The document discusses the importance of data-driven business model innovation, emphasizing the need to rethink traditional approaches from a customer perspective. It highlights examples from various industries, like Bosch and Kodak, to illustrate the impact of data utilization and the shift from product-focused to customer-centric innovation. The author encourages businesses to understand their data, create compelling value propositions, and continuously adapt to the evolving marketplace.

1. Sights Conference
Dr. Patrick Stähler, fluidminds
Follow the
white rabbit:
Data Insight
Driven
Business Model
Innovation

2. Who do you want to be
in the data insight game?
The prey or the hunter?

3. That’s me, Patrick Stähler, innovator
by chance of the concept of business
model innovation, entrepreneur,
blogger, book author and digital
since 1995

4. Something special on this picture?
Who took this picture? Actually, was
this picture ever taken? If not, who
created it?

5. An algorithm from Google
created automatically this
picture from these originals

6. What do the colors mean?
Beyond optimization of the past
We have to
unlearn the past and
rethink our business
from the customer
perspective.
3
Is Kodak innovative?
What were the tacit
assumptions behind
Kodak’s innovations?
Take 5 min and discuss
it with your neighbors.
Take-aways are in red
Exercises and questions
for you

7. Who knows more about
temperature, humidity
and pressure than
anybody else in the
world? But company
does not even know it

8. Bosch is world market leader
of engine control system that
measures temperature,
humidity, etc. However, the
date is trapped in the car.
However, that is changing..

9. 2017. The German car
manufacturers want to use
the data from sensors to
make driving safer but there
are more use cases…

10. However, who does
even know more
about the world?

11. Connecting the dots of data.
Who thought that a digital
calendar is great business aka
data source if connected with
other data
Place
Map
Calendar
Mail

12. Google understood that
a phone is a not a phone
anymore but a location
and travel sensor

13. Google maps is the central
for mapping location-based
data including real-time
data of movement

14. Picture search allows
Google to understand what
is on the picture

15. With Google Streetview
they even know how the
streets look and even have
pictures form the inside

16. With the existing data,
they can create 3D
models of the real world

17. What would happen if we
have the real-time data
from 20% of the fields?

18. Agricircle, a Swiss Startup founded
2012, is helping farmers to better
manage their fields. It‘s state of the
art for data aggregation, collection
and analytics, but with little support…

19. Monsanto is doing it. It paid
2013 1.1bn for The Climate
Corporation. In 2014, it has the
data of 20% of corn and
soybean acreage in the US

20. Pretty scary, if one company
controls the seeds, the
herbicide and now also the
data like Monsanto

21. Mr Blofeld would have
loved to have this
information on food on his
way to world domination

22. Data Economics have a strong tendency
to natural monopolies due to network
effects on the demand side and
economies of scale on supply side.
So there is a strong ethical side to data
driven businesses

23. Who will go for the race of
audio data? Who will
understand the content of
audio?

24. Will the hearing aid industry be the
master of audio data? Currently, they
just amplify audio and filter
frequencies. However, they do not
understand the content of audio

25. Or will it be Google, the
master of text understanding
with Google home?

26. Or Amazon with Amazon
Echo and Alexa

27. The fight is who will dominate
the voice interface aka voice data
to the world. Amazon, Google,
Microsoft or Apple?

28. Image you had the portfolio
data from 10% of all global
assets under management.
What would you do?

29. BlackRock has the data of
USD 15 trillion Assets under
Management of which 10
trillion are from 25.000
external portfolio managers
3.1
15
GDP Germany BlackRock Aladdin AUM

30. BlackRocks gets the data
because it offers a superior
service in providing better
risk and portfolio
management

31. data/ technology value
creates
X
enables
business model
Your data or technology does not create value.
It is the business model

32. Erlang is a 31 year old programming
language developed by Ericsson
and widely used to program telco
switches. However, you can do
more…

33. Any idea for
which disruptive
business model
Erlang was the
foundation?

34. WhatsApp used Erlang to build its
backbone messaging system.
1 bn users (2016), acquired by
Facebook for 19 bn USD (2014),
when it had 55 employees

35. Not the data/
technology itself is
valuable, but what
business model we can
base on it is decisive for
value creation
1

36. Business Model Innovation
Würth - from C-parts reseller to C-parts
management for customers based on data
Value Proposition
Reducing the excessive procurement costs
compared to C-parts value by delivering
the right parts, at the right place, right
time, right quantity, right quality and right
price that means lower total costs of
procurement

