Business Model Innovationby Ramon Vullings, well ehhh.... this is actually Magritte
Business Model InnovationThis presentation is based on BusinessModel Innovation thinking by Alexander Osterwalder and the ...
Ramon Vullings   ideaDJ, Master of Interaction,     making ideas happen, writer,    speaker, connector, inventive, organis...
powered by
ideaDJThe ideaDJ mixes custom real-time inspiration for eventsWhat is ideaDJ?The ideaDJ supports events, keynotes andpanel...
“How canair travelbe free?”
20 / 70
How Can Air Travel Be Free?
Business  ModelInnovation
Marketing
creativity    &innovation         www.21Lobsterstreet.com
87,5% of statistics are lies
Perception!
Our thinking system works:• Fast• Correct• Context dependable• Our thinking system is ‘lazy’
relevant ideas ideas                               Next practices           Best           practices                      ...
FUTUREPerspective: The history of future
Apple
Let’s talk...
Describe what you do  to your neighbour  (behind or in front of you) in         33 secondsthen let your neighbour explain
We need a commonlanguage!
Why is BusinessModel thinkingimportant?
Focussing onproduct / service    innovation  is not enough     anymore!
Toegepaste creativiteit:3 vormen van innovatie
products & services     process      culture     (how we innovate)                         www.21Lobsterstreet.com
1, 2, 3... 4!                www.21Lobsterstreet.com
Internal                              Process	  /                           Culture	  /	                               Ope...
Business Model‘A business modeldescribes how an entityorganizes itself to createvalue and derive revenue’                 ...
blue oceans
“Market boundaries are notgiven they are reconstructedby the actions & beliefs ofindustry players”
RED OCEAN                       BLUE OCEAN• compete in existing markets     • create uncontested markets• beat the competi...
Now what...?
Why is Business Model thinking important to you?Entrepreneurs           Managers            Public Officers  Market entry ...
What is a business model?Various tools for describing your business model  Source: Accenture                              ...
3 value disciplines:- product leadership- operational excellence- customer intimacy                   Source: Treacy & Wie...
+€
TheBusinessModelCanvas
9   Building    Blocks
Customer Segments                    images by JAM
Value Proposition                    images by JAM
Channels           images by JAM
Customer Relationships                         images by JAM
Revenue Streams                  images by JAM
Key Resources                images by JAM
KEY ACTIVITIES
Key Partners               images by JAM
Cost Structure                 images by JAM
key       value          customer            activities   proposition       relationships     key                         ...
PARTNER           KEY        OFFER     CUSTOMER          CUSTOMERNETWORK         ACTIVITIES           RELATIONSHIPS       ...
The Business Model Canvas   KEY                          KEY                          VALUE                CUSTOMER       ...
Every product or technologycan lead to five, ten, twentydifferent business models
Ban king
Telco
Telco’s...1 Business Model    or more?
The	  Telco	  Business	  Model         3 models in oneSource:	  businessmodelgenera7on.com
The	  Telco	  Business	  Model         3 models in oneSource:	  businessmodelgenera7on.com
Bhar7	  Airtel	  LimitedA new business model for the telco industry• Bhar7	  Airtel	  Limited,	  the	  largest	  telecom	 ...
Trans port ation
Medical
Minute	  Clinic
27/04/10
The Business Model behind PatientsLikeMe.com   a community platform for patients   Forget privacy, people are sharing more...
The Business Model behind PatientsLikeMe.com   a community platform for patients   With permission, PatientsLikeMe gathers...
n-line serv icesO
ocia l media andSmo  re...
Let’s play!      =Get to work!
n canvas!M ake y our ow
Assignment:• Make teams of 2 to 3 people• Introduce yourself• Discuss who’s business model you would like    to work on•  ...
Look out for the idea killers               TIP: Download the free poster at www.ideakillers.net
Some models...  (for inspiration)
The Add-On model                The Advertising modelThe Affiliate model                     The Auction modelThe Direct S...
cuss your ownDisc anva sses      twee n 2 te ams)(be
cross-industry innovation
“The difficulty lies not in    the new ideas,... …but in escaping from         the old ones.”                     John	  M...
How to (re)invent your Business Model?           25 Strategies          #1	  Challenge	  industry	  assump7ons            ...
ustom er FocusC
Know what your customer touches...
Assesing aBusiness ModelAttractiveness...
Evaluate your business model design                                        building                                       ...
7        questions to asses your business model1. How much do switching costs prevent your customers from churning?2. How ...
