SlideShare a Scribd company logo
Building
businesses
that your
customers love
AI Group, Melbourne
Your Head	

The biggest tool for
creativity
Your Head	

The biggest impediment
to innovation
2 x 40 = 80
We understand our
current way with linear
development
240
= ?
However, exponential
development are not
comprehensible for
humans
240
= 1,099,511,627,776
We love
MOTSore
 f
 he
 ame
1
Beyond optimization of the past	

We have to unlearn the
past and rethink our
business from the
customer perspective	

If you do not do it, others will
Do we really need
somebody to tell us when
we have to watch a show?
Or do we want to hear
from Peter, what he thinks
on US credit rating?
Do we need
accountants?
Actually, accountants are
just one mean to get our
books done, manage cash
or get expenses ready for
taxes.
Do we need taxis?
People want to move easily
and with convenience in
cities. Taxis are just one
mean to do it.
Do we need truck
drivers?
We need to move goods
around. Human driven
trucks are just one mean
to do this.
2
Beyond product innovation	

Don’t think in markets or
products but in customer
needs or jobs-to-be-done
The company invented
the digital camera in
1973 …
…was the partner of
choice for Apple to
enter the digital camera
market
…but never understood
that digital is not a
product innovation but
demands a whole new
business model
Digital was not about
the best quality that
traditional customers
of Kodak loved
From keeping to
sharing memories –
Digital solves new jobs
for customers
Customers discovered
new uses, no sane person
would have ever thought
off
„Wow, I have invented the future of
advertising. We do not need any videos
or pictures or even color anymore.
The future will be a text ad with maximal
95 characters.
It‘s brilliant, isn‘t it?
Would you havedared to saythis?
Instead of looking for
better products, Google
Adwords brought back
relevance to the ad
industry
3
Don’t optimize the past, invent the future	

If you don’t think from your
customers’ perspective and
their jobs-to-be-done,you will
be exterminated
product/services happy customers
creates
X	

value proposition
solves
delivered by
business model
The customer perspective: Technology does not create value. It
is the value proposition the customer loves
customer’s job-to-be-done
addressed
by
Do we need ho
Do we just need
a bed like at
Formule 1?
Or do we need a place
with people in order
to connect to the
place like at AirBnB?
Customer job to be done
We do not need a hotel. We
need an accommodation plus
extras like connecting to
people. That are the jobs-to-
be-done.
Customers hire a product or
service to get a job done. The
products are a means to an
end, not an end in themselves.
The value proposition
creates the value for
the customer, not the
product!
Value Proposition
The job-to-get-done is
solution neutral. The job is to
provide accommodation plus
extra benefits like connecting
to people.
Potential solution:
§  3* hotel
§  Formule 1 Hotel
§  AirBnB (accommodation
plus connection to people)
§  friend that life in the city
It is of uttermost
importance to
understand the core
job we solve for our
customers
4
It’s not the product alone that creates value
The value proposition has
to be delivered by the
whole business model
„What is a
business
model?“
The business model is
the DNA of your
business
Are you
aware of yourDNA?
The business model
gives meaning to your
employees and
customers
4 key questions for a successful business:
What excites
our
customers?
Value Proposition
How do we
create value
for our
customers?
Value Architecture
How do we
earn money?
Revenue Model
Who is our
team?
What values
do we
pursue?
Team & Values
Value
Proposition
Customer
•  Who is our
customer?
•  What job do we
solve for them?
Value
•  What value do we
create for our
customers? What
value do we create
for our partners?
What excites our customer?
Value
architecture
Offer
•  What is our offer?
Distribution &
Communication
Channels
•  How do we reach
our customers?
•  How do we
communicate with
our customers?
How do we create the value?
Value Chain
•  What activities do
we have to do to
produce our offer?
•  How does our
value chain look
like?
Partner
•  What partners do
we need?
Core Capabilities
•  What are the core
capabilities we
need?
Revenue
Model
Cost Structure
•  Cost structure is
defined by your
value architecture.
Revenue Sources
•  With what do we
earn money?
How do we earn money?
Team &
Values
Team
•  Who is our team?
•  What
competencies do
we have in our
team?
Values
•  What values do we
life in our team?
•  How do we
interact with each
other and with
customers?
Who is on our team? What values do we live?
Customers
Who are our customers?
What job do we solve for our
customers?
Customer Benefit
What benefit do we create for our
customers?
What benefit do we create for our
partners?
Offer
What is our offer?
Value Chain
What are our value creating steps?
What is our value chain?
Core Capabilities
What are the core capabilities
we need?
Distribution & Communication
Channels
How do we reach our customers?
How do we communicate with
our customers?
Partner
Which partners do we need?
Questions for a Successful Business Model
Cost Structure
Cost structure is defined by the
value architecture.
Revenue Sources
With what do we earn money?
Team
Who is on our team?
What competencies do we have
on the team?
Values
What values do we pursue?
How do we interact with each other
and the customers?
Revenue Model
Team & Values
Value PropositionValue Architecture
Customers
Who are our customers?
What job do we solve for our
customers?
Customer Benefit
What benefit do we create for our
customers?
What benefit do we create for our
partners?
Offer
What is our offer?
Value Chain
What are our value creating steps?
What is our value chain?
Core Capabilities
What are the core capabilities
we need?
Distribution & Communication
Channels
How do we reach our customers?
How do we communicate with
our customers?
Partner
Which partners do we need?
Questions for a Successful Business Model
Cost Structure
Cost structure is defined by the
value architecture.
Revenue Sources
With what do we earn money?
Team
Who is on our team?
What competencies do we have
on the team?
Values
What values do we pursue?
How do we interact with each other
and the customers?
Revenue Model
Team & Values
Value PropositionValue Architecture
Creating
businesses
that
customers
love!
The Leadership Revolution Conference, Melbourne
Dr. Patrick Stähler, fluidminds Pty Ltd.
New boxes
to think in.
New process
to discover
the future
Please show me how
you open this sachet
of sugar?
5
New boxes to think in are not enough	

