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Modeling Values-Based Innovation
with the Business Innovation Kit
• .
§  Background
§  How It Works
§  Cases
§  Applicatio...
§  The Business Innovation Kit enables entrepreneurial teams to
explore the range of ideas and viable business models for ...
Background /// The traditional polarisation between technology-,
market-and user- driven sources of innovation is being re...
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....
Background /// Compared to other tools the Business Innovation Kit takes
a process-oriented didactic approach to model val...
Background /// Reocurring challenges in business model design 

and innovation are addressed in an interactive and playful...
Background /// The basic set contains a playground, a manual, and cards
featuring cases, challanges, and instructions for ...
How it works /// Workshop participants proceed in six steps.
/// Business Innovation Kit eBook on Amazon: eBook on Amazon:...
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 differen...
How it works /// In a grounding exercise fundamental values are being
explored and negotiated, sustainability-orientation ...
How it works /// Learn about and select from five maturity levels with
respect to management of sustainability-oriented inn...
How it works /// Moderation cards trigger ideation for each component.
Using color post-its participants may compete for t...
How it works /// In the refinement excercise values-based anchors and
the best, compatible ideas from the idea pool are bei...
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 ...
How it works /// Five E pave the road from your ideas to a market.
Evolution
Experimentation
Evaluation
Elaboration
Explor...
How it works /// For each stage different methods apply.
Evolution
(Release Planning, Future Scenarios)
Experimentation
(K...
Level Exemplary Tools and Methods Cases
Exploration
Business Modeling Starter Kit
Futures Workshop
Crowdsourcing
Services ...
Cases /// Values-based business model innovation in the eye surgery
(Aravind).
/// Breuer, H. & Lüdeke-Freund, F. (coming ...
/// Breuer, H. & Lüdeke-Freund, F. (coming up 2016). Values-based innovation management. Palgrave.
Mission:		
„Elimina-
ti...
Demos
Publications
Patents
Gaming
Invisible
Signature
Silent Reply
Dead EndsUsable Results Results Pending /
Prerequisite ...
MagiTact
End-users
(B2C)
Independent
Developers (B2B)
Development Kit
MagiTact API
MagiTact SDK
Developer Support
MagiTact...
Demos
Publications
Patents
Gaming
Invisible
Signature
Silent Reply
Entertainment Apps
Commercialization of
patents
Combine...
Applications /// We work with different workshop groups and formats.
More than 100 Workshops:
§  World Cafe with more than...
Applications /// Tangible materials are involved to grasp challenges and
prototype corporate visions.
/// Strategy worksho...
q  To be discussed or
vague
q  Well defined
q  Qualified (through
feedback)
q  Quantified
q  Proven
q  Critical and missing
q...
Applications /// Collaborative Win-Win Modeling allows corporations to
create new joint business models e.g. by combining ...
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 share...
Applications /// Values and normative orientations such as dedication
to sustainability become drive innovation even beyon...
Applications /// Values and normative orientations such as dedication
to sustainability become drive innovation even beyon...
USA & Canada
South Korea
University of Applied Sciences for Media,
Communication and Management (HMKW Berlin)
Waseda Unive...
Thank you for your attention !
Thanks to the colleagues that contributed to the Business Innovation Kit:
§  Colleagues fro...
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Modeling Values-Based Business with the Business Innovation Kit

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Business Innovation Kit & Sustainability Innovation Pack: What it is, how to use it and selected projects where it has been applied.

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Modeling Values-Based Business with the Business Innovation Kit

  1. 1. Modeling Values-Based Innovation with the Business Innovation Kit • . §  Background §  How It Works §  Cases §  Applications /// Prof. Dr. Henning Breuer
  2. 2. §  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.
  3. 3. Background /// The traditional polarisation between technology-, market-and user- driven sources of innovation is being replaced by ...
  4. 4. Background /// ... a systemic view on a multitude of components within a business ecosystem, where …
  5. 5. Background /// ... new configurations become sources for innovation.
  6. 6. 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.
  7. 7. 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)
  8. 8. 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.
  9. 9. 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.
  10. 10. How it works /// Workshop participants proceed in six steps. /// Business Innovation Kit eBook on Amazon: eBook on Amazon: http://www.amazon.com/dp/B00Q8Z5UHO
  11. 11. How it works /// Each exercise is supported by a card deck.
  12. 12. How it works /// Familiarize yourself with business model components and patterns through cases from the news and different industries.
  13. 13. 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.
  14. 14. 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
  15. 15. How it works /// Moderation cards trigger ideation for each component. Using color post-its participants may compete for the best ideas.
  16. 16. How it works /// In the refinement excercise values-based anchors and the best, compatible ideas from the idea pool are being combined.
  17. 17. How it works /// Challenger cards present scenarios what might happen to check the robustness of your assumptions.
  18. 18. 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.
  19. 19. 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.
  20. 20. 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.
  21. 21. 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.
  22. 22. 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
  23. 23. /// 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
  24. 24. 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
  25. 25. 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.
  26. 26. 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
  27. 27. 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).
  28. 28. 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
  29. 29. 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.
  30. 30. Applications /// Collaborative Win-Win Modeling allows corporations to create new joint business models e.g. by combining capabilities.
  31. 31. Applications /// Even „wicked problems“ may be addressed like the challenge to develop a sustainable energy region.
  32. 32. 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.
  33. 33. 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.
  34. 34. 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.
  35. 35. 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
  36. 36. 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

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