HOW ENTREPRENEURS AND BUSINESSES CAN BETTER SOLVE COMMUNITY PROBLEMS: The Global Business Model...

BUSINESS MODEL JOBS-‐TO-‐BE-‐DONE

Design Shared Value (“Back End”)

Deliver Shared Value (“Front End”)

Business Model Environ-‐ment (BME)

Learn Ab

out B

usiness S

ystem

(PRO

JECT

/TOOL)

(“Superstructure”/“Stage”)

Man

age Shared

Value

(IM

PACT

ANALYSIS)

(“Foun

da8o

n”)

Global Business Model (GBM) Canvas for Shared Value Business Models and Projects Simply ReDesign Business Models for the Triple BoCom Line of Profit, People, and Planet

Copyright 2013. Dr. Rod King. [email protected] & hOp://businessmodels.ning.com & hOp://twiOer.com/RodKuhnKing


Design Shared Happiness (“Back End”)

Deliver Shared Happiness (“Front End”)


Learn Ab

out B

usiness S

ystem

(PRO

JECT

/TOOL)


Man

age Shared

Hap

pine

ss

(IMPA

CT ANALYSIS)

(“Foun

da8o

n”)

Global Business Model (GBM) Canvas for Shared Happiness Business Models and Projects Global Business Model (GBM) Theater: Simply ReDesign Business Models for the Triple BoCom Line of Profit, People, and Planet


The Job-‐To-‐Be-‐Done of A Business (Model/Project)

Is To Viably Learn About,

Design for, Deliver, and Manage Shared Value (Happiness)

What is “Shared Value”? “Shared Value CreaYon focuses on idenYfying the connecYon between societal and economic progress”

“The concept of shared value can be defined as policies and operaYng pracYces that enhance

the compeYYveness of a company while

simultaneously advancing the economic and social condiYons in the communiYes

in which it operates.”

Michael Porter & Mark Kramer

One-‐Page PlaTorm For

Visually DocumenVng, CreaVng, and Managing

Shared Value Business Models and Projects


Design Shared Value (Supply Infrastructure: Internal System)

“Back End”

Deliver Shared Value (Demand Infrastructure: External)

“Front End”


Learn Ab

out B

usiness S

ystem

(PRO

JECT

/TOOL)

Business Model Canvas (Extended Business)

SEMPORCES Business Chain (Ecosystem)

DESCRIPTIONS (Content: Outcomes/ AcYviYes/Tasks)

Man

age Shared

Value

(S: Shared Va

lue/Mission/IM

PACT

ANALYSIS)

Financial Value or Profit Trade-‐off

Cost (C$)

Benefit (R$)

Social Value or People Trade-‐off

Cost

Benefit

Env. Value or Planet Trade-‐off

Cost

Benefit


Global Business Model (GBM) Canvas for Shared Value Business Models and Projects Simply ReDesign Business Models for the Triple BoCom Line of Profit, People, and Planet



“Back End”


“Front End”

Business Model Environ-‐ment (BME) Industry Ecosys-‐tem Market Ecosys-‐tem Trends (PEST-‐LIED) & Comple-‐mentors Macro-‐Econo-‐mic Influen-‐cers (Society)

Learn Ab

out B

usiness S

ystem

(PRO

JECT

/TOOL)

Value Chain Canvas (Extended Business)



Man

age Shared

Value

(S: Shared Va

lue/Mission/IM

PACT

ANALYSIS)


Cost

Benefit


Cost

Benefit


Cost

Benefit

Global Business Model (GBM) Canvas: Pla]orm Showing “Profit Logic” of Value Chain Canvas

PROFIT MARGIN (Profit)

q  Past (“Done”) q  Present (“As Is”/“Doing”) q  Future (“To Be”/“To Do”)

Topics of the the Value Chain Canvas (“Yellow blocks”) are from Michael Porter’s book, Compe88ve Advantage

Service

MarkeVng & Sales

Human Resource Management

Inbound LogisVcs

OperaVons

Outbound LogisVcs

Technology

Firm Infrastructure

Procurement



“Back End”


“Front End”


