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Business creativity
developing multiple versions of you business
  model? how to avoid thinking patterns?


            Indrek Maripuu
      twitter.com/indrekmaripuu
Creative Commons
Attribution-NonCommercial-ShareAlike 3.0
             Unported License.
Why are we here?

                            To develop new versions
                                of your current
                                business model!

                                   - Brainstorm
                                    - Prioritize
                                - Learn new tools




twitter.com/indrekmaripuu
WARNING!
    It is not a lecture. It is a workshop. You will
                   be forced to work!

        It is not about what worked earlier (case
      studies etc). It is about what may work in the
                            future.

        You may find it uncomfortable!
        [In fact, I hope you do! Because only then it is
                       valuable for you!]

twitter.com/indrekmaripuu
Indrek Maripuu
                           Brainstormer.

                           Entrepreneur.

                           The evangelist of
                          business model
                          innovation.

                           Developing a unique
                          ‘innovation farm’ in
                          Southern Estonia.


           Twitter: @indrekmaripuu
LinkedIn: http://ee.linkedin.com/in/indrekmaripuu
Clear your mind!
                            [Let´s take a bit of time to
                            find out what is going on.]

                            What to you need to say
                                in order to be
                             completely present
                                    today?

                             Tell it to your neighbour!
                               You have 5 minutes.

twitter.com/indrekmaripuu
1. Business model
        innovation

twitter.com/indrekmaripuu
@alfrehn have noticed:

                                   Communist Party of China:
                                     creativity is natural part in the
                                development of communism and a
                             central part of the revolutionary ideal.

                             Vladimir Putin: creativity will drive
                                                          Russia.

                              Even Vatikan has its own innovation
                                                        programs.

                                                                    ...

twitter.com/indrekmaripuu
Do you know this old „proverb“:
               “No one ever got fired for hiring
                         McKinsey”.

           Modern version of it would be:
    „No one ever got fired for suggestions like:
          we have to be more creative.“




    There is too much talk about creativity!
twitter.com/indrekmaripuu
Creativity is a ability to
         look same things as
       everyone else, but to see
           different things.

      Our goal today is to learn
      to see disruptive business
       models in your industry.




twitter.com/indrekmaripuu
Often we focus on the company that launched a
      game-changing business model, and forget the
    important question: why didn´t others see the
                     same thing?

    The problem is not in the knowledge we have or in
    the stories we have heard, but in how we imagine
                utilizing this knowledge.




twitter.com/indrekmaripuu
What do you see?
twitter.com/indrekmaripuu
This figure was drawn in 1900 by Joseph Jastrow, american
        psychologist. The figure can be viewed as a duck or a
    rabbit – when the face looks right it is a rabbit; when it looks
    left it is a duck. You tend to see the whole rabbit or the whole
      duck. Not both at the same time. It depends on which
                       animal you select to focus on.

    It is exactly same with business models –
    you choose where you put your focus and
     how many different possibilities you see.


twitter.com/indrekmaripuu
twitter.com/indrekmaripuu




      So you have sketched a business model?
                Satisfied? Happy?


                            Be careful!
                                  Nothing is more dangerous
                               than an idea when it’s the only
                                               idea you have.

                                        - Emile Chartier
      [You really need multiple version of your business model]
It is not one HEUREKA moment!
                   It is focused effort to find ideas!
                 [In order to find a good idea you need lots of ideas!]




?
                            Generation           Synthesis                DECISION


                             [Creative]          [Rational]




twitter.com/indrekmaripuu
Usual suggestion is: create multiple versions!




                                  s
                                 e.......
                              do
                           ain this
                         br rk
                      ur
                     O t wo
                      no way!

                                   Business Model Canvas is developed by Alexander Osterwalder
twitter.com/indrekmaripuu
The human brain is lazy!
          It will only engage if pushed!
            Otherwise it will go for the
         easier way, the well-known path.
      [In our case: you just decide you already have a
            best version of your businessmodel]



twitter.com/indrekmaripuu
What associates 
                             with...

                            ... “foot”?
                                86% ­ shoe, arm, toe

                            ... “command”?
                                    71% ­ dicipline, army, obey, 
                                officer



twitter.com/indrekmaripuu
Too bad!
      We use
      similar
      patterns

twitter.com/indrekmaripuu
Be careful!
                            Your (and mine) brain is
                             designed to recognize
                              patterns and draw
                            conclusions from them.

twitter.com/indrekmaripuu
Habitual thinking!
            „Who the hell wants to hear actors talk?“
             Harry M. Warner Warner Bros. 1927

            „Heavier than air flying machines are
                        impossible.“
          Lord Kelvin President Royal Society, 1885



twitter.com/indrekmaripuu
What is the best
                                        strategy to
                                      overcome this
                                       rational and
                                     creative conflict?




