@BusModInc

#bmgen

BUSINESS MODEL
INNOVATION
Summary
February 9th, 2016
BUSINESS
MODEL
INNOVATION
SHAKE
YOUR
BUSINESS
MODEL!
 IT’S A JOURNEY
DESIGN? OF
EXPLORATION
1. GENERATE 2. EXPLORE
OPTIONS OPTIONS

3. CHECK
AGAINST
4. REPEAT
DESIGN
CRITERIA
 THERE IS NO
IT’S A PROCESS! SINGLE RIGHT
ANSWER!

KILL YOUR
DARLINGS
INNOVATION
TECHNIQUES
 “THIS PRESENT MOMENT USED
FORESEE THE TO BE THE UNIMAGINABLE
FUTURE.”

FUTURE
Stewart Brand
Co-Founder, Global Business Network
“The Clock of the Long Now”
FRESHWATCHING
APPLY BUSINESS
MODEL PATTERNS

Top 20%

#"of"sales"
Focus on a small
Number of products,
Each selling in high volume

LONG TAIL
Focus on a lage number of products,
each selling in low volumes

CHEAP PRINTER
EXPENSIBE CARTRIDGES #"of"products"
CURRENT MULTI-SIDED
BUSINESS MODEL PLATFORM

PLATFORM
MANAGEMENT
VALUE
SERVICE CUSTOMER
PROPOSITION
PROVISIONING SEGMENT 1
1
PLATFORM
PROMOTION
VALUE
CUSTOMER
PROPOSITION
SEGMENT 2
2

PLATFORM

POSSIBLE
PLATFORM
REVENUE REVENUE FLOW 1
MANAGEMENT AND
FLOW
DEVELOPMENT
SUBSIDY REVENUE FLOW 2

FREE + PREMIUM
=
FREEMIUM
FROM OWNING TO
USING
4 EPICENTERS OF INNOVATION

Resource driven Proposition driven

Customer driven Revenue driven

THINK ABOUT YOUR … WHAT IS
CURRENT BUSINESS THE MOST IMPORTANT
MODEL… PRODUCT?

REMOVE WHAT WILL

NUMBER 1! YOU DO?
“WHAT IF…?”
 HOW CAN WE WHAT IF WE
IMPROVE OUR OFFER OUR BIG DATA
CUSTOMERS PRODUCT FOR
LIFE FREE

HOW CAN WE
IMPROVE OUR
WHERE ELSE RELATIONSHIP
CAN WE SELL WITH OUR
OUR PRODUCTS CUSTOMERS

OUR WORST HOW CAN WE

NIGHTMARE DOUBLE OUR
TOTAL
WHAT IF YOU
REVENUES
WOULD SELL A
SUBSCRIPTION
WHICH
SERVICES CAN
WE OFFER

WHICH NEW
CUSTOMER HOW CAN WE
SEGMENTS WHICH PARTNERS
ELIMINATE
CAN ADD EVEN
CAN WE SERVE FIXED COSTS
MORE VALUE
BUSINESS MODEL OPTION

WHO ARE OUR KEY WHAT KIND OF

PARTNERS? WHAT TYPE OF KEY RELATIONSHIP DO WE
ACTIVITIES DO WE WHAT CUSTOMER NEEDS DO WE MAINTAIN WITH OUR
WHAT IS OUR PERFORM? SATISFY? CUSTOMERS?
MOTIVATION TO WORK
WITH PARTNERS? WHAT PROBLEM DO WE HELP PERSONAL CONTACT? WHO IS OUR
OUR CUSTOMERS SOLVE? AUTOMATIC? SELF- CUSTOMER?
WHAT KEY SERVICE? FOR WHOM DO WE
RESOURCES DO WE WHAT ADVANTAGES DO OUR CREATE VALUE?
ACQUIRE THROUGH PRODUCTS AND SERVICES
PARTNERS? PROVIDE OUR CUSTOMERS CAN WE
WHAT KEY
WITH? DISTINGUISH
RESOURCES DOES
WHAT KEY ACTIVITIES THROUGH WHAT DIFFERENT
OUR PROPOSITION
DO OUR PARTNERS WHAT PRODUCTS AND SERVICES CHANNELS DO WE CUSTOMER
REQUIRE?
PERFORM? DO WE DELIVER TO OUR DELIVER OUR SEGMENTS?
PHYSICAL? CUSTOMERS PRODUCTS AND
INTELLECTUAL? SERVICES?
HUMAN? FINANCIAL?

WHAT ARE THE INHERENT WHAT REVENUE

WHAT IS THE SIZE OF WHAT IS THE SIZE OF EACH
COSTS IN OUR CURRENT STREAMS DO WE
EACH COST? REVENUE STREAM?
BUSINESS MODEL? GENERATE?
 
