After having discussed direction 10, in this video, we'll present our eleventh direction, "Leverage your strategic resources and key competencies". You probably remember from module two that strategic resources come in different flavors. They can be tangible like buildings, people, finances or unique location, or intangible: a specific culture, a renown brand, a unique process. Companies have always found new business models by leveraging their strategic resources. It’s a well-known route in developing new businesses. Let’s develop some interesting examples. First, let's analyze TV advertising screens as a strategic resource. The revenue of private television channels is mainly derived from advertising. This source of revenue decreased steadily because of the combined effects of the economic crisis and the development of non-traditional online advertising. In 2011, ProSieben, the largest private television network in Germany, decided to leverage its advertising space through its subsidiary, SevenVentures. SevenVentures identifies start-ups that would significantly gain from more public exposure through TV advertising campaigns. In exchange for advertising campaigns, ProSieben negotiates stakes in these start-ups or a share of their future revenues. Media for equity. There is no short-term profit, but a potential long-term value creation if and when the start-up's shares are disposed of. In 2013, ProSieben provided €7 million of media advertising across the group’s networks to several European start-ups, chosen amongst 300 candidates, mainly web sites, such as price comparison sites or e-traders. Here is a second example of leveraging a key competency: the competency in fulfillment for e-commerce. Amazon’s logistics are unparalleled. It has created one of the most advanced fulfillment networks in the world. Amazon has also created Fulfillment By Amazon (FBA) to handle third-party sellers’ back-end operations. This B2B business stores products in its warehouses, picks, packs, ships, and provides customer service for these products. Third-party sellers, who move goods through FBA typically differentiate their products from competitors through faster delivery time and gain access to a much wider customer base. Of course, today for many companies data have become strategic resources as well, from which they can develop new businesses. One of the most interesting examples is GE Digital Foundries. GE offers a digital industrial transformation service for its clients, connecting them with outside developers and GE data experts to exploit the data generated by GE’s connected equipment, looking for superior industrial performance. Now, there's something else that you can do: turn non-strategic resources into strategic resources for a new business. Let’s take, for example, flat roofs, which are often not a strategic resource. There are many businesses that you can create with a flat roof: solar energy production, a bar, a restaurant, agriculture. The OnTop concept has been developed and is being implemented in the city of Frankfurt, in Germany, to respond to two challenges: first, the urge to increase density to cope with growing demography and scarcity of land and of course, the urge to improve the energy efficiency of older buildings. Living units, called Symbionts, are placed on the roof-tops of existing buildings. They are therefore located in desirable spots with views and where the urban infrastructure is already in place. Their shape, size and architecture can be adapted to the situation. In all cases, they are made of prefabricated wood panels that are low-cost and recyclable. Each Symbiont is covered with solar panels that produce enough electricity to meet the needs of the Symbiont itself and part of the needs of the existing building. In other words, the new residents and the initial ones live in symbiosis. In parallel with the Symbiont's construction, and thanks to the funds generated by the Symbiont's sale or rent, the building owner undertakes refurbishing. Lastly, let’s look, as usual, at the questions to ask yourselves regarding this direction: First of all, what are your strategic resources? What resources do you underexploit? Could you promote them in another way? Do you have know-how that could be of interest to other companies? That was direction 11. Join us for the next direction, called "Associate with competitors or partners".