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Business Model Innovation & Strategy

Business Model Innovation & Strategy For the SBDC New England Professional Development (NEPD) Conference Josh Daly RI Small Business Development Center. Let’s ask two questions to get at the “so what”…. What’s the purpose of a business?. What’s the purpose of a business? m ake money,

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Business Model Innovation & Strategy

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  1. Business Model Innovation & Strategy For the SBDC New England Professional Development (NEPD) Conference Josh Daly RI Small Business Development Center

  2. Let’s ask two questions to get at the “so what”…

  3. What’s the purpose of a business?

  4. What’s the purpose of a business? make money, create a product or service, solve problems, make a profit, create jobs, lifestyle for owners…

  5. What’s the purpose of a business? “The purpose of a business is to create a customer.” -- Peter Drucker

  6. Who wants to read a business plan?

  7. Who wants to read a business plan? lender, landlord, spouse…

  8. Who doesn’t care about your business plan?

  9. Who doesn’t care about your business plan? YOUR CUSTOMER!

  10. Some Key Take-Awaysre: Business Model Canvas/Lean Approach The “lean” business model generation approach is about finding the fastest, most effective routes for creating a customer (and for repeating and scaling the process).

  11. Some Key Take-Awaysre: Business Model Canvas/Lean Approach Dynamic, iterative process About testing hypotheses – (“Fail fast,” “Nail it, then scale it,” “Pivot,” etc…) About finding what’s repeatable and scalable Need feedback from users/customers early & often – “kill your darlings” Get feedback through variety of tools - MVP/beta test

  12. Business Model Innovation

  13. Three Types of Innovation • Product • Process • Business Model

  14. Three Types of Innovation • Product  technology, UX/UI • Process  efficiencies • Business Model  ???

  15. Three Types of Innovation • Business Model Innovation  improve how business creates, delivers, and/or captures value

  16. Business Model Innovation • Example: What ever happened to them?

  17. Business Model Innovation

  18. Business Model Innovation Business Model & Technology Innovation Business Model Innovation

  19. Business Model Innovation By mail, then streaming Brick & Mortar Kiosk

  20. Business Model Innovation Home Video Market Mobile Battery/Power Market

  21. Business Model Innovation Business Model Innovation UX/UI Innovation Tech Innovation

  22. Business Model Strategy

  23. Additional Resources... BUSINESS MODELING Business Model Generation (Osterwalder& Pigneur) Value Proposition Design (Osterwalder, Pigneur, et al.) “LEAN” Lots of good books… Steve Blank, Ash Maurya, Eric RiesThe Entrepreneur’s Guide to Customer Development (Vlaskovits) Lean Analytics (Croll & Yoskovitz) DESIGN THINKING Creative Confidence (David & Tom Kelley) Youtube: IDEO, “shopping cart” (Nightline special)

  24. More time?Some additional strategy tools…

  25. Your Market Value Chain • Part of the competitive landscape • Each link adds value (and cost) to products on their way to the customer/end user • Partnering with others in the value chain • Partner strengths complement your weakness • Share common objectives and motivations • Add financial, technology, or manufacturing resources • Add geographic presence and sales channels

  26. Competitive Positioning • The Target Market/Competitive Position • The foundation for strategy and messaging • One concise statement • Shows customers, partners, and investors why it works • Three elements • Unique competitive differentiation or advantage • Value proposition (business and social) • Target customer getting the value

  27. Competitive Positioning • Competitive Differentiation/Advantage: Is this a new market, or an existing market with known competition? If new, how is your product/service better than the way customers currently satisfy the need? How is your product/service better than competition (price, function, physical, ease of use, services, etc.)? • Value Proposition: How does your product/service benefit your customer? Can you quantify it or monetize the benefit? Will the customer use your product/service repeatedly, or only once for a specific purpose? • Target Customer Receiving the Value: What specific customer characteristics make them more likely to want and buy your product? Do these characteristics fall occur within easily described groups (age, gender, marital status, career, etc.)? Will customers readily identify with these characteristics and groups?

  28. Product and Market Roadmap Product-Competitive Characteristics (SW) Competitors Moving to Target Position Over Time Addressable Market Time 1-MVP 2 3 4

  29. MultipliersLevers • Sales & Marketing • Inbound • Viral • Web • Product • Offshoring • Outsourcing • Crowdsourcing • Co-creation • Sales & Marketing • Tiered pricing • Freemium • Channel partners • Product • “Slippery” design • “Russian doll” packaging • Technology stacks • Source: Michael Skok, Harvard i-lab

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