Business Innovation 1 ZF

Win-win with symbiosis

What, Why

Several parties cooperate and share the resulting revenues. Revenue sharing is often found among internet businesses, for example users which upload certain content to a database and in return receive a part of the revenue for every transaction connected to this content.

Apple:
The App Store is a prominent example of this pattern. Independent developers upload their applications to Apple's platform where customers can download them. Apple then shares the revenue generated through an application with its developer.

Taking lessons from competitors

What, Why, How

By analyzing an existing product, service or even an entire business model, a company develops an imitation of this product at low costs and can therefore offer it to the market at a lower price. This makes it possible to reach target groups, which were not willing or able to afford the original product which usually has a higher price.

Denner:
After recognizing Nespresso's success, Denner reverse engineered the concept and started offering cheap, Nespresso compatible capsules. The low price and the non-exclusive distribution network allowed Denner to reach a wide customer base.

Learning from good-enough solutions

What, How

As opposed to traditional innovation where products are being developed for industrialized countries, this refers to the activity of creating simple and inexpensive products for developing countries and later adapting those products for their use in industrialized countries.

Nokia:
The Nokia 1100 was developed as an inexpensive phone specifically for India's hinterland, including country-specific features such as a torch. It was later very successful with customers looking for a simple device in industrialized countries as well.

Take from the rich and give to the poor

What, Why, Who

Besides offering its products and services to 'the rich', a company also offers them to 'the poor' at a much lower price. While the rich subsidize the poor, the poor help to create economies of scale, which would otherwise not have been possible.

Aravind:
As many Indians cannot afford surgery to cure their blindeness, Aravind requires wealthy clients to pay the full price for their eye surgery, while poorer customers pay as much as they want/can afford. Even if 2/3 of customers pay nothing, Aravind earns yearly profits.

Putting the customer to work

What, Why, How

In exchange for a lower price, a part of the value creation is outsourced to customers, which often find that this also saves them time. Self-service is especially effective in cases where relatively high costs are generated for activities which add little value.

IKEA:
Distribution and assembly are outsourced to the customer in return for relatively low prices. In addition to distribution and assembly, IKEA saves money on inventory and packaging as products need less space before being assembled.

Piggybacking

What, Why, How

A win-win situation is created by establishing an independent store within another store. The host benefits from collecting rent, attracting additional customers, and not having to build up its own expertise for those products. The smaller branch can profit from an existing customer base, existing resources, and freedom in the presentation of its products.

Bosch:
Many customers opted for cheaper no-name products as they were not adequately informed at hardware stores. With its Shop in Shop concept Bosh was able to have more freedom in the display of its products and to consult/inform potential buyers.

Finding all you need at the one-stop shop

What, Why, How

Within a particular domain, a solution provider offers total coverage of products and services, typically providing maintenance, consulting, as well as supplies and spare parts and therefore creating a single point of contact. This allows customers to save time and having a specialized partner contribute his specialized experience.

Lantal Textiles:
Originally a manufacturer of textiles, Lantal Textiles now focuses on designing and implementing solutions for airlines, bus companies, railways, and cruise lines. This business has less exposure to business cycles and creates constant revenue.

Taking a season ticket to services

What, Why

Based on a contract which defines the frequency and the length of agreement, customers receive a product or service regularly without having to purchase it over and over again. Companies profit from better predictability while customers can save time and often also money.

Blacksocks:
The Switzerland-based company offers a subscription to regularly shipped black socks. Customers can choose how many socks they want in which interval and do not have to go out to buy them individually.

Large selection and small prices under one roof

What, Why, How

With this business model, a company is able to satisfy most customers' needs by offering a wide range of products at low prices. While having lower margins, the company is able to draw customers and profits from economies of scope.

Toys R Us:
While competitors offer a small range of high-priced products in boutique stores, Toys R Us attracts customers to their large stores with a wide variety of toys at low prices.

Customers at the base of the earnings pyramid

What, Why, How, Who

This pattern focuses on low-income countries where income lays at or below USD 2'000. This customer segment benefits from gaining access to affordable products and can be very profitable as it includes over half of the world's population.

