflect on the BM of and choose the

3 most important BM elements -> post-its

2 minutes

ANGEBOTE, NUTZEN-

VERSPRECHEN

KANÄLE

KUNDEN-BEZIEHUNGEN

KUNDEN-SEGMENTE

ERLÖSSTRÖMEKOSTENSTRUKTUR

SCHLÜSSEL-AKTIVITÄTEN

PARTNER

SCHLÜSSEL-RESSOURCEN

customer segments

key partners

cost structure

revenue streamskey

channels

customer relationships

key activities

key resources

value propositioncommon

language

common

language

check out for more:

http://www.businessmodelgeneration.com/

http://businessmodelhub.com/ 6000 members

http://www.linkedin.com/groups/Business-Model-Generation

3 businessincubation

3 businessincubation

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Tech StartTech StartTech StartTech Start----ups ups ups ups in the Aachen area

Lack of

� spacespacespacespace outside university institutes

� coaching by experiencedexperiencedexperiencedexperienced entrepreneursentrepreneursentrepreneursentrepreneurs

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The Entrepreneurial ProcessThe Entrepreneurial ProcessThe Entrepreneurial ProcessThe Entrepreneurial Process(Timmons)

OpportunityOpportunityOpportunityOpportunity

EntrepreneurialEntrepreneurialEntrepreneurialEntrepreneurialTeamTeamTeamTeam

RessourcesRessourcesRessourcesRessources

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Incubation’s Mission:Incubation’s Mission:Incubation’s Mission:Incubation’s Mission:Support of the Entrepreneurial Process

� MVP, Proof-of-Concept� Business Model Design

� Team-Coaching,-Complement

� Senior Mentoring

� Space,Infrastructure

� Access toSeed-Capital

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� Fully equipped offices� Complete infrastructure� Access to seed capital

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StartingStartingStartingStarting----upupupup amidstamidstamidstamidstLeadingLeadingLeadingLeading Technology CompaniesTechnology CompaniesTechnology CompaniesTechnology Companies

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600m2

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Incubation

Incubation

� Business Model Design� Lean Startup Methodology� Feedback Fusions

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� Senior Mentors support 1to1 with know-how and network

� Providing access to partners, potential customers, investors and - credibility

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Mentors at CO:FORWARD are experienced entrepreneurs and

industry insiders. They work voluntarily, support the team

individually and are wholly committed to the start-up needs.

Dr.BerndFasel

MatthiasPopp

PeterSelzer

Dr.RenéMauer

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CarloBlatz

Dr.-Ing.KlausLucka

Prof. Dr.MalteBrettel

ReinhardGoethe

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Mentors at CO:FORWARD are experienced entrepreneurs and

industry insiders. They work voluntarily, support the team

individually and are wholly committed to the start-up needs.

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OliverSchiffers

Dr.KlausGlöggler

Christian W.Rother

RolfGeisen

Mentors at CO:FORWARD are experienced entrepreneurs and

industry insiders. They work voluntarily, support the team

individually and are wholly committed to the start-up needs.

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TEAMSTEAMSTEAMSTEAMSTEAMSTEAMSTEAMSTEAMS

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PARTNERPARTNERPARTNERPARTNERPARTNERPARTNERPARTNERPARTNER

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E-Mail: af@coforward.deWeb: www.coforward.de

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