5 ARCHETYPAL STRATEGIESFOR DESIGNING
Dr. Rod Kuhn KingVisual Problem Solver, Inventor, and Magician
NEW
WINNING BUSINESS MODELS
Copyright 2010. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
GURUS
BUSINESS MODEL DESIGN(BMD) MAP
BUSINESS MODEL DESIGN MAP
1. BUSINESS MODEL PROBLEM & DISCOVERY 2. BUSINESS MODEL VALIDATION
3. BUSINESS MODEL EXECUTION 4. BUSINESS MODEL MANAGEMENT
Copyright 2010. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
GURUS
QUESTIONS FOREACH STAGE OF
BUSINESS MODEL DESIGN
QUESTIONS FOR EACH STAGE OFTHE MAP FOR BUSINESS MODEL DESIGN
2. WHERE MUST THE BUSINESS GO? What Positioning?
3. HOW WILL THE BUSINESS GET THERE? What Business Model?
1. WHAT KIND OF A BUSINESS ARE WE? What Industry/Vision?
4. HOW WILL WE KNOW WHEN THE BUSINESS’S VISION IS REALISED?
5 ARCHETYPAL STRATEGIES FOR DESIGNING WINNING BUSINESS MODELSGURUS
ARCHETYPALSTRATEGIES
Existing Market (Segment) (Compete on Existing Dimensions of Customer Experience: Cost vs. Value or Diff.)
“Luxury Spot” Business Model: High Differentiation & High Cost Strategy
“Disruption Spot” Business Model: Low Cost or Disruptive Innovation Strategy
“Practical Impossibility” Business Model: Emerging Blue Ocean Strategy
“Sweet Spot” Business Model: High Differentiation & Moderate Cost Strategy
New Market (Universe) (Compete on New Dimensions of Customer Experience: Pain vs. Delight)
“New Market” Business Model: Ideal Market Disruption Strategy/ Ideal Blue Ocean Strategy/ Ideal Market Strategy
Zooming-inMarket Strategies
Zooming-outMarket Strategy
Copyright 2010. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
(-): PAIN
(+): DELIGHTDisruption Spot
Luxury Spot
Strategic Choice
Low-end Disruption(Disruptive Innovator: Low-end, Overserved
Customers; Low Margin;‘Good Enough’ Quality)
Cost(Adoption Barrier; Complexity; Inaccessibility; Delay)
Sustaining Innovation(Incumbent: High end,
‘20-80’ Customers;High Profit Margin)Performance
(Functionality;Quality)
KeyOMG-Experience:
Undesirable Experience:
GURUS Cost-Performance Map Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models
Market Segment (Customer Problem/Goal): ………………………………………………………
Growth
Competition
Ideal Value Space(Ideal Market/Ideal Impossibility/Ideal Tool/Ideal Universe/New Market Disruption)
Copyright 2010. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
(-): PAIN
(+): DELIGHTDisruption Spot
Luxury Spot
Strategic Choice
KeyOMG-Experience:
Undesirable Experience:
GURUS
Sweet SpotSTARTUP
Blue Ocean STARTUP
(“Practical Impossibility;Value Innovation”)
Luxury SpotSTARTUP
(“Existing Market”)
Disruption Spot/Lean STARTUP
(“Resegmented/Reframed Market; Lean/No-frills Niche”)
VolcanoSTARTUP
OasisSTARTUP
Green OceanSTARTUP
Red OceanSTARTUP
No-Man’s-IslandSTARTUP
3
10
6
3
6
10
Ideal Value Space(Ideal Market/Ideal Impossibility/Ideal Tool/Ideal Universe/New MarketSTARTUP)
Copyright 2010. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
10 ARCHETYPAL STARTUPS & MARKET TYPES “What Kind of a Startup Are We? What Kind of a Startup Must We Be? How?”
Differentiation(Performance)
Cost
WHY?
HOW MANY? HOW MUCH?
WHAT (JOBS)?
HOW?
WHAT NEXT?
WHERE?
CUSTOMER JOBS TO BE DONE (JBTD)
What’s the evidence?
WHEN?
WHO?
