Creating a New Business Through Applying the Systems‐Based Evolutionary Learning Laboratory Approach

The mission of business enterprises is to use their resources to create new values. It is believed that the learning from implementation through a cyclical process that continually explores the needs of customers is effective in terms of spending less resources under the unreliable conditions, which businesses operate. However, the sequence of implementation and adaption or turnabout (pivot) through the feedback of customers is only a process of trial and error and focusses strongly on linear thinking. The purpose of this study is to propose and validate the use of a systems‐based methodology for creating a business model that includes a more effective learning cycle. For this, the well‐proven systems‐based Evolutionary Learning Laboratory is utilised and proposed as a methodology for creating a business model. The systems thinking based learning cycle has been found to be the most useful in creating a new systems‐based business model. It was possible to identify the seed ideas for creating the concepts of a new business model. A systemic view and structure of the issue under consideration assisted the entrepreneurs to develop a shared understanding of the mental models of the multistakeholders, including the target customers. The systems model (integration of the mental models) serves as a ‘thinking map’ in the continuous learning cycle. The business ideas and strategies are identified through exploring the relationships between the different components of the model. This is followed by their validation and verification through implementation and reflection on the outcomes. The results of applying this methodology created a new business model that is based on the backgrounds and knowledge of customers and all other relevant stakeholders. The methodology does not only allow entrepreneurs to make decisions systemically but also enable them to trace the effects of the decisions after they have been implemented and to adapt where necessary in an ongoing cycle of refinement (continuous improvement). The effectiveness of the methodology in dealing with complex issues (such as developing a new business) has shown positive outcomes during an evaluation workshop. The methodology can contribute significantly to the tools that entrepreneurs are currently using. Copyright © 2014 John Wiley & Sons, Ltd.