2016 ceo business models presentation

© Starcher Group LLC For the sole use of client

Business Models for Entrepreneurs

CEO National ConferenceTampa, FL

October 2016


Business Models

since 2002

Background


Definition

Business Models ?

No common mental model


Today’s Hot Answer

What are the most important costs inherent in our business model? Which Key Resources are most expensive? Which Key Activities are most expensive?

Through which Channels do our Customer Segments want to be reached? How are we reaching them now?How are our Channels integrated? Which ones work best?Which ones are most cost-efficient? How are we integrating them with customer routines?

For what value are our customers really willing to pay?For what do they currently pay? How are they currently paying? How would they prefer to pay? How much does each Revenue Stream contribute to overall revenues?

For whom are we creating value?Who are our most important customers?

What type of relationship does each of our CustomerSegments expect us to establish and maintain with them?Which ones have we established? How are they integrated with the rest of our business model?How costly are they?

What value do we deliver to the customer?Which one of our customer’s problems are we helping to solve? What bundles of products and services are we offering to each Customer Segment?Which customer needs are we satisfying?

What Key Activities do our Value Propositions require?Our Distribution Channels? Customer Relationships?Revenue streams?

Who are our Key Partners? Who are our key suppliers?Which Key Resources are we acquiring from partners?Which Key Activities do partners perform?

What Key Resources do our Value Propositions require?Our Distribution Channels? Customer Relationships?Revenue Streams?

Day Month Year

No.

This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/

or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.

Osterwalder &Al.– BusinessModelCanvas


What is a Business Model?

Architect Blueprintsfor Businesses


Multiple Schools of Thought

1995 2000 2005 2010 2015 2020

Business Models

for Entrepreneurs A how-to book on getting beyond

Minimal Viable Products

to build a business

Bruce Starcher


Business Model Elements

Strategic Context

Customer Selection

Customer Value Gap

Profit Models

RevenueModels

Strategic Control Points

Scope Economic Model

Operating Model Organizational Model

Value Proposition


Business Model Process

Where is there a gap in

customer experience, where the

customer is willing to pay to close the

gap?

What business model

leverage the customer

value gaps?

What potential strategies are available with this business

model?

What actions do I take to deliver the strategies?

Customer Value Gaps

BusinessModels Strategies Operating

Plan


No Customer Value Gap

No Business Model

Customer Value Gaps

Customer Value Gaps are central to the Business Model


Social / Cultural

•Visibly one of the group•Sense of belonging•Social Status

Emotional

•Pride•Power

•Nostaligia

Customer Value Gaps

Gap between the desired and actual/latent customer experience where the customer is willing to pay to close the gap.

“pay” can be price premium, changing vendors, increased loyalty and preference.

Harley 883 Sportster Honda 599Quick, affordable 2-wheeled transportation

–$6500–883 cc–155 mph

Quick, affordable 2-wheeled transportation

–$7100–600 cc–136 mph

Classic Harley-sports look & feel of fun, responsive & powerful, easy

– styling– frame/suspension– acoustics– accessories

Classic Honda-sports look & feel of naked power, versatile handling

– styling– frame/suspension– acoustics– accessories

Harley family Member – Social status thru brand &

branded merchandise– Belonging thru HOG– Affinity with maverick society

thru brand & brand merchandise

Functional

•Personal Transportation

•Quick•Affordable

Functional, Emotional and Social

It works

I like it

I want to belong


Business Model ?

Funding ?

Initial Business Model

Business Models are central to funding


The initial business model is likely to change over time

Business Model

Good enough, evolve, pivot, …

Initial Business Model


Launch a Product ?

Launch a Business ?

Lean Start-Up and Business Models


Business Model Lifecycle

New Emerging Core

Business Model Transformation

Business Model Innovation & Definition

Business Model Evolution

Next Gen Business Model

Declining

Managing your business model over time


IBM Business Model Decisions

0

50000

100000

150000

200000

250000

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

IBMMarketCapitalization,Millions, 31stDec

Entered PC Market

Outsourced Chip/OS to Intel and

MSFT

Mainframe Focus

Services

Commoditization of Services


Dell Business Model Decisions

0

20

40

60

80

100

120

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

DellMarketCap$B

Dell goes Private

Acquisition Spree

Perot Systems

PC Channel expansion to

retail

Kevin Rollins

Dell beyond PCs

Direct to Corporate

Clients

Dell PC Web Sales


Apple Business Model Decisions

0

100

200

300

400

500

600

700

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

AAPLMarketCapitalization,Billion

Mac Franchise

iPhone 6

App Store

iPhone 1

Apple Retail Stores

iTunes

Steve Jobs


Business Models

for Entrepreneurs A how-to book on getting beyond

Minimal Viable Products

to build a business

Bruce Starcher

iBooks Freehttps://itunes.apple.com/us/book/business-models-for-entrepreneurs/id1069381128?mt=11

Website Freehttp://www.starchergroup.com/book/

AmazonKindle $2.99https://www.amazon.com/Business-Models-Entrepreneurs-practical-business-ebook/dp/B019FNOI78

Business Models for Entrepreneurs: A Practical Guide

Free Resources: http://www.starchergroup.com/book/

Free Resource


Discussion


Thank you.