Introduction to the 14 directions: video lecture

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From the course by HEC Paris

(Re)-invent your business model with the Odyssey 3.14 approach

112 ratings

HEC Paris

(Re)-invent your business model with the Odyssey 3.14 approach

112 ratings

This course gives you access to Odyssey 3.14 - an original approach developed to help you invent or reinvent a business model. This highly innovative approach has been developed by Laurence Lehmann-Ortega and Hélène Musikas and has been shown to be very effective. It is taught to top executives, entrepreneurs, and HEC students. You will learn about the concept and tools that combine innovation and strategy. Starting with the 3 pillars that make up the core business model, this approach recommends 14 directions to consider in order to invent or reinvent the business model. Whether you are a graduate student, an executive or an entrepreneur, you will learn from examples and from your peers how to challenge your views in order to be innovative and come up with new ideas. Odyssey 3.14 is the result of over ten years of research, consulting and teaching. Over 100 companies that have successfully invented or reinvented their business model have been thoroughly analyzed and will inspire you to develop your own new, innovative business model. At the end of the course, you will be able to : • Define what a business model is and how it relates to other the tools and frameworks in strategy • Understand the 3 components of the business model and how they are linked • Remember the 14 directions in which to explore and imagine a new business model • Understand the Odyssey 3.14 global approach, which means being able to apply this approach to any industry

From the lesson

14 directions: 7 directions on the value proposition side

This module explores the 7 directions on the value proposition side of the business model. Those are the 7 first directions out of the 14 directions of the Odyssey 3.14 approach. Each direction will be illustrated by several real life examples.

Introduction to the 14 directions: video lecture6:40

Meet the Instructors

Laurence Lehmann-Ortega
Affiliate Professor
Strategy and Business Policy
Hélène Musikas
Affiliate Professor
Strategy and Business Policy

In our previous module, we have described the three

pillars framework, which is a simple and yet

comprehensive way to describe a firm's business model.

We have shown how it can be very useful, both to capture

the current business and corporate strategy of a firm

and to think about its future.

We have also highlighted how many firms have been able to

reinvent their business model when their current one was

becoming mature, using, for example, the case of movie

theaters in France with the introduction of multiplexes

at the beginning of the 1990s.

New and different business models have also successfully

been developed by firms entering established industries

such as Southwest Airlines, for example, in the US or its

European copy, Ryanair, in the airline industry.

In fact, we have looked at dozens of cases of business

model reinventions, both by existing firms or new entrants.

Some are very recent and some are less recent, but as

relevant since business model reinvention is not a new

phenomenon but a very permanent one.

Reinventing your business model means reinventing its

value proposition and its value architecture and as a

consequence, generating a new profit equation.

From this large base of case studies of which we have

fully documented 85 in our app-book that spreads over

time, industries and geographies, we have drawn an

approach to reinvent your business model.

We call it the Odyssey 3.14 approach and I will explain shortly why we named it like this.

The question we asked ourselves was: what have these

companies done to find radically new value propositions

and value architectures?

What common patterns can we identify?

And based on our observations, we are proposing fourteen

directions in which to explore to find new ideas for a

new value proposition or for a new value architecture.

Seven of them refer to the value proposition and seven of

them refer to the value architecture.

Thus, the name of our approach.

Odyssey is for the exploration, the travel, 3 is for the

three pillars of the business model and 14 is for the 14 directions to explore.

In fact, a direction means a topic to be discussed.

The best way to materialize it is in a series of

questions to ask yourselves. For example, exploring the

direction and title "Reduce clients' hassles" means asking

yourselves two questions.

What are the complications our clients experience when

using our products or services?

And how could we reduce these complications?

In fact, these directions are a way to structure

a discussion, or a brainstorming session, or an ideation

session one would say these days, within the company.

These directions are not exclusive of one another and

discussing those related to the value proposition or

those related to the value architecture is equally

interesting and productive in terms of new ideas as both

pillars are really closely related.

Therefore, if one wants to be exhaustive in one's search

for a new business model, all fourteen of them should be

explored even though some of them might lead to fewer ideas than others.

However, before we move into presenting those fourteen

directions there are two very important points I would like to stress for you.

We could call them prerequisites to business model reinvention.

We can find them in every single business model innovation story.

They are permanent features.

We call them: have a customer insight and break an industry belief.

Let me explain what we are talking about.

Having a customer insight comes from seeing small

behavioral details in customers - entering their intimacy.

For example, one of the most successful bikes in the

world, the B'Twin, was conceived by Decathlon, a French

sports retailer that carries its own brands.

After hundreds of hours of observation on their shop floor,

they would observe how male and female buyers

behave in the bicycle section, how they circulate, what

they do with the exposed bike, how they try them and from

these observations, they designed a bike for both men and women.

As for the industry beliefs, sometimes called industry myth, they are everywhere.

In all business sectors, you will find that all players,

all competitors follow certain common ways of doing things.

Usually, these common behaviors come from the past.

They are former key success factors of the industry, and

they have survived over time without ever being challenged.

They have become myths, beliefs, constraints.

Let's look at a few examples.

In the airline industry, for many years, all airlines

have offered meals during their flights.

In the hotel industry, it was understood for ages that a

hotel should have a reception, whatever its category.

In the banking industry, banks would only lend money

against a guarantee of some sort, an asset or secure source of revenues.

However, all of these myths, these industry beliefs have

been challenged, pulled down by companies that have

launched very successful business models: in the airline

industry by low-cost airlines, such as Southwest or

Ryanair; in the hotel industry, by Formula 1 hotels;

in the banking industry by Grameen bank and all the other microfinance institutions.

We will have the opportunity to discuss these examples later.

So having these prerequisites in mind in our next module,

module three, we will detail each of the seven directions

related to the value proposition, illustrated by many

company examples, and in module four, we will detail in a

similar way the seven directions related to the value architecture.

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