{"id":667,"date":"2018-12-08T16:31:48","date_gmt":"2018-12-08T14:31:48","guid":{"rendered":"https:\/\/www.dazzlepop.net\/site\/?p=667"},"modified":"2018-12-08T16:31:48","modified_gmt":"2018-12-08T14:31:48","slug":"why-business-design-is-the-most-important-skill-of-the-future","status":"publish","type":"post","link":"https:\/\/www.dazzlepop.net\/site\/why-business-design-is-the-most-important-skill-of-the-future\/","title":{"rendered":"Why Business Design is the Most Important Skill of the Future"},"content":{"rendered":"<div style=\"text-align:center\"><\/div><p id=\"ae83\" class=\"graf graf--p graf--hasDropCapModel graf--hasDropCap graf-after--h3\"><span class=\"graf-dropCap\">T<\/span>he times of pure\u00a0<a class=\"markup--anchor markup--p-anchor\" href=\"https:\/\/medium.com\/tag\/design-thinking\" target=\"_blank\" rel=\"noopener\" data-href=\"https:\/\/medium.com\/tag\/design-thinking\">Design Thinking<\/a>\u00a0are over: Certainly, the last years have seen the rise of Design Thinking and similar processes (most lately\u00a0<a class=\"markup--anchor markup--p-anchor\" href=\"http:\/\/www.gv.com\/sprint\/\" target=\"_blank\" rel=\"noopener\" data-href=\"http:\/\/www.gv.com\/sprint\/\">design sprints<\/a>) that help entrepreneurs and managers to create more user-centered products and services. They are great tools to spawn desirability in customers. Nevertheless, they often fall short in creating a sustainable business model. Business Design is the remedy to this problem.<\/p>\n<figure id=\"3a42\" class=\"graf graf--figure graf-after--p\">\n<div class=\"aspectRatioPlaceholder is-locked\">\n<div class=\"aspectRatioPlaceholder-fill\"><\/div>\n<div class=\"progressiveMedia js-progressiveMedia graf-image is-canvasLoaded is-imageLoaded\" data-image-id=\"1*ey53eFR_-Vp0xHkoCI_zxA.png\" data-width=\"338\" data-height=\"276\" data-scroll=\"native\"><canvas class=\"progressiveMedia-canvas js-progressiveMedia-canvas\" width=\"75\" height=\"60\"><\/canvas><img decoding=\"async\" class=\"progressiveMedia-image js-progressiveMedia-image\" src=\"https:\/\/cdn-images-1.medium.com\/max\/1600\/1*ey53eFR_-Vp0xHkoCI_zxA.png\" data-src=\"https:\/\/cdn-images-1.medium.com\/max\/1600\/1*ey53eFR_-Vp0xHkoCI_zxA.png\" \/><\/div>\n<\/div><figcaption class=\"imageCaption\">Fig. 1\u200a\u2014\u200aInnovation happens at the intersection of business (viability), design (desirability) and tech (feasability)<\/figcaption><\/figure>\n<h3 id=\"c9b2\" class=\"graf graf--h3 graf-after--figure\">A business idea is not yet a business\u00a0model<\/h3>\n<p id=\"66d1\" class=\"graf graf--p graf-after--h3\">Business Design is on the rise. In the last years a series of\u00a0<a class=\"markup--anchor markup--p-anchor\" href=\"https:\/\/www.businessdesign.digital\/\" target=\"_blank\" rel=\"noopener\" data-href=\"https:\/\/www.businessdesign.digital\/\">influential books<\/a>\u00a0has been published with a clear focus on the creation and development of business models. They got special notice in the startup scene and beyond.<\/p>\n<figure id=\"50f7\" class=\"graf graf--figure graf-after--p\">\n<div class=\"aspectRatioPlaceholder is-locked\">\n<div class=\"aspectRatioPlaceholder-fill\"><\/div>\n<div class=\"progressiveMedia js-progressiveMedia graf-image is-canvasLoaded is-imageLoaded\" data-image-id=\"1*lE-bJ4El2o_OD0ALzvnpcg.png\" data-width=\"745\" data-height=\"468\" data-action=\"zoom\" data-action-value=\"1*lE-bJ4El2o_OD0ALzvnpcg.png\" data-scroll=\"native\"><canvas class=\"progressiveMedia-canvas js-progressiveMedia-canvas\" width=\"75\" height=\"46\"><\/canvas><img decoding=\"async\" class=\"progressiveMedia-image js-progressiveMedia-image\" src=\"https:\/\/cdn-images-1.medium.com\/max\/1600\/1*lE-bJ4El2o_OD0ALzvnpcg.png\" data-src=\"https:\/\/cdn-images-1.medium.com\/max\/1600\/1*lE-bJ4El2o_OD0ALzvnpcg.png\" \/><\/div>\n<\/div><figcaption class=\"imageCaption\">Fig. 2\u2014 Business Design uses a special skill set and information on the status quo to develop a business model. (This is the first of a series of representations of Business Design throughout the article that are based on discussions among Business Designers at our company.)