Presentatie Manu Vollens (Board Of Innovation) rond concept development, assumption thinking en business model design in het kader van #openvrtnewslab

1. The Future of News
VRT NewsLab
September 6, 2014 (Brussels)

2. ?

3. What’s innovative about this product?
Introducing
consumables
Taking away
consumables

4. hello,

5. @manuvollens
corporate disruptor
&
strategy designer
+32484960793
manu@boardofinnovation.com

6. Let’s warm up with an exercises

7. A short QUIZ on creativity & innovation

8. A short QUIZ on creativity & innovation
“Creativity is
actually the same
as innovation”

9. A short QUIZ on creativity & innovation
creativity
production of ideas that are
novel & useful
!
innovation
not only about generating, but also
realizing them

10. A short QUIZ on creativity & innovation
“Implicitly, people
don’t really like
creative ideas”

11. A short QUIZ on creativity & innovation
!
Highly creative ideas carry often a lot
of uncertainty to them
When people feel uncertain, they
prefer ideas that are practical instead
of creative, to reduce uncertainty.

12. A short QUIZ on creativity & innovation
“Chaotic people are
more creative”

13. A short QUIZ on creativity & innovation
It is rather openness to new
experiences that determines creativity.
Other personality characteristics are
weak predictors of creativity

14. A short QUIZ on creativity & innovation
“When you believe you
are creative, you will
indeed come up with
more creative ideas”

15. A short QUIZ on creativity & innovation
Creative self-efficacy is the belief that
one has the ability to produce creative
outcomes. Believing in your own
abilities makes you perform better.

16. Concept
Development

17. Define your concept!

18. Example: paperlater.com

19. Example: paperlater.com
Paper Later
People reading news online
- No time during the week for reading full articles
- During the weekend still like to relax with “real” paper
A custom printed newspaper with your online
bookmarkerd articles of that same week,
delivered to your door!
- fixed price/printed item
- sell add-ons (coffee, breakfast, …)
x

20. Example: paperlater.com
Paper Later
People reading news online
- No time during the week for reading full articles
- During the weekend still like to relax with “real” paper
A custom printed newspaper with your online
bookmarkerd articles of that same week,
delivered to your door!
- fixed price/printed item
- sell add-ons (coffee, breakfast, …)
x x

21. Formula for a good “baseline”
Hot fresh pizza delivered to your door in 30 minutes or it’s free!
(Dominos Pizza)

22. Formula for a good UVP
Instant Clarity Headline
=
End result customer wants
(the promise)
What makes you different?
(meaningful specific)
The buy-in
(guarantee)
Hot fresh pizza delivered to your door in 30 minutes or it’s free!
(Dominos Pizza)

23. How innovative are you?

24. subtitle
Accept the fact that you’ll have
explore to new territory.

25. How innovative are you?

26. Result?
“in china when you're one in a million, there are 1300 people just like you” - Bill Gates

27. Result?
“in china when you're one in a million, there are 1300 people just like you” - Bill Gates
The more data services collect on us:
The more it becomes clear that you are not
that special or unique after all…

28. How innovative are you?
Hier zie je de
artikelen
waarvan wij
100% zekerheid
hebben dat ze je
zullen
interesseren

29. How innovative are you?

30. In order to be more creative…
you’ll need to hack your habits.

31. “We are what we repeatedly do.
Excellence, then, is not an act, but a habit.
Artistotle

32. “What goes unbeknownst to some tennis fans and viewers
are the habits and strange routines that even the most
famous of players do during a match. These mainly odd
routines are highly mental components to athletes'
performance in a match.

