Business Model You - Timothy Clark - E-Book

Business Model You E-Book

Timothy Clark

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Beschreibung

A one-page tool to reinvent yourself and your career The global bestseller Business Model Generation introduced a unique visual way to summarize and creatively brainstorm any business or product idea on a single sheet of paper. Business Model You uses the same powerful one-page tool to teach readers how to draw "personal business models," which reveal new ways their skills can be adapted to the changing needs of the marketplace to reveal new, more satisfying, career and life possibilities. Produced by the same team that created Business Model Generation, this book is based on the Business Model Canvas methodology, which has quickly emerged as the world's leading business model description and innovation technique. This book shows readers how to: * Understand business model thinking and diagram their current personal business model * Understand the value of their skills in the marketplace and define their purpose * Articulate a vision for change * Create a new personal business model harmonized with that vision, and most important, test and implement the new model When you implement the one-page tool from Business Model You, you create a game-changing business model for your life and career.

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Contents

Canvas

Chapter 1: Business Model Thinking: Adapting to a Changing World

Let’s take a wild guess: You’re reading this book because you’ve given some thought to changing your career.

Chapter 2: The Business Model Canvas

Every Organization Has a Business Model

The Harsh Truth

The Nine Building Blocks

Customers

Value Provided

Channels

Customer Relationships

Revenue

Key Resources

Key Activities

Key Partners

Costs

Now It’s Your Turn

My Organization’s Business Model

craigslist’s Business Model

Chapter 3: The Personal Business Model Canvas

The Personal Business Model Canvas

Your First Personal Business Model: Drafting time!

A Personal Story for Every Building Block

Key Resources: (Who You Are/What You Have)

Key Activities: (What You Do)

Customers: (Who You Help)

Value Provided: (How You Help)

Channels: (How They Know You/How You Deliver)

Customer Relationships: (How You Interact)

Key Partners: (Who Helps You)

Revenues and Benefits: (What You Get)

Costs: (What You Give)

How Chris Revised Her Personal Business Model

Reflect

Chapter 4: Who Are You?

Discovering You

The World Beyond Work

Answering the “Who Am I?” Question

Kristiina: A Truly Personal Business Model

Lifeline Discovery

Personality and Environment

Holland’s Six Tendencies

Uncover Your Key Personality Tendency

What Sort of Person Are You?

Defining Work, Defining Ourselves

What’s work to you?

Traditionally, experts have ascribed three meanings to work:

A Message to the Unsure

How Do You Spend Most of Your Time?

Chapter 5: Identify Your Career Purpose

Raise Your Purpose Flag!

Cover Story You!

The Three Questions

Your Brand-New Life

Purpose Statement

Putting Purpose into Play

What If You Can’t Define Your Purpose?

The Ever-Changing Purpose Statement

BMY Co-creators Raise Their Purpose Flags!

Revise

Chapter 6: Get Ready to Reinvent Yourself

Altering Your Perspective

As a Man Thinketh

Transcending Mental Models

The Editor

Chapter 7: Re-Draw Your Personal Business Model

Al Gore’s Personal Business Model Transformation

Redraw Your Personal Business Model

The Personal Business Model Canvas

Diagnosis Qs

Who You Help

How You Help

Who Helps You

The Personal Business Model Canvas

Reinvention Inspiration

Hind’s New Model vs. Traditional Record Label Model

J.D.’s Model v. 1.0: Box Salesman

J.D.’s Model v. 2.0: Blogger

J.D.’s Model v. 2.1: Super-blogger

Maarten’s Expanded Model

Act

Chapter 8: Calculate Your Business Value

What a Paycheck Teaches

Sales – Expenses = Earnings

How Enterprises Use Money

Take-Home Pay’s True Meaning

A Surprising Truth About Business

Calculating Your Worth

Chapter 9: Test Your Model in the Market

Does Your Model Match Customer Reality?

Search

How to Test a Business Model

Get Out!

Go Further

Verify Assumptions Within Each Building Block

Prepare to Validate Customers

Chapter 10: What’s Next?

More Ways to Apply the BMY Methodology

Extras

The Business Model You Community

Copyright © 2012 by Tim Clark, Alexander Osterwalder, and Yves Pigneur. All rights reserved.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey.

Published simultaneously in Canada.

