Business Model Navigator Evans Winata Business Coach
Business Model Navigator
Evans WinataBusiness Coach
A strong business model is the bedrock to business success.But all too often we fail to adapt, clinging to outdated models that are no longer delivering the results we need.
Disruptive ForcesBe very afraid…
Disruptive ForcesTECHNOLOGY
Politics, Competition, Economy,Fiscal, Social, Regulation
Disruptive ForcesYou can’t ignoreIt works. For you or Against you.
Crafting A Business Model
The challenge of business model innovation
Challenge 1Thinking outside of one’s own dominant industry logic
Challenge 2Difficulty of thinking in terms of business models rather than of technologies and products
Challenge 3The lack of systematic tools
Strategies for new business ideas
Transfer Combine Leverage
Add-onAdditional charge for extras
Extras, Customization
Premium
Add-onAdditional charge for extras
Add-onAdditional charge for extras
Start from basic productPrerequisites
AffiliationYour success is my success
ReferralCommission
AffiliationYour success is my success
AffiliationYour success is my success
Strong ecosystemPassionate customersWin-win situation
Prerequisites
AffiliationYour success is my success
AikidoStrength into weakness
Complete difference
No confrontation
AikidoStrength into weakness
Think outside the boxPrerequisites
AikidoStrength into weakness
AuctionBid for more profit
Never pay more than I will
Efficient product allocation
AuctionBid for more profit
TrafficTransparent
Prerequisites
AuctionBid for more profit
Cash MachineNegative cash cycle
Settling debts or making new investments, lower interest payments or speed up growth
Cash conversion cycle
Provide liquidity
Cash MachineNegative cash cycle
Cash MachineNegative cash cycle
PrerequisitesBuild to orderHigh perceived value
Cross-sellingKilling two birds with one stone
More value from a single source
Leverage existing resourcesComplementary products and services
Cross-sellingKilling two birds with one stone
Cross-sellingKilling two birds with one stone
PrerequisitesCombination of low margin and high margin products/services
CrowdfundingTaking finance by swarm
Circle of investors, sales, donations Project exposure
CrowdfundingTaking finance by swarm
PrerequisitesIdeasInvestors
CrowdfundingTaking finance by swarm
CrowdsourcingOutsourcing to the crowd
Open callCheaper and more effective solutions
PrerequisitesOpen ideas and innovation
CrowdsourcingOutsourcing to the crowd
Customer LoyaltyIncentives for long-lasting fidelity
Special offers or discountsLoyal customers
More values to retain customers
Customer LoyaltyIncentives for long-lasting fidelity
PrerequisitesCustomer-centric cultures
Customer LoyaltyIncentives for long-lasting fidelity
DigitizationDigitizing physical products
Online process and functions
Transforming products or service into digital variant
DigitizationDigitizing physical products
Direct SellingSkipping the middleman
Cut out middlemen
Eliminate retail profit margins or costs Direct interaction
Direct SellingSkipping the middleman
PrerequisitesPrecise control of the entire sales process
Direct SellingSkipping the middleman
E-commerceTransparency and savings
Trading by means of telecommunications networks
Delivering products or services via online channels
Cost savings
E-commerceTransparency and savings
Experience SellingProducts appealing to the emotions
Experience and impression
Customer’s satisfaction shapes customer’s loyalty
Promotions, retail design, sales personnel, product functionality,
availability, packaging
Experience SellingProducts appealing to the emotions
PrerequisitesBe uniqueForge a direct bond with customers
Experience SellingProducts appealing to the emotions
Flat RateAll you can eat
Use as much as you wish
Set the upper limit
Prerequisites
Flat RateAll you can eat
Manageable costsDiminishing marginal utilityCost-efficient billing
FranchisingAll for one and one for all
Minimizing business risk to a proven business model
Franchisees
Win-win solution business
Prerequisites
FranchisingAll for one and one for all
KnowledgeBrand strength
FreemiumFree basic or premium versions
Additional charge for premium version
Paying customers
FreemiumFree basic or premium versions
Prerequisites
FreemiumFree basic or premium versions
Internet-based businesses
Guaranteed AvailabilityAssured access to the products
Ensuring zero downtime
Premium price from long-run customers
Repair and maintenance service
Guaranteed AvailabilityAssured access to the products
Prerequisites
Guaranteed AvailabilityAssured access to the products
Handling unforeseen customer crises
Hidden RevenueSeeking alternative sources
Third party Integrate advertisements into the offering
Hidden RevenueSeeking alternative sources
Prerequisites
Hidden RevenueSeeking alternative sources
Business in advertising and customer data trading
Leverage Customer DataMaking use of what you know
Centered on the acquisition and analysis of data
Customer data
Leverage Customer DataMaking use of what you know
Prerequisites
Leverage Customer DataMaking use of what you know
Combine with Hidden Revenue streamsAnalyze and evaluate customer behavior
LicensingCommercializing intellectual property
Creating intellectual property
