BUSINESS MODEL DEVELOPMENT FOR BLUE OCEAN STARTUPS

BUSINESS MODEL DEVELOPMENTFOR BLUE OCEAN STARTUPS

A One-stop Toolkit for Discovering, Validating, and Managing Your Business Model

Dr. Rod Kuhn KingVisual Problem Solver, Inventor, and Magician

NEW

http://www.fundraw.com/clipart/images/00004327




Copyright 2010. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing

Business Model Development (BMD)Involves a

Visual Integration of

Best Practice MethodologiesIncluding

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

mailto:[email protected]

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

Scalable Startups





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

Scalable Startups





The Paradigm ofBusiness Model Development (BMD)

Assumes That BusinessesShould Be Conceived, Launched, and Managed

Like in Successful Magic Theater:

Customers Should Be Put FirstIn 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

ADVANTAGESOF

BUSINESS MODEL DEVELOPMENT (BMD)

FOR BLUE OCEAN STARTUPS

SCALABLE AND FRACTAL TOOLS

“FUNNER” TO USE

ADVANTAGES OF BUSINESS MODEL DEVELOPMENTFOR BLUE OCEAN STARTUPS

GURUS






(-): PAIN

(+): DELIGHTDisruption Spot

Luxury Spot

Strategic Choice

KeyOMG-Experience:

Undesirable Experience:

Profit Margin

No. of Direct Competitors(Level of Commoditization)

Blue Ocean(“Practical Impossibility”)

Luxury Spot

Disruption Spot

Green Ocean Red Ocean

JOURNEY OF

THE BLUE OCEAN STARTUP

3

100%

6

10%

20%

10 (Global)

BLUE

OCE

AN ST

ARTU

P





http://www.facebook.com/home.php?ref=logo

(-): PAIN

(+): DELIGHT 2

Profit Margin

Direct Competitors (Commoditization)

(+): DELIGHT 1

Industry Attractiveness(Market Growth)

NewMarketSpace

ExistingMarketSpaceKey

OMG-Experience:


GURUS

Market (Customer Problem/Goal): ……………………………………………

BLUE OCEAN STARTUP Cube Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models







CUSTOMER CREATION PYRAMID FORTHE BLUE OCEAN STARTUP


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- CUSTOMERSo Profitableo Break-eveno Unprofitable

Oh My God-Product/Service

Why?How?

Why?How?

MARKET OPPORTUNITY SPACE

(LATENT DEMAND/CUSTOMERS)

UNTAPPED CUSTOMERS

SWITCHERSIM

PROVE

Customer E

xperience

BLUE OCEAN ST

ARTUP

Why?How?

CREATE (Integrate/D

emonstrate)

Oh My God-Experie

ncesINDIRECT 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 OFOH 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 OFOH MY GOD (OMG)-PRODUCT






ARCHETYPAL STRATEGIES FOR DESIGNING OH MY GOD (OMG)-PRODUCTSGURUS

ARCHETYPALSTRATEGIES

Existing Market (Segment) (Compete on Existing Dimensions of Customer Experience: Cost vs. Value or Diff.)

“Luxury Spot” Business Model: High Differentiation & High Cost Strategy

“Disruption Spot” Business Model: Low Cost or Disruptive Innovation Strategy

“Practical Impossibility” Business Model: Emerging Blue Ocean Strategy

“Sweet Spot” Business Model: High Differentiation & Moderate Cost Strategy

New Market (Universe) (Compete on New Dimensions of Customer Experience: Pain vs. Delight)

“New Market” Business Model: Ideal Market Disruption Strategy/ Ideal Blue Ocean Strategy/ Ideal Market Strategy

Zooming-inMarket Strategies

Zooming-outMarket Strategy







GURUS

PROBLEM-SOLUTIONMAP

PROBLEM-SOLUTION MAP

Visually Facilitate Collaboration, Ideas Management, Creativity, and Customer Problem Solving

PROBLEM SOLUTION






“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






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





ITENN BUSINESS MODEL PROBLEM & DISCOVERY

What’s the evidence?

