Business Model Innovation Space Innovation Space Task Develop

Business Model Innovation Space • Innovation Space – Task: Develop a business model that will make the Innovation Space profitable and sustainable

Table of Contents 1. 2. 3. 4. Business Model Walk Through 9 Building Blocks of Business Models Building Block Comparison Funding Options Explored

Brief Walkthrough of Models Empirical Example

Business Models Overview • Time-Use – Pay for time used • Library – Pay membership fee – Pay overage or late fees • Revenue Sharing – No usage charges – Returns are based on productivity of designs *** The majority of the 9 Building Blocks are very similar for each business model, however, the main differences are highlighted

How would the Innovation Space business work? 1. ) Meet John… Cart… … John is interested in making the cart he learned about during his i. SPACES class

Business Model Walkthrough 2. ) Unfortunately, John doesn’t have the necessary tools to build the cart… … but WAIT!

Business Model Walkthrough 3. ) John realizes that the Innovation Space has all those materials! … so off he goes!

Choose your business model… We took time in choosing three business model options that we will attempt to validate during a trip to Tanzania. Try them out by clicking the respective images to start! Rolls Time-Use Royce. Model Library Model Revenue Sharing Model

Walkthrough: Time-Use 4. ) John arrives at the Innovation Space and now he must sign in to indicate he is using the equipment… JOHN • Tools -Hammer - Etc. • Space - A 1 … once signed in, John is free to use any of the equipment available!

***To learn more about the Universal Connector, visit THIS PAGE*** Walkthrough: Time-Use 5. ) Although John has all the basic materials to build a cart, he needs a Universal Connector to bind all his materials together $$$ … so John pays the Innovation Space Operator for a number of Universal Connectors that are uniquely offered that the Innovation Space.

Walkthrough: Time-Use 6. ) John uses the equipment and workshop area provided by the Innovation Space to create his cart! … now he makes his way toward the check-out counter to sign out.

Walkthrough: Time-Use 7. ) Back at the check-out counter, John signs out, indicating that he is finished with the space he occupied and the tools he used… JOHN • Tools -Hammer - Etc. • Space - A 1 … now for the payment

Walkthrough: Time-Use 8. ) John now pays the Innovation Space Operator a fee for the time he spent using certain tools and space $$$ … the Innovation Space Operator collects the fee with hopes of making a profit or investing that money back into the Innovation Space itself!

Summary: What was the value exchange? • John gets access to valuable resources which eventually leads to him walking home with a cart that he can use or sell • The Innovation Space gets money in exchange for the universal connectors sold to John, as well as the fees he paid for the time he spent in the Innovation Space

Try business model other options…? Click below to go back to the options page to try out the other models

Walkthrough: Library Model 4. ) John arrives at the Innovation Space and now he must pay his upfront membership fee to the Innovation Space Operator… $$$ … once he’s paid, John is free to use any of the equipment available!

***To learn more about the Universal Connector, visit THIS PAGE*** Walkthrough: Library Model 5. ) Although John has all the basic materials to build a cart, he needs a Universal Connector to bind all his materials together $$$ … so John pays the Innovation Space Operator for a number of Universal Connectors that are uniquely offered that the Innovation Space.

Walkthrough: Library Model 6. ) John uses the equipment and workshop area provided by the Innovation Space to create his cart! … because John is a member he is free to keep working or to take his cart and head home!

What was the value exchange? • John gets access to valuable resources which eventually leads to him walking home with a cart that he can use or sell • The Innovation Space gets money in exchange for the universal connectors sold to John, as well as the periodic membership fee that John will have to pay to keep using the Innovation Space

Try business model other options…? Click below to go back to the options page to try out the other models

Walkthrough: Revenue Share Model 4. ) John arrives at the Innovation Space and signs up to become a member. However, unlike the Library Model, John does not pay a fee… $$$ … once he’s signed up, John is free to use any of the equipment available!

***To learn more about the Universal Connector, visit THIS PAGE*** Walkthrough: Revenue Share Model 5. ) Although John has all the basic materials to build a cart, he needs a Universal Connector to bind all his materials together $$$ … so John pays the Innovation Space Operator for a number of Universal Connectors that are uniquely offered that the Innovation Space.

