Hack Your Business Model

Identify frictions, adapt to market shifts, and design resilient strategies for sustainable growth

1. Introduction

Business models age. To survive and thrive, companies must continuously explore new ways to adapt their operations and deliver value—well before competitors or market shifts force them to do so. This tool provides a step-by-step approach to hack your current business model, inspired by the Business Model Canvas from Alexander Osterwalder (Strategyzer) and Tom Hulme and Colin Raney from IDEO.

2. When to use this tool

Hack Your Business Model is needed when:

  • You sense your business model might be becoming outdated and want to reimagine how you create, deliver or capture value;
  • You want to proactively address shifts in customer needs or market conditions;
  • You want to increase the resilience of your operation, reduce environmental impacts or remove critical points of failure.

3. How to use this tool

Step 1: Map the frictions and changes in your current business model

Start by dissecting the current structure of your business. Map where value is created, captured, and shared—not just for profit, but for the benefit of all stakeholders.

  • Users and segments: Make updated personas of your actual customers and communities. Use their language to describe the value they receive, and how that relates to how you describe your offering.
  • Value proposition: What unique, meaningful value do you bring to each group? What benefits do they experience? Which needs may be not fully met, and which parts of your offering provide limited value? What is becoming more valuable? What is less important to them?
  • Pricing: Assess your pricing strategy and compare/contrast that with other players (in your field and with fast-growing organizations in other sectors). Where might you shift to higher value segments? How might you increase reach and impact? 
  • Channels: How do you reach and engage your audience in ways that respect their values and choices? How do they perceive the way you position yourself? What alternatives are available? 
  • Partners, capabilities, and processes: What are your essential partnerships, skills, and operational processes that support your impact? Where is there overlap, confusion, friction? Which parts do not add to the value as perceived? Where do you have negative impacts on your environment, communities or your users?
  • Growth & competitive strategy: Identify how you plan to stay competitive.
    • Assumptions: Are there untested beliefs about what your customers want?
    • Tensions: Do conflicts arise in value creation or distribution?
    • Trade-offs: What compromises are you making?
    • Limiting factors: What limits your ability to scale?

Step 2: Surface the changes in customers’ and communities’ needs

Continuing to follow your customers or users is essential. Speak with them directly, observe their behaviors, and map out emerging needs in real-time. This isn’t just about demographics; it’s about discovering unexpressed desires, frustrations, or gaps that you may overlook.

🔗 Check out the Empathy Engine tool in the Maker craft.

Key questions to ask:

  • Are there overlooked segments that might benefit from your offering?
  • Are your market assumptions still relevant, or do they need a fresh perspective? Which ‘truths’ might actually be ‘limiting beliefs’ that warrant testing again?
  • Could partnerships or new channels offer unexpected ways to make an impact?

Step 3: Explore new customer experiences or delivery processes

Reimagine the end-to-end journey for your customer, aligning each touchpoint with your impact goals. Design this journey with intention, ensuring it flows seamlessly and creates real value, while making sure it respects the integrity of all stakeholders. Redesign your inputs and processes for reduced environmental impact or increased resilience. Generate ideas on where and how you might improve experience, alter the way you deliver or capture value, or redesign your approach to become more resilient and sustainable. 

Tip: Use storyboarding to bring these journeys or processes to life. Airbnb, for example, uses detailed storyboards to ensure every part of the guest experience is considered and optimized.

Step 4: Design your hacks

With your refined ideas, revisit your business model structure from step 1. Integrate the new customer experiences or operational processes into a revised map that supports sustainable growth and adaptability. Evaluate the feasibility of each idea, ensuring it aligns with your strategic goals. Take surviving ideas and integrate them back into the business model framework. 

Questions to explore:

  • Why did we pursue this model?
  • Does it contribute to sustainable growth and positive impact?
  • What skills or resources are essential for execution?
  • What assumptions need validation in the real world?

Step 5: Explore your growth approach. 

Design a thoughtful growth strategy for your new model that centers on purpose and resilience. Map out your vision over the next 3-5 years, setting clear milestones and identifying potential partners and new markets to deepen your impact, rather than scale at any cost. Align on a shared vision for the future, rooted in the values you aim to uphold.

4. What outcomes to aim for

Effective business model hacking will help you to:

  • Challenge assumptions: Surface hidden assumptions that may be holding your project or business back and replace them with tested insights.
  • Identify conflicts: Pinpoint and resolve tension points, smoothing out any inefficiencies or conflicts that slow value creation.
  • Find new opportunity spaces: Unearth new avenues to meet customer needs in innovative ways, creating a more robust and agile model.

5. Resources and references

This Creation Tool is filed under:
Business

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