To simplify your task of setting up and running a business model project this book chunk offers you some useful guidelines that tie all the previous content pieces and tools in this book together.

Enjoy the book chunk and make sure to give us your feedback!

This book chunk is open for comments only during 48 hours, in order to meet our tight publishing schedule and send you the book in time. We need to revise it and ship it to Alan Clark for editing. Then Alan will take care of design. All in all a time-consuming and intensive process.

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Just like all the previous chunks, this one looks great. I didn't intend my feedback to focus solely on the typographical but those are the only revisions I have to suggest. See below. Keep up the great work and good luck with the rest of the book.

In the centre column of page 4 - "you still wont". Shouldn't it be "won't"

Page 10 - "This second phase consist of developing a". Shouldn't it be "consists"?

Page 12 - "taking time for inquiry and exploration of multiple business model idea". Shouldn't it be "ideas"?

In the centre column on Page 13 - "und improve predictability". Shouldn't it be "and"?

Also, "An critical design". Shouldn't it be "A critical design"?

In the first column on Page 15, should "likeliness" be replaced with "likelihood"?

In the first column on Page 16, you write "organize a sporadic workshops" and I am not sure if you should delete "a" or make "workshops" singular.

In the first column on Page 17, should it be "sled" or "slid"?
Perfect. Thanks for pointing this out, Andrew. This shows that there will be a lot to do during proof reading :-D
Even though this chunk hasn't gone through editing by Tim Clark yet, the number of typos are a bit embarrassing... However, it shows how long we have been working on the book and how urgently we want/need to finish it ;-)
Here are some thoughts for consideration...I feel that the wording in the third row under the manage column of page 7 needs revision. Setting up "management structures to monitor, evaluate..." should be part of planning for successful execution, under "Implement". Perhaps this topic could be split with a management planning part included in "Execution" with an "evaluate and adapt" part under the "Evolution" column.

The related wording on page 8 should also reflect the split in addressing management issues, if the proposed change is made.

The rest looks very good to me.

Hmmm... I think we haven't been very clear with our wording. With "management" in the last column we meant long-term management and governance of business models not implementation. "Managing implementation/execution" is short-term and has a different meaning... We will be clearer in the revised version.

Thanks, Jeff!
Excellent chapter again! very nice how you describe the cycle of understand/design/implement en how that's a cycle thats needs to be carefully managed in itself. Oten this perspective, and the willingness to accept it, is lacking...

When I read through the chapter and saw the label 'established company perspective' I expected that another section would follow with a start-up perspective. Will that be in another chapter?

The paragraph on business model portfolio made me think about the succes trap (described by Moss Kanter in a HBR article some years ago) that describes how companies that are very succesfail with their current business model fail to think about new, emerging business models.
Wouter, we first had two perspectives: established company vs. start-up. We changed that despite having it all written - it didn't work very well. Every business model innovation project is sort of entrepreneurial - in established companies there are simply some more constraints...
Here the images from JAM, which will illustrate the five phases:

Page 2
Paragraph 2 is great. You’ve captured the various points of maturity an organization may be at that requires business modeling. This may encourage people to consider where they are at in the lifecycle of their own organizations maturity and how they can apply business modeling.

Paragraph 3 you may want to adjust punctuation from “The process we outline has five phases, which are mobilize, understand, design, implement, and manage.” To “The process we outline has five phases: mobilize, understand, design, implement, and manage.”

Page 4

Paragraph 1 is great. Consider providing the reader with the outcome based on the following statement ‘It is something that can be managed and structured into processes and thus empower an entire organization to leverage its creative potential.’ You go on the mention that there will be a major investment by the organization who adopts business modeling. They need to know the possible and or tangible ROI for that investment.

Paragraph 2 ends with; ‘The design attitude, in contrast, assumes that it is difficult to design a good alternative, but once you have developed a truly great one, the decision about which alternative to select becomes trivial.’ This is very clear and concise. What else it will get the business. Will it make their strategy more sustainable? Will it reduce redundancy and identify gaps. If so, consider make your reader aware of those wins as well.

