14 tips for Entrepreneurs how they can develop from an idea the Right Thing. The Right is being loved by your customers, gives meaning to you and employees and is profitable. Finding and later doing the Right Thing is an agile and iterative learning journey. With these 14 tips you can profit from the experience of successful entrepreneurs since you do not have to experience and fail by yourself. Hopefully, the slide deck helps other entrepreneurs.
3. Have you found the Right
Thing?
Why should
your business
exist?
4. What do the colors mean?
Beyond optimization of the past
We have to
unlearn the past and
rethink our business
from the customer
perspective.
3
Is Kodak innovative?
What were the tacit
assumptions behind
Kodak’s innovations?
Take 5 min and discuss
it with your neighbors.
Take-aways are in red
Exercises and questions
for you
5. § Dr. Patrick Stähler, Mr. Business
Model Innovation
§ Founder & Partner von
fluidminds GmbH, the business
innovator, Zürich & Sydney
§ fluidminds invents and designs
businesses
§ Example: Experteer.com (career
portal) was founded with the
help of fluidminds
§ »Inventor by chance« of the
business model innovation
concept during my Ph.D. at the
University of St. Gallen.
§ Blogger on Blog.business-
model-innovation, keynote
speaker worldwide.
6. Startups in the past
There was a need for new
products since we lived in a
world of scarcity.
7. The times they are a-changin’
Today, we live in a world of too-
much of everything. We have
everything 100 times.
9. Sorry. There is no easy
recipe. Good entrepreneurs but the
customer in the middle of their
thoughts and the value they create for
customers..
Give Meaning
to customer is
the core to any good business
10. The reality: Nobody is waiting for you!
We have too much of
everything.
We have too much choice!
We get bombarded by ads and
PR!
43. Prepaid
A small change in billingopened new markets inAfrica, Asia, Latin America,
Youths, etc..
44. There are so
many more starting
points for startups
than just innovative
products
4
45. „Wow, I have invented the future of
advertising. We do not need any videos
or pictures or even color anymore.
The future will be a text ad with maximal
95 characters.
It‘s brilliant, isn‘t it?
Would you havedared to saythis?
46. § Instead of looking at better
products, Google Adwords
brought back relevance to
the ad industry
§ Google is blamed to be the
killer of newspapers
§ Sales around 43 bn. USD
51. But if everybody is doing he
same, you have to find
something else
52. The best is if your customers
love your innovation due to
your fantastic value
proposition and and your
ability to deliver what you
promise
53. Where is your
wow? Why should
your business exist
from a customer
perspective?
54. Being just a bit
better is not enough.
You must have a clear
and noticable unique-
ness and magic.
That’s your WOW!
6
55. Customer job to be done
We have to learn to unlearn.
We have to learn to see
beyond the product and
understand what the customer
really wants.
Customer needs are to
imprecise. Let’s talk about
jobs-to-be-done.
Ready to
unlearn?
64. Or do we need a place
with lovely people in
order to connect to
the place like at
AirBnB?
65. Customer job to be done
We do not need a hotel. We
need an accommodation plus
extras like connecting to
people. That are the jobs-to-
be-done.
Customers hire a product or
service to get a job done. The
products are a means to an
end, not an end in themselves.
The value proposition
creates the value for
the customer, not the
product!
66. Value Proposition
The job-to-get-done is
solution neutral. The job is to
provide accommodation plus
extra benefits like connecting
to people.
Potential solution:
§ 3* hotel
§ Formule 1 Hotel
§ AirBnB (accommodation
plus connection to people)
§ friend that lives in the city
It is of uttermost
importance to
understand the core
job we solve for our
customers
67. Start dreaming
from badly solved
jobs-to-be done of
your customers.
Use technology.
Innovate your business
model
7
68. Dr. Patrick Stähler | 68
Do you know this man?
Hans Rausing = Inventor of the
Tetra Pack Systems
76. 4 elements of a successful business:
What excites
our
customers?
Value Proposition
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How do we
create value
for our
customers?
Value Architecture
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How do we
earn money?
Revenue Model
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Who is on our
team?
What values
do we
pursue?
Team Values
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80. product/services happy customers
creates
X
value proposition
solves
delivered by
business model
The customer perspective: A product does not create value. It is
the value proposition the customer loves
job-to-be-done
addressed
by
81. Value
Proposition
Customer
• Who is our
customer?
• What job do we
solve for them?
Value
• What value do we
create for our
customers? What
value do we create
for our partners?
What excites our customer?
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82. Customer job to be done
Is it easy to put a
Christmas tree straight
up and keep it there
safely and green?
