iPower: Business Model Builder cards

Mrs. do-the-right-thing

Lifestyler

She cares about the environment, but within reason and with an eye to practicality. She is interested in energy savings for the benefit of society and the environment and to save a little money, but she has a low interest in technology.

She used to care more about the environment, but now she finds it hard to find the time and resources to prioritize it in a family with 2 small kids and 2 full-time jobs. Therefore, she now prioritizes convenience in everyday family life higher e.g. by commuting by car to work.

Autonomous Sceptic

Rational Man

The environment only concerns him if it can lead him to a good deal! The local community is very important, both for social wellbeing and for solving everyday challenges. He is mostly interested in technology he can use and repair himself, with a “self-sufficiency” mindset.

An economically oriented rational optimizer of the resource consumption of the entire family. He tracks the energy consumption of the household – to find and avoid waste in general. He’s interested in finding new technology that can help him identify saving potentials.

Lead Technologist

Technology shy

The lead technologist engages in and contributes to the technological development for societal development and to develop his professional skills. Economic incentives are of less importance, but experimenting with and developing new technology interest him – but not his family.

The technology-shy does what she can to avoid new, unfamiliar technology in her home. She is rather sceptic towards climate change and other environmental aspects and has little interest in changing habits. Whenever technology breaks down, she ask her younger relatives to help her.

Installation contractor He is technically skilled and highly interested in craft-relevant technology, of which he has strong opinions and is often among the early adopters. With no particular interest in the environment, he focuses on improving the comfort of him and his customers in the most cost effective way.

Prosumption optimizers Having missed the net metering agreement, the presumption optimizers are annoyed whenever their PVs produce more electricity than they consume. It is a question of avoiding waste, but it also becomes a sport for them to see how much they can utilize their own production – and save.

Customer incentives

What kinds of â&#x20AC;&#x2DC;pushâ&#x20AC;&#x2122; in the market are important for selling the solution?

What are the benefits / effects that the customer expects of this solution?

Journey stages

What are the (most important) journey stages?

Can we influence every stage?

Touch points and stakeholder map

What are the touch points in each stage?

Who are the stakeholders and how do they influence the touch points?

Actions, thoughts and feelings

How and from whom will you gather the data needed in the customer journey?

Do the customer experiences correspond to the customer incentives?

Question:

Moments of truth

In what touch points do moments of truth occur?

What stakeholders influence these touch points?

Improve and innovate

How can you accommodate bad experiences and/or commercialize on great experiences?

Who can you ally with to improve the bad customer experiences?

Awareness

“I have become aware that this solution is a real alternative in that it…”

“My neighbors, friends and colleagues ask me what we use and how it works…“

Purchase

“I don’t know much about it, so I stick to the brands I know and lean on someone who has tried it before … “

“I have called various dealers and I’m astonished by the price difference for identical solutions …”

Question:

The user says:

Question:

The user says:

Installation

“The installer wasn’t even from the company where we bought the solution …”

“I noted that the installer started by reading the manual and calling his boss. That makes me uncertain …”

Operation

“I find it hard to adjust the solution to fit exactly my needs …”

“I have been told there are experts who can help me optimize my solution. But does that mean something more I have to pay for?”

Service

“It confuses me that the various professionals have different suggestions for how to best use the solution …”

“I try to learn how to use the solution, how it works and what my options are, but I don’t feel I am getting the help I was promised …”

The user says:

Value proposition

Product

Service

Note: The value proposition is a manufactured product. Could be produced or just sold, but it is merely the product.

Note: The value proposition is mainly based on services.

Value proposition

Product/service

Trading

Note: The value proposition is a combination of a physical product and enclosed or stand-alone service.

Note: The value proposition is based on trading with products or services.

Value proposition

Media / content production

Education / training

Note: The offering is mainly content for media or other social interaction media.

Note: The offering is mainly educationally based. Could be either educational material, digitally based learning, or other ways of knowledge transfer.

Value proposition

Logistics and infrastructure

Events

Note: The offering is to take care of the customerâ&#x20AC;&#x2122;s logistic and/or infrastructure demands

Note: The offering is event-based. It happens occasionally, might only be one single time, or recurring. Might involve one customer or multiple customers, streets, neighbourhood, etc.

