![Page 1: and startups - Kursused - Arvutiteaduse instituut · 2012-11-20 · Case study – Dropbox – in groups (1 hour) • Fill in the business model canvas for Dropxbox • Answer the](https://reader034.vdocuments.pub/reader034/viewer/2022042114/5e90f6a7d7413d215a4f7021/html5/thumbnails/1.jpg)
Business models
and startups
Georg Singer Email: [email protected]
Twitter: @Georg_Singer, Linkedin: linkedin.com/in/gecko, Facebook: facebook.com/georg.singer Slideshare: slideshare.net/georgsinger
![Page 2: and startups - Kursused - Arvutiteaduse instituut · 2012-11-20 · Case study – Dropbox – in groups (1 hour) • Fill in the business model canvas for Dropxbox • Answer the](https://reader034.vdocuments.pub/reader034/viewer/2022042114/5e90f6a7d7413d215a4f7021/html5/thumbnails/2.jpg)
Agenda
• 1. session
– startups
– online business models
• 2. session
– Lean-product management (development) principles
• 3. session
– Internet marketing
![Page 3: and startups - Kursused - Arvutiteaduse instituut · 2012-11-20 · Case study – Dropbox – in groups (1 hour) • Fill in the business model canvas for Dropxbox • Answer the](https://reader034.vdocuments.pub/reader034/viewer/2022042114/5e90f6a7d7413d215a4f7021/html5/thumbnails/3.jpg)
Readings Business models and startups • „The Lean Startup“ – Eric Ries • „The Startup Owner‘s Manual“ – Steve Blank • „Rework“ – Jason Fried, David Heynemeyer • Michael Rappa, http://digitalenterprise.org/models/models.html
(Business models) • http://businessmodelgeneration.com/ Internet marketing • „How to get found everywhere“ – Rand Fishkin • „Internet marketing“ – Dave Chaffey et al. • „The new rules of Marketing and PR“, David Meerman Scott
![Page 4: and startups - Kursused - Arvutiteaduse instituut · 2012-11-20 · Case study – Dropbox – in groups (1 hour) • Fill in the business model canvas for Dropxbox • Answer the](https://reader034.vdocuments.pub/reader034/viewer/2022042114/5e90f6a7d7413d215a4f7021/html5/thumbnails/4.jpg)
Today´s model to build a startup
• Have an interesting idea
• Raise a lot of money very early
• Create a perfect product with best people
• Hire an experienced CEO
• Start the marketing machine
• Fail Steve Blank http://www.slideshare.net/sblank/lecture-1-business-model-customer-development
![Page 5: and startups - Kursused - Arvutiteaduse instituut · 2012-11-20 · Case study – Dropbox – in groups (1 hour) • Fill in the business model canvas for Dropxbox • Answer the](https://reader034.vdocuments.pub/reader034/viewer/2022042114/5e90f6a7d7413d215a4f7021/html5/thumbnails/5.jpg)
Why?
![Page 6: and startups - Kursused - Arvutiteaduse instituut · 2012-11-20 · Case study – Dropbox – in groups (1 hour) • Fill in the business model canvas for Dropxbox • Answer the](https://reader034.vdocuments.pub/reader034/viewer/2022042114/5e90f6a7d7413d215a4f7021/html5/thumbnails/6.jpg)
Reasons for failure
• Did not meet customers´needs
• Bad ad predicting the future
• Wrong progress measures
Steve Blank http://www.slideshare.net/sblank/lecture-1-business-model-customer-development
![Page 7: and startups - Kursused - Arvutiteaduse instituut · 2012-11-20 · Case study – Dropbox – in groups (1 hour) • Fill in the business model canvas for Dropxbox • Answer the](https://reader034.vdocuments.pub/reader034/viewer/2022042114/5e90f6a7d7413d215a4f7021/html5/thumbnails/7.jpg)
Failure is…
..due to a lack of
customers
NOT a product development failure...
http://www.slideshare.net/sblank/customer-development-past-present-future-steve-blank-111909
Image http://www.flickr.com/photos/emmely1/6880611523/
![Page 8: and startups - Kursused - Arvutiteaduse instituut · 2012-11-20 · Case study – Dropbox – in groups (1 hour) • Fill in the business model canvas for Dropxbox • Answer the](https://reader034.vdocuments.pub/reader034/viewer/2022042114/5e90f6a7d7413d215a4f7021/html5/thumbnails/8.jpg)
Then why….
• Process to manage product development?
