The document provides an overview of business models and the process for developing or innovating business models. It discusses that a business model describes how an organization creates, delivers, and captures value. It also notes that a business model must address infrastructure, offers, market, and financial aspects. The document then outlines the key components of a business model canvas including activities, partnerships, resources, value propositions, customer relationships, channels, revenue streams, and cost structure. It differentiates generating a new business model from innovating an existing one and discusses challenges associated with each. Finally, it describes the process of mobilizing, understanding, designing, implementing, and managing business models.

1. Business models 101
Getting mobilized
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2. • A biz model describes the rationale of
how an organization creates, delivers, and
captures value
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3. • A biz model:
– Must be simple, relevant, intuitive, and
inherently understandable
– Mustn’t oversimplify the complexities of the
business
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4. • A biz model must address all four principal
domains of enterprise:
infrastructure offer market
financial
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5. • A well-defined biz model can be:
– Managed
– Structured into processes
– Used to leverage the creative potential of an
entire organization
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6. The basic “biz model canvas”
key customer
activities relationships
key value customer
partnerships proposition segments
key distribution
resources channels
cost structure revenue streams
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7. • Generate vs. innovate?
– Is this a “green fields” scenario?
– Are you starting with an entrenched
organization or existing biz model?
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8. • Generate a new model if your goal is to:
– Satisfy existing but unanswered market needs
– Bring brand new technologies, products, or
services to market
– Improve, disrupt, or transform an existing
market with a better business model
– Create an entirely new market
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9. • Innovate an existing model if you need to:
– Respond to a crisis
– Adjust, improve, or defend an existing biz
model to adapt to a changing environment
– Bring new technologies, products, or services
to an existing market
– Prepare for the future
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10. • Main challenges for creators of new biz
models:
– Finding the right model
– Testing the model
– Gaining market acceptance
– Responding and adapting to market feedback
– Managing uncertainty
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11. • Main challenges for innovators of existing
biz models:
– Developing an appetite for change
– Aligning old and new models
– Managing vested interests
– Focusing on the long term
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12. • Creating and innovating biz models:
– Can be messy and unpredictable
– Requires the ability to cope with uncertainty
and ambiguity
– Demands patience and flexibility
– Calls for a “design attitude” instead of a
“decision attitude”
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13. • A ‘decision attitude’:
– Assumes designs are easy, but choosing
among them is hard
– Focuses on ‘doing things right’ by limiting the
options as early as possible
– Is linear, following a predictable ‘analysis,
decision-making, optimization’ trajectory
– Aims to reduce uncertainty, results in
increased complexity
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14. • In contrast, a ‘design attitude’:
– Assumes design is hard, but deciding which
one to select is trivial if design is done well
– Focuses on ‘doing the right things’ by exploring
and prototyping multiple possibilities
– Is non-linear, going back and forth between
market research, analysis, prototyping, and
idea generation
– Aims to reduce ambiguity, results in increased
clarity
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15. • How it works:
Mobilize… Understand... Design... Implement... Manage...
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16. Mobilization
• Mobilizing is about:
– Creating awareness of the need for business
innovation
– Establishing the motivation to change
– Defining a common language and framework
for describing, designing, analyzing, and
discussing the business
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17. Mobilization: key activities
• Framing the project:
– Project rationale
– Scope of impact
– Key objectives
• Testing preliminary ideas
• Planning the project
– Initial focus is on mobilization, understanding, and design
– Deal with implementation and management later
• Assembling the team
– Knowledgeable
– Capable
– Motivated
– Committed
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18. Mobilization: success factors
• Appropriate people, experience, and
knowledge
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19. Mobilization: risk areas
• Overestimating the value of your initial
idea(s)
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