No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 646-8600, or on the Web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748-6011, fax (201) 748-6008, or online at http://www.wiley.com/go/permissions.

Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

For general information on our other products and services or for technical support, please contact our Customer Care Department within the United States at (800) 762-2974, outside the United States at (317) 572-3993 or fax (317) 572-4002.

Wiley also publishes its books in a variety of electronic formats. Some content that appears in print may not be available in electronic books. For more information about Wiley products, visit our Web site at www.wiley.com.

ISBN 978-1-118-15631-5 (paper)

ISBN 978-1-118-22599-8 (ebk)

ISBN 978-1-118-23931-5 (ebk)

COVER ILLUSTRATION BY

Matt Hammill

www.matthammill.com

ADDITIONAL ILLUSTRATIONS BY

Alan Smith

STILL LIFE PHOTOGRAPHY BY

Trish Papadakos

Co-created by 328 work life wizards . . .

Throughout the book, you’ll notice references to “Forum members” — early readers of Business Model You who helped with its creation. They critiqued draft chapters, offered examples and insights, and supported the effort throughout production. Their pictures appear in the front pages, and their names appear below.1

Adie Shariff
Afroz Ali
AJ Shah
Alan Scott
Alan Smith
Alejandro Lembo
Alessandro De Sanctis
Alexander Osterwalder
Alfredo Osorio Asenjo
Ali Heathfield
Allan Moura Lima
Allen Miner
Amber Lewis
Andi Roberts
Andre Malzoni dos Santos Dias
Andrew E. Nixon
Andrew Warner
Anne McCrossan
Annemarie Ehren
Annette Mason
Ant Clay
Anthony Caldwell
Anthony Moore
Anton de Gier
Anton de Wet
Antonio Lucena de Faria
Beau Braund
Ben Carey
Ben White
Bernd Nurnberger
Bernie Maloney
Bertil Schaart
Björn Kijl
Blanca Vergara
Bob Fariss
Brenda Eichelberger
Brian Ruder
Brigitte Roujol
Bruce Hazen
Bruce MacVarish
Brunno Pinto Guedes Cruz
Bryan Aulick
Bryan Lubic
Camilla van den Boom
Carl B. Skompinski
Carl D’Agostino
Carles Esquerre Victori
Carlos Jose Perez Ferrer
Caroline Cleland
Cassiano Farani
Catharine MacIntosh
Cesar Picos
Charles W. Clark
Cheenu Srinivasan
Cheryl Rochford
Christian Labezin
Christian Schneider
Christine Thompson
Cindy Cooper
Claas Peter Fischer
Claire Fallon
Claudio D’Ipolitto
Császár Csaba
Daniel E. Huber
Daniel Pandza
Daniel Sonderegger
Danijel Brener
Danilo Tic
Darcy Walters-Robles
Dave Crowther
Dave Wille
David Devasahayam Edwin
David Hubbard
David Sluis
Deborah Burkholder
Deborah Mills-Scofield
Denise Taylor
Diane Mermigas
Dinesh Neelay
Diogo Carmo
Donald McMichael
Dora Luz González Bañales
Doug Gilbert
Doug Morwood
Doug Newdick
Dr. Jerry A. Smith
Dustin Lee Watson
Ed Voorhaar
Edgardo Vazquez
Eduardo Pedreño
Edwin Kruis
Eileen Bonner
Elie Besso
Elizabeth Topp
Eltje Huisman
Emmanuel A. Simon
Eric Anthony Spieth
Eric Theunis
Erik A. Leonavicius
Erik Kiaer
Erik Silden
Ernest Buise
Ernst Houdkamp
Eugen Rodel
Evert Jan van Hasselt
Fernando Saenz-Marrero
Filipe Schuur
Floris Kimman
Floris Venneman
Fran Moga
Francisco Barragan
Frank Penkala
Fred Coon
Fred Jautzus
Freek Talsma
Frenetta A. Tate
Frits Oukes
Gabriel Shalom
Gary Percy
Geert van Vlijmen
Gene Browne
Ginger Grant, PhD
Giorgio Casoni
