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.