Let’s Create a Business Model – but HOW?!
– Why is business modelling so important?
– How do I find the right business model and which traps might I encounter?
– How do big companies like Spotify or Nespresso evolve their business models?
– And most importantly: What is the right business model for my startup?
Patrick told us to think like a designer, be creative, think about what the core of your business model canvas is, and do not to fall in love with the first option you create while looking at your business model canvas. He basically said: “Do not limit yourself and always be open to challenge yourself!”
While giving the teams input for their models, such as freemium models and the challenges of a two-sided marketplace, he emphasized the element of your vision when creating your business model. Meaning, where do I want to go, what is my core value proposition and how does it fit in my business context and environment?
Dealing with a lot of valuable input, Patrick provided us with some real life examples helping the teams digest the information easier. Practical and informative, Patrick explained how Spotify built their business model around the concept of “user access vs. ownership” and how that still can create challenges in a freemium model, or how Nespresso has been able to create a stunning Customer Relationship Management and became therewith a relevant item for its customers. Among others, the startups took away that – no matter if you are a recently founded startup or a well established corporate – business model generation and rethinking your business challenges never stops. The importance to always review yourself and your business model (especially as a startup) in order to “understand the rules of the business game” are crucial for your long-term success.
Monday – Are You Ready for Customers?
Jeroen Tjepkema, founder of Measure Works, held a session about how fundamental measurement of web pages can be for a company. Established in the market and working with large companies such as Phillips and ING, Measure Works focus on performance. According to Jeroen, every website should have a goal – business model – and a user experience that will be valuable to the customer. After that, the measurements can be developed.
Jeroen explained “How we perceive interaction”. That means the speed and availability of every page on a website. For example, take a booking website. On the one hand, the customer will understand if the search page takes some time to load (“thinking”). On the other, the same customer will be impatient if the booking page doesn’t load faster than the previous one. That’s why he perceives every page in a different way, depending on the function of the same.
“Flow is an optimal experience that is intrinsically enjoyable. Be fast and be reliable!”
Valuable advice was given such as: optimize your website in every platform (mobile, tablet, desktop); prioritize your business goals (see what fits there and what looks good); focus on task completion (interview users) and target your audience. Finally, Jeroen shared tools which help the measurement of a web page: the real user performance measurement toolkit with everything you need to measure your website:
Synthetic Monitoring: shows if the site is working or not
Real User Monitoring: how many users are there affected by bad performance?
Real User Benchmarking: gives you periodic insight in real usage scenarios
Performance Surveys and Heat Maps: gives you periodic insight in task completion issues.
“Performance IS a requirement”
Thursday – New Models of Ownership & the Access Economy
Thursday was a super interesting day at Startupbootcamp, when Aldo de Jong from Claro Partners came straight from Barcelona for an amazing workshop on the seven design guidelines. The day had two stages. The first consisted in a short presentation of the company, their work and Participatory Service Networks, followed by a workshop on “Designing services for the sharing economy” during which the startups tried to come up with a value proposition of their network to create a community of users. Based on some hand outs the teams we asked to sketch out the network, design the user experience, design the network and consider it’s growth, design their role and partners, refine the service and value proposition. The second stage also involved a presentation about starting with the real needs of people and enabling them to do things they’ve never been able to do before by addressing both functional and emotional needs and building trust. The workshop involved using the tool developed by Claro Partners for the personal data economy landscape.
Claro Partners helps corporations and startups navigate disruptive shifts in society and business and creates tools on how to create new business models and services. It does not come as a surprise that corporations are actually not ready yet to bring this to the market. The new models of ownership are disruptive, more complex and involve exchange between peers. But what are Participatory Service Networks and why should we even attend a workshop on this? PSMs are systems where value is co-created and exchanged (in a distributed way) by a network of participants. Network effects make PSNs more sustainable, effective and resilient and allow them to grow very fast. Aldo explained that there are four main types of value that is exchanged in PSNs: Connections, Knowledge, Competencies and Resources.
How do you create a compelling PSN experience? First of all, you have to motivate people to join and contribute out of self-interest. Bear in mind the simple example of Microsoft Encarta that couldn’t compete with Wikipedia. Once you have achieved this, start creating trusted comfort zones to encourage collaboration and sharing and try to integrate institutional and lived expertise.
Always ask yourself “who are my first 10-100 people in my network who will exchange value together?”, then you start stimulating the growth, delegating responsibilities, and let it fragment in subgroups to grow. Talk to the customers all the time and keep wondering “what role am I playing and what other players do I want to involve to make a better network experience”?
If you are interested in more details from this workshop, you can check out the presentation, audio included.