Business Model Innovation 2 Day Work Shop Facilitation Slides

$ 1.600.
000, Marc Sniukas - Doujak Corporate Development
Free Download
Marc Sniukas - Doujak Corporate Development
Business Model Innovation

How to (re)invent your business.
by Marc Sniukas www.sniukas.com
What will we do today?

Agenda
1. 2.
3. 4.
Why is Business Model Innovation important? What is a Business Model?

What is Business Model Innovation? What is the Process of Business Model Innovation?
What will we do tomorrow?

Agenda
1. 2.
3. 4.
How to develop and design new Business Models? How to evaluate Business Models?
Case Study What are characteristics of Business Model Innovators?
TEACHING
We dont teachwe create opportunities to learn!
LEARNING
Getting to know each other

Who are you? What is your work (company, position, ) Why are you here? What do you know about business model innovation?
About Marc
www.sniukas.com Consultant
Author
Researcher
How to (re)invent your Business Model?

The Framework: Dimensions to consider
Context Conditions Surrounding Business Model Innovation Activities Purpose Input to Business Model Innovation Activities
Process Flow of Business Model Innovation Activities
Content Result of Business Model Innovation Activities
Apdated from De Wit and Meyer Strategy: Process, Content, Context 3rd edition 2004 Thompson Learning
What are we going to do today?

Agenda
1. 2.
3. 4.


Why to engage in business model innovation?

Get the business model wrong, and there is almost no chance of success...
Prof. David Teece University of California, Berkley.
Business model innovation matters and it is a top priority of CEOs.
Innovation is front and center on the corporate agenda, according to a global survey. Executives are adding more breakthrough innovations and business model changes to their portfolio to fuel the growth engine.
Business Week, November 16, 2009
Why do Business Model Innovation?

Benefits cited by business model innovators
Source: IBM Global CEO Study 2006

Profit outperformers focus on business model innovation

Operating margin growth in excess of competitive peers

Business model innovators outperform traditional innovators
Source: Businessweek / BCG Innovation Survey 2008
Why is it important to you?

How Business Model Innovation can help you. Entrepreneurs
Market Entry
Managers
Growth
Public Officers
Enhanced Value for Citizens Innovative New Approaches needed New Public Management
Commercializing a New Technology Create New Markets
Competitive Advantage Fend of new entrants
Is it time to renew your business model?

How to tell: Environmental Forces

How to tell: Product/Technology Life Cycle
Stagnating or declining revenues
Source: Moore, GA 2004, Darwin and the Demon: Innovating Within Established Enterprises. Harvard Business Review, 82

How to tell: Product/Technology Life Cycle
Source: Moore, GA 2004, Darwin and the Demon: Innovating Within Established Enterprises. Harvard Business Review, 82
Any Questions?

Agenda
1. 2.
3. 4.


The Framework and Dimensions to consider
Dimensions and components of Business Models and Business Model Innovations.

What is a business model?

Some definitions
A business model is simply the way of doing business that a firm has chosen: its entire system for creating and providing consistent value to customers and earning a profit from that activity, as well as benefit for its broader stakeholders. It refers to the core architecture or configuration of the firm, specifically how it deploys all relevant resources (not just those within the company boundaries), to create differentiated value for customers at a profit
(Davenport, T. H., M. Leibold and S. Voelpel (2006). Strategic Management in the Innovation Economy. Publicis Wiley.)
The business model is a companys answer to the question of how to make money in its chosen business. It describes, as a system, how the pieces of a business fit together
(Magretta, J. (2002). "Why Business Models Matter." Harvard Business Review 80(5) May: 86-92.)

The essence and main components
WHO
is your customer?
Markets
Customer Segments
WHAT
do you offer your customers?
Products & Services
HOW
do you do this?
Create Value Deliver Value Capture Value
Solutions
Experiences
Individual Customers
Value Proposition
Describing your business business model

Please describe your business by answering these 3 questions.
Who is your customer?
What is your value proposition?
How are you creating and delivering your offer?
Source: Marc Sniukas

The different layers / levels of detail of a business model
Offering Customer Needs and job to be done Creation Delivery Capture Activities and processes Network and value chain partners Resources, assets and capabilities Governance structures and processes to all stakeholders
Value Proposition
Value
Organization
Relationships
Financials
Costs Revenues Profit

Tools for describing your business model
Source: Accenture
Source: The Boston Consulting Group
Source: Innosight Source: businessmodelgeneration.com
Describing your business model
Source: Linder, J. C. and S. Cantrell (2000). "Changing Business Models: Surveying the Landscape." A Working Paper from the Accenture Institute for Strategic Change.

