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