Download Business Models are - Knowledge

Marketing & Innovation
Session 02:
Business Model Canvas
Marcos LIMA, PhD
Skema Business School
Knowledge Management,
Innovation and New Products
 How are
these concepts related?
Business Model
Positioning
Process
Marketing Mix
Knowledge
Management
Technology
New Products
& Services
Innovation
Targeted
Segments
Business Models are ‘Iterative’!
 Structure
of
‘The BM
Generation’
Textbook
Business Models Are not New!
 Examples of
Innovative BM
 Diners Club, 1950
 Xerox pay-per-copy, 1959
What is a Business Model
 Your
Definition?
 Alex Osterwalder’s
Definition
 A business model
describes the
rationale of how an
organization creates,
delivers and captures
value.
Strategic Marketing
and Value Creation
 Physical Process:
What is wrong here?
Source: Lannings & Michaels 1988 apud Kotler, 2009
Strategic Marketing
 Physical Process
x Value Creation Process
Source: Lannings & Michaels 1988 apud Kotler, 2009
Marketing Planning Process
Technological
Forces
Economic
Forces
Product/Brand
Positioning
Product
Marketing
Environement
Marketing
Positioning
Marketing
Mix
Customer
Needs
Social
Forces
Promotion
Cultural
Forces
Segmentation
/Targeting
Place/
Distribution
Price
Competitive
Advantage
Competitive
Forces
Legal/
Political
Forces
Marketing Planning Process
Technological
Forces
Economic
Forces
Choosing
the Value
Marketing
Environement
Product
Social
Forces
Promotion
Promotion
Cultural
Forces
Place/
Segmentation
Distribution
/Targeting
Price
Competitive
Advantage
Marketing
Positioning
Marketing
Mix
Customer
Needs
Market / Product
Positioning
Providing
the Value
Competitive
Forces
Communicating the Value
Legal/Political
Forces
Strategic Marketing
 Choosing the
A. Segmentation
Value
B. Targeting
C. Positioning
Differentiation
attribute
A
Differentiation
attribute
B
Strategic Marketing
Segmentation
Video-Case: The Strategy
Targeting
Targeting
Positioning
Identity: The way a
company aims to
identify or position
itself
Positioning
Image: The way the
public perceives the
company or its products
Brand
Source: http://www.slideshare.net/madhusudanpartani/segmentation-targeting-and-positioning
Positioning Map
Positioning:
The Mountain Dew Case
 What
do you think is this brand’s positioning?
Positioning
 Positioning
Statement draft
for Mountain Dew:
 To young, active soft-drink
consumers who have little time
for sleep, Mountain Dew is the
soft drink that gives you more
energy than any other brand
because it has the highest level
of caffeine.
Source: http://www.slideshare.net/madhusudanpartani/segmentation-targeting-and-positioning
Positioning Map
Sugar
Caffeine
Positioning Value Proposition
Positioning & the Mix
The BM CANVAS
https://www.youtube.com/watch?v=QoAOzMTLP5s
9 Blocks of BMC
 WHO
do you
help?
 WHO do you
deliver value
to?
 Choose to serve
segments whose
needs you know
well
9 Blocks of BMC
 How do
you help?
 What value are
customers
getting?
 Seek to solve
customer
problems and
satisfy (unmet)
customer needs
9 Blocks of BMC
 How do
they know
you?
 How do you
deliver value?
 Communication,
distribution and
sales channels
9 Blocks of BMC
 Channel Phases
9 Blocks of BMC
 How do
you interact with
customers ?
 Can you earn
their loyalty?
9 Blocks of BMC
CRM tools
• Personal assistance
• Dedicated personal
assistance
• Self-service
• Automated services
• Communities
• Co-creation
9 Blocks of BMC
 What
to you get
from the
relationships
you build?
 Revenue (and
other benefits!)
9 Blocks of BMC
 Main
Revenue Types
Asset sale
Usage fee
Subscription fee
Lending/ Renting / Leasing
Licensing
Brokerage fees
(credit card model)
 Advertising






9 Blocks of BMC
 What
you are
 Your organization
 What
you have
 Your resources
9 Blocks of BMC
 What
you do
 Critical
competences
9 Blocks of BMC
 Examples of
Key
Activities:
 Production
 Problem solving
 Platform / Network
9 Blocks of BMC
 Who helps you
 Outsourced
activities?
 Outside
resources?
9 Blocks of BMC
 Types of
Partnerships:
 1. Strategic alliances
between non-competitors
 2. Coopetition: strategic
partnerships between
competitors
 3. Joint ventures to develop
new businesses
 4. Buyer-supplier
relationships to assure
reliable supplies
9 Blocks of BMC
 What
you give
 Financially or
otherwise…
9 Blocks of BMC
 Cost




structures
Fixed
Variable
Economies of scale
Economies of scope
BMC Overview
 Competencies
Required by the
BMC
Brainstorming with the BMC
‘Long Tail’ Business Models
http://thefinanser.co.uk/fsclub/2013/08/sibos-2013-the-long-tail-model-is-coming-to-banking-part-two.html
‘Long Tail’ Business Models
‘Long Tail’ Business Models
Lego Factory:
A Case of ‘Long Tail’ BM Failure
‘Long Tail’ Business Models
Multi-Sided Platforms
 Platform
BM Pattern
Multi-Sided Platforms
 Multi-sided
Google
Platforms:
Multi-Sided Platforms
 Wii
x PSP / Xbox
Multi-Sided Platforms
 Apple’s
Evolution into a Platform
‘Free’ or ‘Freemium’ Models
 Freemium BM
Pattern
‘Free’ or ‘Freemium’ Models
 Metro,
Free Newspaper
‘Free’ or ‘Freemium’ Models
 Flickr
‘Free’ or ‘Freemium’ Models
 Skype
Good Luck!
Marcos Lima
[email protected]