the ultimate guide on business model hacking · so why hack your business model? benefits of...

1© 2019, EGNYT All Rights ReservedConfidential And Proprietary ®

This document contains EGNYT proprietary and or Client confidential business information. It is not for public

consumption or distribution outside of authorized channels.

The Ultimate Guide on Business Model Hacking

This Guide is intended for use exclusively by the recipient as per terms & conditions agreed to and accepted on download form submission

May 2019

Business Model HackersTM

®


Table Of Content

• Background

• Definition and Benefits

• Process and Related Frameworks

• Methodology

• Summary


This is copyright material and is not intended for digital re-use or publishing without explicit permission from EGNYT

• No part of this guide may be reproduced, or transmitted in any form or by any

means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of EGNYT, or authorization through payment of the appropriate per-copy fee to EGNYT.

• Requests for permission should be addressed to the administration department at [email protected].

• Limit of Liability/Disclaimer of Warranty: While EGNYT and have used their best efforts in preparing this material, they make no representations or warranties with respect to the accuracy or completeness of the contents of this guide and specifically disclaim any implied.

• Warranties of merchantability or fitness for a particular purpose: No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. EGNYT shall not be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

mailto:[email protected]


Table Of Content

• Background



• Methodology

• Summary


Senior leaders and stakeholders of organization who are responsible for setting business strategy or individuals in a company who are accountable to shareholders.

This is not the typical strategy guide. We designed it to convey the essentials of what you need to know, quickly, simply and in a visual format. Sanitized client examples are presented periodically. We included the latest tools1, frameworks, processes, checklists that were actually used in conducting over 1,000 successful for you to use in your organization.

What useful content is in this guide?

You can use this guide as a step-by-step guide to run a Do-It-Yourself (DYI) Business Model HackathonTM at your organization. We are standing by to assist and guide to make this successful, if you choose to reach out to us.

How can I use this guide?

Who can benefit from this guide?

1 Note that we included all standard tools, as other tools and specifically canvases are tailored for specific program and may not be useful to you


So why hack your business model?

Benefits of Hacking Your Business Model

Increases sales and market share through competitive offering, improved value proposition,

and widening of addressable market and customer targeting capability

Achieves positive ROI on project (whether internally or externally) in less than 8 months, as

evident in 85% of more than 1,000 projects conducted to date

Increases revenues and margins through premium pricing in new underserved (or unserved)

markets

Deploys fast when enabled through readily available and accessible technology, leading to a

first-mover and commercial launch possible within months and not years

Turns long-term science projects into real go-to-market business strategies, ensuring both

short-term and long-term superior monetization

Potentially disrupts and introduce new products and services that in many instances achieve

extreme order of magnitude IRRs, leaving most competitors behind

Identifies “White Spaces” where competitors do not exist, enabling companies to have a first-

mover advantage so that late copycats would find it difficult to enter

1

2

3

4

5

6

7

Helps your company become disruption-proof, and enable companies to thrive in good and

favorable economic times while remaining competitive during recessions8

NON-EXHAUSTIVE

Mark Zuckerberg Letter to Shareholders

about the “Hacker Way”…In Facebook's regulatory filing for an initial public offering of stock, CEO Mark Zuckerberg included a letter to potential investors about

the company's thinking. Source: Facebook S1 - Page 69

…. The Hacker Way is an approach to building that

involves continuous improvement and iteration. Hackers believe that something can always be

better, and that nothing is ever complete. They just

have to go fix it — often in the face of people who

say it's impossible or are content with the status

quo….

… To encourage this approach, every

few months we have a hackathon, where everyone builds prototypes for new ideas they have. At the end, the

whole team gets together and looks at everything that has been built. Many of our most successful products came out

of hackathons, including Timeline, chat, video, our mobile development framework and some of our most

important infrastructure like the HipHop compiler. …


The objective of this Guide

Business model hacking is not a new concept and can be traced to the fifteenth century, when Gutenberg sought applications for the mechanical printing device he had invented.

What is a business model you may ask? We will explain this in examples and introduce the different types of business models before we dive into the actual process.

Over the past two decades countless innovative business models emerged and in the past decade alone, entirely new industries were formed based on business model innovation as old ones crumbled.

While only 60 companies remain in the S&P500 since 1955, the speed at which new companies are replacing legacy companies is accelerating and the majority of companies to be replaced over the next decade. Therefore, it does not come a surprise that a CEOs that were surveyed by by EY last year identified the biggest threats to their organization are new business models enabled through technology.

if you don’t see the value and benefits of rethinking and evaluating your business model, you may ask yourself: How do you imagine your company’s business model should look like in the near future? How about 2, 5 or 10 years years out? Will your company be among the thriving players or trying to survive? What are your concerns for the future of your business?

Ultimately, business model hacking is about creating value, for companies, customers, and society. This guide is a step-by-step guide that will give you the ability to do it yourself. If you follow the steps outlined in the guide, you should be able to reach 1-3 initiatives and opportunities that are immediately feasible at a very low cost of entry.

Having completed over 1,000 projects to-date, we have seen 85% of organizations achieve ROI within less than 8 months on such programs, this without accounting for all the other benefits such as turning visionary ideas into game-changing business models that challenge and disrupt the establishment or rejuvenate, and with it achieve double and triple digit IRR while fueling intrinsic company value growth and shareholder return.


Table Of Content

• Background



• Methodology

• Summary


We define four types of business models

Source: Adapted from HBR; EGNYT analysis

Business Model Dimensions

• Open source software for

software companies and

infinite computing for

server companies

• Streaming Video on

demand for DVD rental

services

• Ride-sharing services for

taxi and limo companies

• Electric Vehicles and on

Demand Vehicle

Manufacturing for

Automakers

• Personalized medicine for

pharmaceutical

companies

• Digital imaging for

Polaroid and Kodak

• A sequel movie for an

existing franchise

• An all-new model car for

an existing car

manufacturer

• A new model plane or jet

engine for an aircraft or

jet engine manufacturer

• Biotechnology for

pharmaceutical

companies

• Space X for Rockets and

spacecraft manufacturers

• Fiber-optic cable for

telecommunications

companies

Disruptive Architectural

Incremental Radical

Leverages Existing

Technologies &

Competencies

Requires New Technical

Competences

Existing

Business

Model

New

Business

Model


Each business model type has its own key success factors, risks and challenges

Key Success Factors, Risks and Challenges

Create New Market – “White Space”

Manage Existing Market

Minimal or No

Technology

Change

Radical

Technology

Change

KSF = key success factors

Source: EGNYT analysis

KSF: First-mover, patents,

quick acting, agility, fast

adapting, customer

adoption

Challenges: Low risk,

many Copycats

KSF: Visionary patient

shareholders, internal

capabilities

Challenges: High rewards that comes with

high risk

KFS: Cost savings, profit

margins, customer

uptake, speed, etc.

Challenges: Perceived

low investment risk, low

reward, high risk of

being disrupted

KSF: Long-term outlook,

high R&D budget,

internal capabilities

Challenges: Defensive

strategy with high risk of

turning into long-term

science project

Disruptive Architectural

Incremental Radical

Risk / Cost

Re

sili

en

ce


Companies that succeed at hacking their business model outperform traditional innovators and industry peers

TSR premium over industry peers, median performance1 (%)

Source: BusinessWeek

1 TSR premium is defined as the percentage by which the innovators' average total shareholder return exceeded that of their industry peers

1.7

0.1

1.7

8.5

6.1

2.7

0

1

2

3

4

5

6

7

8

9

10

Three-year period Five-year period Ten-year period

Process and product innovators Business model innovators (Disruptive)

6.8

6.0

X Difference in percentage points

1.0

In the short-term disruptive innovation which is a lot less costly upfront can

achieve high-impact ROCE, while product/process-driven innovation

would take longer to reap the benefit

RationaleA five-year period would still be

too short for most R&D intensive

program and the valley of tears

kicks in at this horizon

In the long-term, both strategies merge

to similar results as product innovation

returns start bearing fruit but time value

of money still has an negative impact


Table Of Content

• Background



• Methodology

• Summary


Typically 3-22 Weeks Depending on number of dedicated resources assigned to the project and the complexity of the company’s business model

• The aim of the work conducted during this phase is to enable and facilitate a very effective, productive and fruitful Phase II

• Development of relevant material and tools that will be a prerequisite to conduct the next phase

• A three-step process is required to complete this phase – described in detail on next page

Baseline

(1-10 weeks*)

Hackathon

(1 Week)

Development

(1-10 Weeks)

I II III

A three-phased process should be adopted when undertaking a business model hacking initiative

• To further the analysis conducted during Phase I, Phase II consists of 2-3 day sprint style hackathon that engages key stakeholders of the organization, during which opportunities are identified

• Workshop should be facilitated by the Phase I Team and should involve internal stakeholder the organization as well as external SMEs (see Methodology section)

• Shortlist and select key opportunities and phase them according to prioritized roadmap

• Design and conceptualize the priority opportunities business model

• Development of a high-level business case for selected opportunities

• Incorporate plan into corporate/company strategy

Holistic Timeline and Process


Baseline

I

Hackathon Detailing

II III

At the very least, three aspects of analysis would need to be conducted as part of the baseline and prior to a hackathon

NON-EXHAUSTIVE

New

Business

Opportunities

Internal/Existing

Capabilities and

Intellectual Capital

of Company

Technology

Universe and Case

Studies

1

3

“The best way to

anticipate future trends is

to be the first to set them

yourself”

Industry and

Sector Deep-Dive and

Trend Analysis

2

• In the dynamics of this phase, it is imperative to develop an unbiased (free of cognitive biases), deep understanding of the sector and the company’s positioning within the sector as well as the competitive landscape

• A deep dive into the company’s business, the industry and the sector would help ensure that the opportunities identified are most relevant and help reduce the effort required in selection (discussed later)

• In the next few pages, we will show examples of the type of analysis that would be conducted. While we try and maintain as generic requirements as possible, the analysis required would ultimately depend on the industry and company situation


In assessing internal capabilities, at a minimum the following checklist should be coveredInternal Assessment Baseline Checklist

NON-EXHAUSTIVEFor a comprehensive checklist tailored

to your industry please email us on

[email protected]

1 Internal Capabilities

Source: EGNYT

qSurvey key company decision-makers to crystalize vision, aspirations, buy-in and potential objections

qCustomer perception and feedback through possibly a customer survey

qKey (not commoditized) supplier survey

qCollect available data from various departments as per checklist or conduct analysis as needed

qTargets and objectives

qValue proposition by offering

qOperating model

qKey success factors

qProduct and service delivery models

qCustomer targeting models

qPartnership models

qMarketing and sales strategy including effectiveness of various techniques

qMarketing and sales strategy benchmarking

qSales/distribution channels and effectiveness

qHistorical sales trends and forecasts, comparison of actual with forecasts

qCustomer segmentation, product category and customer segmentation gaps/ opportunities and potential segment gaps

qCurrent customer purchasing habits and decision-making process, as well as future trends and demographic implications

qPrice positioning, pricing strategy and price elasticity for product offering targeting

qMarket dynamics and key success factors and key drivers behind client purchasing decisions

qValue-chain, supplier strategy, capacity constraints, cost drivers and cashflow

analysis

qCompetitor, product and pricing analysis (to be detailed in step 2)

qBusiness and technical capabilities

qStaff knowledge and capabilities

qStrengths and weaknesses

qBrand positioning and brand perception along with demand drivers

qMarket/sector-related demand characteristics

qMarket critical success factors and manufacturing response requirements

qKey demand drivers, demand patterns and reasons for demand variability

qProduct lifecycles

qCosts, margins, and return on capital employed

qCost structure and cost baseline

qProblem areas


In conducting industry and sector deep-dive and trend analysis, the following checklist would be covered

qIndustry top-level and deep-dive on profile, history and general trends

qMarket pricing, supply and demand drivers and trends

qRelevant macro-economic, micro-economic, socioeconomic and demographic baseline

qM&A activities in the sector and key economic and intrinsic valuation drivers for both public and private companies in the sector

qIndustry segments by sector and niches and economic-c growth drivers by niche

qAddressable and non-addressable market forecasts, general market conditions, demand drivers and patterns

qConsumer habits and future trends by niche, including relevant socio-economic factors

qNew market entrants and disruptors and their impact on forecast

qDeep-dive into the competitive landscape past current and future

qWhere relevant insights are gained and may require a deeper dive, conduct high-level benchmarks on specific market conditions

qMarket dynamics, key strategic opportunities highlights

qCompetitive mystery shopping analysis

qDetermine, identify and refine (and expand if necessary) addressable market segment

qCompetitive intensity at the segment level

qNumber of players/fragmentation and capacity, supply size and trends

qPrice points, historical prices and price trends

qKey characteristics, challenges and gaps

qPrice sensitivity and elasticity

qDemand analysis top-down and bottom-up to align results

qFuture demand and forecast assumptions

qSources of revenues for company players by type and the relevant business models and operating models

qForecasted annual demand, product mix, pricing and demand ramp-up

qExpected evolution in prices

qIdentify (if applicable) other potential sources of revenues and include in forecasts

qIdentify potential white space and areas of high potential within the competitive landscape

Trends and Sector Deep Dive ChecklistNON-EXHAUSTIVE

2 Trends and Sector Deep Dive Analysis

For a comprehensive checklist tailored


[email protected]

Source: EGNYT


For example, it you are assessing the market for a specific industry, product segmentation can reveals key insights…

Apparel Business Models Market Shares

Source: IBIS World; EGNYT Desk Research; EGNYT Analysis

Gaining

Losing

CLIENT EXAMPLES



…while deep dives across the value chain can reveal business model insights

By harnessing unprecedented leverage on behalf of huge buying groups to further drive down brand

prices, top PBMs had revenues that exceeded those of the top pharmaceutical manufacturers

Source: 2017, Kevin A. Schulman, Dept of Medicine, Duke University and Harvard Business School, The Evolving Pharmaceutical Benefits Market; EGNYT analysis

Pharmacy Benefit

Managers (PBM) - who

are they? and what do

they do?

• The intermediary

between manufacturers, health insurance plans,

and patients

• Operates prescription

drug plans

• Negotiate discounts at scale and rebates with

manufacturers

14

11

-3

7

6

Annual growth in profits from drugs,

by actor in the value chain, 2012 –16 (%)

68 68

55

12

7

9

10

719

2012 2016

Approximate distribution of profits from drugs,

by actor in the value chain (%)

Pharmacy Benefit

Managers

Pharmacies

Hospital systems

Wholesalers and distributors

Drug

manufacturers

100% = 138 billion

175 billionPharmacy Benefit

Managers

Pharmacies

Hospital systems

Wholesalers and

distributors

Drug manufacturers

CLIENT EXAMPLES



Understanding customer and/or client behavior is essential, thus conducting a survey may be well worth it

Disposable Item Culture: Consumers are likely to discard an item

after 1-2 wears with 70% of women’s closets going unworn

Millennials are the most

impulsive shoppers

Source: eMarketer; EGNYT desk research; 2018 various consumer surveys; EGNYT analysis

CLIENT EXAMPLES

Impulsive Purchases As Percent of Total By Age in 2018Channels Consumers Used to Make a Purchase in 2018

