Business Model Innova/on in the Tourism and Experience Economy
A Joint Nordic Innova,on and OECD Programme on Innova/ve Green
Growth
Copenhagen 22 June, 2011
Presenta/on by
Jørn Bang Andersen, Senior Advisor Innova/on j.Andersen@nordicinnova/on.org
Nordic Innova/on
www.nordicinnova/on.org
Items
• The Value Proposi/on of the Programme • The Tool‐kit: Innova/on Radar • Linking Green Growth and Innova/on • Applying Business Model Innova/on
2
“No Battle Plan Survives Contact With the Enemy” General Colin Powell
Charles Joseph Minard: Mapping Napoleonʼs March, 1861
© Jørn Bang Andersen 2011 3
…. And Few Innovation Plans Survive Contact With Market Realities
© Jørn Bang Andersen 2011
The global innovation success average, across all geographies and all industries…
Imagine… what if we could reach…
4% 40%
4
Change of Mindset
Differentiation
New Tool +
= Successful Green Innovation
Programme Proposition
© Jørn Bang Andersen 2011
+
5
The Results
New Business Models
New Value Crea/on
More Competitive
New Tool Differentiate Changed Mindset
New Markets Green Growth Profit
More Innovative
© Jørn Bang Andersen 2011 6
Value Capture
Customer Experience
Solution
Platform Ecosystem
Management
Offering
Process
Channel
Communication
Customer Need
Supply Chain
© Examples Jørn B. Andersen: Adapted from Mohan Sawhney and Jiyao Chen’s Innova/on Radar 2.0
8
l Select 2 ‐ 5 dimensions to get a clear focus in your innova7on efforts
l Look for dimensions that differen/ate your company from its compe/tors: Dimensions of Differen7a7on & Dimensions of Parity
l Coordinate all internal func7ons and external partners to innovate around these differen7a7ng dimensions of your business system
Tying Innovation to Corporate Strategy
9
All Rights Reserved, Robert C. Wolcott, 2003 - 2007
1
2
3
4
5
6
7
Offerings
Platform
Solutions
Customers
Customer Experience
Value Capture
Process
Organization
Supply Chain
Presence
Networking
Brand
Food Products Firmsʼ Radar Profiles Firm: A
0
1
2
3
4
5
6
7
Offerings
Platform
Solutions
Customers
Customer Experience
Value Capture
Process
Organization
Supply Chain
Presence
Networking
Brand
Firm: B
Four Key Elements
• Reduce carbon emissions • Conserva/on of bio‐diversity • Manage waste properly • Protect and conserve water
© Jørn Bang Andersen 2011 14
The New Business Model Profit poten,al
Green impact poten,al
Old school company
Old school not for profit
+
+
_
_
New school of conscien/ous entrepreneurs
15
Three Ways to Look at it…
1. The same as the industry– but a lot better.
2. Turn a dimension on its head.
3. Look across other industries for new solutions.
© Jørn Bang Andersen 2011 17
Turn a Dimension on its Head Cirque de Soleil No animals No logistics Opera clients = premium
price plus…
© Jørn Bang Andersen 2011
20
Look Across Industries for New Solutions
Tetette
© Jørn Bang Andersen 2011
Toyota
Ford
Fischer Ski
Nike
Textiles
Slaugther house
Violin builder
Formula 1
21
Four Attributes to Compete on…
Functionality
Price Experience © Jørn Bang Andersen 2011
Partnership/Ecosystem?
22
What business are we in?
Who is our customer?
What solu/ons do we provide?
How do we what we do?
What is our business?
Who is the customer?
What does the customer buy?
What is the value to the customer?
Business Model Innovation to
the Core What will our business be?
Are we in the right business?
© Jørn Bang Andersen 2010 25
Plus a Few Simple Steps…
• Visualize and brainstorm • Differentiate on maximum 3-5 dimensions • Prototype small scale and develop
• Communicate and align • Review innovative green growth strategy
© Jørn Bang Andersen 2011 26
1. Profile ‐ Current State ‐ Compe//on ‐ Diverse Perspec/ves
4. Track ‐ Progress ‐ Performance
3. Enable ‐ Communicate ‐ Educate ‐ Empower
2. Envision ‐ Strategic Dimensions ‐ Desired Future State
Sum up the Innovation Radar Applied…
27
Быстро = bystro (quickly) Changed mindset – Russian Cossack soldiers Differentiate – quick cooking New business – Bistro concept
End Note: From Failure to Success
Thus the French Bistro was borne. © Jørn Bang Andersen 2011 28