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When the IT wants to incubate innovation

the IT division of Rafael is a large technology group, delivering and supporting the computing infrastructure of the organization as well as being an integral part of its research and development as well as manufacturing processes. Being part of the defense article demands a significant amount of expertise, and multi-disciplinary professional knowledge.

And the division decided that it would like to reshape its business model of working internally with the other business divisions of the organization, established a new venture, literally a start up inside the company, which would become the project management and professional services arm to work with the various defense projects of the organization.

In order to find what would the new model would look like, modelZ and division management formed a kickstarting a workshop of business model innovation, which later led to a customer discovery process, to validate the three main value propositions which will be dominant and relevant for its customers – the main project managers of the other divisions.

Dealing with business strategy in a startup mode was a totally new topic on the table for the managers. In a matter of weeks they found the right relevant customers and were able to validate some of the key assumptions in the model, such as providing an overall solution (from design to post project support) value proposition, which required new partnerships, with a totally new external engineering services companies.

Through the use of visualization and design thinking techniques such as the customer journey canvas, the IT managers found new revelations about their target customers, which later revealed the need for new value propositions.

The process also allowed managers and various positions to literally speak the same business model language, and allow them to move faster.

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