Intrepreneurship Lessons Learned Reinventing the Experience of Ageing - PowerPoint Presentation

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Intrepreneurship

Lessons Learned Reinventing the Experience of AgeingBeverly SmithPrincipal ConsultantThirdThirdSlide2

What did it take to succeed?

Financial turnaround

2015 National Good Design Award – Business Model Innovation

Qualitative and Quantitative behavioural segmentation

Customer-led design and innovation capability

Definition of Current Operating Model and Target Operating Model

Implementation of Clinical Management Systems

Cultural Transformation Program – The Charter of new Vision, Values and Behaviours

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What are the key insights?

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What is discontinuous or non-linear change?

Four distinct “business models” in the high jump event at the Olympics. Each enabled athletes to achieve breakout performance.These nonlinear shifts each transformed the high-jump “industry.” In each case, the inventive high jumpers were not just managing the present, they were creating the future.

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Disruptive Change in Healthcare – Global, National and Local

TrendsHealthcare expenditures have risen considerably faster than GDP growthHealthcare

is facing a discontinuous

change

Many

incumbents focus on the status

quo

Incumbents struggle to create an effective strategic response to

disruption. The scope of change for incumbents requires transformation, and historically only 30% of organisational transformations succeed

The industry and business model shift required in healthcare is on a scale that few companies and few sectors in the economy have been through

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McKINSEY AND COMPANYSlide6

What is Business Model Innovation

?6The Ten Types of Innovation:Slide7

What is Business Model Innovation?

7We have to move beyond Product (Offering) Innovation to win:Slide8

What is Business Model Innovation?

8We have to innovate across our whole Business Model:

A business model is the plan implemented by a company to generate revenue and make a profit from

operations

The model includes the components and functions of the business, as well as the revenues it generates and the expenses it

incurs

The

Business Model Canvas

is a template for developing new or documenting existing business models

.

Business Model Definition | Investopedia http://www.investopedia.com/terms/b/businessmodel.asp#ixzz40mcQ5bPI

http://www.businessmodelgeneration.com/downloads/businessmodelgeneration_preview.pdf

8. KEY PARTNERS

Who are our Key Partners?

Who are our Key Suppliers?

Which Key Resources are we acquiring from partners?

Which Key Activities do partners perform?

7. KEY ACTIVITIES

What Key Activities do our Value Propositions require?

Our Distribution Channels?

Customer Relationships?

Revenue streams?

2. VALUE PROPOSITIONS

What value do we deliver to the customer?

Which one of our customer’s problems are we helping to solve?

What bundles of products and services are we offering to each Customer Segment?

Which customer needs are we satisfying?

4. CUSTOMER RELATIONSHIPS

What type of relationship does each of our Customer

Segments expect us to establish and maintain with them?

Which ones have we established?

How are they integrated with the rest of our business model?

How costly are they?

1. CUSTOMER SEGMENTS

For whom are we creating value?

Who are our most important customers?

6. KEY RESOURCES

What Key Resources do our Value Propositions require?

Our Distribution Channels? Customer Relationships?

Revenue Streams?

3.CHANNELS

Through which Channels do our Customer Segments want to be reached?

How are we reaching them now?

How are our Channels integrated?

How are we integrating them with customer routines?

9. COST STRUCTURE

What are the most important costs inherent in our business model?

Which Key Resources are most expensive?

Which Key Activities are most expensive?

5. REVENUE STREAMS

For what value are our customers really willing to pay?

For what do they currently pay?

How are they currently paying?

How would they prefer to pay?

How much does each Revenue Stream contribute to overall revenues?Slide9

What are the key insights?

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Customer Insights as ‘True North’

10Source: AIHW web report: Chronic disease risk factors (19 April 2016): http://www.aihw.gov.au/chronic-diseases/risk-factors/

Individuals have more power to change their behavioural risk factors than any other determinants of chronic disease, and these are often the primary goal of health promotion and intervention -such as diet, exercise, smoking tobacco and drinking alcohol:Slide11

Customer Insights as ‘True North’

11Segment A

Segment

B

Segment

C

Segment

D

Segment

E

PassivePassive

Active

Active

Active

Lack any sense of control or desire to plan

Strong desire to plan, but lack any sense of control

Have a strong desire to plan and feel somewhat in control

High

levels of planning and believe a way to improve life

High

levels of planning

Less content with life

Worry about loneliness, but lack community or social connection

Happy

in life and want to keep busy

Have a strong desire to experience new things and meet new people

Have a strong desire to experience new things and meet new people

Low desire

to learn or engage with the community

Low family connections

Low family connection

Strong social connection with family

Involved in the community and have strong social and family connections

Involved in the community and have strong social and family connections

Reliant on family support

Stronger desire to keep family home

Perceive value in digital solutions

Perceive value in digital solutions

Perceive value in digital solutionsSlide12

Exploit and Explore

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Dual Growth Strategies

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To fundamentally transform organisation’s position and trajectory in order to deliver strong and sustainable value creation

Are we competitive on cost?

What quick wins to target?

How can we free up the funding for future investment?

How can we keep employees, customers, the board, and other stakeholders with us?

How can we quickly raise revenues, simplify the organisation, use capital more efficiently, and reduce costs?

Where should we target growth?

What markets should we enter or exit?

What is our business model?

What targets should we set, and how should we measure them?

How can we dramatically rethink the operating and business models to increase competitive advantage?

Will the organisation and culture sustain success?

What talent do we need, and when do we need it?

How do Customer and HR collaborate as transformation partners?

How do we embed change within the organisation?

How can we focus strategically on the people?

The goal

What it means

Questions to answer

‘Fixing

the

Platform’

‘Innovating

for

Growth’

‘Cultural Transformation Program’

Source: adapted from BCG article ‘Transformation, The Imperative to Change’, November, 2014Slide14

What are the key insights?

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Role of Leadership

15Many organisations are prisoners of their past – and the more successful that past, the harder it usually is to make the changes. However, the market does not care about the past, or any of the organisation’s constraints.Navigating

disruption effectively requires:

a healthy organisation (ability of the organisation to align, execute, and renew itself faster than competitors)

a solid Board governance model, and

especially, leadership. The senior executives must act to get in front of the disruption

:

Shift focus

: need to take on two jobs, run today’s business while creating the business of tomorrow. To do this they should have a shared vision based on solid insights of the future.

Reallocate resources: make significant changes in how and where resources are allocated, and ensure that the budget process doesn’t favour pre-existing business activity and projects over new ventures

Increase speed and capacity for change: increase speed and capacity for transformation, supported by a realistic understanding of their organisation’s capabilities compared with competitors

Get lean

: administrative efficiency will be a ‘must have’, as many new entrants will be much more efficient than incumbents and will have more favourable cost structures. Cost reduction is not a recipe for success, but it is likely to be a pre-requisite for success.

McKINSEY AND COMPANYSlide16

What are the key lessons learned?

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12. Aligning existing footprint

2. Charting Cultural Transformation

1. Analysing Customer Behaviour

3. Co-designing Care & Services

4. Aligning Accommodation

& Housing

2. Customer-led decision making

1. Evidence not Anecdote

5. Inspire not Perspire

3. Branded Customer Experience

6. Culture eats Strategy

4. Ambidextrous Leadership

7. Promote Wellbeing and Independence

10. Form must follow Philosophy

8. Shape Service Delivery Model

9. Service ecosystem and Partnering

11. Healthy Housing

1. Customer Insights and EvidenceSlide17

Intrepreneurship

Lessons Learned Reinventing the Experience of AgeingBeverly SmithPrincipal ConsultantThirdThird