Chapter 3 Designing a Competitive Business Model and Building a Solid Strategic Plan.
Business Model Innovation: Designing and testing business model in a corporate environment
38
-
Upload
milan-vukas -
Category
Business
-
view
88 -
download
0
Transcript of Business Model Innovation: Designing and testing business model in a corporate environment
RECOMMENDED BY CO-FOUNDER
MILAN VUKASStartup Mentor
Agenda
STEP 1
Introduction
What is a business model?
Enterprise innovation process.
STEP 2
Business Model Canvas Workshop
9 building blocks to a business model.
STEP 3
What’s next?
Maximizing enterprise innovation on a daily basis.
Adobe's Story: Building innovators, not innovations.
Introduction
Strategy Channels Profit Pricing Product
What is a Business Plan?THERE IS NO CLEAR DEFINITION
ONE TERM, DIFFERENT DEFINITIONS
Business Plan:DESCRIBES THE RATIONALE OF HOW AN
ORGANIZATION CREATES, DELIVERS, AND CAPTURES VALUE
Words are NOT enough
Business Model Canvas
The Business Model Canvas is a strategic
management and lean startup tool. It is a visual
chart composed of nine essential building blocks
that describe how a business creates, delivers
and captures value. The Business Model Canvas
is used to design, test, and build new business
models or to document, discuss, and manage
existing ones.
strategyzer.com/canvas
In brief: Business Model Canvas
CUSTOMER SEGMENTS
Different groups of people or organisations
an enterprise aims to reach and serve.
There are different types of Customer Segments:
• Mass Market
• Niche market
• Segmented
• Diversified
• Multi-sided platforms
VALUE PROPOSITIONS
Bundle of products and services that
create value for a specific Customer
Segment.
Elements which contribute to
customer value creation:
• Newness
• Performance
• Customization
Product-Market Fit
CHANNELS
How a company communicates with
and reaches its Customer Segments
to deliver a Value Proposition.
Channel Types:
• Direct: Sales force, Web sales
• Indirect: Partner stores or wholesaler
CUSTOMER RELATIONSHIPS
Type of relationships a company
establishes with specific Customer
Segments.
Categories of Customer Relationships:
• Personal assistance
• Dedicated personal assistance
• Self-service
• Automated services
REVENUE STREAMS
Represents the cash a company generates
from each Customer Segment.
Several ways to generate Revenue:
• Usage fee
• Subscription fees
• Lending / Renting / Leasing
• Licensing
KEY RESOURCES
Most important assets required to make
a business model work.
Key Resources can be categorized as follows:
• Physical
• Intellectual
• Human
• Financial
KEY ACTIVITIES
Most important things a company must do
to make its business model work.
Key Activities can be categorized as follows:
• Production
• Problem solving
• Platform / network
KEY PARTNERSHIPS
Network of suppliers and partners that
make the business model work.
Three motivations for creating partnerships:
• Optimization and economy of scale
• Reduction of risk and uncertainty
• Acquisition of particular resources
COST STRUCTURE
All costs incurred to operate
a business model.
Distinguish between:
• Cost-driven
• Value-driven
Two #funfacts (you need to know)
#funfact #1
LEFT BRAIN
LogicRIGHT BRAIN
Emotion
#funfact #1
LEFT SIDE
EfficiencyRIGHT SIDE
Value
#funfact #2
The Business Model will NOT find you
#funfact #2
YOU have to find the right
Business Model
Municipalities
Making lemonade
Marketing Selling
Ingredients Sales people Booth
Salaries / Commission Flyers Equipment
Lemonade sales Tips
Cold tasty lemonade on-the-go
Personal
Booth sale kellyslemonade .com
Park visitors
Payment Providers
Distribution Partner
Telco Partners
Software Development
Software Developers
Software
Software Development Complaint Management
Free Hardware Sales Skype Out (Prepaid / Subscription)
Free internet & video calling
Mass Customized
skype.com
Headset Partnerships
Web Users Globally
People who want to call phones
Do it yourself!
Use the canvas to describe, design, challenge,
and pivot your business model for any idea you
might have on your mind at the moment.
It works in conjunction with other strategic
management and execution tools and processes.
What’s your business model?
What’s next?
2) Adobe’s Story: Building innovators, not innovations
1) Maximizing enterprise innovation on a daily basis
14 Ways to Apply the Canvas
Kickbox is a new innovation process that Adobe
developed for it’s own use and then open-
sourced so everyone can use it.
It’s designed to increase innovator effectiveness,
accelerate innovation velocity, and measurably
improve innovation outcomes. It can also
optimize innovation investments by reducing
costs compared to traditional approaches.
kickbox.adobe.com
Enterprise innovation at scale: Adobe Kickbox
“You cannot business-model your way out of a shitty product”
Tim O’Neil (CEO, O’Reily Media)
