business model innovation and jumpstarting the cleantech ... · © copyright 2012 innosight llc 13...

© Copyright 2012 Innosight LLC

Business Model Innovation and Jumpstarting the Cleantech Economy

January 19th, 2012 Copenhagen


1

1998 Rio Diamond

2000

Best Data

Cabo64

2002

Rio Riot

2005

iPod Shuffle

2007

iPod Touch

2003

iPod 3G

2006

iPod

Nano

The MP3 Player: evolution and revolution in music


2

Sony’s leadership in consumer electronics

50’s

90’s 80’s

70’s

60’s

“I think we fell asleep for a while … Maybe part of [the problem] was being affiliated with a music company.”

— Sony Executive CNN/Money, 2004


3

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

500

550

600

650

700

750

800

850

900

950

1,000

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Total CD units shipped

U.S. Millions

+25%

-18%

-26%

Source: RIAA Web Site; Wall Street Journal; Innosight Analysis

MP3s from the perspective of the music industry


4

Note: Market cap figures represent data for the end of the fiscal year

Source: Innosight analysis; Apple 10K 2004, 2005, 2008; Yahoo Finance

Sale

s (

US

$ b

illio

ns)

35 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

30 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

25 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

20 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

15 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

10 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

5 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

0 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

2001 2002 2003 2004 2005 2006 2007 2008

Other Apple Sales

iTune Sales

iPod Sales

iTunes

Music Store

Launched

iPod

Introduced

Impact of iPod/iTunes on Apple’s growth


5


6

http://images.google.com/imgres?imgurl=http://images.encarta.msn.com/xrefmedia/sharemed/targets/images/pho/t291/T291909A.jpg&imgrefurl=http://uk.encarta.msn.com/media_201619419/Edison's_Light_Bulb.html&usg=__kh0MaeMwNmtg6dPlive8iisuZWE=&h=476&w=330&sz=11&hl=en&start=3&um=1&tbnid=J0XeOMO2O40ARM:&tbnh=129&tbnw=89&prev=/images?q=edison+light+bulb&hl=en&rlz=1T4GGLL_enUS305US305&sa=N&um=1

http://en.wikipedia.org/wiki/File:PearlStreetStation.jpg

http://images.google.com/imgres?imgurl=http://images.encarta.msn.com/xrefmedia/sharemed/targets/images/pho/t291/T291909A.jpg&imgrefurl=http://uk.encarta.msn.com/media_201619419/Edison's_Light_Bulb.html&usg=__kh0MaeMwNmtg6dPlive8iisuZWE=&h=476&w=330&sz=11&hl=en&start=3&um=1&tbnid=J0XeOMO2O40ARM:&tbnh=129&tbnw=89&prev=/images?q=edison+light+bulb&hl=en&rlz=1T4GGLL_enUS305US305&sa=N&um=1


7

LESSON #1: Disruptive Technologies Simplify


8

LESSON #2: Disruption is a function of Business Models, not technology


9

Our Business Model Framework

Value Proposition

Profit Formula

Key Resources

Key Processes


10

LESSON #3: Technologies don’t replace technologies;

systems replace systems


11

LESSON #3: Technologies don’t replace technologies;

systems replace systems


12

Better Place’s system for electric transportation

SWITCHING STATION

Automated Track

New Battery


13

Thank You

www.innosight.com

Josh Suskewicz

[email protected]

[Please email me for a copy of our Harvard Business Review article on cleantech innovation]

mailto:[email protected]

business model innovation and jumpstarting the cleantech ... · © copyright 2012 innosight llc 13...

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