360° Business Model Innovation
While user research focuses on the ‘WHAT’ (the value proposition) and ‘WHO’ (customer segments) questions, the business model focuses on the ‘HOW’ question (the go-to-market strategy). More specifically, the business model describes the strategy a company can use to optimally create, deliver and capture the value it offers to its customers.
Business Model Design
Business models are based on facts and assumptions. The big added value of a living lab track for business models is that it provides feedback on these (key) assumptions. During multiple business model workshops we gather that feedback and work with you to adapt the business model and assumptions accordingly.
In this iterative process, we distinguish four levels of Business Model Innovation:
- The value proposition describes the added value for a specific market segment or customer.
- The functional architecture describes the technical components, but also the processes, tasks and roles.
- The value network identifies the various stakeholders as well as their roles, and which shows the (inter)relationships between the stakeholders.
- The financial model focuses on the pricing model and the return of value across the value network; this is then linked to the cost model for obtaining and maintaining the required assets, the core tasks of the company and building the necessary ecosystem.
Living Lab Innovatrix
Living Lab Innovatrix is a tool to help entrepreneurs and businesses develop new products or services. The tool helps them to innovate in a structured manner, with a focus on all types of users with their specific wishes and requirements. imec has developed Living Lab Innovatrix to help translate the impact of the user results into the concrete impact on the business model.
This approach promotes testing, learning and pivoting throughout the innovation process. This makes the method the ideal guide when making choices on the basis of user results and business model results from the Living Lab research. In imec Living Lab research, the Living Lab Innovatrix is applied in two phases:
- To begin with, a number of learning goals are formulated at the kick-off meeting on the basis of assumptions. This is done at user, problem and solution level and supplemented by the value chain, competition and willingness to pay & pricing models;
- Then the results of the Living Lab research are evaluated against these learning goals - periodically and with the steering group - and the innovation process can be adjusted if necessary.
