malang digital core - business model navigator

Business Model Navigator

Evans WinataBusiness Coach

A strong business model is the bedrock to business success.But all too often we fail to adapt, clinging to outdated models that are no longer delivering the results we need.

Disruptive ForcesBe very afraid…

Disruptive ForcesTECHNOLOGY

Politics, Competition, Economy,Fiscal, Social, Regulation

Disruptive ForcesYou can’t ignoreIt works. For you or Against you.

Crafting A Business Model

The challenge of business model innovation

Challenge 1Thinking outside of one’s own dominant industry logic

Challenge 2Difficulty of thinking in terms of business models rather than of technologies and products

Challenge 3The lack of systematic tools

Strategies for new business ideas

Transfer Combine Leverage

Add-onAdditional charge for extras

Extras, Customization

Premium

Add-onAdditional charge for extras

Add-onAdditional charge for extras

Start from basic productPrerequisites

AffiliationYour success is my success

ReferralCommission

AffiliationYour success is my success

AffiliationYour success is my success

Strong ecosystemPassionate customersWin-win situation

Prerequisites

AffiliationYour success is my success

AikidoStrength into weakness

Complete difference

No confrontation

AikidoStrength into weakness

Think outside the boxPrerequisites

AikidoStrength into weakness

AuctionBid for more profit

Never pay more than I will

Efficient product allocation

AuctionBid for more profit

TrafficTransparent

Prerequisites

AuctionBid for more profit

Cash MachineNegative cash cycle

Settling debts or making new investments, lower interest payments or speed up growth

