Nick De Mey – Founder, Board of Innovation

1. How to pick
the right business model?

3. “When I grow up,
I want to be an
inventor.

4. Nick De Mey - @nickdemey
co-founder Board of Innovation

5. “It’s our goal to make corporates innovate
like startups to challenge the status quo.”

6. Let’s kill corporate innovation theatre

7. Our focus: Business Model Innovation

8. A plan to monetize your startup idea?
https://vimeo.com/79954057

9. Invent the future!
where to start?

10. No magic.

11. Remember this one?

12. 10K homepage…

13. Copy & Remix.

14. Add-ons..
Curation..
Discovery..
Ads
Analogy Thinking: making Business Cocktails
Subscription
Model: Spotify

15. Add-ons..
Curation..
Discovery..
Ads
Analogy Thinking: making Business Cocktails
Subscription
Model: Spotify
Industry: Books

16. Analogy Thinking: making Business Cocktails
Model: Spotify
Industry: Books
24Symbols.com

17. Analogy Thinking: making Business Cocktails
Reviews..
Wish lists..
P2P..12% Fee
Model: AirBnb

18. Analogy Thinking: making Business Cocktails
Reviews..
Wish lists..
P2P..12% Fee
Model: AirBnb
Industry: Food

19. Analogy Thinking: making Business Cocktails
Lease A Jeans
Car leasing
Industry: Clothing

20. Analogy Thinking: making Business Cocktails
Reviews..
Wish lists..
P2P..12% Fee
Industry: Food
eatfeastly.com
Model: AirBnb

21. Airbnb
of Food.
of Parking.

22. Airbnb
of Boats.
of Storage.

23. Airbnb

24. Netflix

25. Netflix
of Books.
of Toys.

26. Netflix
of Clothing.
of Games.

27. Tinder

28. Tinder
of Jobs.
of Fashion.

29. Tinderof Real-estate.
of Shopping.

30. Many different components!
My focus will be on
how value can be created.
+ how to monetise your product/service.

31. Understand the patterns!

32. Business Model Blocks

33. - Business Model Blocks -

34. - Business Model Blocks -

35. Business Model transactions
Focus to make this flow as smooth as possible. #frictionless

36. Can be more complex.
Many different players, a lot of monetary transactions.

37. Free download to create your own business model

38. List of questions
you need to ask?

39. What to pick?
Free!
for the user.
1.
Paid!
the user = client.
2.

40. Free?
Free = Free

41. What to pick?
Free!
for the user.
1.
- Early exit -

42. Free
(Hidden) other agenda:
- Aim for an early exit.
- Acqui-hire
- Prestige
- …
Rule of thumb:
There is no free lunch.

43. Value per employee?

44. What to pick?
Free!
for the user.
1.
- Early exit -
- Pay-what-you-want -

45. Free?
Customer can pick
his own price.
Pay-what-you-want. (including free)

46. Case: Humble Bundle

47. Restaurants, Museums,…

48. Other industries
#win #fail
Emotional connection
Social/group pressure
…
selling to businesses
social/group pressure
…

49. What to pick?
Free!
for the user.
1.
- Early exit -
- Pay-what-you-want -
- Tip jar/ donation -

50. Free?
Main difference:
People often get the product for free, but
are free to do an extra transaction.
Tip jar - Donation.

