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Week 1

Section 1: Why Study the Design of Business

  • Importance of understanding business design for achieving success.

Successful Businesses: Key Factors

  • Reflection Questions: What makes a business successful?

  • Factors contributing to success include:

    • Riding on trends

    • Hitting goals and targets

    • Unique value proposition

    • Sustainable growth

    • Innovation and adaptability

    • Strong marketing messages

    • Customer-centric approaches

    • Affordability and quality

    • Differentiated products

    • Effective customer retention strategies

A-B-C-D-E Framework for Business Success

  • A: External Factors

    • PESTLE Analysis: Political, Economic, Social, Technological, Legal, Environmental factors.

  • B: Business Design

    • Elements like customer segments, revenue models, and channels.

  • C: Capabilities Within Company

    • Assessing human capital and organizational culture.

  • D: Destiny (Luck)

    • Being in the right place, at the right time, with the right people.

  • E: Additional Considerations

Case Study: Seng Lee Bakery

  • A family-owned bakery facing competition from trendy cafes.

  • Key Considerations for Transformation:

    • Marketing and branding strategies

    • Product innovation and target market realignment

    • Potential business pivot or model transformation

    • Sustainability and willingness to innovate

    • Budget and costs associated with changes.

Importance of Business Design

  • Businesses must evolve due to changing environments.

  • Transformation is critical for sustained competitiveness.

  • Intentional planning and design align market demands with internal capacities.

  • Higher likelihood of success through structured transformation.

Project Approach to Transformation

  • Three Stages Leading Up To Go/No Go:

    1. Where to play: Identify uncontested markets and ideas.

    2. How to play: Evolve ideas into viable business models.

    3. Validate and prototype: Test market concepts for viability.

Explore-Exploit Continuum

  • Differentiating resource allocation for exploration of new ideas vs. exploiting current capabilities.

Example: Goldbell Group

  • Successful initiatives include:

    • Implementation of ERP systems for financial improvements

    • Providing financing options for industrial vehicle leasing

    • Developing peer-to-peer lending platforms.

Understanding the Client's Needs

  • Emphasizing transformation tailored to the client's strengths.

  • Client motivations significantly influence receptiveness to transformation.

Key Learnings

  • The inevitability of transformation for business success.

  • Considerations for successful transformation include environment, strategy, and motivations.

  • Importance of team trust and challenging assumptions.

  • Expect non-linear pathways in transformation processes.