THE FUTURE LENS BUSINESS MODEL INNOVATION FRAMEWORK ™

CRAFTING THE MODELS TO LEAD

The Future Lens Business Model Innovation Framework (Future Lens) is Legacy Innovation Group's proprietary framework for developing innovative new business models.

We developed this framework specifically to enable the design of innovative new business models that address emerging market needs (emerging futures), and thereby connect businesses and markets in completely new ways.   Future Lens is singularly focused on this one aim.   As such, it offers a rapid approach to Business Model Innovation (BMI).

Pursuing innovative new business models has two steps.   First, it requires that one completely rethink what problem it is they are solving for within a particular market, and as a result of that, what business they really need to be in.   This often leads to a broadening of one's business scope.   Secondly, it requires that one undertake a process wherein they closely examine the many different parts of their business, with the aim of uncovering those areas that can be changed to yield a completely new (and hopefully more innovative) business model.   At stake in this process are the what, where, how, and to whom offerings will be created, delivered, and monetized.   The goal, ultimately, is to design a new business model that will yield a meaningful step change, especially in terms of market engagement and growth.

We refer to the various "parts" of the business as its "domains of potential", or simply "domains".   When searching for an innovative new business model, each of these domains must be examined in thorough detail.   Future Lens provides the framework for doing precisely that.

Future Lens is a highly-structured framework.   It begins by dividing the business model into two halves, namely Value Proposition and Value Delivery.   Each of these, respectively, addresses two key dimensions of the business model — Value Proposition that of "who" and "what" / Value Delivery that of "where" and "how".   Each of these two sides of the model is then made up of three (3) specific domains, for a total of six (6) domains in all.   These six domains are then further divided into a total of twenty two (22) distinct "points of differentiation".   In any given scenario, each such point of differentiation can be used as a source of change in the business model.

By framing out the two key dimensions of Value Proposition ("who" and "what") and of Value Delivery ("where" and "how"), we are thus able to illustrate how all six domains fit together to create a broad canvas for business model innovation.   This enables us to lead clients through a structured examination of their business in search of finding key new opportunities to innovate the business.

It is very important in this process to understand that the most impactful innovations will arise from using combinations of differentiators in several of these domains.   This very often allows a business to deliver truly differentiated value to a market.   We call such designs "Future Lens Designs".

As a tool of examination therefore, Future Lens allows us to evaluate all of the possible designs that might be considered to deliver a particular value or experience.   Points–of–differentiation can be considered in any arrangement or combination (designs) until the one best design is found that delivers the type of value required to resonate with a specific market need.

DOMAIN ONE — TARGET MARKET   (pts 1 – 4)

1. New Markets (new segments) — This addresses the question of WHO, and dictates that you deliver value to entirely new markets (new to the world or new to your company – which inherently means new market segments).   This requires new Market Development (and potentially Brand Development) work.
2. Adjacent Markets (new segments) — This addresses the question of WHO, and dictates that you deliver value to markets that are adjacent to your current markets... customers that are entirely new to you (also representing new market segments for your company).   This requires new Market Development (and potentially Brand Development) work, but less so than with New Markets.
3. Existing Markets / Adjacent or New Market Segments — This addresses the question of WHO, and dictates that you deliver value to new or adjacent segments of your current markets... customers who may or may not be foreign to you.   This requires new Market Development (and potentially Brand Development) work, but less so than with New or Adjacent Markets.
4. Existing Markets / Existing Market Segments — This addresses the question of WHO, and dictates that you deliver value to your current, existing customers, markets, and market segments.   This requires only routine Business Development work.

DOMAIN TWO — BRAND DELIVERY   (pts 5 – 6)

5. Customer Experience — This addresses the intersection space between the WHO and the WHAT, and seeks to find entirely new ways of delivering and managing the Customer Experience so as to create the most impactful possible Moments of Truth, leaving the customer with a clear top–of–mind, "go–to–source" impression of your brand and its offerings – far above that of their other options.   This requires Customer Experience Design work.
6. Brand Promise / Brand Message — This addresses the intersection space between the WHO and the WHAT, and seeks to find entirely new ways of communicating and delivering a particular brand promise / brand experience so as to create resonance with the WHO at a completely new level.   This requires Brand Development work.

DOMAIN THREE — OFFERING SPACE   (pts 7 – 11)

7. New Category — This addresses the question of WHAT, and dictates that you define, develop, and commercialize an entirely new product / service category, which would infer creating an entirely new market.   These typically arise out of Horizon 3 strategic timeframe endeavors.   This requires Category Development work – an amalgamation of Product Development, Brand Development, Market Development, and Business Development.
8. Platform / Product Ecosystem — This addresses the question of WHAT, and dictates that you define, develop, and commercialize a new Platform offering.   Platforms involve a mixed array of products, services, and experiences that complement one another in a way that creates a comprehensive and highly compelling offering.   Platforms generally involve an ecosystem of business partners working together synchronously to deliver the overall platform.   These often arise out of Horizon 2 strategic timeframe endeavors.   This requires Platform Development work, which is similar to Category Development but with a flavor that is more like a new business, and is more complex because of the new partnerships that have to be forged.   Sometimes formal Joint Ventures or other types of business partnerships are formed to deliver new Platform offerings.
9. Technology / Methods — This addresses the question of WHAT, and dictates that you develop a new technology (for products) or a new method (for services) and subsequently deliver that inside of new products or services.   These often arise out of Horizon 2 strategic timeframe endeavors, and tend to focus on core or adjacent markets.   This will likely obsolete prior generations of products and services on account of the improved functionality and design it offers.   In those cases where the technology advance is so great that it yields offerings delivering substantially better value at substantially lower prices, the new technology can prove disruptive to an industry and can thus cannibalize sales of other offerings.   This requires Technology Development work, the domain of traditional R&D.
10. Product / Service Design — This addresses the question of WHAT, and dictates that you define, develop, and commercialize a new product or service that is generally an extension or evolution of an existing product or service.   It freshens and perpetuates the current portfolio of offerings, and is generally aimed at core markets.   The incremental changes involved may be focused on design, functionality, or both.   This requires Product Development work.
11. Customer Support — This is the "rest of the offering", and to some degree bridges the space between the WHAT and the HOW.   It dictates that you find entirely new ways of delivering Customer Support.   Similar to overall Customer Experience, the intent is to make Customer Support a particularly positive Moment of Truth that clearly distinguishes your business and brand from all other options on the market, thus leaving the customer with a top–of–mind, "go–to–source" impression far above that of other options.   This will likely require Customer Experience Design work.

DOMAIN FOUR — VALUE CREATION   (pts 12 – 15)

12. Organization Culture, Structure, & Processes — This addresses the question of HOW, and dictates that you make fundamental changes in the culture, structures, and processes of your business that result in the ability to deliver new, uniquely distinguishing customer value.
13. Growth Engine — This addresses the question of HOW, and dictates that you leverage new vehicles of growth in order to deliver new types of value (sometimes in new places, e.g. adjacent non–core markets).   Many of these new growth vehicles will move you away from a purely organic approach, which tends to focus on the short to medium term (for current market conditions), and toward an extended organic and/or inorganic approach, which tend to focus on delivering more long term value for emerging market conditions.
14. Value Network — This addresses the question of HOW, and dictates that you find proprietary new ways of leveraging your business ecosystem – up and down its value chains – to deliver uniquely distinguishing customer value – without necessarily changing other aspects of your business model.   As such, the value you are able to extract from your business ecosystem becomes an inherent part of your offering.   There are numerous examples of companies who have achieved market leadership through innovations in platform partnerships, logistics, supply chains, and other aspects of their ecosystem.   This can also include abandoning existing ecosystems and establishing new ecosystems so as to enable a new value proposition, but does not involve changing the approach to engagement and delivery for the proposition.
15. Production (products) / Delivery (services) — This addresses the question of HOW, and dictates that you establish proprietary new ways of producing your products or delivering your services – ways that enable you to provide uniquely distinguishing customer value.   There are numerous examples of companies who offer unique product or service attributes on account of proprietary manufacturing technologies and/or delivery methods they possess or have access to.   This requires Production System Development or Delivery System Development work.

DOMAIN FIVE — VALUE CAPTURE   (pts 16 – 17)

16. Revenue Generation — This addresses the intersection space between the HOW and the WHERE, and dictates that you use an entirely different approach to, and means for, generating revenue (monetizing the value).   This new means for generating revenue may or may not involve a redefinition of the fundamental value proposition, but it does involve using a completely different approach to engagement and delivery of the proposition and sometimes a completely different business ecosystem for doing so.   In some cases it will also get around certain government regulations on account of its approach being regulated under different sets of laws.   This requires Business Model Design work.
17. Asset Utilization — This bridges the intersection space between the HOW and the WHERE, and addresses the question of where assets are held, who holds them, how the business gains access to them, and how the business ultimately leverages them (via their access) to deliver new customer value.   It was traditionally believed that the deliverer of this value had to hold most or all of the assets required in doing so, but newer socioeconomic trends such as the "sharing economy" have proven that to not always be the case.   There are in fact ways to access and use assets that are not held directly by the business.   Somewhat related to this is the Value Network point–of–differentiation (pt 14), which calls upon a broad network of partners to help fill out the value proposition.

DOMAIN SIX — CUSTOMER ACQUISITION   (pts 18 – 21)

18. Service Channels — This addresses the WHERE, and dictates that you establish new forms of service presence that allow you to deliver new, distinguishing types of customer value, and/or expand your service presence so that you can capture new customers.   This requires Channel Development work.
19. Sales & Distribution Channels — This addresses the WHERE, and dictates that you establish new sales & distribution channels so as to reach new sets of customers.   This is often focused on pursuing a new market, a new segment of your existing market, or a new geographic region.   This requires Channel Development work.
20. Marketing Channels — This addresses the WHERE, and dictates that you establish new marketing channels so as to reach new sets of customers.   This is often focused on pursuing a new market, a new segment of your existing market, or a new geographic region.   This requires Channel Development work.
21. Geographic Markets — This bridges the space between the WHERE and the WHO, and dictates that you establish a new geographic presence in one or more new places, so as to reach new markets and new customers that previously had no access to your offerings.   In some cases, pursuing geographic expansion will also require using other tools of Customer Acquisition, such as new sales and/or marketing channels.   This requires Market Development and Business Development work, and may also require Brand Development and Channel Development work.

TIME — (pt 22)

22. Time — Time is the 22nd point–of–differentiation in Future Lens, and is introduced because of its importance in terms of trend timing.   When conceiving and delivering an innovative new business model, it is important that it be designed with a particular introduction point in mind for a particular trend–curve.   This point of introduction will differ depending on whether the business is a first–mover or a fast–follower.   Both of these have specific risk / reward profiles to them, and so the business must be very intentional in making this decision.