Business Capabilities
How Successful is Your Business Model?
Business Capabilities are a means of measuring how successful your business models are. It is a known fact that ROIC (Return On Invested Capital) has drastically fallen during the last decade. The approach to the Business Exploration Sessions will be based on ideation. Ideas will be ranked and some selected for “idea prototyping”. The purpose of idea prototyping is to test the new service or product idea with customers. The testing provides a very inexpensive method to test the potential success/desirability of the product or service before large investments in development/feasibility and go-to-market have been incurred, bringing down overall development cost of new products and services while increasing the success rate of new product and services launched; thus, positively impacting ROIC margins. (e.g. 74% of all new products and services fail)
Testing your Hypothesis (Idea prototype)
This is actually going out and test your ideas with actual customers or potential customers by talking to them. To do a meaningful testing your should define:
- The Hypothesis. What value you believe you contribute to your customer.
- Test. To verify the Hypothesis you will.... This need to be defined and be specific.
- Metric. To measure your hypothesis and what you believe you need to measure.
- Confirmation. You are right if a certain % of the customers commit.