AdWords Workout
Global Innovation Management
Designing your Business Canvas
Co-opetitive Landscape (Ch. 5,6,8)
Attribute Map for
Product or Service
(Ch. 3)
Consumption Chain to Market and
Deliver to Customer Segment (Ch.3)
Business Model & Morphological Boxes (Ch.4); Capabilities vs. Markets Trade-off (Ch.5)
Global Innovation Management
Work on your Semester Project
• Start from
– Do Not
– Do Not
– Do Not
a clean sheet of paper
Choose a Product or Service!
Talk about Product or Service!
Think about Product or Service!
– Until you have started on Workout #4
– A product or service should not be mentioned in
workouts #1, #2 and #3
Global Innovation Management
Workout Objectives
•
Framing Challenge (What is the Real Business?)
– Potential customer set & e-Marketing business opportunity,
– Features / attributes that will be profitable with these customers
– Channels (consumption chain & conversion cone) appropriate for these customers
•
Venture Capital Challenge (What is the Business Value?)
– What is your business worth, and why?
– You compete in two markets: consumer & financial
– Consumers look for narrative
– Financiers want to tie that narrative to numbers:
• activities, operations and products?
• competitive forces outside management control
• Net Present Value of future activities
•
Communication Challenge (Why should I listen to you or give you money?)
– ‘Lead in’ which will ‘hook’ your listener (the elevator pitch)
– Consider most important features of business model
– Fast & fulfilling (the 25 second pitch)
Global Innovation Management
Workout #1: Customer
•
Identify your customer
– What are their ‘needs’ When? How?
• Distill this information into a set of Features
– And locate them on a feature map
– Why do they purchase?
• Do Not Mention any Product or Service!
Global Innovation Management
Workout #1: Identify the 3 most
important features
•
•
Specify the particular customer choices you are offering
Identify the discriminators and energizers
•
•
What differentiates you from competitors’ in the customer’s
minds?
List the three features that are important to the target
customer, and rank them from most to least important.
Basic
Discriminator
Energizer
Positive
Nonnegotiable
Differentiator
Exciter
Negative
Tolerable
Dissatisfier
Enrager
Neutral
So What?
Parallel
Global Innovation Management
Workout #2: Channels
• Identify potential channels for the feature set
– Where do customers purchase? Why?
– What is the conversion rate at each step?
– Can you improve conversion rate through proper
management of each step? How?
– Do Not Mention any Product or Service!
Global Innovation Management
•
Determine the main steps in
consumption
•
Each step on the consumption
chain has an attribute map
•
You should only list the 3 or 4
most important steps
•
These will determine whether the
potential customer proceeds to
the next step (good)
–
Or leaves the consumption
process (not good)
Leave
Workout #3: Channels
Continue
Global Innovation Management
Workout #3: Market Entrance
• What are the major competitive
forces molding managerial
strategy which add to, or take
away from ‘Value’?
• What ‘levers’ can management
pull to influence customers’
perceived value added?
• What are the major technologies
relevant to managerial strategy
which add to, or take away from
‘Value’?
– Where does the Internet fit in?
– Do Not Mention any Product
or Service!
Global Innovation Management
Workout #3: Competitors?
• State how you categorize potential competetors
• Usually because of their market power, the coreness of the
product to their capabilities, and their interest in this market
Capacity to produce Capacity to produce
is High
is Low
Commitment to
Sleeping Dogs
enter market is Low (track them)
Bystanders
Commitment to
enter market is
High
Combatants
Skirmishers
(Your main focus)
(selective in their
responses due to resource
limits; monitor)
(monitor)
Global Innovation Management
Workout #4: Choose a
Profitable Product or Service
• Select a Product or Service that you are interested in marketing via
Internet business models
– This is mainly about determining your Core Capabilities
• Capabilities =Assets + Competences
– Money is important
• Explain why this is the product that you defined in the first three
workouts
Global Innovation Management
Workout #4: Choose a Profitable Product
or Service
•
•
•
Define how you will measure the usefulness or attractiveness of each of
these features to the target customer.
•
This performance metric should be a numerical measure
Draw a value map describing your companies proposed business model,
and
– provide some indication of the costs and revenues that will flow into
and out of the business.
Define your top competitor in each of these 3 features



•
Are these companies profitable?
How big (approximately) is their business?
Why is your product better?
Think: Low-cost or Differentiated Products?
Global Innovation Management
Workout #5 The Venture Capital
Challenge
• What is your business worth, and why?
• How will you tie this to your business model
– tying narrative to numbers
• What are the activities, operations and products?
• What are the significant environmental influences?
– major competitive forces outside management control
• How does value flow through your business model?
• What is the Net Present Value of future activities
Global Innovation Management
Workout #6: AdWords
• Setup your AdWords Campaign for this Business
• Show how Channels are tied to Campaigns
• Show how Customers and Features are tied to
Keywords
• Show how your Business Model is tied to Bid Prices
for those Keywords
• What is your estimated AdWords budget as a % of:
– Revenues?
– Gross Margin?
• ≈
Global Innovation Management
Workout #7: The Communication
Challenge
• Provide a ‘lead in’ which will ‘hook’ your listener
• Provide a brief ‘sales pitch’
– Consider what parts you most want to emphasize
about the business
• Answer your investors’ question:
– Why should I give you My money?"
Global Innovation Management