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Business Model Innovation
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
âŁbusin ess model
ronment as sessment
envi patterns
busi ness model
14. 1
they
 focused
 on
Â
product
 innova8on
Â
alone
Â
they
 empower
 the
Â
product
 through
 the
Â
business
 model
15. 2 they
 simply
 copied
Â
from
 compe8tors
they
 invented
Â
 a
 new
Â
business
 model
16. 3
they
 could
 prove
 in
Â
advance
 that
 the
 model
Â
would
 work
they
 had
 to
 take
 some
Â
risk
 and
 experiment
17. â The enemy of
innovation are two
words - prove it -
you can not prove
â
any new idea
Roger Martin, Dean Rotman School
18. ?
So
 how
 does
 one
 come
Â
up
 with
 successful
Â
business
 models?
19. 123
going
 beyond
Â
business
 going
 beyond
design
 going
 beyond
ongoing
Â
product
 copying wai8ng
model
innova8on thinking
compe8tors process
for
 proof
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
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
84. a
 business
 model
 might
 look
Â
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
Â
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
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
Â
company
 or
 launch
 the
 project,
 else
Â
youâll
 risk...
93. take-Ââaway
3
un8l
 itâs
 in
 the
 market
 there
 is
 no
Â
proof
 that
 even
 the
 best
Â
 business
Â
model
 on
 paper
 will
 work