Four components
Source: Johnson, M, Christensen, C, & Kagermann, H 2008, Reinventing Your Business Model. Harvard Business Review, 86
Describing and visualizing your business model

Why is it important?
Be able to communicate it Speak a common language See the big picture Have a basis for innovation

The business model canvas
KEY PARTNER KEY ACTIVITIES OFFER RELATIONSHIPS CLIENTS
KEY RESOURCES
CHANNELS
COST CENTRES
REVENUE STREAMS
Source: Canvas by businessmodelgeneration.com

Whats your offer? Which jobs to be done do you satisfy?
KEY RESOURCES
CHANNELS
COST CENTRES
REVENUE STREAMS

Whos your customer? Which customer segments do you serve?
KEY RESOURCES
CHANNELS
COST CENTRES
REVENUE STREAMS

KEY RESOURCES
CHANNELS
How do you reach your customers?
COST CENTRES
REVENUE STREAMS

Whats your relationship to the customer? Whats your image?

CHANNELS
KEY RESOURCES
COST CENTRES
REVENUE STREAMS

What are your core activities and processes?

KEY RESOURCES

CHANNELS
COST CENTRES
REVENUE STREAMS


KEY RESOURCES

CHANNELS
What are your main assets and competencies?

COST CENTRES
REVENUE STREAMS

You are your main suppliers, partners and alliances?

KEY RESOURCES

CHANNELS
COST CENTRES
REVENUE STREAMS


KEY RESOURCES

CHANNELS
COST CENTRES
REVENUE STREAMS
What is driving cost?


KEY RESOURCES

CHANNELS
COST CENTRES
REVENUE STREAMS
How do you make money?
Any Questions?

KEY RESOURCES
CHANNELS
COST CENTRES
REVENUE STREAMS


KEY RESOURCES

CHANNELS
COST CENTRES
REVENUE STREAMS

Sales Offer 1 You are your main suppliers, partners and alliances? Offer 2
KEY RESOURCES
R1 Customer 1 Customer 2
CHANNELS
Direct Sales
COST CENTRES
REVENUE STREAMS

Agenda
1. 2.
3. 4.

Hey! Theyre lighting their arrows! Can they do that?

Business Model Innovation is about...

The essence
WHO
is your customer? New Markets
WHAT
HOW
do you do this? New Ways of Doing Business
New Offers
New Value Propositions
The Innovation Map

4 Types of Innovation Internal
Operational Innovation
Management Innovation
Continuous
Discontinuous
Product & Service Innovation
External
Nine Inch Nails

KEY PARTNERS KEY ACTIVITIES VALUE PROPOSITION RELATIONSHIPS CUSTOMERS
KEY RESOURCES
CHANNELS
COST CENTRES
REVENUE STREAMS
Business Model Canvas teamplate by : businessmodelgeneration.com Content by Marc Sniukas
MinuteClinic
Traditional Approach Who Everybody Business Model Innovation Everybody
What Usually full treatment Services covered by health insurance Special treatment for additional cost How A range of specialist Special facilities One central location Solution shops
Focus on basic treatments Quick Convenient Affordable
Generalists Located in shopping malls / inside CVS pharmacies Multiple locations Retail model
Grameen Bank
KEY RESOURCES
CHANNELS
COST CENTRES
REVENUE STREAMS
Business Model Canvas template by : businessmodelgeneration.com Content by Marc Sniukas
Grameen Bank
Traditional Approach Who Business Model Innovation (Rich and middle class) people who Low income clients are reliable to pay back the credits or Poor people who would not get have enough assets as security. any loans from traditional banks (especially women) Small loans to unbanked people
What Classic loans, usually for larger sums to buy assets. How
Strong risk management About 97% make their payments. The returns from the interests belong The borrowers are the owners of to the bank/ shareholders the bank. Profit focus The profit of the bank goes back to the owners. There is no collateral. No lawyers. Social business focus
McCaf
KEY RESOURCES
CHANNELS
COST CENTRES
REVENUE STREAMS
Business Model Canvas template by : businessmodelgeneration.com
McCaf
Traditional Approach Who People who want a quick bite to eat Get in, order, get served quickly, get out quickly again Business Model Innovation People who want to sit down and remain seated for a while Create a 3rd place la Starbucks Coffee and cake Made to order (coffee) Pre-produced (cakes) 2 counters Separate seating area for McCaf Key is to increase share of wallet of the customer and keep him for a longer period of time in the restaurant Innovative use of existing assets.
What Pre-made food prepared constantly according to demand Standard menus Some variations allowed How 1 counter Standardized processes Central locations with high frequencies The key is to serve a maximum number of people during a given time
Nintendo Wii
Traditional Approach Who Kids Hard Core Gamers Business Model Innovation Everybody from 4-99 The whole family Casual Gamers Family Console Low tech console Focus on fun rather than technical performance
What High Tech High Performance Console
How
High tech, high end processors for Low tech, lower power processors, speed and graphics, connect over the no additional features internet, additional features (DVD, New movement technology internet,...) lower cost high cost lower sales price (190.- ) high sales price (250-300.- )
How innovative is your business model?

