Innovation
Coparmex Entrepreneur day 2015_Keynote Arne Van Balen_Board of Innovation
Coparmex Entrepreneur day 2015_Keynote Arne Van Balen_Board of Innovation
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Business model<br />
<strong>Innovation</strong><br />
- COPARMEX - <br />
Guadalajara - Sep 29, 2015
Hello,
Arne Van Balen - @arnevbalen<br />
Corporate Accelerator<br />
+32497143574<br />
Part-time Intrapreneur @<br />
<strong>Innovation</strong> coach/trainer @<br />
…
Arne Van Balen - @arnevbalen<br />
Corporate Accelerator<br />
+32497143574
Board of innovation?
International office specialised in<br />
Business (Model) <strong>Innovation</strong>
What about you?
What about you?<br />
Big company Startup University
Why? > How? > What?<br />
of Business model innovation
Why business<br />
model innovation?
10 types of innovation<br />
Configuration Offering Experience<br />
Business<br />
model<br />
Network<br />
Company<br />
Structure<br />
Process<br />
Product<br />
performance<br />
Product<br />
system<br />
Service Channel Brand<br />
Customer<br />
Engagement<br />
Volume of innovation efforts<br />
last 10 years<br />
source: Doblin Group, Inno 15
10 types of innovation<br />
Configuration Offering Experience<br />
Business<br />
model<br />
Network<br />
Company<br />
Structure<br />
Process<br />
Product<br />
performance<br />
Product<br />
system<br />
Service Channel Brand<br />
Customer<br />
Engagement<br />
Volume of innovation efforts<br />
last 10 years<br />
source: Doblin Group, Inno 15
10 types of innovation<br />
Configuration Offering Experience<br />
Business<br />
model<br />
Network<br />
Company<br />
Structure<br />
Process<br />
Product<br />
performance<br />
Product<br />
system<br />
Service Channel Brand<br />
Customer<br />
Engagement<br />
Cumulative Value Creation<br />
last 10 years<br />
less than 2% of projects,<br />
produce more than 90% of value<br />
source: Doblin Group, Inno 15
What is a<br />
Business model?
Business Model in a nutshell<br />
just to make sure we’re all on the same page…<br />
An organisation’s logic of creating, <br />
delivering and capturing value.
15 years ago - 1 dominant business model
Today, battle of concepts!
Napster: illegal downloading<br />
Digital recording<br />
Internet available for all
Itunes, pay per song
Spotify, subscription on music
Spotify: Small artists have exposure<br />
What<br />
was<br />
big<br />
marketing<br />
budget<br />
95%<br />
exposure<br />
small
Spotify: Small artists have exposure<br />
What<br />
was<br />
big<br />
marketing<br />
budget<br />
95%<br />
exposure<br />
small<br />
What<br />
big<br />
marketing<br />
budget<br />
>95%<br />
exposure<br />
is<br />
small<br />
exposure<br />
100%
Spotify: Artists have the potential to earn more<br />
What<br />
was<br />
20-5% 80-95% money
Spotify: Artists have the potential to earn more<br />
What<br />
was<br />
20-5% 80-95% money<br />
What<br />
is<br />
40-30% 60-70% money<br />
100% money
The role of record labels is changing<br />
What<br />
was<br />
talent scouting/<br />
development<br />
recording/<br />
producing<br />
marketing<br />
distributing
Spotify: Cut the middleman<br />
What<br />
is<br />
talent scouting/<br />
development<br />
recording/<br />
producing<br />
marketing<br />
distributing
Startups are changing industries, e.g. Internet based
The power of platforms
Uber launched in mexico 3 months ago
Uber launched in mexico 3 months ago
Uber launched in mexico 3 months ago
Uber launched in mexico 3 months ago<br />
UBER is a gift from heaven<br />
for the established taxi industry
#1<br />
#1<br />
Uber increases the demand for rides<br />
+ clients value experienced drivers.
