New multi-stakeholder Business Model
During a three-day Innovation Drive event, some 300 heads of various innovation programs got together to accelerate innovation. Industry Consulting presented its unique multi-stakeholder business modeling approach. This has been developed for international markets and ecosystems and is based on End User Driven Innovation.
Today’s businesses require a diverse yet coherent set of information to drive the innovation, e.g., dealing with end-user requirements and branding issues in different regions. This extra complexity needs to be managed. “Today, we’re seeing traditional business models being replaced by more comprehensive ecosystems, involving multiple stakeholders with different backgrounds and interests,” explains Innovation Consultant Mariëlle Meuffels. “Philips cuts through the complexity, together with the client, ensuring highly predictable cost and revenues, whilst optimizing the entire development flow, from creation to logistics and sales. Our method provides the necessary insights and offers a structured approach to generating new scenarios that address today’s playing field. In parallel, we are facilitating a move from traditional product-based business models towards more advanced models that include solutions and services. Allowing various stakeholders to work together ensures they can tackle these two challenges in an integrated manner.”
Do more for end users
“We rethink propositions and reconsider product uses and features, by taking a broader look at the business case, business model and cost and revenue streams. We map these aspects in a way that allows you to do more to please end users, develop a long-term relationship with them and get away from head-on competition on lowest product price,” states Mariëlle.
Highly specific approach
“Of course, other parties have introduced similar approaches, but with far fewer stakeholders. This makes the models less comprehensive – and less useful. To my knowledge, this is the first time this exercise has been done so extensively and specifically for Philips. Extensive analyses plus in-depth know-how of Philips practices allow us to deliver a highly specific approach, which can provide a blueprint for a complete ecosystem. This boosts the success of the underlying products. And on top of the products, you can now grow an integrated range of solutions and services. All these new opportunities help us make the pie bigger and show customers that Philips is sensitive to their needs.”
If you would like more information please download the presentation on “Multi-stakeholder Business Model”.