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Business Model Innovation: Designing and testing business model in a corporate environment

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Business Model Innovation: Designing and testing business model in a corporate environment

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A hands-on workshop about how to design and test business models in a corporate environment. This workshop will empower you to create better value propositions for your innovative ideas.

This workshop was part of the Knowledge in Focus Conference 2016 organized by Podravka on 24. November 2016 in Zagreb, Croatia (More information about the event here: http://www.podravka.com/company/knowledge-in-focus-2016/)

A hands-on workshop about how to design and test business models in a corporate environment. This workshop will empower you to create better value propositions for your innovative ideas.

This workshop was part of the Knowledge in Focus Conference 2016 organized by Podravka on 24. November 2016 in Zagreb, Croatia (More information about the event here: http://www.podravka.com/company/knowledge-in-focus-2016/)

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Business Model Innovation: Designing and testing business model in a corporate environment

  1. 1. RECOMMENDED BY CO-FOUNDER MILAN VUKAS Startup Mentor
  2. 2. Agenda STEP 1 Introduction What is a business model? Enterprise innovation process. STEP 2 Business Model Canvas Workshop 9 building blocks to a business model. STEP 3 What’s next? Maximizing enterprise innovation on a daily basis. Adobe's Story: Building innovators, not innovations.
  3. 3. Introduction
  4. 4. Strategy Channels Profit Pricing Product What is a Business Plan? THERE IS NO CLEAR DEFINITION ONE TERM, DIFFERENT DEFINITIONS
  5. 5. Business Plan: DESCRIBES THE RATIONALE OF HOW AN ORGANIZATION CREATES, DELIVERS, AND CAPTURES VALUE
  6. 6. Words are NOT enough
  7. 7. Business Model Canvas
  8. 8. The Business Model Canvas is a strategic management and lean startup tool. It is a visual chart composed of nine essential building blocks that describe how a business creates, delivers and captures value. The Business Model Canvas is used to design, test, and build new business models or to document, discuss, and manage existing ones. strategyzer.com/canvas In brief: Business Model Canvas
  9. 9. CUSTOMER SEGMENTS Different groups of people or organisations an enterprise aims to reach and serve. There are different types of Customer Segments: • Mass Market • Niche market • Segmented • Diversified • Multi-sided platforms
  10. 10. VALUE PROPOSITIONS Bundle of products and services that create value for a specific Customer Segment. Elements which contribute to customer value creation: • Newness • Performance • Customization
  11. 11. Product-Market Fit
  12. 12. CHANNELS How a company communicates with and reaches its Customer Segments to deliver a Value Proposition. Channel Types: • Direct: Sales force, Web sales • Indirect: Partner stores or wholesaler
  13. 13. CUSTOMER RELATIONSHIPS Type of relationships a company establishes with specific Customer Segments. Categories of Customer Relationships: • Personal assistance • Dedicated personal assistance • Self-service • Automated services
  14. 14. REVENUE STREAMS Represents the cash a company generates from each Customer Segment. Several ways to generate Revenue: • Usage fee • Subscription fees • Lending / Renting / Leasing • Licensing
  15. 15. KEY RESOURCES Most important assets required to make a business model work. Key Resources can be categorized as follows: • Physical • Intellectual • Human • Financial
  16. 16. KEY ACTIVITIES Most important things a company must do to make its business model work. Key Activities can be categorized as follows: • Production • Problem solving • Platform / network
  17. 17. KEY PARTNERSHIPS Network of suppliers and partners that make the business model work. Three motivations for creating partnerships: • Optimization and economy of scale • Reduction of risk and uncertainty • Acquisition of particular resources
  18. 18. COST STRUCTURE All costs incurred to operate a business model. Distinguish between: • Cost-driven • Value-driven
  19. 19. Two #funfacts (you need to know)
  20. 20. #funfact #1 LEFT BRAIN Logic RIGHT BRAIN Emotion
  21. 21. #funfact #1 LEFT SIDE Efficiency RIGHT SIDE Value
  22. 22. #funfact #2 The Business Model will NOT find you
  23. 23. #funfact #2 YOU have to find the right Business Model
  24. 24. Municipalities Making lemonade Marketing Selling Ingredients Sales people Booth Salaries / Commission Flyers Equipment Lemonade sales Tips Cold tasty lemonade on-the-go Personal Booth sale kellyslemonade .com Park visitors
  25. 25. Payment Providers Distribution Partner Telco Partners Software Development Software Developers Software Software Development Complaint Management Free Hardware Sales Skype Out (Prepaid / Subscription) Free internet & video calling Mass Customized skype.com Headset Partnerships Web Users Globally People who want to call phones
  26. 26. Do it yourself! Use the canvas to describe, design, challenge, and pivot your business model for any idea you might have on your mind at the moment. It works in conjunction with other strategic management and execution tools and processes. What’s your business model?
  27. 27. What’s next? 2) Adobe’s Story: Building innovators, not innovations 1) Maximizing enterprise innovation on a daily basis
  28. 28. 14 Ways to Apply the Canvas
  29. 29. Kickbox is a new innovation process that Adobe developed for it’s own use and then open- sourced so everyone can use it. It’s designed to increase innovator effectiveness, accelerate innovation velocity, and measurably improve innovation outcomes. It can also optimize innovation investments by reducing costs compared to traditional approaches. kickbox.adobe.com Enterprise innovation at scale: Adobe Kickbox
  30. 30. “You cannot business-model your way out of a shitty product” Tim O’Neil (CEO, O’Reily Media)
  31. 31. Thank you! MILAN VUKAS Startup Mentor @m_vukas hello@milanvukas.com www.milanvukas.com

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