Building

businesses
that your
customers love

Your Head

The biggest tool for

creativity

Your Head

The biggest impediment

to innovation

We understand our
current way with linear
development

2 x 40 = 80

However, exponential
development are not
comprehensible for
humans

240= ?

240= 1,099,511,627,776

We love
ore f

he ame

1
Beyond optimization of the past

We have to unlearn the

past and rethink our
business from the
customer perspective
If you do not do it, others will

Do we really need
somebody to tell us when
we have to watch a show?

Do we need
accountants?

Actually, accountants are

just one mean to get our
books done, manage cash
or get expenses ready for
taxes.

Do we need taxis?

People want to move easily

and with convenience in
cities. Taxis are just one
mean to do it.

2
Beyond product innovation

Dont think in markets or

products but in customer
needs or jobs-to-be-done

The company invented

the digital camera in
1973

was the partner of

choice for Apple to
enter the digital camera
market

but never understood

that digital is not a
product innovation but
demands a whole new
business model

Digital was not about

the best quality that
traditional customers
of Kodak loved

From keeping to
sharing memories Digital solves new jobs
for customers

Customers discovered
new uses, no sane person
would have ever thought
off

Wow, I have invented the future of

advertising. We do not need any videos

or pictures or even color anymore.

The future will be a text ad with maximal

95 characters.
Its brilliant, isnt it?

Instead of looking for

better products, Google
Adwords brought back
relevance to the ad
industry

3
Dont optimize the past, invent the future

If you dont think from your

customers perspective and
their jobs-to-be-done, you will
be exterminated

The customer perspective: Technology does not create value. It

is the value proposition the customer loves

product/services

solves

happy customers

creates

customers job-to-be-done

business model

addressed
by

delivered by

value proposition

Do we need ho

Or do we need a place
with people in order
to connect to the
place like at AirBnB?

Customer job to be done

We do not need a hotel. We

need an accommodation plus
extras like connecting to
people. That are the jobs-tobe-done.
Customers hire a product or
service to get a job done. The
products are a means to an
end, not an end in themselves.

Value Proposition
The job-to-get-done is
solution neutral. The job is to
provide accommodation plus
extra benefits like connecting
to people.
Potential solution:
3* hotel
Formule 1 Hotel
AirBnB (accommodation
plus connection to
people)
friend that life in the city

4
Its not the product alone that creates value

The value proposition has

to be delivered by the
whole business model

What is a
busines
s

The business model is

the DNA of your
business

The business model

gives meaning to your
employees and
customers

4 key questions for a successful business:

What excites How do we

our create value
customers?
for our
customers?

Value Proposition

Value Architecture

How do we
Who is our
earn money? team?
What values
do we
pursue?

Revenue Model

Team & Values

What excites our customer?

Value
Proposition

Customer
Who is our
customer?
What job do we
solve for them?

Value
What value do we
create for our
customers? What
value do we create
for our partners?

How do we create the value?

Value
architecture

Offer
What is our offer?

Distribution &
Communication
Channels
How do we reach
our customers?
How do we
communicate with
our customers?

Core Capabilities
What are the core
capabilities we
need?

Partner
What partners do
we need?

Value Chain
What activities do
we have to do to
produce our offer?
How does our
value chain look
like?

How do we earn money?

Revenue
Model

Cost Structure
Cost structure is
defined by your
value architecture.

Revenue Sources
With what do we
earn money?

Who is on our team? What values do we live?

Team &
Values

Team
Who is our team?
What
competencies do
we have in our
team?

Values
What values do we
life in our team?
How do we
interact with each
other and with
customers?

Questions for a Successful Business Model

Value Architecture
O!er
What is our o!er?

Value Proposition
Distribution & Communication
Channels
How do we reach our customers?
How do we communicate with
our customers?

Value Chain
What are our value creating steps?
What is our value chain?

Core Capabilities
What are the core capabilities
we need?

Customers
Who are our customers?
What job do we solve for our
customers?
Customer Benefit
What benefit do we create for our
customers?
What benefit do we create for our
partners?

Partner
Which partners do we need?

Revenue Model
Cost Structure
Cost structure is defined by the
value architecture.

Revenue Sources
With what do we earn money?

Team & Values

Team
Who is on our team?
What competencies do we have
on the team?

Values
What values do we pursue?
How do we interact with each other
and the customers?

Questions for a Successful Business Model

Value Architecture
O!er
What is our o!er?

Value Proposition
Distribution & Communication
Channels
How do we reach our customers?
How do we communicate with
our customers?

Value Chain
What are our value creating steps?
What is our value chain?

Core Capabilities
What are the core capabilities
we need?

Customers
Who are our customers?
What job do we solve for our
customers?
Customer Benefit
What benefit do we create for our
customers?
What benefit do we create for our
partners?

Partner
Which partners do we need?

Revenue Model
Cost Structure
Cost structure is defined by the
value architecture.

Revenue Sources
With what do we earn money?

Team & Values

Team
Who is on our team?
What competencies do we have
on the team?

Values
What values do we pursue?
How do we interact with each other
and the customers?

5
New boxes to think in are not enough

Think like a designer.

Plan the process, not the
result, prototype, iterate
Start with customer insights

Business Design is a process of opening your

mind and focusing at the end

Point of View

Customer
Insight

Understand

Ideate

Design

Decide &
Prototype

Build & Learn

Customer Insights
based on jobs-to-bedone are the starting
points for business
model innovation

Business
model
innovation

New value
proposition

Customers
insight

6
Dont start with a solution

Observe the customer

experience journey aka
jobs-to-be-done
Follow the whole customer journey

1
Customer Insight

- Observe your customers

What job is not yet or
badly solved?
- How does the Customer
Experience Cycle look
like?
- On what customer insights
is your idea based?
- validate customer insight

Observe the customer along the whole customer experience

journey and find badly or unsolved jobs-to-be-done

Customer Experience Journey

Buy

Delivery/
Assembly

Usage

Understand how the customers are buying,

using and disposing the product
Understand the whole lifecycle of customers
utility

Complements

Service

Disposal

How can we improve the buyers utility cycle?

Can we do more for the customer?
Can we leave something to the customer?

Source: cp. Kim, W.C., Mauborgne, R., Knowing a Winning Business Idea when
you see one, HBR Sep-Oct. 2000

Unsolved job-to-be-done

What is the biggest

problem with socks?

Understand
- understand the current
solutions and their
strength & weakness
- understand how the
potential customer thinks
and decides
- understand the market &
market mechanism

Ideate
Develop as many ideas as
possible in the area of
- customers/ value
proposition
- value architecture
- revenue model

Design
- decide for three or four
options
- design the business
models for the options
- check the
interdependencies in the
business models
- work on the uniqueness
(positioning)
- optimize the building
blocks

Business Model:

Use the canvas to Value Proposition

develop your business
model!

Value Architecture
O!er

Di
Ch

Customers

Value Chain

Customer Benefit

Core Capabilities

Partner

Revenue Model
Cost Structure

Revenue Sources

Team

Values

Team & Values

Decide & Prototype

- decide for the best model
to go for
- build prototype
- test prototype with
customers
- write business case
- decide again or work on
different option

Build & Learn

- execute business model
- learn continuously from
customer feedback and
control KPIs
- adjust and refine
continuously the business
model