Corporate Entrepreneurship Workshop

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HI, I AM JUAN TEJEDA BUSINESS DESIGNER / ENTREPRENEUR

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ATTENTION SMOKERS: You can smoke in the roof terrace

TODAY’S AGENDA

Introductions/Presentation Intro to the Business Model Canvas BREAK Pitch Ideas / Form groups Begin exercise with BMC Group Presentations End of the workshop

10:00 11:00 11:20 11:40 12:00 13:00 13:30

INTRODUCTIONS

YOUR NAME + 3 HASHTAGS (#)

#WHATYOUDO #COMPANY #SOMETHINGABOUTYOU

LEONARDO DICAPRIO

FOR EXAMPLE:

#ACTOR

#HOLLYWOOD

#FINALLYANOSCAR2016

CORPORATE ENTREPRENEURSHIP

THE MOST FAMOUS BLOGPOST OF 2015…

Something interesting is happening… – Tom Goodwin, “The Battle Is For The Customer Interface” (Tech Crunch article)

The most valuable retailer, has no inventoryALIBABA

The world’s most popular media owner, creates no contentFACEBOOK

The world’s largest accommodation provider, owns no real estateAIRBNB

The world’s largest taxi company, owns no vehiclesUBER

Companies valued at over $1 billion in 2015: Zenefits, a human resources software.

Oscar Health Insurance, insurance sector. MarkLogic, enterprise software company.

In the digital age, “unicorns” are changing and disrupting

traditional industries and businesses at a record speed.

SOURCE: research firm CB Insights

In order to stay relevant and growing in the digital age, companies have to transform or perish.

Every company is just a startup away to be put out of business.

SO, WHAT ARE COMPANIES DOING?

DCF TRAP / PARMENIDE’S FALLACY

SOURCE: Innovation Killers: How Financial Tools Destroy Your Capacity to Do New Things By Clayton Christensen, Stephen Kaufman, Willy Shih

ASSUMED cash stream resulting from doing nothing

MORE LIKELY cash stream resulting from doing nothing

PROJECTED cash stream from investing in innovation

Companies should be making this comparison

DCF and NPV Methodologies implicitly make this comparison

NPV = DCF - Required investment

DCF = Discounted Cash Flow NPV = Net Present Value

AN EXAMPLE OF DOING NOTHING…

AN EXAMPLE OF DOING NOTHING…

In 1975 Kodak engineer Steven Sasson invented the first digital still camera, which used a Fairchild 100 x 100 pixel CCD. By 1986 Kodak had developed a sensor with 1.4 million pixels.

DYING INDUSTRIES

SOON TO FOLLOW:

Oil and Gas Steel Manufacturing Television

Video Rentals Recordable media manufacturing Hardware manufacturing Data recovery services

“INCUBATORS” AND “ACCELERATORS”

INCUBATORS

ACCELERATORS

CORPORATION

A lot of young and unexperienced talent…

Timmy here, is looking to solve a personal problem, which might not be the one of your current customer.

He dreams to be the next Zuckerberg…

GREENFIELD vs CORPORATE ENTREPRENEUR

GREENFIELD ENTREPRENEURS

Ideas for a start-up usually try to solve a PERSONAL problem hoping to find an audience with a similar problem.

CORPORATE ENTREPRENEURS

Find or create opportunities, based on the corporate strategy or the company’s core business. They look to solve the problems that the company’s customers have.

Meet the Corporate Entrepreneurs…

Employees that can:

• Identify or create opportunities aligned with the corporate strategy

• Have an understanding of needed resources

• Provide the drive to bring an idea to life

All in the form of a business

INTERNAL ENTREPRENEURS = INTRAPRENEURS

Why Corporate Entrepreneurs?

Reason #1 Next competitive advantage from inside knowledge

Developing for the enterprise relies heavily on the insights, knowledge and experience of industry insiders. It is therefore better for companies to look inward instead of looking for outsiders.

Reason #2 Accelerate internal innovation processCorporate Entrepreneurs help accelerate the innovation process by creating new business opportunities in a neutral setting, rid of procedural complications and company politics.

Reason #3 Employee RetentionMillennials realised that starting a company, even if it crashes and burn, teaches them more in two years than sitting in a cubicle for 20 years.

Why should this interest you?…

Reason #1 Advance your career

Intrapreneurs like entrepreneurs take initiative and calculated risks. They’re creative and problem solvers, but most importantly, they don’t give up.

These are attributes the business world has always valued, and they are equally important today.

Reason #2 Intrapreneurship is the first step to entrepreneurship

Some 94 percent of intrapreneurs think they have the required skills and knowledge to start a firm of their own after having developed an intrapreneurial project.

