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HOW TO DESIGN EXPONENTIAL (10X) BUSINESS MODELS? Patrick van der Pijl
HOW TO DESIGNEXPONENTIAL (10X) BUSINESS MODELS?
Patrick van der Pijl
YOUR HOST
Patrick Van der PijlCEO Business Models Inc.
WHAT DO WE LEARN FROM COMPANIES THAT GROW?
WHAT IS YOUR GROWTH AMBITION?
WHERE IS YOUR BUSINESS IN 3-5 YEARS TIME?
WHERE IS YOUR COMPANY IN X YEARS?
5 minutes
EXPONENTIAL BUSINESS MODELSHOW TO DESIGN THEM?
LET US DEFINE EXPONENTIAL FIRST…
WHAT IS AN EXPONENTIALBUSINESS MODEL?
exponentialˌɛkspəәˈnɛnʃ(əә)l/
Adjective.1. (of an increase) becoming more and more rapid2. of or expressed by a mathematical exponent."an exponential curve"
Peter Diamandis: from 10% to 10X
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Key partners
Key activities
Value proposition
Customer relationship
Customer segments
Key resources
Cost structure
Revenue streams
Channels
The Business Model Canvas
X XXX
X XXX
X10 BUSINESS MODELS
DEFINITION: “HOW WE CREATE EXPONENTIAL VALUE”
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Key partners
Key activities
Value proposition
Customer relationship
Customer segments
Key resources
Cost structure
Revenue streams
Channels
The Business Model Canvas
WHY?
EXPONENTIALITY CAN CLOSE THE GAP
SOME EXAMPLES OF 10X BUSINESS MODELS
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EXAMPLES OF 10X BUSINESS MODELS
LET’S LOOK AT NETFLIXWHAT IS 10X?
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Key partners
Key activities
Value proposition
Customer relationship
Customer segments
Key resources
Cost structure
Revenue streams
Channels
10X Business Model Netflix*
Mass Market
Sub-‐scription
Self service
Price
Acces-‐ibility
Unique content
Netflix.com
Multipledevices
Content
Algorithm
*Business Model is not complete
10X – NETFLIX ALGORITHM + CONTENT
LET’S LOOK AT ZAPPOSWHAT IS 10X?
DELIVER THE WOW!
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Key partners
Key activities
Value proposition
Customer relationship
Customer segments
Key resources
Cost structure
Revenue streams
Channels
10X Business Model Zappos*
Mass Market
LOVE brand
Selection
Culture!
Customer JOY!
Zappos.com
InsightsAmazon
Brands
UPS
*Business Model is not complete
10X – ZAPPOS’ HOLOCRACY CULTURE
MAKE A CHOICE ON BUSINESS MODEL FOR EACH COUNTRYX
LET’S LOOK AT FoodoutWHAT IS 10X?
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Key partners
Key activities
Value proposition
Customer relationship
Customer segments
Key resources
Cost structure
Revenue streams
Channels
10X Business Model Foodout*
*Business Model is not complete
LET’S LOOK AT TaxifyWHAT IS 10X?
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Key partners
Key activities
Value proposition
Customer relationship
Customer segments
Key resources
Cost structure
Revenue streams
Channels
10X Business Model Taxify*
*Business Model is not complete
LET’S LOOK AT Madara CosmeticsWHAT IS 10X?
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Key partners
Key activities
Value proposition
Customer relationship
Customer segments
Key resources
Cost structure
Revenue streams
Channels
10X Business Model Madara*
*Business Model is not complete
BEFORE WE START, WE NEED TO HAVE YOUR CURRENT BUSINESS MODEL FIRST
WHAT DOES YOUR CURRENT BUSINESS MODEL LOOK LIKE?
YOUR CURRENT BUSINESS MODEL HERE!
15 minutes
10 DESIGNPRINCIPLES FOR10X BUSINESS MODELS
10
RATE YOUR BUSINESS MODEL FROM 1 to 10.
