Report DG512 Business Modeling. Roy Gevers Wouter Gravesteijn Robin van Kampen Sven Reijnders

Transcription

1 Report DG512 Business Modeling Roy Gevers Wouter Gravesteijn Robin van Kampen Sven Reijnders

2 Introduction This is the business modeling report of: Roy Gevers Wouter Gravesteijn Robin van Kampen Sven Reijnders In here you ll find the evolution of our tangible business model, how this model was improved over the weeks and the story that goes along with the model. The reflections and the feedback forms are also included in the report. 2

3 Business Model B2B Philips Business Modeling Key Activities Group One Robin van Kampen Sven Reijnders Roy Gevers Wouter Gravesteijn Channels TU/e Den Dolech AZ Eindhoven Tel. : Fax. : Mobile: Key Partners Cost Structure Value Propositions Customer Segments Revenue Streams 2 0 Key Resources Customer Relationships 3

4 The story Philips offers medical instruments and healthcare devices like CT-scanners to their customers, the hospitals (represented by a + symbol on the business model). These healthcare devices (represented by a heart) are the main value proposition Philips offers to the hospitals. What makes these healthcare devices different from other healthcare devices is that Philips also provides an ambient experience with these devices (represented with a Disney character). Philips did this because hospitals had a problem: children do not like to get in the healthcare devices because they are scary. In order to solve this problem Philips cooperated with Disney and hospitals to improve the devices and to make them less scary. The result is a healthcare device which provides an ambient experience. Aside from healthcare devices and an ambient experience Philips also has two other value propositions. Philips also offers customer support to their customers (represented with Lego characters). It is important for both Philips and hospitals that the machines keep working and get fixed quickly when they break down. Philips also makes sure it fulfills customer expectations like making the products easy to use and reliable (represented by blue Lego blocks). The ease of use and the reliability of the machines and the customer support are not only part of the value proposition Philips offers. They are also part of the customer relationships of Philips. Another way Philips maintains their customer relationships is by offering improvements like software updates or new ambient themes (represented by a Duplo and a Lego block). Philips uses several different channels to get their products to their customers. The important thing of these channels is that Philips reaches to the hospitals and not the other way around (represented by a car). One way of getting the devices to customers is through business to business shops (represented by the B2B). Philips makes sure hospitals know about their new products through advertising (represented by a business card). Advertising can be done through business fairs, magazines, websites or through old products. The last key channel is that Philips gets feedback from their customers (represented by Lego characters). This feedback is used to improve the value propositions of Philips. Philips has two main revenue streams: Profit (represented by money) and a better image (represented by Philips 2.0). Profit comes from the customers, who buy or hire the healthcare devices from Philips. Philips also gets a better image from offering all these value propositions. With these ambient devices Philips shows it is listening to the customer feedback, that they aim to improve their products and that they value the wellbeing of the children. In order to be able to deliver these value propositions Philips makes use of their key resources, key activities and key partners. And in order to use those certain costs have to be made (represented by money). The key 4

5 resources of Philips are patents, employees and resources. The patents (represented by a copyright symbol) are both the patens Philips owns and the patents owned by other companies, but that are used by Philips. The employees (represented by Lego characters) work on various fields like research, design, engineering, advertising, customer support ect. The resources (represented by a stone) include raw materials, available hardware and software ect. The key activities of Philips are research&design, production, maintenance and distribution. The research and design (represented by an Erlenmeyer) of Philips includes research on ambient experiences, new software and new hardware amongst other things. The production (represented by a cog) is the production of the necessary hardware and the actual healthcare devices. Maintenance (represented by a wrench) is an important activity of Philips because it keeps their products working. The last key activity of Philips is distribution (represented by a car), there is a big overlap between the distribution in the key activities and the channels and key partners of Philips. Distribution includes all ways Philips reaches their customers (like advertising). The last part of the business model is the key partners segment. The biggest partners of Philips are the hospitals (represented by a +) and Disney (represented by a Mickey symbol). These partners are needed to be able to deliver healthcare devices that provide an ambient experience. Other key partners have an overlap between the key activities (distribution, represented by a car) and the key resources (stone, represented by a car). 5

