During the innovation phase, you and your team start to develop and prototype a new digital business model idea. As you will see, this will be quite an interactive and interdisciplinary team work. Although it will be work, it will be also fun for you and your colleagues to create new ideas and concepts throughout this process.
The innovation phase is divided into two sub-phases: the Analysis phase - in which you analyse your own, your customers' and your competitors' situation; and the Design phase - in which you create new digital ideas based on the findings of the analysis phase.
After having completed the whole innovation phase, you will have developed a new digital business model idea by having created and tested a first prototype of your digital business model idea and completed a business model canvas to outline the additional value of the new digital business model idea. You will also get to know different tools and methods supporting you in developing innovative digital business model ideas in your daily work. Before entering the innovation phase with your team, it would be good to reflect on issues like:
1. Who should be a member of your interdisciplinary team? We recommend having a team of 3-7 members.
2. Where will you have space to meet on a regular basis and to work interactively together? As you will see when going through the different methods and activities, you will need some space in your office where you can visualise your ideas, collect your findings or complete templates. Ideally, you can keep these results visual for the whole development process.
The aim of the analysis phase is to:
- analyse your company's situation from a strategic perspective as well as the company's current environment to identify your potentials you can further build on as well as new trends you can address with your team;
- build empathy for your customer by understanding his gains and pains in regard to the development of a new digital business model idea to be able to produce something which is of added value to your customer. Building empathy for your customer is crucial to an user-centred method as it allows the participants to set aside their own assumptions in order to gain insights into the customers' situation with respect to the digitalization.
The design phase is the phase where you start the whole ideation process based on the relevant findings you have identified in the analysis phase. During the whole process, your customer's/user's needs are always in the centre when developing new ideas. You and your team will be encouraged to create new digital business solutions using methods to support open minded and out of the box thinking. As you will see, iterative working processes will form an integral part of this phase on the way to improve or modify your digital business model. These are for example: testing, feedback loops, mockups and others.
At the end of the design phase you will have:
- a new digital business model idea developed by:
- having created and tested a first prototype of your digital business model idea and;
- having completed a business model canvas to outline the additional value of the new digital business model.
- a first roadmap on how to further implement the digital business model idea in your company.
Within the insight phase you are collecting all relevant information regarding your company and its environment. Special techniques and methods will support you in getting a better understanding about your customers, competitors and trends in your industry.
Within the customer and value definition phase you are collecting all relevant information regarding your customers and their desires and pains in order to match your value proposition with their needs. Special techniques and methods will support you in getting to know your customers better and create real value for them.
Within the ideation phase you are creating new creative ideas and solutions based on the findings, results of your customer analysis. Special techniques and methods will support you in creating many wild new ideas for your new digital business model.
Based on the findings from the insights, customer and value definition and the ideation phase you are now asked to develop a prototype in combination with a completed business model canvas in very short time and test it directly with your user to verify your assumptions. Prototyping is a technique to simulate real products, services and business models in a very short time. It offers you the chance to receive quick feedback from your potential customers and users on your new idea/solution without spending a lot of money and time.
After having developed a first prototype of your digital business model idea it is important to receive direct feedback from your potential customers or stakeholders. It is the phase where your assumptions in relation to your customers’ needs will be verified. You and your team will receive valuable feedback to further improve your idea. At the end of this phase you will have developed a roadmap within your team on how to further improve and realise your idea.