Module 17.3

Business Modeling

Jim Beach & Chris Hanks

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Design

• “….relentless inquiry into the best possible way”

• “….extend the boundaries of thought”

• “….imagine what does not exist.”

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Six Tools

1. Customer Insights

2. Ideation - Exercise

3. Visual Thinking

4. Prototyping

5. Storytelling – Exercise

6. Scenarios

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1. Customer Insights

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Customer Insights

• Using customer perspective when designing products.

• Look at model thru customers’ eyes.

• iPod: in an illegal download era, Apple sees that people will pay for EASY integration.

• Focus on the NEW customer, Zipcar and easyJet.

• Microsoft moving to Cloud for Office. Slide 17.3-8

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Insights from Empathy Tool

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Empathy Tool

• What does she see? (environment)

• What does she hear? (influencers)

• What does she think, feel? (mind)

• What does she do? (behavior)

• What is their pain? (fears, frustrations, obstacles)

• What does the customer gain? (wants/needs)

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Emp

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2. Ideation

• Ignoring status quo and suspend concern over feasibility.

• Not about looking back. Not about competitors!

• Challenging orthodoxies to create new.

• 2 phases: Generation and Synthesis

• 2 starting points: Epicenters and “What if”

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Epicenters

• Resource Driven (Amazon Web Services)

• Offer Driven (Faster Service Cement)

• Customer Driven (At Home DNA Tests)

• Price Driven (Xerox leases instead of sales)

• Multiple Epicenter Driven (one change impacts several areas)

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What if?

• …furniture came flat?

• …airlines rented their engines?

• …voice calls were free?

• …cars manufacturers sold mobility?

• …every villager in Bangladesh had access to a phone?

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Silly Cow

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Silly Cow

Design many business models based on

the cow.

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3. Visual Thinking

Draw your business. Draw client & their environment. Slide 17.3-18

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What if we eliminate the bottom 20% of our business? Slide 17.3-21

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4. Prototyping

• Now that we know we can, HOW do we want to….

• “Business as usual” or incremental change leads to mediocrity.

• Goal = find groundbreaking models.

• Data, ie market research, is only one input.

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5. Storytelling

• What will office space look like in 2050?

1. Create 3 employees, protagonists.

2. Describe them, their environments in detail.

3. Invent jobs, lives, functions for them based on future studies.

4. In a story, have them explain how they work.

• Stories start with Customer or Company.

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Sup

erToast In

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6. Scenarios

1. Different Customer Settings

– How products are used?

– What kinds of customers use products?

– What kinds of desires, concerns, objectives?

– Build on earlier customer insights.

– Scenarios make insights TANGIBLE.

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2. Future Environments

– Not to predict future, but to….

– Imagine possible futures in detail.

– Called “Scenario Planning”

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THANKS!

Next: Lesson 17.4 Strategy

Buy or Review!

Slide 17.3-35