The Business Model of Consulting is Dead. Hourly rates are in conflict with customer solutions. How can you create a model that adds value to nowadays customer needs? Here are the slides of a keynote I gave in Ukraine, Kiev.

1. DESIGNING BETTER BUSINESSES
The Business Model of Consulting is dead…
Kyiv, May 17th 2013

2. @patrickpijl
#bmgen

3. WARNING!

4. 223
SLIDES

5. DESIGNING BETTER BUSINESSESThe business model of consulting is
dead…

6. We need new tools…

7. We need new skills…

8. Because writing plans is a waste of
time...

9. Will will INNOVATE new business
models in consulting!

10. MY JOURNEY…

11. Tallinn (EST)
Hawaii (USA) Amsterdam (NET)
Bilbao (ESP) Tokyo (JAP)
Santiago (CHI)
Zagreb (CRO) Paris (FRA) Los Angeles (USA)

12. MY CLIENTS…

14. AND A NEW
BUSINESS MODEL
FOR CONSULTING

15. DESIGNING BETTER BUSINESSES

16. FIRST AN
INTRODUCTION

17. DESIGNING BETTER BUSINESSES

18. DESIGNING BETTER BUSINESSES

19. SON OF..

20. DESIGNING BETTER BUSINESSES

21. DESIGNING BETTER BUSINESSES

26. DESIGNING BETTER BUSINESSES

27. DESIGNING BETTER BUSINESSES

28. LET’S CHANGE THE
BUSINESS MODEL OF
THE PUBLISHING
INDUSTRY!

29. In November 2008 we started an
online platform

30. Every participant paid 24 USD

31. $24.

32. $36.

33. $54.

34. $81.

35. $243.

36. so why did people participate and
pay?
?!

37. people love being trendy & want to be
the first

38. people want to be part of something
BIGGER and prove it

39. and it’s all about communities (of
practitioners or passionates)

42. + 600.000 books
+ 26 translations♯

43. WE NEED TO
RETHINK THE WAY
WE DO BUSINESS!

44. TODAY…

45. …WE SEE FORCES
WE HAVEN’T SEEN
BEFORE…

46. …I CALL THEM
NEW RULES
OF THE BUSINESS
GAME.

47. DRIVER #
1

48. SUSTAINABILITY

49. DESIGNING BETTER BUSINESSES

50. Driver #
2

51. CREDIT CRISIS

52. DESIGNING BETTER BUSINESSES

53. DESIGNING BETTER BUSINESSES

54. Driver #
3

55. “IT’S MY TURN”
ECONOMY

56. UPCOMING
MARKETS

57. DESIGNING BETTER BUSINESSES

58. OR MARKETS THAT
CAME UP?

59. DESIGNING BETTER BUSINESSES

61. Driver #
4

62. DIFFERENT
CUSTOMER
BEHAVIOR

63. generation
y

66. Driver #
5

67. THE ONLINE
REVOLUTION

70. Driver #
6

71. TECHNOLOGY

74. SO WHY IS THE
BUSINESS MODEL OF
CONSULTING DEAD?

75. I WILL SHOW YOU…

76. FREE ACCESS TO
INFORMATION 24
HOURS A DAY

77. Wikipedia is an amazing source…

78. Stanford University offers free online
courses

79. Linkedin inspires you with articles
and leaders to follow…

80. And we decided to give away the
business model canvas for free.

81. DO IT YOURSELF
MENTALITY BY
CLIENTS

83. ENORMOUS SPEED
OF THE MARKET

84. The speed of developments has
increased…

85. resulting in shorter shelf lives of
companies…

86. TRANSPARENCY
ALSO
IN PRICING

87. THE WORLD
IS YOUR
COMPETITION

88. Hire online through guru.com!

89. Proposals are shared through
emails easily…!

90. AND THE WORST OF
ALL

91. HOURLY RATES ARE
IN CONFLICT WITH
SOLUTIONS

92. SO...

93. DE WORLD HAS
REALLY CHANGED.

94. BUT DO YOU SEE
THIS ALSO?

96. NEW PROBLEMS…

97. REQUIRE NEW TOOLS

98. REQUIRE NEW
SKILLS

99. SO WHAT ARE NEW
TOOLS?

100. WHAT IS A
BUSINESS MODEL?

102. DESIGNING BETTER BUSINESSES

103. WHAT ARE
BUSINESS MODELS?

105. DESIGNING BETTER BUSINESSES

106. IMAGINE
(BOARDROOM)
CONVERSATIONS…

112. WE NEED NEW
TOOLS TO
UNDERSTAND AND
CRAFT NEW
BUSINESS MODELS

113. WE NEED NEW
TOOLS TO
UNDERSTAND AND
CRAFT NEW
BUSINESS MODELS

114. A business model describes
the rationale of how an
organization creates, delivers
and captures value
Definition_Business Model

115. BUSINESS MODEL
CANVAS
THE

116. Building
Blocks9

117. Who is my customer?!
images by JAM!

118. What is my value proposition?!
images by JAM!

119. What channels will I use?!
images by JAM!

120. What relationship do I entertain?!
images by JAM!

121. What is my revenue stream?!
images by JAM!

122. What are my key resources?!
images by JAM!

123. What are the key activities?!
images by JAM!

124. Who are my key partners?!
images by JAM!

125. How does the cost structure look like?!
images by JAM!

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

127. Let us look at the business model
of Nespresso

130. Partners! Proposition! Relation! Customers!
Channels!
Activities!
Resources!
Costs! Revenues!

131. OFFER
DISTRIBUTION
CHANNELS
CUSTOMER
RELATIONSHIPS
CUSTOMER
SEGMENTS
REVENUE STREAMSCOST STRUCTURE
KEY
ACTIVITIES
PARTNER
NETWORK
KEY
RESOURCES
The Business Model of Nespresso
Households
Retail
Mail
Order
Nespresso
Club
Production
B2C
Distribution Marketing
B2C
Distribution
Production Marketing
Machine
Manufacturer
1 x Machine
Sales
Repetitive
Pad Sales
Business
Call
Center
Nespresso
Stores
Nespresso
.com
Nespresso
Machines
Nespresso
Pads
Patents Brand
Coffee
Production
Facilities
Distribution
Channels