The rise of B-corp: 75% of Millennials and GenZers in the US

prefer brand that are conscious about environ’t and social issues

“I-want-it-now” Culture: Consumers expect instant gratification

and want their product 24h after discovering it

Access is more important than Ownership which is becoming

less important factor, giving rise to rental/subscription models

Refurbished Goods: 1 in 3 women shopped refurbished/used

apparel in 2017, a trend that is increasingly being adopted

Shift in Influencers: Consumers are far more likely influenced by

social media and customer reviews than directly by the brand

Consumer Behavior Highlights



In conducting case studies and reviewing the technology universe, the following checklist should be covered

qIdentify (based on previous analysis) and profile relevant case studies from the industry

qIdentify (based on previous analysis) and profile relevant case studies not from the industry, and highlight was is relevant. These cases are as important as industry relevant case studies

qFor all case studies identified, conduct analysis in line with the elements of this remainder of this checklist

qUse and leverage of accessible technology to gain competitive edge and other technologies in use

qFunding (If startup) and obtainable financials

qPrice positioning

qTargets and objective

qValue proposition by product/service offering

qOperating model

qBusiness model

qPrice positioning

qRevenue streams

qCustomer segments

qKey success factors

qProduct and service delivery models

qCustomer targeting models

qMarket share

qCompetitive positioning

qSpecial niches and brands

qProduct category and customer segmentation

qGeographical footprint

qIdentify and shortlist 5-10 case studies deep-dive and more detailed analysis along specific and relevant areas

qDerive applicable best practices and lessons learned for shortlisted case

studies

qOrganization structure and key resources

qOutsourcing strategy

qCost structure

qPartnership models

qValue chain analysis

qMarketing, sales and customer acquisition strategy

qHistory and growth ramp-up

qTransactions and valuation drivers

qFuture outlook

qLatest pitch decks and investor prospectus

qCustomer relationship and customer/market perception

qBusiness risks, threat and weaknesses

qChannels and channel building blocks

Technology and Case Studies ChecklistNON-EXHAUSTIVE

3 Technology and Case Studies

For a comprehensive checklist tailored


[email protected]

Source: EGNYT


Infinite Cloud Computing – Computing

power that is abundant and infinite at low-cost, accessible to everyone on the planet,

simple to use and always on

Smart Drones – Drone technology to

perform tasks in a fully autonomous way and ability to respond to unforeseen situations

and continue working for themselves

3D Printing Technology – 3D printing

creates solid, three-dimensional objects layer by layer from a digital file in full color, in over

300 materials

Artificial intelligence – The technology that

enables human-like activities. It is the ability of a device to learn, understand and infer the

best possible answer

Genomics – Are the 3.2 billion DNA letters

that make up human “software code.” Each human has the software code that human

was born with in every cell of our body.

In conducting case studies, a key aspect would be how the use of accessible technologies is transforming companies

Accessible Technologies Definitions

Source: EGNYT


Big Data Analytics – The process of

examining large datasets to uncover hidden patterns, unknown correlations, market

trends and customer preferences

Blockchain – Is a distributed ledger that is

typically managed by a peer-to-peer network collectively adhering to a protocol for inter-

node communication and validating blocks

Augmented Reality – Augmented reality

superimposes computer-generated images onto what you are seeing in the real world.

AR digitally enhances our natural vision

Robotics – Are machines that can sense

and act on their environments. They take many shapes and forms are beginning to

enter virtually every aspect of our lives

Internet of Things – Is a network of physical

devices embedded with sensors and network connectivity, that enable these devices to

collect and exchange data

NON-EXHAUSTIVE


Case studies could be summarized into single-pagers vs. multi-page presentation for Hackathon material

ILLUSTRATIVE


Source: EGNYT


In Phase II, the combination of Phase I presentation with facilitation canvases can be used for a successful hackathon

Exploration

I

Hackathon Detailing

III

Evolution Canvas

Clustering

ILLUSTRATIVE

Value Chain

Canvas

13

2

5

64

Intersection

Trend Tool

Identification Repeat

II

Opportunity

Strategic Umbrella

+Break

Storming

Opportunity

Puzzle

NON-EXHAUSTIVE

For tools and canvases that work best

for your situation, please email us on

[email protected]

