12. „Innovation is front and center on the
corporate agenda, according to a
global survey. Executives are adding
more breakthrough innovations and
business model changes to their
portfolio to fuel the growth engine.“
Business Week, November 16, 2009
14. Stagnating or
declining
revenues
Source: Moore, GA 2004, Darwin and the Demon: Innovating Within Established Enterprises. Harvard Business Review, 82
15. Source: Moore, GA 2004, Darwin and the Demon: Innovating Within Established Enterprises. Harvard Business Review, 82
16.
17. ̲ Increase profit
̲ Find new growth areas
̲ Create new markets
̲ Commercializing a new
̲ Increased competition
product or technology
Why ̲ Adapt to changing
environments
̲ Adapt to new / emerging
markets
̲ Seize emerging trends
29. „There‘s no good
just being better,
...you got to be
different.“
Charles Handy
30. ̲ “A business model is simply the ‘way of doing business’ that a
firm has chosen: its entire system for creating and providing
consistent value to customers and earning a profit from that
activity, as well as benefit for its broader stakeholders. It refers
to the core architecture or configuration of the firm, specifically
how it deploys all relevant resources (not just those within the
company boundaries), to create differentiated value for
customers at a profit…”
(Davenport, T. H., M. Leibold and S. Voelpel (2006). Strategic Management in the Innovation Economy. Publicis Wiley.)
̲ The business model is a company’s answer to the question of
how to make money in its chosen business. It describes, “…as a
system, how the pieces of a business fit together.”
(Magretta, J. (2002). "Why Business Models Matter." Harvard Business Review 80(5) May: 86-92.)
31. Source: Accenture
Source: The Boston Consulting Group
Source: Innosight
Source: businessmodelgeneration.com
Source: IDEO
32. WHO
is your customer?
HOW WHAT
do you do this? do you offer
your customers?
33. WHO
Markets
Customer Segments
Individual Needs
HOW WHAT
Create Value Products & Services
Deliver Value Solutions
Capture Value Experiences
34.
35. Traditional Approach Business Model Innovation
Who • Everybody • Everybody
What • Usually full treatment • Focus on basic treatments
• Services covered by health • Quick
insurance • Convenient
• Special treatment for additional cost • Affordable
How • A range of specialists • Generalists
• Special facilities • Located in shopping malls / inside
• One central location CVS pharmacies
• “Solution shops” • Multiple locations
• “Retail model”
36.
37. Traditional Approach Business Model Innovation
Who • (Rich and middle class) people who • “Low income clients”
are reliable to pay back the credits or • Poor people who would not get any
have enough assets as security. loans from traditional banks
(especially women)
What • Classic loans, usually for larger sums • Small loans to “unbanked people”
to buy assets.
How • Strong risk management • About 97% make their payments.
• The returns from the interests belong • The borrowers are the owners of
to the bank/ shareholders the bank.
• Profit focus • The profit of the bank goes back to
the owners.
• There is no collateral. No lawyers.
• Social business focus
38.
39. Traditional Approach Business Model Innovation
Who • People who want a quick bite to eat • People who want to sit down and
• Get in, order, get served quickly, get remain seated for a while
out quickly again • Create a “3rd place” à la Starbucks
What • Pre-made food prepared constantly • Coffee and cake
according to demand • Made to order (coffee)
• Standard menus • Pre-produced (cakes)
• Some variations allowed • No menus
How • 1 counter • 2 counters
• Standardized processes • Separate seating area
• Central locations with high • Key is to increase share of wallet of
frequencies the customer and keep him for a
• The key is to serve a maximum longer period of time in the
number of people during a given restaurant
time • Innovative use of existing assets,
new capabilities needed
40.
