Innovation begins from observation. Observation in our everyday life helps us to recognize needs unmet. Behind needs unmet there is a problem to be solved. By solving a problem in an unusual way we gain innovative solutions. A successfully commercialized innovative solution is a true innovation. There is a business model behind every innovation.
Today, we have an egg, an innovative egg, a surprising egg, a successful egg.
Desirability is represented in the business model canvas by “Value Proposition” (Customer jobs, pains & gains, solution description, pain-killer and gain-generator) , “Customer Relationships“, “Customer Chanels” and “Customer Segment“. Without understanding the desirability from the customers’ point of view, a solution could become an unwanted product on the market.
Viability is represented in the business model canvas by “Revenue Streams” and “Cost Structure“. Put it shortly, if the revenue stream is not able to cover all the costs needed, the business model is not profitable and sustainable. No investor will be interested in an unprofitable business (if you happened to know someone, please let me know 😛)
Feasiblity describes the security of supply: Who are the key partners, what are the key resources and what kind of key activities.
Professor Christoph Wecht left a quote from the book of Tim Brown “Change by Design” to give a precise summary of the above mentioned three aspects of the business model canvas and their relationship to Design Thinking:
“The three overlapping criteria of design thinking: feasibility, what is functionally possible…, viability, what is likely to become part of a sustainable business model and desirability, what makes sense to people and for people”
(source: “Change by Design” by Tim Brown and Barry Katz 2009 and 2019 Harper Collins)
Hope this super simple surprise egg can help us to remember the key statements and message from the business model canvas.
For me at least, it does.
(First published in December 2020)