Paragraph 3 sentence; ‘This design attitude is much less linear and uncertain than the decision attitude that focuses on analysis, decision and optimization.’ Being less linear implies that the design attitude is more abstract. Consider mentioning the advantages of the abstract over the linear approach.

Page 6
The last sentence of paragraph 1 left me feeling a bit defeated when I read this; ‘Also, the last phase, manage, is about continuously managing your business model(s), since we believe that nowadays business models have a much shorter shelf life. Even successful ones must continuously evolve and adapt to the market and its environment.’ On page 4 you’ve stated that business modeling is a major investment. If so, do we want to throw it all away? Even if the business model has a shorter shelf life, there should be some way to extend its longevity which you seem to capture in the last sentence. Consider revamping this sentence to read something like ‘In today’s business climate, it’s assumed that most business models will have a shorter shelf life. However considering the substantial investments a company makes to produce a business model, the life can be extended by continuously managing the evolution of your business model. The management of evolution will determine what is still relevant and what is obsolete.’ This implies to the reader that they can continue to reap from their time investment.

Page 8
The last sentence; ‘One of the biggest dangers in this mobilization phase is that people tend to overestimate the
potential of initial business idea. This may lead a closed mindset as to the exploration of all possible business models until the best one is found.’ This is a great risk you’ve identified. Consider telling your reader, how to mitigate this risk. Since you’ve mentioned it I’m assuming it could hamper the other phases which means the entire project down the road.

Page 9
This is a great page as it gives much information in consumable bites. I would respectfully challenge however another element as necessary in an organization to achieve successful and sustainable business modeling. That is business modeling awareness. This means that those in key positions will need business modeling education and the process must be published to the organization as a whole to achieve buy-in and ongoing support. Without formally adopting business modeling an organization will loose ground when key staff move on to other organizations. It ensures the organization is acting cohesively with the same level of expected outcomes throughout the enterprise.

Page 10
At the end of the second third paragraph, consider sharing the indicators of over-researching. Something like, ‘An indication of over-research is XYZ or ABC. Make your team aware of this risk at the outset and set the expectation that all must agree to identify and avoiding over-researching.’

Page 16
The 2nd paragraph is awesome. I’m soo glad you shared where business modeling should live in an organization. It does seem though that your point is weakened by recommending ‘In addition you should organize sporadic workshops with a cross-organizational team to evaluate your business model.’ Should it really be sporadic? If it’s sporadic it may be well forgotten. Given the last phase is about management of the business model, there is the implication that some regularity should exist. Consider suggesting annual or as needed basis. This should be documented as part of the management process.
Ravila, thanks for the extensive feedback. My take:

p.4, first para: Very good point, I added "The return on this time investment will be a powerful new business model that will assure future growth potential."

Para 3, added: Yet, the inquiry for new and competitive growth models requires such an approach.

p. 6: Nice! I adopted your sentence.

p. 8 last sentence: I added the following para: You should mitigate this risk by continuously testing your business model ideas with people from multiple backgrounds. You may also want to consider organizing a so-called kill/thrill session in which all participants have the task to first brainstorm only on reasons why the idea won’t work for 20 minutes (kill), and subsequently spend 20 minutes only on why the idea will fly (thrill). It’s a powerful way to challenge the fundamentals of an idea.

p. 9: Good point also mentioned by Michael earlier. I added the following, based on Michael's comment: Orienting decision makers: You should spend considerable time orienting and educating decision makers on business models, their importance and the design and innovation process. This is another critical element to gaining buy-in and overcoming resistance to the unknown or not-understood. Depending on the management style in your organization be careful not to emphasize the conceptual aspects of business models too much. Stay practical and package your message in stories and images rather than concepts and theory.

p.10: Good point!

p. 16: Sporadic was a bad choice of wording. A clear language issue. I exchanged it for "regular" ;-)
First of all I really like this chunk. It summarizes everthing in a very nice manner!

I am still looking for a "academic" definition for the term "business model innovation". Would you agree that one could understand business model innovation as the business model design process?

I would like a definition page for the term, alike the one for the definition of "business model" in the book.


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