Ramon Vullings presentation at the Egyptian Marketing Summit

2. Business Model Innovation
by Ramon Vullings, well ehhh.... this is actually Magritte

3. Business Model Innovation
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

4. Ramon Vullings
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

5. powered by

7. ideaDJ
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How does it work?
By using a secondary projection screen,
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mixing ideas, concepts & more!
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Goal?
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9. “How can
air travel
be free?”

10. 20 / 70

11. How Can Air Travel Be Free?

13. Business
Model
Innovation

14. Marketing

16. creativity
&
innovation
www.21Lobsterstreet.com

19. 87,5% of statistics are lies

20. Perception!

23. Our thinking system works:
• Fast
• Correct
• Context dependable
• Our thinking system is ‘lazy’

25. relevant
ideas
ideas
Next practices
Best
practices
time
Craziness!

27. FUTURE
Perspective: The history of future

28. Apple

32. Let’s talk...

33. Describe what you do
to your neighbour
(behind or in front of you) in
33 seconds
then let your neighbour explain

35. We need a
common
language!

36. Why is Business
Model thinking
important?

37. Focussing on
product / service
innovation
is not enough
anymore!

38. Toegepaste creativiteit:
3 vormen van innovatie

39. products & services
process
culture
(how we innovate)
www.21Lobsterstreet.com

40. 1, 2, 3... 4!
www.21Lobsterstreet.com

41. Internal
Process
/ Culture
/
Opera/onal
Management
Innova/on Innova/on
Con/nuous Discon/nuous
Product
&
Service
Business
Model
Innova/on Innova/on
External
Source:
Marc
Sniukas

43. Business Model
‘A business model
describes how an entity
organizes itself to create
value and derive revenue’
- A. Osterwalder -

44. blue oceans

45. “Market boundaries are not
given they are reconstructed
by the actions & beliefs of
industry players”

46. RED OCEAN BLUE OCEAN
• compete in existing markets • create uncontested markets
• beat the competition • make competition irrelevant
• explore existing demand • create & capture new demand
• make the value/cost trad-off • break value/cost trade-off
• align with differentiation OR • align with differentiation
low cost AND low cost

47. Now what...?

49. Why is Business Model thinking important to you?
Entrepreneurs Managers Public Officers
Market entry Growth Enhanced value
for citizens
Commercializing Competitive
a new advantage Innovative new
technology approaches
Fend off new
Create new entrants New public
markets management
Consultants provide insight & implementation guidance

50. What is a business model?
Various tools for describing your business model
Source: Accenture
Source: The Boston Consulting Group
Source: Innosight
Source: businessmodelgeneration.com

51. 3 value disciplines:
- product leadership
- operational excellence
- customer intimacy
Source: Treacy & Wiersma

52. +€

53. The
Business
Model
Canvas

54. 9 Building
Blocks

55. Customer Segments
images by JAM

56. Value Proposition
images by JAM

57. Channels
images by JAM

58. Customer Relationships
images by JAM

59. Revenue Streams
images by JAM

60. Key Resources
images by JAM

61. KEY ACTIVITIES

62. Key Partners
images by JAM

63. Cost Structure
images by JAM

64. key value customer
activities proposition relationships
key customer
partners segments
cost revenue
structure key streams
resources channels
images by JAM

65. PARTNER KEY OFFER CUSTOMER CUSTOMER
NETWORK ACTIVITIES RELATIONSHIPS SEGMENTS
KEY DISTRIBUTION
RESOURCES CHANNELS
COST STRUCTURE REVENUE STREAMS
drawings by JAM

66. The Business Model Canvas
KEY KEY VALUE CUSTOMER CUSTOMER
PARTNERS ACTIVITIES PROPOSITION RELATIONSHIPS SEGMENTS
b u ildin g
blo c k
bui ldin g
b u ildin g blo ck
blo c k
b u ildin g
blo c k b u ildin g
KEY buildin g CHANNELS bl o ck
RESOURCES block
building
bloc k
b u ildin g
blo c k
building
bloc k
COST STRUCTURE REVENUE STREAMS
b u ildin g buildin g
bui ldin g
blo c k bloc k
block

68. Every product or technology
can lead to five, ten, twenty
different business models

69. Ban king

75. Telco

80. Telco’s...
1 Business Model
or more?

81. The
Telco
Business
Model
3 models in one
Source:
businessmodelgenera7on.com

82. The
Telco
Business
Model
3 models in one
Source:
businessmodelgenera7on.com

83. Bhar7
Airtel
Limited
A new business model for the telco industry
• 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