• No process to manage customer development?
http://www.slideshare.net/sblank/customer-development-past-present-future-steve-blank-111909
![Page 9: and startups - Kursused - Arvutiteaduse instituut · 2012-11-20 · Case study – Dropbox – in groups (1 hour) • Fill in the business model canvas for Dropxbox • Answer the](https://reader034.vdocuments.pub/reader034/viewer/2022042114/5e90f6a7d7413d215a4f7021/html5/thumbnails/9.jpg)
Business plans – why?
• Why write a plan?
–VC´s require it
–Planning (strategic, financial, ops)
• What´s wrong with a plan?
–Static
–Execution Oriented
Steve Blank http://www.slideshare.net/sblank/lecture-1-business-model-customer-development
![Page 10: and startups - Kursused - Arvutiteaduse instituut · 2012-11-20 · Case study – Dropbox – in groups (1 hour) • Fill in the business model canvas for Dropxbox • Answer the](https://reader034.vdocuments.pub/reader034/viewer/2022042114/5e90f6a7d7413d215a4f7021/html5/thumbnails/10.jpg)
An idea is NOT a Company
Steve Blank http://www.slideshare.net/sblank/lecture-1-business-model-customer-development
![Page 11: and startups - Kursused - Arvutiteaduse instituut · 2012-11-20 · Case study – Dropbox – in groups (1 hour) • Fill in the business model canvas for Dropxbox • Answer the](https://reader034.vdocuments.pub/reader034/viewer/2022042114/5e90f6a7d7413d215a4f7021/html5/thumbnails/11.jpg)
It´s just ONE of Many
Hypotheses
Steve Blank http://www.slideshare.net/sblank/lecture-1-business-model-customer-development
![Page 12: and startups - Kursused - Arvutiteaduse instituut · 2012-11-20 · Case study – Dropbox – in groups (1 hour) • Fill in the business model canvas for Dropxbox • Answer the](https://reader034.vdocuments.pub/reader034/viewer/2022042114/5e90f6a7d7413d215a4f7021/html5/thumbnails/12.jpg)
What is a company?
Photo by: Shariff Che'Lah
![Page 13: and startups - Kursused - Arvutiteaduse instituut · 2012-11-20 · Case study – Dropbox – in groups (1 hour) • Fill in the business model canvas for Dropxbox • Answer the](https://reader034.vdocuments.pub/reader034/viewer/2022042114/5e90f6a7d7413d215a4f7021/html5/thumbnails/13.jpg)
A business organization,
which sells a product or service in exchange for
revenue and profit
Steve Blank http://www.slideshare.net/sblank/lecture-1-business-model-customer-development
![Page 14: and startups - Kursused - Arvutiteaduse instituut · 2012-11-20 · Case study – Dropbox – in groups (1 hour) • Fill in the business model canvas for Dropxbox • Answer the](https://reader034.vdocuments.pub/reader034/viewer/2022042114/5e90f6a7d7413d215a4f7021/html5/thumbnails/14.jpg)
How are companies organized?
![Page 15: and startups - Kursused - Arvutiteaduse instituut · 2012-11-20 · Case study – Dropbox – in groups (1 hour) • Fill in the business model canvas for Dropxbox • Answer the](https://reader034.vdocuments.pub/reader034/viewer/2022042114/5e90f6a7d7413d215a4f7021/html5/thumbnails/15.jpg)
For their organization companies use business
models
Steve Blank http://www.slideshare.net/sblank/lecture-1-business-model-customer-development
![Page 16: and startups - Kursused - Arvutiteaduse instituut · 2012-11-20 · Case study – Dropbox – in groups (1 hour) • Fill in the business model canvas for Dropxbox • Answer the](https://reader034.vdocuments.pub/reader034/viewer/2022042114/5e90f6a7d7413d215a4f7021/html5/thumbnails/16.jpg)
What is a business model?
![Page 17: and startups - Kursused - Arvutiteaduse instituut · 2012-11-20 · Case study – Dropbox – in groups (1 hour) • Fill in the business model canvas for Dropxbox • Answer the](https://reader034.vdocuments.pub/reader034/viewer/2022042114/5e90f6a7d7413d215a4f7021/html5/thumbnails/17.jpg)
A business model covers and describes all necessary parts of a company to make
money
Steve Blank http://www.slideshare.net/sblank/lecture-1-business-model-customer-development
![Page 18: and startups - Kursused - Arvutiteaduse instituut · 2012-11-20 · Case study – Dropbox – in groups (1 hour) • Fill in the business model canvas for Dropxbox • Answer the](https://reader034.vdocuments.pub/reader034/viewer/2022042114/5e90f6a7d7413d215a4f7021/html5/thumbnails/18.jpg)
What about „our“ technology?
