1. Marc Sniukas - Doujak Corporate Development

2. Marc Sniukas - Doujak Corporate Development 3. $ 1.600.000,- Marc Sniukas - Doujak Corporate Development 4. Marc Sniukas - Doujak Corporate Development 5. Marc Sniukas - Doujak Corporate Development 6. Marc Sniukas - Doujak Corporate Development 7. Free Download Marc Sniukas - Doujak Corporate Development 8. Business Model Innovation Marc Sniukas - Doujak Corporate Development 9. Strategic Innovation in Theory & Practice. 10. AGENDAWhat are we goingto do today? IntroductionWhy does Strategic Innovation matter? Some Theory (just a little bit)What is Strategic Innovation? In PracticeHow to make it happen? Marc Sniukas - Doujak Corporate Development 11. AGENDA Whos this guy? Marc Sniukas - Doujak Corporate Development 12. AGENDA Whos this guy? Marc Sniukas - Doujak Corporate Development 13. AGENDA Whos this guy? Marc Sniukas - Doujak Corporate Development 14. AGENDA Whos this guy? Marc Sniukas - Doujak Corporate Development 15. AGENDAWhos this guy?StrategyChange ManagementGlobal Development Transformation Local Implementation Cultural ChangeHard Cuts + New GrowthsLeadership Innovation & GrowthLeadership Team Performance Reinventing Existing Businesses Management Team BuildignCreating New BusinessesBuilding Innovation Capabilities Marc Sniukas - Doujak Corporate Development 16. AGENDA Whos this guy? Marc Sniukas - Doujak Corporate Development 17. AGENDA Why StrategicInnovation? Marc Sniukas - Doujak Corporate Development 18. It all started with criticism of strategic management.Content Too much focus on best practices, operational effectiveness and incremental improvements in cost and quality Too much imitation of competitors moves Too much holding on to one strategic position Operational effectiveness is NOT strategy Herding, clustering of companys around the most successful one Process Strategy as incremental adaptation of last years plan (no search for new opportunities, differentiation, and new growth. Planning being too formal and analytical No creativity The assumption of linearity of the process Tools Tools being too analytical Focus on control Tools were developed for a different purpose (analysis, planning and control) Conventional tools provide a snapshot of conventional wisdom No battle plan survives contact with the enemy. General Collin Powell Marc Sniukas - Doujak Corporate Development 19. Marc Sniukas - Doujak Corporate Development 20. Innovation is front and center on the corporate agenda, according to a global survey. Executives are adding more breakthrough innovations and business model changes to their portfolio to fuel the growth engine.Business Week, November 16, 2009 21. Marc Sniukas - Doujak Corporate Development 22. AGENDA What is StrategicInnovation? Marc Sniukas - Doujak Corporate Development 23. Please discuss with your neighbours (groups of 3) What is strategic innovation to you?2 minutes Marc Sniukas - Doujak Corporate Development 24. AGENDA What is Strategic Innovation? Marc Sniukas - Doujak Corporate Development 25. 4 Types of InnovationInternalOperational ManagementInnovation InnovationContinuousDiscontinuousProduct & ServiceStrategic Innovation InnovationExternal Marc Sniukas - Doujak Corporate Development 26. Strategic Innovation is about growthGrowthOrganic growthMergers & Acquisitions Within the Strategicboundaries of the current business Innovation Same or increasedIncreased market market share inshare in mature growing marketsmarkets Marc Sniukas - Doujak Corporate Development 27. Theres no goodjust being better, ...you got to be different.Charles Handy 28. Hey! Theyre lighting their arrows!Can they do that? Marc Sniukas - Doujak Corporate Development 29. Achieving growth and/or differentiation through... Marc Sniukas - Doujak Corporate Development 30. Achieving growth and/or differentiation through... New MarketsNew / Increased ValueNew Business ModelsWhoWhat How is your customer? Which do you offer your customers?do you create your valuecustomer segments do you Products, services, solutions,proposition? How do you serve?experiences.reach the customer? How do What problem do you solve foryou make money?them? Market InnovationValue InnovationBusiness Model Innovation Marc Sniukas - Doujak Corporate Development 31. Achieving growth and/or differentiation through... New MarketsNew ValueNew Business ModelsWhoWhat How is your customer? Which do you offer your customers?do you create your valuecustomer segments do you Products, services, solutions,proposition? How do you serve?experiences.reach the customer? How