CUSTOMER JOBS TO BE DONE (JBTD)
Visually Facilitate Collaboration, Ideas Management, Creativity, and Customer Problem Solving
GURUS
Copyright 2010. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
ITENN E: ENVIRONMENT
P: PROCESSES
S: SUPPLIERS/MATERIALS
R: RETAILERS/DISTRIBUTORS/ CHANNELS
O: OUTPUTS (PRODUCT/ SERVICE)
E: EMPLOYEES/KNOWLEDGE ASSETS/CULTURE
GLOBAL VALUE CHAIN:
OUTCOMES/GOALS Customer Value Proposition (Job) Business Value = Revenue/Cost Customer Value (Experience) = Customer Delight/Customer Pain
M: MACHINERY/EQUIPMENT/ FACILITY/LOCATION
C: CUSTOMERS/CONSUMERS & RELATIONSHIPS
GLOBAL VALUE CHAIN
Zoomable Elements of a Value Chain or Business Model: “SEMPORCE”GURUS
Copyright 2010. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
E: ENVIRONMENT
• Competitors/Industry/Economy• Partners/Complementors• Investors: Large Capital Investment• Public/Society/Enemies• Government/NGOs/Environment
GLOBAL VALUE CHAIN FOR LUXURY SPOT
Customer Value Proposition:
[REVENUE/COST]
P: PROCESS CHAIN/GOALS
Customer Experience-Driven/Inno. Customer Relationship Management Outstanding Marketing/Branding Excellent R & D/Product Engineering Selective Customization
R: RETAILERS/DISTRIBUTORS/ PROMOTION CHANNELS Few Stores: High Cost, Low Volume- Products/Services Exclusive Access
E: EMPLOYEES/KNOWLEDGE ASSETS/ CULTURE Decentralized Organization High Level of Employee Creativity Design/Solutions-Competence Intimate Knowledge of the Consumer Organic/“Collaboration” Culture
C: CONSUMERS/CUSTOMERS
Personalized Interaction/Experience: High Touch, High Feel; Co-creation Customer Experience Segmentation Superior Customer Support High end Customers: Conservative
O: OUTPUTS/PRODUCT/SERVICE
Rare Product/Service; Premium Price High Performance; High Quality Highly Recognized Brand; Extension Feature-rich; High Profit Margin Prestigious; Cool Factor; Social Aura
S: SUPPLIERS/MATERIALS
Novel/Unique Materials
M: MACHINERY/EQUIPMENT/ FACILITY/LOCATION
Highly Innovative/Disruptive Technology Luxury Ambience High Rent; Premium/Urban Location
KEY
Copyright 2010. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
Existing Revenue (Reward/Info flow) Potential Revenue (Reward/Info flow)
Existing Cost (Entry Barrier/Info Flow) Potential Cost (Entry Barrier/Info Flow)
GURUSLUXURY SPOT-BUSINESS MODEL
Collaboratively Expand Market and Become Uncontested Leader in Existing Fast-growing Industry
E: ENVIRONMENT
• Competitors/Econ./Complementors• Partners: Distribution Channels• Investors• Public/Society/Enemies• Government/NGOs/Environment
GLOBAL VALUE CHAIN FOR DISRUPTION SPOT
Customer Value Proposition::
[REVENUE/COST]
P: PROCESS CHAIN/GOALS
Standardization; Modularization Process Improvement & Waste Min. Optimization/Outsourcing/Innovation Customer Development; Lean Startup Process Improvement & Waste Red.
R: RETAILERS/DISTRIBUTORS/ PROMOTION CHANNELS
Online Business/Store Offline: Superstores/Franchises: Low Cost, High Volume-Products/ Services
E: EMPLOYEES/KNOWLEDGE ASSETS/ CULTURE Centralized Organization Productivity and Process-focused Lower Paid Employees Vertical Teams/Structured Jobs “Cultivation/Control” Culture
C: CONSUMERS/CUSTOMERS
Mass Market: Overserved/Unserved Early/Fast Adopters; Pragmatists ‘Good Enough’ or Minimum Customer Service
O: OUTPUTS/PRODUCT/SERVICE
Simple-to-use Product/Service ‘Good Enough’ Functionality/Quality Low/Discounted Price Widely Available; Fast-moving
S: SUPPLIERS/MATERIALS
Low-price and Quality-Compliant Suppliers Contracted/Outsourced Suppliers
M: MACHINERY/EQUIPMENT/ FACILITY/LOCATION Cost-reduction Platform High Quality/Scalable IT Architecture Optimized Plant Capacity/Infra’ High Asset Utilization Low Rent/Suburban Location
KEY
Copyright 2010. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
Existing Revenue (Reward/Info flow) Potential Revenue (Reward/Info flow)
Existing Cost (Entry Barrier/Info Flow) Potential Cost (Entry Barrier/Info Flow)
GURUSDISRUPTION SPOT-BUSINESS MODEL
Collaboratively Expand Market and Become Uncontested Leader in Emerging Fast-growing Industry
E: ENVIRONMENT
