ramon vullings - business model innovation
DESCRIPTION
Ramon Vullings presentation at the Egyptian Marketing SummitTRANSCRIPT
Business Model Innovation
by Ramon Vullings, well ehhh.... this is actually Magritte
This presentation is based on Business Model Innovation thinking by Alexander
Osterwalder and the book ‘Business Model Generation’ combined with the
book ‘Creativity Today’ by Igor Byttebier & Ramon Vullings for innovative
strategy development.
For more models and materials please see: www.BusinessModelGeneration.com &
www.CreativityToday.net
powered by 21 Lobsterstreet and the innovation & entrepreneurship institute
Business Model Innovation
ideaDJ, Master of Interaction, making ideas happen, writer, speaker, connector, inventive,
organisational sculptor, technology, concept enrichment, teacher, student, positive alternatives,
passionate, Zorro
www.RamonVullings.com
Ramon Vullings
powered by
mixing ideas, concepts & more!
ideaDJ
ideaDJ.com
What is ideaDJ?The ideaDJ supports events, keynotes and panel discussions visually, using surprising movies, spot on images and subtile or energic sounds!
How does it work?By using a secondary projection screen, the audience will experience real-time & spot-on images and movies which support the content and flow of the event.
The ideaDJ mixes custom real-time inspiration for events
Goal?Enriching the experience and getting more out of the audience’s attention.
“How can air travel be free?”
20 / 70
How Can Air Travel Be Free?
2
Business Model
Innovation
2
Marketing
2
www.21Lobsterstreet.com
creativity&
innovation
87,5% of statistics are lies
28
Perception!
Our thinking system works:
• Fast• Correct• Context dependable• Our thinking system is ‘lazy’
ideas
time
Best practices
Next practices
Craziness!
relevantideas
Perspective: The history of future
FUTURE
Apple
28
28
28
2
Let’s talk...
Describe what you do to your neighbour
(behind or in front of you) in 33 seconds
then let your neighbour explain
We need a common
language!
Why is Business Model thinking important?
Focussing on product / service
innovation is not enough
anymore!
Toegepaste creativiteit:
3 vormen van innovatie
www.21Lobsterstreet.com
products & services
process
culture(how we innovate)
www.21Lobsterstreet.com
1, 2, 3... 4!
Internal
External
Discon/nuousCon/nuous
Culture / Management Innova/on
Process /Opera/onal Innova/on
Product & Service Innova/on
Business Model Innova/on
Source: Marc Sniukas
Business Model
‘A business model describes how an entity organizes itself to create value and derive revenue’
- A. Osterwalder -
blue oceans
“Market boundaries are not given they are reconstructed by the actions & beliefs of industry players”
• compete in existing markets
• beat the competition
• explore existing demand
• make the value/cost trad-off
• align with differentiation OR low cost
• create uncontested markets
• make competition irrelevant
• create & capture new demand
• break value/cost trade-off
• align with differentiation AND low cost
RED OCEAN BLUE OCEAN
Now what...?
Why is Business Model thinking important to you?
Entrepreneurs
Market entry
Commercializing a new
technology
Create new markets
Managers
Growth
Competitive advantage
Fend off new entrants
Public Officers
Enhanced value for citizens
Innovative new approaches
New public management
Consultants provide insight & implementation guidance
What is a business model?Various tools for describing your business model
Source: The Boston Consulting Group
Source: Innosight
Source: businessmodelgeneration.com
Source: Accenture
3 value disciplines:
- product leadership- operational excellence- customer intimacy
Source: Treacy & Wiersma
+ €
TheBusinessModelCanvas
BuildingBlocks9
images by JAM
Customer Segments
images by JAM
Value Proposition
images by JAM
Channels
images by JAM
Customer Relationships
images by JAM
Revenue Streams
images by JAM
Key Resources
KEY ACTIVITIES
images by JAM
Key Partners
images by JAM
Cost Structure
images by JAM
customer segments
key partners
cost structure
revenue streams
channels
customer relationships
keyactivities
keyresources
valueproposition
OFFER
DISTRIBUTION CHANNELS
CUSTOMER RELATIONSHIPS
CUSTOMER SEGMENTS
REVENUE STREAMS COST STRUCTURE
KEY ACTIVITIES
PARTNER NETWORK
KEY RESOURCES
drawings by JAM
The Business Model CanvasKEY
ACTIVITIES CUSTOMER
RELATIONSHIPSKEY
PARTNERSVALUE
PROPOSITION
CHANNELS
CUSTOMERSEGMENTS
REVENUE STREAMSCOST STRUCTURE
KEYRESOURCES
building block
building block
building block
building block
building block
building block
building block
building block
building block building
block
building block
building block
Every product or technology can lead to five, ten, twenty different business models
Banking
Telco
Telco’s...