Value proposition

Research and development

Sales of knowledge and consultancy

Note: The offerings take care of research and development for the customer. This might be part of a project or turn-key delivery.

Note: Could be information on detected improvement possibilities at the customer’s premises, based on internal knowledge, big data, visits etc. From infotainment spanning to direct consultancy projects.

Value proposition

Arts and crafts

Platform

Note: The value for the customer is of artistic value, but could be static, event-based, virtual, physical or a service and stretching into entertainment.

Note: The offering is a platform where the customer is able to meet a bunch of different value propositions. The platform can be physical, virtual, recurring or single occurrence, but is more than just a single offering. It is a platform where several different value propositions are offered. (More details in the deck of cards named “platform”).

Value proposition

Theme:

Note:

Customer segment

Type: Singles

Type: Families

Customer segment

Type: Organisation

Age: 0-12 years Or SMEs below 25 employees

Customer segment

Age: 13-18 years Or SMEs below 100 employees

Age: 19-25 years Or SMEs (from 0-250 employees)

Customer segment

Age: 26-40 years Or Larger corporations

Age: 41-60 years

Customer segment

Age: 61+ years

Gender: Male Or In company: Specific department

Customer segment

Gender: Female Or In company: CEO, COO

Gender: Does not matter Or In company: could be anyone

Customer segment

Location: Urban

Location: Rural district

Customer segment

Location: Islands or otherwise remote areas

Location: Do no matter

Customer segment

Physical expression: shared housing

Physical expression: real estate â&#x20AC;&#x201C; villa, terraced house, town house

Note: Scouts, NGO, leisure centre, village or meeting hall

Customer segment

physical expression: Company

physical expression: Flat

Customer segment

Theme:

Note:

Customer value

Managing tasks: Efficiency

Managing tasks: Task of the customer is solved in a new way / or more tasks solved concurrently in a new way

Note: The customers achieve a higher level of efficiency in their business or at home

Note: The job of the customer is handled in a new and better way, and/or more jobs are addressed concurrently, relieving the customer of a burden

Customer value

Managing tasks: Simplification

Emotional value: Art

Note: It has become easier to do certain things / to get the tasks done.

Note: The value is merely of artistic value.

Customer value

Economic value: Save energy / Save money

Emotional value: Security and safety

Note: Certain tasks are optimized or managed in a way that uses less resources and by that save money for the customer (could be short term or long term)

Note: Feed information to the customer to make the customer feel less insecure when using this offer. Could be regarding real threats such as theft, but as well nature related, accidents, lack of knowledge, etc.

Customer value

Managing tasks: A more easy way to get things done

Economic value: Help the customer earn money

Note: Helping the customer get a job done in a more easy way, be it automatically, digitally or manually â&#x20AC;&#x201C; the customer sees it as an easier way to handle his job/life/situation

Note: While using this value proposition the customer is able to earn money that he would not be able to else.

Customer value

Emotional value: Eliminate / reduce risk

Managing tasks: Wider scope / several tasks

Note: Protect the customer against a defined risk

Note: Tasks can be solved simultaneously that were managed discretely before.

Customer value

Economic value: Using energy in a better way

Emotional value: Remove a problem or issue

Note: The customer is being helped to use the same amount of energy in a better way. E.g., get better comfort, get more benefit, higher profit etc.

Note: Help remove something that irritates the customer, fixing a problem, either short or long-term.

Customer value

Social benefit: Branding

Social benefit: Interaction with others

Note: Help the customer support a desired image or brand by taking care of the issues around this.

Note: Help the customers with maintaining or implementing relationships, network or other social interaction to benefit the customer.

Customer value

Social benefit: Learning / knowledge / education

Social benefit: Entertainment / home entertainment

Note: Gives the customer a possibility to obtain more knowledge on a given subject. Either direct or in-direct.

Note: B2B : Ensure some sort of workplace entertainment, employee benefit, service etc. B2C : Delivering and/or maintaining home entertainment, be it equipment, channels, service etc.

