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Innovation Series™New Growth throughBusiness ModelInnovation.                      www.sniukas.com
Why   What   How
Why  is Business ModelInnovation important?
History of the concept.Source: Bernd W. Wirtz: Business Model Management: Design – Instruments – Success Factors. Gabler 2...
Source: Christoph Zott, Raphael Amit and Lorenzo Massa: The Business Model: Recent Developments and Future Research Journa...
“Get the business model wrong,and there is almost no chance ofsuccess...”                                     Prof. David ...
“Business model innovation mattersand it is a top priority of CEOs.”
Source: IBM Global CEO Study 2006
Source: IBM Global CEO Study 2006
Source: IBM Global CEO Study 2006
„Innovation is front and center on thecorporate agenda, according to aglobal survey. Executives are addingmore breakthroug...
Source: Businessweek / BCG Innovation Survey 2009
Source: Bernd W. Wirtz: Business Model Management: Design – Instruments – Success Factors. Gabler 2011
Stagnating or                                                                                            declining        ...
Source: Moore, GA 2004, Darwin and the Demon: Innovating Within Established Enterprises. Harvard Business Review, 82
Why is Business Model Innovation important?    (1) Major element of differentiation and        sustainable competitive adv...
Business Model Innovation as a StrategicChoice. Traditional Strategic Choices.                                     New    ...
Business Model Innovation as a Strategic    Choice. The Strategy Cube.                                                 New...
Business Model Innovation as a Strategic    Choice. The Strategy Cube.                                                    ...
Whatis Business Model   Innovation?
© Marc Sniukas - Doujak Corporate Development
Business Model Innovation…    …is the invention of new ways of doing business,    with the aim to provide new and/or incre...
Customer Value Proposition                   Ecosystem Value Proposition                       What is your               ...
Customer Value Proposition           Who is your customer?      What is his need?   What is the solution                  ...
Ecosystem Value Proposition           Who are your partners?   What is their need?     What is your offer?                ...
Firm Value Proposition                    Strategic     Organizational               Financial           • Competitive    ...
Customer Value Proposition                   Ecosystem Value Proposition              Your business model           Enable...
Customer Value Proposition                   Ecosystem Value Proposition              How do you organize to            En...
Customer Value Proposition                    Ecosystem Value Proposition                          Which activities and   ...
Howto innovate your business         model?
“New business model innovation continues to    represent a significant challenge for largeincumbent firms despite their ac...
Major challenges and barriers.(1) Business Model Innovation Challenges     Different type of innovation     High risk and ...
The Business Model Innovation Loop.                                                          Ideation                     ...
The Business Model Innovation Loop.                                                        Define your Goal               ...
The Business Model Innovation Loop.                                                      Find Facts & Inspiration         ...
The Business Model Innovation Loop.               Seek Understanding                                       4    • Make sen...
The Business Model Innovation Loop.         Generate and Refine Ideas                                          Ideation   ...
25 strategies for reinventing your Business    Model.    WORKS ACROSS THE BUSINESS                                  VALUE ...
The Business Model Innovation Loop.                                            Test your Ideas                            ...
The Business Model Innovation Loop.                    Learn & Adapt                                        4    • What ar...
The Business Model Innovation Loop.                   Go Large Scale                                        4    • Plan fo...
Want more?
www.sniukas.com
“The difficulty lies not inthe new ideas,...…but in escaping from the               old ones.”                     John Ma...
Get in touch!           Marc Sniukas          marc@sniukas.com          www.sniukas.comThank you for your attention!
This Is Business Model Innovation for New Growth
This Is Business Model Innovation for New Growth
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This Is Business Model Innovation for New Growth

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Slides from the CEDIM Innovation Series presentation on November 28 2012. Include a new business model framework, the business model as strategy cube and a design thinking oriented approach to business model innovation. @cedim

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Transcript of "This Is Business Model Innovation for New Growth"

  1. 1. Innovation Series™New Growth throughBusiness ModelInnovation. www.sniukas.com
  2. 2. Why What How
  3. 3. Why is Business ModelInnovation important?
