Thank you, Tina. Okay. So, hello, everybody.

You know it's funny actually to stand here

because when I started out with this topic,

I got a phone call from somebody who wanted to work with

me who is in Geneva and I live just around the corner.

We were talking and he said, oh, I would like to fly you over.

I asked, fly me over from where? Oh, from California.

So why from California I live just beside you.

That guy thought that ideas like business

models can't come from Switzerland.

Ideas and entrepreneurship,

they can't come from Switzerland, but you know what?

Actually, there are some ideas that come from Switzerland

that now with the business model topic that we're going

to talk about it went across the world.

So, I'm going to talk a little bit about this

idea of cracking the code of entrepreneurship,

some tools that we can use to talk about business models,

design business models and ultimately to test business models, okay?

So, I think that until now the tools

that we were using were pretty basic.

So, you have lots of smart entrepreneurs, I'm pretty sure.

Who is an entrepreneur in the room or wants to become one, okay?

Who've done a lot of great stuff.

But with tools that might not be 100% appropriate, okay?

So, one tool that you've definitely heard

of is the business plan, right?

You may have heard of this sentence here,

the famous quote from Steve Blank,

"no business plans survives the first contact with customers".

So, the first thing you want to do is

want to burn your business plan, okay? Because it's a waste of time.

Now, planning as such is not wrong,

but you got to plan the right thing.

So, plans are worthless, but the planning part is important.

Now, the question is why do we plan in entrepreneurship?

Do we plan how the business is going to look? No.

What we actually plan is the search for the

business model and once we found one,

that's when we start executing on it, okay?

That's a pretty big shift from what we've been doing until now.

We usually think the idea is the most important at the beginning

but it's what you give the shape you give to the idea,

how you evolve the idea until you figure out,

hey, this could really work and then you execute, okay?

That's when you start spending the money.

Now, I am pretty excited about tools,

conceptual tools but I think we can push it even further,

have software-supported tools that can help us in

our thinking when it comes to business models.

So, I don't think we'll ever replace the creativity,

the art in entrepreneurship,

but I do think we can enhance this thinking, okay?

So, I'll go into that a little bit.

Now, I want to talk about three things.

First, the concept of business models,

so some of you might know the Business Model Canvas.

Who has ever heard of the Business Model Canvas? Okay, quite a few.

Who has never heard of this?

Okay, half-half. So, I'll show a little video of what this is about

and then I'll show you what I mean with tools.

Tools of entrepreneurship and at the end,

I'll go a little bit into the process, okay?

Three things, does that sound good? Okay good.

Seeing a reaction I should actually leave the room, okay?

So, first, we are going to talk about the concept

and I'm going to talk about business models,

but the question is, hey, what is a business model?

What is a business model?

I ask this question everywhere in the world,

Brazil, Singapore, wherever I go and guess what the answer is?

Well, probably as many answers as people in the room,

it's like having a set of very many different languages,

it's a word we all use quite a lot.

Who's never ever used the word business model in this room?

Okay, you'd probably be the fourth person

in an audience that I talked to. So nobody, right?

You all use the word business model,

so you should know what it means.

But actually it turns out that everybody has a quite

a different mental model that we use the same word,

but some talk about strategy, some talk about channels,

some talk about profit, product, technology,

process, and what would be more interesting is if we would have

a better discussion about what the business model is, okay?

So, if you watch a team talk about business models,

say we need to find a business model for our product or you know,

an existing company might say we need to reinvent our business model.

This is how the discussion is going to look.

So, it is going to talk, blah, blah, blah. What? Blah, blah, blah.

What?

So, smart people in the same room using a lot of words but not understanding

each other and this phenomena is called blah blah blah, okay?

It's a great book that came out by Dan Roam,

you might have heard of Dan Roam who wrote, The Back of the Napkin,

his last book in September, it came out, it's called

Blah, Blah, Blah: What to Do When Words Don't Work.

So, I think when it comes to business models, words are not enough.

We need to be able to a, have a shared language,

but a visual language that allows us to sketch out

business models because when we sketch them out,

when we map them out, that's when our discussion becomes clear, okay?

That's really important. So, when I started out with this topic

that was what I wanted to figure out.

How would a language look like a shared visual

language to talk about business models?

And I started a PhD on the topic and I got a PhD for this title here

"The Business Model Ontology" - a proposition into design

science approach. I know here some people laughing, right?

Because you know that to get a PhD,

you need to use words like ontology, right? Then you get a PhD,

it's as simple as that, okay?