![Page 19: and startups - Kursused - Arvutiteaduse instituut · 2012-11-20 · Case study – Dropbox – in groups (1 hour) • Fill in the business model canvas for Dropxbox • Answer the](https://reader034.vdocuments.pub/reader034/viewer/2022042114/5e90f6a7d7413d215a4f7021/html5/thumbnails/19.jpg)
Your technology
is one part of the many critical parts needed to
build a company
Steve Blank http://www.slideshare.net/sblank/lecture-1-business-model-customer-development
![Page 20: and startups - Kursused - Arvutiteaduse instituut · 2012-11-20 · Case study – Dropbox – in groups (1 hour) • Fill in the business model canvas for Dropxbox • Answer the](https://reader034.vdocuments.pub/reader034/viewer/2022042114/5e90f6a7d7413d215a4f7021/html5/thumbnails/20.jpg)
Customers
don´t care about your technology, they are trying
to solve a problem
Steve Blank http://www.slideshare.net/sblank/lecture-1-business-model-customer-development
Image http://www.brucebucks.com/2011/09/ignore-list/
![Page 21: and startups - Kursused - Arvutiteaduse instituut · 2012-11-20 · Case study – Dropbox – in groups (1 hour) • Fill in the business model canvas for Dropxbox • Answer the](https://reader034.vdocuments.pub/reader034/viewer/2022042114/5e90f6a7d7413d215a4f7021/html5/thumbnails/21.jpg)
What is a startup?
![Page 22: and startups - Kursused - Arvutiteaduse instituut · 2012-11-20 · Case study – Dropbox – in groups (1 hour) • Fill in the business model canvas for Dropxbox • Answer the](https://reader034.vdocuments.pub/reader034/viewer/2022042114/5e90f6a7d7413d215a4f7021/html5/thumbnails/22.jpg)
• Aren´t small versions of large companies
• They are about learning/discovery, not execution
• Entrepreneurs and their VC´s were/are executing on guesses
• But the facts are/were outside the building
http://www.slideshare.net/sblank/customer-development-past-present-future-steve-blank-111909
![Page 23: and startups - Kursused - Arvutiteaduse instituut · 2012-11-20 · Case study – Dropbox – in groups (1 hour) • Fill in the business model canvas for Dropxbox • Answer the](https://reader034.vdocuments.pub/reader034/viewer/2022042114/5e90f6a7d7413d215a4f7021/html5/thumbnails/23.jpg)
A startup is a temporary organization designed to search
for a repeatable and scalable business model
Steve Blank http://www.slideshare.net/sblank/lecture-1-business-model-customer-development
![Page 24: and startups - Kursused - Arvutiteaduse instituut · 2012-11-20 · Case study – Dropbox – in groups (1 hour) • Fill in the business model canvas for Dropxbox • Answer the](https://reader034.vdocuments.pub/reader034/viewer/2022042114/5e90f6a7d7413d215a4f7021/html5/thumbnails/24.jpg)
How to build a start-up
Idea Business model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
Theory Practice
Steve Blank http://www.slideshare.net/sblank/lecture-1-business-model-customer-development
Image http://xpda.com/junkmail/junk155/GPN-2000-000650.jpeg
![Page 25: and startups - Kursused - Arvutiteaduse instituut · 2012-11-20 · Case study – Dropbox – in groups (1 hour) • Fill in the business model canvas for Dropxbox • Answer the](https://reader034.vdocuments.pub/reader034/viewer/2022042114/5e90f6a7d7413d215a4f7021/html5/thumbnails/25.jpg)
How to build a Web start-up
Idea Business model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
Web startups get the Product in front of Customers earlier
Steve Blank http://www.slideshare.net/sblank/lecture-1-business-model-customer-development
Image http://xpda.com/junkmail/junk155/GPN-2000-000650.jpeg
![Page 26: and startups - Kursused - Arvutiteaduse instituut · 2012-11-20 · Case study – Dropbox – in groups (1 hour) • Fill in the business model canvas for Dropxbox • Answer the](https://reader034.vdocuments.pub/reader034/viewer/2022042114/5e90f6a7d7413d215a4f7021/html5/thumbnails/26.jpg)