• Competitors/Econ./Complementors• Partners: Distribution Channels• Investors• Public/Society/Enemies• Government/NGOs/Environment
GLOBAL VALUE CHAIN FOR BLUE OCEAN
Customer Value Proposition::
[REVENUE/COST]
P: PROCESS CHAIN/GOALS
Ambidextrous Business Model Experimentation: Fast and Low-cost Failures; Big (Disruptive) Wins Unique Technology (IP); Agile Process Mass Customization; Just-in-Time
R: RETAILERS/DISTRIBUTORS/ CHANNELS/INTERFACE Online Business/Store Offline: Superstores; Franchises Real-time Transaction of Orders Integrated Channel Management
E: EMPLOYEES/KNOWLEDGE ASSETS/ CULTURE Highly Productive and Creative Discovery-driven Learning Customer Development/Lean Startup Fast Decisions Ambidextrous Org.: De-/Centralized
C: CONSUMERS/CUSTOMERS
Long-tail (80/20) Consumers/ Customers Short-head (20/80) Consumers/ Customers; Online Support
O: OUTPUTS/PRODUCT/SERVICE
High Quality; Feature-differentiated High Differentiation; Recognizable Brand; Unique Design Low Price or Free; Widely Accessible Self-service
S: SUPPLIERS/MATERIALS
Real-time Integrated Scheduling/ Shipping/Warehouse Management External Co-creators Cheaper Supplies: Raw Materials
M: MACHINERY/EQUIPMENT/ FACILITY/LOCATION Informal Ambience/Atmosphere Advanced Technology Platform: Automation Massive/Scalable Infrastructure Modular Architecture: Interoperable
KEY
Copyright 2010. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
Existing Revenue (Reward/Info flow) Potential Revenue (Reward/Info flow)
Existing Cost (Entry Barrier/Info Flow) Potential Cost (Entry Barrier/Info Flow)
GURUSBLUE OCEAN-BUSINESS MODEL
Collaboratively Expand Market and Become Uncontested Leader in Emerging Fast-growing Industry
ITENN E: ENVIRONMENT
• Competitors/Industry/Economy• Partners/Complementors• Investors/Board of Directors• Public/Society/Enemies/Non-customer• Government/NGOs/Environment
P: PROCESSES
• Preparing/Searching/Discovering• Purchasing/Leasing• Receiving/Delivering/Learning/Installing• Using/Sharing/Complementing• Maintaining/Storing/Managing/Disposing
S: SUPPLIERS/MATERIAL
E: EMPLOYEES/KNOWLEDGE ASSETS/CULTURE
GLOBAL VALUE CHAIN(PERFORMANCE DASHBOARD)
OUTCOMES/GOALS Customer Value Proposition (Job) Business Value = Revenue/Cost Customer Value (Experience) = Customer Delight/Customer Pain
M: MACHINERY/EQUIPMENT/ FACILITY/LOCATION
C: CUSTOMERS & CONSUMERS RELATIONSHIPS Core Customers/Users/Influencers
Peripheral Customers/Users/Influ.
Remote Customers/Users/Influ.
GENERIC ELEMENTS OF GLOBAL VALUE CHAIN MAP
Collaboratively List, Sketch, Organize, and/or Manage Metrics for Elements of Value ChainGURUS
R: RETAILERS/DISTRIBUTORS/ CHANNELS Retailers/Distributors/Channels Place/Warehousing/Location Promotion/Buzz Branding/Marketing Advertising Selling/Relationship Management
O: OUTPUTS (PRODUCT/ SERVICE) Product/Service Pricing Packaging Display Design Plan
Copyright 2010. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
ITENN E: ENVIRONMENT/INVESTOR Revenue (Sales) Cash Burn Rate Month of Cash Left Time to Cash Flow-Breakeven Contribution Margin
P: PROCESSES Cycle Time for Pivots/Prototyping/ Versioning/Product Releases Average Time to First Order Average Time to Follow-on Order Customer Feedback/Voice
S: SUPPLIERS/MATERIALS
R: RETAILERS/DISTRIBUTORS/ CHANNELS
Advertising Expenses
Viral Coefficient
O: OUTPUTS (PRODUCT/ SERVICE) No. of Minimum Viable Products No. of Prototypes/Releases Average Size Order Average Selling Price per Order Web Page/Site: Total Visits; Total Page Views
E: EMPLOYEES/KNOWLEDGE ASSETS/CULTURE Agile/Lean (‘Small’) Teams Lessons Learned/Insights No. of Experiments/Interviews Effectiveness/Proficiency of Sale Person Revenue per Sale Person
GLOBAL VALUE CHAIN DASHBOARD (Startup)
OUTCOMES/GOALS: Customer Value Proposition Business Value = Revenue/Cost Customer Value (Experience) = Customer Delight/Customer Pain
M: MACHINERY/EQUIPMENT/ FACILITY/LOCATION
C: CUSTOMERS/CONSUMERS & RELATIONSHIPS No. of Prospects/Registrations No. of Customers/Referrals Cost per Acquisition (Paid/Net) Customer Lifetime Value Customer Loyalty/Retention: Net Promoter Score (NPS)
GLOBAL VALUE CHAIN DASHBOARD: Example (Startup)GURUS
