Post on 21-May-2020
Fintech 101 – 7. Dönem
İş Modeli Inovasyonu
30 Nisan 2019, Fintech Istanbul
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Mehmet GülezEY Danışmanlık Hizmetleri
Inovasyon Lideri
+90 532 245 55 31
mehmet.gulez@tr.ey.com
The better the question. The better the answer. The better the world works.
Can we or should we change ourmindset?A brief survey that will give us insights into our own mindsets
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Are we just genetically born with certain abilities and skills?
Are they learned?
Or is it some combination?
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Question 1
► Intelligence/IQ is something very basic about a person.
You can learn new things but you can’t really change
your IQ.
<Scale>
1) Strongly agree
2) Agree
3) Disagree
4) Strongly Disagree
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Question 2
►Only a few people will ever be great at sports –
you have to be “born with it.”
<Scale>
1) Strongly agree
2) Agree
3) Disagree
4) Strongly Disagree
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Question 3
►Recruiting great talent helps build high-performing
companies.
<Scale>
1) Strongly agree
2) Agree
3) Disagree
4) Strongly Disagree
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Looking at the survey results:
►Question 1: Intelligence/IQ is something very basic
about a person. You can learn new things but you
can’t really change your IQ.
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Looking at the survey results:
► IQ/Intelligence can be grown
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Looking at the survey results:
►Question 2: Only a few people will ever be great at
sports – you have to be “born with it.”
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Looking at the survey results:
► Ability can be enhanced
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Looking at the survey results:
►Question 3: Recruiting great talent helps build high-
performing companies.
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Looking at the survey results:
►Question 3: Big talent is overrated
Enron the Smartest Guys in the Room
The people at Enron were smart, but
not as smart as they thought they
were.
They tried to trade it all: energy,
"weather derivatives," broadband
Internet access, water, news, you
name it. They failed and then they lied
about it.
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►Mindset is a set of assumptions, methods
and ideas held by individuals or exercised
by a group.
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► In Dr. Carol Dweck’s book,
Mindset: The New
Psychology of Success, How
we can learn to fulfil our
potential, she identifies two
types of mindsets. Fixed and
Growth Mindsets.
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►Fixed Mindset believes
an individual’s abilities
are set in stone
►Growth Mindset believes
that an individual can
grow and develop their
abilities
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Creativity and Innovation
Shawn Hunter, author of "Out Think:
How Innovative Leaders Drive
Exceptional Outcomes," (Wiley, 2013)
defines creativity as the capability or act
of conceiving something original or
unusual, while innovation is the
implementation or creation of
something new that has realized value
to others.
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What is necessary for innovation?
Business Technology
People
Innovation
The better the question. The better the answer. The better the world works.
Can purpose drive the change of business models ?Can purpose support companies to face thechallanges of disruptive market conditions?
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20th Century Corporate Lifecycle
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21st Century Corporate Lifecycle
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The Golden Circle: Apple
What
How
Why
What we doWe sell smartphones and computer
How we do itOur products are beautifully designed and easy to use
Why we existWe believe in challenging the status quo and doing things differently
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Me
tho
ds
an
d t
oo
lsO
bje
cti
ves
Improve
workflow, increase skills,
and develop new
capabilities
Drive efficiencyand
effectiveness
Streamline organization, drive
out costs, and
improve/align
accountability
Align model with priorities and
enable strategy
execution
Promote growth, innovation, and
long-term
profitability
Define and deliver on a new
brand promise
and purpose
Capability Identity
Major Program TransformationOrganization
Design
Operating Model Design
Business Model Design
Purpose-Led Transformation
Tools and Technology
Process and
Function
Organization Structure
Operating Model
Business Model
Purpose
The Transformation Spectrum© is an umbrella construct to position EY’s transformation solutions along a spectrum helping our clients rapidly capture corresponding levels of value from their change initiatives
What is EY’s Transformation Spectrum©?
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Research Execution
Companies Needs Both
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Innovation is not an action it is a process
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+
3 Stages of Lean Startup
Agile Engineering
CustomerDevelopment
Business Model Innovation
Stage 1
Stage 2
Stage 3
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Business models became the management theory of the 21st century
e.g. price, margin
e.g. number of features, complexity, number of stakeholders, etc.
Operational excellence Customer intimacy Product leadership
► Access to high performance
► More features► More functionality
► Latest product technology
► Complexity► Linked with aesthetics and style
► Portray sophistication
► Innovation management
► Have a high level of customization
► Have high levels of personalized service
► Have a complete solution► Access to a wide selection
► Obtain advice and consultation
► Feeling of an “experience”
► To lower costs
► To increase convenience
► To be reliability► To be user friendly
► To have high volume
► To be lean
► To not make compromises
40%
60%
80%
20% Intended
strategicposition
Today
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…and there might be more than one business model in a company
Number of features, complexity, number of stakeholders, etc.
Price, margin
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Business Model Canvas : Nespresso
Key Partners Key Activities Value Proposition CustomerRelationship
CustomerSegments
Key Resources Channels
Cost Structure Revenue Streams
Machine
manufacturers
Coffee growers
Production
Marketing &
Branding
B2C Distribution
Distribution
ChannelsPatents
CoffeeProduction
facilities
Marketing & Branding
Nespresso
machines
Nespresso
pods
Acquire & lock-in
Nespresso
storesRetail
Mail order
& call
center
Nespresso
.com
Households
Households
Marketing &
Branding
Production
B2C Distribution
1 x machine sales
Repetitive pod
sales
Nespresso
machines
Nespresso
pods
Value Proposition Design
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Design Thinking Method
Starting with a problem
Actionplan
Erweiterung des FokusLösungsraums
Erweiterung des Problemraums
Fokus
Problemraum Lösungsraum
UNDERSTAND DEFINE IDEATION PROTOTYPING TEST
Broad Focused Broad Focused
Problem space Solution space
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Customer Segments
Value Proposition
What problems do
we solve?
What needs do we fulfill?
What products and services do we
offer?
Customersegments
Which geographies
and customersegments do we
want to serve with
our products,
services and
concepts?
The Value Propositions Building Block describes the bundle of products & services that create
value for a specific Customer Segment
FIT
Core Value Job(s) to get done
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Value Proposition Canvas
Value Proposition
Gain Creators
Pain Relievers
Products, Application or
Service
Gains
Pains
Jobs to get done
Customer Segment
FIT
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Value Proposition Canvas
Gains
Pains
Jobs to get done
Jobs to get doneCustomer Segment
► Describe what a specific customer segment is trying to get done. It could be the tasks they are trying to
perform and complete, the problems they are trying to
solve or the needs they are trying to satisfy
Gains
► Describe the benefits your customer expects, desires
or would be surprised by. This includes functional utility, social gains, positive emotions, and cost savings
Pains
► Describe the emotions, undesired costs and situations,
and risks that your customer experiences or could experience before, during and after getting the job
done
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Value Proposition Canvas
Value Proposition
Gain Creators
Pain Relievers
Products, Application or
Service
Products & Services
► Lists all the products and services your value
proposition is built around.
► Which products and services do you offer that help
your customer get either a functional, social or emotional job done, or help him/her satisfy basic needs
Gain Creators
► Describes how your product and services create
customer gains. How do they create benefits your customer expects, desires or would be surprised by,
including functional utility, social gains, positive
emotions, and cost savings?
Pain Creators
► Describe how your products and services alleviate
customer pains. How do they eliminate or reduce negative emotions, undesired costs and situations, and
risks your customer experiences or could experience
before during, and after getting the job done
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Example: Nespresso
Value Proposition Customer Segment
FIT
High pressure enables better quality as
competitors
Image of
stylish
person
Nice
design
One or two
button usability
Affordable pricing
(pads pay for subsidized machine)
Only clean
up of coffee mug
No
safety
issues
Prepacking
guarantees same
high quality
Nespresso
machines
Nespresso
pads
Nespresso
club
Stylish or
luxury tool
High quality
(good taste)
coffee
Time
efficient
coffee
Did I turn
the coffee
machine
off?
Clean up
of tool/ machine
necessary
High price
for high
end
products
Different
mixing ratio
leads to
changing
taste
Saves
time
No (little)
clean up
necessary
Easy to
buy/ order
Constantly
good taste
Social
Status
Product
Customer Job(s)
Process, Application or Service
Pains
Gains
Pain Relievers
Gain Creators
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Are embedded in a great business
model
10 Characteristics of Great Value Proposition
Differentiate from competition in a 6 meaningful way
Focus on few pain relievers & gain 2 creators, but do those extremely wellAddress functional, emotional and 7 social jobs all together
Align with how customers measure 3 successOutperform competition substantially8 on at least one dimension
Focus on the most significant jobs,
most severe pains, and most relevant gains
9 Are difficult to copy
Focus on jobs, pains or gains that a 5 large number of customers have
Focus on unsatisfied jobs, pains and 10 gains
1
4
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The better the question. The better the answer. The better the world works.
