innovationen sind planbar_cebm_urs karrer_ibm symposium2013
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© 2013 IBM Corporation
Cloud-enabled Business Model
Innovation
Urs Karrer, Ph.D.
Technology Strategy Lead, IBM Switzerland
© 2013 IBM Corporation
“Everybody talks about it, but what exactly is Strategy ???”
“We test a new product
with a cloud solution”
“Our business
transformation includes
new ways of operating
… is this innovation?”
“Everybody talks about it, but what exactly is Cloud-enabled Business Model Innovation”
© 2013 IBM Corporation 2
“Cloud in itself is an
innovation for us,
is it not?”
© 2013 IBM Corporation
Agenda
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External forces
Cloud & Business Model Innovation
Case studies
What it means for you
© 2013 IBM Corporation 4
External forces
© 2013 IBM Corporation
Many forces influence an environment that is conducive for invention and
innovation
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Policies & Governance
Education System
Social Environment
& Infrastructure
Patent & IP
Management
Innovation Practices
& Partnering
Openness versus operational control
33%23%
44%
46%
22%
32%
Austria & Switzerland
Global
Integrating business
and technology
for innovation
© 2013 IBM Corporation
1700+ CEOs rank “technology” as the number one external force that will impact their organizations in the next couple of years
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Source: Global CEO Study 2012, IBM
Institute of Business Value (IBV)
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Source: Q1 “What are the most important external forces that will impact your organization over the next 3 to 5 years?” (Global n=1709) (Austria & Switzerland n=69)
2012
Global Austria & Switzerland
Regulatory Concerns
Technological Factors
Macro-economic factors
Socio-economic factors
People Skills
Globalization
Market Factors
Geopolitical issues
Environmental issues
3
1
2
6
5
4
7
7
9
© 2013 IBM Corporation 7
Cloud computing in a nutshell
© 2013 IBM Corporation
Cloud computing – rethink IT, reinvent business
Elastic resources
Scale up or down quickly and easily to meet demand
Pay for use
Metered service usage so you only pay for what you use
Self service
All the IT resources you need with self-service access
IaaS PaaS
SaaS
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© 2013 IBM Corporation
Cloud computing – rethink IT, reinvent business
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Public
Private
Hybrid
Elastic resources
Scale up or down quickly and easily to meet demand
Pay for use
Metered service usage so you only pay for what you use
Self service
All the IT resources you need with self-service access
© 2013 IBM Corporation 10
1 Cost Flexibility Quicker payback, higher ROI,
from fine-grained variable cost
procurement
Scalability 2 Rapid, unlimited, elastic
provisioning of resources
critical to business capabilities
Market
Adaptability 3
Expedites prototyping for faster
time to market and innovative
idea adoption
Masked
Complexity
4
Facilitates consumption,
increases feasible product and
service sophistication
Context-driven
Variability 5
Experiences defined via user
preferences, movements and
behaviors
Eco-system
Connectivity 6 Facilitates different and new
value nets of partners,
customer and alliances
We see six distinct business value enablers
© 2013 IBM Corporation 11
The what and the how
© 2013 IBM Corporation
The what and the how of Business Model Innovation (BMI) …
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The What
Th
e H
ow
Business Model Innovation The What – Revenue Model
Source: O. Gassmann et al., The St. Gallen Business Model
NavigatorTM, 2013
What is your customer value proposition?
Key finding: 55 business patterns and about 20 business
innovation models exist that can be re-applied, combined,
leveraged, e.g., sharing model, “freemium” model
The How – Enterprise/Industry Model
Source: IBM Institute of Business Value, Expanding the Innovation
Horizon, 2006
How do you operate your business?
How are you providing your product/service?
© 2013 IBM Corporation
Disruptor
Innovator
... helps to categorize business model innovation
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The What
Enhance Extend Invent
Th
e H
ow
Imp
rove
T
ran
sfo
rm
Cre
ate
Optimizer
Disruptors
Innovators
Optimizers
Radically different value proposition, new
customer segments, transform the industry
irreversibly and/or create new markets
Significant new value proposition, new
revenues streams and/or change of role within
the industry, enter different industry
Enhance customer value proposition and/or
improve organizational efficiency
© 2013 IBM Corporation 14
Representative CeBM case studies
© 2013 IBM Corporation
Analyzing consumer emotions leveraging high-powered,
low-cost cloud resources
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Opportunity Result
Need computing power
No budget Minimal IT infrastructure
Pay as you go
Available capital for
investment
Facts & Figures
Headquarters:
Lausanne (CH)
Founded: 2009
Sales: n/a
About: Privately held
company based at the
EPFL
Dedicated to develop
technologies for
deciphering emotions
by interpreting facial
emotions and eye
movements
Solution
IBM SmartCloud SaaS
secures high-powered, low-
cost resources
Nviso provides analysis on
consumer emotions
Source: Nviso and IBM
© 2013 IBM Corporation
Getting to know your customer through cloud-based
analytics
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Flooding the customer with
newsletters
Ineffective marketing
What if targeted email based
on behavioral segmentation
could improve campaign
results dramatically ?
+65 % more emails
opened and 6.5x higher
click rates on w3
25 times greater online
revenue
+17 times improved
customer conversion
Opportunity Result Facts & Figures
Headquarters:
Manosque (F)
Founded: 1976
Employees: 5’000
Sales: 1’000+ MCHF
About: Global, natural
and organic ingredient-
based cosmetics and
well-being products
manufacturer and
retailer with strong
regional roots in
Provence, France
Source: L‘Occitane and IBM
Cloud-based analytics for
customer profiling and
segmentation
IBM SmartCloud SaaS
Solution
© 2013 IBM Corporation
Inspired by cloud: Building as a Service (BaaS)
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The opportunity The result
Average occupancy < 55 %
Required meeting space
fluctuates by ~ 300 %/year
25% of reservations are not
used
End user: 15% time saving
Operator: 30% productivity
Tenant: 20% space savings
Vacancy 14%
Serviced Offices
1%
Rented Offices
85%
The solution
Virtualizes office space
Pay-as-you-go office
Double-sided business
model
IBM SmartCloud IaaS
Facts & Figures
Headquarters: Zurich
Founded: 2011
Sales: n/a
About: Technology
company that
developed and
leverages new breed
of software to create
high-performance
buildings
Winner of Swiss
EuroCloud award
Source: Performance Buildings and IBM
© 2013 IBM Corporation 18
What it means for you
© 2013 IBM Corporation
Benefits are many – need to continue to work on addressing challenges
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1 Cost Reduction
Unlimited resources 2
Fast time-to-market 3
Easy-to-use 4
Configuration flexibility 5
Ecosystem connectivity 6
Benefits
1 Risk and Compliance
2 Integration and Transformation
3 IT Skills and Organization
4 Cloud Governance
Challenges
© 2013 IBM Corporation
Thank you for your attention
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Contact: Urs Karrer, PhD, Technology Strategy Lead IBM Switzerland | [email protected] | +41.58.333.7317