Why should your business exist

The core question of any business: Why should your business exist? so- The philo - es phical qu ll tion for a es buisness

Do you know this man? Hans Rausing = Inventor of theTetra Pack Systems Dr. Patrick Stähler | 2

He could have sold hispackaging machines, but…

But he sold packaged services Tetra Pack is not a product innovation but an implementatio n of an innovative business model!

„Which innovation expanded the global addressable market for mobile communication the most?*“ *After the invention of mobile telephony itself

Which innovation made this possible?!Dr. Patrick Stähler |

A smal l chang opened e in bill new ma ing Africa, rkets in Asia, L Americ atin a, Yout hs, etc ..!Prepaid

To develop a business model, is To Do the right things And Not to do things right

„What is a business model? “

Are you aware o f your DN A?!The business model is theDNA of your business

The business model givesmeaning to your employeesand customers

Technology or a new produt does not create value.It is the business model product/technology X value creates enables business model deﬁnes business strategy

!Beyond product & technology innovation Your business model isdecisive for value creation not a new technology

4 key questions for a successful business: What excites How do we How do we Who is on our our create value earn money? team? customers for our What values customers? do we pursue? Value Proposition Value Architecture Revenue Model Team & Values The job of the entre pre- neur

„ What industry are we in? Who are our competitors? “

„ In which industry are we in? “

„That was the job the customer “ wanted to do. Dr. Patrick Stähler |

Value Proposition Customers Who are our customers? What job do we solve for our customers? Customer Benefit What benefit do we create for our customers? What benefit do we create for our partners?

Value ArchitectureO er Distribution & CommunicationWhat is our o er? Channels How do we reach our customers? How do we communicate with our customers?Value ChainWhat are our value creating steps?What is our value chain?Core Capabilities PartnerWhat are the core capabilities Which partners do we need?we need?

Revenue Model Cost Structure Revenue Sources Cost structure is deﬁned by the With what do we earn money? value architecture.

Team & Values Team Values Who is on our team? What values do we pursue? What competencies do we have How do we interact with each on the team? other and the customers?

Questions for successful Business Model Innovation Value Architecture Value Proposition O er Distribution & Communication Customers What is our o er? Channels Who are our customers? How do we reach our customers? What job do we solve for our How do we communicate with customers? our customers? Value Chain Customer Benefit What are our value creating steps? What benefit do we create for our What is our value chain? customers? What benefit do we create for our partners? Core Capabilities Partner What are the core capabilities Which partners do we need? we need?Revenue Model Cost Structure Revenue Sources Cost structure is defined by the With what do we earn money? value architecture.Team & Values Team Values Who is on our team? What values do we pursue? What competencies do we have How do we interact with each other on the team? and the customers?

Creating Business model innovations is a creative andanalytical process at the same time. There is a reasonwhy god gave us two brain hemispheres

1 Customer Insight   Observe your customers What job is not yet or badly solved?   How does the Customer Experience Cycle look like?   On what customer insights is your idea based?   validate customer insight

2 Understand   understand the current solutions and their strength & weakness   understand how the potential customer thinks and decides   understand the market & market mechanism

3 Ideate Develop as many ideas as possible in the area of   customers/ value proposition   value architecture   revenue model

4 Design   decide for three or four options   design the business models for the options   check the Geschäftsmodell: Wertschöpfungsarchitektur Value Proposition interdependencies in the Angebot Vertrieb & Kommunikation Kunden business models Produktion Nutzen   work on the uniqueness Kernfähigkeiten Partner (positioning)   optimize the building Ertragsmodell Kostenstruktur Ertragsquellen blocks Team & Werte Team Werte Created with the friendly support of Wolfsburg AG | Designed by Gottschalk+Ash Int’l

5 Decide & Prototype   decide for the best model to go for   build prototype   test prototype with customers   write business case   decide again or work on diﬀerent option

6 Build & Learn   execute business model   learn continuously from customer feedback and control KPIs   adjust and reﬁne continuously the business model

1 2 3 Customer Insight Understand Ideate   Observe your customers   understand the current Develop as many ideas as What job is not yet or solutions and their possible in the area of badly solved? strength & weakness   customers/ value   How does the Customer   understand how the proposition Experience Cycle look potential customer   value architecture like? thinks and decides   revenue model   On what customer insights   understand the market & is your idea based? market mechanism   validate customer insight4 5 6 Design Decide & Prototype Build & Learn   decide for three or four   decide for the best   execute business model options model to go for   learn continuously from   design the business   build prototype customer feedback and models for the options   test prototype with control KPIs   check the customers   adjust and reﬁne interdependencies in the   write business case continuously the business models   decide again or work on business model   work on the uniqueness diﬀerent option (positioning)   optimize the building blocks

What is a good business model? trend differenti focus ation build on strengths

It’s about ﬁnding the righttrend to surf!

It is about differentiation

„Business model innovation is about being DIFFERENT!“

NO, REALLY DIFFERENT!

Dr. Patrick Stähler | 42

DOING not learning to do, is the essence of entrepreneurship Guy Kawasaki, The Art of the Start 2004, p. xi

„Scary to be this nail. Where will the hammer hit next time?“

More Information on http://blog.business-model-innovation.comDr. oec. Patrick Stähler fluidminds GmbH Seefeldstrasse 5a CH-8008 Zürich Patrick.Staehler@fluidminds.ch www.fluidminds.ch blog.business-model-innovation.com

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Why should your business exist

by Patrick Stähler

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