critical thinking & designing business solutions
TRANSCRIPT
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Private & Confidential – For Exclusive Use Of The Recipient
Agenda
CRITICAL THINKING & DESIGNING BUSINESS SOLUTIONS
I. Roster – who is here?
II. Review of last week’s class
III. Readings + Viewings
IV. Business Model Canvas
-----------------------
I. IKEA
II. Prada
III. H&M
IV. What’s next?
All work contained in this document is property of i.e. Muhanna & co. and is
confidentially being shared with the client listed above.
ANALYSIS COMPLETED BY I.E. MUHANNA & COMPANY.
Design Thinking*Elective Course for Faculty of Sciences, USJ
Spring 2020
Instructor: Michael Muhanna, ASA
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*ALTERNATE TITLE:
Critical Thinking &
Designing Business
Solutions
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* SECOND ALTERNATE TITLE:
How to be a useful
person helping
businesses succeed
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Roster
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Doing well in the course
CRITICAL THINKING & DESIGNING BUSINESS SOLUTIONS
Alaa hassanieh
Anthony Khoury
Celine Balaa
Charbel Rouhana
Christy Zeinoun
Edy Haoui
Elie Asmar Eid
Elsa Hanna
Farouk Ahmad Homsy
Foutina Féghali
Gaelle Farah
Genny basdermejian
Gilbert Abichacra
Ibrahim Fakih
Ibrahim Ghassan oueidat
Karem DAHER
Kenny Bou Saleh
Lynn Mansour
Maha ismail Sabra
Marc Abi chacra
Maya Al Sharabaty
Nastasia Soueidane
Nicolas Awwad
Nour sfeir
Palig Karaminassian
perla hajj
Petra Bou Khalil
Pierre malychev
Rachelle Bou Maroun
Rakme
Ralph Ward
Rozane Fahim Obeid
Siwar Madi
Theresa B. Farah
Wadad Zeidan
Yara Mouchawrab
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Doing well in the course
CRITICAL THINKING & DESIGNING BUSINESS SOLUTIONS
Course page: mikeymu.com/usj
Fill out the class sign up
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Doing well in the course
CRITICAL THINKING & DESIGNING BUSINESS SOLUTIONS
Class 1 – Ford, Toyota, Tesla
Class 2 – IKEA, H&M, Prada
Class 3 – Netflix, Disney, Google, Facebook
Class 4 – Amazon, Microsoft, Apple, HSBC
Class 5 – Marriot, AirBNB
Class 6 – Final Group Presentations during class.
*These may change
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Doing well in the course
CRITICAL THINKING & DESIGNING BUSINESS SOLUTIONS
Four Company Profiles: (40% of grade)
• Each week emailed to me before noon the day of the class
• 750-1000 words
• Analyzing one of the weekly companies.
• Each paper should cover the following four questions:
• What value do they offer the world (or their community)?
• How does this company make money?
• What are their major weaknesses & threats?
• What changes in the business environment should they be concerned
with? How might we want to react to them?
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Review of Last
Week
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Readings
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What is Business?
• Read: Introduction to Business Textbook [50 mb]: Pages 9-34, 37-49
Questions:
• What is Revenue? What are Costs? What is profit?
• What are the five factors of production?
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What is Business?
• Watch: NPR Makes a T-Shirt [All six videos are 15 mins total]
Questions:
• Thoughts on the video series? What did you learn about the production process?
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Review of
last week
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What is Business?
• A business is usually defined as a commercial enterprise
• Some are run by only one person who carry out all of the required
functions. Others employ thousands of people and provide goods and
services to people all over the world
• Each business can be defined or described by:
• its type of ownership,
• the goods produced or services offered,
• the types of jobs provided,
• And/or the functions it performs in a community
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Stakeholders
• Who are the stakeholders? – Anyone who has an interest in the
success of a business
• Customers
• Managers
• Employees
• Owners
• Local Community/Environment
• Suppliers
• Government
• Creditors
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Resources
CRITICAL THINKING & DESIGNING BUSINESS SOLUTIONS
• Let's take a look at three companies to think about their
resources (tangible & intangible)
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Resources
CRITICAL THINKING & DESIGNING BUSINESS SOLUTIONS
• What are their goals as companies?
