Business Model Innovation by Business Models Inc. Training Summary

1. BUSINESS MODEL INNOVATION Training Summary @patrickpijl @maaikedoyer @BusModInc

2. THE WORLD IS CHANGING

3. ONLINE REVOLUTION MARKETS CAME ALREADY UP THE SPEED OF DEVELOPMENTS HAS INCREASED

4. DESIGNING BETTER BUSINESSESDESIGNING BETTER BUSINESSES

5. CUSTOMER SEGMENTS KEY PARTNERS COST STRUCTURE REVENUE STREAMSCHANNELS CUSTOMER RELATIONSHIPS KEY RESOURCES VALUE PROPOSITIONSKEY ACTIVITIES

6. YOUR CURRENT BUSINESS MODEL

7. CURRENT BUSINESS MODEL WHAT KIND OF RELATIONSHIP DO WE MAINTAIN WITH OUR CUSTOMERS? PERSONAL CONTACT? AUTOMATIC? SELF- SERVICE? THROUGH WHAT CHANNELS DO WE DELIVER OUR PRODUCTS AND SERVICES? WHAT CUSTOMER NEEDS DO WE SATISFY? WHAT PROBLEM DO WE HELP OUR CUSTOMERS SOLVE? WHAT ADVANTAGES DO OUR PRODUCTS AND SERVICES PROVIDE OUR CUSTOMERS WITH? WHAT PRODUCTS AND SERVICES DO WE DELIVER TO OUR CUSTOMERS WHAT TYPE OF KEY ACTIVITIES DO WE PERFORM? WHAT KEY RESOURCES DOES OUR PROPOSITION REQUIRE? PHYSICAL? INTELLECTUAL? HUMAN? FINANCIAL? WHO ARE OUR KEY PARTNERS? WHAT IS OUR MOTIVATION TO WORK WITH PARTNERS? WHAT KEY RESOURCES DO WE ACQUIRE THROUGH PARTNERS? WHAT KEY ACTIVITIES DO OUR PARTNERS PERFORM? WHO IS OUR CUSTOMER? FOR WHOM DO WE CREATE VALUE? CAN WE DISTINGUISH DIFFERENT CUSTOMER SEGMENTS? WHAT ARE THE INHERENT COSTS IN OUR CURRENT BUSINESS MODEL? WHAT IS THE SIZE OF EACH COST? WHAT REVENUE STREAMS DO WE GENERATE? WHAT IS THE SIZE OF EACH REVENUE STREAM?

8. CURRENT BUSINESS MODEL +/- +/-+/- +/- +/-

9. THE CONTEXT

10. WHAT IS HAPPENING IN THE WORLD AROUND YOU?

11. VISION AND AMBITION

12. WHAT IS YOUR HIGHER PURPOSE?

13. CUSTOMER DISCOVERY

14. WHO IS OUR CUSTOMER? WHAT DOES HE OR SHE WANTS? WHAT IS HER WILLINGNESS TO PAY?

15. WHAT IS THE JOB YOU GET DONE FOR YOUR CUSTOMER?

16. THE BUSINESS MODEL PROCESS

17. ! ! ! ! ! ! !!!!!!!!!!DESIGNING BETTER BUSINESSES ! !

18. BUSINESS MODEL INNOVATION

19. SHAKE YOUR BUSINESS MODEL!

20. DESIGN? IT’S A JOURNEY OF EXPLORATION

21. 1. GENERATE OPTIONS 2. EXPLORE OPTIONS 3. CHECK AGAINST DESIGN CRITERIA 4. REPEAT

22. IT’S A PROCESS! THERE IS NO SINGLE RIGHT ANSWER KILL YOUR DARLINGS!

23. BUSINESS MODEL INNOVATION TECHNIQUES

24. FORESEE THE FUTURE “THIS PRESENT MOMENT USED TO BE THE UNIMAGINABLE FUTURE.” Stewart Brand Co-Founder, Global Business Network “The Clock of the Long Now”

25. FRESHWATCHING

26. ELIMINATE RAISE Which factors can you eliminate that your industry has long competed on? Which factors should be raised well above the industry’s standard? REDUCE CREATE Which factors should be reduced well below the industry standard? Which factors should be created that the industry has never oﬀered? BLUE OCEAN

