You all came up with great ideas
And you want to conquer the world
Make money as fast as you can
Design your next
revenue model
Daan de Geus
daan@businessmodelsinc.com
Business Models Inc.
San Francisco Amsterdam HQ TaipeiNew-York Brisbane
Stay ahead of competition
It is all about you today
A structure that states &
explains the revenue earning
strategy of a company
1
Value over price
2
Business models are
fluid
3
It’s a journey of
exploration
…
Where to start?
Show me the
money guide
1
Value over price
Make money as fast as you can
Nobody pays for
something they don’t
value
One question…
Where is value created?
Business model canvas
Key partners Key activities
Key resources
Value propositions Customer relationships
Channels
Customer segments
Revenue streamsCost structure
Business Models Inc © www.businessmodelgeneration.com
A business model describes the
rationale of how an
organization creates, delivers, and
captures value.
Business model canvas
Key partners Key activities
Key resources
Value propositions Customer relationships
Channels
Customer segments
Revenue streamsCost structure
Business Models Inc © www.businessmodelgeneration.com
Do we identify a target customer segment?
Can we identify the need?
And are they willing to pay for this?
Business model canvas
Key partners Key activities
Key resources
Value propositions Customer relationships
Channels
Customer segments
Revenue streamsCost structure
Business Models Inc © www.businessmodelgeneration.com
A great startup example
- search
Meet Scott
Never won a fight
His vision…
Reduce headaches & frustrations in the bar…
An app for ordering…
You are drinking with your friends
You want to pay and leave…
Pay at the bar with an app
So where to
start $?
IT IS NOT
ABOUT
THE PRODUCT
It is about the
business
model!
What does the
1st business model
look like?
Business model canvas
Key partners Key activities
Key resources
Value propositions Customer relationships
Channels
Customer segments
Revenue streamsCost structure
Business Models Inc © www.businessmodelgeneration.com
Onetab #1
Develop &
maintain app
Drinkers
App stores
App
download
fees
People
App
developm.
Social media
Really cool
app for
buying drinks
Dev Team
We almost forgot something…
What is our key
assumption here?
Drinkers want to pay
99c for an app to buy
beers
Customers are still the party animals
What they learned
after visiting 40 pubs…
Nobody
wanted to
pay for an
app!
His dream was destroyed
But he had a point of
view
Improve the experience in the bars
Become financially independent
So he went on…
Go out of the building
again!
Bar owners liked the app!
Order process was slow & admin hassle
What does
2nd
business model
look like?
Business model canvas
Key partners Key activities
Key resources
Value propositions Customer relationships
Channels
Customer segments
Revenue streamsCost structure
Business Models Inc © www.businessmodelgeneration.com
Onetab #2
Develop
customer
base
Drinkers
App stores
Pay per usePeople
App
developm.
Social MediaKeep the night
moving, no
worries about
paying
Marketeers &
Dev Team
Faster order
process &
more sales
Staff
Free
App store
fees
POS software
provider (H&L
Australia)
Develop &
maintain app
Again… the team was puzzled
No downloads… no transactions
Bar adoption was slow
So,
what to do next?
How do you visit
each bar in
Australia?
How many sales people to hire?
So he looked for
investors…
Mark Carnegie
Show me clients first!
Then H&L knocked
on the door
Integrate & distribute at scale!
Business model canvas
Key partners Key activities
Key resources
Value propositions Customer relationships
Channels
Customer segments
Revenue streamsCost structure
Business Models Inc © www.businessmodelgeneration.com
Onetab #3
Develop
customer
base Drinkers
Point of Sales
Cash Register
Pay per usePeople
App
developm.
Social Media
Keep the night
moving, no
worries about
paying
Marketeers &
Dev Team
ONE TAB APP
Faster order
process &
more sales
Staff
Free
App store
fees
POS software
provider (H&L
Australia)
Develop &
maintain app
What does
the next business
model look like?
Power of data.
“In God we trust. For everything
else there’s data.”
Mark bought Scott’s company
What did Scott
learn from his
journey
It is easy to get distracted in the short run
And the ride is not always fun…
Value first.
2
Business models are
fluid
The world is changing
What seems
impossible today, is
reality tomorrow
Technology shift
AI – like humans & learning
AR – digital interactive layer
Blockchain – fast and transparent
Automation - Robotics
Internet of Things – everything connected
New way of life,
different value
People shift
In legal support, from expensive lawyers…
…to Do It Yourself - online
In mobility, from ownership…
…to access through BMW Drivenow - IoT
In retail shopping, from visiting the store…
…to food delivery by Amazon Fresh… - AI
In personal mobility, from waiting…
…to instant serving and comfort
In shopping, from physical 9-5 stores…
…to 24/7 shopping and delivery…
…even in your car! (by Amazon, who else?)
