This workshop focuses on business model innovation and alignment. Alignment is what most companies forget to do first. If you don’t know where you’re going... Chances are you won’t get where you want to go. Alignment is the foundation of effective growth. It is about an honest assessment of who you are. (CULTURE) It is about finding what is important (MISSION) and matching this with what the market wants (NEEDS) and plan to deliver value (fit with SKILL and BUSINESS MODELS).

1. Business Model Innovation/
Alignment Workshop
Integrating digital solutions in your business step by step

2. Objectives today
Belief Before Belief after our talk
Digital Not Us
Lost/ Confused
Blah, blah, blah
Digital is a tool not a solution
It is all about value / value
capture
Simple, step by step
BMI makes sense
My metric = downloads of this presentation: http://tiny.cc/agoriabmi

3. My background / My Research
➢ 10 Start-ups / 6 countries
➢ 8 Success
➢ 1 Failure
➢ 1 unknown
But my clients still
failing 50% of the time
3 years of research
320 companies
Able to predict 72% of innovation success
2 key findings

4. There are companies that succeed and
companies that fail. The biggest difference
between winners and losers is smart
winners make good, even mediocre,
ideas great over time.
Finding #1
Little to Big Quality
Of Ideas
Time
Start
Learning
Cycles
No
Changes
Bad
Cycles
Winners
Winners
Losers
Losers

5. More Importantly: Business models count
Winners learn to do things better over time
And build different business models
Value Creation * Value Capture = Success

6. The future ain’t what it used to be
First there was
a focus on:
Then there was: Now companies need:
INNOVATION BUSINESS MODEL
INNOVATION
How and what can be copied, systems are sustainable
HOW?
Focus on effectiveness
And efficiency
WHAT?
Focus on new
customer value
WHAT? WHO?
HOW? WHY?
Focus on the entire
Value system
Operational Excellence

7. The basics
➢ A business model
= 4 parts
➢ A sustainable BM is
usually different in
at least 2 ways
➢ Step by step
7
Create , sell , capture value

8. How do you capture value ?
A car can’t drive without a drive train,
but you get 3% of the profits

10. The Power of Business model Innovation
Source: Deloitte Expert Interviews 2018
Operational Business model
Excellence Innovation Innovation
Original price 40000 40000 40000
New Value 350 700
Total Price 40000 40350 40700
Labor 15000 15000 15000
Other Parts 18000 18000 18000
Drive Train 2100 2100 2100
Drive Train Extra Value 175 420
Total Costs 35100 35275 35520
Their Margin 4900 5075 5180
Base Margin 147 7% 147 7% 147 7%
Extra Value 150 20% 350 20%
Your Margin 147 297 497
Your share of margin 3.0% 5.9% 9.6%
You win with You bring Your bring more
low price and new value value and become
value and get a part a critical part of
the value chain
More consumer
Value
More margin for
Partners
More margin
For you

11. The Power of Business model Innovation
Source: Deloitte Expert Interviews 2018
Operational Business model
Excellence Innovation Innovation
Original price 40000 40000 40000
New Value 350 700
Total Price 40000 40350 40700
Labor 15000 15000 15000
Other Parts 18000 18000 18000
Drive Train 2100 2100 2100
Drive Train Extra Value 175 420
Total Costs 35100 35275 35520
Their Margin 4900 5075 5180
Base Margin 147 7% 147 7% 147 7%
Extra Value 150 350 20%
Your Margin 147 297 497
Your share of margin 3.0% 5.9% 9.6%
You win with You bring Your bring more
low price and new value value and become
value and get a part a critical part of
the value chain
More consumer
Value
More margin for
Partners
More margin
For you

12. The Power of Business model Innovation
Source: Deloitte Expert Interviews 2018
Operational Business model
Excellence Innovation Innovation
Original price 40000 40000 40000
New Value 350 700
Total Price 40000 40350 40700
Labor 15000 15000 15000
Other Parts 18000 18000 18000
Drive Train 2100 2100 2100
Drive Train Extra Value 175 420
Total Costs 35100 35275 35520
Their Margin 4900 5075 5180
Base Margin 147 7% 147 7% 147 7%
Extra Value 150 350
Your Margin 147 297 497
Your share of margin 3.0% 5.9% 9.6%
You win with You bring Your bring more
low price and new value value and become
value and get a part a critical part of
the value chain
More consumer
Value
More margin for
Partners
More margin
For you 3X
7% ➔ 20%

13. Question: Is google an innovator or a
business model innovator ?
They created more value
And captured value

14. In the future, competition
will take place not between
products or companies, but
between business models
Gary Hamel
#commercialinnovation

15. A simple recipe
What for who before how…
Ask how more value / value capture
Then lots of cycles
15

16. A fast (very fast) case study

17. A 5 Step process
A half day in 20 minutes, so we'll move fast….
17
1 | What
2 | Value 3 | BMI
4 | Culture
5 | Share

18. Investing heavily in digitalization
World-class IoT solution
Buying stakes in digital
companies
Making smart car parts
Why ?

