concept development & business model design - manu vollens

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Presentatie Manu Vollens (Board Of Innovation) rond concept development, assumption thinking en business model design in het kader van #openvrtnewslab

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September 6, 2014 (Brussels)

The Future of News VRT NewsLab

?

What’s innovative about this product?

Introducing consumables

Taking away consumables

hello,

@manuvollens

corporate disruptor &

strategy designer

+32484960793 manu@boardofinnovation.com

Let’s warm up with an exercises

A short QUIZ on creativity & innovation

A short QUIZ on creativity & innovation

“Creativity is actually the same

as innovation”

A short QUIZ on creativity & innovation

creativity production of ideas that are

novel & useful !

innovation not only about generating, but also

realizing them

A short QUIZ on creativity & innovation

“Implicitly, people don’t really like creative ideas”

A short QUIZ on creativity & innovation

!

Highly creative ideas carry often a lot of uncertainty to them

When people feel uncertain, they

prefer ideas that are practical instead of creative, to reduce uncertainty.

A short QUIZ on creativity & innovation

“Chaotic people are more creative”

A short QUIZ on creativity & innovation

It is rather openness to new experiences that determines creativity.

Other personality characteristics are

weak predictors of creativity

A short QUIZ on creativity & innovation

“When you believe you are creative, you will indeed come up with more creative ideas”

A short QUIZ on creativity & innovation

Creative self-efficacy is the belief that one has the ability to produce creative

outcomes. Believing in your own abilities makes you perform better.

Concept Development

Define your concept!

Example: paperlater.com

Example: paperlater.com

Paper Later

- fixed price/printed item - sell add-ons (coffee, breakfast, …)

People reading news online

- No time during the week for reading full articles

- During the weekend still like to relax with “real” paper

A custom printed newspaper with your online bookmarkerd articles of that same week, delivered to your door!

x

Example: paperlater.com

Paper Later

- fixed price/printed item - sell add-ons (coffee, breakfast, …)

People reading news online

- No time during the week for reading full articles

- During the weekend still like to relax with “real” paper

A custom printed newspaper with your online bookmarkerd articles of that same week, delivered to your door!

x x

Formula for a good “baseline”

Hot fresh pizza delivered to your door in 30 minutes or it’s free! (Dominos Pizza)

Formula for a good UVP

Instant Clarity Headline =

End result customer wants (the promise)

What makes you different? (meaningful specific)

The buy-in (guarantee)

Hot fresh pizza delivered to your door in 30 minutes or it’s free! (Dominos Pizza)

How innovative are you?

subtitleAccept the fact that you’ll have

explore to new territory.

How innovative are you?

Result?

“in china when you're one in a million, there are 1300 people just like you” - Bill Gates

Result?

“in china when you're one in a million, there are 1300 people just like you” - Bill Gates

The more data services collect on us: The more it becomes clear that you are not

that special or unique after all…

How innovative are you?

Hier zie je de artikelen waarvan wij 100% zekerheid hebben dat ze je zullen interesseren

How innovative are you?

In order to be more creative… you’ll need to hack your habits.

“We are what we repeatedly do. Excellence, then, is not an act, but a habit.

Artistotle

“What goes unbeknownst to some tennis fans and viewers are the habits and strange routines that even the most famous of players do during a match. These mainly odd routines are highly mental components to athletes' performance in a match.

What are your personal habits?

40% of all your daily actions

Habits: the mouse experiment (Duhigg)

How to design & hack your habits

What makes you different?

Innovation Battlefield

Why this tool?

Goal: to challenge the “awesomeness” of our concept

Identify those features that create the wow.

such data

much virtual

so no limit

very experience

wowmany viral

no boring

Structured process: The Innovation Battlefied

Pleasure level

“unexpected awesomeness” “harder,better, faster, stronger.”

“Expected essentials”

How hard will a feature be missed if left out?

How much pleasure doesthis feature bring?

“I don’t care...”

“It hurts, take it away.”

H

LL H

Indispensability Level

1 brainstorm template per team

We will list all the different features/characteristics of your concept

STEP 1

f. xf. y

f. z

f. a

f. b

f. c

We will list all the different features/characteristics of your concept

STEP 1

Rank the features from the perspective of your key customer.

STEP 2

f. x

f. y

f. z

f. a

f. b

f. c

Structured process: The Innovation Battlefied

Pleasure level

“unexpected awesomeness” “harder,better, faster, stronger.”

“Expected essentials”

How hard will a feature be missed if left out?

How much pleasure doesthis feature bring?

“I don’t care...”

“It hurts, take it away.”

H

LL H

Indispensability Level

1 brainstorm template per team

f. x f. y

f. z

f. a

f. bf. c

How to rank the features of your concept?

!How much happiness does this feature bring to our customer?