#1<br />
#2<br />
Language barriers collapse<br />
when everyone uses the same app
#1<br />
#3<br />
More time to drive equals more income.<br />
(no map searching + automatic payment)
#1<br />
#4<br />
Transparency on route, cost and driver<br />
will recover the industry’s bad image
#1<br />
#5<br />
Everyone deserves credits for a job well<br />
done. #motivation #improvement
Business<br />
model design<br />
is about value
Value for 6 types of stakeholders<br />
Consumer
You are in the center!<br />
Your own venture
Transferring value with other stakeholders
10 types of value<br />
Product Service Experience Exposure Reputation<br />
Money Less Money Credits Data Right
10 types of value<br />
5<br />
Money<br />
5<br />
Less Money<br />
Product<br />
Service<br />
Product Service Experience Exposure Reputation<br />
Experience<br />
Right<br />
Data<br />
Money Less Money Credits Data Right<br />
1<br />
Reputation<br />
Credits<br />
Exposure
The Dash: all-in-one in ear headphones<br />
5<br />
Money<br />
5<br />
Less Money<br />
Product<br />
Service<br />
Experience<br />
Right<br />
Data<br />
1<br />
Reputation<br />
Credits<br />
Exposure
The Dash: all-in-one in ear headphones<br />
5<br />
Money<br />
5<br />
Less Money<br />
Product<br />
Service<br />
Experience<br />
Right<br />
Data<br />
1<br />
Reputation<br />
Credits<br />
Personal trainer?<br />
Instant translation?<br />
Exposure
Cardrops - Delivery service<br />
5<br />
Money<br />
5<br />
Less Money<br />
Product<br />
Service<br />
Experience<br />
Right<br />
Data<br />
1<br />
Reputation<br />
Credits<br />
Exposure
Cardrops - Delivery service<br />
5<br />
Money<br />
5<br />
Less Money<br />
Product<br />
Service<br />
Experience<br />
Right<br />
Data<br />
1<br />
Reputation<br />
Credits<br />
Exposure
Volvo Roam Service (with DHL)<br />
5<br />
Money<br />
5<br />
Less Money<br />
Product<br />
Service<br />
Experience<br />
Right<br />
Data<br />
1<br />
Reputation<br />
Credits<br />
Exposure
Sell right to exploit roofs for solar energy<br />
5<br />
Money<br />
5<br />
Less Money<br />
Product<br />
Service<br />
Experience<br />
Right<br />
Data<br />
1<br />
Reputation<br />
Credits<br />
Exposure
Franchising Models<br />
5<br />
Money<br />
5<br />
Less Money<br />
Product<br />
Service<br />
Experience<br />
Right<br />
Data<br />
1<br />
Reputation<br />
5 in Guadalajara alone<br />
Credits<br />
19,420 worldwide!<br />
Exposure
Nest thermostat learns when to heat<br />
5<br />
Money<br />
5<br />
Less Money<br />
Product<br />
Service<br />
Experience<br />
Right<br />
Data<br />
1<br />
Reputation<br />
Credits<br />
Exposure
Nest thermostat saves you money<br />
5<br />
Money<br />
5<br />
Less Money<br />
Product<br />
Service<br />
Experience<br />
*<br />
Right<br />
Data<br />
1<br />
Reputation<br />
Credits<br />
*2300-2500 MXN<br />
Exposure
Nest has the right to sell your data<br />
5<br />
Money<br />
5<br />
Less Money<br />
Product<br />
Service<br />
Experience<br />
Right<br />
Data<br />
1<br />
Reputation<br />
62 billion MXN<br />
Credits<br />
Exposure
Nest doesn't stop there!<br />
5<br />
Money<br />
5<br />
Less Money<br />
Product<br />
Service<br />
Experience<br />
Right<br />
Data<br />
1<br />
Reputation<br />
Credits<br />
Exposure
#BreakingNews: New Chromecast Audio<br />
5<br />
Money<br />
5<br />
Less Money<br />
Product<br />
Service<br />
Experience<br />
Right<br />
Data<br />
1<br />
Reputation<br />
Credits<br />
Exposure
Runkeeper tracks your runs<br />
5<br />
Money<br />
5<br />
Less Money<br />
Product<br />
Service<br />
Experience<br />
