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Business Model Design Process

In this chapter we tie together the concepts and tools from the book Business model innovation results from one of four objectives:
to simplify the task of setting up and executing a business model (1) to satisfy existing but unanswered market needs, (2) to bring new
design initiative. We propose a generic business model design pro- technologies, products, or services to market, (3) to improve, disrupt,
cess adaptable to your organization’s specific needs. or transform an existing market with a better business model, or
(4) to create an entirely new market.
Every business model design project is unique, and presents its own
challenges, obstacles, and critical success factors. Every organization In longstanding enterprises, business model innovation efforts
starts from a different point and has its own context and objectives typically reflect the existing model and organizational structure.
when it begins addressing an issue as fundamental as its business The effort usually has one of four motivations: (1) a crisis with the
model. Some may be reacting to a crisis situation, some may be seek- existing business model (in some cases a “near death” experience),
ing new growth potential, some may be in startup mode, and still oth- (2) adjusting, improving, or defending the existing model to adapt
ers may be planning to bring a new product or technology to market. to a changing environment, (3) bringing new technologies, products,
244 or services to market, or (4) preparing for the future by exploring
The process we describe provides a starting point upon which just and testing completely new business models that might eventually
about any organization can customize its own approach. Our process replace existing ones.
has five phases: Mobilize, Understand, Design, Implement, and
Manage. We describe each of these phases in a general way, then
revisit them from the perspective of the established organization, as
business model innovation in enterprises already executing on one
or more existing business models requires taking additional factors
into account.

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