Building the Invincible Corporation - Lean Startup...

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strategyzer.com Building the Invincible Corporation @AlexOsterwalder [email protected] blog.strategyzer.com #1 strategy 2 The Strategyzer logo should always fully appear on any slide that contains our illustrations and/or content. This content should not be published on any other online or oline channels other than Strategyzer’s, unless this has been previously agreed upon by Strategyzer AG and formalized in a written agreement. This content cannot be resold or integrated into any physical or software product. The Business Model Canvas is licensed as creative commons. Enjoy it and adapt it freely, as long as you reference with citation Strategyzer.com” and share your work under the same license. The Value Proposition Canvas is copyrighted Strategyzer AG and is not to be modified or used in software or other commercial products. Feel free to use the Business Model Canvas and Value Proposition Canvas in meetings or for consulting services under the condition of referencing and citing “Strategyzer.com” and fully displaying the Strategyzer logo. You can find additional information on businessmodelgeneration.com/canvas/bmc under “Legal Info”. Please contact [email protected] for any inquiry. These slides are copyright of Strategyzer AG and are intended for personal use only. For other uses please inquire about licensing fees with Natasha at [email protected]. The following applies to any content you intend to reuse: confidence ...

Transcript of Building the Invincible Corporation - Lean Startup...

Page 1: Building the Invincible Corporation - Lean Startup Co.leanstartup.co/.../sites/17/2017/11/Protecting-Your... · Building the Invincible Corporation @AlexOsterwalder alex@Strategyzer.com

strategyzer.com

Building the Invincible Corporation

@[email protected]

#1 strategy

2

If you like this presentation, please, feel free to share it but keep these copyright restrictions in mind:

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“Strategyzer.com” and share your work under the same license. The Value Proposition Canvas is copyrighted Strategyzer AG and is not to be modified or used in software or other commercial products. Feel free to use the Business Model Canvas and Value Proposition

Canvas in meetings or for consulting services under the condition of referencing and citing “Strategyzer.com” and fully displaying the

Strategyzer logo.

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These slides are copyright of Strategyzer AG and are intended for personal use only. For other uses please inquire about licensing fees with Natasha at [email protected]. The following applies to any content you intend to reuse:

confidence ...

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surprise !!!

2014

2016-70%

-60%

-50%

-40%

-30%

-20%

-10%

0%

-80%

-90%

-100%2015 20162014

Hardware Revenue % Change

products, tech, business models & value propositions

expire like yogurt in a fridge

8

… but there’s another phenomenon

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9 10

… but then there’s those who are practically invincible

$3billion

$4.5billion

$8billion

xx

x

x $12billion

“You cannot invent and pioneer if you cannot accept failure.”

— @jeffbezosvs

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1. The Business Portfolio Map

2. A VC Investment Mindset

3. The 21st Century Org Chart

14

Business Portfolio Map

Google Sidewalks

Google Ventures

Google Fiber

Nest Labs

Calico

Google Wave

Search/Adwords

Android OS

Gmail

You Tube Google Maps

Waimo

WazeSelf-Driving Cars

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Low death/disruption risk

sustainable

PROTECT — >

Business Model Portfolio (EXPLORE)

Low innovation riskw/ evidences

High innovation risk

Low expected return

High expected return

TEST — >

DES

IGN

—>

EXPLORE

Business Model Portfolio (EXPLOIT)

Low real return

High real returnprofitable

High death/disruption risk

GR

OW

—>

EXPLORE

EXPLOIT

Explore & Exploit BM Portfolios

<— spin off

acquisition — >

Google SidewalksGoogle Ventures

Google Fiber

Nest Labs

Calico

Google Wave

Search/Adwords

Android OS

Gmail

You Tube

Google Maps

Waimo

Waze

<— discontinued

58B$

Self-Driving Cars

31B$

EXPLORE EXPLOIT

INVENT / INNOVATION (H2/H3) IMPROVE / EXECUTION (H1)

INVESTMENT PHILOSOPHY

CULTURE & PROCESSES

PEOPLE/SKILLS

cost cutting / efficiency

iterative searchexperimentation, failure, insights

growth

linear executionfailure not an option

exploration, pattern recognition, big picture

process & detail oriented, rigor

FOCUS

VC-style investments stock market

Business Model Portfolios

For Both Portfolios

death risk

profi

tabi

lity

The Business Model Canvas

Revenue Streams

Channels

Customer SegmentsValue PropositionsKey ActivitiesKey Partners

Key Resources

Cost Structure

Customer Relationships

Designed by: Date: Version:Designed for:

designed by: Business Model Foundry GmbH, Switzerland www.businessmodelgeneration.com

This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit:http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. strategyzer.com

The Business Model Canvas

Revenue Streams

Channels

Customer SegmentsValue PropositionsKey ActivitiesKey Partners

Key Resources

Cost Structure

Customer Relationships

Designed by: Date: Version:Designed for:

designed by: Business Model Foundry GmbH, Switzerland www.businessmodelgeneration.com

This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit:http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. strategyzer.com

