Knowledge Transfer | Accelerating Innovation V. Nilsen Introduction to Business Models Vetle Nilsen

Knowledge Transfer | Accelerating Innovation V. Nilsen

Introduction to Business ModelsVetle Nilsen

Knowledge Transfer | Accelerating Innovation V. Nilsen

Entrepreneurship Meet-Up

Provide CERN people interested in innovation and entrepreneurship with an

arena for discussion and learning

Knowledge Transfer | Accelerating Innovation V. Nilsen

Upcoming topics

Meet-up #4: Topic TBA, May 13th

Meet-up #5: Open Presentations, May 27th

Meet-up #6: CTI training and support for Entrepreneurs,Björn Ingell, June 10th

Knowledge Transfer | Accelerating Innovation V. Nilsen

“We should have a meeting room for initial discussions,

then have a beer afterwards”- Participant

Knowledge Transfer | Accelerating Innovation V. Nilsen

KT Half Day TrainingTopics• Introduction to Intellectual Property• Basics of Contracts for KT• Entrepreneurship at CERN• Examples of Knowledge Transfer Projects

Next Session 29th of May 08:30-12:30

Sign up in the training catalogue

Knowledge Transfer | Accelerating Innovation V. Nilsen

Topics

IP

CERN te

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Busines

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Busines

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Angel In

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Open

Inno

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Team

Building

Prod

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All of t

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1

2

3

4

5

6

7

8

9

Knowledge Transfer | Accelerating Innovation V. Nilsen?What is the only necessary condition for a business

Knowledge Transfer | Accelerating Innovation V. Nilsen

Business Models

Knowledge Transfer | Accelerating Innovation V. Nilsen

Business model is a buzzword that everybody used (or overused) during the dotcom boom.

In fact, poorly thought out business models were the downfall of many dotcoms.

However, the business model dates back to the earliest days of business; it merely describes the way in which a company makes money.

www.investopedia.com

Knowledge Transfer | Accelerating Innovation V. Nilsen

Knowledge Transfer | Accelerating Innovation V. Nilsen

Key ActivitiesKey Partnership

Key Resources

Cost Structures Revenue Streams

Value Propositions Customer Relationships

Channels

Customer Segments

Source: Business Model Generation, A. Osterwalder

Knowledge Transfer | Accelerating Innovation V. Nilsen

Value PropositionWhat distinguish your business from the competitor? What is the value you provide the customer?• Newness• Performance • Customization• "getting the job done” • Design • Brand/status • Price• Risk reduction• Convenience/usability

Knowledge Transfer | Accelerating Innovation V. Nilsen

Value Proposition

Knowledge Transfer | Accelerating Innovation V. Nilsen

Customer SegmentsWho are your main customers?• Mass Market• Niche • Segments• Multi-Sided

Knowledge Transfer | Accelerating Innovation V. Nilsen

ChannelsHow do you distribute the value proposition to your customers? • Online• Retail Stores• Partners• App

Knowledge Transfer | Accelerating Innovation V. Nilsen

Customer RelationshipWhat is the relationship the business have with its customers?• Personal Assistance• Dedicated Personal

Assistance• Self Service• Automated Services• Communities• Co-creation

Knowledge Transfer | Accelerating Innovation V. Nilsen

Key ActivitiesThe most important activities in executing a company's value proposition

Knowledge Transfer | Accelerating Innovation V. Nilsen

Key ResourcesThe resources that are necessary to create value for the customer• Human• Financial• Physical • Intellectual

Knowledge Transfer | Accelerating Innovation V. Nilsen

Key PartnersWhich partners are necessary for making the business work?

Knowledge Transfer | Accelerating Innovation V. Nilsen

Revenue StreamHow the company makes income• Selling a product• Usage Fee• Subscription• Renting/Leasing• Licensing• Brokerage Fees• Advertising

Knowledge Transfer | Accelerating Innovation V. Nilsen

Cost StructureWhat are the cost associated with running the business and how does it scale with sales• Fixed Costs • Variable Costs • Economies of Scale• Economies of Scope

