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Business Model Creation and Value Propositions

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Page 1: Business Model Creation and Value Propositionsocw.upj.ac.id/files/Slide-CPS107-CPS107-Slide-Value-Proposition.pdfValue Created Through… Newness Price Performance Cost Reduction Customization

Business Model Creation and Value

Propositions

Page 2: Business Model Creation and Value Propositionsocw.upj.ac.id/files/Slide-CPS107-CPS107-Slide-Value-Proposition.pdfValue Created Through… Newness Price Performance Cost Reduction Customization

Photo credit: Got Credit

Page 3: Business Model Creation and Value Propositionsocw.upj.ac.id/files/Slide-CPS107-CPS107-Slide-Value-Proposition.pdfValue Created Through… Newness Price Performance Cost Reduction Customization

Value Created Through…Newness Price

Performance Cost Reduction

Customization Risk Reduction

Getting the job done Accessibility

Design Convenience

Brand/Status Usability

Page 4: Business Model Creation and Value Propositionsocw.upj.ac.id/files/Slide-CPS107-CPS107-Slide-Value-Proposition.pdfValue Created Through… Newness Price Performance Cost Reduction Customization

The new kid on the block

Pages 1-100: https://strategyzer.com/value-proposition-design

Page 5: Business Model Creation and Value Propositionsocw.upj.ac.id/files/Slide-CPS107-CPS107-Slide-Value-Proposition.pdfValue Created Through… Newness Price Performance Cost Reduction Customization

Business Model Primer

Page 6: Business Model Creation and Value Propositionsocw.upj.ac.id/files/Slide-CPS107-CPS107-Slide-Value-Proposition.pdfValue Created Through… Newness Price Performance Cost Reduction Customization

Business Model Canvas

Serving the customerProducing the offer

The bottom line

Page 7: Business Model Creation and Value Propositionsocw.upj.ac.id/files/Slide-CPS107-CPS107-Slide-Value-Proposition.pdfValue Created Through… Newness Price Performance Cost Reduction Customization

Where do you start?

User driven designEffectuation

You never start here!

Page 8: Business Model Creation and Value Propositionsocw.upj.ac.id/files/Slide-CPS107-CPS107-Slide-Value-Proposition.pdfValue Created Through… Newness Price Performance Cost Reduction Customization

Effectuation

• http://www.effectuation.org/

• A principle for creating start-up’s

– Based on Saras Sarasvathy’s researchStart with Who I am—my traits, tastes, and abilitiesWhat I know—my education, training, expertise, and experienceWho I know—my social and professional networks.Using a combination of these means, the entrepreneur begins to imagine possibilities and take action.

Page 9: Business Model Creation and Value Propositionsocw.upj.ac.id/files/Slide-CPS107-CPS107-Slide-Value-Proposition.pdfValue Created Through… Newness Price Performance Cost Reduction Customization

Customers/ segments

Customer relations

Value proposition

ActivitiesPartners

Resources Channels

Costs Revenue

Value Proposition Canvas One for each customer

segment/value proposition pair

Page 10: Business Model Creation and Value Propositionsocw.upj.ac.id/files/Slide-CPS107-CPS107-Slide-Value-Proposition.pdfValue Created Through… Newness Price Performance Cost Reduction Customization

Value Proposition Canvas

Value Proposition Customer Segment

Page 11: Business Model Creation and Value Propositionsocw.upj.ac.id/files/Slide-CPS107-CPS107-Slide-Value-Proposition.pdfValue Created Through… Newness Price Performance Cost Reduction Customization

Value Proposition Canvas

GainsGain creators

Offering

Pain relievers

Gain creatorsServices

Pain relievers

Jobs

Pains

Gains Jobs Pains

Page 12: Business Model Creation and Value Propositionsocw.upj.ac.id/files/Slide-CPS107-CPS107-Slide-Value-Proposition.pdfValue Created Through… Newness Price Performance Cost Reduction Customization

Where do I get the input?

Customer profileLearned from users

Value mapDefined by you

FITValidated with

real users

Page 13: Business Model Creation and Value Propositionsocw.upj.ac.id/files/Slide-CPS107-CPS107-Slide-Value-Proposition.pdfValue Created Through… Newness Price Performance Cost Reduction Customization

There be Post-It’s

Discovered by observing customers

Your innovation and creativity!

Page 14: Business Model Creation and Value Propositionsocw.upj.ac.id/files/Slide-CPS107-CPS107-Slide-Value-Proposition.pdfValue Created Through… Newness Price Performance Cost Reduction Customization

Not all issues are created equal

Page 15: Business Model Creation and Value Propositionsocw.upj.ac.id/files/Slide-CPS107-CPS107-Slide-Value-Proposition.pdfValue Created Through… Newness Price Performance Cost Reduction Customization

Exercise

Do a value proposition canvas analysis of AirBnB(https://www.airbnb.com/ )

• From 2 perspectives:

– Guest

– Host

Page 16: Business Model Creation and Value Propositionsocw.upj.ac.id/files/Slide-CPS107-CPS107-Slide-Value-Proposition.pdfValue Created Through… Newness Price Performance Cost Reduction Customization

Step 1: Right side

• Get BMC/VPC

• Fill in two VPCs/right hand side

• 3 – 4 PostIt’s per field (jobs, pains, gains)

TIME: 6 minutes

Page 17: Business Model Creation and Value Propositionsocw.upj.ac.id/files/Slide-CPS107-CPS107-Slide-Value-Proposition.pdfValue Created Through… Newness Price Performance Cost Reduction Customization

Step 2: Right side

• Fill in two VPCs/left hand side

• 3 – 4 PostIt’s per field (products and services, pain relievers, gain creators)

TIME: 6 minutes

Page 18: Business Model Creation and Value Propositionsocw.upj.ac.id/files/Slide-CPS107-CPS107-Slide-Value-Proposition.pdfValue Created Through… Newness Price Performance Cost Reduction Customization

Check your answers against

• http://www.slideshare.net/PitchDeckCoach/airbnb-first-pitch-deck-editable

Page 19: Business Model Creation and Value Propositionsocw.upj.ac.id/files/Slide-CPS107-CPS107-Slide-Value-Proposition.pdfValue Created Through… Newness Price Performance Cost Reduction Customization

Why? Competing for the open slot =

Page 20: Business Model Creation and Value Propositionsocw.upj.ac.id/files/Slide-CPS107-CPS107-Slide-Value-Proposition.pdfValue Created Through… Newness Price Performance Cost Reduction Customization

Thank you

Slide Deck Credits: Håkan Mitts