Business Model Innovation

1. BUSINESS MODEL INNOVATION Professor Peter Fisk IE Business School, 31 January 2020 www.theGeniusWorks.com

2. Change, Disruption and Growth Innovating the Business Business Model Innovation New Business Models Designing a New Business Model

3. How do you see the future?

4. Change, Disruption and Growth

5. We live in an incredible time

6. Mercedes Benz AVTR

7. Hyundai’s Uber Elevate

8. Doosan’s H Fuel Cell Drone

9. 2020s … a decade of incredible change More change in the next 10 years Than in the last 250 years

10. Personal healthcare for $99

11. Better and better than the real thing

12. Alibaba’s gamified $38bn day

13. 2.2bn people now play esports

14. Reliance’s “free” Jio phone in India

15. Glossier’s C2C beauty model

16. Maersk’s blockchain logistics

17. 3D printed homes for $4000

18. Anything is possible

19. Example: $145bn disruption to financial servicesWhat does the mean for education? +genius A world of relentless change

20. A world of relentless change

24. Meituan Dianping

27. The future isn’t like it used to be © Peter Fisk 2019 FUTUREHISTORY Unpredictable Predictable Stability Efficiency Optimisation Agility Innovation Experimentation

28. A world of relentless change Source: Oeean Tomo

31. Changing the rules of business

32. Rise of the $1 billion “unicorns” …

33. … 326 “unicorns” disrupting every sector

34. Bytedance … the world’s largest “unicorn”

35. • Shifting economic power • Resource scarcity • Technological breakthrough • Social change • Rapid urbanisation Sources: BlackRock, Bloomberg, Deloitte, IFTF, McKinsey, PwC, WEF, World Bank Megatrends 2020-2030

36. 1. Shifting economic power Share of world GDP (PPPs) from 2016 to 2030 China will be the new global superpower Emerging economies are the growth markets Asia also has huge untapped natural resources Chinese entrepreneurial growth is relentless Power shift from west to east Learn from the east not the west CHANGESIMPACTS Sources: BlackRock, Bloomberg, Deloitte, IFTF, McKinsey, PwC, WEF, World Bank Megatrends 2020-2030

37. 2. Resource scarcity Increase carbon emissions drive global warming Increase strain on the planet’s resources Oil becomes increasingly scarce resource Shift from oil to clean energy More produce, less inputs Transformation of carbon-based mobility CHANGESIMPACTS Sources: BlackRock, Bloomberg, Deloitte, IFTF, McKinsey, PwC, WEF, World Bank Megatrends 2020-2030

38. 3. Technological breakthrough Data is the new oil; data connects the world Pace of technological change is exponential Technology increasingly automates humanity AI and robotics drive improved lifestyles Connected and intelligent life Healthcare is fundamentally transformed by tech CHANGESIMPACTS Annual growth rates of emerging technologies Growth of global data (1ZB is a trillion GB) Sources: BlackRock, Bloomberg, Deloitte, IFTF, McKinsey, PwC, WEF, World Bank Megatrends 2020-2030

39. 4. Social change More older people, fewer younger people Global population continues to grow More inequality, more migration, more diversity Food demand and diverse preferences Healthcare revolution for ageing population Nations become less meaningful CHANGESIMPACTS Sources: BlackRock, Bloomberg, Deloitte, IFTF, McKinsey, PwC, WEF, World Bank Megatrends 2020-2030 Global migration

40. 5. Rapid urbanisation Megatrends 2020-2030 Life is better in cities Global migration to cities Growth of Asian and African megacities Healthcare and security become key Smart cities, new infrastructure Cities become more powerful than nations CHANGESIMPACTS Sources: BlackRock, Bloomberg, Deloitte, IFTF, McKinsey, PwC, WEF, World Bank

41. Emerging themes for action Megatrends 2020-2030 Sources: Deloitte

42. East Small West Big ProfitVolume

43. Consumer Pull Individual Business Push Average

44. ImaginationCapability IntangibleTangible ExponentialImprovement

45. Alibaba … from business directory to ecosystem

46. Alibaba … from business directory to ecosystem

47. Alibaba … B2B+B2C+C2C = Data

48. A world of limitless opportunity

49. Change, Disruption and Growth Innovating the Business

50. EMOTIONAL INTUITIVE CONNECTED

51. RATIONAL ANALYTICAL FOCUSED

52. EMOTIONAL INTUITIVE CONNECTED RATIONAL ANALYTICAL FOCUSED

53. INTELLIGENT + IMAGINATIVE

54. Future Today Change Stability Society Business Humans Machines Insurgents Incumbents Experimental Structured Global Local Tensions of the 21st Century Business

55. How to find a better way? © Peter Fisk 2019

56. 20th Century vs 21st Century Business © Peter Fisk 2019 Today Future Corporates Ecosystems Optimisation Innovation Physical Digital Hierarchies Networked Experts Integrators Functions Projects Analytical Intuitive Shareholders Society Profit Progress

