1. BUSINESS MODEL
INNOVATION
Training Summary
@patrickpijl
@maaikedoyer
@BusModInc

3. THE WORLD IS
CHANGING

4. ONLINE REVOLUTION
MARKETS CAME ALREADY UP THE SPEED OF DEVELOPMENTS
HAS INCREASED

5. DESIGNING BETTER BUSINESSESDESIGNING BETTER BUSINESSES

6. CUSTOMER
SEGMENTS
KEY PARTNERS
COST STRUCTURE REVENUE STREAMSCHANNELS
CUSTOMER
RELATIONSHIPS
KEY RESOURCES
VALUE PROPOSITIONSKEY ACTIVITIES

7. YOUR CURRENT
BUSINESS MODEL

8. CURRENT BUSINESS MODEL
WHAT KIND OF
RELATIONSHIP DO WE
MAINTAIN WITH OUR
CUSTOMERS?
PERSONAL CONTACT?
AUTOMATIC? SELF-
SERVICE?
THROUGH WHAT
CHANNELS DO WE
DELIVER OUR
PRODUCTS AND
SERVICES?
WHAT CUSTOMER NEEDS DO WE
SATISFY?
WHAT PROBLEM DO WE HELP
OUR CUSTOMERS SOLVE?
WHAT ADVANTAGES DO OUR
PRODUCTS AND SERVICES
PROVIDE OUR CUSTOMERS
WITH?
WHAT PRODUCTS AND SERVICES
DO WE DELIVER TO OUR
CUSTOMERS
WHAT TYPE OF KEY
ACTIVITIES DO WE
PERFORM?
WHAT KEY
RESOURCES DOES
OUR PROPOSITION
REQUIRE?
PHYSICAL?
INTELLECTUAL?
HUMAN? FINANCIAL?
WHO ARE OUR KEY
PARTNERS?
WHAT IS OUR
MOTIVATION TO WORK
WITH PARTNERS?
WHAT KEY
RESOURCES DO WE
ACQUIRE THROUGH
PARTNERS?
WHAT KEY ACTIVITIES
DO OUR PARTNERS
PERFORM?
WHO IS OUR
CUSTOMER?
FOR WHOM DO WE
CREATE VALUE?
CAN WE
DISTINGUISH
DIFFERENT
CUSTOMER
SEGMENTS?
WHAT ARE THE INHERENT
COSTS IN OUR CURRENT
BUSINESS MODEL?
WHAT IS THE SIZE OF
EACH COST?
WHAT REVENUE
STREAMS DO WE
GENERATE?
WHAT IS THE SIZE OF EACH
REVENUE STREAM?

9. CURRENT BUSINESS MODEL
+/- +/-+/-
+/- +/-

10. THE CONTEXT

12. WHAT IS HAPPENING
IN THE WORLD
AROUND YOU?

13. VISION AND
AMBITION

15. WHAT IS YOUR
HIGHER PURPOSE?

16. CUSTOMER
DISCOVERY

17. WHO IS OUR CUSTOMER? WHAT DOES HE OR SHE WANTS?
WHAT IS HER WILLINGNESS TO PAY?

18. WHAT IS THE
JOB YOU GET DONE
FOR YOUR CUSTOMER?

22. THE BUSINESS
MODEL PROCESS

23. ! ! ! ! ! ! !!!!!!!!!!DESIGNING BETTER BUSINESSES
!
!

24. BUSINESS MODEL
INNOVATION

25. SHAKE
YOUR
BUSINESS
MODEL!

26. DESIGN? IT’S A JOURNEY OF
EXPLORATION

27. 1. GENERATE
OPTIONS
2. EXPLORE OPTIONS
3. CHECK AGAINST
DESIGN CRITERIA
4. REPEAT

28. IT’S A PROCESS!
THERE IS NO SINGLE
RIGHT ANSWER
KILL YOUR
DARLINGS!

29. BUSINESS MODEL
INNOVATION
TECHNIQUES

30. FORESEE THE
FUTURE
“THIS PRESENT MOMENT USED
TO BE THE UNIMAGINABLE
FUTURE.”
Stewart Brand
Co-Founder, Global Business Network
“The Clock of the Long Now”

31. FRESHWATCHING

32. ELIMINATE
RAISE
Which
factors
can
you
eliminate
that
your
industry
has
long
competed
on?
Which
factors
should
be
raised
well
above
the
industry’s
standard?
REDUCE
CREATE
Which
factors
should
be
reduced
well
below
the
industry
standard?
Which
factors
should
be
created
that
the
industry
has
never
offered?
BLUE OCEAN

