Venture Design — What, Principles, and why?
Introducing Venture design:
Venture design is an approach to leveraging design in the creation of new business, from zero to launch . It is a human centered, lean and agile approach to take an idea or concept through out venture development cycle to develop product or services with objective of de-risking venture development.
A venture is a high risk business without a business model. For a venture to be successful, venture needs to understand customer painpoints and create value by solving real problems.
The objective of venture design is to journey help ventures to journey through valley of death with reduced risk and cost.
In venture design process, an idea or concept is shaped by venture designers to a product through validated learning (build-measure-learn cycle). It involves design activities such as storyboarding, prototyping, wireframing, and hi-fidelity UX/UI design. These design artifacts are created with a human centered approach.
How does an organization adopt venture design approach?
It is mindset and working methodology that questions legacy systems. For organizations to implement venture design, it is imperative to break traditional business design approach. Venture design principles are given below.
Venture Design Principles:
- Grant & Defend autonomy : Provide independence, autonomy and freedom for teams involved in venture design
- Drive continuous engagement : Deep Collaboration, transparency and immersive enviornment (team is co-located for continuous engagement)
- Prioritize progress over process : Here important thing is understand who governs who. Process are not to govern us. Lean approach of build, launch, measure can be adopted or rapid prototyping model for research and further development (Google Ventures)
- Design the impact and not product: Define business objectives and work towards to achieve them — Impact
Why Venture Design?
Technological revolution, low barrier to entry and dissipating industry structures make no sense for organization in increasing number of sectors to strive for sustained competative advantage. Conventional norm for organization to create competative is to create incremental innovation by operational excellence, cost optimization or developing new product or services within the core of the business. However, developing product and solution solution within core of the business will only serve to address near term growth and stability of the organization.
“Business model innovation is constant in this economy. You start with a vision of a platform. For a while, you think there’s a line of sight, and then it’s gone. There’s suddenly a new angle.” — Beth Comstock (Author, Advisor, Board of Director)
Organization will needs to build beyond its core business to sustain future performance and maximize breakthrough. Now, competative environments are in constant disruption and a state of perpetual motion. This requires organization a radically new approach — one that can leverage on constant opportunity by creating a transient advantage.
Transient competative advantage over sustained competative advantage
Sustained Competative Advantage:
Transient Competative Advantage: Competative advantage of organization dimnishes as new technology emerges, consumer preferences changes, new entrants innovate business models or develops product or services. Different phases of transient competative advantage
Launch — identifies an opportunity and mobilizes the resources to capitalize on it
Ramp up — business scale busines idea & infrastructure
Exploitation — leveraging the advantage to capture profits and market share
Reconfiguration — to extend the returns (advantage diminishes)
Disengage — advantage is completely eroded and reallocation of its resources
This requires to reconfigure themselves and to strive for new opportunities for growth through venture development.
A venture design process help organization to focus on creating competative advantages by leveraging dynamic nature of the market by providing systematic execution of continuous design and delivery.
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