Innovation beyond current borders - SEB bankas...We do not need a drilling machine, screws and...
Transcript of Innovation beyond current borders - SEB bankas...We do not need a drilling machine, screws and...
Innovation beyond current borders
SEB Innovation Lab March 2014 Dr. Patrick Stähler, fluidminds
Disruptive
Innovation
Models and
Growth
Easy innovation in the past In a market of scarcity, all products were bought as long as money was there
Times are changing We live in a world of abundance. There is everything. Dozens of Yoghurts. 100s of T-Shirts……..
“Well, I know we are in a commodity market where the price is key, but I believe we can sell the good for 10x as much as before.”
Would you dare to say this? What would be the answer of your boss?
„The firm dominates the global market with a market share of 40% and has outperformed technology giants like Siemens or Motorola. No other firm brings out more new products (around 80 p.a.) to the market. Among youngsters, it the most admired brand in its field. ”
Would you invest in this firm?
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1 device
Once Apple disrupted the market, sustaining innovation started Samsung is playing the old game of more of very similar devices to suit everybody.
A great innovation has to wow your customers. What companies wowed you lately?
Innovation is all about being different
But if everybody is doing he same, you have to find something else
The best is if your customers love your business due to your fantastic value proposition and and your ability to deliver what you promise
„Which innovation expanded the global market for mobile communication the most?*“
*After the invention of mobile telephony itself
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Which innovation made this possible?
Prepaid
A small change in billing opened new markets in Africa, Asia, Latin America, Youths, etc..
Technological Innovation
Process Innovation
Product Innovation
Business Model Innovation
iEngines Start your innovation engines!
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Do you know this man? Hans Rausing = Inventor of the Tetra Pack Systems
He could have sold his packaging machines, but…
But he sold packaged services
Tetra Pack is not a product innovation but an implementation of an innovative value proposition aka business model
We need new engines for innovation.
Outside the box thinking
What are engines
that drive
innovation?
product/services happy customers
creates
X
value proposition
solves
delivered by
business model
The customer perspective: Technology does not create value. It is the value proposition the customer loves
customer problem
addressed by
„What is a
business model?“
The business model is the DNA of your business
Are you aware of your DNA?
The business model gives meaning to your employees and customers
4 key questions for a successful business:
What excites our customers?
Value Proposition
How do we create value for our customers?
Value Architecture
How do we earn money?
Revenue Model
Who is on our team? What values do we pursue?
Team & Values
What industry are we in? Who are our competitors? “
„
In which industry are we in? “
„
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That was the job the customer wanted to do. “
„
Customer job to be done We do not need a drilling machine, screws and dowels. We want to hang up a picture. Customers hire a product or service to get a job done. The products are a means to an end, not an end in themselves.
The value proposition creates the value for the customer, not the product!
Value Proposition The job-to-get-done is solution neutral. The job is to hang up a picture. Potential solution: § The drilling machine, the
dowel and screws § Hammer and nail § Powerstrips® by Tesa
§ A friend with a drilling machine
It is of uttermost importance to understand the core job we solve for our customers
Value Proposition
Customer • Who is our
customer? • What job do we
solve for them?
Value • What value do we
create for our customers? What value do we create for our partners?
What excites our customer?
Customer job to be done Is it easy to put a Christmas tree straight up and keep it there safely and green?
There was no big market for Christmas tree stands until Mr Krinner saw the badly solved job
Value architecture
Offer • What is our offer?
Distribution & Communication Channels
• How do we reach our customers?
• How do we communicate with our customers?
How do we create the value?
Value Chain • What activitites do
we have to do to produce our offer?
• How does our value chain look like?
Partner • What partners do
we need?
Core Capabilities • What are the core
capabilities we need?
Architectural innovation Customers have to transport and assemble the furniture by themselves, thereby saving IKEA two expensive steps in their value chain Value Proposition A new value proposition beyond price and good design is created: Instant satisfaction without waiting for the later delivery of the furniture
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Revenue Model
Cost Structure • Cost structure is
defined by your value architecture.
Revenue Sources • With what do we
earn money?
How do we earn money?
Revenue Model Innovation Power-by-the-hour: Jet engine maintenance paid by the hours in service Value Proposition Airlines get variable costs that depend on their business success.
Team & Values
Team • Who is in our
team? • What
competencies do we have in our team?
Values • What values do we
life in our team? • How do we
interact with each other and with customers?
Who is on our team? What values do we live?
Geberit – a product innovator or is there more?
From plumber supply to under-the-wall systems for baths
Customer job to be done Geberit understood that the badly solved job in the sanitary industry was, how fast a bath room can be renovated. With Geberit’s products you can renovate bathrooms faster and in better quality. And they understood that plumbers are their core sales channel.
Geberit is the master in understanding how to build and use bathrooms.
Customers
Customer Benefit
O!er
Value Chain
Core Capabilities
Distribution & Communication Channels
Partner
Business Model:
Cost Structure Revenue Sources
Team Values
Revenue Model
Team & Values
Value PropositionValue Architecture
Why homeowners love Geberit?
• Architects • Plumbers
• Homeowners Job-to-be done: • Get my bathroom renovated very
well (design & quality) with as little hassle as possible
• Faster and more convenient renovation of baths
• Actually, it needs a lot of initiative not to get Geberit (Plumbers offer only Geberit)
• Installation systems are more expensive than pure toilette tanks
• Willingness of homeowners to pay more is higher due to the benefits speed & design
• Deep understanding how baths are renovated & used
• Understanding how homeowners decide to procure sanitary equipment
• Plumbers are the sales channel • Architects are used for direct
communication with homeowner
• Plumbers, Engineers, Marketeers • Diverse team
• high quality • long lasting products • looking for better solution. Always!
Customers
Customer Benefit
O!er
Value Chain
Core Capabilities
Distribution & Communication Channels
Partner
Business Model:
Cost Structure Revenue Sources
Team Values
Revenue Model
Team & Values
Value PropositionValue Architecture
Why plumbers love Geberit?
• Plumbers • Job-to-be done: • Have little hassle as possible with a
customer job and still earn a high margin
• Easy to plan, order, prefabricate and install all components
• All components from one supplier • Satisfied homeowners that pay a
higher price • New products for upselling
• All these tools for plumbers cost money • Geberit earns money via end customers • Some income for trainings
• Deep understanding how plumbers work and think about their business
• Training know-how • Partner & eco system mgm’t
• Plumbers are reached with direct sales, classical marketing
• via training
• trade schools (Handwerkerkammern)
• Planning tools (CAD, product handbook)
• integrated logistics • trainings, material, certificates
• long-term thinking, willingness to invest long-term in relationship with plumbers
• innovative solutions
• Plumbers, Engineers, Marketeers • Diverse team
Your innovation engines can start at all elements of your business model
What excites our customers?
Value Proposition
How do we create value for our customers?
Value Architecture
How do we earn money?
Revenue Model
Who is on our team? What values do we pursue?
Team & Values
Doing is the essence of Innovation