Learn Ab

out B

usiness S

ystem

(PRO

JECT

/TOOL)

Shared Value Chain Canvas (Extended Business)



Man

age Shared

Value

(S: Shared Va

lue/Mission/IM

PACT

ANALYSIS)


Cost

Benefit


Cost

Benefit


Cost

Benefit

Global Business Model (GBM) Canvas: Pla]orm Showing “Shared Value Logic” of Shared Value Chain Canvas

PROFIT MARGIN (Profit)


Topics of the the Shared Value Chain Canvas (“Yellow blocks”) are mainly from Michael Porter’s book, Compe88ve Advantage

Service

MarkeVng & Sales

Human Resource Management

Inbound LogisVcs

OperaVons

Outbound LogisVcs

Technology

Firm Infrastructure

Procurement

SOCIAL VALUE (People)

ENVIRONMENTAL VALUE (Planet)



“Back End”


“Front End”


Learn Ab

out B

usiness S

ystem

(PRO

JECT

/TOOL)

4-‐Box Business Model Canvas (Extended Business)



Man

age Shared

Value

(S: Shared Va

lue/Mission/IM

PACT

ANALYSIS)


Cost (C$)

Benefit (R$)


Cost

Benefit


Cost

Benefit

Global Business Model (GBM) Canvas: Pla]orm Showing “Profit Logic” of 4-‐Box Business Model Canvas

PROFIT FORMULA


Topics of the the Value Chain Canvas (“Yellow blocks”) are from Mark Johnson’s book, Seizing the White Space

Key Resources

Key Processes

Customer Value

ProposiVon



“Back End”


“Front End”


Learn Ab

out B

usiness S

ystem

(PRO

JECT

/TOOL)




Man

age Shared

Value

(S: Shared Va

lue/Mission/IM

PACT

ANALYSIS)


Cost (C$)

Benefit (R$)


Cost

Benefit


Cost

Benefit

Global Business Model (GBM) Canvas: Pla]orm Showing “Profit Logic” of Non-‐linear Business Model Canvas

Customer Segments

(CS)

Customer RelaVonships

(CR)

Channels (CH)

Key AcVviVes (KA)

Key Resources (KA)

Key Partners (KP)

Revenue Streams (R$)


Value ProposiVon

(VP)

Cost Structure (C$)

Topics and blocks of the the Business Model Canvas are from the book, Business Model Genera8on (www.businessmodelgeneraYon.com)





Learn Ab

out B

usiness S

ystem

(PRO

JECT

/TOOL)




Man

age Shared

Value

(S: Shared Va

lue/Mission/IM

PACT

ANALYSIS)


Cost (C$)

Benefit (R$)


Cost

Benefit


Cost

Benefit

Global Business Model (GBM) Canvas: Pla]orm Showing “Profit Logic” of Linear Business Model Canvas

Key Resources (KR)

Key AcVviVes (KA)

Key Partners (KP)

Value ProposiVon

(VP)

Cost Structure (C$)



Customer RelaVonships (CR)

Channels (CH)

Customer Segments (CS)

Topics of the the Business Model Canvas (“Yellow blocks”) are from the book, Business Model Genera8on (www.businessmodelgeneraYon.com)



“Back End”


“Front End”

Business Model Environ-‐ment

Learn Ab

out B

usiness S

ystem

(PRO

JECT

/TOOL)

Lean Canvas (Extended Business)



Man

age Shared

Value

(S: Shared Va

lue/Mission/IM

PACT

ANALYSIS)


Cost (C$)

Benefit (R$)


Cost

Benefit


Cost

Benefit

Global Business Model (GBM) Canvas: Pla]orm Showing “Profit Logic” of Non-‐linear Lean Canvas

Customer Segments

Channels

Revenue Streams


Unique Value ProposiVon

Cost Structure

Topics and blocks of the the Lean Canvas are from Ash Maurya’s book, Running Lean

Key Metrics

Unfair Advan-‐tage

SoluVon

Problem





Learn Ab

out B

usiness S

ystem

(PRO

JECT

/TOOL)

Business Model Chain (Extended Business)



