Capgemini Consulting provides expertise in business innovation and transformation. They use an Innovation Framework to map out the innovation lifecycle and an Innovation Management Framework to outline key building blocks. Their approach involves challenging existing innovation strategies using scenarios, assessing innovation portfolios' impact on business models and technology, and accelerating projects' value creation. They also help clients align business models within their value chains through integration.

1. Realizing Business Value Growth
Business Innovation Approach
Capgemini Consulting is the strategy
and transformation consulting brand
of Capgemini Group

2. The life cycle of innovations is represented in the Innovation Framework ...
Innovation Management Framework gives a high-level overview of the innovation
management building blocks
Innovation
Target & Scope Creativity Invention Commercialization
Strategy
Focus areas within the
Definition of organization gate gate
Innovation
Strategy Topic 1
Idea Review of ideas / Idea utilization
• Identify and generation investment opportunities
Topic 2
pursue trends Rejected
• Corporate • List of Proposed ideas
positioning Topic 3 • Decide on ideas to be Future candidates
reviewed in detail
• Partner • Further review
strategy • Prioritization & funding Commercialized
Performance Rewarding
measures
Communication & Enablement
... And providing a shared view on Innovation Management to understand your
innovation management

3. Our Generic Business Model has a central position in our Innovation Offerings
Resources Offer Customer
Cocreation
Key Activities Relation
Partner Network Key Resources Value Proposition Channels Segments
Cost Structure PROFIT Revenu Streams
Performance
Source: Adapted from Alexander Osterwalder, Business Model Generation, a handbook for visionaries, game changers & challengers (working title, to be published August 2009)
22-09-2009