134. WHAT ABOUT YOUR
BUSINESS MODEL?

135. “What does your current
business model look like?”
Spend 10 minutes with your neighbor
defining your current business model

136. OFFER
DISTRIBUTION
CHANNELS
CUSTOMER
RELATIONSHIPS
CUSTOMER
SEGMENTS
REVENUE STREAMSCOST STRUCTURE
KEY
ACTIVITIES
PARTNER
NETWORK
KEY
RESOURCES
The Business Model of Consulting
Any client
Hours High rates
Blah
Blah
Blah
Blah
Blah
Reports

137. VALUE
PROPOSITION
What
customer
needs
do
we
satisfy?
What
problem
do
we
help
our
customers
solve?
What
advantages
do
our
products
and
services
provide
our
customers
with?
What
products
and
services
do
we
deliver
to
our
customers?
CHANNELS
Through
what
channels
do
we
deliver
our
products
and
services?
CUSTOMER
RELATIONSHIPS
What
kind
of
relationship
do
we
maintain
with
our
customers?
Personal
contact?
Automatic?
Self-­‐
service?
CUSTOMER
SEGMENTS
Who
is
our
customer?
For
whom
do
we
create
value?
Can
we
distinguish
different
customer
segments?
REVENUE STREAMS
What
revenue
streams
do
we
generate?
What
is
the
size
of
each
revenue
stream?
COST STRUCTURE
What
are
the
inherent
costs
in
our
current
business
model?
What
is
the
size
of
each
cost?
KEY
ACTIVITIES
What
type
of
key
activities
do
we
perform?
KEY
PARTNERS
Who
are
our
key
partners?
What
is
our
motivation
to
work
with
partners?
What
key
resources
do
we
acquire
through
partners?
What
key
activities
do
our
partners
perform?
KEY
RESOURCES
What
key
resources
does
our
proposition
require?
Physical?
Intellectual?
Human?
Financial?
CURRENT BUSINESS MODEL

138. SO WHAT DID YOU
LEARN?

139. WE NEED NEW
SKILLS…

140. WE NEED TO THINK
AND ACT LIKE
DESIGNERS

141. OBSERVE
1

142. DESIGNING BETTER BUSINESSES India mobile
study

143. Clayton Christensen

144. DESIGNING BETTER BUSINESSES
What is the
Job you get
done?

145. DESIGNING BETTER BUSINESSES

146. THINK
VISUALLY
2

147. DRAWING IS THE
NEW WRITING

148. what tools do we use to describe
and reflect on business models?

149. DESIGNING BETTER BUSINESSES

150. DESIGNING BETTER BUSINESSES

151. “The Wall is the New Desk”
Dave Gray CEO XPLANE
1!

152. … but that is not enough

154. IDEATE
3

155. YOU NEED TO BE
ABLE TO JUGGLE
WITH BUSINESS
MODELS

156. DESIGNING BETTER BUSINESSES

157. We will work on that
today ;-)

158. PROTOTYPE
4

159. DESIGNING BETTER BUSINESSES

160. the past was about
choosing solutions
the future is about
generating options

161. prototyping let’s you fail
early to succeed sooner
ideo.com
“
”

162. Frank Gehry

166. MAKERS
MIND
5

168. Chris Anderson

169. FORESEE
FUTURE
6

171. SO LET’S INNOVATE
YOUR BUSINESS
MODEL…

172. WHAT IF…

173. WHAT IF:
YOU CHARGE 10
TIMES MORE?

174. WHAT IF:
YOU CHARGE FIXED
PRICES?

175. WHAT IF:
YOU SELL A
SUBSCRIPTION?

176. WHAT IF:
YOUR CLIENT HAS
ALL INFORMATION?

177. “What does your future
business model look like?”
Spend 10 minutes with your neighbor
defining your current business model

178. DON’T WORRY…

179. CLIENTS ARE STILL
WILLING TO PAY FOR
CONSULTANTS

180. SHORTAGE
OF STAFF
1

181. EXTERNAL
FORCE AS
POLITICAL
POWER
2

182. BEST
PRACTICES
3

183. DEEP OR NICHE
EXPERTISE
4

184. TRAINING
5

185. FRESH
PERSPECTIVE
6

186. BUT WITH A CLEAR
AND FAIR PRICE

187. THIS IS HOW I DO IT.

188. Method for Business Model Innovation

189. WITH FIXED PRICES

190. AND MY RULES OF
THE GAME

192. VISUALIZATION
ONLY

193. Future scenario

194. Business model

195. Story or roadmap

196. MY JOURNEY…

197. Tallinn (EST)
Hawaii (USA) Amsterdam (NET)
Bilbao (ESP) Tokyo (JAP)
Santiago (CHI)
Zagreb (CRO) Paris (FRA) Los Angeles (USA)

198. MY CLIENTS…

200. AND A NEW
BUSINESS MODEL
FOR CONSULTING

201. DESIGNING BETTER BUSINESSES

202. Last thing.

203. I am Patrick.

204. I want to challenge the
status quo.

205. Challenge the way we
design business.

206. To think different.

207. Because if YOU love
what you do…

208. You are more creative &
productive.

209. Let us design better
business.

210. DESIGNING BETTER BUSINESSES