Man

age Shared

Value

(S: Shared Va

lue/Mission/IM

PACT

ANALYSIS)


Cost (C$)

Benefit (R$)


Cost

Benefit


Cost

Benefit

Global Business Model (GBM) Canvas: Pla]orm Showing “Shared Value Logic” of Business Model Chain/Process


E: Employees/Brand/IP

P: Process/Strategy

S: Suppliers/Partners/Input

O: Output (Product/

Service/Value ProposiYon)

Financial Pain (Disadv./Cost): -‐

Financial Delight (Adv./Benefit): +


R: Retailers/Channels/CRM

C: Customers/Consumers

M: Machinery/

Infra’

Social Pain (Disadv./Cost): -‐

Social Delight (Adv./Benefit): +

Environmental Pain (Disadv./Cost): -‐

Environmental Delight (Adv./Benefit): +



“Back End”


“Front End”


Learn Ab

out B

usiness S

ystem

(PRO

JECT

/TOOL)


Key Partners (KP)

Key Resources (KR)

Key AcVviVes (KA)

Value Prop. (VP)

Channels (CH)

Custom-‐er Rel. (CR)



S: Supplier/ Inputs

E: Employ-‐ees, etc.

M: Mach-‐inery

P: Process/ Strategy

O: Product/ Service

R: Retailers/ Distributors/CRM

C: Customer

E: Environ-‐ment


Man

age Shared

Value

(S: Shared Va

lue/Mission/IM

PACT

ANALYSIS)


Cost (C$)

Benefit (R$)


Cost

Benefit


Cost

Benefit

Global Business Model (GBM) Canvas: Document and Evaluate Projects Using Linear Business Model





“Back End”


“Front End”


Learn Ab

out B

usiness S

ystem

(PRO

JECT

/TOOL)

Business Model Canvas -‐ Topics (Extended Business)

Key Partners (KP)

Key Resources (KR)

Key AcVviVes (KA)

Value Prop. (VP)

Channels (CH)



Problem Solving Cycle (excluding “Measure”; “Learn”)

Build Plan Problem E: Environ-‐ment


Man

age Shared

Value

(S: Shared Va

lue/Mission/IM

PACT

ANALYSIS)


Cost (C$)

Benefit (R$)


Cost

Benefit


Cost

Benefit

Global Business Model (GBM) Canvas: Document and Evaluate Projects Using Problem Solving Cycle





“Back End”


“Front End”


Learn Ab

out B

usiness S

ystem

(PRO

JECT

/TOOL)


Key Partners (KP)

Key Resources (KR)

Key AcVviVes (KA)

Value Prop. (VP)

Channels (CH)




S: Supplier/ Inputs


M: Mach-‐inery


O: Product/ Service


C: Customer

E: Environ-‐ment


Learning Perspec-‐8ve

Process Perspec-‐8ve

Customer Perspec-‐ 8ve

Man

age Shared

Value

(S: Shared Va

lue/Mission/IM

PACT

ANALYSIS)


Cost (C$)

Benefit (R$)


Cost

Benefit


Cost

Benefit

Global Business Model (GBM) Canvas: Manage Performance Using PerspecYves of Balanced Scorecard (BSC)





“Back End”


“Front End”


Learn Ab

out B

usiness S

ystem

(PRO

JECT

/TOOL)


Key Partners (KP)

Key Resources (KR)

Key AcVviVes (KA)

Value Prop. (VP)

Channels (CH)




S: Supplier/ Inputs


M: Mach-‐inery


O: Product/ Service


C: Customer

E: Environ-‐ment

DESCRIPTIONS (4 “ERIC” TacVcs: Eliminate/Reduce/ Increase/Create)

Man

age Shared

Value

(S: Shared Va

lue/Mission/IM

PACT

ANALYSIS)


Cost (C$)

Benefit (R$)


Cost

Benefit


Cost

Benefit

Global Business Model (GBM) Canvas: 4 What-‐if (“ERIC”) TacVcs for Improving/DisrupVng a Business Model





“Back End”


“Front End”


Learn Ab

out B

usiness S

ystem

(PRO

JECT

/TOOL)


