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BUSINESS MODEL DEVELOPMENT
FOR BLUE OCEAN STARTUPS
A One-stop Toolkit for Discovering, Validating, and Managing Your Business Model
Dr. Rod Kuhn King
Visual Problem Solver, Inventor, and Magician
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
Business Model Development (BMD)
Involves a
Visual Integration of
Best Practice Methodologies
Including
 Kim & Mauborgne’s Blue Ocean Strategy
 Steve Blank’s Customer Development
 Eric Ries’s Lean Startup
 Alex Osterwalder’s Business Model Canvas
 Rod King’s Wisdomsourcing Map
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
Business Model Development (BMD)
Is a More Cost-Effective Way
To Design, Launch, and Manage Businesses
Especially
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
Business Model Development (BMD)
Recognizes That
Business Plan Development (BPD)
Is an Ineffective and Unsuitable Approach
In a World of Rapid Commoditization,
Great Uncertainty, and Limited Resources
Such as in the World of
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
The Paradigm of
Business Model Development (BMD)
Assumes That Businesses
Should Be Conceived, Launched, and Managed
Like in Successful Magic Theater:
Customers Should Be Put First
In Order to Design and Deliver
Oh My God (OMG)-Customer Experiences
RAPID DEPLOYMENT AND LEARNING TIME AND MONEY SAVINGS
EASIER TO UNDERSTAND AND APPLY
CAN BE LINKED TO AND INTEGRATED
WITH ALL TOOLS FOR
CUSTOMER PROBLEM SOLVING
VERSATILE: APPLICABLE TO
SOFTWARE AND NON-SOFTWARE
BUSINESSES
FACILIITATES COLLABORATION
ADVANTAGES
OF
BUSINESS MODEL DEVELOPMENT
(BMD)
FOR BLUE OCEAN STARTUPS
SCALABLE AND FRACTAL TOOLS
“FUNNER” TO USE
ADVANTAGES OF BUSINESS MODEL DEVELOPMENT
FOR BLUE OCEAN STARTUPS
GURUS
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
(-): PAIN
(+): DELIGHT
Disruption Spot
Luxury Spot
Strategic
Choice
Key
OMG-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)
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
(-): PAIN
(+): DELIGHT 2
Profit Margin
Direct Competitors
(Commoditization)
(+): DELIGHT 1
Industry Attractiveness
(Market Growth)
New
Market
Space
Existing
Market
SpaceKey
OMG-Experience:
Undesirable Experience:
GURUS
Market (Customer Problem/Goal): ……………………………………………
BLUE OCEAN STARTUP Cube
Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
CUSTOMER CREATION PYRAMID FOR
THE BLUE OCEAN STARTUP
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
 Delighters
 Satisfiers
 Dissatisfiers
 Delighters
 Satisfiers
 Dissatisfiers
 Delighters
 Satisfiers
 Dissatisfiers
NON-COMPETITORS
(Remote Industries/Economy:
Sectoral & Geographical Non-alternatives)
DIRECT COMPETITORS
(Core Sector/Strategic Groups:
Substitutes)
BUSINESS
(New) Customer Value Proposition/Market: …………………………………………………………………..
 NON- CUSTOMERS
o Profitable
o Break-even
o Unprofitable
Oh My God-
Product/Service
Why?
How?
Why?
How?
Why?
How?
INDIRECT COMPETITORS
(Peripheral/Adjacent Industries:
Alternatives/Value Chain Complements)
Diffusion (Word-of-mouth) Potential = Delighters + Satisfiers - Dissatisfiers
GURUS
CUSTOMER PERSPECTIVE (Voice of the Customer) BUSINESS PERSPECTIVE (Voice of the Business)
DEFINITION OF
OH MY GOD (OMG)-PRODUCT
GURUS
 An Oh My God (OMG)-Product delivers an uncontested
experience or value which is so remarkable that the large
majority of customers say: “Oh My God!”
 An Oh My God (OMG)-Product is an uncontested market
leader in a fast growing niche or market segment, that is, an
OMG-Product has a market share of at least three times that
of the nearest competitor as well as has a market growth rate
of at least 10% a year.
In addition, the OMG-Product has a profit margin of at least
20%.
DEFINITION OF
OH MY GOD (OMG)-PRODUCT
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
ARCHETYPAL STRATEGIES
FOR DESIGNING OH MY GOD (OMG)-PRODUCTS
GURUS
ARCHETYPAL
STRATEGIES
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-in
Market Strategies
Zooming-out
Market Strategy
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
GURUS
PROBLEM-SOLUTION
MAP
PROBLEM-SOLUTION MAP
Visually Facilitate Collaboration, Ideas Management, Creativity, and Customer Problem Solving
PROBLEM SOLUTION
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
“PUSH” BUSINESS MODEL DEVELOPMENT “PULL” BUSINESS MODEL DEVELOPMENT
GURUS
 Supply-oriented Approach
 Product-centric
 Waterfall Model: Linear Product Development
 Production Line/Chain Model
 Classic Competitive Strategy
 Traditional Business Plan
 Traditional Strategic Plan
 Traditional Balanced Scorecard
 Long Cycle for Product Development
 High Risk of Product-Market Misfit
 Suitable in a Routine/Predictable World of Little or No Risk
as well as Great Access to Resources
 Demand-oriented Approach
 Customer-centric
 Customer Development Model (Steve Blank): Iterative
 Lean Startup Model (Eric Ries): Continuous Learning And
Rapid Prototyping/Deployment
 Blue Ocean Startup (Rod King)
 Blue Ocean Strategy
 Disruptive Innovation Strategy
 Crowdsourcing
 QFD/Voice of the Customer
 Six Sigma/Lean Thinking/
Agile Development/Just-In-Time
 Concurrent Engineering
“PUSH” vs. “PULL”
BUSINESS MODEL
DEVELOPMENT
“PUSH” vs. “PULL”
BUSINESS MODEL DEVELOPMENT
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
GURUS
BUSINESS MODEL
DEVELOPMENT
(BMD) MAP
4 STAGES IN THE WEB OF
BUSINESS MODEL DEVELOPMENT
1. BUSINESS MODEL PROBLEM & DISCOVERY 2. BUSINESS MODEL VALIDATION
3. BUSINESS MODEL EXECUTION 4. BUSINESS MODEL MANAGEMENT
ITENNBUSINESS MODEL
PROBLEM & DISCOVERY
What’s the evidence?
GURUS
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
BUSINESS MODEL PROBLEM & DISCOVERY
Visually Facilitate Collaboration, Ideas Management, Creativity, and Customer Problem Solving
ITENNBUSINESS MODEL
VALIDATION
What’s the evidence?
GURUS
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
BUSINESS MODEL VALIDATION
Visually Facilitate Collaboration, Ideas Management, Creativity, and Customer Problem Solving
ITENNBUSINESS MODEL
EXECUTION
What’s the evidence?
GURUS
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
BUSINESS MODEL EXECUTION
Visually Facilitate Collaboration, Ideas Management, Creativity, and Customer Problem Solving
ITENNBUSINESS MODEL
MANAGEMENT
What’s the evidence?
GURUS
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
BUSINESS MODEL MANAGEMENT
Visually Facilitate Collaboration, Ideas Management, Creativity, and Customer Problem Solving
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
GURUS
THE 2 WORLDS OF
BUSINESS MODEL
DEVELOPMENT
THE 2 WORLDS OF BUSINESS MODEL DEVELOPMENT
BUSINESS MODEL PROBLEM & DISCOVERY BUSINESS MODEL VALIDATION
BUSINESS MODEL EXECUTION BUSINESS MODEL MANAGEMENT
WORLD OF BUSINESS MODEL SEARCH
(For ‘Startups/Entrepreneurs/Founders’)
WORLD OF BUSINESS MODEL EXECUTION
(For ‘Established Companies/Accountants’)
GURUS
PROBLEM UNIVERSE GOAL UNIVERSE
EXECUTION UNIVERSE LIFESPACE RESOURCES
(Internal/External)
WISDOMSOURCING
CANVAS
Theme:
WISDOMSOURCING CANVAS
A Zoomable Jigsaw Puzzle for Collaboratively Solving Problems and Presenting Solutions
Date: ……………………..……
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
BUS. MODEL DEVELOPMENT FOR THE BLUE OCEAN STARTUP
Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models
Theme: ………………………………………………………………………………………… Date: …………………..…..
BUSINESS MODEL DEVELOPMENT (BMD) FOR THE BLUE OCEAN STARTUP
GENERIC ACTIVITIES FOR CORE & PERIPHERAL INDUSTRIES BUSINESS MODEL (CUSTOMER/PRODUCT)
WISDOMSOURCING
CANVAS
COLLABORATIVE PROBLEM SOLVING TASKS FOR
PROCESS/INDUSTRY/BUSINESS MODEL/PRODUCT
PROBLEM/
DISCOVERY
VALIDA-
TION
EXECU-
TION
MANAGE-
MENT
PROBLEM UNIVERSE:
GLOBAL PROBLEM
MAPPING
Collect/Define/Measure/Verify Problems, Pains, and Trade-offs
in System for Customer Segments/Personas
Organize/Group/Analyze Problems, Pains, and Trade-offs
Prioritize/Verify Big Urgent Market Pain (BUMP)
GOAL UNIVERSE:
GLOBAL GOAL
& STRATEGY
MAPPING
Collect/Generate/Verify OMG-Goals, Objectives, Strategies,
Tactics, Targets & Processes for Eliminating BUMP
Organize/Group/Generate a Hierarchy of OMG-Goals,
Objectives, Strategies, Tactics, Targets & Processes
Prioritize/Verify OMG-Goals, Objectives, Strategies, Tactics,
Targets & Processes and Synthesize into a Plan/Prototype
EXECUTION UNIVERSE:
GLOBAL STRATEGY
EXECUTION
Implement, Control, and Validate Plan/Prototype Reflecting
OMG-Goals, Objectives, Strategies, Tactics, Targets & Processes.
Prepare Project Charter and Form Project Team with Diverse
Members (Customers and Non-customers)
Mission/Vision: …………………….………………………………………………….
GURUS
Market Segment (Customer Problem/Goal): ……………………….….…
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
MEMBER 4
MEMBER 6
MEMBER 1
MEMBER 5
MEMBER …
MEMBER 3
PROJECT TEAM FOR:
MEMBER 7
MEMBER 2
PROJECT TEAM FOR THE BLUE OCEAN STARTUPGURUS
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
Ron Johnson
Phillip Schiller
Steve Jobs
Bruce Sewell
Peter Oppenheimer
Tim Cook
APPLE INC.:
Executives
(2010)
Scott Forstall
Jonathan Ive
PROJECT TEAM Template: Example
EXECUTIVE TEAM FOR APPLE INC.
GURUS
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
MEMBER/CONTACT 4
MEMBER/CONTACT 6
MEMBER/CONTACT 1
MEMBER/CONTACT 5
MEMBER/CONTACT …
MEMBER/CONTACT 3
SOCIAL NETWORK/
CONTACTS FOR:
MEMBER/CONTACT 7
MEMBER/CONTACT 2
SOCIAL NETWORK FOR THE BLUE OCEAN STARTUPGURUS
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
The Methodology of
Business Model Development (BMD)
Seamlessly Integrates
Major Breakthrough Ideas and Tools
In Customer Development,
Collaboration, Business Creativity,
Strategy, Innovation, and
Performance Management
Over the Last 50 Years
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
Business Model Development (BMD)
Helps to Reduce
the Risk of Failure of Businesses
Especially Scalable Startups
By Facilitating
the Discovery, Validation, Execution,
and Management of
Business Models
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
Business Model Development (BMD)
Also Helps Individuals and Teams
To Deploy
Any Business Process or Methodology
In a
Simpler, Faster, and Funner Way
ITENN
E: ENVIRONMENT PROBLEMS
 Inadequate Profit Margin/Cash
Flow/Return On Investment
 Hyper-competition
 Commoditization: Red Ocean
 Ineffective Partners; Conflicts
 Volatile/Chaotic Environment
P: PROCESS PROBLEMS
 Incomplete Global Value Chain/
Business Model; Waste
 Inadequate Business Processes:
Business Model Development/
Innovation/Strategy/Execution
 Ineffective Marketing/Sales
S: SUPPLIER/MATERIAL
PROBLEMS
 Inadequate Suppliers
 Inadequate Materials
R: RETAILER/DISTRIBUTOR/
CHANNEL PROBLEMS
 Inadequate Channels/
Distributors/Logistics
 Inadequate Branding/Marketing/
Advertising
O: OUTPUT (PRODUCT/
SERVICE) PROBLEMS
 Product-Market Misfit
 Service-Market Misfit
 Ineffective Pricing Model/
Strategy
 Slow Prototyping/Deployment
 Unacceptable Defects/Design
E: EMPLOYEE/KNOWLEDGE
ASSETS/CULTURE PROBLEMS
 Unrealistic Vision/Forecast/Target
 Ineffective Team/Culture
 Ineffective Business Strategy
 Ineffective Product Development
 Ineffective Strategic Alignment
 Inadequate Learning/Insights
WHY DO BUSINESSES
(STARTUPS) FAIL AND DIE?
INEFFECTIVE/INADEQUATE
 Customer Value Proposition
 Business Value (Experience)
 Customer Value (Experience)
 Competitive Advantage
M: MACHINERY/EQUIPMENT/
FACILITY/LOCATION PROBLEMS
 Inadequate Machinery/
Equipment/Tools
 Inadequate Technology
 Inadequate Infrastructure
 Inadequate Location
C: CUSTOMER/CONSUMER &
RELATIONSHIP PROBLEMS
 Inadequate No. of Customers
 Inadequate Market Growth Rate
 Inadequate Customer Relation-
ships/Loyalty
 Inadequate Collaboration/‘VoC’
WHY DO BUSINESSES (STARTUPS) FAIL AND DIE?GURUS
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
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. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
ITENNCOMPETITORS’
PRODUCTS/SERVICES
What’s the evidence?
GURUS
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
COMPETITORS’ PRODUCTS/SERVICES
Visually Facilitate Collaboration, Ideas Management, Creativity, and Customer Problem Solving
WHY?
HOW MANY? HOW MUCH?
WHAT (PROBLEMS)?
HOW?
WHAT NEXT?
WHERE?
COMPETITORS’ PROBLEMS:
 Weaknesses
 Threats
What’s the evidence?
WHEN?
WHO?
COMPETITORS’ PROBLEMS
Visually Facilitate Collaboration, Ideas Management, Creativity, and Customer Problem Solving
GURUS
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
WHY?
HOW MANY? HOW MUCH?
WHAT (PROBLEMS/PAIN)?
HOW?
WHAT NEXT?
WHERE?
CUSTOMER PROBLEMS (PAIN)
What’s the evidence?
WHEN?
WHO?
CUSTOMER PROBLEMS
Visually Facilitate Collaboration, Ideas Management, Creativity, and Customer Problem Solving
GURUS
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
WHY?
HOW MANY? HOW MUCH?
WHAT (PROBLEMS)?
HOW?
WHAT NEXT?
WHERE?
BUSINESS PROBLEMS (PAIN)
What’s the evidence?
WHEN?
WHO?