33. APPLY BUSINESS
MODEL PATTERNS
CHEAP INKJET PRINTERS ENCOURAGE
YOU TO BUY EXPENSIVE CARTRIDGES
Top 20%
Focus on a small
Number of products,
Each selling in high volume
LONG TAIL
Focus on a lage number of products,
each selling in low volumes
#"of"products"
#"of"sales"

34. OFFER
DISTRIBUTION
CHANNELS
CUSTOMER
RELATIONSHIPS
CUSTOMER
SEGMENTS
REVENUE STREAMSCOST STRUCTURE
KEY
ACTIVITIES
PARTNER
NETWORK
KEY
RESOURCES
The Multi-Sided Platform Pattern
Revenue flow 2
Revenue flow 1
Value
Proposition 1
Customer
Segment 1
Value
Proposition 2
Customer
Segment 2
Platform
Platform
Management
Service
Provisioning
Platform
Promotion
Possible
Revenue flow
Subsidy
Platform Management and
Development
FROM OWNING TO USING

35. 4 epicenters of innovation
Resource driven Proposition driven
Customer driven Revenue driven

36. LOOK AT THE
CURRENT BUSINESS
MODEL…
… AND WRITE
DOWN THE 3 MOST
IMPORTANT
PRODUCTS OR
SERVICES
REMOVE NUMBER 1! WHAT WILL YOU DO?

37. “WHAT IF….?”

38. WHERE ELSE
CAN WE SELL
OUR PRODUCTS
WHICH PARTNERS
CAN ADD EVEN
MORE VALUE
WHICH
SERVICES CAN
WE OFFER
HOW CAN WE
IMPROVE OUR
RELATIONSHIP WITH
OUR CUSTOMERS
HOW CAN WE
ELIMINATE
FIXED COSTS
BIG DATA
HOW CAN WE
DOUBLE OUR
TOTAL
REVENUES
WHAT IF WE
OFFER OUR
PRODUCT FOR
FREE
HOW CAN WE
IMPROVE OUR
CUSTOMERS LIFE
WHICH NEW
CUSTOMER
SEGMENTS
CAN WE SERVE
WHAT IF YOU
WOULD SELL A
SUBSCRIPTION
OUR WORST
NIGHTMARE

39. BUSINESS MODEL OPTION
WHAT KIND OF
RELATIONSHIP DO WE
MAINTAIN WITH OUR
CUSTOMERS?
PERSONAL CONTACT?
AUTOMATIC? SELF-
SERVICE?
THROUGH WHAT
CHANNELS DO WE
DELIVER OUR
PRODUCTS AND
SERVICES?
WHAT CUSTOMER NEEDS DO WE
SATISFY?
WHAT PROBLEM DO WE HELP
OUR CUSTOMERS SOLVE?
WHAT ADVANTAGES DO OUR
PRODUCTS AND SERVICES
PROVIDE OUR CUSTOMERS
WITH?
WHAT PRODUCTS AND SERVICES
DO WE DELIVER TO OUR
CUSTOMERS
WHAT TYPE OF KEY
ACTIVITIES DO WE
PERFORM?
WHAT KEY
RESOURCES DOES
OUR PROPOSITION
REQUIRE?
PHYSICAL?
INTELLECTUAL?
HUMAN? FINANCIAL?
WHO ARE OUR KEY
PARTNERS?
WHAT IS OUR
MOTIVATION TO WORK
WITH PARTNERS?
WHAT KEY
RESOURCES DO WE
ACQUIRE THROUGH
PARTNERS?
WHAT KEY ACTIVITIES
DO OUR PARTNERS
PERFORM?
WHO IS OUR
CUSTOMER?
FOR WHOM DO WE
CREATE VALUE?
CAN WE
DISTINGUISH
DIFFERENT
CUSTOMER
SEGMENTS?
WHAT ARE THE INHERENT
COSTS IN OUR CURRENT
BUSINESS MODEL?
WHAT IS THE SIZE OF
EACH COST?
WHAT REVENUE
STREAMS DO WE
GENERATE?
WHAT IS THE SIZE OF EACH
REVENUE STREAM?

