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you
Organization-centric
business model design

As pioneering automaker Henry Ford once said, “If them CUSTOMER INSIGHTS
I had asked my customers what they wanted, they What can we sell customers? Customer-centric
How can we reach customers most
would have told me ‘a faster horse.’” business model design

Another challenge lies in knowing which cus- e≈ciently? get done and how can we help? 129
tomers to heed and which customers to ignore. What relationships do we need to establish What are our customer’s aspirations and
Sometimes tomorrow’s growth segments wait with customers? how can we help him live up to them?
What job(s) do(es) our customer need to
at the periphery of today’s cash cows. Therefore How do our customers prefer to be DESIGN
business model innovators should avoid focusing How can we make money from best fit into their routines?
exclusively on existing Customer Segments and our customers?
set their sights on new or unreached segments.
addressed? How do we, as an enterprise,
A number of business model innovations have us to establish with them?
succeeded precisely because they satisfied the willing to pay?
unmet needs of new customers. For example, For what value(s) are customers truly
What relationship do our customers expect
Stelios Haji-Ioannou’s easyJet made air travel
available to lower- and middle-income customers
who rarely flew. And Zipcar allowed city dwellers
to eliminate the hassles of metropolitan car owner-
ship. Instead, customers who pay an annual fee can
rent automobiles by the hour. Both are examples of
new business models built on Customer Segments
located at the periphery under incumbent models:
traditional air travel and traditional car rentals.

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