Getting started with business model innovation

1. Business models 101
Getting mobilized
© Arnold Wytenburg & others 1

2. • A biz model describes the rationale of
how an organization creates, delivers, and
captures value
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3. • A biz model:
– Must be simple, relevant, intuitive, and
inherently understandable
– Mustn’t oversimplify the complexities of the
business
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4. • A biz model must address all four principal
domains of enterprise:
infrastructure offer market
financial
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5. • A well-defined biz model can be:
– Managed
– Structured into processes
– Used to leverage the creative potential of an
entire organization
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6. The basic “biz model canvas”
key customer
activities relationships
key value customer
partnerships proposition segments
key distribution
resources channels
cost structure revenue streams
© Arnold Wytenburg & others w/thx to Alex Osterwalder & Yves Pigneur 6

7. • Generate vs. innovate?
– Is this a “green fields” scenario?
– Are you starting with an entrenched
organization or existing biz model?
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8. • Generate a new model if your goal is to:
– Satisfy existing but unanswered market needs
– Bring brand new technologies, products, or
services to market
– Improve, disrupt, or transform an existing
market with a better business model
– Create an entirely new market
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9. • Innovate an existing model if you need to:
– Respond to a crisis
– Adjust, improve, or defend an existing biz
model to adapt to a changing environment
– Bring new technologies, products, or services
to an existing market
– Prepare for the future
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10. • Main challenges for creators of new biz
models:
– Finding the right model
– Testing the model
– Gaining market acceptance
– Responding and adapting to market feedback
– Managing uncertainty
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11. • Main challenges for innovators of existing
biz models:
– Developing an appetite for change
– Aligning old and new models
– Managing vested interests
– Focusing on the long term
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12. • Creating and innovating biz models:
– Can be messy and unpredictable
– Requires the ability to cope with uncertainty
and ambiguity
– Demands patience and flexibility
– Calls for a “design attitude” instead of a
“decision attitude”
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13. • A ‘decision attitude’:
– Assumes designs are easy, but choosing
among them is hard
– Focuses on ‘doing things right’ by limiting the
options as early as possible
– Is linear, following a predictable ‘analysis,
decision-making, optimization’ trajectory
– Aims to reduce uncertainty, results in
increased complexity
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14. • In contrast, a ‘design attitude’:
– Assumes design is hard, but deciding which
one to select is trivial if design is done well
– Focuses on ‘doing the right things’ by exploring
and prototyping multiple possibilities
– Is non-linear, going back and forth between
market research, analysis, prototyping, and
idea generation
– Aims to reduce ambiguity, results in increased
clarity
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15. • How it works:
Mobilize… Understand... Design... Implement... Manage...
© Arnold Wytenburg & others w/thx to Alex Osterwalder, Yves Pigneur , and Damien Newman 15

16. Mobilization
• Mobilizing is about:
– Creating awareness of the need for business
innovation
– Establishing the motivation to change
– Defining a common language and framework
for describing, designing, analyzing, and
discussing the business
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17. Mobilization: key activities
• Framing the project:
– Project rationale
– Scope of impact
– Key objectives
• Testing preliminary ideas
• Planning the project
– Initial focus is on mobilization, understanding, and design
– Deal with implementation and management later
• Assembling the team
– Knowledgeable
– Capable
– Motivated
– Committed
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18. Mobilization: success factors
• Appropriate people, experience, and
knowledge
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19. Mobilization: risk areas
• Overestimating the value of your initial
idea(s)
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