This document discusses business model assessment and innovation. It outlines a 3 step process: 1) Scanning competitive forces through industry analysis, 2) Assessing the current business model through a SWOT analysis, and 3) Innovating the business model using blue ocean strategy techniques like the strategy canvas. Key concepts covered include assessing industry pressures, questioning the existing business model, and creating new market spaces through strategic factor elimination and creation.

1. busin ess model
as sessm ent
a co urse prepared
er
by alex osterwald
an d yves pigneur
with cédric gaspoz

2. e -business
serv ice design
s cenario & s torytelling
t ask analysis
p rototyping
service to business
from
ueprint & v isualization
bl
service innovation
ess model innovation
busin
busin ess model
business m odel design
s model as sessment
‣busines

3. how do you change a business
model and innovate?

4. re‐inven7ng the wheel ???

5. what if ?

6. PR EPA RED
BE
http://www.flickr.com/photos/thefamilymorris/sets/72157603383415256/

7. PR EPAR ED ?
NOT
http://www.flickr.com/photos/thefamilymorris/sets/72157603383415256/

8. 3 steps of business model design
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ASSESS
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9. diagnostic

10. business
model
^
a sse ssm ent

11. nt scan ning
e nviro nme

12. - foresight -
KEY
TRENDS
INDUSTRY MARKET
FORCES FORCES
- competitive analysis - - market analysis -
MACRO
ECONOMIC
FORCES
- macroeconomics -

14. 1
industry forces

15. pres sure
industry

16. pre ssures
COMPETITORS
(INCUMBENTS)
NEW ENTRANTS
(INSURGENTS)
INDUSTRY
SUBSTITUTE PRODUCTS
FORCES
AND SERVICES
SUPPLIERS AND OTHER - competitive analysis -
VALUE CHAIN ACTORS
STAKEHOLDERS

17. fore sight
t echn ology

19. Prediction ...
“ shortcomings to be seriously considered
This 'telephone' has too many
as a means of communication. The device
is inherently of no value to us.
”
West Union internal memo, 1876

20. Prediction ...
“ this country and walked with the best
I have travelled the length and breadth of
people, and I can assure you that data
processing is a fad that won't last out the
year.
”
The editor of management books at Prentice-Hall, 1957

21. Prediction ...
“ for maybe five computers.
I think there is a world market
”
Thomas Watson, chairman of IBM, 1943

22. Prediction ...
“ would want a computer in their
There is no reason anyone
home.
”
Ken Olsen, President and founder of Digital Equipment Corp., 1977

23. “Prediction is
very difficult,
especially if it's
about the
future.”
Niels Bohr
1952

24. the black swan

25. no prediction but ...

26. magic

27. insurance

28. futures

29. science fiction

32. ... scenario planning

33. “ Scenarios are a way of developing
alternative futures based on different
combinations of assumptions, facts and
trends, […] Building scenarios will force
asking relevant questions and identify a
range of possible choices or events.
”
Roger Caldwell, 2002
Anticipating the future
cals.arizona.edu/futures/

35. scenario planning
accordin g to Caldwe
ll
^
identify driving forces and plausible trends
combine them to get a series of scenarios
under the form of stories …

36. 973 STORY
1
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37. ^
scenario planning
Philips

38. 3 steps of business model design
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39. question your business model

41. 2
SWOT analysis

42. strength

43. weakness
flickr 2363952016_97f10be59f_o.jpg

44. opportunity

45. threats

46. 3 steps of business model design
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47. business
model
^
innova tion

48. Ques7ons
?
Could we regroup customers be;er according to
their needs?

49. Ques7ons
?
Could we complement our value proposi7on
through agreements with partners?

50. Ques7ons
?
Could we transform our revenue streams (rent
vs. sales)?

51. Ques7ons
?
Do we serve the right customers through the
right channels?

52. Ques7ons
?
What level of personaliza7on do our
rela7onships require?

53. Ques7ons
?
Which key resources/ac7vi7es can we get rid of?

54. Ques7ons
?
With which partners could we achieve fit?

55. Ques7ons
?
Which areas can we slash to reduce our cost
structure?

56. 3
blue ocean

57. s the “blue ocean” ???
who know
illustrations.fr

59. o, more ser iously ???
n
illustrations.fr

60. http://www.cartoonstock.com/directory/b/best_selling_book.asp

61. “ Market boundaries are
not given. They are
reconstructed by the
actions & beliefs of
industry players.
”
Kim & Mauborgne
Blue Ocean Strategy

62. RED OCEAN BLUE OCEAN
• compete in existing markets • create uncontested markets
• beat the competition • make competition irrelevant
• explore existing demand • create & capture new demand
• make the value/cost trad-off • break value/cost trad-off
• align with differentiation OR low • align with differentiation AND
cost low cost
[Kim & Mauborgne (2002) Charting Your Company's Future]

63. A strategy canvas ...
o Kim & M
^
auborgne
ac cording t
a way to visualize the strategic profile
based on the factors that affect competition
showing the strategic profile of competitors
identifying which factors they invest in
strategically

64. CHARTING THE OFFER’S FACTORS
[Kim & Mauborgne (2002) Charting Your Company's Future]

65. CHARTING THE VALUE PROPOSITION

66. eliminate raise
e factors s should
hich of
th Whic h factor
W
ry takes a bove the
that the indus
t
be ra ised well
hould be standard?
for granted s i ndustry's
?
e liminated
r s should
rs shoul
d Wh ich facto
Wh ich facto d that th
e
w ell below be create
be reduced has never
s tandard? industry
the in dustry's
offered?
reduce
[Kim & Mauborgne (2002) Charting Your Company's Future]
create

67. disruptive technology

68. www.flickr.com/photos/toohotty/2675099789/sizes/l/

69. ^
disruptive technology
Christensen
according to
results in worse product performance,
at least in the near-term
brings to the market a very different value
proposition than had been available previously
typically cheaper, simpler, smaller, and,
frequently, more convenient to use
[But, they generally] under perform established
products in mainstream markets.

70. ive
pt
sru
performance
di
t
marke
new replaces old technology
market for
old technology
market for
new technology
time
[Christensen, 1997]

71. Scanning
competitive forces
Assessment
SWOT analysis
Innovate
Blue ocean strategy

72. competitive forces
analysis
rev iew ✓ competitors
✓customers
✓ suppliers
✓ substitute products
✓ new entrants

73. SWOT
analysis
r evi ew ✓ strengths
✓ weaknesses
✓ opportunities
✓ threats

74. blue ocean
canvas
r evi ew ✓ visualizing offer’s factors
✓ showing strategic profiles
✓ identifying factors