Grameen Bank:
Loans are issued to impoverished applicants, which cannot get a regular bank-loan. The village acts as a guarantor for the loan, which creates social pressure and results in a default rate of only 2 per cent.

Turning old rubbish into new cash

What, Why, How

By recycling old materials, a company can lower or even eliminate its cost for resources and transform them into new products or resell the resource in other parts of the world. This creates a win-win situation for supplier (free trash disposal) and manufacturer (low or zero cost for resources)

Freitag:
The company recycles old canvas from trucks (and other materials) in order to create stylish bags and fashion accessories. This keeps costs for resources very low and attracts ecologically aware customers.

Attracting indirect network effects

What, Why, How

The company acts as an intermediary or provides a platform for the interaction between two complementary groups. Benefits usually correlate with the size of the network which is why the company has to achieve a fast visibility.

Groupon:
A platform which connects customers and vendors through discounts. Customers can benefit from receiving discounts on products or services while vendors can increase their visibility.

More for more

What, Why, How, Who

Focusing on the top financial class, a company offers the highest quality, a strong brand, competent representatives, and frequent special events support this business model. High margins make up for initial investments, which are required when offering such products and services.

Lamborghini:
Differentiation is achieved through limited editions of high-powered sports cars at high prices. Close customer care and comprehensive support packages can justify high margins.

The customer as inventive entrepreneur

What, Why, How

In addition to being consumers, customers also take the role of a designer and can design products, which other customers will later buy. A company can therefore offer products specific to the customers' requirements while customers pursue their entrepreneurial ideas at low risk and cost.

Threadless:
Chicago based company which accepts inputs for t-shirt designs for which the community can vote. The highest rated designs will then be produced and its designer financially rewarded.

Own brand strategy

What, How

A company produces products, which are not given any specific brand name and can therefore be sold by different companies under different brands. As this enables the manufacturer to exploit economies of scale, he can also supplement the sales of his own branded product with sales of the same product as a white label.

Foxconn:
Technology company which manufactures electronic devices for many well-known brands such as Apple, Dell, and Intel. Estimations say that Foxconn produces about two thirds of all computer motherboards as white label products.

• Nespresso: Razor and Blade - Grundmodell günstig, komplementär Gut ist dafür teuer.

  Like Gillette. Ggf. unter dem Produktionspreis verkauft. Quersubventioniert (Schindler):

  Viele Aufzüge verkaufen, über den Service Profit machen / Quersubventionieren

• -  Auch Nespresso: Lock in Effekt; Razor and Blade Effekt funktioniert meistens nur mit

  Lock In. (Bspw. mit den Kappseln)

• -  Lock In Effekt: 1) Nespresso Club (Community) & 2) Feel like George Clooney

  (unterschwellige Methode) & 3) Dichtung sind auf Kappseln und nicht in der Maschine /

  mit anderen Maschinen funktionieren die Maschinen nur halbrichtig & 4) Direkt Selling

• -  Nespresso wird vom Effekt (3) wegkommen, da die Verpackungstechnologie kostspielig

  ist

- Neue Geschäftsmodelle schöpfen gegenüber Produkt- und Prozessinnovationen zusätzliches

Innovationspotenzial und erzeugen zusätzlichen Profit (Produktinnovation/

Technologieinnovation < Prozessinnovation < Business Model Innovation)

Transferieren

Kombinieren

Hebeln

Razor and Blade von Gillette für neue Industrie; Transferieren von

Prinzipien/ Patterns aus)

-  Def: “Ein bestehendes Geschäftsmodell wird auf eine neue Branche portiert. Die meisten Unternehmen nutzen diese Strategie. Wichtige Vorteile: Andere Unternehmen dienen als Blueprints und ihre Fehler können vermieden werden, so dass sie in ihrer Branche zu einem Innovationsführer werden können. Große Herausforderung: genügend Raum für Experimente und Anpassungen zu lassen.“

