If you've answered yes”to any of these questions,welcome to our group! You're holding a handbook for visionaries,game changers,and challengers striving to defy outmoded business models and design tomorrow's enterprises. It's a book for the business model generation
If you’ve answered “yes” to any of these questions, welcome to our group! You’re holding a handbook for visionaries, game changers, and challengers striving to defy outmoded business models and design tomorrow’s enterprises. It’s a book for the business model generation. bmgen_final.indd 3 6/15/10 5:31 PM
Today countless innovative business models are emerging.Entirely new industries are forming as old ones crumble.Upstarts are challenging the old guard,some of whom are struggling feverishly to reinvent themselves. How do you imagine your organization's business model might look two,five,or ten years from now?Will you be among the dominant players?Will you face competitors brandishing formidable new business models?
Today countless innovative business models are emerging. Entirely new industries are forming as old ones crumble. Upstarts are challenging the old guard, some of whom are struggling feverishly to reinvent themselves. How do you imagine your organization’s business model might look two, five, or ten years from now? Will you be among the dominant players? Will you face competitors brandishing formidable new business models? bmgen_final.indd 4 6/15/10 5:31 PM
This book will give you deep insight into the nature of business models. But the scale and speed at which innovative business models are t describes traditional and bleeding-edge models and their dynamics transforming industry landscapes today is unprecedented.For entre nnovation techniques,how to position your model within an intensely preneurs,executives,consultants,and academics,it is high time to competitive landscape,and how to lead the redesign of your own organi- understand the impact of this extraordinary evolution.Now is the time zation's business model to understand and to methodically address the challenge of business Certainly you've noticed that this is not the typical strategy or man- model innovation. agement book.We designed it to convey the essentials of what you need Ultimately,business model innovation is about creating value,for to know,quickly,simply,and in a visual format.Examples are presented companies,customers,and society.It is about replacing outdated models. pictorially and the content is complemented with exercises and workshop With its iPod digital media player and iTunes.com online store,Apple scenarios you can use immediately.Rather than writing a conventional created an innovative new business model that transformed the company book about business model innovation,we've tried to design a practical into the dominant force in online music.Skype brought us dirt-cheap guide for visionaries.game changers,and challengers eager to design or global calling rates and free Skype-to-Skype calls with an innovative reinvent business models.We've also worked hard to create a beautiful ousiness model built on so-called peer-to-peer technology.It is now the book to enhance the pleasure of your"consumption."We hope you enjoy world's largest carrier of international voice traffic.Zipcar frees city dwell- using it as much as we've enjoyed creating it ers from automobile ownership by offering hourly or daily on-demand An online community complements this book (and was integral to car rentals under a fee-based membership system.It's a business model its creation,as you will discover later).Since business model innovation response to emerging user needs and pressing environmental concerns. is a rapidly evolving field,you may want to go beyond the essentials in Grameen Bank is helping alleviate poverty through an innovative business Business Model Generation and discover new tools online.Please consider model that popularized microlending to the poor. joining our worldwide community of business practitioners and research- But how can we systematically invent,design,and implement ers who have co-created this book.On the Hub you can participate in these powerful new business models?How can we question,challenge, discussions about business models,learn from others'insights,and try and transform old,outmoded ones?How can we turn visionary ideas out new tools provided by the authors.Visit the Business Model Hub at into game-changing business models that challenge the establishment-or www.BusinessModelGeneration.com/hub. rejuvenate it if we ourselves are the incumbents?Business Model Generation Business model innovation is hardly new.When the founders of Diners aims to give you the answer Club introduced the credit card in 1950,they were practicing business Since practicing is better than preaching,we adopted a new model model innovation.The same goes for Xerox,when it introduced photo- for writing this book.Four hundred and seventy members of the Business copier leasing and the per-copy payment system in 1959.In fact,we might Model Innovation Hub contributed cases,examples,and critical com- trace business model innovation all the way back to the fifteenth century. ments to the manuscript-and we took their feedback to heart.Read more when Johannes Gutenberg sought applications for the mechanical printing about our experience in the final chapter of Business Model Generotion. device he had invented
