252 Understanding 1 2 3 4 5 Scanning, though, is inevitably accompanied by the risk of over- researching. Make your team aware of this risk at the outset and ensure that everyone agrees to avoid excessive researching. “Analysis paralysis” can also be avoided by prototyping business models early on (see Prototyping, p. 160). This has the added benefit of allowing you to quickly collect feedback. As mentioned earlier, research, under- standing, and designing go hand in hand, and the boundaries separat- ing them are often unclear. During research, one area that deserves careful attention is develop- ing deep knowledge of the customer. This sounds obvious, but it is often neglected, particularly in technology-focused projects. The Customer Empathy Map (see p. 131) can serve as a powerful tool to help you structure customer research. One common challenge is that the Customer Segment is not necessarily clear from the outset. A technology “still in search of a problem to solve” may be applicable in several different markets. This second phase consists of developing a good understanding of the context in which the business model will evolve. Scanning the business model environment is a mix of activities, including market research, studying and involving customers, interviewing domain experts, and sketching out competitor business models. The project team should immerse itself in the necessary materials and activities to develop a deep understanding of the business model “design space.” activities • Scan environment • Study potential customers • Interview experts • Research what has already been tried (e.g. examples of failures and their causes) • Collect ideas and opinions critical success factors • Deep understanding of potential targ et markets • Looking beyond the traditional boundaries defining target markets key dangers • Over-researching: disconnect between research and objectives • Biased research because of precom- mitment to a certain business idea Research and analyze the elements needed for the business model design effort Understanding bmgen_final.indd 252 6/15/10 5:59 PM