disruption - business opportunity or challenge?

Disruption – Business Opportunity

or Challenge?

Discover new business opportunities and bring ideas to life.

The business model is thefoundation for disruption

…and a good common reference frame for today’s event

The ultimate goal of any business model…

…is delighted customers

…and capture value for your company

The business model reflects management’s hypothesis about

How to organizemeeting those

needs

Makingprofit

What customers want

How theywant it

A truly disruptive business book

• Alexander Osterwalder and Yves Pigneur

• Co-created by 470 practitioners…

• …from 45 countries in 2010

• Practical cases

• Lots of colors, illustrations and pictures

• Easy to read in an evening

Different perspectives on BMC…

ExternalInternal Value

Financial

Cost vs. Revenue flows in BMC

RevenueCost

Five disruptive elements of BMC

Elements of a Good Value Proposition

Unique value creation

Challengesor needs

Five disruptive elements of BMC

Understand and Prioritize your Customer Segments

• Develop and maintain a full list of customer segments including sub-segments

• Focus only on top-3 or top-5 segments

• Look for best practice in CRM literature

• Spend time LISTENING to your customers in order to UNDERSTAND their needs and problems

Five disruptive elements of BMC

Make Money while You are Sleeping!

• Cash flow is king

• Look for subscription models to stay in continuous contact with your customers

• Multiple revenue streams are better than a single stream

• Think in scale when designing revenue models

Five disruptive elements of BMC

Let Others Carry the Burden of Fixed Costs

Five disruptive elements of BMC

Use Partners to Reduce Risk and Scale Fast

• Look for competence, flexibility and strategic fit

• Exchange partners when they do not perform or they are no longer needed

• Partners can operate faster because they are deeply specialized

Five Keys to a Strong Business Model

• High switching costs that lock-in customers/rewards loyalty

• Scalable business model

• Revenues are recurring

• Financial model is designed to earn before spending

• Partner network exploited to reduce cost and risk

Today’s agenda

09:25 Disruptive Business Models from Silicon Valley (Martin Stenfeldt)

10:20 Networking Break

10:35 Bringing Innovative Ideas to Life (Sebastian Cadell, NosCo)

11:35 Discussion + Q&A

12:00 Light networking lunch

I keep forgetting that the nature of life

is not STABILITY but FLUX

Mr. CarsonDownton Abbey

The World is changing…

Once upon a time …new business models

The World is changing…

The World is changing…

The World is changing…

Megatrends that fuel disruption

Sharing svc IoT Quantified Self3D PrintBig Data Gamification

Sharing Svc IoT Quantified Self3D PrintBig Data Gamification

Megatrends that fuel disruption

• Those under the age of 35

• …will account for 75% of the workforce by 2025 according to Forbes

• Millennials have way different behavioral patterns

Millennials fuel disruption too

Millennials vs. Boomers in Healthcare

Source: DevicePharm

Willing to significantly change their behaviors in order to be healthier – all natural diets, P90X, etc.

More stubborn in their ways and less reluctant to want to change – tendency to label many preventative measures as voodoo

Do not see doctors as the foremost authority on healthcare – 84% will take a friend or family member’s advice over a doctors

Perceive their doctors as having all of the healthcare answers they need

Quick to trust advice from healthcare celebrities such as Dr. Oz and diagnose themselves on WebMD

General distrust of healthcare information that does not come directly from their doctor

It is of no use to throw INNOVATION over the fence to the CUSTOMERSif they don’t see the NEED for it!

Peder Holk NielsenNovozymes

From Wearables…

To Earables…

It was very easy to be DIFFERENT,

but very difficult to be BETTER

Jony IveApple

Using Big Data to create own award-winning TV shows

• 5% of all British homes are sold via online estate agencies

• eMoov have sold properties for 650 million £ since 2010

Gamification and Big Data

FinTech – Watch disruption happen in real time

Valuation: 1 billion US$

Accepted 700k places

Danske Bank: Mobile Pay vs New Normal

No BUSINESS PLAN ever survived its first meeting with CUSTOMERS!

Steve BlankAuthor and Serial Entrepreneur

If you are not embarrassed by the first version of your product, you’ve launched it too late!

Reid HoffmanLinkedIn

Major car manufacturers select Silicon Valley too for their global R&D or Innovation Centers

Always deliver MOREthan expected

Larry PageGoogle

Disruption: Opportunity or challenge?

Disruption

Turn

ove

r

Time

Disruption: Opportunity or challenge?

• Taxi or digital transport sharing service?• Valuation: 40 billion US$• Target Revenue 2015: 10 billion US$ • 51 countries / 230 cities• Goldman Sachs and Google among

investors

• Largest take-away group in GB• Revenue: 97 million GBP (2013)• 40 million orders/year • 10% commission• 13 countries/ 40.000 restaurants• Once a Danish startup

• Launched in 2008• 25 million guests• 34.000 cities in 190 countries• 500.000 overnight places surpassed only

by Intercontinental (687.000 rooms –4.700 hotels)

• Valuation: 13 billion US$• 600 castles!

• Launched in 2008 (500 apps)• 85+ million downloads (2014)• 1,2 million apps (2014)• 30% commission• All apps are tested and reviewed

PWC’s 18th Annual Global CEO survey

B2B Disruption Does Not Happen Overnight

Successful disruption:

Opportunity to rewrite the

rules

Create new categories

Drive tremendous

growth

B2C B2B

Price point Often very low High

Purchase decision

Discretionary Process

Purchase implications

Straightforward

Cumbersome*

*People need training*Systems replacement*Process adaptions*Implementation planning

3,2 billion US$

LUCK is what happens, when PREPARATION meets

OPPORTUNITY

Lucius Annaeus SenecaAncient Greek Philosopher

Why does Google invest in the self-driving car?

Why did Facebook acquire Occulus Rift for 2 billion US$?

2014 Digital Board Director Study

Digital Mindset – a Management Skill

Cloud

M2M

Social Media

IoT

Mobile Big Data

Streaming

Business Models

Operations

Corporate Culture

Functional areas affected:

1. Digital marketing and sales

2. Digital product and service development

3. Digitally enabled business models and eco systems

4. Digital corporate culture and mindset

New technology, digitalization, millennials and megatrends will bring

OPPORTUNITIES to the PREPARED business leader

and potential for DISRUPTION in B2C

Don’t fear the competition, but look out for

the new business models!