1. The core question of any business: Why should your business exist?so-The philo -esphical qull tion for a es buisness

2. Do you know this man?Hans Rausing = Inventor of theTetra Pack Systems Dr. Patrick Sthler | 2 3. He could have sold hispackaging machines, but 4. But he sold packaged services Tetra Pack is not a product innovation but an implementatio n of an innovative business model! 5. Which innovation expanded the global addressable market for mobile communication the most?**After the invention of mobile telephony itself 6. Whichinnovation madethis possible?!Dr. Patrick Sthler | 7. A smal l changopened e in bill new ma ing Africa, rkets in Asia, L Americatina, Youths, etc..!Prepaid 8. To develop a business model, is To Do the right things And Not to do things right 9. What is a businessmodel? 10. Are youaware ofyour DNA?!The business model is theDNA of your business 11. The business model givesmeaning to your employeesand customers 12. Technology or a new produt does not create value.It is the business model product/technology X valuecreates enables business modeldenesbusiness strategy 13. !Beyond product & technology innovationYour business model isdecisive for value creationnot a new technology 14. 4 key questions for a successful business: What excitesHow do weHow do we Who is on our our create value earn money? team? customers for ourWhat values customers? do wepursue? Value Proposition Value Architecture Revenue Model Team & ValuesThe jobofthe entrepre-neur 15. What industry are we in? Who are our competitors? 16. In which industry are we in? 17. That was the job the customer wanted to do.Dr. Patrick Sthler | 18. Value PropositionCustomersWho are our customers?What job do we solve for ourcustomers?Customer BenetWhat benet do we create for ourcustomers?What benet do we create for ourpartners? 19. Value ArchitectureO er Distribution & CommunicationWhat is our o er?Channels How do we reach our customers? How do we communicate with our customers?Value ChainWhat are our value creating steps?What is our value chain?Core CapabilitiesPartnerWhat are the core capabilities Which partners do we need?we need? 20. Revenue Model Cost StructureRevenue Sources Cost structure is dened by the With what do we earn money? value architecture. 21. Team & ValuesTeam ValuesWho is on our team?What values do we pursue?What competencies do we have How do we interact with eachon the team? other and the customers? 22. Questions for successful Business Model InnovationValue ArchitectureValue PropositionO er Distribution & Communication CustomersWhat is our o er?Channels Who are our customers? How do we reach our customers? What job do we solve for our How do we communicate with customers? our customers?Value Chain Customer BenetWhat are our value creating steps?What benet do we create for ourWhat is our value chain?customers?What benet do we create for ourpartners?Core CapabilitiesPartnerWhat are the core capabilities Which partners do we need?we need?Revenue ModelCost StructureRevenue SourcesCost structure is dened by the With what do we earn money?value architecture.Team & ValuesTeamValuesWho is on our team? What values do we pursue?What competencies do we haveHow do we interact with each otheron the team?and the customers? 23. Questions for successful Business Model InnovationValue ArchitectureValue PropositionO er Distribution & Communication CustomersWhat is our o er?Channels Who are our customers? How do we reach our customers? What job do we solve for our How do we communicate with customers? our customers?Value Chain Customer BenetWhat are our value creating steps?What benet do we create for ourWhat is our value chain?customers?What benet do we create for ourpartners?Core CapabilitiesPartnerWhat are the core capabilities Which partners do we need?we need?Revenue ModelCost StructureRevenue SourcesCost structure is dened by the With what do we earn money?value architecture.Team & ValuesTeamValuesWho is on our team? What values do we pursue?What competencies do we haveHow do we interact with each otheron the team?and the customers? 24. Creating Business model innovations is a creative andanalytical process at the same time. There is a reasonwhy god gave us two brain hemispheres 25. 1Customer Insight Observe your customersWhat job is not yet orbadly solved? How does the CustomerExperience Cycle looklike? On what customer insightsis your idea based? validate customer insight 26. 2Understand understand the currentsolutions and theirstrength & weakness understand how thepotential customer thinksand decides understand the market &market mechanism 27. 3IdeateDevelop as many ideas aspossible in the area of customers/ value proposition value architecture revenue model 28. 4Design decide for three or fouroptions design the businessmodels for the options check theGeschftsmodell:Wertschpfungsarchitektur Value Propositioninterdependencies in theAngebotVertrieb & Kommunikation Kundenbusiness models ProduktionNutzen work on the uniquenessKernfhigkeitenPartner(positioning) optimize the building ErtragsmodellKostenstrukturErtragsquellenblocksTeam & WerteTeamWerte Created with the friendly support of Wolfsburg AG | Designed by Gottschalk+Ash Intl 29. 5Decide & Prototype decide for the best modelto go for build prototype test prototype withcustomers write business case decide again or work ondierent option 30. 6Build & Learn execute business model learn continuously fromcustomer feedback andcontrol KPIs adjust and renecontinuously the businessmodel 31. 1 2 3Customer InsightUnderstandIdeate Observe your customers understand the currentDevelop as many ideas asWhat job is not yet orsolutions and their possible in the area ofbadly solved? strength & weakness customers/ value How does the Customer understand how the propositionExperience Cycle look potential customer value architecturelike? thinks and decides revenue model On what customer insights understand the market &is your idea based? market mechanism validate customer insight4 5 6DesignDecide & PrototypeBuild & Learn decide for three or four decide for the best execute business modeloptions model to go for learn continuously from design the business build prototype customer feedback andmodels for the options test prototype with control KPIs check the customers adjust and reneinterdependencies in the write business case continuously thebusiness models decide again or work on business model work on the uniquenessdierent option(positioning) optimize the buildingblocks 32. What is a good business model?trend differentifocus ation build on strengths 33. Its about nding the righttrend to surf! 34. It is about differentiation 35. Business model innovation is about beingDIFFERENT! 36. NO, REALLY DIFFERENT! 37. Dr. Patrick Sthler | 42 38. DOINGnot learning to do,is the essence of entrepreneurship Guy Kawasaki, The Art of the Start 2004, p. xi 39. Scary to be this nail. Where will the hammer hit next time? 40. More Information on http://blog.business-model-innovation.comDr. oec. Patrick Sthleruidminds GmbHSeefeldstrasse 5aCH-8008 ZrichPatrick.Staehler@uidminds.chwww.uidminds.chblog.business-model-innovation.com