The Business Model Evaluation Spider
Dimension
Scale
1 5
3rd innovative tier noncustomers least profitable least satisfied commonalities chain of buyers circumstances traditional existing customers most profitable most satisfied differences single buyer attributes single product according to industry (either functional or emotional) product improve and raise
Who
What
approach Customers Profitability Satisfaction Segmentation Buyer Attributes vs Circumstances Total Solution Appeal Product vs Function Features
total solution; experiences against conventional logic function selectively raise, reduce, create, and eliminate experiences; every element of buying cycle addressed new streams strategic pricing aligned with strategic price of the masses high fit, creative rearrangement of activities new assets
How
Customer interface conventional logic Revenue streams and pricing Cost Activity system Assets conventional logic not aligned with strategic price of the masses low fit, me too logic existing assets
How innovative is your business model?

The Business Model Evaluation Spider
Activity System
Assets 5
Customers
Cost
Profitability
3 Revenue Streams 2 Satisfaction
1 Customer Interface Segmentation
Features
Buyer
Function 1 = conventional me too 2 = imitative innovation 3 = slightly innovative; some new ideas; not too risky Appeal 4 = innovative; risky new ideas 5 = radically different
Circumstances Total Solution

Agenda
1. 2.
3. 4.


How to achieve business model innovation within your company?

The process of business model innovation

A discovery driven approach
Setting the Stage
A Discovery-Driven Approach

The Process
Define the purpose, scope and focus of innovation activities Align business and innovation strategies Build leadership alignment & commitment Build a common language and understanding Definition of governance structures and processes Identifying internal and external opportunities Sensing, seeking and shaping opportunities Describe the current business model Explore and understand consumer and customer needs, motivations, behaviors Understand emerging markets, industry and socioecological trends
Setting the Stage

Bringing successful ideas to market Financial impact Incubation Acceleration Transition
Turn ideas into market ready concepts Road-test the idea portfolio with key stakeholders, consumers, internal and external Prototyping, Technical feasibility Experimentation & learning Customer & stakeholder feedback Business planning, venturing, secure founding Decide of organizational and governance structures Evolution & optimization
Design new business models Develop and select ideas Develop an idea portfolio Idea Generation (In-house, cross-units, external) Idea Evaluation Idea Selection Strategic decision making
Setting the stage

Getting ready
Description Input Tasks
Project Set Up (Business Model Innovation idea) 1. 2. 3. 4. 5. Define purpose, scope and focus (Why) Define and build team (Who) Define goals and metrics Define governance structure, process and project plan (How) Build leadership commitment Project Brief/Assignment Project plan incl. milestones, tasks, responsibilities, 1st resource planning per phase Team is established Common understanding about the project has been created Stop/Go decision Team established and resources have been committed Kick-off workshop Business Model Handbook Project Brief Project Planning
Output
Gate Tools
Any Questions?
Discovery
Gaining insights
Identify internal and external opportunities Project Brief 1. 2. 3. 4. Company Assessment Market Assessment Industry Assessment Future Trends Assessments Description AS IS of current business model, market, competition, industry Description of opportunities Description of first ideas Update project planning incl. resources needed estimation for next phase Stop/Go Decision Is the idea still interesting? Is it worth spending the resources for the next phase? Desk and real life research Who/What/How, Canvas, SWOT Customer Profile, Value Curve, Buyer Experience Cycle 5 Forces
Output
Gate
Tools
Discovery
Gaining insights
What does your customer want?

The Customer Profile
What does he THINK and FEEL?
Fears, worries, aspirations, wants, needs, frustrations,....
What others say Influencers Companies ...
What does he HEAR?
What does he SEE?

Environment Others What does the market offer? ...
What does he DO?

Behaviors Attitudes Appearance ...
What does your customer want?

The Customer Profile
What does he THINK and FEEL?
Fears, worries, aspirations, wants, needs, frustrations,....
What others say Influencers Companies ...
What does he HEAR?
What does he SEE?

Environment Others What does the market offer? ...
What does he DO?

Behaviors Attitudes Appearance ...
Source: Xplane

Buyer Experience and Channels
Pre-Purchase Steps
Awareness Evaluation Purchase
The Six Stages of the Buyer Experience Cycle

Delivery Use Supplements Maintenance Disposal
Customer Productivity: In which stage are the biggest blocks to customer productivity?
The Six Utility Levers
Simplicity: Convenience: Risk: Fun and image:
In which stage are the biggest blocks to simplicity? In which stage are the biggest blocks to convenience? In which stage are the biggest blocks reducing risk? In which stage are the biggest blocks fun and image? In which stage are the biggest blocks to environmental friendliness?
Environmental friendliness:
Source: Marc Sniukas. Adapted from Kim and Mauborgne Blue Ocean Strategy Harvard Business School Press, 2005

Pre-Purchase Steps

Channels

Low Cost Airline high Average Airline Car Transport
low
Price Meals Lounges Seating Class Choice Hub Connectivity Friendly Service Frequent Point to Point Departures
Following Kim and Mauborgne Blue Ocean Strategy Harvard Business School Press, 2005

The Value Curve
high
low
Who are your non-customers?

Why are they not buying?
1st group: soon-to-be non-customers: They minimally use the current offering, but are constantly searching for something better or different and ready to switch easily. They are closest to the existing customers. 2nd group: refusing non-customers: They either do not use or cannot afford to use the current market offerings because they find the offerings unacceptable or beyond their means. These customers are willing to buy, but not at the current terms. 3rd group: unexplored non-customers: They are the farthest away from the existing market. Typically they are being ignored completely as potential customers by the industry, either because they have always been assumed to belong to another industry or are not being considered worth the effort.
Any Questions?
What will we do tomorrow?

Agenda
1. 2.
3. 4.
Thanks for your attention! ....See you tomorrow.

How to (re)invent your business.
by Marc Sniukas www.sniukas.com
What did we do yesterday?

Agenda
1. 2.
3.

What is Business Model Innovation?


Agenda
1. 2.
3.


Why to engage in business model innovation?


Benefits cited by business model innovators

How to tell

Agenda
1. 2.
3.




The essence and main components

Tools for describing your business model
Source: Accenture
Source: The Boston Consulting Group
Source: Innosight Source: businessmodelgeneration.com

Agenda
1. 2.
3.



Hey! Theyre lighting their arrows! Can they do that?

Business Model Innovation is about...

The essence

Agenda
1. 2.
3. 4.

Agenda
1. 2.
3. 4.
The Telco Business Model

3 models in one
Source: businessmodelgeneration.com

3 models in one

3 models in one

3 models in one

3 models in one

3 models in one

3 models in one

3 models in one
Bharti Airtel Limited

A new business model for the telco industry Bharti Airtel Limited, the largest telecom service provider in India, chose to strategically outsource its core functions. For a typical telecom operator, the pain point during the growth phase is planning for network requirements and preparing budgets for such a capital expenditure. Capacity has to be built ahead of demand, which usually means the telecom operator has to absorb the cost of unused capacity. Source: http://blogs.hbr.org/cs/2010/05/reverse_innovation_success_in_the_tele. html
Business Model Innovation is about

The Essence
WHO
is your customer? New Markets
WHAT
HOW
do you do this? New Ways of Doing Business
New Offers
New Value Propositions

Where to start?
New Markets
New Value Proposition New Ways of doing business
New Offers

Agenda
1.
How to develop and design new Business Models? I.

II.
Who is the customer?

What is the need / job to be done?
III.
How are you satisfying that need?

Agenda
1.

II.

III.
Which customers do you target?

Creating new markets
existing
most profitable most satisfied specific buyer
noncustomers (2nd and 3rd tier)

less profitable less satisfied (1st tier) chain of buyers
focus on differences
focus on finer segmentation focus on attributes (of customers and products)
focus on commonalities
focus on de-segmentation focus on circumstances (needs and the job done)
B2B
B2C
Satisfaction
Profitability
Non-Customers
Characteristics
Demographics

Agenda
1.

II.

