Nick De Mey – Founder, Board of Innovation

1. Business model
assumptions

2. 1. Understand assumptions
2. improve your Business Model
Goal: create a stronger
future ready business model.

3. Nick De Mey - @nickdemey
co-founder Board of Innovation

4. Example: What is this?
Order by
phone
Visit client
at home
Food
Work with
students
Shifts
Work at
night
Big
discounts
Small
product
portfolio
Products
can be
personalized
Retailshops

5. What else could this be?
Order by
phone
Visit client
at home
Food
Work with
students
Shifts
Work at
night
Big
discounts
Small
product
portfolio
Products
can be
personalized
Retailshops

6. Many components.
Every Business Model =
Many different ingredients.

7. A lot more than revenue
streams!

8. Do A-brands pay
a retailer to be in its stores?
- or -
does a retailer pay A-brands
to have them in its portfolio?
1.

9. What is the most expensive?
1 liter of homeopathic water
- or -
1 liter of water served at
Lebua, State Tower Bangkok?
2.

10. Who needs the biggest team?
The world’s most popular
photo app?
- or -
The #1 co-creation platform
for new products?
3.

11. What has the biggest
revenue potential?
Selling unprepared wood in
large quantities for fuel
consumption
- or -
selling a few wooden logs as
design objects at a price of
€200 per piece?
4.

12. What is most convenient?
Building a factory at a remote
location?
- or -
Shipping all windmills over
there one by one?
5.

13. You could easily tell which one
of these rings is being sold for
double the price of the other.
($99 vs $49)
Virtual Valentines Ring in the
online game Team Fortress 2
- or -
Gold Cat Ears ring sold on
Etsy.com
6.

14. You know which sales concept
offers the highest
commission ... and most fun?
Tupperware Home Parties
- or -
ManCave Worldwide
7.

15. List your assumptions
Know where to improve your business model.

16. Start with an example:

17. The Business Model behind Quirky.com
a co-creation platform + e-shop
Inventors pay $99 to submit their idea to this co-creation platform. After
selection a community of designers will co-design and improve this product.
pitch your business model visually via this free template
IncIncHQHQ
Quirky.com
Product idea
initiator
Product idea
Exposure
Product
Designer
IncIncIncInc
Design company
Community
Co-design product
5
$99
by BoardofInnovation.com

18. The Business Model behind Quirky.com
a co-creation platform + e-shop
Suppliers will set a minimum amount on the pre-sales. If enough people buy
this product, it will be go into production.
pitch your business model visually via this free template
IncIncHQHQ
Quirky.com
Product idea
initiator
Product idea
Exposure
Product
Designer
IncIncIncInc
Design company
Community
Co-design product
Product Buyer
New product
5
Money
5
$99
Supplier
production only starts
when enough pre-sales
by BoardofInnovation.com

19. The Business Model behind Quirky.com
a co-creation platform + e-shop
Revenues from the e-shop are shared with the community. 30% of profit goes
to the initiator. 30% will be proportionally divided amongst the influencers.
pitch your business model visually via this free template
IncIncHQHQ
Quirky.com
Product idea
initiator
Product idea
Exposure
Product
Designer
IncIncIncInc
Design company
Community
Co-design product
Product Buyer
New product
5
Money
5
$99
5
30% of profit
5
part of 30% profit
based on contribution
5
part of 30% profit
based on contribution
Supplier
production only starts
when enough pre-sales
by BoardofInnovation.com

20. IncIncHQHQ
Quirky.com
Product idea
initiator
Product idea
Exposure
Product
Designer
IncIncIncInc
Design company
Community
Co-design product
Product Buyer
New product
5
Money
5
$99
5
30% of profit
5
part of 30% profit
based on contribution
5
part of 30% profit
based on contribution
Supplier
production only starts
when enough pre-sales
First Check:
Does every player gets
something back?

21. Start with the key transaction.
IncIncHQHQ
Quirky.com
Product idea
initiator
Product idea
Exposure
Co-design product
5
$99
5
30% of profit
production only st
when enough pre-s
There are always 10
assumptions hidden in each
transaction.

22. As an example:
1. People will share innovative ideas.
2. People even pay, to share their concept.
3. $99 is not too much. (Why not $900 or $9?)
4. 30% is a fair return for handing over your idea.
5. Design feedback by amateurs has value.
6. It’s clear to a user what type of idea can be shared.
7. An inventor trusts a new platform.
8. An amateur with no technical background can contribute.
9. A potential monetary reward is the most important driver.
10. Doing a lot of work upfront is a risk people are willing to take.

