business models for alliander
Post on 17-Oct-2014
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DESCRIPTION
Presentation held for the Hafslund Alliander workshop in AmsterdamTRANSCRIPT
A1 / open seating
BUSINESS MODEL INNOVATION
UNKNOWN
Innovation common understanding
”A nearly universal obstacle for innovation success is that people have pervasive misunderstandings about what innovation is, where it comes from, and even how to define, measure, foster, or reward it. With fundamentals like these all up for grabs, it's amazing that innovation ever occurs.”
Jay Doblin (1920-89)
2
”Innovation is the process of creating and delivering new customer value in the marketplace.”
Carlson & Wilmot
”The ability of individuals, companies, and entire nations to continously create their desired future.”
John Kao
3
e Art of Implementing Ideas
96% fail
Why are so few companies innovative?
They all dream about hot new products….
Offerings
Delivery Process
Business Model
Solutions
Channels Organizing/ Enabling
Market segments
A palette of opportunities
Volume of innovation activities last decade
Strategic concepts
Products/services Solutions
OFFERINGS
Brand/Design Channels Customer Experience
DELIVERY
Sourcing/ Distribution
Core process
Organizing/ Eanbling
PROCESS
Network/ Alliances
Market segments
Revenue streams
BUSINESS MODEL
Innovation dimensions
Less than 2% of the innovation activities creates 90% of the value.
OFFERINGS DELIVERY PROCESS BUSINESS MODEL
Innovation dimensions
Strategic concepts
Products/services Solutions Brand/Design Channels Customer
Experience Sourcing/
Distribution Core
process Organizing/
Eanbling Network/ Alliances
Market segments
Revenue streams
A sole focus on traditional strategy works:���Todays market and competitors determine our future focus…
RED OCEAN
The Battle of decreasing margins
By also focusing on the strategic innovation works:���New opportunities based on future needs – outside todays red ocean – centered around the core competence.
BLUE OCEAN
Create new markets without a challenge from competitors
Innovation driven by the company´s core competence, throughout dimensions, where competitors are doing little or nothing at all
(Høy 2006)
STRATEGIC INNOVATION
A classic smart grid roll out
1. Technology Validate and test.
Risk management
2. Operating model Efficiency and stabilize
processes
3. Business models Experimenting with new products and services based upon customer insights and technology innovations
TIME
VA
LUE
CR
EA
TION
What is a
business model
and why is it
important?
Business models Hafslund / Alliander
A business model describes ���the rationale of how an organization ���creates, delivers and captures value
A couple of well known models…
http://www.businessmodelgeneration.com http://www.businessmodelalchemist.com http://alexosterwalder.com http://ch.linkedin.com/in/osterwalder
BUSINESS MODEL CANVAS
CUSTOMER RELATIONSHIP
CHANNELS
REVENUE STREAMS
COST STRUCTURE
CUSTOMER SEGMENTS
KEY ACTIVITIES
KEY PARTNERS
VALUE PROPOSITION
KEY RESOURCES
Business model generation (2010) – Alex Osterwalder
1. CUSTOMER SEGMENTS
CUSTOMER SEGMENTS
For whom are we creating value? Who are our most important customers?
Customer groups represent separate segments if: • Their needs require and justify a distinct offer • They are reached through different Distribution Channels • They require different types of relationships • They have substantially different profitabilities • They are willing to pay for different aspects of the offer
OFFERINGS DELIVERY BUSINESS MODEL
Products/services
Customer Experience
Market segments
Where is the great market segment – not being served today? (who are NOT our customers? And why?)
2. VALUE PROPOSITION
VALUE PROPOSITION
What value do we deliver to the customer? Which one of our customer’s problems are we helping to solve? Which customer needs are we satisfying? What bundles of products and services are we offering to each Customer Segment?
