Page 90 - Grow from Within Mastering Corporate Entrepreneurship and Innovation

Ne w Business Design 77

Table 2-1

Define your target customer If you’re starting with a specific product or concept,
segment(s) and value ask yourself who the target customers really are. If
proposition hypotheses. you’re starting with a vague market idea (e.g., serve
retiring baby boomers), become clearer about who
you mean (e.g., retiring baby boomers moving south
who are not ready for retirement) and their
assumed need.
Explore the business system At the first pass, just let the ideas flow. Don’t worry
to uncover how various dimensions about feasibility. You’ll prioritize and test your ideas
might be changed/designed to after you have the options on the table.
enhance customer value.

Refine and select your You might be overwhelmed by how many ideas you
business system concepts to can create around one central concept.
explore in more detail the range Prioritization in the first session means a simple “gut
of business system ideas. check” regarding which ideas appear to have the
most potential for value creation and differentiation.

Prioritize the uncertainties New ideas present various types of uncertainties, in
related to each innovative concept. the general categories of product (can we make it?),
market (will our target customer buy it?), financial
(how will development be funded?), and
organizational (can I get the internal support
needed?). Uncover and discuss them, emphasizing
your priority ideas. Think particularly about
potential competitive threats or collaborative
opportunities.
Design simple experiments Experiments can be as simple as calling some
and build your action plan to relevant experts for advice or some basic market
resolve the uncertainties and research, or as complex as a major system
refine your knowledge. Create experiment. Your action plan should articulate what
your action plan with learning knowledge you’re hoping to gain.
milestones.
Iterate until you’ve settled on Business system design should occur in parallel with
the right business system product/service development, not as a by-product
for the market. of it.