Customer value

Social benefit: Desire for better environment

Social benefit: Healthcare

Note: Helping the customer protect his environment either in small or larger scale.

Note: Helping the customer with healthcare related issues, covering the whole scale of knowledge, training, health, comfort, support for treatment, childcare etc.

Customer value

Social benefit: NGO

Theme:

Note: Supporting a NGO or other not-for-profit organization, or the customerâ&#x20AC;&#x2122;s participation in this. Example: donate you excess power to the power-less families. (Families that struggle to pay the bills from the power plant)

Note:

Customer value Theme: Note:

Customer-relations

Web 2.0 based relations

Guaranteed availability

Note: Social interaction on digital media.

Note: Like Hilti Fleet Management takes care of all in relation to the use of their tools, the term applies to ”mission critical” tasks e.g. in the oil industry, where downtime is much more expensive than service contracts, etc.

Customer-relations

Experience selling

Customer loyalty : Systems to keep customers in-house

Note: You might think you buy a product when you buy a Harley Davidson motorbike, but actually, you buy a lot more. (Training, tours, lifestyle, clothing, etc.)

Note: Buy 10 - get one for free, collecting stamps, clubs, credit cards, if you do not stay there, you will lose something, often a rebate etc.

Customer-relations

Solution Provider

From push to pull

Note: One stop shop – whatever your customers want, you can deliver (might be in a certain area, or to certain activities, or for a whole business….).

Note: Let the customers tell you (or show by buying) what they want, and then make it, and react fast. Zara (clothing) reacts extremely fast compared to the rest of the competitors, giving customers what they ask for. Buying clubs, Muuse - the Danish fashion designer – they produce the clothing when enough have signed up.

Customer-relations

Gamification

Subscriptions

Note: Use internal and external motivation, fun, gaming elements.

Note: Subscriptions that keep running and are supported by close relationship between customer and producer.

Customer-relations

Club/member based

Theme

Note: Membership, either free or at a cost â&#x20AC;&#x201C; the important part is what you get as a member.

Note:

Customer-relations Theme Note:

Market

Mass market

Niche / segment

Market

Diversified

Platform

Note: Different products for different customer groups.

Note: (See later card deck for more choices in platforms).

Market

Theme:

Note:

Value stream

Crowdfunding

Rent instead of buying

Note: Using platforms as Kickstarter, Indiegogo to both test your idea and search for money.

Note: Either as normal renting or we-economy.

Value stream

Cash Machine

Direct selling

Note: Have a business that lives from the interest rate and/or in other ways is part of a larger cash flow where just a small fraction is enough to live on.

Note: Like Dell - direct selling between the producer and the customer.

Value stream

Subscription

Barter : Legal barter of goods

Note: Pay per hour, day, week, month, yearâ&#x20AC;Ś

Note: Could be with non-monetary values like brands, postings on social media, likes, promotion of each otherâ&#x20AC;&#x2122;s products, etc. More difficult when tax-issues are to be taken into account, but not impossible.

Value stream

Freemium -> premium

Pay what you want

Note: Often many customers get it for free, and a minor group pay a premium fee.

Note: A model that asks for voluntary donations.

Value stream

Pay per use

Auction

Note: The most famous are aircraft engines by Rolls Royce, but also movie streaming, rent a car, bike etc.

Note: A lot of webpages (ebay as the most prominent) have an auction model.

Value stream

Flat rate

Target the Poor

Note: Like the way most cell-phone subscriptions are made. You know what to pay today and tomorrow.

Note: Many customers at a low price, as opposite to few customers at a high price.

Value stream

Self-service

Fractional Ownership: Wee-economy / time share

Note: Self-service petrol, top up, cafeteria online banking, etc.

Note: Ownership is spread out on a broad customer base, making a higher price product possible.

Value stream

Open Source

Robin Hood

Note: Money is earned on service and support activities, whereas the software itself is for free, or very cheap.

Note: Sell expensively to the wealthy, cheaply to the broad masses or poor people. Like companies donate money whenever you buy one of their products, or new type of medicine where a lower margin is accepted in some countries.