How can we create 10x Business Models?
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Kodak case…
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Blockbuster case…
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Ryanair Case…
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How do you create value…
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Xerox
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Nespresso
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Apple iTunes
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Definition of Business Model
A business model is a blueprint of how a company creates
and captures value.
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Definition of Business Model Innovation
A business model innovation introduces a new logic of how
a company creates and captures value by changing multiple
dimensions of a business model.
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Business Model Generation
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Business Model Navigator
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Business Model PatternRazor Blade
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Business Model PatternFreemium
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Business Model PatternPeer-to-Peer
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Business Model PatternSubscription
THE BUSINESS MODEL CANVAS
Describes the rationale of how an organization creates, delivers,
and captures value
A BUSINESS MODEL
CUSTOMER SEGMENTS1
VALUE PROPOSITION2
CHANNELS3
CUSTOMER RELATIONSHIPS4
REVENUE STREAMS5
KEY RESOURCES6
KEY ACTIVITIES7
KEY PARTNERS8
COST STRUCTURE9
Key Partners
Key Activities
CustomerSegments
Customer Relationships
Cost Structure Revenue StreamsChannelsKey Resources
Value Propositions
The better the question. The better the answer. The better the world works.
Can we still design new models?
What about business models in the hospitality industry?
HILTON’S BUSINESS MODEL
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Affordable luxury for the
people
add value
CITIZEN M: TRUE BUSINESS MODEL INNOVATION
The better the question. The better the answer. The better the world works.
Why don’t we have a small break?
Business Model
Innovation Workshop
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1 Start with customer segments
2 Use different colors for different customer segments
3 Each customer segment is addressed by one or more value proposition
BMC Ground Rules:
WHAT KIND OF RELATIONSHIP DO WE MAINTAIN WITH OUR CUSTOMERS?
PERSONAL CONTACT?
AUTOMATIC? SELF-SERVICE?
THROUGH WHAT CHANNELS DO WE
DELIVER OUR PRODUCTS AND
SERVICES?
WHAT CUSTOMER NEEDS DO WE SATISFY?
WHAT PROBLEM DO WE HELP OUR CUSTOMERS
SOLVE?
WHAT ADVANTAGES DO OUR PRODUCTS AND
SERVICES PROVIDE OUR CUSTOMERS WITH?
WHAT PRODUCTS AND SERVICES DO WE DELIVER
TO OUR CUSTOMERS
WHAT TYPE OF KEY ACTIVITIES DO WE
PERFORM?
WHAT KEY RESOURCES DOES OUR PROPOSITION
REQUIRE?
PHYSICAL? INTELLECTUAL?
HUMAN? FINANCIAL?
WHO ARE OUR KEY PARTNERS?
WHAT IS OUR MOTIVATION TO
WORK WITH PARTNERS?
WHAT KEY RESOURCES DO WE ACQUIRE THROUGH
PARTNERS?
WHAT KEY ACTIVITIES DO OUR
PARTNERS PERFORM?
WHO IS OUR CUSTOMER?
FOR WHOM DO WE CREATE VALUE?
CAN WE DISTINGUISH DIFFERENT CUSTOMER SEGMENTS?
WHAT IS THE SIZE OF EACH COST? WHAT REVENUE STREAMS DO WE GENERATE?
WHAT IS THE SIZE OF EACH REVENUE STREAM?
KEY PARTNERS
KEY VALUES VALUE PROPOSITION
CUSTOMERRELATIONSHIPS
CUSTOMERSEGMENTS
CHANNELS
KEY RESOURCES
COST STRUCTURE REVENUE STREAMS
DESIGN YOUR CURRENT BUSINESS MODEL
WHAT TYPES OF COSTS DO WE GENERATE?
PRESENT YOUR BUSINESS MODEL CANVAS
#Q1
7 QUESTIONS TO ASSESS YOUR BUSINESS MODEL
#Q2
#Q3
#Q4
#Q5
#Q6
#Q7
How much do switchingcosts prevent yourcustomers from churning?
Churn Rate: the amount of customersthat are leaving you
How scalable is your business model?
Scalability: How easy is it to expand yourbusiness without addingcorresponding expenses?
Does your business model produce recurring revenues?
Recurring revenue: Revenue a business can count on receivingevery single month. Revenue that is predictable and stable
Do you earn beforeyou spend?
How much do you get others to do the work?
Does your business model provide protection from competitors (lock-in)?
Is your business model based on a game-changing cost structure?
HOW CAN YOU 10X THE POTENTIAL OF
YOUR BUSINESS MODEL?