Transcript

BUSINESS MODEL INNOVATION

Training Summary

@patrickpijl @maaikedoyer @BusModInc

THE WORLD IS CHANGING

ONLINE REVOLUTION

MARKETS CAME ALREADY UP THE SPEED OF DEVELOPMENTS HAS INCREASED

DESIGNING BETTER BUSINESSES DESIGNING BETTER BUSINESSES

CUSTOMER SEGMENTS

KEY PARTNERS

COST STRUCTURE REVENUE STREAMS CHANNELS

CUSTOMER RELATIONSHIPS

KEY RESOURCES

VALUE PROPOSITIONS KEY ACTIVITIES

YOUR CURRENT BUSINESS MODEL

CURRENT BUSINESS MODEL

WHAT KIND OF RELATIONSHIP DO WE MAINTAIN WITH OUR

CUSTOMERS?

PERSONAL CONTACT? AUTOMATIC? SELF-

SERVICE?

THROUGH WHAT CHANNELS DO WE

DELIVER OUR PRODUCTS AND

SERVICES?

WHAT CUSTOMER NEEDS DO WE SATISFY?

WHAT PROBLEM DO WE HELP

OUR CUSTOMERS SOLVE?

WHAT ADVANTAGES DO OUR PRODUCTS AND SERVICES PROVIDE OUR CUSTOMERS

WITH?

WHAT PRODUCTS AND SERVICES DO WE DELIVER TO OUR

CUSTOMERS

WHAT TYPE OF KEY ACTIVITIES DO WE

PERFORM?

WHAT KEY RESOURCES DOES OUR PROPOSITION

REQUIRE?

PHYSICAL? INTELLECTUAL?

HUMAN? FINANCIAL?

WHO ARE OUR KEY PARTNERS?

WHAT IS OUR

MOTIVATION TO WORK WITH PARTNERS?

WHAT KEY

RESOURCES DO WE ACQUIRE THROUGH

PARTNERS?

WHAT KEY ACTIVITIES DO OUR PARTNERS

PERFORM?

WHO IS OUR CUSTOMER?

FOR WHOM DO WE CREATE VALUE?

CAN WE

DISTINGUISH DIFFERENT CUSTOMER SEGMENTS?

WHAT ARE THE INHERENT COSTS IN OUR CURRENT

BUSINESS MODEL?  

WHAT IS THE SIZE OF EACH COST?

WHAT REVENUE STREAMS DO WE

GENERATE?

WHAT IS THE SIZE OF EACH REVENUE STREAM?

CURRENT BUSINESS MODEL

+/- +/- +/-

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THE CONTEXT

WHAT IS HAPPENING IN THE WORLD AROUND YOU?

VISION AND AMBITION

WHAT IS YOUR HIGHER PURPOSE?

CUSTOMER DISCOVERY

WHO IS OUR CUSTOMER? WHAT DOES HE OR SHE WANTS?

WHAT IS HER WILLINGNESS TO PAY?

WHAT IS THE JOB YOU GET DONE FOR YOUR CUSTOMER?

THE BUSINESS MODEL PROCESS

!! ! ! ! ! ! !!!!!!!!!!DESIGNING BETTER BUSINESSES

!

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BUSINESS MODEL INNOVATION

SHAKE YOUR BUSINESS MODEL!

DESIGN? IT’S A JOURNEY OF EXPLORATION

1. GENERATE OPTIONS 2. EXPLORE OPTIONS

3. CHECK AGAINST DESIGN CRITERIA 4. REPEAT

IT’S A PROCESS! THERE IS NO SINGLE RIGHT ANSWER

KILL YOUR DARLINGS!

BUSINESS MODEL INNOVATION TECHNIQUES

FORESEE THE FUTURE

“THIS PRESENT MOMENT USED TO BE THE UNIMAGINABLE FUTURE.”

Stewart Brand Co-Founder, Global Business Network

“The Clock of the Long Now”

FRESHWATCHING

ELIMINATE   RAISE  

Which  factors  can  you  eliminate  that  your  industry  has  long  competed  on?  

Which  factors  should  be  raised  well  above  the  industry’s  standard?  

REDUCE   CREATE  

Which  factors  should  be  reduced  well  below  the  industry  standard?  

Which  factors  should  be  created  that  the  industry  has  never  offered?  