The Business Model Canvas

Revenue Streams

Channels

Customer SegmentsValue PropositionsKey ActivitiesKey Partners

Key Resources

Cost Structure

Customer Relationships

Designed by: Date: Version:Designed for:

designed by: Business Model Foundry GmbH, Switzerland www.businessmodelgeneration.com

This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit:http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. strategyzer.com

A collection of Business Models,balancing returns (profitability) with risk (sustainability)

The Business Model Canvas

Revenue Streams

Channels

Customer SegmentsValue PropositionsKey ActivitiesKey Partners

Key Resources

Cost Structure

Customer Relationships

Designed by: Date: Version:Designed for:

designed by: Business Model Foundry GmbH, Switzerland www.businessmodelgeneration.com

This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit:http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. strategyzer.com

The Business Model Canvas

Revenue Streams

Channels

Customer SegmentsValue PropositionsKey ActivitiesKey Partners

Key Resources

Cost Structure

Customer Relationships

Designed by: Date: Version:Designed for:

designed by: Business Model Foundry GmbH, Switzerland www.businessmodelgeneration.com

This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit:http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. strategyzer.com

The Business Model Canvas

Revenue Streams

Channels

Customer SegmentsValue PropositionsKey ActivitiesKey Partners

Key Resources

Cost Structure

Customer Relationships

Designed by: Date: Version:Designed for:

designed by: Business Model Foundry GmbH, Switzerland www.businessmodelgeneration.com

This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit:http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. strategyzer.com

The Business Model Canvas

Revenue Streams

Channels

Customer SegmentsValue PropositionsKey ActivitiesKey Partners

Key Resources

Cost Structure

Customer Relationships

Designed by: Date: Version:Designed for:

designed by: Business Model Foundry GmbH, Switzerland www.businessmodelgeneration.com

This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit:http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. strategyzer.com

Low return

High return(profitable)

High risk Low risk(sustainable)

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EXPLORE EXPLOIT

INVENT / INNOVATION (H2/H3) IMPROVE / EXECUTION (H1)

Business Model Portfolio (EXPLOIT)

Low real return

High real return(profitable)

EXPLOITHigh death/disruption risk Low death/disruption risk

(sustainable)

profi

tabi

lity

death risk

BATTERIES BUSINESS

Divestiture

PET CARE BUSINESS

2017

% of Net Sales

Business Model Portfolio (EXPLOIT)

Low real return

High real return(profitable)

High death/disruption risk Low death/disruption risk(sustainable)

FABRIC & HOME CARE (Fabric Care, Home Care)

32%

BABY, FEMININE & FAMILY CARE (Fabric Care, Home Care)

28%

BEAUTY (Hair Care, Skin & Personal Care)

18%

HEALTH CARE (Oral Care, Personal Health Care)

12%

GROOMING (Shave Care, Appliance)

10%

%

Risks are simulated

Illustration

Business Model Portfolio (EXPLOIT)

IMPROVE — >

Evolution

CREATE — >Add new BMs

PROTECT — >Reduce risk

GR

OW

—>

Incr

ease

retu

rn

< — EXPIRY

SPINOFF — >

MAINTAIN (RENOVATE)

Low real return

High real return(profitable)

High death/disruption risk Low death/disruption risk(sustainable)

mature BM

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Business Model Portfolio (EXPLOIT) BM trajectories

Low real return

High real return(profitable)

IMPROVE — >

sustainable BM

mature BM

BM at risk

profitable BM

CREATE — >Add new BMs

< — EXPIRY

SPINOFF — >

MAINTAIN (RENOVATE)

PROTECT — >Reduce risk

GR

OW

—>

Incr

ease

retu

rn

High death/disruption risk Low death/disruption risk(sustainable)

Inventing New Business Models (Explore)

Business Model Portfolio (EXPLORE)

High expected return

(profitable)

Low expected return

EXPLOREHigh innovation risk (little validation evidence)

Low innovation risk(strong validation evidence)

expe

cted

pro

fitab

ility

death risk

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Business Model Portfolio (EXPLORE)

Low expected return

High expected return

(profitable)

Evolution

TEST (VALIDATE) — >Reduce risk (increase expected sustainability)

DES

IGN

—>

Incr

ease

exp

ecte

d pr

ofita

bilit

y

TRANSFER — >

INVENT — >

IDEATE — > < — KILL

High innovation risk (little validation evidence)

Low innovation risk(strong validation evidence)

new idea

Low death/disruption risk

PROTECT — >

Business Model Portfolio (EXPLORE)

INVENT — >

Low innovation riskHigh innovation risk

Low expected return

High expected return

TEST — >

DES

IGN

—>

IDEATE — >

LAUNCH —

>

EXPLORE

Business Model Portfolio (EXPLOIT)

IMPROVE —

Low real return

High real return

High death/disruption risk

GR

OW

—>

CREATE — >

EXPLOREINNOVATION ENGINE

EXPLOITEXECUTION ENGINE

BM w/ evidence

prototyped BM

mature BM

new BM at risk

transfer A BM from EXPLORE portfolio to EXPLOIT portfolio

©

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power battle? power battle?

