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Business models For Alliander
This document discusses business model innovation and provides definitions and frameworks for understanding business models. It begins by defining innovation and discussing challenges with innovating. It then presents frameworks for analyzing different dimensions of a business model, including offerings, delivery, processes, and the overall business model. Key components of the business model canvas framework are outlined, including customer segments, value propositions, channels, customer relationships, revenue streams, resources, activities, partnerships, and cost structure. The document emphasizes exploring opportunities outside current markets and focusing on a company's core competencies for strategic innovation. It provides examples of business model innovation from various industries.
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Business models For Alliander
- 1. UNKNOWN A1 / open seating BUSINESS MODEL INNOVATION
- 2. Innovation common understanding ”A nearly universal obstacle for innovation success is that people have pervasive misunderstandings about what innovation is, where it comes from, and even how to define, measure, foster, or reward it. With fundamentals like these all up for grabs, it's amazing that innovation ever occurs.” Jay Doblin (1920-89) 2
- 3. ”Innovation is theprocess of creating and delivering new customer value in the marketplace.” Carlson & Wilmot ”The ability of individuals, companies, and entire nations to continously create their desired future.” John Kao 3
- 5. e Art ofImplementing Ideas
- 6. Why are sofew companies innovative? 96% fail
- 7. They all dreamabout hot new products….
- 8. A palette ofopportunities Business Model Offerings Mark et seg ment s Solutions ling Chan / Enab nels Organizing Process Delivery
- 9. Innovation dimensions Volume of innovation activities last decade Products/ Strategic Customer Core Sourcing/ Organizing/ Market Network/ Revenue Solutions Channels Brand/Design services concepts Experience process Distribution Eanbling segments Alliances streams OFFERINGS DELIVERY PROCESS BUSINESS MODEL
- 10. Innovation dimensions Less than 2% of the innovation activities creates 90% of the value. Products/ Strategic Customer Core Sourcing/ Organizing/ Market Network/ Revenue Solutions Channels Brand/Design services concepts Experience process Distribution Eanbling segments Alliances streams OFFERINGS DELIVERY PROCESS BUSINESS MODEL
- 11. A sole focuson traditional strategy works: Todays market and competitors determine our future focus… RED OCEAN The Battle of decreasing margins
- 12. By also focusingon the strategic innovation works: New opportunities based on future needs – outside todays red ocean – centered around the core competence. BLUE OCEAN Create new markets without a challenge from competitors
- 13. STRATEGIC INNOVATION Innovation driven by the company´s core competence, throughout dimensions, where competitors are doing little or nothing at all (Høy 2006)
- 14. A classic smartgrid roll out 3. Business models Experimenting with new VALUE CREATION products and services based upon customer insights and 2. Operating model technology innovations Efficiency and stabilize processes 1. Technology Validate and test. Risk management TIME
- 15. t is al Wha ode ess m it busin hy is a nd w ant? im port Business models Hafslund / Alliander
- 16. A business modeldescribes the rationale of how an organization creates, delivers and captures value
- 17. A couple ofwell known models…
- 21.
- 22. BUSINESS MODEL CANVAS CUSTOMER RELATIONSHIP KEY ACTIVITIES KEY VALUE CUSTOMER PARTNERS PROPOSITION SEGMENTS KEY RESOURCES CHANNELS COST STRUCTURE REVENUE STREAMS Business model generation (2010) – Alex Osterwalder
- 23. 1. CUSTOMER SEGMENTS For whom are we creating value? Who are our most important customers? CUSTOMER SEGMENTS Customer groups represent separate segments if: • Their needs require and justify a distinct offer • They are reached through different Distribution Channels • They require different types of relationships • They have substantially different profitabilities • They are willing to pay for different aspects of the offer
- 24. Products/ Customer Market services Experience segments OFFERINGS DELIVERY BUSINESS MODEL
- 25. Where is thegreat market segment – not being served today? (who are NOT our customers? And why?)
- 26. 2. VALUE PROPOSITION What value do we deliver to the customer? Which one of our customer’s problems are we helping to solve? Which customer needs are we satisfying? VALUE PROPOSITION What bundles of products and services are we offering to each Customer Segment?