6 Partners - Hospital - What the patients need/want - Walt Disney - How to make the patients more comfortable - Rules & regulations regarding products What does she HEAR? what friends say what boss says what influences say Week 2 PHILIPS - They want to sell many products - They want to increase experience (patiens & relatives) - Easy to use for staff - Pains & obstacles What does she THINK and FEEL? what really counts major preoccupations worries & aspirations What does she SAY and DO? attitude in public appearance behavior towards others What does she SEE? environment friends what the markets offers - Problems of people that don t want to go in a scan - Financial situation of hospitals - Products from competitors - Technology improvements aside from competitors - Research & Product improvement - Customer support - Image building - Marketing - Low profits - Low succes rate - Low quality PAIN fears, frustrations, obstacles - Competition - Changing development costs - Good image GAIN wants /needs, measures of success, obstacles - Satisfied customer & stakeholders - Product sold 6

7 Week 3 7

8 Week 4 B2B Philips Business Modeling Group One Robin van Kampen Sven Reijnders Roy Gevers Wouter Gravesteijn TU/e Den Dolech AZ Eindhoven Tel. : Fax. : Mobile:

9 Week 5 B2B Philips Business Modeling Group One Robin van Kampen Sven Reijnders Roy Gevers Wouter Gravesteijn TU/e Den Dolech AZ Eindhoven Tel. : Fax. : Mobile:

10 The progress of the model Week 2 After the first lecture we made an empathy map for the Philips company. We explained what Philips thinks, feels, says, does, sees and hears. We also explained the pains and gains of Philips. We filled the empathy map with assumptions about the emotions of Philips and this empathy map provided a basis for our tangible business model later on in the assignment. This part of the business modeling process was mostly about observing, whereas later on it would become more and more about ideation and prototyping. Week 3 The next part of the assignment was to make a tangible business model. We started with the value propositions and customer segments of the tangible business model. After defining what these segments represent we started the ideation for the tangible business model. After experimenting with different materials like K NEX, we decided that everything represented in the different segments of the business model should be tangible and recognizable. We started out with a base of cardboard with three-dimensional symbols and objects representing everything involved in the different segments. We also decided that LEDs should be placed next to every object on the business model to aid the storytelling in the presentation and to bring the ambient experience to the business model. Week 4 We decided to replace the cardboard with the more eye-pleasing foamboard to get a more professional looking business model. We also used the feedback from the previous lecture to improve our presentation in this lecture, we chose our audience (hospitals) and we included parts of the empathy map in the presentation. The next step was to decide on what the relationship of Philips with its customer is and through which channels the hospital is reached. We decided to visualize the Customer Relationships and (Distribution) Channels with arrows and differently colored LED lights. We did this to make the flow of the business model more clear and because we found out that some parts of the business model fit into multiple segments of the canvas or were interchangeable. Next up were the revenue streams, revenue for Philips is not only money, but also retaining a good image. During the feedback we were asked from what point and how the money starts flowing to Philips. Week 5 During the last week of making the tangible business models we decided on who Philips partners were, and what activities and resources Philips has at their disposal. Because the top side of the canvas of the business model costs money, and the bottom side makes money we added some way of showing how the money flows. We did this by including more arrows and dollar bills on the business model so it could be read from top to bottom. We also used the feedback from the previous 10

11 week in our presentation and explained that for Philips it is important that the hospitals can pay for the healthcare devices. We also explained that there are multiple ways of how the money comes from the hospitals, they can buy the machines or they can make monthly payments if they hire the machines. 11

