Realizing Business Value Growth

Business Innovation Approach




Capgemini Consulting is the strategy
and transformation ...
The life cycle of innovations is represented in the Innovation Framework ...



  Innovation Management Framework gives a ...
Our Generic Business Model has a central position in our Innovation Offerings



                      Resources          ...
We use the Business Model Canvas to describe and assess the key drivers
within a Business Model
Business Model Canvas

   ...
We apply our Innovation Services on strategic, tactical, and operational level
within a firm as well as cross-firm within ...
Table of contents

Content


          Innovation Services
              I.    Challenging the innovation strategy
       ...
The innovation strategy is challenged using the outside world with its trends as
a staring point to create various scenari...
Our Innovation Portfolio method assesses the impact per innovation initiative
in terms of Business Model, Technology, and ...
With our Value Acceleration approach we improve an innovation initiative’s
value creation throughout it’s life cycle
III. ...
Business Model Innovations requires an integration, forward or backward, in
the Value Chain; therefore Business Models of ...
Koen Klokgieters
         Vice President Business Innovation
                  +31 6 511 23 259
          koen.klokgieters...
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Business Innovation Approach

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Sustainable approach for Business Innovation to create more business value

Published in: Business

Business Innovation Approach

  1. 1. Realizing Business Value Growth Business Innovation Approach Capgemini Consulting is the strategy and transformation consulting brand of Capgemini Group
  2. 2. The life cycle of innovations is represented in the Innovation Framework ... Innovation Management Framework gives a high-level overview of the innovation management building blocks Innovation Target & Scope Creativity Invention Commercialization Strategy Focus areas within the Definition of organization gate gate Innovation Strategy Topic 1 Idea Review of ideas / Idea utilization • Identify and generation investment opportunities Topic 2 pursue trends Rejected • Corporate • List of Proposed ideas positioning Topic 3 • Decide on ideas to be Future candidates reviewed in detail • Partner • Further review strategy • Prioritization & funding Commercialized Performance Rewarding measures Communication & Enablement ... And providing a shared view on Innovation Management to understand your innovation management
  3. 3. Our Generic Business Model has a central position in our Innovation Offerings Resources Offer Customer Cocreation Key Activities Relation Partner Network Key Resources Value Proposition Channels Segments Cost Structure PROFIT Revenu Streams Performance Source: Adapted from Alexander Osterwalder, Business Model Generation, a handbook for visionaries, game changers & challengers (working title, to be published August 2009) 22-09-2009
  4. 4. We use the Business Model Canvas to describe and assess the key drivers within a Business Model Business Model Canvas KEY KEY VALUE CUSTOMER CUSTOMER PARTNERS ACTIVITIES PROPOSITION RELATION SEGMENTS What key activities do What kind of relations you need to perform do your client expect and how easily can you and which kind do you What can partners do to do this? Which of you maintain? What are your leverage your business customer’s problems do customer’s needs, model (better, at lower you solve and which problems, desires, and cost)? KEY needs are satisfied? ambitions? RESOURCES CHANNELS What key resources Through which means does your business do your clients want to model require? be reached and which means do you utilize? COST REVENUE STRUCTURE STREAMS What is the cost structure of your business What value are your customers willing to model and is this in line with the core pay for and what is the preferred payment values of the business model? mechanism? 22-09-2009
  5. 5. We apply our Innovation Services on strategic, tactical, and operational level within a firm as well as cross-firm within the Value Chain Introduction Implications for Implications for Within Company suppliers clients & channels Strategical level Strategical level Strategical level Partnership I Client & channel requirements Challenging the innovation strategy requirements Tactical level Tactical level Tactical level II Innovation Portfolio Management & Client & channel Partner selection Business Model Impact selection Operational level Operational level Operational level Partnership III Innovation Project Client & channel management Value Acceleration management IV Business Model Innovation within the Value Chain 22-09-2009
  6. 6. Table of contents Content Innovation Services I. Challenging the innovation strategy II. Innovation Portfolio Management & Business Model Impact III. Innovation Project Value Acceleration IV. Business Model Innovation within the Value Chain 22-09-2009
  7. 7. The innovation strategy is challenged using the outside world with its trends as a staring point to create various scenarios I. Challenging the innovation strategy Scenarios Factors The use of various trends…. high Bѐta Epsilo • Mega trends n Alpha Delta • Consumer trends Gam ma • Technology trends Zѐta • Industry trends …sets the challenges to overcome based on Trend Impact impact & likelihood… local Economy Economy global • Position in Value Chains • Current Business Model • Attractiveness to potential customers …and determine the need for: Kapp Iota a • New applications Thѐta Ѐta • New products and services • New Business Models low 22-09-2009