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Portfolio Evolution

Low death/disruption riskPROTECT — >

Business Model Portfolio (EXPLORE)

INVENT — >

Low innovation riskHigh innovation risk

Low expected return

High expected return

TEST — >

DES

IGN

—>

IDEATE — >

LAUNCH —

>

EXPLORE

Business Model Portfolio (EXPLOIT)

IMPROVE —

Low real return

High real return

High death/disruption risk

GR

OW

—>

CREATE — >

EXPLOREINNOVATION ENGINE

EXPLOITEXECUTION ENGINE

transfer A BM from EXPLORE portfolio to EXPLOIT portfolio

©

Portfolio Evolution

Low death/disruption risk

PROTECT — >

Business Model Portfolio (EXPLORE)

INVENT — >

Low innovation riskHigh innovation risk

Low expected return

High expected return

TEST — >

DES

IGN

—>

IDEATE — >

LAUNCH —

>

EXPLORE

Business Model Portfolio (EXPLOIT)

IMPROVE —

Low real return

High real return

High death/disruption risk

GR

OW

—>

CREATE — >

EXPLOREINNOVATION ENGINE

EXPLOITEXECUTION ENGINE

transfer A BM from EXPLORE portfolio to EXPLOIT portfolio

©

?

?Portfolio Evolution

Low death/disruption risk

PROTECT — >

Business Model Portfolio (EXPLORE)

INVENT — >

Low innovation riskHigh innovation risk

Low expected return

High expected return

TEST — >

DES

IGN

—>

IDEATE — >

LAUNCH —

>

EXPLORE

Business Model Portfolio (EXPLOIT)

IMPROVE —

Low real return

High real return

High death/disruption risk

GR

OW

—>

CREATE — >

EXPLOREINNOVATION ENGINE

EXPLOITEXECUTION ENGINE

transfer A BM from EXPLORE portfolio to EXPLOIT portfolio

©

Unbalanced Portfolio

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Low death/disruption riskPROTECT — >

Business Model Portfolio (EXPLORE)

INVENT — >

Low innovation riskHigh innovation risk

Low expected return

High expected return

TEST — >

DES

IGN

—>

IDEATE — >

LAUNCH —

>

EXPLORE

Business Model Portfolio (EXPLOIT)

IMPROVE —

Low real return

High real return

High death/disruption risk

GR

OW

—>

CREATE — >

EXPLOREINNOVATION ENGINE

EXPLOITEXECUTION ENGINE

transfer A BM from EXPLORE portfolio to EXPLOIT portfolio

©

Balanced Risky Portfolio

5.9% 2.5% 1.1% 0.4%

25.3%

64.8%

Early-StageVenture Returns (2004 - 2013)

Source: Correlation Ventures (data from VentureSource and other)

0 - 1.0x 1.0 - 5.0x 5.0 - 10.0x 10.0 - 20.0x 20.0 - 50.0x 50.0x +

Gross Realized Multiple Range

70%

60%

50%

40%

30%

20%

10%

0%

% o

f Fin

anci

ngs

6 out of 10 investments lose money

1 out of 4 makes some money

4 out of 100 are home runs

“At Amazon we invented a lot of things that customers did not

care about at all.” — @jeffbezos

Low death/disruption risk

PROTECT — >

Business Model Portfolio (EXPLORE)

INVENT — >

Low innovation riskHigh innovation risk

Low expected return

High expected return

TEST — >

DES

IGN

—>

IDEATE — >

LAUNCH —

>

EXPLORE

Business Model Portfolio (EXPLOIT)

IMPROVE —

Low real return

High real return

High death/disruption risk

GR

OW

—>

CREATE — >

EXPLOREINNOVATION ENGINE

EXPLOITEXECUTION ENGINE

transfer A BM from EXPLORE portfolio to EXPLOIT portfolio

©

Balanced Portfolio

do you have a balanced portfolio that makes you invincible?

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[email protected]

Building the Strategic Operating System for the FT Global 500

47

If you like this presentation, please, feel free to share it but keep these copyright restrictions in mind:

• The Strategyzer logo should always fully appear on any slide that contains our illustrations and/or content.

• This content should not be published on any other online or offline channels other than Strategyzer’s, unless this has been previously agreed upon by Strategyzer AG and formalized in a written agreement.

• This content cannot be resold or integrated into any physical or software product.

The Business Model Canvas is licensed as creative commons. Enjoy it and adapt it freely, as long as you reference with citation

“Strategyzer.com” and share your work under the same license. The Value Proposition Canvas is copyrighted Strategyzer AG and is not to be modified or used in software or other commercial products. Feel free to use the Business Model Canvas and Value Proposition

Canvas in meetings or for consulting services under the condition of referencing and citing “Strategyzer.com” and fully displaying the

Strategyzer logo.

You can find additional information on businessmodelgeneration.com/canvas/bmc under “Legal Info”. Please contact [email protected] for any inquiry.

These slides are copyright of Strategyzer AG and are intended for personal use only. For other uses please inquire about licensing fees with Natasha at [email protected]. The following applies to any content you intend to reuse: