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

2. 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

3. 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!!!

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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)

12. 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)

13. 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

14. 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

15. 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

16. 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

17. 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

18. 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

19. 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

20. 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, copies / year)
80-100M€ / year in France
Investment is being made by the movie theator
400M€ for France
?????

21. 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

22. 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

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