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How to explore business models
Tsuyoshi AmanoCentral Saint Martins
03/11/2016
Contents1. Hands-on session: Marshmallow Challenge
2. What are business models?3. Why business models?4. Why not business plans?5. A business model tool: Business model canvas6. Examples of business model archetypes
7. Hands-on session: Visualise your business with business model canvas
8. Quick recap
Hands-on session:The marshmallow challenge
The instruction of the marshmallow challenge
http://www.tomwujec.com/design-projects/marshmallow-challenge/
What are business models?
What is business models?
Value
CREATE
DELIVERCAPTURE
A business model shows:• How to create the value?• How to deliver the value?• How to capture the value?
But, why business models now?
But, why business models now?
Value
CREATE
DELIVERCAPTURE
Too much focus on creating values (Product innovations)
But, why business models now?
Value
CREATE
DELIVERCAPTURE
Too much focus on delivering values (Marketing innovations)
But, why business models now?
Value
CREATE
DELIVERCAPTURE
Just ripping off?
But, why business models now?
Value
CREATE
DELIVERCAPTURE
The value of using the business model approach is the holistic perspective
Why not business plan?
Why not business plan?It takes too much time to writePeople don’t look back the business plan once it’s acceptedIt doesn’t work after the first contact with real customers
Why not business plan?
Value
CREATE
DELIVERCAPTURE
Also, business plan based approaches are most likely to focus on capturing values.
Why not business plan?
Business plans are good to scale a business but not find new opportunities.
A business model tool:Business Model Canvas
A framework of business models
Value
CREATE
DELIVERCAPTURE
CREATE DELIVER
CAPTURE
VALUE
A case of Japanese manufacturers
Hi-quality traditional Japanese crafts Hi-end
retailers
Distributors / Sales agents
Product sales
Craftsmen skills
Distributors
Production Dedicated customer service
Production cost
Export fee
Sales agent fee
Hi-quality traditional Japanese crafts Hi-end
retailers
Distributors / Sales agents
Product sales
Craftsmen skills
Distributors
Production Dedicated customer service
Distribution model
Production cost
Export fee
Sales agent fee
Applying business model archetypes
Examples of business model archetypesDirect salesSubscription (Leasing)MarketplaceCrowdsourcingBlade and razor (printer and ink)
For more examples of business model archetypes, see:Board of Innovation (2010) Business & Revenue Model Examples [Internet]. Available from: <http://www.boardofinnovation.com/business-revenue-model-examples/> [Accessed 3 November 2016].
Johnson, M.W. (2010) Seizing the white space. Boston, Mass., Harvard Business Press.
Gassmann, O., Frankenberger, K. & Csik, M. (2014) The Business Model Navigator: 55 Models That Will Revolutionise Your Business. 01 edition. Harlow, England ; New York, FT Publishing International.
Direct sales
Direct Sales
Hi-quality traditional Japanese crafts Hi-end
consumers
Direct sales online
Product sales
Production cost
Export fee
Craftsmen skills
Warehouse providers
Production
Online ads
PR companies
Warehouse cost
PR cost
Online supportOnline
marketing
Subscription (Leasing)
Subscription fee
Rental service of hi-quality traditional Japanese crafts
Japanese restaurant owners
Distributors / Sales agents
Subscription / Monthly leasing fee
Craftsmen skills
Distributors
Production Dedicated customer service
Production cost
Export fee
Sales agent fee
Insurance companies
Insurance fee
Marketplace
BuyersSellers Marketplace
A market place specialised for Japanese crafts Hi-end
retailers
Online platform
Commission
Sellers(Other Japanese craftsmen)
Online customer service
Online operation cost
The community of Japanese craftsmen
Platform management
Community management
Crowdsourcing
Community
Community members
Hi-quality traditional Japanese crafts Hi-end
retailers
Distributors / Sales agents
Product sales
Craftsmen skills
Distributors
Production Dedicated customer service
Production cost
Export fee
Sales agent fee
Crowdsourced designers
The community of designers
Blade and razor (printer and ink)
Profit from supplies
Japanese lifestyle experience Hi-end
retailersDistributors / Sales agents
Product sales with low profit
Craftsmen skills
Distributors
Production
Dedicated customer service
Production cost
Export fee
Sales agent feeSales of Japanese Tea
Hi-end consumers
Direct sales online
Online ads
PR companies
PR cost
Online support
Key points of using business model canvas
Avoid exactly visualising a “right” business model (Simplicity and nimbleness is important)Explore possible business models on paper without risks
Hands-on session:Visualise your business model
Activity (20 mins)
Fill in the nine building blocks to visualise your business modelPut a name of the model
Modify your business model to explore by using the examples (if you come up with a new model other than the examples, try to visualise it instead!)
Show your business model to other people and get feedback
Now, you’ve got your business models
It’s time to get out of building to see if your business model(s) actually works.
Also, thank you for Julia @juliagogacookePlease keep in touch via:E-mail: [email protected]: @yo5h_a
The bullet points by Tony Thomashttp://medialoot.com/item/listicons-arrows-bullets-webfont/
Thank you very much to join!
