Skip to main content

A Systems View Across Time and Space

Table 5 Concepturealize™ steps

From: Concepturealize™: a new contribution to generate real-needs-focussed, user-centred, lean business models

Step

Purpose

Tools

Outputs

Next Step

0. Start

To identify "Wicked Problems"

 

Big Idea

 

a) Empathise

Observing and engaging with people to understand them on a psychological and emotional level

Immersion;

Observation;

Interviews

Broad understanding of existence of 'Wicked Problem(s)'

0b

b) Define under-served needs

To define the big user problem that your team needs to solve

5 Whys

Problem statement

0c

c) Ideate solution

To create your 'Big Idea' to address the wicked problem

Problem Statement (1b);

Brainstorming;

Mind mapping;

Provocation

'Big Idea' to address problem

1a

1. Observation

To discover existence of potential market

 

Customer profiles and personas

 

a) Big Idea prototype

To clearly explain 'Big Idea' to potential customers and elicit general feedback

 

Prototype (clear description of big idea)

1b

b) Test existence of segment

To ask, "Does the idea suitably address the problem?"

Prototype (1a);

Surveys

Explicit feedback from potential customers

1c

c) Understand segment needs

To understand the needs of the customers/users in relation to the problem statement (for each segment, if more than one)

Prototype (1a);

Immersion;

Observation;

Interviews

Implicit feedback from potential customers;

Needs statement

1d

d) Define customer profile

1. To segment customers/users into groups defined by their needs

2. To create a customer profile for each segment type

Needs statement (1c)

Customer profile for each segment;

Personas for each segment

If customer profile is fully defined: 2a;

else: 1e

e) Ideate

To refine Big Idea in-line with customer/user feedback

Prototype (1a);

Needs statement (1c);

Customer profiles (1d);

Personas (1d);

Brainstorming;

Mind mapping;

Provocation

Improved 'Big idea' to address problem

1a

2. Customer Discovery

To classify and prioritise market segments

 

Understanding of Customer Pains and Gains

 

a) Rough prototype

To demonstrate 'Big Idea' to target customer segment and elicit specific feedback

Needs statement (1c);

Customer profiles (1d);

Paper-prototypes;

"Wizard of Oz" prototypes

Rough prototype that allows user to interact with your 'Big Idea'

2b

b) Test in each customer segment

To discover implicit needs (pains and gains) of each customer segment

Prototype (2a);

Immersion;

Observation;

Interviews

List of pains and gains for each customer segment

2c

c) Understand customers

To understand the significance of the pains and gains of the customer segment

Prototype (2a);

Immersion;

Observation;

Interviews

Understanding of the importance of the pains and gains that you are trying to address

2d

d) Define pains and gains

To define and prioritise the real (implicit) needs (pains and gains) of each customer segment

 

Prioritised list of pains and gains for each customer segment in relation to the problem being addressed

If pains and gains fully defined and significant: 3a;

else if pains and gains fully defined and not significant: 0c;

else: 2e

e) Ideate

To improve prototype or method to enable better elicitation of user-needs in relation to the problem statement

Needs statement (1c);

Customer profiles (1d);

Brainstorming;

Mind mapping;

Provocation

Improved prototype or method that allows user to interact with your 'Big Idea'

2a

3. Value propositions

To define how you will create value for your customers

 

Value proposition(s)

 

a) Prototype

To describe your value proposition

VP canvas;

Prioritised list of pains and gains (2d)

Filled Value Proposition Canvas for each customer segment;

Value proposition statement

3b

b) Test problem–solution fit

To verify alignment between pains and pain relievers and gains and gain creators

VP canvas;

Prioritised list of pains and gains (2d)

Focus on most important pain relievers and gain creators for creation of value for each customer segment

3c

c) Understand perception of value

To understand how your potential customers perceive value in your big idea

VP canvas;

Day in the life exercise;

Surveys;

Immersion;

Observation;

Interviews

Qualification of the value, to each customer segment, of your big idea;

Understanding of the importance of each of the identified pains and gains;

Understanding of the ability of your value proposition to reduce pains and create gains

3d

d) Define pain reducers and gain creators

To refine value proposition to focus on the most important pain reducers and gain creators

VP canvas

VP canvas with value proposition(s) fully aligned with customer needs

If pain reducers and gain creators fully defined and align with pains and gains: 4a;

else if pain reducers and gain creators fully defined and not aligned with pains and gains: 0c;

else: 3e

e) Ideate

To improve your value proposition

VP canvas;

Prioritised list of pains and gains (2d);

Brainstorming;

Mind mapping;

Provocation

Updated Value Proposition Canvas

3a

4. Relationships and Channels

To determine how to reach your customers and the kind of relationship(s) they expect

 

Knowledge of market size and reach; Communication and engagement strategy

 

a) Prototype

To test communication and customer engagement methods

Landing pages;

Social media;

Industry data

Provisional communication and engagement strategy;

Prototype elements (could be a web landing page, social media page, podcast, tradeshow stand, etc.)