33. What are your personal habits?
40% of all your daily actions

34. Habits: the mouse experiment (Duhigg)

35. How to design & hack your habits

37. Innovation Battlefield
What makes you different?

38. Why this tool?
Goal: to challenge the “awesomeness” of our concept

39. Identify those features
that create the wow.
such data
much virtual
so no limit
very experience
wow
many viral
no boring

40. Structured process: The Innovation Battlefied
Pleasure level
“unexpected awesomeness” “harder,better, faster, stronger.”
“Expected essentials”
How hard will a feature be missed if left out?
H
How much pleasure does
this feature bring?
“I don’t care...”
“It hurts, take it away.”
L
L H
Indispensability Level
1 brainstorm template per team

41. We will list all the different
STEP 1
features/characteristics of your concept
f. x
f. y
f. z
f. a
f. b
f. c

42. We will list all the different
STEP 1
features/characteristics of your concept
Rank the features from the perspective
of your key customer.
STEP 2
f. x
f. y
f. z
f. a
f. b
f. c

43. Structured process: The Innovation Battlefied
Pleasure level
“unexpected awesomeness” “harder,better, faster, stronger.”
f. a
f. b
f. x f. y
f. c
“Expected essentials”
How hard will a feature be missed if left out?
H
How much pleasure does
this feature bring?
“I don’t care...”
“It hurts, take it away.”
L
L H
Indispensability Level
f. z
1 brainstorm template per team

44. How to rank the features of your concept?
!
How much happiness
does this feature
bring to our customer?
f. x
Would this feature be missed
by our customer if left out?

45. Let’s look at “service” we all know:

46. What are the features or characteristics of this concept?
f. x
Handle with care
Able to track
Within 3 days
…

47. Pleasure level
“unexpected awesomeness” “harder,better, faster, stronger.”
f. a
f. b
f. x f. y
f. c
“Expected essentials”
How hard will a feature be missed if left out?
H
How much pleasure does
this feature bring?
“I don’t care...”
“It hurts, take it away.”
L
L H
Indispensability Level
f. z
1 brainstorm template per team

48. Pleasure level
“unexpected awesomeness” “harder,better, faster, stronger.”
Handle with care
“Expected essentials”
How hard will a feature be missed if left out?
H
How much pleasure does
this feature bring?
“I don’t care...”
“It hurts, take it away.”
L
L H
Indispensability Level
!
How much happiness
does this feature
bring to our customer?
Would this feature be missed
by our customer if left out?
Able to track
Within 3 days

49. What are the features or characteristics of this concept?
f. x
SMS alert
Free recall
Real-time tracking
…

50. Pleasure level
“unexpected awesomeness” “harder,better, faster, stronger.”
SMS alert
Free recall
Real-time tracking
Handle with care
“Expected essentials”
How hard will a feature be missed if left out?
H
How much pleasure does
this feature bring?
“I don’t care...”
“It hurts, take it away.”
L
L H
Indispensability Level
!
How much happiness
does this feature
bring to our customer?
Would this feature be missed
by our customer if left out?
Able to track
Within 3 days

51. What are the features or characteristics of this concept?
f. x
Cardboard box
FedEx logo
Vans
…

52. Pleasure level
“unexpected awesomeness” “harder,better, faster, stronger.”
SMS alert
Free recall
Real-time tracking
Handle with care
“Expected essentials”
How hard will a feature be missed if left out?
H
How much pleasure does
this feature bring?
“I don’t care...”
“It hurts, take it away.”
L
L H
Indispensability Level
!
How much happiness
does this feature
bring to our customer?
Would this feature be missed
by our customer if left out?
Able to track
Within 3 days
Cardboard
Vans
FedEx Logo

53. What are the features or characteristics of this concept?
f. x
€15/parcel
Be at home
Sign-off
…

54. Pleasure level
“unexpected awesomeness” “harder,better, faster, stronger.”
SMS alert
Free recall
Real-time tracking
Handle with care
“Expected essentials”
How hard will a feature be missed if left out?
H
How much pleasure does
this feature bring?
“I don’t care...”
“It hurts, take it away.”
L
L H
Indispensability Level
!
How much happiness
does this feature
bring to our customer?
Would this feature be missed
by our customer if left out?
Able to track
Within 3 days
Cardboard
Vans
FedEx Logo
Be home
€15/p
Sign-off

55. Identify those features
that create the wow.

57. Pleasure level
“unexpected awesomeness” “harder,better, faster, stronger.”
SMS alert
Free recall
Real-time tracking
Handle with care
“Expected essentials”
How hard will a feature be missed if left out?
H
How much pleasure does
this feature bring?
“I don’t care...”
“It hurts, take it away.”
L
L H
Indispensability Level
!
How much happiness
does this feature
bring to our customer?
Would this feature be missed
by our customer if left out?
Able to track
Within 3 days
Cardboard
Vans
FedEx Logo
Be home
€15/p
Sign-off
<15 min

