Biz models-101-mobilization

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Getting started with business model innovation

Getting started with business model innovation

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  • 1. Business models 101 Getting mobilized© Arnold Wytenburg & others 1
  • 2. • A biz model describes the rationale of how an organization creates, delivers, and captures value© Arnold Wytenburg & others 2
  • 3. • A biz model: – Must be simple, relevant, intuitive, and inherently understandable – Mustn’t oversimplify the complexities of the business© Arnold Wytenburg & others 3
  • 4. • A biz model must address all four principal domains of enterprise: infrastructure offer market financial© Arnold Wytenburg & others 4
  • 5. • A well-defined biz model can be: – Managed – Structured into processes – Used to leverage the creative potential of an entire organization© Arnold Wytenburg & others 5
  • 6. The basic “biz model canvas” key customer activities relationships key value customer partnerships proposition segments key distribution resources channels cost structure revenue streams© Arnold Wytenburg & others w/thx to Alex Osterwalder & Yves Pigneur 6
  • 7. • Generate vs. innovate? – Is this a “green fields” scenario? – Are you starting with an entrenched organization or existing biz model?© Arnold Wytenburg & others 7
  • 8. • Generate a new model if your goal is to: – Satisfy existing but unanswered market needs – Bring brand new technologies, products, or services to market – Improve, disrupt, or transform an existing market with a better business model – Create an entirely new market© Arnold Wytenburg & others 8
  • 9. • Innovate an existing model if you need to: – Respond to a crisis – Adjust, improve, or defend an existing biz model to adapt to a changing environment – Bring new technologies, products, or services to an existing market – Prepare for the future© Arnold Wytenburg & others 9
  • 10. • Main challenges for creators of new biz models: – Finding the right model – Testing the model – Gaining market acceptance – Responding and adapting to market feedback – Managing uncertainty© Arnold Wytenburg & others 10
  • 11. • Main challenges for innovators of existing biz models: – Developing an appetite for change – Aligning old and new models – Managing vested interests – Focusing on the long term© Arnold Wytenburg & others 11
  • 12. • Creating and innovating biz models: – Can be messy and unpredictable – Requires the ability to cope with uncertainty and ambiguity – Demands patience and flexibility – Calls for a “design attitude” instead of a “decision attitude”© Arnold Wytenburg & others 12
  • 13. • A ‘decision attitude’: – Assumes designs are easy, but choosing among them is hard – Focuses on ‘doing things right’ by limiting the options as early as possible – Is linear, following a predictable ‘analysis, decision-making, optimization’ trajectory – Aims to reduce uncertainty, results in increased complexity© Arnold Wytenburg & others 13
  • 14. • In contrast, a ‘design attitude’: – Assumes design is hard, but deciding which one to select is trivial if design is done well – Focuses on ‘doing the right things’ by exploring and prototyping multiple possibilities – Is non-linear, going back and forth between market research, analysis, prototyping, and idea generation – Aims to reduce ambiguity, results in increased clarity© Arnold Wytenburg & others 14
  • 15. • How it works: Mobilize… Understand... Design... Implement... Manage...© Arnold Wytenburg & others w/thx to Alex Osterwalder, Yves Pigneur , and Damien Newman 15
  • 16. Mobilization• Mobilizing is about: – Creating awareness of the need for business innovation – Establishing the motivation to change – Defining a common language and framework for describing, designing, analyzing, and discussing the business© Arnold Wytenburg & others 16
  • 17. Mobilization: key activities• Framing the project: – Project rationale – Scope of impact – Key objectives• Testing preliminary ideas• Planning the project – Initial focus is on mobilization, understanding, and design – Deal with implementation and management later• Assembling the team – Knowledgeable – Capable – Motivated – Committed© Arnold Wytenburg & others 17
  • 18. Mobilization: success factors• Appropriate people, experience, and knowledge© Arnold Wytenburg & others 18
  • 19. Mobilization: risk areas• Overestimating the value of your initial idea(s)© Arnold Wytenburg & others 19