Business Model Innovation…
Traditional Value Chain vs. Modern Value Chain
Customer Discovery, Phase One: State Your Business Model
Customer Discovery, Phase Two: "Get Out of the Building" to Test the Problem: "Do Customers Care? " Get your team "out of the building" to test the problem and to answer three key questions: • Do we really understand the customer's problem? • Do enough people really care enough about the problem for this to become a huge business? • And will they care enough to tell their friends?
Customer Discovery, Phase Three: "Get out of the Building" and Test the Product/Service Solution
Value proposition?
What are value propositons for the products?
4 areas
HOW? WHAT? $? WHO? €?
9 building blocks
CUSTOMER CLIENT RELATIONSHIPS SEGMENTS CLIENT CAPABILITIES CLIENT SEGMENTS PARTNER CLIENT NETWORK HOW? SEGMENTS CUSTOMER CLIENT SEGMENTS WHO? SEGMENTS CLIENT OFFER CLIENT WHAT? SEGMENTS CLIENT KEY RESOURCES CLIENT SEGMENTS DISTRIBUTION CLIENT CHANNELS SEGMENTS CLIENT COST STRUCTURE $? CLIENT SEGMENTS REVENUE CLIENT €? CLIENT FLOWS SEGMENTS
Nespresso changed the business model for coffee
The business model system PARTNERSHIP NETWORK CAPABILITIES marketi ng production distribu tion machine manufacturer OFFER – VALUE PROPOSITION coffee espresso N machines CUSTOMER RELATIONSHIPS sso Nespre club households KEY RESOURCES espress o capsule s patents on ducti pro es aciliti f distribution channels DISTRIBUTION CHANNELS Nespre sso storutlets retail o eser call c sst Nespreen o. co m COST STRUCTURE production rketing ma TARGETED CUSTOMER SEGMENTS business REVENUE MODEL retail logistics les a capsule s machine sales
RESULTS
35% growth p. a. for the last 7 consecutive years
fastest-growing business in the Nestlé group
Nespresso has a 26. 6 % global share in Espresso machine sales
http: //canvanizer. com/
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