3. Lets start at the end
Tomorrow’s competitive
advantage of companies will
not be based on innovative
products and processes but on
innovative business models
4. Apple is the largest music retailer in the world.
It does not sell CD’s
13. The consequence for companies in the
innovation race are drastic.
Even if they are currently successful, it is
important for businesses to regularly test their
business model.
We live in an era of temporary competitive
advantage: success can only be maintained if
its roots are continually re-examined and
nurtured.
20. We must also not forget the issue of revenue
“A million people walk into a
Silicon Valley bar. No one buys
anything. The bar is declared a
massive success”
29. Examples
Direct Selling
Businesses sell direct to the customer, not via an
intermediary. This way savings can be made and
passed to the customer
Freemium
The basic version of an offering is given away in the
hope of persuading customers to pay for the premium
version.
A more advanced version of this is pay what you
want.
30. Add on
The core product is priced competitively, but there are
numerous extras that drive the final price up
Platform
Digitally enabled marketplaces for matching
buyers and sellers.
31. Mass customisation 2.0/
personalisation
Initially this was companies like Dell tailoring products
to individual customers needs. On demand is replacing
in stock and increasing technology is allowing this to
happen.
Mega Hyperlocal
Components for a product or service are source and
assembled locally and then also sold locally. Here
companies quickly create a strong brand presence and
loyal customers.
Can be expanded through the use of a Land and
Expand strategy.
33. Initiation
•What is the problem?
•Where is it happening?
•When is it happening?
•How can we overcome the problem?
•When do you need to get involved?
•How do you know when the problem is fixed?
38. Integration
• Check the consistency of the new business model
• Examine all four questions of your new business model and check
organisational fit.
Does it work for you?
Does it work for your customers?
Does it work for your business?