Key Partners (KP)

Key Resources (KR)

Key AcVviVes (KA)

Value Prop. (VP)

Channels (CH)




S: Supplier/ Inputs


M: Mach-‐inery


O: Product/ Service


C: Customer

E: Environ-‐ment

DESCRIPTIONS (SWOT Analysis: Strength/Weak-‐ness/Opp./Threat)

Man

age Shared

Value

(S: Shared Va

lue/Mission/IM

PACT

ANALYSIS)


Cost (C$)

Benefit (R$)


Cost

Benefit


Cost

Benefit

Global Business Model (GBM) Canvas: SWOT Analysis of a Business Model







Learn Ab

out B

usiness S

ystem

(PRO

JECT

/TOOL)


Key Partners (KP)

Key Resources (KR)

Key AcVviVes (KA)

Value Prop. (VP)

Channels (CH)




S: Supplier/ Inputs


M: Mach-‐inery


O: Product/ Service


C: Customer

E: Environ-‐ment


Man

age Shared

Value

(S: Shared Va

lue/Mission/IM

PACT

ANALYSIS)


Cost (C$)

Benefit (R$)


Cost

Benefit


Cost

Benefit

Global Business Model (GBM) Canvas: The 5 Levers of InnovaVon for Shared Value Business Models & Projects





“Back End”


“Front End”

Business Model Environ-‐ment (BME) Industry Ecosys-‐tem Market Ecosys-‐tem Trends (PEST-‐LIED) & Comple-‐mentors Macro-‐Econo-‐mic Influen-‐cers (Society/Cluster Dev.)

Learn Ab

out B

usiness S

ystem

(PRO

JECT

/TOOL)




Man

age Shared

Value

(S: Shared Va

lue/Mission/IM

PACT

ANALYSIS)


Cost (C$)

Benefit (R$)


Cost

Benefit


Cost

Benefit

Global Business Model (GBM) Canvas: ObjecVves/Tasks for Shared Value Business Models and Projects


(CR) Deliver local brand promise

Channels (CH)

-‐ Use local channels/ media

Key AcVviVes (KA)

-‐ Streamline processes -‐ Balance inventory

Key Resources (KA)

-‐ Local talent -‐ Improve labor condi8ons

Value ProposiVon

(VP) -‐ Develop value proposi8ons/ products/services that solve local/community/regional/na8onal/global problems

Cost Structure (C$) •  Reduce or manage (overseas) direct/indirect costs •  Eliminate waste; Increase efficiency & produc8vity •  Reduce energy consump8on/opera8ng costs

Revenue Streams (R$) •  Increase (local) revenue •  Increase market share (growth) •  Increase profitability & quality

Social Costs (-‐) •  Reduce social costs and risks •  Reduce social dispari8es,e.g., in educa8on/training •  Reduce crime and social malaise; reduce illnesses

Social Benefits (+) •  Improve community develop-‐

ment, e.g., housing •  Provide local jobs/employment •  Improve health/educa8on

Environmental Costs (-‐) •  Reduce environmental pollu8on/degrada8on •  Efficiently use resources in business (model)/ value chain/supply chain/ecosystem

Environmental Benefits (+) •  Improve condi8ons for local/

regional/na8onal growth •  Reduce carbon footprint

Customer Segments

(CS) -‐ Improve customer experience incl. community/investors/society -‐ Build customer loyalty

Key Partners (KP)

-‐ Use local/ recycled materials -‐ Improve quality and efficiency of local supply chain -‐ Collaborate locally/NGOs


Topics of the the Business Model Canvas are mainly from the book, Business Model Genera8on (www.businessmodelgeneraYon.com)

ApplicaYon of Global Business Model (GBM) Canvas

HolisYcally Design, Deliver, and Capture Shared Value



“Back End”


“Front End”


Learn Ab

out B

usiness S

ystem

(PRO

JECT

/TOOL)




Man

age Shared

Value

(S: Shared Va

lue/Mission/IM

PACT

ANALYSIS)


Cost (C$)

Benefit (R$)


