The document explores the concept of the government as a 'launching customer' for businesses, highlighting its potential as a facilitator of innovation and growth. It discusses the benefits for companies in leveraging government partnerships to navigate challenges and scale successfully. Additionally, it emphasizes a shift in approach, recommending that businesses treat government entities similarly to venture capitalists in terms of collaboration and model development.

1. 4.3 The government as launching customer: a great opportunity for companies 1
CONFIDENTIALCONFIDENTIAL
THE GOVERNMENT AS A LAUNCHING CUSTOMER:
A GREAT OPPORTUNITY FOR COMPANIES
Rutger Steens
Innovation Consultant
Rutger.steens@verhaert.com
TRACK 4
MyFutureGovernment

2. 4.3 The government as launching customer: a great opportunity for companies 2
CONFIDENTIAL
1969
YEARS
PIONEERING
INNOVATION
20191969

3. 4.3 The government as launching customer: a great opportunity for companies 3
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20191999
1999
B É T A

4. 4.3 The government as launching customer: a great opportunity for companies 4
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20191999
1999

5. 4.3 The government as launching customer: a great opportunity for companies 5
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1999 2019
DIGITAL NETWORK MODELS
Digital
channels
activities
resources

6. 4.3 The government as launching customer: a great opportunity for companies 6
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1999 2019
SMART CITY CHALLENGES
77%
63%
Imec Smart City Meter 2019
Mobility Livability

7. 4.3 The government as launching customer: a great opportunity for companies 7
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1999 2019
GovernmentBusiness
“SERVING A CITY”

8. 4.3 The government as launching customer: a great opportunity for companies 8
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1999 2019
Consumers
“SERVING CONSUMERS”
Business
C

9. 4.3 The government as launching customer: a great opportunity for companies 9
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1999 2019
EXCITING EXPLOSION OF B2C
Endangering usage
Public nuisance

10. 4.3 The government as launching customer: a great opportunity for companies 10
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STILL USING ‘SINGULAR’ MODELS
B2B B2C
C2CTransaction / multisided
platforms
B2G
1999 2019

11. 4.3 The government as launching customer: a great opportunity for companies 11
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NETWORK MODELS REACH FURTHER
1999 2019
B2X

12. 4.3 The government as launching customer: a great opportunity for companies 12
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NETWORK MODELS REACH FURTHER
1999 2019
B2X

13. 4.3 The government as launching customer: a great opportunity for companies 13
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NETWORK MODELS REACH FURTHER
1999 2019
B2X2CB2X

14. 4.3 The government as launching customer: a great opportunity for companies 14
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Discovering a network model
THEY GO BEYOND YOUR CUSTOMER
B2B B2C

15. 4.3 The government as launching customer: a great opportunity for companies 15
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Discovering a network model
B2B B2C
CREATING AN ADDITIONAL RELATIONSHIP

16. 4.3 The government as launching customer: a great opportunity for companies 16
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Discovering a network model
B B C2 2
A ‘HIGH END’ MALL AS EXAMPLE
M2

17. 4.3 The government as launching customer: a great opportunity for companies 17
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Discovering a network model
CONSUMERS HAVE A RELATION WITH THE MALL = B2B2C
M2

18. 4.3 The government as launching customer: a great opportunity for companies 18
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Discovering a network model
A B2B2C EXAMPLE

19. 4.3 The government as launching customer: a great opportunity for companies 19
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Discovering a network model
1
st
B2B2C/NETWORK MODELS HAVE B2B CHARACTERISTICS
LAUNCHING
CUSTOMER
Customer
Who is willing to help you
through the last steps and
promote your business

20. 4.3 The government as launching customer: a great opportunity for companies 20
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The launching customer
2015
THE 1st WHO HELPS YOU SCALE

21. 4.3 The government as launching customer: a great opportunity for companies 21
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The government as launching customer
B2B B2C
B2C HAS A SIMILAR PURPOSE

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The government as launching customer
B2G G2C
B2C HAS A SIMILAR PURPOSE
CITIZENS

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The government as launching customer
A SUCCESFULL CASE FROM THE NETHERLANDS

24. 4.3 The government as launching customer: a great opportunity for companies 24
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Endangering usagePublic nuisance
The government as launching customer
Achievable? Desirable? Useful? Permissible?Helpful?
FACES A LOT OF ADDITIONAL CHALLENGES
USERS NON-USERS
Bouwen aan morgen, 2019, D.Robberecht, S.Smet

