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BE A REBEL

DESIGNBETTERBUSINESS

BUSINESS MODEL INNOVATIONFOR MARKETERS

NIMA, 8 december 2016

@BusModInc_NL@GijsMensing

YOU WILL ALL BEDESIGNERS!

NEW TOOLSNEW SKILLSNEW MINDSET

WHY?

BUSINESS AS USUAL IS DEAD

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BUSINESS PLANS ARE SO 1980

OUR SHARED GOAL, A BETTER BUSINESS

WE WILL GIVE YOU TOOLS

A COMMON LANGUAGE TO DISCUSS BUSINESS

WE WILL WORK ON BUSINESS MODELS

IMPORTANT LESSONS FOR YOUR BUSINESS

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`ARE YOU READY?

THRILLINGRIDES

OR NOT WE ARE ALLRESPONSIBLE

`WHO ARE YOU?`WHAT DO YOU EXPECT?

AN INTRODUCTION

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GIJS MENSING

HOW IT ALL STARTED

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WE WANTED TO DISRUPT THE PUBLISHING INDUSTRY

24 USD 36 USD

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54 USD 81 USD

243 USD1.2 MILLION COPIES32 TRANSLATIONS

MOST ADDED VALUE IN VALUE PROPOSITION DESIGN PUBLISHED

OCTOBER 2014

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WE (RE-) DESIGN BUSINESSES

`ENGINGE IN START-UPS

`ENGINGE IN CORPORATES LOCATIONS

DESIGNING BETTER BUSINESSES

designbetterbusiness.com

POINT OF VIEW

GOAL

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IDEATE UNDERSTAND

VALIDATE PROTOTYPE

POINT OF VIEW

WHY IS BUSINESS MODELING SO POPULAR?

DESIGNING BETTER BUSINESSES DESIGNING BETTER BUSINESSES

DISRUPT BEFORE WE ARE DISRUPTED

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Insights from Moments of Impact:

UNFORESEEN TURBULENCE IS A CONSTANT FEATURE IN OUR WORLD

VUCA – WORLD: NON-STOP VOLATILITY, UNCERTAINTY, COMPLEXITY AND AMBIQUITY

`

`

`

`

LIKE AN AMUSEMENT PARK: FULL OF THRILLING RIDES. NOT ALL OF THEM ARE FUN.

Source:MomentsofImpact

THE WORLD HAS CHANGED

INLEGAL SUPPORT

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INGROCERIES

INLEGAL SUPPORT

FROM THIS…

INLEGAL SUPPORT

TO THIS…

INLEGAL SUPPORT

OR EVEN THIS!

INEDUCATION

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`FROM THIS… `TO THIS

FINANCING INLEGAL SUPPORT

INPUBLISHING

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`FROM BOOKS… `TO KINDLE

IN PUBLICTRANSPORT

`FROM THIS…

`TO UBER

IN OWNERSHIP

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`FROM THIS… `TO BMW DRIVENOW.

INRETAIL

`FROM SHOP…

`TO AMAZON

INMUSIC

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`FROM RECORD SHOP `TO STREAMING

THE RULES OF BUSINESS HAS CHANGED

`SUSTAINABILITY

`NEW GROWTH REGIONS `NEW WAYS OF PAYMENT

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`NEW TECHNOLOGY `CHANGING REGULATION

`ONLINE REVOLUTION `ONLINE REVOLUTION

`CHANGING CONSUMER

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SO…

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THE WORLD HAS CHANGED

THE TRADITIONAL MARKETING MIX IS NO LONGER RELEVANT

`

`

FROM INSIDE-OUT TO OUTSIDE-IN

`AND REPLACED BY SAVE

1 SINGLEQUESTION

WHERE IS VALUE CREATED?

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NEW TOOLS NEW SKILLS

NEW MINDSETTHE SPEED OF DEVELOPMENTS HAS INCREASED

DO YOU ALSO SEE THIS…?

WHAT DO YOU WANT TO ACHIEVE?

�IT�S MY JOB AS A DESIGNER TO MAKE CHOICES THAT TRIGGER THE RIGHT RESPONSES.�Nathan Shedroff(Chair of the DMBA)

“IF YOU’RE SITTING IN A ROOM WITH A BUNCH OF SLIDE DECKS, THERE’S VERY LITTLE THAT CAN GO WRONG.