Cash conversion cycle

Provide liquidity

Cash MachineNegative cash cycle

Cash MachineNegative cash cycle

PrerequisitesBuild to orderHigh perceived value

Cross-sellingKilling two birds with one stone

More value from a single source

Leverage existing resourcesComplementary products and services

Cross-sellingKilling two birds with one stone

Cross-sellingKilling two birds with one stone

PrerequisitesCombination of low margin and high margin products/services

CrowdfundingTaking finance by swarm

Circle of investors, sales, donations Project exposure

CrowdfundingTaking finance by swarm

PrerequisitesIdeasInvestors

CrowdfundingTaking finance by swarm

CrowdsourcingOutsourcing to the crowd

Open callCheaper and more effective solutions

PrerequisitesOpen ideas and innovation

CrowdsourcingOutsourcing to the crowd

Customer LoyaltyIncentives for long-lasting fidelity

Special offers or discountsLoyal customers

More values to retain customers

Customer LoyaltyIncentives for long-lasting fidelity

PrerequisitesCustomer-centric cultures

Customer LoyaltyIncentives for long-lasting fidelity

DigitizationDigitizing physical products

Online process and functions

Transforming products or service into digital variant

DigitizationDigitizing physical products

Direct SellingSkipping the middleman

Cut out middlemen

Eliminate retail profit margins or costs Direct interaction

Direct SellingSkipping the middleman

PrerequisitesPrecise control of the entire sales process

Direct SellingSkipping the middleman

E-commerceTransparency and savings

Trading by means of telecommunications networks

Delivering products or services via online channels

Cost savings

E-commerceTransparency and savings

Experience SellingProducts appealing to the emotions

Experience and impression

Customer’s satisfaction shapes customer’s loyalty

Promotions, retail design, sales personnel, product functionality,

availability, packaging

Experience SellingProducts appealing to the emotions

PrerequisitesBe uniqueForge a direct bond with customers

Experience SellingProducts appealing to the emotions

Flat RateAll you can eat

Use as much as you wish

Set the upper limit

Prerequisites

Flat RateAll you can eat

Manageable costsDiminishing marginal utilityCost-efficient billing

FranchisingAll for one and one for all

Minimizing business risk to a proven business model

Franchisees

Win-win solution business

Prerequisites

FranchisingAll for one and one for all

KnowledgeBrand strength

FreemiumFree basic or premium versions

Additional charge for premium version

Paying customers

FreemiumFree basic or premium versions

Prerequisites

FreemiumFree basic or premium versions

Internet-based businesses

Guaranteed AvailabilityAssured access to the products

Ensuring zero downtime

Premium price from long-run customers

Repair and maintenance service

Guaranteed AvailabilityAssured access to the products

Prerequisites

Guaranteed AvailabilityAssured access to the products

Handling unforeseen customer crises

Hidden RevenueSeeking alternative sources

Third party Integrate advertisements into the offering

Hidden RevenueSeeking alternative sources

Prerequisites

Hidden RevenueSeeking alternative sources

Business in advertising and customer data trading

Leverage Customer DataMaking use of what you know

Centered on the acquisition and analysis of data

Customer data

Leverage Customer DataMaking use of what you know

Prerequisites

Leverage Customer DataMaking use of what you know

Combine with Hidden Revenue streamsAnalyze and evaluate customer behavior

LicensingCommercializing intellectual property

Creating intellectual property

Commercializing the rightsDiversify revenues and risks

PrerequisitesKnowledge and technology intensive contexts

LicensingCommercializing intellectual property

Lock-inForcing loyalty with high switching costs

Customer dependent Customers are tied by making them get worse consequences if

they use other providers

Lock-inForcing loyalty with high switching costs

Lock-inForcing loyalty with high switching costs

Contractual agreementSophisticated technologyIncentives for customer loyalty

Prerequisites

Long TailLittle and often fills the purse

Selling small quantities of a very large range of products

Wide range sold in the long run

Helping customers find the niche products without difficulty

Long TailLittle and often fills the purse

PrerequisitesApply knowledge of complexityKeep complexity costs

Long TailLittle and often fills the purse

No FrillsWhatever, as long as it’s cheap

Minimum value propositions

Minimizing costsMass market

No FrillsWhatever, as long as it’s cheap

PrerequisitesCost-conscious customersStandardized products, processes and services

Open SourceWorking together to create a free solution

Free products for public

Public community develop productsCommunity members

Open SourceWorking together to create a free solution

PrerequisitesSetting standards, sharing resources and risksCreating a community of users

Pay Per UsePay as you go

Pay what you use

Based on the unit or the duration used

PrerequisitesThe Internet of Things

Pay Per UsePay as you go

Peer to PeerDealing from person to person

Offering specific services or products or sharing information and experiences

Charging transaction fees, advertising or donations

Efficient handling of transactions

PrerequisitesOnline communitiesIncrease marginal utility

Peer to PeerDealing from person to person

Performance-based ContractingBasing fees on results

The price of a product is the services it renders

Customers pay at specified amount

Integrated into customers’ value creation processes

PrerequisitesMonetize existing knowledge and servicesDeal with complex products

Performance-based ContractingBasing fees on results

Razor and BladeBait and hook

Basic product is at a bargain price or even for free

High-priced additional products

Patenting the complementary product, building a strong brand

PrerequisitesCombine with Lock-in effectStrengthen your patenting and branding capabilities

Razor and BladeBait and hook

Rent Instead of BuyPay for Temporary

No need to purchase of things you don’t afford

Greater sales potential

PrerequisitesFixed-priced products or services

Rent Instead of BuyPay for Temporary

Reverse InnovationLearning from good-enough solutions

Repackaged and resold products

From developing to developed market

PrerequisitesSubstantial R&D or innovation capabilitiesBased in higher-income economy

Reverse InnovationLearning from good-enough solutions

Self-servicePutting the customer to workValue creation for the customers

Large savings potential

Giving a lower price

PrerequisitesAdditional work in exchange for lower price

Self-servicePutting the customer to work

Shop in ShopPiggybacking

Establishing an independent store in another company’s retail space

Flexible alternative and income

Integrating business in another company

PrerequisitesDistributors or intermediariesRetail platform

Shop in ShopPiggybacking

Solution ProviderAll you need at one-stop

Various products and services in a single source

Close relationship with customers Information, training, increasing efficiency and performance

PrerequisitesWide networkAfter-sales services

Solution ProviderAll you need at one-stop

SubscriptionTaking a season ticket to services

Products or services received regularly

In advance or at regular interval

Regular basis products or servicesGiving additional value

Prerequisites

SubscriptionTaking a season ticket to services

SupermarketLarge selection and small prices under one roof

A variety of available products in one place

Satisfaction generates demand Low prices

PrerequisitesEconomies of scale and scope come into playA wide range of products

SupermarketLarge selection and small prices under one roof

Trash to CashTurning old rubbish into new cash

Recycling and reusing old materials

Cheaper materials gain more profit

Impressions from refined products

PrerequisitesCreativitySustainability

Trash to CashTurning old rubbish into new cash

Two-sided MarketAttracting indirect network effects

Mutual benefit between two groups using a platform

Advertisers or third party Customers using the platform

PrerequisitesUnderstand who your relevant stakeholders are and how they are connected

Two-sided MarketAttracting indirect network effects

Ultimate LuxuryMore for more

Highest quality privileges and services

Wealthy market Branding, competent and knowledgeable sales representatives, memorable special

events for customers

PrerequisitesUniquenessSelf-actualization

Ultimate LuxuryMore for more

White LabelOwn brand strategy

Different names, different markets

Product manufacturing cost

PrerequisitesTargeting price-sensitive customersIntroducing a limited number of White Label products

White LabelOwn brand strategy

Limit risk by prototyping.A picture = 1000 words.A prototype = 1000 pictures.

Innovate. Continuously.

Evans Winatawww.evanswinata.com