BUSINESS PROBLEMS
Visually Facilitate Collaboration, Ideas Management, Creativity, and Customer Problem Solving
GURUS
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
CAUSE 4
CAUSE 6
CAUSE 1
CAUSE 5
CAUSE …
CAUSE 3
ROOT-CAUSE MAP
-------------------------------
MAIN PROBLEM (EFFECT):
What’s the evidence?
CAUSE 7
CAUSE 2
ROOT-CAUSE MAP
Visually Facilitate Collaboration, Ideas Management, Creativity, and Customer Problem Solving
GURUS
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
WHY (MISSION)?
HOW MANY? HOW MUCH?
WHAT (VISION)?
HOW?
WHAT NEXT?
WHERE?
BUSINESS VISION
WHEN?
WHO?
BUSINESS VISION
Visually Facilitate Collaboration, Ideas Management, Creativity, and Customer Problem Solving
GURUS
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
GURUS
WHAT IS A BUSINESS MODEL?
A Business Model or Value Chain
is a Schema of
How an Organization or Industry Operates
to Deliver Value
Especially Profit and
Oh My God-Customer Experiences
ITENN
ENVIRONMENT
UNIVERSAL MODEL OF A SYSTEM
GURUS
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
SYSTEM
OUTPUTPROCESSING
INPUT
(Elements)
FEEDBACK (“Pivot”/Learning Cycle)
ITENN
ENVIRONMENT
UNIVERSAL BUSINESS SYSTEM
GURUS
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
SUPPLIERS/
MATERIALS
Partners CompetitorsInvestor
CUSTOMERS/
CONSUMERS
Government Society
RETAILERS/
CHANNELS
BUSINESS
OUTPUT
(Product/
Service)
PROCESSING
(PROCESSES)
INPUT
(EMPLOYEES/
MACHINERY)
FEEDBACK (“Pivot”/Learning Cycle)
INPUT (ELEMENT) 4 : X4
INPUT (ELEMENT) 6 : X6
INPUT (ELEMENT) 1: X1
INPUT (ELEMENT) 5 : X5
INPUT (ELEMENT) … : X…
INPUT (ELEMENT) 3 : X3
VISUAL EQUATION FOR
A SYSTEM
-------------------------------
OUTCOME OR OUTPUT (Y)
=
FUNCTION OF INPUTS (X)
INPUT (ELEMENT) 7 : X7
INPUT (ELEMENT) 2 : X2
VISUAL EQUATION FOR A SYSTEM
Visually Facilitate Collaboration, Ideas Management, Creativity, and Customer Problem Solving
GURUS
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
ITENNE: 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. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
ITENNE: ENVIRONMENT WASTE P: PROCESS WASTE
S: SUPPLIER/MATERIAL WASTE
R: RETAILER/DISTRIBUTOR/
CHANNEL WASTE
O: OUTPUT (PRODUCT/
SERVICE) WASTE
E: EMPLOYEES/KNOWLEDGE
ASSETS/CULTURE WASTE
GLOBAL VALUE CHAIN
WASTE:
OUTCOMES/DEFECTS
 Customer Value Proposition (Job)
 Business Value = Revenue/Cost
 Customer Value (Experience) =
Customer Delight/Customer Pain
M: MACHINERY/EQUIPMENT/
FACILITY/LOCATION WASTE
C: CUSTOMER/CONSUMER WASTE
GLOBAL VALUE CHAIN WASTEGURUS
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
ITENNE: ENVIRONMENT HYPOTHESES P: PROCESS HYPOTHESES
S: SUPPLIER/MATERIAL
HYPOTHESES
R: RETAILER/DISTRIBUTOR/
CHANNEL HYPOTHESES
O: OUTPUT (PRODUCT/
SERVICE) HYPOTHESES
E: EMPLOYEES/KNOWLEDGE
ASSETS/CULTURE HYPOTHESES
GLOBAL VALUE CHAIN
HYPOTHESES:
EXPECTATIONS FOR
 Customer Value Proposition (Job)
 Business Value = Revenue/Cost
 Customer Value (Experience) =
Customer Delight/Customer Pain
M: MACHINERY/EQUIPMENT/
FACILITY/LOCATION HYPOTHESES
C: CUSTOMER/CONSUMER
HYPOTHESES
GLOBAL VALUE CHAIN HYPOTHESES
Formulate, Test, and Validate Hypotheses for Elements of Value Chain or Business Model
GURUS
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
ITENNGLOBAL VALUE CHAIN:
GOALS
 Customer Value Proposition (Job)
 Business Value = Revenue/Cost
 Customer Value (Experience) =
Customer Delight/Customer Pain
GURUS
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
GOALS OF GLOBAL VALUE CHAIN
Collaboratively List and/or Sketch Goals Including Elements of Vision, Value Proposition,
Business Value, and Customer Value
ITENN
S: SUPPLIERS/MATERIALS
SUPPLIERS
Collaboratively List and/or Sketch Suppliers/Materials
GURUS
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
ITENN
E: EMPLOYEES/
KNOWLEDGE ASSETS
EMPLOYEES
Collaboratively List and/or Sketch Employees/Knowledge Assets
GURUS
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
ITENN
M: MACHINERY/
EQUIPMENT/FACILITY
MACHINERY
Collaboratively List and/or Sketch Machinery/Equipment/Facilities
GURUS
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
ITENN
P: PROCESSES/STRATEGIES
PROCESSES
Collaboratively List and/or Sketch Processes/Strategies
GURUS
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
ITENN
O: OUTPUTS
(PRODUCTS/SERVICES)
OUTPUTS
Collaboratively List and/or Sketch Outputs (Products/Services)
GURUS
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
ITENN
R: RETAILERS/CHANNELS/
DISTRIBUTORS
RETAILERS
Collaboratively List and/or Sketch Retailers/Channels/Distributors
GURUS
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
ITENN
C: CUSTOMERS/
CONSUMERS
CUSTOMERS
Collaboratively List and/or Sketch Customers/Consumers
GURUS
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
ITENN
E: ENVIRONMENT
ENVIRONMENT
Collaboratively List and/or Sketch Elements of Environment:
Partners/Complementors/Competitors/Industries/Investors/Government/NGOs/Enemies/Society
GURUS
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
ITENNE: 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
Collaboratively List, Sketch, Organize, and/or Manage Metrics for Elements of Value Chain
GURUS
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. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
ITENNE: 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 CHAIN
FOR “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. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
ITENNE: 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. rodkuhnking@sbcglobal.net & 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
SYSTEM
(INDUSTRY/BUSINESS) GURUS
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 Marketing
Sales
Marketing Cost
Sales 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
SYSTEM
(INDUSTRY/BUSINESS) GURUS
Market Segment (Customer Problem/Goal): ……………………….….…
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
FOCUS EVOLUTION OF BUSINESS MODEL IDEAL BUSINESS
MODEL
BUSINESS/
GLOBAL VALUE CHAIN
DESCRIPTION/
INDUSTRY
PAST
BUSINESS MODEL
PRESENT
BUSINESS MODEL
FUTURE
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 EVOLUTION
Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models
SYSTEM
(INDUSTRY/BUSINESS) GURUS
Market Segment (Customer Problem/Goal): ……………………….….…
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & 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
SYSTEM
(INDUSTRY/BUSINESS) GURUS
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & 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
BUSINESS
MODEL
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
SYSTEM
(INDUSTRY/BUSINESS) GURUS
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & 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
BUSINESS
MODEL
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
SYSTEM
(INDUSTRY/BUSINESS) GURUS
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & 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
PHYSICAL
SECTOR
SOCIAL
SECTOR
KNOWLEDGE
SECTOR
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
SYSTEM
(INDUSTRY/BUSINESS) GURUS
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
FOCUS COMPETITORS/SECTOR/INDUSTRY FUTURE
(DISRUPTIVE/
IDEAL)
BUS. MODEL
BUSINESS/
GLOBAL VALUE CHAIN
GIVEN
BUS. 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
SYSTEM
(INDUSTRY/BUSINESS) GURUS
Market Segment (Customer Problem/Goal): ……………………….….…
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & 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 CHAIN
Where 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
SYSTEM
(INDUSTRY/BUSINESS) GURUS
Market Segment (Customer Problem/Goal): ……………………….….…
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & 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. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
FOCUS PROCESS: SWOT Analysis FUTURE
(DISRUPTIVE/
IDEAL)
BUS. MODEL
BUSINESS/
GLOBAL VALUE CHAIN
GIVEN
BUS. 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
SYSTEM
(INDUSTRY/BUSINESS) GURUS
Market Segment (Customer Problem/Goal): ……………………….….…
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & 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
GIVEN
BUS. 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
SYSTEM
(INDUSTRY/BUSINESS) GURUS
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
GIVEN
BUS. 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: Quality
Dissatisfiers: Cost/
Maintenance/Range/
Choice/Complexity
Dissatisfiers: Cost
Delighters/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
SYSTEM
(INDUSTRY/BUSINESS)
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/CORE
BUSINESS MODEL
Adjacency
1:
Adjacency
2:
Adjacency
3:
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. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
FOCUS SIX SIGMA PROCESS
BUSINESS/
GLOBAL VALUE CHAIN
C:
Collect Info’
D:
Define Problem
M:
Measure
A:
Analyze
G:
Generate
I:
Improve
C:
Control
INPUT (SUPPLIERS/
MATERIALS/ENERGY)
ELEMENTS
(EMPLOYEES/
MACHINERY)
PROCESS
(Bus. Process/
Strategies)
OUTPUTS:
PRODUCT/SERVICE
(Defects)
RETAILERS/DISTRIB./
CHANNELS
CONSUMERS/
CUSTOMERS (Experience)
ENVIRONMENT
- COMPETITORS (Industry)
- PARTNERS (Complementors)
- INVESTORS (Revenue/Cost)
- PUBLIC/SOCIETY/Enemies
- GOVERNMENT/NGOs
Mission/Vision: …………………….………………………………………………….
SIX SIGMA-BUSINESS MODEL MATRIX
Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models
SYSTEM
(INDUSTRY/BUSINESS) GURUS
Market Segment (Customer Problem/Goal): ……………………….….…
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
FOCUS CUSTOMER DEVELOPMENT-BUSINESS MODEL
Expected vs. Actual Performance
LEARNING:
Findings/Insights/
Decisions/Actions
BUSINESS/
GLOBAL VALUE CHAIN
COMPANY
VISION
CUSTOMER
DISCOVERY
CUSTOMER
VALIDATION
CUSTOMER
CREATION
COMPANY
BUILDING
INPUT (SUPPLIERS/
MATERIALS/ENERGY)
ELEMENTS
(EMPLOYEES/
MACHINERY)
PROCESS
(Bus. Process/
Strategies)
OUTPUTS:
PRODUCT/SERVICE
Minimum Product:
Desirable/Viable/
Feasible
Product-Market Fit:
Prototype/
Pilot/No-frills
Product-Solution
Fit: Full Software/
Hardware
More Fully
Featured
Product
RETAILERS/DISTRIB./
CHANNELS
CONSUMERS/
CUSTOMERS (Experience)
Innovators Early Adopters
(“Earlyvangelists”)
Early Majority Late Majority/
Loyal
ENVIRONMENT
- COMPETITORS (Industry)
- PARTNERS (Complementors)
- INVESTORS (Revenue/Cost)
- PUBLIC/SOCIETY/Enemies
- GOVERNMENT/NGOs
Mission/Vision: …………………….………………………………………………….
CUSTOMER DEVELOPMENT-BUSINESS MODEL (CDBM) MATRIX
Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models
SYSTEM
(INDUSTRY/BUSINESS) GURUS
Market Segment (Customer Problem/Goal): ……………………….….…
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
ITEM
FOCUS
CUSTOMER DISCOVERY DASHBOARD
STATEMENT/FORMULATION OF HYPOTHESES RESULT LEARNING:
Findings/
Insights/
Decisions/
Actions
BUSINESS/
GLOBAL VALUE CHAIN
JOBS/GOALS/STATEMENTS/QUESTIONS/ASSUMPTIONS MEDIA/
METRICS/
CRITERIA
Expected
Perform-
ance
Actual
Perform-
ance
S: SUPPLIERS
E: EMPLOYEES/
KNOWLEDGE ASSETS/IP
M: MACHINERY/EQUIP./
FACILITY/INFRASTRUCTURE
P: PROCESSES
O: OUTPUTS
(PRODUCT/SERVICE)
R: RETAILERS/DISTRIB./
CHANNELS
C: CONSUMERS/
CUSTOMERS
E: ENVIRONMENT/PUBLIC/
COMPETITORS/
INVESTORS/PARTNERS
CUSTOMER DISCOVERY-BUSINESS MODEL
Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models
Mission/Vision: …………………….…………………………………………………. Market Segment (Customer Problem/Goal): ……………………….….…
GURUS
BUSINESS Upstream VALUE NETWORK (SUPPLY CHAIN OR “FOOD CHAIN”) Downstream
TO
FROM
S:
Suppliers
E:
Employees
M:
Machinery
P:
Processes
O:
Output
R: Retailers/
Wholesalers/Distr.
C:
Customers
E:
Environment
S: Suppliers
E: Employees/
Knowledge Assets
M: Machinery/
Facility/Infra’
P: Processes
O: Outputs
(Product/Service)
R: Retailers/
Distributors/
Channels
C: Consumers/
Customers
E: Environment
VALUE NETWORK
(“SEMPORCE”)
Customer Value Proposition (Job To Be Done):
VALUE NETWORK-BUSINESS MODEL
Collaboratively Design Oh My God-Visijon, Strategies, Products, Services, and Business Models
GURUS
Mission/Vision: …………………….…………………………………………………. Market Segment (Customer Problem/Goal): ……………………….….…
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
PUBLISHER Upstream VALUE NETWORK (SUPPLY CHAIN OR “FOOD CHAIN”) Downstream
TO
FROM
S:
Suppliers
E:
Employees
M:
Machinery
P:
Processes
O:
Output
R: Retailers/
Wholesalers/Distr.
C:
Customers
E:
Environment
S: Suppliers
E: Employees/
Knowledge Assets
M: Machinery/
Facility/Infra’
P: Processes Print books Stock/pack books
Det. allocations
O: Outputs
(Product/Service)
Books Book inventory;
Merchandise titles
R: Retailers/
Distributors/
Channels
Establish
identity
Ship books;
Deliver orders;
Dispose of returns
C: Consumers/
Customers
Create
demand
Articulate value Buy books
E: Environment
VALUE NETWORK
(“SEMPORCE”)
Customer Value Proposition (Job To Be Done):
VALUE NETWORK-BUSINESS MODEL: Traditional Book Publisher
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. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
CUSTOMER DEVELOPMENT FOR SCALABLE STARTUPS
Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models
Theme: ………………………………………………………………………………………… Date: …………………..…..
