Business Design: The Critical Skill for Future Success

Business Design: The Critical Skill for Future Success

Design Thinking alone is no longer enough. In recent years, the popularity of Design Thinking and similar methods such as design sprints has increased, providing entrepreneurs and managers with effective tools to create products and services that are more focused on the needs of users. These methods have been successful in generating customer desirability. However, they tend to fall short in terms of developing a sustainable business model. This is where Business Design comes in as a solution to this issue.

A business concept alone does not constitute a complete business model.

The importance of Business Design has been increasing in recent years, with the publication of several influential books focusing on creating and developing business models. This trend has gained significant attention, especially in the startup scene. While the business model has always been an important aspect of running a business, the emergence of startups, rapidly changing markets, and evolving technology has made it more urgent to develop innovative business models and reevaluate traditional ones. The lifespan of old business models has shortened due to these circumstances, with technological advancements allowing for lean implementation and quick changes that traditional R&D cycles cannot keep up with.

Business Design provides the necessary tools and methods to develop and test a business model, while also ensuring that a service is not just a marketing stunt, but rather a sustainable business.

complete business model diagram

Here are four definitions of Business Design:

  • It involves utilizing design methods and processes to develop and innovate business models.
  • It focuses on the creation and capturing of value.
  • Business Design converts a value proposition into tangible business value.
  • It entails comprehending new value creation by adopting a relational perspective.
Business Design diagram

The Business Design process.

The process of Business Design involves a systematic approach that prioritizes articulating assumptions, testing with prototypes, iterating, and fast learning. Typically, this process involves the following three steps:

  1. Gain an understanding of the market, its players, constituents, and forces, and articulate assumptions by translating cross-industry best practices.
  2. Create a prototype of the business model, evaluate it, and identify the most critical assumptions.
  3. Test the model, learn from the results, and iterate.

In our daily work, we collaborate closely with service designers and software developers in teams to seamlessly integrate our business model with the value proposition of our product.

In conclusion, Business Design offers entrepreneurs and managers a creative perspective to rethink and advance their business model. This systematic approach enables them to test the feasibility of new ideas with limited resources. Moving forward, this ability to think innovatively about business models and quickly adapt to an accelerating market will be a crucial skill for achieving success.