TIS innovation park

“Camp for Company”

How to structure a business idea Business Model Generation: Design

August 2013

1 12/08/2013

Some diagrams and concepts taken from Business Model Foundry Gmbh

TIS innovation park

Business Model Generation

2 12/08/2013

TIS innovation park

Design – tools and techniques

3 12/08/2013

If you do not have a crystal ball, you will need to make

assumptions when you define your business model. All

business models need to be designed. Such activity means:

The ability to imagine “what does not exist yet”;

Knowing the fundamental design techniques: Customer insights (empathy);

Ideation;

Visual thinking;

Prototyping;

Storytelling;

Scenarios.

Designing a product is not a “one-time” activity. You have to

quickly adjust your design to constantly changing customer

needs…..and always keep the “story” interesting.

TOM HULME: http://www.youtube.com/watch?v=EmTvRyai_PE

TIS innovation park

The Empathy Map: Feel like your customer

4 12/08/2013

The empathy map: http://www.youtube.com/watch?v=pMN7vkE4csg

TIS innovation park

Excercise

5 12/08/2013

Using the empathy map build a customer profile (the one who will

buy your energy drink) profile by answering six questions:

1. What does she see? …..…………………………………….

2. What does she hear? …..…………………………………….

3. What does she really think and feel? …..…………………………………….

4. What does she say and do? …..…………………………………….

5. What is the customer’s pain? …..…………………………………….

6. What does the customer gain? …..…………………………………….

TIS innovation park

Ideation

6 12/08/2013

Is the creative process that leads to the generation of ideas

and the selection of the best of it to produce

(products/services) business models

Some hints:

1. Ignores the status quo (do not worry about operational

problems);

2. do not look back (forget the past);

3. look no competitors;

4. challenge the orthodoxy.

Ideation process: http://www.youtube.com/watch?v=aBF8VF2hMgQ Crazy products example: http://www.designswan.com/archives/10-creativeweird-inventions-and-concept-designs.html

TIS innovation park

Ideation. What if…?

7 12/08/2013

Examples:

IKEA. furniture buyers picked up components in flat pack form

from a large warehouse and assembled the products

themselves in their homes?

Amazon. Marketplace for used books?

Skype. voice calls were free worldwide?

Daimler. car manufacturers didn't sell cars, but provided

mobility services? (Uhlm-Car2go).

TIS innovation park

The Ideation Process

8 12/08/2013

A general approach:

1. Team composition (is our team sufficiently diverse to

generate fresh business model ideas?);

2. Immersion (Which elements must we study before generating

business model ideas? Research, studying customer or

prospects, new technologies, workshop, etc.);

3. Expanding (What innovations can we imagine for each

business model building block? Quantity and brainstorming);

4. Criteria selection (What are the most important criteria for

prioritizing our business model ideas? Estimated

implementation time, revenue potential, possible customer

resistance, and impact on competitive advantage.)

5. Prototyping (sketch out and discuss each idea as a business

model prototype).

TIS innovation park

Ideation. Some rules and an exercise

9 12/08/2013

1. Assemble a Diverse Team (coming from different

areas, different age, different skills, different

experiences, different cultural characteristics, etc.)

2. Brainstorming (stay focused, to enforce the rules,

think in a visual way - write down ideas in an area

where everyone can see them, be prepared - before

the immersion).

TIS innovation park

Visual thinking

10 12/08/2013

For visual thinking is meant the use of tools such as

pictures, sketches, graphs and notes on Post-it to build

and discuss an idea (it is difficult to build a model without

representing it).

In fact:

being able to transmit and communicate the big

picture - without displaying it - it is very difficult;

move the discussion from abstract to concrete;

brings out the logical gaps by facilitating discussion.

TIS innovation park

Two techniques and four processes

11 12/08/2013

Visual techniques:

1. Post-it;

2. Sketches.

Processes:

1. Understanding;

2. Dialogue;

3. Exploration;

4. Communication.

TIS innovation park

Excercise

12 12/08/2013

Ideate/design the energy drink which fulfills the wishes of the customer

defined n your empathy map

TIS innovation park

Explore Ideas

13 12/08/2013

"I begin with an idea and then it becomes something

else." (P. Picasso).

Crafting a business model is no different:

you can start from any point on the "canvas";

ideas placed in the Canvas trigger new ones;

the Canvas becomes a tool for facilitating the

idea dialogue (for individuals sketching out their

ideas and for groups developing ideas together).

TIS innovation park

Improve Communication

14 12/08/2013

Everybody in an organization needs to understand its

business model, in order to:

create a shared understanding of the model so they can

move in the same strategic direction.

"sell" ideas internally, entrepreneurs with plans based

on new business models must sell them to other parties,

such as investors or potential collaborators.

Illustrazione Gerard Dubois

TIS innovation park

Prototyping

15 12/08/2013

it makes abstract concepts tangible and facilitates

the exploration of new ideas.

Prototyping comes from the design and engineering

disciplines. It is less common in business management

because of the less tangible nature of organizational

behavior and strategy.

A business model prototype can take the form of a simple

sketch, a fully thought-through concept described with the

Business Model Canvas, or a spreadsheet that simulates

the financial workings of a new business.

A prototype is a thinking tool that helps us explore

different directions in which we could take our business

model. (e.g.: What does it mean for the model if we add

another client segment?)

TIS innovation park

storytelling

16 12/08/2013

Storytelling is an undervalued and underused art. It will

help you effectively communicate what it is all about

(good stories engage listeners).

Why Storytelling?

Makes the new tangible;

makes everything clearer (promotes adhesion in order to

be able to explain in detail to the model);

involves people (people are more involved with story than

logic. Makes it easier to relate to the audience);

….Make people dream

Steve Jobs

storytelling:http://www.youtube.com/watch?v=VgBuWQ58wA

8

TIS innovation park

Techniques

17 12/08/2013

Each technique has advantages and disadvantages and

is better suited for certain situations and audiences.

Talk & Image Video Clip Role Play Text & Image Comic Strip

Description

Tell the story of a

protagonist and

his environment

using one or

several images

Tell the story of a

protagonist and his

environment using

video to blur lines

between reality and

fiction

Have people play

the roles of a

story's

protagonists to

make the scenario

real and tangible

Tell the story of a

protagonist and

his environment

using text and

one or several

images

Use a series of

cartoon images to

tell the story of a

protagonist in a

tangible way

When?

Group or

conference

presentation

Broadcast to large

audiences or in-

house use for

decisions with

important financial

implications

Workshops where

participants

present newly

developed

business model

ideas to each

other

Reports or

broadcasts to

large audiences

Reports or

broadcasts to large

audiences

Time &

Cost Low Medium to high Low Low Low to medium

TIS innovation park

Scenarios planning

18 12/08/2013

Their main function is to give life to the process

(development of the business model) explaining in

detail the context in which it will be applied.

There are many scenarios. Let us consider two:

1. build on an understanding of customers (which are the

services, what types of customers, their desires, which

objectives, etc. ..);

2. describe the future environments in which the business

model will compete.

Example scenario planning tools:

http://www.youtube.com/watch?v=yVgxZnRT54E

TIS innovation park

Massimo Andriolo

Stefano Martincigh

Thank you for your kind attention.

19 12/08/2013