90 Shades of Innovation


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A set of gripping questions to uncover innovation potential.
Based on Business Model Canvas / Business Model Generation.

Published in: Business, Technology

90 Shades of Innovation

  1. 1. 90 Shades of Innovation Gripping questions to uncover innovation potential
  2. 2. Business Model Canvas Many entrepreneurs and corporate managers know the business model canvas1 or have worked with it. 1) Business Model Generation, A. Osterwalder
  3. 3. Business Model Canvas Using the canvas to visualize the current status quo of your business model is one thing. Using it to discover innovation potential is the other.
  4. 4. Business Model Canvas This set of questions helps to get your thinking in new directions and playing with the answers or triggering new questions.
  5. 5. So WHY innovate? PAIN GAIN • new market entrants • new market segments • outdated technologies • different solutions • new customer behavior • better value proposition • declining customer base • growing customer base • lowering bottom line • higher bottom line
  6. 6. So WHEN to innovate? • before gains < pains • stay ahead of current technology • get ahead of current customer behaviour • .... every single day
  7. 7. Frontstage Like in a theater, customers see what happens on stage. The frontstage of a business model covers the five building blocks which the customers experience directly.
  8. 8. Frontstage • Value Proposition • Customer Relationship • Channels • Customer Segments • Revenue Stream
  9. 9. Value Proposition • What do customers really want to get done? • Where is demand declining/increasing? • Does our value proposition serve special design needs? • Does our value proposition serve special price/cost needs? • Does our value proposition serve special convinience needs? • Does our value proposition serve special status needs? • Does our value proposition serve special performance needs? • Does our value proposition serve special customization needs? • Does our value proposition serve special accessability needs? • Does our value proposition serve special risk reduction needs?
  10. 10. Customer Relationship • How would a self-service option for • your customers would look like? • How would a full-service option for How costly are your Customer Relationship actions? • Are your customer relations your customers would look like? • integrated with your customers Are there customer communities routines? established/supported by you? • • more easily? Are your customer relations integrated with the rest of your • business model? • Are your customers involved in cocreation? How can customers interact with you What if you let your customers decide which relationship they want? • What if customers could interact with each other more easily?
  11. 11. Channels • Are your current channels the ones through which customers want to be reached? • Are your channels integrated with the rest of your business model? • Does your channel fulfill a customer need during their purchase experience? • Do your channels integrate with your customer routines? • How do your channels help to raise awareness for your value proposition(s)? • How do you help customers to evaluate your value proposition(s)? • How easy can your customers purchase your value proposition(s)? • How is your value proposition delivered to your customers? • How does your channel support aftersales support for your customers? • Do you channels function as a customer community meeting point?
  12. 12. Customer Segments • For whom are you creating value? • What are our current NONcustomer? • Do customer segments support/supplement each other? • Who are your most important • based on value proposition(s)? • Can/will customers move between segments ? Who are your most important NON- customers? • How do customer identify to which segment they belong? • customers? • Are your customer segments organized What if a customer segment gets "hijacked" by a competitor? • How many customer segments do make sense?
  13. 13. Revenue Stream • Are your customers paying for the • streams for different customer values they actually appreciate? • Are customers paying the way they like? • How many revenue streams do you have? • What if your main revenue stream runs dry? • What would your customers pay for when buying a subscription? Do you have different revenue segments? • What if you would give away your product/service for free? • What if we stopped manufacturing in order to build a plattform business? • How could we dramatically increase switching costs? • How much is your brand markup/deduction?
  14. 14. Backstage The backstage describes all things happening in the background that are not visible to the customer and necessary to deliver your value proposition.
  15. 15. Backstage • Key Resources • Key Activities • Key Partners • Cost Structure
  16. 16. Key Ressources • What Key Resources you have, are not • required for your Value Propositions? • Are there ressources you currently do not copyright protected? • What capabilities do your employees • Are there talents within your employees • • How could you license your key ressources? that could be of use for a new value proposition? What if your key employee(s) leave over night? have? • What if you would open your key resources to 3rd party companies? use? • Do you use terms/logos that are not • How can you make your key What if your most important key ressources easy transferable? ressources run dry over night? (geographically, personally)
  17. 17. Key Activities • What if you "sell" your key activies to others? • What if you outsource all your key • activities? How many employyes know how to handle more than 3 key activities? • Our Distribution Channels? • Customer Relationships? • Revenue streams? • What if your key activities were well made suitable to be sold as value documented? proposition? • How do you keep control over your key activities? • • How can your way of keeping control Which activities do not provide any value and can be eliminated?
  18. 18. Key Partners • • Who are our Key Partners? • Who are our key suppliers? • Which Key Resources are we acquiring from partners? • • which can be your customers, too? • • Do key partners provide data / information that can be useful for your customers? • Do your partners have ressources that could be of use for you? How can key partners become a distribution / sales channel? Which Key Activities do partners perform? Do your partners serve customers How can you act as a sales channel for your key partner? • How fast can a key partner be replaced by another?
  19. 19. Cost Structure • What costs could be turned into revenues? • What if your main cost factor doubles? • Which Key Activities are most expensive? • Which key activities are the least expensive? Could spending there more lead to a new Value Proposition? • What tasks that cost you, can be transferred to your customers and sold as value? • Which costs of quality can be reduced without being noticed? • Which costs can be optimized for a better cashflow? • Which costs can be eliminated? • How could customers prefinance your costs? • Which running costs can be turned into investment costs?
  20. 20. WHAT to do with the answers? • collect as much different answers as possible • build new business models • test them as soon as possible • short list according to ability to execute • don`t lose sight of customers job to be done
  21. 21. Get your PDF-Version: Send email to: 90shades@breakingbarriers.com http://www.breakingbarriers.com
  22. 22. About Alexander M. Schmid Founder / CEO, Breaking Barriers "Businesses should be easy to understand and operate.“ I support businesses, having customers choose their brand, because of easy to understand and well designed products, that remarkably satisfy their needs. http://www.linkedin.com/in/alexandermschmid
  23. 23. Contact: office.vienna@breakingbarriers.com breakingbarriers.com