  8. 8. Our Innovation Portfolio method assesses the impact per innovation initiative in terms of Business Model, Technology, and Strategic Contribution & Value II. Innovation Portfolio Management & Business Model Impact Based on the contribution to Business Drivers and Value Creation the initiatives that deliver most of the strategic objectives are highlighted • Input from corporate strategy I. Alignment with Business Drivers & Value Creation I. Alignment with Initiatives Alpha Growth Market Business Drivers Market Share Revenue stream Value Creation Business Case Contribution • Validation against strategic goals & objectives Beta business drivers Delta Gamma Does the initiative contribute to a growth of the total market volume? Epsilon Zeta Is it plausible to appropriate a Does the project generate new revenue streams? and value creation • Assessment of Business Case potential Eta percentage of the market growth that is in line with strategic targets? Theta Iota Kappa 19-6-2009 5 Business Model Canvas KEY VALUE CUSTOMER CUSTOMER PARTNERS KEY ACTIVITIES PROPOSITION RELATION SEGMENTS • Detailed Business Model Canvas per initiative What key activities do What kind of relations II. Business Model you need to perform do your client expect and how easily can you and which kind do you What can partners do to do this? Which of you maintain? What are your leverage your business customer’s problems do customer’s needs, model (better, at lower you solve and which problems, desires, and cost)? KEY needs are satisfied? ambitions? RESOURCES CHANNELS • Sharpening around (key) building blocks What key resources Through which means per initiative does your business do your clients want to model require? be reached and which means do you utilize? COST REVENUE STRUCTURE STREAMS What is the cost structure of your business What value are your customers willing to model and is this in line with the core pay for and what is the preferred payment values of the business model? mechanism? 17-6-2009 21 Plotting the changes in a 2x2 matrix provides insight and direction for balancing the portfolio in levels of innovativeness • Assessment of degree of change on Business Model & Technology Impact on Business Model & Technology III. Impact on Current Innovation Portfolio Target Innovation Portfolio high high • Validation against previous experiences Alpha Gamma Alpha Gamma business model & Iota Iota Radical Business Model Epsilon Epsilon Technological Technological Beta Beta Change Change Delta Delta • Estimation of capability presence Zèta Zèta technology Thèta Incremental Business Model Thèta low low low high low high Business Model Business Model Change Change 17-6-2009 9 The portfolio overview plots the initiatives in terms of predicted attractiveness, ability to execute and impact • Based on previous phases distinct between various initiatives based Build the portfolio Attributes Innovation Candidates Portfolio The following attributes can be used to identify candidate IV. Build the innovations: high  Expected market growth. Alpha Bèta Gamma  Expected margin improvement. on the portfolio logic Attractiveness Iota Delta Epsilon Kappa Thèta Attractiveness  Technological change. portfolio medium Ability to execute  Business Model change.  Required investments. Zèta • Assess attractiveness, ability to execute, and impact  Expected revenues. Impact Bubble size indicates expected revenues low (Impact) low medium high Ability to execute 17-6-2009 10 After the innovation candidate portfolio has been identified, analyzing and framing it allows for ranking and prioritization of the candidates • Ranking & Prioritization based on portfolio logic Conclusions & Recommentations Innovation Portfolio Analysis Ranking V. Recommendations  Rank and prioritize the identified innovation opportunities with regard to: high  Expected impact in terms of revenue. • Based on ranking determine: out of focus, opportunities, mature Alpha Bèta Gamma  Attractiveness of the market in terms of future Iota growth and margin improvements. Delta Opportunities Priorities  Ability to actually execute the innovation Epsilon opportunity. Kappa Thèta Attractiveness & Conclusions medium Zèta  Mapping the innovation opportunities in a 2x2-portfolio matrix allows for identifying:  Priorities: top candidates for resource allocation. Currently out  Opportunities: innovation candidates with offerings, and priorities Mature Offerings attractive future market developments or of Focus specific strategic value. Bubble size indicates expected revenues  Mature Offerings: innovations for which low (Impact) capabilities to execute them exist or can be easily sourced / developed. low medium high  Currently out of Focus: not interesting to focus Ability to execute on at this point in time. 17-6-2009 11 22-09-2009
  9. 9. With our Value Acceleration approach we improve an innovation initiative’s value creation throughout it’s life cycle III. Innovation Project Value Acceleration Results Invent Engage Exploit & Refresh I Reduce the required investment • Identify synergies with other Business Models • Identify possibilities for partnerships Break-even Point III II Reduce the time-to-market • Time the market entry to ideal moment • Speed up by creating synergies with other Business Models I II III Increase value creation • Create value ramp-up after launch • Lengthen value generation time based on the Business Model Evolution Roadmap Enable & Manage 22-09-2009
  10. 10. Business Model Innovations requires an integration, forward or backward, in the Value Chain; therefore Business Models of value Chain Partners need alignment IV. Business Model Innovation within the Value Chain KEY KEY VALUE CUSTOMER CUSTOMER KEY KEY VALUE CUSTOMER CUSTOMER KEY KEY VALUE CUSTOMER CUSTOMER PARTNERS ACTIVITIES PROPOSITION RELATION SEGMENTS PARTNERS ACTIVITIES PROPOSITION RELATION SEGMENTS PARTNERS ACTIVITIES PROPOSITION RELATION SEGMENTS KEY KEY KEY RESOURCES CHANNELS RESOURCES CHANNELS RESOURCES CHANNELS COST REVENUE COST REVENUE COST REVENUE STRUCTURE STREAMS STRUCTURE STREAMS STRUCTURE STREAMS Backward Business Model Integration Forward Business Model Integration Establish fluid partnerships Build one-on-one customer experience Attracting required capabilities Continuous interaction with customer to fulfill needs Sourcing for activities & resources Utilizing new channels to connect to clients Business Model Innovation within the Value Chain creates a flexible network structure to set a new customer experience and grow business value 22-09-2009
  11. 11. Koen Klokgieters Vice President Business Innovation +31 6 511 23 259 koen.klokgieters@capgemini.com Koenklokgieters-english.blogspot.com Capgemini Consulting is the strategy and transformation consulting brand of Capgemini Group 22-09-2009

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