Business Model Strategy for Makers - Innovation risk management framework which allows Entrepreneurs with physical products to focus on their core value and grow their businesses at their own pace.

1. DIY
Innovation
Management
Roland A. G. Nicholas
BSc. MSc. MBA
STARTUP/SPIN-OFF
Innovation
Strategy
PARTNERSHIP/JOINT VENTURE
Core
Competency
CROWDFUNDING
Commercial
Feasibility
LICENSING
Market
Value
Aug-16

2. The Problem
Corporations seeking
outsourced R&D
- -
2/3 of Accelerator
graduates slow to attract
Investors
- -
Excess Crowdfunding
demand delays fulfilment
- -
Social impact enterprises
struggle to scale revenue
Open
Innovation
Accelerated
Ventures
Crowdfunding
Fulfilment
Sustainable
Social Impact
INNOVATION
RISK
Aug-16

3. The Customer
12 Startups in average
Incubator size (NESTA)
- -
90-day funding campaigns by
Accelerators and Crowdfunders
- -
Innovative Universities = design
+ business schools
- -
35% increase in UK population
of Maker businesses (Gov.uk)
Business
Incubators
Universities
(Design +
Business)
UK
Maker
Spaces
Start-up
Accelerators
Aug-16

4. The Mission
A STEP approach
to
Self-adaptive
Innovation
Risk Management
for
Maker-led
New Venture Creation
PROPOSE
ENGAGE
TEST
SEARCH
Aug-16

5. BUSINESS
(innovation model)
MARKETING
(marketing mix)
TECHNICAL
(new product intro)
PROPOSE
(strategy)
SEARCH
(value)
TEST
(feasibility)
ENGAGE
(competency)
CORE
3 Key Roles
Innovation Management
=
Marketing
+
Technical
+
Business
Aug-16

6. INNOVATION
8 Innovation Strategies
based on Core
SEARCH
(market value)
|
TEST
(commercial feasibility)
|
ENGAGE
(core competency)
|
PROPOSE
(innovation strategy)• Alliance
• Process
• Business
• Marketing
• Experiential
• Platform
• Product
• Positioning
SEARCH TEST
ENGAGEPROPOSE
Aug-16

7. MANAGEMENT
4 Levels of Innovation
Management
Passive (e.g. Inventor)
|
Applied (e.g. Broker)
|
Enabling (e.g. Partner)
|
Leading (e.g. Founder)
STARTUP/SPIN-OFF
Leading –
“ I get
energised by
corporate
vision.”
PARTNERSHIP/JOINT VENTURE
Enabling –
“I enjoy
building cross-
functional
teams.”
CROWDFUNDING
Applied –
“I am able to
interact with
customers and
suppliers alike.”
LICENSING
Passive –
“I want to
spend majority
of my time
doing what I
love.”
Aug-16

8. Business
KeyPartners KeyActivities ValueProposition CustomerRelations CustomerSegments
KeyResources DeliveryChannels
InnovationFocus
3
4
4
3
3
3
RevenueStreamsCostFactors
2
2
2
2
Technical
KeyPartners KeyActivities ValueProposition CustomerRelations CustomerSegments
KeyResources DeliveryChannels
InnovationFocus
3
4
4
3
3
3
RevenueStreamsCostFactors
2
2
2
2
CORE (SEARCH)
“Producing and
commercialising my
product design is too
much risk and hassle.”
INNOVATION (Product/Positioning)
“My patented design needs to be seen
as, at minimum, an improvement over
existing market solutions.”
MANAGEMENT (Passive)
“I like focusing on creating stuff. Let
someone else do the dirty work of
business operations.”
X
MODEL SCENARIO - DESIGNER
PRODUCT
(Licensing)
KeyPartners KeyActivities ValueProposition CustomerRelations CustomerSegments
KeyResources DeliveryChannels
InnovationFocus
0
5
0
0
5 0
TEST(Platform)
5 5
CostFactors RevenueStreams
5
POSITIONING
(Subscription)
KeyPartners KeyActivities ValueProposition CustomerRelations CustomerSegments
KeyResources DeliveryChannels
InnovationFocus
0
5
0
0
0 0
SEARCH(Positioning)
5 5
CostFactors RevenueStreams
0
X
BUSINESS CASE
(Licensing)
KeyPartners KeyActivities ValueProposition CustomerRelations CustomerSegments
KeyResources DeliveryChannels
InnovationFocus
0
5
0
0
5 0
TEST(Platform)
5 5
CostFactors RevenueStreams
5
X
Marketing
KeyPartners KeyActivities ValueProposition CustomerRelations CustomerSegments
KeyResources DeliveryChannels
InnovationFocus
3
4
4
3
3
3
RevenueStreamsCostFactors
2
2
2
2
Aug-16