85. Trans port ation

88. Medical

89. Minute
Clinic

91. 27/04/10

92. The Business Model behind PatientsLikeMe.com
a 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.
27/04/10
by BoardofInnovation.com pitch your business model visually via this free template

93. The Business Model behind PatientsLikeMe.com
a community platform for patients
With permission, PatientsLikeMe gathers data that can be resold for huge sums
to third parties likes pharmaceutical companies. Simple. Marvelous.
27/04/10
by BoardofInnovation.com pitch your business model visually via this free template

94. n-line serv ices
O

96. ocia l media and
S
mo re...

104. Let’s play!
=
Get to work!

105. n canvas!
M ake y our ow

106. 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!

107. Look out for the idea killers
TIP: Download the free poster at www.ideakillers.net

109. Some models...
(for inspiration)

110. The Add-On model
The Advertising model
The Affiliate model
The Auction model
The Direct Sales model
The Franchise model
The Freemium model
The Low-Cost model
The Pay as You Go model
The Recurring Revenue model
(Subscription model)

111. cuss your own
Dis
c anva sses
twee n 2 te ams)
(be

113. cross-industry
innovation

114. “The difficulty lies not in
the new ideas,...
…but in escaping from
the old ones.”
John
Maynard
Keynes

115. How to (re)invent your Business Model?
25 Strategies
#1
Challenge
industry
assump7ons 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
WHAT HOW
#2
Offer
complementary
products
and
services #18
Reinvent
the
customer
interface
(channels)
#3
Offer
solu7ons
and
experiences #19
Reinvent
your
customer
rela7onships
#4
Offer
bundles #20
Invent
new
revenue
streams
#5
Switch
your
appeal:
func7onal
versus
emo7onal #21
Price
differently
#6
Focus
on
the
job
to
be
done #22
Reinvent
you
cost
base
#7
Selec7vely
eliminate,
reduce,
raise
and
create #23
Re-­‐assess
your
key
ac7vi7es
#8
Look
at
subsitutes #24
Collaborate
with
suppliers,
partners,
the
#9
Expand
the
use
of
your
assets
and
capabili7es network
and
ecosystem
#10
Look
at
the
customer
experience #25
Look
at
completely
different
industries
Source:
Marc
Sniukas

116. ustom er Focus
C

117. Know what your customer touches...

118. Assesing a
Business Model
Attractiveness...

119. Evaluate your business model design
building
block
building
buildin block
g blo
ck
building
block building
block
build
ing
block
building
building block
block
build
ing
block
building buil
ding
block blo
ck
buildin
g
block

121. 7 questions to asses your business model
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

123. For idea
implementation:
all you need is…

124. passion

126. mistake ?

127. mistakes?
preventable
complexity related
intelligent

129. nearling ?

130. 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
•...

131. Be proud!
You can be proud of nearlings because:
1. You started an initiative
2. You may have moved others
3. Maybe it let you to something that was successful
4. You need many nearlings, for a few successes
5. You learned from it
6. ...
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

132. nearling !
www.nearling.com

134. , 3 . ..
, 1 , 2
0
www.21Lobsterstreet.com

135. Business Model Innovation strategies
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).

137. “We need to go from
High Tech to High Touch”
- Philip Kotler -

139. powered by

140. CreativityToday.net

141. Business Model Innovation (1/2)
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

142. Business Model Innovation (2/2)
And major input comes from:
Business Model Generation - www.BusinessModelGeneration.com
Understanding Business Models - www.BMImatters.com
Mark Sniukas - www.sniukas.com
Marc Heleven - thegentleartofsmartstealing.wordpress.com
Board of Innovation - www.slideshare.net/boardofinnovation
Creativity Today - www.CreativityToday.net
Alexander Osterwalder - www.alexosterwalder.com
Wired Magazine - www.Wired.com
Fast Company Magazine - www.FastCompany.com
Ramon Vullings - www.RamonVullings.com
Harvard Business Review - www.HBR.org

143. Ramon Vullings
ideaDJ
innovation - keynote support
consulting - enhance audience experience
master of - custom real-time inspiration for events
- leadership & strategy advice
- business model Innovation interaction
- making ideas happen boost your event
- keynote speaking
- linking content with activity
innovate - engage large audiences
move people
RamonVullings.com