Tutorial Business Model Kit - by @boardofinno

The Tutorial

BUSINESS MODEL KIT

How to use the Business Model Blocks?

BUSINESS MODEL KIT

From here... ...to here.

How to use the Business Model Blocks?

BUSINESS MODEL KIT

Open the kit

How to use the Business Model Blocks?

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BUSINESS MODEL KIT

These are the Stakeholders

How to use the Business Model Blocks?

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BUSINESS MODEL KIT

... & these the items they transfer

How to use the Business Model Blocks?

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BUSINESS MODEL KIT

Simple instructions.

Whiteboard marker to write on the blocks.

Stakeholders

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Your OrganizationThis is where your business model starts to get shape. Place this block in the center and build your model around it.

Stakeholders

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Other CompaniesThe second most important block is the company. In most models this will be the actor that offers a product or service.

Stakeholders

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SuppliersThis icon can also be used for service suppliers like web or marketing agencies.

Stakeholders

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ConsumersThe ones that receive your organization’s value proposition and give something in return. Use one block per customer segment.

Stakeholders

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GovernmentSome business models have links to governmental institutions. Use this block if relevant.

Stakeholders

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Non-profitIf unions or charity organizations are relevant you can add this player to the system.

Transfer Items

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ProductThe first, most straightforward offer to clients is an actual product, ranging from basic commodities up to finished goods. A BMW car is one example, but today also digital products can be included.

Transfer Items

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ServiceOne way to upgrade your business model is to offer a service next to the product. BMW, in this case, not only sells cars but includes maintenance and other services around the product.

Transfer Items

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MoneyThe typical currency that clients pay with, is money – which is critical to company’s revenue models. The building blocks make a differentiation between two types of money. This icon represents the normal value of a good, including profit.

Transfer Items

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Less money ( Micro payments )This second icon represents money as well, but less than the normal amount covering cost and profit of what is offered. Usually this transaction implies that other revenue streams are added to the traditional business model.

Transfer Items

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ExposureActive exposure or attention is the next step in the evolution of currency. For some businesses the spreading of their ideas and brand values becomes more important than the immediate return in money. One example is a free newspaper that seeks for the attention of as many readers as possible to become more attractive to advertisers.

Transfer Items

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RightsOwnership rights, IP and even the right to emit CO2 are items that stakeholders can exchange between each other. This must be the most abstract block but it is necessary to illustrate the innovativeness of several models.

Transfer Items

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ReputationToday, the next upgrade to reputation can only be found in a few sectors. In these cases, ‘reputation’ selling can be described as the most essential brand experience.

Transfer Items

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CreditsVirtual credit systems are on the rise. Therefore we have to add them to the business model blocks as well. Loyalty cards and similar are also covered by this block.

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Transfer Items

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ExperienceThe two concepts of product and service are commonly applied throughout our economy. In the last years, several companies have moved a step further by offering an experience to customers. BMW does not sell a car with a service in this case, but a driving experience.

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Transfer Items

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DataInformation is one of the key items that is being transferred in modern business models. Depending on the context a mixture of ‘information’ related items (content, data, knowledge, articles, etc.) are being used in relation to this block.

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How do you start?

Start by placing your organization in the center.

Step 1.

How do you start?

Include all relevant stakeholders

Step 2.

How do you start?

Draw relationships and add the items they transfer

Step 3.

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How do you start?

Innovate your business model by modifying stakeholders and transaction items.

Step 4.

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How do you start?

Innovate your business model by modifying stakeholders and transaction items.

Step 4.

Need inspiration?Check the Business Model Patterns

and our presentation 10 Business Models That Rocked

iTunes Business Model

Step 1. Put your organization in the center

IncIncHQHQ

iTunes

iTunes Business Model

Music Fans

Step 2. Add other stakeholders

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iTunes

Step 3. Add relationships...

iTunes Business Model

Music Fans

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iTunes

Step 3. ... & transaction items

iTunes Business Model

Music Fans

1 Single

Icon used: Product

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iTunes

Step 3. ... & transaction items

Icon used: Money

iTunes Business Model

Music Fans

1 Single

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€ 0.99

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iTunes

iTunes Business Model

Music Fans

1 Single

5

€ 0.99

Product for Money

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iTunes

Now, let’s make it a bit more complex. Using the example of Spotify instead of iTunes.

Spotify Business Model

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Spotify

We add the stakeholders, still music fans.

Spotify Business Model

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Spotify Music Fans

But instead of a product, Spotify offers a service.

Spotify Business Model

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Spotify Music Fans

Stream

Music fans can stream all the music they want for free.

We add another customer sector, one that is willing to pay for a better service.

Spotify Business Model

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Spotify Music Fans

Stream

Music Fans

Spotify offers streaming from mobile phones...

Spotify Business Model

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Spotify Music Fans

Stream

Music Fans

Mobile

... in exchange for a monthly subscription.

Spotify Business Model

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Spotify Music Fans

Stream

Music Fans

Mobile

5

€ 9.99 p/m

Spotify Business Model

IncIncHQHQ

Spotify Music Fans

Stream

Music Fans

Mobile

5

€ 9.99 p/m

Freemium Model

It works for simple and complex business models

Try it.Share your findings on Twitter or on our Linked In Group.

If you do not have a kit yet, you can get one here.