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IDEATION




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                                                                                                                                             DESIGN










               Customer-Driven                           Finance-Driven                           Multiple-Epicenter Driven
               Customer-driven innovations are based on   Innovations driven by new Revenue       Innovations driven by multiple epicenters
               customer needs, facilitated access, or increased   Streams, pricing mechanisms, or reduced   can have signifi cant impact on several
               convenience. Like all innovations emerging from   Cost Structures that affect other   other building blocks.
               a single epicenter, they affect other business   business model building blocks.
               model building blocks.



               Example: 23andMe brought personalized DNA testing   Example: When Xerox invented the Xerox 914 in 1958—  Example: Hilti, the global manufacturer of professional
               to individual clients—an offer previously available exclu-  one of the fi rst plain paper copiers—it was priced too   construction tools, moved away from selling tools out-
               sively to health professionals and researchers, This had   high for the market. So Xerox developed a new business   right and toward renting sets of tools to customers. This
               substantial implications for both the Value Proposition   model. It leased the machines at $95 per month, includ-  was a substantial change in Hitli’s Value Proposition,
               and the delivery of test results, which 23andMe accom-  ing 2,000 free copies, plus fi ve cents per additional   but also in its Revenue Streams, which shifted from one-
               plishes through mass-customized Web profi les.  copy. Clients acquired the new machines and started   time product revenues to recurring service revenues.
                                                         making thousands of copies each month.







          !"#$%&'(%)*+(%,,---15;                                                                                                      /012013---2483-67
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