Ramon Vullings@ Egyptian Marketing Summit - Cairo June.2012Presentation Transcript
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 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
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
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
“How canair travelbe free?”
20 / 70
How Can Air Travel Be Free?
creativity &innovation www.21Lobsterstreet.com
87,5% of statistics are lies
Our thinking system works:• Fast• Correct• Context dependable• Our thinking system is ‘lazy’
relevant ideas ideas Next practices Best practices time Craziness!
FUTUREPerspective: The history of future
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 / Opera/onal Management Innova/on Innova/onCon/nuous Discon/nuous Product & Service Business Model Innova/on Innova/on ExternalSource: Marc Sniukas
Business Model‘A business modeldescribes how an entityorganizes itself to createvalue and derive revenue’ - A. Osterwalder -
“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 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
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
What is a business model?Various tools for describing your business model Source: Accenture Source: The Boston Consulting Group Source: Innosight Source: businessmodelgeneration.com
key value customer activities proposition relationships key customerpartners segments cost revenuestructure key streams resources channels images by JAM
PARTNER KEY OFFER CUSTOMER CUSTOMERNETWORK ACTIVITIES RELATIONSHIPS SEGMENTS KEY DISTRIBUTION RESOURCES CHANNELS COST STRUCTURE REVENUE STREAMS drawings by JAM
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
Every product or technologycan lead to ﬁve, ten, twentydifferent business models
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 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
Trans port ation
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
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
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• 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!
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 Sales model The Franchise modelThe Freemium model The Low-Cost modelThe Pay as You Go model The Recurring Revenue model (Subscription model)
cuss your ownDisc anva sses twee n 2 te ams)(be
“The difficulty lies not in the new ideas,... …but in escaping from the old ones.” John Maynard Keynes
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
ustom er FocusC
Know what your customer touches...
Assesing aBusiness ModelAttractiveness...
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
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
For ideaimplementation:all you need is…
mistakes? preventablecomplexity related intelligent
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•...
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
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 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).
“We need to go fromHigh Tech to High Touch” - Philip Kotler -
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
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
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