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Prototypes at Different Scales

In architecture or product design, it is easy to understand prototypes. We can apply the same scale and size varia- ent from simply sketching out business ideas, something
what is meant by prototyping at different scales, because tions when prototyping business models, but in a more any businessperson or entrepreneur does. Why do we
we are talking about physical artifacts. Architect Frank conceptual way. A business model prototype can be need to call it “prototyping”?
Gehry and product designer Philippe Starck construct anything from a rough sketch of an idea on a napkin to a
countless prototypes during a project, ranging from detailed Business Model Canvas to a fi eld-testable busi- There are two answers. First, the mindset is different. PROTOTYPING
sketches and rough models to elaborate, full-featured ness model. You may wonder how all of this is any differ- Second, the Business Model Canvas provides structure
to facilitate exploration.
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Business model prototyping is about a mindset we
call “design attitude.” It stands for an uncompromising
commitment to discovering new and better business DESIGN
models by sketching out many prototypes —both rough
and detailed—representing many strategic options. It’s
napkin sketch elaborated canvas business case fi eld-test not about outlining only ideas you really plan to imple-
outline and pitch explore what it examine the viability investigate customer ment. It’s about exploring new and perhaps absurd, even
a rough idea would take to make of the idea acceptance and
the idea work feasibility impossible ideas by adding and removing elements of
draw a simple business turn the detailed each prototype. You can experiment with prototypes at
model canvas. describe develop a more elabo- canvas into a spread- you’ve decided on
the idea using only key rate canvas to explore sheet to estimate a potential new different levels.
elements. all the elements your model’s earning business model, and
needed to make the potential. now want to fi eld-
› Outline the idea
business model work. test some aspects.
› Include the Value › Create a full Canvas
Proposition › Develop a full Canvas › Include key data › Prepare a well-justifi ed
business case for the
› Include the main › Think through your › Calculate costs and new model
Revenue Streams business logic revenues
› Estimate the market › Estimate profi t potential › Include prospective
potential or actual customers
› Run fi nancial scenarios in the fi eld test
› Understand the based on different › Test the Value Proposi-
relationships between assumptions tion, Channels, pricing
Building Blocks
mechanism, and/or
› Do some basic other elements in the
fact-checking marketplace

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