57. DNAofthe21stCenturyBusiness The 21st Century Business is enlightened and energised by a changing world. It harnesses the power of human ingenuity and intelligent technologies to be a force for progress in society, creating and sharing value amongst all participants. DNAofthe21stCenturyBusiness

58. What is leadership style? How does it engage talent? How does it set direction and priorities? What is the culture of the business? What is the market approach? What is the organisation structure? How does it innovate and progress? What is the impact which results? DNAofthe21stCenturyBusiness © Peter Fisk 2019 How does it operate and deliver? DNAofthe21stCenturyBusiness

59. • Future shaping • Embracing ambiguity • Integrating people • Driving change • Amplifying potential INSPIRING LEADERSHIP • Diverse teaming • Project clusters • Dynamic resourcing • Continual learning • Augmenting humanity CREATIVE TALENT • Meaningful purpose • Focused relevance • Leveraged assets • Self-tuning adaption • Evolving portfolio DYNAMIC STRATEGY • Growth mindset • Energising spirit • Collective momentum • Transparent and ethical • Continuous learning PROGRESSIVE CULTURE • Customer sensing • Moonshot thinking • Market multipliers • Experiential brands • Communally engaging MARKET MAKING • Network structure • Butterfly centred • Intelligent automation • Positive sustainability • Smart ecosystem AGILE ORGANISATION • Deep insight • Intuitive design • Technology enabled • Fast experimentation • Adapt and scale RELENTLESS INNOVATION • Customer enabling • Growth accelerating • Society enhancing • Personally fulfilling • Future sustaining EXPONENTIAL IMPACT DNAofthe21stCenturyBusiness © Peter Fisk 2019 • Aligned delivery • Efficient processes • Fast and precise • Collaborative working • Metrics and rewards SEAMLESS ACTION DNAofthe21stCenturyBusiness

60. ARMARM Technologies

61. AI as rocket fuel for business

62. AliveCor electrocardiogram Drive.ai autonomous vehicles Infervision radiology analytics tion systems American Express fraud detection Grammarly better writing Lemonade cheaper insurance Pinterest Lens instant shopping Burberry personal shopping HeartFlow diagnostics Netflix personal movies Rare Carat real diamonds Darktrace cyber security Barbie is your best friend Nvidia virtual worlds Symrise perfect fragrances AI as rocket fuel for business

63. Google’s Moonshot Factory

64. Why be 10% better? When you could be 10x better?

65. es 1. 23 & Me 2. Aravind 3. CVS Health 4. Editas 5. Intuitive Surgical 6. Narayana Hosp 7. OneOme 8. Organova 9. PatientsLikeMe 10. Second Sight 1. Amazon 2. Aussie Farmers 3. Casper 4. Etsy 5. Glossier 6. Positive Luxury 7. Rapha 8. Supreme 9. Trader Joe’s 10. Warby Parker 1. Apple 2. Beauty’in 3. DJI 4. Go Pro 5. Lego 6. Method 7. Natura 8. Nike+ 9. Oculus Rift 10. Renova 1. Alibaba 2. ARM 3. Darktrace 4. Google X 5. Huawei 6. Magic Leap 7. Raspberry Pi 8. Reliance Jio 9. Samsung 10. Tencent 1. Aeromobil 2. Air Asia 3. Airbnb 4. Emirates 5. HyperloopOne 6. Kulula 7. Ofo 8. RedBus 9. Uber 10. Zipcars 1. 3DHubs 2. Aerofarms 3. Braskem 4. Corning 5. Dyson 6. Local Motors 7. Space X 8. Syngenta 9. Tata 10. Tesla 1. Ava Winery 2. Brewdog 3. GrameenDanone 4. Graze 5. HelloFresh 6. Juan Valdez 7. LA Organic 8. Moa Beer 9. Nespresso 10. Zespri 1. 1Atelier 2. Agua Bendita 3. Fenty Beauty 4. Jonny Cupcake 5. Patagonia 6. RentTheRunway 7. Shang Xia 8. Stitch Fix 9. Threadless 10. Tom’s 1. Aspiration 2. Comm Bank 3. Fidor 4. First National 5. Moven 6. M-Pesa 7. Square 8. Umpqau 9. Zidisha 10. Zhong An 1. Buzzfeed 2. ByteDance 3. FanDual 4. Dalian Wanda 5. Live Nation 6. Netflix 7. Red Bull 8. Udacity 9. Ushahida 10. ViceMedia futureproduct futurefashion futurefood futurehealth futuretech futuremakersfuturebank futuretravel T h e p N/S American brands European brands African/Arab brands Asia/Pacific brands futuremedia 1. Ashoka 2. IBM Watson 3. IDEO 4. Janicki BioEnergy 5. Kickstarter 6. Li & Fung 7. Planetary Resrcs 8. Scanadu 9. VIPKid 10. WeWork 1. Bitcoin 2. City FC 3. Collectivity 4. e-Estonia 5. ParkRun 6. Patreon 7. PewDiePie 8. Social Capital 9. The Muse 10. You futureservice futurebrands © Peter Fisk 2018 peterfisk@peterfisk.com www.theGeniusWorks.com futurestore

