v.camp: Business Model Development & Innovation (P)Re-Think Your Business Model Introduction Dr. Uli Eisert

Transcription

1 v.camp: Business Model Development & Innovation (P)Re-Think Your Business Model Introduction Dr. Uli Eisert

2 Relevance & Objectives mindset process team Business Model Development & Innovation

3 The Business Model Development & Innovation Approach When and Why to be Used? New product (or service) mindset New business model (BM) Existing product (with limited success) process team Business Model Development & Innovation Improved BM Adapted BM Ensure / optimize economical viability. for all kinds of products based on the appropriate BM 2013 SAP AG. All rights reserved. 3

4 BMDI Complements Existing Innovation Approaches with a Focus on Economic Viability for the Optimal Solution Design Thinking (Lean) Software Engineering Business Model Development & Innovation (BMDI) 2013 SAP AG. All rights reserved. 4

5 Business Models: Definition & Description mindset process team Business Model Development & Innovation

6 Business Model Definition 1 The business model abstracts the complexity of a company (or business unit) by reducing it to its core elements and their interrelations. Thus, it specifies the core business logic, in particular aspects relevant for its competitive advantage. 2 The business model describes how value is created, delivered and captured SAP AG. All rights reserved. 6

7 Business Model Description Network View Partner Network Customer Network Competition My Company My Customers My Partners My Competition 2013 SAP AG. All rights reserved. 7

8 Business Model Description Enterprise View How? What? Who? Value Creation Competition Value Capture Why? My Company My Customers My Partners My Competition 2013 SAP AG. All rights reserved. 8

9 Enterprise View = Osterwalder Canvas Sources: (A. Osterwalder / Y. Pigneur) 2013 SAP AG. All rights reserved. 9

10 A Well-Known Example: McDonald s Network View Partner Network Customer Network Competition Brand / Licence Pizza restaurant Service Providers Products/Equipment Concept Franchisees Services Brand awareness Spreading the brand Fast food Coffee culture (Mc Café) Fast food Branded Suppliers Branded Products Quality food products Fast food Coffee culture (Mc Café) Consumers Sandwiches Coffee culture Local Suppliers My Company My Customers My Partners My Competition 2013 SAP AG. All rights reserved. 10

11 A Well-Known Example: McDonald s Enterprise View Branded Suppliers Standardized processes Efficient supply chain & logistics Brand-focused marketing Consumers: ONE global customer experience Fast Food / Coffee Culture Experience Franchisees: Global Brand & Marketing Consumers: Brand, Loyalty Programs, Family Attractions Franchisees: (Longterm) contracts Consumers Local Suppliers Brand Franchising concept Stable quality Equipment, Recipes, Furniture, Layout, Support provided Consumers: Shops, Advertising, Coupons Franchisees: Direct Cannel Franchisees Service Providers Low -wages High efficiency and stability Economies of scale Low-wages Direct revenue from consumers Brand allows for price premium from Franchise Restaurants (Profit Share, Fees) My Company My Customers My Partners My Competition 2013 SAP AG. All rights reserved. 11

12 Extensions of the Network View Specifics of Complex Business Models Multi-sided business models: These models only work, if it s ensured that each entity in the customer network receives sufficient value as an incentive for participation. Business models with network effects: These models only work, if it s understood where and why network effects occur and how they have to be leveraged to build and sustain critical mass. Alliances: These models only work, if the joint business model as well as all the individual ones make sense from the stakeholders point of view. My Company My Customers My Partners My Competition 2013 SAP AG. All rights reserved. 12

13 Behind the Value Proposition is Your Product What You Want to Accomplish with Your Value Proposition Your Product or Service should be developed in a way that you: Address the customer needs to the largest possible extend Customer Segment Competitor Group Maximize your unique value proposition (by leveraging your unfair advantages) Minimize the competitors unique value proposition (by circumventing their unfair advantages) Your Unique Value Proposition Common Value Proposition Me Your Competitors Unique Value Proposition This has to be done per customer segment (and competitor group, if necessary) Your Overall Value Proposition My Company My Customers My Partners My Competition 2013 SAP AG. All rights reserved. 13

14 Business Model Development & Innovation: Approach, Process & Methods mindset process team Business Model Development & Innovation

15 Business Model Development & Innovation Our Definition and Approach An iterative process resulting in a suitable business model adding economic value to the company. Current Business Model or Baseline Influencing Factors Future Business Model Innovation / Transformation Verification Analysis Piloting Execution & Scaling Design 2013 SAP AG. All rights reserved. 15

16 Business Model Development & Innovation An Iterative Approach Not A Sequential Process Iterations can be done in the sequence and to the extend that is required by the individual project. Analyze & Improve Challenge & Change Test & Verify Evaluate & Decide 2013 SAP AG. All rights reserved. 16

17 Business Model Development & Innovation Diverge & Converge Along All Iterations Diverge Converge Baseline Appropriate, Validated Business Model Create Choices Make Choices 2013 SAP AG. All rights reserved. 17

18 Thank You! Contact information: process mindset team Business Model Development & Innovation