41. Traditional Approach Business Model Innovation
Who • Kids • Everybody from 4-99
• Hard Core Gamers • The whole family
• Casual Gamers
What • High Tech – High Performance • Family Console
Console • Low tech, lower power processors,
• High tech, high end processors for no additional features
speed and graphics, connect over the • Focus on fun rather than technical
internet, additional features (DVD, performance
internet,...) • New movement technology
high cost lower cost
high sales price (250-300.- €) lower sales price (190.- €)
How • n/a • n/a
42. New Markets
New Customers
What
New Ways of New Value
Doing Business Propositions
47. May 6-7
April 15 Group Mgmt
March 10 Meeting BU
Workshop Mgmt
Division Mgmt
Meetings • Presentation of
Business Division
• Introduction to Models Mgmt
Business Model • Preparation of
Innovation GMM Group
• Introduction
Research on Final version 2010
Future Space
innovative Business until April 29 to
• Process
Models and Trends. SIO
• Preparation Group
• Handbook 2011 +
Business Draft until March 29 to SIO
Model Description Coaching Sessions with SIO
by Division Mgmt Final Version until April 7 to SIO
and their teams.
48. March 10
BU
Mgmt
Division Mgmt
Meetings
Division
• Introduction to Mgmt
Business Model
Innovation Group
• Introduction
2010
Future Space
• Process
• Preparation Group
• Handbook 2011 +
49. March 10
BU
Mgmt
Division Mgmt
Meetings
Division
• Introduction to Mgmt
Business Model
Innovation Group
• Introduction
2010
Future Space
• Process
• Preparation Group
• Handbook 2011 +
50. March 10
BU
Mgmt
Division Mgmt
Meetings
Division
• Introduction to Mgmt
Business Model
Innovation Group
• Introduction
2010
Future Space
• Process
• Preparation Group
• Handbook 2011 +
Business Draft until March 29 to SIO
Model Description Coaching Sessions with SIO
by Division Mgmt Final Version until April 7 to SIO
and their teams.
51. April 15
March 10
BU
Workshop Mgmt
Division Mgmt
Meetings • Presentation of
Business Division
• Introduction to Models Mgmt
Business Model • Preparation of
Innovation GMM Group
• Introduction
2010
Future Space
• Process
• Preparation Group
• Handbook 2011 +
Business Draft until March 29 to SIO
Model Description Coaching Sessions with SIO
by Division Mgmt Final Version until April 7 to SIO
and their teams.
52. April 15
March 10
BU
Workshop Mgmt
Division Mgmt
Meetings • Presentation of
Business Division
• Introduction to Models Mgmt
Business Model • Preparation of
Innovation GMM Group
• Introduction
Research on Final version 2010
Future Space
innovative Business until April 29 to
• Process
Models and Trends. SIO
• Preparation Group
• Handbook 2011 +
Business Draft until March 29 to SIO
Model Description Coaching Sessions with SIO
by Division Mgmt Final Version until April 7 to SIO
and their teams.
53. May 6-7
April 15 Group Mgmt
March 10 Meeting BU
Workshop Mgmt
Division Mgmt
Meetings • Presentation of
Business Division
• Introduction to Models Mgmt
Business Model • Preparation of
Innovation GMM Group
• Introduction
Research on Final version 2010
Future Space
innovative Business until April 29 to
• Process
Models and Trends. SIO
• Preparation Group
• Handbook 2011 +
Business Draft until March 29 to SIO
Model Description Coaching Sessions with SIO
by Division Mgmt Final Version until April 7 to SIO
and their teams.