Think like a designer. 	

Plan the process, not the
result, prototype, iterate
Start with customer insights
Point of View
Business Design is a process of opening your
mind and focusing at the end
1
Customer
Insight
3
Ideate
2
Understand
4
Design
5
Decide &
Prototype
6
Build & Learn
Customer Insights
based on jobs-to-be-
done are the starting
points for business
model innovation
Customers’
insight
New value
proposition
Business
model
innovation
6
Don’t start with a solution 	

Observe the customer
experience journey aka
jobs-to-be-done	

Follow the whole customer journey
1
Customer Insight
-  Observe your customers
What job is not yet or
badly solved?
-  How does the Customer
Experience Cycle look
like?
-  On what customer insights
is your idea based?
-  validate customer insight
Buy
Delivery/
Assembly
Usage
Comple-
ments
Service Disposal
Observe the customer along the whole customer experience
journey and find badly or unsolved jobs-to-be-done
§  Understand how the customers are buying,
using and disposing the product	

§  Understand the whole lifecycle of customers‘
utility	

Source: cp. Kim,W.C., Mauborgne, R., Knowing a Winning Business Idea when
you see one, HBR Sep-Oct. 2000	

Customer Experience Journey	

§  How can we improve the buyer‘s utility cycle?	

§  Can we do more for the customer?	

§  Can we leave something to the customer?
Unsolved job-to-be-done
What is the biggest
problem with socks?
2
Understand
-  understand the current
solutions and their
strength & weakness
-  understand how the
potential customer thinks
and decides
-  understand the market &
market mechanism
3
Ideate
Develop as many ideas as
possible in the area of
-  customers/ value
proposition
-  value architecture
-  revenue model
Customers
Customer Benefit
Offer
Value Chain
Core Capabilities
Distribution & Communication
Channels
Partner
Business Model:
Cost Structure Revenue Sources
Team Values
Revenue Model
Team & Values
Value PropositionValue Architecture
Use the canvas to
fine tune your
business model
around a better
value proposition
4
Design
-  decide for three or four
options
-  design the business
models for the options
-  check the
interdependencies in the
business models
-  work on the uniqueness
(positioning)
-  optimize the building
blocks
Customers
Customer Benefit
Offer
Value Chain
Core Capabilities
Distribution & Communication
Channels
Partner
Business Model:
Cost Structure Revenue Sources
Team Values
Revenue Model
Team & Values
Value PropositionValue Architecture Use the canvas to
develop your business
model
5
Decide & Prototype
-  decide for the best model
to go for
-  build prototype
-  test prototype with
customers
-  write business case
-  decide again or work on
different option
6
Build & Learn
-  execute business model
-  learn continuously from
customer feedback and
control KPIs
-  adjust and refine
continuously the business
model
1
Customer Insight
-  Observe your customers
What job is not yet or
badly solved?
-  How does the Customer
Experience Cycle look
like?
-  On what customer insights
is your idea based?
-  validate customer insight
2
Understand
-  understand the current
solutions and their
strength & weakness
-  understand how the
potential customer
thinks and decides
-  understand the market &
market mechanism
3
Ideate
Develop as many ideas as
possible in the area of
-  customers/ value
proposition
-  value architecture
-  revenue model
4
Design
-  decide for three or four
options
-  design the business
models for the options
-  check the
interdependencies in the
business models
-  work on the uniqueness
(positioning)
-  optimize the building
blocks
5
Decide & Prototype
-  decide for the best
model to go for
-  build prototype
-  test prototype with
customers
-  write business case
-  decide again or work on
different option
6
Build & Learn
-  execute business model
-  learn continuously from
customer feedback and
control KPIs
-  adjust and refine
continuously the
business model
More Information on
http://blog.business-model-innovation.com
Dr. oec. Patrick Stähler
fluidminds Pty Ltd.
Level 19, 1 O‘Connel Street
Sydney NSW 2000
Phone +61-2-8249 1861
info@fluidminds.com.au