• Cost-Driven vs. Value-Driven

Knowledge Transfer | Accelerating Innovation V. Nilsen

Knowledge Transfer | Accelerating Innovation V. Nilsen

Key ActivitiesKey Partnership

Key Resources

Cost Structures Revenue Streams

Value Propositions Customer Relationships

Channels

Customer Segments

Knowledge Transfer | Accelerating Innovation V. Nilsen

Key ActivitiesKey Partnership

Key Resources

Cost Structures Revenue Streams

Value Propositions Customer Relationships

Channels

Customer Segments

Knowledge Transfer | Accelerating Innovation V. Nilsen

Knowledge Transfer | Accelerating Innovation V. Nilsen

Exercise

Knowledge Transfer | Accelerating Innovation V. Nilsen

Knowledge Transfer | Accelerating Innovation V. Nilsen

Key ActivitiesKey Partnership

Key Resources

Cost Structures Revenue Streams

Value Propositions Customer Relationships

Channels

Customer Segments

Content owners

Content Providers

Distribution platform

Easy access to content

when you want it

Online

People who binge watch

tv shows

Digital platform

SubscriptionRoyalties Salaries Bandwidth

Knowledge Transfer | Accelerating Innovation V. Nilsen

Key ActivitiesKey Partnership

Key Resources

Cost Structures Revenue Streams

Value Propositions Customer Relationships

Channels

Customer Segments

Travel networks

Platform maintenance

Brand

Cheap way of getting an unique

travel experience

Online

Online community

Travelers

% FeePlatform

costs

Home owners

Phone support

Insurance

Platform

Customer support

Payment providers

Rent out your extra

space

Knowledge Transfer | Accelerating Innovation V. Nilsen

Key ActivitiesKey Partnership

Key Resources

Cost Structures Revenue Streams

Value Propositions Customer Relationships

Channels

Customer Segments

Payment providers

Marketing

Platform development

Support

Brand

Trust

Platform

Exchange money from

one currency to another at

better rates

Online support

Web platform

People living/workin

g abroad

Frequent users of

exchange services

% FeePlatform development Support Insurances

Knowledge Transfer | Accelerating Innovation V. Nilsen

Key ActivitiesKey Partnership

Key Resources

Cost Structures Revenue Streams

Value Propositions Customer Relationships

Channels

Customer Segments

Publishers

Maintaining platform

Warehouses

Price

Online Platform

Amazon.com

SalesPlatform, Logistics, Marketing, Physical Storage,

Suppliers and manufacturers

Network of sellers

Logistics

Marketing

Brand

Platform

Selection

Convenience/Speed

Mass market

Online and phone

support

Commission on sales

Subscription

Knowledge Transfer | Accelerating Innovation V. Nilsen

Key ActivitiesKey Partnership

Key Resources

Cost Structures Revenue Streams

Value Propositions Customer Relationships

Channels

Customer Segments

Content Providers

Advertising sales and analytics

Users

Brand

Platform

Platform development and

maintenance Connect with friends, share

content …

Reach a specific target group with your advertising

Facebook adds, Facebook pages

Online Internet Users

Advertisers and marketers

Small businesses

Add Revenue

Bandwidth Sales

Platform

Knowledge Transfer | Accelerating Innovation V. Nilsen

Key ActivitiesKey Partnership

Key Resources

Cost Structures Revenue Streams

Value Propositions Customer Relationships

Channels

Customer Segments

Suppliers

Appliance producers

Production

Logistics

Sales

Price

Simplicity

Customization

Convenience

Brand

Physical Resources

Communities

Self-service

IKEA

Web sales

Individuals

Businesses

Product sales

ProductionMarketing and sales

Knowledge Transfer | Accelerating Innovation V. Nilsen

Basic Models

• Brokerage• Bundling• Crowdsourcing• Disintermediation• Freemium• Leasing• Low-touch

• Pay as you go• Razor/blades• Product to service• Standardization• Subscription• Negative operating

cycle

Source: Seizing the white space, Mark Johnson

Knowledge Transfer | Accelerating Innovation V. Nilsen

Knowledge Transfer | Accelerating Innovation V. Nilsen

Key ActivitiesKey Partnership

Key Resources

Cost Structures Revenue Streams

Value Propositions Customer Relationships

Channels

Customer Segments

ManufacturersRetailers

Brand Patents

People who shave

Clean Shave

Simple

Razor Handle

Blades

Built-in “lock-in”

Retail

MarketingR&DLogistics

MarketingManufacturingLogistics, R&D Blades

Razor Handle

Knowledge Transfer | Accelerating Innovation V. Nilsen

Key ActivitiesKey Partnership

Key Resources

Cost Structures Revenue Streams

Value Propositions Customer Relationships

Channels

Customer Segments

Knowledge Transfer | Accelerating Innovation V. Nilsen

Knowledge Transfer | Accelerating Innovation V. Nilsen

Building your own business models

Knowledge Transfer | Accelerating Innovation V. Nilsen

Key ActivitiesKey Partnership

Key Resources

Cost Structures Revenue Streams

Value Propositions Customer Relationships

Channels

Customer Segments

Knowledge Transfer | Accelerating Innovation V. Nilsen

Source / Learn more

Knowledge Transfer | Accelerating Innovation V. Nilsen

Feel free to contact me:Vetle.Nilsen@cern.ch

cern.ch/knowledgetransfer