GURUS


BUSINESS MODEL PROBLEM & DISCOVERY






ITENN BUSINESS MODEL VALIDATION


GURUS


BUSINESS MODEL VALIDATION






ITENN BUSINESS MODEL EXECUTION


GURUS


BUSINESS MODEL EXECUTION






ITENN BUSINESS MODEL MANAGEMENT


GURUS


BUSINESS MODEL MANAGEMENT







GURUS

THE 2 WORLDS OFBUSINESS MODEL

DEVELOPMENT

THE 2 WORLDS OF BUSINESS MODEL DEVELOPMENT

BUSINESS MODEL PROBLEM & DISCOVERY



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 CANVASTheme:

WISDOMSOURCING CANVAS A Zoomable Jigsaw Puzzle for Collaboratively Solving Problems and Presenting Solutions

Date: ……………………..……










BUS. MODEL DEVELOPMENT FOR THE BLUE OCEAN STARTUPCollaboratively 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 FORPROCESS/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): ……………………….….…









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






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





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







The Methodology ofBusiness Model Development (BMD)

Seamlessly IntegratesMajor Breakthrough Ideas and Tools

In Customer Development, Collaboration, Business Creativity,

Strategy, Innovation, and Performance Management

Over the Last 50 Years





Business Model Development (BMD)Helps to Reduce

the Risk of Failure of BusinessesEspecially Scalable Startups

By Facilitatingthe Discovery, Validation, Execution,

and Management ofBusiness Models





Business Model Development (BMD)Also Helps Individuals and Teams

To DeployAny Business Process or Methodology

In aSimpler, 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






WHY?

HOW MANY? HOW MUCH?

WHAT (JOBS)?

HOW?

WHAT NEXT?

WHERE?

CUSTOMER JOBS TO BE DONE (JBTD)


WHEN?

WHO?

CUSTOMER JOBS TO BE DONE (JBTD)


GURUS






ITENN COMPETITORS’PRODUCTS/SERVICES


GURUS


COMPETITORS’ PRODUCTS/SERVICES






WHY?

HOW MANY? HOW MUCH?

WHAT (PROBLEMS)?

HOW?

WHAT NEXT?

WHERE?

COMPETITORS’ PROBLEMS: Weaknesses

Threats


WHEN?

WHO?

COMPETITORS’ PROBLEMS


GURUS






WHY?

HOW MANY? HOW MUCH?

WHAT (PROBLEMS/PAIN)?

HOW?

WHAT NEXT?

WHERE?

CUSTOMER PROBLEMS (PAIN)


WHEN?

WHO?

CUSTOMER PROBLEMS


GURUS






WHY?

HOW MANY? HOW MUCH?

WHAT (PROBLEMS)?

HOW?

WHAT NEXT?

WHERE?

BUSINESS PROBLEMS (PAIN)


WHEN?

WHO?

BUSINESS PROBLEMS


GURUS






CAUSE 4

CAUSE 6

CAUSE 1

CAUSE 5

CAUSE …

CAUSE 3

ROOT-CAUSE MAP-------------------------------

MAIN PROBLEM (EFFECT):


CAUSE 7

CAUSE 2

ROOT-CAUSE MAP


GURUS






WHY (MISSION)?

HOW MANY? HOW MUCH?

WHAT (VISION)?

HOW?

WHAT NEXT?

WHERE?

BUSINESS VISION

WHEN?

WHO?

BUSINESS VISION


GURUS







GURUSWHAT IS A BUSINESS MODEL?

A Business Model or Value Chainis a Schema of

How an Organization or Industry Operatesto Deliver Value

Especially Profit andOh My God-Customer Experiences





ITENN

ENVIRONMENT

UNIVERSAL MODEL OF A SYSTEM GURUS


SYSTEM

OUTPUTPROCESSINGINPUT(Elements)

FEEDBACK (“Pivot”/Learning Cycle)





ITENN

ENVIRONMENT

UNIVERSAL BUSINESS SYSTEM GURUS


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) 1: X1


INPUT (ELEMENT) … : X…


VISUAL EQUATION FORA SYSTEM

-------------------------------OUTCOME OR OUTPUT (Y)

=FUNCTION OF INPUTS (X)



VISUAL EQUATION FOR A SYSTEM


GURUS






ITENN E: ENVIRONMENT

P: PROCESSES

S: SUPPLIERS/MATERIALS

R: RETAILERS/DISTRIBUTORS/ CHANNELS

O: OUTPUTS (PRODUCT/ SERVICE)

