Tag Archive | business model

Advice for entrepreneurs: Is you business disruptive, adaptive and scalable?

Nov9
Screenshot from Youtube

John Lee, the CEO of Wealth Dragons (Screenshot from Youtube)

At the Lifestyle Business Convention in London, co-founder and CEO of Wealth Dragons, John Lee gave a talk on “How to start a business and become an entrepreneur”. One of his topics was Why do 50 percent of all businesses fail in the first year?. The most important aspect for him was that these businesses all have the wrong business model.

How to pick the right business model?

According to John Lee, a potentially successful new business should be disruptive and adaptive.

– When you start a new business, it’s got to disrupt the market. When you look at Airbnb, it is disrupting the hotel market, Lee said.

– It’s also not the smartest nor the intelligent species that survives. It’s the most adaptive.

As an example he gave the deal which the then DVD-by-mail rental company Netflix tried to make with Blockbuster with the purpose of starting to stream videos online. Blockbuster rejected the deal since “no one will stream videos on their computer”. Netflix ended up revolutionizing the industry.

Lee also pointed out that the scalability of the business is very important. Your business model has to be scalable in order to create growth and value to the customer.

Advice to new entrepreneurs:

  1. Base your business model on your personality

Lee talked about the importance of the business model regarding your personality type as an entrepreneur. For example, if you are not social, you shouldn’t base your business model on service that requires you to be involved in meeting people. If you don’t enjoy uncertainty, don’t choose a market that is notoriously volatile. Lee also adviced all company founders not to hire someone who is like them. You should hire someone who thinks differently than you and challeneges you everyday.

Do the Humanmetric test to find out your personality!

  1. Network

Never be afraid to ask: has it been proven, who is your competition, who is your audience and what are the margins? Lee emphasized the importance of networking: if you are the smartest person in your network, you are going to fail. His advice was not to reinvent the wheel, but find someone who’s got the right model already and ask for their help and mentoring.

  1. Stand on the shoulders of giants

One of the most important advice Lee gave is for everyone to find a mentor. He described how early in his career, he made an effort to find established  entrepreneurs in order to pick their brain. But you shouldn’t limit yourself to only people who work in the same industry or market. Find any successful person and ask them these questions:

  1. What do they do daily?
  2. What are their thought processes?
  3. What do they eat?
  4. What do they read?
  5. What mistakes did they make?
  6. How do they overcome challenges?
  7. How did they get started?
  8. What did they learn?
  9. What ways did they find to accelerate the process?
  10. What AHA moments did they have?
  11. What keeps them going?

 

Text: Leena Salo

Wrapping up the “New Service Development and innovative service systems” course

Dec30

During this fall, we have been introduced to various business related topics. In the “New Service Development and innovative services systems” course, we have learned the basics of blueprinting and how to create a business model canvas. Course objectives include; students can create a plan for developing a service concept and also evaluate and improve an organisation’s service development process. Each of us had prepared a blueprint and a canvas for one service and on thursday 12th of December we gathered together to present our assignments to the class and to workshop our ideas further together.

In the morning we had some extra topics in the schedule. First we got introduced to our upcoming final thesis and got a little pre-assignment for the first official thesis workshop in January. Then we had a presentation of the Service Design Global Conference 2013, Our fellow student Katrin Mathis attended the conference and presented her key findings to the rest of the class. Accompanied with comments from another attender, our fellow student Itziar Pobes, the rest of the group got good insights into the event. Katrin’s excellent blog post about the SDN conference can be found here.

The Blueprints and canvases

For our blueprint and canvas -presentations, we were divided into smaller groups. Each student presented his/her project to the group, and together each group chose one project to be developed further in the afternoon workshop. I presented my fictional plan for e-commerce and retail and my idea of the personalised e-shop customer experience was chosen for further development with a help of CoCo tool kit.

CoCo Toolkit

CoCo tool kit is created in co-operation between Laurea University of Applied Sciences and the University of Cambridge. It was a parallel project to VTTs (Technical Research Centre of Finland) ServChange project. Authors include: Krista Keränen, Bernhard Dusch and Katri Ojasalo. We got a special introduction to the topic, since one of the authors Katri Ojasalo is also our teacher on this course.

The tool kit is a collection of five tools and a workbook. And it is designed to help businesses in their challenges in co-creation activities. You can read more about the tool kit here.

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On the left: The Co-creation workbook found in the box. On the right: CoCo author, our teacher Katri Ojasalo (on the left side), presenting tools and toolkit to our group. Antti Kytö and Nanda Kumar (on the right side) are listening.

Re-inventing Retail and other presentations

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