Modeling Values-Based Innovation
with the Business Innovation Kit
• .
§ Background
§ How It Works
§ Cases
§ Applications
/// Prof. Dr. Henning Breuer

§ The Business Innovation Kit enables entrepreneurial teams to
explore the range of ideas and viable business models for a
new or existing business.
§ Its precursor, named Business Modeling Starter Kit has been
developed since 2010 at Telekom Innovation Laboratories.
§ It was iteratively refined through dozens of workshops with
startups and corporate venture projects. By now we conducted
more than 100 workshop with these tools.
Background /// The Business Innovation Kit facilitates workshops
out- of-the-box for entrepreneurs, innovators and students.

Background /// The traditional polarisation between technology-,
market-and user- driven sources of innovation is being replaced by ...

Background /// ... a systemic view on a multitude of components
within a business ecosystem, where …

Background /// ... new configurations become sources for innovation.

Background /// Simplified frameworks are required to explore and
communicate the complexities of alternative configurations.
§ Osterwalder & Pigneur (2010) published a business modelling framework and the Business
Model Canvas as a widely known mapping tool depicting 9 components
§ Aziz et al. (2008) defined business models also based on their components. Within their
literature analysis they identified 54 business model components within various literature
sources.
§ A literature review from 2014 yielded more than 30 different frameworks most of them
applying their own set of components.
§ The Business Innovation Kit works with 8 basic components describing the: value proposition,
stakeholders, customer touchpoints, distribution, revenue model, capabilities, partners and
cost structure (Breuer & Ketabdar 2012). Additional components (e.g. branding or legalities)
are added as far as needed for a particular business idea.
§ A lean venturing approach (Breuer 2013) iteratively refines and validates assumptions with
respect to these components.
/// Osterwalder, A., Pigneur, Y. (2010). Business Model Generation, Wiley & Sons: Hoboken. /// Aziz, S., Fitzsimmons, K., &
Douglas, E. (2008). Clarifying the Business Model Construct, in AGSE, Melbourne, Australia, pp. 795-813.

Background /// Compared to other tools the Business Innovation Kit takes
a process-oriented didactic approach to model values-based business.
/// Business Model Canvas (Osterwalder & Pigneur 2010), Flourishing Business Canvas (Upward 2013),
Value Mapping (Bocken, Short, Rana, and Evans 2013)

Background /// Reocurring challenges in business model design
and innovation are addressed in an interactive and playful manner.
§ Explore scope and depth of business design options.
§ Evaluate strengths and weaknesses of each component.
§ Compare alternative use cases and business models.
§ Create a shared understanding among participants.
§ Ensure your project is worth being done.

Background /// The basic set contains a playground, a manual, and cards
featuring cases, challanges, and instructions for ideation and moderation.
§ The basic set (Starter Kit on the left) guides teams of 3-12 participants within 4 hours through
a self-explanatory set of examples, an ideation and refinement exercise, and confronts them
with challenges to check and improve their initial assumptions.
§ Where the “Starter Kit” ends the “Business Innovation Kit” (on the right) goes into depth:
Exploring revenue models, the customer journey, or overarching topics such as sustainability
or competitive advantages that may only be achieved through normative orientations.

How it works /// Workshop participants proceed in six steps.
/// Business Innovation Kit eBook on Amazon: eBook on Amazon: http://www.amazon.com/dp/B00Q8Z5UHO

How it works /// Each exercise is supported by a card deck.

How it works /// Familiarize yourself with business model components
and patterns through cases from the news and different industries.

How it works /// In a grounding exercise fundamental values are being
explored and negotiated, sustainability-orientation may be enhanced.
/// Sustainability Innovation Pack, http://blog.ssbmg.com/2015/02/26/sustainability-innovation-pack
Grounding
Vision /
Mission /
Purpose
§ What is your business idea all about? What is
the purpose of the whole endeavor? State your
Vision, Mission or Purpose.
§ Establish common ground of fundamental values
to work on with your team – even beyond
economic success criteria. Is this also about
values like privacy, health and/or sustainability?
§ If sustainability-orientation is key to your idea
business case driver cards help you to explore
new business cases for sustainability.

