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Presentation Global Innovation Forum London Nov 2014

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Presentation by Maaike Doyer and Doug Morwood of Business Models Inc. during workshop Practical Tools to Re-invent your Business (Model) at the Global Innovation Forum in London on November 20th 2014.

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Presentation Global Innovation Forum London Nov 2014

  1. 1. @busmodinc #bmgen Practical Tools To Re-design Your Business Model November 20th, 2014
  2. 2. WHAT ARE WE GOING TO DO TODAY?
  3. 3. WE NEED NEW TOOLS NEW SKILLS NEW MINDSET
  4. 4. WHY?
  5. 5. BUSINESS AS USUAL IS DEAD
  6. 6. BUSINESS PLANS ARE SO 1980
  7. 7. OUR SHARED GOAL, A BETTER BUSINESS
  8. 8. WE WILL GIVE YOU TOOLS
  9. 9. IMPORTANT LESSONS FOR YOUR BUSINESS
  10. 10. ` ARE YOU READY?
  11. 11. BUT FIRST INTRODUCTIONS
  12. 12. ` MAAIKE
  13. 13. DO`UG
  14. 14. WE (RE-) DESIGN BUSINESSES
  15. 15. CREATING RESULTS WITH TEAMS
  16. 16. DIRECT RESULTS IN THE BOTTOM LINE
  17. 17. ` ENGINE IN START-UPS
  18. 18. ` ENGINE IN CORPORATES
  19. 19. HOW IT ALL STARTED
  20. 20. WE WANTED TO DISRUPT THE PUBLISHING INDUSTRY
  21. 21. 8 PROTOTYPES
  22. 22. 1 MILLION COPIES 30 TRANSLATIONS
  23. 23. MOST ADDED VALUE IN VALUE PROPOSITION DESIGN
  24. 24. PUBLISHED IN OCTOBER
  25. 25. WHY IS BUSINESS MODELING SO POPULAR?
  26. 26. VUCA – WORLD: NON-STOP VOLATILITY, UNCERTAINTY, COMPLEXITY AND AMBIQUITY
  27. 27. LIKE AN AMUSEMENT ` PARK: FULL OF ` THRILLING RIDES. NOT ` ALL OF THEM ARE FUN. ` Source: Moments of Impact
  28. 28. THE SPEED OF DEVELOPMENTS ` HAS INCREASED `
  29. 29. YOU WANT TO BRING THE IDEA TO LIFE!
  30. 30. TOGETHER WITH A DEC DIVERS TEAM DEC
  31. 31. DECISIONDE CMAKING AT A LOWER LEVEL DEC
  32. 32. AND JUST DO IT
  33. 33. WE NEED NEW TOOLS NEW SKILLS NEW MINDSET
  34. 34. TOOL BUSINESS MODEL CANVAS
  35. 35. A BUSINESS MODEL DESCRIBES THE RATIONALE OF HOW AN ORGANIZATION CREATES, DELIVERS, AND CAPTURES VALUE
  36. 36. THE BUSINESS MODEL CANVAS
  37. 37. C1USTOMER SEGMENTS
  38. 38. V2ALUE PROPOSITIONS
  39. 39. 3CHANNELS
  40. 40. C4USTOMER RELATIONSHIPS
  41. 41. 5REVENUE STREAMS
  42. 42. 6KEY RESOURCES
  43. 43. 7 KEY ACTIVITIES
  44. 44. 8KEY PARTNERS
  45. 45. 9COST STRUCTURE
  46. 46. CUSTOM ER SEGMEN TS KEY PARTNERS COST STRUCTURE REVENUE STREAMS VALUE PROPOSITIONS CHANNE LS CUSTOMER RELATIONSH IPS KEY RESOURCE S KEY ACTIVITIES
  47. 47. LETS LOOK AT AN EXAMPLE
  48. 48. “WE ARE GOING TO PROVIDE MUSIC TO EVERYONE (ANY TIME, ANY PLACE) FOR FREE IN A LEGAL WAY”
  49. 49. THE BUSINESS MODEL OF SPOTIFY
  50. 50. BUSINESS MODEL CANVAS SPOTIFY Access to music via streaming and download services Platform development and maintenance Licensing agreements Software and network engineers Rightholders (labels and publishers) Advertisers 3rd party APIs Communities Internet + PC Royalties to Ad fees Subscription FREE rightholders fees PC + mobile Salaries Bandwith costs Automated online relationship Global music fans Advertising Platform and brand Internet + mobile
  51. 51. HOW CAN THE BUSINESS MODEL CANVAS BE USED?