Genius is 1% inspiration and 99% perspiration Thomas Edison
![Page 27: and startups - Kursused - Arvutiteaduse instituut · 2012-11-20 · Case study – Dropbox – in groups (1 hour) • Fill in the business model canvas for Dropxbox • Answer the](https://reader034.vdocuments.pub/reader034/viewer/2022042114/5e90f6a7d7413d215a4f7021/html5/thumbnails/27.jpg)
Break 10 minutes
![Page 28: and startups - Kursused - Arvutiteaduse instituut · 2012-11-20 · Case study – Dropbox – in groups (1 hour) • Fill in the business model canvas for Dropxbox • Answer the](https://reader034.vdocuments.pub/reader034/viewer/2022042114/5e90f6a7d7413d215a4f7021/html5/thumbnails/28.jpg)
Product development/innovation
approaches
http://kingmagic.files.wordpress.com/2006/11/683_sourismissionimpossibleblog.jpg
![Page 29: and startups - Kursused - Arvutiteaduse instituut · 2012-11-20 · Case study – Dropbox – in groups (1 hour) • Fill in the business model canvas for Dropxbox • Answer the](https://reader034.vdocuments.pub/reader034/viewer/2022042114/5e90f6a7d7413d215a4f7021/html5/thumbnails/29.jpg)
Traditional product management Waterfall model
Source: http://en.wikipedia.org/wiki/Waterfall_model
Problem:known
From Eric Ries´s presentation on Slideshare.
Solution:known
![Page 30: and startups - Kursused - Arvutiteaduse instituut · 2012-11-20 · Case study – Dropbox – in groups (1 hour) • Fill in the business model canvas for Dropxbox • Answer the](https://reader034.vdocuments.pub/reader034/viewer/2022042114/5e90f6a7d7413d215a4f7021/html5/thumbnails/30.jpg)
Agile Unit of progress: code
From Eric Ries´s presentation on Slideshare.
Problem:known
Solution:unknown
„Product owner“ or in-house customer
![Page 31: and startups - Kursused - Arvutiteaduse instituut · 2012-11-20 · Case study – Dropbox – in groups (1 hour) • Fill in the business model canvas for Dropxbox • Answer the](https://reader034.vdocuments.pub/reader034/viewer/2022042114/5e90f6a7d7413d215a4f7021/html5/thumbnails/31.jpg)
Product development at Lean Startup Unit of progress: Validated Learning
about customers
From Eric Ries´s presentation on Slideshare.
![Page 32: and startups - Kursused - Arvutiteaduse instituut · 2012-11-20 · Case study – Dropbox – in groups (1 hour) • Fill in the business model canvas for Dropxbox • Answer the](https://reader034.vdocuments.pub/reader034/viewer/2022042114/5e90f6a7d7413d215a4f7021/html5/thumbnails/32.jpg)
Business Models
![Page 33: and startups - Kursused - Arvutiteaduse instituut · 2012-11-20 · Case study – Dropbox – in groups (1 hour) • Fill in the business model canvas for Dropxbox • Answer the](https://reader034.vdocuments.pub/reader034/viewer/2022042114/5e90f6a7d7413d215a4f7021/html5/thumbnails/33.jpg)
Why are business models important
• Most important aspect of your venture
• How do you make money?
• Why are you better than your competition?
• Why should your customer buy you?
• How do you differentiate yourself from the competition?
• How do you access the market?
• Many start-ups are not clear about that
![Page 34: and startups - Kursused - Arvutiteaduse instituut · 2012-11-20 · Case study – Dropbox – in groups (1 hour) • Fill in the business model canvas for Dropxbox • Answer the](https://reader034.vdocuments.pub/reader034/viewer/2022042114/5e90f6a7d7413d215a4f7021/html5/thumbnails/34.jpg)
A business model describes all the parts of the company necessary to make money
![Page 35: and startups - Kursused - Arvutiteaduse instituut · 2012-11-20 · Case study – Dropbox – in groups (1 hour) • Fill in the business model canvas for Dropxbox • Answer the](https://reader034.vdocuments.pub/reader034/viewer/2022042114/5e90f6a7d7413d215a4f7021/html5/thumbnails/35.jpg)
What are those parts? What parts is a business model composed of?