BLUE OCEAN

APPLY BUSINESS MODEL PATTERNS

CHEAP INKJET PRINTERS ENCOURAGE YOU TO BUY EXPENSIVE CARTRIDGES

Top 20% Focus on a small Number of products, Each selling in high volume

LONG TAIL Focus on a lage number of products, each selling in low volumes

#"of"products"

#"of"s

ales

"

OFFER

DISTRIBUTION CHANNELS

CUSTOMER RELATIONSHIPS

CUSTOMER SEGMENTS

REVENUE STREAMS COST STRUCTURE

KEY ACTIVITIES

PARTNER NETWORK

KEY RESOURCES

The Multi-Sided Platform Pattern

Revenue flow 2

Revenue flow 1

Value Proposition 1

Customer Segment 1

Value Proposition 2

Customer Segment 2

Platform

Platform Management

Service

Provisioning

Platform Promotion

Possible Revenue flow

Subsidy

Platform Management and Development

FROM OWNING TO USING

4 epicenters of innovation

Resource driven Proposition driven

Customer driven Revenue driven

LOOK AT THE CURRENT BUSINESS MODEL…

… AND WRITE DOWN THE 3 MOST IMPORTANT PRODUCTS OR SERVICES

REMOVE NUMBER 1! WHAT WILL YOU DO?

“WHAT IF….?”

WHERE ELSE CAN WE SELL

OUR PRODUCTS

WHICH PARTNERS CAN ADD EVEN MORE VALUE

WHICH SERVICES CAN

WE OFFER

HOW CAN WE IMPROVE OUR

RELATIONSHIP WITH OUR CUSTOMERS

HOW CAN WE ELIMINATE

FIXED COSTS

BIG DATA

HOW CAN WE DOUBLE OUR

TOTAL REVENUES

WHAT IF WE OFFER OUR

PRODUCT FOR FREE

HOW CAN WE IMPROVE OUR

CUSTOMERS LIFE

WHICH NEW CUSTOMER SEGMENTS

CAN WE SERVE

WHAT IF YOU WOULD SELL A SUBSCRIPTION

OUR WORST NIGHTMARE

BUSINESS MODEL OPTION

WHAT KIND OF RELATIONSHIP DO WE MAINTAIN WITH OUR

CUSTOMERS?

PERSONAL CONTACT? AUTOMATIC? SELF-

SERVICE?

THROUGH WHAT CHANNELS DO WE

DELIVER OUR PRODUCTS AND

SERVICES?

WHAT CUSTOMER NEEDS DO WE SATISFY?

WHAT PROBLEM DO WE HELP

OUR CUSTOMERS SOLVE?

WHAT ADVANTAGES DO OUR PRODUCTS AND SERVICES PROVIDE OUR CUSTOMERS

WITH?

WHAT PRODUCTS AND SERVICES DO WE DELIVER TO OUR

CUSTOMERS

WHAT TYPE OF KEY ACTIVITIES DO WE

PERFORM?

WHAT KEY RESOURCES DOES OUR PROPOSITION

REQUIRE?

PHYSICAL? INTELLECTUAL?

HUMAN? FINANCIAL?

WHO ARE OUR KEY PARTNERS?

WHAT IS OUR

MOTIVATION TO WORK WITH PARTNERS?

WHAT KEY

RESOURCES DO WE ACQUIRE THROUGH

PARTNERS?

WHAT KEY ACTIVITIES DO OUR PARTNERS

PERFORM?

WHO IS OUR CUSTOMER?

FOR WHOM DO WE CREATE VALUE?

CAN WE

DISTINGUISH DIFFERENT CUSTOMER SEGMENTS?

WHAT ARE THE INHERENT COSTS IN OUR CURRENT

BUSINESS MODEL?  

WHAT IS THE SIZE OF EACH COST?

WHAT REVENUE STREAMS DO WE

GENERATE?

WHAT IS THE SIZE OF EACH REVENUE STREAM?