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The launching customer characteristics
A ‘LEAD USER’
THE “CREATIVE” CUSTOMER
PROMOTES YOUR BUSINESS
REQUIREMENTS FOR SCALE
Lead Users
No commercial
solutions available
# people in need of
a new solution
Early
Adopters
Early Majority Late Majority Laggards
Inflated
expectations
E. Von Hippel 1986

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Government & launching customer behavior
RESEARCH EARLY STAGE TRANSITION GROWTH STAGE
Research Seed Series A Series B, C, D
Fundamental research Line up evidence De-risk Have machinery for growth
IN A START-UP RUNWAY
A working proposition
Bouwen aan morgen, D.Robberecht, S.Smet
Angular Ventures

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Government & launching customer behavior
RESEARCH EARLY STAGE TRANSITION GROWTH STAGE
66,2 % 53,0 % 33,7 % 20,1%
Riskof
Failure
Government VC Firms Growth VC Firms
VCs TRY TO REDUCE RISK
Bouwen aan morgen, D.Robberecht, S.Smet
M. Mazzucato, 2018

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Growth FirmsGovernment VC Firms
Government & launching customer behavior
RESEARCH EARLY STAGE TRANSITION GROWTH STAGE
66,2 % 20,1%
Riskof
Failure
LAUNCHING CUSTOMER
SERIES B
LAUNCHING CUSTOMERS TAKE LOWER RISKS

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Conditions for a government as launching customer
‘Serving a City’ does not mean selling a product to the government anymore
APPROACH GOV AS YOU WOULD A VC

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Conditions for a government as launching customer
APPROACH WITH A BUSINESS MODEL
Desirability Network
effects
Usability Scalability Revenue
Sources
In cooperation with A. Rampell

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Conditions for a government as launching customer
APPROACH A BUSINESS MODEL AS A VC WOULD DO
Entrepreneurship
INNOVATION
I – CAPACITY
E – CAPACITY
Innovation
Bouwen aan morgen, 2019, D.Robberecht, S.Smet

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Conditions for a government as launching customer
I&E - DIGITAL POLICIES
Integration ease, streamlined access,
insights as a foundation – E-Stonia (EE)
I - REGULATORY PLAYFUL
Balance flexibility and clarity to propel
innovation initiatives –
Financial Conduct Authority (UK)
I - DESIGN THE FOUNDATION
Invest to help citizen / customer centric
research and conceptualization – PIO (BE)
E - REDEFINE REQUIREMENTS
Redefine requirements so procurement focuses on
outcomes and goals instead of history and approach –
Defense Innovation Unit (US)
E - RAPID PROCUREMENT
Facilitate the uptake of new ideas on a
startup inspired timeline – Navy (US)
I - USE OTAs (Other Transaction Authorities)
Go external to fast and flexibly contract or buy
technology to test prototype technology –
Multitude of states (US)
HELP THEM THINK OF YOUR OWN CITIZENS
MIT Innovation Initiative, McKinsey, Verhaert New Products & Services

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In conclusion
A B2G2C APPROACH TARGETS THE GOVERNMENT AS
A LAUNCHING CUSTOMER

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In conclusion
ACTIVILY ADDRESSING CHALLENGES IN COMPLEX CITY NETWORKS
BY TAKING A VC INSPIRED APPROACH IN THE GROWTH STAGE
A ‘LEAD USER’
THE “CREATIVE” CUSTOMER
PROMOTES YOUR BUSINESS
REQUIREMENTS FOR SCALE

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One group, five brands
Our services are marketed through 5 brands each addressing
specific missions in product development.
INTEGRATED PRODUCT DEVELOPMENT
ON-SITE PRODUCT
DEVELOPMENT
DIGITAL PRODUCT
DEVELOPMENT
OPTICAL PRODUCT
DEVELOPMENT

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THE LAUNCHING CUSTOMER CHARACTERISTICS
A ‘LEAD USER’
THE “CREATIVE” CUSTOMER
PROMOTES YOUR BUSINESS
REQUIREMENTS FOR SCALE
Lead Users
No commercial
solutions available
Plateau of productivity
Peak of inflated
expectations
# people in need of
a new solution
Visibility of
expectations
Early
Adopters
Early Majority Late Majority Laggards