248 The business model design process we propose has five phases: Mobilize, Understand, Design, Implement, and Manage. As previ- ously mentioned, the progression through these phases is rarely as linear as depicted in the table on the right. In particular, the Understanding and Design phases tend to proceed in parallel. Busi- ness model prototyping can start early in the Understanding phase, in the form of sketching preliminary business model ideas. Similarly, prototyping during the design phase may lead to new ideas requiring additional research—and a revisiting of the Understand phase. Finally, the last phase, Manage, is about continuously managing your business model(s). In today’s climate, it’s best to assume that most business models, even successful ones, will have a short lifespan. Considering the substantial investment an enterprise makes in producing a business model, it makes sense to extend its life through continuous management and evolution until it needs complete rethinking. Management of the model’s evolution will determine which components are still relevant and which are obsolete. For each process phase we outline the objective, the focus, and which content in Business Model Generation supports that phase. Then we outline the five phases in more detail, and explain how the circumstances and focus can change when you are working with an existing business model in an established organization. 5 Phases Mobilize Understand Design Implement Manage objective Prepare for a successful business model design project Research and analyze elements needed for the business model design eΩort Generate and test viable business model options, and select the best Implement the business model prototype in the field Adapt and modify the business model in response to market reaction focus Setting the stage Immersion Inquiry Execution Evolution description Assemble all the elements for successful business model design. Create awareness of the need for a new business model, describe the motivation behind the project, and establish a common language to describe, design, and analyze and discuss business models. You and the business model design team immerse yourselves in relevant knowledge: custom- ers, technology, and environment. You collect information, interview experts, study potential cus- tomers, and identify needs and problems. Transform the information and ideas from the previous phase into business model prototypes that can be explored and tested. After an intensive business model inquiry, select the most satisfac- tory business model design. Implement the selected business model design. Set up the management struc- tures to continuously monitor, evaluate, and adapt or transform your business model. book sections • Business Model Canvas (p. 44) • Storytelling (p. 170) • Business Model Canvas (p. 44) • Business Model Patterns (p. 52) • Customer Insights (p. 126) • Visual Thinking (p. 146) • Scenarios (p. 180) • Business Model Environment (p. 200) • Evaluating Business Models (p. 212) • Business Model Canvas (p. 44) • Business Model Patterns (p. 52) • Ideation (p. 134) • Visual Thinking (p. 146) • Prototyping (p. 160) • Scenarios (p. 180) • Evaluating Business Models (p. 212) • Business Model Perspective on Blue Ocean Strategy (p. 226) • Managing Multiple Business Models (p. 232) • Business Model Canvas (p. 44) • Visual Thinking (p. 146) • Storytelling (p. 170) • Managing Multiple Business Models (p. 232) • Business Model Canvas (p. 44) • Visual Thinking (p. 146) • Scenarios (p. 180) • Business Model Environment (p. 200) • Evaluating Business Models (p. 212) bmgen_final.indd 248 6/15/10 5:45 PM