Social lending
OFFERINGS DELIVERY PROCESS BUSINESS MODEL
Solutions Channels Customer Experience
Sourcing/ Distribution
Network/ Alliances
Revenue streams
How could a utility company get 20% of a normal household budget? (what related services could we take responsibility for?)
3. CHANNELS
CHANNELS Through which Channels do our Customer Segments want to be reached? How are we reaching them now? How are our Channels integrated? Which ones work best? Which ones are most cost-efficient? How are we integrating them with customer routines?
News bulletin15 Dec 2011 – Amazon has sold at least three million Kindles in the past three weeks. Every forth sold book is an eBook…
8 ways of selling a book
1. Publisher (old school) 2. Free book (as a market tool for other services) 3. Co-written book (sold through social networks) 4. On demand (printed whenever someone wants it) 5. Online book (a book as a website) 6. Do it yourself (amazon advantage) 7. Sponsored book (advertising) 8. Tailored book (commissioned work)
4. CUSTOMER RELATIONSHIP CUSTOMER RELATIONSHIP What type of relationship does each of our Customer
Segments expect us to establish and maintain with them? Which ones have we established? How costly are they? How are they integrated with the rest of our business model?
is is your usual LEGO user…right?
Well…
11 page cover story in Wired Magazine
OFFERINGS DELIVERY PROCESS
Solutions Customer Experience
Organizing/ Eanbling
5. REVENUE STREAMS
REVENUE STREAMS
For what value are our customers really willing to pay? For what do they currently pay? How are they currently paying? How would they prefer to pay? How much does each Revenue Stream contribute to overall revenues?
Freemium business model Spotify@Spotify We’re excited to announce that we’ve now welcomed 2.5 million paying subscribers. Thanks everyone!
All the music – all the time
Products/services
OFFERINGS
Channels Customer Experience
DELIVERY
Sourcing/ Distribution
PROCESS
Market segments
Revenue streams
BUSINESS MODEL
6. KEY RESOURCES
KEY RESOURCES
What Key Resources do our Value Propositions require? Our Distribution Channels? Customer Relationships? Revenue Streams?
Strategic concepts
OFFERINGS
Organizing/ Eanbling
PROCESS
Network/ Alliances
BUSINESS MODEL
7. KEY ACTIVITIES
KEY ACTIVITIES
What Key Activities do our Value Propositions require? Our Distribution Channels? Customer Relationships? Revenue streams?
Products/services
OFFERINGS
Channels Customer Experience
DELIVERY
Sourcing/ Distribution
PROCESS
Market segments
Revenue streams
BUSINESS MODEL
Core process
8. KEY PARTNERSHIPS
KEY PARTNERS
Who are our Key Partners? Who are our key suppliers? Which Key Resources are we acquiring from partners? Which Key Activities do partners perform?
Ryanair
Solutions
OFFERINGS
Customer Experience
DELIVERY
Organizing/ Eanbling
PROCESS
Network/ Alliances
BUSINESS MODEL
9. COST STRUCTURE
COST STRUCTURE
What are the most important costs inherent in our business model? Which Key Resources are most expensive? Which Key Activities are most expensive?
Rolls Royce was known for manufacturing and selling high quality products with marginal earnings (ROI was usually 17 years)
They came up with a new business model that sells hours of flight instead of engines and parts Today this is 50% of sales and 80% of earnings
Solutions
OFFERINGS
Sourcing/ Distribution
PROCESS
Market segments
Revenue streams
BUSINESS MODEL
Unlock future SMART GRID business models
CO-LAB WORKSHOP
Our common challenge���Explore key insights to unlock new business
opportunities and future business models for
Hafslund and Alliander.
WHAT IF?
Best practise Next practise
What if we challenged the dominant logic? What if we compare our business model with other players in our business… what makes us unique/different? What if we think different on who our customers are? And what we´re offering them? What if we think different about our sales channels? Are there alternatives? And what about the customer relationships? Could we do it differently? What if there are other ways of generating revenue streams? And so on….
Best practise Next practise