For ideaimplementation:all you need is…
passion
mistake ?
mistakes?   preventablecomplexity related    intelligent
nearling ?
nearling        “ A nearling is a positive word for something            that you did with the right intentions,       whi...
Be proud!You can be proud of nearlings because:1. You started an initiative2. You may have moved others3. Maybe it let you...
nearling !   www.nearling.com
, 3 . ..    , 1 , 20                  www.21Lobsterstreet.com
Business Model Innovation strategies1 Level 0 Strategy – The Oblivious:  Focus on products/value propositions alone rather...
“We need to go fromHigh Tech to High Touch”                - Philip Kotler -
powered by
CreativityToday.net
Business Model Innovation (1/2)This presentation is based on BusinessModel Innovation thinking by Alexander Osterwalder an...
Business Model Innovation (2/2)And major input comes from:Business Model Generation - www.BusinessModelGeneration.comUnder...
Ramon Vullings                                                                                            ideaDJinnovation...
Ramon Vullings@ Egyptian Marketing Summit - Cairo June.2012
Ramon Vullings@ Egyptian Marketing Summit - Cairo June.2012
Ramon Vullings@ Egyptian Marketing Summit - Cairo June.2012
Ramon Vullings@ Egyptian Marketing Summit - Cairo June.2012
Ramon Vullings@ Egyptian Marketing Summit - Cairo June.2012
Ramon Vullings@ Egyptian Marketing Summit - Cairo June.2012
Ramon Vullings@ Egyptian Marketing Summit - Cairo June.2012
Ramon Vullings@ Egyptian Marketing Summit - Cairo June.2012
Ramon Vullings@ Egyptian Marketing Summit - Cairo June.2012
Ramon Vullings@ Egyptian Marketing Summit - Cairo June.2012
Ramon Vullings@ Egyptian Marketing Summit - Cairo June.2012
Ramon Vullings@ Egyptian Marketing Summit - Cairo June.2012
Ramon Vullings@ Egyptian Marketing Summit - Cairo June.2012
Ramon Vullings@ Egyptian Marketing Summit - Cairo June.2012
Ramon Vullings@ Egyptian Marketing Summit - Cairo June.2012
Ramon Vullings@ Egyptian Marketing Summit - Cairo June.2012
Ramon Vullings@ Egyptian Marketing Summit - Cairo June.2012
Ramon Vullings@ Egyptian Marketing Summit - Cairo June.2012
Ramon Vullings@ Egyptian Marketing Summit - Cairo June.2012
Ramon Vullings@ Egyptian Marketing Summit - Cairo June.2012
Ramon Vullings@ Egyptian Marketing Summit - Cairo June.2012
Ramon Vullings@ Egyptian Marketing Summit - Cairo June.2012
Ramon Vullings@ Egyptian Marketing Summit - Cairo June.2012
Ramon Vullings@ Egyptian Marketing Summit - Cairo June.2012
Ramon Vullings@ Egyptian Marketing Summit - Cairo June.2012
Ramon Vullings@ Egyptian Marketing Summit - Cairo June.2012
Ramon Vullings@ Egyptian Marketing Summit - Cairo June.2012
Ramon Vullings@ Egyptian Marketing Summit - Cairo June.2012
Ramon Vullings@ Egyptian Marketing Summit - Cairo June.2012
Ramon Vullings@ Egyptian Marketing Summit - Cairo June.2012
Ramon Vullings@ Egyptian Marketing Summit - Cairo June.2012
Ramon Vullings@ Egyptian Marketing Summit - Cairo June.2012
Ramon Vullings@ Egyptian Marketing Summit - Cairo June.2012
Ramon Vullings@ Egyptian Marketing Summit - Cairo June.2012
Ramon Vullings@ Egyptian Marketing Summit - Cairo June.2012
Ramon Vullings@ Egyptian Marketing Summit - Cairo June.2012
Ramon Vullings@ Egyptian Marketing Summit - Cairo June.2012
Ramon Vullings@ Egyptian Marketing Summit - Cairo June.2012
Ramon Vullings@ Egyptian Marketing Summit - Cairo June.2012
Ramon Vullings@ Egyptian Marketing Summit - Cairo June.2012
Ramon Vullings@ Egyptian Marketing Summit - Cairo June.2012
Ramon Vullings@ Egyptian Marketing Summit - Cairo June.2012