12 Business modeling reflection Robin van Kampen At the beginning of this semester there was a workshop on business modeling given by Camilla. The workshop was very inspiring and I learned a lot from it so I wanted to learn more about business modeling in this assignment. Throughout the assignment I learned how to use various tools that can be used in business modeling like the empathy map. Choosing the right tools for a project is crucial, so I think knowing about these different business modeling tools is very important. I would have liked to learn about more tools that can be used, but I understand that with only so few weeks the focus was laid on the tangible business model. Working on the tangible business model was a good experience for me. At first I thought that it would have been better to do several small business cases over the course of the assignment, but in the end I think focusing on one big model instead was the right choice because now I had more time to carefully think about every aspect of the business model. I learned a lot from doing this and the result is something I can show in my portfolio. I also improved a lot on my presentation skills during the assignment. Business modeling reflection Wouter Gravesteijn When I started this assignment I wanted to learn more about business modeling related to design. Within this assignment I learned a lot about the business model canvas as well as other tools like the empathy map. It was very interesting to see the results of the other groups (business partners). To see the results and the interests of the other companies involved in the ambient experience project. During the assignment I really liked the positive feedback, but I m not sure that it s the way to learn the most about how to do it better. I understand that a business model is a real creative process, so in that way the positive feedback is really good. The building of our own business model week by week was a very good way to learn step by step how to make a business model. When it was done in week 5 it was really nice to present our business model to the external panel. What I would have liked for this assignment is to have a bit more theory on when to use business models in a project and what the advantages, disadvantages and dangers are of using business models at different points in a project. The assignment was now very focused on practical stuff like presentations, I think it could use a bit more balance with some theory. 12

13 Business modeling reflection Roy Gevers At the start of this semester I did not know a single thing about business models. After the six lectures I know a whole lot more about the subjects at hand. The brilliant thing about this assignment is that somehow I got the feeling there is a lot of work put into it and that Camilla and Lu Yuan are highly motivated and committed, and this made me work harder as well. The way the assignment was presented is new and exhilarating. I have only had three (when counting DG000 four) assignments during my first year at Industrial Design, so I don t have a lot of material to compare the assignment with. However, I think the way the assignment was thought up and executed was great. I know I learned a lot! The only negative thing I can think of is that the feedback form is a bit too small. (Hence the first part of this reflection.) After some of the other assignments, I got an idea of where I stood with my development in that particular field. I could see the things I d learned in perspective with everything there still was to learn. But with business modeling, I was given the toolkit to set up a model and I will learn by doing, and so, if I keep practicing, I ll keep learning. So that s what I m going to do. The first few weeks of making the business model, I thought I was only learning about making a model more tangible, the different parts of the canvas and about presenting. However, through making the tangible business model, I learned a lot about all the important parts of a business model. So without reading a boring book or listening to hours and hours of lectures, I learned about making a business model. All I have to do in the future is think about the connections we made with the tangible Philips model and I can make my own business models. The only thing I regret not learning is the way I can present a business model on paper, e.g., in a report. 13

14 Business modeling reflection Sven Reijnders I followed a workshop about business modeling the day before we had to choose our assignments. because the workshop was interesting and I need to improve my Design & Business processes competency, I chose to do an assignment on this. What I did not know was that the assignor is the same person as the person who organized the workshop (this was not indicated in the assignment description). I would have liked to hear a different view and approach to business modeling because a lot of what we learned in the first lecture was almost the same as the workshop except there was more practicing in the workshop, which helped a lot. feedback I also received enough negative feedback however. I prefer this type of feedback more. The feedback form for this assignment in which we had to reflect on each lecture helped me a lot with making this reflection. In fact it worked so well that I also going to make one for my next assignments. It worked so well, because it is brief and it gives a good overview of your progress in the assignment. In the first lecture I learned about the empathy map and I think it is a pretty useful tool to get a clear view of your own business/company, but also to identify with another company or person or to identify the companies you have to compete with. The rest of the assignment was basically working on only one model. It was nice that you would really go in depth, but before I started this assignment I hoped I would learn more different things about modeling, like how to apply it in the business life. The feedback of this assignment is for the largest part positive. Usually you receive way more negative feedback, so I am not used to this. In fact I totally forgot to write down the positive feedback. I only wrote down the points for improvement. Later on, also in the panel 14

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