Business Model Innovation (PowerPoint PPT Slide Deck)

INNOVATION MANAGEMENT PPT DESCRIPTION

This product (Business Model Innovation) is a 30-slide PPT PowerPoint presentation slide deck (PPT), which you can download immediately upon purchase.

Read Marcus Overview

Explore Slides inside the Deck:

Transforming Business Models: Dow Corning's Strategic Shift Identifying Institutional Barriers to Business Model Innovation Framework for Defining Customer Value and Profitability

Innovative business models can reshape industries and drive tremendous growth. However, many organization find business model innovation difficult. The framework outlined in this presentation is based on the HBR article "Reinventing Your Business Model," authored by Clayton Christensen, Mark Johnson, and Henning Kagermann.

A successful business model has 3 key components:

*Customer Value Proposition. The model helps customers perform a specific "job," which alternative offerings don't effectively address.

*Profit Formula. The model generates value for your organization through such factors as revenue model, cost structure, margins, and inventory turnover.

*Key Resources and Processes. Your organization has the people, technology, products, equipment, facilities, and brand required to deliver the defined value proposition to the target customers. It also must have the processes to leverage these resources.

This document includes instruction slides, slide templates, and case examples.

Business model innovation is often recognized, but rarely implemented effectively. Despite a strong awareness of its importance, many companies struggle to execute it successfully. This document delves into the reasons behind this phenomenon, highlighting the common pitfalls and challenges that organizations face. It provides a comprehensive approach to overcoming these obstacles, ensuring that your business model innovation efforts are not only recognized, but also successfully executed.

The presentation outlines a structured approach to business model innovation, emphasizing the need for a clear customer value proposition, a robust profit formula, and the effective utilization of key resources and processes. It includes detailed case examples and templates to guide you through the process, making it easier to understand and apply the concepts. The document also addresses the importance of patience and adaptability in the innovation process, stressing that successful business model innovation requires a balance between long-term growth and short-term profitability.

This resource is essential for any organization looking to stay competitive in today's rapidly changing market. It provides actionable insights and practical tools to help you navigate the complexities of business model innovation. Whether you're looking to adapt your existing model or create a new one, this document offers the guidance you need to achieve your goals and drive sustainable growth.

MARCUS OVERVIEW

This synopsis was written by Marcus [?] based on the analysis of the full 30-slide presentation.

Executive Summary
This Business Model Innovation presentation is designed to empower organizations to reshape their business models and drive significant growth. Drawing insights from the HBR article "Reinventing Your Business Model," co-authored by Christensen et al., this consulting-grade (McKinsey, Bain, or BCG-quality; not affiliated) deck provides a structured framework for understanding and executing business model innovation. Buyers will gain actionable strategies to articulate customer value propositions, develop viable profit formulas, and leverage key resources and processes effectively.

Who This Is For and When to Use
•  Corporate executives seeking to innovate their business models
•  Integration leaders tasked with aligning new strategies across teams
•  Consultants advising clients on business transformation
•  Product managers aiming to refine offerings based on customer needs

Best-fit moments to use this deck:
•  During strategic planning sessions focused on innovation
•  When assessing the viability of existing business models
•  In workshops aimed at developing new customer value propositions
•  For training sessions on business model frameworks and methodologies

Learning Objectives
•  Define the components of a successful business model
•  Build a compelling customer value proposition that addresses key customer jobs
•  Establish a profit formula that aligns with organizational goals
•  Identify and leverage key resources and processes for effective execution
•  Analyze existing business models for potential areas of innovation
•  Develop a blueprint for a new business model that captures market opportunities

Table of Contents
•  Overview (page 4)
•  Business Model Innovation Approach (page 12)
•  Business Model Elements (page 18)
•  Case Examples (page 22)
•  Templates (page 25)

Primary Topics Covered
•  Business Model Innovation Approach - A structured three-step process focusing on opportunity identification, blueprint construction, and comparison with existing models.
•  Customer Value Proposition - Defines how a business helps customers complete essential jobs, emphasizing the importance of precision in addressing customer needs.
•  Profit Formula - Outlines how a company creates value for itself while delivering value to customers, including revenue models and cost structures.
•  Key Resources - Identifies essential assets required to deliver the value proposition, including technology, people, and partnerships.
•  Key Processes - Describes operational and managerial processes that enable the delivery of value, focusing on scalability and efficiency.
•  Institutional Barriers - Highlights the invisible rules and norms that can hinder the adoption of new business models within organizations.