Right<br />
Data<br />
1<br />
Reputation<br />
Credits<br />
Exposure
Runkeeper gives you discounts<br />
5<br />
Money<br />
5<br />
Less Money<br />
Product<br />
Service<br />
Experience<br />
Right<br />
Data<br />
1<br />
Reputation<br />
Credits<br />
Exposure
ZombiesRun - Running as a game<br />
5<br />
Money<br />
5<br />
Less Money<br />
Product<br />
Service<br />
Experience<br />
Right<br />
Data<br />
1<br />
Reputation<br />
Credits<br />
Exposure
Run An Empire<br />
5<br />
Money<br />
5<br />
Less Money<br />
Product<br />
Service<br />
Experience<br />
Right<br />
Data<br />
1<br />
Reputation<br />
Credits<br />
Exposure
Waze - community based GPS app<br />
5<br />
Money<br />
5<br />
Less Money<br />
Product<br />
Service<br />
Experience<br />
Right<br />
Data<br />
1<br />
Reputation<br />
Credits<br />
Exposure
Waze - Points to buy more add-ons<br />
5<br />
Money<br />
5<br />
Less Money<br />
Product<br />
Service<br />
Experience<br />
Right<br />
Data<br />
1<br />
Reputation<br />
Credits<br />
Exposure
Waze sells your manual reports (eg. accidents)<br />
5<br />
Money<br />
5<br />
Less Money<br />
Product<br />
Service<br />
Experience<br />
Right<br />
Data<br />
1<br />
Reputation<br />
Credits<br />
Exposure
How to<br />
innovate your<br />
business model?
Work with a visual language<br />
Bird<br />
65%<br />
10%<br />
remembers<br />
remembers
Work with a visual language<br />
www.boardofinnovation.com
Step 1: Define your current business model
Step 2: improve by changing transactions or stakeholders
A typical Mexican laundrette
Very simple business model<br />
<br />
55 5 5<br />
$/kg or piece<br />
laundrette<br />
customer<br />
laundry<br />
services
Example: Washio
Example: Washio<br />
1. order with app (pick-up & drop-off time)<br />
2. sort clothes<br />
3. Ninja picks up clothes<br />
4. local business cleans, dries, folds, ... clothes<br />
5. Ninja drops off clothes (credit card charged)
Example: Washio<br />
<br />
Ninjas<br />
Washio<br />
customer<br />
Key Stakeholders<br />
external<br />
laundry service<br />
future<br />
customer
Example: Washio<br />
55 5 5<br />
<br />
$/kg or piece<br />
Ninjas<br />
Washio<br />
reusable<br />
laundry<br />
bag<br />
laundry<br />
services<br />
on demand<br />
customer<br />
external<br />
laundry service<br />
future<br />
customer
Example: Washio<br />
tools<br />
(app, insurance)<br />
55 5 5<br />
55 5 5<br />
$20/h<br />
<br />
$/kg or piece<br />
Ninjas<br />
pick up/drop<br />
off laundry<br />
Washio<br />
reusable<br />
laundry<br />
bag<br />
laundry<br />
services<br />
on demand<br />
customer<br />
external<br />
laundry service<br />
future<br />
customer
Example: Washio<br />
tools<br />
(app, insurance)<br />
55 5 5<br />
55 5 5<br />
$20/h<br />
<br />
$/kg or piece<br />
Ninjas<br />
pick up/drop<br />
off laundry<br />
Washio<br />
reusable<br />
laundry<br />
bag<br />
laundry<br />
services<br />
on demand<br />
customer<br />
right<br />
55 5 5<br />
$/kg<br />
external<br />
laundry service<br />
laundry<br />
services<br />
future<br />
customer
Example: Washio<br />
tools<br />
(app, insurance)<br />
55 5 5<br />
55 5 5<br />
$20/h<br />
<br />
$/kg or piece<br />
referral<br />
Ninjas<br />
pick up/drop<br />
off laundry<br />
Washio<br />
reusable<br />
laundry<br />
bag<br />
laundry<br />
services<br />
on demand<br />
customer<br />
right<br />
55 5 5<br />
$/kg<br />
discount<br />
discount<br />
external<br />
laundry service<br />
laundry<br />
services<br />
55 5 5<br />
future purchase<br />
future<br />
customer
Eat or<br />
be eaten
Where<br />
to start?
