M501

Innovation Management & Digital Transformation

Week 6

Prof. Dr. Peter Konhäusner

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Today
• Continue with “The Paris Metro Pricing Study“
• Some ideas for how to structure the assessment

• But, first: How are you doing with the asynchronous material?

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The Paris Metro Pricing Study

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The Paris Metro Pricing Study

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The Paris Metro Pricing Study

Product — how and to what extent does your product sell online?

Price — Is there the opportunity to use price as a mechanism for digitalization? (Don’t
forget affiliation marketing — loyality marketing — volume discounts — reseller discounts
— …)

Place — where to buy your product? Do you need tickets at all?

Promotion — your guess …

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The deck of slides
• Max. 10-12 slides
• Title page with idea in clear and distinct words
• No. 2 Executive Summary with 4-5 bullets
• No. 3 Business canvas (or equivalent) — do not overload with words!
• Put yourself into the shoes of your audience: what should they
remember of your presentation?
• Correct: they should remember
• The DSBI in simple words
• That it is without alternative
• That those who crafted it are smart people and no nerds or corporate bullshitters
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The objective
Present a digital strategic business opportunity to the CEO in such a
compelling way that he/she will approve the investment and you can
start implementing it.
• Contents of your plan:
• The idea in clear and distinct words
• The problem at the outset — bring data: where’s the evidence?
• Alternative solutions incl. what if
• What is the return (or benefit, or payback) for the organization
• Appendix

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The idea in clear and distinct words
• Avoid complex syntax and technical jargon
• Litmus test: Can the proposal be expressed in the form of a slogan?
• Needs to grab attention of CEO e.g., effectiveness of organization
(“more with less“), big numbers, especially $, being ahead of
competitors, being behind competitors (i.e., catching up)
• Example:
• “Radically improving customer experience and saving up to $m XYZ through a
smartphone-based vending app.”
• “Reducing applicant cycle-time by 50% and hence safeguarding strategic goal of hiring
150 new people”
• “Algorithmic applicant ratings that radically shrink applicant input and reduce the
applicant screening process by 80%.“
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The problem at the outset
• Avoid drama
• Explain why it is a problem in sober and neutral terms
• Bring data and evidence — focus on KPIs — Avoid fireworks of
graphs and metrics: the truth doesn't need umpteen metrics
• Be prepared that your problem analysis may be challenged — by the
CEO his/herself, or by his/her “court“
• Expect resentment, envy, rivalry, showing off in front of the CEO
• Expect the CEO to have her/his mind elsewhere

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What if
• Describes what happens if your solution will not be given green
lights, if status quo prevails
• Again: avoid drama (e.g., “then we will all be dead“)

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The return on investment
• Tricky!
• Use rock-solid assumptions, do not try to overwhelm anybody
• Be as conservative as possible with forecasts
• Golden rule: build a realistic forecast, then deduct 30-40%
• When you think you have got it nailed, look at your assumptions
again.
• The classic: your ideas are considered good, but your assumptions
and predictions are contested (by the CEO or his/her court).

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Tools for your presentation

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 What kind of impact do you want to make
with this product/service/initiative/
program? How do you measure your
impact?

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