1 Business Modelor more?
The Telco Business Model3 models in one
Source: businessmodelgenera7on.com
The Telco Business Model3 models in one
Source: businessmodelgenera7on.com
Bhar7 Airtel Limited
• Bhar7 Airtel Limited, the largest telecom service provider in India, chose to strategically outsource its core func7ons.• Network: Ericsson, Nokia & Siemens• IT: IBM
• For a typical telecom operator, the pain point during the growth phase is planning for network requirements and preparing budgets for such a capital expenditure.
• Capacity has to be built ahead of demand, which usually means the telecom operator has to absorb the cost of unused capacity.
• Interes7ng:-‐ 110 M subscribers-‐ largest Music Store in India
Source: hMp://blogs.hbr.org/cs/2010/05/reverse_innova7on_success_in_the_tele.html
A new business model for the telco industry
Transportation
Medical
Minute Clinic
27/04/10
27/04/10
The Business Model behind PatientsLikeMe.coma community platform for patients
Forget privacy, people are sharing more info than ever, even medical records.
By offering a free service PatientsLikeMe can attract thousands of patients.
pitch your business model visually via this free templateby BoardofInnovation.com
27/04/10
The Business Model behind PatientsLikeMe.coma community platform for patients
With permission, PatientsLikeMe gathers data that can be resold for huge sums
to third parties likes pharmaceutical companies. Simple. Marvelous.
pitch your business model visually via this free templateby BoardofInnovation.com
On-line services
Social media and
more...
2
Let’s play!=
Get to work!
Make your own canvas!
Assignment:
• Make teams of 2 to 3 people• Introduce yourself• Discuss who’s business model you would like
to work on• Let this person explain their business essence• Map this out on the canvas (using post-its)• Generate ideas (and start moving the post-its
remove or add new ones)• Generate a new or enhanced Business Model!• Have fun! Everything is possible... be creative!
Look out for the idea killers
TIP: Download the free poster at www.ideakillers.net
2
Some models...(for inspiration)
The Add-On modelThe Advertising model
The Affiliate modelThe Auction model
The Direct Sales modelThe Franchise model
The Freemium modelThe Low-Cost model
The Pay as You Go modelThe Recurring Revenue model
(Subscription model)
Discuss your own
canvasses
(between 2 teams)
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cross-industry innovation
“The difficulty lies not in the new ideas,...
…but in escaping from the old ones.”
John Maynard Keynes
How to (re)invent your Business Model?
#1 Challenge industry assump7ons
WHAT#2 Offer complementary products and services#3 Offer solu7ons and experiences
#4 Offer bundles
#5 Switch your appeal: func7onal versus emo7onal
#6 Focus on the job to be done
#7 Selec7vely eliminate, reduce, raise and create
#8 Look at subsitutes#9 Expand the use of your assets and capabili7es
#10 Look at the customer experience
HOW#18 Reinvent the customer interface (channels)#19 Reinvent your customer rela7onships
#20 Invent new revenue streams
#21 Price differently
#22 Reinvent you cost base
#23 Re-‐assess your key ac7vi7es
#24 Collaborate with suppliers, partners, the network and ecosystem
#25 Look at completely different industries
WHO#11 Target non-‐customers#12 Target less profitable customers
#13 Target the least sa7sfied customers
#14 Target the chain of buyers
#15 Segment according to commonali7es
#16 Segment according to circumstances
#17 Desegment the customer based
25 Strategies
Source: Marc Sniukas
Customer Focus
Know what your customer touches...
