Business model innovation distr

Innovation Journey
Business Model Innovation

Innovation Journey

Innovation Journey
What is a Business Model?
Discuss with your seat neighbour and
write down your answer.

Innovation Journey
Business Model Vs. Business Plan
“Everybody has a plan
until they get punched in the
mouth”
Mike Tyson

Innovation Journey
Business Model
A business model describes the ra2onale of how
an organiza2on creates, delivers and captures
value.
Business Model Genera/on; Osterwalder & Pigneur; Wiley; 2010

Innovation Journey
Traditional Lean
Strategy
Business Plan.
Implementation driven.
Business Model.
Hypothesis driven.
New Product Process
Product Management.
Linear, step by step.
Customer development.
Get out and test hypotheses.
Engineering
Waterfall development. Fully
specify the product before build.
Agile development. Build product
iteratively & incrementally.
Organization
Departments by function. Hire for
experience and execution.
Customer and Agile development
teams. Hire for Learning & Speed.
Financial Reporting
Accounting. Income statement,
Balance Sheet, cash flow stat.
Metrics that matter. Customer
acquisition cost, lifetime value…
Failure
Exception.
Fix by firing executives.
Expected.
Fix by iterating and pivoting.
Speed
Measured.
Operates on complete data.
Rapid.
Operates on good enough data.
Why the Lean Start-up Changes Everything; Steve Blank; Harvard Business Review, May 2013

Innovation Journey
Traditional Lean
Strategy
Business Plan.
Implementation driven.
Business Model.
Hypothesis driven.
New Product Process
Product Management.
Linear, step by step.
Customer development.
Get out and test hypotheses.
Engineering
Waterfall development. Fully
specify the product before build.
Agile development. Build product
iteratively & incrementally.
Organization
Departments by function. Hire for
experience and execution.
Customer and Agile development
teams. Hire for Learning & Speed.
Financial Reporting
Accounting. Income statement,
Balance Sheet, cash flow stat.
Metrics that matter. Customer
acquisition cost, lifetime value…
Failure
Exception.
Fix by firing executives.
Expected.
Fix by iterating and pivoting.
Speed
Measured.
Operates on complete data.
Rapid.
Operates on good enough data.
Lean Start-
up

Innovation Journey
Business Model Canvas

Innovation Journey
Design Thinking and BMC

Innovation Journey
Adoption of the Business Model Canvas
Adoption of
the Business
Model Canvas
Across
sectors,
regions and
company
types

Innovation Journey

Innovation Journey
Jeff Immelt
“Nobody wants to work at an old-fashioned company. Nobody
wants to buy products from an old-fashioned company. And
nobody wants to invest in an old-fashioned company.”

Innovation Journey
GE’s Ambidextrous Growth Strategy
FastWorks
Innovation Program
Exploration
Lean Six Sigma
Improvement Program
Exploitation
Stable Environment Changing Environment

Innovation Journey
FastWorks
Fast speed
launch
of
successful
products

Innovation Journey
Fastworks at GE
https://www.youtube.com/watch?v=iimKescSeus

Innovation Journey
How much did the cost of home coffee
consumption change for Swiss
households over the last couple of years?

Innovation Journey
Nespresso changed the
business model for
espresso

Innovation Journey
Average growth of 30% p.a. from 2000 to 2014

Innovation Journey
estimated US$ 5 billion annual sales from one product line

Innovation Journey
How did they do it?

Innovation Journey
Key Partners Key Activities Value Proposition Customer Relationships Customer Segments
Key Resources Channels
Cost Structure Revenue Streams
Nespresso
Nespresso
Machines
Households
Acquire &
lock-in
Retail
1X Machine
sales
Marketing
Brand
Patents
Machine
manufacturer
Marketing &
branding
Nespresso
pods
Nespresso
Club
Mail order &
call centre
nespresso.
com
Nespresso
stores
Repetitive
pod sales
B2C
distribution
Production
Distribution
channels
Coffee
Production
facilities
Coffee
growers
Marketing &
branding
Production
B2C
distribution

