presentation global innovation forum london nov 2014
DESCRIPTION
Presentation by Maaike Doyer and Doug Morwood of Business Models Inc. during workshop Practical Tools to Re-invent your Business (Model) at the Global Innovation Forum in London on November 20th 2014.TRANSCRIPT
Practical Tools To Re-design Your Business Model
November 20th, 2014
@busmodinc #bmgen
WHAT ARE WE GOING TO DO TODAY?
WE NEED
NEW TOOLS NEW SKILLS NEW MINDSET
WHY?
BUSINESS AS USUAL IS DEAD
BUSINESS PLANS ARE SO 1980
OUR SHARED GOAL, A BETTER BUSINESS
WE WILL GIVE YOU TOOLS
IMPORTANT LESSONS FOR YOUR BUSINESS
` ARE YOU READY?
INTRODUCTIONS BUT FIRST
` MAAIKE
` DOUG
WE (RE-) DESIGN BUSINESSES
CREATING RESULTS WITH TEAMS
DIRECT RESULTS IN THE BOTTOM LINE
` ENGINE IN START-UPS
` ENGINE IN CORPORATES
HOW IT ALL STARTED
WE WANTED TO DISRUPT THE PUBLISHING INDUSTRY
8 PROTOTYPES
1 MILLION COPIES 30 TRANSLATIONS
MOST ADDED VALUE IN VALUE PROPOSITION DESIGN
PUBLISHED IN OCTOBER
WHY IS BUSINESS MODELING SO POPULAR?
VUCA – WORLD: NON-STOP VOLATILITY, UNCERTAINTY, COMPLEXITY AND AMBIQUITY
`
`
`
`
LIKE AN AMUSEMENT PARK: FULL OF THRILLING RIDES. NOT ALL OF THEM ARE FUN.
Source: Moments of Impact
`
`
THE SPEED OF DEVELOPMENTS HAS INCREASED
YOU WANT TO BRING THE IDEA TO LIFE!
DEC
DEC
TOGETHER WITH A DIVERS TEAM
DEC
DEC
DECISION MAKING AT A LOWER LEVEL
AND JUST DO IT
WE NEED
NEW TOOLS NEW SKILLS NEW MINDSET
TOOL BUSINESS MODEL CANVAS 1
A BUSINESS MODEL DESCRIBES THE RATIONALE OF HOW AN ORGANIZATION CREATES, DELIVERS, AND CAPTURES VALUE
THE BUSINESS MODEL CANVAS
CUSTOMER SEGMENTS 1
VALUE PROPOSITIONS 2
CHANNELS 3
CUSTOMER RELATIONSHIPS 4
REVENUE STREAMS 5
KEY RESOURCES 6
KEY ACTIVITIES 7
KEY PARTNERS 8
COST STRUCTURE 9
CUSTOMER SEGMENTS
KEY PARTNERS
COST STRUCTURE REVENUE STREAMS CHANNELS
CUSTOMER RELATIONSHIPS
KEY RESOURCES
VALUE PROPOSITIONS KEY ACTIVITIES
LETS LOOK AT AN EXAMPLE
“WE ARE GOING TO PROVIDE MUSIC TO EVERYONE (ANY TIME, ANY PLACE) FOR FREE IN A LEGAL WAY”
THE BUSINESS MODEL OF SPOTIFY
BUSINESS MODEL CANVAS SPOTIFY
Access to music via streaming
and download services
Platform development
and maintenance
Licensing agreements
Software and network
engineers
Rightholders (labels and publishers)
Advertisers
Internet + PC
Ad fees Subscription fees PC +
mobile
FREE Royalties to rightholders
Salaries
Bandwith costs
Automated online
relationship
Global music fans
Advertising
Platform and brand
Internet + mobile
3rd party APIs Communities
HOW CAN THE BUSINESS MODEL CANVAS BE USED?
THE BUSINESS MODEL CANVAS CAN BE USED FOR REDESIGN AND INVENTION
HOW DOES IT CONNECT TO VISION, CONTEXT AND STRATEGY
!! ! ! ! ! ! !!!!!!!!!!DESIGNING BETTER BUSINESSES
!
!
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OUR PROCESS
THESE ARE THE MINIMUM STRATEGIC CONVERSATIONS
!! ! ! ! ! ! !!!!!!!!!!DESIGNING BETTER BUSINESSES
!
!
WHERE IS THE COMPETITION IN THE CANVAS?
HOW DO I IDENTIFY RELEVANT TRENDS?
TOOL CONTEXT CANVAS 2
WHAT WOULD YOU LIKE TO ACHIEVE?
WHAT ARE YOUR GOALS?
TOOL VISION CANVAS 3
LETS LOOK AT AN EXAMPLE
WHAT IS THE MOST I M P O R T A N T
T R E N D THEY CONNECT TO?
CHINA: MAIN COURSE – UNITED STATES: DESSERT
“FROM HIS HOME IN RURAL QINGHE COUNTY, IT TOOK JUST TWO YEARS FOR THE 35-YEAR-OLD TO RAKE IN MORE THAN 10
MILLION YUAN ($1.6 MILLION) SELLING WOOLEN YARN”
W H A T I S T H E I R
VISION?
