1. Module 17.3
Business Modeling
Jim Beach & Chris Hanks

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Design
• “….relentless inquiry into the best possible way”
• “….extend the boundaries
of thought”
• “….imagine what does
not exist.”
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Six Tools
1. Customer Insights
2. Ideation - Exercise
3. Visual Thinking
4. Prototyping
5. Storytelling – Exercise
6. Scenarios
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1. Customer Insights
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Customer Insights
• Using customer perspective when designing
products.
• Look at model thru customers’ eyes.
• iPod: in an illegal download era, Apple sees that
people will pay for EASY integration.
• Focus on the NEW customer, Zipcar and easyJet.
• Microsoft moving to Cloud for Office.
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Insights from Empathy Tool
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Empathy Tool
• What does she see? (environment)
• What does she hear? (influencers)
• What does she think, feel? (mind)
• What does she do? (behavior)
• What is their pain? (fears, frustrations, obstacles)
• What does the customer gain? (wants/needs)
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Empathy Tool
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2. Ideation
• Ignoring status quo and suspend concern over
feasibility.
• Not about looking back. Not about competitors!
• Challenging orthodoxies to create new.
• 2 phases: Generation and Synthesis
• 2 starting points: Epicenters and “What if”
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Epicenters
• Resource Driven (Amazon Web Services)
• Offer Driven (Faster Service Cement)
• Customer Driven (At Home DNA Tests)
• Price Driven (Xerox leases instead of sales)
• Multiple Epicenter Driven (one change impacts
several areas)
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What if?
• …furniture came flat?
• …airlines rented their engines?
• …voice calls were free?
• …cars manufacturers sold
mobility?
• …every villager in Bangladesh
had access to a phone?
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Silly Cow
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Silly Cow
Design many business models based on
the cow.
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3. Visual Thinking
Draw your business. Draw client & their environment.
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What if we eliminate the bottom 20% of our business?
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4. Prototyping
• Now that we know we can, HOW do we want to….
• “Business as usual” or incremental change leads
to mediocrity.
• Goal = find groundbreaking models.
• Data, ie market research, is only one input.
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5. Storytelling
• What will office space look like in 2050?
1. Create 3 employees, protagonists.
2. Describe them, their environments in detail.
3. Invent jobs, lives, functions for them based on
future studies.
4. In a story, have them explain how they work.
• Stories start with Customer or Company.
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SuperToast Inc.

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6. Scenarios
1. Different Customer Settings
– How products are used?
– What kinds of customers use products?
– What kinds of desires, concerns, objectives?
– Build on earlier customer insights.
– Scenarios make insights TANGIBLE.
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2. Future Environments
– Not to predict future, but to….
– Imagine possible futures in detail.
– Called “Scenario Planning”
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THANKS!
Buy or Review!
Next: Lesson 17.4
Strategy
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