4. We use the Business Model Canvas to describe and assess the key drivers
within a Business Model
Business Model Canvas
KEY KEY VALUE CUSTOMER CUSTOMER
PARTNERS ACTIVITIES PROPOSITION RELATION SEGMENTS
What key activities do What kind of relations
you need to perform do your client expect
and how easily can you and which kind do you
What can partners do to do this? Which of you maintain? What are your
leverage your business customer’s problems do customer’s needs,
model (better, at lower you solve and which problems, desires, and
cost)? KEY needs are satisfied? ambitions?
RESOURCES CHANNELS
What key resources Through which means
does your business do your clients want to
model require? be reached and which
means do you utilize?
COST REVENUE
STRUCTURE STREAMS
What is the cost structure of your business What value are your customers willing to
model and is this in line with the core pay for and what is the preferred payment
values of the business model? mechanism?
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5. We apply our Innovation Services on strategic, tactical, and operational level
within a firm as well as cross-firm within the Value Chain
Introduction
Implications for Implications for
Within Company
suppliers clients & channels
Strategical level Strategical level Strategical level
Partnership I Client & channel
requirements Challenging the innovation strategy requirements
Tactical level Tactical level Tactical level
II Innovation Portfolio Management & Client & channel
Partner selection
Business Model Impact selection
Operational level Operational level Operational level
Partnership III Innovation Project Client & channel
management Value Acceleration management
IV
Business Model Innovation within the Value Chain
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6. Table of contents
Content
Innovation Services
I. Challenging the innovation strategy
II. Innovation Portfolio Management & Business Model Impact
III. Innovation Project Value Acceleration
IV. Business Model Innovation within the Value Chain
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7. The innovation strategy is challenged using the outside world with its trends as
a staring point to create various scenarios
I. Challenging the innovation strategy
Scenarios Factors
The use of various trends….
high
Bѐta
Epsilo • Mega trends
n
Alpha Delta • Consumer trends
Gam
ma
• Technology trends
Zѐta • Industry trends
…sets the challenges to overcome based on
Trend Impact
impact & likelihood…
local Economy Economy global • Position in Value Chains
• Current Business Model
• Attractiveness to potential customers
…and determine the need for:
Kapp
Iota a • New applications
Thѐta
Ѐta • New products and services
• New Business Models
low
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8. Our Innovation Portfolio method assesses the impact per innovation initiative
in terms of Business Model, Technology, and Strategic Contribution & Value
II. Innovation Portfolio Management & Business Model Impact
Based on the contribution to Business Drivers and Value Creation the
initiatives that deliver most of the strategic objectives are highlighted
• Input from corporate strategy
I. Alignment with Business Drivers & Value Creation
I. Alignment with Initiatives
Alpha
Growth Market
Business Drivers
Market Share Revenue stream
Value Creation
Business Case Contribution
• Validation against strategic goals & objectives
Beta
business drivers Delta
Gamma
Does the initiative contribute to a
growth of the total market volume?
Epsilon
Zeta
Is it plausible to appropriate a
Does the project generate new
revenue streams?
and value creation • Assessment of Business Case potential
Eta
percentage of the market growth
that is in line with strategic targets?
Theta
Iota
Kappa
19-6-2009 5
Business Model Canvas
KEY VALUE CUSTOMER CUSTOMER
PARTNERS KEY ACTIVITIES PROPOSITION RELATION SEGMENTS
• Detailed Business Model Canvas per initiative
What key activities do What kind of relations
II. Business Model
you need to perform do your client expect
and how easily can you and which kind do you
What can partners do to do this? Which of you maintain? What are your
leverage your business customer’s problems do customer’s needs,
model (better, at lower you solve and which problems, desires, and
cost)? KEY needs are satisfied? ambitions?
RESOURCES CHANNELS
• Sharpening around (key) building blocks
What key resources Through which means
per initiative
does your business do your clients want to
model require? be reached and which
means do you utilize?
COST REVENUE
STRUCTURE STREAMS
What is the cost structure of your business What value are your customers willing to
model and is this in line with the core pay for and what is the preferred payment
values of the business model? mechanism?
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Plotting the changes in a 2x2 matrix provides insight and direction for
balancing the portfolio in levels of innovativeness
• Assessment of degree of change on Business Model & Technology
Impact on Business Model & Technology
III. Impact on Current Innovation Portfolio Target Innovation Portfolio
high
high
• Validation against previous experiences
Alpha Gamma Alpha Gamma
business model &
Iota Iota
Radical Business Model
Epsilon Epsilon
Technological
Technological
Beta Beta
Change
Change
Delta Delta
• Estimation of capability presence
Zèta Zèta
technology Thèta
Incremental Business Model
Thèta
low
low
low high low high
Business Model Business Model
Change Change
17-6-2009 9
The portfolio overview plots the initiatives in terms of predicted attractiveness,
ability to execute and impact
• Based on previous phases distinct between various initiatives based
Build the portfolio
Attributes Innovation Candidates Portfolio
The following attributes can be used to identify candidate
IV. Build the
innovations:
high
 Expected market growth. Alpha Bèta Gamma
 Expected margin improvement.
on the portfolio logic
Attractiveness Iota
Delta
Epsilon
Kappa
Thèta
Attractiveness
 Technological change.
portfolio
medium
Ability to execute  Business Model change.
 Required investments. Zèta
• Assess attractiveness, ability to execute, and impact
 Expected revenues.
Impact
Bubble size indicates
expected revenues
low
(Impact)
low medium high
Ability to execute
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After the innovation candidate portfolio has been identified, analyzing and
framing it allows for ranking and prioritization of the candidates
• Ranking & Prioritization based on portfolio logic
Conclusions & Recommentations
Innovation Portfolio Analysis Ranking
V. Recommendations
 Rank and prioritize the identified innovation
opportunities with regard to:
high
 Expected impact in terms of revenue.
• Based on ranking determine: out of focus, opportunities, mature
Alpha Bèta Gamma
 Attractiveness of the market in terms of future
Iota growth and margin improvements.
Delta
Opportunities Priorities  Ability to actually execute the innovation
Epsilon opportunity.
Kappa
Thèta
Attractiveness
& Conclusions
medium
Zèta  Mapping the innovation opportunities in a 2x2-portfolio
matrix allows for identifying:
 Priorities: top candidates for resource allocation.
Currently out  Opportunities: innovation candidates with
offerings, and priorities
Mature Offerings attractive future market developments or
of Focus specific strategic value.
Bubble size indicates
expected revenues
 Mature Offerings: innovations for which
low
(Impact) capabilities to execute them exist or can be
easily sourced / developed.
low medium high  Currently out of Focus: not interesting to focus
Ability to execute on at this point in time.
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9. With our Value Acceleration approach we improve an innovation initiative’s
value creation throughout it’s life cycle
III. Innovation Project Value Acceleration
Results
Invent Engage Exploit & Refresh
I Reduce the required investment
• Identify synergies with other Business
Models
• Identify possibilities for partnerships
Break-even
Point III
II Reduce the time-to-market
• Time the market entry to ideal moment
• Speed up by creating synergies with
other Business Models
I
II III Increase value creation
• Create value ramp-up after launch
• Lengthen value generation time based
on the Business Model Evolution
Roadmap
Enable & Manage
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10. Business Model Innovations requires an integration, forward or backward, in
the Value Chain; therefore Business Models of value Chain Partners need
alignment
IV. Business Model Innovation within the Value Chain
KEY KEY VALUE CUSTOMER CUSTOMER KEY KEY VALUE CUSTOMER CUSTOMER KEY KEY VALUE CUSTOMER CUSTOMER
PARTNERS ACTIVITIES PROPOSITION RELATION SEGMENTS PARTNERS ACTIVITIES PROPOSITION RELATION SEGMENTS PARTNERS ACTIVITIES PROPOSITION RELATION SEGMENTS
KEY KEY KEY
RESOURCES CHANNELS RESOURCES CHANNELS RESOURCES CHANNELS
COST REVENUE COST REVENUE COST REVENUE
STRUCTURE STREAMS STRUCTURE STREAMS STRUCTURE STREAMS
Backward Business Model Integration Forward Business Model Integration
Establish fluid partnerships Build one-on-one customer experience
Attracting required capabilities Continuous interaction with customer to fulfill needs
Sourcing for activities & resources Utilizing new channels to connect to clients
Business Model Innovation within the Value Chain creates a flexible network structure
to set a new customer experience and grow business value
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11. Koen Klokgieters
Vice President Business Innovation
+31 6 511 23 259
koen.klokgieters@capgemini.com
Koenklokgieters-english.blogspot.com
Capgemini Consulting is the strategy
and transformation consulting brand
of Capgemini Group
22-09-2009