Giorgio Pauletto
Giselle Della Mea
Greg Krauska
Greg Loudoun
Hank Byington
Hans Schriever
Hansrudolf Suter
Heiner Kaufmann
Hind
IJsbrand Kaper
Iñigo Irizar
Ioanna Matsouli
Ivo Frielink
Iwan Müller
Jacco Hiemstra
James C. Wylie
James Fyles
Jan Schmiedgen
Jason Mahoney
Javier Guevara
Jean Gasen
Jeffrey Krames
Jelle Bartels
Jenny L. Berger
Jeroen Bosman
Joeri de Vos
Joeri Lefévre
Johan Ploeg
Johann Gevers
Johannes Frühmann
John Bardos
John van Beek
John Wark
John L. Warren
John Ziniades
Jonas Ørts Holm
Jonathan L. York
Joost de Wit
Joost Fluitsma
Jordi Collell
Juerg H. Hilgarth-Weber
Justin Coetsee
Justin Junier
Kadena Tate
Kai Kollen
Kamal Hassan
Karin van Geelen
Karl Burrow
Katarzyna Krolak-Wyszynska
Katherine Smith
Keiko Onodera
Keith Hampson
Kevin Fallon
Khushboo Chabria
Klaes Rohde Ladeby
Kuntal Trivedi
Lacides R. Castillo
Lambert Becks
Laura Stepp
Laurence Kuek Swee Seng
Lauri Kutinlahti
Lawrence Traa
Lee Heathfield
Lenny van Onselen
Linda Bryant
Liviu Ionescu
Lukas Feuerstein
Luzi von Salis
Maaike Doyer
Maarten Bouwhuis
Maarten Koomans
Manuel Grassler
Marc McLaughlin
Marcelo Salim
Marcia Kapustin
Marco van Gelder
Margaritis Malioris
Maria Augusta Orofino
Marieke Post
Marieke Versteeg
Marijn Mulders
Marjo Nieuwenhuijse
Mark Attaway
Mark Eckhardt
Mark Fritz
Mark Lundy
Mark Nieuwenhuizen
Markus Heinen
Martin Howitt
Martin Kaczynski
Marvin Sutherland
Mats Pettersson
Matt Morscheck
Matt Stormont
Matthijs Bobeldijk
Megan Lacey
Melissa Cooley
Michael Dila
Michael Eales
Michael Estabrook
Michael Korver
Michael N. Wilkens
Michael S. Ruzzi
Michael Weiss
Mikael Fuhr
Mike Lachapelle
Miki Imazu
Mikko Mannila
Mohamad Khawaja
Natasja la Lau
Nathalie Ménard
Nathan Robert Mol
Nathaniel Spohn
Nei Grando
Niall Daly
Nick Niemann
Nicolas De Santis
Oliver Buecken
Olivier J. Vavasseur
Orhan Gazi Kandemir
Paola Valeri
Patrick Betz
Patrick Keenan
Patrick Quinn
Patrick Robinson
Patrick van der Pijl
Paul Hobcraft
Paul Merino
Paula Asinof
Pere Losantos
Peter Gaunt
Peter Quinlan
Peter Schreck
Peter Sims
Peter Squires
Petrick de Koning
Philip Galligan
Philippe De Smit
Philippe Rousselot
Pieter van den Berg
PK Rasam
Rahaf Harfoush
Rainer Bareiß
Ralf de Graaf
Ralf Meyer
Ravinder S. Sethi
Raymond Guyot
Rebecca Cristina C Bulhoes Silva
Reiner Walter
Renato Nobre
Riaz Peter
Richard Bell
Richard Gadberry
Richard Narramore
Richard Schieferdecker
Rien Dijkstra
Robert van Kooten
Rocky Romero
Roland Wijnen
Rory O’Connor
Rudolf Greger
Sang-Yong Chung (Jay)
Sara Coene
Scott Doniger
Scott Gillespie
Scott J. Propp
Sean Harry
Sean S. Kohles, PhD
Sebastiaan Terlouw
Shaojian Cao
Simon Kavanagh
Simone Veldema
Sophie Brown
Steve Brooks
Steven Forth
Steven Moody
Stewart Marshall
Stuart Woodward
Sune Klok Gudiksen
Sylvain Montreuil
Symon Jagersma
Tania Hess
Tatiana Maya Valois
Tom Yardley
Thomas Drake
Thomas Klimek
Thomas Røhr Kristiansen
Thorsten Faltings
Tiffany Rashel
Till Kraemer
Tim Clark
Tim Kastelle
Toni Borsattino
Tony Fischer
Travis Cannon
Trish Papadakos
Tufan Karaca
Ugo Merkli
Uta Boesch
Veronica Torras
Vicki Lind
Vincent de Jong
Ying Zhao-Chau
Yves Claude Aubert
Yves Pigneur

. . . from 43 countries

Canvas

Learn to use the key tool for describing and analyzing organizational and personal business models.

