Uneak White's Personal Brand Exploration Presentation
Reinventing Your Business Model
1. Reinventing Your Business ModelDec 2008, Harvard Business Review authors: Mark Johnson Clayton Christensen Henning Kagermann
2. Why did the iPod succeed? 1998 – Diamond Rio Launch 2001 – Apple iPod Launch Photo 2: www.flickr.com/photos/peemmfivekay/2285194342 PHOTO 1. http://www.flickr.com/photos/nrkbeta/2279686789/
3. Not the product, but theBusiness Model $$$ $ Photo 4:http://www.flickr.com/photos/shuttercat7/3116959633/ Photo 3: http://www.flickr.com/photos/kylemay/2078976171/
4. Not the product, but theBusiness Model $$$ $ http://www.apple.com/itunes/ http://store.apple.com/us/browse/home/shop_ipod/family/ipod_classic
5. “The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself.”-Peter Drucker
6. Customer Value Proposition {CVP} Business Model’s #1 element Help consumers get a solution for their fundamental problem Niche is key Why do consumers need you?
7. CVP can be created due to-Nonconsumers- Scooters and Motorcycles Traffic, small side streets Can’t afford the premium cars Video 1 Video 2 SOLUTION: create a small car that’s supremely affordable Video 3
8. CVP and Business Model Brainstorming WalMart BMW Image: http://arkjournal.com/uploaded_images/Always-Low-Prices-799991.jpeg http://www.cartype.com/pics/124/small/bmw_logo_1.jpg
9. CVP Creation What’s your favorite (successful) brand? What do you think its CVP would be?
10. New Business Model Where’s an area of non-consumption in our society today? or What problem do you have as a consumer that a company (existing or not) could help you solve?
11. Thank You! By Melissa Bird-Vogel Twitter: @missybirdbird Email: mbbv@u.washington.edu Credits Next Slide
12. Sources Creative Commons Attributions: 1. <div xmlns:cc="http://creativecommons.org/ns#" about="http://www.flickr.com/photos/nrkbeta/2279686789/"><a rel="cc:attributionURL" href="http://www.flickr.com/photos/nrkbeta/">http://www.flickr.com/photos/nrkbeta/</a> / <a rel="license" href="http://creativecommons.org/licenses/by-sa/2.0/">CC BY-SA 2.0</a></div> <div xmlns:cc="http://creativecommons.org/ns#" about="http://www.flickr.com/photos/peemmfivekay/2285194342/"><a rel="cc:attributionURL" href="http://www.flickr.com/photos/peemmfivekay/">http://www.flickr.com/photos/peemmfivekay/</a> / <a rel="license" href="http://creativecommons.org/licenses/by-nc-nd/2.0/">CC BY-NC-ND 2.0</a></div> <div xmlns:cc="http://creativecommons.org/ns#" about="http://www.flickr.com/photos/kylemay/2078976171/"><a rel="cc:attributionURL" href="http://www.flickr.com/photos/kylemay/">http://www.flickr.com/photos/kylemay/</a> / <a rel="license" href="http://creativecommons.org/licenses/by/2.0/">CC BY 2.0</a></div> Other photos have URL source attribution, Apple Products from Apple website. Article Reference: Johnson, M., Christensen, C., Kagermann, H. (December 2008). Reinventing Your Business Model. Harvard Business Review.
Notes de l'éditeur
The article mis-quoted the iPod launch-&gt; It’s actually 2001 not 2003The iPod is a portable media player designed and marketed by Apple and launched on October 23, 2001-&gt;http://en-&gt;wikipedia-&gt;org/wiki/IpodThe iTunes Store, formerly iTunes Music Store is a software-based online digital media store operated by Apple Inc-&gt; Opening as the iTunes Music Store on April 28, 2003, with over 200,000 items to purchase
Gillette offers the razors fairly cheaply then charges a lot for the replacement blades, locking consumers into a cycle of continuous purchases on high-margin products-&gt;
Apple did the Gilette razor-and-blades model in reverse:Apple essentially gave away the “blades” (low-margin iTunes music) to lock in purchase of the “razor” (the high-margin iPod)-&gt; “Stories of business model innovation from well-established companies like Apple, however, are rare” –article quote, pg 52-&gt;The Rio MP3 player, introduced by Diamond in 1998, was the real new market disruptive innovation compared to Apple's iPod-&gt; But what Apple did differently is that they serviced nonconsumers of digital downloads-&gt; The real disruptive innovation was iTunes - creating an easy, relatively cheap way to consume music-&gt; Users did not even have to purchase an entire CD; songs were available as true singles for the first time-&gt; The consumption of digital music downloading created a need for MP3 players - and the iPod took off-&gt;
CVP: A description of the value that a product, service or process will provide a customer-&gt; Should be defined abstractly to assure one understands who all the competitors are-&gt; Thus, rather than saying one provides customers with books, one should consider saying that one provides education or entertainment-&gt;A clear statement of who the target market for a particular product is, of what key benefits the product will deliver, and of the price that will be charged-&gt; A value proposition is a clear, concise series of factual statements on tangible results from your products or services-&gt;The unique added value an organization offers customers through their operations-&gt; The logical link between action and payoff that knowledge management must create to be effective; e-&gt;g-&gt;, customer intimacy, product-to-market excellence, and operational excellence [Carla O'Dell & C-&gt;Jackson Grayson]-&gt;The primary and essential benefit of a product or service-&gt; For a company, it is the reason for being-&gt; All of the definitions reiterate the importance of the customer/client-&gt; Take away all the individualization and personal interpretation and the value proposition is a clearly defined statement that identifies value: value that your client wants, value that you can deliver-&gt; The client is key to the entire process – the client drives the ‘value proposition’ There are as many ‘value propositions’ as there are clients-&gt; Each client is unique and has different needs-&gt; There is no one blanket value proposition-&gt; In order for a value proposition to be effective it has to be customized to each client’s specific needs-&gt;
Business Model – comprised of 4 main elements – the other 3 elements necessary of course, but we’re focusing on CVP – 1-&gt; CVP 2-&gt; Profit Formula (made up of Revenue model; cost structure; margin model; resource velocity)3-&gt; Key Resources (people, technologies, products, facilities, equipment, channels, and BRAND) – required to deliver the value proposition to the customer4-&gt; Key Processes (training; development; manufacturing; budgeting; planning; sales; service; rules/metrics/norms)
The other remarkable example of leveraging nonconsumers to create an effective product offering (and business model) was that of Tata in Mumbai-&gt; The people who could not afford cars were locked out of the marketplace due to wealth constraints-&gt; They instead consumed scooters – sometimes an entire family atop a motor-scooter built for two max-&gt; By creating a relatively affordable car (only ~$2500 USD), a new group of consumers were also created-&gt;
WalMart – Customers want LOW prices, we provide them with that-&gt;BMW – Customers want a car that provides with the ultimate driving experience – willing to pay top-dollar for it