do What problem do you solve foryou make money?them? Market InnovationValue InnovationBusiness Model Innovation Marc Sniukas - Doujak Corporate Development 32. Achieving growth and/or differentiation through... New MarketsNew ValueNew Business ModelsWhoWhat How is your customer? Which do you offer your customers?do you create your valuecustomer segments do you Products, services, solutions,proposition? How do you serve?experiences.reach the customer? How do What problem do you solve foryou make money?them? Market InnovationValue InnovationBusiness Model Innovation Marc Sniukas - Doujak Corporate Development 33. Achieving growth and/or differentiation through... New MarketsNew ValueNew Business ModelsWhoWhat How is your customer? Which do you offer your customers?do you create your valuecustomer segments do you Products, services, solutions,proposition? How do you serve?experiences.reach the customer? How do What problem do you solve foryou make money?them? Market InnovationValue InnovationBusiness Model Innovation Marc Sniukas - Doujak Corporate Development 34. Achieving growth and/or differentiation through... New MarketsNew ValueNew Business ModelsWhoWhat How is your customer? Which do you offer your customers?do you create your valuecustomer segments do you Products, services, solutions,proposition? How do you serve?experiences.reach the customer? How do What problem do you solve foryou make money?them? Market InnovationValue InnovationBusiness Model Innovation Marc Sniukas - Doujak Corporate Development 35. Achieving growth and/or differentiation through... New MarketsNew ValueNew Business ModelsWhoWhat How is your customer? Which do you offer your customers?do you create your valuecustomer segments do you Products, services, solutions,proposition? How do you serve?experiences.reach the customer? How do What problem do you solve foryou make money?them? Market InnovationValue InnovationBusiness Model Innovation Marc Sniukas - Doujak Corporate Development 36. Achieving growth and/or differentiation through... New MarketsNew ValueNew Business ModelsWhoWhat How is your customer? Which do you offer your customers?do you create your valuecustomer segments do you Products, services, solutions,proposition? How do you serve?experiences.reach the customer? How do What problem do you solve foryou make money?them? Market InnovationValue InnovationBusiness Model Innovation Marc Sniukas - Doujak Corporate Development 37. Achieving growth and/or differentiation through... New MarketsNew ValueNew Business ModelsWhoWhat How is your customer? Which do you offer your customers?do you create your valuecustomer segments do you Products, services, solutions,proposition? How do you serve?experiences.reach the customer? How do What problem do you solve foryou make money?them? Market InnovationValue InnovationBusiness Model InnovationSuperior & Sustainable Financial Performance Marc Sniukas - Doujak Corporate Development 38. AGENDA OKbut how tomake it happen?Theoretically......in practice! Marc Sniukas - Doujak Corporate Development 39. The Purpose Why do it? Simply the Best Operationalisation of the mission statement. Common Understanding Development of common language. Be One Step Ahead Increase competencies to improve existing business models. Growth Targets Generating ideas for new businesses. Create the Future Benefit from strategic competencies of the 2nd and 3rd level. Marc Sniukas - Doujak Corporate Development 40. The Purpose Why do it?Energy &Solar &Woods & TechnicalSurfaces SportsDecorativesComponents Marc Sniukas - Doujak Corporate Development 41. The Process Setting the Stage A Discovery-DrivenApproach Marc Sniukas - Doujak Corporate Development 42. Define the purpose, scope and focus of innovation activities The Process Mobilize the organization Align business and innovation strategies Build leadership alignment & commitment Build a common language and understanding Identifying internal Definition of governance structures and processesand external Definition of metricsopportunities Sensing, seeking Setting the Stageand shapingopportunities Bringing successful ideas to market Describe the Financial impact current businessmodel Incubation Explore and Accelerationunderstand TransitionA Discovery-Drivenconsumer andcustomer needs,Approachmotivations,behaviors Understandemerging markets,industry and socio-ecological trends Turn ideas into market ready concepts Road-test the idea portfolio with key stakeholders, consumers, internal and external Prototyping, Technical feasibility Develop and