1. How
to
Innovate
with
Business
Model
Design
Luis
D.
Duval,
Ph.D.,
MBA
SLADE
2013
pre-­‐Congress
October
9,
2012
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2012
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2. Why
there
is
so
much
interest
in
business
model
innova;on?
•
Increasing
speed
of
everything
-­‐
product
life-­‐cycles
and
design
cycles
are
geKng
shorter
•
Inter-­‐industry
compeMMon
-­‐
compeMMon
is
coming
from
unexpected
places
•
DisrupMon
-­‐
from
business
models
that
offer
bePer
customer
experiences
instead
of
simple
products
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2012
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3. Why
is
important?
Ma>hew
S.
Olson
and
Derek
van
Bever
STALL
POINTS,
Yale
University
Press
“Once
a
company
runs
up
against
a
major
stall
in
its
growth,
it
has
less
than
a
10%
chance
of
ever
fully
recover”
•
Sooner
or
later,
all
businesses,
even
the
most
successful,
run
out
of
room
to
growth
•
Business
are
compelled
to
reinvent
themselves
periodically
•
The
ability
to
pull
off
this
difficult
test
separates
high
performers
from
those
whose
Mme
at
the
top
is
all
to
brief
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2012
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4. Business
Model
Innova;on
is
an
impera;ve
Going
…
Going
…
Gone!
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2012
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5. aligned
with
company
goals
The
choices
made
while
designing
a
business
model
should
deliver
consequences
that
enable
an
organizaMon
to
achieve
its
goals
self-­‐reinforcing
The
choices
that
execuMves
make
while
creaMng
a
business
model
should
complement
one
another;
there
most
be
internal
consistency
robust
A
good
business
model
should
be
able
to
sustain
its
effecMveness
over
Mme
by
fending
off
threads
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2012
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Tradi;onal
business
model
System
of
interconnected
and
interdependent
acMviMes
that
determines
the
way
the
company
“does
business”
with
its
customers,
partners
and
vendors

6. Business
model
innova;on
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An
innova1ve
business
model
can
either
create
a
new
market
or
allow
a
company
to
create
and
exploit
new
opportuni6es
in
exisMng
markets

7. Examples
of
business
model
innova;on
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2012
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credit
card
reader
iPhone,
iPad
Create
a
new
market?
New
opportuniMes?

8. 10/2001
iPod/iTunes
01/2007
iPhone
01/2010
iPad
Source:
finance.yahoo.com
Apple
founded
in
1976
–
S.
Jobs
returned
1997
HTC
founded
in
1997
In
summary:
Product
innovaMon
without
business
model
innovaMon
may
not
always
provide
enough
compeMMve
advantage
1997
Apple/HTC
race
starts
1996
HTC
branded
smart
phone
MS-­‐powered
mobile
phones
for
Palm,
HP,
T-­‐Mobile
How
it
works?
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2012
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9. •
By
adding
new
acMviMes
–
new
acMvity
system
“content”
–
refers
to
the
selec6on
of
ac6vi6es
to
be
performed
•
By
linking
acMviMes
in
novel
ways
–
new
acMvity
system
“structure”
–
describes
how
the
acMviMes
are
linked
and
in
what
sequence
•
By
changing
one
or
more
parMes
that
perform
any
of
the
acMviMes
–
new
acMvity
system
“governance”
–
refers
to
who
performs
the
acMviMes
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2012
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how
to
innovate
in
business
model
design

10. ©
2012
DCG.
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Reserved
how
to
innovate
in
business
model
design
Change
one
or
more
of
these
elements
enough
and
you
have
changed
the
model
value
crea;on
value
crea;on

11. •
It’s
not
enough
to
make
a
difference
on
product
quality
or
delivery
readiness
or
producMon
scale.
It’s
important
to
innovate
in
areas
where
your
compe66on
does
not
act.
•
It’s
far
broader
in
scope
than
product
or
technological
innovaMon
In
short:
– is
about
new
value,
not
new
things
– is
systema1c
– it
comes
in
many
flavors
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2012
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Business
model
innova;on
experience
Low-­‐cost
simplicity
disMncMve

12. ©
2012
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A
framework
for
growth
Forward
looking
companies
are
figuring
out
ways
to
leverage
convenMonal
business
models
to
create
innovaMve
business
model
InnovaMve
Business
Models
Strategy
TacMcs

13. Business
models
vs.
Strategy
vs.
Tac;cs
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2012
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Business
Models
–
Are
the
logic
of
the
company
Strategy
–
Is
the
plan
to
create
a
unique
and
valuable
posiMon
involving
a
disMncMve
set
of
acMviMes
Tac6cs
–
Residual
choices
open
to
a
company
by
virtual
of
the
business
model
that
it
employs
Developing
strategies,
tac1cs
and
innova1ve
business
models
has
never
been
easy.
That
is
the
essence
compe11veness!

14.
Follow:
@ldduval11
Connect:
www.linkedin.com/in/ldduval
Contact:
+1
916.844.4190
luis_duval@yahoo.com
Learn
more
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2012
DCG.
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Rights
Reserved