58. Pleasure level
“unexpected awesomeness” “harder,better, faster, stronger.”
SMS alert
Free recall
Real-time tracking
Handle with care
“Expected essentials”
How hard will a feature be missed if left out?
H
How much pleasure does
this feature bring?
“I don’t care...”
“It hurts, take it away.”
L
L H
Indispensability Level
!
How much happiness
does this feature
bring to our customer?
Would this feature be missed
by our customer if left out?
Able to track
Within 3 days
Cardboard
Vans
FedEx Logo
Be home
€15/p
Sign-off
<15 min

59. New features?

60. Pleasure level
“unexpected awesomeness” “harder,better, faster, stronger.”
SMS alert
Free recall
Real-time tracking
Handle with care
“Expected essentials”
How hard will a feature be missed if left out?
H
How much pleasure does
this feature bring?
“I don’t care...”
“It hurts, take it away.”
L
L H
Indispensability Level
!
How much happiness
does this feature
bring to our customer?
Would this feature be missed
by our customer if left out?
Able to track
Within 3 days
Cardboard
Vans
FedEx Logo
Be home
€15/p
Sign-off
Drone

61. A concept we created 2 years ago:

62. A concept we created 2 years ago:

63. Pleasure level
“unexpected awesomeness” “harder,better, faster, stronger.”
SMS alert
Free recall
Real-time tracking
Handle with care
“Expected essentials”
How hard will a feature be missed if left out?
H
How much pleasure does
this feature bring?
“I don’t care...”
“It hurts, take it away.”
L
L H
Indispensability Level
!
How much happiness
does this feature
bring to our customer?
Would this feature be missed
by our customer if left out?
Able to track
Within 3 days
Cardboard
Vans
FedEx Logo
Be home
€15/p
Sign-off
In car
Frictionless

64. We will list all the different
STEP 1
features/characteristics of your concept
f. x
f. y
f. z
f. a
f. b
f. c
now it’s up to you!

65. We will list all the different
STEP 1
features/characteristics of your concept
Rank the features from the perspective
of your key customer.
STEP 2
f. x
f. y
f. z
f. a
f. b
f. c
now it’s up to you!

66. Assumption
Thinking

67. Make Teams of 2 & sit back to back!

68. How well did you communicate your dog?
what were your assumptions?

69. What was the hypothesis for the iPod?

70. Making Hypothesis, testing Assumptions

71. Making Hypothesis, testing Assumptions

72. What kind of assumptions has your concept?

73. BREAK

74. Business
Model Design

75. Peter, Angry Belgian

76. AirBnB

77. AirBnB

78. Rico, Angry German

79. Uber

80. 15 years ago - 1 dominant business model

81. Today, battle of concepts!

82. Itunes, pay per song

83. Spotify, subscription on music

84. What’s a business model?

85. In a nutshell
An organization’s logic of creating,
delivering and capturing value.

86. In a nutshell
An organization’s logic of creating,
delivering and capturing value.

87. In a nutshell
An organization’s logic of creating,
delivering and capturing value.

88. In a nutshell
An organization’s logic of creating,
delivering and capturing value.

89. In a nutshell
An organization’s logic of creating,
delivering and capturing value.

90. 10 types of innovation
Configuration Offering Experience
Business
model Network Company
Structure Process Product
performance
Product
system Service Channel Brand Customer
Engagement
Volume of innovation efforts
last 10 years
source: Doblin Group, Inno 15

91. 10 types of innovation
Configuration Offering Experience
Business
model Network Company
Structure Process Product
performance
Product
system Service Channel Brand Customer
Engagement
Cumulative Value Creation
last 10 years
source: Doblin Group, Inno 15
less than 2% of projects,
produce more than 90% of value