66. Hyperloop JioPhone H&M Amazon Change Why Speed

67. Li and Fung Tencent Alibaba 3DHubs networked

68. DeepMind Fidor Bank Netflix Intuitive Surgical intelligent

69. Airbnb Nike+ Lego Glossier collaborative

70. audacious Google X Red Bull Syngenta Nike

71. 4waystochangethegame

72. ChangeWHY

73. +genius Rocket’s Creative Beer

74. ChangeWHO

75. +genius Lululemon’s Yoga Beer for women

76. ChangeWHAT

77. Ceria’s cannabis-infused beer

78. ChangeHOW

79. +genius Beer 52 by Subscription

80. 4waystochangethegame

81. © GeniusWorks 2020 www.theGeniusWorks.com Profit model Finance Networking 2. Networking ecosystem 1. Business model how the enterprise makes money Channel Experience Brand Customer engagement 9. Brand how you express your offering’s benefit to customers Process Configuration Structure 3. Organisation and capabilities 4. Core process proprietary processes that add value 6. Product system extended system that surrounds an offering Product performance Offering Product system Service 7. Service how you service your customers 5. Product performance basic features, performance and functionality 8. Channel how you connect your offerings to your customers 10. Customer engagement how you create an overall experience for customers 10 types of innovation

82. Volume of innovation efforts Last 10 years Profit model Finance Networking Channel Experience Brand Customer engagement Process Configuration Structure Product performance Offering Product system Service 10 types of innovation

83. Profit model Finance Networking Channel Experience Brand Customer engagement Process Configuration Structure Product performance Offering Product system Service Cumulative value creation Last 10 years 10 types of innovation

84. Profit model Finance Networking 2. Networking ecosystem 1. Business model how the enterprise makes money Channel Experience Brand Customer engagement 10. Customer experience how you create an overall experience for customers 9. Brand how you express your offering’s benefit to customers Process Configuration Structure 3. Organisation and capabilities 4. Core process proprietary processes that add value 6. Product system extended system that surrounds an offering Product performance Offering Product system Service 7. Service how you service your customers 5. Product performance basic features, performance and functionality 8. Channel how you connect your offerings to your customers 10 types of innovation

85. 10 types of innovation

86. 10 types of innovation

87. Profit model Finance Networking 2. Networking ecosystem 1. Business model how the enterprise makes money Channel Experience Brand Customer engagement 10. Customer experience how you create an overall experience for customers 9. Brand how you express your offering’s benefit to customers Process Configuration Structure 3. Organisation and capabilities 4. Core process proprietary processes that add value 6. Product system extended system that surrounds an offering Product performance Offering Product system Service 7. Service how you service your customers 5. Product performance basic features, performance and functionality 8. Channel how you connect your offerings to your customers 10 types of innovation

88. CustomerBusiness Rethink Purpose © Peter Fisk 2018 www.theGeniusWorks.com

89. © Peter Fisk 2015 More details in the new “Gamechangers” book +genius Rethink Propositions Segment Motivation Key benefit Value proposition Segment Motivation Key benefit Value proposition Segment Motivation Key benefit Value proposition

90. +genius What do you enable people to do?

91. © Peter Fisk 2015 More details in the new “Gamechangers” book +genius Rethink business models Make and distribute business model eg CocaCola Microsoft Spectrum retail business model eg Amazon Marks & Spencer Make and sell direct business model eg BMW, HSBC Niche retail business model eg ToysRUs,Wiggle License to make business model eg ARM, Ed Hardy Curated retail business model eg Fab, Positive Luxury Membership club business model eg Costco, Quintessentially Crowdfunded ventures business model eg Kickstarter, Zidisha Opensourced community business model eg RedHat, MySQL Subscription payment business model eg FT.com, Graze Buyer and seller marketplace business model eg Etsy, NYSE Micro payments business model eg Flattr Grameen Danone Collaborative consumption business model eg Buzzcar, Regus Regular Replacement business model eg Gillette, Nespresso Branded Consortia business model eg Cisco, Spar Advertising or Sponsorship business model eg Google, Metro Newspapers Listed or Promoted business model eg Monster Linkedin Network builders business model eg Hotmail, Twitter Demand then Made business model eg ZaoZao, Threadless Auction retail business model eg eBay, Sotheby Knowledge and time business model eg McKinsey, Harvard Franchised retail business model eg McDonalds, Subway Certification and endorsement business model eg ISO, Verisign Remainder retail business model Eg Saks, Vente Privee Multulevel marketing business model eg Tupperware, Natura Group buying business model eg Groupon, Huddlebuy Reverse auction business model eg Priceline Freemarkets Shared rental business model eg Zilok, Hilton Tradeable currency business model eg Bitcoin Air Miles Freemium pay within business model eg Angry Bird, Coursera Transaction facilitator business model eg Paypal, Visa Pay as you go business model eg AzuriTech Techshop Dynamic pricing business model eg Expedia, Uber Reputation builders business model eg Tripadvisor, PaywithaTweet Customer data business model eg Facebook, 23andMe Non-profit business business model eg Oxfam Wikipedia Maker models Channel models Crowd models Payment models Exchange models Asset models

