Business Model Innovation: Introduction to Implementation ?· Business Model Innovation: Introduction…

  • Published on
    30-Aug-2018

  • View
    212

  • Download
    0

Embed Size (px)

Transcript

  • Business Model Innovation:

    Introduction to Implementation

    Dr Michael TengAssistant Secretary-General

    Singapore Manufacturing Federation

    DBA(UNISA), MBA(NUS), BEng, FCMI, FIMechE, FIEE, CEng, PEng, FCIM, FMIS, PMC, ACTA

    24 March 2015

  • Business Model Innovation:

    How to beat your giant?

  • Number of Years to Reach

    50 Million Audience

    BicycleVS

    Car

    Fountain pen VS

    Ball pen

    Subway VS

    McDonalds

    VietnamVS

    USA War

    Singapore Airlines VS

    Pan Am

    Facebook VS

    Myspace

    Dell VS

    IBM

    Amazon VS

    BordersSmall Japanese

    VSBig cars in US

    iTunes VS

    Music industry

    Tablet VS

    Notebook

    Google VS

    YahooFacebook ? years

    Internet 5 years

    TV 13 years

    Radio 28 years

    The underdogs have beaten the big boys through innovation and productivity

    Nokia VS

    Motorola

    CNN VS

    NBC

  • Strategy 1: Find the Right NicheCustomer Competition Orientation Matrix

    Low

    Level of

    Competition

    Orientation

    Level of Customer Orientation

    To be a follower, understand the competitors and customers.

    To be the leader, understand the market.

    High

    High

    Competition-Driven

    Myspace, Yahoo, Motorola

    Market-Driven

    Facebook, Google, Apple

    Customer-Driven

    Geocities, Netscape, Wang Computers

    Internally-Driven

    The Well, Archie, Creative Tech

  • Source: http://businessmodelgeneration.com/canvas/bmc?_ga=1.199513454.1576209768.1424664901

    Strategy 2: Business Model CanvasKey PartnersWho are our Key Partners?

    Who are our key suppliers?

    Which Key Resources are we

    acquiring from partners?

    Which Key Activities do partners

    perform?

    Motivations for Partnerships

    Optimization and economy

    Reduction of risk and uncertainty

    Acquisition of particular resources

    and activities

    Key ActivitiesWhat Key Activities do our Value

    Propositions require?

    Our Distribution Channels?

    Customer Relationships?

    Revenue streams?

    Categories

    Production

    Problem Solving

    Platform/Network

    Value PropositionsWhat value do we deliver to the customer?

    Which one of our customers problems are

    we helping to solve?

    What bundles of products and services are

    we offering to each Customer Segment?

    Which customer needs are we satisfying?

    Characteristics

    Newness

    Performance

    Customization

    Getting the Job Done

    Design

    Brand/Status

    Price

    Cost Reduction

    Risk Reduction

    Accessibility

    Convenience/Usability

    Customer RelationshipsWhat type of relationship does each of our Customer Segments expect us to establish and

    maintain with them?

    Which ones have we established?

    How are they integrated with the rest of our business model?

    How costly are they?

    Examples

    Personal assistance, Dedicated Personal Assistance, Self-Service

    Automated Services, Communities, Co-creation

    Customer

    SegmentsFor whom are we creating value?

    Who are our most important

    customers?

    Mass Market

    Niche Market

    Segmented

    Diversified

    Multi-sided Platform

    Key ResourcesWhat Key Resources do our Value Propositions require?Our Distribution Channels? Customer Relationships?Revenue Streams?

    Types of ResourcesPhysicalIntellectual (brand patents, copyrights, data)HumanFinancial

    ChannelsThrough which Channels do our Customer Segments want to be reached?

    How are we reaching them now?

    How are our Channels integrated?

    Which ones work best?

    Which ones are most cost-efficient?

    How are we integrating them with customer routines?

    Channel Phases

    1. Awareness

    How do we raise awareness about our companys products and services?

    2. Evaluation

    How do we help customers evaluate our organizations Value Proposition?

    3. Purchase

    How do we allow customers to purchase specific products and services?

    4. Delivery

    How do we deliver a Value Proposition to customers?

    5. After sales

    How do we provide post-purchase customer support?

    Cost StructureWhat are the most important costs inherent in our business model?

    Which Key Resources are most expensive?

    Which Key Activities are most expensive?

    Is your business more

    Cost Driven (leanest cost structure, low price value proposition, maximum automation, extensive outsourcing)

    Value Driven (focused on value creation, premium value proposition)

    Sample Characteristics

    Fixed Costs (salaries, rents, utilities)

    Variable costs

    Economies of scale

    Economies of scope

    Revenue StreamsFor what value are our customers really willing to pay?

