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© 2015 Orange Hills TM GmbH. All rights reserved. BUSINESS MODEL INSPIRATOR Team Date Iteration 1 2 3 Design your business in your browser | http://www.rapidmodeler.de Business Design GAME | Playing seriously with innovation Wii écurie25 Gillette Spotify ARM Print-in-a-box BackWerk Pampers The Body Shop Shimano Harley Davidson Bosch Vorwerk Tupperware Würth JCDecaux Tchibo Tetra Pak MyMuesli Tieto MyFab Pebble Hardinge Porsche InnoCentive Local Motors Allianz Pinterest Groupon Ponoko Zara Priceline IBM Running Sushi Ibis Xerox CWS boco Ford Threadless Geberit Boost your brand Innovate your delivery Expand your offerings Design for customer needs Make offerings more attractive Modify value chain The “Business Model Inspirator” has been designed to fuel your imagination and unleash your creativity helping to improve your business model in Business Design projects. Start by identifying the challenges you have in your current business model and find examples illustrating alternative ways of conducting your business in order to succeed. Please use our “Business Model Pattern Cards” if you need more information on how to apply a certain example to your specific situation. ARM License ARM focuses on the development of micro- processors, selling the concept as a license to manufacturers. This way, ARM can focus on its core R&D competence, whilst delegating the risk of selling processors to its customers. Print-in-a-box White label Print-in-a-box allows clients to easily open their own printing- online-shop by taking care of production and delivery, allowing them to rebrand its services. Print-in-a-box makes great profit by remaining unknown. BackWerk Franchising BackWerk has developed a very successful concept of bakery shops. Instead of growing organically, BackWerk offers prod- ucts, value creation systems and a strong brand to third parties to conduct business under their umbrella. Wii Blue ocean By introducing the motion stick, the Wii offers a game experience superior to other videogame consoles. By doing things drastically different, the Wii was able to target untapped occasional gamers and to create more revenue. Gillette Lock-in Gillette offers innovative blade holders cheaply, whilst selling expensive blades. The attractive basic offer attracts many customers to join the “system” and forces them to buy high-priced supplements later on. Spotify Freemium Offering free access to music, Spotify attracted more than 60 million users. By 2015, 25% decided to upgrade to a paying membership with premium features, creating great revenues, while costs remained the same. écurie25 Fractionalised ownership By buying membership to a fleet of expensive cars, écurie25 customers can drive luxury cars, which they otherwise could not afford. As such, untapped customers could be targeted, by fractionalis- ing the ownership. Tchibo Cross selling At a certain point, Tchibo’s customers could simply not consume more coffee. By starting to sell non-food prod- ucts, Tchibo could leverage its loyal customer base to tap into new business arenas. Tetra Pak Solution provider Tetra Pak realised quite soon that the complexity of packaging and deliver- ing food and beverages overwhelmed its clients. Therefore, Tetra Pak offers a full solution for the duration of their products life cycle. JCDecaux Market creator Outdoor advertisement surfaces are a scarce resource. By giving communities free street furniture, such as bus stops, JCDecaux expanded its offering by creating its own premium advertisement spaces. Tieto Customer as partner To spur on sales of customised IT services, Tieto invites customers to short problem-solving workshops. As side effect, the high involvement helps them turn custom- ers into partners to support the selling process of the solution. Geberit Push-to-pull Geberit decided to cut out intermediaries in the value chain by talking directly to their custom- ers, involving their feedback in early stages of their product develop- ment. This results in products, which meet the customer's demand. MyMuesli Mass customisation At MyMuesli.de, custom- ers can assemble the ingredients for their Muesli, resulting in countless muesli combi- nations. MyMuesli tailors their product to customer needs despite a high level of standardisa- tion. Ford No frills Ford reduced its cars features to the bare minimum, enabling it to offer cars at half the usual price. This lean value proposition attracts particularly price sensitive customers as well as entirely new customer segments. CWS boco Rent instead of buy CWS boco’s customers rent professional cloth- ing instead of buying them. The company’s service, including pick-up, delivery and professional treatment of the textiles, makes the customer’s life easier. Threadless Customer integration Threadless customers decide, which new t-shirt will be offered every week. By letting custom- ers decide in advance what they would buy, Threadless ensures great sales volume with little over-production. IBM Open business Instead of actively developing operating systems, IBM supported the open source system Linux. Opening its value chain reduced IBM’s R&D costs by 80% and boosted its server business significantly. Xerox Printer customers are afraid of initial invest- ment and do not want to spend time on making sure their printers work. Therefore, Xerox charges per page printed, guaran- teeing printing infrastruc- ture and supply. Pay-per-use Ibis Ibis Budget replaced