92. +genius

93. +genius

94. © Peter Fisk 2015 More details in the new “Gamechangers” book +genius Rethink experiences

95. © Peter Fisk 2015 More details in the new “Gamechangers” book +genius Juan Valdez Cafe

96. +genius Juan Valdez Cafe

97. © Peter Fisk 2015 More details in the new “Gamechangers” book +genius Rethink experiences

98. !© Peter Fisk 2015 More details in the new “Gamechangers” book +genius Rethink relationships

99. Rapha Cycle Club

100. Rapha Cycle Clubs +genius

101. Change, Disruption and Growth Innovating the Business Business Model Innovation

102. The Emergence of New Business Models +genius

103. +genius Digital disruption

104. +genius Business Models

105. Donut selling Low priced core than sell extras Ryanair SAP Affiliate selling Helping others to sell products Amazon Pinterest Auction platform Selling other products to highest bid Ebay Elance Barter goods Exchange goods, no money Pay/Tweet Barterbook Cash advance Customer pays before goods made Dell Groupon Cross selling Sell adjacent products to sell more Tchibo Shell Crowd funding Financed by fans as first consumers Pebble Brainpool Crowd sourcing Ideas from customers for reward Threadless P&G Digital Formats Turning physical into digital goods Netflix Dropbox Direct selling Brand sold direct to customer FirstDirect AussieFarm selling Customer buys more than product Harley Dav Red Bull Flat rate pricing Single fee or subscrip. for unlimited use Netflix Sandals Fractional Ownership Customers each own shares Netjets Homebuy Franchise brand Licensing format for a fee and % Spar Lufthansa Freemium payment Free basic then charge for premium Skype Spotify Guarantee avaiiable Availability becomes key promise Netjets Hilti Guarantee replace Builds trust in quality and loyalty Timberland Tumi revenue Alternative sources, eg advertising Google Metro Ingredient branding Branded part other brand proposition Goretex Intel Integrated supply Efficiency through supply chain Zara ExxonMobil Brand Curator Bringing together best brands Fab Pos.Luxury Functional specialist Adding one expert step to others PayPal Trust-e Data Leverage Reselling aggregated customer data Facebook 23andMe License brand License brand or patent IP Ed Hardy ARM Unique Format Lock-in to compatible formats HP iTunes Long tail range Offer huge range to many niches Amazon iTunes Mass Customise Make it personal for each person Dell BMW No Frills Simple and minimal spec at lower cost Southwest Accor Open Source Make IP available to everyone Android Tesla Solution Integrator Connecting all sources and partners Li & Fung Accenture Pay per use Payment metered by use or time Zipcars Azuri Tech Pay what you want Customer choose the price Radiohead Panera Shared use Customers buy same product Airbnb RelayRides Peer to Peer Customers buy from customers Craigslist Zopa Results based Price based on agreed outcomes Rolls Royce Xerox Razor and Blade Low price core, high price refills Gillette Nespresso Rent don’t buy Time based fee for period of use Xerox Regus Revenue sharing Share with others to inc custom base AA/BA App Store Reverse Innovate Sell simple products in mainstream Haier OneLaptop One for One Charge the rich to fund the poor Toms Narayana Self service Customers do more themselves IKEA McDonalds Quality assurance Certification and trusted endorsement ISO Verisign Multilevel marketing Pyramid of customer selling Tupperware Avon Subscribe to it Customer pays regular fee Time DollarShave Bottom of pyramid Tailor offer to less wealthy customers Tata Nano Walmart Trash to cash Turn waster into new products Braskom Ekocycle Dynamic pricing Prices changes by demand Priceline WallSt Bar Co-create Design Customers are co- designers of products Threadless Local Motors White label Make products for another brand Cott McBride Doing good Benefits society or environment Oxfam Ecotricity Experience Advertising © GeniusWorks 2017 Business models … 50 archetypes to adopt and adapt +genius

106. Nespresso’s business model

107. +genius Tesla’s business model

108. +genius

109. +genius

110. +genius

111. Airbnb +genius

112. Uber +genius

113. eBay +genius

114. What is Google’s business model? +genius

115. 7 Business Model Shifts +genius Digital Services Relationships Sustainable Platforms Stakeholder Exponential Physical Products Transactions Resourceful Sales Shareholders Linear

116. The Power of Networks +genius

117. Exponential growth

118. Fingernail Notebook Hand House Earth 3folds Thickness of folder paper 7 folds 10 folds 17 folds 30 folds What does “exponential” really mean?