       “The illiterates of the 21st century will not
           be those who cannot read and write but
               those who cannot learn, unlearn, and
twitter.com/indrekmaripuu
                             relearn”- Alvin Toffler
In order to push
            your brain you
         need focus & tools!

Your focus is the problem you want to solve, or
        the idea you want to expand.

 We need some creativity tools because we are
pretty good at imitating. We are so good that we
      barely notice when we are imitating.
2. Ideastorm
{Focus & tools}
Nothing is more important to exploration and
          discovery than the art of asking good
                        questions.

     Good questions set our focus, ignite passion
      and energy and illuminate solutions that were
                  previously obscure.

                            Questions are
                             firestarters!

twitter.com/indrekmaripuu
Focus!
       Ideas for businessmodel innovation can come
     from anywhere. Each of the nine building blocks
    can be starting point, but all innovations affect
                  other building blocks.

                            Four main epicenters:
                               Resource-driven
                                 Offer-driven
                               Customer-driven
                                Finance driven

twitter.com/indrekmaripuu
Now discuss and decide your
    focus for this workshop!
    Possible questions to clarify your focus:

     Resource-driven: What new business we can
    start based on existing infrastructure and / or
    partnerships?
     Offer-driven: What new value we can offer for
    our clients?
     Customer-driven: To which new customer
    segments we can create value?
     Finance driven: How could we create a game
    changing cost structure?
twitter.com/indrekmaripuu
Tools!
twitter.com/indrekmaripuu
Before we
                                 start...
                             The rational and creative
                             are always in conflict with
                              each other. Rationality
                            likes acting according what
                              our experience tells us,
                             while creativity involves
                            breaking existing rules
                                     and habits.


twitter.com/indrekmaripuu
For this session, please turn off your rational
                        thinking!

          [Yes, you are allowed to turn it on later on]

twitter.com/indrekmaripuu
Tool # 1: Brainwriting
twitter.com/indrekmaripuu
Brainwriting
            Generate silently at least 3 ideas related to
           the question (focus you decided earlier) and
          write them on the paper. Timeframe: 3 minutes.

              Pass the paper to the person on your right.

               Read the ideas you received and develop
              them. If not able to develop just add a new
                 idea inspired by what you just read.
                        Timeframe: 3 minutes.

           Continue this process until the circle is closed.

twitter.com/indrekmaripuu
Tool # 2: daVinci
twitter.com/indrekmaripuu
What you can 
   use tights for?

twitter.com/indrekmaripuu
Now let´s use same methodology for
     generating ideas for your business model!

                              Rules:
               1. Use following pictures (or words)
                    as a starters for new ideas.
             2. Write the idea down. Do not discuss.
                 You have 30 seconds per picture.

              NB! Do You remember your question?

twitter.com/indrekmaripuu
Scientist

                       Nobel

                       Labor



                 36
www.maripuu.eu
Child

                  Kindness

                      Honesty



                 37
www.maripuu.eu
bin Laden

                      WTC

                      Faith



                 38
www.maripuu.eu
Sumo

                      Sushi

                      Weight



                 39
www.maripuu.eu
Nature

                      Darwin

                       Milk



                 40
www.maripuu.eu
Driver

                      Road 66

                       Truck



                 41
www.maripuu.eu
Doctor

                  Medicine

                  Sickness



                 42
www.maripuu.eu
Home

                      Sex

                  Marriage



                 43
www.maripuu.eu
Revolution

                      Factory

                      Lenin



                 44
www.maripuu.eu
Tequila

                      Cactus

                      Horse



                 45
www.maripuu.eu
3. Selection


twitter.com/indrekmaripuu
Prioritize
                    Map all the ideas based on two criteria:
                    investment vs business potential.




                        ?
             Low
Investment




                                                    ?
             High




                                Low         High

                               Business potential
4. New business
               models

twitter.com/indrekmaripuu
Using three best ideas develop
                  three new versions of your
                        business model!
                              Remember!
                Change in one block most probably affects
                 all the other blocks as well. Be careful!
twitter.com/indrekmaripuu
EW  S!
     BA   DN               el
                 ess mod
       bu   s in        t of
Your           ust a se
  is st i ll j        h es es!
                hy pot
u n te sted
Untested hypotheses because
                       you haven´t asked customers!

