Introduction to the Core Business Archetype Guide and to Theory of Change
Core Business Archetype Guide (CBAG)
A commercially viable core business archetype (CBA) is synthesised over three stages going through the 13 roadblocks defined through the Core Business Archetype Guide (CBAG).
Each stage focuses on defining "essential strategies" solving for the requirements for a given function, which are “ordered” in terms of their hierarchical relationship to one another. Each cycle culminates with the synthesis of a draft CBA at an increasing level of fidelity using the strategies defined in that cycle, along with those defined in previous cycles. Financial parameters of the draft CBA are sense-checked at an increasing level of fidelity to ensure the draft CBA is ready to progress to the next cycle, and, ultimately, to the next step of the IVE methodology (Simulate, Stress Test, and Finalise the CBA).
In order to define the "essential strategies" for each requirement, you'll draw on desk research and primary research.
The CBAG:
This course will focus on Stage I of the CBAG. Please reach out to the team at [email protected] if you would like more information about Stage II and Stage III.
Theories of Change
Solutions for the requirements aren’t in the form of specific business model parts, like “30-day risk free trial,” but in the form of a “theory of change.” A theory of change articulates the core strategy for solving the requirement and why it works best. It allows solutions to be broad enough that they can be productized by the CBA—the output of the CBAG. By productizing, we mean the core shape of the business form factor supports all six theories of change.
The Evolution of a Core Business Archetype
With the CBAG, a core business archetype is innovated progressively and iteratively, with the business archetype reconceived following the definition of each additional theory of change. It’s like learning to juggle, where you start with one ball, add in a second, then a third, and so on. Each re-conception answers the questions, “what business form factor best supports all of the theories of change up to this point?”
Solving for a business archetype at this first-principles level cuts through the otherwise paralyzing complexity and uncertainty that sits at the business model-level and allows a basic solution to be holistically designed. Designing holistically is key to innovating elegant designs, as it creates the opportunity for synergies—solutions that support multiple functions simultaneously. It’s what makes a core business archetype robust.
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