Alex Osterwalder - Competing on Business Models - Nordic Business Forum

thank you so good morning everybody who's up for learning something hands up okay who's up for competing on Swiss chocolate hands up okay that's it okay well you still think Belgian Belgian chocolate is good you don't know what you're talking about okay so I want to talk about two things today first I want to go back to the basics and look at how to compete on business models I think many of you might know the business model canvas that's fine we're still going to start with the basics and then in the afternoon session I will talk about how organizations need to radically change and I don't just think public organizations any large institution to innovate because I think large institutions can't innovate today and I'll tell you what I mean with that I'll be a little bit more specific because innovation is just a buzzword I think just like lean is is a bit of a buzzword at the moment so I'm going to talk a little bit about these two books but a lot about the new stuff that we've seen in companies what people are struggling with to help them kind of create growth again because from small to big growth is a challenge in particular when a lot of the emerging markets are saturated and we really need to come up with new stuff and that's what I'm trying to do as an entrepreneur usually when people introduce me as a consultant I cringe I think consultants these days have a really bad rep rightfully so because they should be more facilitators to bring out the ideas in the companies because people in the companies are the people who know what should be done if they had the right tools and processes and that's we're going to talk about because many companies in particular large institutions and maybe Norway as a country still are stuck in the turkey phenomenon you know what the turkey phenomenon is life looks great everything is perfect but you tend to forget or don't know that others have a different plan for you and I think disruption is real across the board I work with pharmaceutical companies with oil companies everything I haven't seen an industry yet that is protected from the turkey phenomenon okay and one popular example of course is blackberry they were at the top of the world or we could put Nokia and BAM over a few years it went down the drain and the same thing is happening right now with the pharmaceutical industry just to take one kind of as an opposition to the traditional tech industry or banking even worse then they say fintechs in tech who of you loves your bank that's the problem not FinTech technology it's about value propositions and business models okay so I think organizations have a hard time reinventing their business models and value propositions and what they don't realize is that these things expire faster than ever before and I like to say business models expire like a yogurt in the fridge my co-author says Eve says Alex this is good but at least with a yogurt you know the expiry date with business you don't so you know what you have to do you have to constantly innovate and I'd go even further than what we've heard this morning you don't just need to say it's gonna fail because it is going to fail you know how many startups actually make it to a real return something that grows four out of the hundred so if you don't have that kind of ratio in your institution from ten ideas one might give you a reasonable return if you're looking for a home run you're making a hundred billion dollars euros or whatever currency you want in revenues and you want 5% growth you need to invest in 100 so four will succeed I'll give you the stats this afternoon to create a little bit of suspense okay so an opposite to this is companies like Amazon okay Amazon Web service is just one example of what they've done to grow Amazon is the company that grew fastest from zero to a hundred billion dollars in revenues because they have a culture of innovation you cannot invent in pioneer if you cannot accept failure and Steve Jeff besos says in his annual report of 2015 I want Amazon to be the best place in the world to fail which CEO have you ever heard say that or public institution you do not get innovation without failure and lean won't prevent failure lean will make you more efficient and we'll see that if you want homeruns lean alone is not gonna do it you need to accept failure and that people say yeah but failure is not the goal learning is the goal for sure but without investing in many ideas you won't get the growth so it's your choice you want to be on the left on the right eight rhetorical question so we're gonna look at the leadership challenge business small stories a little bit of a warm-up and then I'm going to talk about competing on business models this is our kind of 50 minutes together does that work and then in the afternoon if you come back we're gonna talk about the groundbreaking stuff we're doing right now we're co-creating with three multinationals metrics to develop business small portfolio so it can give you a little bit of this already but I think if institutions from small to big actually don't create portfolios of business models mature businesses and emerging ideas they will not survive and yes hyperbole American I'm Swiss we don't do hyperbole or even more extreme than more extreme than the Norwegians but you need a portfolio a portfolio of new ideas of which many will fail is like evolution we need to play more broadly okay the organizational structures of the last century just don't work leadership challenge okay so most CEOs actually know that they're going to be