• What are their resources?
• Who are their stakeholders?
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Influences on Business
Marketing
Objectives and Strategy
Human Resources
Production and
Operations Management
Accounting and Finance
External Factors
Internal Factors
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SWOT Analysis
CRITICAL THINKING & DESIGNING BUSINESS SOLUTIONS
• Evaluates strategic position of the business
• Strengths (MATCH to opportunities)
• Weaknesses (turn into strengths?)
• Opportunities
• Threats (minimise or turn into opportunities)
• RELATIVE to competitors!
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Business
Model
Canvas
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Business Model Canvas
Key Partners Key Activities Value
Propositions
Customer
Relationships
Customer
Segments
Key Resources Channels
Cost Structure Revenue Streams
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Business Model CanvasKey Partners
Who are our Key Partners? Who are
our key suppliers? Which Key
Resources are we acquiring from
partners? Which Key Activities do
partners perform?
MOTIVATIONS FOR
PARTNERSHIPS:
Optimization and economy,
Reduction of risk and uncertainty,
Acquisition of particular resources
and activities
Key Activities
What Key Activities do our Value
Propositions require? Our
Distribution Channels? Customer
Relationships? Revenue streams?
CATEGORIES:
Production, Problem Solving,
Platform/Network
Value Propositions
What value do we deliver to the
customer? Which one of our
customer’s problems are we helping
to solve? What bundles of products
and services are we offering to each
Customer Segment? Which
customer needs are we satisfying?
CHARACTERISTICS:
Newness, Performance,
Customization, “Getting the Job
Done”, Design, Brand/Status, Price,
Cost Reduction, Risk Reduction,
Accessibility, Convenience/Usability
Customer Relationships
What type of relationship does each
of our Customer Segments expect
us to establish and maintain with
them? Which ones have we
established? How are they
integrated with the rest of our
business model? How costly are
they?
Customer Segments
For whom are we creating value?
Who are our most important
customers? Is our customer base a
Mass Market, Niche Market,
Segmented, Diversified, Multi-sided
Platform
Key Resources
What Key Resources do our Value
Propositions require? Our
Distribution Channels? Customer
Relationships Revenue Streams?
TYPES OF RESOURCES:
Physical, Intellectual (brand patents,
copyrights, data), Human, Financial
Channels
Through which Channels do our
Customer Segments want to be
reached? How are we reaching
them now? How are our Channels
integrated? Which ones work best?
Which ones are most cost-efficient?
How are we integrating them with
customer routines?
Cost Structure
What are the most important costs inherent in our business model? Which Key
Resources are most expensive? Which Key Activities are most expensive?
IS YOUR BUSINESS MORE: Cost Driven (leanest cost structure, low price value
proposition, maximum automation, extensive outsourcing), Value Driven (focused on
value creation, premium value proposition).
SAMPLE CHARACTERISTICS: Fixed Costs (salaries, rents, utilities), Variable
costs, Economies of scale, Economies of scope
Revenue Streams
For what value are our customers really willing to pay? For what do they currently
pay? How are they currently paying? How would they prefer to pay? How much
does each Revenue Stream contribute to overall revenues?
TYPES: Asset sale, Usage fee, Subscription Fees, Lending/Renting/Leasing,
Licensing, Brokerage fees, Advertising
FIXED PRICING: List Price, Product feature dependent, Customer segment
dependent, Volume dependent
DYNAMIC PRICING: Negotiation (bargaining), Yield Management, Real-time-Market
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Private & Confidential – For Exclusive Use Of The Recipient
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Private & Confidential – For Exclusive Use Of The Recipient
IKEA
H&M
PRADA
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Private & Confidential – For Exclusive Use Of The Recipient
IKEAKey Partners
Who are our Key Partners? Who are
our key suppliers? Which Key
Resources are we acquiring from
partners? Which Key Activities do
partners perform?