19. Mission
We want to be part
of autonomous cars
All types of parts
AND
communication
Peace of mind
Peace of mind for drivers of autonomous cars
And a central role in the industry

20. Why what first !
➢ No value (50%)
➢ No value people are
willing to pay for
(15%)
➢ Not willing to pay
enough (15%)
20 % succeed

21. Pick your core job(s)
I have a self-
driving car
Maintenance
to take care of
itself
So I can drive
Worry-free


22. What is my job ?
Example :
Expensive prepared Dinner Waterloo station with flowers
I get home Apologize
and show I
care
So I don’t
sleep on the
couch
People only buy
products / services
to get a job done
and they will pay
a lot more to get
the right job done

23. How to deliver value better and
capture more value
➢ What is the established business model
➢ Challenges
➢If this business failed
➢ What could be improved
➢Look for digital solutions
➢Steal ideas
23

24. What is your industry B-model ?
If
Parts Auto
Manuf
Price +
Quality
Margin on
sales

25. Ask .. If this business
failed in 5 years
#commercialinnovation

26. Big Challenges ?
If
Parts Auto
Manuf
Parts Auto
Manuf
Price +
Quality
Margin on
sales
If we sell parts only, we will only make money on parts
As cars get more intelligent they will choose the
Cheapest parts

27. Digital questions
➢ Personalization
➢ Interactivity
➢ Digital production
➢ Augment experiences
➢ Digital testing
➢ Analytics / big data
➢ Speed
Why focus on Digital ?
The most powerful and under-
utilized tools in most
industries

28. Steal the best business models
55 pattern cards,
which are able to
explain over 90%
of all business
model
innovations in the
last 150 years
http://tiny.cc/BMICARDS

29. How to use the cards…
Pick 3 at random and really think about
how you could change your business to
match

30. Parts that talk
Digitalization of the whole
process

31. Change notifications
= guarantees of no break-downs

32. A platform for their products
That they share with other
companies

33. Data Collection
= Value to sell

34. Become the network

35. A share of revenues from
Platform usage

36. Parts Auto
Manuf
Price +
Quality
Margin on
sales
If we sell parts only, we will only make money on parts
As cars get more intelligent they will choose the
Cheapest parts
What is your better B-model
Parts +
Communication
+ intelligence
Auto
Manuf +
Tech. companies
Integration
Total COO
Margin on
Value created
And platform

37. A personal point of view
Bosch is doing some amazing things creating value
But I worry about their ability to capture value
And their ability to create the right culture to execute the
strategy
It would be great to have a crystal ball…

38. Culture and capabilities grow over
time
The Basics
Strategy
Hunger
Philosophy
Learning Orientation
Operations
Speed
Proactivity
General systems
Customer focus
Entrepreneurial Orient.
Risk Taking
Ecosystem
Management
Structure
Creativity
Room to grow
Sustaining Innov.
Breakthrough Innov.
Want it Do it Not scared to do more

39. Culture to make it happen
39
A parts company
Building technology
Sharing not = second
Nature
Deliberate/ Strategic
A digital company
Sharing
Integrating
Collborating
Fast/Agile
Joint platform
Open Source
Shared revenues
Suggestion: See
where in the process
My guess stage 1,5

40. Why you gotta communicate things

41. A tool to make things clear …
(Step #5)
41

44. TRUE Truly Simple Healthy Fast Food
N
Narrative. Why it is
important (the story)
When consumers are looking for ordinary fast food
they have lots of choices; Wendys needs to be the
choice for healthy fast food
O Objective
Better and healthier food that consumers notice is
healthier and better. And they will talk about it
R
Restrictions: We are
not interested in
Being classfied as a health food place. For many
health food = no food
T Tactical Constraints:
The margin needs to be the same as before
H
Here is the place to
start
See Subways: Jared Campaign

45. Identify ways to test your ideas
and manage risk over time
➢ Paper testing
➢ Biggest risk testing
➢ Proof of concept
➢ New business
Don’t start now !
Test your ideas cheaply first
Idea Quality

46. A question …
➢ The average manager in the US/Europe spends 30 hours per
week answering/ reading emails. How many client meetings
week on average
< 1
-2-4
5-7
>7
Source: https://www.inc.com/geoffrey-james/new-study-the-
average-worker-spends-30-hours-a-week-checking-email.html

47. The recipe again
What for who before how…
Ask how more value / value capture
Then lots of cycles (with clients)
47

48. Bryan Cassady
A passionate believer in anyone’s ability to Innovate,
build new businesses.
If things are not working…it is usually the system.
10 Starts-ups, 1 lower, 8 winners, 1 TBD.
8 Years coaching, teaching (KU Leuven/Solvay), supporting
Innovation. Innovation Engineering, Lead European Innovation
Academy. Trainer: Lean start-up, Business model canvas, Innovation
systems.
CEO of SmartEnds (An amazing IoT company)
Works with > 200 companies per year,
supporting 8-12 with execution.
Connect with me
https://www.linkedin.com/in/bryancassady/
Downloads
BMI cards: http://tiny.cc/BMICARDS
Presentation: http://tiny.cc/agoriabmi