We need new boxes to think in. We have to learn to unlearn and learn new boxes to think in. Not products should be in your focus but the job-to-be-done you solve for your customers. Besides new boxes we need a design like process where we plan our learning and experimentation process and not the result. Learn and execute faster with new boxes to think in and a business design process to fill the boxes. Presentation at the Leadership Revolution Conference by AI Group, 1. Sept. 2015, Melbourne
8. 1
Beyond optimization of the past
We have to unlearn the
past and rethink our
business from the
customer perspective
If you do not do it, others will
9. Do we really need
somebody to tell us when
we have to watch a show?
10. Or do we want to hear
from Peter, what he thinks
on US credit rating?
24. „Wow, I have invented the future of
advertising. We do not need any videos
or pictures or even color anymore.
The future will be a text ad with maximal
95 characters.
It‘s brilliant, isn‘t it?
Would you havedared to saythis?
25. Instead of looking for
better products, Google
Adwords brought back
relevance to the ad
industry
26. 3
Don’t optimize the past, invent the future
If you don’t think from your
customers’ perspective and
their jobs-to-be-done,you will
be exterminated
27. product/services happy customers
creates
X
value proposition
solves
delivered by
business model
The customer perspective: Technology does not create value. It
is the value proposition the customer loves
customer’s job-to-be-done
addressed
by
30. Or do we need a place
with people in order
to connect to the
place like at AirBnB?
31. Customer job to be done
We do not need a hotel. We
need an accommodation plus
extras like connecting to
people. That are the jobs-to-
be-done.
Customers hire a product or
service to get a job done. The
products are a means to an
end, not an end in themselves.
The value proposition
creates the value for
the customer, not the
product!
32. Value Proposition
The job-to-get-done is
solution neutral. The job is to
provide accommodation plus
extra benefits like connecting
to people.
Potential solution:
§ 3* hotel
§ Formule 1 Hotel
§ AirBnB (accommodation
plus connection to people)
§ friend that life in the city
It is of uttermost
importance to
understand the core
job we solve for our
customers
33. 4
It’s not the product alone that creates value
The value proposition has
to be delivered by the
whole business model
37. 4 key questions for a successful business:
What excites
our
customers?
Value Proposition
How do we
create value
for our
customers?
Value Architecture
How do we
earn money?
Revenue Model
Who is our
team?
What values
do we
pursue?
Team & Values
38. Value
Proposition
Customer
• Who is our
customer?
• What job do we
solve for them?
Value
• What value do we
create for our
customers? What
value do we create
for our partners?
What excites our customer?
39. Value
architecture
Offer
• What is our offer?
Distribution &
Communication
Channels
• How do we reach
our customers?
• How do we
communicate with
our customers?
How do we create the value?
Value Chain
• What activities do
we have to do to
produce our offer?
• How does our
value chain look
like?
Partner
• What partners do
we need?
Core Capabilities
• What are the core
capabilities we
need?
40. Revenue
Model
Cost Structure
• Cost structure is
defined by your
value architecture.
Revenue Sources
• With what do we
earn money?
How do we earn money?
41. Team &
Values
Team
• Who is our team?
• What
competencies do
we have in our
team?
Values
• What values do we
life in our team?
• How do we
interact with each
other and with
customers?
Who is on our team? What values do we live?
42. Customers
Who are our customers?
What job do we solve for our
customers?
Customer Benefit
What benefit do we create for our
customers?
What benefit do we create for our
partners?
Offer
What is our offer?
Value Chain
What are our value creating steps?
What is our value chain?
Core Capabilities
What are the core capabilities
we need?
Distribution & Communication
Channels
How do we reach our customers?
How do we communicate with
our customers?
Partner
Which partners do we need?
Questions for a Successful Business Model
Cost Structure
Cost structure is defined by the
value architecture.
Revenue Sources
With what do we earn money?
Team
Who is on our team?
What competencies do we have
on the team?
Values
What values do we pursue?
How do we interact with each other
and the customers?
Revenue Model
Team & Values
Value PropositionValue Architecture
43. Customers
Who are our customers?
What job do we solve for our
customers?
Customer Benefit
What benefit do we create for our
customers?
What benefit do we create for our
partners?
