Alar Kolk EIA

1. Alar Kolk
President, European Innovation Academy

8. Different

9. Grow Fast or Die

11. ARE YOU
SOLVING THE RIGHT
PROBLEM?
“If I were given one hour to save the planet, I would
spend 59 minutes defining the problem and one
minute resolving it,” Albert Einstein
Most firms are not and that undermines their
innovation efforts…
Indeed, when developing new products, processes, or even businesses, most
companies aren’t sufficiently rigorous in defining the problems they’re attempting
to solve and articulating why those issues are important. Without that rigor,
organizations miss opportunities, waste resources, and end up pursuing innovation
initiatives that aren’t aligned with their strategies.

12. Customer Discovery

13. Customer Discovery, Phase One:
State Your Business Model

15. Value
proposition?
Value
proposition?

16. What are value propositons
for the products?

19. Business Model Determines Value
of the Product or Service.
Business Model Innovation
Transforms Technology into
Money
Business Model Functions:
1.Value Creation
2.Value Capture
Business Model

20. Focus in Business Model
A business model is a conceptual tool that contains a big set of elements and their
relationships and allows expressing the business logic of a specific firm. It is a
description of the value a company offers to one or several segments of customers and of
the architecture of the firm and its network of partners for creating, marketing, and
delivering this value and relationship capital, to generate profitable and sustainable
revenue streams.
Osterwalder, Pigneur and Tucci (2005)

21. areas4

22. WHAT? WHO?HOW?
$? €?

24. WHAT? WHO?HOW?
$? €?
CUSTOMERCUSTOMER
CLIENT
SEGMENTS
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OFFEROFFER
COST STRUCTURECOST STRUCTURE
CUSTOMER
RELATIONSHIPS
CUSTOMER
RELATIONSHIPS
CUSTOMER
SEGMENTS
CUSTOMER
SEGMENTS
KEY RESOURCESKEY RESOURCES
CAPABILITIESCAPABILITIES
REVENUE
FLOWS
REVENUE
FLOWS
DISTRIBUTION
CHANNELS
DISTRIBUTION
CHANNELS
PARTNER
NETWORK
PARTNER
NETWORK

32. how much did the coffee price
change for Swiss households
over the last couple of years?

33. 6-8 x
more

36. Nespresso changed the
business model for coffee

38. The business model system
TARGETED
CUSTOMER
SEGMENTS
PARTNERSHIP
NETWORK
OFFER – VALUE
PROPOSITION
Nespresso coffee
machines
households
distribution
channels
marketing
machine
sales
capsule sales
REVENUE MODEL
espresso
capsules
retail outlets
Nespresso.com
DISTRIBUTION
CHANNELS
call center
Nespresso stores
retail logistics
machine manufacturer
production
CAPABILITIES
distribution
KEY
RESOURCES
marketing
Nespresso club
CUSTOMER
RELATIONSHIPS
COST STRUCTURE
business
production facilities
patents
production

39. RESULTS

42. 35% growth p.a. for the last
7 consecutive years

43. fastest-growing business in
the Nestlé group

44. Nespresso has a 26.6 %
global share in Espresso
machine sales

49. Sketch many business models and select the ONE

51. Customer Discovery, Phase Two:
"Get Out of the Building" to Test the
Problem: "Do Customers Care?"
Get your team "out of the building" to test the problem and
to answer three key questions:
•Do we really understand the customer's problem?
•Do enough people really care enough about the problem
for this to become a huge business?
•And will they care enough to tell their friends?

57. Customer Discovery, Phase Three:
"Get out of the Building" and Test the
Product/Service Solution

60. Alar Kolk
President, European Innovation Academy

63. building
blocks9

65. Business Model
Innovation…
Alar Kolk
President, European Innovation Academy

66. Traditional Value Chain vs. Modern Value Chain

67. Who?
Which new customer segments will emerge in
the next 5 years?
YUPPIES
YUFFIES
MOBY/DOBY
WOOFS
SKIPPIES
SANDWICHERS Adults caught between caring their children
and their older parents
School Kids with Income + Purchaing
Power
Well Off Older Folks
Mom/Dad Older – Baby Younger
Young Urban Failures
Youg Urban Professionals