business model design for designers
DESCRIPTION
James Kalbach at User Experience Roundtable Hamburg 2-Jul-2012 http://www.uxhh.de/roundtable/archiv/index.html#Jul12TRANSCRIPT
Business Model Design for Designers
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JIM KALBACH
Principal UX Strategist, USEEDS°
@jameskalbach
www.ExperiencingInformation.comwww.UxToGo.com
www.xing.com/profile/James_Kalbach
Rutgers University, USA
Designing Web Navigation
What is a business model?
Was ist ein Geschäftsmodell?
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“The Business Model: Theoretical Roots, Recent Developments, and Future Research”
C. Zott, R. Amit, & L.Massa.,
WP-862, IESE, June, 2010 - revised September 2010
http://www.iese.edu/research/pdfs/DI-0862-E.pdf
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Definition
A business model describesthe rationale of how anorganization creates, delivers,and captures value.
ALEXANDER OSTERWALDER
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Visualizing Business Models
„A business model, from our point of view, consists of four interlocking elements that, taken together, create and deliver value.“
MARK W. JOHNSON et al., “Reimagine Your Business Model,” HBR (Dec 2008)
Enter:
The Business Model Canvas
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1. Customer Segments
The groups of people or organizations an enterprise aims to reach and serve
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2. Value Proposition
The bundle of products and services that create value for a specific Segment.
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3. Channels
How a company communicates with and reaches its Customer Segments to deliver a Value Proposition
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4. Customer Relationships
The types of relationships a companyestablishes with specific Customer Segments
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5. Revenue Streams
The cash a company generates from each CustomerSegment (costs must be subtracted from revenues tocreate earnings ;)
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6. Key Ressources
The most important assets required to make a business model work
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7. Key Activities
The most important things a company must doto make its business model work
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8. Key Partners
The network of suppliers and partners that makethe business model work
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9. Cost Structure
All costs incurred to operate a business model
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The Business Model Canvas
The nine business model Building Blocks formthe basis for a handy tool, called Business Model Canvas.
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The Business Model Canvas
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The Business Model Canvas
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Front Strage: Customer
Facing
Back Stage:Business
Processes
CustomerBusiness
BFD,Kalbach
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Business Model Innovation
IBM Global Service, “Business Model Innovation,” Sept 2006
“ While CEOs still believe that product,
service and operational innovations are
important, they feel that innovation
must also be applied to a company’s
very core — to the way it does business
and drives revenue. CEOs deemed these
business model innovations vital to
creating new and differentiating value
for their companies.”
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Creativity & Business
“CEOs identified creativity as the number-one leadership competency of the future…
[But creativity] isn‘t something they learn within their company, and it certainly isn‘t something they are taught in business school. Business schools teach people how to be deliverers, not discoverers.“
JEFF DYER AND HAL GREGERSEN, The Innovator‘s DNA, Harvard Business Press, 2011
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Prototype Business Models
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2.8 billion people don’t have proper sanitation
Every 15 seconds a child dies from sanitation-related illnesses
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The Business Model Canvas
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People in dev. world w/o
toilets
Accessible, affordable sanitation
PeePoople
The Business Model Canvas
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People in dev. world w/o
toilets
Accessible, affordable sanitation
Franchiser - Women
QA
Management, Coordination of Franchises
IP, Technology
HR
Direct POU sales on
location via Franchise
Per bag sales revenue
Chance to earn money
NGOs
Local governments
UN
Production Bulk sales
Peace of mindSales of
franchise packages
Awareness, Marketing
Direct, personal,
family
Franchise operations
Partner
Distribution and collection
Transporta-tion
PeePoople
Business Model Prototyping
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BMC Addresses Problems of Business Models
• Different definitions and understandings
• Hard to change in established organizations
• The logic is “invisible“
• Often not creatively designed
It Doesn’t Work*
(*for you, most of the time)
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Uses of the Business Model Canvas for Designers
1. Understanding business models
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JARED SPOOL, “Revealing Design Treasures From The Amazon Site“
#4: Never forget the business
“Amazon’s business model is deliberately designed, and the site is designed to fit the business.
You have to start with a great business model to produce a great experience.“
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Business Model Design: Disruption Case Study [Xiamter]http://experiencinginformation.wordpress.com/2011/09/02/business-model-design-disruption-case-study/
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Uses of the Business Model Canvas for Designers
1. Understanding business models
2. Showing stakeholders why UX is important
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The Business Model Canvas
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Uses of the Business Model Canvas for Designers
1. Understand business models
2. Show stakeholders why UX is important
3. Use canvases to show “invisible“ logic
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Lean Canvas
http://succinctstories.wordpress.com/2011/02/28/running-lean-%E2%80%93-business-canvas-variant/
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Project Canvas
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Project Canvas
http://teensplusdesign.wordpress.com/2011/03/22/tisdt-customer-journey-canvas/
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Canvanizer.com
http://teensplusdesign.wordpress.com/2011/03/22/tisdt-customer-journey-canvas/
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Project Canvas
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Download the Project Canvas°http://uxtogo.wordpress.com/2012/05/25/the-project-canvas-defining-your-project-visually/
USEEDS° Blog: www.uxtogo.com
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