Gregor Lenart Doroteja Vidmar

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1 Gregor Lenart Doroteja Vidmar

2 Introduction Envision project and BusinessMakeover.eu overview Business model innovation tools Business model canvas Value proposition canvas BMI case studies Work in groups on your own business model Presentations of designed business models Discussion

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6 Business Model Generation Alexander Osterwalder and Yves Pigneur, Wiley, 2010 Value Proposition Design: How to Create Products and Services Customers Want Alan Smith, Alexander Osterwalder, Gregory Bernarda, Trish Papadakos, and Yves Pigneur, Wiley,

7 Population SMEs in Europe (30M) Microenterprises (fte <10) Small (fte: > 10< 50) Medium (fte >50 < 250) Special attention for Family Businesses and Female Entrepreneurs Cluster sampling (countries), within cluster random One of targets goals of the project was to reach 3M EU SMEs All countries: N= Max scenario North (we cover 4.7%, while 7.4% SMEs are in Northern Europe) N = 300 Lithuania, Finland, Sweden West (24,3% of 27,3%) N = 300 France, NL, UK South (31% of 31,3%) N = 300 Italy, Portugal, Spain East (8,4% of 12,9%) N = 200 Poland, Slovenia Central (13,4% of 21%) N = 200 Austria, Germany 5 regions, 13 country s

8 ...37% of SME in EU involved with BMI...19% of them use tool(s)...they are performing above average in terms of profitability and growth Source: ENVISION Research

9 Some research findings Envision research project 78% started working with new business partners 76% introduced new services 83% introduced new ways of organizing relations with customers 62% focused on complete new market segments 64% shared new responsibilities with new business partner 88% of product/service offering is enabled by ICT 78% introduced new products 65% introduced new distribution channels 73% introduced new ways to transact with customers 89% introduced new ways to reduce fixed costs 89% introduced new ways to reduce variable costs 71% introduced new pricing mechanisms 80% created new revenue streams 91% introduced new ways to be profitable Business'Model'Canvas'from'Strategyzer.com.'The'Business'Model'Canvas'is' licensed'under'the'crea; ve'commons'a= ribu; on?share'alike'3.0'unported'license.

10 ENVISION Empowering SME Business Model Innovation

11 1. What is business model? 2. What tools are companies using for business model innovation? 3. What are steps in business model design process?

12 Model is simplified picture of reality. A business model describes the rationale of how an organization creates, delivers, and captures value. Purpose of designing business model is: Present holistic overview on 1 page of how company works Open up and support discussion about how to change business model with innovative ideas, approaches, processes and technology.

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15 Business Model Canvas Designed for: Designed by: Date Version: Key partners Key activities Value propositions Customer relationships Customer segments Key resources Channels Cost structure Revenue streams This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.

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17 The Business Model Canvas Designed for:: Designer: Date: Version: Key partners Key activities Value proposition Customer relationship Customer segments Key resources Channels Cost structure Revenue streams

18 Design business model for Drive-in Coffee to go shop car pass daily orders/day How to design/improve business model 15 minutes

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21 Products & services Gain creators Pain relievers : ) : ( Gains Pains Jobs Video

22 Threat: Good enough cheap product from China

23 1. Mobilize setting the stage Assemble team for BMI, set common language for BM, design initial business model and discuss it 2. Research and understand elements for BM design Customers, Environment, Technology, BM patterns 3. Designing business models workshops Designing, prototyping, simulations, testing business models 4. Implementation and Execution Communicate changes, align old and new business model 5. Managing and Evolution Ongoing measurement of business models execution, continuous evaluation and adaptation of business model

24 BMI Workshops formats

25 Workshop assignment Form groups around tables Decide in the group about business model to design Design business model canvas Design value proposition canvas Present and discuss it within the group 45 minutes

26 Alexander Osterwalder and Yves Pigneur, (2010) Business model generation : a handbook for visionaries, game changers, and challengers, Wiley Alan Smith, Alexander Osterwalder, Gregory Bernarda, Trish Papadakos, and Yves Pigneur, (2014). Value Proposition Design: How to Create Products and Services Customers Want, Wiley