What is the job to be done?
III.
What is the job to be done?
1.
What problem is the customer trying to solve? *Customer] wants to [solve problem] in [this context+. Which features are important to the customer? What does he want and value? What are barriers for the customer?
Price: How cheap / expensive are existing solutions? Access: How easy / complicated is it to get / install existing solutions? Usage: How easy / complicated is it for the customer to use existing solutions? Experience: What are barriers to a good experience?
2.
3.

Pre-Purchase Steps

Customer Productivity: In which stage are the biggest blocks to customer productivity?
The Six Utility Levers
Simplicity: Convenience: Risk: Fun and image:
In which stage are the biggest blocks to simplicity? In which stage are the biggest blocks to convenience? In which stage are the biggest blocks reducing risk? In which stage are the biggest blocks fun and image? In which stage are the biggest blocks to environmental friendliness?
Environmental friendliness:
Source: Marc Sniukas. Adapted from Kim and Mauborgne Blue Ocean Strategy Harvard Business School Press, 2005

Agenda
1.

II.

III.
How to you define your product?

Creating new offerings
focus on existing assets
start anew, or use existing assets in a new way total solution, bundling
single product or service
functional appeal
emotional appeal and experiences focus on function fulfilled and the job-to-be-done raise, reduced, create, eliminate selectively
focus on product
build new features
How do you do business?

Creating new ways for creating, delivering and caputring value
conventional customer interface conventional pricing

(either to cover cost or benchmarked against competitors)
(co-creating) experiences easy to do business with strategic pricing of the masses

(benchmarked against substitutes and alternative industries)
cost-plus thinking
price-minus thinking; target costs network (with customers, suppliers, partners, alliances)
integrate activities
low fit of activities

(internally and externally)
high fit of activities

(internally and externally)

25 Strategies
WHO #11 Target non-customers #12 Target less profitable customers #1 Challenge industry assumptions #13 Target the least satisfied customers WHAT #14 Target the chain of buyers #2 Offer complementary products and services #15 Segment according to commonalities #3 Offer solutions and experiences #16 Segment according to circumstances #4 Offer bundles #5 Switch your appeal: functional versus emotional #17 Desegment the customer based HOW #6 Focus on the job to be done #7 Selectively eliminate, reduce, raise and create #8 Look at subsitutes #9 Expand the use of your assets and capabilities #10 Look at the customer experience #18 Reinvent the customer interface (channels) #19 Reinvent your customer relationships #20 Invent new revenue streams #21 Price differently #22 Reinvent you cost base #23 Re-assess your key activities #24 Collaborate with suppliers, partners, the network and ecosystem #25 Look at completely different industries
Type
Product Service Solution Experience
Features
Focused Extensive
Form
Tangible Intangible
Custom
Generic Tailored
Breadth
Single Bundled
Lifetime
Consumable Durable
How is the value proposition purchased?
Supplier
Direct Indirect
Support
Light Heavy
Frequency
Often Rarely
Availability
On-Demand Limited
Timing
Immediate Delayed
Autonomy
Assisted Independent
Strategy
Planned Unplanned
Location
Traditional New
How is payment done?
Form
Cash Financed
Price
Fixed Variable
Frequency
Pay per item Flat fee
Frequency
Once Installment
Timing
Up-front Afterwards
Payer
Single Multiple

Low Cost Airline high Average Airline Car Transport
low
Price Meals Lounges Seating Class Choice Hub Connectivity Friendly Service Frequent Point to Point Departures
Following Kim and Mauborgne Blue Ocean Strategy Harvard Business School Press, 2005

Agenda
1. 2.
3. 4.
How to evaluate business models?

3 different types of experimentation

Paper based approach
Area Rating Description What we know...
Strategy How well does the idea fit with our current strategy? What is the strategic purpose of the idea? 0 5 10
What we assume...
expanding or defending a current business building a new one that has already been identified laying the foundations for potential new businesses
Organization
Resources & Competencies Which do we need? Which do exist already? Which need to be build? Change need Change readiness
Finance Financial Implications
Revenue potential (Qty x Price) Cost (fix + variable) Unit Margin Target
How innovative is the model? Does it have the potential for competitive advantage through differentiation?
Does fit our organization? Can we implement it? Do we have the capabilities and resources?

Paper based approach
Strategy
How well does the idea fit with our current strategy? What is the strategic purpose of the idea? expanding or defending a current business building a new one that has already been identified laying the foundations for potential new businesses
Organization
Resources & Competencies Which do we need? Which do exist already? Which need to be build? Change need Change readiness
Financials
Revenue potential Cost Unit Margin Target Cash Flow Payback Net Present Value
Innovation
How innovative is the new model? Known to company and industry Known to industry, new to company New for company and industry
Risks
Competition Weaknesses Threats Expected barriers
Success Factors
Strengths Opportunities

Agenda
1. 2.
3. 4.