MAKE IT EASY TO DO BUSINESS
ANYWHERE
FIGHT FOR THE SMALL BUSINESS ENTREPRENEUR
1. CUSTOMERS 2. EMPLOYEES 3. SHAREHOLDERS
SEPTEMBER 19
2014
IPO: $25 BILLION, MARKET CAP: $230 BILLION
ONE FINAL WORD OF BUSINESS (MODEL) WISDOM FROM JACK
“MAKE YOUR CUSTOMER HAPPY, NOT YOUR BOSS”
!! ! ! ! ! ! !!!!!!!!!!DESIGNING BETTER BUSINESSES
!
!
OUR PROCESS
HOW DO WE DESIGN NEW BUSINESS MODELS?
THINK LIKE A DESIGNER!
IT’S A JOURNEY OF EXPLORATION
GENERATE OPTIONS 1
EXPLORE OPTIONS 2
THERE IS MORE THAN 1 OPTION
CHECK 3Against design criteria
REPEAT 4
TECHNIQUE Scenario planning 1
VISIT THE FUTURE FREQUENTLY
TECHNIQUE Apply business model patterns 2
UNDERSTAND BUSINESS MODEL PATTERNS
Top 20% 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
#"of"products"
#"of"s
ales
"
FREE + PREMIUM
= FREEMIUM
TECHNIQUE Use customer insights 3
UNDERSTAND CUSTOMERS’ PAIN AND GAIN
TECHNIQUE Fresh watching 4
‘LEARN’ FROM OTHER BUSINESS MODELS
TECHNIQUE What if… 5
ASK YOURSELF CRAZY QUESTIONS
“WHAT IF…?”
!! ! ! ! ! ! !!!!!!!!!!DESIGNING BETTER BUSINESSES
!
!
OUR PROCESS
TOOL VALUE PROPOSITION DESIGNER 4
MOST COMPANIES HAVE NO IDEA WHO THEIR CUSTOMER IS. DATA IS NOT ENOUGH
` WHO IS OUR CUSTOMER?
` WHAT DOES HE WANT?
` WILLINGNESS TO PAY?
!! ! ! ! ! ! !!!!!!!!!!DESIGNING BETTER BUSINESSES
!
!
OUR PROCESS
SO YOU COME UP WITH A NEW IDEA…
AND YOU THINK IT’S WORTH A FORTUNE
BUT IT’S NOT
BECAUSE AN IDEA…
OR BUSINESS MODEL…
IS ON PAPER
…ONLY A SET OF HYPOTHESES
GUESS
GUESS GUESS
GUESS
GUESS
GUESS
GUESS
GUESS
GUESS
GUESS GUESS GUESS
IT HAS NO VALUE
SO WHAT DO WE DO
THINK ABOUT YOUR NEW BUSINESS MODEL AS IF YOU ARE A START-UP
WHAT IS ACTUALLY A START-UP
“A START-UP IS NOT A SMALL VERSION OF A LARGE COMPANY.”
Steve Blank
A START-UP IS A TEMPORARY ORGANIZATION IN SEARCH FOR A PROFITABLE, SCALABLE AND REPEATABLE BUSINESS MODEL…
IT IS ALL ABOUT LEARNING!
YOU NEED TO CLARIFY YOUR ASSUMPTIONS
YOU NEED TO TEST YOUR ASSUMPTIONS
Source: Alex Osterwalder Instagram
GO OUT OF THE BUILDING
GO OUT TO TALK TO CUSTOMERS…
WATCH FIRST THEN ASK
LOOK FOR NEEDS NOT SOLUTIONS
STOP FEATURITIS NOW
DISRUPT OR BE DISRUPTED?
IN THE LAST FEW YEARS WE HAVE BEEN WORKING WITH MORE THAN 400 INTERNATIONAL CLIENTS FROM START-UPS TO CORPORATE ORGANIZATIONS ON BUSINESS MODELING. WE PUT ALL OUR EXPERIENCES TOGETHER AND CAME TO THE FOLLOWING 10 TIPS FOR BUSINESS MODEL INNOVATION. ENJOY BUSINESS MODELING!
www.businessmodelsinc.com
TIP# 1
START WITH THE AS-IS. MAP THE CURRENT BUSINESS MODEL, CONTEXT AND VISION ON A LARGE POSTER WITH 3M POST IT NOTES.
TIP# 2
DON’T TRY THIS ALONE. LET YOUR COLLEAGUES OR FRIENDS HELP YOU!
THE BUSINESS MODEL CANVAS BRINGS PEOPLE WITH DIFFERENT PERSPECTIVES TOGETHER
TIP# 3
LEARN FROM OTHER BUSINESS MODELS!
TIP# 4
APPLY BUSINESS MODEL PATTERNS.
TIP# 5
THINK AS A BUSINESS MODEL DESIGNER. DO NOT RELY ON 1 MODEL, BUILD PROTOTYPES
THERE IS NO SINGLE RIGHT ANSWER
TIP# 6
“VISIT THE FUTURE FREQUENTLY!”
TIP# 7
TIP# 8
“DRAWING IS THE NEW WRITING” THINK & WORK VISUALLY!
TIP# 9
DON’T RELY ON YOUR ASSUMPTIONS.
GET OUT OF THE BUILDING AND TEST THEM!
TIP# 10
JUST DO IT!
USE THE BUSINESS MODEL CANVAS ;-)
THE BUSINESS MODEL CANVAS
MAAIKE DOYER STRATEGY DESIGNER Business Models Inc. Global [email protected] +31 6 81 82 25 18
DOUG MORWOOD STRATEGY DESIGNER Business Models Inc. UK [email protected] +44 7921 373 114
CONTACT US FOR MORE INFORMATION AND TOOLS
Thank you! Business Models Inc. www.businessmodelsinc.com