40. EVALUATION AND
QUALIFICATION

42. BUSINESS MODEL
MECHANICS

43. DEF: BUSINESS MODEL MECHANICS
THE INNER WORKINGS OF AN
ORGANIZATION’S BUSINESS MODEL.
HOW THE BUILDING BLOCKS OF A
BUSINESS MODEL WORK TOGETHER
TO PRODUCE A BETTER OUTCOME
source: www.strategyzer.com

44. 6 QUESTIONS
HOW DO YOU PERFORM ON A SCALE FROM 0 TO 10?
0 102 4 6 8
source: www.strategyzer.com
MECHANICS:
SWITCHING COSTS
HOW EASY OR HARD IS IT FOR YOUR
CUSTOMER TO SWITCH TO ANOTHER
COMPANY?
source: www.strategyzer.com
MECHANICS:
RECURRING REVENUES
IS EVERY SALES A NEW EFFORT
(TRANSACTIONAL) OR WILL IT
RESULT IN FOLLOW-UP REVENUES
AND PURCHASES?
source: www.strategyzer.com
MECHANICS:
EARN BEFORE YOU SPEND
ARE YOU EARNING MONEY BEFORE
YOU ARE SPENDING IT (E.G. FOR
PRODUCTION, PLATFORMS ETC.)?
source: www.strategyzer.com

45. MECHANICS:
GAME CHANGING COST
STRUCTURE
IS YOUR COST STRUCTURE
SUBSTANTIALLY DIFFERENT AND
BETTER THAN THAT OF
COMPETITORS?
source: www.strategyzer.com
MECHANICS:
GETTING OTHERS TO DO THE
WORK
HOW MUCH DOES YOUR BUSINESS
MODEL GET CUSTOMERS OR THIRD
PARTIES TO CREATE VALUE FOR YOU?
source: www.strategyzer.com
MECHANICS:
SCALABILITY
HOW RAPIDLY AND HOW EASILY CAN
YOU GROW YOUR BUSINESS MODEL
WITHOUT HITTING ROADBLOCKS (E.G.
INFRASTRUCTURE, CUSTOMER
SUPPORT ETC.)
source: www.strategyzer.com
WHAT IS YOUR
SCORE?

46. BUSINESS MODEL
VALIDATION

47. THINK ABOUT YOUR
NEW BUSINESS
MODEL AS IF YOU
ARE A START-UP

48. What IS actually a start-up?!

49. “A START-UP IS NOT
A SMALL VERSION
OF A LARGE
COMPANY.”
Steve%Blank%
A START-UP IS A
TEMPORARY
ORGANIZATION IN
SEARCH FOR A
PROFITABLE, SCALABLE
AND REPEATABLE
BUSINESS MODEL.
A START-UP IS
ABOUT SEARCHING
Steve%Blank%
A (LARGE) COMPANY
IS ABOUT
EXECUTION
Steve%Blank%

50. YOU NEED TO
CLARIFY YOUR
ASSUMPTIONS
YOU NEED TO TEST
YOUR ASSUMPTIONS
Source: Alex Osterwalder Instagram
GET OUT OF THE BUILDING…

51. WATCH FIRST, THEN ASK LOOK FOR NEEDS, NOT SOLUTIONS
PIVOT YOUR
BUSINESS MODEL
STOP FEATURITIS NOW

52. 10 TIPS FOR
BUSINESS MODEL
INNOVATION

53. 1
START WITH THE AS-IS.
MAP THE CURRENT
BUSINESS MODEL,
CONTEXT AND VISION ON A
LARGE POSTER WITH 3M
POST IT NOTES.

54. 2
DON’T TRY THIS
ALONE.
LET YOUR
COLLEAGUES OR
FRIENDS HELP YOU!

55. 3
LEARN FROM OTHER
BUSINESS MODELS!

56. 4
APPLY BUSINESS
MODEL PATTERNS.

57. 5
THINK AS A BUSINESS
MODEL DESIGNER.
DO NOT RELY ON 1
MODEL, BUILD
PROTOTYPES
PROTOTYPING LET’S YOU FAIL
EARLY TO SUCCEED SOONER
IDEO.COM
“
”

58. 6
“VISIT THE FUTURE
FREQUENTLY!”

59. 7
“SHOW ME THE
MONEY!”

60. 8
“DRAWING IS THE
NEW WRITING”
THINK & WORK
VISUALLY!

61. 9
DON’T RELY ON
YOUR
ASSUMPTIONS.

62. JUST DO IT!
10

64. CONTACT US FOR MORE INFORMATION!
MAAIKE DOYER STRATEGY DESIGNER
E: maaike.doyer@businessmodelsinc.com
T: +31 6 81 82 25 18
W: www.businessmodelsinc.com
PATRICK VAN DER PIJL CEO & FOUNDER
E: patrick.van.der.pijl@businessmodelsinc.com
T: +31 6 51 29 57 78
W: www.businessmodelsinc.com

65. DESIGNING BETTER BUSINESSESDESIGNING BETTER BUSINESSES