  52. 52. THE BUSINESS MODEL CANVAS CAN BE USED FOR REDESIGN AND INVENTION
  53. 53. HOW DOES IT CONNECT TO VISION, CONTEXT AND STRATEGY
  54. 54. DESIGNING BETTER BUSINESSES ` ` OUR PROCESS
  55. 55. THESE ARE THE MINIMUM STRATEGIC CONVERSATIONS
  56. 56. WHERE IS THE COMPETITION IN THE CANVAS?
  57. 57. HOW DO I IDENTIFY RELEVANT TRENDS?
  58. 58. TOOL CONTEXT CANVAS
  59. 59. WHAT WOULD YOU LIKE TO ACHIEVE?
  60. 60. WHAT ARE YOUR GOALS?
  61. 61. TOOL VISION CANVAS
  62. 62. LETS LOOK AT AN EXAMPLE
  63. 63. WHAT IS THE M O S T I M P O R T A N T TREND THEY CONNECT T O ?
  64. 64. CHINA: MAIN COURSE – UNITED STATES: DESSERT
  65. 65. “FROM HIS HOME IN RURAL QINGHE COUNTY, IT TOOK JUST TWO YEARS FOR THE 35-YEAR-OLD TO RAKE IN MORE THAN 10 MILLION YUAN ($1.6 MILLION) SELLING WOOLEN YARN”
  66. 66. WHAT IS THEIR VISION ?
  67. 67. MAKE IT EASY TO DO BUSINESS ANYWHERE
  68. 68. FIGHT FOR THE SMALL BUSINESS ENTREPRENEUR
  69. 69. 1. CUSTOMERS 2. EMPLOYEES 3. SHAREHOLDERS
  70. 70. 1 9
  71. 71. IPO: $25 BILLION, MARKET CAP: $230 BILLION
  72. 72. ONE FINAL WORD OF BUSINESS (MODEL) WISDOM FROM JACK
  73. 73. “MAKE YOUR CUSTOMER HAPPY, NOT YOUR
  74. 74. OUR PROCESS
  75. 75. HOW DO WE DESIGN NEW BUSINESS MODELS?
  76. 76. THINK LIKE A DESIGNER!
  77. 77. IT’S A JOURNEY OF EXPLORATION
  78. 78. GENERATE OPTIONS
  79. 79. EXPLORE OPTIONS
  80. 80. THERE IS MORE THAN 1 OPTION
  81. 81. CHECK Against design criteria
  82. 82. REPEAT
  83. 83. TECHNIQUE Scenario planning
  84. 84. VISIT THE FUTURE FREQUENTLY
  85. 85. TECHNIQUE Apply business model patterns
  86. 86. UNDERSTAND BUSINESS MODEL PATTERNS
  87. 87. Top 20% Focus on a small Number of products, Each selling in high volume LONG TAIL Focus on a lage number of products, each selling in low volumes # of products # of sales FREE + PREMIUM = FREEMIUM
  88. 88. TECHNIQUE Use customer insights
  89. 89. UNDERSTAND CUSTOMERS’ PAIN AND GAIN
  90. 90. TECHNIQUE Fresh watching
  91. 91. ‘LEARN’ FROM OTHER BUSINESS MODELS
  92. 92. TECHNIQUE What if…
  93. 93. ASK YOURSELF CRAZY QUESTIONS
  94. 94. “WHAT IF…?”
  95. 95. OUR PROCESS
  96. 96. TOOL VALUE PROPOSITION DESIGNER
  97. 97. MOST COMPANIES HAVE NO IDEA WHO THEIR CUSTOMER IS. DATA IS NOT ENOUGH
  98. 98. ` WHO IS OUR CUSTOMER?
  99. 99. ` WHAT DOES HE WANT?
  100. 100. ` WILLINGNESS TO PAY?