THERE’S JUST VERY LITTLE THAT CAN GO RIGHT, TOO.”

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LEAD BY DESIGN�DESIGN IS A

HUMAN SKILLTHAT, FOR NOW

EVEN GOOGLE CAN�T AUTOMATE.�

John Maeda(Partner Kleiner Perkins)

DESIGN IS NOT WHAT IT LOOKS LIKEIT IS HOW IT WORKS

OBSERVE THEUSUAL SUSPECTS

BE PARANOID INNOVATION AS A DEPARTMENT

RADICALLYSELF-DISRUPT

ALL THE ROLES AND RULES COVERED

WAR FORTALENT

REGULARHIERARCHY

A TEAM OFBELIEVERS

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SIT THROUGHMEETINGS

CREATE MOMENTSOF IMPACT

WORK ON THATSINGLE RIGHT

SOLUTION

EXPLORE OPTIONSAND PIVOT

YOU WILL ALL BEDESIGNERS!

BUSINESS MODEL?

BUSINESS MODEL

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A BUSINESS MODELDESCRIBES THE RATIONALE OF HOW AN ORGANIZATION CREATES, DELIVERS, AND CAPTURES VALUE

THE BUSINESS MODEL CANVAS

CUSTOMER SEGMENTS1

VALUE PROPOSITIONS2 CHANNELS3

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CUSTOMER RELATIONSHIPS4 REVENUE STREAMS5

KEY RESOURCES6 KEY ACTIVITIES7

KEY PARTNERS8 COST STRUCTURE9

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CUSTOMERSEGMENTS

KEY PARTNERS

COST STRUCTURE REVENUE STREAMSCHANNELS

CUSTOMER RELATIONSHIPS

KEY RESOURCES

VALUE PROPOSITIONSKEY ACTIVITIES

#1 EASY CHECK IN

CHECK-IN TERMINALSADD VALUE

#2 13M2 ROOMS

ROOMSADD VALUE

#3 COSY ROOM AND FREE WIFI

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LOBBY LIVING ROOMSADD VALUE

DESIGNADD VALUE

#4 DIY COUNTER

CANTEEN MADD VALUE

#5 LEAVE WHEN U WANT

LOBBY LIVING ROOMSADD VALUE

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MICHAEL DID SOMETHING SMART…

AMBASSADORSREDUCE COSTS

ADD VALUE

citizenM: business model

EXERCISEWhat is our context? 1

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`

`

WHERE IS THECOMPETITION?

OFTEN PEOPLE WANT TO ADD A 10TH

BUILDING BLOCK TO THE CANVAS CALLEDCOMPETITION

WHAT DOES THE CONTEXT LOOKS LIKE?

WE NEED A COMMON UNDERSTANDING OF WHAT IS IMPORTANT AND WHAT IS NOT

`

`

LET’S LOOK AT STRATEGYZER

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EXERCISE: 10 MINUTESCONTEXT OF THE MUSIC INDUSTRY IN 2005

10MINUTES

EXERCISE: 5 MINUTESCONTEXT OF THE MUSIC INDUSTRY IN 2016

5MINUTES

DEFINE THE THREE MOST IMPORTANT ELEMENTS

EXERCISEThe business models of the music industry 2

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THE MUSIC INDUSTRY

VALUE CREATION?

FIRMS THAT RECORD, PRODUCE, PUBLISH, DISTRIBUTE AND MARKET MUSIC.

FANS THAT LISTEN TO (OR EXPERIENCE) MUSIC.

HOW DOES THE MUSIC INDUSTRY CREATE, DELIVER AND CAPTURE VALUE?

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WHAT DIFFERENT BUSINESS MODELS DO EXIST IN THE MUSIC INDUSTRY?