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Creating value by design thinking or create businesses that customers love

  • 2. Your Head The biggest tool for creativity
  • 3. Your Head The biggest impediment to innovation
  • 4. 2 x 40 = 80 We understand our current way with linear development
  • 5. 240 = ? However, exponential development are not comprehensible for humans
  • 8. 1 Beyond optimization of the past We have to unlearn the past and rethink our business from the customer perspective If you do not do it, others will
  • 9. Do we really need somebody to tell us when we have to watch a show?
  • 10. Or do we want to hear from Peter, what he thinks on US credit rating?
  • 12. Actually, accountants are just one mean to get our books done, manage cash or get expenses ready for taxes.
  • 13. Do we need taxis?
  • 14. People want to move easily and with convenience in cities. Taxis are just one mean to do it.
  • 15. Do we need truck drivers?
  • 16. We need to move goods around. Human driven trucks are just one mean to do this.
  • 17. 2 Beyond product innovation Don’t think in markets or products but in customer needs or jobs-to-be-done
  • 18. The company invented the digital camera in 1973 …
  • 19. …was the partner of choice for Apple to enter the digital camera market
  • 20. …but never understood that digital is not a product innovation but demands a whole new business model
  • 21. Digital was not about the best quality that traditional customers of Kodak loved
  • 22. From keeping to sharing memories – Digital solves new jobs for customers
  • 23. Customers discovered new uses, no sane person would have ever thought off
  • 24. „Wow, I have invented the future of advertising. We do not need any videos or pictures or even color anymore. The future will be a text ad with maximal 95 characters. It‘s brilliant, isn‘t it? Would you havedared to saythis?
  • 25. Instead of looking for better products, Google Adwords brought back relevance to the ad industry
  • 26. 3 Don’t optimize the past, invent the future If you don’t think from your customers’ perspective and their jobs-to-be-done,you will be exterminated
  • 27. product/services happy customers creates X value proposition solves delivered by business model The customer perspective: Technology does not create value. It is the value proposition the customer loves customer’s job-to-be-done addressed by
  • 29. Do we just need a bed like at Formule 1?
  • 30. Or do we need a place with people in order to connect to the place like at AirBnB?
  • 31. Customer job to be done We do not need a hotel. We need an accommodation plus extras like connecting to people. That are the jobs-to- be-done. Customers hire a product or service to get a job done. The products are a means to an end, not an end in themselves. The value proposition creates the value for the customer, not the product!
  • 32. Value Proposition The job-to-get-done is solution neutral. The job is to provide accommodation plus extra benefits like connecting to people. Potential solution: §  3* hotel §  Formule 1 Hotel §  AirBnB (accommodation plus connection to people) §  friend that life in the city It is of uttermost importance to understand the core job we solve for our customers
  • 33. 4 It’s not the product alone that creates value The value proposition has to be delivered by the whole business model
  • 35. The business model is the DNA of your business Are you aware of yourDNA?
  • 36. The business model gives meaning to your employees and customers
  • 37. 4 key questions for a successful business: What excites our customers? Value Proposition How do we create value for our customers? Value Architecture How do we earn money? Revenue Model Who is our team? What values do we pursue? Team & Values
  • 38. Value Proposition Customer •  Who is our customer? •  What job do we solve for them? Value •  What value do we create for our customers? What value do we create for our partners? What excites our customer?
  • 39. Value architecture Offer •  What is our offer? Distribution & Communication Channels •  How do we reach our customers? •  How do we communicate with our customers? How do we create the value? Value Chain •  What activities do we have to do to produce our offer? •  How does our value chain look like? Partner •  What partners do we need? Core Capabilities •  What are the core capabilities we need?
  • 40. Revenue Model Cost Structure •  Cost structure is defined by your value architecture. Revenue Sources •  With what do we earn money? How do we earn money?
  • 41. Team & Values Team •  Who is our team? •  What competencies do we have in our team? Values •  What values do we life in our team? •  How do we interact with each other and with customers? Who is on our team? What values do we live?
  • 42. Customers Who are our customers? What job do we solve for our customers? Customer Benefit What benefit do we create for our customers? What benefit do we create for our partners? Offer What is our offer? Value Chain What are our value creating steps? What is our value chain? Core Capabilities What are the core capabilities we need? Distribution & Communication Channels How do we reach our customers? How do we communicate with our customers? Partner Which partners do we need? Questions for a Successful Business Model Cost Structure Cost structure is defined by the value architecture. Revenue Sources With what do we earn money? Team Who is on our team? What competencies do we have on the team? Values What values do we pursue? How do we interact with each other and the customers? Revenue Model Team & Values Value PropositionValue Architecture
