Alan Smith, designer of Business Model Generation
, and myself are currently working on a playful, but useful toolkit for business model innovation. One of the things we came up with is a little quiz with a deck of cards that helps you to quick-start your business model thinking.
This is how it works: On a card you have an extremely short story/caselet of a business that has a business model issue. On the flipside you have the answer outlining what they've done.
Example (source: Henry Chesbrough, 2003):
Q: In the late 50s Chester Carlson developed the first modern-day photocopying machine at a company called Haloid. The copier could make thousands of copies per day rather than 15-30 as with current machines installed in companies. However, at an estimated production cost of $2'000 the new photocopiers were also about 7x more expensive to make and thus practically impossible to sell to customers. What should Haloid do with this new technology?
A: Haloid brough the photocopier to market with a new business model. Customers could lease the machines for $95/ month and get an allowance of 2000 free copies, but pay 4 cents each for additional copies. As a result the machines were affordable for customers, who started making 2'000 copies per day. Haloid, which would later become Xerox, experienced revenue growth of 41% compounded for next 20 years, starting with this initial photocopier called Xerox 914.
What do you think of such a question/answer quiz? Do you like it? Would you play it?
More importantly: Help us generate and list such examples
with question/answer caselets. What are the Q/A examples you can think of that we should integrate. We really need your help to generate as many cards as possible!
Mobilize all your business model (innovation) knowledge and pitch in your examples... THANKS!