83. There was no big
market for Christmas
tree stands until Mr
Krinner saw the badly
solved job
84. Value
architecture
Offer
• What is our offer?
Distribution
Communication
Channels
• How do we reach
our customers?
• How do we
communicate with
our customers?
How do we create the value?
Value Chain
• What activities do
we have to do to
produce our offer?
• How does our
value chain look
like?
Partner
• What partners do
we need?
Core Capabilities
• What are the core
capabilities we
need?
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85. Architectural innovation
Customers have to transport
and assemble the furniture by
themselves, thereby saving
IKEA two expensive steps in
their value chain
Value Proposition
A new value proposition
beyond price and good design
is created: Instant satisfaction
without waiting for the later
delivery of the furniture
86. Revenue
Model
Cost Structure
• Cost structure is
defined by your
value architecture.
Revenue Sources
• With what do we
earn money?
How do we earn money?
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87. Revenue Model Innovation
Power-by-the-hour: Jet
engine maintenance paid
by the hours in service
Value Proposition
Airlines get variable costs
that depend on their
business success.
88. Team
Values
Team
• Who is in our
team?
• What
competencies do
we have in our
team?
Values
• What values do we
life in our team?
• How do we
interact with each
other and with
customers?
Who is on our team? What values do we live?
HTIGE
EN
nternehmer
89.
90. Customers
Who are our customers?
What job do we solve for our
customers?
Customer Benefit
What benefit do we create for our
customers?
What benefit do we create for our
partners?
Offer
What is our offer?
Value Chain
What are our value creating steps?
What is our value chain?
Core Capabilities
What are the core capabilities
we need?
Distribution Communication
Channels
How do we reach our customers?
How do we communicate with
our customers?
Partner
Which partners do we need?
Questions for a Successful Business Model
Cost Structure
Cost structure is defined by the
value architecture.
Revenue Sources
With what do we earn money?
Team
Who is on our team?
What competencies do we have
on the team?
Values
What values do we pursue?
How do we interact with each other
and the customers?
Revenue Model
Team Values
Value PropositionValue Architecture
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91. Customers
Who are our customers?
What job do we solve for our
customers?
Customer Benefit
What benefit do we create for our
customers?
What benefit do we create for our
partners?
Offer
What is our offer?
Value Chain
What are our value creating steps?
What is our value chain?
Core Capabilities
What are the core capabilities
we need?
Distribution Communication
Channels
How do we reach our customers?
How do we communicate with
our customers?
Partner
Which partners do we need?
Questions for a Successful Business Model
Cost Structure
Cost structure is defined by the
value architecture.
Revenue Sources
With what do we earn money?
Team
Who is on our team?
What competencies do we have
on the team?
Values
What values do we pursue?
How do we interact with each other
and the customers?
Revenue Model
Team Values
Value PropositionValue Architecture
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92. Geberit – a product innovator or is there more?
From plumber supply to under-the-wall systems for baths
93. Customer job to be done
Geberit understood that
the badly solved job in the
sanitary industry was, how
fast a bath room can be
renovated. With Geberit’s
products you can renovate
bathrooms faster and in
better quality. And they
understood that plumbers
are their core sales
channel.
Geberit is the
master in
understanding how
to build and use
bathrooms.
94. Customers
Customer Benefit
Offer
Value Chain
Core Capabilities
Distribution Communication
Channels
Partner
Business Model:
Cost Structure Revenue Sources
Team Values
Revenue Model
Team Values
Value PropositionValue Architecture
Why homeowners love Geberit?
• Architects
• Plumbers
• Homeowners
Job-to-be done:
• Get my bathroom renovated very
well (design quality) with as little
hassle as possible
• Faster and more convenient
renovation of baths
• Actually, it needs a lot of initiative
not to get Geberit (Plumbers offer
only Geberit)
• Installation systems are more expensive
than pure toilette tanks
• Willingness of homeowners to pay more is
higher due to the benefits speed design
• Deep understanding how baths
are renovated used
• Understanding how homeowners
decide to procure sanitary
equipment
• Plumbers are the sales channel
• Architects are used for direct
communication with homeowner
• Plumbers, Engineers, Marketeers
• Diverse team
• high quality
• long lasting products
• looking for better solution. Always!
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95. Customers
Customer Benefit
Offer
Value Chain
Core Capabilities
Distribution Communication
Channels
Partner
Business Model:
Cost Structure Revenue Sources
Team Values
Revenue Model
Team Values
Value PropositionValue Architecture
Why plumbers love Geberit?