Assesing a Business Model Attractiveness...
buildingblock
buildingblock
buildingblock
building blockbuildingblock
buildingblock
buildingblock
buildingblock
buildingblock
buildingblock
buildingblock
buildingblock
Evaluate your business model design
1. How much do switching costs prevent your customers from churning?
2. How scalable is your business model?
3. Does your business model produce recurring revenues?
4. Do you earn before you spend?
5. How much do you get others to do the work?
6. Does your business model provide built-in protection from competition?
7. Is your business model based on a game changing cost structure?
See: http://www.businessmodelalchemist.com/2011/09/7-questions-to-assess-your-business-model-design.html
questions to asses your business model7
For idea implementation:
all you need is…
passion
mistake ?
mistakes?
preventable
complexity related
intelligent
nearling ?
nearling“ A nearling is a positive word for something
that you did with the right intentions, which has not (yet) led to the expected result. ”
The reasons for nearlings not to succeed can be diverse:
• the circumstances have changed
• a better option has been chosen
• you made an error
• faith decided differently
• there suddenly were other priorities
•...
Be proud!You can be proud of nearlings because:1. You started an initiative2. You may have moved others3. Maybe it let you to something that was successful4. You need many nearlings, for a few successes5. You learned from it6. ...
We want to contribute to increase the international innovative culture and entrepreneurship by introducing this word.
The nearling emphasizes that initiatives are almost always valuable, even if they don’t lead to the expected result (directly).
Share your nearlings and learn from others at: www.nearling.com
www.21Lobsterstreet.com
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0, 1, 2, 3...
1 Level 0 Strategy – The Oblivious:Focus on products/value propositions alone rather than the value proposition AND the business model.
2 Level 1 Strategy – The Beginners:Use the Business Model Canvas as a checklist.
3 Level 2 Strategy – The Masters:Outcompete others with a superior business model where every one of the business model building blocks reinforce each other (e.g. Nintendo Wii, Nespresso, Dell).
4 Level 3 Strategy – The Invincible:Continuously disrupt themselves while their business models are still successful (e.g. Apple, Amazon.com).
Business Model Innovation strategies
57
“We need to go from High Tech to High Touch”
- Philip Kotler -
powered by
This presentation is based on Business Model Innovation thinking by Alexander
Osterwalder and the book ‘Business Model Generation’ combined with the
book ‘Creativity Today’ by Igor Byttebier & Ramon Vullings for innovative
strategy development.
For more models and materials please see: www.BusinessModelGeneration.com &
www.CreativityToday.net
Business Model Innovation (1/2)
And major input comes from:
Business Model Generation - www.BusinessModelGeneration.comUnderstanding Business Models - www.BMImatters.comMark Sniukas - www.sniukas.comMarc Heleven - thegentleartofsmartstealing.wordpress.comBoard of Innovation - www.slideshare.net/boardofinnovationCreativity Today - www.CreativityToday.netAlexander Osterwalder - www.alexosterwalder.comWired Magazine - www.Wired.comFast Company Magazine - www.FastCompany.comRamon Vullings - www.RamonVullings.comHarvard Business Review - www.HBR.org
Business Model Innovation (2/2)
ideaDJ- keynote support
- enhance audience experience- custom real-time inspiration for events
innovationconsulting - leadership & strategy advice- business model Innovation- making ideas happen
innovate
master of interaction
- keynote speaking- linking content with activity- engage large audiences
boost your event
move peopleRamonVullings.com
Ramon Vullings