23. IncIncHQHQ
Quirky.com
Product idea
initiator
Product idea
Exposure
Product
Designer
IncIncIncInc
Design company
Community
Co-design product
Product Buyer
New product
5
Money
5
$99
5
30% of profit
5
part of 30% profit
based on contribution
5
part of 30% profit
based on contribution
Supplier
production only starts
when enough pre-sales
In no time you will find
100 different assumptions.

24. Be honest: What do we know (& don’t know?)
https://www.youtube.com/watch?v=GiPe1OiKQuk

25. Write down
your main assumptions.

26. Do a quick & dirty ranking
For your most critical assumptions:
Look for way to test?

27. Feel free organise them that it makes sense to you:

28. Example of assumptions & tests:
https://www.youtube.com/watch?v=rS6fHW9pRek#t=327

29. validate assumptions while the world evolves
Building while flying?

30. Anticipate change?

31. Assumptions vs time.
Time
= snapshot

32. Business theory
Most business frameworks*
rely on old models of how
the economy works.
*What about business schools?

33. Current design?
Focus: Stability - Efficiency - Predictable

34. Current design?
Our current structure of companies
was invented at a specific time.

35. Current design?
Companies lived in
a stable environment.
Less need to evolve
Less need to innovate

36. Example (all driven by technology)
It becomes easier & easier to pay someone
It becomes easier & easier to follow peers
It becomes easier & easier to know what you like
…

37. Focus on Kickstarter
Total funding?

38. Focus on Kickstarter

39. Pebble Time
Total funding?

40. Original Pebble Watch
2012
$10.266.845
Time needed to
get 1M dollar?

41. Original Pebble Watch
2012
$10.266.845
Time needed to
get 1M dollar?
28 Hours

42. Ouya, gaming console
Time needed to
get 1M dollar?
28 Hours
8 Hours

43. Ouya, gaming console
Time needed to
get 1M dollar?
7 Hours
28 Hours
8 Hours

44. Pebble Time
Time needed to
get 1M dollar?
7 Hours
28 Hours
8 Hours
0 H 44 min

45. Ocolus Rift
+$2M on Kickstarter

46. Oculus Rift
Oculus Rift acquired by Facebook for 2 Billion Dollar
2 year after launch.
+$2M on Kickstarter

47. Traction? = Acquired as it happens.
Mailbox, acquired by Dropbox for $100M
1 month after launch.

48. 1 day startups
get acquired for
$1 Billion
Is this where we’re heading at?
This to illustrate the pace of change
that impacts the context of companies.

49. Pace of change

50. Seeing a lineair evolution

51. The future… for UBER?
On-demand transport of individuals (taxi)

52. The future… for UBER?
On-demand transport of individuals (taxi)
On-demand transport of groups (UBERpool)

53. vs shuddle.us

54. The future… for UBER?
On-demand transport of individuals (taxi)
On-demand transport of groups (UBERpool)
On-demand transport of X (UBERmeals)

55. vs Postmates

56. The future… for UBER?
On-demand transport of individuals (taxi)
On-demand transport of groups (UBERpool)
On-demand transport of X (UBERmeals)
On-demand logistics (Self-driving?)

57. vs Shyp

58. Auto-pilot?

59. The future… for UBER?
On-demand transport of individuals (taxi)
On-demand transport of groups (UBERpool)
On-demand transport of X (UBERmeals)
On-demand logistics (Self-driving?)
On-demand X (Convenience)

60. The future… for UBER?
On-demand transport of individuals (taxi)
On-demand transport of groups (UBERpool)
On-demand transport of X (UBERmeals)
On-demand logistics (Self-driving?)
On-demand X (Convenience)
= real-time matchmaking

61. Somebody, do it for me… -now-

62. Real-time Matchmaking
Solved.io

63. Understand & Detect Exponantial Growth
Driven by startups & technology

64. Example
11am
12am

65. Example
? am

66. Example
11:59am

67. Example
11:55am
3%

68. Example
11:00am
11:55am

69. Example
11:00am
11:55am
Based on our experience
of the last 55 years,
what will happen
the next 5 years?

70. Impact?

71. Assumptions about the
context?

72. Why does ‘Alien’ feels a lot more real
(and therefor scary) than ‘Star Trek’?

73. It’s not perfect. It’s messy.

74. Movie?

76. The future… will look a lot like today.

77. 80 years old
8 months

78. Assume technology will solve everything!
Pitfall.

79. Triggered by technology.
“ A smart fridge with an integrated
computer to offers recipes, order food...”

80. Triggered by technology.
This idea lives almost half a century.
“ A smart fridge with an integrated
computer to offers recipes, order food...”
Honeywell 1969

81. Triggered by technology.
“ A smart fridge with an integrated
computer to offers recipes, order food...”
And comes back every 2-3 year.
Honeywell 1969
Winnipeg 1977
LG 2012
V-Sync 1998