                      The most valuable information can only
                           be collected on the field.

                                 Not behind your desk
                                  or in the workshop.

                            Customers are the only relevant
                             judges of your business model.
twitter.com/indrekmaripuu
NEXT STEP?

           Prepare to talk with potential
                    customers!
 1. Write down your hypotheses for the business
    model and/or build a prototype.
 2. Come up with what constitutes a pass / fail signal
    for the test (e.g. at what point would you say that
    your hypotheses wasn’t / was correct)?
 3. Go to the field!

twitter.com/indrekmaripu
Thank you!
 twitter.com/indrekmaripu
 u

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Ttu innovatsiooni seminar talv 2013

  • 1. Business creativity developing multiple versions of you business model? how to avoid thinking patterns? Indrek Maripuu twitter.com/indrekmaripuu
  • 3. Why are we here? To develop new versions of your current business model! - Brainstorm - Prioritize - Learn new tools twitter.com/indrekmaripuu
  • 4. WARNING! It is not a lecture. It is a workshop. You will be forced to work! It is not about what worked earlier (case studies etc). It is about what may work in the future. You may find it uncomfortable! [In fact, I hope you do! Because only then it is valuable for you!] twitter.com/indrekmaripuu
  • 5. Indrek Maripuu  Brainstormer.  Entrepreneur.  The evangelist of business model innovation.  Developing a unique ‘innovation farm’ in Southern Estonia. Twitter: @indrekmaripuu LinkedIn: http://ee.linkedin.com/in/indrekmaripuu
  • 6. Clear your mind! [Let´s take a bit of time to find out what is going on.] What to you need to say in order to be completely present today? Tell it to your neighbour! You have 5 minutes. twitter.com/indrekmaripuu
  • 7. 1. Business model innovation twitter.com/indrekmaripuu
  • 8. @alfrehn have noticed: Communist Party of China: creativity is natural part in the development of communism and a central part of the revolutionary ideal. Vladimir Putin: creativity will drive Russia. Even Vatikan has its own innovation programs. ... twitter.com/indrekmaripuu
  • 9. Do you know this old „proverb“: “No one ever got fired for hiring McKinsey”. Modern version of it would be: „No one ever got fired for suggestions like: we have to be more creative.“ There is too much talk about creativity! twitter.com/indrekmaripuu
  • 10. Creativity is a ability to look same things as everyone else, but to see different things. Our goal today is to learn to see disruptive business models in your industry. twitter.com/indrekmaripuu
  • 11. Often we focus on the company that launched a game-changing business model, and forget the important question: why didn´t others see the same thing? The problem is not in the knowledge we have or in the stories we have heard, but in how we imagine utilizing this knowledge. twitter.com/indrekmaripuu
  • 12. What do you see? twitter.com/indrekmaripuu
  • 13. This figure was drawn in 1900 by Joseph Jastrow, american psychologist. The figure can be viewed as a duck or a rabbit – when the face looks right it is a rabbit; when it looks left it is a duck. You tend to see the whole rabbit or the whole duck. Not both at the same time. It depends on which animal you select to focus on. It is exactly same with business models – you choose where you put your focus and how many different possibilities you see. twitter.com/indrekmaripuu
  • 14. twitter.com/indrekmaripuu So you have sketched a business model? Satisfied? Happy? Be careful! Nothing is more dangerous than an idea when it’s the only idea you have. - Emile Chartier [You really need multiple version of your business model]
  • 15. It is not one HEUREKA moment! It is focused effort to find ideas! [In order to find a good idea you need lots of ideas!] ? Generation Synthesis DECISION [Creative] [Rational] twitter.com/indrekmaripuu
  • 16. Usual suggestion is: create multiple versions! s e....... do ain this br rk ur O t wo no way! Business Model Canvas is developed by Alexander Osterwalder twitter.com/indrekmaripuu
  • 17. The human brain is lazy! It will only engage if pushed! Otherwise it will go for the easier way, the well-known path. [In our case: you just decide you already have a best version of your businessmodel] twitter.com/indrekmaripuu
  • 18. What associates  with... ... “foot”?   86% ­ shoe, arm, toe ... “command”?         71% ­ dicipline, army, obey,  officer twitter.com/indrekmaripuu