Would this feature be missed by our customer if left out?

f. x

Let’s look at “service” we all know:

What are the features or characteristics of this concept?

f. x

Handle with care

Able to track

Within 3 days

Pleasure level

“unexpected awesomeness” “harder,better, faster, stronger.”

“Expected essentials”

How hard will a feature be missed if left out?

How much pleasure doesthis feature bring?

“I don’t care...”

“It hurts, take it away.”

H

LL H

Indispensability Level

1 brainstorm template per team

f. x f. y

f. z

f. a

f. bf. c

Pleasure level

“unexpected awesomeness” “harder,better, faster, stronger.”

“Expected essentials”

How hard will a feature be missed if left out?

How much pleasure doesthis feature bring?

“I don’t care...”

“It hurts, take it away.”

H

LL H

Indispensability Level

!How much happiness

does this feature

bring to our customer?

Would this feature be missed

by our customer if left out?

Handle with care

Able to track

Within 3 days

What are the features or characteristics of this concept?

f. x

SMS alert

Free recall

Real-time tracking

Pleasure level

“unexpected awesomeness” “harder,better, faster, stronger.”

“Expected essentials”

How hard will a feature be missed if left out?

How much pleasure doesthis feature bring?

“I don’t care...”

“It hurts, take it away.”

H

LL H

Indispensability Level

!How much happiness

does this feature

bring to our customer?

Would this feature be missed

by our customer if left out?

Handle with care

Able to track

Within 3 days

SMS alert

Free recall

Real-time tracking

What are the features or characteristics of this concept?

f. x

Cardboard box

FedEx logo

Vans

Pleasure level

“unexpected awesomeness” “harder,better, faster, stronger.”

“Expected essentials”

How hard will a feature be missed if left out?

How much pleasure doesthis feature bring?

“I don’t care...”

“It hurts, take it away.”

H

LL H

Indispensability Level

!How much happiness

does this feature

bring to our customer?

Would this feature be missed

by our customer if left out?

Handle with care

Able to track

Within 3 days

SMS alert

Free recall

Real-time tracking

Cardboard

Vans

FedEx Logo

What are the features or characteristics of this concept?

f. x

€15/parcel

Be at home

Sign-off

Pleasure level

“unexpected awesomeness” “harder,better, faster, stronger.”

“Expected essentials”

How hard will a feature be missed if left out?

How much pleasure doesthis feature bring?

“I don’t care...”

“It hurts, take it away.”

H

LL H

Indispensability Level

!How much happiness

does this feature

bring to our customer?

Would this feature be missed

by our customer if left out?

Handle with care

Able to track

Within 3 days

SMS alert

Free recall

Real-time tracking

Cardboard

Vans

FedEx Logo

Be home€15/p

Sign-off

Identify those features that create the wow.

Pleasure level

“unexpected awesomeness” “harder,better, faster, stronger.”

“Expected essentials”

How hard will a feature be missed if left out?

How much pleasure doesthis feature bring?

“I don’t care...”

“It hurts, take it away.”

H

LL H

Indispensability Level

!How much happiness

does this feature

bring to our customer?

Would this feature be missed

by our customer if left out?

Handle with care

Able to track

Within 3 days

SMS alert

Free recall

Real-time tracking

Cardboard

Vans

FedEx Logo

Be home€15/p

Sign-off

<15 min

Pleasure level

“unexpected awesomeness” “harder,better, faster, stronger.”

“Expected essentials”

How hard will a feature be missed if left out?

How much pleasure doesthis feature bring?

“I don’t care...”

“It hurts, take it away.”

H

LL H

Indispensability Level

!How much happiness

does this feature

bring to our customer?

Would this feature be missed

by our customer if left out?

Handle with care

Able to track

Within 3 days

SMS alert

Free recall

Real-time tracking

Cardboard

Vans

FedEx Logo

Be home€15/p

Sign-off

<15 min

New features?

Pleasure level

“unexpected awesomeness” “harder,better, faster, stronger.”

“Expected essentials”

How hard will a feature be missed if left out?

How much pleasure doesthis feature bring?

“I don’t care...”

“It hurts, take it away.”

H

LL H

Indispensability Level

!How much happiness

does this feature

bring to our customer?

Would this feature be missed

by our customer if left out?

Handle with care

Able to track

Within 3 days

SMS alert

Free recall

Real-time tracking

Cardboard

Vans

FedEx Logo

Be home€15/p

Sign-off

Drone

A concept we created 2 years ago:

A concept we created 2 years ago:

Pleasure level

“unexpected awesomeness” “harder,better, faster, stronger.”

“Expected essentials”

How hard will a feature be missed if left out?

How much pleasure doesthis feature bring?

“I don’t care...”

“It hurts, take it away.”

H

LL H

Indispensability Level

!How much happiness

does this feature

bring to our customer?

Would this feature be missed

by our customer if left out?

Handle with care

Able to track

Within 3 days

SMS alert

Free recall

Real-time tracking

Cardboard

Vans

FedEx Logo

Be home€15/p

Sign-off

In car

Frictionless

We will list all the different features/characteristics of your concept

STEP 1

f. xf. y

f. z

f. a

f. b

f. c

now it’s up to you!

We will list all the different features/characteristics of your concept

STEP 1

Rank the features from the perspective of your key customer.

STEP 2

f. x

f. y

f. z

f. a

f. b

f. c

now it’s up to you!

Assumption Thinking

Make Teams of 2 & sit back to back!

How well did you communicate your dog?

what were your assumptions?

What was the hypothesis for the iPod?

Making Hypothesis, testing Assumptions

Making Hypothesis, testing Assumptions

What kind of assumptions has your concept?

BREAK

Business Model Design

Peter, Angry Belgian

AirBnB

AirBnB

Rico, Angry German

Uber

15 years ago - 1 dominant business model

Today, battle of concepts!

Itunes, pay per song

Spotify, subscription on music

What’s a business model?

In a nutshell

An organization’s logic of creating, delivering and capturing value.

In a nutshell

An organization’s logic of creating, delivering and capturing value.

In a nutshell

An organization’s logic of creating, delivering and capturing value.

In a nutshell

An organization’s logic of creating, delivering and capturing value.

In a nutshell

An organization’s logic of creating, delivering and capturing value.

10 types of innovation

Configuration Offering ExperienceBusiness model Network Company

Structure Process Product performance

Product system Service Channel Brand Customer

Engagement

Volume of innovation efforts last 10 years

source: Doblin Group, Inno 15

10 types of innovation

Configuration Offering ExperienceBusiness model Network Company

Structure Process Product performance

Product system Service Channel Brand Customer

Engagement

Cumulative Value Creation last 10 years

source: Doblin Group, Inno 15

less than 2% of projects, produce more than 90% of value

Top Innovators

source: Doblin Group, Inno 15

Many components.

Every Business Model = Many different ingredients.

Understand the ingredients!

Business Model Blocks

- Business Model Blocks -

- Business Model Blocks -

Product

5

Money

5

Less Money

Experience

Right

Data

1Reputation

Credits

Service

Exposure

micro-payments

Product

5

Money

5

Less Money

Experience

Right

Data

1Reputation

Credits

Service

Exposure

Newspaper printed with ink that repels mosquitoes

Product

5

Money

5

Less Money

Experience

Right

Data

1Reputation

Credits

Service

Exposure

Echobox

Product

5

Money

5

Less Money

Experience

Right

Data

1Reputation

Credits

Service

Exposure

Runkeeper

Product

5

Money

5

Less Money

Experience

Right

Data

1Reputation

Credits

Service

Exposure

ZombiesRun: Running as a game

Product

5

Money

5

Less Money

Experience

Right

Data

1Reputation

Credits

Service

Exposure

latest news stories printed on…

Product

5

Money

5

Less Money

Experience

Right

Data

1Reputation

Credits

Service

Exposure

Right to use content, pictures, …

Product

5

Money

5

Less Money

Experience

Right

Data

1Reputation

Credits

Service

Exposure

Franchising Models

Product

5

Money

5

Less Money

Experience

Right

Data

1Reputation

Credits

Service

Exposure

Reshare - Foreign press translated into 11 languages

Product

5

Money

5

Less Money

Experience

Right

Data

1Reputation

Credits

Service

Exposure

Klout: Online influence as reputation

Product

5

Money

5

Less Money

Experience

Right

Data

1Reputation

Credits

Service

Exposure

justreachout.io

Product

5

Money

5

Less Money

Experience

Right

Data

1Reputation

Credits

Service

Exposure

Bitcoins

Product

5

Money

5

Less Money

Experience

Right

Data

1Reputation

Credits

Service

Exposure

Moskow: Pay with Exercises

Product

5

Money

5

Less Money

Experience

Right

Data

1Reputation

Credits

Service

Exposure

Pay with a Tweet

You are in the center!

Your own startup

Business Model transactions

Focus to make this flow as smooth as possible. #frictionless

Can be more complex.

Many different players, a lot of monetary transactions.

Let’s spice it up!

of ideas come from analogy thinking

80%

G. Jucevi

The of News

Watchup

Watchup

Learn from others! startups, big organisations, …

Some of the industries I’ll highlight:

News/ Publishing

Dating

Gaming

What to pick?

Free!for the user.

1.

Paid!the user = client.

2.

Free?

Free = Free

Free?

Free

(Hidden) other agenda: - Aim for an early exit. - Acqui-hire - Prestige - …

Rule of thumb: There is no free lunch.

What to pick?

Free!for the user.

1.