Now, the funny thing is I put this online and people started

reading it. They downloaded it. They used it in companies,

which means okay, there is something there that

people really think is interesting.

Now, nobody told me when I started my research and enroll

in my PhD that the dissertation would be read, okay.

I would have maybe done a better job, okay.

So, PhDs are usually made to write and then

you have three people who read it but here,

this went around the world.

Now, I thought, hey, these ideas are interesting for people.

So you know what? I want to write in a bit naive way I thought.

I want to write a management bestseller.

Now, if you know the publishing industry,

you know that there is 1 million English books

coming out every year. Of those 1 million,

11,000 are business books. So nobody is waiting for 11,001, nobody.

So, what we did is we tried to publish

the book with an innovative business model and we

actually did turn it into a bestseller.

So, it's about a quarter million books now circulating around the world,

23 languages and even more important, people are using this stuff, okay?

So, this is how the book looked. Who has a book,

who has the Business Model Generation book?

Okay. For those who don't have one,

there are couple in the back after the

lecture and you can take them with you, okay?

First come first serve.

So, the heart the book - for those of you who know it,

for those of you don't know it - is this visual language that I was talking about.

The Business Model Canvas that allows you to sketch out existing

business models or business models that you want to create, okay?

Now, what is this language about? It's about nine

building blocks. Nine building blocks that allow you to

describe or design every business model you can imagine,

ultimate possibilities, thousands of alternatives.

So, let's watch a little movie,

two minutes that will explain what

the Business Model Canvas is. If I explain it,

it will probably take 15 minutes. So that's why we made a movie

so you can get a quick overview of the Business Model Canvas.

So nine building blocks, pretty straight forward,

the individual building blocks are not new.

Probably most of you know every piece of it, right?

If you looked that business a little bit you have an idea of what this is.

But the important thing here is that we have all nine on one

slide or on one poster if we print it out and that we understand how

they all fit together. So we get the big picture understanding,

not just the product, it's for the engineers in the room products,

great products are becoming a commodity. It's the combination

between great products and a great business model is going to

keep you ahead in competition in the coming decade. So what you

really want to understand is how all these pieces fit together

and what the best business model could be for your idea.

That means you need to search for the right business model, okay.

So let's look at an example,

we're going to sketch out the business

model and when I say sketch out,

I literally mean sketching it out with post-it note.

So now you know why you have post-it notes.

So we're going to work on a little case together, okay.

So if we can start distributing the canvas that will be great.

So the idea is that we map out all the different pieces and I'll give

you some basics here. You never write on a canvas that's a crime, okay.

Because God invented post-it note, okay.

I don't have any stocks in 3M,

but what you really want to do is you want to - for every

building block you want to use a post-it notes,

so these are a little big so I made them a little bit smaller

and why - one for each idea that you have for each customer

segment for each channel because then it's mobile,

you can put it up, you can discuss,

you can take it down or if you have,

if you mapped out a business model,

let's say you have a product idea you mapped out all the pieces,

you want to ask yourself, oh I have two segments here,

but what if I took this one away. What's the impact

on the rest of the business model? Can I take a

channel away; can I take resources away,

follow me on this? So it's like a balloon,

somebody told me hey the Business Model Canvas is like a balloon,

you push in on one side,

it will have an impact on the other side. So you

can see the relationships between the pieces, okay.

So, let's work on a little case and it's end of the day

so I thought the best thing we could do is talk about coffee, okay.

And we'll talk about coffee because it's a commodities business

and there is some interesting stuff going on in this business, okay.

And you can learn from any type of business model that has

nothing to do with the domain you're in because that's the interesting

thing. Not like with products where one product may be not - will

not relate to another from one industry to another,

but you can learn from the amazing business models that

are out there. So we'll look at one and I'll start with

a little question from Switzerland where I come from because

I have the data there. Question to you is,

how much less or more do you think Swiss households pay for coffee

consumed at home? So if you look at the last couple of years,

do you think we paid 20% less,

20% more for coffee consumed at home what would your guess be,

what do you think, some guesses? Plus 50%. Plus 50%,

okay courageous guess. Others? Minus 20%. Minus 20%,

it's a commodities business, right,

pretty straight forward. Other guesses? Plus 200%.

Plus 200%, right. I mean, it's Stanford,

Silicon Valley we need to be a bit courageous here, right.

Yeah, go ahead. I need post-its. You need post-its, okay.

How could you be in here without post-its? That's correct, yeah.

Turns out that in this commodities business there