Digital Business Models - clsbe. ?· Understand the process of digital business model innovation (for…
2018/2019 Digital Business Models Dr. Ren Bohnsack Assistant Professor of Strategy and Innovation Catlica Lisbon School of Business & Economics www.smartcityinnovationlab.com www.smartbusinessmodeler.com https://www.linkedin.com/in/renebohnsack/ Office: 5.322A Email: firstname.lastname@example.org Office hours: tba Course description In todays business world the ability to develop digital business models is a key capability to maintain long-term competitiveness. Considering more dynamic and complex markets, building only on product and process innovation is not sufficient anymore. Business model innovation is the essential element to create unique customer value and to adapt to fast changing environments. Business model innovation challenges the status quo of existing ways of creating and capturing value. This course provides hands-on learning on what its like to create innovative business models that actually work. The course has been developed to provide the theoretical basis as well as the methodological tools to create innovative business models for start-ups, SMEs or corporations. Students will apply the knowledge at the example of a self-chosen idea and go through the whole cycle of idea generation, business model design, value proposition testing, organizational implementation, financing and pitching. Objectives In this course on digital business model innovation the goal is to develop a business model which challenges the traditional logic of value creation and value capture by considering the ecosystem and multi-layered architecture of digital innovations! The goal is not a PowerPoint slide deck for a VC presentation. Instead you will study the industry and your clients, you will work in a team, you will learn how to use the online tool SmartBusinessModeler and all of it will result in a real-world tested business model that has the potential to change the industry. At the end of this course, students will: Understand the process of digital business model innovation (for a product, service or initiative) within the larger context of organization-wide innovation and be able to develop skills in innovation and business planning for entrepreneurial ventures Learn how to use a stakeholder approach to business model innovation to define new business opportunities and create shared value Learn how to integrate customer knowledge and operational capabilities into the design and development process. Learn and apply concepts and tools appropriate for the design and development of innovative business models in an iterative way Have developed an implementation ready business model and value proposition Teaching format This class has in-class and online units, and is primarily team based. In online units you will get the necessary theory to develop digital business models, in class you will learn methodologies and apply the frameworks to your ideas. You will work on optimizing each step in the business model innovation journey for your product. Important ground rules Seminars and lectures start and finish on time Use name card in all classes No food in class, drink ok Professional behavior is expected at all time, e.g. students come prepared to class, no use of laptops to surf the internet or email, no use of mobile phone devices in class, respect for each individual, Wear professional attire for your final presentation Required readings The readings are provided in class. Assessment The course assessment is as follows: Tests: 40% Group project: 30% Group business plan: 20% Class participation: 10% All assignments are to be done in English. Tests (40%) You will take small in-class tests and a final test (Segunda Frequncia) which takes place between December 14th and January 14th. It lasts 2 hours. It consists of a case study, questions on lectures, and multiple choice questions. More details will be given during the first week of the class. If a student gets a final pre-exam grade (case assignment and group presentation grades) below 7, s/he is automatically excluded. Students with a final mark of 8 or 9 have to take the exam. Melhoria de nota: Students who decide to take the exam to improve their mark are not allowed to desist during the exam. The exam mark replaces the final mark. The new mark cannot be more than 2 value points above the final mark. Group project (30%) The team project is intended to replicate the entire design and development process of business model innovation at the example of a product, service or initiative. You will form a 3-5 person team. Please take the time to put together a team that will work together well in terms of schedules, work places, and different skills. Across the course and based on a structured approach, as a team you will identify an opportunity for user-focused innovation, gather ethnographic data, brainstorm ideas and translate the identified customer needs into a product or service concept and identify operational capabilities to develop and launch your product or services. You will refine and validate the concept by building a prototype (as realistic a mock-up or service blueprint as you can get) and conducting tests with the target users. At key milestones you will turn in interim deliverables, and receive feedback. At the end of the course you will give a pitch. Project business plan (20%) In addition to the pitch you have to submit a draft of the