E: EMPLOYEES/KNOWLEDGE ASSETS/CULTURE

GLOBAL VALUE CHAIN:

OUTCOMES/GOALS Customer Value Proposition (Job) Business Value = Revenue/Cost Customer Value (Experience) = Customer Delight/Customer Pain

M: MACHINERY/EQUIPMENT/ FACILITY/LOCATION

C: CUSTOMERS/CONSUMERS & RELATIONSHIPS

GLOBAL VALUE CHAIN

Zoomable Elements of a Value Chain or Business Model: “SEMPORCE”GURUS






ITENN E: 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 CHAINWASTE:

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 WASTE

GURUS






ITENN E: 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 CHAINHYPOTHESES:

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 ModelGURUS






ITENN GLOBAL VALUE CHAIN:

GOALS Customer Value Proposition (Job) Business Value = Revenue/Cost Customer Value (Experience) = Customer Delight/Customer Pain

GURUS


GOALS OF GLOBAL VALUE CHAIN

Collaboratively List and/or Sketch Goals Including Elements of Vision, Value Proposition,Business Value, and Customer Value





ITENN


SUPPLIERS

Collaboratively List and/or Sketch Suppliers/MaterialsGURUS





ITENN E: EMPLOYEES/

KNOWLEDGE ASSETS

EMPLOYEES

Collaboratively List and/or Sketch Employees/Knowledge AssetsGURUS





ITENN M: MACHINERY/

EQUIPMENT/FACILITY

MACHINERY

Collaboratively List and/or Sketch Machinery/Equipment/Facilities GURUS





ITENN

P: PROCESSES/STRATEGIES

PROCESSES

Collaboratively List and/or Sketch Processes/Strategies GURUS





ITENN O: OUTPUTS

(PRODUCTS/SERVICES)

OUTPUTS

Collaboratively List and/or Sketch Outputs (Products/Services)GURUS





ITENN R: RETAILERS/CHANNELS/

DISTRIBUTORS

RETAILERS

Collaboratively List and/or Sketch Retailers/Channels/DistributorsGURUS





ITENN

C: CUSTOMERS/CONSUMERS

CUSTOMERS

Collaboratively List and/or Sketch Customers/Consumers GURUS





ITENN

E: ENVIRONMENT

ENVIRONMENT

Collaboratively List and/or Sketch Elements of Environment:Partners/Complementors/Competitors/Industries/Investors/Government/NGOs/Enemies/Society

GURUS






• 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


GLOBAL VALUE CHAIN(PERFORMANCE DASHBOARD)

OUTCOMES/GOALS Customer Value Proposition (Job) Business Value = Revenue/Cost Customer Value (Experience) = Customer Delight/Customer Pain


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 ChainGURUS

R: RETAILERS/DISTRIBUTORS/ CHANNELS Retailers/Distributors/Channels Place/Warehousing/Location Promotion/Buzz Branding/Marketing Advertising Selling/Relationship Management

O: OUTPUTS (PRODUCT/ SERVICE) Product/Service Pricing Packaging Display Design Plan







Key Partners (KP)

P: PROCESSES

Key Activities (KA)


Key Resources (KR) – Suppliers


Channels (CH)


Key Resources (KR) – Product/ Service


Key Resources (KR) – Employees

GLOBAL VALUE CHAINFOR “BUSINESS MODEL

CANVAS”: GOALS Customer Value Proposition (VP) Revenue Streams (R$) Cost Structure (C$)


Key Resources (KR) – Machinery


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






ITENN E: ENVIRONMENT Key Partners (KP) Record Companies Original Equipment Manufactur- ers (OEMs)

P: PROCESSES Key Activities (KA): Hardware Design Software Design Marketing


Key Resources (KR) – Suppliers


Channels (CH) iTunes Store www.apple.com Apple Stores Selected Retail Stores


Key Resources (KR) – Product/ Service iPod Hardware iTunes Software Content & Agreements


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


Key Resources (KR) – Machinery


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


http://www.apple.com/




http://www.google.com/imgres?imgurl=http://images.businessweek.com/ss/06/05/phaidon/image/11_979-ipod.jpg&imgrefurl=http://images.businessweek.com/ss/06/05/phaidon/source/12.htm&usg=__5UwlmeQQeGhKtohDaLcX7qSF-oA=&h=309&w=440&sz=20&hl=en&start=1&zoom=1&um=1&itbs=1&tbnid=noESIJ-yrxi9CM:&tbnh=89&tbnw=127&prev=/images?q=ipod+2001&um=1&hl=en&rlz=1T4HPNN_enUS317US317&tbs=isch:1

