1. Business Modeling Tools Part 1 & 2 Alexander Hurtado Henao 07-02-2016

2. Program The Business Model Canvas (BMC)
The 9 building blocks + create a BMC
Break (30 minutes)
Storytelling
Presentation of your BMC
Effectuation

3. Definition of a business model
A business model describes the rationale of how an organization creates, delivers and captures value.

4. The Business Model Canvas

5. The Business Model Canvas

6. The Business Model Canvas
Alexander Osterwalder
&
Yves Pigneur

7. The Business Model Canvas
It’s a concept that allows you to describe and think through the business model of your organization, your competitors, or any other enterprise.
It’s a concept to create a shared language that allows you to easily describe and manipulate business models to create new strategic alternatives.
The nine blocks cover the four main areas of a business: customers, offers, infrastructure, and financial viability.

8. The 9 building blocks

9. The 9 building blocks

10. The Business Model Canvas Template

11. Example: Apple iPod/iTunes Business Model

12. The cow exercise

13. Customer Segments
The Customer Segments building block defines the different groups of people or organizations an enterprise aims to reach and serve.
For whom are we creating value?
Who are our most important customers?

14. Customer Segments
Mass market
Niche market
Segmented
Diversified

15. Customer Segments
The Customer Segments building block defines the different groups of people or organizations an enterprise aims to reach and serve.
For whom are we creating value?
Who are our most important customers?

16. Value Propositions
The Value Propositions building block describes the bundle of products and services that create value for a specific Customer Segment.
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?

17. Value Propositions Newness Performance Customization
Getting the job done
Design
Brand/status
Price
Accessibility and Usability

18. Value Propositions
The Value Propositions building block describes the bundle of products and services that create value for a specific Customer Segment.
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?

19. Channels
The Channels building block describes how a company communicates with and reaches its Customer Segments to deliver a Value Proposition.
Through which Channels do our Customer Segments want to be reached?
How are we reaching them now?
Which ones work best?

20. Channels The Channel phases Awareness Evaluation Purchase Delivery
After sales

21. Channels
The Channels building block describes how a company communicates with and reaches its Customer Segments to deliver a Value Proposition.
Through which Channels do our Customer Segments want to be reached?
How are we reaching them now?
Which ones work best?

22. Customer Relationships
The Customer Relationships building block describes the types of relationships a company establishes with specific Customer Segments.
What type of relationship does each of our Customer Segments expect us to establish and maintain with them?

23. Customer Relationships
Personal assistance
Dedicated personal assistance
Self-service
Communities
Co creation

24. Customer Relationships
The Customer Relationships building block describes the types of relationships a company establishes with specific Customer Segments.
What type of relationship does each of our Customer Segments expect us to establish and maintain with them?

25. Revenue Streams
The Revenue Streams building block represents the cash a company generates from each Customer Segments.
For what value are our customers really willing to pay?

26. Revenue Streams Asset sale Usage fee Subscription fees
Lending/Renting/Leasing
Brokerage fees
Advertising

27. Revenue Streams
The Revenue Streams building block represents the cash a company generates from each Customer Segments.
For what value are our customers really willing to pay?

28. Key Resources
The Key Resources building block describes the most important assets required to make a business model work.
What Key Resources do our Value Proposition require?

29. Key Resources
Physical
Intellectual
Human
Financial

30. Key Resources
The Key Resources building block describes the most important assets required to make a business model work.
What Key Resources do our Value Proposition require?

31. Key Activities
The Key Activities building blocks describes the most important things a company must do to make its business model work.
What Key Activities do our Value Propositions require?

32. Key Activities
Production
Problem solving

33. Key Activities
The Key Activities building blocks describes the most important things a company must do to make its business model work.
What Key Activities do our Value Propositions require?

34. Break

35. Key Partnerships
The Key Partnerships building block describes the network of suppliers and partners that make the business model work.
Who are our Key Partners?
Which Key Resources are we acquiring from partners?
Which Key Activities do partners perform?

36. Key Partnerships Optimization and economy of scale
Reduction of risk and uncertainty
Acquisition of particular resources and activities

37. Key Partnerships
The Key Partnerships building block describes the network of suppliers and partners that make the business model work.
Who are our Key Partners?
Which Key Resources are we acquiring from partners?
Which Key Activities do partners perform?

38. Cost Structure
The Cost Structure building block describes all costs incurred to operate a business model?
What are the most important costs inherent in our business?
Which Key Resources are most expensive?
Which Key Activities are most expensive?

39. Cost Structure
Cost-driven
Value-driven
Fixed costs
Variable costs

40. Cost Structure
The Cost Structure building block describes all costs incurred to operate a business model?
What are the most important costs inherent in our business?
Which Key Resources are most expensive?
Which Key Activities are most expensive?

41. Storytelling

42. Telling a visual story
Business models are complex concepts composed of various building blocks and their interrelationships, it is difficult to truly understand a model without sketching it out.

43. Telling a visual story Presentation killers & Presentation tips
1. Too much detail  Use words and visuals
2. Cognitive murder  Step by step
3. Orphan elements  Use colour coding

44. Too much detail  Use words and visuals

45. Too much detail  Use words and visuals

46. Cognitive murder  Step by step

47. Cognitive murder  Step by step

48. Orphan elements  Use colour coding

49. Orphan elements  Use colour coding

50. Telling a visual story Two techniques to tell a visual story:
The use of Post-it notes
The use of sketches

51. Telling a visual story
Four processes improved by visual thinking & telling:
Understanding the essence
Enhance dialogue
Explore ideas
Improve communication

52. Presentations

53. Effectuation
Effectuation is a way of thinking that serves entrepreneurs in the processes of opportunity identification and new venture creation.
Effectuation is a set of (5) decision- making principles introduced by Saras Sarasvathy.
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54. Effectuation
The most important difference between causal reasoning and effectuation is that an entrepreneur using causation has a given goal and searches for means to reach his goal. If the entrepreneur uses effectuation instead, he will start with the means he has and from this point he looks at possible goals.

55. 1. Bird in hand principle Start with your means (Who are you?)
The 3F’s, better known as friends, family and fools.
So an entrepreneur does not start with a given goal, but with the tools he or she has.

56. 2. Affordable loss principle
Focus on the downside risk.
An entrepreneur does not focus on possible profits, but on the possible losses and how they can minimize those losses.
Focus on limiting the downside to an affordable level that can be controlled and do not try to predict the upside as this is impossible under true uncertainty.

57. 3. Crazy quilt principle Form partnerships.
Entrepreneurs cooperate with parties they can trust. These parties can limit the affordable loss by giving pre-commitment.
Don’t pay for means and increase risk, share revenues and limit investments.

58. 4. Lemonade principle Entrepreneurs invite the surprise factor.
Surprises are not necessarily seen as something bad, but as opportunities to find new markets.

59. 5. Pilot in the plane principle
In this stage, all the previous principles are put together.
The future cannot be predicted, but entrepreneurs can control some of the factors which determine the future.
By focusing on activities within their control, entrepreneurs know their actions will eventually result in a desired outcome.

61. Business Modeling Tools Part 3 & 4 Alexander Hurtado Henao 09-02-2016

62. Program The Empathy Map Simon Sinek (inspirational video)
Stakeholders Analysis
Ricardo Semler (inspirational video)
Break (30 minutes)
Create a Business Model Canvas with an additional Empathy Map and Stakeholders analysis
Presentation of the products

63. The Empathy Map
This tool helps you go beyond a customer’s demographic characteristics and develop a better understanding of environment, behavior, concerns and aspirations of the customer.
It allows you to devise a stronger business model because it helps you to better understand what a customer is truly willing (to pay for it).

64. The Empathy Map

65. Exercise: The Empathy Map
What does the customer see?
What does the customer really think and feel?
What does the customer say and do?
What is the customer’s pain?
What does the customer gain?

66. Example: The Empathy Map

67. Inspirational video
Simon Sinek =u4ZoJKF_VuA

68. Stakeholders Analysis
The definition of a stakeholder: a person, group or organization that has interest or concern in an organization. Not al stakeholders are the same. Some of them are more influential than others, or are more important in your organization than others. By making an analysis of the stakeholders you can choose the right strategy to connect with them.

69. Stakeholders Analysis

70. Exercise: Stakeholders Analysis
Brainstorm about all possible stakeholders (at least 10)
Give them their proper place in the matrix

71. Inspirational video
Ricardo Semler k4vzhweOefs

72. Break

73. Program Create a Business Model Canvas
Make an Empathy Map of the Customer Segments
Make a Stakeholders Analysis of the Key Partners
Present your BMC, Empathy Map and Stakeholders Analysis