82. Case (ninetees) car + home automation?
“Fill the bath when I head home.”
Could you name a similar case today?

83. Existing tech & infrastructure limits our thinking.

84. Existing tech & infrastructure limits our thinking.

85. Existing tech & infrastructure limits our thinking.

86. Existing tech & infrastructure limits our thinking.

87. What will we laugh with in the future?

88. Validate assumptions?

89. What was the hypothesis for the iPod?

90. Making Hypothesis, testing Assumptions

91. Making Hypothesis, testing Assumptions

92. Free Cars!
Innovate in
Automotive?
Look at other industries!
look for similar transactions in other markets.

93. Free Cars!
Innovate in
Automotive?
Learn from
Telecom!
Look at other industries!

94. Example: Subscripton models.
How do other solve this transaction? Can we add a twist?

95. Yes - Focus on specific niches
Every month a new box with other products linked to
the needs of a specific customer profile.

96. Yes - link with experiences!

97. Yes - Make it a membership (a movement!)
Your product becomes a symbol of fight against x.

98. Yes - but even better than a normal subscription!
Links Micro-leasing model?

99. Transaction: Transfer rights (shares, decisions rights)

100. Transaction: Become co-owner of another company.
Businesses: Shares, business case,...

101. Would you sell shares of your own life?
Mike Merrill

102. Would you sell shares of your own life?

103. Would you sell shares of your own life?

104. Look for the key numbers to
validate.

105. Count the numbers.

106. Testing of assumptions

107. Unusable product
(embarrassing)
Minimum Viable product
(loveable but limited)
Complete Product
(expensive)
What’s an MVP?
the product
you want to build
crappy products
nobody wants to use
Minimum Viable
Good features to test
the users responses

108. MVP is not about spending less money.
Nr. 1 goal MVP:
“maximum learning with minimal effort”
How?
“mix of experiments & prototyping.”

109. B2B - B2B2C - B2C
Validate the problem
1/2

110. Find 1 real user/client:

111. Real customers: Don’t fool yourself!
dream user: doesn’t exist.
real user = less sexy.

112. Finding users?
“Product to improve maintenance & repairs in hotels.”
(focus: Dutch Market)

113. Linkedin

114. Finding users?
“Service to track personal health of runners:”

115. Facebook Graph Search

116. Facebook groups

117. B2B - B2B2C - B2C
Validate the solution?
2/2

118. InvisionApp

119. Showcase your product or idea?

120. Example:

121. PitaPayments.com

122. 11.10 sec
This is a real payment,
not an animation.
A very inefficient backend
with manual intervention
executes this request.
For a user, the
experience is real.

123. 0m 11.1 sec 1m 13.0 s
Working
prototype
=
7 times
faster
than
current
home
banking

124. Tools used:
Launch Center Pro €4,99
Screenflow €49 (or free trial)
Reflector €14,95 (or free trial)
Student €25,00
Bank Account €0

125. Peek usertesting

126. Mouseflow

127. Most used options to learn (lean startup approach)
A. The explainer video - demo in a nutshell.

128. Most used options to learn (lean startup approach)
B. Landing page | mini-webpage.

129. Most used options to learn (lean startup approach)
C. Landing page | mini-webpage.

130. Most used options to learn (lean startup approach)
C. Landing page | mini-webpage.

131. Most used options to learn (lean startup approach)
D. Wizard of Oz (Fake it)
https://www.youtube.com/watch?v=zIEIvi2MuEk