<\/figcaption><\/figure>\n<p id=\"e63a\" class=\"graf graf--p graf-after--figure\">The business model has always been an important part of doing business, but recently the designing of businesses got a new urgency. It is the advance of startups, quickly changing markets, and evolving technological possibilities that make it ever more important to develop innovative business models and rethink traditional ones. These circumstances shorten the time that old business models can stay viable. Today there are technological opportunities that enable lean implementation of business models and make them change too fast for the long cycles of traditional R&amp;D.<\/p>\n<p id=\"390c\" class=\"graf graf--p graf-after--p\">Business Design provides the tools and methods to develop and test a business model. At the same time it makes the difference between a service that is just a marketing stunt and one that is a sustainable business.<\/p>\n<figure id=\"04a5\" class=\"graf graf--figure graf-after--p\">\n<div class=\"aspectRatioPlaceholder is-locked\">\n<div class=\"aspectRatioPlaceholder-fill\"><\/div>\n<div class=\"progressiveMedia js-progressiveMedia graf-image is-canvasLoaded is-imageLoaded\" data-image-id=\"1*cwlxAgS-ADSZcY4SgTGRyA.png\" data-width=\"494\" data-height=\"360\" data-scroll=\"native\"><canvas class=\"progressiveMedia-canvas js-progressiveMedia-canvas\" width=\"75\" height=\"53\"><\/canvas><img decoding=\"async\" class=\"progressiveMedia-image js-progressiveMedia-image\" src=\"https:\/\/cdn-images-1.medium.com\/max\/1600\/1*cwlxAgS-ADSZcY4SgTGRyA.png\" data-src=\"https:\/\/cdn-images-1.medium.com\/max\/1600\/1*cwlxAgS-ADSZcY4SgTGRyA.png\" \/><\/div>\n<\/div><figcaption class=\"imageCaption\">Fig. 3\u2014 The tools and methods of Business Design can be ordered on two axes to create a 2&#215;2 matrix\u200a\u2014\u200aone of our favorite\u00a0charts.<\/figcaption><\/figure>\n<p id=\"414a\" class=\"graf graf--p graf-after--figure\">There are the first schools that offer programs in Business Design (e.g.\u00a0<a class=\"markup--anchor markup--p-anchor\" href=\"https:\/\/www.idbm.aalto.fi\/\" target=\"_blank\" rel=\"noopener\" data-href=\"https:\/\/www.idbm.aalto.fi\/\">International Design Business Master<\/a>\u00a0at Aalto University in Helsinki,\u00a0<a class=\"markup--anchor markup--p-anchor\" href=\"https:\/\/www.udk-berlin.de\/en\/courses\/leadership-in-digital-communication\/\" target=\"_blank\" rel=\"noopener\" data-href=\"https:\/\/www.udk-berlin.de\/en\/courses\/leadership-in-digital-communication\/\">Leadership in Digital Communication<\/a>\u00a0at Berlin University of Arts)\u200a\u2014\u200abut by large it is still a developing field and scarcely formalised.<\/p>\n<h3 id=\"293b\" class=\"graf graf--h3 graf-after--p\">Business Design\u200a\u2014\u200afour working definitions<\/h3>\n<p id=\"fb11\" class=\"graf graf--p graf-after--h3\">Following that openness, I will not give a fixed definition of Business Design but present variations that we use in in our daily work at\u00a0<a class=\"markup--anchor markup--p-anchor\" href=\"http:\/\/si-labs.com\/\" target=\"_blank\" rel=\"noopener\" data-href=\"http:\/\/si-labs.com\">Service Innovation Labs<\/a>.