9. CORE (ENGAGE)
“I’m a mechanical design
engineer, but my business
knowledge is basic.”
INNOVATION (Process/Alliance)
“I can make the product on my
own, but I am a relative
unknown in the target market.”
Marketing
KeyPartners KeyActivities ValueProposition CustomerRelations CustomerSegments
Tooldevelopment Brokerage
Websitemanagement (Cross-selling)
Etsy.co.uk Outsourcinglibrary EtsyShopOwners
KeyResources DeliveryChannels
InnovationFocus
MicrosoftExcel Etsy.co.uk
MyBestFoot.co.uk
Etsyshopownerfees Adminexpenses(website) MBFtoolssales Outsourcingservicefees
CostStructure RevenueStreams
AMaker'sGuide
to
ScalableProductInnovation
TEST(Experiential)
Technical
KeyPartners KeyActivities ValueProposition CustomerRelations CustomerSegments
Tooldevelopment Brokerage
Websitemanagement (Cross-selling)
Etsy.co.uk Outsourcinglibrary EtsyShopOwners
KeyResources DeliveryChannels
InnovationFocus
MicrosoftExcel Etsy.co.uk
MyBestFoot.co.uk
Etsyshopownerfees Adminexpenses(website) MBFtoolssales Outsourcingservicefees
CostStructure RevenueStreams
AMaker'sGuide
to
ScalableProductInnovation
TEST(Experiential)
Business
KeyPartners KeyActivities ValueProposition CustomerRelations CustomerSegments
Tooldevelopment Brokerage
Websitemanagement (Cross-selling)
Etsy.co.uk Outsourcinglibrary EtsyShopOwners
KeyResources DeliveryChannels
InnovationFocus
MicrosoftExcel Etsy.co.uk
MyBestFoot.co.uk
Etsyshopownerfees Adminexpenses(website) MBFtoolssales Outsourcingservicefees
CostStructure RevenueStreams
AMaker'sGuide
to
ScalableProductInnovation
TEST(Experiential)
ALLIANCE
(White Label)
KeyPartners KeyActivities ValueProposition CustomerRelations CustomerSegments
KeyResources DeliveryChannels
InnovationFocus
5
5
0
0
5 0
ENGAGE(Alliance)
0 0
CostFactors RevenueStreams
5
PROCESS
(Solution Provider)
KeyPartners KeyActivities ValueProposition CustomerRelations CustomerSegments
KeyResources DeliveryChannels
InnovationFocus
5
5
0
0
5 0
ENGAGE(Process)
5 5
CostFactors RevenueStreams
5
MANAGEMENT (Enabling)
“My product needs someone to
handle hi-volume delivery and
has an existing customer base.”
X
X
VALUE CHAIN PLAN
(White Label)
KeyPartners KeyActivities ValueProposition CustomerRelations CustomerSegments
KeyResources DeliveryChannels
InnovationFocus
5
5
0
0
5 0
ENGAGE(Alliance)
0 0
CostFactors RevenueStreams
5
MODEL SCENARIO - ENGINEER
X
Aug-16

10. Non-Core
Management
Eliminate?
Automate?
Delegate?
DIY?
Key Partners Key Activities Value Proposition Customer Relations Customer Segments
Key Resources Delivery Channels
Innovation Focus
5
5
0
0
5 0
ENGAGE (Alliance)
0 0
Cost Factors Revenue Streams
5
Aug-16

11. SERVICES
Minimum Viable innovation
Model (MVM)
Core innovation management
- -
Non-core management
outsourcing
- -
Self-adaptive learning
- -
Large (growing)
business model library
Innovation
planning
templates
Innovation
learning
access (CPD)
Innovation
process
outsourcing
(BPaaS)
Innovation
management
consulting
Aug-16

12. OPTIONS
Banks
Consultancies
Government
Venture Capitalists
MyBestFoot
.co.uk
R&D
Consultancy
Venture
Capitalist
Banks Government
Business Model
Analysis
    
NPI Checklist     
Competency Audit    
Cost-Benefit
Analysis
  
Value Proposition   
Usage Scenarios  
Core Innovation
Management

Non-Core
Outsourcing

Self-adaptive
Learning
Aug-16

13. Membership
engagement
platform host
Maker Spaces
Accelerators
Incubators
Universities
DIY
Innovation
Management
“Grow at Your Own
Pace.”
STEP methodology
Proprietary due-
diligence tools
Business model library
Business model analysis
Core skills building
Business process
appsourcing
MyBestFoot.co.uk
Self-adaptive
professional
development (CPD)
Web hosting fees
Admin & Marketing fees
Learning subscription access
Appsourcing service fees
MyBestFoot.co.uk
Maker networking
Volunteer mentoring
KP KA VP CR CS
KR CH
C£ R£
Courtesy of Osterwalder & Pigneur
MKT
Aug-16

14. Profile
Advocate of Lean Startup and Agile practices
20 years of new product development (NPD)
experience globally
- -
Managed cross-functional portfolio roadmapping
for Consumer, Healthcare & Packaging technologies
- -
Developed self-adaptive professional membership
(academic, corporate, SME) and pricing strategies
for BCS, The Chartered Institute for IT
- -
Visiting lecturer at Royal College of Arts
- -
Entrepreneur mentor for Central Research
Laboratory, The Chartered Institute for IT and
London Business Partnership
- -
BSc. Mechanical Engineering – Cornell University
MSc. Industrial Design – Georgia Tech
MBA - Innovation Management – Imperial College
Contribution Objectives
Apply for a Mentorship role with at least one
of the Maker Group sites
- -
Use proprietary commercial due-diligence
tools to assess Maker business models
- -
Audit and list peer-approved UK supply chains
and automated business management apps
for non-core processes
- -
Perform learning workshops on business
model innovation, portfolio planning, quality
standards, outsourcing, etc.
- -
Develop customer-exclusive, innovation
management learning groups amongst an
engaged P2P Maker community
Aug-16

15. info@mybestfoot.co.uk
Aug-16