How to achieve business model innovation within your company?

The process of business model innovation

A discovery driven approach
Setting the Stage

The Process
Define the purpose, scope and focus of innovation activities Align business and innovation strategies Build leadership alignment & commitment Build a common language and understanding Definition of governance structures and processes Identifying internal and external opportunities Sensing, seeking and shaping opportunities Describe the current business model Explore and understand consumer and customer needs, motivations, behaviors Understand emerging markets, industry and socioecological trends
Setting the Stage

Bringing successful ideas to market Financial impact Incubation Acceleration Transition
Turn ideas into market ready concepts Road-test the idea portfolio with key stakeholders, consumers, internal and external Prototyping, Technical feasibility Experimentation & learning Customer & stakeholder feedback Business planning, venturing, secure founding Decide of organizational and governance structures Evolution & optimization
Design new business models Develop and select ideas Develop an idea portfolio Idea Generation (In-house, cross-units, external) Idea Evaluation Idea Selection Strategic decision making
Setting the stage

Getting ready
Project Set Up (Business Model Innovation idea) 1. 2. 3. 4. 5. Define purpose, scope and focus (Why) Define and build team (Who) Define goals and metrics Define governance structure, process and project plan (How) Build leadership commitment Project Brief/Assignment Project plan incl. milestones, tasks, responsibilities, 1st resource planning per phase Team is established Common understanding about the project has been created Stop/Go decision Team established and resources have been committed Kick-off workshop Business Model Handbook Project Brief Project Planning
Output
Gate Tools
Discovery
Gaining insights
Identify internal and external opportunities Project Brief 1. 2. 3. 4. Company Assessment Market Assessment Industry Assessment Future Trends Assessments Description AS IS of current business model, market, competition, industry Description of opportunities Description of first ideas Update project planning incl. resources needed estimation for next phase Stop/Go Decision Is the idea still interesting? Is it worth spending the resources for the next phase? Desk and real life research Who/What/How, Canvas, SWOT Customer Profile, Value Curve, Buyer Experience Cycle 5 Forces
Output
Gate
Tools
Discovery
Gaining insights
Who are your non-customers?

Why are they not buying?
1st group: soon-to-be non-customers: They minimally use the current offering, but are constantly searching for something better or different and ready to switch easily. They are closest to the existing customers. 2nd group: refusing non-customers: They either do not use or cannot afford to use the current market offerings because they find the offerings unacceptable or beyond their means. These customers are willing to buy, but not at the current terms. 3rd group: unexplored non-customers: They are the farthest away from the existing market. Typically they are being ignored completely as potential customers by the industry, either because they have always been assumed to belong to another industry or are not being considered worth the effort.
Development
Designing options
1. 2. 3. Development of business model concepts Develop business model idea portfolio and evaluate ideas Insights from discovery phase First ideas Develop Business model innovation idea portfolio Evaluate BM portfolio Develop list of assumptions to be tested
Output
Idea / option portfolio Evaluation of ideas List of assumptions to be tested incl. resource requirements and how they will be tested Business case for each business model
Go to testing: Stop/Go Decision Justified to start conversion/testing/experimentation phase? Budget decision 25 ways Who-What-How, Canvas Value Curve Spider, Scorecard, Hypotheses List, Business Case
Gate Tools
Conversion
Experimenting in practice
1. 2. 3. 4. Conversion of concepts into real-life Testing concepts and receiving market feedback Business concepts approved for test Customer tests Technical feasibility Organizational gap analysis Implementation and change roadmap Final Business Model Evaluation Strategy is developed Organizational structure is defined Partners/Network are defined Tested Business Model is profitable Launch decision Budget approval Business model is profitable
Output
Gate
Tools
Experimentation Feedback loops Market tests
Commercialization
Launch, incubation and transition
1. 2. 3. 4. Implementation and launch Launch new business model Successfully tested Business Model Innovations Implementation Start-Up / Incubation Acceleration Transition New Market New Value Proposition Growth Competitive Advantage Launch review (12 months) Business model review Business model optimization Integration into holding
Output
Gate
Tools
Strategy Change Management Venturing
Starting up Business Model Innovation

