Often the need for a new business model becomes readily apparent in between the Front End and the Back End of Innovation… between zoning in on a winning idea and actually commercializing it, a phase we refer to as the Mid Zone of Innovation. At other times the need is fully apparent from the start.
Before we begin work on a new business model, we first ensure that the underlying problem statement behind the proposed concept has been thoroughly vetted and refined. The fundamental challenge in any innovation is not in coming up with new solution concepts, but rather in properly understanding and clearly articulating the problem to be solved… the so–called "problem behind the problem". This is known as problem reframing. The outcome of problem reframing is a clearly understood and articulated Point of View, characterized by key customer needs ranked in priority order. This is work that would have ideally been done early on in the Front End while mining pertinent market and business insights (see Insights Research). Once we are satisfied that the problem statement has been accurately captured in the Point of View, and the proposed concept fits optimally with that problem statement via well-defined Design Principles, we then move on with the design process. The winning concept (out of the many ideas and concepts that would have been considered) is the one we build a new business model around.
Two of the tools we use in the early business model concepting work are the Legacy Innovation Solution Space Canvas and the Legacy Innovation Business Model Canvas. Both of these aid in exploring and examining a number of possibilities around the new business model.
For the design work proper, we take the winning concept and we proceed to develop the working illustrated business model for it. This new business model will define, in detail, how new customer value is to be created, delivered, consumed, and monetized, and will reflect the new customer experience around that. The creative process of developing this business model may involve a number of iterative loops as we work together to converge on the final, optimal business model for your organization to take to market.
Finally, we work with clients to help validate the new business model. This entails various market research and/or market–testing exercises.