disrupted and it keeps them awake at night yet what they do is not enough and it's not because they're not smart that's what Eric Risa this morning in this group that was coming together it's because they're under pressure from the stock market from activist investors to focus on the short term and here's where you know the Norwegians solve weather and you know your fund could actually play a gigantic role of bringing real innovation back to institutions since you are invested I think in four percent of all companies of the world which is insane because the problem today is if you look at the innovation processes and here I'll use an American expression and not a Swiss one the innovation processes and most companies still suck now you'll say are you talking about us not us I think people are trying they're actually trying a lot of you in the room are trying hard otherwise you wouldn't be here but what we need is leadership that goes beyond money and lip services a CEO who doesn't spend at least one to two days with innovation is not focused on the future and most CEOs look at their agenda you won't see one to two days focused on innovation existing customers investors processes business units etc etc we need to look at the future okay so I think the sound is here I'm not going to work so what I'm gonna do is I'm gonna draw something so we're gonna get this to work okay so you're gonna see my code great it's okay so the challenge in most companies in most institutions actually is we have two worlds we have the world of improve where you have existing business models and I'll just draw this business model canvas who have you has ever used the business small canvas hands up okay great many of you so here we're in a world of execution and improvement and the traditional kind of lean doing better what you already know how to do and this is great but the world that most companies are struggling with is in the invent world where it comes to ideas this is supposed to be an idea where it's all about that don't laugh come on it's all about the search process here we have linear processes here we have iterative processes and the problem is here failure is not an option rightfully so if you're managing a nuclear print plant nobody wants lean experimentation factories need to run can you make business plans over here remember the number I gave you four out of a hundred ideas actually make it big which means 96 ideas are not going to be breakthrough growth actually 4 out of 10 or growth four out of a hundred our breakthrough growth which means here we need different processes different culture a completely different way of working and that is the hard part that companies can't manage you basically need a dual culture a dual operating system as some people like to call it okay you need to be world-class at both lean here is fine here it's a different kind of lean where you will never be able to prevent failure if you really want breakthrough growth ok so just quickly here we talk efficiency innovation here we talk sustaining innovation making a new car model to replace an old one new BMW new Mercedes doesn't create breakthrough growth it just allows you to keep up over here you have real growth ok so when I say innovation I'm using it as a buzzword I should be more precise efficiency innovation sustaining innovation growth innovation and they all require a different mindset yes you can apply lean but creating new growth engines is not about this kind of lean innovation ok it's not even about this kind of lean innovation and it's not about what we always innovation yeah technology no it's about packaging these things in great value propositions that customers want and great business malls and I'm gonna focus on the business malls in this first session what did happen here that's kind of embarrassing oh okay that was not intended okay and what you need to actually do this is management innovation that's the hard part it's not just government organizations that are having a hard time it's every single company I've seen in the world that has a challenge with creating breakthrough growth okay and G has gone far I think they've done a great job together with Eric Ries but even they haven't cracked the code if there's one company I can say with confidence they cracked the code it's Amazon okay and we can all learn from them doesn't matter what industry were in if we're in the fishing industry you can copy their culture okay if you're in the oil industry you can copy their culture that's what it's about okay now I got to go a bit faster business models okay I think most of you put your hand up you know the business model canvas so I want you to take this as a refresher and then we're gonna do an exercise do you have this canvas okay so it's about who are my customers what value am i creating for customers how am i reaching my customers through which building blocks once I have customers what kind of relationship do I have is it automate it is it personal and then how do I make money and this is what I like to call the front stage and then over here we have the back stage everything I need to make this possible what are the assets I need the key resources what activities do I need to be world-class that which partners can leverage my business model and then I know the cost structure okay so nine building blocks every single business model from fishery to oil to banking whatever everybody has a business model but not everybody makes it explicit and not everybody what we're going to do together thinks about it hard enough to compete beyond products it's increasingly hard to just do