CUSTOMER DEVELOPMENT FOR SCALABLE STARTUPS
GENERIC ACTIVITIES FOR CORE & PERIPHERAL INDUSTRIES CUSTOMER
DISCOVERY
CUSTOMER
VALIDA-
TION
CUSTOMER
CREATION
COM-
PANY
BUILD-
ING
WISDOMSOURCING
CANVAS
COLLABORATIVE PROBLEM SOLVING TASKS FOR
PROCESS/INDUSTRY/BUSINESS MODEL/PRODUCT
PROBLEM UNIVERSE:
GLOBAL PROBLEM
MAPPING
Collect/Define/Measure/Verify Problems, Pains, and
Trade-offs in System for Customer Segments/Personas
Organize/Group/Analyze Problems, Pains, and Trade-offs
Prioritize/Verify Big Urgent Market Pain (BUMP)
GOAL UNIVERSE:
GLOBAL GOAL
& STRATEGY
MAPPING
Collect/Generate/Verify OMG-Goals, Objectives, Strategies,
Tactics, Targets & Processes for Eliminating BUMP
Organize/Group/Generate a Hierarchy of OMG-Goals,
Objectives, Strategies, Tactics, Targets & Processes
Prioritize/Verify OMG-Goals, Objectives, Strategies, Tactics,
Targets & Processes and Synthesize into a Plan/Prototype
EXECUTION UNIVERSE:
GLOBAL STRATEGY
EXECUTION
Implement, Control, and Validate Plan/Prototype Reflecting
OMG-Goals, Objectives, Strategies, Tactics, Targets &
Processes
Prepare Project Charter and Form Project Team with Diverse
Members (Customers and Non-customers)
Mission/Vision: …………………….………………………………………………….
GURUS
Market Segment (Customer Problem/Goal): ……………………….….…
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
CORE VALUES (Incentives/Penalties)
STAKEHOLDER IMPACTS
[Profit (Margin); Revenue /Cost ;
Unit Price; Volume; Speed; Trade-off]
GOALS, OBJECTIVES,
STRATEGIES & TACTICS
(PLAN)
CUSTOMER PROBLEM
(BIG URGENT MARKET PROBLEM:
BUMP)
RESOURCES
(GLOBAL VALUE CHAIN)
 S: Suppliers
 E: Employees (Core Competencies)
 M: Machinery/Equipment/Facility
 P: Processes
 O: Output (Product/Service)
 R: Retailers/Distributors/Channels
 C: Consumer/Customer Segments
 E: Environment: Competitors, etc.
COMPANY BLUEPRINT (Version X)
MISSION/VISION
CUSTOMER VALUE PROPOSITION
GURUS
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
(-): PAIN
(+): DELIGHT
Disruption Spot
Luxury Spot
Strategic
Choice
Resegmented/
Reframed/Low-cost
Market
Cost
(Adoption Barrier; Complexity;
Inaccessibility; Delay)
Existing High end-
Market
Performance
(Functionality;
Quality)
Key
OMG-Experience:
Undesirable Experience:
GURUS
Cost-Performance Map for ‘Market Types’
Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models
Market Segment (Customer Problem/Goal): ………………………………………………………
Ideal Value Space
(Ideal Market/
Ideal Impossibility/
Ideal Tool/
Ideal Universe/
Entirely New Market)
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
(-): PAIN
(+): DELIGHT
Disruption Spot
Luxury Spot
Strategic
Choice
Key
OMG-Experience:
Undesirable Experience:
CUSTOMER EXPERIENCE MAP: Template
Collaboratively Collect, Organize, Prioritize, and Manage
Vision, Strategies, Products, Services, and Business Models
GURUS
Market Segment (Customer Problem/Goal): ………………………………………………………
Ideal Value Space
(Ideal Market/
Ideal Impossibility/
Ideal Tool/
Ideal Universe/
New Market)
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
(-): PAIN
(+): DELIGHT
Disruption Spot
Luxury Spot
Strategic
Choice
Cost-Quality Map
For Product/Service/Business Model
Where Currently is the System?/Why? Where Must the System go?/Why? How Will the System Get There?
Key
OMG-Experience:
Undesirable Experience:
Quality
(Performance)
Cost
(Price)
GURUS
Market Segment (Customer Problem/Goal): ………………………………………………………
Ideal Value Space
(Ideal Market/
Ideal Impossibility/
Ideal Tool/
Ideal Universe/
New Market)
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
(-): PAIN
(+): DELIGHT
Disruption Spot
Luxury Spot
Strategic
Choice
Cost-Differentiation Map
Visually Describe, Analyze, and Manage Customer Experiences (in Space/Time)
Key
OMG-Experience:
Undesirable Experience:
Differentiation
(Uniqueness)
Cost
Classic
DIFFERENTIATION
Strategy
Classic
COST LEADERSHIP
Strategy
GURUS
Market Segment (Customer Problem/Goal): ………………………………………………………
“STUCK-IN-THE-
MIDDLE”
Strategy
Ideal Value Space
(Ideal Market/
Ideal Impossibility/
Ideal Tool/
Ideal Universe/
New Market)
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
(-): PAIN
(+): DELIGHT
Disruption 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)
Key
OMG-Experience:
Undesirable Experience:
GURUS
Cost-Performance Map
Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models
Market Segment (Customer Problem/Goal): ………………………………………………………
Ideal Value Space
(Ideal Market/
Ideal Impossibility/
Ideal Tool/
Ideal Universe/
New Market Disruption)
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
(-): PAIN
(+): DELIGHT
Disruption Spot
Luxury Spot
Strategic
Choice
Key
OMG-Experience:
Undesirable Experience:
Differentiation
(Uniqueness)
Risk
SCALE
Differentiated
Business Model
STANDARDIZE
Product/Service;
OUTSOURCE
‘Peripherals’
TRANSFER
Resources and
EXIT
INVENT
Differentiated
Product/Service
GURUS
Value Innovation Cycle
Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models
Market Segment (Customer Problem/Goal): ………………………………………………………
Ideal Value Space
(Ideal Market/
Ideal Impossibility/
Ideal Tool/
Ideal Universe/
New Market)
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
(-): PAIN
(+): DELIGHT
Disruption Spot
Luxury Spot
Strategic
Choice
Key
OMG-Experience:
Undesirable Experience:
Differentiation
(Uniqueness)
Risk
“PAPER” COMPANY
(Luxury Spot)
“ROCK” COMPANY
(Sweet Spot)
“SCISSORS” COMPANY
(Disruption Spot)
GURUS
Growth vs. Competition Cycle
Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models
Market Segment (Customer Problem/Goal): ………………………………………………………
Ideal Value Space
(Ideal Market/
Ideal Impossibility/
Ideal Tool/
Ideal Universe/
New Market)
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
(-): PAIN
(+): DELIGHT
Disruption Spot
Luxury Spot
Strategic
Choice
Customer Intimacy
DISCIPLINE
Operational
Excellence
DISCIPLINE
Quality of
Experience
(Performance)
Cost
Product Leadership
DISCIPLINE
Key
OMG-Experience:
Undesirable Experience:
GURUS Value Discipline Map
Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models
Market Segment (Customer Problem/Goal): ………………………………………………………
Ideal Value Space
(Ideal Market/
Ideal Impossibility/
Ideal Tool/
Ideal Universe/
New Market)
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
(-): PAIN
(+): DELIGHT
Disruption Spot
Luxury Spot
Strategic
Choice
Defect (Error; Waste; Delay;
Complaint; Deviation from ‘Standard’;
Delivery Time; Complexity)
Process
Speed
(Agility; Flow;
Efficiency;
Effectiveness)
Lean-Six Sigma
METHODOLOGY
Six Sigma
METHODOLOGY
Lean Manufacturing
METHODOLOGY
GURUS
Market Segment (Customer Problem/Goal): ………………………………………………………
Key
OMG-Experience:
Undesirable Experience:
Ideal Value Space
(Ideal Market/
Ideal Impossibility/
Ideal Tool/
Ideal Universe/
New Market)
Lean-Six Sigma Map
Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
(-): PAIN
(+): DELIGHT
Disruption Spot
Luxury Spot
Strategic
Choice
Novelty of
Meaning
(Interaction; Job;
Utility; Want;
Language; Style;
Differentiation)
Technology Obsolescence
(Maturity; Cycle; Evolution)
Game-changing
MEANING/TOOL
(Paradigm Shift)
Emergent
MEANING/TOOL
Generic
MEANING/TOOL
(Existing Paradigm)
Stretch
MEANING/TOOL
Disruptive
MEANING/TOOL
GURUS
Market Segment (Customer Problem/Goal): ………………………………………………………
Key
OMG-Experience:
Undesirable Experience:
Ideal Value Space
(Ideal Market/
Ideal Impossibility/
Ideal Tool/
Ideal Universe/
New Market)
Meaning-driven Innovation Map
Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
(-): PAIN
[HARMFUL EFFECT]
(+): DELIGHT
[USEFUL EFFECT]
Disruption Spot
Luxury Spot
Strategic
Choice
Undesirable Parameter
(Cost; Size; Weight; Time; Defect; Rigidity;
Quantity; Material; Complexity; Resource)
TRIZ Design
(Win-Win) Strategy
Value Innovation
Conventional Design
(Win-Lose) Strategy
Thinking-in-the-box
Optimization Design
(Win-Neutral) Strategy
Optimization
Disruptive Design
(‘Good Enough’) Strategy
Disruptive Innovation
Desirable
Parameter
(Performance;
Strength; Power;
Reliability
Quality;
Accuracy;
Speed; Content;
Versatility)
GURUS
Market Segment (Customer Problem/Goal): ………………………………………………………
Key
OMG-Experience:
Undesirable Experience:
Ideal Value Space
(Ideal Market/
Ideal Impossibility/
Ideal Tool/
Ideal Universe/
New Market)
Technical Innovation Map
Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
(-): PAIN
(+): DELIGHT
Disruption Spot
Luxury Spot
Strategic
Choice
Cash Cow
Star
Market
Growth
Rate
Commoditization
(1 – Market Share)
Dog
Question Mark
Key
OMG-Experience:
Undesirable Experience:
GURUS
Market Segment (Customer Problem/Goal): ………………………………………………………
Product Portfolio Map
Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models
Ideal Value Space
(Ideal Market/
Ideal Impossibility/
Ideal Tool/
Ideal Universe/
New Market)
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
(-): PAIN
(+): DELIGHT
Disruption Spot
Luxury Spot
Strategic
Choice
Key
OMG-Experience:
Undesirable Experience:
GURUS
Sweet SpotBlue Ocean
(“Practical Impossibility”)
Luxury Spot
Disruption Spot VolcanoOasis
Green Ocean Red OceanNo Man’s Island
CUSTOMER EXPERIENCE MAP: Descriptions
Collaboratively Collect, Organize, Prioritize, and Manage
Vision, Strategies, Products, Services, and Business Models
3
10
6
3
6
10
Ideal Value Space
(Ideal Market/
Ideal Impossibility/
Ideal Tool/
Ideal Universe/
New Market)
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
(-): PAIN
(+): DELIGHT
Disruption Spot
Luxury Spot
Strategic
Choice
Big Urgent Market
Pain
(BUMP)
BUMP MAP
Collaboratively Discover or Identify Big Urgent Market Pain (BUMP)
Urgency
(Need/Importance)
of Solution
Size or Pervasiveness of Pain
(Number of ‘Victims’ or
Customers & Non-customers)
GURUS
List of Stakeholders
Market Segment (Customer Problem/Goal): ………………………………………………………
Little Urgent
Market Pain
(LUMP)
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
(-): PAIN
(+): DELIGHT 2
Emotional Delight
(Branding/Differentiation; Customization)
Intellectual Pain
(Complexity; Cost
Inaccessibility;
Processing Time)
(+): DELIGHT 1
Physical Delight
(Functionality; Quality; Performance)
Future
Market
Space
Existing
Market
SpaceKey
OMG-Experience:
Undesirable Experience:
GURUS
Market (Customer Problem/Goal): ……………………………………………
Customer Value Cube
Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
(-): PAIN 2
(+): DELIGHT 2
Value
(Quality; Differentiation)
Waste
(Cost; Time; Defect)
Lean
Startup
(-): DELIGHT 1
Performance
(Functionality)
Future
Market
Space
Existing
Market
SpaceKey
OMG-Experience:
Undesirable Experience:
GURUS
Market (Customer Problem/Goal): Lean Customer Development
LEAN STARTUP Cube
Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
0
2
4
6
8
10
0 2 4 6 8 10
DELIGHT
PAIN
Customer Value Quotient (VEQ) = Weighted Delight/Weighted Pain = Utility Function
= Slope of Customer Experience Curve
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
TRADE-OFF GRAPH: Template
Visually Describe, Analyze, and Manage Customer Experiences & Trade-offs
Desirable Experience
Undesirable Experience
GURUS
Zero Trade-off
(Ideal Tool/New Market Disruption/Singularity)
Market Segment (Customer Problem/Goal):
………………………………………………………………………..…
0
2
4
6
8
10
0 2 4 6 8 10
DELIGHT
( Differentiation;
Quality)
PAIN
(Cost)
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
Classic Competitive Strategies Graph
Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models
CONVENTIONAL THINKING
(“Higher quality, higher cost”)
“Stuck
in the
Middle”
Classic
Differentiation
(“Short head”/
“20-80”/
High Profit
Margin)
Classic Cost
Leadership
(“Long Tail”/
Low Profit
Margin)
Desirable Experience
Undesirable Experience
GURUS
Zero Trade-off
(Ideal Tool/New Market Disruption/Singularity)
Market Segment (Customer Problem/Goal):
Competitive Advantage
Customer Value Quotient (CVQ) = Weighted Delight/Weighted Pain = Utility Function
= Slope of Customer Experience Curve
0
2
4
6
8
10
0 2 4 6 8 10
DELIGHT
( Knowledge;
Quantity)
PAIN
(Cost; Price)
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
Knowledge Advantage Graph
Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models
DEMAND CURVE
(When price decreases, demand increases)
KNOWLEDGE ADVANTAGE CURVE
(‘Long-term Demand Curve’)
GURUS
Market Segment (Customer Problem/Goal):
………………………………………………………………………..…
Zero Trade-off
(Ideal Tool/New Market Disruption/Singularity)
Customer Value Quotient (VVQ) = Weighted Delight/Weighted Pain = Utility Function
= Slope of Customer Experience Curve
0
2
4
6
8
10
0 2 4 6 8 10
DELIGHT
(Quantity)
PAIN
(Price)
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
Price-Quantity (Demand & Supply) Graph
Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models
DEMAND CURVE
(When price decreases, consumer increases demand)
SUPPLY CURVE
(When price increases, supplier increases quantity)
Market Segment (Customer Problem/Goal):
………………………………………………………………………..…
Zero Trade-off
(Ideal Tool/New Market Disruption/Singularity)
GURUS
Customer Value Quotient (VVQ) = Weighted Delight/Weighted Pain = Utility Function
= Slope of Customer Experience Curve
0
2
4
6
8
10
0 2 4 6 8 10
Illustrating Moore’s Law as an Instance of Evolution Towards ‘Zero Trade-off’
DELIGHT
(Transistors)
PAIN
(Size)
CEQ = 8/1= 8
Customer Experience Quotient (CEQ) = Weighted Delight/Weighted Pain Function of (Transistors/Size)
= Slope of Customer Experience Curve
CEQ = 4/1= 4
CEQ = 2/1= 2
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
Moore’s Law Graph
Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models
Market (Customer Goal): Integrated Circuit Board
GURUS
Zero Trade-off
(Ideal Tool/New Market Disruption/Singularity)
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. rodkuhnking@sbcglobal.net & 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)
GURUS
BLUE OCEAN-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
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. rodkuhnking@sbcglobal.net & 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)
GURUS
DISRUPTION SPOT-BUSINESS MODEL
Collaboratively Expand Market and Become Uncontested Leader in Emerging Fast-growing Industry
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. rodkuhnking@sbcglobal.net & 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)
GURUS
LUXURY SPOT-BUSINESS MODEL
Collaboratively Expand Market and Become Uncontested Leader in Existing Fast-growing Industry
IMPACTS
SYSTEM
VOICE OF THE CUSTOMER IN CORE & PERIPHERAL INDUSTRIES
CUSTOMER DELIGHT (+) CUSTOMER PAIN (-)
Selection Criteria:
Needs & Barriers
COMPETITORS
Function/
Content/
Perf./
Knowledge
Quality/
Reliability/
Accuracy/
Efficiency
Brand/
Emotion/
Style/Aura/
Prestige
Customization/
Personalization/
Interactivity/
Entertainment
Cost
(Price)
Inaccessibility/
Unavailability/
Inflexibility/
Friction/Scale
Complexity/
Difficulty/
Support/
Range/Risk
Process
Time/
Delay/
Age
WEIGHT
(IMPORTANCE)
Given Business/
Product:
CORE
COMPETITORS
(Core Industry)
PERIPHERAL
COMPETITORS
(Peripheral Ind.)