Deliverables, Templates, and Tools
•  Business model blueprint template for visualizing established vs. new business models
•  Customer value proposition template to clarify how offerings meet customer needs
•  Profit formula template to outline revenue and cost structures
•  Key resources and processes template for mapping essential assets and operations
•  Case study examples illustrating successful business model innovations
•  Framework for assessing existing business models and identifying innovation opportunities

Slide Highlights
•  Overview of the business model innovation framework, emphasizing its 3 key components
•  Detailed breakdown of customer value propositions and their critical role in business success
•  Visual representation of profit formulas and how they impact overall business viability
•  Case examples showcasing successful business model transformations by companies like Hilti and Dow Corning
•  Templates designed for immediate application in business model assessments and innovations

Potential Workshop Agenda
Business Model Innovation Overview (60 minutes)
•  Introduce the concept of business model innovation and its importance
•  Discuss the three-step approach to innovation
•  Explore the components of a successful business model

Customer Value Proposition Development (90 minutes)
•  Identify key customer jobs and unmet needs
•  Workshop on crafting precise value propositions
•  Present and critique value propositions in small groups

Profit Formula and Resource Mapping (90 minutes)
•  Analyze existing profit formulas and identify gaps
•  Workshop on mapping key resources and processes
•  Develop actionable strategies for improvement

Customization Guidance
•  Tailor the customer value proposition template to align with specific market segments
•  Adjust the profit formula template to reflect unique cost structures and revenue models
•  Modify key resources and processes templates to include organization-specific assets and capabilities
•  Incorporate case examples relevant to your industry for contextual learning

Secondary Topics Covered
•  The role of disruptive innovation in business model transformation
•  Strategies for overcoming institutional barriers to innovation
•  The importance of patience in adapting new business models for growth
•  Techniques for assessing market signals that indicate a need for model changes
•  Examples of successful and unsuccessful business model innovations

FAQ
What is the primary focus of business model innovation?
Business model innovation focuses on redefining how a company creates, delivers, and captures value, often through new customer value propositions and profit formulas.

How can I assess if my existing business model needs to change?
Evaluate your current model by identifying customer needs it addresses, monitoring market signals, and determining if a new model could significantly alter your industry.

What are the key components of a successful business model?
A successful business model includes a clear customer value proposition, a viable profit formula, and the necessary key resources and processes to deliver value.

How do I create a compelling customer value proposition?
Identify the specific job your product or service helps customers complete, ensuring that your offering addresses unmet needs more effectively than alternatives.

What is the significance of the profit formula in a business model?
The profit formula outlines how a company generates revenue and manages costs, ensuring that the business can sustain itself financially while delivering value to customers.

Can existing business models be adapted without complete reinvention?
Yes, many companies can adapt their existing models by refining their value propositions and profit formulas without a complete overhaul.

What institutional barriers might hinder business model innovation?
Common barriers include ingrained financial metrics, operational norms, and organizational rules that resist change and inhibit new models from taking root.

How can companies ensure they are patient for growth, but impatient for profit?
Organizations should focus on validating their business models through early profitability while allowing time for market opportunities to develop.

Glossary
•  Business Model - A framework for how a company creates, delivers, and captures value.
•  Customer Value Proposition - The unique value a product or service provides to customers.
•  Profit Formula - The method by which a company generates revenue and manages costs.
•  Key Resources - Essential assets required to deliver the value proposition.
•  Key Processes - Operational processes that enable the delivery of value to customers.
•  Disruptive Innovation - Innovations that create new markets and value networks, often displacing established market leaders.
•  Institutional Barriers - Organizational norms and rules that inhibit change and innovation.
•  Market Signals - Indicators that suggest changes in customer needs or competitive dynamics.
•  Revenue Model - The strategy for generating income from customers.
•  Cost Structure - The allocation of costs associated with delivering a product or service.
•  Resource Velocity - The speed at which resources are utilized to support business operations.
•  Operational Processes - Routine activities that support the delivery of products or services.
•  Managerial Processes - Activities that govern the organization and its resources.
•  Customer Jobs - Tasks or problems that customers seek to address through products or services.
•  Value Creation - The process of generating value for customers and the organization.
•  Market Opportunity - A favorable condition that allows a business to grow or innovate.
•  Business Unit - A segment of a company that operates independently to pursue specific market opportunities.
•  Competitive Advantage - A condition that allows a company to perform better than its rivals.
•  Scalability - The ability of a business model to grow and manage increased demand without compromising performance.
•  Innovation Investment - Resources allocated to developing new products, services, or business models.
•  Customer Segmentation - The process of dividing a customer base into distinct groups with similar needs or characteristics.

