The document provides an overview of business model innovation by describing various components of a business model template including infrastructure, offer, customer relationships, revenue streams, and costs. It also provides examples of companies that have innovated their business models such as Cemex, Goldcorp, Skype, and others. The document emphasizes the importance of understanding one's current business model, discussing improvements, and implementing changes to enable business model innovation.
12. offers distribution client
channels segments
personal banking
your client
consulting
your offers your channels
network executives
segments
banking dedicated banking
knowledge website professionals
training
program
13. partner client
suppliers follow-up
network relationship
sell waste
water build
core water Canadian
treatment core activities
treatment sales force
capabilities treatment mining sites
knowledge systems
system
production one time
costs
costs sales fee
14. suppliers follow-up
call center
water build total waste water
error free Canadian
treatment dispatch
treatment treatment sales force
systems mining sites
knowledge repair teams
systems management
development
variable costs
production recurring
of repair
costs service fee
services
15. business model template
INFRASTRUCTURE OFFER CUSTOMER
PARTNER CUSTOMER
NETWORK RELATIONSHIP
CORE VALUE TARGET
CAPABILITIES PROPOSITION CUSTOMER
VALUE DISTRIBUTION
CONFIGURATION CHANNEL
COST FINANCE REVENUE
STRUCTURE STREAMS
http://business-model-design.blogspot.com
16. the basics of
identifying and
improving business
models
17. 1. describe it 2. discuss it 3. improve it 4. implement it
19. 1% 18%
Strategy
300%
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Development plan
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38. partners client
relationship
cement delivered
on time
core fleet cement by
activities during time channels builders
competencies
delivery management cubic meter
window
revenue
costs
streams
57. Goldcorp
“geology prize” CUSTOMER
500’000 $US RELATIONSHIPS
exploiting CUSTOMER
mining
mines SEGMENTS
DISTRIBUTION
research
CHANNELS
low costs through REVENUE
open exploration STREAMS
Goldcorp publicly shared all of its geological data and
offered US$ 500’000 in prizes for determining where they
might find the next 6 million ounces of gold
60. Skyp
e
“eBay” website
deliver voice & free VoIP & value global
video quality added services (non segmented)
software
internet
development
software large scale
development low margin
free voice-over-IP VoIP telephony &
value-added services
61. 1291 Cityhomes low-cost hotel/rental in New York City
young
curious
Swiss
CUSTOMER
RELATIONSHIPS
apartment
owners
keep down
low cost
costs renting out DISTRIBUTION the cost
accommodation
rooms CHANNELS sensible
New York
find demand
low cost rents
62. Tecnovate
“import” young
curious CUSTOMER
Europeans to RELATIONSHIPS
India to work
low-cost multi-
keep down ACTIVITY lingual call DISTRIBUTION European
costs CONFIGURATION center CHANNELS corporations
outsourcing
REVENUE
low cost
STREAMS
business process outsourcing “up-side down” in India
64. PARTNER CUSTOMER
NETWORK RELATIONSHIP
INFRASTRUCTURE CUSTOMER
mobile network regular ad
CORE OFFER
CAPABILITIES operator that messages via
“rents out” mobile phone
increasing the capacity to Blyk VALUE TARGET
number of mobile PROPOSITION CUSTOMER
phone users with DISTRIBUTION
FREE advertising the young and the
the right profile to CHANNEL
supported mobile hip
increase the VALUE
telephony subscribers fill
value for CONFIGURATION
advertisers out profile on the advertisers
finding and access to a pool Internet
contracting of targeted young
advertisers advertising public
sales force
marketing to
mobile users with
an interesting
advertising profile
paying mobile
phone minutes
FINANCE
marketing
COST advertising fees
STRUCTURE
REVENUE
STREAMS
66. INFRASTRUCTURE OFFER CUSTOMER
PARTNER CUSTOMER
NETWORK RELATIONSHIP
CORE VALUE TARGET
CAPABILITIES PROPOSITION CUSTOMER
VALUE DISTRIBUTION
CONFIGURATION CHANNEL
COST FINANCE REVENUE
STRUCTURE STREAMS
a business model describes the value an organization offers to
various customers and portrays the capabilities and partners
required for creating, marketing, and delivering this value and
