Business Model Innovation: From Service to Business
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a more recent version for the course on BMGEN at HEC Lausanne
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Business Model Innovation: From Service to Business
- 1. ess model b usin innov ation ed a ta lk prepar er by alex osterwald r and yv es pigneu mber 2011 HEC Nove
- 2. n service desig ytelling sc enario & stor task analysis prototyping s from servi ce to busines servi ce blueprint t proces s managemen measuring ness model innovation busi ‣busin ess model ronment as sessment envi patterns busi ness model
- 7. Time Machine
- 8. 1958
- 9. [sources: Henry Chesbrough, photo: life.com]
- 10. Time Machine
- 11. 1997
- 13. ? what do both examples have in common?
- 14. 1 they focused on product innova8on alone they empower the product through the business model
- 15. 2 they simply copied from compe8tors they invented a new business model
- 16. 3 they could prove in advance that the model would work they had to take some risk and experiment
- 17. “ The enemy of innovation are two words - prove it - you can not prove ” any new idea Roger Martin, Dean Rotman School
- 18. ? So how does one come up with successful business models?
- 19. 123 going beyond business going beyond design going beyond ongoing product copying wai8ng model innova8on thinking compe8tors process for proof
- 20. business 1 model
- 22. common language
- 24. to describe, challenge, design, and invent business models more systematically
- 25. CUSTOMER SEGMENTS DESCRIBING WHO A COMPANY OFFERS VALUE TO images by JAM
- 26. VALUE PROPOSITIONS DESCRIBING A COMPANY’S OFFER images by JAM
- 27. CHANNELS DESCRIBING HOW A COMPANY REACHES ITS CUSTOMERS images by JAM
- 28. CUSTOMER RELATIONSHIPS DESCRIBING THE RELATIONSHIPS A COMPANY BUILDS images by JAM
- 29. REVENUE STREAMS DESCRIBING HOW A COMPANY MAKES MONEY images by JAM
- 30. KEY RESOURCES DESCRIBING WHAT CAPABILITIES ARE REQUIRED images by JAM
- 31. KEY ACTIVITIES DESCRIBING WHAT ACTIVITIES ARE REQUIRED images by JAM
- 32. KEY PARTNERS THE PARTNERS THAT LEVERAGE THE BUSINESS MODEL images by JAM
- 33. COST STRUCTURE DESCRIBING THE COSTS OF A BUSINESS MODEL images by JAM
- 34. key value customer activities proposition relationships key customer partners segments cost revenue structure key streams resources channels images by JAM
- 35. The Business Model Canvas KEY KEY OFFER CUSTOMER CUSTOMER PARTNERS ACTIVITIES RELATIONSHIPS SEGMENTS KEY CHANNELS RESOURCES COST STRUCTURE REVENUE STREAMS 35
- 36. building building block block building building block building building block block block building block building block building block build ing bu ilding bloc building k block block
- 40. “the wall is the desk of the future” (Dave Gray) 40
- 42. illustra(on
- 43. CIRQUE DU SOLEIL
- 44. Cirque du soleil nage recruit talents stage & ma spectacle & eliminate logistics theater & star & animal shows opera visitors artistic circus new untapped ns market without lio artistic feel & internet atmosphere booking higher ticket increase prices price
- 45. 1 break out
- 47. ? describe the Nespresso’s business model using the canvas
- 48. ? ? ? ? ? ? ? ? ? 48
- 49. take-‐away 1 Focusing on product innova8on is not enough anymore, empower the product through a business model
- 50. design 2 thinking
- 51. analytical intuitive thinking thinking thin king design
- 52. “ business people don’t just need to understand designers better; they need to become designers ” Roger Martin, Dean Rotman School
- 53. the desig ner’s t ool kit ...
- 54. prototyping
- 60. ? what does that have to do with business models and organiza8on?
- 62. 62
- 64. 64
- 66. customer insight
- 67. analyze from the customer perspective PARTNER KEY OFFER CUSTOMER CUSTOMER NETWORK ACTIVITIES RELATIONSHIPS SEGMENTS KEY DISTRIBUTION RESOURCES CHANNELS COST STRUCTURE REVENUE STREAMS
- 68. Jan Chipchase (Nokia)
- 69. his main weapon
- 70. India mobile study
- 71. 71
- 72. 2 break out
- 74. Jigar Shah
- 75. ? where is solar energy par8cularly useful?
- 76. in the context of shopping centers 76
- 77. ? brainstorm and describe a business model for a solar company
- 78. 1 m shid- in opp to large g solar pananel el center solar p s organizatio ns tion installatio n installa 78
- 79. take-‐away 2 don’t fall in love with your first idea, because it will become difficult to con8nue exploring
- 80. ongoing 3 process
- 81. uncertainty/patterns/insight clarity/focus research designing business model business model design to & understand prototypes be implemented [Source: adapted from Damien Newman, Central] 81
- 82. Steve Blank
- 83. 83
- 84. a business model might look great on paper... building block building buildin block g blo block ck building block building block build in block g building building block .. but aUer all it block build in block g is only a... building buil d block blo ing ck buildin g block
- 85. ... a set of hypotheses guess guess guess guess guess guess guess guess guess gues guess s guess
- 86. you needs to get out of the building and ...
- 87. test each hypothesis (e.g. with customers)
- 88. 88
- 89. ... adapt the business model un8l you can prove it works customer customer customer company discovery validation creation building pivot
- 90. only then should you build your company or launch the project, else you’ll risk...
- 91. burning your cash while searching for a business model
- 93. take-‐away 3 un8l it’s in the market there is no proof that even the best business model on paper will work
- 94. 3 break out
- 95. Pascal Meyer 95
- 96. ? using the canvas describe the business model for
- 98. business design ongoing model thinking process
- 99. business model r eview ✓ common language ✓ 9 blocks ✓ managing as designing ✓ entrepreneurial spirit
- 100. Thank you ... contact@alexosterwalder.com yves.pigneur@unil.ch