FOCUS “PIVOT” PROCESS: VALUE INNOVATION TACTICS (What if … E.R.I.C.?) OUTCOME:FUTURE(DISRUPTIVE)BUS. MODEL

BUSINESS/GLOBAL VALUE CHAIN

GIVEN BUSINESS MODEL

E:Eliminate

R: Reduce/Replace

I: Increase

C: Create

INPUT (SUPPLIERS/ MATERIALS/ENERGY)

ELEMENTS(EMPLOYEES/MACHINERY)

Staff/Apple Brand

PROCESS(Bus. Process/ Strategies)

Hardware Design/ Software Design/Marketing

OUTPUTS:PRODUCT/SERVICE

iPod Hardware/ iTunes Software/Content & Agreements

RETAILERS/DISTRIB./CHANNELS

iTunes; apple.com; Apple Stores/Others

CONSUMERS/CUSTOMERS (Experience)

Luxury Spot/Mass Market

ENVIRONMENT - COMPETITORS (Industry)- PARTNERS (Complementors)- INVESTORS (Revenue/Cost)- PUBLIC/SOCIETY/Enemies- GOVERNMENT/NGOs

Record Companies/Original Equipment Manufacturers (OEMs)/…

BUSINESS MODEL PIVOT FOR APPLE INC.: iPod - 2001 Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models

SYST

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Market Segment (Customer Problem): ‘Fragmented’ Music ExperienceMission/Vision: “… Apple leads the digital music revolution. …”


HYPOTHESES PROBLEMS/PAIN (WEAKNESS-ES/THREATS)

GOALS/Objectives/Strategies/Tactics/ Initiatives/Projects

Key Metrics/ Performance Indicators/Targets

Business Experiences (Impacts)

Description of BUSINESS/GLOBAL VALUE CHAIN

Delight(Revenue)

Pain(Cost)

S: Suppliers

E: Employees/ Knowledge Assets

Staff/Apple Brand/

Staffing Cost

M: Machinery/ Infrastructure

Hardware Design/ Software Design/Marketing

P: Processes MarketingSales

Marketing CostSales Cost

O: Outputs(Product/Service)

iPod Hardware/ iTunes Software/Content & Agreements

R: Retailers/ Distributors/Channels

iTunes; apple.com;Apple Stores/Other Retailers

C: Consumers/Customers

Luxury Spot/Mass Market

High Revenue (Hardware)

E: Environment Record Companies/Original Equipment Manufacturers (OEMs)/…

Commissions

VALUE CHAIN(“SEMPORCE”)

BUSINESS ECOSYSTEM

Customer Value Proposition:“A Thousand Songs in Your Pocket”

BUSINESS VALUE(PROFIT MARGIN)

BUSINESS MODEL PLAN FOR APPLE INC.: iPod - 2001 Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models

GURUS

Mission/Vision: “… Apple leads the digital music revolution. …” Market Segment (Customer Problem): ‘Fragmented’ Music Experience


FOCUS


DESCRIPTION








Mission/Vision: …………………….………………………………………………….

BUSINESS MODEL MATRIX: Template Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models

SYST

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FOCUS EVOLUTION OF BUSINESS MODEL IDEAL BUSINESS MODEL


DESCRIPTION/INDUSTRY

PASTBUSINESS MODEL

PRESENTBUSINESS MODEL

FUTUREBUSINESS MODEL








Mission/Vision: …………………….………………………………………………….

