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here a presentation I did in the Netherlands for the media industry
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BUSINESS MODEL
INNOVATION ! I love business models‘08!Utrecht, Netherlands !
Companiesfocusingonbusinessmodelinnova3on
outperformcompaniesfocusingonopera3onsintermsofopera3ngmargingrowth
IBMGlobalCEOStudy2006
it’s difficult…
the right equipment!
what if… you didn’t even try ?
Eric works for…
he joined the music industry for…
he used to go out with …
but things have changed…
CD Sales
now Eric is working on…
he is blaming…
and…
so Eric hired…
to hunt down …
but Eric really should have focused on…
BUSINESS MODEL
INNOVATION
while Eric was “whining”, others were innovating…
AMIE st. first gives songs away for
0.- USD
but the more a tune is downloaded…
BUSINESS MODEL
INNOVATION
that’s
BUSINESS MODEL
INNOVATION
that’s
new talent discovery
BUSINESS MODEL
INNOVATION
that’s
distribution channels
BUSINESS MODEL
INNOVATION
that’s
revenue streams
now consider…
Nokia is launching an “all-you-can-eat” music service
pay a monthly subscription…
BUSINESS MODEL
INNOVATION
that’s
BUSINESS MODEL
INNOVATION
that’s
building a platform
BUSINESS MODEL
INNOVATION
that’s
leveraging brand
BUSINESS MODEL
INNOVATION
that’s
recurring revenues
consider…
they offer a really neat service…
with Shazam you can…
you know how they make money?
BUSINESS MODEL
INNOVATION
that’s
BUSINESS MODEL
INNOVATION
that’s
product innovation
BUSINESS MODEL
INNOVATION
that’s
new channels
BUSINESS MODEL
INNOVATION
that’s
new revenues streams
and then of course there is…
now you might be saying…
then look at…
and…
and…
VoIPforfree!
what about your industry ?
…probably not the best solution
we need new methods for strategy analysis & design
BUSINESS MODEL
CANVAS
the
reflect systematically on your business model
areas 4
WHAT? WHO?HOW?
$? €?
building blocks 9
WHAT? WHO?HOW?
$? €?
CUSTOMER
CLIENT SEGMENTS
CLIENT SEGMENTS
CLIENT SEGMENTS
CLIENT SEGMENTS
CLIENT SEGMENTS
CLIENT SEGMENTS
CLIENT SEGMENTS
CLIENT SEGMENTS
CLIENT SEGMENTS
CLIENT SEGMENTS
CLIENT SEGMENTS
CLIENT SEGMENTS
CLIENT SEGMENTS
CLIENT SEGMENTS
CLIENT SEGMENTS
CLIENT SEGMENTS
CLIENT SEGMENTS
CLIENT SEGMENTS
OFFER
COST STRUCTURE
CUSTOMER RELATIONSHIPS
CUSTOMER SEGMENTS
KEY RESOURCES
KEY ACTIVITIES
REVENUE FLOWS
DISTRIBUTION CHANNELS
PARTNER NETWORK
our example
DISTRIBUTION CHANNELS
KEY ACTIVITIES
CUSTOMER RELATIONSHIPS
CUSTOMER SEGMENTS
COST STRUCTURE
PARTNER NETWORK
KEY RESOURCES
OFFER
super-star artists & hits! mass
market!
retail outlets!
protected content!
distribution channel!
finding talent!
marketing!huge revenues from few
artists!
radio & TV!
REVENUE STREAMS
marketing!
talent “production”!
it’s about selling less of more…
sale
s
number of products
focus on a small number of products with large volume!
sale
s
number of products
focus on a large number of products with low volume!
NewWaystoDiscover&PopularizeMusic…
DISTRIBUTION CHANNELS
platform for musicians & fans/buyers!
match-making with
taste!
communities!
online!breadth of platform!
platform management!
platform maintenance!
small revenues from many artists!
niche segments!
niche segments!
niche segments!
content producers!
music subscription
service!
KEY ACTIVITIES
CUSTOMER RELATIONSHIPS
COST STRUCTURE
PARTNER NETWORK
KEY RESOURCES
OFFER
REVENUE STREAMS
CUSTOMER SEGMENTS
KEY ACTIVITIES
KEY RESOURCES quality content!
subscription profile!
CUSTOMER RELATIONSHIPS
specialty alliances!
content
production!
global business community!
CUSTOMER SEGMENTS
DISTRIBUTION CHANNELS
news stand!
OFFER
REVENUE STREAMS COST STRUCTURE
PARTNER NETWORK
reader base!
FT.com profile!
brand!
content production!
sales & marketing!advertising!
news & analysis!
reader base!
newspaper!
FT.com!
subscription
delivery!
Ft.com!advertisers!
sales department!
sales news
stand!
subscriptions! specialty services fees!
“lending” brand for services!
content partners! sales & marketing!
voters’ participation!
platform dev.
& maintenance! news consumers online!
CUSTOMER SEGMENTS
DISTRIBUTION CHANNELS
digg.com!
OFFER CUSTOMER RELATIONSHIPS
REVENUE STREAMS COST STRUCTURE
KEY ACTIVITIES
PARTNER NETWORK
KEY RESOURCES
content & news “rating” website!
platform & algorithms!
scale & reach!website
traffic!
community discussions!
content sites!
advertising!platform management!
adoption by content producers! traffic
generation!
advertisers!website traffic!
HOW? … do w
e come up
with business
models like th
at? !
BUSINESS MODEL
CANVAS
the
you need to adopt a designer’s mindset
design ≠
only form
business people don’t just need to understand designers better; they need to become designers
Roger Martin, Dean Rotman School
“
”
4 business design techniques
we need to
co-create 1
?
everybody should be
OFFER
DISTRIBUTION CHANNELS
CUSTOMER RELATIONSHIPS
CUSTOMER SEGMENTS
REVENUE STREAMS COST STRUCTURE
KEY ACTIVITIES
PARTNER NETWORK
KEY RESOURCES
OFFER
DISTRIBUTION CHANNELS
CUSTOMER RELATIONSHIPS
CUSTOMER SEGMENTS
REVENUE STREAMS COST STRUCTURE
KEY ACTIVITIES
PARTNER NETWORK
KEY RESOURCES
we need to
prototype 2
the past was about choosing solutions the future is about generating options
there is no right solutions there are only good designs
[source:ideo.com]
you've got to bumble forward into the unknown
Frank Gehry, Star Architect
“”
we need to
think visually 3
“TheWallistheNewDesk”DaveGrayCEOXPLANE
we need to tell a
story 4
€!€!€! €!€!€!€!€!€! €!€!€!€!
go and try it really works
check out my blog for more: http://business-model-design.blogspot.com
upcomingBusinessModelInnova3onBook
thank you for your attention!
Jeff Ryan r000pert midorisyu
Denis Martin Philippe Starck
Apple MySpace Rotman School
Nokia
proprietary images
all other images: iStockphoto