27. APPLY BUSINESS MODEL PATTERNS CHEAP INKJET PRINTERS ENCOURAGE YOU TO BUY EXPENSIVE CARTRIDGES Top 20% Focus on a small Number of products, Each selling in high volume LONG TAIL Focus on a lage number of products, each selling in low volumes #"of"products" #"of"sales"

28. OFFER DISTRIBUTION CHANNELS CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS REVENUE STREAMSCOST STRUCTURE KEY ACTIVITIES PARTNER NETWORK KEY RESOURCES The Multi-Sided Platform Pattern Revenue flow 2 Revenue flow 1 Value Proposition 1 Customer Segment 1 Value Proposition 2 Customer Segment 2 Platform Platform Management Service Provisioning Platform Promotion Possible Revenue flow Subsidy Platform Management and Development FROM OWNING TO USING

29. 4 epicenters of innovation Resource driven Proposition driven Customer driven Revenue driven

30. LOOK AT THE CURRENT BUSINESS MODEL… … AND WRITE DOWN THE 3 MOST IMPORTANT PRODUCTS OR SERVICES REMOVE NUMBER 1! WHAT WILL YOU DO?

31. “WHAT IF….?”

32. WHERE ELSE CAN WE SELL OUR PRODUCTS WHICH PARTNERS CAN ADD EVEN MORE VALUE WHICH SERVICES CAN WE OFFER HOW CAN WE IMPROVE OUR RELATIONSHIP WITH OUR CUSTOMERS HOW CAN WE ELIMINATE FIXED COSTS BIG DATA HOW CAN WE DOUBLE OUR TOTAL REVENUES WHAT IF WE OFFER OUR PRODUCT FOR FREE HOW CAN WE IMPROVE OUR CUSTOMERS LIFE WHICH NEW CUSTOMER SEGMENTS CAN WE SERVE WHAT IF YOU WOULD SELL A SUBSCRIPTION OUR WORST NIGHTMARE

33. BUSINESS MODEL OPTION WHAT KIND OF RELATIONSHIP DO WE MAINTAIN WITH OUR CUSTOMERS? PERSONAL CONTACT? AUTOMATIC? SELF- SERVICE? THROUGH WHAT CHANNELS DO WE DELIVER OUR PRODUCTS AND SERVICES? WHAT CUSTOMER NEEDS DO WE SATISFY? WHAT PROBLEM DO WE HELP OUR CUSTOMERS SOLVE? WHAT ADVANTAGES DO OUR PRODUCTS AND SERVICES PROVIDE OUR CUSTOMERS WITH? WHAT PRODUCTS AND SERVICES DO WE DELIVER TO OUR CUSTOMERS WHAT TYPE OF KEY ACTIVITIES DO WE PERFORM? WHAT KEY RESOURCES DOES OUR PROPOSITION REQUIRE? PHYSICAL? INTELLECTUAL? HUMAN? FINANCIAL? WHO ARE OUR KEY PARTNERS? WHAT IS OUR MOTIVATION TO WORK WITH PARTNERS? WHAT KEY RESOURCES DO WE ACQUIRE THROUGH PARTNERS? WHAT KEY ACTIVITIES DO OUR PARTNERS PERFORM? WHO IS OUR CUSTOMER? FOR WHOM DO WE CREATE VALUE? CAN WE DISTINGUISH DIFFERENT CUSTOMER SEGMENTS? WHAT ARE THE INHERENT COSTS IN OUR CURRENT BUSINESS MODEL? WHAT IS THE SIZE OF EACH COST? WHAT REVENUE STREAMS DO WE GENERATE? WHAT IS THE SIZE OF EACH REVENUE STREAM?