92. Top Innovators
source: Doblin Group, Inno 15

93. Many components.
Every Business Model =
Many different ingredients.

94. Understand the ingredients!

95. Business Model Blocks

96. - Business Model Blocks -

97. - Business Model Blocks -

98. 5
Money
5
Less Money
Product
Service
Experience
Right
Data
1
Reputation
Credits
Exposure
micro-payments

99. 5
Money
5
Less Money
Product
Service
Experience
Right
Data
1
Reputation
Credits
Exposure
Newspaper printed with ink that repels mosquitoes

100. 5
Money
5
Less Money
Product
Service
Experience
Right
Data
1
Reputation
Credits
Exposure
Echobox

101. 5
Money
5
Less Money
Product
Service
Experience
Right
Data
1
Reputation
Credits
Exposure
Runkeeper

102. 5
Money
5
Less Money
Product
Service
Experience
Right
Data
1
Reputation
Credits
Exposure
ZombiesRun: Running as a game

103. 5
Money
5
Less Money
Product
Service
Experience
Right
Data
1
Reputation
Credits
Exposure
latest news stories printed on…

104. 5
Money
5
Less Money
Product
Service
Experience
Right
Data
1
Reputation
Credits
Exposure
Right to use content, pictures, …

105. 5
Money
5
Less Money
Product
Service
Experience
Right
Data
1
Reputation
Credits
Exposure
Franchising Models

106. 5
Money
5
Less Money
Product
Service
Experience
Right
Data
1
Reputation
Credits
Exposure
Reshare - Foreign press translated into 11 languages

107. 5
Money
5
Less Money
Product
Service
Experience
Right
Data
1
Reputation
Credits
Exposure
Klout: Online influence as reputation

108. 5
Money
5
Less Money
Product
Service
Experience
Right
Data
1
Reputation
Credits
Exposure
justreachout.io

109. 5
Money
5
Less Money
Product
Service
Experience
Right
Data
1
Reputation
Credits
Exposure
Bitcoins

110. 5
Money
5
Less Money
Product
Service
Experience
Right
Data
1
Reputation
Credits
Exposure
Moskow: Pay with Exercises

111. 5
Money
5
Less Money
Product
Service
Experience
Right
Data
1
Reputation
Credits
Exposure
Pay with a Tweet

112. You are in the center!
Your own startup

113. Business Model transactions
Focus to make this flow as smooth as possible. #frictionless

114. Can be more complex.
Many different players, a lot of monetary transactions.

115. Let’s spice it up!

116. 80%
of ideas come from
analogy thinking
G. Jucevi

117. The of News

118. Watchup

119. Watchup

120. Learn from others!
startups, big organisations, …

121. Some of the industries I’ll highlight:
News/ Publishing
Dating
Gaming

122. What to pick?
Free!
for the user.
1.
Paid!
the user = client.
2.

123. Free?
Free = Free

124. Free?

125. Free
(Hidden) other agenda:
- Aim for an early exit.
- Acqui-hire
- Prestige
- …
Rule of thumb:
There is no free lunch.

126. What to pick?
Free!
for the user.
1.
- Pay-what-you-want -

127. Free?
Pay-what-you-want. (including free)
Customer can pick
his own price.

128. Case: Humble Bundle

129. Other industries
#win #fail
Emotional connection
Social/group pressure
…
selling to businesses
social/group pressure
…

130. What to pick?
Free!
for the user.
1.
- Pay-what-you-want -
- Tip jar/ donation -

131. Free?
Tip jar - Donation.
Main difference:
People often get the product for free, but
are free to do an extra transaction.

132. What to pick?
Free!
for the user.
1.
- Pay-what-you-want -
- Tip jar/ donation -
- + Premium -

133. Free, for some.
Different segments of
users.

134. What to pick?
Free!
for the user.
1.
- Pay-what-you-want -
- Tip jar/ donation -
- + Premium -
- bait&hook (add-ons) -

