2. A word of warning
I’m not an airline expert with
a long lasting track record of
operating an airline. I’m just a
knowledgeable customer of
the airline industry.
3. Introduction
• Dr. Patrick Stähler, Partner
@fluidminds – the business
innovators
• Expert on Business Model
Innovation
• Passion for customer experience
& authenticity
196 cm
• Passionate Mystery Shopper
6”6’
• Managing Director of Internet
Firm Experteer (90 FTEs)
• Born, when the Boeing 747 made
its maiden flight
• First website 1996, digerati ever
since
• CO2 footprint for flights = 9.421t
(not sustainable)
4. 3 disciplines to
master air travel
Running
Yoga
to reach • to store my self
connecting into the seat and
flights
• to learn to
accept what I
cannot change
Weight Lifting
to bring luggage
on board so it
does not get lost
13. Let‘s take a look what
Google (or the people)
think about airlines
Cheap is associated
with air travel. Bad
for the industry
14. Let‘s take a look what
Google (or the people)
think about
cheap = travel
15. 3
Thesis: Airlines have used
IT to maximize yields.
Now, customers
take revenge
with systems you can’t beat
16. In the past you had the IT power to run sophisticated yield management
systems. You had the power to do all the optimization of your yields
17. Times are changing
The power of the cloud
will always be larger than
your IT system
That’s you
18. Thesis: The digital and mobile
3
customer is a
knowledge customer
Please treat her/him this way
19. Times are changing: The
common customer has access to
more computing power than you
will ever have. Be prepared.
Why should the
customer trust your
app?
20. 4
Thesis: Airlines will become
commodities unless they
create business models
that customers love
and that are difficult to copy
21. What will happen when you
loose your direct sales channel?
What will happen to your profits
if customers outsmart your yield
management systems?
24. Why so little for
airtravel? Is it really
only the competition?
25. Would yo
u dare t
say this? o
Wh
be the a at would
nswer of
your boss
?
“Well, I know we are in a
commodity market where the
price is key, but I believe we can
sell the good for 10x as much
as before.”
32. 1. What value/ benefit do we
create for whom?
2. How do we do it?
3. How do we earn money?
4. What values do we pursue?
33. Components of a
business model
Value Proposition
What value or benefit do we create for our
customers and partners?
Value Architecture
How do we create the value?
Revenue Model
How and with what do we earn money?
Values/ Culture
What values do we pursue?
34. Value Proposition/ customer
Wertschöpfungsarchitektur
customers
Where is your
Value Proposition/ Kunden
Angebot
Distributionskanäle
uniqueness??
Kunden
§ Wie sieht mein Angebot § WhoWie erreicht das Angebot
§ are our § Wer ist mein Kunde?
aus?
meine Kunden?
§ Welchen „Job“
customers?
übernehme ich für
§ What job do we solve meinen Kunden?
Wertschöpfungskette
for our customers?
§ Was sind die wichtigsten
Schritte der Aktivität 1 Aktivität 2 Aktivität 3 Aktivität 4
Kunden
Aktivität 1 Nutzen
Wertschöpfung?
§ Welchen Nutzen stifte
ich für meinen Kunden?
value proposition
§ Welchen Nutzen stifte
Kernfähigkeiten
Partner
ich für meine Partner?
§ Welche Kernfähigkeiten § What value do we create
§ Welche Partner
brauche ich?
benötige ich?
for our customers?
§ What value do we create
for our partners?
Ertragsmodell
Kostenstruktur
Ertragsquellen
§ Die Kostenstruktur wird durch § Womit verdiene ich
die Wertschöpfungs-architektur Geld?
festgelegt.
Kultur/ Werte
Führungsstil
Beziehungskultur
Werthaltung
§ Welchen Führungsstil § Wie gehen wir § Welche Werte prägen uns?
pflege ich?
miteinander um?
42. Transparent pricing
in the telco industry
= innovation
Swisscom Mobile
• Simplified price structure. 0.50
CHF per call for up to 1 hour. Still
more expensive then competitor
for average call
• Simplified general terms
conditions (GTCs). No mandatory
contract duration
• Result: greater trust and growing
market share for the incumbent
43. Swiss railway (SBB)
• One price regardless of time
• No prebooking, No reservation
• Taktfahrplan (rigid time table with
planable departure times like
every 30 minutes)
• Actually pretty slow trains; No
high speed trains
• Result: Highly trusted
44. Business model innovation
is all about breaking
accepted rules. Be
prepared for opposition.
„Scary to be this nail. Where
will the hammer hit next
time?“
46. Airlines: Master of Transportation Economics
but not of customer experience
The need for business model innovation
17th International Airline Symposium, Seattle
October 6th, 2011
Dr. oec. Patrick Stähler