  4. 4. History of the concept.Source: Bernd W. Wirtz: Business Model Management: Design – Instruments – Success Factors. Gabler 2011.
  5. 5. Source: Christoph Zott, Raphael Amit and Lorenzo Massa: The Business Model: Recent Developments and Future Research Journal of Management 2011 37:
  6. 6. “Get the business model wrong,and there is almost no chance ofsuccess...” Prof. David Teece University of California, Berkley.
  7. 7. “Business model innovation mattersand it is a top priority of CEOs.”
  8. 8. Source: IBM Global CEO Study 2006
  9. 9. Source: IBM Global CEO Study 2006
  10. 10. Source: IBM Global CEO Study 2006
  11. 11. „Innovation is front and center on thecorporate agenda, according to aglobal survey. Executives are addingmore breakthrough innovations andbusiness model changes to theirportfolio to fuel the growth engine.“ Business Week, November 16, 2009
  12. 12. Source: Businessweek / BCG Innovation Survey 2009
  13. 13. Source: Bernd W. Wirtz: Business Model Management: Design – Instruments – Success Factors. Gabler 2011
  14. 14. Stagnating or declining revenuesSource: Moore, GA 2004, Darwin and the Demon: Innovating Within Established Enterprises. Harvard Business Review, 82
  15. 15. Source: Moore, GA 2004, Darwin and the Demon: Innovating Within Established Enterprises. Harvard Business Review, 82
  16. 16. Why is Business Model Innovation important? (1) Major element of differentiation and sustainable competitive advantage. (2) Fundamental to performance. (3) Means to adapt to the rapidly changing environment and seize opportunities. (4) Key to the commercialization of new technologies.Source: Sniukas (2012).
  17. 17. Business Model Innovation as a StrategicChoice. Traditional Strategic Choices. New Products Existing Markets
  18. 18. Business Model Innovation as a Strategic Choice. The Strategy Cube. New Products Services New Existing Business Models Existing Markets Customer SegmentsSource: Sniukas (2012).
  19. 19. Business Model Innovation as a Strategic Choice. The Strategy Cube. New Products Services Adjacent New Existing Business Models Existing Markets Customer SegmentsSource: Sniukas (2012).
  20. 20. Whatis Business Model Innovation?
  21. 21. © Marc Sniukas - Doujak Corporate Development
  22. 22. Business Model Innovation… …is the invention of new ways of doing business, with the aim to provide new and/or increased value for the customers, the company itself and its stakeholders.Source: Sniukas (2012).
  23. 23. Customer Value Proposition Ecosystem Value Proposition What is your value proposition? Firm Value PropositionSource: Sniukas (2012).
  24. 24. Customer Value Proposition Who is your customer? What is his need? What is the solution you offer? Offering Customer Segment Need Product + Service + Business ModelSource: Sniukas (2012).
  25. 25. Ecosystem Value Proposition Who are your partners? What is their need? What is your offer? Stakeholders Needs OfferingSource: Sniukas (2012).
  26. 26. Firm Value Proposition Strategic Organizational Financial • Competitive • Efficiencies • Revenues streams Advantage • Use of assets • Cost structure • Innovation • … • Working capital • Lock In • ... • Image • …Source: Sniukas (2012).
  27. 27. Customer Value Proposition Ecosystem Value Proposition Your business model Enables this value creation. Firm Value PropositionSource: Sniukas (2012).
  28. 28. Customer Value Proposition Ecosystem Value Proposition How do you organize to Enable this value creation? Firm Value PropositionSource: Sniukas (2012).
  29. 29. Customer Value Proposition Ecosystem Value Proposition Which activities and Who provides processes need to be these? performed? Which assets and How do you govern capabilities are the operations? necessary? Firm Value PropositionSource: Sniukas (2012).
  30. 30. Howto innovate your business model?
  31. 31. “New business model innovation continues to represent a significant challenge for largeincumbent firms despite their access to resources, market knowledge, and key technologies.” (Koen et al. 2010 50)
  32. 32. Major challenges and barriers.(1) Business Model Innovation Challenges Different type of innovation High risk and uncertainty(2) Organizational Challenges Lack of capabilities New organization required: Yes/No?(3) Individual Challenges Mental models/cognitive maps Change in behavior
  33. 33. The Business Model Innovation Loop. Ideation 4 Experimentation 5 3 Interpretation 7 6 Launch 2 Evolution Discovery 1 StartSource: Sniukas (2012).