51. Free, for some.
Different segments of
users.

52. What to pick?
Free!
for the user.
1.
- Early exit -
- Pay-what-you-want -
- Tip jar/ donation -
- Barter -

53. Swap goods, give something else in return.

54. What to pick?
Free!
for the user.
1.
Paid!
the user = client.
2.
Reason why people upgrade!

55. Free, but pay for extra features

56. What to pick?
Paid!
the user = client.
2.
- Vanity - reputation -

57. Some people only want “the best”
Ultimate luxury. 12K€ Smartphone (Vertu)

58. Vanity, reputation…
Vanity is so powerful!

59. Looks & Reputuation in games.
To fit in Exclusivity Show Commitment ...

60. Important learning: You need other people to show off!

61. Pay to get noticed. (above the crowd…)
Would you pay to get seen by your friends on Facebook?
Facebook 2012

62. What to pick?
Paid!
the user = client.
2.
- Vanity - reputation -
- Loss-aversion -

63. Another tactic: Lure people in with free + lock-in.
Just give it a try!

64. Pay-as-you-go model.
Switching cost?

65. Pay-as-you-go model.
Switching cost?

66. Similar, pay-per-use.
Blendle - itunes for journalism

67. What to pick?
Paid!
the user = client.
2.
- Vanity - reputation -
- Loss-aversion -
- Privacy/ Anonymity -

68. Privacy features are very powerfull!
Hide your profile.
Incognity mode.

69. What to pick?
Paid!
the user = client.
2.
- Vanity - reputation -
- Loss-aversion -
- Privacy/ Anonymity -
- Mystery/ Surprises -

70. Mystery crates (& surprise upgrades)
similar to Lottery system = very lucrative!

71. Real life mystery crate (on subscription)
Trust & credibility created by 1 person (not a company)

72. Blind dates, anyone?
Crazy Blind Date by OKcupid. (up to $3/date)

73. What to pick?
Paid!
the user = client.
2.
- Vanity - reputation -
- Loss-aversion -
- Privacy/ Anonymity -
- Mystery/ Surprises -
- Convenience/ Shortcuts -

74. Use Sold. The convenient way to sell goods online.
1 picture to sell your goods.

75. The power of Zynga-like games.
Grind - Spam - Pay

76. Our own experience :)
Colleague of us sends out dating invites to all our clients.

77. What to pick?
Paid!
the user = client.
2.
- Vanity - reputation -
- Loss-aversion -
- Privacy/ Anonymity -
- Mystery/ Surprises -
- Convenience/ Shortcuts -
- Helping peers/ gifts -

78. This one is on me…
Yes, Awesome.
I’m a PLUS member.

79. Virtual gifts.
Line messaging app is one to keep an eye on!

80. Crucial question!

81. Learn from gaming.
Question:
Do you allow people to spend (all their) money?

82. Next Chapter.

83. Why does this person get a +120M€ contract?

84. What to pick?
Free!
for the user.
1.
Paid!
the user = client.
2.
Third party
pays the bills.
3.

85. What to pick?
Third party
pays the bills.
3.
- Advertising -

86. Every ad-based model.
The user becomes
the product.

87. Ad-business is straight forward. but hard.
Offer content.
Control eyeballs
Steer attention to ads
Profit.

88. What to pick?
Third party
pays the bills.
3.
- Advertising -
- Affiliate/ Referral -

89. Drive sales for another.
Affiliate & Referral models.

90. Integrated referral links?
Pinterest is the perfect match!

91. What to pick?
Third party
pays the bills.
3.
- Advertising -
- Affiliate/ Referral -
- Data Reseller -

92. Resell data.
One company is more transparant than the other.

93. What’s the value of your own personal data?
Resell your own data via a platform:
example Citizenme.

94. Example: Patients like me.

95. What to pick?
Third party
pays the bills.
3.
- Advertising -
- Affiliate/ Referral -
- Data Reseller -
- Joint-Venture/partnership -

96. What to pick?
Third party
pays the bills.
3.
- Advertising -
- Affiliate/ Referral -
- Data Reseller -
- Joint-Venture/partnership -
- White-label/Franchise -

97. What to pick?
Third party
pays the bills.
3.
- Advertising -
- Affiliate/ Referral -
- Data Reseller -
- Joint-Venture/partnership -
- White-label/Franchise -
- Get-one-give-one -

98. another client pays for your product. (could be anymous)

99. Suspended coffee

100. One Laptop Per Child

101. What to pick?
Free!
for the user.
1.
Paid!
the user = client.
2.
Third party
pays the bills.
3.
Broker/
Matchmaking
4.
Can be a mix of all three.

