Page 206 -

business model environment:

context, design drivers, and constraints

Business models are designed and executed in specific environments. In the following pages, we describe the key external forces that infl uence
Developing a good understanding of your organization’s environment helps business models and categorize them using the four areas just mentioned.
you conceive stronger, more competitive business models. The pharmaceutical industry, introduced in the previous chapter, is used to
Continuous environmental scanning is more important than ever illustrate each external force. The pharma sector is likely to undergo substan-
because of the growing complexity of the economic landscape (e.g. net- tial transformation in coming years, though it is unclear how the changes
worked business models), greater uncertainty (e.g. technology innovations) will play out. Will biotechnology companies, which are currently copying the
and severe market disruptions (e.g. economic turmoil, disruptive new Value pharmaceutical sector’s blockbuster drug model, come up with new, disrup-
Propositions). Understanding changes in the environment helps you adapt tive business models? Will technological change lead to transformation?
200
your model more effectively to shifting external forces. Will consumers and market demand force changes?
You may fi nd it helpful to conceive of the external environment as a We strongly advocate mapping your own business model environment
sort of “design space.” By this we mean thinking of it as a context in which and refl ecting on what trends mean for the future of your enterprise. A good
to conceive or adapt your business model, taking into account a number understanding of the environment will allow you to better evaluate the differ-
of design drivers (e.g. new customer needs, new technologies, etc.) and ent directions in which your business model might evolve. You may also want
design constraints (e.g. regulatory trends, dominant competitors, etc.). This to consider creating scenarios of future business model environments (see p.
environment should in no way limit your creativity or predefi ne your business 186). This can be a valuable tool for jumpstarting business model innovation
model. It should, however, infl uence your design choices and help you make work or simply preparing your organization for the future.
more informed decisions. With a breakthrough business model, you may
even become a shaper and transformer of this environment, and set new
standards for your industry.
To get a better grasp on your business model “design space,” we suggest
roughly mapping four main areas of your environment. These are (1) market
forces, (2) industry forces, (3) key trends, and (4) macroeconomic forces.
If you’d like to deepen your analysis of the landscape beyond the simple
mapping we propose, each of these four areas is backed by a large body of
literature and specifi c analytical tools.

!"#$%&'(%)*+(%,,---.33 /012013---2488-67