Business

Business Design for Designers and Makers

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Presentation held at Makerversity in Amsterdam specifically for designers, makers, and startups. Please contact juan.tejeda@brainsandhearts.de if you have any questions or comments.
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  • 1. BUSINESS DESIGN FOR DESIGNERS AND MAKERS
  • 2. WELCOME
  • 3. HI, I AM JUAN TEJEDA BUSINESS DESIGNER / ENTREPRENEUR
  • 4. I AM A BUSINESS DESIGNER…
  • 5. WHAT DO YOU DO?
  • 6. WE DESIGN BUSINESSES…
  • 7. ENGLISH, MOTHERF***ER. DO YOU SPEAK IT?
  • 8. DESIGN HAS BEEN CALLED: “THE INNOVATION DRIVER FOR THE FUTURE OF COMPANIES”
  • 9. “THE AGENT OF CHANGE FOR COMPANIES TO STAY AHEAD IN THE MARKET”
  • 10. DESIGN = BUSINESS STRATEGY
  • 11. MARC NEWSON JONI IVES
  • 12. MAURO PORCINI IS PEPSICO’S FIRST CHIEF DESIGN OFFICER
  • 13. BRIAN
 CHESKY JOE GEBBIA NATHAN BLEICHARCZYK
  • 14. CREATING A GREAT PRODUCT, SERVICE OR EXPERIENCE IS NOT A BUSINESS
  • 15. THIS IS HOW DESIGNERS SEE BUSINESS…
  • 16. THIS IS HOW DESIGNERS SEE BUSINESS PEOPLE… MAMI!
  • 17. IN CONTRAST, THIS IS HOW BUSINESS PEOPLE SEE DESIGN…
  • 18. HOW BUSINESS PEOPLE SEE DESIGNERS…
  • 19. CLASH OF CULTURES
  • 20. CLASH OF CULTURES: COLLABORATION UNCERTAINTY EXPERIMENTATION CALCULATED RISKS COMPETITION CERTAINTY PROVEN RESULTS MINIMAL OR NO RISK FAIL TO LEARN NO FAILURE SUSTAINABLE CONSUMABLE
  • 21. LUCKILY, THIS IS CHANGING…
  • 22. ACCORDING TO THE
  • 23. • COMPLEX PROBLEM SOLVING • CRITICAL THINKING • CREATIVITY TOP JOB SKILLS IN 2020
  • 24. MANAGEMENT CONSULTING, OTHER FINANCIAL AND IT COMPANIES HAVE WOKEN UP TO THIS FACT… CHECK OUT THEIR LATEST ACQUISITIONS:
  • 25. MANAGEMENT CONSULTANCIES FJORD LUNAR DESIGN AGILITI IDEO HEAT UBERMIND CYNERGY FAHRENHEIT 212 ACCENTURE McKINSEY DELOITTE KPMG CAP GEMINI KYU COLLECTIVE DESIGN AGENCIES/ CONSULTANCIES
  • 26. STAMFORD BGT CADIENT SEREN ROUNDABOUT BERTAFORE PWC COGNIZANT ERNST & YOUNG BAIN CAPITAL MANAGEMENT CONSULTANCIES DESIGN AGENCIES/ CONSULTANCIES ADAPTIVE PATHCAPITAL ONE SPRING STUDIOBBVA
  • 27. ECX.IO APERTO RESOURCE/AMMIRATI BRIGHTHOUSE STRATEGIC & CREATIVE DESIGNIT IBM BOSTON CONSULTING WIPRO DESIGN AGENCIES/ CONSULTANCIES MANAGEMENT CONSULTANCIES/IT/BANK
  • 28. PROFIT… B*TCH…
  • 29. WE NEED A COMMON LANGUAGE
  • 30. DESIGNED FOR: DESIGNED BY: DATE: ITERATION: Who are our Key Partners? Who are our key suppliers? Which Key Resources are we acquairing from partners? Which Key Activities do partners perform? MOTIVATIONS FOR PARTNERSHIPS Optimization and economy Reduction of risk and uncertainty Acquisition of particular resources and activities What Key Activities do our Value Propositions require? Our Distribution Channels? Customer Relationships? Revenue streams? CATEGORIES Production Problem Solving Platform/Network For what value are our customers really willing to pay? For what do they currently pay? How are they currently paying? How would they prefer to pay? How much does each Revenue Stream contribute to overall revenues? TYPES Asset sale Usage fee Subscription Fees Lending/Renting/Leasing Licensing Brokerage fees Advertising FIXED PRICING List Price Product feature dependent Customer segment dependent Volume dependent DYNAMIC PRICING Negotiation (bargaining) Yield Management Real-time-Market What are the most important costs inherent in our business model? Which Key Resources are most expensive? Which Key Activities are most expensive? IS YOUR BUSINESS MORE Cost Driven (leanest cost structure, low price value proposition, maximum automation, extensive outsourcing) Value Driven (focused on value creation, premium value proposition) SAMPLE CHARACTERISTICS Fixed Costs (salaries, rents, utilities) Variable costs Economies of scale Economies of scope What Key Resources do our Value Propositions require? Our Distribution Channels? Customer Relationships? Revenue Streams? TYPES OF RESOURCES Physical Intellectual (brand patents, copyrights, data) Human Financial Through which Channels do our Customer Segments want to be reached? How are we reaching them now? How are our Channels integrated? Which ones work best? Which ones are most cost-efficient? How are we integrating them with customer routines? CHANNEL PHASES Awareness How do we raise awareness about our company’s products and services? Evaluation How do we help customers evaluate our organization’s Value Proposition? Purchase How do we allow customers to purchase specific products and services? Delivery How do we deliver a Value Proposition to customers? After sales How do we provide post-purchase customer support? For whom are we creating value? Who are our most important customers? Mass Market Niche Market Segmented Diversified Multi-sided Platform What value do we deliver to the customer? Which one of our customer’s problems are we helping to solve? What bundles of products and services are we offering to each Customer Segment? Which customer needs are we satisfying? CHARACTERISTICS Newness Performance Customization “Getting the Job Done” Design Brand/Status Price Cost Reduction Risk Reduction Accessibility Convenience/Usability What type of relationship does each of our Customer Segments expect us to establish and maintain with them? Which ones have we established? How are they integrated with the rest of our business model? How costly are they? EXAMPLES Personal assistance Dedicated Personal Assistance Self-Service Automated Services Communities Co-creation BUSINESS PLAN EXECUTIVE SUMMARY THE TEAM • Management Profile • Why are we a winning team THE BUSINESS MODEL • Vision • Mission / Values • How our Business Model works • Value Proposition • Target Markets • Marketing Plan • Key Resources and Activities FINANCIAL ANALYSIS • CVP Analysis / BEP Analysis • Sale Scenarios and Projections • Capital Spending • Operating Costs • Funding Requirements EXTERNAL ENVIRONMENT • The Economy • Market Analysis / Key Trends • Competitor Analysis • Competitive Advantage IMPLEMENTATION ROADMAP • Projects • Milestones • Roadmap RISK ANALYSIS • Limiting Factors and Obstacles • Critical Success Factors • Specific Risks and Countermeasures CONCLUSION ANNEXES ALEX OSTERWALDER ST.GALLEN
  • 31. MORE VISUAL
  • 32. MORE INCLUSIVE
  • 33. MORE FLEXIBLE AND INTUITIVE
  • 34. “Oh, I am going to start (this or that) business and it will be awesome. It will be great…” SOUNDS FAMILIAR?
  • 35. AFTER THE LAUNCH… “NO BUSINESS PLAN SURVIVES FIRST CONTACT WITH A CUSTOMER” – STEPHEN BLANK
  • 36. MOST BUSINESSES (STARTED BY ANYBODY, DESIGNER OR NOT) HAVE A 96% CHANCE TO FAIL WITHIN THE FIRST FIVE YEARS. REALITY CHECK: We only hear the stories about those who made it and not the majority that failed.
  • 37. DON’T RELY IN FAITH MAMI!
  • 38. WANTREPRENEURS…
  • 39. JUMP WITH CONFIDENCE
  • 40. WHAT ABOUT ME? WHAT DO I NEED TO DO/LEARN?…
  • 41. 1. LEARN ABOUT BUSINESS At least the basics…
  • 42. GO BACK TO SCHOOL AND GET A DEGREE LYNDA.COM / COURSERA / UDACITY MAKE AN ONLINE COURSE ABOUT BUSINESS BASICS DO SOME READING MASTER IN BUSINESS ADMINISTRATION MASTER IN BUSINESS DESIGN MASTER OF BUSINESS & DESIGN
  • 43. 2. TEAM UP! You will not a “the business guy” from one day to the next. Find people to work with you.