This book will give you deep insight into the nature of business models. It describes traditional and bleeding-edge models and their dynamics, innovation techniques, how to position your model within an intensely competitive landscape, and how to lead the redesign of your own organization’s business model. Certainly you’ve noticed that this is not the typical strategy or management book. We designed it to convey the essentials of what you need to know, quickly, simply, and in a visual format. Examples are presented pictorially and the content is complemented with exercises and workshop scenarios you can use immediately. Rather than writing a conventional book about business model innovation, we’ve tried to design a practical guide for visionaries, game changers, and challengers eager to design or reinvent business models. We’ve also worked hard to create a beautiful book to enhance the pleasure of your “consumption.” We hope you enjoy using it as much as we’ve enjoyed creating it. An online community complements this book (and was integral to its creation, as you will discover later). Since business model innovation is a rapidly evolving field, you may want to go beyond the essentials in Business Model Generation and discover new tools online. Please consider joining our worldwide community of business practitioners and researchers who have co-created this book. On the Hub you can participate in discussions about business models, learn from others’ insights, and try out new tools provided by the authors. Visit the Business Model Hub at www.BusinessModelGeneration.com/hub. Business model innovation is hardly new. When the founders of Diners Club introduced the credit card in 1950, they were practicing business model innovation. The same goes for Xerox, when it introduced photocopier leasing and the per-copy payment system in 1959. In fact, we might trace business model innovation all the way back to the fifteenth century, when Johannes Gutenberg sought applications for the mechanical printing device he had invented. But the scale and speed at which innovative business models are transforming industry landscapes today is unprecedented. For entrepreneurs, executives, consultants, and academics, it is high time to understand the impact of this extraordinary evolution. Now is the time to understand and to methodically address the challenge of business model innovation. Ultimately, business model innovation is about creating value, for companies, customers, and society. It is about replacing outdated models. With its iPod digital media player and iTunes.com online store, Apple created an innovative new business model that transformed the company into the dominant force in online music. Skype brought us dirt-cheap global calling rates and free Skype-to-Skype calls with an innovative business model built on so-called peer-to-peer technology. It is now the world’s largest carrier of international voice traffic. Zipcar frees city dwellers from automobile ownership by offering hourly or daily on-demand car rentals under a fee-based membership system. It’s a business model response to emerging user needs and pressing environmental concerns. Grameen Bank is helping alleviate poverty through an innovative business model that popularized microlending to the poor. But how can we systematically invent, design, and implement these powerful new business models? How can we question, challenge, and transform old, outmoded ones? How can we turn visionary ideas into game-changing business models that challenge the establishment—or rejuvenate it if we ourselves are the incumbents? Business Model Generation aims to give you the answers. Since practicing is better than preaching, we adopted a new model for writing this book. Four hundred and seventy members of the Business Model Innovation Hub contributed cases, examples, and critical comments to the manuscript—and we took their feedback to heart. Read more about our experience in the final chapter of Business Model Generation. bmgen_final.indd 5 6/15/10 5:31 PM
Seven Faces of The Senior Executive The Intrapreneur The Entrepreneur Jean-Pierre Cuoni, Dagfinn Myhre. Marielle Sijgers, Business Model Chairman /EFG International Head of Ral Business Models /Telenor Entrepreneur/CDEF Holding BV Focus:Establish a new business model Focus:Help exploit the latest techno- Focus:Address unsatisfied customer Innovation in an old industry logical developments with the right needs and build new business models Jean-Pierre Cuoni is chairman of business models around them EFG International,a private bank Dagfinn leads a business model unit Marielle Sijgers is a full-fledged with what may be the industry's most at Telenor,one of the world's ten larg entrepreneur.Together with her innovative business model.With est mobile telephone operators.The business partner,Ronald van den EFG he is profoundly transforming telecom sector demands continuous Hoff,she's shaking up the meeting the traditional relationships between innovation,and Dagfinn's initiatives congress,and hospitality industry bank,clients,and client relationship help Telenor identify and understand with innovative business models. managers.Envisioning,crafting,and sustainable models that exploit the Led by unsatisfied customer needs, executing an innovative business potential of the latest technological the pair has invented new concepts model in a conservative industry with developments.Through deep analysis such as Seats2meet.com,which allows established players is an art,and of key industry trends,and by develop- on-the-fly booking of meetings in one that has placed EFG International ing and using leading-edge analytical untraditional locations.Together, among the fastest growing banks tools,Dagfinn's team explores new Sijgers and van den Hoff constantly in its sector business concepts and opportunities. play with new business model ideas and launch the most promising concepts as new ventures
Seven Faces of Business Model Innovation The Senior Executive Jean-Pierre Cuoni, Chairman / EFG International Focus: Establish a new business model in an old industry Jean-Pierre Cuoni is chairman of EFG International, a private bank with what may be the industry’s most innovative business model. With EFG he is profoundly transforming the traditional relationships between bank, clients, and client relationship managers. Envisioning, crafting, and executing an innovative business model in a conservative industry with established players is an art, and one that has placed EFG International among the fastest growing banks in its sector. The Intrapreneur Dagfi nn Myhre, Head of R&I Business Models / Telenor Focus: Help exploit the latest technological developments with the right business models Dagfi nn leads a business model unit at Telenor, one of the world’s ten largest mobile telephone operators. The telecom sector demands continuous innovation, and Dagfi nn’s initiatives help Telenor identify and understand sustainable models that exploit the potential of the latest technological developments. Through deep analysis of key industry trends, and by developing and using leading-edge analytical tools, Dagfi nn’s team explores new business concepts and opportunities. The Entrepreneur Mariëlle Sijgers, Entrepreneur / CDEF Holding BV Focus: Address unsatisfi ed customer needs and build new business models around them Marielle Sijgers is a full-fl edged entrepreneur. Together with her business partner, Ronald van den Hoff, she’s shaking up the meeting, congress, and hospitality industry with innovative business models. Led by unsatisfi ed customer needs, the pair has invented new concepts such as Seats2meet.com, which allows on-the-fl y booking of meetings in untraditional locations. Together, Sijgers and van den Hoff constantly play with new business model ideas and launch the most promising concepts as new ventures. bmgen_final.indd 6 6/15/10 5:31 PM