REMOTE
COMPETITORS
(Remote Ind.)
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
Mission/Vision: …………………….………………………………………………….
GURUS
Market Segment (Customer Problem/Goal): ……………………….….…
CUSTOMER EXPERIENCE OF COMPETITORS
Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models
IMPACTS
SYSTEM
VOICE OF THE CUSTOMER IN CORE & PERIPHERAL INDUSTRIES
CUSTOMER DELIGHT (+) CUSTOMER PAIN (-)
Selection Criteria:
Needs & Barriers
CURVES
Function/
Content/
Perf./
Knowledge
Quality/
Reliability/
Accuracy/
Efficiency
Brand/
Emotion/
Style/Aura/
Prestige
Customization/
Personalization/
Interactivity/
Entertainment
Cost
(Price)
Inaccessibility/
Unavailability/
Inflexibility/
Friction/Scale
Complexity/
Difficulty/
Support/
Range/Risk
Process
Time/
Delay/
Age
WEIGHT
(IMPORTANCE)
Given Business/
Product:
CUSTOMER
EXPERIENCE
CURVES
10
8
6
4
2
0
Mission/Vision: …………………….………………………………………………….
Key -> 1: Low level; 10: Extraordinary level of experience
Customer Value Quotient (CVQ)
= Weighted Delight/Weighted Pain
CUSTOMER EXPERIENCE CURVES
Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business ModelsGURUS
Market Segment (Customer Problem/Goal): ……………………….….…
Mission/Vision: …………………….………………………………………………….
IMPACTS
SYSTEM
VOICE OF THE CUSTOMER IN CORE & PERIPHERAL INDUSTRIES
CUSTOMER DELIGHT (+) CUSTOMER PAIN (-)
Selection Criteria:
Needs & Barriers
TACTICS
Function/
Content/
Perf./
Knowledge
Quality/
Reliability/
Accuracy/
Efficiency
Brand/
Emotion/
Style/Aura/
Prestige
Customization/
Personalization/
Interactivity/
Fun/Entertain.
Cost
(Price/
Weight/
Material)
Inaccessibility/
Unavailability/
Inflexibility/
Friction/Scale
Complexity/
Difficulty/
Support/Risk
Range/Shape
Process
Time/
Delay/
Age
WEIGHT
(IMPORTANCE)
Av. Competitor:
Chief Competitor:
Given Business/
Product:
E: Eliminate
R: Reduce
I: Increase
C: Create
CUSTOMER EXPERIENCE TACTICS
Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business ModelsGURUS
Market Segment (Customer Problem/Goal): ……………………….….…
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
GURUS
4 VALUE INNOVATION
SUPERHEROES
(ARCHETYPAL THINKING ROLES)
FOR
TARGETED OBJECTS/RESOURCES:
System, Elements, Attributes, Processes
& Supersystem/Industry/Environment
4 VALUE INNOVATION SUPERHEROES
FOR THE BLUE OCEAN STARTUP
E: ELIMINATOR
Has the Power to
 Remove totally
 Skip
 Discard
 Destroy
 Introduce Zero/Void/Vacuum
Has all tools and gadgets for ELIMINATING objects
R: REDUCER
Has the Power to
 Remove partially; Streamline
 Trim; Prune; Downsize; Make Lean
 Minify; Miniaturize
 Separate; Standardize; Replace
 Divide; Segment
Has all tools and gadgets for REDUCING objects
C: CREATOR:
Has the Power to
 Make (a)symmetrical/opposite
 Reverses Combine; Integrate
 Replace; Universalize
 Create Fields/Forces/Feedback
 Substitute; Transform; Restructure
 Use Another Dimension
 Hybridize/Bisociate
Has all tools and gadgets for CREATING objects
I: INCREASER
Has the Power to
 Add; Multiply; Magnify; Mutate
 Merge; Nest
 Introduce Interface; Cushion;
 Stretch; Extend
 Diversify
 Use Additional Components
Has all tools and gadgets for INCREASING objects
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. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
WISDOMSOURCING MAPS FOR
THE BLUE OCEAN STARTUP
Visually Facilitate Collaboration, Ideas Management, Creativity, and Customer Problem Solving
GURUS
Horizontal
Wisdomsourcing Map
Vertical
Wisdomsourcing Map
Pain-Delight
Wisdomsourcing Map
Classic Family of Wisdomsourcing Maps: Parent and 8 Children
Parent (Child: Mini-Wisdomsourcing Map)
Collect Ideas:
Flexibly & Efficiently List/Brainstorm/
Document/Storyboard Ideas in Cluster
Organize Ideas:
Outline/Deconstruct; Classify/Collate/
Analyze/Synthesize Ideas in Cluster
Prioritize Ideas:
Rate/Rank/Sort/Classify/Compare/
“Analogize”/“Bisociate” Ideas in Cluster
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
CLASSIC WISDOMSOURCING MAPS
Family of Fractal Idea Organizers for Collaborative Creativity, Problem-solving, Decision-making, and Learning
THE INFINITE WISDOMSOURCING MAP
Collaboratively and Fractally Organize All Information in the Universe: Past, Present, and Future
GURUS
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
Level 0
Mini-Wisdomsourcing Map
(Building Block, Atom, Seed, or Screen)
Super Wisdomsourcing Map:
3x3 Classic Wisdomsourcing Map
Level 1
Level 2
Classic Wisdomsourcing Map:
3x3 Mini-Wisdomsourcing Map
GURUS
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
CLASSIC HORIZONTAL MAP
Theme/Topic: …………………………………….……………………………………..…… Date: …………………..…..
ITENN
GURUS
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
CLASSIC VERTICAL MAP
Theme/Topic: …………………………………….……………………………………..…… Date: …………………..…..
(-): PAIN
(+): DELIGHT
Disruption Spot
Luxury Spot
Strategic
Choice
Key
OMG-Experience:
Undesirable Experience:
GURUS
Market Segment (Customer Problem/Goal): ………………………………………………………
Ideal Value Space
(Ideal Market/
Ideal Impossibility/
Ideal Tool/
Ideal Universe/
New Market)
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
CLASSIC PAIN-DELIGHT MAP
Theme/Topic: …………………………………….……………………………………..…… Date: …………………..…..
ABOUT THE INVENTOR/AUTHOR
GURUS
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & 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 and
International patent-pending, can be
used for visually organizing and
Prioritizing massive amounts of
information such as in search
engines, social networks, and
other 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 Wisdomsourcing
Group, an online Global Think Tank
for collaboratively improving
customer experiences and resolving
tough dilemmas
Organizer & Coordinator of Wisdom-
sourcing survey involving over 200
professionals from over 30 countries
CONTACT
Dr. Rod King: California, USA
Cell: (559) 248-6230
rodkuhnking@sbcglobal.net
http://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 for
multi-disciplinary projects
Dr. Rod King
Visual 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. rodkuhnking@sbcglobal.net & 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 Problem
Solving
• ‘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
WISDOMSOURCING
3.
CROWDSOURCING
2.
1.
BRAINSTORMING
EVOLUTION OF WISDOMSOURCINGGURUS
Got Business Model Problems?
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
Send an E-mail
To, at least, 10 Colleagues
Telling Them About This
FREE & INTERACTIVE One-stop Toolkit:
“Business Model Development
for Blue Ocean Startups”
Note: This offer is for LIMITED TIME ONLY!!!
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing

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BUSINESS MODEL DEVELOPMENT FOR BLUE OCEAN STARTUPS

  • 1. BUSINESS MODEL DEVELOPMENT FOR BLUE OCEAN STARTUPS A One-stop Toolkit for Discovering, Validating, and Managing Your Business Model Dr. Rod Kuhn King Visual Problem Solver, Inventor, and Magician
  • 2. Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing Business Model Development (BMD) Involves a Visual Integration of Best Practice Methodologies Including  Kim & Mauborgne’s Blue Ocean Strategy  Steve Blank’s Customer Development  Eric Ries’s Lean Startup  Alex Osterwalder’s Business Model Canvas  Rod King’s Wisdomsourcing Map
  • 3. Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing Business Model Development (BMD) Is a More Cost-Effective Way To Design, Launch, and Manage Businesses Especially
  • 4. Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing Business Model Development (BMD) Recognizes That Business Plan Development (BPD) Is an Ineffective and Unsuitable Approach In a World of Rapid Commoditization, Great Uncertainty, and Limited Resources Such as in the World of
  • 5. Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing The Paradigm of Business Model Development (BMD) Assumes That Businesses Should Be Conceived, Launched, and Managed Like in Successful Magic Theater: Customers Should Be Put First In Order to Design and Deliver Oh My God (OMG)-Customer Experiences
  • 6. RAPID DEPLOYMENT AND LEARNING TIME AND MONEY SAVINGS EASIER TO UNDERSTAND AND APPLY CAN BE LINKED TO AND INTEGRATED WITH ALL TOOLS FOR CUSTOMER PROBLEM SOLVING VERSATILE: APPLICABLE TO SOFTWARE AND NON-SOFTWARE BUSINESSES FACILIITATES COLLABORATION ADVANTAGES OF BUSINESS MODEL DEVELOPMENT (BMD) FOR BLUE OCEAN STARTUPS SCALABLE AND FRACTAL TOOLS “FUNNER” TO USE ADVANTAGES OF BUSINESS MODEL DEVELOPMENT FOR BLUE OCEAN STARTUPS GURUS Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
  • 7. (-): PAIN (+): DELIGHT Disruption Spot Luxury Spot Strategic Choice Key OMG-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) Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
  • 8. (-): PAIN (+): DELIGHT 2 Profit Margin Direct Competitors (Commoditization) (+): DELIGHT 1 Industry Attractiveness (Market Growth) New Market Space Existing Market SpaceKey OMG-Experience: Undesirable Experience: GURUS Market (Customer Problem/Goal): …………………………………………… BLUE OCEAN STARTUP Cube Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
  • 9. CUSTOMER CREATION PYRAMID FOR THE BLUE OCEAN STARTUP Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing  Delighters  Satisfiers  Dissatisfiers  Delighters  Satisfiers  Dissatisfiers  Delighters  Satisfiers  Dissatisfiers NON-COMPETITORS (Remote Industries/Economy: Sectoral & Geographical Non-alternatives) DIRECT COMPETITORS (Core Sector/Strategic Groups: Substitutes) BUSINESS (New) Customer Value Proposition/Market: …………………………………………………………………..  NON- CUSTOMERS o Profitable o Break-even o Unprofitable Oh My God- Product/Service Why? How? Why? How? Why? How? INDIRECT COMPETITORS (Peripheral/Adjacent Industries: Alternatives/Value Chain Complements) Diffusion (Word-of-mouth) Potential = Delighters + Satisfiers - Dissatisfiers GURUS
  • 10. CUSTOMER PERSPECTIVE (Voice of the Customer) BUSINESS PERSPECTIVE (Voice of the Business) DEFINITION OF OH MY GOD (OMG)-PRODUCT GURUS  An Oh My God (OMG)-Product delivers an uncontested experience or value which is so remarkable that the large majority of customers say: “Oh My God!”  An Oh My God (OMG)-Product is an uncontested market leader in a fast growing niche or market segment, that is, an OMG-Product has a market share of at least three times that of the nearest competitor as well as has a market growth rate of at least 10% a year. In addition, the OMG-Product has a profit margin of at least 20%. DEFINITION OF OH MY GOD (OMG)-PRODUCT Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
  • 11. ARCHETYPAL STRATEGIES FOR DESIGNING OH MY GOD (OMG)-PRODUCTS GURUS ARCHETYPAL STRATEGIES 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-in Market Strategies Zooming-out Market Strategy Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
  • 12. Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing GURUS PROBLEM-SOLUTION MAP PROBLEM-SOLUTION MAP Visually Facilitate Collaboration, Ideas Management, Creativity, and Customer Problem Solving PROBLEM SOLUTION
  • 13. Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing “PUSH” BUSINESS MODEL DEVELOPMENT “PULL” BUSINESS MODEL DEVELOPMENT GURUS  Supply-oriented Approach  Product-centric  Waterfall Model: Linear Product Development  Production Line/Chain Model  Classic Competitive Strategy  Traditional Business Plan  Traditional Strategic Plan  Traditional Balanced Scorecard  Long Cycle for Product Development  High Risk of Product-Market Misfit  Suitable in a Routine/Predictable World of Little or No Risk as well as Great Access to Resources  Demand-oriented Approach  Customer-centric  Customer Development Model (Steve Blank): Iterative  Lean Startup Model (Eric Ries): Continuous Learning And Rapid Prototyping/Deployment  Blue Ocean Startup (Rod King)  Blue Ocean Strategy  Disruptive Innovation Strategy  Crowdsourcing  QFD/Voice of the Customer  Six Sigma/Lean Thinking/ Agile Development/Just-In-Time  Concurrent Engineering “PUSH” vs. “PULL” BUSINESS MODEL DEVELOPMENT “PUSH” vs. “PULL” BUSINESS MODEL DEVELOPMENT
  • 14. Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing GURUS BUSINESS MODEL DEVELOPMENT (BMD) MAP 4 STAGES IN THE WEB OF BUSINESS MODEL DEVELOPMENT 1. BUSINESS MODEL PROBLEM & DISCOVERY 2. BUSINESS MODEL VALIDATION 3. BUSINESS MODEL EXECUTION 4. BUSINESS MODEL MANAGEMENT
  • 15. ITENNBUSINESS MODEL PROBLEM & DISCOVERY What’s the evidence? GURUS Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing BUSINESS MODEL PROBLEM & DISCOVERY Visually Facilitate Collaboration, Ideas Management, Creativity, and Customer Problem Solving
  • 16. ITENNBUSINESS MODEL VALIDATION What’s the evidence? GURUS Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing BUSINESS MODEL VALIDATION Visually Facilitate Collaboration, Ideas Management, Creativity, and Customer Problem Solving
  • 17. ITENNBUSINESS MODEL EXECUTION What’s the evidence? GURUS Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing BUSINESS MODEL EXECUTION Visually Facilitate Collaboration, Ideas Management, Creativity, and Customer Problem Solving
  • 18. ITENNBUSINESS MODEL MANAGEMENT What’s the evidence? GURUS Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing BUSINESS MODEL MANAGEMENT Visually Facilitate Collaboration, Ideas Management, Creativity, and Customer Problem Solving
  • 19. Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing GURUS THE 2 WORLDS OF BUSINESS MODEL DEVELOPMENT THE 2 WORLDS OF BUSINESS MODEL DEVELOPMENT BUSINESS MODEL PROBLEM & DISCOVERY BUSINESS MODEL VALIDATION BUSINESS MODEL EXECUTION BUSINESS MODEL MANAGEMENT WORLD OF BUSINESS MODEL SEARCH (For ‘Startups/Entrepreneurs/Founders’) WORLD OF BUSINESS MODEL EXECUTION (For ‘Established Companies/Accountants’)