Ramon Vullings@ Egyptian Marketing Summit - Cairo June.2012
Ramon Vullings@ Egyptian Marketing Summit - Cairo June.2012
Ramon Vullings@ Egyptian Marketing Summit - Cairo June.2012
Ramon Vullings@ Egyptian Marketing Summit - Cairo June.2012
Ramon Vullings@ Egyptian Marketing Summit - Cairo June.2012
Ramon Vullings@ Egyptian Marketing Summit - Cairo June.2012
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Transcript of "Ramon Vullings@ Egyptian Marketing Summit - Cairo June.2012"

  1. 1. Business Model Innovationby Ramon Vullings, well ehhh.... this is actually Magritte
  2. 2. Business Model InnovationThis presentation is based on BusinessModel Innovation thinking by Alexander Osterwalder and the book ‘Business Model Generation’ combined with thebook ‘Creativity Today’ by Igor Byttebier & Ramon Vullings for innovative strategy development. For more models and materials please see: www.BusinessModelGeneration.com & www.CreativityToday.netpowered by 21 Lobsterstreet and the innovation & entrepreneurship institute
  3. 3. Ramon Vullings ideaDJ, Master of Interaction,  making ideas happen, writer,  speaker, connector, inventive, organisational sculptor, technology,  concept enrichment, teacher,    student, positive alternatives,  passionate, Zorro www.RamonVullings.com
  4. 4. powered by
  5. 5. ideaDJThe ideaDJ mixes custom real-time inspiration for eventsWhat is ideaDJ?The ideaDJ supports events, keynotes andpanel discussions visually, using surprisingmovies, spot on images and subtile orenergic sounds!How does it work?By using a secondary projection screen,the audience will experience real-time &spot-on images and movies which support mixing ideas, concepts & more!the content and flow of the event.Goal?Enriching the experience and getting more out of the audience’s attention. ideaDJ.com
  6. 6. “How canair travelbe free?”
  7. 7. 20 / 70
  8. 8. How Can Air Travel Be Free?
  9. 9. Business ModelInnovation
  10. 10. Marketing
  11. 11. creativity &innovation www.21Lobsterstreet.com
  12. 12. 87,5% of statistics are lies
  13. 13. Perception!
  14. 14. Our thinking system works:• Fast• Correct• Context dependable• Our thinking system is ‘lazy’
  15. 15. relevant ideas ideas Next practices Best practices time Craziness!
  16. 16. FUTUREPerspective: The history of future
  17. 17. Apple
  18. 18. Let’s talk...
  19. 19. Describe what you do to your neighbour (behind or in front of you) in 33 secondsthen let your neighbour explain
  20. 20. We need a commonlanguage!
  21. 21. Why is BusinessModel thinkingimportant?
  22. 22. Focussing onproduct / service innovation is not enough anymore!
  23. 23. Toegepaste creativiteit:3 vormen van innovatie
  24. 24. products & services process culture (how we innovate) www.21Lobsterstreet.com
  25. 25. 1, 2, 3... 4! www.21Lobsterstreet.com
  26. 26. Internal Process  / Culture  /   Opera/onal   Management   Innova/on Innova/onCon/nuous Discon/nuous Product  &  Service   Business  Model   Innova/on Innova/on ExternalSource:  Marc  Sniukas
  27. 27. Business Model‘A business modeldescribes how an entityorganizes itself to createvalue and derive revenue’ - A. Osterwalder -
  28. 28. blue oceans
  29. 29. “Market boundaries are notgiven they are reconstructedby the actions & beliefs ofindustry players”
  30. 30. RED OCEAN BLUE OCEAN• compete in existing markets • create uncontested markets• beat the competition • make competition irrelevant• explore existing demand • create & capture new demand• make the value/cost trad-off • break value/cost trade-off• align with differentiation OR • align with differentiation low cost AND low cost
  31. 31. Now what...?
