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VIABLE BUSINESS MODEL

A viable business model is when a product or service is clearly defined. The market is clear, and there are
enough users who want the service or the product to enable the business to grow. It is profitable and has a
competitive advantage. Before forming a viable business model, some processes help a creative business
achieve its goals in making the business work.
DESIGN THINKING
The design does not just pertain to the artwork but also pertains to how business, an organization, or a project is
being structured toward innovation. When design and innovation are combined, it can offer a way of doing things
differently. It offers a different way of framing possibilities, how things are done, and how to tackle problems.

HUMAN-CENTERED DESIGN

Before getting into the main design thinking process, Human-Centered Design should be understood first to
implement design thinking.

Human-centered design is getting to know the users and getting to know the users through interviews and existing
data. Human-centered design is putting the interest of the users. It is not the question of “How much can I get
after I provide this service?” but it is “What will my users or clients can get out of my service?.” Providing an
excellent and innovative product or service is the priority, and the profit will follow.

DIFFERENT MODELS USED TO IMPLEMENT HUMAN-CENTERED DESIGN IN DESIGN THINKING

Personas – It is fictional characters that are used

to represent typical users or the general public. It
is created from the data collected, like the
demographics of the different users.

Creating personas will help you to understand

your users’ needs, experiences, behaviors, and
goals. Creating personas can help you step out of
yourself. It can help you recognize that different
people have different needs and expectations, and
it can also help you identify with the user you are
designing for. Personas make the design task at
hand less complex, they guide your ideation
processes, and they can help you achieve the goal
of creating a good user experience for your target
user group. (Dam & Siang, 2020)

Example:
This is a user persona for AirBnB from Sneha
Kulkarni. According to her, “This persona
represents the major user group of Airbnb, a
platform that connects people looking to rent
their homes with people who are looking for
accommodations. To develop this persona, I

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conducted qualitative research through five interviews and researched sources providing Airbnb users’ data.”

Source: https://snehakulkarni.com/persona

This is another
example of a persona
for a Multimedia
production company.
The persona here
represents other
companies that need a
multimedia production
company to do the
creative work.

Extreme Users – This is

quite similar to
persona, but this is more
focused on a specific target
audience. It does not focus on
typical or average users. The
question here is, “How will you
create something wherein the
solution will benefit different
individuals with different
backgrounds?.”

Extreme characters are a great

method for extending your
considerations beyond the
typical and conventional user’s
needs. It is easy and very
common within the design
process to focus on a particular
target group and user type.
Trying to understand their
Photo from Racquel Felix of IDEO U
specific problems, needs, and
motivations. It encourages you
to move outside of well-defined problem spaces, and therefore, to access a large spectrum of human emotions
and practices. (Tomitsch & Wrigley, n.d.)

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For example, a client asks you to create an interactive board game that will suit all ages, including senior citizens.
You have to do more detailed research on young people, and seniors would respond to that kind of board game.
You combine your data and create a solution out of it.

1.) Storyboarding – It is used to visually explore how the users will interact with the product or the service.
It can also represent a future situation.

These can be used to represent a current or future situation. Storyboards for current situations are
effective for highlighting issues with current experiences. Storyboards of future or possible situations can
evaluate early concepts with other team members or prospective users and communicate concepts to
others. (Tomitsch & Wrigley, n.d.)

CAN YOU USE PERSONA, EXTREME USERS, AND STORYBOARD IN JUST STARTING A BUSINESS?

No. You can also use the three methods when you are doing your project.

Example:

Suppose you are paid to do an online selling platform for travel. In that case, you have to visualize your target
market first by creating a persona to have an overview of your target market; after you research on their
demographics then you can create an extreme user to brainstorm how the website can cater to different people
with the different background then you create a storyboard to visualize how your future users will interact with
the website.

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WHAT IS DESIGN THINKING?

“Design thinking is a human-centered approach to innovation that draws from the designer’s toolkit to integrate
the needs of people, the possibilities of technology, and the requirements for business success.” —Tim Brown, CEO
of IDEO (“How do people define design thinking?”, n.d.)

• Design thinking is a way to approach another skillset and another approach because when you add
another skill and try a different approach, it creates innovation.

• Design thinking gives one the ability to look at and explore the world to find a new solution and
strengthens observation skills.

• Design thinking is a process for creative problem-solving.

Source: https://venngage.com/templates/infographics/design-thinking-840bab6b-540b-4c07-8c5a-e6a7944bc8e1

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WHY AND WHERE DO WE USE DESIGN THINKING?

It can develop and drive changes that lead to growth and make a difference in the market. It is used to help
entrepreneurs and organizations to focus on people that they’re creating for or they are servicing. If the focus is
on the people, it will lead to better products, better service, and better internal processes.

DESIGN THINKING PROCESS

1.) Empathize
Research by identifying what the user/client/consumer’s say, think, and feel. An effective approach is
through interviews to learn how people respond to the common or similar issue and then create an
empathy map to gather all information from the interview.