technology and product innovation who has ever heard of GoPro hands up GoPro has a great product a great brand but their business model is a disaster and that's why they can't keep ahead of the competition and their stock price went down the drain because they didn't succeed in creating a superior business model which is what we're going to do together okay I want you to think of the business model canvas as a theater I can't show you the video because we didn't make that get the sound to work so I'm just gonna show you this drawing think of this side as the front stage like in a theatre everything that customers see it's like the staging that you've seen a theater everything in the backstage is what I need to make possible behind the curtain in my company assets activities processes partners to make the front stage possible and the front stage in the back stage result in ticket prizes so value that I capture and money that it costs me so this is an equation front stage requires back stage allows me to earn revenues produces costs and at the end business is super simple make more money than you spend right but doing that in a sustainable way requires a good understanding of business malls that's what we're going to do together so first warm-up example we are going to use Tesla as an example so you have some stickers great okay so you're gonna map out Tesla's business model listen to me first okay listen to me first so Tesla started in 2008 most of you might not even know that it was an Elon Musk it started Tesla this guy um Aberhart so we have this sports electric vehicle we'll start with the Model S the center and then we have a couple of things around this business model so he was replaced by Elon Musk does the business mall we know now we have connectivity right which is about with part of the value proposition we have fast charging stations around the u.s. in Norway when I say Tesla you know what I'm talking about is there many of them but have you ever thought of the business model selling them chute shopping malls they have manufacturing right Giga factory part of this came on later a little bit we have the power train the technology behind the electric vehicle that Elon Musk started make accessible to other people okay now your task is in five minutes to map out with the stickers you tear off the stickers and put them into the right box of the business model canvas you should take maybe five minutes the winning team that gets it right gets access to heaven okay let's go five minutes let's do this together okay this was a warm-up exercise with a little trap see if you could catch the trap see how good you were at business mall so far so basically we have the car and the connectivity and which we would want to know more about the value proposition we'd use a different tool for that that segment you know middle class upper middle class Americans with the higher income and we would start with the channels which are the direct channels the shopping malls Tesla comm okay direct access to customers which in the US was actually illegal another illegal a company like Airbnb and all these startups illegal okay then we have the love mark relationship so it's very emotional its direct okay and then we have of course the revenue stream so so far so good and I would hope most of you have it right who has it right so far that was the easy part okay now Jeff if you didn't get this right okay we went fast now here comes the little trick here well guess what free charging which it was until now and that is likely to change was or still is a value proposition they did it because they wanted to prevent the fear of people that they couldn't charge their car however it's also an interface to the customer like you know Mercedes doesn't have any gas stations BMW doesn't have any that costs a ton of money to do so that is a channel where Tesla interacts with customers on a regular basis so it clearly a channel who has that one right a lot less right so think hard of your business model what are the interaction points okay and this is a relatively straightforward simple business model then we have the resources here which are the assets I have and the brand is clearly an asset that they build up in lightning speed no other company has built a global brand so quickly some of you might say yeah but isn't that the value proposition it could be both but it's only when you zoom deeper into the value proposition that you'll you'll call the brand also part of the value proposition but you could put it in both but it's definitely an asset okay even account and start to put value on that and then we have the activities what are the key activities you need to perform so it was innovation now it's more and more production okay and that leads us to the costs remember front stage back stage resources and activities lead to costs and then they worked with partners in particular at the beginning other car companies to get off ground okay this is the business to consumer business model now you also had blue stickers because at the very beginning Tesla could say this is the second business model was licensing their powertrain to other car manufacturers and they got a fee for that and that was definitely not an emotional you know relationship that was a coopertition cooperation based relationship with competitors and they did that at the beginning to get the business off ground to learn but once the business was mature enough Tesla stopped this kind of cooperation so business malls evolved business malls are a living organism that evolved and actually they evolved faster than ever before and they actually die faster than ever before as well okay so this today is only the business to consumer what they then did is they evolved the business model again where Ellen musk acquired one of the other company's Solar City and they brought that into the business model you need to constantly think how your business mall is evolving I see millions literally millions of people using the business model canvas but they fill it out like a checklist what you really want to understand is what's your business model story is your business model story superior to the business models around you this is you could vocally call it a template but think hard about this story and continuously and I'm gonna help you in the next 30 minutes to think a lot more about that story okay so here we saw just a glimpse of how Tesla evolved we could do this for Amazon and we would have a whole portfolio of business models okay so if you look at Tesla last year you've seen they they launched the model the new model they pre-sold actually two years ago they salted started to pre-sell in one week over 350,000 cars that's amazing okay then if you look at the sales number of last year they outsold all other electric vehicles it's more interesting is that they think they're competing against BMW and Mercedes a lot more than these other companies but now Tesla doesn't have an innovation problem anymore what's their real problem they need to deliver when you need to deliver 500,000 cars actually this is not an innovation problem anymore this is a pure delivery problem okay so Tesla matured faster than any other company in the world from a world-class innovators startup kind of thing to now competing against the world's biggest car companies not just theoretically but they have to deliver so this dichotomy improve invent is extremely hard for large institutions but it's also hard for startups that evolve to large institutions you need to play both games it's called a dual culture okay so that's the business model canvas that allows you to tell this story of how you compete and we're going to zoom into that now a lot of people still were preoccupied with products so we said why don't we give them another tool so we created the value proposition can to zoom in which means of course you need a great value proposition and a great business model to succeed which was our last book but what I'm interested in is to address something with you that I still don't see enough companies really understanding how do you compete on superior business morals not just product and technology because that is potentially an ingredient doesn't have to be the Nintendo Wii out competed everybody else with a crappy product that was worse than every other console in the market but it's superior value proposition and superior business model have you seen what Nintendo did just now what did they launch Nintendo labo with cardboard and again they're out competing others because they think of the world differently Nintendo is a world-class innovator again now let's focus on competing on business malls and this is gonna be very fast you need to think in groups of two I'm going to get you to discuss seven times very quickly okay are you ready it's like going to the business model doctor I'm going to give you 21 examples and you have to find out what they have in common actually seven times three examples okay so let's start with the first business model design and I'm going to give you then another six and this will allow you to start competing on business models now I want you to discuss for 20 seconds with your seat neighbor what do these three institutions have in common iPhone iPod around Apple when they started Windows and marriage what do these three institutions have in common you have 20 seconds to figure it out let's go okay what do they have in common let me hear it high cost of leaving the relationship switching costs right switching costs okay now let's look at this this is what I call a business model mechanic think of it this way here's an example that nobody ever thought of as a business model play everybody thought it's a technology play what people didn't know is when Steve Jobs innocently said this is the first time we can put thousand songs into a pocket what he actually knew is that he's going to lock you in to his ecosystem which is clearly a switching cost business model play so the value proposition was thousand songs in a pocket sold to retail to the mass-market yes they needed technology innovation to make that possible which was the key resource they acquired some software and technology around that which would then allow them to log in people because once you have thousand songs in your pocket in your iPod iTunes it was super hard to switch to another echo system who have you copied all your music into your iPod iTunes back in the day who did it illegally they're less hands up they're okay then came Spotify in this and and the switching costs were gone but for a very long time Apple earned a ton of money on selling iPods again and again so people think ah but didn't they do it to sell music no they did it to lock you in and to sell iPods again and again because you wouldn't change the ecosystem that's what you call switching costs okay that's an incredibly interesting play next question you got 20 seconds what do Nespresso you know coffee pods machine press a button out comes a great espresso Salesforce the CRM system and a fitness chain like Planet Fitness or anything else what do these three institutions or companies have in common discuss for 20 seconds let's go okay so what did you come up with what do