BUSINESS MODEL EVOLUTION Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models

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FOCUS BUSINESS MODEL LIFECYCLE: Five Stages in the Life of a Business Model



BIRTH GROWTH MATURITY DECLINE DEATH







Early Adopters/Innovators

Early Majority Late Majority Overserved/Underserved

Switchers


BUSINESS MODEL LIFECYCLE Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models

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FOCUS BUSINESS MODEL (CUSTOMER/PRODUCT) DEVELOPMENT DASHBOARD LEARNING:Findings/ Insights/Deci-sions/Actions



BUSINESS MODEL PROB. & DISCOVERY



BUSINESSMODEL MANAGEMENT








Early Majority Late Majority Loyal/Overserved/Underserved


BUSINESS MODEL DEVELOPMENT (BMD) MATRIX: Template Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models

SYST

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(IND

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FOCUS BUSINESS MODEL (CUSTOMER/PRODUCT) DEVELOPMENT DASHBOARD LEARNING:Findings/ Insights/Deci-sions/Actions



BUSINESS MODEL PROB. & DISCOVERY



BUSINESSMODEL MANAGEMENT




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


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




Early Majority Late Majority Loyal/Overserved/Underserved


BUSINESS MODEL DEVELOPMENT (BMD) MATRIX: Populated Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models

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FOCUS BUSINESS MODEL TRENDS IN AN ECONOMY LEARNING:Findings/ Insights/Deci-sions/Actions



PHYSICALSECTOR

SOCIALSECTOR

KNOWLEDGESECTOR

SPIRITUAL SECTOR








BUSINESS MODEL TRENDS Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models

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S)GURUS






FOCUS COMPETITORS/SECTOR/INDUSTRY FUTURE(DISRUPTIVE/IDEAL)BUS. MODEL


GIVENBUS. MODEL

BUS. MODEL 1: BUS. MODEL 2: BUS. MODEL 3: BUS. MODEL …








Mission/Vision: …………………….………………………………………………….

INDUSTRY BUSINESS MODELS Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models

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FOCUS STRATEGY: How must the business model get there? Where must business model go?BUSINESS/

GLOBAL VALUE CHAINWhere currently is business model?








Mission/Vision: …………………….………………………………………………….

BUSINESS MODEL PLANNING Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models

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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



P: Processes




E: Environment


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






FOCUS PROCESS: SWOT Analysis FUTURE(DISRUPTIVE/IDEAL)BUS. MODEL


GIVENBUS. MODEL

S:Strengths

W:Weaknesses

O:Opportunities

T:Threats








Mission/Vision: …………………….………………………………………………….

BUSINESS MODEL SWOT ANALYSIS Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models

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FOCUS “PIVOT” PROCESS: VALUE INNOVATION TACTICS (What if … E.R.I.C.?) FUTURE(DISRUPTIVE/IDEAL)BUS. MODEL


GIVENBUS. MODEL

E:Eliminate

R: Reduce/Replace

I: Increase

C: Create








Mission/Vision: …………………….………………………………………………….

BUSINESS MODEL PIVOT Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models

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FOCUS “PIVOT” PROCESS: VALUE INNOVATION TACTICS (What if … E.R.I.C.?) FUTURE(DISRUPTIVE/IDEAL)BUS. MODEL


GIVENBUS. MODEL

E:Eliminate

R: Reduce

I: Increase

C: Create


Waste/Defects Waste/Defects/Energy

Efficiency of Logistics/Digitalization/

Partnerships/Collaborations


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


Delays/Complexity/Bottlenecks/Waste/Defects/Risks/ Uncertainties

Delays/Complexity/Bottlenecks/Waste/Risks/Uncertainties/Marketing/Debt

Efficiency/Speed/Agility/Flexibility/ Reliability/Accuracy/ Customization

Digitalization/Integration/Pricing unit/KPIs

OUTPUTS(PRODUCT/SERVICE)

Dissatisfiers: Cost/Concessions/Complexity/Delays/Aging

Delighters: QualityDissatisfiers: Cost/Maintenance/Range/Choice/Complexity

Dissatisfiers: CostDelighters/Value: Convenience/Prestige/Useability/Brand

Delighters: Theme/Thrill/Fun/Music/Art/Adventure


Distribution outlets/ Retailers

Distribution outlets/Marketing/Ad.

