Business Models &

Environmental Data
Chris Adams - Product Science
@mrchrisadams
chris@productscience.co.uk
Monday, 14 October 13
Overview for this session
-
Understanding business models
-
Case Study - AMEE
-
Questions
Monday, 14 October 13
What is a business
model?
Monday, 14 October 13
A business model is the
logic that describes how an
organisation creates,
delivers, and captures
value
Ostervalder & co - Business Model Generation
Monday, 14 October 13
Monday, 14 October 13
Customer
Segments
Monday, 14 October 13
Customer
Segments
Value
Propositions
Monday, 14 October 13
Customer
Segments
Value
Propositions
Channels
Monday, 14 October 13
Customer
Segments
Channels
Customer
Relationships
Value
Propositions
Monday, 14 October 13
Customer
Segments
Channels
Customer
Relationships
Revenue Structure
Value
Propositions
Monday, 14 October 13
Customer
Segments
Channels
Customer
Relationships
Revenue Structure
Key
Resources
Value
Propositions
Monday, 14 October 13
Customer
Segments
Channels
Customer
Relationships
Key
Resources
Revenue Structure
Key
Activities
Value
Propositions
Monday, 14 October 13
Customer
Segments
Channels
Customer
Relationships
Key
Resources
Key
Activities
Revenue Structure
Key
Partners
Value
Propositions
Monday, 14 October 13
Customer
Segments
Channels
Customer
Relationships
Revenue Structure
Key
Resources
Key
Activities
Key
Partners
Cost Structure
Value
Propositions
Monday, 14 October 13
Customer
Segments
Channels
Customer
Relationships
Revenue Structure
Key
Resources
Key
Activities
Key
Partners
Cost Structure
Value
Propositions
Monday, 14 October 13
What are the most important costs inherent in our business model?
Which Key Resources are most expensive?
Which Key Activities are most expensive?
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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?
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?

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I. Avareress
HovJo ve raise avareress about our compary's proJucts arJ services?
2. Lvaluatior
HovJo ve belp customers evaluate our orgarizatior's Value Propositior?
3. Purcbase
HovJo ve allovcustomers to purcbase specijc proJucts arJ services?
4. Delivery
HovJo ve Jeliver a Value Propositior to customers?
5. Ajter sales
HovJo ve proviJe post-purcbase customer support?
Mass Marlet
Nicbe Marlet
SegmerteJ
DiversijeJ
Multi-siJeJ Platjorm
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Persoral assistarce
DeJicateJ Persoral Assistarce
Selj-Service
AutomateJ Services
Commurities
Co-creatior
For whom are we creating value?
Who are our most important customers?
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?
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What value do we deliver to the customer?
Which one of our customers 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?
What Key Activities do our Value Propositions require?
Our Distribution Channels?
Customer Relationships?
Revenue streams?
Who are our Key Partners?
Who are our key suppliers?
Which Key Resources are we acquiring from partners?
Which Key Activities do partners perform?
What Key Resources do our Value Propositions require?
Our Distribution Channels? Customer Relationships?
Revenue Streams?
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Nevress
Perjormarce
Customizatior
Cettirg tbe Job Dore
Desigr
BrarJ/Status
Price
Cost ReJuctior
Risl ReJuctior
Accessibility
Corverierce/Usability
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ProJuctior
ProblemSolvirg
Platjorm/Netvorl
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Pbysical
rtellectual (brarJ paterts, copyrigbts, Jata)
Humar
Iirarcial
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Optimizatior arJ ecoromy
ReJuctior oj risl arJ urcertairty
Acquisitior oj particular resources arJ activities
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Cost Driver (learest cost structure, lovprice value propositior, maximumautomatior, extersive outsourcirg)
Value Driver ( jocuseJ or value creatior, premiumvalue propositior)
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IixeJ Costs (salaries, rerts, utilities)
Variable costs
Lcoromies oj scale
Lcoromies oj scope
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Day Month Year
No.
ch_Tb)
Asset sale
Usage jee
Subscriptior Iees
LerJirg/Rertirg/Leasirg
Licersirg
Brolerage jees
AJvertisirg
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List Price
ProJuct jeature JeperJert
Customer segmert JeperJert
Volume JeperJert
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Negotiatior( bargairirg)
YielJ Maragemert
Real-time-Marlet
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Monday, 14 October 13
Case Study:
AMEE
Monday, 14 October 13
First business model - aggregate data,
sell access to calculations using it
Monday, 14 October 13
Customer
Segments
Channels
Customer
Relationships
Revenue Structure
Key
Resources
Key Activities Key Partners
Cost Structure
Value
Propositions
gov dept
large
corporates
innovati ve
SMEs
calculate
environmental
impact wi thout
needing science
team
websi te
sales team
acquisi tion
consul tati ve sales
tiered subscription fees to use platform
revenue share wi th soft ware vendors
building platform
sales & client
support
comprehensi ve
emissions data
models
deep expertise
adding models to
platform
Data publishers
(IPCC, DEFRA etc.)
Large Corp
Soft ware
Vendors
Internet
Infrastructure
Co
Science and sales team
Platform hosting & soft ware engineers
Data licensing
soft ware vendor
partners
Monday, 14 October 13
2nd model: Package common uses
of environmental data into apps
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Customer
Segments
Channels
Customer
Relationships
Revenue Structure
Key
Resources
Key Activities Key Partners
Cost Structure
Value
Propositions
sustainabili ty
consul ting firms
in house CSR
teams
online apps for
common
sustainabili ty
analysis
websi te
sales team
consul tati ve sales
self service
Tiered subscription fees to use platform
building platform
sales & client
support
comprehensi ve
emissions data
models
developer
communi ty
online app
development
Data publishers
(IPCC, DEFRA etc.)
App hosting
companies
3rd party
developers
Science and sales team
App development team
Developer communi ty programme
CSR soft ware
vendors
add environmental
calculations to
own online apps
Hosting fees for running own apps
Bespoke online app development
Platform hosting & platform team
Monday, 14 October 13
3rd Model: Co-create datasets with users,
sell the analysis
Monday, 14 October 13
Customer
Segments
Channels
Customer
Relationships
Revenue Structure
Key
Resources
Key Activities Key Partners
Cost Structure
Value
Propositions
Large corps -
supply chain
leaders
Green SMEs
Use env. &
financial data to
reduce risk in
supply chain
websi te
sales team
Bespoke analysis
Self service
SME advice
Subscription revenue from larger corps for
pro supply chain features
Business Analysis
for large corps
Financial and env.
data
Providing content
for SMEs
Financial and
env. data
providers
Online CSR
communi ty
Consumers of
AMEEs open
datasets
Sales and BI teams
Compete on
green
credentials, and
research
competi tors
Rev share on reports from financial
providers
open data & APIs
BI expertise
Platform development
Financial data licensing
online CSR
communi ty
Online communi ty
links
Monday, 14 October 13
-
Your business model may change as
your learn more about the problem you
are trying to solve
-
Be prepared to change how you use
environmental data, and which
activities it supports as your model
changes
Take away points
Monday, 14 October 13
Thank you.
Chris Adams - Product Science
@mrchrisadams
chris@productscience.co.uk
Monday, 14 October 13