Reinventing

Your
Business

Why

What

How

Why

is it
important
to you

Source: Christoph Zott, Raphael Amit and Lorenzo Massa: The Business Model: Recent Developments and Future Research Journal of Management 2011 37:

Get the business model wrong,

and there is almost no chance of
success...
Prof. David Teece
University of California, Berkley.

Business model innovation matters

and it is a top priority of CEOs.

Source: IBM Global CEO Study 2006

Source: IBM Global CEO Study 2006

Source: IBM Global CEO Study 2006

Innovation is front and center on the

corporate agenda, according to a
global survey. Executives are adding
more breakthrough innovations and
business model changes to their
portfolio to fuel the growth engine.
Business Week, November 16, 2009

Source: Businessweek / BCG Innovation Survey 2008

Stagnating or
declining
revenues

Source: Moore, GA 2004, Darwin and the Demon: Innovating Within Established Enterprises. Harvard Business Review, 82

Source: Moore, GA 2004, Darwin and the Demon: Innovating Within Established Enterprises. Harvard Business Review, 82

Increase profit

Find new growth areas

Create new markets

Commercializing a new
product or technology

Increased competition

Adapt to changing
environments

Adapt to new / emerging

markets

Seize emerging trends

Why

What

$ 1.600.000, Marc Sniukas - Doujak Corporate Development

Free
Download
Marc Sniukas - Doujak Corporate Development

Business
Model
Innovation

Theres no good
just being better,
...you got to be
different.
Charles Handy

A business model is simply the way of doing business that a

firm has chosen: its entire system for creating and providing
consistent value to customers and earning a profit from that
activity, as well as benefit for its broader stakeholders. It refers
to the core architecture or configuration of the firm, specifically
how it deploys all relevant resources (not just those within the
company boundaries), to create differentiated value for
customers at a profit

(Davenport, T. H., M. Leibold and S. Voelpel (2006).

Strategic Management in the Innovation Economy. Publicis Wiley.)

The business model is a companys answer to the question of

how to make money in its chosen business. It describes, as a
system, how the pieces of a business fit together.
(Magretta, J. (2002). "Why Business Models Matter." Harvard Business Review 80(5) May: 86-92.)

Source: Accenture

Source: The Boston Consulting Group

Source: Innosight

Source: businessmodelgeneration.com
Source: IDEO

WHO
is your customer?

HOW

WHAT

do you do this?

do you offer
your customers?

WHO

Markets
Customer Segments
Individual Needs

HOW

WHAT

Create Value

Products & Services

Deliver Value

Solutions

Capture Value

Experiences

Traditional Approach

Business Model Innovation

Who

Everybody

Everybody

What

Usually full treatment

Services covered by health
insurance
Special treatment for additional cost

How

Generalists
Located in shopping malls / inside
CVS pharmacies
Multiple locations
Retail model

A range of specialists
Special facilities
One central location
Solution shops

Focus on basic treatments

Quick
Convenient
Affordable

Who

Traditional Approach

Business Model Innovation

(Rich and middle class) people who

are reliable to pay back the credits or
have enough assets as security.

Low income clients

Poor people who would not get any
loans from traditional banks
(especially women)

What Classic loans, usually for larger sums

to buy assets.

How

Small loans to unbanked people

Strong risk management

About 97% make their payments.
The returns from the interests belong The borrowers are the owners of
to the bank/ shareholders
the bank.
Profit focus
The profit of the bank goes back to
the owners.
There is no collateral. No lawyers.
Social business focus

Traditional Approach

Business Model Innovation

Who

People who want a quick bite to eat People who want to sit down and
Get in, order, get served quickly, get
remain seated for a while
out quickly again
Create a 3rd place la Starbucks

What

Pre-made food prepared constantly

according to demand
Standard menus
Some variations allowed

How

1 counter
Standardized processes
Central locations with high
frequencies
The key is to serve a maximum
number of people during a given
time

2 counters
Separate seating area
Key is to increase share of wallet of
the customer and keep him for a
longer period of time in the
restaurant
Innovative use of existing assets,
new capabilities needed

Coffee and cake

Made to order (coffee)
Pre-produced (cakes)
No menus

Who

Traditional Approach

Business Model Innovation

Kids
Hard Core Gamers

Everybody from 4-99

The whole family
Casual Gamers

What High Tech High Performance

Console
High tech, high end processors for
speed and graphics, connect over the
internet, additional features (DVD,
internet,...)
high cost
high sales price (250-300.- )

How

n/a

Family Console
Low tech, lower power processors,
no additional features
Focus on fun rather than technical
performance
New movement technology
lower cost
lower sales price (190.- )

n/a

New Markets
New Customers

What

New Ways of
Doing Business

New Value
Propositions

How

Division
1

Division
2

Marc Sniukas - Doujak Corporate

Division
3

Division
4

The Future Space

May 6-7
April 15

March 10

Division Mgmt
Meetings
Introduction to
Business Model
Innovation
Introduction
Future Space
Process
Preparation
Handbook

Group Mgmt
Meeting

Workshop

Mgmt

Presentation of
Business
Models
Preparation of
GMM

Business
Model Description
by Division Mgmt
and their teams.

BU

Division
Mgmt

Research on
innovative Business
Models and Trends.

Final version
until April 29 to
SIO

Draft until March 29 to SIO

Coaching Sessions with SIO
Final Version until April 7 to SIO

Group
2010
Group
2011 +

March 10

Division Mgmt
Meetings
Introduction to
Business Model
Innovation
Introduction
Future Space
Process
Preparation
Handbook

BU
Mgmt

Division
Mgmt

Group
2010
Group
2011 +

March 10

Division Mgmt
Meetings
Introduction to
Business Model
Innovation
Introduction
Future Space
Process
Preparation
Handbook

BU
Mgmt

Division
Mgmt

Group
2010
Group
2011 +

March 10

BU
Mgmt

Division Mgmt
Meetings

Division

Introduction to
Business Model
Innovation
Introduction
Future Space
Process
Preparation
Handbook
Business
Model Description
by Division Mgmt
and their teams.

Mgmt

Group
2010
Group
2011 +
Draft until March 29 to SIO
Coaching Sessions with SIO
Final Version until April 7 to SIO

April 15

March 10

BU

Division Mgmt
Meetings
Introduction to
Business Model
Innovation
Introduction
Future Space
Process
Preparation
Handbook

Workshop
Presentation of
Business
Models
Preparation of
GMM

Business
Model Description
by Division Mgmt
and their teams.

Mgmt

Division
Mgmt

Group
2010
Group
2011 +

Draft until March 29 to SIO

Coaching Sessions with SIO
Final Version until April 7 to SIO

April 15

March 10

BU

Division Mgmt
Meetings
Introduction to
Business Model
Innovation
Introduction
Future Space
Process
Preparation
Handbook

Workshop

Mgmt

Presentation of
Business
Models
Preparation of
GMM

Business
Model Description
by Division Mgmt
and their teams.

Division
Mgmt

Research on
innovative Business
Models and Trends.

Final version
until April 29 to
SIO

Draft until March 29 to SIO

Coaching Sessions with SIO
Final Version until April 7 to SIO

Group
2010
Group
2011 +

May 6-7
April 15

March 10

Division Mgmt
Meetings
Introduction to
Business Model
Innovation
Introduction
Future Space
Process
Preparation
Handbook

Group Mgmt
Meeting

Workshop

Mgmt

Presentation of
Business
Models
Preparation of
GMM

Business
Model Description
by Division Mgmt
and their teams.

BU

Division
Mgmt

Research on
innovative Business
Models and Trends.

Final version
until April 29 to
SIO

Draft until March 29 to SIO

Coaching Sessions with SIO
Final Version until April 7 to SIO

Group
2010
Group
2011 +

The Future Space

3 steps

1. Description
2. Inspiration

3. Creation
Marc Sniukas - Doujak Corporate

Source: businessmodelgeneration.com

Marc Sniukas - Doujak Corporate

WHO

#1 Challenge industry assumptions

WHAT
#2 Offer complementary products and services
#3 Offer solutions and experiences
#4 Offer bundles
#5 Switch your appeal: functional versus
emotional
#6 Focus on the job to be done
#7 Selectively eliminate, reduce, raise and create
#8 Look at subsitutes
#9 Expand the use of your assets and capabilities
#10 Look at the customer experience

#11 Target non-customers

#12 Target less profitable customers
#13 Target the least satisfied customers
#14 Target the chain of buyers
#15 Segment according to commonalities
#16 Segment according to circumstances
#17 Desegment the customer based
HOW
#18 Reinvent the customer interface (channels)
#19 Reinvent your customer relationships
#20 Invent new revenue streams
#21 Price differently
#22 Reinvent you cost base
#23 Re-assess your key activities
#24 Collaborate with suppliers, partners, the
network and ecosystem
#25 Look at completely different industries

So what...?

Setting the Stage

A Discovery-Driven
Approach

Setting the stage

Discovery

Development

Conversion

Commercialization

Description

Project set up. Define and

describe project. Formal
GO.

Discovery of
opportunities
Gain insights

Development of business
model concepts
Develop business model
idea portfolio and
evaluate ideas

Conversion of concepts
into real-life
Testing concepts and
receiving market
feedback

Implementation and
launch
Launch new business
model

Input

BMI Idea

Project Brief

Insights from discovery

phase
First ideas

Business concepts
approved for test

Finished and tested

Business Model

Tasks

1. Define and build team

2. Define purpose, scope
and focus
3. Define goals and
metrics
4. Define process and
project plan

1.
2.
3.
4.

1. Develop BM portfolio
2. Evaluate BM portfolio

1. Strategy & Business

Planning
2. Customer tests
3. Technical feasibility
4. Implementation
Strategy
5. Organisational gap
analysis

1.
2.
3.
4.

Output

Description AS IS
Description of
opportunities
Description of first
ideas
Update project
planning

BM idea / option
portfolio
Evaluation of ideas
List of assumptions to
be tested
Business case for each
business model

Final Business Model

Evaluation
Strategy is developed
Organisational
structure is defined
Partners/Network are
defined
Tested Business Model
is profitable

Gates

Team established
Resources have been
committed

Idea Screening
Stop/Go Decision
Is the idea still
interesting?
Is it worth spending
the resources for the
next phase?

Go to testing
Stop/Go Decision
Justified to start
conversion/testing/ex
perimentation phase?
Budget decision

Launch decision
Budget approval
Business model is
profitable

Project Brief
Project plan
Team is established
Common
understanding about
the project has been
created

Marc Sniukas - Doujak

Corporate Development

Company Assessment
Market Assessment
Industry Assessment
Future Trends

Implementation
Start-Up / Incubation
Acceleration
Transition

Launch review (12

months)
Business model review
Business model
optimization
Integration into holding

Steering
Committee
Strategic
Innovation Office

Cross Division
Cross Teams
Division
Project
Cross
Division
Project
Teams
Cross
Division
Project
Teams
Cross Teams
Division
Project
Project Teams

Strategic Innovation
Core Team

Within Division
WithinTeams
Division
Project
Within
Division
Project
Teams
Within
Division
Project
Teams
WithinTeams
Division
Project
Project Teams

Nov

Dez

2010

Core Team

Core Team
Meeting
Kick Off

Q1

Q2

Q3

Q4

2012

2011

Core Team
Meeting

Board
Update
Project 1

Setting the
stage

Discovery

Project 2

Team Kick Off

Setting the
stage

Project 3

Core Team
Meeting

Core Team
Meeting

Core Team
Meeting

Core Team
Meeting

Division 1
Division 2

Division 3
Division 4

Division 1
Division 2

Division 3
Division 4

Development

Conversion

Conversion

Commercialization

Discovery

Development

Hire Project
Manager

Project
Manager

Setting the
stage

Discovery

Development

Conversion

Project 4

Hire Project
Manager

Project
Manager

Setting the
stage

Discovery

Development

Conversion

Project 5

Hire Project
Manager

Project
Manager

Setting the
stage

Discovery

Development

Conversion

Process Overview

Preparation 1

Workshop I

Preparation 2

Workshop II
Home Work

Workshop III

Workshop IV

Doujak Corporate Development

Strategic Experiments

Goal
Activate
participants

Setting the Stage

Tools

Phone Call
Information Package
Chapters 1-4

Participants are well prepared.

They have a good theoretical background.
The know the process and its objectives.
Doujak Corporate Development

Goal
Where are we now?
Where are we heading towards?

Define target.
Describe AS IS.

aspiration

Approach

current path

Target is defined. (Strategic Intent)

Need for action is clear / common understanding.
Current business, including markets, value proposition and
business model is described.
Doujak Corporate Development

Goal
Where are we now?
Where are we heading towards?

Define target.
Describe AS IS.

Tools

Value Curve

Strategic Experiments
Portfolio

Strategic Intent

Business Model

Customer Profile

Path of Life

Target is defined. (Strategic Intent)

Need for action is clear / common understanding.
Current business, including markets, value proposition and
business model is described.
Doujak Corporate Development

Goal
Activate (new)
participants.
Be inspired.

Inspiration.

Tools

Examples of Innovators

Phone call
Information Package

Toolbox

Keeping the energy high.

First ideas are developed (even before workshop)

Doujak Corporate Development

Goal
Discovering and
describing
opportunities.

Sensing Opportunities.

Tools

New business models

New value propositions

Toolbox

New customers

Opportunities have been identified.

First ideas on how to seize them have been developed.

Doujak Corporate Development

Goal
Organize inputs. Get
feedback. Further
develop first ideas.

If necessary

Tools

everything necessary
Customer talks
Desk Research

Data analysis

Information for workshop III is organized.

Ideas have further been described.

Doujak Corporate Development

Goal
Seizing Opportunities

Developing options.

Tools
WHO
Customers

HOW

WHAT

Business Models

Value Propositions

Strategic options have been developed.

Ideas for new customer segments, value propositions and business models
have been described.
Doujak Corporate Development

Goal
Evaluating options.
Making decisions.

Decision making

Tools
Area

Rating

Description

What we
know...

Strategy

How well does the idea

fit with our current
strategy?
What is the strategic
purpose of the idea?

Organization

What we
assume...

10

expanding or defending a
current business
building a new one that has
already been identified
laying the foundations for
potential new businesses

Resources &
Competencies
Which do we need?
Which do exist
already?
Which need to be
build?
Change need
Change readiness

Finance

Revenue potential

Financial
Implications

(Qty x Price)
Cost (fix + variable)
Unit Margin Target

Strategic Experiments
Portfolio

Strategic Innovation
Profile

Strategic Innovation
Scorecard

Strategic options have been evaluated.

Strategic experiments have been defined and can be implemented.
High engagement of senior management leads to high motivation for the
implementation.
Marc Sniukas - Doujak Corporate Development

How

Formal

Focused

Open

NewCo

Inside
Innovation
tensions

Evolutionary

Outside

Revolutionary

CoreCo

Closed

Holistic
Informal

WHO
is your customer?

HOW

WHAT

do you do this?

do you offer
your customers?

Who is your
customer?

What is your value

proposition?

How are you

creating and
delivering your
offer?

Source: Accenture

Source: The Boston Consulting Group

Source: Innosight

Source: businessmodelgeneration.com
Source: IDEO

existing

noncustomers (2nd and 3rd tier)

most profitable

less profitable

most satisfied

less satisfied (1st tier)

specific buyer

chain of buyers

focus on differences

focus on commonalities

focus on finer segmentation

focus on de-segmentation

focus on attributes
(of customers and products)

focus on circumstances
(needs and the job done)

focus on existing assets

start anew, or use existing assets in a

new way

single product or service

total solution, bundling

functional appeal

emotional appeal and experiences

focus on product

focus on function fulfilled and the

job-to-be-done

build new features

raise, reduced, create, eliminate

selectively

conventional customer interface

(co-creating) experiences
easy to do business with

conventional pricing

strategic pricing of the masses

cost-plus thinking

price-minus thinking; target costs

integrate activities

network (with customers, suppliers,

partners, alliances)

low fit of activities

high fit of activities

(either to cover cost or benchmarked against

competitors)

(internally and externally)

(benchmarked against substitutes and alternative

industries)

(internally and externally)

WHO

HOW

WHAT

 Questioning attitude
Rewards success and failure, punishes inaction
Tolerates mistakes
Slack is welcomed
Supports risk taking and change
Supports teamwork and collaboration

Variety (internal and external)

Collaboration
Educated in regard to the strategy and
skills needed

Set the context

Guide the process in a participative and fair way
Clearly communicate reasons, and expectations
Educate employees
Shield creative teams from distractions and pressure
Appreciate distinctiveness in people and their thinking
Welcome change
Ask itself what it does to promote or inhibit innovation
and how to get rid of these obstacles.

People
Culture

Leadership

Are you ready for

Business Model
Innovation?
Systems
Support the process of strategic
innovation
Enable collaboration
Enable the use and creation of
knowledge
Reward risk taking and action
Used to create relationships with
customers
Metrics & rewards support
innovation

Structure
Processes
Fast and unbureaucratic
Decentralized decision making
Support idea generation,
experimentation and execution

Fast and flat

Small units
Encourages collaboration
Autonomous teams at the
front line

Whos got a
question?

Want more?

www.doujak.eu
www.sniukas.com

Dynamic Capabilities (i.e. activities,

processes and routines) leading to Business
Model Innovation.

Managerial capabilities for creating,

developing and leading these capabilities.

The difficulty lies not

in the new ideas,...
but in escaping from
the old ones.
John Maynard Keynes

Thanks for your attention!

Get in touch!
Marc Sniukas

Doujak Corporate Development

Lainzer Strasse 80
A-1130 Vienna
Mobile: +43 699 122 333
[email protected]