132. Most used options to learn (lean startup approach)
E. Manual service (a.k.a. concierge service)

133. Most used options to learn (lean startup approach)
F. Sell before you build. (Crowdfunding - B2C)

134. Most used options to learn (lean startup approach)
F. Sell before you build. (Crowdfunding - B2B)

135. Most used options to learn (lean startup approach)
G. Animated functional prototype (paper, digital,…)

136. Most used options to learn (lean startup approach)
F. A temporary, but real product.

137. Our own Cardrops story.

138. What we tested & learned.

139. Tech check.

140. Pricing tests

141. Test pricing.

142. Ask for first feedback (customer insights)

143. Viral features (test marketing channels)

144. Create interest from partners.

145. Decision tree to help you out.

146. Does your product/service
remember previous use of a
user? (eg. memory card)
Will your business client be
less vulnerable to
unexpected situations?
11. Barter
12. Freemium
16. Data Resell
21. Leasing
23. Dynamic pricing
24. Fractional
Ownership
Free!
For the user.
Value
Proposition
Third party
pays the bills
Pricing tactic
19. Flat rate
(one-time-fee)
20. Subscription
(time related)
Hmmm...
Making money on your product seems to be a tough one.
Get out of your comfort zone! It's innovate or die.
Answer quick! What comes to mind
first is the right answer. Here we go:
Will the majority of companies
(users) pay for your product?
Will users have to give their
company data in order to use
your product/service?
Is it your goal to have
direct revenue from this
product/service?
Do you believe other companies
would have interest in targeting
your user base?
Do you generate user-data
relevant for others?
Are there any complementary
services/products to your offer
that your users expect?
Is the variabel cost per
extra user non-existent
or negligible?
Can you think of features that only
part of your user base would pay for?
Does your product need a critical
amount of users to show it's value?
#Awesome! You have some
options that your users
might be willing to pay for.
25. Pre-sales
Do you want the user to own the
product once they pay?
Would you like proof of
interest from your users
before you launch?
Do you think the user might
have trouble paying the entire
product at once?
Do you want users to
pay every time they use
your product/service?
Yes!
Damn right
about that!
We will launch
anyway!
Yes!
Will the user have the
exclusive right to use
this product?
Sounds like
a hassle.
Nope! Yes!
Yes!
Check!
Ads, are
you crazy?
Not really...
User data is
one of our
biggest assets!
No!
My product is all
they need!
Yes!
Our customers
could give us
something else.
Of course!
Definitely!
Nope, no critical
mass needed!
Investments
are done,
so yes!
Yes!
We do have some
extra costs...
Didn't I say I don't
want them to pay?
They would be
devastated if
their user data
was lost!
Ever played Monopoly?
Go back to start!
No!
Can one product
be shared amongst
different users?
Yes!
Could you introduce physical
consumables to be used
together with the product?
Nope!
No!
Good
idea!
Grow up, pre-sales
are only the start...
Cool! You just
teleported
yourself here!
27. Up-selling
Do you see the
option to sell
something extra
to part of your
customer base?
Harder, better,
faster, stronger!
You can probably
make even more
money on this! Just
give it a try!
Remember:
You can only walk
this road once!
15. Affiliate/
Referral
18. Marketplace
Do you want to have an
integrated solution that seems
to be your own offering?
Suggest a
trusted partner
is fine!
Yes,
Integrated
Solution
Do you dream of
making even more
money with this idea?
Hell yeah!
Hint >You might find gold at
the other side of this tunnel
17. Matchmaking
platform
Do you bring 2 parties in
contact with each other?
We do!
22. Pay-per-use
Do you have
fluctuating
supply and
demand?
Yes!
No, but we do
have a recurring
cost in mind!
Your journey requires
a teleportation! Find
the exit...
2. Exclusivity/
Limited availlability
1. Loss/Aversion
13. Pay-what-you-
want
7. Flexibility
14. Advertising
28. Razor-blade
No!
Riskless!
6. Certainty
Does the value of your product
decrease if more competing
companies have access to it?
Does your product lower the needs for
investments compared to the current
solution? (monetary or contractual)
Yes!
Yes
High chance that you'll
find more reason for
companies to pay
High chance that
you'll find more
reason for
companies to pay
Will the customer of our
business client be in
touch with our solution?
Yes!
Will your solution lower the
acquisition cost of new
customers for our client?
8. Vanity/
Reputation
Nope!
Will your product be more
convenient to our clients
customers than current
solutions offered?
Improve the image your
business clients towards
their customer segment(s)?
3. Acquisition
convenience
4. Clients (of clients)
satisfaction
Does the internal relationship
between your client and its
employees improves?
10. Transparancy
Yes!
9. OPEX Saving
A real
time-saver!
Is your product/service lowering
the operational costs at your
clients' company? (eg. work hours)
5. Employee
satisfaction
A real
time-saver!
Does your product improve
the working conditions at
your business client?
Are employees working at your
business client able to focus
more on what they like to do?
They do what
they are trained
for again!
Will your product/service also
have a positive impact on the
customer of your customer?
Find new revenue models for your idea (B2B) Start here!
What about these colours?
“Find new revenue streams for your idea”

147. 16. Data Resell
14. Advertising
Do you want to offer a
product/service to people
that can't afford it?
want the users of your product
pen-up their wallet for you?
Do you believe other companies
would have interest in targeting
your customer base?
Do you generate user-data
relevant for others?
No, let's give
it for free!
Maybe
It's not about the
ability to pay. I'm
just not sure if
everyone will pay!
Exactly!
Check!
Ads, are
you crazy?
Not really...
Shht... user data
is our competitive
advantage!
No!
What do you choose? An
Advice to
trusted
partner
is fine!
He
Hint >You m
the other s
Start here!
What is that flowchart all about?

148. What is that decision tree all about?
Free!
for the user.1.
Value proposition
user2.
Pricing
Tactic3.€
Third party
pays the bills4. Get one - Give one
Advertising
Affiliate & Referrals
Data Resell
Matchmaking platform
Marketplace

149. More info?
Good luck!