MOTIVATIONS FOR
PARTNERSHIPS:
Optimization and economy,
Reduction of risk and uncertainty,
Acquisition of particular resources
and activities
Key Activities
What Key Activities do our Value
Propositions require? Our
Distribution Channels? Customer
Relationships? Revenue streams?
CATEGORIES:
Production, Problem Solving,
Platform/Network
Value Propositions
What value do we deliver to the
customer? Which one of our
customer’s problems are we helping
to solve? What bundles of products
and services are we offering to each
Customer Segment? Which
customer needs are we satisfying?
CHARACTERISTICS:
Newness, Performance,
Customization, “Getting the Job
Done”, Design, Brand/Status, Price,
Cost Reduction, Risk Reduction,
Accessibility, Convenience/Usability
Customer Relationships
What type of relationship does each
of our Customer Segments expect
us to establish and maintain with
them? Which ones have we
established? How are they
integrated with the rest of our
business model? How costly are
they?
Customer Segments
For whom are we creating value?
Who are our most important
customers? Is our customer base a
Mass Market, Niche Market,
Segmented, Diversified, Multi-sided
Platform
Key Resources
What Key Resources do our Value
Propositions require? Our
Distribution Channels? Customer
Relationships Revenue Streams?
TYPES OF RESOURCES:
Physical, Intellectual (brand patents,
copyrights, data), Human, Financial
Channels
Through which Channels do our
Customer Segments want to be
reached? How are we reaching
them now? How are our Channels
integrated? Which ones work best?
Which ones are most cost-efficient?
How are we integrating them with
customer routines?
Cost Structure
What are the most important costs inherent in our business model? Which Key
Resources are most expensive? Which Key Activities are most expensive?
IS YOUR BUSINESS MORE: Cost Driven (leanest cost structure, low price value
proposition, maximum automation, extensive outsourcing), Value Driven (focused on
value creation, premium value proposition).
SAMPLE CHARACTERISTICS: Fixed Costs (salaries, rents, utilities), Variable
costs, Economies of scale, Economies of scope
Revenue Streams
For what value are our customers really willing to pay? For what do they currently
pay? How are they currently paying? How would they prefer to pay? How much
does each Revenue Stream contribute to overall revenues?
TYPES: Asset sale, Usage fee, Subscription Fees, Lending/Renting/Leasing,
Licensing, Brokerage fees, Advertising
FIXED PRICING: List Price, Product feature dependent, Customer segment
dependent, Volume dependent
DYNAMIC PRICING: Negotiation (bargaining), Yield Management, Real-time-Market
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Private & Confidential – For Exclusive Use Of The Recipient
H&MKey Partners
Who are our Key Partners? Who are
our key suppliers? Which Key
Resources are we acquiring from
partners? Which Key Activities do
partners perform?
MOTIVATIONS FOR
PARTNERSHIPS:
Optimization and economy,
Reduction of risk and uncertainty,
Acquisition of particular resources
and activities
Key Activities
What Key Activities do our Value
Propositions require? Our
Distribution Channels? Customer
Relationships? Revenue streams?
CATEGORIES:
Production, Problem Solving,
Platform/Network
Value Propositions
What value do we deliver to the
customer? Which one of our
customer’s problems are we helping
to solve? What bundles of products
and services are we offering to each
Customer Segment? Which
customer needs are we satisfying?
CHARACTERISTICS:
Newness, Performance,
Customization, “Getting the Job
Done”, Design, Brand/Status, Price,
Cost Reduction, Risk Reduction,
Accessibility, Convenience/Usability
Customer Relationships
What type of relationship does each
of our Customer Segments expect
us to establish and maintain with
them? Which ones have we
established? How are they
integrated with the rest of our
business model? How costly are
they?
Customer Segments
For whom are we creating value?
Who are our most important
customers? Is our customer base a
Mass Market, Niche Market,
Segmented, Diversified, Multi-sided
Platform
Key Resources
What Key Resources do our Value
Propositions require? Our
Distribution Channels? Customer
Relationships Revenue Streams?
TYPES OF RESOURCES:
Physical, Intellectual (brand patents,
copyrights, data), Human, Financial
Channels
Through which Channels do our
Customer Segments want to be
reached? How are we reaching
them now? How are our Channels
integrated? Which ones work best?
