Business Model Innovation Matters

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If you are an executive you should know how to reflect on business model innovation. No matter what industry you are in...

If you are an executive you should know how to reflect on business model innovation. No matter what industry you are in...

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  • 1. BUSINESS MODEL INNOVATION matters !
  • 2. consider Eric
  • 3. Eric works for…
  • 4.  
  • 5. he joined the music industry for…
  • 6. … the glitz
  • 7. … & glamour
  • 8. in those days he used to go out with …
  • 9. Pearl on Thursday…
  • 10. Sara on Friday…
  • 11. and Cris on Saturday
  • 12. but things have changed…
  • 13. CD Sales
  • 14. now Eric is working on…
  • 15. … Thursday
  • 16. … Friday
  • 17. … and Saturday
  • 18. he is blaming…
  • 19.  
  • 20. and…
  • 21.  
  • 22. so Eric hired…
  • 23. Rosen & Craig, Law Firm
  • 24. to hunt down …
  • 25. Lisa, 12, illegal downloader
  • 26. but Eric really should have focused on…
  • 27. BUSINESS MODEL INNOVATION
  • 28. consider…
  • 29.  
  • 30. AMIE st. first gives songs away for 0.- USD
  • 31. but the more a tune is downloaded…
  • 32. … the more AMIE st. charges
  • 33. BUSINESS MODEL INNOVATION that’s
  • 34. BUSINESS MODEL INNOVATION that’s new talent discovery
  • 35. BUSINESS MODEL INNOVATION that’s distribution channels
  • 36. BUSINESS MODEL INNOVATION that’s revenue streams
  • 37. now consider…
  • 38.  
  • 39. Nokia is launching an “all-you-can-eat” music service
  • 40. it’s called Nokia “comes with music”
  • 41. pay a monthly subscription …
  • 42. … and listen as much as you want
  • 43. BUSINESS MODEL INNOVATION that’s
  • 44. BUSINESS MODEL INNOVATION that’s building a platform
  • 45. BUSINESS MODEL INNOVATION that’s leveraging brand
  • 46. BUSINESS MODEL INNOVATION that’s with recurring revenues
  • 47. consider…
  • 48.  
  • 49. they offer a really neat service…
  • 50. imagine you’re shopping…
  • 51. or working out…
  • 52. and you hear a tune you like…
  • 53. … but don’t know the title or artist
  • 54. with Shazam you can…
  • 55. dial a number…
  • 56. hold your phone to the speakers…
  • 57. … and get the title and artist by SMS
  • 58. you know how they make money?
  • 59. communication and SMS charges…
  • 60. … and sales commissions
  • 61. BUSINESS MODEL INNOVATION that’s
  • 62. BUSINESS MODEL INNOVATION that’s product innovation
  • 63. BUSINESS MODEL INNOVATION that’s new channels
  • 64. BUSINESS MODEL INNOVATION that’s new revenues streams
  • 65. and then of course there is…
  • 66. well, you know this one
  • 67. now you might be saying…
  • 68. … I’m not in the music industry
  • 69. but consider…
  • 70. the pharma industry
  • 71. generic drugs India!
  • 72. the telco industry
  • 73. VoIP for free!
  • 74. the car industry
  • 75. oil prices
  • 76. consider your industry !
  • 77. so, what’s to do?
  • 78.  
  • 79. … probably not the best solution
  • 80. so, consider this…
  • 81. BUSINESS MODEL CANVAS the
  • 82. reflect systematically on your business model
  • 83. areas 4
  • 84. WHAT?
  • 85. WHAT? WHO?
  • 86. WHAT? WHO? HOW?
  • 87. WHAT? WHO? HOW? $? € ?
  • 88. building blocks 9
  • 89. WHAT? HOW? $? € ? WHO?
  • 90. WHAT? WHO? HOW? $? € ? CUSTOMERS
  • 91. WHAT? WHO? HOW? $? € ? CLIENTS CLIENT SEGMENTS CLIENT SEGMENTS CUSTOMER SEGMENTS
  • 92. WHAT? WHO? HOW? $? € ? CLIENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS OFFER CUSTOMER SEGMENTS
  • 93. WHAT? WHO? HOW? $? € ? CLIENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS OFFER CUSTOMER SEGMENTS DISTRIBUTION CHANNELS
  • 94. WHAT? WHO? HOW? $? € ? CLIENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS OFFER CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS DISTRIBUTION CHANNELS
  • 95. WHAT? WHO? € ? CLIENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS OFFER CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS REVENUE FLOWS DISTRIBUTION CHANNELS HOW? $?
  • 96. WHAT? WHO? € ? CLIENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS OFFER CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS REVENUE FLOWS DISTRIBUTION CHANNELS $? CLIENT SEGMENTS CLIENT SEGMENTS KEY RESOURCES HOW?
  • 97. WHAT? WHO? € ? CLIENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS OFFER CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS REVENUE FLOWS DISTRIBUTION CHANNELS $? CLIENT SEGMENTS CLIENT SEGMENTS KEY RESOURCES CLIENT SEGMENTS CLIENT SEGMENTS KEY ACTIVITIES HOW?
  • 98. WHAT? WHO? HOW? € ? CLIENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS OFFER CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS REVENUE FLOWS DISTRIBUTION CHANNELS PARTNER NETWORK $? CLIENT SEGMENTS CLIENT SEGMENTS KEY RESOURCES CLIENT SEGMENTS CLIENT SEGMENTS KEY ACTIVITIES
  • 99. WHAT? WHO? HOW? $? € ? CLIENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS CLIENT SEGMENTS OFFER COST STRUCTURE CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS KEY RESOURCES KEY ACTIVITIES REVENUE FLOWS DISTRIBUTION CHANNELS PARTNER NETWORK
  • 100. how do you use the business model canvas?
  • 101. assemble a team with diverse perspectives
  • 102. OFFER DISTRIBUTION CHANNELS CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS REVENUE STREAMS COST STRUCTURE KEY ACTIVITIES PARTNER NETWORK KEY RESOURCES print the canvas on a poster…
  • 103. brainstorm like crazy…
  • 104. OFFER DISTRIBUTION CHANNELS CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS REVENUE STREAMS COST STRUCTURE KEY ACTIVITIES PARTNER NETWORK KEY RESOURCES … get business model prototypes
  • 105. go and try
  • 106. go and try it really works
  • 107. but click on that “vote” button first
  • 108. check out my blog for more: http://business-model-design.blogspot.com
  • 109. or contact me for a conference or workshop engagement [email_address]