Source: EGNYT


Throughout the process, the baseline material is combined with facilitation skills for a successful Hackathon

Capability

Technology Market Right

Brain

Left

Brain

Reveal The Intersection Brain Balance Cognitive Bias

Source: Scott Adams Inc, Dilbert.com

Leveraging the baseline and

revealing the intersection

throughout the process

Ensure right balance between left

and right brain is utilized

throughout the process

- Keep cognitive bias in check

- Balance conflicts and cooperation

to minimize its negative effect

1 2 3

Source: EGNYT


The use of abstract imagery and analogues can simulate the use of the right brain

ILLUSTRATIVE

Break Storming

The use of a combination of relevant imagery and analogues helps

simulate the “right brain” and breaks the natural mind barriers

Not to be confused with brainstorming, breakstorming relates to

structured “within-the-box” thinking, seeking mental spaces that

are ripe for the business to colonize in the future

Source: EGNYT


In Phase III, the long list is converted to a shortlist and opportunities converted into a roadmap and business case

Exploration

I

Egnytion

ILLUSTRATIVE

II

Detailing

III

From the idea and high-

level opportunities...

...to market launch

q Approval and selection of

prioritization

methodology and

prioritization criteria

q Opportunities phasing

strategy and roadmap to

implementation and

sequence of key

implementation activities

q Product/service, brand

and value proposition

q Conceptualization of the

opportunities

q Prioritization of long-list

of identified and filtered

opportunities

q Development of business

case for short-term

opportunities

• Long list of potential opportunities

that are already vetted by

company decision-makers

• One-pager high-level description

of each idea

• Stakeholders objectives and

selection criteria

Source: EGNYT


Framework Model

Spreadsheet Available

Upon Request

A multi-step framework could be adopted in prioritizing and phasing shortlisted opportunities

HighH

M

L

L M H

H

M

L

MediumEvaluate Further*

Drop for NowSelect

Quick Wins

RiskAvailability

of Specialized Operators

Prio

rityFin

an

cia

l

Att

ract

ive

ne

ss

LMH

Low

JV/Franchise

Immediate Action

Filter 1 Filter 2

Short List Of Opportunities

Unfiltered Long-List Of Opportunities

* A customized and more complex framework is used to further evaluate

Source: EGNYT

Filtered Long-List Of Opportunities


Baseline analysis from Phase I, e.g., sector financials help in assessing financial attractiveness and thus prioritization

Source: EGNYT desk research

Apparel Industry in Numbers

Rapidly transforming industry with strong M&A activity

20

11

Ecommerce Legacy apparel

companies

Average Market Capitalization To EBITDA

Multiples - 2017

Based on averages of publicly listed Apparel companies

with $100m+ annual revenue

12-21%Contribution of online

sales to total revenue

2-3%Predicted 2017 industry

growth in line with GDP

1142012-16 average annual

global transactions

12.3xMedian EV/EBITDA

transaction multiple

Technological

disruption

New trends fuel revenue

growth Strong M&A activity High valuations globally

• Online retailing (e-tailing) shows rapid

growth, threatening retailers falling behind with technological investments – already

12% in Germany, 17% in the US, 13% in China (soon to be 20%) and 21% in the UK

• Segment type: affordable luxury

strongest (3.5-4.5%), and luxury weakest (1.5-2.5%)

• Product type: athletic

wear strongest (6.5-7.5%), and clothing and footwear were weakest (1.5-2.5%)

• Transaction volumes have recovered since

2011• Highest volumes in

Western Europe• H1 2017 slightly higher

activity than 2016

• Majority of transactions with

publicly available data have multiples above 10x EBITDA, with geographic divergence

• Main acquirers are incumbent players seeking economies of scale and scope

• Strong divergence of deal multiples: traditional fashion players at 7x EBITDA,

fast growing players at >15x EBITDA

CLIENT EXAMPLES


For example, future positioning of company determines intrinsic valuation and future exit valuation and thus IRR

• Bankers leading Lyft’s IPO are charged with

helping investors understand exactly how to

value the company, and which publicly traded

firms it should be compared to when pricing its

stock

• Some bankers promoted Lyft by using Grubhub,

Farfetch and other marketplaces, such Etsy,

Upwork and Booking Holdings, as comparables

• Other bankers are promoted Lyft as a platform

company — one that has grown based off of

their ability to connect large networks of people.

