Business Model – The System « To explore the spectrum of possibilities, bootstrapping is the most efficient method » Hubert Reeves - Astrophysicist Business Model – The System

DISTRIBUTION CHANNELS 6 – The System PARTNER NETWORK KEY ACTIVITIES OFFER CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS Startup Opt The N#1 skill Driving in the dark – the rules The Business Model Canvas The Nine Blocks The System Level 1 The Business Model framework: … as a guide for the execution KEY RESOURCES DISTRIBUTION CHANNELS COST STRUCTURE REVENUE STREAMS

DISTRIBUTION CHANNELS 6 – The System Building an Unfair Advantage PARTNER NETWORK KEY ACTIVITIES OFFER CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS Startup Opt The N#1 skill Driving in the dark – the rules The Business Model Canvas The Nine Blocks The System Level 2: The Business Model as a system: … as a guide for strategic thinking KEY RESOURCES DISTRIBUTION CHANNELS COST STRUCTURE REVENUE STREAMS This is how global leaders are built!!!

Strategic issues from small to big DISTRIBUTION CHANNELS 6 – The System Building an Unfair Advantage PARTNER NETWORK KEY ACTIVITIES OFFER CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS Startup Opt The N#1 skill Driving in the dark – the rules The Business Model Canvas The Nine Blocks The System Strategic issues from small to big Scaling : Roadmap night or night to daily usage Org: Outsourcing the infrastructure (really ?) Value : B2B (technology provider) / B2C service KEY RESOURCES DISTRIBUTION CHANNELS COST STRUCTURE REVENUE STREAMS Example : Padam

How to think strategies and building a global leader 6 – The System Building an Unfair Advantage PARTNER NETWORK KEY ACTIVITIES OFFER CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS How to think strategies and building a global leader from the Business Model ? Startup Opt The N#1 skill Driving in the dark – the rules The Business Model Canvas The Nine Blocks The System KEY RESOURCES DISTRIBUTION CHANNELS COST STRUCTURE REVENUE STREAMS

DISTRIBUTION CHANNELS 6 – The System Building an Unfair Advantage PARTNER NETWORK KEY ACTIVITIES OFFER CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS VALUE KEY RESOURCES DISTRIBUTION CHANNELS COST STRUCTURE REVENUE STREAMS

DISTRIBUTION CHANNELS 6 – The System Building an Unfair Advantage PARTNER NETWORK KEY ACTIVITIES OFFER CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS VALUE Secure customer loyalty Enhance competitive advantage Build comp. assets / comp barriers KEY RESOURCES DISTRIBUTION CHANNELS COST STRUCTURE REVENUE STREAMS

DISTRIBUTION CHANNELS 6 – The System Building an Unfair Advantage PARTNER NETWORK KEY ACTIVITIES OFFER CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS ORGANISATION Startup Opt The N#1 skill Driving in the dark – the rules The Business Model Canvas The Nine Blocks KEY RESOURCES DISTRIBUTION CHANNELS COST STRUCTURE REVENUE STREAMS

DISTRIBUTION CHANNELS 6 – The System Building an Unfair Advantage PARTNER NETWORK KEY ACTIVITIES OFFER CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS ORGANISATION Cost advantage Build strategic assets (data, know-how) Speed, Flexibility Startup Opt The N#1 skill Driving in the dark – the rules The Business Model Canvas The Nine Blocks KEY RESOURCES DISTRIBUTION CHANNELS COST STRUCTURE REVENUE STREAMS

CUSTOMER RELATIONSHIPS DISTRIBUTION CHANNELS 6 – The System Building an Unfair Advantage PARTNER NETWORK Bring key components: Supplier, Distributor, Other partners… Outside core business / know how KEY ACTIVITIES OFFER CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS KEY RESOURCES DISTRIBUTION CHANNELS COST STRUCTURE REVENUE STREAMS

Outside core business / CUSTOMER RELATIONSHIPS DISTRIBUTION CHANNELS 6 – The System Building an Unfair Advantage PARTNER NETWORK Bring key components: Supplier, Distributor, Other partners… Outside core business / know how Out of control (not strategic asset or know-how) KEY ACTIVITIES Control DNA of the business OFFER CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS KEY RESOURCES DISTRIBUTION CHANNELS COST STRUCTURE REVENUE STREAMS Lower invt Max ROE Increase investment (funding, initial risk)

CUSTOMER RELATIONSHIPS DISTRIBUTION CHANNELS 6 – The System Building an Unfair Advantage Strategic Perspective PARTNER NETWORK Bring key components: Supplier, Distributor, Other partners… Outside core business / know how Out of control (not strategic asset or know-how) KEY ACTIVITIES Control DNA of the business OFFER CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS KEY RESOURCES DISTRIBUTION CHANNELS Financial Perspective COST STRUCTURE REVENUE STREAMS Lower invt Max ROE Increase investment (funding, initial risk)

