Business Model Innovation for Management Consultants

To describe business models, you can use many tools. One of the most popular ones is the so-called Business Model Canvas. We will discuss it in this section.

To describe business models, you can use many tools. One of the most popular ones is the so-called Business Model Canvas. We will use it in this course. In this lecture, we will see what it is.

Let’s see how we can present the McDonald’s business model in the form of Business Model Canvas.

I will use Netflix as an example to show you how you can transform by gradual change of your business model.

I will use Netflix as an example to show you how you can transform by gradual change of your business model.

I will use Netflix as an example to show you how you can transform by gradual change of your business model.

One of the biggest sources of innovation is to play with customer segments. In this section, we will discuss techniques that you can use to innovate in customer segments.

One of the ways to create a profitable niche is to apply the so-called Blue Ocean. Here I will discuss the general framework for that

For Blue Ocean very important is the concept of non-users that are pivotal for this strategy. Here I will discuss who do they have in mind and what type of users we have

In Blue Ocean, there is 4 action framework. We will discuss them in detail in this lecture

You can reach the Blue Ocean by taking one of the six paths. You can look across. We will discuss them in detail in this lecture

In this lecture, I will discuss how Blue Ocean was implemented by Starbucks

In this lecture, I will discuss how Blue Ocean was implemented by Citizen M

In this lecture, I will discuss how Blue Ocean was implemented by Zappos.

In this section, I will show a powerful framework that can be used to understand the role which the product plays in the life of a customer. This will help you innovated, find new business ideas and most of all identify the right competitor landscape from the point of view of the customers.

Let’s start with a short definition of Jobs to be done

• When we buy a product we essentially hire the product to get a specific job done.

• We define the “job” as the progress that the person is trying to make in particular circumstances and area

• The very same job can be done by totally different products or services

• Therefore, don’t fall in fall with your product, and don’t look too narrowly at the competitive landscape

• Be obsessed with the problem and the job that the customer hires you to do

• The same product for the specific customer can perform different jobs in different circumstances

Let’s try to define what jobs does the coffee and Facebook

Let’s see the process that will help you understand the Job To Be Done for a specific group of customers

• Understand the Jobs to Be Done

• Define the changes to your product

• Implement the changes and adjust the organization

• Change the positioning and the messaging

• Keep Focused on the Jobs to Be Done

Let’s see the process that will help you understand the Job To Be Done for a specific group of customers

• Understand the Jobs to Be Done

• Identify who is currently doing the Job

• Create the prototype of the product

• Start selling & marketing

• Keep Focused on the Jobs to Be Done

There are 5 main ways to find the Jobs to Be Done

• Observe jobs in your own life

• Analyze non-consumption

• Analyze workarounds & compensating behaviors

• Negative jobs

• Spot unusual usage of the product

Now let's see how you can define your competitors, through the customer's lenses. We will apply the jobs to be done framework.

We will define the Starbucks and Netflix competitors.

In many cases, your demand is limited by something that you cannot control directly. In such cases, you may be interested in enabling investments

Enabling investment can be done in different places depending on where the bottleneck is

• Demand-side

• Supply-side

• Distribution side

Let’s have a look at how a retail chain for kids’ products can do enabling investments to support the sales of its products and in Tesla

Another great source of innovation is to work on the Value Proposition. We will discuss in this section, what techniques you can use to innovate the Value Proposition.

If you have a strong brand you can expand it by selling new products. In this section, we will define how you can do it.

You can also think about adding new products within existing categories. This is what we will discuss in this lecture

Here I will discuss the case of domestic appliance produces that we will use in the next few lectures

Here I will show you the solution to the previously introduced case in Excel

Here I will show you the solution to the previously introduced case in Excel

Here I will show you the solution to the previously introduced case in Excel

More risk is entering totally new categories. It is doable if you have a strong brand and you pick the right categories. We will discuss it in this lecture and later on show how to do it using a nice case study

Let’s have a look at a milk producer that wants to expand its product range. In this case, you will be asked to analyze and find the best candidates for brand expansions.  

Let’s have a look at a milk producer that wants to expand its product range. In this case, you will be asked to analyze and find the best candidates for brand expansions.  

Let’s have a look at a milk producer that wants to expand its product range. In this case, you will be asked to analyze and find the best candidates for brand expansions.  

In this lecture, I will show you how to solve the case shown in the previous lectures. 

Not always an introduction of a new product makes sense.  I will show you here how to check whether you are making the right decision. We will be using in this case a salad fast food that has just introduced 2 new products and you want to check whether it makes sense. 

In this lecture, I will show you how to solve the case shown in the previous lectures. 

In this lecture, I will show you how to solve the case shown in the previous lectures. 

The customer wants to achieve certain results, to get the job done. By observing the whole context of using the product you can expand the product.

Simplicity is quite often the key to success. We will discuss how you can innovate by simplifying the product.

Many firms to increase their control over consumers create the whole ecosystem. In this way, the customer has hardly any reason to check the competitor’s offer.

One of the most underrated strategies is to divide the product and sell it in smaller pieces.

You can increase sales and product adoption by bundling products. This can also work as a defensive strategy.

Another way to innovate is to turn a physical product into a digital one. In this way, you can increase the value of the customer and reach new customers.