The Process
March 10
April 15 May 6-7
Group Mgmt Meeting
BU
Mgmt
Division Mgmt Meetings

Introduction to Business Model Innovation Introduction Future Space Process Preparation Handbook
Workshop
Presentation of Business Models Preparation of GMM
Research on innovative Business Models and Trends. Final version until April 29 to SIO
Division
Mgmt
Group 2010
Group 2011 +
Business Model Description by Division Mgmt and their teams.
Draft until March 29 to SIO Coaching Sessions with SIO Final Version until April 7 to SIO

The Process
March 10
BU
Mgmt

Division
Mgmt
Group 2010
Group 2011 +

The Process
March 10
BU
Mgmt

Introduction to Business Model Innovation Introduction Future Space Process Preparation Handbook Business Model Description by Division Mgmt and their teams.
Division
Mgmt
Group 2010
Group 2011 +

The Process
March 10
April 15 BU

Workshop
Mgmt
Division
Mgmt
Group 2010
Group 2011 +

The Process
March 10
April 15 BU

Workshop
Mgmt
Division
Mgmt
Group 2010
Group 2011 +

The Process
March 10
April 15 May 6-7
Group Mgmt Meeting
BU
Mgmt

Workshop
Division
Mgmt
Group 2010
Group 2011 +

The Process
March 10
April 15 May 6-7
Group Mgmt Meeting
BU
Mgmt

Workshop
Division
Mgmt
Group 2010
Group 2011 +
1. Description
2. Inspiration 3. Creation
Step 1 Description
1. Description
Our past. Our present.
Path of life
How your organization became what it is today
What was the original idea of the founders? What where the main life changing events in your companys history? (e.g. internationalization, crisis,) What was the focus of the phases between? (e.g. growth, innovation, integration,) What where the main challenges in the respective phases and how did your organization master them? What are the main strengths and mastered challenges you can build your future on? What are 2-3 milestones for the future?
Path of life
The Process
Please form mixed groups of 3 people and discuss the path of life of your Business Unit. A-B-C Interviews A interviews B; C observes & gives feedback B interviews C; A observes & gives feedback C interviews A; B observes & gives feedback Please summarize the main points of your discussion.
A B C
Total Time = 60 3x 15 interview + 5 feedback
Business unit groups

1
Discussion in the business unit groups on 1. Path of life of the business unit Main insights from the A-B-C group discussion.
2
2. Current business model Discussion of the main key success factors of the model including the Economic Engine.
Market place
Business model exhibition Please choose a business model that you are interested to find out more about After 15 minutes when you hear the signal, please change to the next business model booth. In total there will be 3 rounds of Business Model presentations & discussions.
Step 2 Inspiration
2. Inspiration
Perspective 2020 How will our environment develop? What are relevant trends for us? What will be coming up in the future and what will be the implications?
2
Discussion of innovative business model examples
2. Inspiration
Looking outside
Scenario Speed Dating
1. Please take your scenario card from your booklet and study it for a couple of minutes. 2. Find a partner 3. Discuss with your partner: - What could it mean for our - Future if my, your or both trends come true? 4. Please change partner and discuss the two trends again.
Step 3 Creation
3. Creation
Developing ideas
25 Ways to Business Model Innovation

Method cards
WHO WHAT HOW
Creation of ideas
Group work in the Business Units Based on the insights you gained, please develop ideas for new business models The ideas can be - Cross functional ideas - Ideas for new business models - Social business ideas - Ideas for your own business unit Please note them on post its Please choose ONE most promising idea Please write them on post its and stick them on the canvas Chose the Most Promising Idea
Time: 60
Market place
Business model exhibition
Free floating and discussing of the ideas developed by the business units.
Time: 60
The Future Space

The Overall Process
March 10
April 15 May 6-7
Group Mgmt Meeting
BU
Mgmt

Workshop
Division
Mgmt
Group 2010
Group 2011 +
What happened next?