  34. 34. The Business Model Innovation Loop. Define your Goal 4 • What are your objectives? • Why are you embarking on this journey? 5 3 • What is the problem you have to solve? • Assess your current growth initiatives. 7 • Create awareness for the 6 need for Business Model Innovation. 2 • Establish the team. • Develop a common 1 understanding of the purpose, the concepts used. StartSource: Sniukas (2012).
  35. 35. The Business Model Innovation Loop. Find Facts & Inspiration 4 • Who are your customers? • Why are they buying? • Who are Non-Customers? 5 3 • Why are they not buying? • Who are your competitors? • What is the current offering? • What are the dominant 7 business models? • 6 What is your current business model? SWOT? 2 • Which trends are impacting Discovery your industry? 1 • What is your company really good at? • What assets could you use?Source: Sniukas (2012).
  36. 36. The Business Model Innovation Loop. Seek Understanding 4 • Make sense of the data. • Find opportunities for new growth and business model 5 innovation. 3 Interpretation • What is the customers’ job-to- be-done (really)? • Which are the barriers to 7 consumption: Affordability, access, skills, time,…? 6 • Develop assumptions of what 2 is really going on. • Which opportunities do you see? 1Source: Sniukas (2012).
  37. 37. The Business Model Innovation Loop. Generate and Refine Ideas Ideation 4 • How do you want to seize the opportunities? • How can you overcome the 5 barriers to consumption? 3 • Brainstorming • Concept development • Document your assumptions 7 on why you think a particular idea is a good solution. 6 2 1Source: Sniukas (2012).
  38. 38. 25 strategies for reinventing your Business Model. WORKS ACROSS THE BUSINESS VALUE PROPOSITION #10 Offer complementary products and services #1 Challenge industry assumptions #11 Offer solutions and experiences #2 Look at completely different industries #12 Offer bundles #13 Switch your appeal: functional versus emotional #14 Focus on the job to be done CUSTOMERS #14 Selectively eliminate, reduce, raise and create #3 Target non-customers #15 Look at subsitutes #4 Target less profitable customers #16 Expand the use of your assets and capabilities #5 Target the least satisfied customers #18 Look at the customer experience #6 Target the chain of buyers #7 Segment according to commonalities HOW YOU DO BUSINESS #8 Segment according to circumstances #19 Reinvent the customer interface (channels) #9 Desegment the customer based #20 Reinvent your customer relationships #21 Invent new revenue streams #22 Price differently #23 Reinvent you cost base #24 Re-assess your key activities #25 Collaborate with suppliers, partners, the network and ecosystemSource: Sniukas (2010).
  39. 39. The Business Model Innovation Loop. Test your Ideas 4 • Make something real • Test assumptions discussing Experimentation 5 with your customers 3 • Test assumptions with strategic experiments • Get feedback • Create knowledge about the 7 potential of your ideas • 6 Learn what works and what does not 2 1Source: Sniukas (2012).
  40. 40. The Business Model Innovation Loop. Learn & Adapt 4 • What are the insights gained from experimentation? • Which of your assumptions 5 are correct, which not? 3 • How do you need to adapt your business model? 7 6 2 Evolution 1Source: Sniukas (2012).
  41. 41. The Business Model Innovation Loop. Go Large Scale 4 • Plan for action • Prepare the organization and the market for the launch 5 • Organizational Transformation: 3 Structures, processes, systems, skills, assets,… • Training 7 • Marketing • Financing 6 Launch • Scaling up 2 1Source: Sniukas (2012).
  42. 42. Want more?
  43. 43. www.sniukas.com
  44. 44. “The difficulty lies not inthe new ideas,...…but in escaping from the old ones.” John Maynard Keynes
  45. 45. Get in touch! Marc Sniukas marc@sniukas.com www.sniukas.comThank you for your attention!
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