Offer
What is our offer?
Value Chain
What are our value creating steps?
What is our value chain?
Core Capabilities
What are the core capabilities
we need?
Distribution & Communication
Channels
How do we reach our customers?
How do we communicate with
our customers?
Partner
Which partners do we need?
Questions for a Successful Business Model
Cost Structure
Cost structure is defined by the
value architecture.
Revenue Sources
With what do we earn money?
Team
Who is on our team?
What competencies do we have
on the team?
Values
What values do we pursue?
How do we interact with each other
and the customers?
Revenue Model
Team & Values
Value PropositionValue Architecture
46. 5
New boxes to think in are not enough
Think like a designer.
Plan the process, not the
result, prototype, iterate
Start with customer insights
47. Point of View
Business Design is a process of opening your
mind and focusing at the end
1
Customer
Insight
3
Ideate
2
Understand
4
Design
5
Decide &
Prototype
6
Build & Learn
48. Customer Insights
based on jobs-to-be-
done are the starting
points for business
model innovation
Customers’
insight
New value
proposition
Business
model
innovation
49. 6
Don’t start with a solution
Observe the customer
experience journey aka
jobs-to-be-done
Follow the whole customer journey
50. 1
Customer Insight
- Observe your customers
What job is not yet or
badly solved?
- How does the Customer
Experience Cycle look
like?
- On what customer insights
is your idea based?
- validate customer insight
51. Buy
Delivery/
Assembly
Usage
Comple-
ments
Service Disposal
Observe the customer along the whole customer experience
journey and find badly or unsolved jobs-to-be-done
§ Understand how the customers are buying,
using and disposing the product
§ Understand the whole lifecycle of customers‘
utility
Source: cp. Kim,W.C., Mauborgne, R., Knowing a Winning Business Idea when
you see one, HBR Sep-Oct. 2000
Customer Experience Journey
§ How can we improve the buyer‘s utility cycle?
§ Can we do more for the customer?
§ Can we leave something to the customer?
53. 2
Understand
- understand the current
solutions and their
strength & weakness
- understand how the
potential customer thinks
and decides
- understand the market &
market mechanism
54. 3
Ideate
Develop as many ideas as
possible in the area of
- customers/ value
proposition
- value architecture
- revenue model
55. Customers
Customer Benefit
Offer
Value Chain
Core Capabilities
Distribution & Communication
Channels
Partner
Business Model:
Cost Structure Revenue Sources
Team Values
Revenue Model
Team & Values
Value PropositionValue Architecture
Use the canvas to
fine tune your
business model
around a better
value proposition
56. 4
Design
- decide for three or four
options
- design the business
models for the options
- check the
interdependencies in the
business models
- work on the uniqueness
(positioning)
- optimize the building
blocks
Customers
Customer Benefit
Offer
Value Chain
Core Capabilities
Distribution & Communication
Channels
Partner
Business Model:
Cost Structure Revenue Sources
Team Values
Revenue Model
Team & Values
Value PropositionValue Architecture Use the canvas to
develop your business
model
57. 5
Decide & Prototype
- decide for the best model
to go for
- build prototype
- test prototype with
customers
- write business case
- decide again or work on
different option
58. 6
Build & Learn
- execute business model
- learn continuously from
customer feedback and
control KPIs
- adjust and refine
continuously the business
model
59. 1
Customer Insight
- Observe your customers
What job is not yet or
badly solved?
- How does the Customer
Experience Cycle look
like?
- On what customer insights
is your idea based?
- validate customer insight
2
Understand
- understand the current
solutions and their
strength & weakness
- understand how the
potential customer
thinks and decides
- understand the market &
market mechanism
3
Ideate
Develop as many ideas as
possible in the area of
- customers/ value
proposition
- value architecture
- revenue model
4
Design
- decide for three or four
options
- design the business
models for the options
- check the
interdependencies in the
business models
- work on the uniqueness
(positioning)
- optimize the building
blocks
5
Decide & Prototype
- decide for the best
model to go for
- build prototype
- test prototype with
customers
- write business case
- decide again or work on
different option
6
Build & Learn
- execute business model
- learn continuously from
customer feedback and
control KPIs
- adjust and refine
continuously the
business model