Value stream

Hidden Revenue

Razor and blade

Note: Youtube film channels, Facebook. Double business models: Ad-Word & Google Search

Note: You sell the razor at a low price, and when you have customer â&#x20AC;&#x153;lock-inâ&#x20AC;? you sell the blade at a high price. The same with inkjet printers, and cellphone subscriptions some time ago.

Value stream

Lock-in

Performance-based contracting

Note: High switching costs. You help the customer to get well accustomed to your product and ensure that a switch over is expensive or in other ways requires a lot of resources. (The downfall is that when customers switch, they are hard to get back).

Note: You are paid for what you really deliver. A machine is delivered for free, but for every single item made on it, the user pays a fraction. A French teacher is paid for every word his pupils say in French, not like normally by the hours he teaches.

Value stream

Theme:

Note:

Platform

Supermarket

Integrator

Note: You develop a platform where other companies can introduce their value propositions to a broad or selected customer group. You get your share either as a part of the sales that take place, or by hosting a place where a lot of people pass by. (Ads, Big data, cross sale, etc.)

Note: You integrate the necessary amount of companies to constitute a total system/one stop shop for your customers that can solve the whole task.

Platform

Revenue sharing

Shop in shop

Note: You build or support a platform where multiple suppliers offer a broader market for the customers. Like Apple’s or Google’s App stores. And you all share the revenue.

Note: You can either be the provider of the platform where others can have their mini-shop, or you can provide the mini-shop with your products to others.

Platform

User Design

Peer to Peer

Note: Help the customers either in direct co-creation, or by supporting their developing process (prototyping, workshops, classes, shops with materials, communication platforms.)

Note: Building a platform where users can interchange something (examples are Instagram, “Den blå avis”, eBay), and a growing market in we-economy (Uber, Airbnb, Task rabbit etc.).

Platform

Two-side Market

Long tail

Note: Two distinct user groups who provide each other with network benefits. A way to solve the “chicken-and-egg” issue. E.g., Credit cards. The more customers who have a certain credit card brand, the more shops will accept them, and the more shops that accept it, the more customers will want that type of card.

Note: Having a strategy of selling a large number of unique items with relatively small quantities sold of each item — usually in addition (or opposition) to selling fewer popular items in large quantities

Platform

Franchising

E-commerce : online channels

Note: Can be both the one having the concept and the one buying into. (A well-known example is McDonaldâ&#x20AC;&#x2122;s)

Note: Creating sales, contacts and relationship via online media, social fora etc.

Platform

Leverage Customer Data

Theme:

Note: Either as a producer, collector or interpreter of the data. Could be the sole business or part of another business where data is generated as a sub-process.

Note:

Platform Theme: Note:

Partner / value chain

Orchestrator

Partnership of resources

Note: Having focus on all or part of the core competencies, other parts are outsourced, but controlled in a tight network of partnership.

Note: A group or network of partners join forces regarding resources. Sharing knowledge or ability to use each otherâ&#x20AC;&#x2122;s waste as input to own process for mutual benefit.

Partner / value chain

Jointly purchase

Marketing partner

Note: Sharing cost of purchase in group or network. Could be driven by all, or by one. Revenue could be shared according to several different schemes.

Note: Partnership regarding a mutually beneficial approach by helping a partner doing marketing, and vice versa. Maybe based on complementary products or access to different markets.

Partner / value chain

Consortium

Joint venture

Note: A larger group of companies collaborate towards a common goal.

Note: A business agreement in which the parties agree to develop a new entity with a goal that can be reached only by their joined forces.

Partner / value chain

Strategic alliance

Affiliation : Sales-partner

Note: A cooperation that lies between mergers and acquisitions and organic growth. Strategic alliances occur when two or more organizations join together to pursue mutual benefits, but stay as two entities.

An affiliate is a commercial entity formed as a relationship with a peer or a larger entity â&#x20AC;&#x201C; usually with one large organization that only possesses a minority share of a smaller company.

Partner / value chain

Cross-selling

Outsourcing â&#x20AC;&#x201C; sourcing

Note: Selling more value propositions to the customer than the one on stake now. Could be closely related service or product, or merely related by the presence of the supplier, based on knowledge not sold before, big data access etc.

Note: Getting a supplier to take care of a specific area. Normally â&#x20AC;&#x153;non-coreâ&#x20AC;? areas, but could also be a well-defined part of core business

Partner / value chain

Shared R&D

Crowdsourcing

Note: Share the R&D effort. Could be between parts that are in totally different market, but as well between companies in a local cluster that see competitors in a more global view.

Note: Crowdsourcing is often used to subdivide tedious work, often through digital media. Examples could be picture recognition (App like Vivino) or CPU sharing in astronomical computing.

Partner / value chain

The Customers are sole creators or co-creators

The Customers are co-creators

Note: The open source systems like Fablabs and technologies like 3D printing put the private individual as a creator in the center. There is still a need for a lot of facilitation processes around it, though.

Note: As co-creator the customer can be a sort of free-lance developer like at LEGO, or in the more traditional user driven innovation. There is often a very solid community around it all.

Partner / value chain

Theme

Note:

Specialisation

Ingredient Branding

Digitisation/Virtual offerings

Note: The branding is highly focused on certain aspects of the offering. The â&#x20AC;&#x153;Intel Insideâ&#x20AC;? branding campaign is an example on how Intel gets branding on computers, where otherwise it is difficult to see which brand CPU is inside the PC.

Note: Traditional manual services are converted to digital services and are offered on the web, smartphones, social media, etc.

Specialisation

Add-on : Standard product with extra acquisitions

White Label : OEM

Note: The offering has a base of standard products / services, and on top of this is a choice of add-on offerings that typically have a premium price.

Note: You sell to another vendor that puts his brand and name on the product. Could be re-seller as well as system integrator as other manufacturing companies and bought-in service providers.

Specialisation

Ultimate Luxury

Trash to Cash : Working up throw-away products and materials up to new sales.

Note: Your offering is in the luxury business and probably in the higher end of value and price.

Note: You save on the material costs, and environment footprints.

Specialisation

Mass customization

No Frills

Note: Your production and logistic lines are able to customise offerings so that every customer believes he gets a very customized product even though it might have a lot of similarities with other customer choices.

Note: Core services cut to the bone ( Wal-Mart, Netto, Aldi ).

Specialisation

Reverse innovation : products developed for developing countries are transferred to developed countries

Licensing: IPR licenser

Note: E.g., washing machines on the Chinese market are based on few models, with very rugged design. Whereas European companies develop products targeting luxury and a lot of functionality and different product lines.

Note: You earn the profit by licensing knowledge, patents etc. to other companies OR you benefit from research in other companies by buying into their IPR (and maybe selling part of this to third parties).

Specialisation

Co-creation

Reverse engineering : Copy cat / fast follower - “Second mouse gets the cheese”.

Note: You create the offering together with customers. This can be done simultaneously in the consuming process or merely in the developing process.

Note: Don’t try to create a market yourself – whenever anybody else has paved the road you develop the right product and have a much higher hit-rate. E.g., Amazon, Singer sewing machine, vacuum cleaner/ hoover, Google AdWords.

Specialisation

Theme:

Note:

Situation

Traditions, norms etc.

Paralysing

Note: Select, describe or discuss the traditions, customs and habits applicable in this area? What are the norms, cultural standards, frozen politics (we do it THIS way), etc. Any of these we need to face?

Note: Which areas do we not see clearly? Where do we think we have the whole picture, though we might not..?

Situation

Breaking the norms

What “Jobs” does a customer need to get done during the day?

Note: What attitudes, prejudices, opinions etc. underlie the present state? What should one do to be considered as one breaking the norms?

Note: Job as in something the customer already does, wants to be able to do, wants to do better etc. The “job” is something you either could hire another person to do or get something that could help you to do better.

Situation

What is good about the situation as it is now ?

Theme:

Note: What is not as perfect about it now? Make a list with 10 in each, and ensure you keep the good ones - and innovation on the bad list.

Note:

Situation Theme: Note: