User-driven Business Model Innovation – New Formats & Methods in Business Modeling and Interaction Design, and the Case of Magitact

The primary goal of economic activity is the creation of value, and business models describe how to create and capture such value. An informed and systematic variation and extension of fundamental business aspects such as value proposition, user experience and partnering not only helps to focus new business, attract investors, and bring new products to the market, but also feeds back on the original concepts and design. We present a human-centered process and action framework, and user-driven innovation methods for modeling new business in IT and telecommunications. The approach and potential results are exemplified through the MagiTact project. The case shows how workshops with lead users and domain experts lead to new business models for touchless near field communication and inspired technological advancement of the original ideas. Finally we explore the dynamic interplay between user-centered idea generation, business modeling and technological development in innovation projects.