NotordDesign FrameworkViabilityFeasibilityIs the business capable ofdelivering?Is the business modelproductive andsustainable?Is the proposed solutionhighly desirable to targetusers?Desirability
Ernest HemingwayWhen people talk, listen completely.Most people never listen.Insights drive innovationDesign Perspective #3Desirability
Generate designconcepts from userinsights.Empathy > InsightsDefine the User ProblemIdeate Possible Concepts(Market research is not empathy!)Desirability
Viability insights canbe discovered easilywith these two criticalperspectives:Viability1_Strong competitive strategydrives low-cost market sharegrowth.2_An efﬁcient business modelfacilitates productive growth.
Competitive Strategy ViabilityDesign Perspective #41_ Scope:What is the scope of thebusiness?2_ Competitive Advantage:What is the source ofdefensible competitiveadvantage?
NotordReference: Michael PorterOnly 3 Generic Strategies: ViabilityMost NZ companiesneed to competeglobally at the righthand side of thiscontinuum...NZ Export Insight:CustomerBase andPotentialScale1_Scale2_Differentiation3_FocusAbsolute cost of distribution declines >>Gross Margin increases as a % of sales >>EG: Triumph Elle MacphersonIntimatesQP Sport
NotordEfficient Business Model ViabilityDesign Perspective #5SalesGrossMarginCostsBalanceSheetCash FlowMarginal sales should be easy to getConsistent sales levels facilitate resource balancingConsistent cash ﬂows make borrowing easyLow asset intensityLow receivables daysHigh inventory turnPremium pricing ensures high marginsLow obsolescence minimizes margin dilutionFlexible ﬁxed costs minimizes riskHigh operating leverage allows proﬁt to grow faster than sales
No need to over-complicate businessmodeling!SalesUpCostsDownWiden MarginReduceInvestment“SUCDRI”Courtesy of Graeme HartViability
Increase capability to increase possibility- Training- Collaboration- Hiring- EnvironmentGovernance andAdvisoryTeamCapabilityTechnologyFeasibility- External Directors- Advisory Board- Consultants- Networking- Conferences- TravelHow to ﬁnd out what you“don’t know you don’tknow”.Hire a diverse team that“scares you”.- R & D- Time for Design Thinking- Buying in or licensing- PartneringDevelop somethingvaluable and hard to copy.Design Perspective #6