NEWSLETTER

HULT INTERNATIONAL BUSINESS SCHOOL - DECEMBER

ISSUE NO.1

Business Modeling
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 to reinvent themselves. How do you imagine an organizations business model might look in two, ve or ten years from now? Will you be among the dominant players? Will you face competitors brandishing formidable new business models? The Business Modeling Club will review companies core values, why and how are business organized, and how could we improve organizations. The theory which will be used is based on Osterwalders and Pigneurs (2010). We will aim to give insight into the nature of business models, describe traditional and bleeding edge models and their dynamics, innovation techniques, how to position your model within and intensely competitive landscape, and how to lead the redesign of a business model.

The Theory
This concept allows you to describe and think through the business model of your organization, your competitors, or any other enterprise. This concept has been applied and tested around the world and is already used in organizations such as IBM, Ericsson, Deloitte, the Public Works and Government Services of Canada, and many more. This concept can become a shared language that allows you to easily describe and manipulate business models to create new strategic alternatives. Without such a shared language it is difcult to systematically challenge assumptions about ones business model and innovate successfully. A business model can best be described through nine basic building blocks that show the logic of how a company intends to make money. The nine blocks cover the four main areas of a business: customers, offer, infrastructure, and nancial viability. The business model is like a blueprint for a strategy to be implemented through organizational structures, processes, and systems.

Tweets to Remember
From @AlexOsterwalder: However hard u think about your venture, the reality of the market will always be different from what u imagined it would be! #leanstartup
Alexander Osterwalder is an entrepreneur, speaker and business model innovator. Together with Professor Yves Pigneur he co-authored Business Model Generation, a global bestseller on the topic of business model innovation.

Interesting Links
1. Creativity Should be taught as a course 2. http://bmgenlondon2013aotwi.eventbrite.com/ 3. Accelerators

From @AlexOsterwalder: Entrepreneurship is the art of testing your vision and turning those insight into a better business model design.

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Business Model of the month

Apple
Apple Inc. became an industry leader in the digital music market at the beginning of the 21st Century with its iPods and iTunes store bringing in $1 billion in revenues in 2003 and increasing to $150+ billion by 2007. Apple was not the rst to introduce digital players to the market when it launched the iPod in 2001-- that happened three years earlier. The iPod became a staple product worldwide because Apple took their innovative technology and combined it with an innovative business model. Apples unique business model combined hardware, software, and service to create a convenient and simple platform for digital downloading. Apples strategy followed a reverse course to Gilettes freebie marketing; Apple combined relatively lowscope iTunes music sales with its highscope iPods, thereby creating customer incentive for the purchase of the iPod over other MP3 players. For an established company, it is a risky to implement a new business model to create growth. Apples management strategically decided to enfold its model around their new branded technology (the iPod) to capitalize on the market. Apple has ensured its value proposition of easily searchable and downloadable MP3s through intercompany deals with recording companies throughout the industry, and through the linkage of the iTunes store with the iPod product. The company has evolved its original model of integrating product (the iPod) with service (iTunes store) to expand to its iPhone and iPad with its Application store Apple now operates with a powerful multisided platform business model, which also controls third party applications through its iTunes and Application stores.

TRIANGULATING USER EXPERIENCE

Users are wily and/or chronically incoherent. Sometimes they say things that just dont make a bit of sense. Sometimes they say things that make a ton of sense but are completely false. Sometimes we hear what theyre saying but dont listen to the meaning. Using just one tool like Customer Development or a survey gives you one piece of information that represents a general direction and arc of where the ideal User Experience might be. Youve narrowed your search. Please do go out and talk to your customers. Its critical. Its the first thing you should be doing. You wont even know what questions you should be asking on your endlessly fine tuned (and probably useless) survey until you talk to a few customers. But THEN Use a different tool. Get a different angle. Triangulate the User Experience.
http://grasshopperherder.com/triangulating-the-user-experience/

Now go back and talk to people. Youll have a whole new set of questions to ask. Finally, get a second perspective. Go push your co-founder out of the building. A second opinion with different assumptions will ask different questions, hear different answers, and help you zero in on where your product needs to go. We cant see our own typos, we cant find the whitespace error thats crashing our app, what makes us presume that we are the end all, be all opinion on our customers?

23 Ja nuar FIRST GUEST SPEAKER: PATRICK VAN DER PIJL y 2013 (inter)national organizations in
many industries among others Entertainment, Media and Telecom, Hospitality, Financial Sector.

Patrick is the producer of the book Business Model Generation written by Alexander Osterwalder and Yves Pigneur. On January 23, we are proud to welcome our first guest speaker Patrick van der Pijl, CEO Business Models Inc. His business facilitates the formulation of new business model strategies in (inter)national organizations, finding strengths and weaknesses of their business model and supporting business model innovation. Patrick has 17 years of experience in innovation, organizational (re)design, process (re)design and business modeling for Before founding Business Models Inc., Patrick was partner at innovation factory ULURU in Amsterdam and senior manager at PricewaterhouseCoopers, Deloitte and Andersen.

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