255 design decide execute inquiry provoke prototype decide decide uncertainty. If you clearly define the uncertainties involved (e.g. new pricing mechanisms, new Distribution Channels), you can prototype and test them in the market to better predict how the model will perform when launched full-scale. } Participatory design Another way to improve the likelihood of having bold ideas adopted and subsequently implemented is to be especially inclusive when assembling the design team. Co- create with people from different business units, different levels of the organizational hierarchy, and different areas of expertise. By integrating comments and concerns from across the organi- zation, your design can anticipate and possibly circumvent implementation roadblocks. } Old versus new One big design question is whether the old and new business models should be separated or integrated into one. The right design choice will greatly affect chances of suc- cess (see Managing Multiple Business Models, p. 232). } Avoid short-term focus One limitation to avoid is a short-term focus on ideas with large first- year revenue potential. Big corporations, in particular, can experience huge absolute growth. A company with annual sales of U.S. $5 billion, for example, generates $200 million in new revenues by growing at the modest rate of four percent. Few breakthrough business models can achieve such revenues during their first year (doing so would require acquiring 1.6 million new customers, each paying an annual fee of $125). Therefore, a longer-term perspective is required when exploring new business models. Otherwise, your organization is likely to miss out on many future growth opportunities. How much do you imagine Google earned in its first year? industry led to a partnership with microfinance institution Grameen Bank, which became the cornerstone of Grameenphone’s business model. Contrary to expert opinion, poor villagers were indeed willing to pay for mobile connectivity, and Grameenphone became Bangladesh’s leading telecommunications provider. Working from the Established Company Perspective } Prevent taming of bold ideas Established organizations tend to water down bold business model ideas. Your challenge is to defend their boldness —while assuring that they won’t face overwhelming obstacles if implemented. To achieve this tricky balance it can be helpful to draw a risk/reward profile of each model. The profile could include questions such as, What is the profit/loss potential? Describe potential conflicts with existing business units. How might this affect our brand? How will existing customers react? This approach can help you clarify and address the uncertainties in each model. The bolder the model, the higher the level of prototype bmgen_final.indd 255 6/15/10 6:00 PM