<\/p>\n<p id=\"3100\" class=\"graf graf--p graf-after--p\">Business Design\u00a0\u2026<\/p>\n<ul class=\"postList\">\n<li id=\"b3cf\" class=\"graf graf--li graf-after--p\">is the application of design methods and processes on the development and innovation of business models.<\/li>\n<li id=\"2245\" class=\"graf graf--li graf-after--li\">is about value creation and value capturing.<\/li>\n<li id=\"6c12\" class=\"graf graf--li graf-after--li\">transforms a value proposition into real business value.<\/li>\n<li id=\"1a10\" class=\"graf graf--li graf-after--li\">making sense of new value creation by thinking in relations.<\/li>\n<\/ul>\n<figure id=\"f24e\" class=\"graf graf--figure graf-after--li\">\n<div class=\"aspectRatioPlaceholder is-locked\">\n<div class=\"aspectRatioPlaceholder-fill\"><\/div>\n<div class=\"progressiveMedia js-progressiveMedia graf-image is-canvasLoaded is-imageLoaded\" data-image-id=\"1*Z18xHAyGaI7VN2gx_cFS4w.png\" data-width=\"746\" data-height=\"376\" data-action=\"zoom\" data-action-value=\"1*Z18xHAyGaI7VN2gx_cFS4w.png\" data-scroll=\"native\"><canvas class=\"progressiveMedia-canvas js-progressiveMedia-canvas\" width=\"75\" height=\"37\"><\/canvas><img decoding=\"async\" class=\"progressiveMedia-image js-progressiveMedia-image\" src=\"https:\/\/cdn-images-1.medium.com\/max\/1600\/1*Z18xHAyGaI7VN2gx_cFS4w.png\" data-src=\"https:\/\/cdn-images-1.medium.com\/max\/1600\/1*Z18xHAyGaI7VN2gx_cFS4w.png\" \/><\/div>\n<\/div><figcaption class=\"imageCaption\">Fig. 3\u200a\u2014\u200aBusiness Design realizes a value proposition in the system of production, distribution, customer benefit, and\u00a0price.<\/figcaption><\/figure>\n<h3 id=\"0d05\" class=\"graf graf--h3 graf-after--figure\">The Business Design\u00a0process<\/h3>\n<p id=\"29c8\" class=\"graf graf--p graf-after--h3\">Business Design is foremost a new systematic approach. It is based on articulating assumptions, testing with prototypes, iteration and fast learning. Usually we follow these three steps:<\/p>\n<ol class=\"postList\">\n<li id=\"d9ec\" class=\"graf graf--li graf-after--p\">Understand the market, its players, constituents and forces; translate cross-industry best practices and articulate assumptions.<\/li>\n<li id=\"1ff5\" class=\"graf graf--li graf-after--li\">Develop a business model prototype, evaluate it and identify the most critical assumptions.<\/li>\n<li id=\"3042\" class=\"graf graf--li graf-after--li\">Test your model, learn, and iterate.<\/li>\n<\/ol>\n<p id=\"5a91\" class=\"graf graf--p graf-after--li\">In our daily work we closely collaborate in teams with service designers and software developers to deeply integrate our business model with the value proposition of our product.<\/p>\n<figure id=\"63af\" class=\"graf graf--figure graf-after--p\">\n<div class=\"aspectRatioPlaceholder is-locked\">\n<div class=\"aspectRatioPlaceholder-fill\"><\/div>\n<div class=\"progressiveMedia js-progressiveMedia graf-image is-canvasLoaded is-imageLoaded\" data-image-id=\"1*PWsail3iNrakvJN4c7s55g.png\" data-width=\"473\" data-height=\"245\" data-scroll=\"native\"><canvas class=\"progressiveMedia-canvas js-progressiveMedia-canvas\" width=\"75\" height=\"38\"><\/canvas><img decoding=\"async\" class=\"progressiveMedia-image js-progressiveMedia-image\" src=\"https:\/\/cdn-images-1.medium.com\/max\/1600\/1*PWsail3iNrakvJN4c7s55g.png\" data-src=\"https:\/\/cdn-images-1.medium.com\/max\/1600\/1*PWsail3iNrakvJN4c7s55g.png\" \/><\/div>\n<\/div><figcaption class=\"imageCaption\">Fig. 4\u200a\u2014\u200aBusiness Design (1) analyzes outside-in capabilities and inside-out opportunities, (2) iterates with research, synthesis, concept and test, and (3) structures and orchestrate process and progress.