  • 20. GURUS PROBLEM UNIVERSE GOAL UNIVERSE EXECUTION UNIVERSE LIFESPACE RESOURCES (Internal/External) WISDOMSOURCING CANVAS Theme: WISDOMSOURCING CANVAS A Zoomable Jigsaw Puzzle for Collaboratively Solving Problems and Presenting Solutions Date: ……………………..…… Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
  • 21. BUS. MODEL DEVELOPMENT FOR THE BLUE OCEAN STARTUP Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models Theme: ………………………………………………………………………………………… Date: …………………..….. BUSINESS MODEL DEVELOPMENT (BMD) FOR THE BLUE OCEAN STARTUP GENERIC ACTIVITIES FOR CORE & PERIPHERAL INDUSTRIES BUSINESS MODEL (CUSTOMER/PRODUCT) WISDOMSOURCING CANVAS COLLABORATIVE PROBLEM SOLVING TASKS FOR PROCESS/INDUSTRY/BUSINESS MODEL/PRODUCT PROBLEM/ DISCOVERY VALIDA- TION EXECU- TION MANAGE- MENT PROBLEM UNIVERSE: GLOBAL PROBLEM MAPPING Collect/Define/Measure/Verify Problems, Pains, and Trade-offs in System for Customer Segments/Personas Organize/Group/Analyze Problems, Pains, and Trade-offs Prioritize/Verify Big Urgent Market Pain (BUMP) GOAL UNIVERSE: GLOBAL GOAL & STRATEGY MAPPING Collect/Generate/Verify OMG-Goals, Objectives, Strategies, Tactics, Targets & Processes for Eliminating BUMP Organize/Group/Generate a Hierarchy of OMG-Goals, Objectives, Strategies, Tactics, Targets & Processes Prioritize/Verify OMG-Goals, Objectives, Strategies, Tactics, Targets & Processes and Synthesize into a Plan/Prototype EXECUTION UNIVERSE: GLOBAL STRATEGY EXECUTION Implement, Control, and Validate Plan/Prototype Reflecting OMG-Goals, Objectives, Strategies, Tactics, Targets & Processes. Prepare Project Charter and Form Project Team with Diverse Members (Customers and Non-customers) Mission/Vision: …………………….…………………………………………………. GURUS Market Segment (Customer Problem/Goal): ……………………….….… Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
  • 22. MEMBER 4 MEMBER 6 MEMBER 1 MEMBER 5 MEMBER … MEMBER 3 PROJECT TEAM FOR: MEMBER 7 MEMBER 2 PROJECT TEAM FOR THE BLUE OCEAN STARTUPGURUS Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
  • 23. Ron Johnson Phillip Schiller Steve Jobs Bruce Sewell Peter Oppenheimer Tim Cook APPLE INC.: Executives (2010) Scott Forstall Jonathan Ive PROJECT TEAM Template: Example EXECUTIVE TEAM FOR APPLE INC. GURUS Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
  • 24. MEMBER/CONTACT 4 MEMBER/CONTACT 6 MEMBER/CONTACT 1 MEMBER/CONTACT 5 MEMBER/CONTACT … MEMBER/CONTACT 3 SOCIAL NETWORK/ CONTACTS FOR: MEMBER/CONTACT 7 MEMBER/CONTACT 2 SOCIAL NETWORK FOR THE BLUE OCEAN STARTUPGURUS Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
  • 25. Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing The Methodology of Business Model Development (BMD) Seamlessly Integrates Major Breakthrough Ideas and Tools In Customer Development, Collaboration, Business Creativity, Strategy, Innovation, and Performance Management Over the Last 50 Years
  • 26. Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing Business Model Development (BMD) Helps to Reduce the Risk of Failure of Businesses Especially Scalable Startups By Facilitating the Discovery, Validation, Execution, and Management of Business Models
  • 27. Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing Business Model Development (BMD) Also Helps Individuals and Teams To Deploy Any Business Process or Methodology In a Simpler, Faster, and Funner Way
  • 28. ITENN E: ENVIRONMENT PROBLEMS  Inadequate Profit Margin/Cash Flow/Return On Investment  Hyper-competition  Commoditization: Red Ocean  Ineffective Partners; Conflicts  Volatile/Chaotic Environment P: PROCESS PROBLEMS  Incomplete Global Value Chain/ Business Model; Waste  Inadequate Business Processes: Business Model Development/ Innovation/Strategy/Execution  Ineffective Marketing/Sales S: SUPPLIER/MATERIAL PROBLEMS  Inadequate Suppliers  Inadequate Materials R: RETAILER/DISTRIBUTOR/ CHANNEL PROBLEMS  Inadequate Channels/ Distributors/Logistics  Inadequate Branding/Marketing/ Advertising O: OUTPUT (PRODUCT/ SERVICE) PROBLEMS  Product-Market Misfit  Service-Market Misfit  Ineffective Pricing Model/ Strategy  Slow Prototyping/Deployment  Unacceptable Defects/Design E: EMPLOYEE/KNOWLEDGE ASSETS/CULTURE PROBLEMS  Unrealistic Vision/Forecast/Target  Ineffective Team/Culture  Ineffective Business Strategy  Ineffective Product Development  Ineffective Strategic Alignment  Inadequate Learning/Insights WHY DO BUSINESSES (STARTUPS) FAIL AND DIE? INEFFECTIVE/INADEQUATE  Customer Value Proposition  Business Value (Experience)  Customer Value (Experience)  Competitive Advantage M: MACHINERY/EQUIPMENT/ FACILITY/LOCATION PROBLEMS  Inadequate Machinery/ Equipment/Tools  Inadequate Technology  Inadequate Infrastructure  Inadequate Location C: CUSTOMER/CONSUMER & RELATIONSHIP PROBLEMS  Inadequate No. of Customers  Inadequate Market Growth Rate  Inadequate Customer Relation- ships/Loyalty  Inadequate Collaboration/‘VoC’ WHY DO BUSINESSES (STARTUPS) FAIL AND DIE?GURUS Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
  • 29. 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. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
  • 30. ITENNCOMPETITORS’ PRODUCTS/SERVICES What’s the evidence? GURUS Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing COMPETITORS’ PRODUCTS/SERVICES Visually Facilitate Collaboration, Ideas Management, Creativity, and Customer Problem Solving
  • 31. WHY? HOW MANY? HOW MUCH? WHAT (PROBLEMS)? HOW? WHAT NEXT? WHERE? COMPETITORS’ PROBLEMS:  Weaknesses  Threats What’s the evidence? WHEN? WHO? COMPETITORS’ PROBLEMS Visually Facilitate Collaboration, Ideas Management, Creativity, and Customer Problem Solving GURUS Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
  • 32. WHY? HOW MANY? HOW MUCH? WHAT (PROBLEMS/PAIN)? HOW? WHAT NEXT? WHERE? CUSTOMER PROBLEMS (PAIN) What’s the evidence? WHEN? WHO? CUSTOMER PROBLEMS Visually Facilitate Collaboration, Ideas Management, Creativity, and Customer Problem Solving GURUS Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
  • 33. WHY? HOW MANY? HOW MUCH? WHAT (PROBLEMS)? HOW? WHAT NEXT? WHERE? BUSINESS PROBLEMS (PAIN) What’s the evidence? WHEN? WHO? BUSINESS PROBLEMS Visually Facilitate Collaboration, Ideas Management, Creativity, and Customer Problem Solving GURUS Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
  • 34. CAUSE 4 CAUSE 6 CAUSE 1 CAUSE 5 CAUSE … CAUSE 3 ROOT-CAUSE MAP ------------------------------- MAIN PROBLEM (EFFECT): What’s the evidence? CAUSE 7 CAUSE 2 ROOT-CAUSE MAP Visually Facilitate Collaboration, Ideas Management, Creativity, and Customer Problem Solving GURUS Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
  • 35. WHY (MISSION)? HOW MANY? HOW MUCH? WHAT (VISION)? HOW? WHAT NEXT? WHERE? BUSINESS VISION WHEN? WHO? BUSINESS VISION Visually Facilitate Collaboration, Ideas Management, Creativity, and Customer Problem Solving GURUS Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
  • 36. Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing GURUS WHAT IS A BUSINESS MODEL? A Business Model or Value Chain is a Schema of How an Organization or Industry Operates to Deliver Value Especially Profit and Oh My God-Customer Experiences
  • 37. ITENN ENVIRONMENT UNIVERSAL MODEL OF A SYSTEM GURUS Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing SYSTEM OUTPUTPROCESSING INPUT (Elements) FEEDBACK (“Pivot”/Learning Cycle)
  • 38. ITENN ENVIRONMENT UNIVERSAL BUSINESS SYSTEM GURUS Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing SUPPLIERS/ MATERIALS Partners CompetitorsInvestor CUSTOMERS/ CONSUMERS Government Society RETAILERS/ CHANNELS BUSINESS OUTPUT (Product/ Service) PROCESSING (PROCESSES) INPUT (EMPLOYEES/ MACHINERY) FEEDBACK (“Pivot”/Learning Cycle)
  • 39. INPUT (ELEMENT) 4 : X4 INPUT (ELEMENT) 6 : X6 INPUT (ELEMENT) 1: X1 INPUT (ELEMENT) 5 : X5 INPUT (ELEMENT) … : X… INPUT (ELEMENT) 3 : X3 VISUAL EQUATION FOR A SYSTEM ------------------------------- OUTCOME OR OUTPUT (Y) = FUNCTION OF INPUTS (X) INPUT (ELEMENT) 7 : X7 INPUT (ELEMENT) 2 : X2 VISUAL EQUATION FOR A SYSTEM Visually Facilitate Collaboration, Ideas Management, Creativity, and Customer Problem Solving GURUS Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
  • 40. ITENNE: 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. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
  • 41. ITENNE: ENVIRONMENT WASTE P: PROCESS WASTE S: SUPPLIER/MATERIAL WASTE R: RETAILER/DISTRIBUTOR/ CHANNEL WASTE O: OUTPUT (PRODUCT/ SERVICE) WASTE E: EMPLOYEES/KNOWLEDGE ASSETS/CULTURE WASTE GLOBAL VALUE CHAIN WASTE: OUTCOMES/DEFECTS  Customer Value Proposition (Job)  Business Value = Revenue/Cost  Customer Value (Experience) = Customer Delight/Customer Pain M: MACHINERY/EQUIPMENT/ FACILITY/LOCATION WASTE C: CUSTOMER/CONSUMER WASTE GLOBAL VALUE CHAIN WASTEGURUS Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
  • 42. ITENNE: ENVIRONMENT HYPOTHESES P: PROCESS HYPOTHESES S: SUPPLIER/MATERIAL HYPOTHESES R: RETAILER/DISTRIBUTOR/ CHANNEL HYPOTHESES O: OUTPUT (PRODUCT/ SERVICE) HYPOTHESES E: EMPLOYEES/KNOWLEDGE ASSETS/CULTURE HYPOTHESES GLOBAL VALUE CHAIN HYPOTHESES: EXPECTATIONS FOR  Customer Value Proposition (Job)  Business Value = Revenue/Cost  Customer Value (Experience) = Customer Delight/Customer Pain M: MACHINERY/EQUIPMENT/ FACILITY/LOCATION HYPOTHESES C: CUSTOMER/CONSUMER HYPOTHESES GLOBAL VALUE CHAIN HYPOTHESES Formulate, Test, and Validate Hypotheses for Elements of Value Chain or Business Model GURUS Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
  • 43. ITENNGLOBAL VALUE CHAIN: GOALS  Customer Value Proposition (Job)  Business Value = Revenue/Cost  Customer Value (Experience) = Customer Delight/Customer Pain GURUS Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing GOALS OF GLOBAL VALUE CHAIN Collaboratively List and/or Sketch Goals Including Elements of Vision, Value Proposition, Business Value, and Customer Value
  • 44. ITENN S: SUPPLIERS/MATERIALS SUPPLIERS Collaboratively List and/or Sketch Suppliers/Materials GURUS Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
  • 45. ITENN E: EMPLOYEES/ KNOWLEDGE ASSETS EMPLOYEES Collaboratively List and/or Sketch Employees/Knowledge Assets GURUS Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
  • 46. ITENN M: MACHINERY/ EQUIPMENT/FACILITY MACHINERY Collaboratively List and/or Sketch Machinery/Equipment/Facilities GURUS Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
  • 47. ITENN P: PROCESSES/STRATEGIES PROCESSES Collaboratively List and/or Sketch Processes/Strategies GURUS Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
  • 48. ITENN O: OUTPUTS (PRODUCTS/SERVICES) OUTPUTS Collaboratively List and/or Sketch Outputs (Products/Services) GURUS Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
  • 49. ITENN R: RETAILERS/CHANNELS/ DISTRIBUTORS RETAILERS Collaboratively List and/or Sketch Retailers/Channels/Distributors GURUS Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
  • 50. ITENN C: CUSTOMERS/ CONSUMERS CUSTOMERS Collaboratively List and/or Sketch Customers/Consumers GURUS Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
  • 51. ITENN E: ENVIRONMENT ENVIRONMENT Collaboratively List and/or Sketch Elements of Environment: Partners/Complementors/Competitors/Industries/Investors/Government/NGOs/Enemies/Society GURUS Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
  • 52. ITENNE: 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 Collaboratively List, Sketch, Organize, and/or Manage Metrics for Elements of Value Chain GURUS 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. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
  • 53. ITENNE: 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 CHAIN FOR “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. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
  • 54. ITENNE: 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. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
  • 55. 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 SYSTEM (INDUSTRY/BUSINESS) GURUS Market Segment (Customer Problem): ‘Fragmented’ Music ExperienceMission/Vision: “… Apple leads the digital music revolution. …”
  • 56. 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 Marketing Sales Marketing Cost Sales 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
  • 57. 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 SYSTEM (INDUSTRY/BUSINESS) GURUS Market Segment (Customer Problem/Goal): ……………………….….… Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
  • 58. FOCUS EVOLUTION OF BUSINESS MODEL IDEAL BUSINESS MODEL BUSINESS/ GLOBAL VALUE CHAIN DESCRIPTION/ INDUSTRY PAST BUSINESS MODEL PRESENT BUSINESS MODEL FUTURE 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 EVOLUTION Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models SYSTEM (INDUSTRY/BUSINESS) GURUS Market Segment (Customer Problem/Goal): ……………………….….… Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
  • 59. 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 SYSTEM (INDUSTRY/BUSINESS) GURUS Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
  • 60. 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 BUSINESS MODEL 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 SYSTEM (INDUSTRY/BUSINESS) GURUS Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
  • 61. 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 BUSINESS MODEL 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 SYSTEM (INDUSTRY/BUSINESS) GURUS Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
  • 62. FOCUS BUSINESS MODEL TRENDS IN AN ECONOMY LEARNING: Findings/ Insights/Deci- sions/Actions BUSINESS/ GLOBAL VALUE CHAIN DESCRIPTION/ INDUSTRY PHYSICAL SECTOR SOCIAL SECTOR KNOWLEDGE SECTOR 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 SYSTEM (INDUSTRY/BUSINESS) GURUS Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
  • 63. FOCUS COMPETITORS/SECTOR/INDUSTRY FUTURE (DISRUPTIVE/ IDEAL) BUS. MODEL BUSINESS/ GLOBAL VALUE CHAIN GIVEN BUS. 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 SYSTEM (INDUSTRY/BUSINESS) GURUS Market Segment (Customer Problem/Goal): ……………………….….… Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
  • 64. FOCUS STRATEGY: How must the business model get there? Where must business model go?BUSINESS/ GLOBAL VALUE CHAIN Where 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 SYSTEM (INDUSTRY/BUSINESS) GURUS Market Segment (Customer Problem/Goal): ……………………….….… Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
  • 65. 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. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
  • 66. FOCUS PROCESS: SWOT Analysis FUTURE (DISRUPTIVE/ IDEAL) BUS. MODEL BUSINESS/ GLOBAL VALUE CHAIN GIVEN BUS. 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 SYSTEM (INDUSTRY/BUSINESS) GURUS Market Segment (Customer Problem/Goal): ……………………….….… Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
  • 67. FOCUS “PIVOT” PROCESS: VALUE INNOVATION TACTICS (What if … E.R.I.C.?) FUTURE (DISRUPTIVE/ IDEAL) BUS. MODEL BUSINESS/ GLOBAL VALUE CHAIN GIVEN BUS. 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 SYSTEM (INDUSTRY/BUSINESS) GURUS Market Segment (Customer Problem/Goal): ……………………….….…
  • 68. FOCUS “PIVOT” PROCESS: VALUE INNOVATION TACTICS (What if … E.R.I.C.?) FUTURE (DISRUPTIVE/ IDEAL) BUS. MODEL BUSINESS/ GLOBAL VALUE CHAIN GIVEN BUS. 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: Quality Dissatisfiers: Cost/ Maintenance/Range/ Choice/Complexity Dissatisfiers: Cost Delighters/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 SYSTEM (INDUSTRY/BUSINESS) Market Segment (Customer Problem/Goal): Increase or Appropriately Reduce CUSTOMER VALUE QUOTIENT GURUS
  • 69. SYSTEM ADJACENT (PERIPHERAL/ALTERNATIVE) BUSINESS MODELS FUTURE (VISIONARY/ IDEAL) BUS. MODEL BUSINESS/ GLOBAL VALUE CHAIN PRESENT/CORE BUSINESS MODEL Adjacency 1: Adjacency 2: Adjacency 3: 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. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
  • 70. FOCUS SIX SIGMA PROCESS BUSINESS/ GLOBAL VALUE CHAIN C: Collect Info’ D: Define Problem M: Measure A: Analyze G: Generate I: Improve C: Control INPUT (SUPPLIERS/ MATERIALS/ENERGY) ELEMENTS (EMPLOYEES/ MACHINERY) PROCESS (Bus. Process/ Strategies) OUTPUTS: PRODUCT/SERVICE (Defects) RETAILERS/DISTRIB./ CHANNELS CONSUMERS/ CUSTOMERS (Experience) ENVIRONMENT - COMPETITORS (Industry) - PARTNERS (Complementors) - INVESTORS (Revenue/Cost) - PUBLIC/SOCIETY/Enemies - GOVERNMENT/NGOs Mission/Vision: …………………….…………………………………………………. SIX SIGMA-BUSINESS MODEL MATRIX Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models SYSTEM (INDUSTRY/BUSINESS) GURUS Market Segment (Customer Problem/Goal): ……………………….….… Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
  • 71. FOCUS CUSTOMER DEVELOPMENT-BUSINESS MODEL Expected vs. Actual Performance LEARNING: Findings/Insights/ Decisions/Actions BUSINESS/ GLOBAL VALUE CHAIN COMPANY VISION CUSTOMER DISCOVERY CUSTOMER VALIDATION CUSTOMER CREATION COMPANY BUILDING INPUT (SUPPLIERS/ MATERIALS/ENERGY) ELEMENTS (EMPLOYEES/ MACHINERY) PROCESS (Bus. Process/ Strategies) OUTPUTS: PRODUCT/SERVICE Minimum Product: Desirable/Viable/ Feasible Product-Market Fit: Prototype/ Pilot/No-frills Product-Solution Fit: Full Software/ Hardware More Fully Featured Product RETAILERS/DISTRIB./ CHANNELS CONSUMERS/ CUSTOMERS (Experience) Innovators Early Adopters (“Earlyvangelists”) Early Majority Late Majority/ Loyal ENVIRONMENT - COMPETITORS (Industry) - PARTNERS (Complementors) - INVESTORS (Revenue/Cost) - PUBLIC/SOCIETY/Enemies - GOVERNMENT/NGOs Mission/Vision: …………………….…………………………………………………. CUSTOMER DEVELOPMENT-BUSINESS MODEL (CDBM) MATRIX Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models SYSTEM (INDUSTRY/BUSINESS) GURUS Market Segment (Customer Problem/Goal): ……………………….….… Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
  • 72. ITEM FOCUS CUSTOMER DISCOVERY DASHBOARD STATEMENT/FORMULATION OF HYPOTHESES RESULT LEARNING: Findings/ Insights/ Decisions/ Actions BUSINESS/ GLOBAL VALUE CHAIN JOBS/GOALS/STATEMENTS/QUESTIONS/ASSUMPTIONS MEDIA/ METRICS/ CRITERIA Expected Perform- ance Actual Perform- ance S: SUPPLIERS E: EMPLOYEES/ KNOWLEDGE ASSETS/IP M: MACHINERY/EQUIP./ FACILITY/INFRASTRUCTURE P: PROCESSES O: OUTPUTS (PRODUCT/SERVICE) R: RETAILERS/DISTRIB./ CHANNELS C: CONSUMERS/ CUSTOMERS E: ENVIRONMENT/PUBLIC/ COMPETITORS/ INVESTORS/PARTNERS CUSTOMER DISCOVERY-BUSINESS MODEL Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models Mission/Vision: …………………….…………………………………………………. Market Segment (Customer Problem/Goal): ……………………….….… GURUS
  • 73. BUSINESS Upstream VALUE NETWORK (SUPPLY CHAIN OR “FOOD CHAIN”) Downstream TO FROM S: Suppliers E: Employees M: Machinery P: Processes O: Output R: Retailers/ Wholesalers/Distr. C: Customers E: Environment S: Suppliers E: Employees/ Knowledge Assets M: Machinery/ Facility/Infra’ P: Processes O: Outputs (Product/Service) R: Retailers/ Distributors/ Channels C: Consumers/ Customers E: Environment VALUE NETWORK (“SEMPORCE”) Customer Value Proposition (Job To Be Done): VALUE NETWORK-BUSINESS MODEL Collaboratively Design Oh My God-Visijon, Strategies, Products, Services, and Business Models GURUS Mission/Vision: …………………….…………………………………………………. Market Segment (Customer Problem/Goal): ……………………….….… Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
  • 74. PUBLISHER Upstream VALUE NETWORK (SUPPLY CHAIN OR “FOOD CHAIN”) Downstream TO FROM S: Suppliers E: Employees M: Machinery P: Processes O: Output R: Retailers/ Wholesalers/Distr. C: Customers E: Environment S: Suppliers E: Employees/ Knowledge Assets M: Machinery/ Facility/Infra’ P: Processes Print books Stock/pack books Det. allocations O: Outputs (Product/Service) Books Book inventory; Merchandise titles R: Retailers/ Distributors/ Channels Establish identity Ship books; Deliver orders; Dispose of returns C: Consumers/ Customers Create demand Articulate value Buy books E: Environment VALUE NETWORK (“SEMPORCE”) Customer Value Proposition (Job To Be Done): VALUE NETWORK-BUSINESS MODEL: Traditional Book Publisher 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. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
  • 75. CUSTOMER DEVELOPMENT FOR SCALABLE STARTUPS Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models Theme: ………………………………………………………………………………………… Date: …………………..….. CUSTOMER DEVELOPMENT FOR SCALABLE STARTUPS GENERIC ACTIVITIES FOR CORE & PERIPHERAL INDUSTRIES CUSTOMER DISCOVERY CUSTOMER VALIDA- TION CUSTOMER CREATION COM- PANY BUILD- ING WISDOMSOURCING CANVAS COLLABORATIVE PROBLEM SOLVING TASKS FOR PROCESS/INDUSTRY/BUSINESS MODEL/PRODUCT PROBLEM UNIVERSE: GLOBAL PROBLEM MAPPING Collect/Define/Measure/Verify Problems, Pains, and Trade-offs in System for Customer Segments/Personas Organize/Group/Analyze Problems, Pains, and Trade-offs Prioritize/Verify Big Urgent Market Pain (BUMP) GOAL UNIVERSE: GLOBAL GOAL & STRATEGY MAPPING Collect/Generate/Verify OMG-Goals, Objectives, Strategies, Tactics, Targets & Processes for Eliminating BUMP Organize/Group/Generate a Hierarchy of OMG-Goals, Objectives, Strategies, Tactics, Targets & Processes Prioritize/Verify OMG-Goals, Objectives, Strategies, Tactics, Targets & Processes and Synthesize into a Plan/Prototype EXECUTION UNIVERSE: GLOBAL STRATEGY EXECUTION Implement, Control, and Validate Plan/Prototype Reflecting OMG-Goals, Objectives, Strategies, Tactics, Targets & Processes Prepare Project Charter and Form Project Team with Diverse Members (Customers and Non-customers) Mission/Vision: …………………….…………………………………………………. GURUS Market Segment (Customer Problem/Goal): ……………………….….… Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
  • 76. CORE VALUES (Incentives/Penalties) STAKEHOLDER IMPACTS [Profit (Margin); Revenue /Cost ; Unit Price; Volume; Speed; Trade-off] GOALS, OBJECTIVES, STRATEGIES & TACTICS (PLAN) CUSTOMER PROBLEM (BIG URGENT MARKET PROBLEM: BUMP) RESOURCES (GLOBAL VALUE CHAIN)  S: Suppliers  E: Employees (Core Competencies)  M: Machinery/Equipment/Facility  P: Processes  O: Output (Product/Service)  R: Retailers/Distributors/Channels  C: Consumer/Customer Segments  E: Environment: Competitors, etc. COMPANY BLUEPRINT (Version X) MISSION/VISION CUSTOMER VALUE PROPOSITION GURUS Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
  • 77. (-): PAIN (+): DELIGHT Disruption Spot Luxury Spot Strategic Choice Resegmented/ Reframed/Low-cost Market Cost (Adoption Barrier; Complexity; Inaccessibility; Delay) Existing High end- Market Performance (Functionality; Quality) Key OMG-Experience: Undesirable Experience: GURUS Cost-Performance Map for ‘Market Types’ Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models Market Segment (Customer Problem/Goal): ……………………………………………………… Ideal Value Space (Ideal Market/ Ideal Impossibility/ Ideal Tool/ Ideal Universe/ Entirely New Market) Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
  • 78. (-): PAIN (+): DELIGHT Disruption Spot Luxury Spot Strategic Choice Key OMG-Experience: Undesirable Experience: CUSTOMER EXPERIENCE MAP: Template Collaboratively Collect, Organize, Prioritize, and Manage Vision, Strategies, Products, Services, and Business Models GURUS Market Segment (Customer Problem/Goal): ……………………………………………………… Ideal Value Space (Ideal Market/ Ideal Impossibility/ Ideal Tool/ Ideal Universe/ New Market) Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
  • 79. (-): PAIN (+): DELIGHT Disruption Spot Luxury Spot Strategic Choice Cost-Quality Map For Product/Service/Business Model Where Currently is the System?/Why? Where Must the System go?/Why? How Will the System Get There? Key OMG-Experience: Undesirable Experience: Quality (Performance) Cost (Price) GURUS Market Segment (Customer Problem/Goal): ……………………………………………………… Ideal Value Space (Ideal Market/ Ideal Impossibility/ Ideal Tool/ Ideal Universe/ New Market) Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
  • 80. (-): PAIN (+): DELIGHT Disruption Spot Luxury Spot Strategic Choice Cost-Differentiation Map Visually Describe, Analyze, and Manage Customer Experiences (in Space/Time) Key OMG-Experience: Undesirable Experience: Differentiation (Uniqueness) Cost Classic DIFFERENTIATION Strategy Classic COST LEADERSHIP Strategy GURUS Market Segment (Customer Problem/Goal): ……………………………………………………… “STUCK-IN-THE- MIDDLE” Strategy Ideal Value Space (Ideal Market/ Ideal Impossibility/ Ideal Tool/ Ideal Universe/ New Market) Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
  • 81. (-): PAIN (+): DELIGHT Disruption 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) Key OMG-Experience: Undesirable Experience: GURUS Cost-Performance Map Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models Market Segment (Customer Problem/Goal): ……………………………………………………… Ideal Value Space (Ideal Market/ Ideal Impossibility/ Ideal Tool/ Ideal Universe/ New Market Disruption) Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
  • 82. (-): PAIN (+): DELIGHT Disruption Spot Luxury Spot Strategic Choice Key OMG-Experience: Undesirable Experience: Differentiation (Uniqueness) Risk SCALE Differentiated Business Model STANDARDIZE Product/Service; OUTSOURCE ‘Peripherals’ TRANSFER Resources and EXIT INVENT Differentiated Product/Service GURUS Value Innovation Cycle Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models Market Segment (Customer Problem/Goal): ……………………………………………………… Ideal Value Space (Ideal Market/ Ideal Impossibility/ Ideal Tool/ Ideal Universe/ New Market) Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
  • 83. (-): PAIN (+): DELIGHT Disruption Spot Luxury Spot Strategic Choice Key OMG-Experience: Undesirable Experience: Differentiation (Uniqueness) Risk “PAPER” COMPANY (Luxury Spot) “ROCK” COMPANY (Sweet Spot) “SCISSORS” COMPANY (Disruption Spot) GURUS Growth vs. Competition Cycle Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models Market Segment (Customer Problem/Goal): ……………………………………………………… Ideal Value Space (Ideal Market/ Ideal Impossibility/ Ideal Tool/ Ideal Universe/ New Market) Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
  • 84. (-): PAIN (+): DELIGHT Disruption Spot Luxury Spot Strategic Choice Customer Intimacy DISCIPLINE Operational Excellence DISCIPLINE Quality of Experience (Performance) Cost Product Leadership DISCIPLINE Key OMG-Experience: Undesirable Experience: GURUS Value Discipline Map Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models Market Segment (Customer Problem/Goal): ……………………………………………………… Ideal Value Space (Ideal Market/ Ideal Impossibility/ Ideal Tool/ Ideal Universe/ New Market) Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
  • 85. (-): PAIN (+): DELIGHT Disruption Spot Luxury Spot Strategic Choice Defect (Error; Waste; Delay; Complaint; Deviation from ‘Standard’; Delivery Time; Complexity) Process Speed (Agility; Flow; Efficiency; Effectiveness) Lean-Six Sigma METHODOLOGY Six Sigma METHODOLOGY Lean Manufacturing METHODOLOGY GURUS Market Segment (Customer Problem/Goal): ……………………………………………………… Key OMG-Experience: Undesirable Experience: Ideal Value Space (Ideal Market/ Ideal Impossibility/ Ideal Tool/ Ideal Universe/ New Market) Lean-Six Sigma Map Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