The Investor The Consultant The Designer The Conscientious Entrepreneur Gert Steens.President&Investment Bas van Oosterhout.Senior Trish Papadakos lqbal Quadir,Social Entrepreneur/ Analyst/Oblonski Bv Consultant/Copgemini Consulting Sole Proprietor/The Institute of You Founder of Grameen Phone Focus:Invest in companies with the Focus:Help clients question their Focus:Find the right business model Focus:Bring about positive social and most competitive business models business models,and envision and to launch an innovative product economic change through innovative Gert makes a living by identifying the build new ones Trish is a talented young designer business models best business models.Investing in the Bas is part of Capgemini's Business who is particularly skilled at grasp- lqbal is constantly on the lookout wrong company with the wrong model Innovation Team.Together with ing an idea's essence and weaving it for innovative business models with could cost his clients millions of euros his clients,he is passionate about into client communications.Currently the potential for profound social and him his reputation.Understanding boosting performance and renewing she's working on one of her own ideas, impact.His transformative model new and innovative business models competitiveness through innovation. a service that helps people who are brought telephone service to over has become a crucial part of his work. Business Model Innovation is now a transitioning between careers.After 100 million Bangladeshis,utilizing He goes far beyond the usual financial core component of his work because weeks of in-depth research,she's now Grameen Bank's microcredit network. analytics and compares business of its high relevance to client projects. tackling the design.Trish knows she'll He is now searching for a new model models to spot strategic differences His aim is to inspire and assist clients have to figure out the right business for bringing affordable electricity to the that may impart a competitive edge with new business models,from model to bring her service to market. poor.As the head of MIT's Legatum Gert is constantly seeking business ideation to implementation.To achieve She understands the client-facing Center,he promotes technological model innovations. this,Bas draws on his understanding part-that's what she works on daily empowerment through innovative of the most powerful business models, as a designer.But,since she lacks for- businesses as a path to economic and regardless of industry. mal business education,she needs the social development. vocabulary and tools to take on the big picture
The Investor Gert Steens, President & Investment Analyst / Oblonski BV Focus: Invest in companies with the most competitive business models Gert makes a living by identifying the best business models. Investing in the wrong company with the wrong model could cost his clients millions of euros and him his reputation. Understanding new and innovative business models has become a crucial part of his work. He goes far beyond the usual fi nancial analytics and compares business models to spot strategic differences that may impart a competitive edge. Gert is constantly seeking business model innovations. The Consultant Bas van Oosterhout, Senior Consultant / Capgemini Consulting Focus: Help clients question their business models, and envision and build new ones Bas is part of Capgemini’s Business Innovation Team. Together with his clients, he is passionate about boosting performance and renewing competitiveness through innovation. Business Model Innovation is now a core component of his work because of its high relevance to client projects. His aim is to inspire and assist clients with new business models, from ideation to implementation. To achieve this, Bas draws on his understanding of the most powerful business models, regardless of industry. The Designer Trish Papadakos, Sole Proprietor / The Institute of You Focus: Find the right business model to launch an innovative product Trish is a talented young designer who is particularly skilled at grasping an idea’s essence and weaving it into client communications. Currently she’s working on one of her own ideas, a service that helps people who are transitioning between careers. After weeks of in-depth research, she’s now tackling the design. Trish knows she’ll have to fi gure out the right business model to bring her service to market. She understands the client-facing part—that’s what she works on daily as a designer. But, since she lacks formal business education, she needs the vocabulary and tools to take on the big picture. The Conscientious Entrepreneur Iqbal Quadir, Social Entrepreneur / Founder of Grameen Phone Focus: Bring about positive social and economic change through innovative business models Iqbal is constantly on the lookout for innovative business models with the potential for profound social impact. His transformative model brought telephone service to over 100 million Bangladeshis, utilizing Grameen Bank’s microcredit network. He is now searching for a new model for bringing affordable electricity to the poor. As the head of MIT’s Legatum Center, he promotes technological empowerment through innovative businesses as a path to economic and social development. bmgen_final.indd 7 6/15/10 5:31 PM