ennova Business Models A platform for analyzing existing business models and imagining new ones

ennova Hi, I’m Digit

ennova I’m here to talk to you about... Business Models

ennova This presentation is about using a common platform to describe business models.

ennova Let’s start with... “What is a business model?”

ennova A business model describes how an entity organizes itself to create value and derive revenue. Alex Osterwalder PhD You can learn more at his website: eration.com/

ennova By using a common platform to describe our business models we can have a common language to describe where we are going.

ennova... all understand how the work we do fits together to form the whole. By using a common platform to describe our business models we can...

ennova... imagine new capabilities to add to our organization to see how they would fit. By using a common platform to describe our business models we can...

ennova... ask questions about why we do things the way we do, and see the impacts everywhere. By using a common platform to describe our business models we can...

ennova By using a common platform to describe our business models we can evaluate the risk of changing our business structures.

ennova... use it to imagine new business models that would create new value and new revenue streams By using a common platform to describe our business models we can...

ennova Okay, we're convinced. A common platform to describe business models would be great. But what is this platform?

ennova Could you hurry up? These are heavy.

ennova Who - Customers The business model platform starts with customers.

ennova What - Offer Customers Next comes the offer made to customers.

ennova Offer How - Organization Customers Followed by the organization, the entity that makes the offer possible

ennova Why - Economics Offer Organization Customers Finally, the economics, the costs and revenues associated with it all. That’s it, only 4 categories?

ennova Economics Offer Organization Customers There’s more. Nine building blocks define the key relationships between these four areas.

ennova Customer Segments Economics Offer Organization Customers First, what are the customer segments your business model serves?

ennova Customer Segments Customer Segments Economics Offer Organization Customers Second, what is the offer you have for each segment? Value Proposition

ennova Customer Segments Customer Segments Economics Offer Organization Customers Third, what characterizes the relationship with the customer? Value Proposition Relationship Management

ennova Customer Segments Customer Segments Economics Offer Organization Customers Four, how will you distribute your offer to this customer type? Value Proposition Relationship Management Distribution Channels

ennova Customer Segments Customer Segments Economics Offer Organization Customers Five, how will you charge for this offer? Value Proposition Relationship Management Distribution Channels Revenue Flows Cool! That’s how our value generates revenue

ennova Customer Segments Customer Segments Economics Offer Organization Customers Six, what key activities do you perform to deliver this offer? Value Proposition Relationship Management Distribution Channels Revenue Flows Key Activities That’s us and our work.

ennova Customer Segments Customer Segments Economics Offer Organization Customers Seven, what activities will you give to partners to perform as they can do it better than you? Value Proposition Relationship Management Distribution Channels Revenue Flows Key Activities Partner Network

ennova Customer Segments Customer Segments Economics Offer Organization Customers Eight, what resources do you need to perform the activities? Value Proposition Relationship Management Distribution Channels Revenue Flows Key Activities Partner Network Key Resources

ennova Customer Segments Customer Segments Economics Offer Organization Customers Finally, how do your resources and partners drive costs? Value Proposition Relationship Management Distribution Channels Revenue Flows Key Activities Partner Network Key Resources Cost Structure Great. Can you show us an example?

ennova Sure, but before we talk about that, take a moment to review the business model platform. Business Model Canvas © Alex Osterwalder 9 Building Blocks Define Your Business Model

ennova Do you know Skype? Business Model Canvas © Alex Osterwalder

ennova They started by targeting travelers and small business owners. Business Model Canvas © Alex Osterwalder Travelers Small Business

ennova Travelers Small Business Free calls Reasonable Quality Conference calls Video calls Cheap calls to phones (Skype out) With an offer for free calls, free video conference and cheap calls to phones. Business Model Canvas © Alex Osterwalder

ennova Travelers Small Business Web Automated web relationship Software download set-up Free calls Reasonable Quality Conference calls Video calls Cheap calls to phones (Skype out) The relationship was, and remains automatic, with distribution through the web. Business Model Canvas © Alex Osterwalder

ennova Travelers Small Business Web Skype Out Ancillary Products Free Automated web relationship Software download set-up Free calls Reasonable Quality Conference calls Video calls Cheap calls to phones (Skype out) Revenues come from Skype-out calls and ancillary products. Most calls are free. Business Model Canvas © Alex Osterwalder

ennova Travelers Small Business Web Skype Out Ancillary Products Free Software Development Complaint Management Automated web relationship Software download set-up Free calls Reasonable Quality Conference calls Video calls Cheap calls to phones (Skype out) Key activities are software development and complaint management. Business Model Canvas © Alex Osterwalder

ennova Travelers Small Business Web Skype Out Ancillary Products Free Software Development Complaint Management Automated web relationship Software download set-up Country Telcos Payment Providers Logitech Free calls Reasonable Quality Conference calls Video calls Cheap calls to phones (Skype out) They partner with Telcos, payment and product providers. Business Model Canvas © Alex Osterwalder

ennova Travelers Small Business Web Skype Out Ancillary Products Free Software Development Complaint Management Software Developers Software Automated web relationship Software download set-up Country Telcos Payment Providers Logitech Free calls Reasonable Quality Conference calls Video calls Cheap calls to phones (Skype out) Unlike Telcos with $billions invested in infrastructure, Skype’s key resources are developers and the software. Business Model Canvas © Alex Osterwalder

ennova As a software company their costs are limited to software development and complaint management. Travelers Small Business Web Skype Out Ancillary Products Free Software Development Complaint Management Software Developers Software Software Development Complaint Management Automated web relationship Software download set-up Business Model Canvas © Alex Osterwalder Country Telcos Payment Providers Logitech Free calls Reasonable Quality Conference calls Video calls Cheap calls to phones (Skype out) Partner Fees

ennova See how easy it is to describe how a company works? Business Model Canvas © Alex Osterwalder

ennova Business Model Canvas © Alex Osterwalder Just for fun Skype recently released their numbers for million registered users 100 billion free calls $550 million revenue They’ve become the largest provider of cross-border voice communications in the world.

ennova So, that’s what business models are all about.

ennova Imagine if everyone in your organization had a common understanding of your business model?

ennova What value could you unlock?