Disruptive Business Model

ptive disru odel ness m busi ourse prepared ac er alex osterwald by r nd yves pigneu a spired presentation in lds by Garr Reyno

e-business rvice design se storytelling scenario & sk analysis ta rototyping p y & usability ervice qualit s ness process ation busi int & visualiz bluepr oductivity service pr e compliance servic ss model busine del design business mo siness model isruptive bu d ‣

CUSTOMER CLIENT CLIENT KEY ACTIVITIES CLIENT CLIENT RELATIONSHIPS SEGMENTS SEGMENTS SEGMENTS SEGMENTS PARTNER CUSTOMER CLIENT CLIENT CLIENT OFFER CUSTOMER CLIENT CLIENT CLIENT HOW? WHAT? WHO? NETWORK SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS DISTRIBUTION CLIENT CLIENT KEY RESOURCES CLIENT CHANNELS CLIENT SEGMENTS SEGMENTS SEGMENTS SEGMENTS REVENUE $? €? CLIENT CLIENT COST STRUCTURE CLIENT CLIENT FLOWS SEGMENTS SEGMENTS SEGMENTS SEGMENTS

how do you change a business  model and innovate?

re‐inven7ng the wheel ???

EVOLUTION

what if ?

ARED PREP BE http://www.flickr.com/photos/thefamilymorris/sets/72157603383415256/

RED ? REPA P http://www.flickr.com/photos/thefamilymorris/sets/72157603383415256/

ner’s desig the it ... toolk

ing ... totyp pro ... ng ati ul sim

business model evolution

“ prototyping let’s you fail ” early to succeed sooner. ideo.com cals.arizona.edu/futures/

design evaluate

3 steps of business model design !\" #\" %\" $\" !! \"#$%&'(#)#*'$+,-) !! 2$$#$$) !! (&2',$30&/)0,) !! 3.&,),#5)/0 (.$',#$$)/0\"#1) $3&#,-34$)2,\") '/7&08#/#,3$)9) ',30)2)7&0:#% 5#26,#$$#$) 0770&3.,'+#$)) &02\"/27)

? question 2 How many blocks in the business model canvas? 1.     3 2.     6 3.     9 he press 1 on t Turningpoint if yes

ideate, prototype, iterate, decide CLIENT CLIENT CLIENT KEY RESOURCES CLIENT CLIENT RELATIONSHIPS SEGMENTS SEGMENTS SEGMENTS SEGMENTS CLIENT CLIENT CLIENT CLIENT OFFER PARTNER NETWORK CLIENTS CLIENT CLIENT CLIENT HOW? WHAT? WHO? SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS SEGMENTS ACQUISITION  CLIENT CLIENT CLIENT KEY ACTIVITIES CLIENT CHANNELS SEGMENTS SEGMENTS SEGMENTS SEGMENTS REVENUE $? €? CLIENT CLIENT COST STRUCTURE CLIENT CLIENT FLOWS SEGMENTS SEGMENTS SEGMENTS SEGMENTS

the business model  phenomena requires  new analy7cal tools ^ ovation for inn

ent ronm envi nning sca

3 steps of business model design !\" #\" %\" $\" ASSESS !! \"#$%&'(#)#*'$+,-) !! 2$$#$$) !! (&2',$30&/)0,) !! 3.&,),#5)/0 (.$',#$$)/0\"#1) $3&#,-34$)2,\") '/7&08#/#,3$)9) ',30)2)7&0:#% 5#26,#$$#$) 0770&3.,'+#$)) &02\"/27)

nning nt sca e ironm env

disruption enablement disruption efficiency market share new products TECHNOLOGICAL needs COMPETITIVE CHANGE new FORCES markets CUSTOMER DEMAND LEGAL ENVIRONMENT SOCIAL ENVIRONMENT intellectual property stakeholders WTO environmental values antitrust

environment is difﬁcult to assess ...