business plan for your idea, which should include the following sections: executive summary (describing the business opportunity), introduction (explaining the background, and describing the unmet needs), market (brief introduction to the current solutions and competitors), the offering (describing how it works and how it is protected), business model (describing all the BM components), team (outlining the team and how it functions), financing planning (outlining the financing strategy)? , next steps (describing the next steps and milestones in terms of operation). Individual participation (10%) is individual participation and attendance. Evaluation: Grade 18: Attending each class and presentations, being prepared, and actively participating. Comments indicate a thorough understanding of the material. Comments go beyond repeating what was read but show analysis and synthesis of available information, providing some insights. Focus is on quality contributions, not quantity. Grade 15: Attending class and presentations, being prepared, and actively participating. Comments indicate some understanding of the assigned readings. Grade 12: Attending class and presentations, being prepared but not participating, of, if participating not demonstrating understanding of the assigned reading Grade 9: Attending class and presentations, but not being prepared. Course outline (tbc) Session Date / Room Online Unit / In-Class Goals Deliverables 1 tba Introduction to Digital Business Models - Understand the specifics of business modelling for digital business models - Learn about the key concepts in relation to digital business modelling - Learn how to identify new business opportunities based on a stakeholder approach to business modelling In class: form 3-5 person groups to work in to develop a business model throughout the course In class: work in groups on several exercises to come up with a business idea Homework: create a Value Flow Model for the identified business idea to discover the potential value flows between different stakeholders 2 tba Designing business models -Develop the understanding of business model components and the process of BM development -Learn about BM patterns and archetypes, In class: do an exercise on business model archetypes for the selected business idea to facilitate further ideation and describe the first draft business model(s) based on the ideas derived from the previous exercise Homework: formulate the problem the team is trying to solve with the identified business idea 3 tba Designing value propositions -Learn about the Customer Development Process (by Steve Blank) used to organize and implement the search for the value proposition and business model -Learn how to test the relevance of the identified problem for consumers as well as the solution to the problem In class: -do an experiment to test the relevance of the identified problem that consumers are facing Homework:-update the value proposition if needed based on the findings from the experiment and design a basic MVP/prototype to test the solution to the identified problem 4 tba Implementing business models -Develop a complete business model -Learn how to challenge the business model In class: continue developing the business model by elaborating on the rest of BM components 5 tba Business models and strategy -Learn about business models in relations to strategy and its importance -Learn about business plan development 6 tba Business model pitch session -Present the developed business model and receive peer feedback on it In class: business model presentation Lecturer Ren Bohnsack Ren Bohnsack is Assistant Professor of Strategy and Innovation at Catlica-Lisbon and Visiting Scholar at MIT designX. He studies the commercialization of technologies and how business models can accelerate this process. Dr. Bohnsack has published his research in the best international innovation and management journals such as Research Policy, Journal of Business Venturing, Journal of Product Innovation Management, California Management Review, or Technovation. Ren received the Best Paper Award in Sustainable Entrepreneurship in 2016, the 3rd price for the best innovation management paper 2013, and won the Science Park New Idea Competition in 2011. He obtained his doctorate from the University of Amsterdam and holds an MLitt in International Business (distinction) from the University of St. Andrews, School of Management, Scotland. Furthermore, Ren is founder and director of the Smart City Innovation Lab (SCIL) at CLSBE, a multi-disciplinary research group working on cutting-edge knowledge related to improving wellbeing in urban areas via business models, sustainable technologies and digital transformation. Under his guidance, currently seven researchers work on two major European R&D projects in which SCIL is the lead partner for business modelling. SCIL also runs the platform www.smartbusinessmodeler.com on which users can create disruptive business models. Next to the academic accomplishments, Ren successfully founded several start-ups, for instance an eHealth start-up in Germany, an online platform for social-car-sharing in the Netherlands (discontinued) or an online service for flight refunds. He also consults internationally firms on their innovation strategies. Prior to his academic and entrepreneurial endeavors, Dr. Bohnsack worked as a strategic controller for the GEA Group AG. Ren likes surfing, music production and plays saxophone.