Business design enables organizations to deliberately craft a business model to prove sustainability in the marketplace by validating the building blocks of a business model. The business designer can help an organization to build a viable business model by readily testing its riskiest assumptions against the marketplace.
From design thinking to business design
In the world of design thinking, a process of iteration is put in place to seek understanding of a key stakeholder: the user. The primary goal is to iterate as quickly as possible on the assumptions made about what users want, and only when data is gathered and feedback is learned that the whole process makes the product improve.
Business design is built on the same premises of design thinking, with a primary difference. Where design thinking helps build products users love. Business design helps entrepreneurs build organizations that thrive in the marketplace via innovation.
Business design definition
There isn’t a single definition of business design. At its core, though the business design is about creating a long-term competitive advantage for an organization by designing business models that can be tested and turned in value creation machines.
Indeed, the business design is the set of tools that help entrepreneurs build a value proposition that generates business value, delivered via an innovative business model, to capture value in the long term.
Why does business design matter?
In the current marketplace, dominated by digital innovation and new models, understanding business design can be the difference between building up a successful company.
Understanding the innovation circles
- Desirability, which is primarily about people and understanding their deep desire for a product or service
- Feasibility is about the functionality of a product or service and whether it can deliver on its value proposition
- And viability, primary focused on the business side and whether it makes sense from the sustainability of the business
These circles’ aim is to test and prioritize the proper questions to build a sustainable business model.
How does a business design process work?
A business design process wants to translate assumptions about how a business should be in a business model prototype, that can be tested, and iterated in the marketplace. One of the key elements of a business design process is the ability to isolate the assumptions that might make a business model thick in the marketplace. So that those assumptions can be tested and iterated.
Business designers take juicy, creative, human-centered innovation and make it succeed out there in the real world. We use strategy, analysis, and financial modeling as generative design tools, and help organizations turn their biggest, wildest ideas into businesses with long-term viability.
In short, a business designer is a strategist, analyst and financial analyst able to turn insights in business models that turn out viable in the long-term
In a job description as a business designer, IDEO explains:
As a Business Designer, you will be ensuring that the viability of new concepts are thoroughly considered. In this capacity, you’ll work with the team to understand the client context, collect and interpret relevant data, develop insights, explore and define growth opportunities, define strategy, create tangible design expressions, communicate the vision, and ultimately help our clients get new offers to market.
Other resources to design your business:
- Business Strategy: Definition, Examples, And Case Studies
- What Is a Business Model Canvas? Business Model Canvas Explained
- Blitzscaling Business Model Innovation Canvas In A Nutshell
- What Is a Value Proposition? Value Proposition Canvas Explained
- What Is a Lean Startup Canvas? Lean Startup Canvas Explained