  • 43. Customers Who are our customers? What job do we solve for our customers? Customer Benefit What benefit do we create for our customers? What benefit do we create for our partners? Offer What is our offer? Value Chain What are our value creating steps? What is our value chain? Core Capabilities What are the core capabilities we need? Distribution & Communication Channels How do we reach our customers? How do we communicate with our customers? Partner Which partners do we need? Questions for a Successful Business Model Cost Structure Cost structure is defined by the value architecture. Revenue Sources With what do we earn money? Team Who is on our team? What competencies do we have on the team? Values What values do we pursue? How do we interact with each other and the customers? Revenue Model Team & Values Value PropositionValue Architecture
  • 44. Creating businesses that customers love! The Leadership Revolution Conference, Melbourne Dr. Patrick Stähler, fluidminds Pty Ltd. New boxes to think in. New process to discover the future
  • 45. Please show me how you open this sachet of sugar?
  • 46. 5 New boxes to think in are not enough Think like a designer. Plan the process, not the result, prototype, iterate Start with customer insights
  • 47. Point of View Business Design is a process of opening your mind and focusing at the end 1 Customer Insight 3 Ideate 2 Understand 4 Design 5 Decide & Prototype 6 Build & Learn
  • 48. Customer Insights based on jobs-to-be- done are the starting points for business model innovation Customers’ insight New value proposition Business model innovation
  • 49. 6 Don’t start with a solution Observe the customer experience journey aka jobs-to-be-done Follow the whole customer journey
  • 50. 1 Customer Insight -  Observe your customers What job is not yet or badly solved? -  How does the Customer Experience Cycle look like? -  On what customer insights is your idea based? -  validate customer insight
  • 51. Buy Delivery/ Assembly Usage Comple- ments Service Disposal Observe the customer along the whole customer experience journey and find badly or unsolved jobs-to-be-done §  Understand how the customers are buying, using and disposing the product §  Understand the whole lifecycle of customers‘ utility Source: cp. Kim,W.C., Mauborgne, R., Knowing a Winning Business Idea when you see one, HBR Sep-Oct. 2000 Customer Experience Journey §  How can we improve the buyer‘s utility cycle? §  Can we do more for the customer? §  Can we leave something to the customer?
  • 52. Unsolved job-to-be-done What is the biggest problem with socks?
  • 53. 2 Understand -  understand the current solutions and their strength & weakness -  understand how the potential customer thinks and decides -  understand the market & market mechanism
  • 54. 3 Ideate Develop as many ideas as possible in the area of -  customers/ value proposition -  value architecture -  revenue model
  • 55. Customers Customer Benefit Offer Value Chain Core Capabilities Distribution & Communication Channels Partner Business Model: Cost Structure Revenue Sources Team Values Revenue Model Team & Values Value PropositionValue Architecture Use the canvas to fine tune your business model around a better value proposition
  • 56. 4 Design -  decide for three or four options -  design the business models for the options -  check the interdependencies in the business models -  work on the uniqueness (positioning) -  optimize the building blocks Customers Customer Benefit Offer Value Chain Core Capabilities Distribution & Communication Channels Partner Business Model: Cost Structure Revenue Sources Team Values Revenue Model Team & Values Value PropositionValue Architecture Use the canvas to develop your business model
  • 57. 5 Decide & Prototype -  decide for the best model to go for -  build prototype -  test prototype with customers -  write business case -  decide again or work on different option
  • 58. 6 Build & Learn -  execute business model -  learn continuously from customer feedback and control KPIs -  adjust and refine continuously the business model
  • 59. 1 Customer Insight -  Observe your customers What job is not yet or badly solved? -  How does the Customer Experience Cycle look like? -  On what customer insights is your idea based? -  validate customer insight 2 Understand -  understand the current solutions and their strength & weakness -  understand how the potential customer thinks and decides -  understand the market & market mechanism 3 Ideate Develop as many ideas as possible in the area of -  customers/ value proposition -  value architecture -  revenue model 4 Design -  decide for three or four options -  design the business models for the options -  check the interdependencies in the business models -  work on the uniqueness (positioning) -  optimize the building blocks 5 Decide & Prototype -  decide for the best model to go for -  build prototype -  test prototype with customers -  write business case -  decide again or work on different option 6 Build & Learn -  execute business model -  learn continuously from customer feedback and control KPIs -  adjust and refine continuously the business model
  • 60. More Information on http://blog.business-model-innovation.com Dr. oec. Patrick Stähler fluidminds Pty Ltd. Level 19, 1 O‘Connel Street Sydney NSW 2000 Phone +61-2-8249 1861 info@fluidminds.com.au