Copyright 2010. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
(-): PAIN
(+): DELIGHTDisruption Spot
Luxury Spot
Strategic Choice
KeyOMG-Experience:
Undesirable Experience:
Profit Margin
No. of Direct Competitors(Level of Commoditization)
Blue Ocean(“Practical Impossibility”)
Luxury Spot
Disruption Spot
Green Ocean Red Ocean
JOURNEY OF
THE BLUE OCEAN STARTUP
3
100%
6
10%
20%
10 (Global)
BLUE
OCE
AN ST
ARTU
P
Copyright 2010. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
(-): PAIN
(+): DELIGHTDisruption Spot
Luxury Spot
Strategic Choice
Profit Margin
No. of Direct Competitors(Level of Commoditization)
COMPANY BUILDING COMPANY SCALING/ACQUISITION
CUSTOMER CREATION
CUSTOMER DISCOVERY & VALIDATION
‘CUSTOMER DEVELOPMENT’ JOURNEY OF
THE BLUE OCEAN STARTUP
3
100%
6
10%
20%
10 (Global)
BLUE
OCE
AN ST
ARTU
P
Copyright 2010. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
Copyright 2010. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
Apple’s iPodBusiness Model Canvas,Global Value Chain Map,
andBusiness Model Matrix
ITENN
GURUS
BUSINESS MODEL CANVASAlexander Osterwalder
Map, Analyze, and Design Your Business Model
ITENN E: ENVIRONMENT
P: PROCESSES
S: SUPPLIERS/MATERIALS
R: RETAILERS/DISTRIBUTORS/ CHANNELS
O: OUTPUTS (PRODUCT/ SERVICE)
E: EMPLOYEES/KNOWLEDGE ASSETS/CULTURE
GLOBAL VALUE CHAIN:
OUTCOMES/GOALS Customer Value Proposition (Job) Business Value = Revenue/Cost Customer Value (Experience) = Customer Delight/Customer Pain
M: MACHINERY/EQUIPMENT/ FACILITY/LOCATION
C: CUSTOMERS/CONSUMERS & RELATIONSHIPS
GURUS
Copyright 2010. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
GLOBAL VALUE CHAIN MAPRod Kuhn King
Map, Analyze, and Design Elements of Your Business Model & Value Chain (“SEMPORCE”)
ITENN E: ENVIRONMENT
Key Partners (KP)
P: PROCESSES
Key Activities (KA)
S: SUPPLIERS/MATERIALS
Key Resources (KR) – Suppliers
R: RETAILERS/DISTRIBUTORS/ CHANNELS
Channels (CH)
O: OUTPUTS (PRODUCT/ SERVICE)
Key Resources (KR) – Product/ Service
E: EMPLOYEES/KNOWLEDGE ASSETS/CULTURE
Key Resources (KR) – Employees
GLOBAL VALUE CHAINFOR “BUSINESS MODEL
CANVAS”: GOALS Customer Value Proposition (VP) Revenue Streams (R$) Cost Structure (C$)
M: MACHINERY/EQUIPMENT/ FACILITY/LOCATION
Key Resources (KR) – Machinery
C: CUSTOMERS/CONSUMERS & RELATIONSHIPS
Customer Segments (CS)
Customer Relationships (CR)
GLOBAL VALUE CHAIN FOR “BUSINESS MODEL CANVAS”
Visually Observe Similarities and Differences Between Global Value Chain & Business Model Canvas
GURUS
Copyright 2010. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
ITENN E: ENVIRONMENT Key Partners (KP) Record Companies Original Equipment Manufactur- ers (OEMs)
P: PROCESSES Key Activities (KA): Hardware Design Software Design Marketing
S: SUPPLIERS/MATERIALS
Key Resources (KR) – Suppliers
R: RETAILERS/DISTRIBUTORS/ CHANNELS
Channels (CH) iTunes Store www.apple.com Apple Stores Selected Retail Stores
O: OUTPUTS (PRODUCT/ SERVICE)
Key Resources (KR) – Product/ Service iPod Hardware iTunes Software Content & Agreements
E: EMPLOYEES/KNOWLEDGE ASSETS/CULTURE
Key Resources (KR) – Employees Staff Apple Brand
APPLE INC.: iPod (2001) Customer Value Proposition (VP): “A Thousand Songs in Your Pocket” Revenue Streams (R$): iPod Hard- ware; iTunes Store; Commissions Cost Structure (C$): Employees; Manufacturing; Marketing & Sales
M: MACHINERY/EQUIPMENT/ FACILITY/LOCATION
Key Resources (KR) – Machinery
C: CUSTOMERS/CONSUMERS & RELATIONSHIPS
Customer Segments (CS) Luxury Spot; Mass Market Customer Relationships (CR) “Lovemark” Switching Costs
GLOBAL VALUE CHAIN FOR APPLE INC.: iPod
Visually Observe Similarities and Differences Between Global Value Chain & Business Model Canvas
GURUS
Copyright 2010. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
FOCUS “PIVOT” PROCESS: VALUE INNOVATION TACTICS (What if … E.R.I.C.?) OUTCOME:FUTURE(DISRUPTIVE)BUS. MODEL
BUSINESS/GLOBAL VALUE CHAIN
GIVEN BUSINESS MODEL
E:Eliminate
R: Reduce/Replace
I: Increase
C: Create
INPUT (SUPPLIERS/ MATERIALS/ENERGY)
ELEMENTS(EMPLOYEES/MACHINERY)
Staff/Apple Brand
PROCESS(Bus. Process/ Strategies)
Hardware Design/ Software Design/Marketing
OUTPUTS:PRODUCT/SERVICE
