1
Powerblocks = LEGOs + lighting
• Modular lighting
– Build your own / customize
– Change / reconfigure at will
• Authentic to Max
– Home lacks great lighting
– Moving a lot
– Like building stuff
Lighting head(s)
Neck pieces
Base(s)
2
The Blockheads
Max
Ben
Nick
Ale
3
Version 1 -- 1/11
Powerblocks Business Model
Key Partners
Outsourced:
mfg,
fulfillment,
support
Distributors:
Int. Designer
Retailers
Key Activities
Design
Marketing
Cust.
Experience
Key Resources
Design IP
Brand
Int. designers
Cost Structure
Value Propositions
Demand Creation
Acquisition /
Retention
Self-Service
Modular
lighting/power:
Customization
Flexibility
Re-usability
Convenience
Smart-home
integration
Price
Channels
Wholesale to
Interior
designers
Customer Segments
1. High-end
(wealthy)
home owners
2. Office
build-outs
3. Low-end
(IKEA mkt),
dorm students
Revenue Streams
Value-Driven
( = high end)
Asset Sale
4
Version 1 -- 1/11
Powerblocks Business Model
Key Partners
Outsourced:
mfg,
fulfillment,
support
Distributors:
Int. Designer
Retailers
Key Activities
Design
Marketing
Cust.
Experience
Key Resources
Design IP
Brand
Int. designers
Cost Structure
Value Propositions
Demand Creation
Acquisition /
Retention
Self-Service
Modular
lighting/power:
Customization
Flexibility
Re-usability
Convenience
Smart-home
integration
Price
Channels
Wholesale to
Interior
designers
Customer Segments
1. High-end
(wealthy)
home owners
2. Office
build-outs
3. Low-end
(IKEA mkt),
dorm students
Revenue Streams
Value-Driven
( = high end)
Asset Sale
5
Sneaking Into Dorms
6
Version 1 -- 1/11
Powerblocks Business Model
Key Partners
Outsourced:
mfg,
fulfillment,
support
Distributors:
Int. Designer
Retailers
Key Activities
Design
Marketing
Cust.
Experience
Key Resources
Design IP
Brand
Int. designers
Cost Structure
Value Propositions
Demand Creation
Acquisition /
Retention
Self-Service
Modular
lighting/power:
Customization
Flexibility
Re-usability
Convenience
Smart-home
integration
Price
Channels
Wholesale to
Interior
designers
Customer Segments
1. High-end
(wealthy)
home owners
2. Office
build-outs
3. Low-end
(IKEA mkt),
dorm students
4. Mid-range
home owners
Revenue Streams
Value-Driven
( = high end)
Asset Sale
7
Version 2 -- 1/18
Powerblocks Business Model
Key Partners
Outsourced:
mfg,
fulfillment,
support
Distributors:
Int. Designer
Retailers
Key Activities
Value Propositions
Demand Creation
Design
Marketing
Cust.
Experience
Acquisition /
Retention
Self-Service
Customer Segments
1. Mid-range
home owners
Customization
Flexibility
Key Resources
Channels
Design IP
Brand
Int. designers
Cost Structure
2. Office
build-outs
Wholesale to
Interior
designers
Revenue Streams
Value-Driven
( = high end)
Asset Sale
8
Hitting the Phones
9
Version 2 -- 1/18
Powerblocks Business Model
Key Partners
Outsourced:
mfg,
fulfillment,
support
Distributors:
Int. Designer
Retailers
Key Activities
Design
Marketing
Cust.
Experience
Value Propositions
Demand Creation
Acquisition /
Retention
Self-Service
Customization
Customer Segments
1. Mid-range
home
owners
Flexibility
Key Resources
Channels
Design IP
Brand
Int. designers
Cost Structure
2. Office
build-outs
Wholesale to
Interior
designers
Revenue Streams
Value-Driven
( = high end)
Asset Sale
10
Version 2 -- 1/18
Powerblocks Business Model
Key Partners
Outsourced:
mfg,
fulfillment,
support
Distributors:
Int. Designer
Retailers
Key Activities
Design
Marketing
Cust.
Experience
Value Propositions
Demand Creation
Acquisition /
Retention
Self-Service
Customization
Customer Segments
1. Mid-range
home
owners
Flexibility
Key Resources
Channels
Design IP
Brand
Int. designers
Cost Structure
2. Office
build-outs
Wholesale to
Interior
designers
Revenue Streams
Value-Driven
( = high end)
Asset Sale
11
Version 2 -- 1/18
Powerblocks Business Model
Key Partners
Outsourced:
mfg,
fulfillment,
support
Distributors:
Retailers
Key Activities
Design
Marketing
Cust.
Experience
Value Propositions
Demand Creation
Acquisition /
Retention
Self-Service
Customization
Customer Segments
1. Mid-range
home
owners
Flexibility
Key Resources
More/less light
Directed light
Channels
Design IP
Brand
Cost Structure
Retail
Direct online
2. Office
build-outs
3. Young
professionals
Revenue Streams
Value-Driven
( = high end)
Asset Sale
12
Version 3 -- 1/25
Powerblocks Business Model
Key Partners
Outsourced:
mfg,
fulfillment,
support
Distributors:
Retailers
Key Activities
Value Propositions
Demand Creation
Design
Marketing
Cust.
Experience
Key Resources
Acquisition /
Retention
Self-Service
Flexibility:
More/less light
Directed light
Channels
Design IP
Brand
Cost Structure
Customer Segments
Young
professionals
(20-40 yr old)
Retail
Direct online
Revenue Streams
Value-Driven
( = high end)
Asset Sale
13
Stalking customers at C&B
14
Other progress . . .
16
Version 5 -- 2/8
Powerblocks Business Model
Key Partners
Outsourced:
mfg,
fulfillment,
support
Distributors:
Retailers
Key Activities
Value Propositions
Demand Creation
Design
Marketing
Cust.
Experience
Key Resources
Acquisition /
Retention
Self-Service
Flexibility:
More/less light
Directed light
Channels
Design IP
Brand
Cost Structure
Customer Segments
Young
professionals
(20-40 yr old)
Retail
Direct online
Revenue Streams
Value-Driven
( = high end)
Asset Sale
17
Lighting idea
Back To The Drawing Board . . .
19
Maximum Pain. Period.
20
Kids Asleep. Parents Happy.
21
The Product
22
The Product
23
Version 5 -- 2/8
Powerblocks Business Model
Key Partners
Outsourced:
mfg,
fulfillment,
support
Distributors:
Retailers
Key Activities
Value Propositions
Design
Marketing
Cust.
Experience
Key Resources
Demand Creation
-Online ads
-Prod. reviews
Better lighting
thru flexibility:
-More/less light
-Directed light
Channels
Design IP
Brand
Cost Structure
Customer Segments
Young
professionals
(20-40 yrs)
-Online –
direct and
mass market
Revenue Streams
Value-Driven
( = high end)
Asset Sale
24
Version 6 -- 2/15
Powerblocks Business Model
Key Partners
Outsourced:
mfg,
fulfillment,
support
Distributors:
Retailers
Key Activities
Design
Marketing
Cust.
Experience
Key Resources
Design IP
Brand
Cost Structure
Value Propositions
Demand Creation
Customer Segments
-PR, blogs,
WOM
-New parents
(baby <1 yr)
-Baby stops
crying
-Baby goes
to sleep
Channels
-Influence:
parents,
friends
-Online retail
Revenue Streams
Value-Driven
( = high end)
Asset Sale
25
Version 6 -- 2/15
Powerblocks Business Model
Key Partners
Outsourced:
mfg,
fulfillment,
support
Distributors:
Retailers
Key Activities
Design
Marketing
Cust.
Experience
Key Resources
Design IP
Brand
Cost Structure
Value Propositions
Demand Creation
Customer Segments
-PR, blogs,
WOM
-New parents
(baby <1 yr)
-Baby stops
crying
-Baby goes
to sleep
Channels
-Influence:
parents,
friends
-Online retail
Revenue Streams
Value-Driven
( = high end)
Asset Sale
26
Version 6 -- 2/15
Powerblocks Business Model
Key Partners
Outsourced:
mfg,
fulfillment,
support
Distributors:
Retailers
Key Activities
Design
Marketing
Cust.
Experience
Key Resources
Design IP
Brand
Cost Structure
Value Propositions
Demand Creation
Customer Segments
-PR, blogs,
WOM
-New parents
(baby <1 yr)
-Baby stops
crying
-Baby goes
to sleep
Channels
-Influence:
parents,
friends
-Online retail
Revenue Streams
Value-Driven
( = high end)
Asset Sale
27
Version 6 -- 2/15
Powerblocks Business Model
Key Partners
Outsourced:
mfg,
fulfillment,
support
Distributors:
Retailers
Key Activities
Design
Marketing
Cust.
Experience
Key Resources
Design IP
Brand
Cost Structure
Value Propositions
Demand Creation
Customer Segments
-PR, blogs,
WOM
-New parents
(baby <1 yr)
-Baby stops
crying
-Baby goes
to sleep
Channels
-Influence:
parents,
friends
-Online
retail
Revenue Streams
Value-Driven
( = high end)
Asset Sale
28
Talking to More Parents
29
Version 6 -- 2/15
Powerblocks Business Model
Key Partners
Outsourced:
mfg,
fulfillment,
support
Distributors:
Retailers
Key Activities
Design
Marketing
Cust.
Experience
Key Resources
Design IP
Brand
Cost Structure
Value Propositions
Demand Creation
Customer Segments
-PR, blogs,
WOM
-New parents
(baby <1 yr)
-Baby stops
crying
-Baby goes
to sleep
Channels
-Influence:
parents,
friends
-Online retail
Revenue Streams
Value-Driven
( = high end)
Asset Sale
30
Version 6 -- 2/15
Powerblocks Business Model
Key Partners
Outsourced:
mfg,
fulfillment,
support
Distributors:
Retailers
Key Activities
Design
Marketing
Cust.
Experience
Key Resources
Design IP
Brand
Cost Structure
Value Propositions
Demand Creation
Customer Segments
-PR, blogs,
WOM
-New parents
(baby <1 yr)
-Baby stops
crying
-Baby goes
to sleep
Channels
-Influence:
parents,
friends
blogs
-Online retail
Revenue Streams
Value-Driven
( = high end)
Asset Sale
31
Version 6 -- 2/15
Powerblocks Business Model
Key Partners
Outsourced:
mfg,
fulfillment,
support
Distributors:
Retailers
Key Activities
Design
Marketing
Cust.
Experience
Key Resources
Design IP
Brand
Cost Structure
Value Propositions
Demand Creation
Customer Segments
-PR, blogs,
WOM
-New parents
(baby <1 yr)
-Baby stops
crying
-Baby goes
to sleep
Channels
-1st baby
-Influence:
friends, blogs
-Online retail
Revenue Streams
Value-Driven
( = high end)
Asset Sale
32
Babies Outgrow Stuff… Fast
33
Version 6 -- 2/15
Powerblocks Business Model
Key Partners
Outsourced:
mfg,
fulfillment,
support
Distributors:
Retailers
Key Activities
Design
Marketing
Cust.
Experience
Key Resources
Design IP
Brand
Cost Structure
Value Propositions
Demand Creation
Customer Segments
-Blogs,
WOM
-New parents
(1st baby,
baby <1 yr)
-Baby stops
crying
-Baby goes
to sleep
Channels
-Influence:
friends, blogs
-Online retail
Revenue Streams
Value-Driven
( = high end)
Asset Sale
Renting
34
Babies Outgrow Stuff… Fast
35
To The Future?
Car
simulator
Now
Netflix
for baby
stuff
2 years
Online
product
rental?
5 years
36
Version 8 -- 3/1
So here’s where we ended up
Key Partners
Outsourced:
mfg,
fulfillment
Key Activities
Design
Marketing
Cust.
Experience
Key Resources
Design IP
Brand
Cost Structure
Value Propositions
Demand Creation
Customer Segments
-Blogs,
WOM
-New parents
(1st baby,
baby <1 yr)
-Baby stops
crying
-Baby goes
to sleep
Channels
-Influence:
friends, blogs
-Online retail
Revenue Streams
Value-Driven
( = high end)
Asset Sale
Renting
37
Version 8 -- 3/1
Question 1: Can we build it?
Key Partners
Outsourced:
mfg,
fulfillment
Key Activities
Design
Marketing
Cust.
Experience
Key Resources
Design IP
Brand
Cost Structure
Value Propositions
Demand Creation
Customer Segments
-Blogs,
WOM
-New parents
(1st baby,
baby <1 yr)
-Baby stops
crying
-Baby goes
to sleep
Channels
-Influence:
friends, blogs
-Online retail
Revenue Streams
Value-Driven
( = high end)
Asset Sale
Renting
38
Version 8 -- 3/1
Question 2: Do the costs work?
Key Partners
Outsourced:
mfg,
fulfillment
Key Activities
Design
Marketing
Cust.
Experience
Key Resources
Design IP
Brand
Cost Structure
Value Propositions
Demand Creation
Customer Segments
-Blogs,
WOM
-New parents
(1st baby,
baby <1 yr)
-Baby stops
crying
-Baby goes
to sleep
Channels
-Influence:
friends, blogs
-Online retail
Revenue Streams
Value-Driven
( = high end)
Asset Sale
Renting
39
So . . . what have we learned?
40
41
42
43
44
BUSINESS MODEL CANVASSES
45
Version 1
1/11/11
Powerblocks Business Model
Key Partners
Outsourced:
mfg,
fulfillment,
support
Distributors:
Int. Designer
Retailers
Key Activities
Design
Marketing
Cust.
