Innovation beyond current borders

SEB Innovation Lab March 2014
Dr. Patrick Stähler, fluidminds
Innovation
beyond
current
borders
e
Disruptiv
n
Innovatio
nd
Models a
Growth
Easy innovation in the past
In a market of scarcity, all
products were bought as long
as money was there
Times are changing
We live in a world of abundance.
There is everything. Dozens of
Yoghurts. 100s of T-Shirts……..
Would yo
ud
this? Wha are to say
t would b
e
answer o
f your bo the
ss?
“Well, I know we are in a
commodity market where
the price is key, but I
believe we can sell the
good for 10x as much as
before.”
Would you
invest in this
firm?
„The firm dominates the global market
with a market share of 40% and has
outperformed technology giants like
Siemens or Motorola. No other firm
brings out more new products (around
80 p.a.) to the market. Among
youngsters, it the most admired brand
in its field. ”
Dr. Patrick Stähler |
7
1 device
Once Apple disrupted
the market, sustaining
innovation started
Samsung is playing the
old game of more of very
similar devices to suit
everybody.
A great innovation has to
wow your customers.
What companies wowed
you lately?
Innovation is all about
being different
But if everybody is doing
he same, you have to find
something else
The best is if your customers
love your business due to your
fantastic value proposition and
and your ability to deliver
what you promise
„Which innovation
expanded the global
market for mobile
communication the
most?*“
*After the invention of mobile telephony itself
Which innovation
made this possible?
Dr. Patrick Stähler |
15
A small c
ha
opened n nge in billing
ew mark
ets in
Africa, A
sia, Lati
n Americ
Youths, e
a,
tc..
Prepaid
Technological Innovation
Process Innovation
Product Innovation
Business Model
Innovation
iEngines
Start your innovation engines!
Do you know this man?
Hans Rausing = Inventor
of the Tetra Pack Systems
Dr. Patrick Stähler | 24
He could have sold his
packaging machines,
but…
But he sold packaged
services
Tetra Pack is not a
product innovation but
an implementation of a
n
innovative value
proposition aka business
model
Outside the box thinking
We need new
engines for
innovation.
What
es
are engin
that drive
n?
innovatio
The customer perspective: Technology does not create value. It
is the value proposition the customer loves
product/services
X
happy customers
solves
creates
customer problem
business model
addressed
by
delivered by
value proposition
„What is a
business
model? “
The business model is
the DNA of your
business
Are you
aware of
your
DNA?
The business model
gives meaning to your
employees and
customers
4 key questions for a successful business:
What excites
our
customers?
How do we
create value
for our
customers?
How do we
earn money?
Value Proposition
Value Architecture
Revenue Model
Who is on our
team?
What values
do we
pursue?
Team & Values
„ What industry
are we in? Who
are our
competitors? “
„ In which industry
are we in? “
„That was the job
the customer
wanted to do.
“
Dr. Patrick Stähler |
36
Customer job to be done
We do not need a drilling
machine, screws and dowels.
We want to hang up a picture.
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!
Value Proposition
The job-to-get-done is
solution neutral. The job is to
hang up a picture.
Potential solution:
§  The drilling machine, the
dowel and screws
§  Hammer and nail
§  Powerstrips® by Tesa
§  A friend with a drilling
machine
It is of uttermost
importance to
understand the core
job we solve for our
customers
What excites our customer?
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?
Customer job to be done
Is it easy to put a
Christmas tree straight
up and keep it there
safely and green?
There was no big
market for Christmas
tree stands until Mr
Krinner saw the badly
solved job
How do we create the value?
Value
architecture
Offer
•  What is our offer?
Distribution &
Communication
Channels
•  How do we reach
our customers?
•  How do we
communicate with
our customers?
Core Capabilities
•  What are the core
capabilities we
need?
Partner
•  What partners do
we need?
Value Chain
•  What activitites do
we have to do to
produce our offer?
•  How does our
value chain look
like?
Architectural innovation
Customers have to transport
and assemble the furniture by
themselves, thereby saving
IKEA two expensive steps in
their value chain
Value Proposition
A new value proposition
beyond price and good design
is created: Instant satisfaction
without waiting for the later
delivery of the furniture
How do we earn money?
Revenue
Model
Cost Structure
•  Cost structure is
defined by your
value architecture.
Revenue Sources
•  With what do we
earn money?
Revenue Model Innovation
Power-by-the-hour: Jet
engine maintenance paid
by the hours in service
Value Proposition
Airlines get variable costs
that depend on their
business success.
Who is on our team? What values do we live?
Team &
Values
Team
•  Who is in 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?
Geberit – a product innovator or is there more?
From plumber supply to under-the-wall systems for baths
Customer job to be done
Geberit understood that
the badly solved job in the
sanitary industry was, how
fast a bath room can be
renovated. With Geberit’s
products you can renovate
bathrooms faster and in
Geberit is the
better quality. And they
master in
understood that plumbers understanding how
to build and use
are their core sales
bathrooms.
channel.
Business Model: Why
homeowners love Geberit?
Value Architecture
Value Proposition
Offer
Value Chain
Distribution & Communication
Channels
•  Plumbers are the sales channel
•  Architects are used for direct
communication with homeowner
Customers
•  Homeowners Job-to-be done: •  Get my bathroom renovated very
well (design & quality) with as little
hassle as possible
Customer Benefit
Core Capabilities
•  Deep understanding how baths
are renovated & used
•  Understanding how homeowners
decide to procure sanitary
equipment
•  Faster and more convenient
renovation of baths
•  Actually, it needs a lot of initiative
not to get Geberit (Plumbers offer
only Geberit)
Partner
•  Architects
•  Plumbers
Revenue Model
Cost Structure
•  Installation systems are more expensive
than pure toilette tanks
Revenue Sources
•  Willingness of homeowners to pay more is
higher due to the benefits speed & design
Team & Values
Team
•  Plumbers, Engineers, Marketeers
•  Diverse team
Values
•  high quality
•  long lasting products
•  looking for better solution. Always!
Business Model:
Why plumbers love Geberit?
Value Architecture
Offer
Value Proposition
Distribution & Communication
•  Planning tools (CAD, product
Channels
handbook)
•  Plumbers are reached with
•  integrated logistics direct sales, classical marketing
•  via training
•  trainings, material, certificates
Value Chain
Customers
•  Plumbers
•  Job-to-be done: •  Have little hassle as possible with a
customer job and still earn a high
margin
Customer Benefit
Core Capabilities
•  Easy to plan, order, prefabricate
and install all components •  All components from one supplier
•  Satisfied homeowners that pay a
higher price
•  New products for upselling
Partner
•  Deep understanding how plumbers•  trade schools
work and think about their
(Handwerkerkammern)
business
•  Training know-how
•  Partner & eco system mgm’t
Revenue Model
Cost Structure
•  All these tools for plumbers cost money
Revenue Sources
•  Geberit earns money via end customers
•  Some income for trainings
Team & Values
Team
•  Plumbers, Engineers, Marketeers
•  Diverse team
Values
•  long-term thinking, willingness to invest longterm in relationship with plumbers
•  innovative solutions
Your innovation engines can start at all
elements of your business model
What excites
our
customers?
How do we
create value
for our
customers?
How do we
earn money?
Value Proposition
Value Architecture
Revenue Model
Who is on our
team?
What values
do we
pursue?
Team & Values
Doing
is
the essence of
Innovation