what is your business model?
Post on 17-Oct-2014
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We talk so much about product and service innovation yet the success of traditional innovation is dwarfed by business model innovation. This slide deck is a summary of the class delivered by Brandito on 2 July 2013 & was tailored to entrepreneurs, start-ups and stagnating businesses. The class looked at the modern business landscape and the importance of a value proposition framework as a lead-in to business model generation. Visit www.brandito.com.au for more upcoming classes.TRANSCRIPT
Start-Up Series:What is Your Business Model
#brandito
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about meMoby SiddiqueDigital Marketing & Business Strategist
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about brandito & netsquaredConsultancy, Classes & Short (1-2 day) Courses in: Digital
Marketing, Business Strategy
NetSquared = social good meets technology & digital
Brandito.com.au /BranditoInc@BranditoInc
Meetup.com/NetSquared-Sydney/@Net2Sydney
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Agenda1. The Modern Business Landscape.
i. Big Data & the problem of choice.ii. The Humanisation of Business.
2. “Innovate or Die”3. Business Model Innovation.4. Identify Your Value Proposition.5. Creating your Business Model.6. Class work7. Q&A
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The Modern
business Landscape
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Our ability to create information has far exceeded our ability to manage it.
Big Data, Big Problems
“Every two days now we create as much information as we did from the dawn of
civilisation up until 2003”- Eric Schmidt, Google CEO
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The Problem of Choice
With so many choices options to choose from people find it very difficult to choose at all.
Paralysis is a consequence of having too many choices.
Jam-theory: less perceived sense of choice & increased sense of simplicity = increased adoption rate.
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Traditional marketing has lost its efficacy because of
the consumers’ bullshit radar is high
we don’t listen as much as we think we do
Listen & respond, build context of a relationship
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the humanisation of business
Humanisation = ‘out-caring’ competitors- Gary Vaynerchuk
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Kodak Cameras: 6 minutes p/avg. mention
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Innovate or Die: the innovation imperative
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Over 40% of the companies that were at the top of the Fortune 500 in 2000 were no longer there in 2010
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pwc findings on australian start-ups
Start-up sector expected to contribute $109 billion or 4% of GDP to the Australian economy by 2033 - PWC
“Australia already has one of the most favourable environments for entrepreneurship. There is no better time to be an entrepreneur.”
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What is
business model innovation
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definition: business model innovation
Business Model Innovation is the invention of new ways of doing business, with the aim to provide new and/or increased value for the customers, the company itself and its stakeholders.”
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business model best practice: apple
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business model best practice: nespresso
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what are the similarities?
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(4) key characteristics of bmi
1Product alone was not enough to succeed
Product was only enabled through the business model
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(4) key characteristics of bmi
2They didn’t nor could copy from their competitorsThey invented new business models with their own switching costs
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(4) key characteristics of bmi
3They couldn’t prove in advance that the models would work
They had to take some level of risk and experiment.
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(4) key characteristics of bmi
4No competition, no existing value proposition to develop
They created new needs customers didn’t even know existed.
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customers can only give you “symptoms” not always the solution
Steve Jobs on total market research done
for the iPad:
“None, It isn’t the consumers’ job to know
what they want.”
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What is your
value proposition
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what is your ‘why’
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The Golden Circle- Simon Sinek
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Creating
your business model
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the business model canvas
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Alexander Osterwalder, PhD28
the canvas is visual
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building blocks 9
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images by JAM
customer segments
key partners
cost structure
revenue streams
channels
customer relationships
key activities
key resources
value proposition
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BusinessModelGeneration.com/canvas32
KEYPARTNERS
ValueProposition
CHANNELS
CUSTOMER RELATIONSHIPS
CUSTOMERSEGMENTS
REVENUE STREAMSCOST STRUCTURE
KEYACTIVITIES
KEYRESOURCES
Nespresso’s 1987 Model
officesNespressosystem
joint venture with machine manufacturer
machine manufacturer
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class activity: cirque du soleil
Background on Cirque
Cirque du Soleil is “a dramatic mix of circus arts and street
entertainment.”
Eliminated animals which reduced upkeep and
maintenance.
Target theatre and opera visitors; higher prices
Created themes, multiple productions, artistic music and
dance
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think like an architect with your business model
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#branditoq&a
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