... and its evolution more difﬁcult

5 forces

ssure nt pre me nviron e

^ competitive forces according Po rter threats substitute products bargaining power bargaining power competitors customers suppliers new entrants threats

logy chno te ight ores f

iction pred

Prediction ... “ shortcomings to be seriously considered This 'telephone' has too many as a means of communication. The device ” is inherently of no value to us. West Union internal memo, 1876

Prediction ... “ this country and walked with the best I have travelled the length and breadth of people, and I can assure you that data processing is a fad that won't last out the ” year. The editor of management books at Prentice-Hall, 1957

Prediction ... “ for maybe ﬁve computers. I think there is a world market ” Thomas Watson, chairman of IBM, 1943

Prediction ... “ would want a computer in their There is no reason anyone ” home. Ken Olsen, President and founder of Digital Equipment Corp., 1977

Prediction ... “ especially if it's about the Prediction is very difﬁcult, ” future. Nils Bohr, Nobel laureate in Physics

no prediction but ...

scenario planning

“ Scenarios are a way of developing alternative futures based on different combinations of assumptions, facts and trends, […] Building scenarios will force asking relevant questions and identify a ” range of possible choices or events. Roger Caldwell, 2002 Anticipating the future cals.arizona.edu/futures/

scenario planning ^ ll g to Caldwe accordin identify driving forces and plausible trends combine them to get a series of scenarios under the form of stories …

TORY 1973 S http://www.flickr.com/photos/tortugaone/2355765592/

scenario planning ^ t ss Foresigh KTH Wirele

scenario planning ^ Philips

ptive disru ^ business model

3 steps of business model design !\" #\" %\" $\" INNOVATE !! \"#$%&'(#)#*'$+,-) !! 2$$#$$) !! (&2',$30&/)0,) !! 3.&,),#5)/0 (.$',#$$)/0\"#1) $3&#,-34$)2,\") '/7&08#/#,3$)9) ',30)2)7&0:#% 5#26,#$$#$) 0770&3.,'+#$)) &02\"/27)

www.ﬂickr.com/photos/toohotty/2675099789/sizes/l/

disruptive technology

question your business model

question your business model distribu4on channel assessment strengths (+) (‐) weaknesses  our channels have a strong  our channels only reach a  reach among our target  frac7on of our target clients clients  we know how effec7ve each  we don’t know how  of our channels is successful our channels are  we know how cost efficient  we don’t know how costly  each of our channels is our channels are  we use our most costly  unprofitable clients regularly  channels for our most  use our most expensive  profitable clients channels … …

? n o i t p u r is d

^ disruptive technology en to Christens according results in worse product performance, at least in the near- term brings to the market a very different value proposition than had been available previously typically cheaper, simpler, smaller, and, frequently, more convenient to use [But, they generally] under perform established products in mainstream markets.

e tiv up performance r dis t marke new replaces old technology market for old technology market for new technology time [Christensen, 1997]

disruptive process e iv pt u performance r dis t marke new replaces old technology market for old technology market for new technology time [Christensen, 1997]

disruptive process e iv pt u performance r dis t marke new replaces old technology market for old technology market for new technology time 1 foothold 2 main 3 attraction 4 switching 5 retaliation 6 displacement [Christensen, 1997]

1. Foothold market entry 2. Main market entry 3. Customer attraction 4. Customer switching 5. Incumbent retaliation 6. Incumbent displacement

“ We’ve developed and tested a tool that can help companies detect potential disruptive innovations while management ” still has time to respond effectively. Farshad Raﬁi & Paul Kampas, 2002 How to identify your ennemies before they destroy you cals.arizona.edu/futures/

multi-criterion decision-making

“ MCDM can be deﬁned as the study of methods and procedures by which concerns about multiple conﬂicting criteria can be formally incorporated into ” the management planning process. International Society on Multiple Criteria Decision Making

rating ...

weighting

disruptiveness proﬁle

1. Foothold market entry Can the insurgent gain a foothold, usually in the market below the main one?

2. Main market entry Does the insurgent face high barriers to entering the main market?

3. Customer attraction How much value can the insurgent offer relative to the incumbent?

4. Customer switching How easily can customers switch from the incumbent to the insurgent?

5. Incumbent retaliation Does the incumbent have high barriers to retaliating against the insurgent?

6. Incumbent displacement Does the innovation displace incumbent products and revenues?

Environment assessment competitive forces Technology foresight scenario planning Disruptive technology MCDM

disruptive technology iew ✓ a new value proposition rev ✓ cheaper, simpler, smaller ... ✓ but less performing ✓ at least in the near-term

the end ... illustrations.fr

Disruptive Business Model

1 comments

Notes on slide 1

23 Favorites