102. Broker/
Matchmaking
4.
- One-side pays -

103. One side pays.

104. Many dating platforms are based on this model.

105. Get paid to date?
Very controversial
of course.

106. Get paid to date.
Other platforms experiment with other rewards than money.

107. Broker/
Matchmaking
4.
- One-side pays -
- Both sides pay -

108. Matchmaking between 2 normal users.
only 1 of the 2 parties pays.

109. Auction platforms.

110. AirBnb & other broker platforms

111. Broker/
Matchmaking
4.
- One-side pays -
- Both sides pay -
- Crowdfunding -
- Penny Auctions -

112. Crowdfunding (many variations)
For pre-sales?
Investment?
Donation?

113. Crowdfunding
The product itself is often not the primary driver:
“Be part of something bigger, a revolution in …”

114. Get a return of an investment in someone else.

115. Broker/
Matchmaking/
4.
- One-side pays -
- Both sides pay -
- Crowdfunding -
- Penny Auctions -

117. What to pick?
Free!
for the user.
1.
Paid!
the user = client.
2.
Third party
pays the bills.
3.
Broker/
Matchmaking
4.
Mixed model
Subsidised
5.

118. Mixed model
Subsidised
5.
- Shop (on the side) -

119. Mixed model
Subsidised
5.
- Shop (on the side) -
- Razor-blade (add-ons) -

120. Pay for recurring upgrades or consumables
Offer part of your service
for free (or nearly free)

121. Open Source model with paid consulting support

122. Ryanair-like no-frills models.

123. Mixed model
Subsidised
5.
- Shop (on the side) -
- Razor-blade -
- Credits/points -

124. Combine concepts

125. www.glowing.com
IncIncHQHQ
Glow
IncIncHQHQ
Glow First Fund
Non-Paying user
Data
Predictions & Tasks
to increase pregnancy

126. www.glowing.com
Paying Users
IncIncHQHQ
Glow
IncIncHQHQ
Glow First Fund
Preganant*
Enganging User
Not Pregnant*
"Normal" User
Not Pregnant*
5
€50/Month
Insurance &
Extra Guidance
Data
Non-Paying user
Data
Predictions & Tasks
to increase pregnancy
support

127. www.glowing.com
Paying Users
IncIncHQHQ
Glow
IncIncHQHQ
Glow First Fund
Preganant*
Enganging User
Not Pregnant*
"Normal" User
Not Pregnant*
5
€50/Month
Insurance &
Extra Guidance
conceiving
Data
Non-Paying user
Data
Predictions & Tasks
to increase pregnancy
++ % of Money Pool
% of Money Pool
support

128. www.glowing.com
inFertility Treatment Partner
Paying Users
IncIncHQHQ
Glow
IncIncHQHQ
Glow First Fund
Preganant*
Enganging User
Not Pregnant*
"Normal" User
Not Pregnant*
5
€50/Month
Insurance &
Extra Guidance
conceiving
IncIncIncInc
Company
Data
IncIncIncInc
Company
Non-Paying user
Data
Predictions & Tasks
to increase pregnancy
++ % of Money Pool
% of Money Pool
5
Less Money
5
Money
Data Exposure
support

129. www.glowing.com
inFertility Treatment Partner
Paying Users
IncIncHQHQ
Glow
IncIncHQHQ
Glow First Fund
Preganant*
Enganging User
Not Pregnant*
"Normal" User
Not Pregnant*
5
€50/Month
Insurance &
Extra Guidance
conceiving
IncIncIncInc
Company
Data
IncIncIncInc
Company
Non-Paying user
Data
Predictions & Tasks
to increase pregnancy
++ % of Money Pool
% of Money Pool
5
Less Money
R&D
IncIncIncInc
Labo
5
Money
Data
Universities
5
Money
User Data
Exposure
support

130. Typical mistakes in
your business model.

131. Flickr: adam_jones
“An alert app for singles when they
match as they pass by on the street.”
Take a second, think about it.
What do you see as the most important pitfalls?
1.

132. What is the chance that 2 potential users have
the app installed and would find each other?
Lesson
Don’t focus on products or matchmaking services that
could only work if nearly everybody needs to be a client first.
This is not just a Chicken & Egg problem. Offer value to your app even without a
large user base.
Similar: Poken.com, Real-time niche expert matching,...
1.
The-EverybodyWillLoveit-Guy

133. Flickr: thundershead
“Traffic jam solution via Car-to-Car
communication on highways. ”
Take a second, think about it.
What do you see as the most important pitfalls?
2.

