41631 lecture 1 pt3 bmc

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Welcome to 41631

Business Model CanvasThomas J. Howardthow@mek.dtu.dk

Unless otherwise stated, this material is under a Creative Commons 3.0 Attribution–Share-Alike licence and can be freely modified, used and redistributed but only under the same licence and if including the following statement:

“Original material by Thomas J. Howard & Jakob Bejbro for 41631: Innovation in Product Development Department of Mechanical Engineering, Technical University of Denmark”

2013Original material by Thomas J. Howard & Jakob Bejbro for 41631: Innovation in Product Development Department of Mechanical Engineering, Technical University of Denmark

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Business Model Canvas

Business Model GenerationBy Alexander Osterwalder & Yves PigneurISBN13: 978-2-8399-0580-0

http://upload.wikimedia.org/wikipedia/commons/1/10/Business_Model_Canvas.png

2013Original material by Thomas J. Howard & Jakob Bejbro for 41631: Innovation in Product Development Department of Mechanical Engineering, Technical University of Denmark

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2013Original material by Thomas J. Howard & Jakob Bejbro for 41631: Innovation in Product Development Department of Mechanical Engineering, Technical University of Denmark

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Customer Segments

• Mass market

• Niche market

• Segmented

• Diversified

• Multisided platforms

?

2013Original material by Thomas J. Howard & Jakob Bejbro for 41631: Innovation in Product Development Department of Mechanical Engineering, Technical University of Denmark

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Value Propositions

• Newness

• Performance

• Customisation

• “Get the job done”

• Styling

• Brand/status

• Price

• Cost reduction

• Risk reduction

• Accessibility

• Convenience/usability ?

2013Original material by Thomas J. Howard & Jakob Bejbro for 41631: Innovation in Product Development Department of Mechanical Engineering, Technical University of Denmark

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Awareness

Channel Types

• Sales force

• Web sales

• Own stores

• Partner stores

• Wholesaler

Awareness Evolution Purchase Delivery After sales

Channel Phases

?

2013Original material by Thomas J. Howard & Jakob Bejbro for 41631: Innovation in Product Development Department of Mechanical Engineering, Technical University of Denmark

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Awareness

Customer Relationships

• Personal assistance

• Dedicated personal assistance

• Self-service

• Automated service

• Communities

• Co-creation

?

2013Original material by Thomas J. Howard & Jakob Bejbro for 41631: Innovation in Product Development Department of Mechanical Engineering, Technical University of Denmark

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Awareness

Revenue Streams

• Asset sales

• Usage fee

• Subscription fee

• Lending/Renting/Leasing

• Licensing

• Brokerage fees

• Advertising

?

2013Original material by Thomas J. Howard & Jakob Bejbro for 41631: Innovation in Product Development Department of Mechanical Engineering, Technical University of Denmark

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Awareness

Key resources

• Physical/material

• Intellectual

• Human

• Financial

?

2013Original material by Thomas J. Howard & Jakob Bejbro for 41631: Innovation in Product Development Department of Mechanical Engineering, Technical University of Denmark

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Awareness

Key activities

• Production

• Problem solving

• Platform/network

?

2013Original material by Thomas J. Howard & Jakob Bejbro for 41631: Innovation in Product Development Department of Mechanical Engineering, Technical University of Denmark

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Awareness

Key partners

• Optimisation & economies of scale

• Reduction of risk and uncertainty

• Acquisition of particular resources and activities

?

2013Original material by Thomas J. Howard & Jakob Bejbro for 41631: Innovation in Product Development Department of Mechanical Engineering, Technical University of Denmark

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Awareness

Cost structure

• Cost driven

• Value driven

• Fixed costs

• Variable costs

• Economies of scale

• Economies of scope ?

2013Original material by Thomas J. Howard & Jakob Bejbro for 41631: Innovation in Product Development Department of Mechanical Engineering, Technical University of Denmark

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ExerciseIn your teams, try to draw up the Spotify business model...

how does it differ from conventional retail?

2013Original material by Thomas J. Howard & Jakob Bejbro for 41631: Innovation in Product Development Department of Mechanical Engineering, Technical University of Denmark

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Value Propositions

• Newness

• Performance

• Customisation

• “Get the job done”

• Styling

• Brand/status

• Price

• Cost reduction

• Risk reduction

• Accessibility

• Convenience/usability

What is the value proposition of your technology?

2013Original material by Thomas J. Howard & Jakob Bejbro for 41631: Innovation in Product Development Department of Mechanical Engineering, Technical University of Denmark

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Figure out what parameters your technology outperforms other technology

Then work out how this may be of value to a user or customer...

...Now the CBS students can be involved!

Now lets try to identify some customer segments that will really benefit from the value proposition.

2013Original material by Thomas J. Howard & Jakob Bejbro for 41631: Innovation in Product Development Department of Mechanical Engineering, Technical University of Denmark

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