applied business development ibcdp 6 – 2011-06-15 matti kaulio royal institute of technology (kth)...
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Applied Business Development
IBCDP 6 – 2011-06-15
Matti Kaulio Royal Institute of Technology (KTH)Dept. of Industrial Economics and Management, [email protected]
Matti Kaulio
• Associate professor, - Dept. Of Industrial Management and
Economics, Royal Institute of Technology (KTH).
• Research interest: - Technology Management and Organizational
Behaviour
• Ongoing research:- Leadership in technology-intensive organizations- Management of Strategic Alliances- Swedish-Chinese collaboration in the Automotive
Industry
Applied Business Development and the Business Case
• Applied Business Development (ABD) is a lecture stream aiming to develop the students abilities:- To act entrepreneurial within a firm in order to create new
businesses and/or develop existing ones
• ABD consists of Lectures and Business Case Work is to enhance Business Development Skills among the course participants.
• The Business Case is primary a learning tool for integration of theories, methods and models, however, if the findings presented can lead to a real business this is positive, but not a requirement.
… in other words
•How will the new business opportunities look like in your industry?
•How can we develop competencies that are crucial in order to reach these opportunities?
Four lectures which follows the F2F modules
•Strategic awarness
•Understanding Business Environments
•Adding Value (Service Design)
•Service Production & Launch
•“Making it Happen” & Examination
”Innovation”
”Ipad is a bad computer, I cannot imagine that it will substitute the usual computer”
Anssi Vanjoki, SvD 20100919
If I would have asked the customer what they wanted – the answer would have been ”faster horses”. Henry Ford
Market and Technology Evolution:Past – Present – Future?
Generative Network•New Industry Entrants•Converging Tech., Industries & Businesses
“Open” Network•Deregulation•Competiton•IP-based Tech.
Propritarian Network•Market monopoly•Switch-based Tech.
Telcom – an Emerging Technology?
EmergingTechnology
Adapted from Day and Schoemaker 2000
IndustryHow will the (emerging) competitive landscape look like?
InfrastructureWhat infrastructure will be present in the future that supportes the emerging technology?
MarketHow should we interpret the ambiguous market signals?
TechnologyWhat are the technological trends and uncertainties related to those?
Challenges for established firms facing Emerging technologies
•Past success has developed core competencies, however those can in a new situation become core ridgidities
•Character of emerging technologies: Uncertianties, ambiguity and a possible potential that is too big too ignore
•First mover advantage vs Fist mover (dis)advantage
•Underestimation of Non-industry competitors (horizontal competition)
The Telcom Industry - The Players
Service and Content Providers
OperatorsEnd users
(B2B and B2C)TelcomVendors
Subsystem and Component
Manuf
Hand set and Computer
Manuf.
Regulators andStandardization
What to do?
•Business intelligence, Openness and Diverse View points
•Challenger the Prevailing Mind-Set
•Experiment Continually
•Organizational Separation
•Cannibalize Yourself
Adapted from Day and Schoemaker 2000
ABD and a theory of learning
Experiment/experience
Theorizing
ReflectionConclusions/Implications
Kolb, 1984)
Adapted from the Venture Cup handbook
http://www.venturecup.se/graphics/user/vc_swe/vc_swe_files/vc_swe_handbok/Handbook%20english.pdf
Executive Summary
Offering Risks FinanceImplemen-
tation
TechnicalFeasibility / Assessment
Business System
Marketing
Executive Summary
Offering Risks FinanceImplemen-
tation
TechnicalFeasibility / Assessment
Business System
Marketing
Application selection:PSO analysis Appendix
Market analysis:SegmentationMarket estimations5-forces, PEST
Service DesignCustomer Interaction MapValue Network
Business Model
Launch strategy
Homeworkassignments
Finance
Lectures
The Business Model I
C
ORRevenue
model
BS
Costs Costs
Costs
Value Propositions
Business Concept
Customers
Offering
BusinessSystem
Source: Based on SIAR Normann, 1977, & Dr. Tommy Bergkvist, Strategic Management Institute, modified
The Business Model II
C
O
BS
Customers
Offering
BusinessSystem
Source: Based on SIAR Normann, 1977, & Dr. Tommy Bergkvist, Strategic Management Institute, modified
Market = The Set of Actual and PotentialCustomers
− Products− Services− Bundles
Value Chain
Value Co-creation (multi-actor)− Value Star− Value Network
The Business Model III
C
O
BS
Customers
Offering
BusinessSystem
External
Internal
Source: Based on SIAR Normann, 1977, & Dr. Tommy Bergkvist, Strategic Management Institute, modified
”World of Business”
”World of Management”
Tra
nsf
orm
ati
on P
roce
ss
The Business Model IV
C
O
BS
Customers
Offering
BusinessSystem
