Business Design is an agile innovation management approach that works best when you are confronted with many uncertainties while building something new. Irrespective of whether you are about to develop a new business model, product, service or software application, the Business Design approach guides you through a structured but flexible innovation journey and helps you find your next big opportunity beyond the resources you currently control. We usually implement Business Design as an essential ingredient of a modern innovation management system. Have a look at this illustration to understand what this may include.
The Business Design approach consists of five key elements, which support you to become a successful innovator. All elements will be described in this knowledge base:
Business Design is based on the idea of an agile learning process to create innovation. What does that mean? We don't believe that successful innovation (which is defined as something "new" the world hasn't seen before) can be build in a traditional business development approach in which project teams go through a linear process of learning (= market research through customer surveys), planning (= business case modeling), decision-making (= management decision to allocate budget), building (e.g. burning the budget until it is gone) and finally launch the innovation on the market.
The likelihood, however, is very little that both the project team and the management were able to anticipate the future and hit the bull's eyes with their decisions. The world is fast, customer's behaviour diverse and uncertainties high (by the way, "uncertainties" are not "risks", since risks are controllable and somewhat predictable). This is why Business Design puts the traditional development process upside down and turns it into an agile development and learning process.
Through short iterations, a project team enabled and facilitated by by an experienced coach quickly makes progress with tangible results and reduces uncertainties through systematic learning. The management (= project sponsor) is invited to make decisions not only once but many times throughout the journey to literally steer an innovation project to the market - step by step.
In every project or training, we spend considerable time in introducing Business Design to the participants. Here is the storyline we often use in such situations. And also helpful could be the comparison of Business Design to other popular approaches in the innovation management arena, such as Design Thinking or Lean Startup. Read more about our Business Design guiding principles here. And there are even more success factors that we need to get right in order to succeed with Business Design. By the way, the often quoted statement "Fail often, fail early" is NOT what we practice. In Business Design, we are eager to learn and we strive to succeed. Failures may happen but are never our intention!
- Ries, E.: Lean Startup, Currency (Amazon)
- Schrage, M.: Serious Play, Harvard (Amazon)
- Schrage, M.: The Innovator's Hypothesis, MIT (Amazon)
- Newport, C.: Deep work (Amazon)
- Osterwalder, A. & Pigneur, Y.: Business Model Generation (Amazon)
- Humble, J., Molesky, J. & O'Reilly, B.: Lean Enterprises: How High Performance Organizations Innovate at Scale, O'Reilly (Amazon)
- Maurya, A.: Running Lean, O'Reilly (Amazon)
- Roam, D.: Blah, Blah, Blah: What do we do when words don't work, Marshall Cavendish (Amazon)
- Kawasaki, G: The Art of the Start 2.0 (Amazon)
ps: One of our secret weapons is our "Anti-Bullsh*t Spray" (filled with fragrance). Use it vigorously whenever you detect a source of bullsh*t. Consider also the W.A.I.T. ("Why Am I Talking?") principle in your next meetings or workshops. It's magic!
Business Design is an agile innovation management approach that works best when you are confronted with many uncertainties while building something new.