Innovationen sind planbar_CeBM_Urs Karrer_IBM Symposium2013

© 2013 IBM Corporation

Cloud-enabled Business Model

Innovation

Urs Karrer, Ph.D.

Technology Strategy Lead, IBM Switzerland


“Everybody talks about it, but what exactly is Strategy ???”

“We test a new product

with a cloud solution”

“Our business

transformation includes

new ways of operating

… is this innovation?”

“Everybody talks about it, but what exactly is Cloud-enabled Business Model Innovation”

© 2013 IBM Corporation 2

“Cloud in itself is an

innovation for us,

is it not?”


Agenda

3

External forces

Cloud & Business Model Innovation

Case studies

What it means for you


External forces


Many forces influence an environment that is conducive for invention and

innovation

5

Policies & Governance

Education System

Social Environment

& Infrastructure

Patent & IP

Management

Innovation Practices

& Partnering

Openness versus operational control

33%23%

44%

46%

22%

32%

Austria & Switzerland

Global

Integrating business

and technology

for innovation


1700+ CEOs rank “technology” as the number one external force that will impact their organizations in the next couple of years

6

Source: Global CEO Study 2012, IBM

Institute of Business Value (IBV)

6

Source: Q1 “What are the most important external forces that will impact your organization over the next 3 to 5 years?” (Global n=1709) (Austria & Switzerland n=69)

2012

Global Austria & Switzerland

Regulatory Concerns

Technological Factors

Macro-economic factors

Socio-economic factors

People Skills

Globalization

Market Factors

Geopolitical issues

Environmental issues

3

1

2

6

5

4

7

7

9


Cloud computing in a nutshell


Cloud computing – rethink IT, reinvent business

Elastic resources

Scale up or down quickly and easily to meet demand

Pay for use

Metered service usage so you only pay for what you use

Self service

All the IT resources you need with self-service access

IaaS PaaS

SaaS

8


Cloud computing – rethink IT, reinvent business

9

Public

Private

Hybrid

Elastic resources

Scale up or down quickly and easily to meet demand

Pay for use

Metered service usage so you only pay for what you use

Self service

All the IT resources you need with self-service access


1 Cost Flexibility Quicker payback, higher ROI,

from fine-grained variable cost

procurement

Scalability 2 Rapid, unlimited, elastic

provisioning of resources

critical to business capabilities

Market

Adaptability 3

Expedites prototyping for faster

time to market and innovative

idea adoption

Masked

Complexity

4

Facilitates consumption,

increases feasible product and

service sophistication

Context-driven

Variability 5

Experiences defined via user

preferences, movements and

behaviors

Eco-system

Connectivity 6 Facilitates different and new

value nets of partners,

customer and alliances

We see six distinct business value enablers


The what and the how


The what and the how of Business Model Innovation (BMI) …

12

The What

Th

e H

ow

Business Model Innovation The What – Revenue Model

Source: O. Gassmann et al., The St. Gallen Business Model

NavigatorTM, 2013

What is your customer value proposition?

Key finding: 55 business patterns and about 20 business

innovation models exist that can be re-applied, combined,

leveraged, e.g., sharing model, “freemium” model

The How – Enterprise/Industry Model

Source: IBM Institute of Business Value, Expanding the Innovation

Horizon, 2006

How do you operate your business?

How are you providing your product/service?


Disruptor

Innovator

... helps to categorize business model innovation

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The What

Enhance Extend Invent

Th

e H

ow

Imp

rove

T

ran

sfo

rm

Cre

ate

Optimizer

Disruptors

Innovators

Optimizers

Radically different value proposition, new

customer segments, transform the industry

irreversibly and/or create new markets

Significant new value proposition, new

revenues streams and/or change of role within

the industry, enter different industry

Enhance customer value proposition and/or

improve organizational efficiency

http://precisionlender.com/


Representative CeBM case studies


Analyzing consumer emotions leveraging high-powered,

low-cost cloud resources

15

Opportunity Result

Need computing power

No budget Minimal IT infrastructure

Pay as you go

Available capital for

investment

Facts & Figures

Headquarters:

Lausanne (CH)

Founded: 2009

Sales: n/a

About: Privately held

company based at the

EPFL

Dedicated to develop

technologies for

deciphering emotions

by interpreting facial

emotions and eye

movements

Solution

IBM SmartCloud SaaS

secures high-powered, low-

cost resources

Nviso provides analysis on

consumer emotions

Source: Nviso and IBM


Getting to know your customer through cloud-based

analytics

16

Flooding the customer with

newsletters

Ineffective marketing

What if targeted email based

on behavioral segmentation

could improve campaign

results dramatically ?

+65 % more emails

opened and 6.5x higher

click rates on w3

25 times greater online

revenue

+17 times improved

customer conversion

Opportunity Result Facts & Figures

Headquarters:

Manosque (F)

Founded: 1976

Employees: 5’000

Sales: 1’000+ MCHF

About: Global, natural

and organic ingredient-

based cosmetics and

well-being products

manufacturer and

retailer with strong

regional roots in

Provence, France

Source: L‘Occitane and IBM

Cloud-based analytics for

customer profiling and

segmentation

IBM SmartCloud SaaS

Solution


Inspired by cloud: Building as a Service (BaaS)

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The opportunity The result

Average occupancy < 55 %

Required meeting space

fluctuates by ~ 300 %/year

25% of reservations are not

used

End user: 15% time saving

Operator: 30% productivity

Tenant: 20% space savings

Vacancy 14%

Serviced Offices

1%

Rented Offices

85%

The solution

Virtualizes office space

Pay-as-you-go office

Double-sided business

model

IBM SmartCloud IaaS

Facts & Figures

Headquarters: Zurich

Founded: 2011

Sales: n/a

About: Technology

company that

developed and

leverages new breed

of software to create

high-performance

buildings

Winner of Swiss

EuroCloud award

Source: Performance Buildings and IBM


What it means for you


Benefits are many – need to continue to work on addressing challenges

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1 Cost Reduction

Unlimited resources 2

Fast time-to-market 3

Easy-to-use 4

Configuration flexibility 5

Ecosystem connectivity 6

Benefits

1 Risk and Compliance

2 Integration and Transformation

3 IT Skills and Organization

4 Cloud Governance

Challenges


Thank you for your attention

20

Contact: Urs Karrer, PhD, Technology Strategy Lead IBM Switzerland | [email protected] | +41.58.333.7317

mailto:[email protected]

Innovationen sind planbar_CeBM_Urs Karrer_IBM Symposium2013

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