Ideas are a starting point, but how do you turn them into growth for your business? Today business models are where companies can really make a difference. Innovation doesn’t stop with a product or service but includes every aspect of the business model. What’s needed is a systematic approach including tools to detail and evaluate business models that can help companies make better decisions regarding which ideas have potential to win in the marketplace.
Successful business models often challenge the status quo in their industry and define a new way to create, deliver and capture value. Teams need to create and evaluate options and gain a deep understanding of their business model before deciding to commit significant resources and go through the process of commercialization.
How we can help
Our approach to business model generation is engaging, highly visual and helps teams think about the complete business system. It includes the necessary tools to create all the elements of the business model, highlight assumptions and evaluate the available options. Business model creation covers all aspects of an idea including the customer experience, economic engine, value proposition, customer need, distribution channels, etc. An important aspect of business model design is “stretching.” For example, pushing the boundaries of what is acceptable to what might be possible and then generate breakthrough business concepts.
Teams go through an iterative process of creating, adapting, challenging and using analogies from other industries to define their business model. An ecosystem view identifies key dependencies and addresses value conflicts that are crucial for commercialization to be successful. Once a business model is defined, teams develop a narrative (the pitch document) to help communicate the concept.
- Clearly defined business models that can be pitched for investment decisions
- Sets of assumptions that should be tested prior to commercialization for de-risking purposes
- A systemic approach and common language around the design of business models