iPod Hardware/ iTunes Software/Content & Agreements
RETAILERS/DISTRIB./CHANNELS
iTunes; apple.com; Apple Stores/Others
CONSUMERS/CUSTOMERS (Experience)
Luxury Spot/Mass Market
ENVIRONMENT - COMPETITORS (Industry)- PARTNERS (Complementors)- INVESTORS (Revenue/Cost)- PUBLIC/SOCIETY/Enemies- GOVERNMENT/NGOs
Record Companies/Original Equipment Manufacturers (OEMs)/…
BUSINESS MODEL PIVOT FOR APPLE INC.: iPod - 2001 Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models
SYST
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Market Segment (Customer Problem): ‘Fragmented’ Music ExperienceMission/Vision: “… Apple leads the digital music revolution. …”
HYPOTHESES PROBLEMS/PAIN (WEAKNESS-ES/THREATS)
GOALS/Objectives/Strategies/Tactics/ Initiatives/Projects
Key Metrics/ Performance Indicators/Targets
Business Experiences (Impacts)
Description of BUSINESS/GLOBAL VALUE CHAIN
Delight(Revenue)
Pain(Cost)
S: Suppliers
E: Employees/ Knowledge Assets
Staff/Apple Brand/
Staffing Cost
M: Machinery/ Infrastructure
Hardware Design/ Software Design/Marketing
P: Processes MarketingSales
Marketing CostSales Cost
O: Outputs(Product/Service)
iPod Hardware/ iTunes Software/Content & Agreements
R: Retailers/ Distributors/Channels
iTunes; apple.com;Apple Stores/Other Retailers
C: Consumers/Customers
Luxury Spot/Mass Market
High Revenue (Hardware)
E: Environment Record Companies/Original Equipment Manufacturers (OEMs)/…
Commissions
VALUE CHAIN(“SEMPORCE”)
BUSINESS ECOSYSTEM
Customer Value Proposition:“A Thousand Songs in Your Pocket”
BUSINESS VALUE(PROFIT MARGIN)
BUSINESS MODEL PLAN FOR APPLE INC.: iPod - 2001 Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models
GURUS
Mission/Vision: “… Apple leads the digital music revolution. …” Market Segment (Customer Problem): ‘Fragmented’ Music Experience
FOCUS
BUSINESS/GLOBAL VALUE CHAIN
DESCRIPTION
INPUT (SUPPLIERS/ MATERIALS/ENERGY)
ELEMENTS(EMPLOYEES/MACHINERY)
PROCESS(Bus. Process/ Strategies)
OUTPUTS:PRODUCT/SERVICE
RETAILERS/DISTRIB./CHANNELS
CONSUMERS/CUSTOMERS (Experience)
ENVIRONMENT - COMPETITORS (Industry)- PARTNERS (Complementors)- INVESTORS (Revenue/Cost)- PUBLIC/SOCIETY/Enemies- GOVERNMENT/NGOs
Mission/Vision: …………………….………………………………………………….
BUSINESS MODEL MATRIX: Template Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models
SYST
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Market Segment (Customer Problem/Goal): ……………………….….…
Copyright 2010. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
FOCUS EVOLUTION OF BUSINESS MODEL IDEAL BUSINESS MODEL
BUSINESS/GLOBAL VALUE CHAIN
DESCRIPTION/INDUSTRY
PASTBUSINESS MODEL
PRESENTBUSINESS MODEL
FUTUREBUSINESS MODEL
INPUT (SUPPLIERS/ MATERIALS/ENERGY)
ELEMENTS(EMPLOYEES/MACHINERY)
PROCESS(Bus. Process/ Strategies)
OUTPUTS:PRODUCT/SERVICE
RETAILERS/DISTRIB./CHANNELS
CONSUMERS/CUSTOMERS (Experience)
ENVIRONMENT - COMPETITORS (Industry)- PARTNERS (Complementors)- INVESTORS (Revenue/Cost)- PUBLIC/SOCIETY/Enemies- GOVERNMENT/NGOs
Mission/Vision: …………………….………………………………………………….
BUSINESS MODEL EVOLUTION Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models
SYST
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Market Segment (Customer Problem/Goal): ……………………….….…
Copyright 2010. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
FOCUS BUSINESS MODEL LIFECYCLE: Five Stages in the Life of a Business Model
BUSINESS/GLOBAL VALUE CHAIN
DESCRIPTION/INDUSTRY
BIRTH GROWTH MATURITY DECLINE DEATH
INPUT (SUPPLIERS/ MATERIALS/ENERGY)
ELEMENTS(EMPLOYEES/MACHINERY)
PROCESS(Bus. Process/ Strategies)
OUTPUTS:PRODUCT/SERVICE
RETAILERS/DISTRIB./CHANNELS
CONSUMERS/CUSTOMERS (Experience)
Early Adopters/Innovators
Early Majority Late Majority Overserved/Underserved
Switchers
ENVIRONMENT - COMPETITORS (Industry)- PARTNERS (Complementors)- INVESTORS (Revenue/Cost)- PUBLIC/SOCIETY/Enemies- GOVERNMENT/NGOs
BUSINESS MODEL LIFECYCLE Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models
SYST
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Copyright 2010. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
FOCUS BUSINESS MODEL (CUSTOMER/PRODUCT) DEVELOPMENT DASHBOARD LEARNING:Findings/ Insights/Deci-sions/Actions