Comparables include Facebook, Alphabet, the

Square, Shopify, Netflix and MercadoLibre

• The types of companies that investors choose to

value Lyft against is very impactful because the

automotive industry tend to have a much lower

trading multiples

• In the case of Lyft, P/E ratios are less relevant, as the firm

loses money. Lyft registered a nearly $3 billion loss in 2018,

with $2.2 billion in sales

• Nonetheless, car manufacturers such as General Motors,

which owns a stake in Lyft, had a P/E ratio of 7, and Ford

had a P/E ratio of 9

• In comparison Meanwhile Grubhub had a P/E ratio of 90

Bankers Valuation Strategies P/E Ratio Is Not Relevant

• Lyft's IPO price is being set at about 6 times its estimated

2019 revenue of $3.3 billion

• So comparison to ratio of companies such as Amazon,

Facebook, and Netflix when they actually went public

• Snap went public at a valuation equivalent to 27x sales

• Twitter went public at 13x sales

• Farfetch went public in September 2018 at 16x sales

Sales Multiples & Timing Of Trade

Source: EGNYT Desk Research

EXAMPLE


As part of the concept development and business case, a dynamic financial model should be developed

ILLUSTRATIVE

Financials For Each Opportunity

Opportunity 1 Opportunity 2 Opportunity 3 Opportunity 4 Opportunity 5 …

Revenue

CAPEX

OPEX

IRR

NPV

Cash Flow

Phasing of

opportunities and

launch timing is

optimized using

several

methodologies (See

next slide)

Analysis of the

financials by

opportunity to

output the aggregate

cash flows and the

aggregate program

value

Consolidated Financials

Aggregate Revenue Aggregate OPEXAggregate CAPEX

Inputs

Demand MixOpportunity

PhasingFeatures Partnerships

Funding

Structure

NON-EXHAUSTIVE


Building a rugged dynamic financial and analytical model helps translate the opportunities into a roadmap with KPIs

Iteration 1

Iteration 2

Iteration n

E.g. Phasing of Based on Demand

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Total Capex Expected Demand# High ScenarioBase CaseLow Scenario

All PhasesPhase I

E.g. Internal Rate of Return (IRR)

Opportunity Introduction Phasing Financial Outcomes


Table Of Content

• Ways We Can Help Make This A Reality

• Background



• Methodology

• Summary


Project Senior Advisors

To conclude the process in 5 months or less, you will need 3-4 project dedicated individuals for most organizations

Optimal Project Team Structure

Steering Committee

§ 1 Senior Project Manager –

(Experienced Strategy and Innovation

Individual with strong finance

background)

Project Leader

§ External subject matter experts

§ Internal subject matter experts

§ Key executives and stakeholders (5)

§ Chief Strategy Officer

§ Senior Financial Analyst

§ Financial analyst

§ Research analyst

Project Team

§ Graphics and presentation visuals

§ Chief of Staff or Executive Assistant

Project Support Teams

CLIENT EXAMPLE

Leadership Team

Full-time Project Members


The roles and responsibilities of the Hackathon participants varies throughout the project

Typical Program Team Structure CLIENT EXAMPLE

Roles & ResponsibilitiesHackathon

The facilitator is usually the project leader who manages the entire

process from A-Z. During the Hackathon, the project/program leader

would facilitate the hackathon and pre-develop the presentation

material

External

SMEs

Company Key

Stakeholders

Project

Team

Setting

Internal

SMEs

The Project Team members are dedicated to the project and will

conduct their work as per assigned role. During the Hackathon, they will

support in capturing notes and conducts analysis on the fly

Company stakeholders participation is essential to ensure adopted

opportunities obtain the buy-in required ahead of the next phase and

that direction is in line with the organization’s shareholders and

stakeholders objectives

External SMEs and Internal SMEs would be subject matter experts or

skilled experts in field, industry, niche or competency and may help

improve the outcome of the Hackathon

The setting should be in location free on interruptions (preferably off-

site) and in a relaxed atmosphere. The participants would dress casually

and come prepared for a mental and intellectual straining and intense

workshop-style Hackathon.


