Business Model Innovation
76
Your Business Model how to identify and improve it La Trobe University, Melbourne, July 2007
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Transcript of Business Model Innovation
Your Business Model how to identify and improve it
La Trobe University, Melbourne, July 2007
the menu
what’s on
today?
the alchemy of business model innovation
first: what are your expectations for today?
example of business model
innovation
waste water treatment systems
offercustomer segment
revenue stream
distribution channel
waste water treatment system
Canadian mining sites
one time sales fee
sales force
idea!
sell waste water treatment system
Canadian mining sites
one time sales fee
sales forcetotal waste water
treatment management
Canadian mining sites
recurring service fee
sales force
an exercise
let’s do
to understand
your offers your client segments
your channels
offers client segments
distribution channels
consultingbanking
executivespersonal network
banking knowledge
banking professionals
dedicated website
trainingprogram
sell waste water
treatment system
Canadian mining sites
one time sales fee
sales forcecore activitiescore
capabilities
costs
partner network
client relationship
build treatment systems
water treatment
knowledge
production costs
suppliers follow-up
build treatment systems
water treatment
knowledge
production costs
suppliers follow-up
total waste water treatment
management
Canadian mining sites
recurring service fee
sales forcedispatch repair teams
error free systems
development
call center
variable costs of repair services
business model template
VALUEPROPOSITION
COSTSTRUCTURE
CUSTOMERRELATIONSHIP
TARGETCUSTOMER
DISTRIBUTIONCHANNEL
VALUECONFIGURATION
CORECAPABILITIES
PARTNERNETWORK
REVENUESTREAMS
INFRASTRUCTURE CUSTOMEROFFER
FINANCE
http://business-model-design.blogspot.com
the basics of identifying and
improving business models
1. describe it 2. discuss it 3. improve it4.
implement it
1. describe it
Development plan Quisque augue felis, commodo a, elementum id, faucibus id, sem. Aenean rutrum enim. Praesent pulvinar dignissim nisl. Cras a nunc.
Donec tincidunt odio sit amet lacus. Pellentesque metus tortor, ullamcorper vitae, lobortis vel, euismod in, mi. Ut laoreet, tellus laoreet blandit mollis, massa purus posuere purus, quis molestie ligula massa eu metus. Duis placerat, nulla sit amet ornare interdum, neque nunc mollis leo, vitae porttitor mi orci sit amet neque. Donec at enim. In facilisis tellus gravida ligula. Phasellus ut lorem. Pellentesque ac tortor eget augue suscipit ullamcorper. Aenean eleifend porta orci.
Etiam at arcu. Vestibulum lacinia nunc in eros. Suspendisse potenti. Aliquam erat volutpat. Donec gravida. Lorem ipsum dolor sit amet, consectetuer adipiscing elit. Cum sociis natoque penatibus et magnis dis parturient montes, nascetur ridiculus mus. Maecenas vel enim et metus semper fringilla. Donec ornare arcu. Maecenas faucibus ligula convallis nibh. Mauris dui quam, congue eu, commodo nec, tristique in, enim. Nulla auctor semper urna. Quisque a elit eu purus iaculis vestibulum. Aliquam dictum risus at odio. Fusce at lorem et elit faucibus placerat. Aenean velit. Proin elit odio, blandit et, scelerisque quis, pulvinar a, dui. Nunc magna dolor, bibendum ut, accumsan congue, tincidunt sit amet, neque. Proin consequat tincidunt lacus. In urna dui, congue nec, tincidunt sit amet, facilisis imperdiet, lorem.
Morbi sed nibh. Vivamus vitae dolor. Ut bibendum volutpat mi. Pellentesque quis magna non lectus elementum pretium. Aliquam quis est vitae arcu consequat fringilla. Cras magna risus, placerat eget, egestas consectetuer, ornare vel, felis. Nam ornare justo id orci mattis ultricies. Morbi luctus. Ut pretium odio ac libero. Nunc sollicitudin pharetra lorem. Aenean scelerisque, lacus eget ullamcorper scelerisque, ipsum urna viverra mi, eget viverra quam eros eget velit. Ut lacinia feugiat purus. Cum sociis natoque penatibus et magnis dis parturient montes, nascetur ridiculus mus. Etiam nunc nisl, aliquam blandit, luctus id, commodo laoreet, sem. Phasellus sit amet orci ut sapien vulputate pellentesque. Pellentesque dapibus purus et quam. Nam sit amet magna in neque dignissim sodales. Aenean non justo nec magna lobortis volutpat.
