This document provides information on business model innovation and strategies for developing new business models. It discusses the challenges of business model innovation and provides examples of successful business models like Nokia, NovaUCD innovation hub, and Nespresso. Tools for business model development like the Business Model Canvas and Value Proposition Canvas are introduced. The document also discusses patterns of innovative business models from the University of St. Gallen and strategies for generating new business model ideas through transfer, combination, and leverage. Finally, it provides steps for product launch and outlines a workshop activity to develop a business model canvas for HEBE Adventures.

1. Business Model Innovation
Rohan Perera & Raomal Perera

2. It is not the strongest of the species that
survive, nor the most intelligent, but the
one most responsive to change.
Charles Darwin

3. Nokia CEO ended his speech saying this
During the press conference to announce
Nokia being acquired by Microsoft, Nokia CEO
ended his speech saying this, “We didn’t do
anything wrong but somehow, we lost.” Upon
saying that, all his management team, himself
included, teared sadly.
We didn’t do anything wrong, but
somehow, we lost.

4. NovaUCD - Ireland's leading innovation hub
• a proven track record in assisting start-ups to grow and scale internationally.
• 360+ companies and early-stage start-ups have been supported through NovaUCD.
• The companies currently support over 1,040 jobs
• An annual turnover in excess of €113 million
• Raised over €760 million in equity funding.
• The new extension of the East Courtyard has increased our capacity to house high-
tech start-ups by over 50%.
• Seeking high-tech aspiring start-ups who want to locate at NovaUCD and benefit from
our unrivalled network of serial and next generation entrepreneurs, private investors
and VCs, experienced business mentors and world-class researchers to help them
grow and scale their start-ups globally.
For further information visit novaucd.ie

5. Design Sprint Master
• Google Global Sprint Chapter Head – Ireland
• Facilitated Design Sprints with Glandore, Aviva,
Zeeko, Hebe Adventures, Marley Technologies..
• Design Sprint Workshops for Aviva, Science
Foundation Ireland, LinkedIn, Irish Life, IFAC
Accountants, Adapt Centre..
• Trained Design Sprint Facilitators from Dun &
Bradstreet, Davy, Ammeon, UCD, Plusvital, Altify,
MoneyMate, NDRC, Trinity College, Aviva, Poppulo,
FEXCO, JCI, Irish Life, Bearing Point, DoneDeal,
Eneregia, Salesforce, ESB
Rohan Perera
• HEBE Adventures
Entrepreneur
• Godolphin Flying Start Programme, UCD Innovation
Academy, DIT New Frontiers Programme, DIT iCubed
Programme, SEI Impact Programme, UCD Smurfit
MBA, IADT Student Bootcamp , UCD Nova Startup
Stars Programme..
Facilitator of Entrepreneurial Studies
• Glandore, Screen Training Ireland, HSE (Health
Service Executive), DJEI (Department of Jobs,
Enterprise, and Innovation), SEI (Social
Entrepreneurs Ireland), Eli Lilly, Aviva, Irish Life,
Adapt Centre, IFAC, Health Research Board..
Consultant

6. Raomal Perera
Serial Entrepreneur
• ISOCOR (NASDAQ: icor) & Network365/Valista
(Intel)
• INSEAD & UCD
• Business Model Innovation, Lean Startup,
Design Thinking, Design Sprint & Fund Raising
Adjunct Professor of Entrepreneurial
Studies
• Clients include MSD (Merck), HP, Irish Film Board
(IFB), HSE (Health Service Executive), Arvato
(Bertelsman), ESB, SFI…
Consultant
• Finalist Ernst & Young Entrepreneur of the Year
• Tech Pioneer World Economic Forum
• ISA Award for Outstanding Software Achievement
• Inducted into the ‘Hall of Fame’ Business Excellence
Institute (2018)
Accolades

7. 10 Steps to Product Launch
From Product Concept to Product Launch
Phase 1
Strategic Alignment
& Problem Definition
Phase 2
Ideation & Validation
Phase 3
Scoping,
Planning
& Execution

8. What is a business model?
A business model
describes the rationale
of how an organization
creates, delivers and
captures value.

9. University of St. Gallen
Identified 55 Business Model patterns in the 5+ years of
intensive research into detailed analysis of all major successful
business model innovators in the last 50 years

10. Pattern 39: Razor and Blade
• The basic product is either cheap or give away for free. The
consumables that are needed for it on the other hand are
expensive or high margin.
Apple
iPod/iTunes
(2003)
Nestlé
BabyNes
(2012)
Nestlé
Special.Tea
(2010)
Hewlett-
Packard
(1984)
Nestlé
Nespresso
(1986)
Gillette
(1904)
Standard Oil
Company
(1880)

11. 3 Strategies to generate new Business Model
ideas: Transfer, Combine and Leverage
Lock-in
Razor and
blade
Direct sellingGillette
(1904)
Nestlé
Nespresso
(1986)
Nestlé
Special Tea.
(2011)
Nestlé
BabyNes
(2012)
Source: Gassmann, Frankenberger, Csik (2012), Aus alt mach neu, Harvard Business Manager, 2012
LeverageCombineTransfer

12. 3 Challenges in Business Model Innovation
1. Overcoming the
dominant industry
logic
2. Thinking in
Business Models
and not in
Technology
and/or Products
3. Lack of
Systematic Tools

13. 38 Performance based contracting
How would
conduct our business?

