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Chp 3: Techniques to design
innovative business Models
From the book: Business Model
Generation
By: Roukaya ISSAOUI
February, 2015
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...Agenda
Introduction
1- Customer Insight
2-Ideation
3-Visual Thinking
4-Prototyping
Conclusion
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Introduction: Design and business
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Intorduction: Design in Business
Investigation and explanation
Analyse and Prevision
ScientificManager
Imagination and creation
Intuition and anticipation: « What if? »
Designer Manager
To describe a number of techniques from the world of Design that can
help manager to design better and more innovative business model
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Technique n°1: Customer Insight
Customer perspective informes the choices regarding value proposition,
distribution channels, customer relationship… it is a guide for the entire
business model design process.
Design start with empathy: to put yourself in the customer’s shoes and try
to answer those questions:
-What job to be done our customers need and how we can help?
- What are our customer’s aspirations and how can we help him live up to
them?
-How do our customers prefer to be addressed? And how do we as an
entreprise best fit into their routine?
-What relationship do our customer expect us to restablish with them?
-For what value are customer willing to pay?
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Tool to develop better deep understanding of the Customer profil:
The Customer Empathy Map
Technique n°1: Customer Insight
To consider cutomer as humain
being dominated by feeling,
knowing them as real person with
real problem not as target and
segment.
1- Brainstorming: all the possible
customer to be served
2-Short list of the promising
customer segment
3-Profiling each cusotmer segment
by using the Empathy Map
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The Empathy Map
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Technique n°2: Ideation
Ideation is a creative process for generatign a large number of
business model ideas and successfully isolating the best one
The Business Model innovation is about:
- Unsatisfied need, hidden need or new
emerging need
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Technique n°2: Ideation
The ideation has two main phases:
-Idea generation: Divergence and Quantity matters: create
choices
-Synthesis: Convergence: ideas are discussed, combined and
narrowed down to small number of viable option: make choice
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Technique n°2: Ideation
Starting point:
1-Idea can come from any block of business model canvas, and each can
have a powerful impact on the other blocks.
There are 4 Epicenter of BM innovation : Resources driven, Offer
driven, Customer driven, Finance driven
Example: Amazon web services
was built on top of Amazon.com’s
retail infrastructure to offer Cloud
computing to other companies
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Technique n°2: Ideation
IKEA offers a new Customer
value proposition for young
couples who want low cost but
fashion forward furniture. It is not
about lowring the cost of furniture
but turning furniture from durable
into non durable good
ZipCar : an alternative to car
rental, it allowed city dwellers
to eliminate the hassles of
metropolitan car ownership.
Instead customers who pay
an annual fee can rent car by
the hour.
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Technique n°2: Ideation
Xerox invented the xerox 914
which was priced too high, so it
leased the machine $95/ month
including 2000 free copies plus
5% per additional copy
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Technique n°2: Ideation
The « what if? »question helps to break
up with the statu quo and free our
immagination, to break free of
constrants imposed by current model.
How it work?:
1- Team compostion: diversity
2- Immersion: research, study,
scrutinizing…
3- Expanding: a lot of ideas generation
4-Selection: prioritizing criteria of
selection
5- Prototyping: testing the result
Tools for idea generation:
-Brainstorming, Analogie, if i was…
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Technique n°3: Visual thinking
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Technique n°4: Prototyping
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Conclusion
« The real voyage of discovery
consists not in seeking new
landscapes but in having new
eyes »
Marcel Proust