“Music is something most people love, that no onedislikes and that touches everyone throughout theirlives”

BrandAmp study, Millward Brown, 2007

BUSINESS MODELS IN THE MUSIC INDUSTRY

WE WILL EXPLORE

4 BUSINESS MODELS IN THE MUSIC INDUSTRY!

1. RECORD COMPANY2. PIRACY3. I-TUNES4. SPOTIFY

20MINUTES

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A RECORD COMPANY 1

BUSINESS MODEL CANVAS RECORD COMPANY

Mass marketHits and wannabee

hits

Tours and concerts

Huge sales from a few

artists’ albums

Merchandising

Marketing & promotion

Detecting & building talent (contracting)

Portfolio of star artists

Copyrighted content

Distribution channels

Manufacturers

Marketing & promotion Subsidizing

unsuccessful artists

Royalty payments

TV

Radio

Retailers

Digital

PIRACY 2BUSINESS MODEL CANVAS PIRACY

MASS MARKET

DIGITAL

DEVELOPERS OF ILLEGAL

APPLICATIONS AND

SOFTWARE

USER SKILLS, INTEREST

AND COMMITMENT

UPLOADPEER-TO-

PEER

DOWNLOAD ALL THE WORLDS MUSIC

A NETWORK OF

COMMITTED USERS

ADVERTISINGHOSTING

ITUNES 3BUSINESS MODEL CANVAS ITUNES

MASS MARKET

ITUNES STORE

RETAIL STORES

APPLE STORES

APPLE.COM

SEAMLESS MUSIC

EXPERIENCE AND GREAT

DESIGN(MUSIC AND HARDWARE)

LOVEMARK

SWITCHING COSTS

HARDWARE/SOFTWARE DESIGN

MARKETING & SALES

SUPPLY CHAIN

MANAGEMENT

CONTENT & AGREEMENTS

APPLE BRAND

TALENTED PEOPLE

(DESIGNERS)

ITUNES SOFTWARE

IPOD HARDWARE

MUSIC ROYALTIES

PEOPLE, DESIGN &

DEVELOPMENT HARDWARE

MANUFACTURING

MARKETING & SALES

RECORD LABELS

OEMS

HIGH-VOLUME CONTENT REVENUE

HIGH-MARGIN HARDWARE REVENUE

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SPOTIFY 4BUSINESS MODEL CANVAS SPOTIFY

ACCESS TO MUSIC VIA

STREAMING AND

DOWNLOAD SERVICES

PLATFORM DEVELOPMEN

T AND MAINTENANC

E

LICENSING AGREEMENTS

SOFTWARE AND

NETWORK ENGINEERS

RIGHTHOLDERS (LABELS

AND PUBLISHERS)

ADVERTISERS

INTERNET + PC

AD FEES SUBSCRIPTION FEES PC +

MOBILE

FREEROYALTIES TO RIGHTHOLDER

S SALARIES

BANDWITH COSTS

AUTOMATED ONLINE

RELATIONSHIP

GLOBAL MUSIC FANS

ADVERTISING

PLATFORM AND BRAND

INTERNET + MOBILE

3R D PARTY APIS COMMUNITIES

DESIGNING BETTER BUSINESSES

WHAT ARE THE LESSONS LEARNEDFROM THE MUSICINDUSTRY?

BUSINESS MODELS ARE NOT FIXED

THE BUSINESS MODEL OF THE FUTURE

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YOU NEED TO LOOK AT THE MARKET

UNDERSTAND YOUR CUSTOMER

BE FAST & FLEXIBLE AND ADAPT!

HOW CAN THE BUSINESS MODEL BE USED?

THE BUSINESS MODEL CANVAS CAN BE USED FOR REDESIGN AND INVENTION

HOW DOES IT CONNECT TO VISION, CONTEXT AND STRATEGY

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OURPROCESS

THESE ARE THE MINIMUMSTRATEGIC CONVERSATIONS

IDEATE UNDERSTAND

VALIDATE PROTOTYPE

POINT OF VIEW EXERCISEWho is our customer? 3

WHO IS OURCUSTOMER?

MOST COMPANIES HAVE NO IDEA WHO THEIR CUSTOMER IS. DATA IS NOT ENOUGH

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`WHO IS OUR CUSTOMER? `WHAT DOES HE WANT?

`WILLINGNESS TO PAY?

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JOB TO BE DONE MILKSHAKE MOVIE

WHAT IS THE JOB YOU GET DONE?

THE EASE OF FEELING AT HOME

NOT ABOUT A ROOM

POWER & SHOWING OFF!

NOT ABOUT WINE TASTING

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CONVEY MY IMAGE!

