1. INFO: N. Erkamp \ +31651881549 Business experiment Process tool Nils Erkamp – M +31651881549

2. INFO: N. Erkamp \ +31651881549 Why we do business experiments New value innovations starts through (local) cooperation of stakeholders (supply <> demand) Scale-up on European scale – other parties and countries can learn – Product / service improvement – Better, faster process

3. INFO: N. Erkamp \ +31651881549 Idea generation A collaborative business project starts with 3 things come together: – An opportunity in the market to create value – An idea on how to deliver that value – And people that are willing to commit time and money to realize the idea and harvest the opportunity

4. INFO: N. Erkamp \ +31651881549 A collaborative process Bringing the people together to realise the idea follows a number of logical steps, designed to get things done as effective as possible New business creation seldom goes as planned: – Learn, be flexible to adjust the plan, problems are often a blessing in disguise that demand a better solution – Each partner has its own interest and at some moment in time you need to come to an agreement that is win- win – You may need a few iterations before getting there

5. INFO: N. Erkamp \ +31651881549 High rewards It’s not easy and initially slower than when you do things on your own That changes when partners use each parties competences in the best way But, if you succeed … – You create a business that would never have been possible without collaboration (1 + 1 > 2) – You create a business that is hard to copy

6. INFO: N. Erkamp \ +31651881549 The templates The following slides first describe the high-level process Then for each step templates are available with the key questions that need to be answered

7. INFO: N. Erkamp \ +31651881549 Business experiment process Analysis of WP2 and WP3 Brainstorm at clusters WS1: define product & value WS2: business model WS3: financial model PROJECT 6 OpportunitiesIdeas Product, service, value and value chain Business model Financial model; commitment to project plan Process steps Results

8. INFO: N. Erkamp \ +31651881549 Tools Analysis of WP2 and WP3 Brainstorm at clusters WS1: define product & value WS2: business model WS3: financial model PROJECT 7 T1 T2 TK2,4,5 T3-6 TK5,6,7 T7-9 TK1,2,4,7 T10-11 TK4,8,9 TK3,10 Process steps Tools (topics see next slide)

9. INFO: N. Erkamp \ +31651881549 Open innovation toolkit 1.Relationships and cohesion 2.Open communication and dialogues 3.Commitment 4.Trust and safety 5.Climate for innovation and creativity 6.Clear strategy and goals for collaboration 7.Selection of relevant and appropriate partners 8.Structure and governance for collaboration 9.Contractual arrangements 10.Evaluation of process and results

10. INFO: N. Erkamp \ +31651881549 Contracts – a point of attention Contracts, like a Non-Disclosure Agreement, have pro’s and con’s – More certainty on commitment: people with the right authority need to sign so it can not be an individual employees enthusiasm, but the organization needs to buy in – Although it is very difficult to exercise the rights legally, peer/social pressure (esp. in a multi-party agreement) can work well – Legal processes can cost a lot of time/energy; it can change the atmosphere from co-operation to adversaries. Always use mutual agreements (same rules apply to all) to avoid this

11. INFO: N. Erkamp \ +31651881549 Part 1 Shaping the idea 10

12. INFO: N. Erkamp \ +31651881549 Template 1: OPPORTUNITIES Idea name Describe the opportunity ? How will it bring value ? Where would it be applied ? What’s the alternative today ? 11

13. INFO: N. Erkamp \ +31651881549 Template 2: BUSINESS IDEA Idea name What is the product / service ? Who is the customer / buyer ? What is the value to this customer / buyer ? Which value chain parties are interested (+ indicate business scope) 12

14. INFO: N. Erkamp \ +31651881549 Please read! Customer 1 Customer 2 Template 3: Customer description 12 34

15. INFO: N. Erkamp \ +31651881549 Customer 1 Customer 2 Please read! Template 4: Product, service and value 12 3

16. INFO: N. Erkamp \ +31651881549 Template 5: ENRICHED IDEA Idea name Describe the product or service (+ add features in template 5) What is the value proposition ? (+ add main points in template 5) What is a customer willing to pay ? What is the market & segment size ? In quantities and value What are competitors or alternatives ? 15

17. INFO: N. Erkamp \ +31651881549 Template 6: value chain – market description 1) Specification & sales process 2) Production, physical distribution, installation phase 3) Operational & usage phase Complementing products & services P1P2P3CustomerP1P2CustomerUserP1P2P3Customer

18. INFO: N. Erkamp \ +31651881549 Part 2 Business model: a description how we are going to achieve our goals – Revenues – What competencies are needed; who does what – Costs and investments 17

19. INFO: N. Erkamp \ +31651881549 Template 7: Business Model Canvas Please read! Customer 1 Customer 2 1 2 3 4 5 6 7

20. INFO: N. Erkamp \ +31651881549 Template 8: BM consortium conclusions TypePotential partner What core competence do we not have in the team ? IN consortium Complementary partners (includes current consortium partners that do not have a crucial role) OUTSIDE consortium Are there tasks that more than 1 party can do ? Decide who does what asap ! 19

21. INFO: N. Erkamp \ +31651881549 Template 9: Project leadership Idea name Who is in the team ? Who takes the lead ? What are the open questions ? What are the key risks ? Next actions e.g. -Each partner to agree results within his own organization -Answer open questions -Address key risks -Get right partners to join 20

22. INFO: N. Erkamp \ +31651881549 Part 3: Financials & next steps Financials: how is money going to be invested, spend and earned. How will risks and rewards be shared ? – Prepare open book estimation by all partners – Bring together and discuss – Agree on joint approach 21 OpportunitiesIdeas Product, service, value and value chain Business model Financial model; commitment to project plan

23. INFO: N. Erkamp \ +31651881549 Template 10: Financial discussion 22 Each partner prepares partner finances The consortium discusses and agrees on project

24. INFO: N. Erkamp \ +31651881549 Sanity check Customer perspective: is it also for the buyer a good deal ? – Cost of ownership – Value of ownership So far by means of a subjective value bonus 23

25. INFO: N. Erkamp \ +31651881549 Cost-of-ownership ParametersResult Installation designNumber of units Installation costUnit priceInvestment EnergyBurning hourskWh priceAverage power / unit Power consumption Energy/CO2 cost MaintenanceReplacement cycle Cleaning / checking cycle End-of-life time Maintenance cost Value creationRe-usage valueSocietal value (% or €) To be prepared by the partner who is in closest contact with the end customers Collect inputs on each of the parameters below on the new proposition and on the existing alternative. Then calculate through with the TCO model

26. INFO: N. Erkamp \ +31651881549 Template 11: NEXT STEPS TopicWho Check agreements with home organization Each partner Consortium and other contractual agreements Create steering team Agree project team and project manager Steering team Assemble team and plan project kick-off meeting Project manager 25

27. INFO: N. Erkamp \ +31651881549