59. WHO
#1 Challenge industry assumptions #11 Target non-customers
#12 Target less profitable customers
WHAT #13 Target the least satisfied customers
#2 Offer complementary products and services #14 Target the chain of buyers
#3 Offer solutions and experiences #15 Segment according to commonalities
#4 Offer bundles #16 Segment according to circumstances
#5 Switch your appeal: functional versus #17 Desegment the customer based
emotional HOW
#6 Focus on the job to be done
#18 Reinvent the customer interface (channels)
#7 Selectively eliminate, reduce, raise and create
#19 Reinvent your customer relationships
#8 Look at subsitutes
#20 Invent new revenue streams
#9 Expand the use of your assets and capabilities
#21 Price differently
#10 Look at the customer experience
#22 Reinvent you cost base
#23 Re-assess your key activities
#24 Collaborate with suppliers, partners, the
network and ecosystem
#25 Look at completely different industries
64. Steering
Committee
Strategic
Innovation Office
Cross Division Strategic Innovation Within Division
Cross Division
Project Teams Core Team Within Division
Project Teams
Cross Division
Project Teams Within Division
Project Teams
Cross Division
Project Teams Within Division
Project Teams
Cross Division
Project Teams Within Division
Project Teams
Project Teams Project Teams
65. Nov Dez Q1 Q2 Q3 Q4 2012
2010 2011
Core Team
Core Team Core Team Core Team Core Team Core Team
Core Team Meeting
Meeting Meeting Meeting Meeting Meeting
Kick Off
Board Division 1 Division 3 Division 1 Division 3
Update Division 2 Division 4 Division 2 Division 4
Setting the
Project 1 stage
Discovery Development Conversion
Setting the Commer-
Project 2 Team Kick Off
stage
Discovery Development Conversion
cialization
Hire Project Project Setting the
Project 3 Manager Manager stage
Discovery Development Conversion
Hire Project Project Setting the
Project 4 Manager Manager stage
Discovery Development Conversion
Hire Project Project Setting the
Project 5 Manager Manager stage
Discovery Development Conversion
83. Source: Accenture
Source: The Boston Consulting Group
Source: Innosight
Source: businessmodelgeneration.com
Source: IDEO
84.
85. existing ↔ noncustomers (2nd and 3rd tier)
most profitable ↔ less profitable
most satisfied ↔ less satisfied (1st tier)
specific buyer ↔ chain of buyers
focus on differences ↔ focus on commonalities
focus on finer segmentation ↔ focus on de-segmentation
focus on attributes
(of customers and products)
↔ focus on circumstances
(needs and the job done)
86. focus on existing assets ↔ start anew, or use existing assets in a
new way
single product or service ↔ total solution, bundling
functional appeal ↔ emotional appeal and experiences
focus on product ↔ focus on function fulfilled and the
job-to-be-done
build new features ↔ raise, reduced, create, eliminate
selectively
87. conventional customer interface ↔ (co-creating) experiences
easy to do business with
↔
conventional pricing strategic pricing of the masses
(either to cover cost or benchmarked against (benchmarked against substitutes and alternative
competitors) industries)
cost-plus thinking ↔ price-minus thinking; target costs
integrate activities ↔ network (with customers, suppliers,
partners, alliances)
low fit of activities
(internally and externally)
↔ high fit of activities
(internally and externally)
92. • Set the context
• Guide the process in a participative and fair way
• Clearly communicate reasons, and expectations
• Questioning attitude • Educate employees
• Rewards success and failure, punishes inaction • Variety (internal and external)
• Shield creative teams from distractions and pressure
• Tolerates mistakes • Collaboration
• Appreciate distinctiveness in people and their thinking
• Slack is welcomed • Educated in regard to the strategy and
• Welcome change
skills needed
• Supports risk taking and change • Ask itself what it does to promote or inhibit innovation
• Supports teamwork and collaboration and how to get rid of these obstacles.
People
Culture Leadership
Are you ready for
Business Model
Innovation?
Systems Structure
• Support the process of strategic • Fast and flat
innovation Processes • Small units
• Enable collaboration • Encourages collaboration
• Enable the use and creation of • Fast and unbureaucratic • Autonomous teams at the
knowledge • Decentralized decision making front line
• Reward risk taking and action • Support idea generation,
• Used to create relationships with experimentation and execution
customers
• Metrics & rewards support
innovation
102. ̲ Dynamic Capabilities (i.e. activities,
processes and routines) leading to Business
Model Innovation.
̲ Managerial capabilities for creating,
developing and leading these capabilities.
103. “The difficulty lies not
in the new ideas,...
…but in escaping from
the old ones.”
John Maynard Keynes