Innovation Journey
However, it was not
Nespresso’s first
business model

Innovation Journey
Nespresso
Machine
manufacturer
Nespresso
system
JV with
manufacturer
Offices

Innovation Journey
Nespresso
Nespresso
Machines
Households
Acquire &
lock-in
Retail
1X Machine
sales
Marketing
Brand
Patents
Machine
manufacturer
Marketing &
branding
Nespresso
pods
Nespresso
Club
Mail order &
call centre
nespresso.
com
Nespresso
stores
Repetitive
pod sales
B2C
distribution
Production
Distribution
channels
Coffee
Production
facilities
Coffee
growers
Marketing &
branding
Production
B2C
distribution
High-end
households
Lock-in
Direct access
multi-channels
Recurrent
revenues
Focus on the
pods
Efficient
logistics

Innovation Journey
the right business
model can be the
difference between
success and
failure for the
same product

Innovation Journey
the story is not
finished yet

Innovation Journey
they built a
business model
portfolio that aims
to sustain growth
and diversify risk

Innovation Journey
What’s Tesla Motors
Business Model?

Innovation Journey
What’s Tesla Motors
Business Model and it’s
mechanics?

Innovation Journey
Tesla Motors

Innovation Journey
Value Proposition Canvas

Innovation Journey
The Customer Profile

Innovation Journey
The Value Map

Innovation Journey
Value Proposition Canvas
Fit

Innovation Journey
Why do we need a better way to
tell the story of how we create
value for our customers?

Innovation Journey
7 out of 10
all new product innovations flop

Innovation Journey
The Value Proposition Canvas

Innovation Journey
Jobs to be done

Innovation Journey
“Jobs to be done offers a clear
way to Innovate”
- Clayton Christensen

Innovation Journey
def.
Jobs to be done

Innovation Journey
def.
Jobs to be done
* what a customer is trying to
get done in her work or in her
life

Innovation Journey
def.
Jobs to be done
* what a customer is trying to get done in her
work or in her life
includes tasks he/she is trying to perform and complete;
problems she is trying to solve; needs she is trying to satisfy
customers perform a job in a particular situation or context
with more or less constraints

Innovation Journey
Jobs to be done don’t change
often, only solutions do.

Innovation Journey
Jobs last, products don’t.

Innovation Journey
What’s Tesla Motors’ Value
Proposition Canvas?

Innovation Journey
Commute to
work
Upper middle class
high income
Convey an
image of
Differentiate
from others
Occasionally travel
long distance trips
Be in sync
with personal
values
Performance
like a sports car
Long range >
300 kms
High safety
ratings
Always best
up-to-date
features
Attractive
design
Frequent
charging
Long recharging
time
Fear of dead
battery
Lack of
space
Geeky
perception

Innovation Journey
Top performance
0-100 in 4.4 - 6.2 secs
Long range
350-450 kms
Award winning
design
Upgrade via
remote access
Highest safety
ever by HHTSA
High speed
charging
A luxury image
5+2 seats
1,800 litre
Free charging at
super charging
stations
High capacity
battery 8 yr
warranty
High performance
luxury electric car

Innovation Journey
Top performance 0-100
in 4.4 - 6.2 secs Long range
350-450 kms
Award winning
design
Upgrade via
remote access
Highest safety ever
by HHTSA
High speed
charging
A luxury
image
5+2 seats 1,800 litre
storage
Free charging at
super charging
stations
High capacity
battery 8 yr
warranty
High
performance
luxury electric
car
Commute to
work
Upper middle class high
income
Convey an
image of
success
Differentiate
from others
Occasionally
travel long
distance trips
Be in sync with
personal values
Performance
like a sports
car
Long range >
300 kms
High safety
ratings
Always best
up-to-date
features
Attractive
design
Frequent
charging
Long
recharging
time
Fear of
dead
battery
Lack of
space
Geeky
perception
FIT

Innovation Journey
Testing & Pivoting

Innovation Journey
Innovation Journey

Business model innovation distr

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