select ideas Experimentation & learning Develop an idea portfolio Customer & stakeholder feedback Idea Generation (In-house, cross-units, external) Business planning, venturing, secure founding Idea Evaluation Decide of organizational and governance structures Idea Selection Evolution & optimization Strategic decision making Marc Sniukas - Doujak Corporate Development 43. The Future Space Marc Sniukas - Doujak Corporate Development 44. A process and large group event for...Setting the Stage A Discovery-DrivenApproach Marc Sniukas - Doujak Corporate Development 45. May 6-7 The Overall Process April 15Group MgmtMarch 10 MeetingBUWorkshopMgmt Division Mgmt Meetings Presentation ofBusinessDivision Introduction to ModelsMgmtBusiness Model Preparation ofInnovationGMM Group IntroductionFuture Space Research onFinal version 2010 Processinnovative Businessuntil April 29 to PreparationModels and Trends. SIO Group2011 +Business Draft until March 29 to SIOModel DescriptionCoaching Sessions with SIOby Division Mgmt Final Version until April 7 to SIOand their teams. Marc Sniukas - Doujak Corporate Development 46. The Future Space3 steps Marc Sniukas - Doujak Corporate Development 47. 1. Description2. Inspiration3. Creation Marc Sniukas - Doujak Corporate Development 48. Step 1 Description Marc Sniukas - Doujak Corporate Development 49. Our past. Our present. Marc Sniukas - Doujak Corporate Development 50. How your organization became what it is today What was the original idea of the founders? What where the main life changing events in your companys history? (e.g. internationalization, crisis,) What was the focus of the phases between? (e.g. growth, innovation, integration,) What where the main challenges in the respective phases and how did your organization master them? What are the main strengths and mastered challenges you can build your future on? What are 2-3 milestones for the future? Marc Sniukas - Doujak Corporate Development 51. The Process Please form mixed groups of 3 people and B discuss the path of life of your Business Unit.A C A-B-C Interviews A interviews B; C observes & gives feedback B interviews C; A observes & gives feedback C interviews A; B observes & gives feedback Please summarize the main points of your discussion.Total Time = 60 3x 15 interview + 5 feedback Marc Sniukas - Doujak Corporate Development 52. 1 Discussion in the business unit groups on1. Path of life of the business unitMain insights from the A-B-C groupdiscussion. 2 2. Current business modelDiscussion of the main key successfactors of the model including theEconomic Engine. Marc Sniukas - Doujak Corporate Development 53. Business model exhibition Please choose a business model that you are interested to find out more about After 15 minutes when you hear the signal, please change to the next business model booth. In total there will be 3 rounds of Business Model presentations & discussions. Marc Sniukas - Doujak Corporate Development 54. Step 2 Inspiration Marc Sniukas - Doujak Corporate Development 55. Looking outside Marc Sniukas - Doujak Corporate Development 56. 1. Please take your scenario card from your booklet andstudy it for a couple of minutes. 2. Find a partner 3. Discuss with your partner: What could it mean for our Future if my, your or both trends come true? 4. Please change partner and discuss the two trends again. 57. Marc Sniukas - Doujak Corporate Development 58. KEY KEYVALUE RELATIONSHIPS CUSTOMERS PARTNERSACTIVITIES PROPOSITION KEY RESOURCESCHANNELSCOST CENTRESREVENUE STREAMS Marc Sniukas - Doujak Corporate Development 59. Traditional ApproachStrategic Innovation Who People who want a quick bite to eat People who want to sit down and Get in, order, get served quickly, getremain seated for a whileout quickly again Create a 3rd place la Starbucks What Pre-made food prepared constantly Coffee and cakeaccording to demand Made to order (coffee) Standard menus Pre-produced (cakes) Some variations allowed How 1 counter 2 counters Standardized processes Separate seating area for McCaf Central locations with high Key is to increase share of walletfrequencies of the customer and keep him for The key is to serve a maximum a longer period of time in thenumber of people during a given restauranttime Innovative use of existing assets. Marc Sniukas - Doujak Corporate Development 60. Marc Sniukas - Doujak Corporate Development 61. KEY KEYVALUE RELATIONSHIPS CUSTOMERS PARTNERSACTIVITIES PROPOSITION KEY RESOURCESCHANNELSCOST CENTRESREVENUE STREAMS Marc Sniukas - Doujak Corporate Development 62. Marc Sniukas - Doujak Corporate Development 63. Traditional Approach Strategic Innovation Who Kids Everybody from 4-99 Hard Core Gamers The whole family Casual Gamers What High Tech High Performance Family ConsoleConsole Low tech console Focus on fun rather than technical performance How High tech, high end processors for Low tech, lower power processors,speed and graphics, connect over the no additional featuresinternet, additional features (DVD, New movement technologyinternet,...) lower cost high cost lower sales price (190.