Experience
Key Resources
Design IP
Brand
Int. designers
Cost Structure
Value Propositions
Demand Creation
Acquisition /
Retention
Self-Service
Modular
lighting/power:
Customization
Flexibility
Re-usability
Convenience
Smart-home
integration
Price
Customer Segments
Channels
1. High-end
(wealthy)
home owners
2. Office
build-outs
Wholesale to
Interior
designers
3. Low-end
(IKEA mkt),
dorm students
Revenue Streams
Value-Driven
( = high end)
Asset Sale
46
Version 2
1/18/11
Powerblocks Business Model
Key Partners
Outsourced:
mfg,
fulfillment,
support
Distributors:
Int. Designer
Retailers
Key Activities
Design
Marketing
Cust.
Experience
Key Resources
Value Propositions
Demand Creation
Acquisition /
Retention
Self-Service
Customization
Flexibility
High-end
residents
Channels
Mid-end
Interior
designers
Design IP
Brand
Int. designers
Cost Structure
Customer Segments
Also looking at
commercial
lighting
Revenue Streams
Value-Driven
( = high end)
Asset Sale
47
Version 3
1/25/11
Powerblocks Business Model
Key Partners
Outsourced:
mfg,
fulfillment,
support
Key Activities
Value Propositions
Demand Creation
Design
Marketing
Cust.
Experience
Key Resources
More/less light
Directed light
Customer Segments
Acquisition /
Retention
Self-Service
Young
professionals
Channels
Distributors:
Retailers
Design IP
Brand
Cost Structure
-Retail
-Direct online
Revenue Streams
Value-Driven
( = high end)
Asset Sale
48
Version 4
2/1/11
Powerblocks Business Model
Key Partners
Outsourced:
mfg,
fulfillment,
support
Key Activities
Value Propositions
Demand Creation
Design
Marketing
Cust.
Experience
Key Resources
Customer Segments
-Trade show
-Online ads
-Design mag.
Flexibility:
-More/less light
-Directed light
Young
professionals
(20-40 yrs)
Channels
Distributors:
Retailers
Design IP
Brand
Cost Structure
-Retail
-Direct online
Revenue Streams
Value-Driven
( = high end)
Asset Sale
49
Version 5
2/8/11
Powerblocks Business Model
Key Partners
Outsourced:
mfg,
fulfillment,
support
Key Activities
Value Propositions
Design
Marketing
Cust.
Experience
Key Resources
Distributors:
Retailers
Demand Creation
-Online ads
-Prod. reviews
Better lighting
thru flexibility:
-More/less light
-Directed light
Young
professionals
(20-40 yrs)
Channels
Design IP
Brand
Cost Structure
Customer Segments
-Online –
direct and
mass market
Revenue Streams
Value-driven
Asset Sale
50
Version 6
2/15/11
Powerblocks Business Model
Key Partners
Outsourced:
mfg,
fulfillment
Key Activities
Design
Marketing
Cust.
Experience
Key Resources
Value Propositions
Demand Creation
Customer Segments
-PR, blogs,
WOM
-Baby stops
crying
-New parents
(baby <1 yr)
Channels
-Influence:
relatives,
friends
-Baby goes
to sleep
Design IP
Brand
Cost Structure
-Online retail
Revenue Streams
Value-driven
Asset Sale
51
Version 7
2/22/11
Powerblocks Business Model
Key Partners
Outsourced:
mfg,
fulfillment
Key Activities
Design
Marketing
Cust.
Experience
Key Resources
Design IP
Brand
Cost Structure
Value Propositions
-Baby stops
crying
-Baby goes
to sleep
Demand Creation
-Blogs
-WOM =
referrals
Channels
-Online retail
Customer Segments
-New parents
(1st baby,
baby <1 yr)
-Influence:
friends, blogs
Revenue Streams
Value-driven
Asset Sale
Renting
52
Version 8
3/1/11
Powerblocks Business Model
Key Partners
Outsourced:
mfg,
fulfillment
Key Activities
Design
Marketing
Cust.
Experience
Key Resources
Design IP
Brand
Cost Structure
Value Propositions
-Baby stops
crying
-Baby goes
to sleep
Demand Creation
-Blogs
-WOM =
referrals
Channels
-Online retail
Customer Segments
-New parents
(1st baby,
baby <1 yr)
-Influence:
friends, blogs
Revenue Streams
Value-driven
Asset Sale
Renting
53
palan@stanford.edu
staubach@stanford.edu
bwil@stanford.edu
zuck@stanford.edu
54