• Plumbers
Job-to-be done:
• Have little hassle as possible with
a customer job and still earn a
high margin
• Easy to plan, order, prefabricate
and install all components
• All components from one
supplier
• Satisfied homeowners that pay
a higher price
• New products for upselling
• All these tools for plumbers cost
money
• Geberit earns money via end customers
• Some income for trainings
• Deep understanding how
plumbers work and think
about their business
• Training know-how
• Partner eco system mgm’t
• Plumbers are reached with
direct sales, classical
marketing
• via training
• trade schools
(Handwerkerkammern)
• Planning tools (CAD, product
handbook)
• integrated logistics
• trainings, material, certificates
• long-term thinking, willingness to invest
long-term in relationship with plumbers
• innovative solutions
• Plumbers, Engineers, Marketeers
• Diverse team
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96. The Hotel Exercise
Innovate the hotel industry and
design a hotel. Chose from the
following hotel segments
• Hotel in City
• Holiday resort
• Hotel for Seminars
98. 1
Customer Insight
- Observe your customers
What job is not yet or
badly solved?
- How does the Customer
Experience Cycle look
like?
- On what customer insights
is your idea based?
- validate customer insight
2
Understand
- understand the current
solutions and their
strength weakness
- understand how the
potential customer
thinks and decides
- understand the market
market mechanism
3
Ideate
Develop as many ideas as
possible in the area of
- customers/ value
proposition
- value architecture
- revenue model
4
Design
- decide for three or four
options
- design the business
models for the options
- check the
interdependencies in the
business models
- work on the uniqueness
(positioning)
- optimize the building
blocks
5
Decide Prototype
- decide for the best
model to go for
- build prototype
- test prototype with
customers
- write business case
- decide again or work on
different option
6
Build Learn
- execute business model
- learn continuously from
customer feedback and
control KPIs
- adjust and refine
continuously the
business model
99. Point of View
Designing is a process of opening your mind
and focusing at the end
1
Customer
Insight
3
Ideate
2
Understand
4
Design
5
Decide
Prototype
6
Build Learn
100. Design Thinking Process
The right culture valuesMultidisciplinary Teams
1
Customer Insight
- Observe your customers
What job is not yet or
badly solved?
- How does the Customer
Experience Cycle look
like?
- On what customer insights
is your idea based?
- validate customer insight
2
Understand
- understand the current
solutions and their
strength weakness
- understand how the
potential customer
thinks and decides
- understand the market
market mechanism
3
Ideate
Develop as many ideas as
possible in the area of
- customers/ value
proposition
- value architecture
- revenue model
4
Design
- decide for three or four
options
- design the business
models for the options
- check the
interdependencies in the
business models
- work on the uniqueness
(positioning)
- optimize the building
blocks
5
Decide Prototype
- decide for the best
model to go for
- build prototype
- test prototype with
customers
- write business case
- decide again or work on
different option
6
Build Learn
- execute business model
- learn continuously from
customer feedback and
control KPIs
- adjust and refine
continuously the
business model
Business Model Canvas
Tools for Entrepreneurial Design
Customers
Customer Benefit
Offer
Value Chain
Core Capabilities
Distribution Communication
Channels
Partner
Business Model:
Cost Structure Revenue Sources
Team Values
Revenue Model
Team Values
Value PropositionValue Architecture Use the canvas to
develop your business
model
101. 1
Customer Insight
- Observe your customers
What job is not yet or
badly solved?
- How does the Customer
Experience Cycle look
like?
- On what customer insights
is your idea based?
- validate customer insight
102. Where do we get a Value
Innovation from? Let‘s find
new customer insights as a
starting point
Business model
innovation
New value
proposition
Customers’
insight
103. Please make a typical
hand movement to
show how you opend
this sugar sachet
104. Customer Insights
Do you want fast
delivery of the goods
you order online?
Is asking customers
the right approach?
105. Customer Insights
Is faster really better? Or
was this already the wrong
question.
What would be the right
question to figure out the
importance of time in the
delivery process?
Is asking customers
the right approach?
106. Customers
Who are our customers?
What job do we solve for our
customers?
Value Proposition
The best way is to
start with the job
we solve for our
customers?
Werkzeu
108. Customer job to be done
Is it easy to fix a fence
to the ground?
109. There was no market
for temporary fixing
something to the
ground before Krinner
invented it.
110. Many customers have the job-to-be-
done to fix something to the
ground. Once Krinner provided a
solution many new application were
found
111. Buy
Delivery/
Assembly
Usage
Comple-
ments
Service Disposal
How can we find systematically new customer insights?