BUSINESS/GLOBAL VALUE CHAIN
DESCRIPTION/INDUSTRY
BUSINESS MODEL PROB. & DISCOVERY
BUSINESS MODEL VALIDATION
BUSINESS MODEL EXECUTION
BUSINESSMODEL MANAGEMENT
INPUT (SUPPLIERS/ MATERIALS/ENERGY)
ELEMENTS(EMPLOYEES/MACHINERY)
PROCESS(Bus. Process/ Strategies)
OUTPUTS:PRODUCT/SERVICE
RETAILERS/DISTRIB./CHANNELS
CONSUMERS/CUSTOMERS (Experience)
Early Adopters/Innovators
Early Majority Late Majority Loyal/Overserved/Underserved
ENVIRONMENT - COMPETITORS (Industry)- PARTNERS (Complementors)- INVESTORS (Revenue/Cost)- PUBLIC/SOCIETY/Enemies- GOVERNMENT/NGOs
BUSINESS MODEL DEVELOPMENT (BMD) MATRIX: Template Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models
SYST
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S)GURUS
Copyright 2010. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
FOCUS BUSINESS MODEL (CUSTOMER/PRODUCT) DEVELOPMENT DASHBOARD LEARNING:Findings/ Insights/Deci-sions/Actions
BUSINESS/GLOBAL VALUE CHAIN
DESCRIPTION/INDUSTRY
BUSINESS MODEL PROB. & DISCOVERY
BUSINESS MODEL VALIDATION
BUSINESS MODEL EXECUTION
BUSINESSMODEL MANAGEMENT
INPUT (SUPPLIERS/ MATERIALS/ENERGY)
ELEMENTS(EMPLOYEES/MACHINERY)
PROCESS(Bus. Process/ Strategies)
Envision, Brain-storm, Search for, and/or Discover Business Model
Validate Business Model
Launch/Scale Business Model; Develop Mar-keting Roadmap
Build Company Culture;Grow Company
OUTPUTS:PRODUCT/SERVICE
Minimum Pro-duct: Desirable/ Viable/Feasible
Product-Market Fit: Prototype/ Pilot/No-frills
Product-Solution Fit: Full Soft-ware/ Hardware
More Fully Featured Product: Software/ Hardware
RETAILERS/DISTRIB./CHANNELS
CONSUMERS/CUSTOMERS (Experience)
Early Adopters/Innovators
Early Majority Late Majority Loyal/Overserved/Underserved
ENVIRONMENT - COMPETITORS (Industry)- PARTNERS (Complementors)- INVESTORS (Revenue/Cost)- PUBLIC/SOCIETY/Enemies- GOVERNMENT/NGOs
BUSINESS MODEL DEVELOPMENT (BMD) MATRIX: Populated Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models
SYST
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S)GURUS
Copyright 2010. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
FOCUS BUSINESS MODEL TRENDS IN AN ECONOMY LEARNING:Findings/ Insights/Deci-sions/Actions
BUSINESS/GLOBAL VALUE CHAIN
DESCRIPTION/INDUSTRY
PHYSICALSECTOR
SOCIALSECTOR
KNOWLEDGESECTOR
SPIRITUAL SECTOR
INPUT (SUPPLIERS/ MATERIALS/ENERGY)
ELEMENTS(EMPLOYEES/MACHINERY)
PROCESS(Bus. Process/ Strategies)
OUTPUTS:PRODUCT/SERVICE
RETAILERS/DISTRIB./CHANNELS
CONSUMERS/CUSTOMERS (Experience)
ENVIRONMENT - COMPETITORS (Industry)- PARTNERS (Complementors)- INVESTORS (Revenue/Cost)- PUBLIC/SOCIETY/Enemies- GOVERNMENT/NGOs
BUSINESS MODEL TRENDS Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models
SYST
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S)GURUS
Copyright 2010. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
FOCUS COMPETITORS/SECTOR/INDUSTRY FUTURE(DISRUPTIVE/IDEAL)BUS. MODEL
BUSINESS/GLOBAL VALUE CHAIN
GIVENBUS. MODEL
BUS. MODEL 1: BUS. MODEL 2: BUS. MODEL 3: BUS. MODEL …
INPUT (SUPPLIERS/ MATERIALS/ENERGY)
ELEMENTS(EMPLOYEES/MACHINERY)
PROCESS(Bus. Process/ Strategies)
OUTPUTS:PRODUCT/SERVICE
RETAILERS/DISTRIB./CHANNELS
CONSUMERS/CUSTOMERS (Experience)
ENVIRONMENT - COMPETITORS (Industry)- PARTNERS (Complementors)- INVESTORS (Revenue/Cost)- PUBLIC/SOCIETY/Enemies- GOVERNMENT/NGOs
Mission/Vision: …………………….………………………………………………….
INDUSTRY BUSINESS MODELS Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models
SYST
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Market Segment (Customer Problem/Goal): ……………………….….…
Copyright 2010. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
FOCUS STRATEGY: How must the business model get there? Where must business model go?BUSINESS/
GLOBAL VALUE CHAINWhere currently is business model?
INPUT (SUPPLIERS/ MATERIALS/ENERGY)
ELEMENTS(EMPLOYEES/MACHINERY)
PROCESS(Bus. Process/ Strategies)
OUTPUTS:PRODUCT/SERVICE
RETAILERS/DISTRIB./CHANNELS
CONSUMERS/CUSTOMERS (Experience)
ENVIRONMENT - COMPETITORS (Industry)- PARTNERS (Complementors)- INVESTORS (Revenue/Cost)- PUBLIC/SOCIETY/Enemies- GOVERNMENT/NGOs
Mission/Vision: …………………….………………………………………………….