Table Of Content

• Background



• Methodology

• Summary


In summary, the entire project would require around 10 steps to complete

Conduct

Industry and

Sector Deep-Dive

and Trend

Analysis

Baseline Internal

and Existing

Capabilities of

the Company

Develop

Presentation

Material and

Conduct In-Team

Hackathon Pilot

Baseline, Trends and

Hackathon Material

Preparation

Develop

Business Case,

Next Steps and

Implementation

Roadmap

Select and

Apply

Prioritization

Methodology

Baseline Hackathon Detailing

I II III

Opportunities IdentificationOpportunities Selection and

Detailing

Conduct

Hackathon

Develop a

Universe of

Opportunities

Select Feasible

Long List of

Opportunities

Conduct Case

Studies and

Develop

Relevant Tech.

Trends

Phase

Steps

Output

Mil

est

on

es

& I

nte

ract

ion

s

Select

Opportunities

and

Conceptualize

Business Model

1

2

3

4

5

6

8

9

7 10

Iterative Steps

Key Stakeholders

& Participants

Inclusion

On-Site

Client

InterviewsWorkshop

Material

Desktop

Research

Day

1

Day

2

Day

3

Concepts

& Business

Models

Business

Cases

Selected

Opportunities

Opportunities

SMEs

Interviews

ConclusionFeasible

Opportunities


Interaction

EGNYT can help in one of four ways ranging from training to turnkey management of the entire process

Source: EGNYT

EGNTY Involvement Level

Ad Hoc Coaching and

Support On Demand1

Program is managed jointly

between EGNYT and client organization with the aim to

train client staff and rollout process internally to become self sufficient in conducting

ongoing Hackathons in the future. This kind of

engagement could be structured with the objective of setting up an in-house

corporate accelerator. EGNYT could build the client in-house

structure from the ground up.

All-Out Training Or

Corporate Acceleration2

Turnkey Fully Managed

Program3

Intense & Accelerated 3-

Week Program4

This program involves

managing the same program as in Type 3 with the

difference of accelerating the time to deliverable and shortening the project

timeline. To achieve this, many of the tasks are conducted in

parallel while doubling the size of the assigned project team. EGNYT would be accountable

for timely and successful delivery of the program.

Remote coaching

and ad hoc with

availability of all

resources on

demand

Program structure as done for

you with an entirely outsourced Team conducted

through EGNYT, while partnering with client company in the process for a

successful outcome.

EGNYT would be accountable

for timely and successful delivery of the program as a

turnkey service provider.

Program is managed as “do-it-

yourself” with the client company in-sourced unit but

requiring coaching and training by acting as on-demand service provider in

filling the gaps for required expertise and in providing

back-office support. (e.g., canvas customization, conducting case studies,

Hackathon material, financial modelling, visual aid, etc.)

Type

Description

Time Line 5-6 month 4-5 month 6-16 Weeks 2-3 Weeks

A combination of

on-site and remote

coaching

A combination of

on-site and remote

interaction

Mostly on-site and

with availability of

all resources on

demand


In the past decade, we’ve conducted such projects with 100’s of companies of all sizes and across all sectors

Sample Clients


If you got to this page without skipping through

the deck, that is great! We thank you for going

through the entire guide and we hope you found

it useful. We would love to hear your feedback

on how we can improve it.

If it is not too much to ask, please send us your

feedback to Pam J. Schreim at

[email protected]

A final word…

mailto:[email protected]

the ultimate guide on business model hacking · so why hack your business model? benefits of...

Documents