![Page 36: and startups - Kursused - Arvutiteaduse instituut · 2012-11-20 · Case study – Dropbox – in groups (1 hour) • Fill in the business model canvas for Dropxbox • Answer the](https://reader034.vdocuments.pub/reader034/viewer/2022042114/5e90f6a7d7413d215a4f7021/html5/thumbnails/36.jpg)
9 Building blocks
Images from http://www.businessmodelgeneration.com/
http://youtu.be/QoAOzMTLP5s
![Page 40: and startups - Kursused - Arvutiteaduse instituut · 2012-11-20 · Case study – Dropbox – in groups (1 hour) • Fill in the business model canvas for Dropxbox • Answer the](https://reader034.vdocuments.pub/reader034/viewer/2022042114/5e90f6a7d7413d215a4f7021/html5/thumbnails/40.jpg)
Customer Relationships
http://www.businessmodelgeneration.com
![Page 46: and startups - Kursused - Arvutiteaduse instituut · 2012-11-20 · Case study – Dropbox – in groups (1 hour) • Fill in the business model canvas for Dropxbox • Answer the](https://reader034.vdocuments.pub/reader034/viewer/2022042114/5e90f6a7d7413d215a4f7021/html5/thumbnails/46.jpg)
46 images by JAM
customer
segments
key
partners
cost
structure
revenue
streams
channels
customer
relationships
key activities
key
resources
value
proposition
www.businessmodelgeneration.com http://www.businessmodelgeneration.com
![Page 47: and startups - Kursused - Arvutiteaduse instituut · 2012-11-20 · Case study – Dropbox – in groups (1 hour) • Fill in the business model canvas for Dropxbox • Answer the](https://reader034.vdocuments.pub/reader034/viewer/2022042114/5e90f6a7d7413d215a4f7021/html5/thumbnails/47.jpg)
The business model canvas
• Systematic way of
–designing
–challenging
–inventing
• business models
Created by Alexander Osterwalder and Yves Pigneur
![Page 48: and startups - Kursused - Arvutiteaduse instituut · 2012-11-20 · Case study – Dropbox – in groups (1 hour) • Fill in the business model canvas for Dropxbox • Answer the](https://reader034.vdocuments.pub/reader034/viewer/2022042114/5e90f6a7d7413d215a4f7021/html5/thumbnails/48.jpg)
Downlaod http://www.businessmodelgeneration.com/canvas Online http://canvanizer.com/
![Page 49: and startups - Kursused - Arvutiteaduse instituut · 2012-11-20 · Case study – Dropbox – in groups (1 hour) • Fill in the business model canvas for Dropxbox • Answer the](https://reader034.vdocuments.pub/reader034/viewer/2022042114/5e90f6a7d7413d215a4f7021/html5/thumbnails/49.jpg)
Copyright © 2010 Pearson Education, Inc.
Categorizing e-commerce Business models
• We categorize business models according to: – e-commerce sector (B2C, B2B, C2C)
– Type of e-commerce technology; e.g. mobile commerce
– Revenue model
• Some companies use multiple business models; e.g., eBay (brokerage, advertising…)
![Page 50: and startups - Kursused - Arvutiteaduse instituut · 2012-11-20 · Case study – Dropbox – in groups (1 hour) • Fill in the business model canvas for Dropxbox • Answer the](https://reader034.vdocuments.pub/reader034/viewer/2022042114/5e90f6a7d7413d215a4f7021/html5/thumbnails/50.jpg)
Online revenue models • Advertising revenue model
• Subscription revenue model
• Freemium model
• Transaction fee (brokerage) revenue model
• Sales revenue (merchant) model
• Infomediary model
• Utility model
• Affiliate revenue model
![Page 51: and startups - Kursused - Arvutiteaduse instituut · 2012-11-20 · Case study – Dropbox – in groups (1 hour) • Fill in the business model canvas for Dropxbox • Answer the](https://reader034.vdocuments.pub/reader034/viewer/2022042114/5e90f6a7d7413d215a4f7021/html5/thumbnails/51.jpg)
Case study – Dropbox – in groups (1 hour)
• Fill in the business model canvas for Dropxbox • Answer the following questions:
– What is the product? – What is the target market? – Market size? – Why is Dropbox better than the competition? – What were the problems with other products? – What is their business model?
• What is free? • What is paid?
– How did he create initial demand to test the prototype? – Why did search engine advertising not work?
• What were the acquisiton cost per customer?
– What was the most successful marketing program? Why? – Why did they not target business customers? – How did he manage the product regarding updates and innovation?
• Where did/does he get ideas for product improvments from? • How did they test improvements to get measurable data?
• Present afterwards