Structure for Designing a New Business Model

The following is a basic flow for designing and ultimately validating new business models in the market.

First off a quick primer about the general Process for Business Model Innovation.

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Process for Business Model Innovation

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All of these elements can fit into the overall structure in different ways. For example, Market Research can be used in any of the steps and is essential for unlocking the layers of validation.

Even at the point where a new Canvas is created and the business model is ready to be tested with live customers (Customer Validation), market research plays an essential component.

Similarly, nothing is absolute in this process, so it is important to balance data with some kind of vision through conversations (Conversational Analysis). Just because a potential customer wants (or doesn’t want) something doesn’t mean that piece of ‘data’ is correlated to validation.

The models themselves (Value Prop + BM Canvas) can always be updated, iterated on, and in some cases, scrapped. Many times, there will be moments of going back to the drawing board.

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How To Structure a New Business Model

Design a New Business Model

Value Proposition

Resources: Value Proposition Canvas

Business Model Mockup

Resources: Business Model Canvas

Product Vision

Resources: Customer Development Framework

Prototype

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