  • 19. Too bad! We use similar patterns twitter.com/indrekmaripuu
  • 20. Be careful! Your (and mine) brain is designed to recognize patterns and draw conclusions from them. twitter.com/indrekmaripuu
  • 21. Habitual thinking! „Who the hell wants to hear actors talk?“ Harry M. Warner Warner Bros. 1927 „Heavier than air flying machines are impossible.“ Lord Kelvin President Royal Society, 1885 twitter.com/indrekmaripuu
  • 22. What is the best strategy to overcome this rational and creative conflict? “The illiterates of the 21st century will not be those who cannot read and write but those who cannot learn, unlearn, and twitter.com/indrekmaripuu relearn”- Alvin Toffler
  • 23. In order to push your brain you need focus & tools! Your focus is the problem you want to solve, or the idea you want to expand. We need some creativity tools because we are pretty good at imitating. We are so good that we barely notice when we are imitating.
  • 25. Nothing is more important to exploration and discovery than the art of asking good questions. Good questions set our focus, ignite passion and energy and illuminate solutions that were previously obscure. Questions are firestarters! twitter.com/indrekmaripuu
  • 26. Focus! Ideas for businessmodel innovation can come from anywhere. Each of the nine building blocks can be starting point, but all innovations affect other building blocks. Four main epicenters:  Resource-driven  Offer-driven  Customer-driven  Finance driven twitter.com/indrekmaripuu
  • 27. Now discuss and decide your focus for this workshop! Possible questions to clarify your focus:  Resource-driven: What new business we can start based on existing infrastructure and / or partnerships?  Offer-driven: What new value we can offer for our clients?  Customer-driven: To which new customer segments we can create value?  Finance driven: How could we create a game changing cost structure? twitter.com/indrekmaripuu
  • 29. Before we start... The rational and creative are always in conflict with each other. Rationality likes acting according what our experience tells us, while creativity involves breaking existing rules and habits. twitter.com/indrekmaripuu
  • 30. For this session, please turn off your rational thinking! [Yes, you are allowed to turn it on later on] twitter.com/indrekmaripuu
  • 32. Brainwriting Generate silently at least 3 ideas related to the question (focus you decided earlier) and write them on the paper. Timeframe: 3 minutes. Pass the paper to the person on your right. Read the ideas you received and develop them. If not able to develop just add a new idea inspired by what you just read. Timeframe: 3 minutes. Continue this process until the circle is closed. twitter.com/indrekmaripuu
  • 34. What you can  use tights for? twitter.com/indrekmaripuu
  • 35. Now let´s use same methodology for generating ideas for your business model! Rules: 1. Use following pictures (or words) as a starters for new ideas. 2. Write the idea down. Do not discuss. You have 30 seconds per picture. NB! Do You remember your question? twitter.com/indrekmaripuu
  • 36. Scientist Nobel Labor 36 www.maripuu.eu
  • 37. Child Kindness Honesty 37 www.maripuu.eu
  • 38. bin Laden WTC Faith 38 www.maripuu.eu
  • 39. Sumo Sushi Weight 39 www.maripuu.eu
  • 40. Nature Darwin Milk 40 www.maripuu.eu
  • 41. Driver Road 66 Truck 41 www.maripuu.eu
  • 42. Doctor Medicine Sickness 42 www.maripuu.eu
  • 43. Home Sex Marriage 43 www.maripuu.eu
  • 44. Revolution Factory Lenin 44 www.maripuu.eu
  • 45. Tequila Cactus Horse 45 www.maripuu.eu
  • 47. Prioritize Map all the ideas based on two criteria: investment vs business potential. ? Low Investment ? High Low High Business potential
  • 48. 4. New business models twitter.com/indrekmaripuu
  • 49. Using three best ideas develop three new versions of your business model! Remember! Change in one block most probably affects all the other blocks as well. Be careful! twitter.com/indrekmaripuu
  • 50. EW S! BA DN el ess mod bu s in t of Your ust a se is st i ll j h es es! hy pot u n te sted
  • 51. Untested hypotheses because you haven´t asked customers! The most valuable information can only be collected on the field. Not behind your desk or in the workshop. Customers are the only relevant judges of your business model. twitter.com/indrekmaripuu
  • 52. NEXT STEP? Prepare to talk with potential customers! 1. Write down your hypotheses for the business model and/or build a prototype. 2. Come up with what constitutes a pass / fail signal for the test (e.g. at what point would you say that your hypotheses wasn’t / was correct)? 3. Go to the field! twitter.com/indrekmaripu