§ Understand how the customers are
buying, using and disposing the
product
§ Understand the whole lifecycle of
customers‘ utility
Source: cp. Kim,W.C., Mauborgne, R., Knowing a Winning Business Idea when
you see one, HBR Sep-Oct. 2000
Customer Experience Map
§ How can we improve the buyer‘s utility cycle?
§ Can we do more for the customer?
§ Can we leave something to the customer?
113. Where can I start in the buyer utility map? –
The Dyson Vacuum Cleaner
DisposalServiceComplementsUseDeliveryBuy
Customer
Productivity
Simplicity
Usability
Risk
Image
fun
Enviromental
friendlyness
++
Starting
Points
Dyson = value
innovation
114. Dyson vacuum cleaner – inspired by technology
The vacuum cleaner for men
Customer Insights
§ Bags and filters get clogged and restrict
airflow. Loss of suction
§ Vacuum cleaners are marketed as
household aids.Are there different
segments?
Value Proposition for customers
§ Dyson vacuum cleaners have NO bags
and do NOT get clogged due Cyclone
technology.Therefore, NO loss of
suction.
§ Dyson positions itself as technical, highly
engineered products that address men.
Revenue Model
§ Dyson demands premium prices for its
vacuum cleaners.
Dyson =
Value Innovation
116. Blacksocks – we save the world from socks problems
Disposal
Putting
in pairs
WashingUseDeliveryBuy
Customer
Productivity
Simplicity
Usability
Risk
Image
fun
Enviromental
friendlyness
Starting
Points
117. Blacksocks – We solve the world from its
socks problems
10'000
12'000
25'000
40'000
0
10'000
20'000
30'000
40'000
2001 2002 2005 2008
Socks subscription
(2001-2008) Customer Insights
§ Buying socks is no fun
§ Putting socks in pairs even less fun
§ Good socks are a sign of „Being well
dressed“
Value Proposition
§ Blacksocks subscription solves all
problems
§ Always enough new socks
§ No pairing needed since all socks are
identical
Revenue Model
§ Upfront payment
§ Easy planning and negative working
capital
Blacksocks =
revenue model
innovation
20% market share
in Switzerland*
* premium segment starting at 9CHF
118. Customer job to be done
I want a very special place
to stay, at a good price,
and want get local insights
where to go out, to eat
and to shop.
Of course, I want to know
if I can trust the person I
stay with.
119. AirBnB opened a whole new
segment of offers to the
individualistic traveler of
today
120. Even more individual choice
for the traveler who looks
for the special place to stay
AND connect to the people
of the place he visits:
AirBnB
122. Building trust by very
personal reviews (peer-to-
peer social control
mechanism plus insurance
coverage)
123. Customers
Customer Benefit
Offer
Value Chain
Core Capabilities
Distribution Communication
Channels
Partner
Business Model:
Cost Structure Revenue Sources
Team Values
Revenue Model
Team Values
Value PropositionValue Architecture
Customers
Customer Benefit
Offer
Value Chain
Core Capabilities
Distribution Communication
Channels
Partner
Business Model:
Cost Structure Revenue Sources
Team Values
Revenue Model
Team Values
Value PropositionValue Architecture
• Website, App to connect
BBs with customers • word-of-mouth
• sales crew for BnB
owners
• running site acquisition costs of
BnBs (PH)
• asset light
• Acquisition of BnB places
• Quality Trust Mgmt
• Know-how of locations
• Customers pay BnB owner
• Takes services fees from the rent the
households get (app. 15%)
• Customer (C) looking
for special place to
stay
• Private households
(PH) who offer BnB
• PH: Income and international
contacts for BnB owners
• C: places to stay that are
outside the norm
• Contacts with locals
• n/a
• n./a.
Travel like a human
Build up
BnB
offer
Help find
right
spot
Match
needs
offer
Payment
GTC
Reputation
Trust
Mgmt
Customers
Customer Benefit
Offer
Value Chain
Core Capabilities
Distribution Communication
Channels
Partner
Business Model:
Cost Structure Revenue Sources
Team Values
Revenue Model
Team Values
Value PropositionValue Architecture
• Customer (Travelers)
Job-to-be-done
• Finding a special place to
stay
• Getting to know the
hidden gems of destination
• Offer very special places that
cannot booked anywhere else
• Connect with locals that share
their insights
Customers
Customer Benefit
Offer
Value Chain
Core Capabilities
Distribution Communication
Channels
Partner
Business Model:
Cost Structure Revenue Sources
Team Values
Revenue Model
Team Values
Value PropositionValue Architecture
• Households that offer BnB
Job-to-be-done
• Earning money
• Have the world at home
• Refinancing rent
• Trust provided by platform
• Risk of damage is insured
• Connecting with people from
abroad
Why do customers like airbnB?