<\/figcaption><\/figure>\n<h3 id=\"bab1\" class=\"graf graf--h3 graf-after--figure\">Conclusion<\/h3>\n<p id=\"dc8b\" class=\"graf graf--p graf-after--h3\">Business Design provides a perspective to entrepreneurs and managers to think creatively about their business model and develop it further. The systematic approach allows to test the viability of new ideas with few resources. In the future this will be the critical competence that decides on success in an accelerating market.<\/p>\n<p id=\"88d4\" class=\"graf graf--p graf-after--p\">At the same time, Business Design is still a developing field. Join the discussion and tell us in the comments:<\/p>\n<blockquote id=\"1ac3\" class=\"graf graf--pullquote graf-after--p\"><p>What is your (working) defintion of Business\u00a0Design?<\/p><\/blockquote>\n<p id=\"936a\" class=\"graf graf--p graf-after--pullquote\"><a class=\"markup--anchor markup--p-anchor\" href=\"https:\/\/medium.muz.li\/why-the-right-mindset-is-crucial-to-becoming-a-successful-business-designer-c554396776ad\" target=\"_blank\" rel=\"noopener\" data-href=\"https:\/\/medium.muz.li\/why-the-right-mindset-is-crucial-to-becoming-a-successful-business-designer-c554396776ad\">Read the next article in the series &gt;<\/a><\/p>\n<h3 id=\"3ef2\" class=\"graf graf--h3 graf-after--p\">Further Readings<\/h3>\n<p id=\"5654\" class=\"graf graf--p graf-after--h3\">I collected a list of books that made contributions to the shaping of Business Design. For more book recommendations see my\u00a0<a class=\"markup--anchor markup--p-anchor\" href=\"http:\/\/www.businessdesign.digital\/\" target=\"_blank\" rel=\"noopener\" data-href=\"http:\/\/www.businessdesign.digital\">list of Business Design books<\/a>.<\/p>\n<ul class=\"postList\">\n<li id=\"ab63\" class=\"graf graf--li graf-after--p\"><a class=\"markup--anchor markup--li-anchor\" href=\"https:\/\/amzn.to\/2pHCjAf\" target=\"_blank\" rel=\"noopener\" data-href=\"https:\/\/amzn.to\/2pHCjAf\">Business Model Generation<\/a>, Alexander Osterwalder\u200a\u2014\u200a<a class=\"markup--user markup--li-user\" href=\"https:\/\/medium.com\/@AlexOsterwalder\" target=\"_blank\" rel=\"noopener\" data-href=\"https:\/\/medium.com\/@AlexOsterwalder\" data-anchor-type=\"2\" data-user-id=\"557c2c577ab5\" data-action-value=\"557c2c577ab5\" data-action=\"show-user-card\" data-action-type=\"hover\">Alex Osterwalder<\/a>publicized the Business Model Canvas as an easy way to draft and iterate your business model.<\/li>\n<li id=\"12ab\" class=\"graf graf--li graf-after--li\"><a class=\"markup--anchor markup--li-anchor\" href=\"https:\/\/amzn.to\/2I2OAG6\" target=\"_blank\" rel=\"noopener\" data-href=\"https:\/\/amzn.to\/2I2OAG6\">Lean Startup<\/a>, Eric Ries\u200a\u2014\u200a<a class=\"markup--user markup--li-user\" href=\"https:\/\/medium.com\/@ericries\" target=\"_blank\" rel=\"noopener\" data-href=\"https:\/\/medium.com\/@ericries\" data-anchor-type=\"2\" data-user-id=\"d2f31bf094c6\" data-action-value=\"d2f31bf094c6\" data-action=\"show-user-card\" data-action-type=\"hover\">Eric Ries<\/a>\u00a0introduced the \u201cscientific method\u201d of experimenting, testing and iterating into the startup world.<\/li>\n<li id=\"91c7\" class=\"graf graf--li graf-after--li\"><a class=\"markup--anchor markup--li-anchor\" href=\"https:\/\/amzn.to\/2ufkGMI\" target=\"_blank\" rel=\"noopener\" data-href=\"https:\/\/amzn.to\/2ufkGMI\">The Business Model Navigator<\/a>, Oliver Gassmann et al.