receptionists with computer-supported check-ins, outsourcing one part of the value creation to their custom- ers. By passing the savings on to the guests, Ibis is able to create a very attractive offer. Self-service Priceline Priceline’s customers can choose a travel-related offer and indicate how much they would be willing to pay for it. By letting travel suppliers compete for the job, Priceline makes great profit as the intermediary platform. Reverse auctioning MyFab MyFab customers vote for product ideas and pay upfront to finance the production. By charging customers early and paying suppliers late, MyFab improves its cash flow, resulting in lower capital costs. Cash machine Pebble Lacking working capital, Pebble asked its future customers to fund the development of their innovative watch, which has the capacity to read sms and emails. The campaign raised ten million Euros in the first two hours. Crowd funding Zara Instead of outsourcing its production to developing countries, Zara produces in Europe and highly integrates its value chain. This allows Zara to react quickly to customer demand. Integrator Allianz Facing high competition for innovation, Allianz created the “digital accelerator”. This business incubator hub supports start-ups with promising ideas to innovate Allianz’s solutions for its custom- ers. Incubator Hardinge Hardinge’s business is to transform raw material into finished tools. Their business was very vulnerable to economic crises due to high fixed costs. Thus, the company outsourced manufactur- ing to adjust the fixed to variable cost ratio. Fixed to variable Bosch In DIY stores, customers have a hard time figuring out, which products offer the best quality / price ratio. Therefore, Bosch established dedicated sales areas in DIY stores to have full control over the point-of-sale. Shop-in-shop Local Motors Instead of investing into the R&D of a new car, Local Motors outsourced this task to engineers from all over the world. With only 3% of usual development costs, the car reached break-even aſter only two years. Open R&D InnoCentive InnoCentive outsources R&D to the “crowd” by offering attractive awards to people who find innovative solutions to business, scientific, social and technical challenges. Crowdsourcing Pinterest Pinterest allows users to share pictures of interest- ing products with their friends. The firm lever- ages this peer-to-peer communication by linking the pictures to web pages of partners selling the products in the photos. Affiliation Shimano Struggling to differenti- ate from other bicycle brake suppliers, Shimano directly advertised their brakes to cyclist. This has put great pressure on bicycle manufacturers to equip their bikes with Shimano products. Ingredient branding Harley Davidson Harley Davidson fans do not buy bikes, they buy freedom. By emotionaliz- ing their bikes, Harley Davidson reached a level whereby their customers attribute a far higher value to their bikes than the objective value. Selling emotions The Body Shop The Body Shop spends nearly no money on advertisement. They create their “story” by opposing animal testing and defending human rights. By doing these things, they differentiate themselves drastically and build popularity. Subcategory Vorwerk Vorwerk’s customers might find it tough to buy a vacuum cleaner in a shop, as they cannot test it. That is why Vorwerk’s sales agents come to their homes to demon- strate its products. Direct selling Tupperware Tupperware uses relationships among its customers to sell more by letting hosts organize Tupperware parties. Friends and neighbours have a fun evening, whilst a salesman presents the newest products. Sales amongst friends Würth Following the “digitalisa- tion of things” trend, Würth’s toolboxes automatically order new screws when a critical level is reached. This service is simply too comfortable for custom- ers to switch. Automatisation Pampers Pampers gives free swaddling bands to hospitals, which pass them on to parents of newborns. By leveraging the relationship of trust between doctors and parents, Pampers creates a positive brand reputa- tion. Trust intermediate Groupon Groupon offers its users attractive discounts for restaurants, when enough people sign up. The restaurants benefit from high customer traction, while Groupon gets 50% of revenues generated by their users. Revenue sharing Ponoko Rather than producing itself, Ponoko enables its customers to create and sell products to their peers. Ponoko only needs to maintain the platform, while their users carry most business risk. User enabling Porsche To ensure the quality of its cars, Porsche main- tains an expensive, but under fulfilled R&D department. To improve its finances, Porsche offers surplus of R&D capacities to third parties. Leverage resources “Innovation is not always about coming up with the next big idea. It is about combining existing ideas and parts in a new way.” Saul Kaplan Business Model Inspirator Whom to offer How to create How to deliver What to offer All-you-can-eat restau- rants offer more food than someone could eat. Customers believe they offer a good deal, while spending more than the average consumption among all guests would cost. Flat rate Running Sushi Create new customer base Rethink your positioning Reshape your R&D Leverage your users Improve profit formula Download our template to visualise business models here: http://bit.ly/UHYzra Orange Hills TM GmbH | www.orangehills.de | Follow us on Twitter: @orangehillsgmbh