10
1- SOLVE PROBLEM FOR MANY?
UBER CONNECTS DRIVERS & CLIENTS
EDISON CONNECTS CLIENTS & INVESTORS
RATE YOUR MODEL:“Do you solve problems for manycustomers and more segments?”
0 5 10
few customers, 1 segment
many customers, >1 segments
2- COMMUNITY OF FANS?
2- TESLA – COMMUNITY OF FANS
RATE YOUR MODEL:“Do you have a community of fans?”
0 5 10
no communitylarge community
of fans
3- ARE YOUR CHANNELS DIGITAL?
3- AUTODESK DIGITAL CHANNELS
RATE YOUR MODEL:“Are your channels digital?”
0 5 10
physical only digital onlyphysical and
digital
4- INFORMATION BASED SERVICES
4- SPOTIFY
RATE YOUR MODEL:“Do you have information basedservices?”
0 5 10
physical only
Information basedonly
physical andinformation based
5- MULTIPLE REVENUE STREAMS
5- AIRBNB – HOSTS AND GUESTS
RATE YOUR MODEL:“Do you have multiple revenu streams”
0 5 10
single stream multiple streams
6- SCALABLE PROCESSES
6- SCALABLE PROCESSES
RATE YOUR MODEL:“Are your processes scalable?”
0 5 10
not scalablefully
scalablesomewhat
scalable
7- ALGORITHM TO THE CORE
7- FACEBOOK READS OUR MIND
7- AMAZON KNOWS WHAT’S NEXT
RATE YOUR MODEL:“Do you use algorithm to the core?”
0 5 10
Don’t have data, nor algorithm
Algorithmto the core
Setting up first experiments
8- “HOLOCRACY” CULTURE
8- “HOLOCRACY” CULTURE
RATE YOUR MODEL:“Do you have a holocracy culture?”
0 5 10
We manage byhierarchy & procedures Holocracy
Some hierarchy, some freedom
9- LEVERAGE PARTNERS
9- NETFLIX AND AMAZON CLOUD
RATE YOUR MODEL:“Do you leverage assets throughpartners?”
0 5 10
No leverage
Full leverage
Someleverage
10- APPLY LEAN WAY OF WORKING
10- GE & LEAN
RATE YOUR MODEL:“Do you apply LEAN way of working?”
0 5 10
No LEAN
FullyLEAN
Somenotion of
LEAN
© www.businessmodelgeneration.com
Key partners
Key activities
Value proposition
Customer relationship
Customer segments
Key resources
Cost structure
Revenue streams
Channels
HolacracyCulture
Algorithmto the core
LeveragePartners
Leanapproach
Community of fans
Info based offering
Scalableprocesses
Solve problems for many
1
24
7
9
6
8
Digital channels
3
10
MultipleStreams
5
Exponential Business Model Checklist (score 1 to 10)VALUE PROPOSITION CUSTOMER RELATIONSHIP CUSTOMER SEGMENTS
CHANNELSKEY RESOURCES
KEY ACTIVITIESKEY PARTNERS
COST STRUCTURE REVENUE STREAMS
4. To what extent is your offering information
based?
9. Do you leverage
activities to partners?
6. Are your processes scalable?
7. Do you apply algorithm to the
core?
8. Do you have a holocracy culture?
2. Do you have a community of
fans?
3. Are your channels digital?
1. Do you solve problems for many?
5. Do you have a multiple revenue stream?
10. Do you apply LEAN working?
WHAT IS YOUR TOTAL SCORE? ?
WHAT IS YOUR TOP 3 PRIORITY YOU WANT TO WORK ON? ?
WHAT ABOUT THE FUTURE? ?
KEEP AN EYE ON PLATFORM BUSINESS
A.I. WILL CHANGE THE GAME
ROBOTICS
BUSINESSDESIGNERSUNITE!
`DESIGNABETTERBUSINESS.COM