BUSINESS MODEL PLANNING Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models
SYST
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Market Segment (Customer Problem/Goal): ……………………….….…
Copyright 2010. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
HYPOTHESES PROBLEMS/PAIN (WEAKNESS-ES/THREATS)
GOALS/Objectives/Strategies/Tactics/ Initiatives/Projects
Key Metrics/ Performance Indicators/Targets
Business Experiences (Impacts)
Description of BUSINESS/GLOBAL VALUE CHAIN
Delight(Revenue)
Pain(Cost)
S: Suppliers
E: Employees/ Knowledge Assets
M: Machinery/ Infrastructure
P: Processes
O: Outputs(Product/Service)
R: Retailers/ Distributors/Channels
C: Consumers/Customers
E: Environment
VALUE CHAIN(“SEMPORCE”)
BUSINESS ECOSYSTEM
Customer Value Proposition (Job To Be Done): BUSINESS VALUE(PROFIT MARGIN)
GURUS
Mission/Vision: …………………….…………………………………………………. Market Segment (Customer Problem/Goal): ……………………….….…
BUSINESS MODEL PLAN
Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models
Copyright 2010. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
FOCUS PROCESS: SWOT Analysis FUTURE(DISRUPTIVE/IDEAL)BUS. MODEL
BUSINESS/GLOBAL VALUE CHAIN
GIVENBUS. MODEL
S:Strengths
W:Weaknesses
O:Opportunities
T:Threats
INPUT (SUPPLIERS/ MATERIALS/ENERGY)
ELEMENTS(EMPLOYEES/MACHINERY)
PROCESS(Bus. Process/ Strategies)
OUTPUTS:PRODUCT/SERVICE
RETAILERS/DISTRIB./CHANNELS
CONSUMERS/CUSTOMERS (Experience)
ENVIRONMENT - COMPETITORS (Industry)- PARTNERS (Complementors)- INVESTORS (Revenue/Cost)- PUBLIC/SOCIETY/Enemies- GOVERNMENT/NGOs
Mission/Vision: …………………….………………………………………………….
BUSINESS MODEL SWOT ANALYSIS Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models
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Market Segment (Customer Problem/Goal): ……………………….….…
Copyright 2010. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
FOCUS “PIVOT” PROCESS: VALUE INNOVATION TACTICS (What if … E.R.I.C.?) FUTURE(DISRUPTIVE/IDEAL)BUS. MODEL
BUSINESS/GLOBAL VALUE CHAIN
GIVENBUS. MODEL
E:Eliminate
R: Reduce/Replace
I: Increase
C: Create
INPUT (SUPPLIERS/ MATERIALS/ENERGY)
ELEMENTS(EMPLOYEES/MACHINERY)
PROCESS(Bus. Process/ Strategies)
OUTPUTS:PRODUCT/SERVICE
RETAILERS/DISTRIB./CHANNELS
CONSUMERS/CUSTOMERS (Experience)
ENVIRONMENT - COMPETITORS (Industry)- PARTNERS (Complementors)- INVESTORS (Revenue/Cost)- PUBLIC/SOCIETY/Enemies- GOVERNMENT/NGOs
Mission/Vision: …………………….………………………………………………….
BUSINESS MODEL PIVOT Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models
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Market Segment (Customer Problem/Goal): ……………………….….…
FOCUS “PIVOT” PROCESS: VALUE INNOVATION TACTICS (What if … E.R.I.C.?) FUTURE(DISRUPTIVE/IDEAL)BUS. MODEL
BUSINESS/GLOBAL VALUE CHAIN
GIVENBUS. MODEL
E:Eliminate
R: Reduce
I: Increase
C: Create
INPUT (SUPPLIERS/ MATERIALS/ENERGY)
Waste/Defects Waste/Defects/Energy
Efficiency of Logistics/Digitalization/
Partnerships/Collaborations
ELEMENTS(EMPLOYEES/MACHINERY)
Unprofitable Assets/Obsolete equip-ment/machinery/Manual/Travel
Assets/Training/Staff/Compensation/Materials/Meals/Fuel/Travel/Location
Assets/IP/Training/Productivity/IT/Knowledge/ Motivation/Security
Assets/IP/Outsourcing/Competence/Platform
PROCESS(Bus. Process/ Strategies)
Delays/Complexity/Bottlenecks/Waste/Defects/Risks/ Uncertainties
Delays/Complexity/Bottlenecks/Waste/Risks/Uncertainties/Marketing/Debt
Efficiency/Speed/Agility/Flexibility/ Reliability/Accuracy/ Customization
Digitalization/Integration/Pricing unit/KPIs
OUTPUTS(PRODUCT/SERVICE)
Dissatisfiers: Cost/Concessions/Complexity/Delays/Aging
Delighters: QualityDissatisfiers: Cost/Maintenance/Range/Choice/Complexity
Dissatisfiers: CostDelighters/Value: Convenience/Prestige/Useability/Brand
Delighters: Theme/Thrill/Fun/Music/Art/Adventure
RETAILERS/DISTRIB./CHANNELS
Distribution outlets/ Retailers
Distribution outlets/Marketing/Ad.
Distribution outlets/Marketing/Ad./Service
Website/Word-of-mouth
CONSUMERS/CUSTOMERS (Experience)
Dissatisfiers:Pain/Objections/ Complaints
Dissatisfiers:Pain/Objections/ Complaints
Delighters/Key metrics: Quality/Pro-ductivity/Profitability
Demand/Goal: Niches/Exper./Crowdsourcing
ENVIRONMENT - COMPETITORS (Industry)- PARTNERS (Complementors)- INVESTORS (Revenue/Cost)- PUBLIC/SOCIETY/Enemies- GOVERNMENT/NGOs
Industry barriers/ constraints/Competition/Risks/Threats/Uncertainties
Environmental Risks/Competition/Risks/Threats/Uncertainties/Environmental degradation
Profit (Margin)/ROI/Share price/Cash flow velocity/Tracking/Entry barriers/Env. Friendliness
Partnerships/Mergers/ Competitive Intelligence/ Threshold ev./ Entry barriers
Mission/Vision: …………………….………………………………………………….