NOT ABOUT A CAR

FIX OR REPAIR SOMETHING

NOT ABOUT THE HARDWARE

BE SUCCESFUL & POSITION MYSELF

NOT ABOUT THE PERFECT SOLUTION

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20MINUTES

YOU ARE NOWREADY TOINNOVATE!

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PROTOTYPINGPROTOTYPING LET’S YOU FAIL EARLY TO SUCCEED SOONER

Ideo.com

“

”

EXERCISEIN OCTOBER

THIS BIKE AND $1,000.- ARE THE KEY RESOURCES OF YOUR BUSINESS MODEL

“DESIGN 3 DIFFERENT BUSINESS MODEL OPTIONS

IN 6 MINUTES!”

Spend 6 minutes defining three different business model options with the bike and the $ 1.000,- as your

key resources

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BUSINESS MODEL

6MINUTES

30 SEC BUSINESS MODEL INNOVATION

WE NOW HAVE A LOT OF INFORMATION, BUT MAYBE…

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WE CAN PLAN FOR THE FUTURE!

THINK LIKE ADESIGNER!

DESIGN?

DESIGN REQUIRES THE ABILITY TO IMAGINE “THAT WHICH DOES NOT EXIST”

IT’S A JOURNEY OF EXPLORATION

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BOLDLY GO WHERE NO-ONE HAS GONE BEFORE

It’s a Journey.

WHAT ARE DESIGN CRITERIA?

CURRENT BUSINESS MODEL

+/- +/-+/-

+/- +/-

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SO…HOW DO WE GET FROM START TO FINISH?

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IT’S A PROCESS! GENERATEOPTIONS 1

EXPLOREOPTIONS 2CHECK 3Against design criteria

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REPEAT 4THERE IS NOSINGLE RIGHT ANSWER!

KILL YOUR DARLINGS

SHAKEYOUR BUSINESS MODEL!

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FIRST WE WILL EXPLORE THE OPTIONS

THERE IS MORETHAN 1 OPTION

Which options are the most interesting?

BUT…

IN ORDER TO ENABLE YOU TO EXPLORE THE OPTIONS IN DETAIL, WE WILL SEND YOU INTO SPACE…

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EXERCISEMarshmallow Challenge 4

INGREDIENTS:1 MARSHMALLOW18 SPAGHETTI’S1 METER ROPE1 METER TAPE18 MINUTES

HIGHEST FREE STANDING STRUCTUREMARSH MELLOW ON TOP

BUSINESS MODEL VALIDATION

LET’S LOOK INTO SOME EXAMPLES

OF BUSINESS MODEL

INNOVATION

SO YOU COME UP WITH A NEW IDEA…

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AND YOU THINK IT’S WORTH A FORTUNE

BUT IT’S NOT

BECAUSE AN IDEA…

OR BUSINESS MODEL…

IS ON PAPER …ONLY A SET OF HYPOTHESES

GUESS

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IT HAS NO VALUE ZERO

EVERY IDEA IS ALREADY INVENTED… ONLY NOT BY YOU!

BECAUSE WE ALLHAVE THE SAME PERSONAL FRUSTRATIONS…

AND THE SAME INFORMATION

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SO WHAT DO WE DO

THINK ABOUTYOUR NEW BUSINESS MODELAS IF YOU ARE A START-UP

LET’S LOOK AT YOUR START-UP…

WHAT IS ACTUALLY A START-UP

“A START-UP IS NOT A SMALL VERSION OF A LARGE COMPANY.”

Steve Blank

A START-UP IS A TEMPORARY ORGANIZATION IN SEARCH FOR A PROFITABLE, SCALABLE AND REPEATABLE BUSINESS MODEL…

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A START-UP IS ABOUT SEARCHING

Steve Blank

A (LARGE) COMPANY IS ABOUT EXECUTION

Steve Blank

EXECUTION IS NOT SEARCH

EXECUTION FOLLOWSSEARCH

IT IS ALL ABOUT LEARNING!

PLEASE LOOK INTO THE FOLLOWING…

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YOU NEED TO CLARIFY YOUR ASSUMPTIONS

YOU NEED TO TEST YOUR ASSUMPTIONS

Source: Alex Osterwalder Instagram

GO OUT OF THE BUILDING

BEWARE! DON’T DO IT THE EASY WAY…

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DON’T HIRE AN AGENCY…

ORSET UP A TEST PANEL

DO IT YOURSELF!

