BM.4 Generate business model concepts at the big picture level

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OVERVIEW

The aim of this activity is to generate a number of business model concepts at the ‘big picture’ level.

INPUT

• New business strategy from the activity ST.14 Pitch the new business strategy to the CEO.

• Results of In-Depth Assessment from the activities BM.2 Gather additional data on the business model and BM.3 Gather additional data on operational performance.

Ideas for individual building blocks – if taking a ‘Bottom-up’ approach from the step Generating ideas at the individual building block level.

OUTPUT

At least three alternative business model concepts. This output is used in the activity: Throughout the step: Generating ideas at the individual building block level – if taking a ‘Top- down’ approach. Throughout the step: Evaluate the business model concepts and select one to pitch.

TEMPLATE

HOW TO GO ABOUT IT

The starting point for generating ideas depends on the overall approach you are taking – ‘Top-down’ or ‘Bottom-up’. Instructions for both approaches are provided below.

If you are taking a ‘Top-down’ approach to business model innovation:

1.

Start by deciding if there any blocks of the current business
model canvas that you do not want to change due to particular constraints. For instance, if the company has recently made a large investment in a new production line, they are not likely to want to change that at this point. Alternatively, it could be that the company has a unique strength that is hard to replicate and should therefore be retained in the new business model, such as a strong brand or a competency in mass customization. With the relevant building blocks ‘frozen’, you can focus on the opportunities for innovation in the remaining building blocks.

2.

If you are struggling to generate novel ideas, try introducing some of the ‘business model patterns’ described in the Background information which can be used as inspiration.

3.

Once you have completed one business model repeat the process until you have at least three alternative business model concepts.

If you are taking a ‘Bottom-up’ approach:

1.

You should already have some ideas for operational level innovations that could help to eliminate/enhance a sustainability hotspot. Start by filling in the relevant block of the canvas based on the operational level idea that you have.

2.

Try to complete the rest of the canvas in a way that is consistent with the change you have made in the first block.

3.

Once you have completed one business model repeat the process until you have at least three alternative business model concepts.

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