Reason #3 Work on a passion project

“Working hard for something we don’t care is called stress; working hard for something we love is called passion” – Simon Sinek

GERMANY: STILL TOUGH FOR A WORKING GAL

Board Seats Held by Women, by Country

SOURCE: http://www.catalyst.org/knowledge/board-seats-held-women-country

http://www.catalyst.org/knowledge/board-seats-held-women-country

GERMANY: STILL TOUGH FOR A WORKING GAL

“…There are only 10 women out of 135 executive committee members in the country’s top companies…

…Lufthansa is the only company in the group to have two women on its five-person ExCom, making it Germany’s only gender balanced leadership team”

SOURCE: https://hbr.org/2014/07/how-6-countries-compare-on-executive-gender-balance/

PLEASE CONSIDER THESE FACTS:

Women are better investors than the average man, according to LouAnn Lofton, author of “Warren Buffett Invests Like a Girl — And Why You Should, Too”

PLEASE CONSIDER THESE FACTS:

Companies that include more women on their executive management teams are more likely to succeed than companies with men-only executive suites, according to “Women at the Wheel: Do Female Executives Drive Start-up Success?” research conducted by Dow Jones.

v

Can I do it too?

v

in short…

HELL YEAH!

THE ROAD AHEAD

THE LONG ROAD: CORPORATE PROGRAM

VTHE SHORT ROAD: BASE CAMP / ICEFALL

IDEATE + PLAN VALIDATE UNTIL PROVEN

PROTOTYPE

PREPARE A DECK FIND A SPONSOR PRESENT!

BUSINESS MODEL CANVAS

DESIGNED FOR: DESIGNED BY: DATE: ITERATION:

Who are our Key Partners?Who are our key suppliers?Which Key Resources are we acquairing from partners?Which Key Activities do partners perform?

MOTIVATIONS FOR PARTNERSHIPS Optimization and economy Reduction of risk and uncertaintyAcquisition of particular resources and activities

What Key Activities do our Value Propositions require?Our Distribution Channels?Customer Relationships?Revenue streams?

CATEGORIES ProductionProblem SolvingPlatform/Network

For what value are our customers really willing to pay?For what do they currently pay?How are they currently paying?How would they prefer to pay?How much does each Revenue Stream contribute to overall revenues?

TYPES Asset saleUsage feeSubscription FeesLending/Renting/LeasingLicensingBrokerage feesAdvertising

FIXED PRICING List PriceProduct feature dependentCustomer segmentdependentVolume dependent

DYNAMIC PRICING Negotiation (bargaining)Yield ManagementReal-time-Market

What are the most important costs inherent in our business model?Which Key Resources are most expensive?Which Key Activities are most expensive?

IS YOUR BUSINESS MORECost Driven (leanest cost structure, low price value proposition, maximum automation, extensive outsourcing)Value Driven (focused on value creation, premium value proposition)

SAMPLE CHARACTERISTICSFixed Costs (salaries, rents, utilities)Variable costsEconomies of scaleEconomies of scope

What Key Resources do our Value Propositions require?Our Distribution Channels? Customer Relationships?Revenue Streams?

TYPES OF RESOURCES PhysicalIntellectual (brand patents, copyrights, data)HumanFinancial

Through which Channels do our Customer Segmentswant to be reached?How are we reaching them now?How are our Channels integrated?Which ones work best?Which ones are most cost-efficient?How are we integrating them with customer routines?

CHANNEL PHASESAwarenessHow do we raise awareness about our company’s products and services?EvaluationHow do we help customers evaluate our organization’s Value Proposition?PurchaseHow do we allow customers to purchase specific products and services?DeliveryHow do we deliver a Value Proposition to customers?After salesHow do we provide post-purchase customer support?

For whom are we creating value?Who are our most important customers?

Mass MarketNiche MarketSegmentedDiversifiedMulti-sided Platform

What value do we deliver to the customer?Which one of our customer’s problems are wehelping to solve?What bundles of products and services are weoffering to each Customer Segment?Which customer needs are we satisfying?

CHARACTERISTICS NewnessPerformanceCustomization“Getting the Job Done”DesignBrand/StatusPriceCost ReductionRisk ReductionAccessibilityConvenience/Usability

What type of relationship does each of ourCustomer Segments expect us to establishand maintain with them?Which ones have we established?How are they integrated with the rest of ourbusiness model?How costly are they?

EXAMPLES Personal assistanceDedicated Personal AssistanceSelf-ServiceAutomated ServicesCommunitiesCo-creation























BUSINESS PLAN

EXECUTIVE SUMMARY THE TEAM • Management Profile • Why are we a winning team THE BUSINESS MODEL • Vision • Mission / Values • How our Business Model works • Value Proposition • Target Markets • Marketing Plan • Key Resources and Activities FINANCIAL ANALYSIS • CVP Analysis • Sale Scenarios and Projections • Capital Spending • Operating Costs • Funding Requirements EXTERNAL ENVIRONMENT • The Economy • Market Analysis / Key Trends • Competitor Analysis • Competitive Advantage IMPLEMENTATION ROADMAP • Projects • Milestones • Roadmap RISK ANALYSIS • Limiting Factors and Obstacles • Critical Success Factors • Specific Risks and Countermeasures CONCLUSION ANNEXES

























CUSTOMER SEGMENTS

The Customer Segments building block defines the groups of people or organisations an enterprise aims to reach and serve.

