INFO: N. Erkamp \ +31651881549

Business experimentProcess tool

Nils Erkamp – M +31651881549

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Why we do business experiments

• New value innovations starts through (local) cooperation of stakeholders (supply <> demand)

• Scale-up on European scale – other parties and countries can learn– Product / service improvement– Better, faster process

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Idea generation

• A collaborative business project starts with 3 things come together:– An opportunity in the market to create value

– An idea on how to deliver that value

– And people that are willing to commit time and money to realize the idea and harvest the opportunity

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A collaborative process

• Bringing the people together to realise the idea follows a number of logical steps, designed to get things done as effective as possible

• New business creation seldom goes as planned: – Learn, be flexible to adjust the plan, problems are often a

blessing in disguise that demand a better solution – Each partner has its own interest and at some moment in

time you need to come to an agreement that is win-win– You may need a few iterations before getting there

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High rewards

• It’s not easy and initially slower than when you do things on your own

• That changes when partners use each parties competences in the best way

• But, if you succeed …– You create a business that would never have been

possible without collaboration (1 + 1 > 2)– You create a business that is hard to copy

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The templates

• The following slides first describe the high-level process

• Then for each step templates are available with the key questions that need to be answered

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Business experiment process

Analysis of WP2 and WP3

Brainstorm at clusters

WS1: define product &

valueWS2: business

modelWS3: financial

model PROJECT

7

Opportunities IdeasProduct,

service, value and value

chain

Business model

Financial model;

commitment to project plan

• Process steps

• Results

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Tools

Analysis of WP2 and WP3

Brainstorm at clusters

WS1: define product &

valueWS2: business

modelWS3: financial

model PROJECT

8

T1 T2TK2,4,5

T3-6TK5,6,7

T7-9TK1,2,4,7

T10-11TK4,8,9 TK3,10

• Process steps

• Tools (topics see next slide)

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Open innovation toolkit

1. Relationships and cohesion2. Open communication and dialogues3. Commitment4. Trust and safety5. Climate for innovation and creativity6. Clear strategy and goals for collaboration7. Selection of relevant and appropriate partners8. Structure and governance for collaboration9. Contractual arrangements10. Evaluation of process and results

Microsoft Word Document

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Contracts – a point of attention

• Contracts, like a Non-Disclosure Agreement, have pro’s and con’s– More certainty on commitment: people with the right

authority need to sign so it can not be an individual employees enthusiasm, but the organization needs to buy in

– Although it is very difficult to exercise the rights legally, peer/social pressure (esp. in a multi-party agreement) can work well

– Legal processes can cost a lot of time/energy; it can change the atmosphere from co-operation to adversaries. Always use mutual agreements (same rules apply to all) to avoid this

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Part 1

• Shaping the idea

11

Opportunities IdeasProduct,

service, value and value

chain

Business model

Financial model;

commitment to project plan

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Template 1: OPPORTUNITIESIdea nameDescribe the opportunity ?How will it bring value ?Where would it be applied ?What’s the alternative today ?

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Template 2: BUSINESS IDEAIdea nameWhat is the product / service ?Who is the customer / buyer ?What is the value to this customer / buyer ?Which value chain parties are interested (+ indicate business scope)

13

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Jobs-to-be-done

(core value)

Customer segment

What does he/she THINK & FEEL

What does he/she SAY & DO?

Wh

at do

es h

e/she S

EE

?

Wh

at d

oe

s h

e/sh

e H

EA

R?

Metadata

Empathizing with the Customer

Gains & delights

Pains & worries

Template 3: Customer description

1234

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Gains & delights(desires)

Pains & worries

Pain relieving

Gain creating

(how to fulfilldesires)

Value proposition(unique value)

Jobs-to-be-done

(core value)

Customer segment

Products& services

Template 4: Product, service and value

123

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Template 5: ENRICHED IDEAIdea nameDescribe the product or service

(+ add features in template 5)

What is the value proposition ?

(+ add main points in template 5)

What is a customer willing to pay ?What is the market & segment size ?

In quantities and value

What are competitors or alternatives ?

16

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Template 6: value chain – market description1) Specification & sales process

2) Production, physical distribution, installation phase

3) Operational & usage phase

Complementing products & services

P1

P2

P3

Customer

P1

P2

Customer

User

P1

P2

P3

Customer

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Part 2

• Business model: a description how we are going to achieve our goals– Revenues– What competencies are needed; who does what– Costs and investments

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Opportunities IdeasProduct,

service, value and value

chain

Business model

Financial model;

commitment to project plan

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Template 7: Business Model CanvasPartners Network(outside

consortium)

Key Activities

Key Resources

Value proposition

Costs + investments - subsidies Revenues

Customer segment

BM

1

2

3

4

56

7

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Template 8: BM consortium conclusionsType Potential

partnerWhat core competence do we not have in the team ?

IN consortium

Complementary partners (includes current consortium partners that do not have a crucial role)

OUTSIDE consortium

Are there tasks that more than 1 party can do ?

Decide who does what asap !

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Template 9: Project leadershipIdea nameWho is in the team ? Who takes the lead ?

What are the open questions ?

What are the key risks ?

Next actions e.g.-Each partner to agree results within his own organization-Answer open questions-Address key risks-Get right partners to join

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Part 3: Financials & next steps• Financials: how is money going to be invested,

spend and earned. How will risks and rewards be shared ?– Prepare open book estimation by all partners– Bring together and discuss– Agree on joint approach

22

Opportunities IdeasProduct,

service, value and value

chain

Business model

Financial model;

commitment to project plan

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Template 10: Financial discussion

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• Each partner prepares partner finances• The consortium discusses and agrees on project

Partner file

Project file

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Sanity check

• Customer perspective: is it also for the buyer a good deal ?– Cost of ownership– Value of ownership

• So far by means of a subjective value bonus

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Cost-of-ownership

Parameters Result

Installation design Number of units

Installation cost Unit price Investment

Energy Burning hours kWh price Average power / unit

Power consumptionEnergy/CO2 cost

Maintenance Replacement cycle

Cleaning / checking cycle

End-of-life time

Maintenance cost

Value creation Re-usage value Societal value (% or €)

To be prepared by the partner who is in closest contact with the end customers

Collect inputs on each of the parameters below on the new proposition and on the existing alternative.Then calculate through with the TCO model

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Template 11: NEXT STEPSTopic WhoCheck agreements with home organization

Each partner

Consortium and other contractual agreements

Create steering team

Agree project team and project manager

Steering team

Assemble team and plan project kick-off meeting

Project manager

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