After the Future Space
1. Ideas were clustered and further described. 2. Holding Board took decision on which ideas to drive on a group level. 3. Project Teams were set up to evaluate the details of group wide ideas. 4. Division and Business Unit ideas went straight into the strategy & budgeting process for the following year.
Architecture 2011
The sequence of activities
Nov
2010 Core Team Meeting Kick Off
Dez
Core Team Meeting
Q1
2011 Core Team Meeting Division 1 Division 2
Q2
Core Team Meeting Division 3 Division 4
Q3
Q4
2012
Core Team Board Update Project 1 Project 2 Project 3 Project 4 Project 5
Setting the stage Team Kick Off Hire Project Manager Hire Project Manager Hire Project Manager
Discovery Setting the stage
Development
Conversion Commercialization Conversion
Discovery Project Manager Project Manager Project Manager
Development Setting the stage Setting the stage Setting the stage
Conversion
Discovery
Development
Discovery
Development
Conversion
Discovery
Development
Conversion
Organizational Set Up
Driving Strategic Innovation
Steering Committee
Strategic Innovation Office
Cross Division Cross Teams Division Project Cross Division Project Teams Cross Division Project Teams Cross Division Project Teams Project Teams
Strategic Innovation Core Team
Within Division WithinTeams Division Project Within Division Project Teams Within Division Project Teams Within Division Project Teams Project Teams

Agenda
1. 2.
3. 4.

The Framework and Dimensions to consider Why are some companies good at it and others not?
How do you organize your innovation activities?

The Innovation Wheel Formal Focused Open
NewCo Evolutionary
Innovation tensions
Inside Revolutionary
Outside
CoreCo
Closed
Informal
Holistic
Questioning attitude Rewards success and failure, punishes inaction Tolerates mistakes Slack is welcomed Supports risk taking and change Supports teamwork and collaboration
Variety (internal and external) Collaboration Educated in regard to the strategy and skills needed
Set the context Guide the process in a participative and fair way Clearly communicate reasons, and expectations Educate employees Shield creative teams from distractions and pressure Appreciate distinctiveness in people and their thinking Welcome change Ask itself what it does to promote or inhibit innovation and how to get rid of these obstacles.
People Culture Leadership
Are you ready for Business Model Innovation?

Systems
Support the process of strategic innovation Enable collaboration Enable the use and creation of knowledge Reward risk taking and action Used to create relationships with customers Metrics & rewards support innovation
Structure Processes
Fast and unbureaucratic Decentralized decision making Support idea generation, experimentation and execution Fast and flat Small units Encourages collaboration Autonomous teams at the front line
The difficulty lies not in the new ideas,...
but in escaping from the old ones.

John Maynard Keynes
Thanks for your attention!

Business Model Innovation 2 Day Work Shop Facilitation Slides

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Business Model Innovation 2 Day Work Shop Facilitation Slides

Uploaded by

Copyright:

Available Formats

$ 1.600.

000, Marc Sniukas - Doujak Corporate Development

Business Model Innovation

Business Model Innovation

What will we do today?

Why is Business Model Innovation important? What is a Business Model?

What will we do tomorrow?

Getting to know each other

How to (re)invent your Business Model?

Process Flow of Business Model Innovation Activities

Content Result of Business Model Innovation Activities

What are we going to do today?

Why is Business Model Innovation important? What is a Business Model?

How to (re)invent your Business Model?

Process Flow of Business Model Innovation Activities

Content Result of Business Model Innovation Activities

Why to engage in business model innovation?

Business model innovation matters and it is a top priority of CEOs.

Why do Business Model Innovation?

Source: IBM Global CEO Study 2006

Why do Business Model Innovation?

Source: IBM Global CEO Study 2006

Why do Business Model Innovation?

Source: IBM Global CEO Study 2006

Why do Business Model Innovation?

Source: Businessweek / BCG Innovation Survey 2008

Why is it important to you?

Commercializing a New Technology Create New Markets

Competitive Advantage Fend of new entrants

Is it time to renew your business model?

Is it time to renew your business model?

Stagnating or declining revenues

Is it time to renew your business model?

What will we do today?

Why is Business Model Innovation important? What is a Business Model?

How to (re)invent your Business Model?

Process Flow of Business Model Innovation Activities

Content Result of Business Model Innovation Activities

Dimensions and components of Business Models and Business Model Innovations.

What is a business model?

What is a business model?

Describing your business business model

What is your value proposition?

How are you creating and delivering your offer?

Source: Marc Sniukas

What is a business model?

Costs Revenues Profit

Source: Marc Sniukas

What is a business model?

Source: The Boston Consulting Group

Source: Innosight Source: businessmodelgeneration.com

Describing your business model

Describing your business model

Describing and visualizing your business model

Describing your business model

Source: Canvas by businessmodelgeneration.com

Describing your business model

Whats your offer? Which jobs to be done do you satisfy?

Source: Canvas by businessmodelgeneration.com

Describing your business model

Whats your offer? Which jobs to be done do you satisfy?

Whos your customer? Which customer segments do you serve?

Source: Canvas by businessmodelgeneration.com