Building the Invincible Corporation - Lean Startup...
Transcript of Building the Invincible Corporation - Lean Startup...
strategyzer.com
Building the Invincible Corporation
#1 strategy
2
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• This content should not be published on any other online or offline channels other than Strategyzer’s, unless this has been previously agreed upon by Strategyzer AG and formalized in a written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:
confidence ...
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
9 10
… but then there’s those who are practically invincible
$3billion
$4.5billion
$8billion
xx
x
x $12billion
“You cannot invent and pioneer if you cannot accept failure.”
— @jeffbezosvs
1. The Business Portfolio Map
2. A VC Investment Mindset
3. The 21st Century Org Chart
14
Business Portfolio Map
Google Sidewalks
Google Ventures
Google Fiber
Nest Labs
Calico
Google Wave
Search/Adwords
Android OS
Gmail
You Tube Google Maps
Waimo
WazeSelf-Driving Cars
Low death/disruption risk
sustainable
PROTECT — >
Business Model Portfolio (EXPLORE)
Low innovation riskw/ evidences
High innovation risk
Low expected return
High expected return
TEST — >
DES
IGN
—>
EXPLORE
Business Model Portfolio (EXPLOIT)
Low real return
High real returnprofitable
High death/disruption risk
GR
OW
—>
EXPLORE
EXPLOIT
Explore & Exploit BM Portfolios
<— spin off
acquisition — >
Google SidewalksGoogle Ventures
Google Fiber
Nest Labs
Calico
Google Wave
Search/Adwords
Android OS
Gmail
You Tube
Google Maps
Waimo
Waze
<— discontinued
58B$
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)
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
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
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
©
power battle? power battle?
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
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?
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: