how to design new growth ventures

How to successfully launch new growth ventures.

Example | Nine Inch Nails

$ 1.600.000,-

1st week

FreeDownload

©MarcSniukas-DoujakCorporateDevelopment

© Marc Sniukas - Doujak Corporate Development

?HOW

?How do established companies

design innovative business models?

Example | ProSiebenSat.1

2012 2018

2.4 billion

3.4 billion

+42%

Example | ProSiebenSat.1

+1 billion

Source: http://annual-report2014.prosiebensat1.com/index.html

Example | ProSiebenSat.1

Source: http://www.prosiebensat1.com/en/page/unternehmenskennzahlen

Example | ProSiebenSat.1

2012 2018

2.4 billion

4.25 billion

+75%

Example | ProSiebenSat.1

+1.85 billion

Crafting new growth ventures

AnalysePlanImplement

TraditionalApproach

1 2 3

PLAN. (v.t.) TO BOTHER ABOUT THE BEST METHOD OF ACCOMPLISHING AN ACCIDENTAL RESULT.

—AMBROSE PIERCE Author, The Devil’s Dictionary

AnalysePlanImplement

TraditionalApproach

DesignApproach

ActLearnDesign

1 2 3

Myth of Experimentation

Cutting Edge Process

Cutting Edge Process

Inception Evolution Diffusion

Inception.

Cutting Edge Process

[ An opportunity and an idea ]

[ How to discover an opportunity ]

Where to Play

THE FIRST PRINCIPLE OF FINDING NEW GROWTH IS THAT YOU’RE ALWAYS BETTER OFF GOING AFTER CUSTOMERS WHO ARE UNDERSERVED OR NEGLECTED. —DAVID BELL Professor

Example | ProSiebenSat.1

Step 1: Identify Noncustomers

Start-ups and Small and Medium Sized Businesses

What did Pro7 do?

MOST COMPANIES, UNFORTUNATELY, DON’T KNOW WHY CUSTOMERS DO OR DON’T DO BUSINESS WITH THEM.

Where to Play

Understand Customer Needs and Experience

Where to Play

Understand Customer Needs and Experience

Where to Play

Barriers to Consumption

Where to Play

Hurdles to Satisfaction

Step 2: Identify Needs, Experience, Barriers and HurdlesThey would like to have access to TV media, but: • cannot afford it, • don’t want to spend money on an

uncertain outcome, • don’t have the experience with planning

and executing TV media campaigns.

Example | ProSiebenSat.1

What did Pro7 do?

[ How to seize opportunities ]

How to Play

OFFERING BUSINESS MODEL REVENUE MODEL

How to Play

Designing the New Venture

Example | ProSiebenSat.1

Step 3: Design the new venture.

OFFERING BUSINESS MODEL REVENUE MODEL

Access to mediaMedia strategyMedia planningProduction

Target selectionSpot productionExecutionSpecialized expertiseShared services

Fixed Fee+ Revenue Share+ Equity

What did Pro7 do?

steps for validating your idea.3

Cutting Edge Process

Myth of NewCo

CoreCo

NewCo

What did Pro7 do?

Example | ProSiebenSat.1

Step 4: Validate your strategy.

• Issued a press release • Got 12s of business plans of interested

companies • Selected a few to get started

Does this make sense, and can we execute it?1

2 Does the it resonate with potential customers and partners?

3 Does it really work in practice?

Evolution.[ Perfecting your venture design ]

Cutting Edge Process

Iterative DesignAct

Learn

DesignInceptionEvolutionDiffusion

Cutting Edge Process

How Your Design Matures.Cutting Edge Process

Act

Act

Act

Act

Learn

Learn

LearnDesign

Design

Design

Cycle 1 Cycle 2 Cycle …

Maturity Level of your New Venture

Draft first idea

Fully developed

Cutting Edge Process

Myth of Trial & Error

Example | ProSiebenSat.1

Media for Revenue ShareNo specific company focus

What did Pro7 do?

Fixed FeeMedia for Revenue ShareFocus on online businesses

Media for EquityFixed FeeMedia for Revenue ShareFocus on online businesses

Portfolio of Strategic InvestmentsMedia for EquityFixed FeeMedia for Revenue ShareFocus on online businesses

Diffusion.

Cutting Edge Process

[ Scaling up your business ]

[ How to create value ]

How to Win

Fulfilling customers’ needs and making their

life easier

Offering your partners

advantages

Strategic Operational

Financial

How to Win

FIRM VALUE

CUSTOMER VALUE

ECOSYSTEMVALUE

Example | ProSiebenSat.1

Step 5: Create value.

• New revenue streams• Becoming independent

from existing customers• Building a portfolio of

strategic investments• Use insights gained for

traditional business

• Access to media• Risk-free• Low upfront

cash out• No need to deal

with media

Other investorsprofit from increasedcompany value

What did Pro7 do?

Cutting Edge Process

Myth of NewCo

CoreCo

NewCo

Example | ProSiebenSat.1

THINK BIG.START SMALL.SCALE INTELLIGENTLY.

—DERYCK J VAN RENSBURG President Coca-Cola Global Ventures

Designing the new venture

Launching the new ventureInception

Evolution

Diffusion

Example | Nine Inch Nails

www.theartofopportunity.net

DO. OR DO NOT. THERE IS NO TRY.

—YODA Jedi Master

Thank you.@sniukas