    For what do they currently pay?

    How are they currently paying?

    How would they prefer to pay?

    How much does each Revenue Stream contribute to overall revenues?

    Types

    Asset sale

    Usage fee

    Subscription Fees

    Lending/Renting/Leasing

    Licensing

    Brokerage fees

    Advertising

    Fixed Pricing

    List Price

    Product feature dependent

    Customer segment

    dependent

    Volume dependent

    Dynamic Pricing

    Negotiation (bargaining)

    Yield Management

    Real-time-Market

    strategyzer

  • Treatment Phase I:

    Surgery

    Treatment Phase II:

    Resuscitation

    Treatment Phase III:

    Therapy

    Strategy 3: Analyse the Situation for Bottlenecks

    Productivity Productivity/Innovation Innovation

    Identify the viruses/giants attacking the company

    Determine which of the three phases of corporate

    transformation and turnaround are applicable

    The three phase transformation methodology will help to identify and break the bottlenecks so that the company can be faster, cheaper and better

    http://bp2.blogger.com/_rD3fj5P8gmE/RzWoFMozPJI/AAAAAAAAAOU/Xaf9eaQ1Saw/s320/jinseng01.jpghttp://bp2.blogger.com/_rD3fj5P8gmE/RzWoFMozPJI/AAAAAAAAAOU/Xaf9eaQ1Saw/s320/jinseng01.jpghttp://www.dkimages.com/discover/previews/945/50003358.JPGhttp://www.dkimages.com/discover/previews/945/50003358.JPG

  • Strategy 4: Execute Productively and

    Innovatively

    Productivity and innovation depend on effective & efficient corporate transformation-

    improving efficiency effectively and effectiveness efficiently

    Corporate Transformation Index TM

    = Productivity @ Innovation

    = Output/Input x Innovation Culture

    Productivity is increasing revenue and decreasing costs or increasing output and

    decreasing input

    Innovation Culture is the measurement of the predisposition of the company to

    implement innovation

    Successful execution is key to any innovative and

    productivity initiatives

  • Video: How small companies can take on the big boys

    David defeated Goliath by targeting the right niche and executing

    with innovativeness and productiveness

    ../../OLD DESKTOP/Youtube/SMALL_COMPANIES_CAN_BEAT_BIG_BOYS.mpg

  • Number of Years to Reach

    50 Million Audience

    BicycleVS

    Car

    Fountain pen VS

    Ball pen

    Subway VS

    McDonalds

    VietnamVS

    USA War

    Singapore Airlines VS

    Pan Am

    Facebook VS

    Myspace

    Dell VS

    IBM

    Amazon VS

    BordersSmall Japanese

    VSBig cars in US

    iTunes VS

    Music industry

    Tablet VS

    Notebook

    Google VS

    YahooFacebook ? years

    Internet 5 years

    TV 13 years

    Radio 28 years

    The underdogs have beaten the big boys through innovation and productivity

    Nokia VS

    Motorola

    CNN VS

    NBC

  • Dr Mike Tengmichaelteng@smfederation.org.sg

    www.smfederation.org.sg

    BUSINESS MODEL INNOVATION

  • Best Selling Book: Corporate Turnaround: Nursing A Sick Company Back To Health.

    Endorsed by: Professor Philip Kotler, Professor Jagdish Sheth, Mr Oei Hong Leong, Dr Wong Yip Yan

    1. Corporate Turnaround : Nursing a sick company back to health 15. Business Model Innovation: Introduction to Implementation

    2. Internet Turnaround 16. Ancient Chinese Wisdom: Zheng He, Sun Zi, Confucius

    3. Change Management Leadership 17. How the small can beat the big companies

    4. Buying and selling of distressed companies 18. Jesus: The corporate turnaround expert

    5. Corporate Turnaround: GlobPerspective 19. Africa, the next economic tiger: Lessons from Asia

    6. Business Diagnosis 20. What we can learn from the animals about office politics

    7. Turnaround Yourself 21. Office Politics Mania

    8. Fundamentals of buying and selling companies 22. Admiral Zheng He: The collaborative transformational leader

    9. Inspiring Notebook: Corporate Transformation 23. Business Model Innovation: Example

    10. Ultimate Internet Strategy 24. Corporate Cyberwar

    11. Training Manual: Corporate Turnaround Books are available for purchase at

    www.amazon.com

    http://www.amazon.com/

  • THANK YOU

    13

Recommended

View more >