Distribution outlets/Marketing/Ad./Service

Website/Word-of-mouth


Dissatisfiers:Pain/Objections/ Complaints

Dissatisfiers:Pain/Objections/ Complaints

Delighters/Key metrics: Quality/Pro-ductivity/Profitability

Demand/Goal: Niches/Exper./Crowdsourcing


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

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Market Segment (Customer Problem/Goal): Increase or Appropriately Reduce CUSTOMER VALUE QUOTIENT

GURUS


SYSTEM ADJACENT (PERIPHERAL/ALTERNATIVE) BUSINESS MODELS FUTURE(VISIONARY/ IDEAL)BUS. MODEL


PRESENT/COREBUSINESS MODEL

Adjacency1:

Adjacency2:

Adjacency3:

Adjacency…

S: Suppliers



P: Processes




E: Environment


CORE Customer Value Proposition (Job To Be Done):

BUSINESS MODEL ADJACENCIES Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models

GURUS







FOCUS SIX SIGMA PROCESS


C:Collect Info’

D:Define Problem

M:Measure

A:Analyze

G:Generate

I:Improve

C:Control




OUTPUTS:PRODUCT/SERVICE (Defects)




Mission/Vision: …………………….………………………………………………….

SIX SIGMA-BUSINESS MODEL MATRIX Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models

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FOCUS CUSTOMER DEVELOPMENT-BUSINESS MODELExpected vs. Actual Performance

LEARNING:Findings/Insights/ Decisions/ActionsBUSINESS/

GLOBAL VALUE CHAINCOMPANY VISION

CUSTOMER DISCOVERY

CUSTOMER VALIDATION

CUSTOMER CREATION

COMPANY BUILDING





Minimum Product: Desirable/Viable/ Feasible

Product-Market Fit: Prototype/ Pilot/No-frills

Product-Solution Fit: Full Software/ Hardware

More Fully Featured Product



Innovators Early Adopters(“Earlyvangelists”)

Early Majority Late Majority/Loyal


Mission/Vision: …………………….………………………………………………….

CUSTOMER DEVELOPMENT-BUSINESS MODEL (CDBM) MATRIX Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models

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ITEM

FOCUS

CUSTOMER DISCOVERY DASHBOARD

STATEMENT/FORMULATION OF HYPOTHESES RESULT LEARNING:Findings/ Insights/ Decisions/ ActionsBUSINESS/

GLOBAL VALUE CHAINJOBS/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


GURUS


BUSINESS Upstream VALUE NETWORK (SUPPLY CHAIN OR “FOOD CHAIN”) Downstream

TOFROM

S:Suppliers

E:Employees

M:Machinery

P:Processes

O:Output

R: Retailers/Wholesalers/Distr.

C:Customers

E:Environment

S: Suppliers


M: Machinery/ Facility/Infra’

P: Processes




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







PUBLISHER Upstream VALUE NETWORK (SUPPLY CHAIN OR “FOOD CHAIN”) Downstream

TOFROM

S:Suppliers

E:Employees

M:Machinery

P:Processes

O:Output

R: Retailers/Wholesalers/Distr.

C:Customers

E:Environment

S: Suppliers


M: Machinery/ Facility/Infra’

P: Processes Print books Stock/pack booksDet. allocations


Books Book inventory; Merchandise titles


Establish identity

Ship books; Deliver orders; Dispose of returns


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







CUSTOMER DEVELOPMENT FOR SCALABLE STARTUPSCollaboratively 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 FORPROCESS/INDUSTRY/BUSINESS MODEL/PRODUCT

PROBLEM UNIVERSE:

GLOBAL PROBLEM MAPPING

Collect/Define/Measure/Verify Problems, Pains, andTrade-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 & ProcessesPrepare Project Charter and Form Project Team with Diverse Members (Customers and Non-customers)

Mission/Vision: …………………….………………………………………………….

GURUS










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






(-): PAIN


Luxury Spot

Strategic Choice

Resegmented/Reframed/Low-cost

Market

Cost(Adoption Barrier; Complexity; Inaccessibility; Delay)

Existing High end-Market

Performance(Functionality;Quality)

KeyOMG-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)







(-): PAIN


Luxury Spot

Strategic Choice

KeyOMG-Experience:


CUSTOMER EXPERIENCE MAP: Template Collaboratively Collect, Organize, Prioritize, and ManageVision, Strategies, Products, Services, and Business Models

GURUS


Ideal Value Space(Ideal Market/Ideal Impossibility/Ideal Tool/Ideal Universe/New Market)







(-): PAIN


Luxury Spot

Strategic Choice

Cost-Quality MapFor Product/Service/Business Model

Where Currently is the System?/Why? Where Must the System go?/Why? How Will the System Get There?

