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● Historic Context
● A New Paradigm
● The Evolution Of The Concept
● Debunking Some Myths
● What’s Really A Business Model
● Understanding Market Types
● Tools And Frameworks
● Case Studies
● What’s Next
Historic Context
 The state of competition
in an industry depends on
five basic forces M.
Porter in 1979.

Source:hbr.org/1979/03/how-competitive-forces-shape-strategy
The state of competition in an industry depends on five basic
forces... The collective strength of these forces determines
the ultimate profit potential of an industry. It ranges from
intense in industries like tires, metal cans, and steel, where
no company earns spectacular returns on investment, to mild in
industries like oil field services and equipment, soft drinks,
and toiletries, where there is room for quite high returns.

Source:hbr.org/1979/03/how-competitive-forces-shape-strategy
Source:FourWeekMBA.com
Source:internetlivestats.com
“Business model” According to Google Ngram

1950s-60s

Source: Google Book Ngram Viewer

Source:internethistorypodcast.com/2017/01/the-history-of-the-dotcom-bubble/
 Webvan: How To Burn Almost A Billion

Source:sfgate.com/news/article/Webvan-runs-out-of-gas-Online-grocer-closes-it-2901363.php
A New Paradigm
Source:FourWeekMBA.com
We are guided by four principles:customer obsession rather than
competitor focus,passion for invention,commitment to
operational excellence,and long-term thinking.In each of our
segments,we serve our primary customer sets,consisting of
consumers,sellers,developers,enterprises,and content
creators.In addition,we provide services,such as advertising.
 A small group of giant
companies—some old, some
new—are once again
dominating the global
economy, The Economist,
2016.

Source:economist.com/special-report/2016/09/15/the-rise-of-the-superstars
The Evolution Of The
COncept
 Business Modeling As
Competitive Advantage,

HBR 1993.

Source:hbr.org/1993/09/strategy-and-the-art-of-reinventing-value
 A business model depicts
the content, structure,
and governance of
transactions designed so
as to create value through
the exploitation of
business opportunities,
Amit and Zott, 2001.

Source:uazuay.edu.ec/bibliotecas/e-business/Value_Creation_in_E-Business.pdf
 The only thing that
matters is product/market
fit, by Marc Andreessen,
a16z, Venture Capital
Firm.

Source:pmarchive.com/guide_to_startups_part4.html
 The customers are buying the product just as fast as you can
make it -- or usage is growing just as fast as you can add more
servers. Money from customers is piling up in your company
checking account. You're hiring sales and customer support
staff as fast as you can. Reporters are calling because they've
heard about your hot new thing and they want to talk to you
about it. You start getting entrepreneur of the year awards
from Harvard Business School. Investment bankers are staking
out your house. You could eat free for a year at Buck's.
A Lean Startup favors
experimentation over
elaborate planning,
customer feedback over
intuition, and iterative
design over traditional
“big design up front”
development, Steve Blank,
2013.
A business model describes
the rationale of how an
organization creates,
delivers, and captures
value, Alexander
Osterwalder & Yves Pigneur
(2010)
 I believe business model
innovation is more
disruptive than technical
innovation, Fred
Wilson,July 2019,AVC.

Source:avc.com/2019/07/business-model-innovation/
Debunking Some Myths
A Business Model Is Not A Business Plan.
 In a marketing plan you structure how you make your
clients or potential customers perceive you. It’s not a
business model.
How you make money is part of your revenue generation
strategy, which is a building block of a business
model, but that is not a business model.
 Technological innovation is not business model
innovation. Technological innovation might help
building up an innovative business model but a business
model starts from problem-solution fit.
What’s Really A Business
Model?
 A business model is an holistic, repeatable and
scalable way to create and capture value.

Source:Business Model Navigator by bmilab.com

 Where scientists use labs to test their hypotheses through
experimentation. Entrepreneurs build business model experiments
to test their businesses ideas in the real world.
 ORGANIZATIONAL
DESIGN/CULTURE

BUSINESS MODEL

PRODUCT

Source:FourWeekMBA.com
Source:FourWeekMBA.com
Source:FourWeekMBA.com
 ● Does not see the opportunity
● It can’t see it
● It doesn’t not align with its business model

Source:FourWeekMBA.com
Understanding The
Market Type
 1
Ex
is
tin
A g
cu ma M
st rk ar
om et ke
er wit
s h t
w
el
ld
efi
ne
d
co
m
pe
t ito
rs
an

2
d

Re
se
gm
A en
pl ma
ay rk te

Source:steveblank.com/category/market-types
er et
s d
d
om M
in ar
at
e d
ke
by t
on
e
or
a
fe
w
ke
y
3

Ne
w
M
A ar
it’ ma
s
ke
ve rke t
ry t w
ha h
rd ere
to c
de om
fin pe
e tit
th or
e s
cu do
st n
om ot
er ex
is
ta
4

nd
Cl
on
e
A
M
c m
ar
cl ultu ark ke
os ra et
ed l b w
t
an arr her
d ier e, d
tra s, u
ns a b e t
po u o g
se sin eo
d es gr
The Four Types Of Start-ups / Based On Market Types

s ap
m h
od ic
el al
ca or
n
be
Why Does It Matter To Understand The Market?
Finance
The Market Type will also influence:

1
- Ongoing Capital
- Time to Profitability
Sales
The Market Type will also affect sales
processes:

2
- Sales Model
- Margins
- Sales Cycle
Market
Depending on the market type, also market
condition will change. Things like:
3

- Market Size
- Cost of Entry
- Launch Type
- Competitive Barriers
- Positioning
 Business
Experiment
Model Canvas
A

Business
Tools
Model One

Model Innovation
Experiment
Lean CanvesB
Business Mindset

Experiment
Lorem IpsumC

Business
LoremModel
IpsumTwo

Experiment
Lorem IpsumD
Tools, And Frameworks
Source:FourWeekMBA.com
Source:FourWeekMBA.com
Source:blog.leanstack.com
Source:blog.leanstack.com
Source:blog.strategyzer.com/posts/starting-with-the-customer-value-proposition-design
Source:blog.strategyzer.com/posts/starting-with-the-customer-value-proposition-design
Source:FourWeekMBA.com
Source:FourWeekMBA.com
Source:FourWeekMBA.com
Source:FourWeekMBA.com
Case STUDIES
Source:FourWeekMBA.com
Source:FourWeekMBA.com
Source:FourWeekMBA.com
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What’s Next?
Source:FourWeekMBA.com
 So we are just at the
beginning of the beginning,
we're in the first hour of
all this. We're in the first
hour of the Internet. We're
in the first hour of what's
coming. The most popular AI
product in 20 years from now,
that everybody uses, has not
been invented yet. That means
that you're not late, Kevin
Kelly, TED Talk, 2017.

Source:ted.com/talks/kevin_kelly_how_ai_can_bring_on_a_second_industrial_revolution
Source:FourWeekMBA.com
 I am excited about the
move to crypto based
business models supporting
decentralized apps for
this very reason. I think
it opens up the
possibility that some very
large new companies will
be created that innovate
largely on entirely new
business models, Fred
Wilson, AVC, 2019.

Source:avc.com/2019/07/business-model-innovation/
Source:cbinsights.com/research/industries-disrupted-blockchain
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