Download - Innovation and Business Models
MICROLECTURE
INNOVATION +
BUSINESS MODELS
DISRUPTIVE INNOVATORSLady Gaga Mark Zuckerberg Oprah Winfrey Steve Jobs
Label Musician Entrepreneur Talk Show Host Inventor
Areas of Innovation
Notable in Business
Fast Company: Most Creative
Person in Business
Creative Consultant -
Polaroid
Time Magazine Person of the Year
World’s Youngest Billionaire
Barron’s: World’s Best CEO
Forbes: CEO of the Decade
CNN, Time, Life Magazines: Most
Influential Woman in the World
MusicMarketing
Business ModelFashionTheater
Activism
TechnologySocial Media
Business Model
MediaBranding
Business ModelPhilanthropy
TechnologyBranding
Business ModelExperience Design
CONTEXT: IDEO WAYS TO GROW MATRIX
NEW STUFF TO SAME OLD PEOPLE
TWEAK PRODUCT, SERVICE OR BRAND
SELL OLD STUFF TO NEW PEOPLE
SELL NEW STUFF TO NEW PEOPLE
Enabling Processassembled capabilities you
buy from others
Core Processproprietary process that add value
Servicehow you serve your customers
Channelhow you connect customers to
offering
Customer Experiencehow you create an integrated
experience for customers
Brandhow you express your
offering’s benefits & values to customers
FINANCE
BusinessModel Networking
PROCESS
Enabling Process
Core Process
OFFERING
Product Perform
ProductSystem Service
DELIVERY
Channel Brand CustomerExperience
Business Model how the enterprise makes money
Networking enterprise structure, value chain & partnering
Product Performancebasic features-performance & function
Product Systemextended system around the offering
CONTEXT: DOBLIN 10 TYPES OF INNOVATION
The majority of resources and effort are concentrated on the product offering
CONTEXT: DOBLIN- INVESTMENT IN INNOVATION
The greatest return on innovation effort falls outside of the product offering.
CONTEXT: DOBLIN ROI IN INNOVATION
WHAT IS INNOVATION?
EXAMPLES OF DISRUPTIVE INNOVATION
DESIRABLEILLUMINATION
VIABLEINFRASTRUCTURE + DELIVERY
VALUABLEMONETIZATION OF SERVICE
AGE OLD EXAMPLE IN A NEW LIGHT
DESIRABLECONVENIENCE, SIMPLICITY, COFFEE ON DEMAND
VIABLEPATENTED BREWING PROCESS
VALUABLEBUILT IN REOCCURRING REVENUE, HIGH SWITCHING COSTS
JUST A CUP OF JOE?
1998199920 002001
WHAT IS REALLY INNOVATIVE ABOUT THE IPOD? THE PRODUCT?
2006 2007 2008 2009 2010 2011
LIFECYCLE OF A DISRUPTIVE PRODUCT INNOVATION
Flip Video Launched May 2006 HD Flip Video Launched
WHAT EXACTLY IS A BUSINESS MODEL?
BUSINESS MODEL= ENGINE
FINANCIAL MODEL= FUEL OR ENERGY
BUSINESS PLAN= ROAD OR TRIP PLAN
BUSINESS MODELS: RELATED BUT OFTEN CONFUSED
(C) Alex Osterwalder Business Model Innovation Hub
CUSTOMERSCUSTOMER SEGMENTSCUSTOMER RELATIONSHIPSDISTRIBUTION CHANNELS
INFRASTRUCTUREKEY PARTNERSHIPS
KEY ACTIVITIESKEY RELATIONSHIPS
VALUE PROPOSITION
PROFIT EQUATIONREVENUE STREAMSCOST STRUCTURE
THE FOUR COMPONENTS OF THE BUSINESS MODEL
INNOVATION IS NOT JUST ABOUT PRODUCTS
DISRUPTIVE INNOVATION IS DESIRABLE, VIABLE, AND VALUABLE
SPEED OF INNOVATION CYCLES ARE RAPIDLY INCREASING
START WITH THE USER IN MIND
SOME KEY TAKE AWAYS