Some firms resort to Innovation in the Key Resources department. We will discuss in this section how you can beat your competition by innovating in this area.

Some companies surprisingly decide to own certain key resources. This allows them not only to grow but to defend against competitors.

To grow the business in most cases you have to invest in assets, resources. As an alternative, you can crowdsource the assets.

You can also look at Key Activities and innovate in this area as well. In this section, we will see how you can do that in practice.

In more and more cases you have to find a way to replace or support people with machines to lower down production costs.

Sometimes you have to make the process more scalable in order to be able to grow the whole operation. Let’s see what it will give us and how it can be achieved.

Making the process more scalable can help you achieve a lot of things. We will discuss this in this lecture and briefly go through methods that you can use

• The process stops being a bottleneck

• You require fewer resources and less money to grow

• The scalable process may become competitive advantages

• You may create new businesses that will help you increase the firm’s value

• With a more scalable process, you can grow faster

Sometimes you have to make certain processes more scalable. You do that to simplify the model and not to be stopped in your growth. One way to achieve that is to automate

Imagine that you are working for a fashion discounter that operates a retail chain in Eastern Europe

• Currently, they have bookkeeping processes fully manual

• They require 40 people for that

• In the coming years, the cost will be increasing

• Estimate whether automation makes sense

In this lecture, I will show you how to solve the case shown in the previous lectures. 

In this lecture, I will show you how to solve the case shown in the previous lectures. 

In the next lectures, we will see how to calculate whether an investment that will help us save costs makes sense or not. This time around we will do it for a ceramic tiles producer. We will see whether an investment in robots makes sense

In this lecture, I will show you how to solve the case shown in the previous lectures. 

In this lecture, I will show you how to solve the case shown in the previous lectures. 

In this lecture, I will show you how to solve the case shown in the previous lectures. 

In this lecture, I will show you how to solve the case shown in the previous lectures. 

Firms, unfortunately, overlook innovations that can be done on the cost side. In this section, we will see what techniques can be used in this area and what have done some bold firms in this area.

You can have a much simpler and more efficient business if you transfer costs to your customers. The customer quite often does not notice or does not mind the additional effort.

You can also transfer some of your costs to your suppliers. In this way, you can get higher margins or concentrate on more valuable activities.

A very radical approach is to turn costs into revenues. In this method, you create a business that helps you not only lower your own costs but can be also a source of revenue.

Fast effects can be achieved by innovating Revenue Streams or playing with the Sales Channels. In this section, we will look at examples of techniques and case studies.

By changing the sales channels you can reach new customers or create different business models. Sales channels may require sometimes change in the product and your policies.

Another way to generate new businesses is to change the revenue stream. This may mean how you charge your customer and for what you charge him.

In this section, we will talk about how you can change your business by changing the model in which you claim the money from the customer. The choice of revenue streams also defines the selling model.

In this lecture on the example of a milk-based business, I will show you how your business model may differ depending on what revenue streams you will choose

Here I show when you should use the specific revenue streams. Different revenue streams are perfect for different businesses. By introducing new revenue streams you can totally disrupt your industry.

Here I show when you should use the specific revenue streams. Different revenue streams are perfect for different businesses. By introducing new revenue streams you can totally disrupt your industry.

Ryanair has been also very creative on the revenue side. Here I will show you what revenue streams they have.

Legimi is an e-book reader bit similar to Kindle. They have been very innovative in the way they generate revenue streams

DollarShaveClub is a provider of the razor in a subscription model. They have managed t disrupt the whole industry dominated by Gillette by introducing different revenue streams

Canva is software offered as a SaaS that has been very innovative in charging. They use the freemium model and sell per piece and not in subscription

Some industries require you to innovate also in the area of Key Partners. Thanks to that you can build a powerful competitive advantage. In this section, we will look at some examples.

If you are not satisfied with your current scaling effect you can consider going up or down the value chain. We will discuss it also this option

We will discuss here when it makes sense to expand up or down the value chain.

To show you how it can be done in practice we will discuss here the example of Benefits System from Poland that has expanded in many directions its main business of operating card giving you access to fitness clubs

Another example of the successful implementation of this strategy is Zara. I will discuss it briefly in this lecture

In many industries, we have seen many innovations in the Customer Relationship. In the last section, we will look at some examples and techniques that may prove useful.

In this lecture, we will compare freemium, free, and free trial options.

In many cases, firms use the so-called freemium model to attract a big number of new customers and let them use part of their product for free.

Free trial is another way to help attract quite a lot of customers by providing an opportunity for the customer to try the product for free and see whether it’s something from him.

Surprisingly, a lot of businesses can thrive despite offering their products for free. Let’s see how it is possible.

Imagine that you have to decide what kind of model to pick for the SaaS business: Freemium, Free, Free Trial. In this case study, you will have to decide when each and every tactic makes sense.

Here I will show examples of SaaS business models often using freemium, free, and free trials.

In this lecture, we will solve the previously introduced case study.

In this lecture, we will solve the previously introduced case study.

• Referrals occur when one person recommends a business or a provider to another person

• We can also say that it is a process in which companies reward customers for spreading the word about their product or service

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