Sample Questions to Ponder:

What will motivate or discourage my users?
Where did they experience frustration?
Why do we need this type of service?

2.) Define
After doing the research, gather all the data and observe where the user’s common problems exist. When
the needs were identified, that is where the opportunities for innovation can be highlighted.

Sample Questions to Ponder:

Are there common issues across many different users?
How can this be easier for the user?
Who is affected by the problem?
What are the different ways we can solve the issue?

3.) Ideate
This is brainstorming creative ideas that can address the needs of the users. This part is where you explore
a possible solution. Activities such as sketching or using post-it notes will help during the ideation process
to visualize the ideas.

4.) Prototype
Build a realistic representation of the ideas or solutions. Prototyping creates a sample of what the output
will look like, what it does, and how it will work. The goal of prototyping is to understand what part of the
ideas or the solution that you came up with will work or not. This phase will weigh the impact vs. the
feasibility of ideas through feedback in prototypes.

5.) Testing
It puts the prototype in front of the users and sees if the solution meets the users’ needs or checking if it
solves the problem.

Sample Questions to Ponder:

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Does the solution meet the needs of the users?

Has this improved how my users/consumer’s response?

The solution you will create for your creative business should materialize and touch the users’ lives. It
should impact them and find your product/service useful and worth the time and price.

CONDUCT A FEASIBILITY STUDY FOR CREATIVE BUSINESS

This is not your usual feasibility study in the usual business class. This is a different approach of doing a feasibility
study for a creative/multimedia business.

A feasibility study is an assessment of a proposed business. It is to know if the business has the potential to grow
or succeed. The goal of doing a feasibility study is to understand all aspects of the business concept, the risks, and
to know what are the potential problems that might arise.

Before you start to write your business plan, it is important that you first identify how, where, and to whom you
intend to sell your product or service. You also need to assess your competition and figure out how much money
you will need to start your business—and, more importantly, how much it will take to keep it running smoothly
until it is well established. (“How to Write a Feasibility Study Step by Step”, 2018)

HOW TO CONDUCT A FEASIBILITY STUDY FOR CREATIVE BUSINESS

1.) Business Description. Describes what the business is all about and the products and services that will be
offered.

Sample Questions to Ponder:

What is my service or product all about?
How can this solve the problem of my user?

2.) Market. It contains the industry’s description, the target market, the current market, anticipated future
market potential, competition, and potential buyers.

Sample Questions to Ponder:

What is my target market?
Why are they my target market?
What will be my edge so that this target market can choose my service over others?

3.) Technical Aspect. It provides details on how the service will be delivered. It includes the materials, labor,
business location, and technology needed.

Sample Questions to Ponder:

Will this technology help me make my business outstanding from the rest?

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Do I need to hire this type of specific people to run my business?

If I place my office in this area, will it be accessible to the public? Will I be noticed?
Is this type of software advance that will make my work stand out?

4.) Financial. The projected start-up capital needed to start the business, the potential capital sources, and
the investment return.

Sample Questions to Ponder:

Is this amount enough to start up my business?
Will I need a business loan from the bank?
Will I need some people to help me fund my business?
5.) Organization. This includes the organizational structure of the business. It also includes the background
of the founders of the business and their skills.

6.) Conclusion. Discuss how do you see the business succeeding with all honesty.

HOW CAN I APPLY DESIGN THINKING IN CREATING A FEASIBILITY STUDY?

• Before you can come up with a business description, you should have a product or service first, and before
you come up with a product or service, you need to know where your future users are coming from and
the problem/s that they are experiencing. This is where you can empathize.

• Once the users’ problems have been identified, you can know to define the possible solutions/s that can
solve the users’ problems; from there, you will define who is your target market.

• You can now start to ideate the products or services you can offer to create solutions to the user/s
problem. By ideating, you can identify the resources needed to make your solution or proposed product
or service to materialize, which can help you calculate the amount you will need to launch your product
or service.

• Once that you already have ideas in mind, and do the ideation then, you can now create the prototype of
your product of your service. Then you will allow users to Test your product if it will work or not.

CREATE A BUSINESS MODEL APPLYING THE OUTCOME OF THE FEASIBILITY STUDY

Building a business is like building a house; it can’t be built without a plan and a foundation. Building a business
requires a lot of planning to lay the business’s foundation to be bound for success later on. A business model is
the business’s blueprint. It helps entrepreneurs plan and figures out the business concept, the problem to be
solved and for him, how to create customer value, how the product or service will get to the customer, how to
stay competitive in the market, and the anticipated cost and revenue.

DIFFERENCE BETWEEN BUSINESS MODEL, BUSINESS MODEL CANVAS, AND BUSINESS PLAN

• Business Model is used when laying the framework or the foundation of the proposed business. It is the main
idea of the business and an overview of how it will work.

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• The Business Plan is more detailed and deep information about how each part of the business will work. It
examines and expects closely every part of the business.
• Business Model Canvas is a visual tool for entrepreneurs to easily define or communicate a business concept;
this is used for conceptualization.

HOW TO CREATE A BUSINESS MODEL

1.) Identify the Specific Audience. Specify the kind of audience that you are targeting. Narrow your audience
to a detailed buyer persona. Get the demographics, the common challenges, and the solution that the
business can offer. This is where the empathize process of design thinking can be applied.

Example:
▪ Students
▪ Young Professionals
▪ Soon-to-be-wed Couples
▪ Multinational Companies
▪ Toddlers and children

2.) Establish the Business Process. Identify what the activities of the business are. What the business can
offer and what is the processes in providing those services or products.

Example:
▪ Providing photo and video coverage for events
▪ Digital and Silkscreen Printing Services
▪ Providing digital marketing services for companies
▪ Creating 3D models for interior design and architectural firms
▪ Providing application development and design services

3.) Record Key Business Resources. Indicate the resources needed to run the business and day to day
operations.

Example:
▪ Adobe Software
▪ The model of the camera
▪ Printer
▪ Animation table
▪ Pen Tablets
▪ Computer
▪ Social Media Marketing Materials

4.) Develop a Strong Value Proposition. This is a matter of how the business will stand out among the
competitors in the market. It is establishing your unique selling proposition, which is the highlight of your
business that the users will not easily find from anyone else. A successful business is a business that can
be relevant in the market even after years had passed.

How will your business stand out in the market competition? Can you provide an innovative service? Can
you give a twist to old or usual services or products?

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Example:
▪ A web design company that can also create an augmented reality application.
▪ A full-house production company that caters all services from animation down to digital market
campaigns.

5.) Determine Key Business Partner. A business will function properly if there will be partners who can
contribute to its ability to serve the user.

Example:
Lazada for online shopping of clients who wants to purchase customized tumbler from a digital printing
company.

▪ Taxumo for online tax assistance for your business.

▪ Lito Sy as partner-mentor for a start-up photography company.
▪ Schools who can avail photography and videography service at a discounted rate.
▪ Collaboration with Manila Pride March for advertising campaign materials.

6.) Create Demand Generation Strategy. Create a strategy that will build an interest in the business and be
designed to close a sale.

How will clients find you?

What should they do once they become aware of your product and service?

Example:
▪ Social media boosting of FB page and Instagram.
▪ Referral from family, friends, and other members of your influence.
▪ Collaboration with other brands (e.g., collaboration photoshoot with a marketing campaign for
an NGO)

7.) Innovate. Always leave room for improvement because understanding that the business will never be
perfect can be progressive. Once that the business is running, it needs a constant review to be able to
identify what are the opportunities for improvement.

BUSINESS MODEL CANVAS

The business model canvas is a great tool to help you understand a business model in a straightforward, structured
way. Using this canvas will lead to insights about the customers you serve, what value propositions are offered
through what channels, and how your company makes money. You can also use the business model canvas to
understand your business model or that of a competitor. (“Business model canvas”, n.d.) On the other hand, a
business model also describes how the future business intends to make money.

Components of the Business Model Canvas

• Customer Segments - These are the groups of people or companies you are trying to target and sell your
product or service to. Segmenting your customers based on similarities such as geographical area, gender,

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age, behaviors, interests, etc. allows you to better serve their needs, specifically by customizing the solution
you are providing them. Creating personas is helpful in this part.

• Customer Relationships - In this section, you need to establish the type of relationship you will have with
each of your customer segments or how you will interact with them throughout their journey with your
company.

• Channels - Describes how your company will communicate with and reach out to your customers. Channels
are the touchpoints that let your customers connect with your company.

• Revenue Streams - Revenues streams are the sources from which a company generates money by selling
their product or service to the customers. And in this block, you should describe how you will earn revenue
from your value propositions.

• Key Activities - What activities/ tasks need to be completed to fulfill your business purpose? In this section,
you should list all the key activities you need to do to make your business model work. These key activities
should focus on fulfilling their value proposition, reaching customer segments, maintaining customer
relationships, and generating revenue.

• Key Resources - This is where you list down which key resources or the main inputs you need to carry out
your key activities to create your value proposition.

• Key Partners - Key partners are the external companies or suppliers that will help you carry out your key
activities. These partnerships are forged to reduce risks and acquire resources.

• Cost Structure - Identify all the costs associated with operating your business model. You will need to focus
on evaluating the cost of creating and delivering your value propositions, creating revenue streams, and
maintaining customer relationships. And this will be easier to do so once you have defined your key
resources, activities, and partners.

• Value Propositions - This is the building block that is at the heart of the business model canvas. And it
represents your unique solution (product or service) for a problem faced by a customer segment, or that
creates value for the customer segment. A value proposition should be unique or should be different from
that of your competitors. If you are offering a new product, it should be innovative and disruptive. And if
you are offering a product that already exists in the market, it should stand out with new features and
attributes.

Source: The Easy Guide to the Business Model Canvas, 2019

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Leonard, D., & Rayport, J. F. (1997). Spark innovation through empathic design. Harvard Business Review, 75(6), 102-115. Retrieved from
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