Mark johnson business model transformation
22
description
Business model innovations have reshaped entire industries and redistributed billions of dollars of value. In best-selling author Mark Johnson’s enlightening presentation at Presidents Conference 2012, he shares insights that will help foodservice professionals develop the confidence to think about innovating their own business.
Transcript of Mark johnson business model transformation
Business Model Transformation:Succeeding in new growth and renewal
Mark W. JohnsonCo-Founder and Senior PartnerInnosight
The evolution of the MP3 player
1998Rio Diamond
2000Best DataCabo64
2002Rio Riot
2005iPod Shuffle
2007iPod Touch
2003iPod 3G
2006iPod Nano
iTunes/iPod and Apple’s growth
Steve Jobs announcing Apple’s Digital Hub Strategy January 2001
Core vs. New Growth Innovation
AND not OR!
Established Business (Model)
Strengthening and extending the core Creating the new
NewBusiness (Model)
Profit Formulaand Core Mission
Customer Value Proposition
Key Processes
Key Resources
The business model defined
Hilti: transforming an existing market
Power tools and accessories Fleet management to improve on‐site productivity
Low margin,high inventory turnover
Subscription model covering asset‐heavy balance sheet
Retail distribution Direct Sales, Contract management, IT Systems
Tool Fleet Management ServicesTradt’l Power Tool Company
Customer Value
Proposition
Profit Formula
KeyResources
KeyProcesses
vs.
Godrej: creating a new market
Addressing Awareness, Access, and Affordability
The new growth innovation process
IdentifyThe Jobs-to-be-Done
1
Blueprint business model
2
Test and Learn
3
Addressing the “job-to-be-done”
Key to a powerful CVP:Start with understanding the important, unsatisfied jobs-to-be-done
The new growth innovation process
IdentifyThe Jobs-to-be-Done
Blueprint business model Test and Learn
1 2 3
Profit Formulaand Core Mission
Customer Value Proposition
Key Processes
Key Resources
The business model defined
CVP (Importance)(Satisfaction)
Maximizing the value proposition
OfferingPrice
= Job
© Copyright 2012 Innosight LLC 17
Blueprinting a Business Model
Profit Formula
Rules, Norms & Metrics
Rules, Norms, and
Metrics (e.g. margin)
Rules, Norms, and
MetricsRevenue model
Job to be done
Cost structure (direct and overhead) & Resource velocity
Offering:• Product / Service
• Access/Channel
• Payment scheme / Price
Key Resources
Key Processes
Customer Value
Proposition
(e.g. brand, people, technology, channel)
(e.g. R&D, manufacturing, HR, marketing, IT)
17
Partnerships, collaboration,
shared services
© Copyright 2012 Innosight LLC 18
The new growth innovation process
IdentifyThe Jobs-to-be-Done
Blueprint business model Test and Learn
1 2 3
The need for testing and learning
Amazon.com: Built to transform
“If you want to continuously revitalize the service that you offer to your customers, youcannot stop at what you are goodat. You have to ask what yourcustomers need and want, andthen, no matter how hard it is, youbetter get good at those things.”
–Jeff Bezos, CEO, Amazon
Business Model Innovation:Design around the job
Thank YouThank You
For more information, please visit us at:
www.SeizingTheWhiteSpace.com
www.Innosight.com