  • 44. Find people with a different skill set than yours. Start understanding and sharing different points of view.
  • 45. 3. PLAN YOUR BUSINESS, 
 INSTEAD OF A BUSINESS PLAN Start believing in validated 
 data and not gut feelings.
  • 46. DESIGNED FOR: DESIGNED BY: DATE: ITERATION: Who are our Key Partners? Who are our key suppliers? Which Key Resources are we acquairing from partners? Which Key Activities do partners perform? MOTIVATIONS FOR PARTNERSHIPS Optimization and economy Reduction of risk and uncertainty Acquisition of particular resources and activities What Key Activities do our Value Propositions require? Our Distribution Channels? Customer Relationships? Revenue streams? CATEGORIES Production Problem Solving Platform/Network For what value are our customers really willing to pay? For what do they currently pay? How are they currently paying? How would they prefer to pay? How much does each Revenue Stream contribute to overall revenues? TYPES Asset sale Usage fee Subscription Fees Lending/Renting/Leasing Licensing Brokerage fees Advertising FIXED PRICING List Price Product feature dependent Customer segment dependent Volume dependent DYNAMIC PRICING Negotiation (bargaining) Yield Management Real-time-Market What are the most important costs inherent in our business model? Which Key Resources are most expensive? Which Key Activities are most expensive? IS YOUR BUSINESS MORE Cost Driven (leanest cost structure, low price value proposition, maximum automation, extensive outsourcing) Value Driven (focused on value creation, premium value proposition) SAMPLE CHARACTERISTICS Fixed Costs (salaries, rents, utilities) Variable costs Economies of scale Economies of scope What Key Resources do our Value Propositions require? Our Distribution Channels? Customer Relationships? Revenue Streams? TYPES OF RESOURCES Physical Intellectual (brand patents, copyrights, data) Human Financial Through which Channels do our Customer Segments want to be reached? How are we reaching them now? How are our Channels integrated? Which ones work best? Which ones are most cost-efficient? How are we integrating them with customer routines? CHANNEL PHASES Awareness How do we raise awareness about our company’s products and services? Evaluation How do we help customers evaluate our organization’s Value Proposition? Purchase How do we allow customers to purchase specific products and services? Delivery How do we deliver a Value Proposition to customers? After sales How do we provide post-purchase customer support? For whom are we creating value? Who are our most important customers? Mass Market Niche Market Segmented Diversified Multi-sided Platform What value do we deliver to the customer? Which one of our customer’s problems are we helping to solve? What bundles of products and services are we offering to each Customer Segment? Which customer needs are we satisfying? CHARACTERISTICS Newness Performance Customization “Getting the Job Done” Design Brand/Status Price Cost Reduction Risk Reduction Accessibility Convenience/Usability What type of relationship does each of our Customer Segments expect us to establish and maintain with them? Which ones have we established? How are they integrated with the rest of our business model? How costly are they? EXAMPLES Personal assistance Dedicated Personal Assistance Self-Service Automated Services Communities Co-creation BUSINESS PLAN EXECUTIVE SUMMARY THE TEAM • Management Profile • Why are we a winning team THE BUSINESS MODEL • Vision • Mission / Values • How our Business Model works • Value Proposition • Target Markets • Marketing Plan • Key Resources and Activities FINANCIAL ANALYSIS • CVP Analysis / BEP Analysis • Sale Scenarios and Projections • Capital Spending • Operating Costs • Funding Requirements EXTERNAL ENVIRONMENT • The Economy • Market Analysis / Key Trends • Competitor Analysis • Competitive Advantage IMPLEMENTATION ROADMAP • Projects • Milestones • Roadmap RISK ANALYSIS • Limiting Factors and Obstacles • Critical Success Factors • Specific Risks and Countermeasures CONCLUSION ANNEXES Make this an iterative process until it works…
  • 47. PRODUCT DATA IDEAS Keep doing Lean…
  • 48. YOUR STARTUP IS NOT A SMALLER VERSION OF A BIGGER COMPANY. REMEMBER:
  • 49. MOST DESIGNERS FAIL TO UNDERSTAND THAT THE PURPOSE OF BUSINESS IS TO MAKE A: PROFIT
  • 50. “Greed is good” – Gordon Gekko, 1987 ASSOCIATED STIGMA:
  • 51. ASSOCIATED STIGMA: MODERN SLAVERY THWARTING OF PUBLIC POLICY CHILD LABOR HUMAN EXPLOITATION DESTRUCTION OF THE ENVIRONMENT SCAMS AND THEFT GAMBLING WITH OTHER PEOPLE’S MONEY LOBBYING POLITICIANS DESTROYING COMMUNITIES…
  • 52. …AND AGAIN IN THE 2008 WORLD FINANCIAL CRISIS
  • 53. …AND AGAIN IN THE WELLS FARGO SCAM IN 2015…
  • 54. “IF CORPORATIONS WERE TO BE CONSIDERED PEOPLE, MOST OF THEM WOULD HAVE THE PERSONALITY TRAITS OF A PSYCHOPATH” – Documentary “The Corporation” (2003)
  • 55. REALITY CHECK: Business itself is not to be blamed for it. ULTIMATELY, THESE ARE ATROCITIES CAUSED BY THE GREED OF THE PEOPLE RUNNING THE BUSINESS.
  • 56. CONSIDER THESE COMPANIES…
  • 57. BUY THEIR PRODUCTS ONLY IF YOU REALLY NEED THEM
  • 58. MADE OUT OF RECYCLED PLASTIC FROM THE OCEAN
  • 59. RECYCLED PAPER PRODUCTS SHADE-GROWN COFFEE GREEN BUILDING STANDARDS FAIR TRADE COFEE
  • 60. GOOGLE ECOSYSTEM AND THEIR INITIATIVES AROUND THE WORLD, INCLUDING FREE INTERNET FOR 3RD WORLD COUNTRIES.
  • 61. i
  • 62. FIGHTING THE CHOCOLATE INDUSTRY ONE BAR AT A TIME TO RID IT OF MODERN SLAVERY
  • 63. BUSINESS IS GOOD, IF IT CREATES VALUE FOR BOTH COMPANIES AND PEOPLE IN A RESPONSIBLE AND SUSTAINABLE WAY.
  • 64. WIN-WIN
  • 65. BUSINESS IN PURSUIT OF PROFIT STILL OFFERS THE BEST HOPE OF ADDRESSING MANY OF MANKIND’S MOST DEEPLY ROOTED PROBLEMS. (Conscious Capitalism)
  • 66. IT IS OUR RESPONSIBILITY TO CREATE BETTER BUSINESSES, THAT ARE SUSTAINABLE AND FAIR FOR EVERYONE. DESIGN IS INFLUENCING THE BUSINESS LANDSCAPE LIKE NEVER BEFORE…
  • 67. OK MOTHERF***ER, TELL ME… WHAT BUSINESS DESIGN IS…
  • 68. WE DESIGN NOT ONLY THE PRODUCTS, SERVICES AND EXPERIENCES, BUT ALSO THE BUSINESS ITSELF, COMBINING: DESIGN THINKING + BUSINESS CONSULTING + LEAN STARTUP METHODOLOGIES
  • 69. HUMAN-CENTRED APPROACH
  • 70. USE OF VISUAL THINKING 
 AND STORYTELLING
  • 71. WORK AND CO-CREATE COLLABORATIVELY
  • 72. REFINE THROUGH ITERATIONS AND VALIDATED DATA
  • 73. KEEP A HOLISTIC PERSPECTIVE
  • 74. WE WANT TO CREATE BUSINESS VALUE FOR COMPANIES AND FOR PEOPLE, BY CHANGING BUSINESS FROM THE INSIDE OUT.
  • 75. LIKE NEVER BEFORE IN HISTORY, YOU HAVE THE CHANCE 
 TO CHANGE BUSINESS FOR 
 THE BETTER.
  • 76. TAKE IT.
  • 77. THANK YOU.
  • 78. Ahhh… Just one more thing…
  • 79. BUSINESS DESIGN JAM www.businessdesignjam.org
  • 80. THANK YOU!
  • 81. www.brainsandhearts.de
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