Blogroll / Business models

Three options to create value for the business and for the society

You and your organisation have three options to create value.

PROCESSES

The first option is that you concentrate on the processes in your organization. You’ll try to increase productivity. The latest research says you have to concentrate on the collective productivity.

BETTER PRODUCTS/SERVICES

The second option is that you focus on better products or services. Either you are really genius innovator or you have a capable product and service design team. And you hope that design will produce value. Again, research says, you’ll need not just a strong design team, but also in-house design management. Marty Neumeier in his book The Designful Company: How to Build a Culture of Nonstop Innovation expressed clear confidence that design management is never to be outsourced. Do you have design management in your organisation? Yes, you do, Everything you do, was and is designed at some point. If interested find more on the scope of design management. But Neumeier at the same time that writes that many of the design skills should always be outsourced. And if you think your organisation should connect the strategy, design strategy and design management – study the design management staircase first. Follow your design innovations path.

BUSINESS MODELS – WAYS OF DOING BUSINESS

And the third option is that you design new innovative business models. This is the most difficult one. Because new model is likely to destroy your old one. And without leadership to support your business model innovation, it’s not very likely you’ll succeed.

The key to business success is an innovative CEO who sees design as an investment, not as a cost, and a design strategy director or consultant who can place the value of design at the centre of the company.

We know from the history, that design management took responsibility to design the new business models.

innovation-framework-3

Source: Model behavior. 20 Business model innovations for sustainability report

The good news is, all three options

  • processes – design better internal system, f. e. increase collective productivity;
  • new products and/or services, new strategic product design and service design;
  • new business models – new ways of doing business, f.e. establish business model innovation group in your organisation with strong leadership support;

are not linearly connected but are rather independent from each other. Without any doubt, though: business model innovation brings the strongest value not only to business but also to the society. For the change of your business model to happen, you’ll first need to change the language. And this is the only guarantee that we give you at our workshops – you’ll learn the new language of business model design. Visit the next one in Vienna.

Marko Savić
I’m raising awareness of the connection of business model innovation with design thinking. Have just published a book on business models design. You may wish to meet me in person at my next event or interact with me on Twitter.

Workshop: Business model design: Wien

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