\u200a\u2014\u200athe book discusses the constituents of a business model and presents an (allegedly exhaustive) list, written by\u00a0<a class=\"markup--user markup--li-user\" href=\"https:\/\/medium.com\/@bmi_lab\" target=\"_blank\" rel=\"noopener\" data-href=\"https:\/\/medium.com\/@bmi_lab\" data-anchor-type=\"2\" data-user-id=\"6bbbfe640cc1\" data-action-value=\"6bbbfe640cc1\" data-action=\"show-user-card\" data-action-type=\"hover\">BMI Lab<\/a>\u00a0of St. Gallen University.<\/li>\n<li id=\"1421\" class=\"graf graf--li graf-after--li graf--trailing\"><a class=\"markup--anchor markup--li-anchor\" href=\"https:\/\/amzn.to\/2upooni\" target=\"_blank\" rel=\"noopener\" data-href=\"https:\/\/amzn.to\/2upooni\">Blue Ocean Strategy<\/a>, W. Chan Kim und Ren\u00e9e Mauborgne\u200a\u2014\u200athe authors introduce a process to create a service or product in a blue ocean without competition.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p>Source:\u00a0<a href=\"https:\/\/medium.muz.li\/why-business-design-is-the-most-important-skill-of-the-future-b0ed451003c7\">https:\/\/medium.muz.li\/why-business-design-is-the-most-important-skill-of-the-future-b0ed451003c7<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The times of pure\u00a0Design Thinking\u00a0are over: Certainly, the last years have seen the rise of Design Thinking and similar processes (most lately\u00a0design sprints) that help entrepreneurs and managers to create more user-centered products and services. They are great tools to spawn desirability in customers. Nevertheless, they often fall short in creating a sustainable business model. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":-1,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_vp_format_video_url":"","_vp_image_focal_point":[],"footnotes":""},"categories":[45],"tags":[31,46,47],"class_list":["post-667","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-business","tag-management","tag-strategy"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Dazzlepop | Why Business Design is the Most Important Skill of the Future<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.dazzlepop.net\/site\/why-business-design-is-the-most-important-skill-of-the-future\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Dazzlepop | Why Business Design is the Most Important Skill of the Future\" \/>\n<meta property=\"og:description\" content=\"The times of pure\u00a0Design Thinking\u00a0are over: Certainly, the last years have seen the rise of Design Thinking and similar processes (most lately\u00a0design sprints) that help entrepreneurs and managers to create more user-centered products and services. They are great tools to spawn desirability in customers. Nevertheless, they often fall short in creating a sustainable business model. [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.dazzlepop.net\/site\/why-business-design-is-the-most-important-skill-of-the-future\/\" \/>\n<meta property=\"og:site_name\" content=\"Dazzlepop\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/dp.Dazzlepop\" \/>\n<meta property=\"article:published_time\" content=\"2018-12-08T14:31:48+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cdn-images-1.medium.com\/max\/1600\/1*ey53eFR_-Vp0xHkoCI_zxA.png\" \/>\n<meta name=\"author\" content=\"Mohamed Adel\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/cdn-images-1.medium.com\/max\/1600\/1*ey53eFR_-Vp0xHkoCI_zxA.png\" \/>\n<meta name=\"twitter:creator\" content=\"@dazzle_pop\" \/>\n<meta name=\"twitter:site\" content=\"@dazzle_pop\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Mohamed Adel\" \/>\n\t<meta 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