THE MORE YOUR LEARN, THE SOONER YOU SUCCEED

WHY?YOU’LL INVENT SOMETHING PEOPLE DON’T NEED…

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YOU NEED TO ASK YOURSELF THE FOLLOWING

IS THE PROBLEM A REAL PROBLEM?

DO WE IDENTIFY A TARGET CUSTOMER SEGMENT?

CAN WE IDENTIFY THE NEED?

AND ARE THEY WILLING TO PAY

FOR THIS?

YOU HAVE TO DO THIS TOGETHER…

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AND GO OUT TO TALK TO CUSTOMERS…

WATCH FIRST THEN ASK

LOOK FOR NEEDSNOT SOLUTIONS

LET’S GO ON SAFARI!

PLUMBING BUSINESS

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8 PROTOTYPES FOR PUBLISHING A BOOK

AND MAKE PIVOTS…

WHATPIVOTS?

PIVOT YOUR IDEA OR VALUE PROPOSITION

IDEATE UNDERSTAND

VALIDATE

PROTOTYPE

POINT OF VIEWTESTING THE ASSUMPTIONS

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HOW DO WE DO THAT?

TEST CARD

Step 1 Hypothesis:We believe that…

Step 2 TestTo verify that, we will

Step 3 MetricAnd measure

Step 4 CriteriaWe were right if…

IN THE LAST FEW YEARS WE HAVE BEEN WORKING WITH MORE THAN 400 INTERNATIONAL CLIENTS FROM START-UPS TO CORPORATE ORGANIZATIONS ON BUSINESS MODELING. WE PUT ALL OUR EXPERIENCES TOGETHER AND CAME TO THE FOLLOWING 10 TIPS FOR BUSINESS MODEL INNOVATION.

ENJOY BUSINESS MODELING!

www.businessmodelsinc.com

TIP# 1BE A DESIGNER!

TIP# 2

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KILL YOUR DARLINGS

TIP# 3 APPLY FRESHWATCHING

LEARN FROM OTHER BUSINESS MODELS!

TIP# 4

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GENERATE OPTIONS

THE SINGLE RIGHT SOLUTION DOES NOT EXIST

THE PAST WAS ABOUT CHOOSING SOLUTIONS THE FUTURE IS ABOUT GENERATING OPTIONS

TIP# 5‘PROTOTYPING LET’S YOU FAIL EARLY TO SUCCEED SOONER’

IDEO.COM

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TIP# 6 DISRUPT BEFORE YOU ARE BEING DISRUPTED

TIP# 7“SHOW ME

THE MONEY!”

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TIP# 8 “DRAWING IS THE NEW WRITING”

THINK & WORK VISUALLY!

DESIGNING BETTER BUSINESSESDESIGNING BETTER BUSINESSES

TIP# 9 DON’T RELY ON YOUR

ASSUMPTIONS.

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GET OUT OF THE BUILDING AND TEST!

TIP#10JUST DO IT!

USE THE BUSINESS MODEL CANVAS ;-)

THE BUSINESS MODEL CANVAS

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BE A REBEL

DESIGNBETTERBUSINESS

DESIGNING BETTER BUSINESSESDESIGNING BETTER BUSINESSES

WORK LIKE A START-UPS

IDEATE UNDERSTAND

VALIDATE PROTOTYPE

POINT OF VIEW

WHAT ARE YOUR KEY SKILLS?

START WITH THE CUSTOMER

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ASK QUESTIONS CREATE OPTIONS

DESIGNING BETTER BUSINESSESDESIGNING BETTER BUSINESSESEXPERIMENT WORK VISUALLY

DESIGNING BETTER BUSINESSESDESIGNING BETTER BUSINESSESWITH STRATEGIC TOOLS

TO CREATE A COMMON LANGUAGE

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TO CREATE ‘CERTAINTY’ AROUND STRATEGY

GRAB THE OPPORTUNITIES OF UNCERTAINTY

CEO VERSUS CSO

I AM A F*** REBEL

DESIGNBETTERBUSINESS

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@BusModInc_NL@gijsmensing

DESIGNBETTERBUSINESS