relationship capital with the goal of generating profitable and
sustainable revenue streams
67. describing a company’s business model
INFRASTRUCTURE PARTNER CUSTOMER CUSTOMER
NETWORK RELATIONSHIP
OFFER
CORE TARGET
portrays the network of explains the
CAPABILITIES cooperative relationships a
CUSTOMER
agreements with other VALUE company establishes
companies with its customers
outlines the capabilities PROPOSITION
describes the
required to run a
customers a company
company's business
wants to offer value to
model DISTRIBUTION
VALUE gives an overall view of
CONFIGURATION a company's bundle of CHANNEL
products and services
describes the channels
describes the to communicate and
arrangement of get in touch with
activities and resources customers
sums up the monetary describes the revenue
consequences to run a COST FINANCE REVENUE streams through which
business model STRUCTURE STREAMS money is earned
68. describing a company’s offer
OFFER
VALUE
PROPOSITION
value proposition 1
value proposition 2
…
69. describing who a company offers value to
OFFER CUSTOMER
VALUE TARGET
PROPOSITION CUSTOMER
value proposition 1 target customer 1
value proposition 2 target customer 2
… …
70. describing how a company reaches its customers
OFFER CUSTOMER
VALUE DISTRIBUTION TARGET
PROPOSITION CHANNEL CUSTOMER
value proposition 1 distribution channel 1 target customer 1
value proposition 2 distribution channel 2 target customer 2
… … …
71. describing the relationships a company builds
OFFER CUSTOMER
VALUE CUSTOMER TARGET
PROPOSITION RELATIONSHIP CUSTOMER
value proposition 1 relationship type 1 target customer 1
value proposition 2 relationship type 2 target customer 2
… … …
72. describing how a company makes money
OFFER FINANCE CUSTOMER
VALUE REVENUE TARGET
PROPOSITION STREAM CUSTOMER
value proposition 1 revenue stream 1 target customer 1
value proposition 2 revenue stream 2 target customer 2
… … …
73. describing what capabilities are required
INFRASTRUCTURE OFFER
CORE VALUE
CAPABILITIES PROPOSITION
core capability 1 value proposition 1
core capability 2 value proposition 2
… …
74. describing what activities are required
INFRASTRUCTURE OFFER
CORE VALUE VALUE
CAPABILITIES CONFIGURATION PROPOSITION
core capability 1 activity 1 value proposition 1
core capability 2 activity 2 value proposition 2
… … …
75. describing the partners that leverage the business model
INFRASTRUCTURE OFFER
CORE PARTNER VALUE
CAPABILITIES NETWORK PROPOSITION
core capability 1 partner 1 value proposition 1
core capability 2 partner 2 value proposition 2
… … …
76. describing the costs of a business model
INFRASTRUCTURE FINANCE OFFER
CORE COST VALUE
CAPABILITIES STRUCTURE PROPOSITION
core capability 1 cost account 1 value proposition 1
core capability 2 cost account 2 value proposition 2
… … …
Editor's Notes
http://www.flickr.com/photos/mgdtgd/134803926/ Creative Commons – Attribution Share Alike License everyone's idle Alchemy (www.wikipedia.org) The common perception of alchemists is that they were pseudo-scientists, who attempted to turn lead into gold, believing that the universe was composed of the four elements of earth, water, fire, air, and spent most of their time concocting miraculous remedies, poisons, and magic potions. Most alchemists were well-meaning and intelligent men and distinguished scientists, such as Isaac Newton and Robert Boyle. These innovators attempted to explore the nature of chemical substances and processes. They had to rely on experimentation, traditional know-how, rules of thumb and speculative thought in their attempts to uncover the mysteries of the physical universe. At the same time, it was clear to the alchemists that "something" was generally being conserved in chemical processes, even in the most dramatic changes of physical state and appearance; that is, that substances contained some "principles" that could be hidden under many outer forms, and revealed by proper manipulation. Throughout the history of the discipline, alchemists struggled to understand the nature of these principles, and find some order and sense in the results of their chemical experiments—which were often undermined by impure or poorly characterized reagents, the lack of quantitative measurements, and confusing and inconsistent nomenclature.