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124. Customers
Customer Benefit
Offer
Value Chain
Core Capabilities
Distribution Communication
Channels
Partner
Business Model:
Cost Structure Revenue Sources
Team Values
Revenue Model
Team Values
Value PropositionValue Architecture
Customers
Customer Benefit
Offer
Value Chain
Core Capabilities
Distribution Communication
Channels
Partner
Business Model:
Cost Structure Revenue Sources
Team Values
Revenue Model
Team Values
Value PropositionValue Architecture
• Website, App to connect
BBs with customers • word-of-mouth
• sales crew for BnB
owners
• running site acquisition costs of BnBs (PH)
• asset light
• Acquisition of BnB places
• Quality Trust Mgmt
• Know-how of locations
• Customers pay BnB owner
• Takes services fees from the rent the
households get (app. 15%)
• Customer (C) looking
for special place to
stay
• Private households
(PH) who offer BnB
• C: places to stay that are
outside the norm
• Contacts with locals
• PH: Income and international
contacts for BnB owners
• n/a
• n./a.
Build up
BnB
offer
Help find
right
spot
Match
needs
offer
Payment
GTC
Reputation
Trust
Mgmt
Asset light business model
You do not need to own
a place to provide
awesome locations
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125. 2
Understand
- understand the current
solutions and their
strength weakness
- understand how the
potential customer thinks
and decides
- understand the market
market mechanism
126. Your point-of-view why
you must exist:
...............................................
...............................................
...............................................
...............................................
...............................................
127. You must have
a clear point of
view why your
business should
exist
10
128. 3
Ideate
Develop as many ideas as
possible in the area of
- customers/ value
proposition
- value architecture
- revenue model
129. Think in options.
Your current idea is
not the only valid one.
There are better ones.
Search for them.
Iterate
11
130. 4
Design
- decide for three or four
options
- design the business
models for the options
- check the
interdependencies in the
business models
- work on the uniqueness
(positioning)
- optimize the building
blocks
Customers
Customer Benefit
Offer
Value Chain
Core Capabilities
Distribution Communication
Channels
Partner
Business Model:
Cost Structure Revenue Sources
Team Values
Revenue Model
Team Values
Value PropositionValue Architecture Use the canvas to
develop your business
model
131. 5
Decide Prototype
- decide for the best model
to go for
- build prototype
- test prototype with
customers
- write business case
- decide again or work on
different option
132. Fast learning
what works with
rapid prototyping of
your minimal viable
business model is the
key to success
12
133. 6
Build Learn
- execute business model
- learn continuously from
customer feedback and
control KPIs
- adjust and refine
continuously the business
model
135. 1
Customer Insight
- Observe your customers
What job is not yet or
badly solved?
- How does the Customer
Experience Cycle look
like?
- On what customer insights
is your idea based?
- validate customer insight
2
Understand
- understand the current
solutions and their
strength weakness
- understand how the
potential customer
thinks and decides
- understand the market
market mechanism
3
Ideate
Develop as many ideas as
possible in the area of
- customers/ value
proposition
- value architecture
- revenue model
4
Design
- decide for three or four
options
- design the business
models for the options
- check the
interdependencies in the
business models
- work on the uniqueness
(positioning)
- optimize the building
blocks
5
Decide Prototype
- decide for the best
model to go for
- build prototype
- test prototype with
customers
- write business case
- decide again or work on
different option
6
Build Learn
- execute business model
- learn continuously from
customer feedback and
control KPIs
- adjust and refine
continuously the
business model
136. 1
Customer Insight
- Observe your customers
What job is not yet or
badly solved?
- How does the Customer
Experience Cycle look
like?
- On what customer insights
is your idea based?
- validate customer insight
2
Understand
- understand the current
solutions and their
strength weakness
- understand how the
potential customer
thinks and decides
- understand the market
market mechanism
3
Ideate
Develop as many ideas as
possible in the area of
- customers/ value
proposition
- value architecture
- revenue model
4
Design
- decide for three or four
options
- design the business
models for the options
- check the
interdependencies in the
business models
- work on the uniqueness
(positioning)
- optimize the building
blocks
5
Decide Prototype
- decide for the best
model to go for
- build prototype
- test prototype with
customers
- write business case
- decide again or work on
different option
6
Build Learn
- execute business model
- learn continuously from
customer feedback and
control KPIs
- adjust and refine
continuously the
business model
Every startup is aniterative process withfast learnings andmany pivots