PurposeBuild a common language for

Purpose

Build a common language for founders participating in our startup ecosystem

What’s the difference between business transition or change management? Not much but if we have to determine that we are speaking about the same topic we are wasting time. That is why a common vocabulary is important.
Using a common language we can facilitate discussion with ease.
Without a shared language:
It is difficult to systematically challenge assumptions.
It is difficult to innovate successfully.

So, what is a Business Model?

“A Business Model describes the rationale of how an organization creates, delivers, and captures value.” – Business Model Generation by Alex Osterwalder and Yves Pigneur
#1: The Customers

Customer Groups Represent Different Segments if:

Their needs require and justify a distinct offer
They are reached through different Distribution Channels
They require different types of relationships
They have substantially different profitability
They are willing to pay for different aspects of the offer Mass Segments include:
Mass – Don’t Distinguish; All Focus on One Large Group; Consumer Electronics
Niche – All aspects of distribution, relationship, value etc are tailored to the specific
Segmented – Slightly different needs and problems in market segments; Banking: Private Client Groups cater to those with $500,000 or more vs general consumer banking
Diversified – Serve two totally unrelated market segments; Amazon is in retail but also is selling infrastructure
Multi-Sided – Serve two more interdependent segments; Credit card companies need both a large base of card holder and a large base of merchants; News Paper – readership and advertisers
For whom are we creating value?
Who are our most important customers?

#2: Value Proposition

Why customers chose your company over others
Solves problem or satisfies a need
Caters specifically to the customer segment
What value do we deliver to the customer?
Which problem are we solving?
Which needs are we satisfying?
What are we offering?

The answers include:

Newness – New set of needs that customers previously didn’t perceive because there was no similar offering
Performance – Improving product or service performance: PC sector used to rely on this factor to bring more and more powerful machines to market. Recently failed to produce customer demand
Customization – Tailoring products or services to specific needs/problems
Getting the Job Done
Design
Brand/Status
Price
Cost reduction
Risk reduction
Accessibility
Convenience/Usability – Customer co-creation, mass customization

#3: Channels

Which channels do our customers want to be reached on?
Which channels work best?
Which ones cost less?
How are they integrated into customer routines?
Direct vs Indirect
Salesforce vs. Wholesale
Partner vs Own
Partner Stores vs Own Stores
Where does Web Sales Fall – Own and Direct

Channel Phases

Awareness – How do we raise awareness about our company?
Evaluation – How do we help customers evaluate our organization’s Value Proposition?
Purchase – How do we allow customers to purchase specific products and services?
Delivery – How do we deliver a Value Proposition to customers?
After Sales – How do we provide post-purchase support?

#4: Customer Relationships

For Customer Acquisition
Customer Retention
Boosting Sales
What type of relation is established and maintained?
How costly are they?
How do they integrate with Business Model?

#5: Revenue Streams

For what value is each customer segment truly willing to pay?
What do they currently pay?
How are they paying?
What would they prefer?
Transaction vs Recurring
Fixed vs Dynamic

#6: Key Resources

What Key Resources do our Value Propositions require?
Physical – Buildings, Machines, POS, Trucks
Intellectual – Brand, patents, microchip design
Human – Pharma needs scientists; Pharma needs skilled salesforce
Financial – Cash, lines of credit, stock option pool; Borrow funds from bank to provide vendor financing to downstream customers.
Our Distribution Channels?
Customer Relationships?
Revenue Streams?

#7: Key Activities

What Key Activities do our Value Propositions require?
Distribution Channels? Relationships?
Revenue Streams?
Production
Design, making, delivering
Manufacturing
Problem Solving
Come up with solutions to individual customer problems
Knowledge management and training
Platform/Network
Match Making
Platform Promotion, Service, Management

#8: Key Partnerships

Strategic Alliances between Non-Competitors
Coopetition: Alliances between Competitors
Joint ventures to develop new business
Buyer-supplier relationships to assure reliability
Who are our Key Partners?
Who are our Key Suppliers?
Which Key Resources are we acquiring?
Which Key Activities do others perform?

#9: Cost Structure

Important costs incurred by while operating
What are the important costs inherent to our business model?
Cost-Driven – Minimize cost; No Frills Airlines
Value Driven – Premium Value Propositions; Luxury hotels
Fixed Costs – Remain the same despite changes in volume of goods or services produced; Physical plant
Variable Costs – Vary proportionally with the volume of goods or services produced; Ticketing
Which Key Resources are most expensive?
Which Key Activities are most expensive?
Economies of Scale
As output expands cost advantages arrive
Bulk purchases
Economies of Scope
Cost advantages due to larger scope of operation
Use the same distribution channel for multiple products

Hasil (Bahasa Indonesia) 1:

TujuanMembangun bahasa yang umum untuk pendiri yang berpartisipasi dalam kami startup ekosistem What is the perbedaan antara bisnis transisi atau perubahan manajemen? Tidak banyak tetapi jika kita harus menentukan bahwa kita berbicara tentang topik yang sama kita membuang-buang waktu. Itu sebabnya kosa kata umum penting. Menggunakan bahasa yang umum kami dapat memfasilitasi diskusi dengan mudah. Tanpa bahasa bersama: Sulit untuk secara sistematis menantang asumsi. Sulit untuk berinovasi berhasil.Jadi, apa adalah sebuah Model Bisnis?"Model Bisnis yang menjelaskan alasan bagaimana organisasi menciptakan, memberikan, dan menangkap nilai." – bisnis Model generasi oleh Alex Osterwalder dan Yves Pigneur#1: pelangganKelompok pelanggan yang mewakili segmen yang berbeda jika: Kebutuhan mereka memerlukan dan membenarkan tawaran yang berbeda Mereka dapat dicapai melalui saluran distribusi yang berbeda Mereka membutuhkan jenis hubungan Mereka memiliki keuntungan substansial berbeda Mereka bersedia membayar untuk aspek yang berbeda dari tawaran massa segmen termasuk: Massa-tidak membedakan; Semua fokus pada satu kelompok; Elektronik konsumen Niche-semua aspek dari distribusi, hubungan, value dll yang dirancang khusus Tersegmentasi – kebutuhan yang sedikit berbeda dan masalah dalam segmen pasar; Perbankan: Kelompok klien pribadi melayani mereka dengan $500.000 atau lebih vs konsumen umum perbankan Diversifikasi – melayani dua segmen pasar yang sama sekali tidak terkait; Amazon di ritel tetapi juga menjual infrastruktur Multi sisi-melayani dua segmen saling lain; Perusahaan kartu kredit perlu basis besar pemegang kartu dan basis besar pedagang; Berita kertas-pembaca dan pengiklan Untuk siapa kita menciptakan nilai? Yang paling penting pelanggan kami?#2: nilai proposisi Mengapa pelanggan memilih perusahaan Anda atas orang lain Memecahkan masalah atau memenuhi kebutuhan Melayani khusus untuk segmen pelanggan Nilai apa yang kami memberikan kepada pelanggan? Masalah yang kita memecahkan? Kebutuhan yang Apakah kita memuaskan? Apa yang kami tawarkan?Jawaban meliputi: Kebaruan – set baru kebutuhan yang pelanggan sebelumnya tidak memahami karena ada Tiada persembahan yang serupa Kinerja-meningkatkan kinerja produk atau jasa: sektor PC yang digunakan untuk bergantung pada faktor ini untuk membawa lebih banyak dan lebih kuat mesin ke pasar. Baru-baru ini gagal untuk menghasilkan permintaan pelanggan Kustomisasi-menyesuaikan produk atau layanan untuk kebutuhan khusus / masalah Mendapatkan pekerjaan yang dilakukan Desain Merek Status Harga Pengurangan biaya Pengurangan risiko Aksesibilitas Kenyamanan/kegunaan-pelanggan Co-penciptaan, kustomisasi massal#3: saluran Saluran-saluran yang Apakah pelanggan kami ingin dihubungi pada? Saluran-saluran yang bekerja dengan baik? Yang biaya kurang? Bagaimana mereka diintegrasikan ke dalam rutinitas pelanggan? Langsung vs tidak langsung Salesforce vs Grosir Mitra vs sendiri Toko mitra vs sendiri toko Mana Apakah Web penjualan musim gugur-sendiri dan langsungFase Channel Kesadaran-Bagaimana Apakah kita meningkatkan kesadaran tentang perusahaan kami? Evaluation – How do we help customers evaluate our organization’s Value Proposition? Purchase – How do we allow customers to purchase specific products and services? Delivery – How do we deliver a Value Proposition to customers? After Sales – How do we provide post-purchase support?#4: Customer Relationships For Customer Acquisition Customer Retention Boosting Sales What type of relation is established and maintained? How costly are they? How do they integrate with Business Model?#5: Revenue Streams For what value is each customer segment truly willing to pay? What do they currently pay? How are they paying? What would they prefer? Transaction vs Recurring Fixed vs Dynamic#6: Key Resources What Key Resources do our Value Propositions require? Physical – Buildings, Machines, POS, Trucks Intellectual – Brand, patents, microchip design Human – Pharma needs scientists; Pharma needs skilled salesforce Financial – Cash, lines of credit, stock option pool; Borrow funds from bank to provide vendor financing to downstream customers. Our Distribution Channels? Customer Relationships? Revenue Streams?#7: Key Activities What Key Activities do our Value Propositions require? Distribution Channels? Relationships? Revenue Streams? Production Design, making, delivering Manufacturing Problem Solving Come up with solutions to individual customer problems Knowledge management and training Platform/Network Match Making Platform Promotion, Service, Management#8: Key Partnerships Strategic Alliances between Non-Competitors Coopetition: Alliances between Competitors Joint ventures to develop new business Buyer-supplier relationships to assure reliability Who are our Key Partners? Who are our Key Suppliers? Which Key Resources are we acquiring? Which Key Activities do others perform?#9: Cost Structure Important costs incurred by while operating What are the important costs inherent to our business model? Cost-Driven – Minimize cost; No Frills Airlines Value Driven – Premium Value Propositions; Luxury hotels Fixed Costs – Remain the same despite changes in volume of goods or services produced; Physical plant Variable Costs – Vary proportionally with the volume of goods or services produced; Ticketing Which Key Resources are most expensive? Which Key Activities are most expensive? Economies of Scale As output expands cost advantages arrive Bulk purchases Economies of Scope Cost advantages due to larger scope of operation Use the same distribution channel for multiple products