CHAPTER 1

Business Model Thinking: Adapting to a Changing World

Why Business Model Thinking Is the Best Way For You to Adapt to a Changing World

Let’s take a wild guess: You’re reading this book because you’ve given some thought to changing your career.

You’re in good company. According to one survey, five out of six adults in North America are considering changing jobs.2 And according to our Forum members (who represent 43 countries), it’s like this across the globe.

Many of us, though, lack a structured way to think about the complex and — let’s face it — messy subject of switching careers. We need a simple, powerful approach — one in tune with the modern workscape and our personal needs.

Enter the business model: an excellent framework by which to describe, analyze, and reinvent a career.

No doubt you’ve heard the term business model before. What is it, exactly?

At the most basic economic level, a business model is the logic by which an organization sustains itself financially.3

As the term suggests, it ordinarily describes businesses. Our approach, however, asks you to consider yourself a one-person business. Then, it helps you define and modify your “personal business model” — the way you engage your strengths and talents to grow personally and professionally.

Changing Times, Changing Business Models

Much of today’s job market turbulence is driven by factors beyond our personal control: recession, sweeping demographic changes, intensifying global competition, environmental issues, and so forth.

These changes are also beyond the control of most enterprises — but they profoundly affect the business models that companies use.

Because they can’t change the environment they operate in, companies must change their business models (and sometimes create new ones) in order to remain competitive.

As it turns out, these new business models themselves disrupt and cause change. That creates new opportunities for some workers and unemployment for others.

Consider some examples.

Remember Blockbuster Video? It declared bankruptcy after Netflix and Redbox showed they could do a better job delivering movies and games to Customers through mail, the Internet, and vending machines.

The emergence of a new business model can affect companies in other industries, as well.

For instance, Netflix has more than 20 million customers who, thanks to the Internet, can watch television programs on computers or game consoles at any time of day or night — while skipping the advertisements. Imagine what this means for a television broadcasting industry funded by advertisers who buy time slots on the decades-old premises that: (1) ads will be embedded in programming broadcast to huge audiences at certain days and times, and (2) television-viewing audiences cannot filter out ads.

The Internet has also transformed business models in other sectors, such as music, advertising, retail, and publishing (without the Internet, this book would have been impossible to produce).

Executive recruiting firms, for example, traditionally depended on highly skilled, full-time employees who made hundreds of phone calls each week and flew cross-country to meet prospective recruits for lunch. Today the recruiting industry is dramatically different; in many cases, part-time workers, who scour Web sites from home, have replaced full-time employees.

New business models are altering workplaces everywhere, in for-profit and nonprofit sectors alike. Enterprises must constantly evaluate and change their business models to survive.

People Must Change, Too

We’re not claiming that people are the same as companies. But here’s an important parallel: You, like many companies, are affected by environmental and economic factors beyond your control.

That being the case, how can you maintain success and satisfaction? You must identify how you operate — and then adapt your approach to fit changing environments.

The skills you’ll learn from Business Model You — how to describe and think clearly about business models — will give you the power to do that.

Being able to understand and describe your organization’s business model helps you understand how your organization can succeed, especially in turbulent economic times. Employees who care about the success of the enterprise as a whole (and know how to achieve it) are the most valuable workers — and candidates for better positions.

Once you see how a business model applies to where you work now — and where you fit within that model — you’ll be able to use the same powerful way of thinking to define, sharpen, and grow your own career. Starting in Chapter 3, you’ll define your personal business model. And as your career progresses, you’ll be able to use Business Model You strategies to adjust your model and adapt to changing times.

Reading Business Model You will give you a distinct advantage, because while many workers define and document organizational business practices, few formally define or document organizational business models. Even fewer individuals apply the power of business model thinking to their own careers.