EVALUATION AND QUALIFICATION

BUSINESS MODEL MECHANICS

DEF: BUSINESS MODEL MECHANICS THE INNER WORKINGS OF AN ORGANIZATION’S BUSINESS MODEL. HOW THE BUILDING BLOCKS OF A BUSINESS MODEL WORK TOGETHER TO PRODUCE A BETTER OUTCOME

source: www.strategyzer.com

6 QUESTIONS HOW DO YOU PERFORM ON A SCALE FROM 0 TO 10?

0 10 2 4 6 8

source: www.strategyzer.com

MECHANICS:

SWITCHING COSTS

HOW EASY OR HARD IS IT FOR YOUR CUSTOMER TO SWITCH TO ANOTHER

COMPANY?

source: www.strategyzer.com

MECHANICS:

RECURRING REVENUES

IS EVERY SALES A NEW EFFORT (TRANSACTIONAL) OR WILL IT

RESULT IN FOLLOW-UP REVENUES AND PURCHASES?

source: www.strategyzer.com

MECHANICS:

EARN BEFORE YOU SPEND

ARE YOU EARNING MONEY BEFORE YOU ARE SPENDING IT (E.G. FOR

PRODUCTION, PLATFORMS ETC.)?

source: www.strategyzer.com

MECHANICS:

GAME CHANGING COST STRUCTURE

IS YOUR COST STRUCTURE

SUBSTANTIALLY DIFFERENT AND BETTER THAN THAT OF

COMPETITORS?

source: www.strategyzer.com

MECHANICS:

GETTING OTHERS TO DO THE WORK

HOW MUCH DOES YOUR BUSINESS MODEL GET CUSTOMERS OR THIRD

PARTIES TO CREATE VALUE FOR YOU?

source: www.strategyzer.com

MECHANICS:

SCALABILITY

HOW RAPIDLY AND HOW EASILY CAN YOU GROW YOUR BUSINESS MODEL

WITHOUT HITTING ROADBLOCKS (E.G. INFRASTRUCTURE, CUSTOMER

SUPPORT ETC.)

source: www.strategyzer.com

WHAT IS YOUR SCORE?

BUSINESS MODEL VALIDATION

THINK ABOUT YOUR NEW BUSINESS MODEL AS IF YOU ARE A START-UP

What IS actually a start-up?!

“A START-UP IS NOT A SMALL VERSION

OF A LARGE COMPANY.”

Steve%Blank%

A START-UP IS A TEMPORARY

ORGANIZATION IN SEARCH FOR A

PROFITABLE, SCALABLE AND REPEATABLE BUSINESS MODEL.

A START-UP IS ABOUT SEARCHING

Steve%Blank%

A (LARGE) COMPANY IS ABOUT

EXECUTION Steve%Blank%

YOU NEED TO CLARIFY YOUR ASSUMPTIONS

YOU NEED TO TEST YOUR ASSUMPTIONS

Source: Alex Osterwalder Instagram

GET OUT OF THE BUILDING…

WATCH FIRST, THEN ASK LOOK FOR NEEDS, NOT SOLUTIONS

PIVOT YOUR BUSINESS MODEL

STOP FEATURITIS NOW

10 TIPS FOR BUSINESS MODEL

INNOVATION

1  START WITH THE AS-IS. MAP THE CURRENT BUSINESS MODEL, CONTEXT AND VISION ON A LARGE POSTER WITH 3M POST IT NOTES.

2  DON’T TRY THIS ALONE. LET YOUR COLLEAGUES OR FRIENDS HELP YOU!

3  LEARN FROM OTHER BUSINESS MODELS!

4  APPLY BUSINESS MODEL PATTERNS.

5  THINK AS A BUSINESS MODEL DESIGNER. DO NOT RELY ON 1 MODEL, BUILD PROTOTYPES

PROTOTYPING LET’S YOU FAIL EARLY TO SUCCEED SOONER

IDEO.COM

“ ”

6  “VISIT THE FUTURE FREQUENTLY!”

7  “SHOW ME THE MONEY!”

8  “DRAWING IS THE NEW WRITING” THINK & WORK VISUALLY!

9  DON’T RELY ON YOUR ASSUMPTIONS.

JUST DO IT! 10  

CONTACT US FOR MORE INFORMATION!

MAAIKE DOYER STRATEGY DESIGNER

E: [email protected] T: +31 6 81 82 25 18 W: www.businessmodelsinc.com

PATRICK VAN DER PIJL CEO & FOUNDER

E: [email protected] T: +31 6 51 29 57 78 W: www.businessmodelsinc.com

DESIGNING BETTER BUSINESSES DESIGNING BETTER BUSINESSES


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