INNOVATION MANAGEMENT PPT SLIDES

Transforming Business Models: Dow Corning's Strategic Shift

This slide presents a case study of Dow Corning's business model adaptation targeting low-end customers through a distinct business unit. The established model focuses on a customer value proposition of customized solutions and negotiated contracts for premium clients, relying on high-margin, high-overhead retail prices and emphasizing R&D, sales, and service orientation. The new business unit offers a simplified value proposition with no-frills, bulk pricing sold online, shifting to spot-market pricing with lower overhead. This streamlined operation prioritizes efficiency and incorporates an IT system for low-cost processes and maximum automation. Dow Corning's approach illustrates effective market segmentation, enabling growth while preserving core business revenue streams.

Identifying Institutional Barriers to Business Model Innovation

This slide addresses institutional barriers hindering the adoption of new business models within organizations, categorized into Financial, Operational, and Other areas. Financial barriers include metrics like gross margins, opportunity size, and unit pricing, which can resist new models misaligned with established financial expectations. Operational barriers involve factors such as end-product quality and customer service, reflecting the need to maintain existing standards that may conflict with innovation. The Other category encompasses pricing strategies and performance demands, adding complexity tied to individual incentives and brand parameters. These entrenched rules and metrics can lead to stagnation, making it challenging for companies to adapt and innovate effectively.

Framework for Defining Customer Value and Profitability

This slide outlines essential components of a business model, focusing on the profit formula, key resources, and key processes that shape the customer value proposition. The customer value proposition consists of identifying the target customer, understanding the job to be done, and offering a solution that meets customer needs. The profit formula details revenue generation, cost allocation, and the margin model necessary for desired profit levels, emphasizing financial mechanics for sustainable operations. Key resources include people, technology, equipment, information, channels, and partnerships, highlighting the diverse assets required to deliver value. Key processes involve rules and metrics guiding operational efficiency, defining norms, and establishing investment criteria to align resources with strategic objectives.

Three-Step Framework for Business Model Innovation

This slide outlines a structured approach to business model innovation, emphasizing 3 critical steps. The first step, "Focus on the Opportunity," involves identifying real customer needs rather than adhering to existing business models. The second step, "Construct a Blueprint," requires creating a detailed plan with 4 components: Customer Value Proposition, Profit Formula, Key Resources, and Key Processes, which align with market demands. The final step, "Compare New Model with Existing," necessitates analyzing the proposed model against the current one to determine necessary changes and assess organizational adaptability. Successful companies fulfill customer needs through effective business models that align with customer expectations, driving innovation and growth.

Integrating Key Resources and Processes for Value Delivery

This slide outlines critical components of key resources and processes essential for delivering value propositions. Key resources include personnel, technology, and brand assets vital for fulfilling customer needs. Key processes encompass operational and managerial practices that enable consistent value delivery across functions like training, development, manufacturing, and sales. Successful organizations uniquely integrate their resources and processes to serve target customers effectively. For example, professional services firms prioritize personnel, while packaged goods companies focus on branding and channel management. Aligning the value proposition with the profit formula is crucial for a sustainable business model, with rules and metrics emerging as businesses adapt during early stages.

Key Circumstances Necessitating Business Model Innovation

This slide outlines 5 circumstances prompting business model innovation: 1. Addressing disruptive innovations for large customer groups needing affordable solutions, exemplified by Tata Motors' Nano car. 2. Leveraging new technologies to create innovative business models or introduce existing technologies to new markets, as demonstrated by Apple with MP3 players. 3. Establishing a job-to-be-done focus to enhance customer-centricity, illustrated by FedEx's prioritization of customer needs. 4. Defending against low-end disruptors, with mini-mills in the steel industry showing how lower-cost alternatives threaten established players. 5. Adapting to shifting competition, as seen with Hilti's response to evolving manufacturing costs that allowed low-end entrants to penetrate their market. These insights guide executives on when to innovate business models in response to market pressures.

Source: Best Practices in Innovation Management, Business Model Innovation, Business Model Design PowerPoint Slides: Business Model Innovation PowerPoint (PPT) Presentation Slide Deck, PPT Lab