  101. 101. OUR PROCESS
  102. 102. SO YOU COME UP WITH A NEW IDEA…
  103. 103. AND YOU THINK IT’S WORTH A FORTUNE
  104. 104. BUT IT’S NOT
  105. 105. BECAUSE AN IDEA…
  106. 106. OR BUSINESS MODEL…
  107. 107. IS ON PAPER
  108. 108. …ONLY A SET OF HYPOTHESES GUESS
  109. 109. IT HAS NO VALUE
  110. 110. SO WHAT DO WE DO
  111. 111. THINK ABOUT YOUR NEW BUSINESS MODEL AS IF YOU ARE A START-UP
  112. 112. WHAT IS ACTUALLY A START-UP
  113. 113. “A START-UP IS NOT A SMALL VERSION OF A LARGE COMPANY.” Steve Blank
  114. 114. A START-UP IS A TEMPORARY ORGANIZATION IN SEARCH FOR A PROFITABLE, SCALABLE AND REPEATABLE BUSINESS MODEL…
  115. 115. IT IS ALL ABOUT LEARNING!
  116. 116. YOU NEED TO CLARIFY YOUR ASSUMPTIONS
  117. 117. YOU NEED TO TEST YOUR ASSUMPTIONS
  118. 118. Source: Alex Osterwalder Instagram
  119. 119. GO OUT OF THE BUILDING
  120. 120. GO OUT TO TALK TO CUSTOMERS…
  121. 121. WATCH FIRST THEN ASK
  122. 122. LOOK FOR NEEDS NOT SOLUTIONS
  123. 123. STOP FEATURITIS NOW
  124. 124. DISRUPT OR BE DISRUPTED?
  125. 125. IN THE LAST FEW YEARS WE HAVE BEEN WORKING WITH MORE THAN 400 INTERNATIONAL CLIENTS FROM START-UPS TO CORPORATE ORGANIZATIONS ON BUSINESS MODELING. WE PUT ALL OUR EXPERIENCES TOGETHER AND CAME TO THE FOLLOWING 10 TIPS FOR BUSINESS MODEL INNOVATION. ENJOY BUSINESS MODELING! www.businessmodelsinc.com
  126. 126. TIP#
  127. 127. START WITH THE AS-IS. MAP THE CURRENT BUSINESS MODEL, CONTEXT AND VISION ON A LARGE POSTER WITH 3M POST IT NOTES.
  128. 128. TIP#
  129. 129. DON’T TRY THIS ALONE. LET YOUR COLLEAGUES OR FRIENDS HELP YOU!
  130. 130. THE BUSINESS MODEL CANVAS BRINGS PEOPLE WITH DIFFERENT PERSPECTIVES TOGETHER
  131. 131. TIP#
  132. 132. LEARN FROM OTHER BUSINESS MODELS!
  133. 133. TIP#
  134. 134. APPLY BUSINESS MODEL PATTERNS.
  135. 135. TIP#
  136. 136. THINK AS A BUSINESS MODEL DESIGNER. DO NOT RELY ON 1 MODEL, BUILD PROTOTYPES
  137. 137. THERE IS NO SINGLE RIGHT ANSWER
  138. 138. TIP#
  139. 139. “VISIT THE FUTURE FREQUENTLY!”
  140. 140. TIP#
  141. 141. TIP#
  142. 142. “DRAWING IS THE NEW WRITING” THINK & WORK VISUALLY!
  143. 143. TIP#
  144. 144. DON’T RELY ON YOUR ASSUMPTIONS.
  145. 145. GET OUT OF THE BUILDING AND TEST THEM!
  146. 146. TIP#
  147. 147. JUST DO IT!
  148. 148. USE THE BUSINESS MODEL CANVAS ;-)
  149. 149. THE BUSINESS MODEL CANVAS
  150. 150. CONTACT US FOR MORE INFORMATION AND TOOLS MAAIKE DOYER STRATEGY DESIGNER Business Models Inc. Global maaike@businessmodelsinc.com +31 6 81 82 25 18 DOUG MORWOOD STRATEGY DESIGNER Business Models Inc. UK doug.morwood@businessmodelsinc.com +44 7921 373 114
  151. 151. Thank you! Business Models Inc. www.businessmodelsinc.com

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