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  • 2015 Orange HillsTM GmbH. All rights reserved.

    BUSINESS MODEL INSPIRATOR Team DateIteration 1 2 3

    Design your business in your browser | http://www.rapidmodeler.deBusiness Design GAME| Playing seriously with innovation

    Wii

    cur

    ie25

    Gille

    tte

    Spot

    ify

    ARM

    Print-

    in-a-b

    ox

    BackW

    erk

    Pampers

    The Body Sho

    p

    Shimano

    Harley Davidson

    Bosch

    VorwerkTupperware

    WrthJCDecauxTchibo

    Tetra Pak

    MyM

    uesli

    Tieto

    MyFab

    Pebble

    Hardinge

    PorscheInnoCentiveLocal MotorsAllianz

    Pinterest

    Groupon

    Ponoko

    Zara

    Priceline

    IBM

    Runnin

    g Sush

    i

    Ibis

    Xero

    x

    CWS b

    oco

    Ford

    Thre

    adle

    ss

    Gebe

    rit

    Boostyour brand

    Inno

    vate

    your

    de

    liver

    y

    Expand

    your

    oering

    sDesign for customer

    needs

    Make oerings

    more attractive

    Modifyvaluechain

    The Business Model Inspirator has been designed to fuel your imagination and unleash your creativity helping to improve your business model in Business Design projects. Start by identifying the challenges you have in your current business model and find examples illustrating alternative ways of conducting your business in order to succeed.

    Please use our Business Model Pattern Cards if you need more information on how to apply a certain example to your specific situation.

    ARMLicense

    ARM focuses on the development of micro-processors, selling the concept as a license to manufacturers. This way, ARM can focus on its core R&D competence, whilst delegating the risk of selling processors to its customers.

    Print-in-a-boxWhite label

    Print-in-a-box allows clients to easily open their own printing-online-shop by taking care of production and delivery, allowing them to rebrand its services. Print-in-a-box makes great profit by remaining unknown.

    BackWerkFranchising

    BackWerk has developed a very successful concept of bakery shops. Instead of growing organically, BackWerk oers prod-ucts, value creation systems and a strong brand to third parties to conduct business under their umbrella.

    WiiBlue ocean

    By introducing the motion stick, the Wii oers a game experience superior to other videogame consoles. By doing things drastically dierent, the Wii was able to target untapped occasional gamers and to create more revenue.

    GilletteLock-in

    Gillette oers innovative blade holders cheaply, whilst selling expensive blades. The attractive basic oer attracts many customers to join the system and forces them to buy high-priced supplements later on.

