Business Model Innovation Compass

8 tips for hitting the road

cc: Flickr - Moyan Brenn

Most people* view innovation as

*Most people are wrong Innovation creates value across the entire business model

•  R&D •  Lab magic • Academic • A distinct of part of the value chain

cc: Flickr - UCL mathematical and physical sciences

What is a business model about?

Value “A business model describes how one creates, delivers and captures value”

- Alexander Osterwalder

Who’s it for?

Anyone A business model can be developed on the level of an organization, a department or even an individual. Virtually anyone can map a business model because everyone engages in value creation somehow.

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What does it look like?

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Resources Activities Partners

Costs

Value

Customers Channels

Relationships

Revenues

A business model has an internal and and an external perspective that both are essential for value creation.

So, how do you innovate a business model?

cc: Flickr - sjdunphy

Business Model Innovation is an iterative* process that consists of 4 stages.

Observe

For innovation, it is important to gather profound information on the environment in which a product or service is performed.

Analyze

When information is collected, it is important to make sense of it. The focus here is primarily on recognizing patterns in the data. 

Design

Based on new insights, large amounts of ideas, concepts and solutions are created, and consecutively prioritized.  

 

Develop & test

Solutions should be developed and tested. The goal is to figure out whether the underlying assumptions are correct.  

*Repeat and go back to stage 1

Is that it?

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No, true Business Model Innovation is about balancing two complementary methods:

Observe  

Analyze

Design

 

 

Develop & test

.

 

Agile Service Design

Responding swiftly based on new information

Collaboration instead of specialization

Progress by doing instead of planning

Sensing the external environment in great detail

Developing deep customer understanding

Mapping out the space for value creation

*Repeat and go back to stage 1

What does it look like when you put it together?

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INTERNAL

observe

analyse

develop & test

design

SERVICEDESIGN

"SENSE"

AGILE

"RESPOND"

BUSINESS MODEL

OUTSIDE THE BUILDING

INSIDE THE BUILDING

CustomersChannels

Relationships

Revenues

ResourcesActivititesPartners

Costs

VALUE

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How do I do this?

By engaging in trial and error. using the 8 principles on the next slides!

Observe

#1 Customer centric The customer is your focal point

It is rather obvious, but it is worth repeating: put your individual customer at the heart of your information collection. It is not all about “the market” or “the competition” only.

Key questions: •  Who is your customer? •  What are his or her needs, problems and

aspirations? •  What obstacles does he or she face?

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“Collect information on the customer context” Method: Service design

Observe

#2 Co-creative Collaborate to understand

It is always good to have your customers and stakeholders helping you to get an understanding of their situation. Leverage their willingness to collaborate as much as possible. Key questions: •  Who could you get involved? •  How could you engage customers and

stakeholders to collaborate? •  How can you create a win-win situation?

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“Collect information on the customer context” Method: Service design

Analyze

#3 Sequencing Visualize and explicate journeys

Delivering a value proposition is a journey with distinct stages, but not all of them are evidently present. It is important to get them crystal clear. Key questions: •  What are the stages of the customer journey? •  What are the contact points your customer

cares about? •  Are there parts of the journey you could

simplify without destroying value?

cc: Flickr - Steve Snodgrass

“Derive insights from customer information” Method: Service design

Analyze

#4 Telescoping Swap details and the big picture

Deep user understanding requires zooming in on details, but details can make you lose oversight. Switching between details and the bigger picture is essential for spotting opportunities.

Key questions: •  Does you have the right level of detail? •  Can we bring everything in the big picture? •  Do you switch timely between both?

cc: Flickr - Steve Snodgrass

“Derive insights from customer information” Method: Service design

Design

#5 Validation Create a valid value proposition

It is important to develop a valid proposition that is based on true customer insights, rather than one you can predictably deliver but doesn’t create value. Key questions: •  Can you trace back your value proposition to

customer derived information? •  Are you delivering what you can, or are you

delivering what your customer wants? cc: Flickr - Misco13

“Designing solutions based on customer insights” Method: Agile thinking

cc: Flickr - Misco13

Design

#6 Prioritization First things first

There always are a bunch of things that customers want, but some of them are truly crucial. Don’t miss out on them, and make sure they are top of mind.

Key questions: •  What features would really undermine your

value proposition if you left them out? •  Can you describe what a minimum viable

product would look like?

“Designing solutions based on customer insights” Method: Agile thinking

Develop & Test

#7 Working products Testable solutions

It is important to make working products from the first day, simply because they are testable. And only testing will give you customer feedback to enhance your value proposition.

Key questions: •  Do you know what features you must build to

test your solution? •  Do you know which analytics will guide you in

deciding on the test result? cc: Flickr - glacial 23

“Deploying solutions based on customer feedback”

Method: Agile thinking

Develop & Test

#7 Working products Testable solutions

It is important to make working products from the first day, simply because they are testable. And only testing will give you customer feedback.

Key questions: •  Do you know what features you must build to

test your solution? •  Do you know which analytics will guide you in

deciding on the test result?

#8 Business model teams Interdisciplinary action

When innovating across the business model, team members from both the front-end and back-end of the organization should be involved.

Key questions: •  Is there a front-end and back-end balance in

the team? •  Does everybody bear responsibility for a

perspective of the business model? cc: Flickr - glacial 23

“Deploying solutions based on customer feedback”

Method: Agile thinking

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And now: Repeat!

The more you iterate, the better*

*Because: Change is the new normal and customers are moving targets. The more you iterate, the more you stay in sync.

To navigate a change, you need a compass, and not a rigid roadmap.

www.blinklane.com Mathias Cobben

Han Driessen

Want to know more? Connect & stay tuned!

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