New needs?Designworks
1. Simplified
2. Minimized
distractions
3. Flexibility
4. Frictionless
Business
models shift
Welcome
to the
late nineties
Marc Randolph & Reed
Hastings
VHS tapes too
expensive to ship
Ship DVD’s
by mail
A linear
business model
start 1998
Business model canvas
Key partners Key activities
Key resources
Value propositions Customer relationships
Channels
Customer segments
Revenue streamsCost structure
Business Models Inc © www.businessmodelgeneration.com
USA
Mass
Market
Rental
Price
Comfort
Mail order
Network
Titles
925 DVD’s
Distri-
bution
Sales
Netflix #1
Flat fee
unlimited rentals
in 1999
Business model canvas
Key partners Key activities
Key resources
Value propositions Customer relationships
Channels
Customer segments
Revenue streamsCost structure
Business Models Inc © www.businessmodelgeneration.com
USA
Mass
Market
Price
Comfort
Mail order
Network
Titles
Distri-
bution
35.000
films
Sub
scription
1 mln DVD’s shipped
every day
Netflix #2
Personalized
video
recommendation
in 2006
Video streaming
on demand
in 2007
Business model canvas
Key partners Key activities
Key resources
Value propositions Customer relationships
Channels
Customer segments
Revenue streamsCost structure
Business Models Inc © www.businessmodelgeneration.com
USA
Mass
Market
Price
Comfort
Distri-
bution
Sub
scription
Data
Algorithm
Video on
demand Internet
TV
Netflix #3
Kevin Spacey, a new format
We were used to think in linear formats
Let’s publish in chapters all at once
The worst idea!
“Ruins our revenue model & people don’t want this”
Device and length are
irrelevant
- Kevin Spacey
People want stories… about Frank Underwood
At a reasonable price
- Kevin Spacey
NETFLIX immediately
said: YES!How did they know?
Business model canvas
Key partners Key activities
Key resources
Value propositions Customer relationships
Channels
Customer segments
Revenue streamsCost structure
Business Models Inc © www.businessmodelgeneration.com
Content
Mass
Market
Sub-
scription
Price
Acces-
ibility
Unique
content
Netflix
.com
Multiple
devicesAlgorithm
Commu-
nications
Network
IP
Cash
Content
SLA
Self Service
Rating
Product
Placement
Netflix #4
Business models
change over time
3
It’s a journey of
exploration
There are many revenue model options
Traditional revenue
models
Let’s look at 3 most common
1
Pay per product
One time transaction
Business model canvas
Key partners Key activities
Key resources
Value propositions Customer relationships
Channels
Customer segments
Revenue streamsCost structure
Business Models Inc © www.businessmodelgeneration.com
Giant
Product
sales
High
quality bike
Men
2
Freemium
Free & paid at the same time
3
Bait & Hook
Products at a low price, refills are expensive
Business model canvas
Key partners Key activities
Key resources
Value propositions Customer relationships
Channels
Customer segments
Revenue streamsCost structure
Business Models Inc © www.businessmodelgeneration.com
Nespresso
X
Razor blades Printer
cartridges
Console games
What we see today…
1
Everything as a service
Meet Dirk
A flat tire…
What’s his initial
solution?
He went to the bike repair shop
BIKING! I need to be able to bike!
Definition ‘as a service’
A move towards getting the job
done by selling the use of a
product
2
Pay per use
LIME operates as a platform through IOT
Find your LIME scooter, and ACTIVATE and RIDE
Keep track of your rides and costs
Business model canvas
Key partners Key activities
Key resources
Value propositions Customer relationships
Channels
Customer segments
Revenue streamsCost structure
Business Models Inc © www.businessmodelgeneration.com
Lime
You and me
Fee
(time &
distance)
Scooter
ride from
A to B
IoT
Platform
Fun
App
Definition ‘pay per use’
When the customer is
charged for a specific usage
of a product or service.
3
Platform
You and me…
Easy order and pick up
Clear price upfront
Review your driver
No cash to leave the cab
The driver – income opportunity
Easy pick up – no hassle
They review you too!
Easy administration
Business model canvas
Key partners Key activities
Key resources
Value propositions Customer relationships
Channels
Customer segments
Revenue streamsCost structure
Business Models Inc © www.businessmodelgeneration.com
UBER Platform
You and me
Fee
(time and
distance)
Taxi
services
from
A to B
Platform
Platform
promotion Personal
App
%
Drivers
Income
opportunit
y
Promotion
Developme
nt
Definition ‘platform’
Creates value by facilitating
exchanges between
consumers and producers.
For mobility only already a lot of options!
No single right solution
To summarize
+
1
Value over price
“Are people willing to pay”
2
Business models are
fluid
3
It’s a journey of
exploration
No single right solution
It is all about learning
Start experimenting
The sooner your learn, the sooner you succeed
Only then you will conquer the world.
Make money as quickly as you can
Be the gamechanger…
Where is value created
next?
www.businessmodelsinc.com

EIA2019Portugal - Business & Revenue Model Design & Growth - Daan de Geus