37. amadeus – the travel data company
Amadeus provides travel technology solutions
to help travel professionals (travel agencies,
hotels, airlines, airports, etc.) to serve their
customers better.
Originally owned by Airlines like Lufthansa
Market Cap. €23 billion, 27.1% EBIT margin,
Lufthansa Market cap €5.8 billion, 7.8% EBIT
margin*
Business Model Innovation
It concentrates on the data about travel and
has no assets in travel infrastructure like hotels,
planes, etc.*2016 data, stock price per 23.June 17

38. Kodak invented the digital camera
in 1973 …

39. …was the partner of choice for
Apple to enter the digital camera
market

40. …invented an app so you can
seamlessly print your pictures…

41. So you can easily hold your
pictures in your hand.

42. Was Kodak innovative?
What were the tacit
assumptions behind
Kodak’s innovations?

43. Kodak was highly innovative, but
did not understand that digital is
more than product innovation.

44. Digital was not about the best
quality that traditional customers
of Kodak loved

45. From keeping to sharing
memories – Digital solves
new jobs for customers

46. Customers discovered new uses,
no sane person would have ever
thought off

47. Tradition is not a
strategy.* A transfer
of the current business
model in the digital
world is not enough
2

48. Innovation can come with very
different horizons depending on
the closeness to current business
and time
Value
Time
Horizon 1
extend the current business
Horizon 2
Business builders develop new opportunities
Horizon 3
Visionaries create viable options
1
2
3

49. Competition is changing. New
competitors do not care for the
past and compete on Horizon 2
and 3, TODAY!
Value
Time
H1
H2
H3

50. Value
Time
Hotels battle the data war on
all 3 horizons already today
The future is
today in the hotel
industry driven by
new-comers!
H1
H2
H3

51. product & process innovation
are not sufficient
Innovation is not a
guarantee for survival
in a hypercompetitive
world. The right
innovation is
3

52. You had an answer in the past,
how about the future?
Why should your
business exist?

53. The Purpose of a
Company Is to
Create a Customer
(Peter Drucker) and
not to have low
costs or products
nobody needs

54. Why should I listen to you
as a customer?
Why should I engage with
you as a customer?
Do you have something
relevant to say?

55. Where do you create
your WOW?

56. Customer job to be done
We have to learn to unlearn.
We have to learn to see
beyond the product and
understand what the customer
really wants.
Customer needs are to
imprecise. Let’s talk about
jobs-to-be-done.

57. Do we need trucks and truck
drivers?

58. We need to move goods around.
Human driven trucks are just one
mean to do this.

59. Do we need accountants?

60. Actually, accountants are just
one mean to get our books
done, manage cash or get
expenses ready for taxes

61. Do we need taxis?

62. People want to move easily and with
convenience in cities.
Taxis are just one mean to do it. Uber
just connected the dots

63. Beyond optimization of the past
We have to
unlearn the past and
rethink our business
from the customer
perspective
4

64. Do we need hotels?

65. Or do we just need
a bed like at Formule 1?

66. Or do we need a place with
lovely people to connect to the
place like at AirBnB?

67. 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.

68. 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 lives in the city

69. 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

70. Start dreaming from
badly solved jobs-to-be-
done of your customers.
Use technology to build
new business models upon
and create a Wow!
5

71. The laws of the data game:
1. Understand what data you have
today
2. Understand what data do you want to
have from others
3. Create a value proposition that is so
convincing that customers share their
data
4. Analyze the meta data and give
insights and value back to your
customers
6

72. JUST DO IT.

73. More Information on
http://blog.business-model-innovation.com
Dr. oec. Patrick Stähler
fluidminds GmbH
Kreuzstrasse 2
CH-8008 Zürich
Patrick.Staehler@fluidminds.ch
www.fluidminds.ch
blog.business-model-innovation.com

74. Slides are based on the Book
„Das Richtige gründen:
Werkzeugkasten für
Unternehmer“
Available at any bookstore or
at Amazon.de
More on blog.business-model-
innovation.com

75. 1) What data do you have in or are
triggered by your company’s
activities which you do not use
today and which might be valuable?
(10min)
2) a) What jobs can you solve with this
data for your customers?
b) What value can you extract from
the data for your company?
(totally 20 min)