4b

b) Test

To verify efficacy and potential reach of channels

Web analytics;

A/B split testing;

Industry data;

Interviews with channel partners;

Surveys

Quantification of potential reach of channels for communication of your value proposition

4c

c) Understand

To understand how your customers can be reached and the type of relationships they expect

Prototype (4a);

Immersion;

Observation;

Interviews with customers

Qualification of customer relationship types for delivery of your value proposition

4d

d) Define relationships and channel types

To define your potential market reach and strategy to achieve it

Growth funnel (Acquisition, Activation, Retention, Referral and Revenue (AARRR))

Size of market and reach potential (TAM, SAM, SOM);

Communication and engagement strategy

If relationships and channels fully defined and fit value proposition: 5a;

else: 4e

e) Ideate

To improve size of market and reach potential (TAM, SAM, SOM);

To refine communication and engagement strategy

Brainstorming;

Mind mapping;

Provocation;

Landing pages;

Social media;

Industry data

Improved prototype inputs or method for testing of communication and engagement strategy

4a

5. Revenue Streams

To understand your required and expected revenue streams and the impact of their variation

 

Revenue metrics and risk profile

 

a) Prototype

To model baseline revenue forecasts

Innovation Accounting;

Sales forecast;

Income statement;

Cash flow forecast;

Balance sheet;

P&L forecast

Revenue model

5b

b) Test viability

To understand impact of variation

Innovation accounting;

Traditional financial forecasting and modelling methods

Understanding of the impact of variation of revenue

5c

c) Understand willingness to pay

To understand likelihood of variation

Industry data;

Interviews with channel partners;

Competitor research;

Interviews with customers

Understanding of the likelihood of variation of revenue;

Validation of forecasted revenue

5d

d) Define revenue metrics

To define revenue metrics, willingness of the customer to pay, and associated risk

Innovation accounting;

Forecasting

Defined, validated revenue metrics;

Revenue risk profile

If revenue metrics and customer willingness to pay fully defined: 6a;

else: 5e

e) Ideate

To improve modelled revenue forecasts

Revenue model;

Brainstorming;

Mind mapping;

Provocation

Improved revenue model inputs

5a

6. Key Activities

To define the activities required to deliver the value proposition

 

Activity plan and timeline

 

a) Prototype

To record activities required to deliver value proposition

 

Activity plan

6b

b) Test ability to deliver value proposition

To identify whether the activities deliver each element of the value proposition, including all pain relievers and gain creators, as well as facilitating channels and customer relationships and business activities such as accounting, HR and legal

Activity plan (6a);

value proposition canvas (3d);

Communication and engagement strategy (4d);

Revenue metrics (5d)

Full list of required activities

6c

c) Understand shortfalls and waste

To understand which necessary activities are unprovided or unnecessary activities are included

Activity plan (6a);

value proposition canvas (3d);

Communication and engagement strategy (4d);

Revenue metrics (5d)

 

6d

d) Define scope of activities

To define and prioritise all necessary activities and their relationships with business operations and deliverables;

To define sequence and timeline of activities

Activity plan (6a);

value proposition canvas (3d);

Communication and engagement strategy (4d);

Revenue metrics (5d)

Prioritised activity list;

Activity relationship plan;

Project plan/timeline

If scope of activities fully defined and delivers value proposition and feasible: 7a;

else if scope of activities fully defined and not feasible: 0c;

else: 6e

e) Ideate

To identify how to ensure delivery of value proposition whilst minimising activities and eliminating waste

Activity relationship plan;

Project plan/timeline

; Brainstorming;

Mind mapping;

Provocation

Improved activity plan inputs

6a

7. Partners and Resources

To understand which partnerships & resources are needed to deliver the value proposition

 

Operational resources and requirements plan

 

a) Prototype

To identify which resources and partnerships are needed to complete all activities

Activity plan

Activity relationship plan;

Project plan/timeline with resources allocated;

7b

b) Test feasibility

To uncover which activities can be fulfilled with exiting or planned resources, and which need to be outsourced

  

7c

c) Understand resource needs

To understand the advantages and disadvantages of adding resources or outsourcing for each activity

Project plan;

Risk analysis;

SWOT analysis

Requirements analysis

7d

d) Define operational requirements

To define operational strategy

 

Operational resources and requirements

If operational requirements for partners and resources fully defined: 8a;

else: 7e

e) Ideate

To improve operational strategy by playing on strengths and reducing risk

Brainstorming;

Mind mapping;

Provocation

Improved activity relationship and resource plan inputs

7a

8. Cost Structure

To understand the costs in delivering the value proposition

 

Business model

 

a) Prototype

To model baseline cost forecasts

Innovation Accounting;

Sales forecast;

Cash flow forecast;

Balance sheet;

P&L forecast

Cost model

8b

b) Test financial assumptions

To test reliability of assumptions

Industry data;

Enquiries with suppliers;

Competitor research

Understanding of the likelihood of variation of costs

8c

c) Understand impact of variation

To understand impact of variation

Innovation accounting;

Traditional financial forecasting and modelling methods

Understanding of the impact of variation of costs

8d

d) Define known and unknown costs

To define financial cost metrics and associated risk to viability of delivery of value proposition

Innovation accounting;

Forecasting

Defined, validated cost metrics;

Cost risk profile;

Business model

If known and unknown costs fully defined and viable: 9a;

else if known and unknown costs fully defined and not viable: 6a;

else: 8a

e) Ideate

To improve modelled financial cost forecasts and reduce risk

Assumption confidence

Improved inputs to cost model

8a

9. Implementation

To deploy the MVP or added feature

 

Product

 

a) Development and Deployment

To develop and deploy MVP or added feature in-line with business model (8d)

Resources;

Partnerships;

Business model (8d)

Product

3b