Business Finance Homework Help

Question # 1: Discuss how human-centered design assists with the development of your business model.

Clint said: Well, I had to first learn what human-centered design was and is all about, in order to relate it to my business model. In a nutshell human-centered design is humans asking other humans what is the problem in your corner of the area and what do we or can we do to solve the problem and help find a solution (IDEO, 2015). Another aspect of this approach is in the seven different mindsets that are used as tools to solve these problems; Empathy, Optimism, Iteration, Creative Confidence, Making, Embracing Ambiguity, and Learning from Failure (IDEO, 2015). This particular frame of reference is different from any other system because you are not looking at the business from a financial point of view. However, as you progress and relate all of this material you are normally using the same tools but in a different context.

I think for my business model this will help shed some reality and approach problems or sides of the business I have not used my left side of my brian to tackle. Along with other simple measures I could incorporate to again help and possibly get behind a few other causes I support that could run in parallel with my business model. Nonetheless, I think I could connect with other like minded business leaders to have the conversations and learn from others, which is free business advice.

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Deanne said: Human-centered design places the customer at the center of the product as well as the business model. One goal of human-center design is to develop, gain and maintain deep empathy with your customers so their needs are fully met. There are three phases of human-centered design these are: Inspiration, Ideation and Implementation phase. In the inspiration phase the designer engages with the customer to better learn who they are and what their specific needs are. In the ideation phase the designer develops several models that may meet the needs to the customer. These models are shared with the customer and the designer obtains feedback to see which model best meets the needs of the customer. Lastly, in the implementation phase the best model is put into production and distributed (IDEO, n.d.). Human-centered design greatly assists the development of the business model because a key aspect of any business is to establish a deep relationship with your customer(s). When the needs of the customer are placed at the center of the business model the customer will likely be loyal to the business. They will be more inclined to become a returning customer and may also refer others to the business.

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Brian said: Human-centered design assists in the development of my business model in several ways. First, it is based on the desire to solve a problem with specifically tailored solutions in order to fulfill a quantifiable need from the perspective of the consumer (Design Kit, n.d.). Second, it follows the tenants of inspiration, ideation, and implementation in the following ways (Design Kit, n.d.):

1. Inspiration has created a grounded approach to the need and produced ideas in line with the desires of the consumer.
2. Ideation created a proof-of-concept model capable of producing desired end results and solutions that can be further refined into a more robust and capable product.
3. Implementation has developed partner relationships that allow for the development and creation of the finalized product for the consumer.

Finally, it cannot be understated that empathy for the consumer must be at the forefront of every decision and design iteration as it is with my business model (Design Kit, n.d.). This is the essence of human-centered design.

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Question #2 Describe the key items management will likely seek answers for in your specific model. Why would management need to focus on those elements?

Deanne said: The key items management will more likely seek answers to is those that tie to your business model and that creates value for your customer. Does the Business Model require drastic revisions or changes? One important element management will want to seek answers to is the cost structure. Such as, will we be earning revenues before we are incurring costs. Are we better than our competitors? Your customers and key stakeholders. Such as who are the people outside of your organization you interact with. Scalability is also another important key factor. How easily can you expand without facing barriers (e.g., infrastructure, hiring)? Additionally, Management will want to know if the business model requires drastic revisions or changes and the risks (Osterwalder et al., 2014).

In business management will want to focus on a few key elements. Management will want to know about costs because it affects revenues and about their customer’s needs. If your business incurs more costs than revenues, your business will sink. A business model will need to be ?nancially sound. If your model is not very pro?table, management can decide if changes to the business model need to be made. (Osterwalder et al., 2014). Customer segmentation is also part of your business model and will help management with finding out who to segment, who are the target customers that need our service or product. Management must understand their customer’s needs, since satisfied customers will be more prone to becoming a regular customer. Likewise, customers can also tell others about their experience.

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Katelynn said: One key item management will likely focus on in my business model is cost and profit. Due to the item of business being AI it can be an extreme up front cost. Particularly in the fashion industry AI could cover robotic arms, trend forecasting, replacing manual labor, and more. Another item they might focus on is how the model will expect to receive profit. Will they only receive profit from initial installation? Will they make profit off of updating the AI software? etc. Another item management might focus on is the likelihood of companies switching or partnering with AI. 

Management would focus on these elements because there are always fundamental challenges that confront entrepreneurs. “That can include money shortage, talent, intellectual property, distribution, and more” (Collis, 2016).That is why it is important for management to focus on these elements so that a strategy can be put in place that answers these questions in case something goes wrong and at the very leas the company will know what to and what not to do. 

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William said: If I approached a new up and coming idea in a managerial position, my primary focuses would be how much is the production going to cost the company, the primary market to be targetted (to ensure strategies are also financially accounted for), and to know what kind of returns or profits this new idea is going to bring. Considering the overall purpose of the business model is to ensure a profit is received (Kopp. 2020), costs of production would certainly be on the top of my list.
Focus on the cost of development will define the price per unit, the sales cost, and the break even (BE) point to ensure profit is made from the product. Being that profit is the only way a business will stay afloat, concerns of the initial prices going in to the product should be considered first. Who the targetted consumer will be will define how the product is marketed and what kind of “persona” should be given when advertising. The bottom line to the business model are the returns the organization will be concerned with as well. If the BE point won’t occur within an allotted amount of time, it may not be cost effective at the time the product is presented to develope it at that time. Production could be slower than demand thus consumer interest could be lost. This is when time and finances have to be presented as a manager or someone in a key leadership/decision roles have to consider the amount of time a product is produced, the time it takes to produce it and market it, and the price that is sales for. What does it cost, who’s buying it, and what will the company make?

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