- Pay-what-you-want -

Free?

Customer can pick his own price.

Pay-what-you-want. (including free)

Case: Humble Bundle

Other industries

#win #fail

Emotional connection

Social/group pressure

selling to businesses

social/group pressure

What to pick?

Free!for the user.

1.

- Pay-what-you-want -

- Tip jar/ donation -

Free?

Main difference: People often get the product for free, but

are free to do an extra transaction.

Tip jar - Donation.

What to pick?

Free!for the user.

1.

- Pay-what-you-want -

- Tip jar/ donation -

- + Premium -

Free, for some.

Different segments of users.

What to pick?

Free!for the user.

1.

- Pay-what-you-want -

- Tip jar/ donation -

- + Premium -

- bait&hook (add-ons) -

Pay for recurring upgrades or consumables

Offer part of your service for free (or nearly free)

Open Source model with paid consulting support

What to pick?

Free!for the user.

1.

Paid!the user = client.

2.

Reason why people upgrade!

Free, but pay for extra features

What to pick?

Paid!the user = client.

2.

- Vanity - reputation -

Some people only want “the best”

Ultimate luxury. 12K€ Smartphone (Vertu)

Vanity, reputation…

Vanity is so powerful!

Looks & Reputuation in games.

To fit in Exclusivity Show Commitment ...

Important learning: You need other people to show off!

Pay to get noticed. (above the crowd…)

Would you pay to get seen by your friends on Facebook?

Facebook 2012

What to pick?

Paid!the user = client.

2.

- Vanity - reputation -

- Loss-aversion -

Another tactic: Lure people in with free + lock-in.

Just give it a try!

Pay-as-you-go model.

Switching cost?

Pay-as-you-go model.

Switching cost?

Similar, pay-per-use.

Blendle - itunes for journalism

What to pick?

Paid!the user = client.

2.

- Vanity - reputation -

- Loss-aversion -

- Privacy/ Anonymity -

Privacy features are very powerfull!

Hide your profile. Incognity mode.

What to pick?

Paid!the user = client.

2.

- Vanity - reputation -

- Loss-aversion -

- Privacy/ Anonymity -

- Mystery/ Surprises -

Mystery crates (& surprise upgrades)

similar to Lottery system = very lucrative!

Real life mystery crate (on subscription)

Trust & credibility created by 1 person (not a company)

Blind dates, anyone?

Crazy Blind Date by OKcupid. (up to $3/date)

What to pick?

Paid!the user = client.

2.

- Vanity - reputation -

- Loss-aversion -

- Privacy/ Anonymity -

- Mystery/ Surprises -

- Helping peers/ gifts -

This one is on me…

Yes, Awesome. I’m a PLUS member.

Virtual gifts.

Line messaging app is one to keep an eye on!

Crucial question!

Learn from gaming.

Question: Do you allow people to spend (all their) money?

I won’t choose!

Why does this person get a +120M€ contract?

What to pick?

Free!for the user.

1.

Paid! the user = client.

2.

Third party pays the bills.

3.

What to pick?

Third party pays the bills.

3.

- Advertising -

Every ad-based model.

The user becomes the product.

Ad-business is straight forward. but hard.

Offer content.

Control eyeballs

Steer attention to ads

Profit.

What to pick?

Third party pays the bills.

3.

- Advertising -

- Affiliate/ Referral -

Drive sales for another.

Affiliate & Referral models.

Integrated referral links?

Pinterest is the perfect match!

What to pick?

Third party pays the bills.

3.

- Advertising -

- Affiliate/ Referral -

- Data Reseller -

Resell data.

One company is more transparant than the other.

What’s the value of your own personal data?

Resell your own data via a platform: example Citizenme.

Example: Patients like me.

What to pick?

Free!for the user.

1.

Paid! the user = client.

2.

Third party pays the bills.

3.

Broker/Matchmaking

4.

Can be a mix of all three.

Broker/Matchmaking

4.

- One-side pays -

One side pays.

Many dating platforms are based on this model.

Get paid to date?

Very controversial of course.

Get paid to date.

Other platforms experiment with other rewards than money.

Broker/Matchmaking

4.

- One-side pays -

- Both sides pay -

Matchmaking between 2 normal users.

only 1 of the 2 parties pays.

Auction platforms.

AirBnb & other broker platforms

Broker/Matchmaking

4.

- One-side pays -

- Both sides pay -

- Crowdfunding -

Crowdfunding (many variations)

For pre-sales? Investment?

Donation?

Crowdfunding

The product itself is often not the primary driver: “Be part of something bigger, a revolution in …”

Get a return of an investment in someone else.

Define your business model!

Design your business model

Define your Stakeholders

Make Transactions

Manu Vollens - @manuvollens

+32 484 960 793 manu@boardofinnovation.com

Questions? Just Ask!

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