Be lazy.<br />
Act smart.<br />
Become successful.
Who is this guy?<br />
Richard Branson<br />
How can we support to<br />
diminish this perception?
Who is this guy?<br />
Elon Musk<br />
How can we support to<br />
diminish this perception?
What do they have in common?
The talent to copy-paste between industries<br />
Paypal Tesla Space-X Atlantic Mobile<br />
Galactic
80%<br />
of ideas come from<br />
analogy thinking<br />
G. Jucevi
Copy & Remix.
Uber
Airbnb<br />
of Dogs.<br />
Of Laundry.
Airbnb<br />
of Doctors.<br />
of Jobs.
Airbnb<br />
of Weed.<br />
of X.<br />
?
Is your startup idea already taken?
Understand the patterns!
Business models have many different components!<br />
27 patterns<br />
100.000+ combinations
The essential first question<br />
1. 4.<br />
2. 3.<br />
Third Free! party<br />
pays for the user. bills<br />
Pricing Paid! <br />
The user Tactic = Client<br />
Free = Free<br />
There are so many variations on ‘free’
Free - Donation
Free - ‘Pay-what-you-want’<br />
Choose your own price (including free)
Free, for some - Freemium
Free, for some - Freemium<br />
Different segments of users
What to pick?<br />
1.<br />
Free!<br />
for the user.<br />
2.<br />
Paid!<br />
The user = Client
What to pick?<br />
1.<br />
Free!<br />
for the user.<br />
There are some reasons<br />
why people start paying!<br />
2.<br />
Paid!<br />
The user = Client
Wu-Tang Releases One Copy Of Its Secret Album<br />
Rent for <br />
US$200k<br />
Listen for <br />
US$50<br />
#Exclusivity
#Loss/aversion<br />
Addiction is an obvious reason to pay
The power of Zynga-like games. (farmville, candy crush, etc.)<br />
Grind - Spam - Pay<br />
Just click 5000 times<br />
to grow a plant.<br />
Invite 50 friends<br />
to go faster.<br />
F*ck it. I’ll just buy<br />
extra coins to get this plant<br />
#Convenience
Our own experience :)<br />
Colleague of us (accidentally) spams all our<br />
clients with dating/chat invites. #awesome.
What to pick?<br />
2.<br />
Paid!<br />
The user = Client<br />
3.<br />
Pricing Tactic
Unlimited access for a limited amount of time<br />
#Subscription
Aggregator of news articles (€0,10-0,25/article)<br />
#Pay-per-use
Introduce an essential recurring expense<br />
#Razor-Blade
Ownership for a mid-to-long term<br />
#Leasing
Next Chapter.
Why does this person get a +120M€ contract?
Why does this person get a +120M€ contract?<br />
More people<br />
watch<br />
More media<br />
attention<br />
More<br />
sponsors<br />
More<br />
ticket sales<br />
…
Every ad-based model: The user becomes the product<br />
#etc.<br />
#Advertising<br />
#Data<br />
#Referrals
So many options!<br />
It challenged me…
My challenge to help more than one team at once<br />
27<br />
Revenue Model Options<br />
curated by @arnevbalen boardofinnovation.com<br />
B2B<br />
flickr cc 76657755@N04
Combine these concepts!
