how to design new growth ventures
TRANSCRIPT
How to successfully launch new growth ventures.
Example | Nine Inch Nails
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©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
DO. OR DO NOT. THERE IS NO TRY.
—YODA Jedi Master
Thank you.@sniukas