    SpotifyFreemium

    Oering free access to music, Spotify attracted more than 60 million users. By 2015, 25% decided to upgrade to a paying membership with premium features, creating great revenues, while costs remained the same.

    curie25Fractionalised ownership

    By buying membership to a fleet of expensive cars, curie25 customers can drive luxury cars, which they otherwise could not aord. As such, untapped customers could be targeted, by fractionalis-ing the ownership.

    TchiboCross selling

    At a certain point, Tchibos customers could simply not consume more coee. By starting to sell non-food prod-ucts, Tchibo could leverage its loyal customer base to tap into new business arenas.

    Tetra PakSolution provider

    Tetra Pak realised quite soon that the complexity of packaging and deliver-ing food and beverages overwhelmed its clients. Therefore, Tetra Pak oers a full solution for the duration of their products life cycle.

    JCDecauxMarket creator

    Outdoor advertisement surfaces are a scarce resource. By giving communities free street furniture, such as bus stops, JCDecaux expanded its oering by creating its own premium advertisement spaces.

    TietoCustomer as partner

    To spur on sales of customised IT services, Tieto invites customers to short problem-solving workshops. As side eect, the high involvement helps them turn custom-ers into partners to support the selling process of the solution.

    GeberitPush-to-pull

    Geberit decided to cut out intermediaries in the value chain by talking directly to their custom- ers, involving their feedback in early stages of their product develop- ment. This results in products, which meet the customer's demand.

    MyMuesliMass customisation

    At MyMuesli.de, custom-ers can assemble the ingredients for their Muesli, resulting in countless muesli combi-nations. MyMuesli tailors their product to customer needs despite a high level of standardisa-tion.

    FordNo frills

    Ford reduced its cars features to the bare minimum, enabling it to oer cars at half the usual price. This lean value proposition attracts particularly price sensitive customers as well as entirely new customer segments.

    CWS bocoRent instead of buy

    CWS bocos customers rent professional cloth-ing instead of buying them. The companys service, including pick-up, delivery and professional treatment of the textiles, makes the customers life easier.

    ThreadlessCustomer integration

    Threadless customers decide, which new t-shirt will be oered every week. By letting custom-ers decide in advance what they would buy, Threadless ensures great sales volume with little over-production.

    IBMOpen business

    Instead of actively developing operating systems, IBM supported the open source system Linux. Opening its value chain reduced IBMs R&D costs by 80% and boosted its server business significantly.

    Xerox

    Printer customers are afraid of initial invest-ment and do not want to spend time on making sure their printers work. Therefore, Xerox charges per page printed, guaran-teeing printing infrastruc-ture and supply.

    Pay-per-use

    Ibis

    Ibis Budget replaced receptionists with computer-supported check-ins, outsourcing one part of the value creation to their custom-ers. By passing the savings on to the guests, Ibis is able to create a very attractive oer.

    Self-service

    Priceline

    Pricelines customers can choose a travel-related oer and indicate how much they would be willing to pay for it. By letting travel suppliers compete for the job, Priceline makes great profit as the intermediary platform.

    Reverse auctioning

    MyFab

    MyFab customers vote for product ideas and pay upfront to finance the production. By charging customers early and paying suppliers late, MyFab improves its cash flow, resulting in lower capital costs.

    Cash machine

    Pebble

    Lacking working capital, Pebble asked its future customers to fund the development of their innovative watch, which has the capacity to read sms and emails. The campaign raised ten million Euros in the first two hours.

    Crowd funding

    Zara

    Instead of outsourcing its production to developing countries, Zara produces in Europe and highly integrates its value chain. This allows Zara to react quickly to customer demand.

    Integrator

    Allianz

    Facing high competition for innovation, Allianz created the digital accelerator. This business incubator hub supports start-ups with promising ideas to innovate Allianzs solutions for its custom-ers.

