business model designer

Designer

Reference book:

Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers

Author:Alexander Osterwalder andYves Pigneur

1. Understand what is “Business Model”

2. The 9 Building Blocks of a Business

3. Examples of some common patterns

4. Using the Business Model Canvass

Learning Objectives

Be a Business Model Designer

Example: Book Publishing

1. Through publisher

2. Self-publish

3. Sponsored book

4. Customized book

5. FREE for marketing

6. Publish on demand

7. Co-created book

8. Online book (ebooks)

Why Business Model Design?

Without a Common language

Common Identity, language of work

Common values, attitude & behaviour

Visualize the ideas –

tell the story

Business Model Canvass

The 9 Building Blocks

• Common needs• Common behaviour• Common attributes

No customers

Crap

Complete on Value

Complete on price

Uniq

ue

Valuable

An example….Apple iPod / iTune

General facts: • 161 million members, Revenues US$522 million• Help professionals stay connected to each other• Manage their professional identity

Individual Solutions: • Basic (FREE)• Premium services (Paid)

Corporate Solutions: • Hiring solutions• Marketing & Advertising

3 Key Revenues Streams: • Premium service (20%)• Hiring solutions (50%)• Marketing solutions (30%)

Sales Channels: • Corporate solutions – Online & Field Sales (55%)• Premium solutions - Online (45%)

Competition: • Job board like Monster, JobDB etc• BranchOut (integrated with Facebook)

Financial Year 2011:Total revenues US$522 million

Designing Your

Business Model

Assignments:

1.) Design the business model relating to your project

2.) Each group to present in next week’s class (5 mins)