Business Model  Innovation…                Alar Kolk   President, European Innovation Academy
Grow Fast or Die
ARE YOUSOLVING THE RIGHTPROBLEM?Most firms are not and that undermines theirinnovation efforts…Indeed, when developing new...
Traditional Value Chain vs. Modern Value Chain
Who?Which new customer segments will emerge inthe next 5 years?YUPPIES            Youg Urban ProfessionalsYUFFIES         ...
Customer & Idea Discovery
Customer Discovery, Phase One:State Your Business Model
Customer Discovery, Phase Two:"Get Out of the Building" to Test theProblem: "Do Customers Care?"Get your team "out of the ...
Customer Discovery, Phase Three:"Get out of the Building" and Test theProduct/Service Solution
Value          Valueproposition?   proposition?
What are value propositons     for the products?
Business Model        Business Model Determines Value            of the Product or Service.          Business Model Innova...
Focus in Business Model    A business model is a conceptual tool that contains a big set of elements and their     relatio...
4 areas
HOW?        WHAT?        WHO?       $?           €?
9   building    blocks
CLIENT                    CUSTOMER                                            CUSTOMER                                    ...
how much did the coffee pricechange for Swiss householdsover the last couple of years?
6-8 xmore
Nespresso changed thebusiness model for coffee
The business model system   PARTNERSHIP            CAPABILITIES                OFFER – VALUE                  CUSTOMER    ...
RESULTS
35% growth p.a. for the last   7 consecutive years
fastest-growing business in     the Nestlé group
Nespresso has a 26.6 %global share in Espresso     machine sales
Alar Kolk EIA Business Model
Alar Kolk EIA Business Model
Alar Kolk EIA Business Model
Alar Kolk EIA Business Model
Alar Kolk EIA Business Model
Alar Kolk EIA Business Model
Alar Kolk EIA Business Model
Alar Kolk EIA Business Model
Alar Kolk EIA Business Model
Alar Kolk EIA Business Model
Alar Kolk EIA Business Model
Alar Kolk EIA Business Model
Alar Kolk EIA Business Model
Alar Kolk EIA Business Model
Alar Kolk EIA Business Model
Alar Kolk EIA Business Model
Alar Kolk EIA Business Model
Alar Kolk EIA Business Model
Alar Kolk EIA Business Model
Alar Kolk EIA Business Model
Alar Kolk EIA Business Model
Alar Kolk EIA Business Model
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Alar Kolk EIA Business Model

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  • Nespresso
  • http://www.flickr.com/photos/joeshlabotnik/2294656527/ Joe Shlabotnik
  • http://www.flickr.com/photos/timtom/2478359433/ Thomas Guignard
  • Alar Kolk EIA Business Model

    1. 1. Business Model Innovation… Alar Kolk President, European Innovation Academy
    2. 2. Grow Fast or Die
    3. 3. ARE YOUSOLVING THE RIGHTPROBLEM?Most firms are not and that undermines theirinnovation efforts…Indeed, when developing new products, processes, or even businesses, mostcompanies aren’t sufficiently rigorous in defining the problems they’re attemptingto solve and articulating why those issues are important. Without that rigor,organizations miss opportunities, waste resources, and end up pursuing innovationinitiatives that aren’t aligned with their strategies.“If I were given one hour to save the planet, I wouldspend 59 minutes defining the problem and oneminute resolving it,” Albert Einstein said.
    4. 4. Traditional Value Chain vs. Modern Value Chain
    5. 5. Who?Which new customer segments will emerge inthe next 5 years?YUPPIES Youg Urban ProfessionalsYUFFIES Young Urban FailuresMOBY/DOBY Mom/Dad Older – Baby YoungerWOOFS Well Off Older FolksSKIPPIES School Kids with Income + Purchaing PowerSANDWICHERS Adults caught between caring their children and their older parents
    6. 6. Customer & Idea Discovery
    7. 7. Customer Discovery, Phase One:State Your Business Model
    8. 8. Customer Discovery, Phase Two:"Get Out of the Building" to Test theProblem: "Do Customers Care?"Get your team "out of the building" to test the problem andto answer three key questions:•Do we really understand the customers problem?•Do enough people really care enough about the problemfor this to become a huge business?•And will they care enough to tell their friends?
    9. 9. Customer Discovery, Phase Three:"Get out of the Building" and Test theProduct/Service Solution
    10. 10. Value Valueproposition? proposition?
    11. 11. What are value propositons for the products?
    12. 12. Business Model Business Model Determines Value of the Product or Service. Business Model Innovation Transforms Technology into Money Business Model Functions: 1.Value Creation 2.Value Capture
    13. 13. Focus in Business Model A business model is a conceptual tool that contains a big set of elements and their relationships and allows expressing the business logic of a specific firm. It is adescription of the value a company offers to one or several segments of customers and of the architecture of the firm and its network of partners for creating, marketing, and delivering this value and relationship capital, to generate profitable and sustainable revenue streams. Osterwalder, Pigneur and Tucci (2005)
    14. 14. 4 areas
    15. 15. HOW? WHAT? WHO? $? €?
    16. 16. 9 building blocks
    17. 17. CLIENT CUSTOMER CUSTOMER CLIENT CLIENT CAPABILITIES CLIENT CAPABILITIES CLIENT CLIENT CLIENT CLIENT SEGMENTS RELATIONSHIPS RELATIONSHIPS SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTSPARTNER PARTNER CLIENT CLIENT CUSTOMER CUSTOMER CLIENT CLIENT CLIENT OFFER CLIENT OFFER CLIENT CUSTOMER CLIENT CUSTOMER CLIENT HOW? CLIENTNETWORKNETWORKSEGMENTSSEGMENTS SEGMENTS SEGMENTS WHAT? CLIENT SEGMENTS SEGMENTS SEGMENTS WHO? CLIENT SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS DISTRIBUTION DISTRIBUTION CLIENT CLIENT KEY RESOURCES CLIENT CLIENT CLIENT CLIENT KEY RESOURCES CLIENT CLIENT CHANNELS CHANNELS SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS REVENUE REVENUE $? CLIENT CLIENT COST STRUCTURE COST STRUCTURE CLIENT CLIENT SEGMENTS €? CLIENT CLIENT CLIENT CLIENT FLOWS FLOWS SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS
    18. 18. how much did the coffee pricechange for Swiss householdsover the last couple of years?
    19. 19. 6-8 xmore
    20. 20. Nespresso changed thebusiness model for coffee
    21. 21. The business model system PARTNERSHIP CAPABILITIES OFFER – VALUE CUSTOMER TARGETED NETWORK PROPOSITION RELATIONSHIPS CUSTOMER marketing offee SEGMENTS Nespresso c production machines club distribut Nespresso ion householdsmachine manufacturer KEY DISTRIBUTION RESOURCES CHANNELS patents espresso Nespres es so faciliti capsules stores business production retail outeets tl c pr c en r Nesall esso.com distribution channels COST STRUCTURE REVENUE MODEL retail logis machine marketing production tics capsule sales sales
    22. 22. RESULTS
    23. 23. 35% growth p.a. for the last 7 consecutive years
    24. 24. fastest-growing business in the Nestlé group
    25. 25. Nespresso has a 26.6 %global share in Espresso machine sales
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