Cost

Benefit


Cost

Benefit

Global Business Model (GBM) Canvas for a Shared Value Road Project in a Developing Country


(CR) •  Self-‐service/ Face-‐to-‐face •  Media

Channels (CH)

•  Physical (Road)

Key AcVviVes (KA)

(Pre)feasibility/ Financing/ Management/ Maintenance

Key Resources (KA)

•  HR (Staff) •  Firm Infra’ •  Technology

Value ProposiVon

(VP) •  Faster and

safer travel •  Regional

economic growth and develop-‐ment

•  New road

Cost Structure (C$)


Social Costs (-‐)

Social Benefits (+)

Environmental Costs (-‐)

Environmental Benefits (+)

Customer Segments

(CS) q  Road Users: •  Passenger-‐

car owners •  Van-‐owners •  Truck/Lorry-‐

owners •  Cyclists •  Pedestrians q  Gov’ment

Key Partners (KP)

Local/Overseas •  Consultants •  Contractors •  Sub-‐

contractors •  Banks •  Donors Land/Property owners Local Agencies

q  Past q  Present (“As Is”) ü  Future (Project Lifecycle: 20 yrs)




“Back End”


“Front End”


Learn Ab

out B

usiness S

ystem

(PRO

JECT

/TOOL)




Man

age Shared

Value

(S: Shared Va

lue/Mission/IM

PACT

ANALYSIS)


Cost (C$)

Benefit (R$)


Cost

Benefit


Cost

Benefit

Customer Segments

(CS) q  Road Users: •  Passenger-‐

car owners •  Van-‐owners •  Truck/Lorry-‐

owners •  Cyclists •  Pedestrians q  Gov’ment


(CR) •  Self-‐service/ Face-‐to-‐face •  Media

Channels (CH)

•  Physical (Road)

Key AcVviVes (KA)

(Pre)feasibility/ Financing/ Management/ Maintenance

Key Resources (KA)

•  HR (Staff) •  Firm Infra’ •  Technology

Key Partners (KP)

Local/Overseas •  Consultants •  Contractors •  Sub-‐

contractors •  Banks •  Donors Land/Property owners Local Agencies

Value ProposiVon

(VP) •  Faster and

safer travel •  Regional

economic growth and develop-‐ment

•  New road

Cost Structure (C$): Tangibles •  Materials including Property/Asset Purchase •  Labor including ConsulYng Fees •  Machinery/Equipment; Infrastructure FaciliYes •  Repayment/Interest on Loan (Capital); Maintenance

Revenue Streams (R$): Tangibles •  Free/Toll-‐free; Road taxes •  Time savings; ProducYvity gains •  Generated income due to

mulYplier effects; New jobs

Social Costs (-‐) •  Less expensive road maintenance •  Lower inefficiency and waste •  Displacement of local populaYon in path of new road •  DisrupYon of tradiYonal life in community

Social Benefits (+) •  Faster travel/CommuYng •  Safer travel: fewer accidents;

fewer deaths •  Greater connecYvity/trade

Environmental Costs (-‐) •  DestrucYon of flora and fauna •  Greater consumpYon of (imported) fuel •  Land scarificaYon

Environmental Benefits (+) •  Lesser consumpYon of non-‐

renewable energy

Global Business Model (GBM) Canvas for a Shared Value-‐Road Project in a Developing Country q  Past q  Present (“As Is”) ü  Future (Project Lifecycle: 20 yrs)



Design Shared Happiness (“Back Stage”)

Deliver Shared Happiness (“Front Stage”)


Learn Ab

out B

usiness S

ystem

(PRO

JECT

/TOOL)


Man

age Shared

Hap

pine

ss

(IMPA

CT ANALYSIS)

(“Foun

da8o

n”)

Global Business Model (GBM) Canvas for Shared Happiness Business Models and Projects Global Business Model (GBM) Theater: Simply ReDesign Business Models for the Triple BoCom Line of Profit, People, and Planet

The expressions of “Front Stage” and “Back Stage” are used by Alexander Osterwalder in his analogy of the Business Model Canvas as “Theater”

Date post:	22-Apr-2015
Category:	Business
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