http://www.flickr.com/photos/timalamenciak/479780770/ CC Attribution-ShareAlike License Tim Alamenciak
Toronto, Ontario's Goldcorp Inc. launched the Internet gold rush… http://www.innovation.gc.ca/gol/innovation/stories.nsf/veng/ss01056e.htm http://www.businessweek.com/innovate/content/feb2007/id20070201_774736_page_2.htm http://www.fastcompany.com/magazine/59/mcewen.html By the mid-1990s, Rob McEwen, Chairman and CEO of Toronto's Goldcorp Inc., was convinced that there was more gold to be found in his company's Red Lake Mine, despite expert opinions to the contrary. Located near Balmertown, Ontario, the mine had been in production since 1948, but was a small, costly and capital-starved operation with a very uncertain future. For Red Lake Mine to survive, big changes were required. Therefore in February 1995, Goldcorp launched a US$7-million exploration program, the most aggressive in its history. Forty-five days later, Goldcorp's geologists made a significant gold discovery at the bottom of the Red Lake Mine and shattered the accepted geological model for the area. Over the next three years, Goldcorp's exploration efforts continued to meet with success. The discovery revealed a deposit that was large enough to be economically mined, despite the fact that the price of gold had fallen to a 20-year low.For McEwen, the big questions were: "How big is this deposit?" and "How long will it take to find out?" To answer these questions, Goldcorp's geologists held a two-day brainstorming session. The open sharing of ideas focussed the exploration efforts. Greatly encouraged by the positive results, McEwen wanted to engage a larger community of experts in a much greater brainstorming session: the "Goldcorp Challenge."For this competition, Goldcorp publicly shared all of its geological data from the past 52 years and offered US$500 000 in prizes for determining where they might find the next 6 million ounces of gold at the Red Lake Mine, regardless of whether gold was found. "I wanted to tap into the intellectual capital of the mining industry and focus it with laser-like precision on our Red Lake Mine," says McEwen. "In this way, I could speed up exploration and improve the odds of discovery."Entry forms were made available via the Internet, with on-line virtual prospecting seen as the fastest and most cost-effective way to run the competition. A CD-ROM package was sent to applicants to allow them access to a valuable proprietary on-line geological database, as well as software to analyse and depict the data graphically in two and three dimensions.Goldcorp's open source code approach to exploration was unprecedented in the worldwide mining industry, where confidentiality and secrecy about reserves and exploration data are the norm. Goldcorp's transparency exposed it to possible industry criticism or rejection of its geological methodology and calculations, and could also have prompted a takeover bid. McEwen, however, believed that the benefits of sharing data — the rapid acquisition of knowledge — would outweigh the risks. The Goldcorp Challenge proved to be a resounding success, attracting 475 000 hits to the Web site and 1400 entries from individuals, corporations, domestic and foreign government geological agencies and universities from 50 countries. The exploration proposals that Goldcorp received identified 110 drilling targets, 50 percent of which were new prospects. The winning entry was a collaboration by two rival groups from Australia: Fractal Graphics, in West Perth, and Taylor Wall and Associates, in Queensland, who had developed a powerful three-dimensional graphic depiction of the mine. Mark O'Dea (Canada) took second place, while George Langstaff (U.S.) and Alexander Yakubchuk (Russia) tied for third.So far, Goldcorp has struck gold on four of the top five targets generated by this process. Today, Goldcorp's Red Lake Mine is considered the richest gold mine in the world with a reserve grade (concentration of gold) of 2.1 ounces per ton of rock. It produces gold at a cost of $60 per ounce, which makes it one of the five lowest-cost gold producers in the world. McEwen notes, "The winners were able to analyse a large, complex database in a short period of time and generate targets without ever visiting the property. It's clear that this process is part of the future."In September 2000, Business Week magazine named Goldcorp one of the 50 most innovative companies on the Web. In February 2002, Fast Company magazine named Goldcorp one of its "Fast 50: Champions of Innovation" based on a worldwide survey of its readers. In March 2002, BHP Billiton of London, England, the world's largest mining company, announced at the Prospectors and Developers Association of Canada conference that it had employed the "Goldcorp principle" to accelerate its own exploration effort.