34. EVALUATION AND QUALIFICATION

35. BUSINESS MODEL MECHANICS

36. DEF: BUSINESS MODEL MECHANICS THE INNER WORKINGS OF AN ORGANIZATION’S BUSINESS MODEL. HOW THE BUILDING BLOCKS OF A BUSINESS MODEL WORK TOGETHER TO PRODUCE A BETTER OUTCOME source: www.strategyzer.com

37. 6 QUESTIONS HOW DO YOU PERFORM ON A SCALE FROM 0 TO 10? 0 102 4 6 8 source: www.strategyzer.com MECHANICS: SWITCHING COSTS HOW EASY OR HARD IS IT FOR YOUR CUSTOMER TO SWITCH TO ANOTHER COMPANY? source: www.strategyzer.com MECHANICS: RECURRING REVENUES IS EVERY SALES A NEW EFFORT (TRANSACTIONAL) OR WILL IT RESULT IN FOLLOW-UP REVENUES AND PURCHASES? source: www.strategyzer.com MECHANICS: EARN BEFORE YOU SPEND ARE YOU EARNING MONEY BEFORE YOU ARE SPENDING IT (E.G. FOR PRODUCTION, PLATFORMS ETC.)? source: www.strategyzer.com

38. MECHANICS: GAME CHANGING COST STRUCTURE IS YOUR COST STRUCTURE SUBSTANTIALLY DIFFERENT AND BETTER THAN THAT OF COMPETITORS? source: www.strategyzer.com MECHANICS: GETTING OTHERS TO DO THE WORK HOW MUCH DOES YOUR BUSINESS MODEL GET CUSTOMERS OR THIRD PARTIES TO CREATE VALUE FOR YOU? source: www.strategyzer.com MECHANICS: SCALABILITY HOW RAPIDLY AND HOW EASILY CAN YOU GROW YOUR BUSINESS MODEL WITHOUT HITTING ROADBLOCKS (E.G. INFRASTRUCTURE, CUSTOMER SUPPORT ETC.) source: www.strategyzer.com WHAT IS YOUR SCORE?

39. BUSINESS MODEL VALIDATION

40. THINK ABOUT YOUR NEW BUSINESS MODEL AS IF YOU ARE A START-UP

41. What IS actually a start-up?!

42. “A START-UP IS NOT A SMALL VERSION OF A LARGE COMPANY.” Steve%Blank% A START-UP IS A TEMPORARY ORGANIZATION IN SEARCH FOR A PROFITABLE, SCALABLE AND REPEATABLE BUSINESS MODEL. A START-UP IS ABOUT SEARCHING Steve%Blank% A (LARGE) COMPANY IS ABOUT EXECUTION Steve%Blank%

43. YOU NEED TO CLARIFY YOUR ASSUMPTIONS YOU NEED TO TEST YOUR ASSUMPTIONS Source: Alex Osterwalder Instagram GET OUT OF THE BUILDING…

44. WATCH FIRST, THEN ASK LOOK FOR NEEDS, NOT SOLUTIONS PIVOT YOUR BUSINESS MODEL STOP FEATURITIS NOW

45. 10 TIPS FOR BUSINESS MODEL INNOVATION

46. 1 START WITH THE AS-IS. MAP THE CURRENT BUSINESS MODEL, CONTEXT AND VISION ON A LARGE POSTER WITH 3M POST IT NOTES.

47. 2 DON’T TRY THIS ALONE. LET YOUR COLLEAGUES OR FRIENDS HELP YOU!

48. 3 LEARN FROM OTHER BUSINESS MODELS!

49. 4 APPLY BUSINESS MODEL PATTERNS.

50. 5 THINK AS A BUSINESS MODEL DESIGNER. DO NOT RELY ON 1 MODEL, BUILD PROTOTYPES PROTOTYPING LET’S YOU FAIL EARLY TO SUCCEED SOONER IDEO.COM “ ”

51. 6 “VISIT THE FUTURE FREQUENTLY!”

52. 7 “SHOW ME THE MONEY!”

53. 8 “DRAWING IS THE NEW WRITING” THINK & WORK VISUALLY!

54. 9 DON’T RELY ON YOUR ASSUMPTIONS.

55. JUST DO IT! 10

56. CONTACT US FOR MORE INFORMATION! MAAIKE DOYER STRATEGY DESIGNER E: maaike.doyer@businessmodelsinc.com T: +31 6 81 82 25 18 W: www.businessmodelsinc.com PATRICK VAN DER PIJL CEO & FOUNDER E: patrick.van.der.pijl@businessmodelsinc.com T: +31 6 51 29 57 78 W: www.businessmodelsinc.com

57. DESIGNING BETTER BUSINESSESDESIGNING BETTER BUSINESSES

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