(Razor and Blade, Lock-in, Direct Selling Nespresso; mehrere Prinzipien/ Patterns kombinieren)

-  Def: “Übertragen und kombinieren von zwei Geschäftsmodellen. Besonders innovative Unternehmen können sogar drei Geschäftsmodelle gleichzeitig nutzen. Großer Vorteil: Synergien verringern die Wahrscheinlichkeit, dass Wettbewerber das Geschäftsmodell imitieren. Große Herausforderung: Planung und Ausführung werden hochkomplex.“

(Nespresso, Special T, Babyness; auf den bestehenden Prinzipien/ Patterns ein neues Produkt anbieten)

-  Def: “Ein Unternehmen nutzt ein erfolgreiches Geschäftsmodell für eine andere Produktlinie. Nur die innovativsten Unternehmen können dies erreichen. Wesentliche Vorteile: Fähigkeit, Erfahrungen und Synergien zu nutzen; überschaubares Risiko. Große Herausforderung: Balance zwischen Veränderung und Stabilität.”

→ Kernaussage daraus: Ein Unternehmen muss sich nach außen öffnen und bereit sein, von anderen

Branchen zu lernen. Der bisherige Erfolg anderer Branchenrevolutionen könnte einem dabei helfen, sein

eigenes Zukunftspotenzial zu finden.

90% aller Geschäftsmodellinnovationen sind Kombinationen: Erfolgswahrscheinlichkeit ist hoch, wenn bestehende Bestandteile wiederverwendet werden

Aber es werden jedoch heute gerade mal 10% Budget für BMI eingesetzt (der Rest geht meist an Produkt- und Prozessinnovationen)

1)  Dominierende Industrielogik (bspw. Rolls Royce mit dem neuen Revenue Model;

Performance Based Contracting)

2)  Schwierigkeit in Geschäftsmodellen zu denken (nicht in Produkten oder

Technologien; bspw. Dell mit dem Build to Order Prinzip/ negatives Working Capital)

3)  Fehlen von systematischen Tools, Kreativität nimmt mit dem Alter ab, kreativ denken wird nicht gelernt (Studie George Land), 5 Jährige 98% Kreativität, über 25 noch 2%; Wenn es gelingt Regeln zu verändern (=Geschäftsmodelle verändern), ist man mit höherer Wahrscheinlichkeit erfolgreich)

4)  BMI Mythen: (müssen überwunden werden, damit man erfolgreich sein kann; dazu braucht man ein unternehmerisches Mindset & die Fähigkeiten zu Innovieren)

- R&D Mythos (R&D sind die Zentren für Innovation)

- Initial Ascent Myth (Ideen, die noch nie jemand gehabt hat)
- Think-big Mythos (BMI sind immer radikal und neu für die Welt)

- Technologie Mythos (Innovation basiert auf einer neuen Technologie)

- Zufalls Mythos (Innovationen sind ein purer Zufall/ Glück)
- Einstein Mythos (Nur Genies können eine innovative Idee haben)
- Ressourcen Mythos (Grosse Innovationen bedingen viel Ressourcen)

1. Initiation

2. Ideation

3. Integration

4. Implementation

Initation - Das Ökosystem analysieren

-  Ein Geschäftsmodell ist kein isoliertes Konstrukt, sondern ein komplexes Beziehungsnetz, das ständig mit dem sich verändernden Ökosystem des Unternehmens zusammenhängt. Um der Herausforderung der Geschäftsmodellinnovation gerecht zu werden, müssen die Beteiligten nicht nur ihr eigenes Unternehmen und ihr bestehendes Geschäftsmodell, sondern auch die Rollen der Stakeholder und verschiedene Einflussfaktoren genau verstehen.

-  Dieser Schritt kann in der Regel eine Weile dauern, jedoch ist dieser extrem wichtig

-  Dieser Schritt kann das Verstehen des Status Quo dazu beitragen, dass man “Innovationsbedarf”

entdeckt, weil man erkennt, dass sein GM nicht stark gegenüber der Industrielogik abweicht.