119. © Peter Fisk 2019 The Platform Revolution

120. The Platform Revolution

121. The Platform Revolution

122. Donut selling Low priced core than sell extras Ryanair SAP Affiliate selling Helping others to sell products Amazon Pinterest Auction platform Selling other products to highest bid Ebay Elance Barter goods Exchange goods, no money Pay/Tweet Barterbook Cash advance Customer pays before goods made Dell Groupon Cross selling Sell adjacent products to sell more Tchibo Shell Crowd funding Financed by fans as first consumers Pebble Brainpool Crowd sourcing Ideas from customers for reward Threadless P&G Digital Formats Turning physical into digital goods Netflix Dropbox Direct selling Brand sold direct to customer FirstDirect AussieFarm selling Customer buys more than product Harley Dav Red Bull Flat rate pricing Single fee or subscrip. for unlimited use Netflix Sandals Fractional Ownership Customers each own shares Netjets Homebuy Franchise brand Licensing format for a fee and % Spar Lufthansa Freemium payment Free basic then charge for premium Skype Spotify Guarantee avaiiable Availability becomes key promise Netjets Hilti Guarantee replace Builds trust in quality and loyalty Timberland Tumi revenue Alternative sources, eg advertising Google Metro Ingredient branding Branded part other brand proposition Goretex Intel Integrated supply Efficiency through supply chain Zara ExxonMobil Brand Curator Bringing together best brands Fab Pos.Luxury Functional specialist Adding one expert step to others PayPal Trust-e Data Leverage Reselling aggregated customer data Facebook 23andMe License brand License brand or patent IP Ed Hardy ARM Unique Format Lock-in to compatible formats HP iTunes Long tail range Offer huge range to many niches Amazon iTunes Mass Customise Make it personal for each person Dell BMW No Frills Simple and minimal spec at lower cost Southwest Accor Open Source Make IP available to everyone Android Tesla Solution Integrator Connecting all sources and partners Li & Fung Accenture Pay per use Payment metered by use or time Zipcars Azuri Tech Pay what you want Customer choose the price Radiohead Panera Shared use Customers buy same product Airbnb RelayRides Peer to Peer Customers buy from customers Craigslist Zopa Results based Price based on agreed outcomes Rolls Royce Xerox Razor and Blade Low price core, high price refills Gillette Nespresso Rent don’t buy Time based fee for period of use Xerox Regus Revenue sharing Share with others to inc custom base AA/BA App Store Reverse Innovate Sell simple products in mainstream Haier OneLaptop One for One Charge the rich to fund the poor Toms Narayana Self service Customers do more themselves IKEA McDonalds Quality assurance Certification and trusted endorsement ISO Verisign Multilevel marketing Pyramid of customer selling Tupperware Avon Subscribe to it Customer pays regular fee Time DollarShave Bottom of pyramid Tailor offer to less wealthy customers Tata Nano Walmart Trash to cash Turn waster into new products Braskom Ekocycle Dynamic pricing Prices changes by demand Priceline WallSt Bar Co-create Design Customers are co- designers of products Threadless Local Motors White label Make products for another brand Cott McBride Doing good Benefits society or environment Oxfam Ecotricity Experience Advertising Business models … 50 archetypes to adopt and adapt © GeniusWorks 2017

123. The Business Model Canvas

124. What products and services do we bring together for our customers? Customers Communication PartnersOfferings Channels Relationships Processes Revenue streams Pricing models Cost streams Investments Who are our target segments of customers and users? Which types of distribution channels will we use to reach customers? What kind of relationship do customers seek with us, and each other? Who are the external partners to help us create and deliver the offerings? What benefits do we enable our customers to achieve? What are the main internal activities to create and deliver the offerings? What are the main sources of revenue, and which could be largest? How, when and how often will we charge customers? What are the most significant ongoing costs to create and deliver the offerings? How much do we need to spend before we start earning? Proposition Resources What are the main internal resources to create and deliver the offerings? Products & Services What brand do we use? What are the key messages, and how do we engage customers? What distinctive assets do we have to use in existing or new ways? Assets THE BUSINESS MODEL CANVAS © GeniusWorks 2018 www.theGeniusWorks.com THE BUSINESS MODEL CANVAS

125. What products and services do we bring together for our customers? Customers Communication PartnersOfferings Channels Relationships Processes Revenue streams Pricing models Cost streams Investments Who are our target segments of customers and users? Which types of distribution channels will we use to reach customers? What kind of relationship do customers seek with us, and each other? Who are the external partners to help us create and deliver the offerings? What do we do together better than our competitors? What benefits do we enable our customers to achieve? What are the main internal activities to create and deliver the offerings? What are the main sources of revenue, and which could be largest? How, when and how often will we charge customers? What are the most significant ongoing costs to create and deliver the offerings? How much do we need to spend before we start earning? Proposition Resources What are the main internal resources to create and deliver the offerings? Advantages Products & Services What brand do we use? What are the key messages, and how do we engage customers? Demand Supply THE BUSINESS MODEL CANVAS © GeniusWorks 2018 www.theGeniusWorks.com THE BUSINESS MODEL CANVAS