Case: Glow
www.glowing.com<br />
Predictions & Tasks<br />
to increase pregnancy<br />
Data<br />
Non-Paying user<br />
Inc HQ<br />
Glow First Fund<br />
Inc HQ<br />
Glow
www.glowing.com<br />
Predictions & Tasks<br />
to increase pregnancy<br />
5<br />
€50/Month<br />
Data<br />
Data<br />
Insurance &<br />
Extra Guidance<br />
Preganant*<br />
Non-Paying user<br />
Inc HQ<br />
support<br />
Glow First Fund<br />
Inc HQ<br />
Enganging User<br />
Not Pregnant*<br />
Glow<br />
"Normal" User<br />
Not Pregnant*<br />
Paying Users
www.glowing.com<br />
Predictions & Tasks<br />
to increase pregnancy<br />
5<br />
€50/Month<br />
Data<br />
Data<br />
Insurance &<br />
Extra Guidance<br />
conceiving<br />
Preganant*<br />
Non-Paying user<br />
Inc HQ<br />
support<br />
Glow First Fund<br />
++ % of Money Pool<br />
Inc HQ<br />
Enganging User<br />
Not Pregnant*<br />
Glow<br />
% of Money Pool<br />
"Normal" User<br />
Not Pregnant*<br />
Paying Users
www.glowing.com<br />
Predictions & Tasks<br />
to increase pregnancy<br />
5<br />
€50/Month<br />
Data<br />
Data<br />
Insurance &<br />
Extra Guidance<br />
conceiving<br />
Preganant*<br />
Non-Paying user<br />
Inc HQ<br />
support<br />
Glow First Fund<br />
++ % of Money Pool<br />
5<br />
Inc<br />
Inc<br />
Inc HQ<br />
Enganging User<br />
Not Pregnant*<br />
Less Money<br />
Company<br />
Company<br />
Glow<br />
% of Money Pool<br />
inFertility Treatment Partner<br />
"Normal" User<br />
Not Pregnant*<br />
Paying Users<br />
5<br />
Money<br />
Data<br />
Exposure
www.glowing.com<br />
Predictions & Tasks<br />
to increase pregnancy<br />
5<br />
€50/Month<br />
Data<br />
Data<br />
Insurance &<br />
Extra Guidance<br />
conceiving<br />
Preganant*<br />
Non-Paying user<br />
Inc<br />
Inc HQ<br />
support<br />
Labo<br />
5<br />
Glow First Fund<br />
++ % of Money Pool<br />
5<br />
Inc<br />
Inc<br />
Money<br />
Inc HQ<br />
Enganging User<br />
Not Pregnant*<br />
Less Money<br />
Company<br />
Company<br />
Universities<br />
Glow<br />
% of Money Pool<br />
inFertility Treatment Partner<br />
R&D<br />
User Data<br />
"Normal" User<br />
Not Pregnant*<br />
5<br />
Paying Users<br />
Money<br />
Data<br />
Exposure
Business model innovation<br />
Why?<br />
Value<br />
vs. effort<br />
> How?<br />
Copy & remix<br />
BM patterns<br />
> What?<br />
Creating, delivering<br />
& capturing value
Many thanks!<br />
Questions, just ask.<br />
@ArnevBalen<br />
arne @boardofinnovation.com
Many thanks!<br />
Questions, just ask.<br />
@ArnevBalen<br />
arne @boardofinnovation.com
#1<br />
Taxi industry<br />
Invest in education of taxi drivers,<br />
it’s their biggest barrier.<br />
Government<br />
Make regulation applicable to the<br />
digital life we are living today.<br />
Uber<br />
Insure your drivers <br />
and add VAT to the receipt.
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