165 PrototyPIng desIgn napkin sketch outline and pitch a rough idea draw a simple business model canvas. describe the idea using only key elements. • Outline the idea • Include the Value Proposition • Include the main Revenue Streams elaborated canvas explore what it would take to make the idea work develop a more elabo- rate canvas to explore all the elements needed to make the business model work. • Develop a full Canvas • Think through your business logic • Estimate the market potential • Understand the relationships between Building Blocks • Do some basic fact-checking business case examine the viability of the idea turn the detailed canvas into a spread- sheet to estimate your model’s earning potential. • Create a full Canvas • Include key data • Calculate costs and revenues • Estimate profi t potential • Run fi nancial scenarios based on different assumptions fi eld-test investigate customer acceptance and feasibility you’ve decided on a potential new business model, and now want to fi eld- test some aspects. • Prepare a well-justifi ed business case for the new model • Include prospective or actual customers in the fi eld test • Test the Value Proposi- tion, Channels, pricing mechanism, and/or other elements in the marketplace In architecture or product design, it is easy to understand what is meant by prototyping at different scales, because we are talking about physical artifacts. Architect Frank Gehry and product designer Philippe Starck construct countless prototypes during a project, ranging from sketches and rough models to elaborate, full-featured prototypes. We can apply the same scale and size varia- tions when prototyping business models, but in a more conceptual way. A business model prototype can be anything from a rough sketch of an idea on a napkin to a detailed Business Model Canvas to a fi eld-testable busi- ness model. You may wonder how all of this is any differ- ent from simply sketching out business ideas, something any businessperson or entrepreneur does. Why do we need to call it “prototyping”? There are two answers. First, the mindset is different. Second, the Business Model Canvas provides structure to facilitate exploration. Business model prototyping is about a mindset we call “design attitude.” It stands for an uncompromising commitment to discovering new and better business models by sketching out many prototypes —both rough and detailed—representing many strategic options. It’s not about outlining only ideas you really plan to imple- ment. It’s about exploring new and perhaps absurd, even impossible ideas by adding and removing elements of each prototype. You can experiment with prototypes at different levels. Prototypes at Different Scales 165 bmgen_final.indd 165 6/15/10 5:43 PM