126. What products and services do we bring together for our customers? Customers Communication PartnersOfferings Channels Relationships Processes Revenue streams Pricing models Cost streams Investments Who are our target segments of customers and users? Which types of distribution channels will we use to reach customers? What kind of relationship do customers seek with us, and each other? Who are the external partners to help us create and deliver the offerings? What do we do together better than our competitors? What benefits do we enable our customers to achieve? What are the main internal activities to create and deliver the offerings? What are the main sources of revenue, and which could be largest? How, when and how often will we charge customers? What are the most significant ongoing costs to create and deliver the offerings? How much do we need to spend before we start earning? Proposition Resources What are the main internal resources to create and deliver the offerings? Advantages Products & Services What brand do we use? What are the key messages, and how do we engage customers? Markets and Customer Insights Future Trends and Technologies Society and Competitors Business Strategy and Context Capital and Regulation Value chain and Resources THE BUSINESS MODEL CANVAS © GeniusWorks 2018 www.theGeniusWorks.com THE BUSINESS MODEL CANVAS

127. What products and services do we bring together for our customers? Customers Communication Offerings Channels Relationships Revenue streams Pricing models Who are our target segments of customers and users? Which types of distribution channels will we use to reach customers? What kind of relationship do customers seek with us, and each other? What benefits do we enable our customers to achieve? What are the main sources of revenue, and which could be largest? How, when and how often will we charge customers? Proposition Products & Services What brand do we use? What are the key messages, and how do we engage customers? THE BUSINESS MODEL CANVAS … demand side © GeniusWorks 2018 www.theGeniusWorks.com

128. What products and services do we bring together for our customers? Customers Communication Offerings Channels Relationships Revenue streams Pricing models Who are our target segments of customers and users? Which types of distribution channels will we use to reach customers? What kind of relationship do customers seek with us, and each other? What benefits do we enable our customers to achieve? What are the main sources of revenue, and which could be largest? How, when and how often will we charge customers? Proposition Products & Services What brand do we use? What are the key messages, and how do we engage customers? THE BUSINESS MODEL CANVAS … demand sideTHE BUSINESS MODEL CANVAS … demand side © GeniusWorks 2018 www.theGeniusWorks.com

131. © GeniusWorks 2018 www.theGeniusWorks.com What products and services do we bring together for our customers? PartnersOfferings Processes Cost streams Investments Who are the external partners to help us create and deliver the offerings? What benefits do we enable our customers to achieve? What are the main internal activities to create and deliver the offerings? What are the most significant ongoing costs to create and deliver the offerings? How much do we need to spend before we start earning? Proposition Resources What are the main internal resources to create and deliver the offerings? Products & Services What distinctive assets do we have to use in existing or new ways? Assets THE BUSINESS MODEL CANVAS … supply sideTHE BUSINESS MODEL CANVAS … supply side

132. What products and services do we bring together for our customers? PartnersOfferings Processes Cost streams Investments Who are the external partners to help us create and deliver the offerings? What benefits do we enable our customers to achieve? What are the main internal activities to create and deliver the offerings? What are the most significant ongoing costs to create and deliver the offerings? How much do we need to spend before we start earning? Proposition Resources What are the main internal resources to create and deliver the offerings? Products & Services What distinctive assets do we have to use in existing or new ways? Assets THE BUSINESS MODEL CANVAS … supply side © GeniusWorks 2018 www.theGeniusWorks.com THE BUSINESS MODEL CANVAS … supply side

133. What products and services do we bring together for our customers? PartnersOfferings Processes Cost streams Investments Who are the external partners to help us create and deliver the offerings? What benefits do we enable our customers to achieve? What are the main internal activities to create and deliver the offerings? What are the most significant ongoing costs to create and deliver the offerings? How much do we need to spend before we start earning? Proposition Resources What are the main internal resources to create and deliver the offerings? Products & Services What distinctive assets do we have to use in existing or new ways? Assets THE BUSINESS MODEL CANVAS … supply side © GeniusWorks 2018 www.theGeniusWorks.com THE BUSINESS MODEL CANVAS … supply side

134. What products and services do we bring together for our customers? Customers Communication PartnersOfferings Channels Relationships Processes Revenue streams Pricing models Cost streams Investments Who are our target segments of customers and users? Which types of distribution channels will we use to reach customers? What kind of relationship do customers seek with us, and each other? Who are the external partners to help us create and deliver the offerings? What benefits do we enable our customers to achieve? What are the main internal activities to create and deliver the offerings? What are the main sources of revenue, and which could be largest? How, when and how often will we charge customers? What are the most significant ongoing costs to create and deliver the offerings? How much do we need to spend before we start earning? Proposition Resources What are the main internal resources to create and deliver the offerings? Products & Services What brand do we use? What are the key messages, and how do we engage customers? What distinctive assets do we have to use in existing or new ways? Assets THE BUSINESS MODEL CANVAS © GeniusWorks 2018 www.theGeniusWorks.com THE BUSINESS MODEL CANVAS