- ) high sales price (250-300.- ) Marc Sniukas - Doujak Corporate Development 64. 1 Perspective 2020 How will our environment develop? What are relevant trends for us? What will be coming up in the futureand what will be the implications?2 Discussion of innovative business model examples 65. Step 3 Creation Marc Sniukas - Doujak Corporate Development 66. Developing ideas Marc Sniukas - Doujak Corporate Development 67. Method cardsWHOWHATHOW 68. WHO #1 Challenge industry assumptions#11 Target non-customers#12 Target less profitable customers WHAT #13 Target the least satisfied customers #2 Offer complementary products and services #14 Target the chain of buyers #3 Offer solutions and experiences #15 Segment according to commonalities #4 Offer bundles #16 Segment according to circumstances #5 Switch your appeal: functional versus #17 Desegment the customer based emotional HOW #6 Focus on the job to be done #18 Reinvent the customer interface (channels) #7 Selectively eliminate, reduce, raise and create #19 Reinvent your customer relationships #8 Look at subsitutes #20 Invent new revenue streams #9 Expand the use of your assets and capabilities #21 Price differently #10 Look at the customer experience #22 Reinvent you cost base #23 Re-assess your key activities #24 Collaborate with suppliers, partners, the network and ecosystem #25 Look at completely different industries Marc Sniukas - Doujak Corporate Development 69. KEY KEY VALUERELATIONSHIPSCUSTOMERS PARTNERSACTIVITIESPROPOSITION #24 Re-assess your #10 Offer#3 Target non-key activities complementary#13 Switch your customers products and appeal: functional#2 Look at services #4 Target less #25 Collaborate with versus emotionalcompletely differentprofitable suppliers, partners, industries #11 Offer solutions#20 Reinvent your customers the network and and experiencescustomer ecosystemrelationships #5 Target the #12 Offer bundlesleast satisfied #14 Focus on the job customers to be done KEY#6 Target the RESOURCES #15 SelectivelyCHANNELSchain of buyers eliminate, reduce,#7 Segment raise and create#17 Expand the useaccording to #16 Look atcommonalitiesof your assets and #17 Expand the usesubstitutescapabilities#8 Segment of your assets and#17 Expand the use according to capabilities #18 Look at the of your assets and circumstancescustomer experience capabilities#19 Reinvent the#9 Desegment the #18 Look at thecustomer basedcustomer interface customer experience(channels)COST CENTRESREVENUE STREAMS #23 Reinvent your#21 Invent new revenue streamscost base #22 Price differently 70. Group work in the Business Units Based on the insights you gained, please develop ideas for new business models The ideas can be- Cross functional ideas- Ideas for new business models- Social business ideas- Ideas for your own business unit Please note them on post its Please choose ONE most promising idea Please write them on post its and stick them on the canvas Chose the Most Promising Idea Time: 60 71. Business model exhibition Free floating and discussing of the ideas developed by the business units.Time: 60 Marc Sniukas - Doujak Corporate Development 72. Marc Sniukas - Doujak Corporate Development 73. After the Future Space 1.Ideas were clustered and further described. 2.Project Teams were set up to evaluate the details of group wide ideas. 3.Division and Business Unit ideas went straight into the strategy & budgeting process for the following year. Marc Sniukas - Doujak Corporate Development 74. Area Rating DescriptionWhat we know... What we assume...StrategyHow well does the idea fit with our current0 510 strategy? What is the strategic expanding or defending a current purpose of the idea? business building a new one that hasalready been identified laying the foundations forpotential new businesses Organization Resources &CompetenciesWhich do we need?Which do exist already?Which need to bebuild?Change needChange readiness FinanceRevenue potential Financial(Qty x Price) Implications Cost (fix + variable)Unit Margin TargetCash Flow Payoffs in thePayback near