Thomas Brandenburg
Author - Thomas Brandenburg

Interview with Alexander Rodichev, Senior Business Designer at Digitalist Group. Article by Thomas Brandenburg.

"Digitalisation is rapidly reshaping businesses and is bringing new opportunities. In this environment, you can’t longer operate with old models. Business model innovation is a health check and treatment for your business." — Alexander Rodichev

What language (keywords or phrases) do you like to use to explain business modeling / business model innovation to an audience that is not familiar with it?

  • "Business modeling is an essential part of any product/service/business development
  • Business modeling is about building logic of how the business of firm works
  • Digitalisation is rapidly reshaping businesses and brings new opportunities. In this environment, you can’t longer operate with old models. Business model innovation is a health check and treatment for your business"

What are some key lessons you learned over the years in business model prototyping?
"Business model prototyping is a craft rather than art. Reinventing  the wheel is not necessary when you can learn from other companies, build on top of this knowledge, recombine and creatively imitate things in a meaningful way for your business way."

What are some core activities or tools you use to do business modeling? What are the most useful method(s) or framework(s) for capturing the value of a new service to share with the organization?
"The most important tools are ears and eyes. Additionally, it's co-creation, qualitative and quantitative research, data visualization and storytelling, just to name a few."

What are some of the main reasons business modeling for new services fails?
"There are many reasons of why business modeling fails. There are few examples:

  • Business model have no link to a company's strategy
  • They are missing an activation plan. It's a common situation of having a business model but no idea what to do next
  • They were deployed too late. Companies that  have very little resources to develop and execute new business model
  • No business model validation or simulation

My formula for a business model is simple:

business model  x  execution = result

In this formula, any business model needs people. People, to be able to design the business model should fully understand who is the target customer is and what problem they are solving. They should also know how value is created and what their company's unique competitive advantage is. Additionally, understanding what the business eco-system landscape is and how the company fits in this system is crucial. Missing knowledge or unawareness might lead to a failure.

Once there is a business model, employees need to be empowered to understand and execute against it. Everyone will interpret and translate it through one’s own lens and so making sure that things don’t get lost in that translation is important."

What are some of the sources scepticism or fears business leaders have when applying design thinking and prototyping new service business models? And how do you address them?
"Some leaders associate design thinking with uncertainty, risks, and intangible outcomes. They often ask, "If design thinking is worth the investment or how to quantify the outcome?"

In response to this issue, we co-create, pilot to simulate the new business concepts together with the client. In some cases, we split off the new business concept and think of it as a start-up (setting up a new working unit). It will give more freedom and optimize decision-making process."

Be sure to checkout Alexander’s workshop at the upcoming Service Design Global Conference!
Check out other conversations at https://5by5.blog/

Related Community Knowledge

Meet the service designer Patti Hunt:  Meet the service designer

Patti Hunt: Meet the service designer

Patti Hunt is the founder and director of MAKE Studios, a service innovation company based in Hong Kong. For this edition of the Touchpoint Profile, she had a chat with Jesse Grimes, the journal’s Editor-in-Chief, about her work with multi-national corporations, NGOs and start-ups in the Asia-Pacific region, as well as the unique challenges posed by practicing service design in Hong Kong.

Continue reading
Meet the service designer Eleonora Carnasa: Meet the service designer

Eleonora Carnasa: Meet the service designer

Eleonora Carnasa is a Bulgaria-based service designer and founder of Fabrica 360, a design and innovation agency. In this profile, she had a chat with Jesse Grimes, Touchpoint’s Editor-in-Chief, about her efforts to grow service design in Eastern Europe.

Continue reading
Meet the service designer Luis Alt: Meet the service designer

Luis Alt: Meet the service designer

Established in 2010, Livework’s São Paulo outpost is a service design pioneer in one of the world’s top-ten largest economies - Brazil. Since then, the team has worked with an enviable roster of clients, but also experienced the challenges of carrying out service design before it became widely recognised. In this edition of the Touchpoint Profile, Editor-in-Chief Jesse Grimes speaks to Luis Alt, one of the studio’s founders.

Continue reading
Meet the service designer Meet the service designer: Anna-Sophie Oertzen

Meet the service designer: Anna-Sophie Oertzen

Anna-Sophie Oertzen is a PhD Candidate exploring how co-creation with different actors may be used to design and deliver profitable, user-centric services. For that, Anna-Sophie uses her business background specialised in marketing, strategy and innovation, her experience in conducting user research, and her practical service design knowledge.

Continue reading