What are the key search approaches to come up with a Business Model Innovation?
What Business Model Innovation is NOT – Remember the dot.coms? Start-ups can easily overthrow corporate behemoths Classic management / financials are not relevant Substitute currencies e.g. „share of eyeballs“ count Corporate executives need to operate like Venture Capitalists Corporations are obsolete In the Internet era, networks count and everyone is a free agent Go ahead and destroy your business. If you don‘t, someone else will 2
Whatis a Business Model? A „canvas“ of several elements answeringkey questions: Customer segmentsWho are our customers? Value PropositionWhat are the convincing benefitsour product / service offers? Customer RelationshipHow do we contact and interact with our customers? Distribution Channels: How do we get our products / services to the customers? Revenues: What is the level of payment, what type of pricing is best? Cost: What are the main cost factors? Strategic Partners: What are the strategic partners we need to produce our product / service? Key Activities: What are the key value-adding steps we have to manage? Key Resources: What are the key assets we have and are needed for serving the customers? 3 Source: Business Model Generation: A Handbook forVisionaries, Game Changers, andChallengersby A. Osterwalder and Y. Pigneur
Example: Apple‘s Business Model in thehandhelddevicesmarket 4 Customer segments
Business Model innovation: 5 approaches 5 Blue Ocean strategies Identify customer segments with a specific value set; Target this market by adjusting the other pieces of the canvas accordingly Unbundling A business can consist of several sub-businesses, e.g. Customer Relationship / Product Innovation / Infrastructure business. Unbundle these into separate entities. Long Tail Business Model innovation Focus on a large number of niche products with infrequent sales. Aggregate sales of niche items can be attractive. Multi-sided platforms Creating value by connecting different groups and facilitating interactions between them FREE Business Models Non-paying customers are financed by another customer segment; non-paying customers are lured into paid products
About … Frank Matteswww.open-innovators.com More than 15 years of experience in managing projects and innovation Worked for medium-sized national consulting companies as well as for The Boston Consulting Group Worked at C-level for an IT and a Professional Services company Author of several books and articles Currently working at www.hlp-online.de Contact +49-(0)171-6866774 firstname.lastname@example.org 6