VN IPP - Week 1 - Session 05 - Business Model Design

VN IPP - Week 1 - Session 05 - Business Model Design

Business

Model Design

What’s a business model?

Alex Osterwalder’s

Business Model Canvas

There are lots

of ways to use

the canvas

Inspect other

businesses.

Why do Chrome

and Android matter

so much to Google?

Searchers

Find

Find

Customer

?

Find

Customer 000X / search

So who is

paying?

Find

Customer 000X / search

Find

Advertisers

Measurable

Measurable Any budget

Measurable Any budget Big audience

Big audience

Big audience

Those are the

basics

But how do they

get and keep

Big audience

Word of mouth?

Big audience

Word of mouth?

Brand?

Big audience

Word of mouth?

Brand?

Twitter?

Big audience

When you searched for

something today, why did you use Google?

Word of mouth?

Brand?

Twitter?

Big audience

Word of mouth?

Brand?

Twitter?

Big audience

Great product?

Word of mouth?

Brand?

Twitter?

Big audience

Great product?

No other options?

Word of mouth?

Brand?

Twitter?

Big audience

Great product?

No other options?

Word of mouth?

Brand?

Twitter?

Big audience

Word of mouth?

Brand?

Twitter?

Big audience

It’s the default

The default?

Where?

Word of mouth?

Brand?

Twitter?

Big audience

It’s the default

Word of mouth?

Brand?

Twitter?

Big audience

It’s the default Mozilla’s

Firefox

Word of mouth?

Brand?

Twitter?

Big audience

It’s the default

Mozilla’s

Firefox

Apple’s

Safari

Word of mouth?

Brand?

Twitter?

Big audience

It’s the default

Mozilla’s

Firefox

Apple’s

Safari

Big audience

It’s the default

Big audience

It’s the default

Big audience

It’s the default

$X00 M / year

Why do Chrome

and Android matter

so much to Google?

Big audience

It’s the default

$X00 M / year

Big audience

It’s the default

Big audience

It’s the default

$X00 M / year

Big audience

It’s the default

Big audience

It’s the default

$X00 M / year

Big audience

It’s the default Build a

browser

Big audience

It’s the default

$X00 M / year

Build a browser

35%

browser share

Big audience

It’s the default

Build a browser

35%

browser share

Our own browser

Big audience

It’s the default

$X00 M / year

Build a browser

35%

browser share

Our own browser

Phone default search

Big audience

It’s the default

Build a browser

35%

browser share

Our own browser

Phone default search iOS

etc

Let’s deconstruct the

canvas

Let’s try it!

Interview someone about their business model — cover value proposition

and customer segments

Who you reach through some channel

The right side

How do you stop

Let’s try it!

Interview someone about

their business model —

cover the right hand side

of the canvas

costs you money.

your tech, your

Using your Key Resources

Your company has

Anything you don’t do

or have yourself, you get from a partner.

In pairs

Map out each others business

model

Present.

How’d they do?

•Explains the business?

•Focused on the main

bits?

•Good, engaging story?

Let’s try it!

Break into groups and map out a famous

business model

POST UP

Levels of proficiency

Parts Checklists & dashboards

Whole When the parts fit together

into a working system.

Navigating a changing environment Evolving through

Self Disruption Resiliency through re-invention

Spot better

options

Success comes from persistently

improving and inventing, not from

persistently pushing what's not

working.

- Derek Sivers

The success of iteration depends on speed, and spotting

the right

opportunities.

Awareness of your

options

helps you spot the right opportunities.

Viral Direct-over-vira

l

how do architects

get it right with only

one shot?

How To Prototype

1 Use sticky notes

2 Write down what you’re

saying

Think of as many

customer segments as you

can.

Think of a value

proposition for each

customer segment.

What if Richard

Branson was your

business partner?

You can’t think about any one part

without thinking about the rest.

Changing something changes everything.

A “simple” change.

What else changed?

What were the ripples with Branson?

Your idea will work,

but someone else

already did it.

How can you sell your business for

$2M in 18 months?

Low-End Disruption:

What if you could only

serve your lowest-profit

customer segment?

You need to have

revenue (or double

revenue) in one

month How?

What is the

transformation the

customer seeks?

How do you open

your IP?

Good business models are clear,

focused and congruent The

parts fit

We don’t know if these

ideas are good yet; it’s

just a quick way to sketch out how they would work

You’ve built a great app Users

use the free trial They love it

They use it every day When the free trial expires, they don’t

buy.

References & Contributors