Commercializing the rightsDiversify revenues and risks
PrerequisitesKnowledge and technology intensive contexts
LicensingCommercializing intellectual property
Lock-inForcing loyalty with high switching costs
Customer dependent Customers are tied by making them get worse consequences if
they use other providers
Lock-inForcing loyalty with high switching costs
Lock-inForcing loyalty with high switching costs
Contractual agreementSophisticated technologyIncentives for customer loyalty
Prerequisites
Long TailLittle and often fills the purse
Selling small quantities of a very large range of products
Wide range sold in the long run
Helping customers find the niche products without difficulty
Long TailLittle and often fills the purse
PrerequisitesApply knowledge of complexityKeep complexity costs
Long TailLittle and often fills the purse
No FrillsWhatever, as long as it’s cheap
Minimum value propositions
Minimizing costsMass market
No FrillsWhatever, as long as it’s cheap
PrerequisitesCost-conscious customersStandardized products, processes and services
Open SourceWorking together to create a free solution
Free products for public
Public community develop productsCommunity members
Open SourceWorking together to create a free solution
PrerequisitesSetting standards, sharing resources and risksCreating a community of users
Pay Per UsePay as you go
Pay what you use
Based on the unit or the duration used
PrerequisitesThe Internet of Things
Pay Per UsePay as you go
Peer to PeerDealing from person to person
Offering specific services or products or sharing information and experiences
Charging transaction fees, advertising or donations
Efficient handling of transactions
PrerequisitesOnline communitiesIncrease marginal utility
Peer to PeerDealing from person to person
Performance-based ContractingBasing fees on results
The price of a product is the services it renders
Customers pay at specified amount
Integrated into customers’ value creation processes
PrerequisitesMonetize existing knowledge and servicesDeal with complex products
Performance-based ContractingBasing fees on results
Razor and BladeBait and hook
Basic product is at a bargain price or even for free
High-priced additional products
Patenting the complementary product, building a strong brand
PrerequisitesCombine with Lock-in effectStrengthen your patenting and branding capabilities
Razor and BladeBait and hook
Rent Instead of BuyPay for Temporary
No need to purchase of things you don’t afford
Greater sales potential
PrerequisitesFixed-priced products or services
Rent Instead of BuyPay for Temporary
Reverse InnovationLearning from good-enough solutions
Repackaged and resold products
From developing to developed market
PrerequisitesSubstantial R&D or innovation capabilitiesBased in higher-income economy
Reverse InnovationLearning from good-enough solutions
Self-servicePutting the customer to workValue creation for the customers
Large savings potential
Giving a lower price
PrerequisitesAdditional work in exchange for lower price
Self-servicePutting the customer to work
Shop in ShopPiggybacking
Establishing an independent store in another company’s retail space
Flexible alternative and income
Integrating business in another company
PrerequisitesDistributors or intermediariesRetail platform
Shop in ShopPiggybacking
Solution ProviderAll you need at one-stop
Various products and services in a single source
Close relationship with customers Information, training, increasing efficiency and performance
PrerequisitesWide networkAfter-sales services
Solution ProviderAll you need at one-stop
SubscriptionTaking a season ticket to services
Products or services received regularly
In advance or at regular interval
Regular basis products or servicesGiving additional value
Prerequisites
SubscriptionTaking a season ticket to services
SupermarketLarge selection and small prices under one roof
A variety of available products in one place
Satisfaction generates demand Low prices
PrerequisitesEconomies of scale and scope come into playA wide range of products
SupermarketLarge selection and small prices under one roof
Trash to CashTurning old rubbish into new cash
Recycling and reusing old materials
Cheaper materials gain more profit
Impressions from refined products
PrerequisitesCreativitySustainability
Trash to CashTurning old rubbish into new cash
Two-sided MarketAttracting indirect network effects
Mutual benefit between two groups using a platform
Advertisers or third party Customers using the platform
PrerequisitesUnderstand who your relevant stakeholders are and how they are connected
Two-sided MarketAttracting indirect network effects
Ultimate LuxuryMore for more
Highest quality privileges and services
Wealthy market Branding, competent and knowledgeable sales representatives, memorable special
events for customers
PrerequisitesUniquenessSelf-actualization
Ultimate LuxuryMore for more
White LabelOwn brand strategy
Different names, different markets
Product manufacturing cost
PrerequisitesTargeting price-sensitive customersIntroducing a limited number of White Label products
White LabelOwn brand strategy
Limit risk by prototyping.A picture = 1000 words.A prototype = 1000 pictures.
Innovate. Continuously.
Evans Winatawww.evanswinata.com