How can business be fine tuned by approaching it as an iterative process?
What is Agile design
Let us explore the possibilities of designing better business models by adopting an iterative and non-linear approach.
It is no secret that the term agile has become popular and captured the imagination of several entrepreneurs. This is due to the success of the concept of agile or non-linear software development. Can the same concept be adopted in other kinds of design and project management? As a non-linear approach, essentially enables the identification and problem solving at various stages of product and service development. This evolutionary approach to development of design is what interests me. This presentation, by Michael Surtees, will help to crystallize the difference between the traditional waterfall model and an agile approach.
surtees_agilededesign
Open source and new business models
Open source as a movement and idea was rightfully appropriated by the software development community. The examples are there for everyone to see in the form of Linux and several other tools available freely. However, during the last decade it is being increasingly evident that the same open source methods can be used in a lot of other areas.
Henry Chesbrough’s book “Open Business Models” best illustrates the benefits of having a business model that is more open to outside ideas.
As I see it, this move towards being receptive to other practices from other areas has been motivated by the success of the open source software development movement.
What can agile design do for business models
Taking inspiration from what open source software development did to the software industry. Is there a possibility of using the same principles when designing a business model?
So, what would an agile business model design look like? Well, in my opinion it would look something like this:
You begin by setting up a core functional business model.
Then as you go along, you continuously try out new add-ons and alternatives to the original business model. Your search for the optimal business model will come at a small price of experimentation and most importantly it would not be an end rather a continual and conscious attempt to develop the best business model. This not only benefits your customers or end users but also ensures a healthy bottom line for your business.
I would like to have your thoughts. Can agile business model development help your business and in what sort of businesses will this work?
Related posts:
1 Comment
Hi Peter,
I could be misinterpreting the intent of your post but it feels to me that most startup business are already practicing agile techniques possibly without even knowing it. If they aren’t they likely won’t be in business long. For example we are a software and services startup - we use agile to develop our software, but I would argue that our entire business is being evolved the same way - iterative development. We reassess market conditions constantly, look at strategy quarterly, experiment with new pricing models, new services etc etc.
We are now actually even trying to take some concrete concepts from agile software development and deploy them across the business (of course we are adapting them accordingly). for example - we are now taking the concept of a morning scrum/morning stand-up and moving that to every functional area of the business. Of course some of the details don’t carry over well from development to other groups, however the core tenants of rapid communication, shared commitments and self organization apply to all.
In the end - Agile is a mindset not a process or method. many forget that.
Cheers,
Kevin
twitter: kevnd