Design Techniques for Business Model Generator

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Design Techniques for Business Model Generator

  1. 1. Design techniques for Business Model Generator Prepared by Hani Tarabichi From Business Model Generator Book
  2. 2. Business Model design techniques • • • • • • Customer insights Ideation Visual thinking Prototyping Storytelling Scenarios
  3. 3. Business Model design techniques – Customer insights
  4. 4. Business Model design techniques – Customer insights • Adopting the customer perspective is a guiding principle for the entire business model design process. • views the business model through customers‘ eyes • an approach that can lead to the discovery of completely new opportunities
  5. 5. Business Model design techniques – Customer insights • Customer perspectives should inform our choices regarding – Value Propositions – Distribution Channels – Customer Relationships – Revenue Streams • The challenge is to develop a sound understanding of customers on which to base business model design choices
  6. 6. Business Model design techniques – Customer insights • The challenge is to develop a sound understanding of customers on which to base business model design choices • Another challenge lies in knowing which customers to heed and which customers to ignore. • Henry Ford once said, “If I had asked my customers what they wanted, they would have told me ‘a faster horse.’ ”
  7. 7. Business Model design techniques – Customer insights
  8. 8. Business Model design techniques – Customer insights
  9. 9. Business Model design techniques – Customer insights
  10. 10. Business Model design techniques – Customer insights • The goal is to create a customer viewpoint for continuously questioning your business model assumptions. • Customer profiling enables you to generate better answers to questions such as: – Does this Value Proposition solve real customer problems? – Would she really be willing to pay for this? – How would she like to be reached?
  11. 11. Business Model design techniques – Ideation • Creative process for generating a large number of business model ideas and successfully isolating the best ones • The challenge is in ignoring the status quo and suspending concerns over operational issues so that we can generate truly new ideas • It is NOT about looking back or looking at competition • It is about creating new mechanisms to create value and derive revenues.
  12. 12. Business Model design techniques – Ideation • Ideation has two main phases: – Idea generation, where quantity matters – synthesis, in which ideas are discussed, combined, and narrowed down to a small number of viable options. • Options do not necessarily have to represent disruptive business models. They may be innovations that expand the boundaries of your current business model to improve competitiveness.
  13. 13. Business Model design techniques – Ideation • Four epicenters of business model innovation – Resource-driven: originate from an organization’s existing infrastructure or partnerships to expand or transform the business model – Offer-driven: create new value propositions that affect other business model building blocks. – Customer-driven: based on customer needs, facilitated access, or increased convenience – Finance-driven: Innovations driven by new revenue streams, pricing mechanisms, or reduced Cost structures that affect other business model building blocks.
  14. 14. Business Model design techniques – Ideation • Challenge conventional assumptions with “what if” questions • “What if” questions are merely starting points. They challenge us to discover the business model that could make their suppositions work. • Some “what if” questions may remain unanswered because they are too provocative
  15. 15. Business Model design techniques – Visual Thinking • Visual thinking enhances strategic inquiries by making the abstract concrete, by illuminating relationships between elements, and by simplifying the complex
  16. 16. Business Model design techniques – Visual Thinking • Visualizing with Post-it™ notes: – Function like idea containers that can be added, removed, and easily shifted between business model building blocks • Visualizing with Drawings: – People interpret simple stick figures far more easily than abstract concepts expressed in text
  17. 17. Business Model design techniques – Prototyping • The goal of this prototyping activity is far more than the mere testing or proving of ideas. • It is a methodology for exploring different possibilities until a truly good one emerged. • Helps participants gain a better sense of what is missing in the initial understanding of a situation • It makes abstract concepts tangible and facilitates the exploration of new ideas. • a prototype is a thinking tool that helps us explore different directions in which we could take our business model
  18. 18. Business Model design techniques – Prototyping • Prototyping serves as thinking aids for exploring new possibilities. They help us develop a better understanding of what could be. • Design attitude demands changing one’s orientation from making decisions to creating options from which to choose. • Stands for an uncompromising commitment to discovering new and better business models by sketching out many prototypes
  19. 19. Business Model design techniques – Prototyping
  20. 20. Business Model design techniques – Storytelling • • • • Introducing the New Pitching to Investors Engaging Employees The goal of telling a story is to introduce a new business model in an engaging, tangible way.
  21. 21. Business Model design techniques – Storytelling
  22. 22. Business Model design techniques – Scenarios • Scenarios can be useful in guiding the design of new business models or innovating around existing models • Primary function is to inform the business model development process by making the design context specific and detailed.
  23. 23. Business Model design techniques – Scenarios • The first scenario describes: – different customer settings: • How products or services are used • what kinds of customers use them • or customer concerns, desires, and objectives. • Such scenarios build on customer insights but go a step further by incorporating knowledge about customers into a set of distinct, concrete images. • By describing a specific situation, a customer scenario makes customer insights tangible.
  24. 24. Business Model design techniques – Scenarios • A second type of scenario describes future environments • in which a business model might compete. • The goal here is not to predict the future, but rather to imagine possible futures in concrete detail. • This exercise helps innovators reflect on the most appropriate business model for each of several future environments
  25. 25. Business Model design techniques – Scenarios
  26. 26. Business Model design techniques – Scenarios

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