15. Getting started with the canvas

16. 1970
Invented
1976
Patented
1986
Launched
1988
Acknowledged dud
Sold as a complete solution,
machine, and coffee for a per
cup price to restaurants
and offices.
1989
John Paul Gaillard named
‘Commercial Director’ – Pivots

17. Separate the machine from the coffee
• Made and serviced by 3rd
parties.
• Sold through independent
retail stores.
• Manufacturers handle
delivery and stocking.
• Nespresso handles sales
training.
• Sold online and over the
phone direct to members
of the Nespresso Club.
• Delivered direct to
consumers in 24 hours or
less.

18. As market matured, Nespresso
added their own brand machines
made by an OEM.
Added its own retail boutiques to
further control the sales message.
Created Nespresso Pro channel
to serve the office market.

19. ~$3 billion in annual revenue
50 countries
20 billion capsules
30% CAGR over 30 years
12 million machines

20. Nespresso
Key Partnerships Key Activities Value Propositions
Key Resources
Cost Structure Revenue Streams
Customer
Relationships
Channels
Customer Segments
Logistics
Production
Marketing
Hardware SalesCapsule Sales
Coffee Machine
Makers
Marketing
ManufacturingDistribution &
Sales
DistributionProduction
Plants
PatentsBrand
High-end
restaurant
quality espresso
at home
Loyalty Card
Advertising
(George
Clooney)
Nespresso
Boutiques
Nespresso.
co
Call CentreRetail
High-end
Hotels
Offices
Households

21. Task
In a Zoom breakout room - 25 min
Work in groups of 4/5
develop a BMC HEBE

26. How we are different………….
• Platform to manage all trips
• Use tech. to streamline process, sharing info, flight alerts etc.
• Most traditional programms involve students staying in residential settings &
spending a lot of time with students of the same nationality – our students stay
with Irish families & attend camps with Irish kids
• Garda vet all Host Families
• Share HF info in advance
• Share Student profile in advance

27. Exercise: 25 min
Work in groups of 4/5
develop a BMC HEBE

28. Online Host Family Experience
• New programme, April 2020
• In response to Covid 19
• Had to Innovate & change our business model
• Working with Rohan & Raomal – guidance & collaboration
• Students connect with Irish Host family for 1 hour per day for a minimum of
one week
• Follow a pre agreed schedule
• Activities include presentations, online games, backing, tic toc, intro to Irish
sports
• Trial with Spanish Kids

29. Value Propositions
Channels
Customer Relationships Customer Segments
Revenue Streams
Key Activities
Key Resources
Cost Structure
Key Partnerships
HEBE
Tourist
Attractions
Technology
providers.
e.g. hosting,
development
etc.
Manage
and
develop
online
solution
Develop
relationships
with Agents
Get parent
to book
trips
directly
Capture
repository
of activities
Trusted
Brand
Build a list
of Host
families
Vet host
families
Technology
team to
build and
manage
solution
Person with
knowledge and
understanding of
student hos...
Business
development
person
Direct
through the
website
Local
Camps and
Activity
centers -
xtreme.ie
Sports
Camps e.g.
leinster
rugby, gaa
cul camp
etc.
Agents
sending
students
for a
country
Parents who
want to send
their children
abroad to
study
Host
Families in
the visiting
country
Foreign
Agents
looking for
Host
Families
Host Family
Coordinator
Schools
organising
language
trips
Parents - Online
Solution - to
eliminate a
number of pa...
Hosts -
online
solution
Tailor trip to childs
needs rather than 1
size fits all
Child is with
trusted Host
family that will
immerse the...
Host
Families
police
vetted
All Families
visited by
HEBE Staff
Central
customer
service and
coordination
List of Host
Families
Camp
providers
able to avail
of wider
market
List of
Guardians
Extensive
list of
camps and
schools
Camp and
activity,
theme
parks, zoo
etc.
providers
Public and
private
schools
Guardians
Students
Student
Experience
Album
Commission
from
coordinators
Service fee
advertising
for any
activity
companies
Host family
service fee
Foreign
Agent fee
Camp or
school
service fee
Internal
Sales
Fee charged to
host family
when a child is
placed with ...
Fee for
each child
placed with
host family
Referrals1 to 1
through
premium
service
School
Networks
Foreign
Agent
Network -
e.g. Mari
Local Agent
Networks -
e.g. Horizon
Google /
Facebook
Adverts
Through
Agent
Network
Public and
private
schools
abroad
Misc.
Phone, car,
etc.
Technology
Advertising
- google,
facebook
etc.
Travel -
trips to
promote
HEBE
Local
Coordinator

30. Business Modelling Tools
Business Model Canvas
Help you create value for your business

31. Business Modelling Tools – Zoom In
Value Proposition Canvas
Help you create value for your customer

32. Business Modelling Tools – Zoom Out
Environment Map
Helps you understand the context in which
you create your business

33. Business Modelling Tools – Zoom Around!
St. Gallen Business Model Navigator (Patterns)
Helps you innovate your business model(s)

34. BMC Online Tools
$299
annual license
Free
Canvanizer 1.0
75$
Canvanizer 2.0
annual license

35. Thank you!
Rohan@leandisruptor.com