  32. 32. Why is Business Model thinking important to you?Entrepreneurs Managers Public Officers Market entry Growth Enhanced value for citizensCommercializing Competitive a new advantage Innovative new technology approaches Fend off new Create new entrants New public markets management Consultants provide insight & implementation guidance
  33. 33. What is a business model?Various tools for describing your business model Source: Accenture Source: The Boston Consulting Group Source: Innosight Source: businessmodelgeneration.com
  34. 34. 3 value disciplines:- product leadership- operational excellence- customer intimacy Source: Treacy & Wiersma
  35. 35. +€
  36. 36. TheBusinessModelCanvas
  37. 37. 9 Building Blocks
  38. 38. Customer Segments images by JAM
  39. 39. Value Proposition images by JAM
  40. 40. Channels images by JAM
  41. 41. Customer Relationships images by JAM
  42. 42. Revenue Streams images by JAM
  43. 43. Key Resources images by JAM
  44. 44. KEY ACTIVITIES
  45. 45. Key Partners images by JAM
  46. 46. Cost Structure images by JAM
  47. 47. key value customer activities proposition relationships key customerpartners segments cost revenuestructure key streams resources channels images by JAM
  48. 48. PARTNER KEY OFFER CUSTOMER CUSTOMERNETWORK ACTIVITIES RELATIONSHIPS SEGMENTS KEY DISTRIBUTION RESOURCES CHANNELS COST STRUCTURE REVENUE STREAMS drawings by JAM
  49. 49. The Business Model Canvas KEY KEY VALUE CUSTOMER CUSTOMERPARTNERS ACTIVITIES PROPOSITION RELATIONSHIPS SEGMENTS b u ildin g blo c k bui ldin g b u ildin g blo ck blo c k b u ildin g blo c k b u ildin g KEY buildin g CHANNELS bl o ck RESOURCES block building bloc k b u ildin g blo c k building bloc k COST STRUCTURE REVENUE STREAMS b u ildin g buildin g bui ldin g blo c k bloc k block
  50. 50. Every product or technologycan lead to five, ten, twentydifferent business models
  51. 51. Ban king
  52. 52. Telco
  53. 53. Telco’s...1 Business Model or more?
  54. 54. The  Telco  Business  Model 3 models in oneSource:  businessmodelgenera7on.com
  55. 55. The  Telco  Business  Model 3 models in oneSource:  businessmodelgenera7on.com
  56. 56. Bhar7  Airtel  LimitedA new business model for the telco industry• Bhar7  Airtel  Limited,  the  largest  telecom  service  provider  in  India,  chose  to   strategically  outsource  its  core  func7ons. • Network:  Ericsson,  Nokia  &  Siemens • IT:  IBM• For  a  typical  telecom  operator,  the  pain  point  during  the  growth  phase  is   planning  for  network  requirements  and  preparing  budgets  for  such  a  capital   expenditure.• Capacity  has  to  be  built  ahead  of  demand,  which  usually  means  the  telecom   operator  has  to  absorb  the  cost  of  unused  capacity.• Interes7ng: -­‐  110  M  subscribers -­‐  largest  Music  Store  in  India Source:  hMp://blogs.hbr.org/cs/2010/05/reverse_innova7on_success_in_the_tele.html
  57. 57. Trans port ation
  58. 58. Medical
  59. 59. Minute  Clinic
  60. 60. 27/04/10
  61. 61. The Business Model behind PatientsLikeMe.com a community platform for patients Forget privacy, people are sharing more info than ever, even medical records. By offering a free service PatientsLikeMe can attract thousands of patients. 27/04/10by BoardofInnovation.com pitch your business model visually via this free template
  62. 62. The Business Model behind PatientsLikeMe.com a community platform for patients With permission, PatientsLikeMe gathers data that can be resold for huge sums to third parties likes pharmaceutical companies. Simple. Marvelous. 27/04/10by BoardofInnovation.com pitch your business model visually via this free template
  63. 63. n-line serv icesO
  64. 64. ocia l media andSmo re...
  65. 65. Let’s play! =Get to work!
  66. 66. n canvas!M ake y our ow
  67. 67. Assignment:• Make teams of 2 to 3 people• Introduce yourself• Discuss who’s business model you would like to work on• Let this person explain their business essence• Map this out on the canvas (using post-its)• Generate ideas (and start moving the post-its remove or add new ones)• Generate a new or enhanced Business Model!• Have fun! Everything is possible... be creative!
  68. 68. Look out for the idea killers TIP: Download the free poster at www.ideakillers.net
  69. 69. Some models... (for inspiration)
  70. 70. The Add-On model The Advertising modelThe Affiliate model The Auction modelThe Direct Sales model The Franchise modelThe Freemium model The Low-Cost modelThe Pay as You Go model The Recurring Revenue model (Subscription model)
  71. 71. cuss your ownDisc anva sses twee n 2 te ams)(be
  72. 72. cross-industry innovation
  73. 73. “The difficulty lies not in the new ideas,... …but in escaping from the old ones.” John  Maynard  Keynes
  74. 74. How to (re)invent your Business Model? 25 Strategies #1  Challenge  industry  assump7ons WHO #11  Target  non-­‐customers #12  Target  less  profitable  customers #13  Target  the  least  sa7sfied  customers #14  Target  the  chain  of  buyers #15  Segment  according  to  commonali7es #16  Segment  according  to  circumstances   #17  Desegment  the  customer  based WHAT HOW #2  Offer  complementary  products  and  services #18  Reinvent  the  customer  interface  (channels) #3  Offer  solu7ons  and  experiences #19  Reinvent  your  customer  rela7onships #4  Offer  bundles #20  Invent  new  revenue  streams #5  Switch  your  appeal:  func7onal  versus  emo7onal #21  Price  differently #6  Focus  on  the  job  to  be  done #22  Reinvent  you  cost  base #7  Selec7vely  eliminate,  reduce,  raise  and  create #23  Re-­‐assess  your  key  ac7vi7es #8  Look  at  subsitutes #24  Collaborate  with  suppliers,  partners,  the   #9  Expand  the  use  of  your  assets  and  capabili7es network  and  ecosystem #10  Look  at  the  customer  experience #25  Look  at  completely  different  industriesSource:  Marc  Sniukas
  75. 75. ustom er FocusC
  76. 76. Know what your customer touches...
