Business Models

Business Models

Business models are the way that value is identified, created, and delivered. You can innovate in any area of a business model. Predictive Innovation starts by describing the full idea space so you can choose the correct area to focus and see all the options.

Who What How When Where Why
Beneficiary Benefit (noun) Benefit (verb) Event, sequence, duration Location, position Benefit
User Use (noun) Use (verb) Event, sequence, duration Location, position Use
Decider Decision (noun) Decide (verb) Event, sequence, duration Location, position Decision
Payer Payment (noun) Pay (verb) Event, sequence, duration Location, position Pay
Designer Design (noun) Design (verb) Event, sequence, duration Location, position Goal
Producer Product (noun) Produce (verb) Event, sequence, duration Location, position Produce
Transactor Transaction (noun) Transact (verb) Event, sequence, duration Location, position Transaction
Communicator Communication (noun) Communicate(verb) Event, sequence, duration Location, position Communication

There are 36 Alternatives for each of the 48 types listed in that grid.

Innovation is about better satisfying desires. So that means it starts with people. There are 2 important types of people, Customers and Providers. In other words, Who buys and uses the innovation, and Who makes and provides it.

Who is the customer?

There are 4 roles performed by Customers: Beneficiary, User, Decider, Payer.

These can be the same person or any combination of people.

Who is the provider?

There are 4 roles performed by the Provider: Designer, Producer, Transactor, Communicator.

The list of provider roles can be broken up differently but that list of 4 is enough to be useful. Again each role can be done by any combination of people including customers.

So in total there are 8 Actors. Each Actor deals with their own “What”.

  • Beneficiaries get benefits
  • Users have uses
  • Deciders make decisions
  • Payers give payments
  • Designers make designs
  • Producers make products / services
  • Transactors conduct transactions
  • Communicators make, deliver, & interpret communications

The “Whats” are nouns. “Hows” are verbs, this is the activity they perform.

  • Beneficiaries benefit from the results of using the product or service
  • Users use products & services
  • Deciders decide
  • Payers pay
  • Designers design
  • Producers produce
  • Transactors transact
  • Communicators communicate

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