Which ones are most cost-efficient?
How are we integrating them with
customer routines?
Cost Structure
What are the most important costs inherent in our business model? Which Key
Resources are most expensive? Which Key Activities are most expensive?
IS YOUR BUSINESS MORE: Cost Driven (leanest cost structure, low price value
proposition, maximum automation, extensive outsourcing), Value Driven (focused on
value creation, premium value proposition).
SAMPLE CHARACTERISTICS: Fixed Costs (salaries, rents, utilities), Variable
costs, Economies of scale, Economies of scope
Revenue Streams
For what value are our customers really willing to pay? For what do they currently
pay? How are they currently paying? How would they prefer to pay? How much
does each Revenue Stream contribute to overall revenues?
TYPES: Asset sale, Usage fee, Subscription Fees, Lending/Renting/Leasing,
Licensing, Brokerage fees, Advertising
FIXED PRICING: List Price, Product feature dependent, Customer segment
dependent, Volume dependent
DYNAMIC PRICING: Negotiation (bargaining), Yield Management, Real-time-Market
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Private & Confidential – For Exclusive Use Of The Recipient
PradaKey Partners
Who are our Key Partners? Who are
our key suppliers? Which Key
Resources are we acquiring from
partners? Which Key Activities do
partners perform?
MOTIVATIONS FOR
PARTNERSHIPS:
Optimization and economy,
Reduction of risk and uncertainty,
Acquisition of particular resources
and activities
Key Activities
What Key Activities do our Value
Propositions require? Our
Distribution Channels? Customer
Relationships? Revenue streams?
CATEGORIES:
Production, Problem Solving,
Platform/Network
Value Propositions
What value do we deliver to the
customer? Which one of our
customer’s problems are we helping
to solve? What bundles of products
and services are we offering to each
Customer Segment? Which
customer needs are we satisfying?
CHARACTERISTICS:
Newness, Performance,
Customization, “Getting the Job
Done”, Design, Brand/Status, Price,
Cost Reduction, Risk Reduction,
Accessibility, Convenience/Usability
Customer Relationships
What type of relationship does each
of our Customer Segments expect
us to establish and maintain with
them? Which ones have we
established? How are they
integrated with the rest of our
business model? How costly are
they?
Customer Segments
For whom are we creating value?
Who are our most important
customers? Is our customer base a
Mass Market, Niche Market,
Segmented, Diversified, Multi-sided
Platform
Key Resources
What Key Resources do our Value
Propositions require? Our
Distribution Channels? Customer
Relationships Revenue Streams?
TYPES OF RESOURCES:
Physical, Intellectual (brand patents,
copyrights, data), Human, Financial
Channels
Through which Channels do our
Customer Segments want to be
reached? How are we reaching
them now? How are our Channels
integrated? Which ones work best?
Which ones are most cost-efficient?
How are we integrating them with
customer routines?
Cost Structure
What are the most important costs inherent in our business model? Which Key
Resources are most expensive? Which Key Activities are most expensive?
IS YOUR BUSINESS MORE: Cost Driven (leanest cost structure, low price value
proposition, maximum automation, extensive outsourcing), Value Driven (focused on
value creation, premium value proposition).
SAMPLE CHARACTERISTICS: Fixed Costs (salaries, rents, utilities), Variable
costs, Economies of scale, Economies of scope
Revenue Streams
For what value are our customers really willing to pay? For what do they currently
pay? How are they currently paying? How would they prefer to pay? How much
does each Revenue Stream contribute to overall revenues?
TYPES: Asset sale, Usage fee, Subscription Fees, Lending/Renting/Leasing,
Licensing, Brokerage fees, Advertising
FIXED PRICING: List Price, Product feature dependent, Customer segment
dependent, Volume dependent
DYNAMIC PRICING: Negotiation (bargaining), Yield Management, Real-time-Market
30
Private & Confidential – For Exclusive Use Of The Recipient
i.e. Muhanna & co.
muhanna.com
+961 1 371 611
Thank YouMichael Muhanna