Benefits: Prepare Business Model Concepts to Bake a Bigger Pie Through Investing

Your first round of business-model-improvementIf you want to stay overnight at a
tests will show you a variety of ways that youlimited-capacity campground, like at the bottom of
can create a positive momentum in creatingthe Grand Canyon, you may have to make
competitive advantage. Implementing thereservations months ahead of time.
successful results of those tests will impel youIf airline travel is required, you will want to buy
forward like a rocket attached to a test sled.tickets well in advance to secure low fares. You'll
The best business-model improvements similarlyalso need to look into the best ways to ship the
create and direct such unstoppable progresshiking and camping gear to and from the hiking
towards a stronger industry position. You will bearea. Airlines don't let you take very much
so busy once you are employing thesebaggage any more for free.
improvements that many important tasks mayMany more steps have to be planned and
fall away from your attention.executed well in advance if you want to have the
How can you best use the relatively greater timebest possible experience. Skip those steps or
and attention available to you while the tests areleave them to the last minute, and your hike will
occurring? Take the potential results of the value,be impaired in easily foreseeable ways. As a
price structure, and cost improvement tests andresult, investigation into such details should begin
begin to build a powerfully improved businessearly.
model from those test ideas and other importantBy themselves, successful tests in the areas of
sources of information.benefits, price, and costs are usually not enough
By the time you are ready to apply this article,to create the vision to establish better business
you will have finished deciding what addedmodels. Here are some reasons why the tests
benefits, improved price structures, and ways ofare necessary, but not sufficient, to take you to
lowering costs to test. Some of the testsa powerful, new vision.
designed to provide increased benefits and aFirst, you may not have the right resources to
better price structure may already be in progress.implement all of your successful tests at the
The natural tendency of most people at this timesame time. In that case, what is the right order in
will be to want to wait until the tests arewhich to proceed with implementation?
completed before starting to design yourSecond, varying combinations of successful tests
improved business model. That instinct, whilewill have remarkably different meanings for what
understandable, is misguided. The sooner yousort of new business models to create. You want
begin to imagine ways that successful testto select the most effective combination of
elements could be combined, the better.features to create a powerful new vector that
Consider as an example of getting a group ofwill have strong impetus for your organization for
people ready for an unusually long hike in a localea long time to come.
remote from where everyone lives that willThird, successful tests may suggest combinations
involve camping out.that contain seeds of cross-purposes and harmful
Each person needs to be in physical condition toeffects. How can that be understood before it is
do the hike. To prepare might mean having someexperienced?
people start an exercise program, after firstFourth, some combinations of successful tests will
testing their fitness.stimulate new opportunities to locate still other
Depending on what sort of hiking is involved,business model improvements. In the long run,
special equipment may need to be purchased.those combinations reflecting new opportunities
Those who don't have proper hiking boots willwill be the most valuable to your organization.
need to purchase them and break the boots in.How can these new opportunities improved
If the hike is to take place in an area where hikingcombinations be identified?
is restricted, such as Yosemite, special permitsCopyright 2008 Donald W.
may be needed.