135. Pay for recurring upgrades or consumables
Offer part of your service
for free (or nearly free)

136. Open Source model with paid consulting support

137. What to pick?
Free!
for the user.
1.
Paid!
the user = client.
2.
Reason why people upgrade!

138. Free, but pay for extra features

139. What to pick?
Paid!
the user = client.
2.
- Vanity - reputation -

140. Some people only want “the best”
Ultimate luxury. 12K€ Smartphone (Vertu)

141. Vanity, reputation…
Vanity is so powerful!

142. Looks & Reputuation in games.
To fit in Exclusivity Show Commitment ...

143. Important learning: You need other people to show off!

144. Pay to get noticed. (above the crowd…)
Would you pay to get seen by your friends on Facebook?
Facebook 2012

145. What to pick?
Paid!
the user = client.
2.
- Vanity - reputation -
- Loss-aversion -

146. Another tactic: Lure people in with free + lock-in.
Just give it a try!

147. Pay-as-you-go model.
Switching cost?

148. Pay-as-you-go model.
Switching cost?

149. Similar, pay-per-use.
Blendle - itunes for journalism

150. What to pick?
Paid!
the user = client.
2.
- Vanity - reputation -
- Loss-aversion -
- Privacy/ Anonymity -

151. Privacy features are very powerfull!
Hide your profile.
Incognity mode.

152. What to pick?
Paid!
the user = client.
2.
- Vanity - reputation -
- Loss-aversion -
- Privacy/ Anonymity -
- Mystery/ Surprises -

153. Mystery crates (& surprise upgrades)
similar to Lottery system = very lucrative!

154. Real life mystery crate (on subscription)
Trust & credibility created by 1 person (not a company)

155. Blind dates, anyone?
Crazy Blind Date by OKcupid. (up to $3/date)

156. What to pick?
Paid!
the user = client.
2.
- Vanity - reputation -
- Loss-aversion -
- Privacy/ Anonymity -
- Mystery/ Surprises -
- Helping peers/ gifts -

157. This one is on me…
Yes, Awesome.
I’m a PLUS member.

158. Virtual gifts.
Line messaging app is one to keep an eye on!

159. Crucial question!

160. Learn from gaming.
Question:
Do you allow people to spend (all their) money?

161. I won’t choose!

162. Why does this person get a +120M€ contract?

163. What to pick?
Free!
for the user.
1.
Paid!
the user = client.
2.
Third party
pays the bills.
3.

164. What to pick?
Third party
pays the bills.
3.
- Advertising -

165. Every ad-based model.
The user becomes
the product.

166. Ad-business is straight forward. but hard.
Offer content.
Control eyeballs
Steer attention to ads
Profit.

167. What to pick?
Third party
pays the bills.
3.
- Advertising -
- Affiliate/ Referral -

168. Drive sales for another.
Affiliate & Referral models.

169. Integrated referral links?
Pinterest is the perfect match!

170. What to pick?
Third party
pays the bills.
3.
- Advertising -
- Affiliate/ Referral -
- Data Reseller -

171. Resell data.
One company is more transparant than the other.

172. What’s the value of your own personal data?
Resell your own data via a platform:
example Citizenme.

173. Example: Patients like me.

174. What to pick?
Free!
for the user.
1.
Paid!
the user = client.
2.
Third party
pays the bills.
3.
Broker/
Matchmaking
4.
Can be a mix of all three.

175. Broker/
Matchmaking
4.
- One-side pays -

176. One side pays.

177. Many dating platforms are based on this model.

178. Get paid to date?
Very controversial
of course.

179. Get paid to date.
Other platforms experiment with other rewards than money.

180. Broker/
Matchmaking
4.
- One-side pays -
- Both sides pay -

181. Matchmaking between 2 normal users.
only 1 of the 2 parties pays.

182. Auction platforms.

183. AirBnb & other broker platforms

184. Broker/
Matchmaking
4.
- One-side pays -
- Both sides pay -
- Crowdfunding -

185. Crowdfunding (many variations)
For pre-sales?
Investment?
Donation?

186. Crowdfunding
The product itself is often not the primary driver:
“Be part of something bigger, a revolution in …”

187. Get a return of an investment in someone else.

188. Define your business model!

190. Design your business model

191. Define your Stakeholders

192. Make Transactions

193. Questions? Just Ask!
Manu Vollens - @manuvollens
+32 484 960 793
manu@boardofinnovation.com