CUSTOMER RELATIONSHIPS DISTRIBUTION CHANNELS 6 – The System Building an Unfair Advantage PARTNER NETWORK Bring key components: Supplier, Distributor, Other partners… Outside core business / know how KEY ACTIVITIES OFFER CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS Software Hardware KEY RESOURCES DISTRIBUTION CHANNELS COST STRUCTURE REVENUE STREAMS

CUSTOMER RELATIONSHIPS DISTRIBUTION CHANNELS 6 – The System Building an Unfair Advantage PARTNER NETWORK Bring key components: Supplier, Distributor, Other partners… Outside core business / know how KEY ACTIVITIES OFFER CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS KEY RESOURCES DISTRIBUTION CHANNELS COST STRUCTURE REVENUE STREAMS

DISTRIBUTION CHANNELS 6 – The System Building an Unfair Advantage PARTNER NETWORK Or Integrator KEY ACTIVITIES Service ? OFFER Productivity tools: Time saving Efficiency Integration in the cust. environment ? Part of the core VP ? Or Part of the sales job ? (integrators) CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS Broadcasters TV channel Content Producers Startup Opt The N#1 skill Driving in the dark – the rules The Business Model Canvas The Nine Blocks The System Trade off between COMPT ADV / BARRIER OF ENTRY ECONOMICS (funding, cash) KEY RESOURCES DISTRIBUTION CHANNELS Direct or Integrator COST STRUCTURE REVENUE STREAMS

DISTRIBUTION CHANNELS 6 – The System Building an Unfair Advantage PARTNER NETWORK KEY ACTIVITIES OFFER CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS KEY RESOURCES DISTRIBUTION CHANNELS COST STRUCTURE REVENUE STREAMS ECONOMICS

DISTRIBUTION CHANNELS 6 – The System Building an Unfair Advantage PARTNER NETWORK KEY ACTIVITIES OFFER CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS KEY RESOURCES DISTRIBUTION CHANNELS COST STRUCTURE Investment Fixed cost Variable cost REVENUE STREAMS Revenue engine

DISTRIBUTION CHANNELS 6 – The System Building an Unfair Advantage PARTNER NETWORK KEY ACTIVITIES OFFER CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS KEY RESOURCES DISTRIBUTION CHANNELS COST STRUCTURE REVENUE STREAMS ECONOMICS It can allow to smoothe or lower barriers of adoption It impacts investment (/ funding) and cash flow dynamic

Grobocopatel in Argentina: DISTRIBUTION CHANNELS 6 – The System Building an Unfair Advantage PARTNER NETWORK KEY ACTIVITIES OFFER CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS Grobocopatel in Argentina: Couldn’t afford to buy land Decided to rent it Became the 1st cereal producer in Argentina KEY RESOURCES DISTRIBUTION CHANNELS COST STRUCTURE Investment Fixed cost Variable cost REVENUE STREAMS Revenue engine

Building an Unfair Advantage 6 – The System Building an Unfair Advantage Challenge: mutation to Digital Problem: Digital Projectors cost 5 times more Strong barriers to adoption: Savings are made by distributors (900€ / copie, 80000 copies / year) 80-100M€ / year in France Investment is being made by the movie theator 400M€ for France ?????

DISTRIBUTION CHANNELS 6 – The System Building an Unfair Advantage PARTNER NETWORK KEY ACTIVITIES OFFER CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS KEY RESOURCES DISTRIBUTION CHANNELS COST STRUCTURE REVENUE STREAMS Revenue innovation The Digital projector is rented to the movie theater at a price that matches the old analog projector Distributor pay a fee / copy Fees cover the difference  Transparent for the theator

Understanding system dynamic DISTRIBUTION CHANNELS 6 – The System Building an Unfair Advantage Understanding system dynamic The dynamic interaction between the 3 substems has a direct impact on 3 strategic dimensions: Business growth dynamic Ability to scale up to mainstream markets , overcome adoption hurdles Competitive dynamic Building barriers that will exclude or at least slow down competition. Economics Impacts the cost of entry (funding requirement), cash flow dynamic PARTNER NETWORK KEY ACTIVITIES OFFER CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS Startup Opt The N#1 skill Driving in the dark – the rules The Business Model Canvas The Nine Blocks The System System Dynamic KEY RESOURCES DISTRIBUTION CHANNELS COST STRUCTURE REVENUE STREAMS

Developping the project « To explore the spectrum of possibilities, bootstrapping is the more efficient method » Hubert Reeves - Astrophysicist Developping the project