  • 86. (-): PAIN (+): DELIGHT Disruption Spot Luxury Spot Strategic Choice Novelty of Meaning (Interaction; Job; Utility; Want; Language; Style; Differentiation) Technology Obsolescence (Maturity; Cycle; Evolution) Game-changing MEANING/TOOL (Paradigm Shift) Emergent MEANING/TOOL Generic MEANING/TOOL (Existing Paradigm) Stretch MEANING/TOOL Disruptive MEANING/TOOL GURUS Market Segment (Customer Problem/Goal): ……………………………………………………… Key OMG-Experience: Undesirable Experience: Ideal Value Space (Ideal Market/ Ideal Impossibility/ Ideal Tool/ Ideal Universe/ New Market) Meaning-driven Innovation Map Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
  • 87. (-): PAIN [HARMFUL EFFECT] (+): DELIGHT [USEFUL EFFECT] Disruption Spot Luxury Spot Strategic Choice Undesirable Parameter (Cost; Size; Weight; Time; Defect; Rigidity; Quantity; Material; Complexity; Resource) TRIZ Design (Win-Win) Strategy Value Innovation Conventional Design (Win-Lose) Strategy Thinking-in-the-box Optimization Design (Win-Neutral) Strategy Optimization Disruptive Design (‘Good Enough’) Strategy Disruptive Innovation Desirable Parameter (Performance; Strength; Power; Reliability Quality; Accuracy; Speed; Content; Versatility) GURUS Market Segment (Customer Problem/Goal): ……………………………………………………… Key OMG-Experience: Undesirable Experience: Ideal Value Space (Ideal Market/ Ideal Impossibility/ Ideal Tool/ Ideal Universe/ New Market) Technical Innovation Map Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
  • 88. (-): PAIN (+): DELIGHT Disruption Spot Luxury Spot Strategic Choice Cash Cow Star Market Growth Rate Commoditization (1 – Market Share) Dog Question Mark Key OMG-Experience: Undesirable Experience: GURUS Market Segment (Customer Problem/Goal): ……………………………………………………… Product Portfolio Map Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models Ideal Value Space (Ideal Market/ Ideal Impossibility/ Ideal Tool/ Ideal Universe/ New Market) Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
  • 89. (-): PAIN (+): DELIGHT Disruption Spot Luxury Spot Strategic Choice Key OMG-Experience: Undesirable Experience: GURUS Sweet SpotBlue Ocean (“Practical Impossibility”) Luxury Spot Disruption Spot VolcanoOasis Green Ocean Red OceanNo Man’s Island CUSTOMER EXPERIENCE MAP: Descriptions Collaboratively Collect, Organize, Prioritize, and Manage Vision, Strategies, Products, Services, and Business Models 3 10 6 3 6 10 Ideal Value Space (Ideal Market/ Ideal Impossibility/ Ideal Tool/ Ideal Universe/ New Market) Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
  • 90. (-): PAIN (+): DELIGHT Disruption Spot Luxury Spot Strategic Choice Big Urgent Market Pain (BUMP) BUMP MAP Collaboratively Discover or Identify Big Urgent Market Pain (BUMP) Urgency (Need/Importance) of Solution Size or Pervasiveness of Pain (Number of ‘Victims’ or Customers & Non-customers) GURUS List of Stakeholders Market Segment (Customer Problem/Goal): ……………………………………………………… Little Urgent Market Pain (LUMP) Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
  • 91. (-): PAIN (+): DELIGHT 2 Emotional Delight (Branding/Differentiation; Customization) Intellectual Pain (Complexity; Cost Inaccessibility; Processing Time) (+): DELIGHT 1 Physical Delight (Functionality; Quality; Performance) Future Market Space Existing Market SpaceKey OMG-Experience: Undesirable Experience: GURUS Market (Customer Problem/Goal): …………………………………………… Customer Value Cube Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
  • 92. (-): PAIN 2 (+): DELIGHT 2 Value (Quality; Differentiation) Waste (Cost; Time; Defect) Lean Startup (-): DELIGHT 1 Performance (Functionality) Future Market Space Existing Market SpaceKey OMG-Experience: Undesirable Experience: GURUS Market (Customer Problem/Goal): Lean Customer Development LEAN STARTUP Cube Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
  • 93. 0 2 4 6 8 10 0 2 4 6 8 10 DELIGHT PAIN Customer Value Quotient (VEQ) = Weighted Delight/Weighted Pain = Utility Function = Slope of Customer Experience Curve Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing TRADE-OFF GRAPH: Template Visually Describe, Analyze, and Manage Customer Experiences & Trade-offs Desirable Experience Undesirable Experience GURUS Zero Trade-off (Ideal Tool/New Market Disruption/Singularity) Market Segment (Customer Problem/Goal): ………………………………………………………………………..…
  • 94. 0 2 4 6 8 10 0 2 4 6 8 10 DELIGHT ( Differentiation; Quality) PAIN (Cost) Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing Classic Competitive Strategies Graph Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models CONVENTIONAL THINKING (“Higher quality, higher cost”) “Stuck in the Middle” Classic Differentiation (“Short head”/ “20-80”/ High Profit Margin) Classic Cost Leadership (“Long Tail”/ Low Profit Margin) Desirable Experience Undesirable Experience GURUS Zero Trade-off (Ideal Tool/New Market Disruption/Singularity) Market Segment (Customer Problem/Goal): Competitive Advantage Customer Value Quotient (CVQ) = Weighted Delight/Weighted Pain = Utility Function = Slope of Customer Experience Curve
  • 95. 0 2 4 6 8 10 0 2 4 6 8 10 DELIGHT ( Knowledge; Quantity) PAIN (Cost; Price) Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing Knowledge Advantage Graph Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models DEMAND CURVE (When price decreases, demand increases) KNOWLEDGE ADVANTAGE CURVE (‘Long-term Demand Curve’) GURUS Market Segment (Customer Problem/Goal): ………………………………………………………………………..… Zero Trade-off (Ideal Tool/New Market Disruption/Singularity) Customer Value Quotient (VVQ) = Weighted Delight/Weighted Pain = Utility Function = Slope of Customer Experience Curve
  • 96. 0 2 4 6 8 10 0 2 4 6 8 10 DELIGHT (Quantity) PAIN (Price) Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing Price-Quantity (Demand & Supply) Graph Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models DEMAND CURVE (When price decreases, consumer increases demand) SUPPLY CURVE (When price increases, supplier increases quantity) Market Segment (Customer Problem/Goal): ………………………………………………………………………..… Zero Trade-off (Ideal Tool/New Market Disruption/Singularity) GURUS Customer Value Quotient (VVQ) = Weighted Delight/Weighted Pain = Utility Function = Slope of Customer Experience Curve
  • 97. 0 2 4 6 8 10 0 2 4 6 8 10 Illustrating Moore’s Law as an Instance of Evolution Towards ‘Zero Trade-off’ DELIGHT (Transistors) PAIN (Size) CEQ = 8/1= 8 Customer Experience Quotient (CEQ) = Weighted Delight/Weighted Pain Function of (Transistors/Size) = Slope of Customer Experience Curve CEQ = 4/1= 4 CEQ = 2/1= 2 Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing Moore’s Law Graph Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models Market (Customer Goal): Integrated Circuit Board GURUS Zero Trade-off (Ideal Tool/New Market Disruption/Singularity)
  • 98. 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. rodkuhnking@sbcglobal.net & 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) GURUS BLUE OCEAN-BUSINESS MODEL Collaboratively Expand Market and Become Uncontested Leader in Emerging Fast-growing Industry
  • 99. 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. rodkuhnking@sbcglobal.net & 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) GURUS DISRUPTION SPOT-BUSINESS MODEL Collaboratively Expand Market and Become Uncontested Leader in Emerging Fast-growing Industry
  • 100. 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. rodkuhnking@sbcglobal.net & 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) GURUS LUXURY SPOT-BUSINESS MODEL Collaboratively Expand Market and Become Uncontested Leader in Existing Fast-growing Industry
  • 101. IMPACTS SYSTEM VOICE OF THE CUSTOMER IN CORE & PERIPHERAL INDUSTRIES CUSTOMER DELIGHT (+) CUSTOMER PAIN (-) Selection Criteria: Needs & Barriers COMPETITORS Function/ Content/ Perf./ Knowledge Quality/ Reliability/ Accuracy/ Efficiency Brand/ Emotion/ Style/Aura/ Prestige Customization/ Personalization/ Interactivity/ Entertainment Cost (Price) Inaccessibility/ Unavailability/ Inflexibility/ Friction/Scale Complexity/ Difficulty/ Support/ Range/Risk Process Time/ Delay/ Age WEIGHT (IMPORTANCE) Given Business/ Product: CORE COMPETITORS (Core Industry) PERIPHERAL COMPETITORS (Peripheral Ind.) REMOTE COMPETITORS (Remote Ind.) Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing Mission/Vision: …………………….…………………………………………………. GURUS Market Segment (Customer Problem/Goal): ……………………….….… CUSTOMER EXPERIENCE OF COMPETITORS Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models
  • 102. IMPACTS SYSTEM VOICE OF THE CUSTOMER IN CORE & PERIPHERAL INDUSTRIES CUSTOMER DELIGHT (+) CUSTOMER PAIN (-) Selection Criteria: Needs & Barriers CURVES Function/ Content/ Perf./ Knowledge Quality/ Reliability/ Accuracy/ Efficiency Brand/ Emotion/ Style/Aura/ Prestige Customization/ Personalization/ Interactivity/ Entertainment Cost (Price) Inaccessibility/ Unavailability/ Inflexibility/ Friction/Scale Complexity/ Difficulty/ Support/ Range/Risk Process Time/ Delay/ Age WEIGHT (IMPORTANCE) Given Business/ Product: CUSTOMER EXPERIENCE CURVES 10 8 6 4 2 0 Mission/Vision: …………………….…………………………………………………. Key -> 1: Low level; 10: Extraordinary level of experience Customer Value Quotient (CVQ) = Weighted Delight/Weighted Pain CUSTOMER EXPERIENCE CURVES Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business ModelsGURUS Market Segment (Customer Problem/Goal): ……………………….….…
  • 103. Mission/Vision: …………………….…………………………………………………. IMPACTS SYSTEM VOICE OF THE CUSTOMER IN CORE & PERIPHERAL INDUSTRIES CUSTOMER DELIGHT (+) CUSTOMER PAIN (-) Selection Criteria: Needs & Barriers TACTICS Function/ Content/ Perf./ Knowledge Quality/ Reliability/ Accuracy/ Efficiency Brand/ Emotion/ Style/Aura/ Prestige Customization/ Personalization/ Interactivity/ Fun/Entertain. Cost (Price/ Weight/ Material) Inaccessibility/ Unavailability/ Inflexibility/ Friction/Scale Complexity/ Difficulty/ Support/Risk Range/Shape Process Time/ Delay/ Age WEIGHT (IMPORTANCE) Av. Competitor: Chief Competitor: Given Business/ Product: E: Eliminate R: Reduce I: Increase C: Create CUSTOMER EXPERIENCE TACTICS Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business ModelsGURUS Market Segment (Customer Problem/Goal): ……………………….….… Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
  • 104. Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing GURUS 4 VALUE INNOVATION SUPERHEROES (ARCHETYPAL THINKING ROLES) FOR TARGETED OBJECTS/RESOURCES: System, Elements, Attributes, Processes & Supersystem/Industry/Environment 4 VALUE INNOVATION SUPERHEROES FOR THE BLUE OCEAN STARTUP E: ELIMINATOR Has the Power to  Remove totally  Skip  Discard  Destroy  Introduce Zero/Void/Vacuum Has all tools and gadgets for ELIMINATING objects R: REDUCER Has the Power to  Remove partially; Streamline  Trim; Prune; Downsize; Make Lean  Minify; Miniaturize  Separate; Standardize; Replace  Divide; Segment Has all tools and gadgets for REDUCING objects C: CREATOR: Has the Power to  Make (a)symmetrical/opposite  Reverses Combine; Integrate  Replace; Universalize  Create Fields/Forces/Feedback  Substitute; Transform; Restructure  Use Another Dimension  Hybridize/Bisociate Has all tools and gadgets for CREATING objects I: INCREASER Has the Power to  Add; Multiply; Magnify; Mutate  Merge; Nest  Introduce Interface; Cushion;  Stretch; Extend  Diversify  Use Additional Components Has all tools and gadgets for INCREASING objects
  • 105. 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. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing WISDOMSOURCING MAPS FOR THE BLUE OCEAN STARTUP Visually Facilitate Collaboration, Ideas Management, Creativity, and Customer Problem Solving
  • 106. GURUS Horizontal Wisdomsourcing Map Vertical Wisdomsourcing Map Pain-Delight Wisdomsourcing Map Classic Family of Wisdomsourcing Maps: Parent and 8 Children Parent (Child: Mini-Wisdomsourcing Map) Collect Ideas: Flexibly & Efficiently List/Brainstorm/ Document/Storyboard Ideas in Cluster Organize Ideas: Outline/Deconstruct; Classify/Collate/ Analyze/Synthesize Ideas in Cluster Prioritize Ideas: Rate/Rank/Sort/Classify/Compare/ “Analogize”/“Bisociate” Ideas in Cluster Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing CLASSIC WISDOMSOURCING MAPS Family of Fractal Idea Organizers for Collaborative Creativity, Problem-solving, Decision-making, and Learning
  • 107. THE INFINITE WISDOMSOURCING MAP Collaboratively and Fractally Organize All Information in the Universe: Past, Present, and Future GURUS Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing Level 0 Mini-Wisdomsourcing Map (Building Block, Atom, Seed, or Screen) Super Wisdomsourcing Map: 3x3 Classic Wisdomsourcing Map Level 1 Level 2 Classic Wisdomsourcing Map: 3x3 Mini-Wisdomsourcing Map
  • 108. GURUS Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing CLASSIC HORIZONTAL MAP Theme/Topic: …………………………………….……………………………………..…… Date: …………………..…..
  • 109. ITENN GURUS Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing CLASSIC VERTICAL MAP Theme/Topic: …………………………………….……………………………………..…… Date: …………………..…..
  • 110. (-): PAIN (+): DELIGHT Disruption Spot Luxury Spot Strategic Choice Key OMG-Experience: Undesirable Experience: GURUS Market Segment (Customer Problem/Goal): ……………………………………………………… Ideal Value Space (Ideal Market/ Ideal Impossibility/ Ideal Tool/ Ideal Universe/ New Market) Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing CLASSIC PAIN-DELIGHT MAP Theme/Topic: …………………………………….……………………………………..…… Date: …………………..…..
