Business Models
Presented by Tom Kosnik
September 15, 2014
Gear Up Model slides by Ramfelt, Kjellberg, and Kosnik (2014),
Gear Up: Test Your Business Model Potential
and Plan Your Path to Success
Business Model Canvas based on: Osterwalder, Alexander and
Yves Pigneur (2010), Business Model Generation: A
Handbook for Visionaries, Game Changers, and Challengers
Customer Development from Blank, Steve (2012) The Startup
Owner’s Manual
GEAR UP: Your Best Idea
Ever
LENA RAMFELT
JONAS KJELLBERG
TOM KOSNIK
BASED ON THE BETA VERSION OF THE BOOK
Gear Up: A System for Creating New Markets
and Disrupting Existing Markets
Source: Ramfelt, Kjellberg, and Kosnik (2013) Gear Up: Bring Business Opportunities to Life.
Agenda
Agenda
Agenda
• Two Social Venture Examples
• Toraja Melo
• Gear Up Business Model: Playing the Zero Game
• Business Model Videos
• Muhammad Yunus
• Eric Osterwalder and The Business Model Canvas
• Summary of Business Model
Forming your Teams
Form Teams:
4 or 5 people per team:
• Make sure you have diversity:
• Men and women
• Different academic strengths or concentrations
• If possible, different countries, or regions of Indonesia
• Why diversity?
• To increase your understanding about how different people
(employees, investors, customers) think and make decisions
• To prepare you to work in entrepreneurial teams.
7
Gear Up: A System for Creating New Markets
and Disrupting Existing Markets
Source: Ramfelt, Kjellberg, and Kosnik (2013) Gear Up: Bring Business Opportunities to Life.
BUSINESS
MODEL
Source: Ramfelt, Kjellberg, and Kosnik (2013) Gear Up: Bring Business Opportunities to Life.
FROM
IDEA TO
CASH
So
Source: Ramfelt, Kjellberg, and Kosnik (2013) ”Gear Up: Your Best Idea Ever” Do Not copy or Distribute.
Source: Ramfelt, Kjellberg, and Kosnik (2013) ”Gear Up: Your Best Idea Ever” Do not copy or distribute.
Source: Ramfelt, Kjellberg, and Kosnik (2013) ”Gear Up: Your Best Idea Ever” Do Not copy or Distribute.
Exercise: The Zero Game
• Work in your teams
• What are the largest costs for your
competitors, if you have a social business or
for competitors of:
• Identify ways to drive the costs to zero – or to
a very small number.
• Prepare to share
Muhammad Yunus on
“Social Business Model”
http://www.youtube.com/watch?v=0C3XQ3BTd4o
Eric Osterwalder on Business Model Canvas
http://ecorner.stanford.edu/authorMaterialInfo.html?mid=2877
key
activities
The Business Model Canvas
value
proposition
customer
relationships
key
partners
customer
segments
cost
structure
revenue
streams
key
resources
channels
17
http://www.businessmodelgeneration.com/ accessed September 21, 2010.
images by JAM
Social Business Model Canvas
9 Guesses
Adapted by Tom Kosnik from the Business Model Canvas
Beneficiaries
Or
Customers’
Customers
Social Impact
Environmental Impact
http://www.businessmodelgeneration.com/ accessed September 21, 2010.
Identify your key assumptions –
Guesses
Your9 “Best
Guesses”
Guess
Guess
Guess
Guess
Guess
Guess
Guess
Guess
Guess
Social Impact
Beneficiaries
Or
Customers’
Customers
Environmental Impact
Guess
Guess
http://www.businessmodelgeneration.com/ accessed September 21, 2010.
Guess
Exercise
• Work in your teams
• Identify 1 part of the Business Model canvas that you
can innovate for your social venture or for:
• Make a plan to “Get out of the building” to test your
innovation with customers & channel partners.
Exercise: Identify at least one part of the business model canvas
where you can innovate. “Get out of the building” and test your idea
for business model innovation with customers & partners.
9 Guesses
Beneficiaries
Or
Customers’
Customers
Social Impact
Environmental Impact
http://www.businessmodelgeneration.com/ accessed September 21, 2010.
Business Model Summary:
• Two complementary tools enable effective
analysis of your business model:
• Gear Up & Business Creation: The Zero Game
• Business Model Canvas
• What do all the tools have in common?
• Get out of the building & talk to customers and
•
partners to test your assumptions.
Refine your business model or pivot*
* “Pivot” is used by Steve Blank and Eric Reis to mean
a change in direction - different customer segment or
different value proposition.
This Talk is Based On Three Books
• Gear Up
• Business Model Generation
• The Startup Owner’s Manual
Shameless Plug:
Gear Up is available on Amazon.com:
http://www.amazon.com/Gear-Up-Business-PotentialSuccess/dp/085708562X/ref=sr_1_1?s=books&ie=U
TF8&qid=1400514218&sr=11&keywords=ramfelt+gear+up#
Thank You
Tom Kosnik
+1 650 450 3330
kosnik.tom@gmail.com
Guy Kawasaki on “Business Model”
http://www.youtube.com/watch?v=G4O0epfxzq4
A Business Model Shows Your Critical
“Guesses,” AKA Assumptions or Hypotheses
•
•
•
•
•
•
•
•
•
Conversion rate (from prospect to paying customer)
Customer acquisition cost
Average selling price per unit
Variable cost per unit
Material cost
Distribution channel margins
Length of sales cycle
Life time value of a customer
Etc.
Test your guesses/assumptions/hypotheses about
these key numbers before developing elaborate
financial projections for a business plan.
Adapted from: Blank, Steven B. (2011) “Business Model” Talk delivered at Clean Tech Open Accelerator Workshop.