- 27. Social lending Customer Sourcing/ Network/ Revenue Solutions Channels Experience Distribution Alliances streams OFFERINGS DELIVERY PROCESS BUSINESS MODEL
- 28. How could autility company get 20% of a normal household budget? (what related services could we take responsibility for?)
- 29. 3. CHANNELS CHANNELS Through which Channels do our Customer Segments want to be reached? How are we reaching them now? How are our Channels integrated? Which ones work best? Which ones are most cost-efficient? How are we integrating them with customer routines?
- 30. News bulletin15 Dec2011 – Amazon has sold at least three million Kindles in the past three weeks. Every forth sold book is an eBook…
- 31. 8 ways ofselling a book 1. Publisher (old school) 2. Free book (as a market tool for other services) 3. Co-written book (sold through social networks) 4. On demand (printed whenever someone wants it) 5. Online book (a book as a website) 6. Do it yourself (amazon advantage) 7. Sponsored book (advertising) 8. Tailored book (commissioned work)
- 33. 4. CUSTOMER RELATIONSHIP CUSTOMER What type of relationship does each of our Customer RELATIONSHIP Segments expect us to establish and maintain with them? Which ones have we established? How costly are they? How are they integrated with the rest of our business model?
- 34. is is yourusual LEGO user…right?
- 35.
- 36. 11 page coverstory in Wired Magazine Customer Organizing/ Solutions Experience Eanbling OFFERINGS DELIVERY PROCESS
- 37. 5. REVENUE STREAMS REVENUE STREAMS For what value are our customers really willing to pay? For what do they currently pay? How are they currently paying? How would they prefer to pay? How much does each Revenue Stream contribute to overall revenues?
- 38. All the music– all the time Spotify@Spotify Freemium business model We’re excited to announce that we’ve now welcomed 2.5 million paying subscribers. Thanks everyone! Products/ Customer Sourcing/ Market Revenue Channels services Experience Distribution segments streams OFFERINGS DELIVERY PROCESS BUSINESS MODEL
- 39. 6. KEY RESOURCES What Key Resources do our Value Propositions require? KEY RESOURCES Our Distribution Channels? Customer Relationships? Revenue Streams?
- 40. Strategic Organizing/ Network/ concepts Eanbling Alliances OFFERINGS PROCESS BUSINESS MODEL
- 41. 7. KEY ACTIVITIES What Key Activities do our Value Propositions require? Our Distribution Channels? KEY Customer Relationships? ACTIVITIES Revenue streams?
- 42. Products/ Customer Core Sourcing/ Market Revenue Channels services Experience process Distribution segments streams OFFERINGS DELIVERY PROCESS BUSINESS MODEL
- 43. 8. KEY PARTNERSHIPS Who are our Key Partners? Who are our key suppliers? Which Key Resources are we acquiring from partners? KEY PARTNERS Which Key Activities do partners perform?
- 44. Ryanair Customer Organizing/ Network/ Solutions Experience Eanbling Alliances OFFERINGS DELIVERY PROCESS BUSINESS MODEL
- 45. 9. COST STRUCTURE COST STRUCTURE What are the most important costs inherent in our business model? Which Key Resources are most expensive? Which Key Activities are most expensive?
- 46. Rolls Royce wasknown for manufacturing and selling high quality products with marginal earnings (ROI was usually 17 years) They came up with a new business model that sells hours of flight instead of engines and parts Today this is 50% of sales and 80% of earnings Sourcing/ Market Revenue Solutions Distribution segments streams OFFERINGS PROCESS BUSINESS MODEL
- 47. Unlock future SMARTGRID business models Our common challenge Explore key insights to unlock new business opportunities and future business models for Hafslund and Alliander. CO-LAB WORKSHOP
- 48. WHAT IF? Bestpractise Next practise
- 49. What if wechallenged the dominant logic? What if we compare our business model with other players in our business… what makes us unique/different? What if we think different on who our customers are? And what we´re offering them? What if we think different about our sales channels? Are there alternatives? And what about the customer relationships? Could we do it differently? What if there are other ways of generating revenue streams? And so on…. Best practise Next practise
- 50. anks for listening! Mads Bruun Høy Mads.bruun.hoy@devoteam.com 92823204