  • 111. ABOUT THE INVENTOR/AUTHOR GURUS Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
  • 112. 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 and International patent-pending, can be used for visually organizing and Prioritizing massive amounts of information such as in search engines, social networks, and other 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 Wisdomsourcing Group, an online Global Think Tank for collaboratively improving customer experiences and resolving tough dilemmas Organizer & Coordinator of Wisdom- sourcing survey involving over 200 professionals from over 30 countries CONTACT Dr. Rod King: California, USA Cell: (559) 248-6230 rodkuhnking@sbcglobal.net http://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 for multi-disciplinary projects Dr. Rod King Visual 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
  • 113. Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & 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 Problem Solving • ‘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 WISDOMSOURCING 3. CROWDSOURCING 2. 1. BRAINSTORMING EVOLUTION OF WISDOMSOURCINGGURUS
  • 114. Got Business Model Problems? Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
  • 115. Send an E-mail To, at least, 10 Colleagues Telling Them About This FREE & INTERACTIVE One-stop Toolkit: “Business Model Development for Blue Ocean Startups” Note: This offer is for LIMITED TIME ONLY!!! Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing

Notas do Editor

  1. BIBLIOGRAPHY Anderson, C. (2009) Free. New York: Hyperion. Anderson, C. (2006) The Long Tail. New York: Hyperion. Bicheno, J. (2000) The Lean Toolbox. Buckingham: Moreton Press. Christensen, C. (2003) The Innovator’s Dilemma. Boston: Harvard Business School (HBS) Press. George, M.L.; Rowlands, D.; Price, M.; Maxey, J. (2005) Lean Six Sigma Pocket Toolbook. New York: McGraw-Hill (Kano Analysis, pp. 64-68). Hammond, J.S.; Keeney, R.L.; Raiffa, H. (1999) Smart Choices. Boston: Harvard Business School (HBS) Press. Keiningham, T.; Vavra, T. (2001) The Customer Delight Principle. New York: McGraw-Hill. Kiechel, W. (2010) The Lords of Strategy. Boston: Harvard Business School (HBS) Press. Kurzweil, R. (2005) The Singularity is Near. New York: Viking. Maney, K. (2009) Trade-off. New York: Broadway Books. Mullins, J.; Komisar, R. (2009) Getting to Plan B. Boston: Harvard Business School (HBS) Press. Silverstein, D.; Samuel, P.; DeCarlo, N. (2009) The Innovator’s Toolkit. New Jersey: John Wiley & Sons, Inc. Wikipedia. Pleasure Principle. http://en.wikipedia.org/wiki/Pleasure_principle_(psychology) Wikipedia. TRIZ. http://en.wikipedia.org/wiki/TRIZ
  2. BIBLIOGRAPHY Christensen, C. (2003) The Innovator’s Dilemma. Boston: Harvard Business School (HBS) Press. Christensen, C. (2003) The Innovator’s Solution. Boston: Harvard Business School (HBS) Press. Keiningham, T.; Vavra, T. (2001) The Customer Delight Principle. New York: McGraw-Hill. Kim, W. C.; Mauborgne, R. (2005) Blue Ocean Strategy. Boston: Harvard Business School (HBS) Press. Silverstein, D.; Samuel, P.; DeCarlo, N. (2009) The Innovator’s Toolkit. New Jersey: John Wiley & Sons, Inc. Wikipedia. Pleasure Principle. http://en.wikipedia.org/wiki/Pleasure_principle_(psychology) Wikipedia. TRIZ. http://en.wikipedia.org/wiki/TRIZ
  3. BIBLIOGRAPHY Barwise, P.; Meehan, S. (2004) Simply Better. Boston: Harvard Business School (HBS) Press. Christensen, C. (2003) The Innovator’s Dilemma. Boston: Harvard Business School (HBS) Press. Collins, J.; Porras, J. (2004) Built to Last. New York: HarperBusiness. George, M.L.; Rowlands, D.; Price, M.; Maxey, J. (2005) Lean Six Sigma Pocket Toolbook. New York: McGraw-Hill (Kano Analysis, pp. 64-68). Johnson, M.W. (2010) Seizing the White Space. Boston: Harvard Business School (HBS) Press. Kaplan, R.S.; Norton, D.P. (1998) The Balanced Scorecard. Boston: Harvard Business School (HBS) Press. Kaplan, R.S.; Norton, D.P. (2008) The Execution Premium. Boston: Harvard Business School (HBS) Press. Kim, W. C.; Mauborgne, R. (2005) Blue Ocean Strategy. Boston: Harvard Business School (HBS) Press. Markides, C.C. (2008) Game-changing Strategies. San Francisco: Jossey-Bass. McGrath, R.G.; McMillan, I. (2009) Discovery-Driven Growth. Boston: Harvard Business School (HBS) Press. Porter, M.E. (1998) Competitive Advantage. New York: The Free Press. Porter, M.E. (1998) Competitive Strategy. New York: The Free Press. Porter, M.E. (2008) On Competition. Boston: Harvard Business School (HBS) Press. Zook, C. (2004) Beyond the Core. Boston: Harvard Business School (HBS) Press.
  4. BIBLIOGRAPHY Koch, R. (2010) The Star Principle. London: Piatkus. Koch, R.; Nieuwenhuizen, P. (2006) Simply Strategy. Harlow: Pearson Education Limited.
  5. BIBLIOGRAPHY Barwise, P.; Meehan, S. (2004) Simply Better. Boston: Harvard Business School (HBS) Press. Christensen, C. (2003) The Innovator’s Dilemma. Boston: Harvard Business School (HBS) Press. Collins, J.; Porras, J. (2004) Built to Last. New York: HarperBusiness. George, M.L.; Rowlands, D.; Price, M.; Maxey, J. (2005) Lean Six Sigma Pocket Toolbook. New York: McGraw-Hill (Kano Analysis, pp. 64-68). Johnson, M.W. (2010) Seizing the White Space. Boston: Harvard Business School (HBS) Press. Kaplan, R.S.; Norton, D.P. (1998) The Balanced Scorecard. Boston: Harvard Business School (HBS) Press. Kaplan, R.S.; Norton, D.P. (2008) The Execution Premium. Boston: Harvard Business School (HBS) Press. Kim, W. C.; Mauborgne, R. (2005) Blue Ocean Strategy. Boston: Harvard Business School (HBS) Press. Markides, C.C. (2008) Game-changing Strategies. San Francisco: Jossey-Bass. McGrath, R.G.; McMillan, I. (2009) Discovery-Driven Growth. Boston: Harvard Business School (HBS) Press. Porter, M.E. (1998) Competitive Advantage. New York: The Free Press. Porter, M.E. (1998) Competitive Strategy. New York: The Free Press. Porter, M.E. (2008) On Competition. Boston: Harvard Business School (HBS) Press. Zook, C. (2004) Beyond the Core. Boston: Harvard Business School (HBS) Press.
  6. BIBLIOGRAPHY Blank, S.G. (2007) The Four Steps to the Epiphany. USA. http://en.wikipedia.org/wiki/Lean_Startup Lean Startup Howe, J. (2008) Crowdsourcing. New York: Crown Business. Johnson, M.W. (2010) Seizing the White Space. Boston: Harvard Business Review. Kim, W.C.; Mauborgne, R. (2003) Blue Ocean Strategy. Boston: Harvard Business Review. Liker, S.J. (2004) The Toyota Way. New York: McGraw-Hill. McGrath, J.K.; McMillan, I.C. (2009) Discovery-driven Growth. Boston: Harvard Business Review. Mullins, J.; Komisar, R. (2009) Getting to Plan B. Boston: Harvard Business School (HBS) Press. Osterwalder, A.; Pigneur, Y. (2009) Business Model Generation. Amsterdam. Pascale, R.; Sternin, J.; Sternin, M. (2010) The Power of Positive Deviance. Boston: Harvard Business Review. Pietersen, W. (2010) Strategic Learning. New Jersey: John Wiley & Sons. Sharma, A.; Moody, P.E. (2001) The Perfect Engine. New York: The Free Press. Spear, S.J. (2009) The High-velocity Edge. New York: McGraw-Hill. Womack, J.P.; Jones, D.T. (2003) Lean Thinking. New York: Free Press.
  7. BIBLIOGRAPHY Blank, S.G. (2007) The Four Steps to the Epiphany. USA.
  8. BIBLIOGRAPHY Blank, S.G. (2007) The Four Steps to the Epiphany. USA.
  9. BIBLIOGRAPHY King, R., “Darwin and Creativity” in Greenfield, T. (Ed.) (2002) Research Methods for Postgraduates. London: Arnold Publishers, pp. 115-121.
  10. BIBLIOGRAPHY King, R., “Darwin and Creativity” in Greenfield, T. (Ed.) (2002) Research Methods for Postgraduates. London: Arnold Publishers, pp. 115-121.
  11. BIBLIOGRAPHY Anthony, S.D.; Johnson, M.W.; Sinfield, J.V.; Altman, E.J. (2008) The Innovator’s Guide to Growth. Boston: Harvard Business School (HBS) Press. Bettencourt, L.A. (2010) Service Innovation. New York: McGraw-Hill. Christensen, C. (2003) The Innovator’s Dilemma. Boston: Harvard Business School (HBS) Press. Silverstein, D.; Samuel, P.; DeCarlo, N. (2009) The Innovator’s Toolkit. New Jersey: John Wiley & Sons, Inc.
  12. BIBLIOGRAPHY Osterwalder, A.; Pigneur, Y. (2009) Business Model Generation. Amsterdam.
  13. BIBLIOGRAPHY Osterwalder, A.; Pigneur, Y. (2009) Business Model Generation. Amsterdam.
  14. BIBLIOGRAPHY Barnes, D. (Ed.) (2001) Understanding Business. London: Routledge. Bradenburger, A.M.; Nalebuff, B.J. (2009) Co-opetition. Boston: Harvard Business School (HBS) Press. Bradenburger, A.M.; Nalebuff, B.J. (2009) The Right Game. Boston: Harvard Business School (HBS) Press. Christensen, C. (2003) The Innovator’s Dilemma. Boston: Harvard Business School (HBS) Press. Christensen, C. (2003) The Innovator’s Solution. Boston: Harvard Business School (HBS) Press. Iansiti, M.; Levien, R. (2004) The Keystone Advantage. Boston: Harvard Business School (HBS) Press. Kaplan, R.S.; Norton, D.P. (1998) The Balanced Scorecard. Boston: Harvard Business School (HBS) Press. Kaplan, R.S.; Norton, D.P. (2004) Strategy Maps. Boston: Harvard Business School (HBS) Press. Kaplan, R.S.; Norton, D.P. (2008) The Execution Premium. Boston: Harvard Business School (HBS) Press. McGrath, R.G.; MacMillan, I.C. (2005) Marketbusters. Boston: Harvard Business School (HBS) Press. Osterwalder, A.; Pigneur, Y. (2009) Business Model Generation. Amsterdam. Parolini, C. (1999) The Value Net. West Sussex: John Wiley & Sons. Penn, M.J.; Zalesne, E.K. (2007) Microtrends. New York: Twelve. Porter, M.E. (1998) Competitive Advantage. New York: The Free Press. Porter, M.E. (1998) Competitive Strategy. New York: The Free Press. Porter, M.E. (2008) On Competition. Boston: Harvard Business School (HBS) Press. Wikipedia. Pleasure Principle. http://en.wikipedia.org/wiki/Pleasure_principle_(psychology) Wikipedia. TRIZ. http://en.wikipedia.org/wiki/TRIZ
  15. BIBLIOGRAPHY Barnes, D. (Ed.) (2001) Understanding Business. London: Routledge. Bradenburger, A.M.; Nalebuff, B.J. (2009) Co-opetition. Boston: Harvard Business School (HBS) Press. Bradenburger, A.M.; Nalebuff, B.J. (2009) The Right Game. Boston: Harvard Business School (HBS) Press. Christensen, C. (2003) The Innovator’s Dilemma. Boston: Harvard Business School (HBS) Press. Christensen, C. (2003) The Innovator’s Solution. Boston: Harvard Business School (HBS) Press. Iansiti, M.; Levien, R. (2004) The Keystone Advantage. Boston: Harvard Business School (HBS) Press. Kaplan, R.S.; Norton, D.P. (1998) The Balanced Scorecard. Boston: Harvard Business School (HBS) Press. Kaplan, R.S.; Norton, D.P. (2004) Strategy Maps. Boston: Harvard Business School (HBS) Press. Kaplan, R.S.; Norton, D.P. (2008) The Execution Premium. Boston: Harvard Business School (HBS) Press. McGrath, R.G.; MacMillan, I.C. (2005) Marketbusters. Boston: Harvard Business School (HBS) Press. Osterwalder, A.; Pigneur, Y. (2009) Business Model Generation. Amsterdam. Parolini, C. (1999) The Value Net. West Sussex: John Wiley & Sons. Penn, M.J.; Zalesne, E.K. (2007) Microtrends. New York: Twelve. Porter, M.E. (1998) Competitive Advantage. New York: The Free Press. Porter, M.E. (1998) Competitive Strategy. New York: The Free Press. Porter, M.E. (2008) On Competition. Boston: Harvard Business School (HBS) Press. Wikipedia. Pleasure Principle. http://en.wikipedia.org/wiki/Pleasure_principle_(psychology) Wikipedia. TRIZ. http://en.wikipedia.org/wiki/TRIZ
  16. BIBLIOGRAPHY Barnes, D. (Ed.) (2001) Understanding Business. London: Routledge. Bradenburger, A.M.; Nalebuff, B.J. (2009) Co-opetition. Boston: Harvard Business School (HBS) Press. Bradenburger, A.M.; Nalebuff, B.J. (2009) The Right Game. Boston: Harvard Business School (HBS) Press. Christensen, C. (2003) The Innovator’s Dilemma. Boston: Harvard Business School (HBS) Press. Christensen, C. (2003) The Innovator’s Solution. Boston: Harvard Business School (HBS) Press. Iansiti, M.; Levien, R. (2004) The Keystone Advantage. Boston: Harvard Business School (HBS) Press. Kaplan, R.S.; Norton, D.P. (1998) The Balanced Scorecard. Boston: Harvard Business School (HBS) Press. Kaplan, R.S.; Norton, D.P. (2004) Strategy Maps. Boston: Harvard Business School (HBS) Press. Kaplan, R.S.; Norton, D.P. (2008) The Execution Premium. Boston: Harvard Business School (HBS) Press. Parolini, C. (1999) The Value Net. West Sussex: John Wiley & Sons. Penn, M.J.; Zalesne, E.K. (2007) Microtrends. New York: Twelve. Porter, M.E. (1998) Competitive Advantage. New York: The Free Press. Porter, M.E. (1998) Competitive Strategy. New York: The Free Press. Porter, M.E. (2008) On Competition. Boston: Harvard Business School (HBS) Press. Wikipedia. Pleasure Principle. http://en.wikipedia.org/wiki/Pleasure_principle_(psychology) Wikipedia. TRIZ. http://en.wikipedia.org/wiki/TRIZ
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