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make tangible

Directions informed
design

A critical success factor in this phase is questioning industry Working from the Established Company Perspective
assumptions and established business model patterns. The game } Mapping/assessing existing business models Established organizations start with existing 253
console industry was building and selling cutting edge subsidized business models. Ideally, mapping and assessing your current business model should be done in
consoles until the Nintendo Wii overturned commonly accepted separate workshops involving people throughout the organization, at the same time ideas and
assumptions (see p. 82). Questioning assumptions includes opinions for new business models are being collected. This will provide multiple perspectives
exploring the potential of “the low end” of established markets, on the strengths and weaknesses of your business model, and provide the first ideas for new models.
as Scott Anthony points out in The Silver Lining. As you scan } Looking beyond the status-quo It is particularly challenging to see beyond the current business
the environment and assess trends, markets, and competitors, model and business model patterns. Because the status quo is usually the result of a successful
remember that the seeds of business model innovation can be past, it is deeply embedded in organizational culture.
found just about anywhere. } Searching beyond the existing client base Searching beyond your existing client base is critical
when seeking lucrative new business models. Tomorrow’s profit potential may well lie elsewhere.
During the Understanding phase you should also actively seek input } Demonstrate progress Excessive analysis risks losing senior management support due to a
from varied sources, including customers. Start testing preliminary perceived lack of productivity. Demonstrate your progress by describing customer insights or
business model directions early by soliciting feedback on Business showing a series of business model sketches based on what you’ve learned from research.
Model Canvas sketches. Bear in mind, though, that breakthrough
ideas may encounter strong resistance.

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