In preparing our seven events for the Australian Innovation Festival, it was interesting how many of the diverse event topics kept coming back to business model design as a foundation.

The creation and selection of alternate business models is a critical element of any business planning, financial modelling, business valuation, or investment preparation.  It forms the dialogue between the technology itself and the economic profile of the opportunity.

The business model design event provided unique insights into the modelling of alternate business models, highlighted by the live business model workshop at the end of the session.  Participants really had their eyes opened to the power of business model design throrugh the use of constraints in our hypothetical example.

Using constraints or objectives is one of the best ways to create a wide variety of business models in a rapid timeframe.  Examples of such constraints may be:
  • Fastest to market
  • Greatest 5 year value
  • Largest market share
  • Lowest capital requirements
  • etc.etc.

We would recommend considering business model design as a key pre-curser to any commercialisation or opportunity assessment work.  We are currently working towards a model where the key parameters identified during business model design are translated directly into a financial model.