Walkthrough: Revenue Share Model 6. ) John uses the equipment and workshop area provided by the Innovation Space to create his cart! … now John needs to use the cart to pay back the Innovation Space for access to the tools and work area

Walkthrough: Revenue Share Model 7. ) John has two primary ways to make money from the cart: 1. He can sell the cart 2. He can make money from the use of the cart $$$ … after John receives the money from the sale or use of his cart he then returns some of the funds to the Innovation Space

Summary: What was the value exchange? • John gets access to valuable resources which eventually leads to him walking home with a cart that he can use or sell • The Innovation Space gets money in exchange for the universal connectors sold to John, as well as the returns he will pay back to the Innovation Space based on what he does with his project

Try business model other options…? Click below to go back to the options page to try out the other models

Continue with Slideshow to view: Outline 9 Building Blocks of Business Model(s) i. SPACES Or Click below to return to Business Model Walkthroughs

#1 ***Click the # next to any heading to jump to a comparison slide for that business model block***

#2 ***Click the # next to any heading to jump to a comparison slide for that business model block***

#3 ***Click the # next to any heading to jump to a comparison slide for that business model block***

#4 ***Click the # next to any heading to jump to a comparison slide for that business model block***

#5 ***Click the # next to any heading to jump to a comparison slide for that business model block***

#6 ***Click the # next to any heading to jump to a comparison slide for that business model block***

#7 ***Click the # next to any heading to jump to a comparison slide for that business model block***

#8 ***Click the # next to any heading to jump to a comparison slide for that business model block***

#9 ***Click the # next to any heading to jump to a comparison slide for that business model block***

Model Comparison Comparing the 9 Building Blocks of the Business Model(s)

Customer Segments Time-Use Model • Any Local interested in: – Building things for themselves – Creating guides to build things – Providing information about location and specs of materials – Possibly someone who is willing to build something for another person • Specific Users: – Students of Tumaini – Community Members – People traveling through who need info about local materials Library Model • Any Local interested in: – Building things for themselves – Creating guides to build things – Providing information about location and specs of materials – Possibly someone who is willing to build something for another person • Specific Users: – Students of Tumaini – Community Members Revenue Sharing Model • Any Local interested in: – Building things for themselves – Creating guides to build things – Providing information about location and specs of materials – Possibly someone who is willing to build something for another person • Specific Users: – Students of Tumaini – Community Members

Value Propositions Rolls Time-Use Royce. Model • Library Model Students • Users of Innovation Space • – Entrepreneurial Opportunity – Hands-on Education • Local Material Shops – Marketing and direction toward their store Users of Innovation Space • • Materials • Building guides • Building ideas • – Job – Business Expansion • • Innovation Space Champion – Job – Business Expansion • Local Material Shops – Marketing and direction toward their store Students – Entrepreneurial Opportunity – Hands-on Education – Members only place to do work – Access to: • Materials • Building guides • Building ideas Innovation Space Champion Students – Entrepreneurial Opportunity – Hands-on Education – Place to do work – Access to: • Revenue Sharing Model Users of Innovation Space – Free place to do work – Access to: • Materials • Building guides • Building ideas • Innovation Space Champion – Job – Business Expansion • Local Material Shops – Marketing and direction toward their store

Channels Time-Use Rolls Royce. Model • Materials for: – Innovation Space construction – Construction of cases projects • Building Guides – Provided through Cases & input from local users • Material Location Information – Provided by users of the innovation space as a crowdsourced knowledge Revenue Sharing Model Library Model • Materials for: – Innovation Space construction – Construction of cases projects • Building Guides • Materials for: – Innovation Space construction – Construction of cases projects • Building Guides – Provided through Cases & input from local users • – Provided by users of the innovation space as a crowdsourced knowledge • Material Location Information – Provided by users of the innovation space as a crowdsourced knowledge • Material Location Information Returns from projects – Items excluding capital that the finished projects create

Customer Relationships Rolls Time-Use Royce. Model • Teachers Students Library Model • I. S. Champion • Students/I. S. Users – Self-service + User Community I. S. Champion – Personal Assistance • Could be replaced by automated service • Teachers Students – Personal Assistance – Mutual Learning • Revenue Sharing Model • Students/I. S. Users – Self-service + User Community • Teachers Students – Personal Assistance – Mutual Learning • I. S. Champion – Personal Assistance • Could be replaced by automated service • Students/I. S. Users – Self-service + User Community • User I. S. – Users need to have trust in the system, strong ties to other users to keep revenue returns flowing

Revenue Streams Rolls Time-Use Royce. Model • Innovation Space – Charge for time use of: • • Tools Spaces Building Guides Local Materials List Library Model • Innovation Space – Charge periodic membership fee – Free use of: • • Tools Spaces Building Guides Local Materials List Revenue Sharing Model • Innovation Space – No usage or membership fee – Users share profits of the items made in the Innovation Space • Examples of returns: – Crop from Greenhouse – Battery Charge from windmill – Basic Capital – Etc.

Key Resources Rolls Time-Use Royce. Model Revenue Sharing Model Library Model Pre-Construction • Materials for I. S. Post-Construction • Champion to manage I. S. • Information from builders – Need info from I. S. team – Building Guides • Edits to guides – Where to find materials in community • Specs of material (get as specific as possible with info) – Need info from I. S. team – Building Guides – • • Edits to guides Where to find materials in community • Specs of material (get as specific as possible with info) Appropriate Mix of Cash and products being exchanged – Too little cash may destroy the model *** Refer to Innovation Space Materials list for more detail

Key Activities Rolls Time-Use Royce. Model Library Model Must Have: • Useable workspaces & tools to keep locals spending time in I. S. Must Have: • Useable workspaces & tools to provide incentive for locals to pay membership fee – The more time spent in the space the better the business fairs • Working building guides – Without accurate building guides, an entire time revenue stream is gone – The more time spent in the space the more likely user are to renew membership • Working building guides – Without accurate building guides users are far less likely to find value in the entirety of the Innovation Space Revenue Sharing Model Must Have: • Useable workspaces to keep locals spending time in I. S. – The more time spent in the space the better the business fairs • Working building guides – Without accurate building guides, an entire time revenue stream is gone • Trust in the system – Believe that others will follow rules of revenue sharing to keep Innovation Space running

Key Partners Time-Use Model • Innovation Space Champion – Manage and potentially expand the space • Tumaini University – Provide strong connection between the curriculum to be implemented and the space • Local University students – Serve as ambassadors for the space by displaying the potential successes of the program & innovation space • Local stores which provide building materials – Direct locals to Innovation Space a reciprocity due to the increased business the store may gain from the space Revenue Sharing Model Library Model • Innovation Space Champion – Manage and potentially expand the space • • – • Local stores which provide building materials – Direct locals to Innovation Space a reciprocity due to the increased business the store may gain from the space Serve as ambassadors for the space by displaying the potential successes of the program & innovation space Local stores which provide building materials – • Provide strong connection between the curriculum to be implemented and the space Local University students – • Manage and potentially expand the space Tumaini University Local University students – Serve as ambassadors for the space by displaying the potential successes of the program & innovation space • Innovation Space Champion – Tumaini University – Provide strong connection between the curriculum to be implemented and the space • • Direct locals to Innovation Space a reciprocity due to the increased business the store may gain from the space Innovation Space Users – Space must provide enough of a benefit to keep the user coming back for access

Cost Structure Time-Use Model • Fixed – Initial cost of Innovation Space • Variable Library Model • Fixed – Initial cost of Innovation Space • Variable Revenue Sharing Model • Fixed – Initial cost of Innovation Space • Variable – Little cost aside from physical upkeep – Costs may include: • Additional Tools • Universal Connectors • Payment for I. S. Champion • Rental Fees • Etc.

Funding Options Explored Funding ***We are currently not seeking to use the following sources as funding for i. SPACES. However, they were considered during the initial brainstorming process***

What is Crowdfunding? • Accessing the collective funding power of a passionate and active funding community • Through many small investments, any venture can become funded as long as the venture has a compelling story and access to an audience of investors • There are currently many websites which help with crowdfunding, . Most are focused on art, theater, and technology, but there a number interested in global social ventures as well

Crowdfunding Methods Definitions Equity Funding • • Direct ownership of the enterprise is allowed. This model is very difficult due to financial regulations, some of the first equity based platforms have come to market. They enable direct investment and returns from investor to startup In many ways an equity model is the best model with regard to aligning investor and entrepreneur’s interests Incentive Funding • No ownership developed • There is a previous agreement set where an investor receives a non-equity perk for investing – Example: • Usually a protoype • Project specific item, like a handwritten card or video • Credit: Often done in film funding Microfinancing • • The investor transfers money to a bank that delivers micro-loans No equity is maintained, however, the entrepreneur has the obligation to pay back the loan After the bank receives the principal plus interest the intial loan is paid back to the investor This model is typically used to fund individuals who form small groups for the purpose of social capital

Crowdfunding Methods Examples Equity Funding Incentive Funding Microfinancing • There are currently no functioning equity crowdfunding ventures active. However, crowdcube is attempting to do this in the near future. Love. Her. Cover • Incentives Offered Abunzubumwe Rusizi Group – “If you invest anything, you'll get a beautiful thank you video from one of the girls you're helping in Liberia. ” – “And If you invest $100 or more, you'll get one of the first 200 laptop slip covers + the thank you video. ” • • Theogene Sibomana is a rice farmer and the leader of the group Abunzubumwe. He is going to use his loan to buy fertilizer and to pay for labor for his rice-growing business. He would like to become a modern farmer in the Rusizi district and to educate his children well. They are seeking $4, 075, of which $2, 325 has already been funded