PrototyPIng desIgn 163 Businesspeople are likely to display one of two reactions to this process of business model inquiry. Some might say, "Well, that is a nice idea, if we only had the time to explore different options." Others might say that a market research study would be an equally good way to come up with new business models. Both reactions are based on dangerous preconceptions. The fi rst supposes that “business as usual” or incremental improvements are suffi cient to survive in today’s competitive environment. We believe this path leads to mediocrity. Businesses that fail to take the time to develop and prototype new, ground- breaking business model ideas risk being sidelined or overtaken by more dynamic competitors—or by insurgent challengers appearing, seemingly, from nowhere. The second reaction assumes that data is the most important consideration when designing new strategic options. It is not. Market research is a single input in the long and laborious process of prototyping powerful new business models with the potential to outperform competitors or develop entirely new markets. Where do you want to be? At the top of the game, because you’ve taken the time to prototype powerful new business models? Or on the sidelines, because you were too busy sustaining your existing model? We're convinced that new, game-changing business models emerge from deep and relentless inquiry. old thinking few business models dominate an industry outside-in: industry defi nes business models linear thinking early choice of business model implementation-focused effi ciency-focused new thinking multiple business models in and across industries inside-out: business models transform industries opportunistic thinking exploratory search for business model design-focused Value- and effi ciency-focused old old old thinking old thinking thinking thinking thinking thinking old old thinking thinking thinking thinking thinking old thinking thinking thinking thinking thinking thinking thinking thinking thinking thinking thinking thinking thinking thinking thinking thinking thinking old old old thinking old old thinking thinking thinking old old old thinking thinking thinking old old old thinking thinking old old thinking thinking thinking thinking old old thinking thinking thinking old old thinking thinking thinking thinking old old old old old old old old thinking old old old old old old old old thinking thinking thinking thinking thinking thinking thinking thinking thinking thinking thinking thinking thinking thinking old old thinking old old old thinking thinking old thinking old old thinking thinking old thinking old thinking thinking thinking thinking thinking thinking thinking thinking thinking thinking thinking thinking thinking few business models dominate an industry dominate an industry few business models dominate an industry dominate an industry dominate an industry outside-in: industry defi nes business models business models outside-in: industry defi nes business models outside-in: industry defi nes linear thinking linear thinking linear thinking linear thinking linear thinking early choice of business early choice of business model implementation-focused implementation-focused implementation-focused implementation-focused implementation-focused effi ciency-focused effi ciency-focused effi ciency-focused effi ciency-focused effi ciency-focused bmgen_final.indd 163 6/15/10 5:43 PM