MANAGEMENT INNOVATION
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Osterwalder and Pigneur’s businessmodel canvas provides a framework for sketching out existing and newbusiness models,with the help of post-it notes
the product innovation – that’s the visible part – but at every stage of successful product innovation they also change the busi- ness model.” Another example he particularly likes is Nestlé’s coffee busi-
ness. “Nespresso is a business model innovation that is impressive because they get us to pay five to six times more for coffee.Why? Because as a product in the centre that works re- ally well. But they also figured out a business model.” It’s interesting, he says, that Nestlé’s Dolce Gusto is based on
a different business model. “So they’re actually building a port- folio of different business models – Nescafé, Nespresso, Dolce Gusto – they all have different business models. So, similar to Apple, they moved from a product portfolio to more of a busi- nessmodel portfolio. Product is still a part, but it’s just one com- ponent.” At themoment,Osterwalder is busy travelling theworld, giv-
ing talks andworkshops and providing consultancy. In theweek before arriving in Dublin, he has been speaking inMoscow and Rio de Janeiro. This kind of schedule is for the short-term, however. “What
I’mreally interested in doing is creating software that supports the business model innovation. In aworkshop,weworkwith 50 peoplewith canvases and post-its.But it’s not that easy to throw numbers into this. Once these people split up, there’s no way to collaborate in an efficient way on the things they’ve created. Now I’ve created a software company with two other co- founders andwe’re building software that’s supporting business model innovation process.” He thinks they’ll have something substantial in five years’
time that can be sold to the likes of GE and Procter & Gamble. In the meantime, they’ve developed an iPad app to play around with the tool. “But we’re not selling this to companies,” he stresses. “It’s something entrepreneurs or consultants use. You
STARTEDIN2008, the book –whichOsterwalder co-wrotewith DrYves Pigneur –was self-published the following year andwas sold toWiley in 2010. Since then, 200,000 copies ofBusinessModel Generationhave been sold and it’s been published in 22 languages. Interestingly, the authors decided they couldn’t
crediblywrite a book on this subjectwithout having an innovative businessmodel. So, they launched the Hub, an online platformto share theirwritings at the very start of the
project.Anyonewhowas interested in the topic could join theHub for an ini- tial fee of US$24,whichwas gradually increased to US$243 to keep the platformexclusive. Themoney was used to finance production of the book. The 470 peoplewho joined the platformcontributed ideas, examples and critical comments to themanuscript. All are named and credited as co-creators in the book.
can quickly prototype an idea. If we have a business idea, in 15 minutes we can get it all together without opening a spread- sheet.” He says the idea of the app, like the book, is to democratise
the topic to a certain extent. “With business models you think, ‘Oh, that’s for business people’.Butwhatwe’re seeing is that be- cause this book is so visual, a lot of peoplewho don’t usually read business books are starting.We’re getting comments from ar- chitects and designers saying it’s their first business book,which is great.We’re trying to do the same with these tools.”
Issue 3 Autumn/Winter 2011 INNOVATION IRELAND REVIEW 65
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