useeds° :: busines model design for designers, jim kalbach

Business Model Design for Designers

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JIM KALBACH

Principal UX Strategist, USEEDS°

@jameskalbach

www.ExperiencingInformation.comwww.UxToGo.com

www.xing.com/profile/James_Kalbach

Rutgers University, USA

Designing Web Navigation

What is a business model?

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Definitions'The Business Model: Theoretical Roots, Recent Developments, and Future Research', C. Zott, R. Amit, & L.Massa., WP-862, IESE, June, 2010 - revised September 2010 http://www.iese.edu/research/pdfs/DI-0862-E.pdf

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Definition

A business model describesthe rationale of how anorganization creates, delivers,and captures value

Alexander Osterwalder

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Visualizing Business Models

„A business model, from our point of view, consists of four interlocking elements that, taken together, create and deliver value.“

Mark W. Johnson et al., “Reimagine Your Business Model,” HBR (Dec 2008)

Enter:

The Business Model Canvas

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1. Customer Segments

The groups of people or organizations an enterprise aims to reach and serve

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2. Value Proposition

The bundle of products and services that create value for a specific Segment.

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3. Channels

How a company communicates with and reaches its Customer Segments to deliver a Value Proposition

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4. Customer Relationships

The types of relationships a companyestablishes with specific Customer Segments

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5. Revenue Streams

The cash a company generates from each CustomerSegment (costs must be subtracted from revenues tocreate earnings ;)

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6. Key Ressources

The most important assets required to make a business model work

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7. Key Activities

The most important things a company must doto make its business model work

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8. Key Partners

The network of suppliers and partners that makethe business model work

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9. Cost Structure

All costs incurred to operate a business model

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The Business Model Canvas

The nine business model Building Blocks formthe basis for a handy tool, called Business Model Canvas.

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The Business Model Canvas

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logic and emotion in the Business Model Canvas:

Right brain:Emotion value

Left brain:Logic

efficiency FRONT STAGE

BACKSTAGE

BFD,Kalbach

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Business Model Innovation

IBM Global Service, “Business Model Innovation,” Sept 2006

“ While CEOs still believe that product,

service and operational innovations are

important, they feel that innovation

must also be applied to a company’s

very core — to the way it does business

and drives revenue. CEOs deemed these

business model innovations vital to

creating new and differentiating value

for their companies.”

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Creativity & Business

“CEOs identified creativity as the number-one leadership competency of the future…

[But creativity] isn‘t something they learn within their company, and it certainly isn‘t something they are taught in business school. Business schools teach people how to be deliverers, not discoverers.“

Jeff Dyer and Hal Gregersen, The Innovator‘s DNA, Harvard Business Press, 2011

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Prototype Business Models

Business Model Prototyping

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BMC Addresses Problems Of Business Models

Different definitions and understandings

Siloed organizational decision making

The logic is “invisible“

Hard to challenge and change in established orgs

Often not creatively designed

It Doesn‘t Work*

(*for you, most of the time)

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Uses of the Business Model Canvas for Designers

1. Understanding business models

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JARED SPOOL, “Revealing Design Treasures From The Amazon Site“

“Never forget the business.Amazon’s business model is deliberately designed, and the site is designed to fit the business.

You have to start with a great business model to produce a great experience.“

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Uses of the Business Model Canvas for Designers

1. Understanding business models

2. Showing stakeholders why UX is important

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The Business Model Canvas

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Uses of the Business Model Canvas for Designers

1. Understand business models

2. Show stakeholders why UX is important

3. Use canvases to show “invisible“ logic

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Lean Canvas

http://succinctstories.wordpress.com/2011/02/28/running-lean-%E2%80%93-business-canvas-variant/

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Project Canvas

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Project Canvas

http://teensplusdesign.wordpress.com/2011/03/22/tisdt-customer-journey-canvas/

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Project Canvas

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Download the Project Canvas°http://uxtogo.wordpress.com/2012/05/25/the-project-canvas-defining-your-project-visually/

USEEDS° Blog: www.uxtogo.com

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