135. What products and services do we bring together for our customers? Customers Communication PartnersOfferings Channels Relationships Processes Revenue streams Pricing models Cost streams Investments Who are our target segments of customers and users? Which types of distribution channels will we use to reach customers? What kind of relationship do customers seek with us, and each other? Who are the external partners to help us create and deliver the offerings? What benefits do we enable our customers to achieve? What are the main internal activities to create and deliver the offerings? What are the main sources of revenue, and which could be largest? How, when and how often will we charge customers? What are the most significant ongoing costs to create and deliver the offerings? How much do we need to spend before we start earning? Proposition Resources What are the main internal resources to create and deliver the offerings? Products & Services What brand do we use? What are the key messages, and how do we engage customers? © GeniusWorks 2015 www.theGeniusWorks.com 1 2 3 4 6 7 What distinctive assets do we have to use in existing or new ways? Assets 5 THE BUSINESS MODEL CANVAS

136. Change, Disruption and Growth Innovating the Business Business Model Innovation New Business Models

137. Example: Innovation in the Energy Sector

138. “The Most Innovative Companies in Energy”

141. Innovative Business Models … Power2U Source BOI Power2U (Swedish, founded 2018) “helps property owners transform their buildings into profit-generating energy assets” Charges property owner an installation fee plus annual subscription fee for use of software • Reduces your costs and emissions through local sourcing • Cloud-based software controls and integrates energy assets • Connects property owners to energy grid to sell excess

142. Innovative Business Models … Power2U Source BOI

143. Innovative Business Models … Pivot Power Source BOI Pivot Power (UK, launched 2018, acquired by EDF) is building a battery storage network to help the UK create nationwide EV charging Three revenue flows – flat fee for services, maintenance fee, and charges EV owners for using stations. • Balancing supply and demand with increased volatility of renewables • More EV charging points will accelerate adoption of electric cars, • Priority is to create a meaningful network across nation

144. Innovative Business Models … Pivot Power Source BOI

145. Innovative Business Models … Turbulent Source BOI Turbulent (Belgium, founded 2015) builds micro-whirlpool turbines that generate electricity in areas with no access to the grid Sells its turbine tech for EUR60-300k and also charges fee for services, eg initial study, and maintenance • Easy to install in most rivers, producing enough water to power 60 homes • Allows users to be independent of the grid and sell excess back to providers • Minimal maintenance, will last at least 30 years

146. Innovative Business Models … Turbulent Source BOI

147. Innovative Business Models … Sun Exchange Source BOI Sun Exchange is a peer to peer lending platform that connects people wanting to invest in solar energy Charges a fee for each investment made by the community, earns a flat fee base don interest • Evaluates solar projects around world to determine technical, social, financial viability • Investors purchase solar cells from approved projects through crowd sale • Investors receive returns based on the electricity that the solar cells produce. Payment in bitcoin

148. Innovative Business Models … Sun Exchange Source BOI

149. Innovative Business Models … a new paradigm Source PwC

150. Innovative Business Models … the shift to services Source PwC

151. Innovative Business Models … industry roles Source PwC

152. Innovative Business Models … most popular Source FT/Reconteur

153. Source IDC/CapGemini

154. Making it happen Source IDC/CapGemini

155. Source IDC/CapGemini

156. “The World’s Most Sustainable Company 2020”

159. Change, Disruption and Growth Innovating the Business Business Model Innovation New Business Models Designing a New Business Model

160. What products and services do we bring together for our customers? Customers Communication Offerings Channels Relationships Revenue streams Pricing models Who are our target segments of customers and users? Which types of distribution channels will we use to reach customers? What kind of relationship do customers seek with us, and each other? What benefits do we enable our customers to achieve? What are the main sources of revenue, and which could be largest? How, when and how often will we charge customers? Proposition Products & Services What brand do we use? What are the key messages, and how do we engage customers? THE BUSINESS MODEL CANVAS … demand side What if? SELECTIVE You focus on customer niche or community What if? COMMUNITY You enable peer to peer connect and selling THE BUSINESS MODEL CANVAS … demand side © GeniusWorks 2018 www.theGeniusWorks.com

161. What products and services do we bring together for our customers? Customers Communication Offerings Channels Relationships Revenue streams Pricing models Who are our target segments of customers and users? Which types of distribution channels will we use to reach customers? What kind of relationship do customers seek with us, and each other? What benefits do we enable our customers to achieve? What are the main sources of revenue, and which could be largest? How, when and how often will we charge customers? Proposition Products & Services What brand do we use? What are the key messages, and how do we engage customers? THE BUSINESS MODEL CANVAS … demand side What if? INGREDIENT You are an ingredient in another brands offer What if? PREMIUM You are priced significantly higher than others What if? CUSTOMISED You offer selective/personal for premium THE BUSINESS MODEL CANVAS … demand side © GeniusWorks 2018 www.theGeniusWorks.com

162. What products and services do we bring together for our customers? Customers Communication Offerings Channels Relationships Revenue streams Pricing models Who are our target segments of customers and users? Which types of distribution channels will we use to reach customers? What kind of relationship do customers seek with us, and each other? What benefits do we enable our customers to achieve? What are the main sources of revenue, and which could be largest? How, when and how often will we charge customers? Proposition Products & Services What brand do we use? What are the key messages, and how do we engage customers? THE BUSINESS MODEL CANVAS … demand side What if? CROSS SELLING You sold other/partner products/services What if? OMNICHANNEL You add or combine channel experiences What if? LOCK-IN You sell core cheaply, charge for components THE BUSINESS MODEL CANVAS … demand side © GeniusWorks 2018 www.theGeniusWorks.com