they have in common subscription I didn't have never subscribed to an espresso they were thinking about it they haven't done it so it's not subscription but we're in the right direction recurring recurring revenues not recurring costs what you really want is recurring costs for the customer that's correct yeah I tell you our Nespresso machine at the office and in our house is a really recurring cost ok so huh so what you want to think of in any business is recurring revenues so having transactional revenues is great but recurring revenues is cost of sales once and then getting money and again and again and again and obviously the traditional model is subscription like newspapers but then you know companies you know like rolls-royce they started creating recurring revenues around airplane engines and then GE took over so always think could I create recurring revenues in particular in a very transactional business so this seems like obvious but I don't see executives either re-examine re-examining their existing business model to come up with these things or when they design new business models think beyond the shiny product and technology and ask themselves how am I going to create a superior business model so the example here is Nespresso which is a wonderful example of a company that by accident in this case completely disrupted the coffee industry the hayek segment market and turned it into one with recurring revenue so what did they do with the machine in the pods they started selling the machines through retail getting households to buy the machine once the households had the machine in their household guess what they were acquired and when you wanted a coffee where did you have to go you had to go to Nespresso so Nespresso defended that with patents for a long time and then they would sell you the pots because if you wanted a coffee with that machine you only had one choice coming back to Nespresso which created here occurring revenues so think of it think of it this is a multi-billion dollar business model play before you could buy coffee switch the brand the next day switch the brand the next day that's why there was so much marketing then they turned it into a business where you were locked in and they defended that with patents so they turned a transactional industry into one with recurring revenues until the patents expired and everybody could make pots now they forgot to reinvent themselves because innovation does not just happen once business model innovation once a decade is not enough it's exactly what they forgot now sounds simple to say hey they forgot it they were so preoccupied with growth the numbers looked so great when you're doing well it's hard to think of the future but success is actually the basis for future failure because you get arrogant and you're so focused on getting another squeezing another dime out of your success that you kill everything that looks differently now I think they're back on path and doing some new stuff now let's look at this okay you can say subscription no it doesn't turn out that way if we have these three companies or institutions Financial Times any kind of travel agency any kind of travel agency and Dell back in the day this is a hard one right discuss for 20 seconds what do they have in common let's go who can figure it out if you get this one you're good okay who figured it out who figured it out this is a hard one sorry can you repeat selling okay this was a hard one earning revenues before you actually spend okay so traditionally you know with hard core physical stuff but even with software you have to spend a lot before you earn now let's look at this one pretty interesting before Dell came into the market we're gonna look at Dell which company did they drop disrupt many like Compaq anybody still remember compact right it was a company to one day okay so the business model of PC manufacturers looked like this okay so you also need to understand how did some business models disrupt markets once you start to understand that you get good at business small innovation so pcs were manufactured which mean we had activities we had also of course you know factories etc would which means we had a manufacturing cost then pcs were shipped either through a sales force to retail or through other channels but we were selling and the sales cycle was pretty long and then we would maybe earn some money if the computer sold and if they didn't sell that was completely wasted but we needed to invest a lot of money into inventory before selling then comes Dell and changes the model and they say we're going to attack this one here we're actually going to do this we're gonna take computers and say we're not gonna build first we're going to sell first you go to a website so a lot of people first say oh you know direct what direct sales is just a channel the business mult play here was actually not just selling through a direct channel but completely changing the supply chain behind in the backstage so they would sell computers through direct sales to mass-market you could call it that way even if it was b2b ok mass-market they would earn money they would have the money in the back ok in the back and only then would they start to manufacture and they made just-in-time manufacturing supply chain excellence they made that really big because they were really good at it so they would only have the costs a lot later so in their glory days Dell was earning money on interest from money in the bank from customers before playing so paying suppliers which is not very fair right but the business model is just brilliant okay and what