StrategyLorem ipsum dolor sit amet, consectetuer adipiscing elit. Cras in tortor. Sed posuere erat. Maecenas pulvinar nulla eu magna. Vivamus semper, risus ut egestas pulvinar, lectus ante feugiat quam, sit amet congue odio lacus ac ipsum. Aliquam suscipit, est ut volutpat vulputate, nulla felis pulvinar libero, non ornare libero ipsum tristique tortor. Fusce sed lorem vitae justo feugiat malesuada. Donec aliquet. Vivamus semper eros nec diam. Vivamus sem arcu, imperdiet nec, congue ac, scelerisque vel, nulla. Donec et mauris. Integer a nulla vulputate pede consequat euismod. Praesent molestie urna nec leo. Proin eros. Maecenas ac sem nec dui sodales tempus. Maecenas suscipit egestas velit. Suspendisse vel tortor. Proin imperdiet, sem nec aliquet ultrices, nunc est egestas eros, non hendrerit magna eros eget augue. Maecenas sed leo vitae leo faucibus vulputate. Proin dignissim eros at augue.
Nam luctus nulla non nibh. Nam at lorem ac mauris laoreet viverra. In placerat consequat nunc. Donec rhoncus nunc ac urna. Integer vestibulum condimentum orci. Fusce velit turpis, malesuada quis, scelerisque ut, eleifend vitae, ipsum. Vestibulum eu erat. Vestibulum justo nisl, tincidunt et, semper vel, tristique quis, eros. Vestibulum tempus, massa vel consectetuer congue, erat magna consequat purus, a facilisis orci nibh vitae purus. Nam tincidunt venenatis ligula. Nunc orci nulla, ornare quis, lobortis viverra, dapibus at, turpis. Suspendisse sit amet nisl at enim tincidunt blandit. Curabitur augue est, suscipit sed, egestas sit amet, vehicula vitae, tellus. Maecenas nec metus vel nisi interdum pellentesque.
Words
Text
TextText18% 300%
12%
1%
we don’t really know how to
2. discuss it
but there is no common language
3. improve it
we don’t really have the tools
4. implement it
Here
CEOs10°
Managers60°
Here
Staff360°
Ok
everything else than planned
mainthe
challenge
think outside-of-the box
insanity: doing the same thing over and over again
and expecting different results
Albert Einstein
“
”
enabling business model innovation
user-centered
creativity & exploration
interdisciplinary approach
strategic fit
more examples
what’s the connection?
activitiesprecision
micro-engineering
costs
partners client relationship
mechanical watches
luxury buyers
revenue streams
channelsmechanical
joints patients
Cemex example
activitiescore
competencies
costs
partners client relationship
cement bycubic meter
builders
revenue streams
channelscement delivered
during time window
on time delivery
fleet management
the business model design
process
1. identify interdisciplinary stakeholders-> set-up team
2. understand (business) environment–> frame problem
3. suspend reality-> ideate
4. bring back reality -> prototype
5. chose suitable design-> decide
6. execute-> project portfolio
7. evaluate, learn and redesign-> manage improvement
all photos from Flickrunder a creative commons licenseauthors indicated in comment page
of ppt
annex Iother
the business modeler’s toolbox
co-creation
ideation
visualization
prototyping
some examples
Goldcorp
mining
low costs through open exploration
CUSTOMERRELATIONSHIPS
CUSTOMERSEGMENTS
exploitingmines
“geology prize”500’000 $US
REVENUESTREAMS
DISTRIBUTIONCHANNELS
Goldcorp publicly shared all of its geological data and offered US$ 500’000 in prizes for determining where they
might find the next 6 million ounces of gold
research
from copyright to creative commons
Skype
free VoIP & value added services
software development
website
global(non segmented)
deliver voice & video quality
“eBay”
large scalelow margin
internetsoftware
development
free voice-over-IP VoIP telephony & value-added services
1291 Cityhomes
low cost accommodation
New York
low cost
CUSTOMERRELATIONSHIPS
the cost sensible
renting out rooms
keep down costs
apartment owners
rents
DISTRIBUTIONCHANNELS
find demand
young curious Swiss
low-cost hotel/rental in New York City
Tecnovate
low-cost multi-lingual call
center outsourcing
low cost
CUSTOMERRELATIONSHIPS
European corporations
ACTIVITYCONFIGURATION
