Steps To Systematically Innovate Your Business Model

Why: We want to inform you about what tools are available to innovate your own business model.

Creativity is thinking up new things. Innovation is doing new things.

Theodore Levitt (1925 – 2006), Renown economist

In a flash, here is how you go about innovating your business model!

In Short

The problem is the implementation of such models. Then, in retrospect, we can study each innovative business model that disrupted the market and the whole industry.

The question is that knowing all how it can turn out, would you implement and realize it?

Tricky right? We all have different assets and capabilities; therefore, you will be using a different strategy to implement the actions even to achieve the same effect. This is, in essence ‘Strategic thinking.’

Today, we will look at some helpful frameworks that will help us innovate our business model.

1. The Solution lies in Speed and Leanness

Using the following frameworks will benefit from a minimized effort to find what works in the real market. Here are those 2 approaches:

1. Lean Startup: hypothesis-driven approach
   • Create value for customer first
   • Identify the value stream
   • Create flow of value stream
   • Pulled by customer demand
   • Pursue perfection by iteration <- eliminating waste of over development
2. Agile
   • Rely on the ability to accomodate and adapt to changes in dynamic environment.
   • “Apply previous knowledge while adapt newly learned facts”
   • Note that all communications and develoments are LEAN too.

2. Start with customer

Suppose you are still in the ideation phase. In that case, we suggest using the ‘Design Thinking process to identify customer problems before actually attempting to build a prototype with a Lean startup and Agile methodology.

3. Out in the field

The name of the game is ‘understanding customers from their point of view.’

Shifting from ‘Product-focus’ to ‘Problem-focus’

This is where the Design Thinking process can come in handy. As it asks members to

• Reflect true understanding of customers
• Redefine brand identity
• Focus not on solution but on an understanding of their problems

Lastly, DO NOT ASK!

This is a mistake because many of us do not really know what we want as a solution. You are the expert; you should do better than the customers! If you also have no idea, the best shot is to observe how they interact with the given solution!

If I had asked people what they wanted, they would have said faster horses.

Henry Ford

Conclusion

Lean startup and Agile will help you iterate and learn from customers directly. Focus on helping out customers and less on pushing out new features that they didn’t ask for.

Go to GEMBA!