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Prototype OBI - Open Business Innovation for utilities

Open Business innovation for utilities - Low fidelity prototype

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Page 1: Open Business innovation for utilities - Low fidelity prototype

Low-Fidelity Prototype

OBI - Open Business Innovation for utilities

Page 2: Open Business innovation for utilities - Low fidelity prototype

Customer Segments

Energy industries is facing a major change in their business model. Especially the small and medium sized community based utilities need a lot of innovation to survive the next 10 to 15 years focusing now mainly on commodities. also other SME’s are facing interruptive innovations, challenging their established business model.

 SME's and SMB's (Small and medium enterprises and small and medium-sized businesses)

SMU's Utilities used by the market of young people having dynamic zeal for an invention.

Used by Energy efficient companies for their alternative and renewable resources.

Page 3: Open Business innovation for utilities - Low fidelity prototype

Pains and Gains

Personal resources: They have only few people doing the daily stuff, having just little time to think about the new business.

Financial resources: They have limited financial resources to do all the customer development needed (Steve Blanks Concept).

Limited knowledge: They have only little knowledge about the tools and the processes in general on invention new business models

Page 4: Open Business innovation for utilities - Low fidelity prototype

Pains and Gains(Continued)

That our clients want a way to be innovating with new technologies ,new structures and faster way of responding to changing market needs but cant afford the high costs of technical developments and the efficiency that goes with catering to changing market needs. ( For the Alternative Renewable Energy Companies .

Let’s Be specific in terms of the Pains that they are experiencing otherwise The broad concepts of Financial resources , technology adaptations and limited knowledge cant be addressed

1) That our clients want to access the shared knowledge that BIG Corporations are able to use to their advantage. ( The concept of Shared Service )

2) Our Targeted Clients wants to be able to collaborate on Selected Projects ( we need to Define this along the way) in order to cut down on the costs ,if they were to do it alone) .

3) Concept of Project collaboration and Cost Reduction is another concern.

Page 5: Open Business innovation for utilities - Low fidelity prototype

Offerings for the Client

Our business is to support these SME’s to invent new business models and opportunities faster, with less risk and more profit through the means of open innovation and collaborative projects.

It’s NOT about energy efficiency, renewable energies and so on, it´s just about innovation management and business model design.

Page 6: Open Business innovation for utilities - Low fidelity prototype

Offerings for the Client (Continued)

We could develop an Open Innovation Business Platform that would serve our clients with the following Services:-

1) A Platform that operates on probably a cloud server , that provides shared services like technology innovations , strategic and tactical knowledge about how other companies are able to overcome their daily problems , and other things.

2) Project collaborations Platform to which they are able to meet and discuss new ways of collaborating on new projects

3) Webinars , videos and audios where we can saved these formats and they can access anytime , anywhere they would have a need for it.

Page 7: Open Business innovation for utilities - Low fidelity prototype

Customer Relationship Management

 Drive product development working with engineering, project managers, external manufacturers, operations, regulatory and marketing teams and most important building a strong bond with our end customers through our quality products.

Canvasing the membership globally and to serve as the internal and external evangelist for our product offering, working with the sales channel and key customers

Page 8: Open Business innovation for utilities - Low fidelity prototype

Cost Structure

Cost for quality and development. Cost for design the business model. Cost for sales and finance. Cost for employees in form of salaries. Cost for advertisement and channels. Cost for location / catering for workshops.

Page 9: Open Business innovation for utilities - Low fidelity prototype

Cost Structure (Continued)

We should be able to define the Variable costs that our model would entail and the Fixed costs . Knowing these costs , we could define our contribution margins

and so determine this to be the base costs structure for our business model.

• Having a Structured Based Cost , we can determine adding any other features to our innovation Platform would help us a pricing model for the additional features we might to incorporate .

Page 10: Open Business innovation for utilities - Low fidelity prototype

Strategy and Operational Management

Page 11: Open Business innovation for utilities - Low fidelity prototype

Strategic Management-OBI

• Industrialization of services business model

• Business model used in strategic management are:-

1. Services marketing that treats service as a provision.

2. An industrial process, subject to Industrial Optimization procedures.

Page 12: Open Business innovation for utilities - Low fidelity prototype

PLM Model-OBI

Page 13: Open Business innovation for utilities - Low fidelity prototype
Page 14: Open Business innovation for utilities - Low fidelity prototype

Service Model-OBI

The main drivers for a company to establish or optimize its service management practices are varied:• High service costs can be reduced, i.e. by integrating the service and products supply chain.• Inventory levels of service parts can be reduced and therefore reduce total inventory costs.• Customer service or parts/service quality can be optimized.• Increasing service revenue.• Reduce obsolescence costs of service parts through improved forecasting.• Improve customer satisfaction levels.• Reduce expediting costs - with optimized service parts inventory, there is no need to rush orders to customers.• Minimize technician visits - if they have the right part in hand, they can fix the problem on the first visit.

Page 15: Open Business innovation for utilities - Low fidelity prototype

Thank You