happens to inventory depreciation here goes completely away okay so pretty spectacular business model change now looking back this stuff always looks easy but let me remind you of two things you want to invest in teams in your organization or in startups that try this out and then the second thing to remind you is that many will fail that's why you need to invest in ten and if you're a large corporation in 200 because only four are going to outgrow everybody else on a substantial basis again I'll show you the stats a bit later on okay so what looks obvious looking back is not so obvious when you do it even Lean Startup approaches won't prevent failure they will make more efficient and faster failure which is great because failing fast is what innovation today is about failing fast and cheaply next one business mom mechanic number four Skype uber in Netflix I don't think I have to introduce any of these companies who have used ever used Skype okay who of you has ever used Netflix uber okay so these three companies what do they have in common let's go 20 seconds see if you can figure it out okay let's see let's see who figured it out difficult common denominator here there's one aspect that they have in common but they really changed something what's different compared to their competitors think of it that way their traditional competitors platforms kind of channels see you're not yet thinking business mile platform maybe channels now what is really different from their traditional incumbent competitors no assets okay that's one aspect of it what's really interesting about it is that they have a game-changing cost structure and the assets is actually part of that right so you could argue both ways they have a game-changing con structure in this case because they have no assets but you'll see increasingly in the world business models coming into a market with a completely different cost structure and they will destroy industries because they compete with a different business model the example I'm gonna use here is Skype because when the instrument freeze started out they actually had a technology but with the technology they used it in a different market remember Kazaa kind of illegal so they sold that to the Australian so students don't care about illegal so even the Swedes kind of do so they came up with this business model that would disrupt the telecom industry so the telecom industry back in the day looked like this you could make calls through the telecom operators physical channels which means the network and the sales channels to a local market local market meaning anywhere where the telecom operator had a network okay and they would sell minutes or a fixed fee whatever then comes Skype and says we're gonna attack this they need an infrastructure to offer a service okay Skype came into the market to attack this they said with peer-to-peer technology that we tested in a different market in file-sharing we can actually disrupt the telecom industry and Janos fries had a history of the telecom industry so his vision was to offer calls for free I'd say this is free because we're using technology that doesn't require Network voice-over-ip okay so they would sell calls for free if you want do the internet to users globally because they use the internet as a platform so it's all free okay they could do that because Skype was using the Internet the existing infrastructure who pays for the Internet in this business model not Skype it's not a cost in their backstage it's the user so it's basically free for Skype so what did Skype back then and still today now that they're owned by Microsoft where do they invest the money if not in infrastructure software right somebody said software Skype did not have a network they were spending heavily on software development in that you know Nordics actually so this is a software company with the economics of a software company competing against telecom operators and destroying the pricing so we're just looking at a fraction of skypes business and all these many of you will say yeah but they never earn money well it turns out they did learn a billion dollars when the numbers were still public okay slightly different than the initial vision but what I want you to understand is that their business malls out there that are going to disrupt industries with a completely different way of working so if you've grown up in an industry you've known the business model of your industry be sure it's going to look different in five to ten years and for most senior executives this is a very hard thing to understand because they've lived with an existing business model for their entire career but research today shows there's some reports out there from McKinsey and Bain that show that it's increasingly difficult to be a CEO and manage the same business model because they're expiring all the time that's why I'm going to talk about business model portfolios in the afternoon because your business model will inevitably expire new will be disrupted in one way or another so just let's with it and change your institutions and get you know go ahead or die if you want it's your choice number five what do these three business models have in common Red Hat Linux which is a multi-billion dollar company that built a company based on freely available open source software Linux IKEA which you all know and Facebook which you all know what do these three have in common twenty seconds let's go okay okay who figured it out who figured it out the platform is like a catch-all answer it just say platform you might be right once okay you build your own stuff kills in that