Ingredient 15. Simplify Your Business Model

101 Design Ingredients to Solve Big Tech Problems — by Eewei Chen (23 / 125)

👈 Clarify Roles and Responsibilities | TOC | Pitch the Problem 👉

Know how your business makes money.

“Drive thy business or it will drive thee.”
— Benjamin Franklin, US Founding Father

The Problem

Organizations aren’t clear enough about how they make money.

The Solution

Clarify how value and costs are built up so teams know what to do to keep the business running efficiently.

• Give an overview. Use a tool like the Business Model Canvas to outline how your company plans to spend money and generate revenue.[39] List your value proposition and show how each part of the business model works to support success.
• Show customer success equals business success. Show the link between important customer and business requirements using a customer-value matrix.[40] Define the customer value you’re creating and prioritize it based on return on investment.
• Highlight what’s different. Many businesses can have the same model but still be differentiated. An elevator pitch is the quickest way…