CHAPTER 2

The Business Model Canvas

We defined “business model” as the logic by which an enterprise sustains itself financially. Put simply, it’s the logic by which an enterprise earns its livelihood.

You might think of a business model as a blueprint describing how an organization operates.

Just as an architect prepares blueprints to guide the construction of a building, an entrepreneur designs a business model to guide the creation of an enterprise. A manager also might sketch a business model to help visualize how an existing organization operates.

To start understanding an existing business model, ask two questions:

1. Who is the Customer?
2. What job does the Customer need to have done?

To illuminate this idea, let’s look at three enterprises.

First: Think about Jiffy Lube®, a drive-in, quick oil change service based in the United States. Few car owners are interested in changing engine oil themselves. Most lack the knowledge and tools — and prefer to avoid the preparation and potential mess of this dirty task (plus the hassle of recycling used oil). For $25 or $30, Jiffy Lube provides experts who let people do just that.

Next, consider Ning. Ning lets people easily and inexpensively make and manage customized social networks. Few companies (or individuals) have the money or expertise to build, host, and operate a social network that offers Facebook-like functionality. Enter Ning, which provides a simple, affordable substitute: a social network template, modifiable on multiple levels.

Finally, there’s Vesta, a firm that completes electronic purchases on behalf of companies that serve hundreds of thousands of Customers daily. Handling high volumes of such transactions is complex and demands robust, leading-edge security and anti-fraud measures — two things that few companies can afford to develop and maintain in-house.

So, what do these three businesses have in common?

All receive payment for helping Customers get jobs done.

Jiffy Lube performs crucial maintenance tasks (while keeping garages tidy and clothes clean) for vehicle owners.

Ning’s Customers are people who need to promote a cause; the company helps them build a community to do just that — at low cost and without hiring a technical specialist.

Vesta helps businesses focus on specialties unrelated to payment collection.

Sounds simple, right?

Well, unlike in these three examples, defining “Customers” and “jobs” in sectors such as education, healthcare, government, finance, technology, and law can be challenging.

A big part of business model thinking is helping you identify and describe both Customers and jobs. Specifically, you’ll learn how you can help Customers accomplish the jobs they need to do. And in doing so, you’ll discover how to earn more money and gain more satisfaction from your work.

Every Organization Has a Business Model

Since a business model is the logic by which an enterprise sustains itself financially, does this mean that only for-profit corporations have business models?

No.

Every enterprise has a business model.

This is true because nearly every modern enterprise, whether for-profit, nonprofit, government, or otherwise, needs money to carry out its work.

For example, imagine you work for the New York Road Runners (NYRR), a nonprofit organization that promotes community health and fitness by holding running races, classes, clinics, and camps. Though NYRR is a nonprofit group, it must still:

Pay staff salaries

Purchase permits, pay utility, maintenance, legal, and other expenses

Buy event supplies such as timing systems, bib numbers, refreshments, and finisher shirts and medals for its races

Build a reserve fund for expanding services in the future

NYRR’s main motivation is not financial gain; instead, its goal is to serve community “Customers” who want to stay fit. Still, even a nonprofit organization needs cash to carry out its work.

Therefore, like any other enterprise, NYRR must be paid for helping Customers get jobs done.

Let’s ask our two business model questions about NYRR:

Who is the Customer?

NYRR’s main Customers are runners and other community members who want support and camaraderie in their quest to maintain or improve fitness.

They include both annual members — people who pay to be part of the group and receive certain benefits as a result — and people who aren’t annual members but who pay to participate in specific races and other events.

What job does the Customer need to have done?

NYRR’s main job is hosting running-related events in the New York area.

NYRR is therefore a nonprofit group whose Customers pay for its services.

But what about organizations that provide free services to Customers? Does the business model idea still apply to them?

Yes!

Imagine a nonprofit group we’ll call OrphanWatch, a charitable organization that houses, feeds, and teaches orphaned children. Like NYRR, Orphan-Watch needs cash to carry out its work. For example, it must:

Buy food, clothes, books, and supplies for the children under its care

Pay staff salaries

Rent dormitory/school facilities, pay utility, maintenance, legal, and other expenses

Build a reserve fund for expanding services in the future, etc.

Let’s return again to our business model questions.

In OrphanWatch’s case, the answers are a bit different.

Who is the Customer?