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Innovieren in der digitalen Welt: Der richtige Umgang mit Komplexität! Prof. Dr. Oliver Gassmann Innovationsgespräche Süd Graz, 27.09.2016

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Prof. Dr. Oliver GassmannNo. 1

Innovieren in der digitalen Welt: Der richtige Umgang mit Komplexität!

Prof. Dr. Oliver GassmannInnovationsgespräche SüdGraz, 27.09.2016

Prof. Dr. Oliver GassmannNo. 2

Software eats the world

Marc Andreessen (2011), Wallstreet Journal

Uber, Transactions by Uber, 20% of the fareStill cheaper by 25% then trad. Taxis.

Value in 2014: 17 billions $

When do they take over your business?

Prof. Dr. Oliver GassmannNo. 3

IoT explosion

Prof. Dr. Oliver GassmannNo. 4

Technology is there…

Sensors

smaller, cheaper, more intelligent, powerful, integrated, connectedcreate big data

…but smart data and business models?

Prof. Dr. Oliver GassmannNo. 5

IoT- just a hype?

Prof. Dr. Oliver GassmannNo. 6

IoT connects the physical with the digital world and drives service-oriented business models

Physical Thing

Sensor / Actor

Connectivity

Analytics

Digital Service Digital

Physical

Cus

tom

er V

alue

Source:. Prof. Elgar Fleisch

Prof. Dr. Oliver GassmannNo. 7

Sensor as a service

• System optimization

• Remote diagnostic

• Remote parametrization

• Behaviour-based services

Prof. Dr. Oliver GassmannNo. 8

Yes, but business model?

Laserschneidanlage

Prof. Dr. Oliver GassmannNo. 9

Business model reflects and addresses the complexity

Why is revenue created?

How is the value proposition created?

What do you offer to the customer?

ValueProposition

Revenue Model

Value Chain

What?

How?Why?

Who?

Who is your target customer?

Prof. Dr. Oliver GassmannNo. 10

Player analysis becomes crucial

Prof. Dr. Oliver GassmannNo. 11

Our research

How to develop new business models?

Analysis of 350 business models

Prof. Dr. Oliver GassmannNo. 12

The result

Prof. Dr. Oliver GassmannNo. 13

AppleiPod/iTunes (2003)

Nestlé Nespresso (1986)

Nestlé Special.T(2010)

NestléBabyNes(2012)

Gillette (1904)

Hewlett-Packard(1984)

Standard OilCompany(1880)

The basic product is cheap, or given away for free. The consumables that are needed to use or operate it, on the other side, are expensive and sold at high margins.

Business Model pattern no. 39 «Razor & Blade»

Prof. Dr. Oliver GassmannNo. 14

The learnings

14DB Akademie GmbH, Potsdam, Stand: 01.09.2011

90 % of all business model innovations are recombinations

55 patterns to systematically innovate your business model

Business Model Innovation is rather craft than art

Prof. Dr. Oliver GassmannNo. 15

Idea select ion

Initiation

Analyse the ecosystem

Ideation

Adapt the patterns

Integration

Detail the business

model

Implementation Players Change Drivers

Test

Adapt

Learning through trial and error

Market introduction

Iteration

What?

How?Why?

Who?

Old Business Model

Internal consistency

External consistency

Similarity Principle

Confrontation Principle

What?

How?Why?

Who?

Old Business Model

What?

How?Why?

Who?

New Business Model

55 Patterns

Iteration

The Business Model Navigator

Prof. Dr. Oliver GassmannNo. 16

55 patterns for business model innovation

www.bmi-lab.ch

Prof. Dr. Oliver GassmannNo. 17

How to organize for digital innovation?

1. Think in business models

2. Start with experiments

3. Identify the sweet spot

4. Aim for simple solutions

5. Separate or integrate – it depends

6. Balance internal and outside-in thinking

7. Attract and retain digital talents, not easy

8. Develop a system of partners

Prof. Dr. Oliver GassmannNo. 18

Prof. Dr. Oliver GassmannNo. 19

Great idea, but…

Prof. Dr. Oliver GassmannNo. 20

What percentage of change programs are successful?

30 %

McK (2013)

Prof. Dr. Oliver GassmannNo. 21

McK (2013)

1414

33

39Employee resistance

Management behavior not supportive

Lack ofresources

Others

Many attempted transformations failFactors responsible for failure of change initiatives

Prof. Dr. Oliver GassmannNo. 22

I’m worried about my job…•Do I have a job and

what’s my status in the new organisation?•How do my

colleagues interpret my status in the new organisation?•Who am I going to

work with in my unit?•Are there any resource gaps that

can under-mine myobjectives?

I’m worried about theorganisation…•How can I best interpret my organisation unit’s mission in the next 12-18 months?•What does it really mean?•What are the critical touch

points/interfaces with other units? •How can I manage them?•Which role will I have to play in the key interfunctional processes?•What will I need to do?•Is this another costly reorganisation just for the sake of it?

What is about me?

Does is really work?

Prof. Dr. Oliver GassmannNr. 23

Five dimensions for driving change

Adapted from McK’s influence model

Role modeling

Foster understanding

Set up structures and

processes

Buildingcapability

1 2

34

Culture5

Prof. Dr. Oliver GassmannNr. 24

I have my head in theclouds, but my feetfirmly on the ground.

Steve Jobs

Prof. Dr. Oliver GassmannNo. 25

Prof. Dr. Oliver Gassmann

University of St.GallenInstitute of Technology ManagementCH-9000 St. [email protected]. +41-71-224 7220

www.item.unisg.chwww.bmi-lab.ch