direction but not you as a company who builds this stuff here they're customers right or others because in the case of Red Hat Linux it's not the customers it's just other people so what other brilliant business model I mean this is the most brilliant thing get others to do the work why would you not think of that right and then people say yeah but that's just for the digital world like Facebook well turns out ikea gets a lot of students and young parents around the world to do the work and they love it okay kind of okay so the one I want I want you to think of his Facebook okay because it will also tell you why some of these platform models have insane valuations because in some cases it's actually justified the case of Facebook it was because Facebook is the value proposition here is free you know people come to Facebook for their so-called friends okay that's users globally we don't go for the platform we go for the content right so Facebook needs to be sure that the content here and I can use this feature good changing friend content isn't is a cool feature the change in content is really important but they don't change the content its users globally okay and other users globally well it's their free workforce so Facebook has one point eight billion people working for them for free so if you use Facebook you're turning a couple of those Silicon Valley people into billionaires because you work for them for free just like some of you work for free for IKEA and developers work for free to create an open-source software platform on which others could build a company so I don't think it's completely abstract in every industry to at least reflect on how could we get others to do the work and integrate them into our ecosystem okay very important okay second last allow me just to keep in Swiss time what do a are on Aaron bebe Airbnb and McDonald's have in common a RM is a company that designs microchips in particular for mobile okay what do air a RM Airbnb and McDonald's have in common 20 seconds let's go are you becoming business mall experts hey thinking business models okay so what these three have in common and this is a reflection that I see in particular senior executives don't always make when we're in these business model brainstorming workshops people don't think about scalability how scalable is your new business model so if we take this diners club first credit card this is how it worked so this bunch of smart people said we're going to offer people here over here sales people in New York credits in several restaurants ok sales people in New York they could go have lunch with their customers they would pay a three dollar annual fee now diners club would may have to make sure that they had a database like a lot of restaurants that wouldn't would use the credit card so they had a value proposition to restaurants which was access to clients and loyalty and the restaurants would say that is amazing we're gonna take that we're gonna pay you seven percent transaction cut for every single purchase who does the work in this business model the restaurants and the salespeople once they have the platform in place so this is a really interesting business model MasterCard is one of the biggest the most interesting companies I work with and they saw this 7% like they were going nuts this is business mall design is obviously also a platform model the last one I'm going to give you so we stay in time what do LinkedIn Nintendo switch or for that purpose also PlayStation for whatever an apple with the iPhone have in common they all compete on business models they all have a business model with moats around them they're not competing on technology so you could say yeah iPhone good technology bad technology it doesn't actually matter because what protects them is the business model of course they need to stay ahead of the game but they don't have to be the best when it comes to the technology because if you look at this here what's really protecting Apple is they have this ecosystem around iOS okay they have over a billion users using iOS coming for the phones that technology and so on but that allows them to kind of sell this this huge number of users of people who are willing to spend to attract app developers so the app developers make the apps which on the other hand attract the customers again it's this app ecosystem that is hard to disrupt you could come up with a great phone this you can't do overnight it's practically impossible that's why you have two operating systems in the world so today that is worth twenty six billion in 2017 26 billion to app developers so take this last sheet and I'm gonna finish with this if you take you all had one of these up here and that should have it by side on some sheets otherwise yeah here so when you have a business use this to assess your business model are you competing beyond product and price when you design a business model use this kind of stuff to ask yourself am I really competing on business models if you're competing on products and Tyco technology alone good luck okay your your risk think of competing on business models I'll see you again later on to talk about a let's go beyond this we're gonna talk about competing and becoming invincible with the business small portfolio I hope you learned something thank you very much [Applause]

Channel: Nordic Business Forum

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Keywords: nbf, nordic, business, forum, nordic business forum, Personal development, Listenable, public speaking, seminars

Id: kIxs_BY6r6I

Length: 50min 41sec (3041 seconds)

Published: Mon May 07 2018