163. What products and services do we bring together for our customers? Customers Communication Offerings Channels Relationships Revenue streams Pricing models Who are our target segments of customers and users? Which types of distribution channels will we use to reach customers? What kind of relationship do customers seek with us, and each other? What benefits do we enable our customers to achieve? What are the main sources of revenue, and which could be largest? How, when and how often will we charge customers? Proposition Products & Services What brand do we use? What are the key messages, and how do we engage customers? THE BUSINESS MODEL CANVAS … demand side What if? CASH MACHINE All payments must be received in advance What if? FREEMIUM You give it free, then charge for premium What if? PAY PER USE You only charge when product/service used What if? SUBSCRIPTION You charge one fee per period, unlimited use THE BUSINESS MODEL CANVAS … demand side © GeniusWorks 2018 www.theGeniusWorks.com

164. What products and services do we bring together for our customers? PartnersOfferings Processes Cost streams Investments Who are the external partners to help us create and deliver the offerings? What benefits do we enable our customers to achieve? What are the main internal activities to create and deliver the offerings? What are the most significant ongoing costs to create and deliver the offerings? How much do we need to spend before we start earning? Proposition Resources What are the main internal resources to create and deliver the offerings? Products & Services What distinctive assets do we have to use in existing or new ways? Assets THE BUSINESS MODEL CANVAS … supply side What if? LICENSING/FRANCHISING You license others to make or operate it What if? OPEN SOURCE You make IP available free, sell added value What if? PLATFORM You bring together customers and suppliers © GeniusWorks 2018 www.theGeniusWorks.com THE BUSINESS MODEL CANVAS … supply side

165. What products and services do we bring together for our customers? PartnersOfferings Processes Cost streams Investments Who are the external partners to help us create and deliver the offerings? What benefits do we enable our customers to achieve? What are the main internal activities to create and deliver the offerings? What are the most significant ongoing costs to create and deliver the offerings? How much do we need to spend before we start earning? Proposition Resources What are the main internal resources to create and deliver the offerings? Products & Services What distinctive assets do we have to use in existing or new ways? Assets THE BUSINESS MODEL CANVAS … supply side What if? CROWDFUNDED Your funding comes from people/participants © GeniusWorks 2018 www.theGeniusWorks.com THE BUSINESS MODEL CANVAS … supply side

166. What will you do?

167. Have a bigger vision +genius 1

168. Xiaomi, the new Apple

169. New disruptive technologies Big human challenges Radical innovations © Peter Fisk 2018 www.theGeniusWorks.com Solve important problems2

170. Accelerate ideas to action3

171. +genius Better view of the future Smarter ways to innovate Faster ability to implement © Peter Fisk 2018 www.theGeniusWorks.com

172. … aligning people, to accelerate the future together Have a growth mindset4

174. Acting with speed and agility Connecting ideas and people Passion to make life better Having an audacious attitude Shaping your own vision Making sense of change Persisting to make it happen © Peter Fisk 2018 www.theGeniusWorks.com

175. Be bold Be brave Be brilliant

176. How will you lead a better future? Peter Fisk is a global thought leader … on the future of business, innovation and growth. He is a business author, keynote speaker, business school professor and strategic advisor. With a physics degree, he managed brands like Concorde, led a strategy consulting firm, was CEO of the world’s largest professional marketing network, and co-founded a technology-based start-up. He is now: • Professor of Strategy and Innovation at IE Business School in Madrid, where he is also Academic Director of their flagship Global Advanced Management Program for senior executives. He combines leadership, strategy and innovation disciplines, driven by the challenges and opportunities a new world of technological change. • Founder of GeniusWorks, a future strategy consulting firm based in London, working with business leadership teams to help them explore their future growth. He combines a stretching, inspiring, methodological and collaborative approach to help teams achieve more together. • Director of Thinkers50 Global, bringing together the best ideas in the world for business, and ranks the world’s top business thinkers. He also founded and hosts the European Business Forum, held each year in the Danish city of Odense, which has become “the Davos of business thinking”. Author of 7 business books including Gamechangers which explores the innovative business strategies of 100 companies, Creative Genius on strategic innovation inspired by Leonard da Vinci, People Planet Profit on sustainability, and Marketing Genius, how to accelerate growth. The books have been translated into 35 languages. Works with the leadership teams of many innovative companies, including Adidas, Aeroflot, American Express, Bayer, BNP Paribas, Bosch, Cartier, Coca Cola, Coty, Disney, GSK, Koc, McKinsey, Microsoft, Nestle, Nordea, Pfizer, Proctor & Gamble, PwC, Red Bull, Samsung, Savola, UAE Government, Unilever, Virgin, Volkswagen, Zain, and many more. Email: peterfisk@peterfisk.com Web: www.theGeniusWorks.com

177. peterfisk@peterfisk.com theGeniusWorks.com @geniusworks