We talk so much about product and service innovation yet the success of traditional innovation is dwarfed by business model innovation. This slide deck is a summary of the class delivered by Brandito on 2 July 2013 & was tailored to entrepreneurs, start-ups and stagnating businesses. The class looked at the modern business landscape and the importance of a value proposition framework as a lead-in to business model generation. Visit www.brandito.com.au for more upcoming classes.

1. Start-Up Series:
What is Your
Business Model
#brandito
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2. about me
Moby Siddique
Digital Marketing & Business Strategist
moby@brandito.com.au
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3. about brandito & netsquared
Consultancy, Classes & Short
(1-2 day) Courses in: Digital
Marketing, Business Strategy
NetSquared = social good
meets technology & digital
Brandito.com.au /BranditoInc
@BranditoInc
Meetup.com/NetSquared-Sydney/
@Net2Sydney‎
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4. Agenda
1. The Modern Business Landscape.
i. Big Data & the problem of choice.
ii. The Humanisation of Business.
2. “Innovate or Die”
3. Business Model Innovation.
4. Identify Your Value Proposition.
5. Creating your Business Model.
6. Class work
7. Q&A
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5. The Modern
business Landscape
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6. Our ability to create information has far
exceeded our ability to manage it.
Big Data, Big Problems
“Every two days now we create as much
information as we did from the dawn of
civilisation up until 2003”
- Eric Schmidt, Google CEO
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7. The Problem of Choice
With so many choices options to choose from people find it
very difficult to choose at all.
Paralysis is a consequence of having too many choices.
Jam-theory: less perceived sense of choice & increased sense
of simplicity = increased adoption rate.
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8. Traditional marketing has
lost its efficacy because of
the consumers’ bullshit
radar is high
we don’t listen as much as we
think we do
Listen & respond, build
context of a relationship
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9. the humanisation of business
Humanisation = ‘out-caring’ competitors
- Gary Vaynerchuk
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10. Kodak Cameras: 6 minutes p/avg. mention
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11. Innovate or Die: the
innovation imperative
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12. Over 40% of the companies that were at the top of
the Fortune 500 in 2000 were no longer there in 2010
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13. pwc findings on australian start-ups
Start-up sector expected to contribute $109 billion or 4% of GDP
to the Australian economy by 2033 - PWC
“Australia already has one
of the most favourable
environments for
entrepreneurship. There is
no better time to be an
entrepreneur.”
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14. What is
business model
innovation
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15. definition: business model innovation
Business Model Innovation is the
invention of new ways of doing
business, with the aim to provide new
and/or increased value for the
customers, the company itself and its
stakeholders.”
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16. business model best practice: apple
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17. business model best practice:
nespresso
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18. what are the similarities?
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19. (4) key characteristics of bmi
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Product alone was
not enough to
succeed
Product was only
enabled through the
business model
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20. 1
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21. (4) key characteristics of bmi
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They didn’t nor could
copy from their
competitors
They invented new
business models
with their own
switching costs
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22. (4) key characteristics of bmi
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They couldn’t prove
in advance that the
models would work
They had to take
some level of risk
and experiment.
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23. (4) key characteristics of bmi
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No competition, no
existing value
proposition to develop
They created new
needs customers didn’t
even know existed.
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24. customers can only give you
“symptoms” not always the solution
Steve Jobs on total
market research done
for the iPad:
“None, It isn’t the
consumers’ job to know
what they want.”
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25. What is your
value proposition
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26. what is your ‘why’
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The Golden Circle
- Simon Sinek
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27. Creating
your business model
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28. the business model canvas
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Alexander Osterwalder, PhD
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29. the canvas is visual
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30. building
blocks9
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31. images by JAM
customer
segments
key
partners
cost
structure
revenue
streams
channels
customer
relationships
key
activities
key
resources
value
proposition
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32. 32

33. KEY
PARTNERS
Value
Proposition
CHANNELS
CUSTOMER
RELATIONSHIPS
CUSTOMER
SEGMENTS
REVENUE STREAMSCOST STRUCTURE
KEY
ACTIVITIES
KEY
RESOURCES
Nespresso’s 1987 Model
offices
Nespresso
system
joint venture
with machine
manufacturer
machine
manufacturer
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35. class activity: cirque du soleil
Background on Cirque
Cirque du Soleil is “a dramatic
mix of circus arts and street
entertainment.”
Eliminated animals which
reduced upkeep and
maintenance.
Target theatre and opera
visitors; higher prices
Created themes, multiple
productions, artistic music and
dance
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36. think like an
architect with your
business model
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37. #brandito
q&a
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