how to explore business models

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: syntropylab@gmail.comTwitter: @yo5h_a

The bullet points by Tony Thomashttp://medialoot.com/item/listicons-arrows-bullets-webfont/

Thank you very much to join!