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Generating New

Business Model Ideas

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Mapping an existing business model is one thing; designing to competitors, since business model innovation is not about
IDEATION a new and innovative business model is another. What’s needed copying or benchmarking, but about creating new mechanisms
is a creative process for generating a large number of business
to create value and derive revenues. Rather, business model inno-
model ideas and successfully isolating the best ones. This vation is about challenging orthodoxies to design original models
136 process is called ideation. Mastering the art of ideation is crucial that meet unsatisfied, new, or hidden customer needs.
when it comes to designing viable new business models.
DESIGN Traditionally, most industries were characterized by a dominant To come up with new or better options, you must dream up a
grab bag of ideas before narrowing them down to a short list of
business model. This has changed radically. Today we enjoy conceivable options. Thus, ideation has two main phases: idea
many more choices when designing new business models. Today, generation, where quantity matters, and synthesis, in which
different business models compete in the same markets, and ideas are discussed, combined, and narrowed down to a small
boundaries between industries are blurring—or disappearing number of viable options. Options do not necessarily have to
altogether. represent disruptive business models. They may be innovations
that expand the boundaries of your current business model to
One challenge we face when trying to create new business model improve competitiveness.
options is ignoring the status quo and suspending concerns over
operational issues so that we can generate truly new ideas. You can generate ideas for innovative business models from
several different starting points. We will look at two: epicenters
Business model innovation is not about looking back, because of business model innovation using the Business Model Canvas,
the past indicates little about what is possible in terms of future and “what if” questions.
business models. Business model innovation is not about looking

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