253 informed design make tangible Directions Working from the Established Company Perspective } Mapping/assessing existing business models Established organizations start with existing business models. Ideally, mapping and assessing your current business model should be done in separate workshops involving people throughout the organization, at the same time ideas and opinions for new business models are being collected. This will provide multiple perspectives on the strengths and weaknesses of your business model, and provide the first ideas for new models. } Looking beyond the status-quo It is particularly challenging to see beyond the current business model and business model patterns. Because the status quo is usually the result of a successful past, it is deeply embedded in organizational culture. } Searching beyond the existing client base Searching beyond your existing client base is critical when seeking lucrative new business models. Tomorrow’s profit potential may well lie elsewhere. } Demonstrate progress Excessive analysis risks losing senior management support due to a perceived lack of productivity. Demonstrate your progress by describing customer insights or showing a series of business model sketches based on what you’ve learned from research. A critical success factor in this phase is questioning industry assumptions and established business model patterns. The game console industry was building and selling cutting edge subsidized consoles until the Nintendo Wii overturned commonly accepted assumptions (see p. 82). Questioning assumptions includes exploring the potential of “the low end” of established markets, as Scott Anthony points out in The Silver Lining . As you scan the environment and assess trends, markets, and competitors, remember that the seeds of business model innovation can be found just about anywhere. During the Understanding phase you should also actively seek input from varied sources, including customers. Start testing preliminary business model directions early by soliciting feedback on Business Model Canvas sketches. Bear in mind, though, that breakthrough ideas may encounter strong resistance. bmgen_final.indd 253 6/15/10 5:59 PM