    Incubator

    Hardinge

    Hardinges business is to transform raw material into finished tools. Their business was very vulnerable to economic crises due to high fixed costs. Thus, the company outsourced manufactur-ing to adjust the fixed to variable cost ratio.

    Fixed to variable

    Bosch

    In DIY stores, customers have a hard time figuring out, which products oer the best quality / price ratio. Therefore, Bosch established dedicated sales areas in DIY stores to have full control over the point-of-sale.

    Shop-in-shop

    Local Motors

    Instead of investing into the R&D of a new car, Local Motors outsourced this task to engineers from all over the world. With only 3% of usual development costs, the car reached break-even aer only two years.

    Open R&D

    InnoCentive

    InnoCentive outsources R&D to the crowd by oering attractive awards to people who find innovative solutions to business, scientific, social and technical challenges.

    Crowdsourcing

    Pinterest

    Pinterest allows users to share pictures of interest-ing products with their friends. The firm lever-ages this peer-to-peer communication by linking the pictures to web pages of partners selling the products in the photos.

    Ailiation

    Shimano

    Struggling to dierenti-ate from other bicycle brake suppliers, Shimano directly advertised their brakes to cyclist. This has put great pressure on bicycle manufacturers to equip their bikes with Shimano products.

    Ingredient branding

    Harley Davidson

    Harley Davidson fans do not buy bikes, they buy freedom. By emotionaliz-ing their bikes, Harley Davidson reached a level whereby their customers attribute a far higher value to their bikes than the objective value.

    Selling emotions

    The Body Shop

    The Body Shop spends nearly no money on advertisement. They create their story by opposing animal testing and defending human rights. By doing these things, they dierentiate themselves drastically and build popularity.

    Subcategory

    Vorwerk

    Vorwerks customers might find it tough to buy a vacuum cleaner in a shop, as they cannot test it. That is why Vorwerks sales agents come to their homes to demon-strate its products.

    Direct selling

    Tupperware

    Tupperware uses relationships among its customers to sell more by letting hosts organize Tupperware parties. Friends and neighbours have a fun evening, whilst a salesman presents the newest products.

    Sales amongst friends

    Wrth

    Following the digitalisa-tion of things trend, Wrths toolboxes automatically order new screws when a critical level is reached. This service is simply too comfortable for custom-ers to switch.

    Automatisation

    Pampers

    Pampers gives free swaddling bands to hospitals, which pass them on to parents of newborns. By leveraging the relationship of trust between doctors and parents, Pampers creates a positive brand reputa-tion.

    Trust intermediate

    Groupon

    Groupon oers its users attractive discounts for restaurants, when enough people sign up. The restaurants benefit from high customer traction, while Groupon gets 50% of revenues generated by their users.

    Revenue sharing

    Ponoko

    Rather than producing itself, Ponoko enables its customers to create and sell products to their peers. Ponoko only needs to maintain the platform, while their users carry most business risk.

    User enabling

    Porsche

    To ensure the quality of its cars, Porsche main-tains an expensive, but under fulfilled R&D department. To improve its finances, Porsche oers surplus of R&D capacities to third parties.

    Leverage resources

    Innovation is not always about coming up with the next big idea. It is about combining existing ideas and parts in a new way.

    Saul Kaplan

    Business Model

    Inspirator

    Whom to oer

    How

    to cr

    eate

    How

    to d

    eliv

    er

    Whatto oer

    All-you-can-eat restau-rants oer more food than someone could eat. Customers believe they oer a good deal, while spending more than the average consumption among all guests would cost.

    Flat rate

    Running Sushi

    Create new customer base

    Rethink

    your

    positioningRe

    shap

    eyo

    ur

    R&D

    Leve

    rage

    your

    user

    s

    Improve

    profit

    formula

    Download our template to visualise business models here: http://bit.ly/UHYzra

    Orange HillsTM GmbH | www.orangehills.de |Follow us on Twitter: @orangehillsgmbh