keep down costs
“import” young curious
Europeans to India to work
REVENUESTREAMS
DISTRIBUTIONCHANNELS
business process outsourcing “up-side down” in India
from bloated head to the long tail
VALUEPROPOSITION
COSTSTRUCTURE
CUSTOMERRELATIONSHIP
TARGETCUSTOMER
DISTRIBUTIONCHANNEL
VALUECONFIGURATION
CORECAPABILITIES
PARTNERNETWORK
REVENUESTREAMS
FREE advertising supported mobile
telephony
mobile network operator that
“rents out” capacity to Blyk
subscribers fill out profile on the
Internet
marketing to mobile users with
an interesting advertising profile
regular ad messages via mobile phone
marketing
paying mobile phone minutes
the young and the hip
increasing the number of mobile phone users with the right profile to
increase the value for
advertisers
INFRASTRUCTURE CUSTOMER
OFFER
FINANCE
access to a pool of targeted young advertising public
advertising fees
finding and contracting advertisers
advertisers
sales force
annex IIbusiness model
template
VALUEPROPOSITION
COSTSTRUCTURE
CUSTOMERRELATIONSHIP
TARGETCUSTOMER
DISTRIBUTIONCHANNEL
VALUECONFIGURATION
CORECAPABILITIES
PARTNERNETWORK
REVENUESTREAMS
INFRASTRUCTURE CUSTOMEROFFER
FINANCE
a business model describes the value an organization offers to various customers and portrays the capabilities and partners required for creating, marketing, and delivering this value and relationship capital with the goal of generating profitable and
sustainable revenue streams
VALUEPROPOSITION
COSTSTRUCTURE
CUSTOMERRELATIONSHIP
TARGETCUSTOMER
DISTRIBUTIONCHANNEL
VALUECONFIGURATION
CORECAPABILITIES
PARTNERNETWORK
REVENUESTREAMS
gives an overall view of a company's bundle of products and services
portrays the network of cooperative
agreements with other companies
describes the channels to communicate and
get in touch with customers
describes the arrangement of
activities and resources
explains the relationships a
company establishes with its customers
sums up the monetary consequences to run a
business model
describes the revenue streams through which
money is earned
describes the customers a company wants to offer value to
outlines the capabilities required to run a
company's business model
INFRASTRUCTURE CUSTOMER
OFFER
FINANCE
describing a company’s business model
VALUEPROPOSITION
value proposition 1value proposition 2
…
OFFER
describing a company’s offer
VALUEPROPOSITION
TARGETCUSTOMER
value proposition 1value proposition 2
…
target customer 1target customer 2
…
CUSTOMEROFFER
describing who a company offers value to
VALUEPROPOSITION
TARGETCUSTOMER
DISTRIBUTIONCHANNEL
value proposition 1value proposition 2
…
distribution channel 1distribution channel 2
…
target customer 1target customer 2
…
CUSTOMEROFFER
describing how a company reaches its customers
VALUEPROPOSITION
TARGETCUSTOMER
CUSTOMERRELATIONSHIP
value proposition 1value proposition 2
…
relationship type 1relationship type 2
…
target customer 1target customer 2
…
CUSTOMEROFFER
describing the relationships a company builds
TARGETCUSTOMER
REVENUESTREAM
revenue stream 1revenue stream 2
…
target customer 1target customer 2
…
FINANCE
VALUEPROPOSITION
value proposition 1value proposition 2
…
OFFER CUSTOMER
describing how a company makes money
CORECAPABILITIES
VALUEPROPOSITION
core capability 1core capability 2
…
value proposition 1value proposition 2
…
OFFERINFRASTRUCTURE
describing what capabilities are required
describing what activities are required
VALUEPROPOSITION
VALUECONFIGURATION
CORECAPABILITIES
value proposition 1value proposition 2
…
core capability 1core capability 2
…
activity 1activity 2
…
INFRASTRUCTURE OFFER
describing the partners that leverage the business model
VALUEPROPOSITION
PARTNERNETWORK
CORECAPABILITIES
value proposition 1value proposition 2
…
core capability 1core capability 2
…
partner 1partner 2
…
INFRASTRUCTURE OFFER
VALUEPROPOSITION
COSTSTRUCTURE
cost account 1cost account 2
…
value proposition 1value proposition 2
…
FINANCEINFRASTRUCTURE OFFER
describing the costs of a business model
CORECAPABILITIES
core capability 1core capability 2
…
