Business Model Competition 2014 Information Package 1

International Business Model Competition

INFORMATION
PACKET 2014



www.espriex.co
info@espriex.co
+62-341-4441-441 or +62-8213-9132-600
Jl. MT. Haryono 163, Malang 65145, INDONESIA
Business Administration Department
Faculty of Administrative Science
Brawijaya University
Business Model Competition 2014 Information Package 2

CONTENTS
A. GRAND PRIZES ............................................................................................. 3
B. SCHEDULE FOR BUSINESS MODEL COMPETITION 2014 ........................ 3
C. WHAT IS BUSINESS MODEL? ...................................................................... 4
D. ABOUT BUSINESS MODEL CANVAS ........................................................... 4
E. BUSINESS MODEL COMPETITION 2014 ..................................................... 5
1. TIPS AND PROCEDURES FOR DEVELOPING
A GOOD BUSINESS MODEL ................................................................... 5

2. STAGES AND SCHEDULES OF COMPETITION ...................................... 6
3. REGISTRATION REQUIREMENTS .......................................................... 7
4. WHAT YOU NEED TO PRESENT? ........................................................... 8
5. ASSESSMENT CRITERIA ........................................................................ 9
6. PRIZES ..................................................................................................... 11
7. TIPS FOR UPLOADING VIDEOS ON YouTube ........................................ 11

Business Model Competition 2014 Information Package 3

A. GRAND PRIZE

NATIONAL
CATEGORY
INTERNATIONAL
CATEGORY
1
ST
PLACE
USD 1.250
Approx. IDR 14,000,000.00
USD 2.000
Approx. IDR 22,000,000.00
2
ND
PLACE
USD 750
Approx. ID 8,500,000.00
USD 1.250
Approx. IDR 14,000,000.00
3
RD
PLACE
USD 500
Approx. IDR 5,000,000.00
USD 750
Approx. IDR 8,500,000.00



B. SCHEDULE FOR BUSINESS MODEL COMPETITION 2014
Registration
is closed
June 8
th
, 2014
12.01
July 14
th
, 2014
23.59
Registration
open
Uploading
video
June 15
th
, 2014
12.01
Uploading
video closed
Sept 20
th
, 2014
23.59
Finalist
announcement
Grand finals
Sept 20th, 2014
23.59
EXTENDED!
Business Model Competition 2014 Information Package 4

C. WHAT IS BUSINESS MODEL?
Business nowadays cannot be separated from the prominent role of Business Model as
most failures in business today have been caused due to the lack of ability of the companies
to understand and innovate with its Business Model.
Creating Business Model is a new approach in entrepreneurship atmosphere, and it is
very different from creating the Business Plan. When the Business Plan makes you just need
to create the idea in the office or library, designing a Business Model encourages you to
make assumptions and test the assumptions towards the reality on the field. The trick is to
meet directly with the customers and the suppliers. Once you get feedback from these
occasions, you need to make adjustments or changes based on the field test results before
actually executing the business.

D. ABOUT BUSINESS MODEL CANVAS
As it is described previously,
the Business Model illustrates the
rationality of how an organization
creates, offers and captures values.
However, in the practical level, it is
often difficult for business model to
understand and be understood
because of the complexity of the
various elements related businesses.
In order to facilitate the
understanding and use of the concept
of Business Model, the Business
Model Canvas was created and it will
allow businesses to map out the business and can create, offer, and capture the values related
to their businesses.
As the main reference for understanding the Business Model Canvas, Alexander
Osterwalder and Yves Pigneur in his book entitled Business Model Generation (2010) offers
a new breakthrough that can simplify the complicated concepts of Business Model. The book
explains that a business can be described in a work sheet called Business Model Business
Model Canvas which consists of nine (9) sections, so it can easily explain and discuss the
shape of your business model (The competition also provides an opportunity for the winner to
meet directly with one of the authors of the book, namely Alexander Osterwalder).
You need to know, INVESTORS prefer business opportunity that has been tested
through recognition and a positive response from consumers. That means investors more than
just like the Business Model than Business Plan.
Untuk memelajari Business Model Canvas lebih lanjut, Anda bisa mengunjungi link-
link website berikut ini:
In order to learn further about Business Model Canvas, you can visit the website links
below:
1. http://www.businessmodelgeneration.com/downloads/business_model_canvas_poster.
Business Model Competition 2014 Information Package 5

pdf
2. http://businessmodelgeneration.com/downloads/businessmodelgeneration_preview.pdf
3. http://www.youtube.com/watch?v=QoAOzMTLP5s

E. BUSINESS MODEL COMPETITION 2014
This competition is an initial step to introduce how an organization creates, offers, and
capture the values of improvement process that focuse on inputs rather than outputs to test
the assumptions made on the field in order to develop and adjust business models that have
been created in the beginning.
After successfully organizing the same event in 2013, this time edition in 2014
continues to provide two kinds of competition categories, namely National and International
categories. The main difference of these two categories is in terms of the use of the language
for the presentation, namely Indonesian for National Category and English for International
category. In addition, prizes are offered for each category is different as well.

Note: Business Model Competition 2014 is one of annual series of Espriex 2.0. The other
agenda during this event are Association of Business Administration Sciences Indonesia
Symposium (AIABI) and International Workshop with Alexander Osterwalder.

The following is complete explanation of Business Model Competition 2014 which
will be hosted by Faculty of Administrative Science, Brawijaya University.

1. TIPS AND PROCEDURES FOR DEVELOPING A GOOD BUSINESS
MODEL
Bagaimana cara memenangkan kompetisi yang sangat bergengsi di kampus-kampus
terkemuka dunia ini? Beberapa tips berikut ini mungkin dapat membantu Anda
mempersiapkan diri dengan lebih baik.
How can we win a very prestigious competition in the worlds leading universities? Some
of the following tips may help you prepare better.
(1) Find the problem. The initial step to build the Business Model is to dig what the
problem consumers to be developed into a business idea. Give a brief description of
the background of the idea.
(2) I dentification of the Assumption. The next step is to identify and trace the
assumptions that arise from the business idea by using the Business Model Canvas.
(3) Test the assumptions. This is part of what distinguishes the Business Model
Competition with other business competitions (such as the Business Plan
competitions or Business Ideas such as the Student Creativity Program (PKM, by
General Directorate for Higher Education of Indonesia). After the assumptions listed
in the previous stages, test these assumptions on the field by involving the
stakeholders, including of, at least, potential customers of your business idea or by the
suppliers. Testing can be conducted through several methods such as interviews or
administering questionnaires.
Business Model Competition 2014 Information Package 6

(4) Adjust the model. In English terms, this adjustment model is called Pivoting. This
step is done when your Business Model faces some problems or constrains on the
field, such as prospective consumers are less responsive towards the Business Models
that you offer. If you encounter these problems, you need to change one or more
components of the nine aspects of the Business Model Canvas. Be informed that your
goal is to create a business idea that is proven to be preferred by the consumers.
(5) Demonstrate. This step is to demonstrate or indicate that your Business Model have
gained market traction. Market traction is the attention of potential customers or
markets that can be used as quantitative or qualitative evidence. Data shown may be
in the form of raw data or testimony of prospective from consumers, including:
Profitability or how much profits gained
Revenues or profit or turnover gained
Active Users or active consumers
Registered Users or registered consumers
Customer Engagement or consumers responses or involvement
Partnership Clients
Traffic or consumers volume or quantity
(6) Present. The final step is to explain all the process you have gone through to find
and/or identify any problems, or need specific consumer segments. Then, submit your
solution to the problem, the assumptions that appear, and improvements (Pivoting)
that you do to improve your Business Model. If you have reached this stage, then
congratulations, you have to have a viable Business Model and is ready to run and, of
course, have the opportunity to win major prizes of this competition.

2. STAGES AND SCHEDULES OF COMPETITION
Here are the stages of the competition along with the implementation schedule of each
stage. Please note carefully these important dates so you do not miss the chance to win
special prizes plus a chance to meet with Alexander Osterwalder.

Stage I Registration: Fill out the registration form available on our website,
www.espriex.co. The registration period will be open starting on June 8
th
, 2014 and closed on
Sept 20
th
, 2014 at 23:59 pm (The due date of the team registration HAS BEEN
EXTENDED).

Stage II Business Model Submission: Submission of your Business Models will be
opened on June 15
th
, 2014 and ended on September 20
th
, 2014 at 23:59 pm. In this stage,
you should register your team via the online form in our website as well as write down the
link to your presentation video that has been uploaded to Youtube.
Note: We strongly recommend that you register your team first. It doesnt matter if you
arent ready with the presentation. You can send us the link to your presentation video to our
email later before September 20
th
, 2014 at 23.59 pm. The video is your presentation file (by
using Power-Point, Keynote, Prezi, or the like) which has been converted into a video file and
voice-narrated (find out how to do this in the next section of this package).
Business Model Competition 2014 Information Package 7


Stage III Review: All Business Models that have been submitted will be downloaded by
the organizing committee and sent to the Reviewers Team. After doing a review on each
model, top 20 (twenty) Business Models will be set as finalists, each for ten (10) Business
Models of National and International categories. All the review will be conducted by
considering the Assessment Criteria.
NOTE: review will be conducted with fair and objective procedures.

Stage IV Announcement for the finalists: The announcement will be conducted on
September 25
th
, 2014 presented on the official website www.espriex.co. Each finalist will
then be required to re-register associated with the willingness and readiness in relation to
terms and conditions to compete for major prizes directly at Brawijaya University campus on
October 24
th
-25
th
, 2014. Registration may be through online process.

Tahap V Final rounds: Each group (the finalist) will present their Business Model
directly in front of the juries appointed by the Organizing Committee. The duration of
presentation for each group is 10 (ten) minutes which will be followed by question and
answer session with the jury for about ten (10) minutes. Final Round will be held at
Brawijaya University campus on October 24
th
-25
th
, 2014 (preceded by a gala dinner with all
finalists of this competition).
The juries for final round will consist of three people, each element representation of Venture
Capitalist, Business Practitioners and Academics.

3. REGISTRATION REQUIREMENTS
The organizing committee of Business Model Competition 2014 has set some requirements
for this competition as follows:
(1) The team or group consists of 3 to 5 members with the status as active students at the
state/public university or private university across Indonesia. Team members may
consist of a combination of cross-level study S1 (undergraduate) and S2 (masters
would be the maximum and cross-majors study from the same campus.
(2) Business models are included in this competition should be a Business Model that has
been developed by the team. Team members can share roles as owners, founder or co-
founder, and Manager (Management Role) according to the agreement of each
member of the team.
(3) The business sections that will be competed during this event would be:
a. Happening in the seed-funding stage or new companies that have not own
financial record by June 2014.
b. Having not owned professional investment from any venture capitalist financing.
(4) A team or group is allowed appoint one (1) professional mentor from the faculty or
other professionals who have an understanding of the Business Model or a Start-Up
Business.
(5) The committee reserves the right to disqualify any teams that cannot meet the above
requirements.
Business Model Competition 2014 Information Package 8


4. WHAT YOU HAVE TO PRESENT?
In this Business Model competition, the organizing committee would not restrict
creativity in the way the team presentation of his business model. However, the organizing
committee will provide the standard rules as a general and fundamental overview of what
needs to be displayed in a slide presentation of each team participant as follows:

Validated Business Model Slide, berisikan gambaran diagram business model akhir
Anda (Business Model Canvas). Anda perlu memberikan penjelasan bagaimana Business
Model tersebut mampu mengirimkan nilai ke segmen pasar atau pelanggan. Penjelasan
tersebut secara terinci meliputi:
Title Slide. It contains the name of your business that describes who you are and your
business operations or focus.
Assumption slides. It contains narratives of your hypothesis related to the initial idea of
your team. Have your business identified a problem of the consumer (e.g. customer
segments) specifically? It will be only make a hypothesis for your first business model.
Remember that the hypothesis would be in the form of what the customers problem and
what the solution to the problem.
Action Slide. It contains an explanation of how you test that hypothesis, what method or
procedures you have employed to test that hypothesis (namely through an interview on
customers or suppliers, etc.), and what facts or constrains have you encountered? An
important point in this slide is identifying the problem and solution what you find, then
whether the problem-solving process can be supported by the data that you have.
Pivoting slides. It contains narratives over the observation whether your original
hypothesis or assumption have been proven to be wrong or right. Then, make a list of
steps or adjustments or Pivoting you have done related to your previous Business Model.
Validated Business Models Slide. It contains an overview diagram in the end of your
business model (Business Model Canvas). You need to provide an explanation of how
the Business Model is capable of delivering the values to the market or customer
segments. The explanation in detail my include the following aspects:
o Solution Slide, containing an explanation of the solutions towards the problems
faced by your customers that you have found during the observation and show the
proves when there are such comments from the customers, clients, and or any
evidence of sales.
o Go-to-Market Strategy, containing evidence or points that make you think that it is
feasible to run the business, as well as the opinions and convinced opinions that you
have found provided by the consumers for the business.
o Size of Market, containing description of the business prospects of the market share
and discovering how big these opportunities.
o Lesson Learned, containing conclusions and lessons of experiences that you can
find and learn during the process of making the business model, including any
failures or constrains that you experienced because of mismatches with reality
assumptions or errors during the adjustment.
Business Model Competition 2014 Information Package 9


In general, this business model competition aims to:
1) Identify the hypothesis and initial assumptions;
2) Test the assumptions by conducting direct execution on the field (meet with the
customers, suppliers, etc.);
3) Conduct adjustment and pivoting toward the initial assumption based on the
updated information which is gained; and
4) Identity the lessons and experiences from the process.

You should be able to slide emphasize how you get the initial assumptions, how to test
the initial assumptions with the customers, and ultimately obtained the right business
model.

Do you want to know an example of Business Model that is registered at the stage of
registration in Business Model Competition abroad? Open multiple instances of the following
YouTube links:

http://www.youtube.com/watch?v=qQktmppWCbU Fairweather Chef (3
rd
winner
of IBMC 2013)

http://www.youtube.com/watch?v=_o-EDOlcE9k Balance (2
nd
runner-up of IBMC
2013)

5. ASSESSMENT CRITERIA
Each Business Model Canvas that has been submitted to the organizing committee will
be assessed based on four different criteria. Each criterion will be scattered in the five-point
assessment.
These four criteria are:
(1) Creativity, Originality, and Innovation or Update in the creation of the Business
Model, as well as knowledge of a problem consumers (consumer constrains /
problems) were found by the team members;
(2) The ability of teams to perform or make adjustments in Pivoting the Business Model
with the findings in the field
(3) The appropriateness of the Business Model
(4) Presentation techniques in describing the entire process of the business model, from
initial assumptions, testing the assumptions, until the findings of what have been
found in the process of designing the most suitable Business Model.

The following is the examples of assessment criteria that might be referred by the
juries:
Business Model Competition 2014 Information Package 10


Assessment Criteria for Business Model Competition
Name :
Institution :
Title of Proposal :
Category :
Instruction : Give the evaluation () on each item in the sub-item below by referring the description:
1: No/None/Not Appropriate 2: Weak; 3: Enough 4: Good/Appropriate
1 2 3 4
I. Presentation
1 Attractive and confidence during the presentation 5% 0
2 Clarity of the materials being presented 5% 0
3 Organization of the slides and focus of the content 5% 0
4 Management and punctuality for the presentation 5% 0
Total score (max: 16) 20%
II. Assumption or hypothesis
1 3% 0
2 3% 0
3 3% 0
4
Total score (max: 16) 12%
III. Stages in Proposing Assumption
1 The appropriateness between tools & market segmentation 3% 0
2 Creativity and Update and hypothesis testing techniques 3% 0
3 The availability of survey results 3% 0
Total score (max: 12) 9%
IV. Adjustment of Business Model (pivoting)
1 Flexible adjustment towards the proposed initial idea 3% 0
2 Creativity in proposing new solution 3% 0
3 Proposing solution with appropriate scale 6% 0
4 The suitability between solution and market 3% 0
5 Pivoting to identify the market risks 3% 0
6 Pivoting to identify the social changes 3% 0
7 Value added to the news business model 3% 0
Total score (max: 28) 24%
V. The proposal business model
1 Model is reasonable to execute 6% 0
2 Proposing innovative solution to the customers 3% 0
3 Business has clear positioning on the market 6% 0
4 Able to convince the customers 5% 0
5 The prospective potential in the future 6% 0
6 The clarity of the possible targeted margin 6% 0
7 Sustainability (economic, social, and environmental aspects) 3% 0
Total score (max: 28) 35%
100%
Final score 0
Items related to creativity, originality, innovation, and understanding to the customers' problems
Sub-items related to the process of hypothesis testing and pivoting
Sub-items related to the appropriateness of business model
Sub-items related to ability to the presentation
Comment and advice:
Proposing modification of the process, techniques, system
or products/services
3% 0
Proposing new idea or considered as a new
Identificaion of target segmentation
Items and sub-items
Scale Score
(N)
Weighth
(B)
Identification of customers' problems
N.A.
(NxB)
Business Model Competition 2014 Information Package 11

6. PRIZES
The prizes would be higher from the previous edition due to the support from
prospective donators and sponsors for this event. Here are the nominal:
Predicate National Categories (cash)
International Categories
(cash)
1
st
Place USD 1,250 USD 2,000
2
nd
Place USD 750 USD 1,250
3
rd
Place USD 500 USD 750
These prizes would be very beneficial for the winners as the initial capitals to run the proven
Business Model that are referred by the costumers.

7. TIPS FOR UPLOADING VIDEO ON YOUTUBE
The period for uploading your Business Models videos would be within June 15
th
, 2014
until September 20
th
, 2014. With this time range, you have 3 months to build a team, plan,
and carry out the entire stages well. Remember again, three months it would not seem long if
you continue to remember what gifts and benefits you will receive if you win this prestigious
competition.
(1) Provide narration (audio) for your presentation files (Power-Point, Keynote, Prezi, or
others) by using one of the following online software::
Screencast-O-Matic (http://www.screencast-o-matic.com/)
Camtasia Studio (http://www.techsmith.com/camtasia.html)
(2) Choose one of the following video formats that are suitable to be uploaded on
YouTube (remember that your video duration should not be longer than 10 minutes):
.MOV
.MPEG4
.MP4
.AVI
.WMV
.MPEGPS
.FLV
3GPP
(3) Then you need to follow the instructions to upload on YouTube as follows:
https://support.google.com/youtube/answer/57924?hl=id&ref_topic=2888648
(4) To make sure your video would be invisible from other participants, upload your
video by using privacy setting unlisted (for your information that there are three
privacy settings: public, private, and unlisted). After uploading your video with
unlisted privacy setting, you need to copy the link of your video from YouTube on
the registration form provided on June 15th, 2014 in our website.
(5) To finalize, the organizing committee will download your video from the links
provided on the registration form you have submitted.