Currently viewing the tag: "White space"

My business model

I’m afraid of white spaces but some have fear of the dark and we should not!

The kinds of visions that lead to business models worth exploring don’t start with value propositions or customer segments. They start with imagining an important pair of experiences. Peter Friedman

The good and bad ideas, good and bad experiences can be helpful to imagine a future happiness for many companies, but often the imagination is suddenly blocked by fears or by lack of knowledge.

I don’t know how to do and I prefer a tested model!

This lack of knowledge and this fear favors the adoption of business models “ready to eat”, and shift all the creativity and inspiration for the filling of these pre-established maps.

Generally, a successful company becomes very good over time when they grow their core and a company grows when protects resources, improve existing products and create new, expands markets, increases efficiency and improves processes.

And all this is to extract the maximum possible value of its nuclear activities.

Also generally a company continues to develop and improve critical business rules and metrics that ensure proper implementation, establish discipline and exercise control throughout the organization.

This means that explicitly or implicitly, companies operate under a business model.

We can say that a business model, in essence, is a representation of how a company creates and adds value both to the client as to the company.

Usually when this happens, companies also create its comfort zone and often fall prey to the structures and existing business models and fail to broaden their horizons, creating, and innovating.

Mark Johnson proposed the use of white spaces so that companies can travel to unknown lands and at the same time be able to work the inherent fears by getting out the comfort of the existing business model.

White space is the range of potential activities not defined or addressed by the company’s current business model, that is, the opportunities outside its core and beyond its adjacencies that require a different business model to exploit.

What matters is that it describes activities hat lie far outside a firm’s usual way of working and presents a series of unique and perplexing challenges to that organization. It’s an area where, relatively speaking assumptions are high and knowledge is low, the opposite of conditions in the company’s core space.” – Mark W. Johnson in       “Seizing The White Space”

However we know that the main reason why most businesses fail in the creation of new businesses is that they fear action which may provide different environments that are ambiguous.

I think that tolerance to ambiguity genuinely exists only if we design thinkers.

The ability to accept ambiguity during a process and accept it as an opportunity in which there is no right or wrong answer can lead to several concepts that can benefit each other in the final. Further, when the orientation of the project is made of the future backwards instead of projecting what is and what it will be for the future, allows us to fill the white space with possibilities for truly differentiating and innovative business.

Innovation is only possible when we challenge and question the norm and try to find the best possible answer to a problem is the purpose of a design thinker, that is, when you find an opportunity becomes more important than solving problems.

But we need a structure (Stanislavsky) to unlock our creativity-a disciplined process that can propel us towards new ideas and in the case of business, the better we can understand the structure of business models, better will be to create them.

Indeed, conceiving of a truly innovative new business model does not need to be a matter of imagination and serendipity, or luck. It can be an orderly process that uses structure to unlock creativity, rather than the other way around. In this chapter, Johnson shows how the four-box framework–customer value proposition (CVP), profit formula, key resources, and key processes–can help you systematically generate the right questions and assumptions; organize and categorize them in a constructive way; and implement, test, and learn about them in the right order to create a new business model.”

This is a proposal which, I believe, applies a company grew based on its nuclear powers and intends to embrace new opportunities as it can be applied in the construction of a new company.

In any case it is important that our State of mind is dominated by motivation of “promotion” instead of “prevention” motivations because it defines how we see the risk.

“Whenever we see our goals — whether they are organizational or personal — in terms of what we have to lose, we have what’s called a prevention focus. Prevention motivation is about obtaining security, avoiding mistakes, and fulfilling responsibilities. It’s about trying to hang on to what you’ve already got and keep things running smoothly, and it isn’t at all conducive to taking chances.

If, instead, we see our goals in terms of what we might gain, we have what’s called a promotion focus. Promotion motivation is about getting ahead, maximizing your potential, and reaping the rewards. It’s about never missing an opportunity for a win, even when doing so means taking a leap of faith.”- Heidi Grant Halvorson

The freedom allowed in white spaces favorite creativity to the detriment of the comparative analysis of best practice and enables the discovery of many levers for success.


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Different foci on fear

It can not only will resistance to change but it can also be the fear of the unknown which blocks organizations to look to the future thinking on innovation.

Idris Mootee advises the mapping of whitespace in innovation as a tool to overcome the fears.

“White space is a process and tool that allows us to look at the landscape up and down the value chain with a new lens. It can help uncover opportunities that are not obvious ; it can identify new openings untouched by competitors, or it can be considered part of what was traditionally deemed a remote, different industry or outside the boundaries of the firm”.

We do not discover surprising opportunities only by serendipity. This discovery of unique opportunities can be the result of a creative work and research-oriented and consistent.

The process can be used to identify entirely new markets, or can be used to map an incremental innovation in products or services.

To fill this white space is important to know the interests and needs of customers, which are to understand how individuals think and discover their “cognitive maps”, that is, their hidden needs.

The analysis that is behind hidden needs is not simple. Asking questions can be ineffective and therefore we need new approaches designed in large part by anthropology and psychology, to find out opinions and beliefs of people.

When an organization perceives the need to find new paths of development and seek new spaces of action, look for a blank space without prejudices or prisons of schemas, the best way is to depart from a blank space and color it.

Idris Mottee points three foci for the mapping of a whitespace:

The externally-focused perspective “begins with mapping the market, products, or services in your markets and determining whether these are served, under-served or un-served. The goal is to find gaps in existing markets, products, or service lines that represent opportunities for your business”.

We do not look for just knowing the market positioning of the Organization but especially finding an approximation to unknown or hidden through a process centered on people. Non-articulated needs can represent a gap to fill.

Internally-focused perspective enables us to map the Organization’s capacity to deal with new opportunities or face threats from competitors. “This process is used to determine how efficiently and effectively you can react to opportunities and threats from  process, systems and structural perspectives”.

At this time some of the deepest fears possibly begin to emerge and walk towards sublimation. People tend to show competent even recognizing skill shortages in some areas.

The future focused “white space mapping process will put an emphasis on applied strategic foresights.  Usually there is a time horizon no less than 5 years and involving input from strategic foresight exercises”.

When talking about future or forward our point of departure can vary greatly, from an analytical profile to one of the dreamer and visionary.

For many analytical this mapping process can become difficult and even painful. Fears of embark on a journey not determined by past or exclusively by trend can (I imagine) to block the view of the future.

Basically the basis for this process is people, the knowledge we have and the ability to draw prospective conclusions of needs and desires of others. White space can provide fear for fill something without having certainty and can provide a block to intuition, but when well worked can result in expression of potential and a great business opportunity.

A white space can allow the passing of a mystery (for example, how people want to eat in the world today) – to heuristic (a restaurant in an environment of high traffic) for the algorithm (a process that can be replicated and deployed with speed).

Can fears be strong enough to prevent the discovery of new spaces?

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