EVALUATION &
QUALIFICATION
BUSINESS
MODEL
MECHANICS
IS YOUR LETS LOOK
BUSINESS INTO THE
MODEL READY BUSINESS
FOR THE MODEL
FUTURE? MECHANICS…

DEF: BUSINESS MODEL

MECHANICS
7 QUESTIONS
THE INNER WORKINGS OF AN
ORGANIZATION’S BUSINESS
HOW DO YOU PERFORM ON A SCALE
MODEL. FROM 0 TO 10?

How the building blocks of a business model work

together to produce a better outcome 0 2 4 6 8 10

source: www.strategyzer.com source: www.strategyzer.com

 MECHANICS:

MECHANICS:
RECURRING
SWITCHING COSTS REVENUES

HOW EASY OR HARD IS IT IS EVERY SALES A NEW

FOR YOUR CUSTOMER TO EFFORT
SWITCH TO ANOTHER (TRANSACTIONAL) OR
COMPANY? WILL IT RESULT IN
FOLLOW-UP REVENUES
source: www.strategyzer.com
AND PURCHASES? source: www.strategyzer.com

MECHANICS:

MECHANICS: GAME CHANGING

EARN BEFORE YOU COST STRUCTURE
SPEND
IS YOUR COST
ARE YOU EARNING MONEY STRUCTURE
BEFORE YOU ARE SUBSTANTIALLY
SPENDING IT DIFFERENT AND BETTER
(e.g. for production, platforms etc.)? THAN THAT OF
source: www.strategyzer.com
COMPETITORS? source: www.strategyzer.com
 MECHANICS:
MECHANICS:
GETTING OTHERS TO SCALABILITY
DO THE WORK
HOW RAPIDLY AND HOW
HOW MUCH DOES YOUR EASILY CAN YOU GROW
BUSINESS MODEL GET YOUR BUSINESS MODEL
CUSTOMERS OR THIRD WITHOUT HITTING
PARTIES TO CREATE ROADBLOCKS
VALUE FOR YOU? (e.g. infrastructure, customer support etc.)

source: www.strategyzer.com source: www.strategyzer.com

MECHANICS:
PROTECTION FROM
COMPETITION
WHAT IS YOUR
HOW MUCH IS YOUR
BUSINESS MODEL
SCORE?
PROTECTING YOU FROM
COMPETITION?
source: www.strategyzer.com
BUSINESS
MODEL
VALIDATION
THINK ABOUT
YOUR NEW
BUSINESS MODEL
AS IF YOU ARE A
START-UP
WHAT IS ACTUALLY
A START-UP
 A START-UP IS A
“A START-UP IS TEMPORARY
ORGANIZATION IN
NOT A SMALL
SEARCH FOR A
VERSION OF A PROFITABLE, SCALABLE
LARGE COMPANY.” AND REPEATABLE
BUSINESS MODEL…
Steve Blank

A START-UP IS A (LARGE) COMPANY

ABOUT SEARCHING IS ABOUT EXECUTION

Steve Blank Steve Blank

YOU NEED TO YOU NEED TO
CLARIFY YOUR TEST YOUR
ASSUMPTIONS ASSUMPTIONS

GET OUT OF THE

BUILDING

Source: Alex Osterwalder Instagram

WATCH FIRST LOOK FOR NEEDS
THEN ASK NOT SOLUTIONS

PIVOT YOUR STOP FEATURITIS NOW

BUSINESS MODEL
TEST CARD

Step 1 Hypothesis:
We believe that…

Step 2 Test
To verify that, we will

Step 3 Metric
And measure

Step 4 Criteria
We were right if…
10 TIPS FOR
BUSINESS
MODEL
INNOVATION
1
START WITH THE AS-IS.

MAP THE CURRENT

BUSINESS MODEL,
CONTEXT AND VISION
ON A LARGE POSTER
WITH 3M POST IT
NOTES.
2
DON’T TRY THIS ALONE.
LET YOUR COLLEAGUES
OR FRIENDS HELP YOU!
3
LEARN FROM OTHER
BUSINESS MODELS!
4
APPLY BUSINESS
MODEL PATTERNS.
5
THINK AS A BUSINESS
MODEL DESIGNER.
DO NOT RELY ON 1
MODEL, BUILD
PROTOTYPES.

‘PROTOTYPING LET’S
YOU FAIL EARLY TO
SUCCEED SOONER’
IDEO.COM
6
“VISIT THE
FUTURE
FREQUENTLY!”
7
“SHOW ME
THE MONEY!”
8
“DRAWING IS THE
NEW WRITING”

THINK & WORK

VISUALLY!
9
DON’T RELY ON
YOUR
ASSUMPTIONS.
10
JUST DO IT!
CONTACT US FOR MORE INFORMATION!

PATRICK VAN MAAIKE

DER PIJL DOYER
CEO & STRATEGY DESIGNER
STRATEGY DESIGNER Business Models Inc.
Business Models Inc.

Patrick@businessmodelsinc.com Maaike.doyer@businessmodelsinc.com

+31 6 51 29 57 78 +31 6 81 82 25 18
+1 415 854 87 12
DESIGNING BETTER BUSINESSES