How it works /// Learn about and select from five maturity levels with
respect to management of sustainability-oriented innovation.
5. Values-Based Network
Innovation
4. Sustainable Business
Model Innovation
3. Sustainable Innovation
Process
2. Sustainable Innovation
throughout components
1. Sustainable Innovation
within components
Ad hoc innovation within single components,
e.g. a product is being replaced by a green alternative.
Sustainability is pursued throughout components
such as a product category or distribution logistics.
Sustainable Innovation becomes
mandatory for corporate renewal
and core element of strategy.
Net positive value and visionary change are achieved through normatively
founded value innovation networks (e.g. a sustainable energy region).
Shared value is created by sustainable business model
innovation, sustainable (future-proof) business.
1. Sustainable Innovation
within components

How it works /// Moderation cards trigger ideation for each component.
Using color post-its participants may compete for the best ideas.

How it works /// In the refinement excercise values-based anchors and
the best, compatible ideas from the idea pool are being combined.

How it works /// Challenger cards present scenarios what might happen
to check the robustness of your assumptions.

How it works /// Extension sets for revenue models and customer
touchpoints guide teams into further detail.
/// Overview of 30 revenue models and pricing tactics, each described with characteristics and examples on one card.

How it works /// Five E pave the road from your ideas to a market.
Evolution
Experimentation
Evaluation
Elaboration
Exploration
/// Breuer (2013). Lean Venturing. Learning to Create New Business through Exploration, Elaboration, Evaluation,
Experimentation and Evolution. International Journal of Innovation Management. Vol. 17, No. 5.

How it works /// For each stage different methods apply.
Evolution
(Release Planning, Future Scenarios)
Experimentation
(Kohort Studies, User Clinics)
Evaluation
(Expert Interviews, Customer Development)
Elaboration
(Blue Ocean, Design Thinking Workshops)
Exploration
(Business Innovation Kit, Futures Workshops)
/// Breuer (2013). Lean Venturing. Learning to Create New Business through Exploration, Elaboration, Evaluation,
Experimentation and Evolution. International Journal of Innovation Management. Vol. 17, No. 5.

Level Exemplary Tools and Methods Cases
Exploration
Business Modeling Starter Kit
Futures Workshop
Crowdsourcing
Services for Elderly
Mobile OS
Home Router Applications
Elaboration
Ethnography
Blue Ocean Analysis
Co-Creation Workshops
Location Data Analytics
Services for Elderly
Educational Technologies
Evaluation
Customer Development
Interviews
Expert Interviews
Comparative Evaluation
Network Path Recommendation
Home Router Applications
Experimentation
User Clinics & Usability Testing
Split Tests
Cohort Study
Social Network Services
MagiTact
Evolution
Future Scenarios,
Futures Workshop,
Idea Backlog
Network Path Recommendation
Mobile Payment
Cases /// Several cases have been described.
/// Breuer (2013). Lean Venturing. Learning to Create New Business through Exploration, Elaboration, Evaluation,
Experimentation and Evolution. International Journal of Innovation Management. Vol. 17, No. 5.

Cases /// Values-based business model innovation in the eye surgery
(Aravind).
/// Breuer, H. & Lüdeke-Freund, F. (coming up 2016). Values-based innovation management. Palgrave.
Vision:
Eradicate
needless
blindness
in India
Strategic
Instrumental
§ Subsidisation of
2/3 unpaid
treatments
§ „Freemium“
§ Quality surgery § Aurolab
delivers quality
lenses at low
price
§ Standardised
treatment
§ Specialized
staff
§ Education and
Screening in
villages
§ Paying and
non-paying
patients
§ Campaigns
§ NGO & WHO
collaboration
§ Minimal costs
per case

