service experience 2013: i'll meet you at the business model
DESCRIPTION
In many organizations, design and business co-exist as distinct silos. For too many new concepts, once the visionary phases of ideation and prototyping are done, the project is handed off to a business strategy team to grind out the details of execution. However, a whole world of possibilities opens up when designers—and their way of thinking—become an integral part of the business strategy and execution process. In October 2013, Jessica Dugan and Peer Insight CEO Tim Ogilvie had the pleasure of presenting at Adaptive Path's SX Service Design Conference in San Francisco. Tim and Jessica show designers how the methods they already know by heart—visualization, prototyping, co-creation, and iteration—are essential to forming novel business models and executing new concepts in the market. With a bit of new vocabulary, designers can meet their business-trained colleagues as equals in the shared task of entrepreneurship. No MBA required.TRANSCRIPT
TIM OGILVIE @peerinsight JESS DUGAN @jess_dugan
www.peerinsight.com
We’re an innovation consulting firm. we partner with visionary leaders who want to explore new services, new markets and new business models.
We unite design thinking and analytics in the cause of entrepreneurship.
CUSTOMER DESIRABILITY
Do users want it?
ECONOMIC VIABILITY
Does it scale profitably?
TECHNICAL FEASIBILITY
Can we deliver it reliably?
EMPATHIZE VISUALIZE
ITERATE CO-CREATE
value proposition
PRIMARY USER
FOR (target)
WHO WANT (unmet need)
WE WILL OFFER(offering)
THAT PROVIDES (benefits)
UNIQUELY (differentiation)
business model prototype
WHAT WOULD HAVE TO BE TRUE?
REVENUES
COSTS
MINUS
EQUALS
PROFITS
Refine, re-assess, and test againITERATE3
Prototype and test the business model VISUALIZE AND CO-CREATE2Formulate a value propositionEMPATHIZE AND VISUALIZE1
• Reverse Income Statement• Value network/revenue model
• Identify make-or-break assumptions
• Create a learning plan• Test the assumptions
REVERSE INCOME STATEMENT
business model prototype
WHAT WOULD HAVE TO BE TRUE?
REVENUES
COSTS
MINUS
EQUALS
PROFITS
value proposition
PRIMARY USER
FOR (target)
WHO WANT (unmet need)
WE WILL OFFER(offering)
THAT PROVIDES (benefits)
UNIQUELY (differentiation)
Drivers and fleet managers of independent fleets (truck + car) We can acquire customers affordably
• Convert existing accounts • Win new accounts
We can achieve < 5% churnWe can (through a partner) procure + install a feedback device affordablyWe can serve accounts for a lower total cost than we do today
$200m
$210m
$40m (20%)
Support in developing safe driving habits
A real-time feedback system
Increased safety and reduced operating costs
Through proprietary analytics and effective behavior modification interventions
REVERSE INCOME STATEMENT
BUSINESS MODEL CONFIGURATION
THOUGHT EXPERIMENTS
2D AND 3DIN-MARKET
EXPERIMENTS(includes simulation)
4DIN-MARKET
EXPERIMENTS(persist for days
or weeks)
make-or-break assumptions learning plan
revenue modelvalue network and go-to-market model
DEMAND CHAINSUPPLY CHAIN
BLOCK
BRING
BUILD
OFFERINGBUY
CUSTOMER ACQUISITION CHANNEL REVENUE MECHANISM
www.peerinsight.com
TIM OGILVIE @peerinsight JESS DUGAN @jess_dugan
p e e r i n s i g h tSX a t t e n d e e s
Oc t . 3
T h a n k s! t w e e t @
p e e r i n s i gh t w i t h y o u
r g ra t i t u de