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June 19, 2015
Multi Business Model Innovation STRATEGY Dr. René Rohrbeck Professor of Strategy
BUSINESS MODEL INNOVATION DR. RENE ROHRBECK
PROFESSOR OF STRATEGY
June 19, 2015
WHAT IS Multi Business Model Innovation Strategy
SLIDE 2
Product Innovation
Rat
e of
Inno
vatio
n
Need Stimulated
BM 1
Time
BUSINESS MODEL INNOVATION DR. RENE ROHRBECK
PROFESSOR OF STRATEGY
June 19, 2015
WHAT IS Multi Business Model Innovation Strategy
SLIDE 3
Product Innovation
Processinnovation
Rat
e of
Inno
vatio
n
Time
Technology Stimulated
Cost Stimulated
Need Stimulated
Output Rate Stimulated
BM 2 BM 1 BM 3+
Need Push
Servitization
Emotionalization
...
BUSINESS MODEL INNOVATION DR. RENE ROHRBECK
PROFESSOR OF STRATEGY
June 19, 2015
Multi Business Model Innovation Strategy WHY IT MATTERS
SLIDE 4
› Globalization of B2C and B2B markets
› Reinventing mature industries
› Create a market-of-one
1
2
3
5
Increase of 600%
on household spending on coffee
BUSINESS MODEL INNOVATION DR. RENE ROHRBECK
PROFESSOR OF STRATEGY
June 19, 2015 6
NESPRESSO’S BUSINESS MODEL Key partnerships
Key activities
Key resources
Value proposition
Customer relationships
Customer segments
Channels
Revenue streams Cost structure
Own stores, webpage, call center
Affiliate stores, web (Amazon)…
1 x Machine (license income)
Capsule distribution Marketing
Marketing
Nespresso Club
Product development/
Production
Brand
Households
Businesses
N x capsules
Production and Distribution
Machine Manufacturer
Machine Distributors
Coffee
Patents & Production
facilities
Capsules Both Machines
Many different flavors
Cheap machines
High quality coffee
Exclusivity through club
Later Sense of belonging
Convenience
BUSINESS MODEL INNOVATION DR. RENE ROHRBECK
PROFESSOR OF STRATEGY
June 19, 2015
Multi Business Model Innovation Strategy WHY IT MATTERS
SLIDE 7
› Globalization of B2C and B2B markets
› Reinventing mature industries
› Create a market-of-one
1
2
3
BUSINESS MODEL INNOVATION DR. RENE ROHRBECK
PROFESSOR OF STRATEGY
June 19, 2015
Mascot has extended its business model and its value proposition
SLIDE 8
https://www.youtube.com/watch?v=OtxD34DBnlo
BUSINESS MODEL INNOVATION DR. RENE ROHRBECK
PROFESSOR OF STRATEGY
June 19, 2015
The pay-off Innovation effort
Source: Keeley, Larry (2006) VHA Research Series, The power of innovation. Doblin.
Business Model Innovation
Innovating your business model THE BENEFITS
BUSINESS MODEL INNOVATION DR. RENE ROHRBECK
PROFESSOR OF STRATEGY
June 19, 2015
Innovating your business model HOW TO
SLIDE 10
Map you business model
Re-invent through e.g. analogies
Probe and adjust
Keypartnerships
Key,activities
Key,resources
Valueproposistion
Customerrelationships
Customer,segments
Channels
Revenue,streamsCost structure
Recordlables
OEMs
iTunesSoftware
iPodHardware
AppleBrand
Marketing
Musicexperience
Individua-
lism
Unique
Switchingcost
AppleStores
Retail
iTunesstore
Emloyees
ProductionMarketing &
Sales
Hardware
salesMusic sales
Massmarket
Hardware-
Design
Externalexperts
apple.com
Life-style Ease ofuse Sense ofbelonging
Keypartnerships
Key,activities
Key,resources
Valueproposistion
Customerrelationships
Customer,segments
Channels
Revenue,streamsCost structure
OEMs
iPodHardware
AppleBrand
Marketing
Musicexperience
AppleStores
Retail
Emloyees
ProductionMarketing &
Sales
Hardware
sales
Massmarket
Hardware-
Design
apple.comBuilding Block T
Key Partners Key Activities Value Propositions Customer Relationships
Customer Segments
Cost Structure Revenue Streams
Key Resources Channels
Building Block A Building
Block N Building Block O
Building Block D
Building Block S
Building Block H
Building Block C
Building Block K
Building Block U
Building Block J
Bilding Block R
Building Block V
Building Block G
Building Block F
Building Block M
Building Block L Building
Block Q
Building Block B
Building Block E
Building Block P
green Available/realistic yellow Uncertain/to be developed red Not available/show stopper
BUSINESS MODEL INNOVATION DR. RENE ROHRBECK
PROFESSOR OF STRATEGY
June 19, 2015
And remember: Permit time to find the winning business model!
SLIDE 11
1998
2001
BUSINESS MODEL INNOVATION DR. RENE ROHRBECK
PROFESSOR OF STRATEGY
June 19, 2015
Thank you for your interest!
Dr. Rene Rohrbeck Professor of Strategy Dept. of Business Administration Aarhus University Email: [email protected] Web: http://rene-rohrbeck.de Blog: http://futureorientation.net