/// Breuer, H. & Lüdeke-Freund, F. (coming up 2016). Values-based innovation management. Palgrave.
Mission:
„Elimina-
tion of the
environ-
mental
impact of
personal
mobility“
Strategic
Instrumental
Cases /// Example of values-based business model innovation in the
automobile industry (Riversimple).
§ Monthly service
fee
§ Venture capital
§ Affordable eco-
mobility as a
service
§ Free refuel
§ Local
network
for hydrogen
refuel
§ Locally
distributed
production
§ Open source
development
§ Highly material
& energy
efficient
production
§ Design
§ Updates
§ Local
distribution
§ Environment
aware locals
§ Local
stakeholders
§ Stakeholder
participation in
management

Demos
Publications
Patents
Gaming
Invisible
Signature
Silent Reply
Dead EndsUsable Results Results Pending /
Prerequisite for Following Steps
Cases /// Touchless interaction technology was looking for an
application.
/// Mahhdjour, S., Breuer H. & Ketabdar, H. (2012). Business Model Development for Radical Mobile Innovation
– A Case Study. 5th ISPIM Innovation Symposium – Stimulating Innovation. Seoul, Korea

MagiTact
End-users
(B2C)
Independent
Developers (B2B)
Development Kit
MagiTact API
MagiTact SDK
Developer Support
MagiTact Air Control
Mobile Air Control
3 Air Control Apps
3 Magnets
MagiTact Apps
MagiGuitar
MagiMusic
MagiBoxing
Mobile App Stores
€
€
Primary Revenue Stream
Leads to increase of App offering
Secondary Revenue
Stream
Leads to awareness for
MagiTact
Secondary Revenue Stream
Leads to Upsales by Apps
€
Cases /// Different revenue streams were developed for different
customers groups.

Demos
Publications
Patents
Gaming
Invisible
Signature
Silent Reply
Entertainment Apps
Commercialization of
patents
Combined
Strategy
Entertainment Apps
Air Control Kit
API Licensing
Dead EndsUsable Results Results Pending /
Prerequisite for Following Steps
Idea BM Project App Development BM Specification Exit Strategy
Cases /// The business model created options for commercialization.
/// Mahhdjour, S., Breuer H. & Ketabdar, H.. (2012). Business Model Development for Radical Mobile Innovation
– A Case Study. 5th ISPIM Innovation Symposium – Stimulating Innovation. Seoul, Korea

Applications /// We work with different workshop groups and formats.
More than 100 Workshops:
§ World Cafe with more than 100
Innovation managers
§ Startups and students
§ Long Night of Science in Berlin
(again on June 11th, 2016)
“Diverse professional groups –
from the student to the CEO –
can substantially profit”
(Prof. Frank Piller, RWTH Aachen).

Applications /// Tangible materials are involved to grasp challenges and
prototype corporate visions.
/// Strategy workshop with top and middle management of a large industrial (formerly steel) company

q To be discussed or
vague
q Well defined
q Qualified (through
feedback)
q Quantified
q Proven
q Critical and missing
q Accessible
q Already in working mode
§ Prio-Rating:
§ To Do:
§ Person in charge:
q To be discussed or vague
q Well defined
q Qualified (through feedback)
q Quantified
q Proven
§ Prio-Rating:
§ To Do:
§ Person in charge:
q To be discussed or vague (revenue channels & price)
q Well defined
q Qualified (through feedback)
q Quantified
q Proven
§ Prio-Rating:
§ To Do:
§ Person in charge:
q To be discussed or vague
q Well defined
q Qualified (through feedback)
q Quantified
q Proven
§ Prio-Rating:
§ To Do:
§ Person in charge:
q To be discussed or vague
q Well defined
q Qualified (through feedback)
q Quantified
q Proven
§ Prio-Rating:
§ To Do:
§ Person in charge:
q To be discussed or
vague
q Well defined
q Qualified / first contacts
q Quantified / contract
q Proven / integrated
§ Prio-Rating:
§ To Do:
§ Person in charge:
q To be discussed or vague
q Well defined
q Qualified (through feedback)
q Quantified
q Proven
§ Prio-Rating:
§ To Do:
§ Person in charge:
q To be discussed or vague
q Well defined
q Qualified (through feedback)
q Quantified
q Proven
§ Prio-Rating:
§ To Do:
§ Person in charge:
• Value Proposition
• Stakeholder
Touchpoints
Distribution
• Capabilities • Partners
• Cost StructureRevenue Model
Applications /// A quick check of maturity identifies need for action and
allows to comparatively evaluate alternative use cases and models.