BUSINESS MODEL PIVOT: Scenarios Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models
SYST
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Market Segment (Customer Problem/Goal): Increase or Appropriately Reduce CUSTOMER VALUE QUOTIENT
GURUS
SYSTEM ADJACENT (PERIPHERAL/ALTERNATIVE) BUSINESS MODELS FUTURE(VISIONARY/ IDEAL)BUS. MODEL
BUSINESS/GLOBAL VALUE CHAIN
PRESENT/COREBUSINESS MODEL
Adjacency1:
Adjacency2:
Adjacency3:
Adjacency…
S: Suppliers
E: Employees/ Knowledge Assets
M: Machinery/ Infrastructure
P: Processes
O: Outputs(Product/Service)
R: Retailers/ Distributors/Channels
C: Consumers/Customers
E: Environment
VALUE CHAIN(“SEMPORCE”)
CORE Customer Value Proposition (Job To Be Done):
BUSINESS MODEL ADJACENCIES Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models
GURUS
Mission/Vision: …………………….…………………………………………………. Market Segment (Customer Problem/Goal): ……………………….….…
Copyright 2010. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
ITENN4 PART-WISDOMSOURCING MAP 5 PART-WISDOMSOURCING MAP
1 PART-WISDOMSOURCING MAP
CLASSIC VERTICAL MAP PAIN-DELIGHT MAP
2 PART-WISDOMSOURCING MAP
WISDOMSOURCING MAPS:
Family of Wisdomsourcing Maps (Zoomable Idea Organizers) for Facilitating Collaboration, Ideas
Management, Creativity, and Customer Problem Solving
3 PART-WISDOMSOURCING MAP
CLASSIC HORIZONTAL MAP
GURUS
Copyright 2010. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
WISDOMSOURCING MAPS
Visually Facilitate Collaboration, Ideas Management, Creativity, and Customer Problem Solving
ABOUT THE INVENTOR/AUTHOR
GURUS
Copyright 2010. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
Inventor of over 40 Tools for The Wisdomsourcing Trilogy – Facilitating work in the areas of Business Model Development Business and Strategic Planning Product & Service Innovation Performance Management
Inventor of “The Fractal Grid”This technology, which has US andInternational patent-pending, can beused for visually organizing and Prioritizing massive amounts of information such as in search engines, social networks, andother communities on the Internet
Visual Problem Solver Speaker & Consultant on
Business Model Development Inventor of The Wisdomsourcing
Trilogy, a Customer Problem Solv-ing Suite for Collaboratively Designing Oh My God-Strategies, Products, and Business Models
Founder of the WisdomsourcingGroup, an online Global Think Tankfor collaboratively improvingcustomer experiences and resolvingtough dilemmasOrganizer & Coordinator of Wisdom-sourcing survey involving over 200 professionals from over 30 countries
CONTACT
Dr. Rod King: California, USACell: (559) 248-6230
[email protected]://twitter.com/RodKuhnKing
B. Eng. (Hons) in Civil Eng. Master of Infrastructure Planning Ph.D. in Regional Dev. Planning Postgraduate Certificate in
Advanced Academic Studies Over 20 years of experience in
creative problem solving formulti-disciplinary projects
Dr. Rod KingVisual Problem Solver,
Inventor & Magician Inventor of first software that
wholly invents magic tricks Inventor of several magic tricks Author of “Trickanalyzing the
Close-up Magic of David Copperfield” & several articles
Winner of several championships in chess and table-tennis
Founder and former CEO of Galaxy IT, Inc., a venture-financed visual search engine business
Major contributor on creativity to the multi-author book, “Research Methods for Postgraduates”
Former Lecturer
BIOGRAPHICAL SKETCH Background Information on Dr. Rod King, Creator of Business Model Development (BMD)
GURUS
Copyright 2010. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
• Rod King (2009)• Global Collaboration• Visual Problem Solving• Practical Impossibility Thinking• Wisdomsourcing Maps• Wisdomsourcing Canvas• Customer Experience Map (Pain-Delight Evaluation of Trade-off)• Wisdomsourcing Deck• Manifesto for Wisdomsourcing Game
• Alex Osborne (1953)• Rules for Brainstorming – No criticism during idea generation• ‘Blue Sky’ Thinking and Ideas
• Jeff Howe (2006)• Crowdsourced Goods and Information Products• Off-site Tools for Strategic Analysis and ProblemSolving
• ‘Ad hoc’ Group• Unlimited Number of Volunteers• Peer Production; Documentation• Open Innovation and Value Chain• Prosumers: Consumers who participate like employees/producer in a business• Competitions; Contests; Prizes• Recognition; Reputation
• Organic Process• Online Collaboration• Collaborative Idea Generation• 1D-Evaluation; Voting
• Myriad Generated Ideas
• Offline• 1 Physical Location• Formal Group
WISDOMSOURCING3.
CROWDSOURCING 2.
1.BRAINSTORMING
EVOLUTION OF WISDOMSOURCINGGURUS