  77. 77. Assesing aBusiness ModelAttractiveness...
  78. 78. Evaluate your business model design building block building buildin block g blo ck building block building block build ing block building building block block build ing block building buil ding block blo ck buildin g block
  79. 79. 7 questions to asses your business model1. How much do switching costs prevent your customers from churning?2. How scalable is your business model?3. Does your business model produce recurring revenues?4. Do you earn before you spend?5. How much do you get others to do the work?6. Does your business model provide built-in protection from competition?7. Is your business model based on a game changing cost structure?See: http://www.businessmodelalchemist.com/2011/09/7-questions-to-assess-your-business-model-design.html
  80. 80. For ideaimplementation:all you need is…
  81. 81. passion
  82. 82. mistake ?
  83. 83. mistakes? preventablecomplexity related intelligent
  84. 84. nearling ?
  85. 85. nearling “ A nearling is a positive word for something that you did with the right intentions, which has not (yet) led to the expected result. ”The reasons for nearlings not to succeed can be diverse:• the circumstances have changed• a better option has been chosen• you made an error• faith decided differently• there suddenly were other priorities•...
  86. 86. Be proud!You can be proud of nearlings because:1. You started an initiative2. You may have moved others3. Maybe it let you to something that was successful4. You need many nearlings, for a few successes5. You learned from it6. ...We want to contribute to increase the international innovative culture andentrepreneurship by introducing this word.The nearling emphasizes that initiatives are almost always valuable, even ifthey don’t lead to the expected result (directly). Share your nearlings and learn from others at: www.nearling.com
  87. 87. nearling ! www.nearling.com
  88. 88. , 3 . .. , 1 , 20 www.21Lobsterstreet.com
  89. 89. Business Model Innovation strategies1 Level 0 Strategy – The Oblivious: Focus on products/value propositions alone rather than the value proposition AND the business model.2 Level 1 Strategy – The Beginners: Use the Business Model Canvas as a checklist.3 Level 2 Strategy – The Masters: Outcompete others with a superior business model where every one of the business model building blocks reinforce each other (e.g. Nintendo Wii, Nespresso, Dell).4 Level 3 Strategy – The Invincible: Continuously disrupt themselves while their business models are still successful (e.g. Apple, Amazon.com).
  90. 90. “We need to go fromHigh Tech to High Touch” - Philip Kotler -
  91. 91. powered by
  92. 92. CreativityToday.net
  93. 93. Business Model Innovation (1/2)This presentation is based on BusinessModel Innovation thinking by Alexander Osterwalder and the book ‘Business Model Generation’ combined with thebook ‘Creativity Today’ by Igor Byttebier & Ramon Vullings for innovative strategy development. For more models and materials please see: www.BusinessModelGeneration.com & www.CreativityToday.net
  94. 94. Business Model Innovation (2/2)And major input comes from:Business Model Generation - www.BusinessModelGeneration.comUnderstanding Business Models - www.BMImatters.comMark Sniukas - www.sniukas.comMarc Heleven - thegentleartofsmartstealing.wordpress.comBoard of Innovation - www.slideshare.net/boardofinnovationCreativity Today - www.CreativityToday.netAlexander Osterwalder - www.alexosterwalder.comWired Magazine - www.Wired.comFast Company Magazine - www.FastCompany.comRamon Vullings - www.RamonVullings.comHarvard Business Review - www.HBR.org
  95. 95. Ramon Vullings ideaDJinnovation - keynote supportconsulting - enhance audience experience master of - custom real-time inspiration for events- leadership & strategy advice- business model Innovation interaction- making ideas happen boost your event - keynote speaking - linking content with activity innovate - engage large audiences move people RamonVullings.com

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