9. Uncover Opportunity Nucleus
– Increase customer satisfaction
– Create a new experience
– Uncovering
• unmet need
• underserved needs
Entrepreneurship@TBS 2012
10. Two Generic “Value types”
– Trapped Value
• More efficient markets
• More efficient value systems
• Ease of access
• Disrupt current pricing power
– New-To-The-World Value
• Customize offerings
• Extend reach and access
• Build community
• Enable collaboration
• Introduce new functionality or experience
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11. Revealing Unmet or Underserved Needs
What are the steps in the Customer Decision Process:
l What is the ideal experience? How does reality differ?
l What are the key frustration points?
l What compensating behaviors do we see?
l How/why is the customer successful?
l Are their groups with underserved needs?
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14. Profit Zones / Profit Pools
Source: Adapted from Walters (2002), Gadiesh and Gilbert (1998) and Slywotzky and Morrison (1997)
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15. โมเด็ลกําไร 22 แบบ
Customer Solutions Profit Product Pyramid Profit Multicomponent Profit Switchboard Profit
Buyers Sellers
Profit
0
Price
Base Business
Volume
Other Components
Time
Time Profit Blockbuster Profit Profit Multiplier Model Entrepreneurial Profit
Other Forms
Price
$/Unit
$/Project
Revenue
Cost
Cost Base
Business
Q2 Q4 Q6 Q8 Q10 Key Asset Spin-Outs
Project Type
Post-Launch
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18. Which would you prefer?
Business Business
Design “A” Design “B”
Revenue $10 billion $8 billion
Profit $50 million $300 million
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19. business design
Today Next
Customer Selection
Unique Value Proposition
Profit Model
Strategic Control
Scope
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20. Business Design Example: Airline Industry
Within a particular industry, companies may pursue very different Business Designs
United Southwest Southwest Next?
Customer Selection & • International & domestic; coach, • Domestic travelers;
Value Proposition business and first-class travelers coach only
• Broad network & loyalty program • Low-cost, no-frills w/ highly
consistent customer service
Value Capture/ • Tiered fares based on class, • Every-day low prices
Profit Model flexibility • High asset utilization
• Ancillary revenues
Scope • Global hub-and-spoke route • US-only point-to-point route
system system
Strategic Control • Controlled-access airports in key • Lowest costs
geos • High frequency route coverage
• Loyal frequent fliers
Organizational Systems • Sophisticated IT • Cultural emphasis on Southwest
• International Sales & Regulatory way
capability
Revenue • $16BB • $10BB
Market Cap • $4.7BB • $10BB
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21. Business Model
Partner Customer
Network Relationship
Core Value Value Distribution Customer
Capacities Configuration Proposition Channel Segment
Cost Success / Revenue
Structure Failure Streams
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22. Example business models over the years
• The open business model • The loyalty business models
• The subscription business model • The Collective business models
• The razor and blades business model • The
(bait and hook) industrialization of services business
• The pyramid scheme business model model
• The • The
multi-level marketing business model servitization of products business model
• The network effects business model • The low-cost carrier business model
• The monopolistic business model • The online content business model
• The cutting out the middleman model • The freemium business model
• The auction business model • The premium business model
• The online auction business model • The direct sales model
• The bricks and clicks business model • The professional open-source model
• Various distribution business models
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