134. Do you really believe you could integrate your
technology in every single car, signage, roads,...?
Lesson
As a startup you just can’t turn a whole value chain
upside down.
Have a clear view on the operational hassle to roll out such a concept. You’ll realize
that already the planning of the first meeting with a big player (BMW?) is a burden.
2. The-I’llChangeTheWorld-Guy

135. Flickr: reallyboring
“Walls that change color depending
on the mood of people.”
Take a second, think about it.
What do you see as the most important pitfalls?
3.

136. How frequently do people ‘replace’ their walls?
Learning
Don’t focus too much on slow moving industries
(e.g. housing) where the sale of products only happens
every few year.
Speed is crucial for your startup. If you target such an industry be sure to have a
specific strategy to move quickly. (e.g. partnership for sales & marketing)
Similar: Roads that generate electricity,...
3. The-NeedsaRealityCheck-Guy

137. Flickr: tuxthepenguin
“Small DVD renting machines for
retail stores.”
Take a second, think about it.
What do you see as the most important pitfalls?
4.

138. Will people start renting DVD’s again? - hell no -
Learning
You can’t stop change with your startup. Don’t fight it.
Sounds obvious but still many ‘ideas’ presented to us are just small
improvements on products for markets where customers already moved in a different direction.
Similar: Tweaked ads for television,...
4. The-BlindDenier-Guy

139. Flickr: mightyhorse
“A fridge that automagically orders
food when your run out of milk.”
Take a second, think about it.
What do you see as the most important pitfalls?
5.

140. It’s not because technology has a solution that
people have a problem to solve.
Learning
Check if your idea is based on a geek’s wet dream or
a real demand in the market.
Smart fridges with build in computers (as an idea) exist already +50 years.
There is a very good reason why our fridges aren’t robots yet.
Similar: Hologram meet-ups,...
5. The-TechFetisjist-Guy

141. Flickr: grumpy-puddin
“Device for patients to mix specific
drugs at home.”
Take a second, think about it.
What do you see as the most important pitfalls?
6.

142. What would it take to change regulation in
your favour?
Learning
If legislation needs to be updated to make your service
work, you better kill your idea.
Some rules are not ‘official laws’ but existing habits within cultures.
These unwritten rules or norms within society are similar obstacles.
Similar: new road signs, child monitor,...
6. The-ImTheKing-Guy

143. “Online platform for employees to
make their own time tables.”
Take a second, think about it.
What do you see as the most important pitfalls?
7.

144. Will the employees pay themselves?
Learning
The one who puts money on the table (the employer)
is not the one who uses the service. There might be a
conflict of interest. (Why hand over control to employees?)
Make sure that you understand the difference between ‘your clients’ and ‘your users’.
You will need 2 different pitches, one for each group.
7. The-MoneyIsNoIssue-Guy

145. “iPhone case with built-in wireless
charger! No more cables!”
Flickr: tyfn
Take a second, think about it.
What do you see as the most important pitfalls?
8.

146. Will travelers stop carrying charging cables?
Learning
Make sure you didn’t move the problem instead of
solving it. If charging pads are not available everywhere,
people will still carry their cables with them.
= carry more stuff = worse.
Replacing one problem with another is a mistake linked to gimmicks & gadgets.
8. The-100%MarketShare-Guy

147. “Cart that automatically hands out
food in an airplane. ”
Take a second, think about it.
What do you see as the most important pitfalls?
9.

148. Will you reduce the number of staff?
Learning
Always take a look at the whole process. Optimizing one part
(e.g. food) will not make one flight attendant obsolete.
= no costs being saved in the end.
This is a common pitfall. Often people focus on irrelevant problems and miss out
the real bottleneck in the process.
9. The-LivingInaSilo-Guy

149. Flickr: ifrc
“Stronger emergency shelter for
disaster areas.”
Take a second, think about it.
What do you see as the most important pitfalls?
10.

150. How much budget does an NGO or government
has available for you?
Learning
Purely from a business perspective you should not target
clients with limited budgets.
In the same domain: services that target young start-ups, students,... Although
they might spend money in the end, there are often easier clients to persuade.
10. The-Idealist-Guy