Applications /// Collaborative Win-Win Modeling allows corporations to
create new joint business models e.g. by combining capabilities.

Applications /// Even „wicked problems“ may be addressed like the
challenge to develop a sustainable energy region.

Applications /// Different methods are combined to advance existing
business models and create new networks based on shared values.
(1) Critique /
Values Missed
(2) Vision /
Ideal Values
(3) Realisation /
Values to be created
Futures
Workshop
(5) Business Modelling(4) Value Proposition (6) Value(s) Network
Business
Modelling
Values
/// Breuer, H. & Lüdeke-Freund, F. (2014). Normative Innovation for Sustainable Business Models in Value Networks.
in: Huizingh, K.; Conn, S.; Torkkeli, M. & Bitran, I. (Eds.): The Proceedings of XXV ISPIM. Dublin, Ireland.

Applications /// Values and normative orientations such as dedication
to sustainability become drive innovation even beyond individual firms.
/// Breuer, H. & Lüdeke-Freund, F. (2014). Normative Innovation for Sustainable Business Models in Value Networks.
in: Huizingh, K.; Conn, S.; Torkkeli, M. & Bitran, I. (Eds.): The Proceedings of XXV ISPIM. Dublin, Ireland.

Applications /// Values and normative orientations such as dedication
to sustainability become drive innovation even beyond individual firms.
Network Actors
Prosumers Energy Producers Network Operators
Innova9onLevels
Values
Regional sustainability,
educa3on and
independence
Regional sustainability,
innova3on and
independence
(Cross-)Regional
sustainability and
educa3on to drive
innova3on
Business Model
Local energy
community
Financial equity
par3cipa3on
Agency for virtual
power plants
Components
Advanced storage
technology and trade
plaCorm
Partnering in marke3ng,
finance & opera3on
Repurposing
consul3ng capabili3es
/// Breuer, H. & Lüdeke-Freund, F. (2014). Normative Innovation for Sustainable Business Models in Value Networks.
in: Huizingh, K.; Conn, S.; Torkkeli, M. & Bitran, I. (Eds.): The Proceedings of XXV ISPIM. Dublin, Ireland.

USA & Canada
South Korea
University of Applied Sciences for Media,
Communication and Management (HMKW Berlin)
Waseda University Tokyo
Berlin University of
Technology,
University of Applied
Sciences Potsdam
South Africa
Chile
Technical University
Aachen
Universities Hamburg
und Lueneburg
Mexico
Argentina & Brasil AustraliaIndia
Europe
Applications /// The BIK is available at self-cost price in English,
Spanish, German and Polish and used by insititutions worldwide.
Hongkong
Columbia

Thank you for your attention !
Thanks to the colleagues that contributed to the Business Innovation Kit:
§ Colleagues from Telekom Innovation Laboratories, Technical University Berlin & other clients of UXBerlin
§ Sustainability Innovation Pack developed with Dr. Lüdeke-Freund (Universität of Hamburg)
§ Materials and Downloads: www.uxberlin.com/businessinnovationkit
§ News: facebook.com/businessinnovationkit
§ Values-Based Innovation: ssrn.com/abstract=2620564, publications on www.uxberlin.de/publications