Source: Based on SIAR Normann, 1977, & Dr. Tommy Bergkvist, Strategic Management Institute, modified
External ”Fit”
Doing the right things
Internal ”Fit”
Doing things right
Efficiency
Effectiveness
Example: Reflection on Customer Value
•Coffe beans (from producers) <0,01 /cup
•Roasted, branded & packaged 3 EUR/pkg
•One cup of coffe (Machine) 1 EUR/cup
•”Latte” in Stockholm city 3,5 EUR
•Espresso Piazza San Marco, Venezia 14 EUR
24
Problem-Segment-Offering (PSO) model
An identified market - Segment
The Problem/need a customer face
”Offering” and Revenue Model
An identified market - Segment
The Problem/need a customer face
”Offering” and Revenue Model
Problem: Gap between a current state and an (unspoken) future state
Offering: The Product Service and Price model
Segment: Identifiable, similar needs, reachable and react in the same way on marketing activities
Pricing
Total for 3 PassengersFare Price 6.00 SEKInfant Fee 182.00 SEKAirport Check-in Fee 174.00 SEKSEK Web Baggage Fe 112.00 SEKCredit card fee 174.00 SEKSEK Priority Board 168.00 SEKSEK Web Baggage Fe 560.00 SEKTaxes, Fees & Charges 528.00 SEK InsuranceTotal Price 1,904.00 SEK
Revenue Models
• Producer model• Broker model• Consultancy model• Performance-based model• The TelCom model/combination model (fixed cost +
opening cost + variable cost; opening fee + downloaded data)
• The TechTrade model: Licenciering + royalty• The ”Gilette” model• The ”Drug Dealer” model• The ”Gore-Tex model”• The ”Adobe” model• The ”Singer” model• The Construction Industry model• ”Free” models
”Free” models
Type of free What’s free Free for whom Example (s)
Direct cross-subsidies
A product that makes you buy something else
Everyone willing to pay
Buy one – get one for free, Charge for something else (like Ryanair)
Three-party market Content, SW, services, etc Everyone Advertisers (3rd party) pay for access to audience (consumer) through paying for products (producer) Ex: Google and Metro
Freemium Anything matched with a premium version
Basic users Spotify / Spotify Premium, Flickr / Flickr Pro, Multiple iStore apps
Non-monetary markets
Anything anybody wants to give away without expected payment
Everyone Wikipedia, Musicians promoting themselves
Purpose
•The purpose of this group assignment is to train ”divergent thinking” as well as be able to formulate potential offerings.
Assigmnent and deliverable
Assignment:Make an divergent analysis of your case topic. That mean that
you should develop a few (3-5) different possible applications, analyze and characterized them, and when you meet in the next module be prepared to chose one of these applications to continue with.
DeliverablesHand in: A report including a comparison of generated possible
applications. The report is written in Power Point and covers the ssigmnemnt, description of your research findings, description of 3-5 PSO offerings and a summarizing table
The report should be written in and handed in no later than on the 24st of June.
Application selection: WWGD
Group A and D ”Payment and paying”Case
Group 1 and 4 ”Google Medica” alternativeHow can an search application for a medical purpouse look like? It could focus on private life (family or individual), or foucus on professinal useds (doctors, for example c.p. google.scholar).
Group 2 and 5 ”Google Wallet”How can an transaction application look like? Private life/business life; specific applications
Group 3 and 6 ”Google Wave”How can an application look like that should rationalize individual and group working processes and practices? C.p. ”Wave”
Process
1. Do research: What similar applications exists? What are their offerings? Etc. Use internet and other sources
2. Redflect upon the findings
3. Generate alternatives: Develop 3-5 new PSO descriptions of new applications
4. Summarize your findings in a power Point Presentation where your potential applications are presented in text and in a table- do not select which application to continue work with! This is a task för the next F2F module
5. Before leaving today you should have showed your preliminary applications for the coaches
6. Coaches will be walking around bewteen the groups. They should be seen as resources for your work.
Criteria for a ”good” application
• Technology-Product gap product or service composed of existing and/or new technology
• Unique customer value? (reduce/add)• Market potential – revenue• Market protential – growth• Related to TeliaSonera’s business
• NOTE: In your case it is not impiortant that your business case fits in TeliaSoneras product portfolio. However, it need to be related.
To be continued. . .
•Six conference rooms in Sing-Sing are avaliable•Work on all your three assignments
- Finish competence inventory and work agreement (prel)- Continue with ABD – application generation and Dinner
18.00
•Continue after Dinner•Coaches will meet your team during the evening•You need to show 3-5 alternative PSO:s to the coaches
before you leave today!