Customers comprise the heart of every business model. Without (profitable) customers, you have no business and no company can survive for long.

It’s good to group them into distance segments with common needs, common behaviours and other attributes. They represent separate segments if:

• Their needs require and justify a distance offer • They are reached through different distribution

channels • They require different types of relationships • They have different profitabilities • They are willing to pay for different parts of the offer

Alternative cheaper

conference calls for business

Students

Friends and Families

Everyone with a mobile

phone

Everyone that has a computer

People with high long distance

phone costs

Video calls

Hardware Manufacturers

























CUSTOMER RELATIONSHIPS

This building block describes the types of relationships a company establishes with a specific customer segments. These relationships can range from personal to automated and may be driven by the following motivations:

• Customer acquisition • Customer retention • Boosting sales (up-selling)Software

features

Community

Cheaper calling rates

Help website























CHANNELS

This building block describes how a company communicates with and reaches its Customer Segments to deliver a Value Proposition.

Channels are customer touchpoint and play an important role in the overall customer experience. They have several functions including:

• Raise awareness among a customers about a company’s

• Helping customers evaluate a company’s Value Proposition

• Deliver post-purchase customer support



Partner Website

Headset partnerships

Website

Skype Client























VALUE PROPOSITIONS

A value proposition is a promise of value to be delivered. It's the primary reason a prospect should buy from you. explains how your product solves customers' problems or improves their situation (relevancy), delivers specific benefits (quantified value),

EXAMPLE:



Skype offers a simple and convenient way for people in almost every country around the world to stay in touch over the Internet through free voice and video calls, sending instant messages, SMS (text messaging) or files, and by making low-cost calls to landline and mobile numbers.

Stay in touch with your loved ones

Easy, cost effective video conferencing

Video calls

International

SMS

Instant messages

License to produce Skype

hardware























KEY ACTIVITIES

It describes the most important things a company must do to make its business model work. By doing these activities the company can operate successfully.

These activities can be categorise as follows:

• Production • Problem solving • Platform/Network



Connections with regular

phone system

Software development

Promote the brand























KEY RESOURCES

It refers to the most important assets required to make the business model work.

Key resources can be physical, financial, intellectual or human depending on the business. These resources can be owned, leased or acquired through partnership.



DevelopersUX Designers

Recognisable brand

Software























KEY PARTNERS

We refer to a network or suppliers and partners that make the business model work.

We can distinguish for types of partnerships:

• Strategic alliances between non-competitors • Coopetition: Strategic cooperation between

competitors • Joint ventures to develop new businesses • Buyer-supplier relationships to assure reliable

supplies



Telco partners

Payment providers

Distribution partners

Microsoft Network























COST STRUCTURE

Here all the necessary costs to operate the business are listed. Most of the time these costs can be calculated after defining the key resources, key activities and key partnerships.

There are several classes of cost structures:

• Cost-driven • Value-driven • Fixed-costs • Variable-Costs • Economies of scale • Economies of scope





MarketingPartner fees

Telecom costs

StaffCustomer

service Office Space (rent)

IT infrastructure























REVENUE STREAMS

This building block describes how a company Makes money and create value. It represents the cash a company generates from each Customer Segment.

A company must ask itself, for what value is each Customer Segment willing to pay? Answering that question successfully allows the company to generate one or more Revenue Streams from each Customer Segment.





Pay-as-you-go for Business

Pre-paid or subscription

calls to regular phones

Free basic account

Skype hardware























Pay-as-you-go for Business

Pre-paid or subscription

calls to regular phones

Free basic account

Skype hardware


MarketingPartner fees

Telecom costs

StaffCustomer

service Office Space (rent)

IT infrastructure

Telco partners

Payment providers

Microsoft Network

Distribution partners

DevelopersUX

Designers

Recognisable brand

Software


Promote the brand

Connections with regular

phone system

Stay in touch

with your loved ones

Easy, cost effective video conferencing

Video calls

International

SMS

Instant messages

License to produce Skype

hardware

Partner Website Headset

partnerships

Website

Skype Client

Software features

Community

Cheaper calling rates

Help website

Students

Friends and

Families

Everyone with a mobile phone

Everyone that has a computer

People with high long distance phone costs

Video calls

Alternative cheaper

conference calls for business

IDEA PITCHING

GREENFIELD vs CORPORATE ENTREPRENEUR

GREENFIELD ENTREPRENEURS

Ideas for a start-up usually try to solve a PERSONAL problem hoping to find an audience with a similar problem.

CORPORATE ENTREPRENEURS

Find or create opportunities, based on the corporate strategy or the company’s core business. They look to solve the problems that the company’s customers have.

CHOOSE YOUR TEAM. LET’S DO THIS!

THANK YOU FOR PARTICIPATING

BRAINS & HEARTS | Holzstrasse 30, 80469 Munich | +49 (0)89 461-34 47-0 | [email protected]

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