Hart - Business Model Innovation 2010

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Duncan Hart LLB MBA (Australia)

Business Model Innovation

Business Education

Economic Darwinism

"In the struggle for survival,
the fittest win out at the
expense of their rivals
because they succeed in
adapting themselves best to
their environment."

Is that your best shot?

External
Your resources Your
resources resources

External
resources

External
resources

Osterwald A, Pigneur Y. (2009) Business Model Generation

“Innovating the company’s business model itself is part of the company’s
innovation task” - Chesbrough

Product Innovation

Nestle Dyson Gillette Polaroid Toyota 3M Crown Cork
& Seal

Product
Innovation?

Key Partners

Key Activities

Key Resources

Cost structure

VALUE
PROPOSITION
Customer
Rrelationships
Distribution
Channels
Text example
Customers

Revenue

Business Model Innovation (By Company)

ITunes Wal-Mart McDonalds P&G Better Place Google ALDI

Product
Innovation?

Key Partners

Key Activities

Key Resources

Cost structure

VALUE
PROPOSITION
Customer
Rrelationships
Distribution
Channels
Text example
Customers

Revenue

Business Model Innovation – becomes ‘generic’
Department Reality TV Leasing Assembly Line Franchising Party plans Disposable
Store
Survivor
Example Macy’s Subway
Big Brother Singer/Boeing Ford Tupperware BIC/Gillette/HP
McDonalds

Key Partners

Key Activities

Key Resources

Cost structure

VALUE
PROPOSITION
Customer
Rrelationships
Distribution
Channels
Text example
Customers

Revenue

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Workshop at TiE Bangalore. Whenever a business is established, it either explicitly or implicitly employs a particular business model that describes the architecture of the value creation, delivery, and capture mechanisms employed by the business enterprise. The essence of a business model is that it defines the manner by which the business enterprise delivers value to customers, entices customers to pay for value, and converts those payments to profit: it thus reflects management's hypothesis about what customers want, how they want it, and how an enterprise can organize to best meet those needs, get paid for doing so, and make a profit. This workshop will help entrepreneurs identify and validate their business model - which is a basis for a sound business plan. It will combine theoretical inputs with hands-on work, enabling experiential learning and validation of concepts introduced. Concepts such as "Business Model Canvas" and "Minimum Viable Product / Service" will be explored. And participants will have an opportunity to use these techniques in developing and evolving their own business concepts. If you are an entrepreneur looking at validating your business idea, or looking at scaling your business you could gain from this workshop. Also if you are a manager managing a business in an enterprise and want to expand or diversify you will have many take away's for your need. Take away's from the workshop: Development of an initial business model Understanding of what constitutes the "Minimum Viable Product / Service" for the business Validation / refinement of the business model with actual customer feedback Develop foundation for a sound business plan.

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Hart - Business Model Innovation 2010

6. Economic Darwinism "In the struggle for survival, the fittest win out at the expense of their rivals because they succeed in adapting themselves best to their environment."

7. Schumpeter

8. Drucker

10.

11.

12.

13. Firm’s Innovation Landscape

14. R&D Open Methods

15. R&D Open Business Models Methods

16. Is that your best shot? External Your resources Your resources resources External resources External resources

17. Business Models - Osterwald

18. Osterwald A, Pigneur Y. (2009) Business Model Generation

19. “Innovating the company’s business model itself is part of the company’s innovation task” - Chesbrough

20. Product Innovation Nestle Dyson Gillette Polaroid Toyota 3M Crown Cork & Seal Product Innovation? Key Partners Key Activities Key Resources Cost structure VALUE PROPOSITION Customer Rrelationships Distribution Channels Text example Customers Revenue

21. Business Model Innovation (By Company) ITunes Wal-Mart McDonalds P&G Better Place Google ALDI Product Innovation? Key Partners Key Activities Key Resources Cost structure VALUE PROPOSITION Customer Rrelationships Distribution Channels Text example Customers Revenue

22. Business Model Innovation – becomes ‘generic’ Department Reality TV Leasing Assembly Line Franchising Party plans Disposable Store Survivor Example Macy’s Subway Big Brother Singer/Boeing Ford Tupperware BIC/Gillette/HP McDonalds Key Partners Key Activities Key Resources Cost structure VALUE PROPOSITION Customer Rrelationships Distribution Channels Text example Customers Revenue

Hart - Business Model Innovation 2010

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