KeyOMG-Experience:


Quality(Performance)

Cost(Price)

GURUS









(-): PAIN


Luxury Spot

Strategic Choice

Cost-Differentiation MapVisually Describe, Analyze, and Manage Customer Experiences (in Space/Time)

KeyOMG-Experience:


Differentiation(Uniqueness)

Cost

Classic DIFFERENTIATION

Strategy

ClassicCOST LEADERSHIP

Strategy

GURUS


“STUCK-IN-THE-MIDDLE”Strategy








(-): PAIN


Luxury Spot

Strategic Choice

Low-end Disruption(Disruptive Innovator: Low-end, Overserved

Customers; Low Margin;‘Good Enough’ Quality)

Cost(Adoption Barrier; Complexity; Inaccessibility; Delay)

Sustaining Innovation(Incumbent: High end,

‘20-80’ Customers;High Profit Margin)Performance

(Functionality;Quality)

KeyOMG-Experience:


GURUS Cost-Performance Map Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models


Growth

Competition

Ideal Value Space(Ideal Market/Ideal Impossibility/Ideal Tool/Ideal Universe/New Market Disruption)







(-): PAIN


Luxury Spot

Strategic Choice

KeyOMG-Experience:



Risk

SCALEDifferentiated

Business Model

STANDARDIZEProduct/Service;

OUTSOURCE‘Peripherals’

TRANSFERResources and

EXIT

INVENTDifferentiated

Product/Service

GURUS Value Innovation Cycle Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models









(-): PAIN


Luxury Spot

Strategic Choice

KeyOMG-Experience:



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

Growth

Competition









(-): PAIN


Luxury Spot

Strategic Choice

Customer IntimacyDISCIPLINE

Operational ExcellenceDISCIPLINE

Quality of Experience(Performance)

Cost

Product LeadershipDISCIPLINE

KeyOMG-Experience:


GURUS Value Discipline Map Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models









(-): PAIN


Luxury Spot

Strategic Choice

Defect (Error; Waste; Delay;Complaint; Deviation from ‘Standard’;Delivery Time; Complexity)

ProcessSpeed(Agility; Flow;Efficiency;Effectiveness)

Lean-Six SigmaMETHODOLOGY

Six SigmaMETHODOLOGY

Lean ManufacturingMETHODOLOGY

GURUS


KeyOMG-Experience:



Lean-Six Sigma Map Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models







(-): PAIN

(+): DELIGHT

Disruption Spot

Luxury Spot

Strategic Choice

Novelty of Meaning(Interaction; Job; Utility; Want;Language; Style;Differentiation)

Technology Obsolescence(Maturity; Cycle; Evolution)

Game-changingMEANING/TOOL(Paradigm Shift)

EmergentMEANING/TOOL

GenericMEANING/TOOL

(Existing Paradigm)

StretchMEANING/TOOL

DisruptiveMEANING/TOOL

GURUS


KeyOMG-Experience:



Meaning-driven Innovation Map Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models







(-): 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

DesirableParameter(Performance;Strength; Power;Reliability Quality;Accuracy;Speed; Content;Versatility)

GURUS


KeyOMG-Experience:



Technical Innovation Map Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models







(-): PAIN


Luxury Spot

Strategic ChoiceCash Cow

StarMarketGrowthRate

Commoditization(1 – Market Share)

Dog

Question Mark

KeyOMG-Experience:


GURUS


Product Portfolio Map Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models








(-): PAIN


Luxury Spot

Strategic Choice

KeyOMG-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 ManageVision, Strategies, Products, Services, and Business Models

3

10

6

3

6

10








(-): PAIN


Luxury Spot

Strategic Choice

Big Urgent Market Pain

(BUMP)

BUMP MAPCollaboratively Discover or Identify Big Urgent Market Pain (BUMP)

Urgency(Need/Importance)of Solution

Size or Pervasiveness of Pain(Number of ‘Victims’ orCustomers & Non-customers)

GURUS

List of Stakeholders


Little Urgent Market Pain

(LUMP)







(-): PAIN

(+): DELIGHT 2

Emotional Delight(Branding/Differentiation; Customization)

Intellectual Pain(Complexity; Cost Inaccessibility;Processing Time)

(+): DELIGHT 1

Physical Delight(Functionality; Quality; Performance)

FutureMarketSpace

Existing MarketSpaceKey

OMG-Experience:


GURUS

Market (Customer Problem/Goal): ……………………………………………

Customer Value Cube Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models







(-): PAIN 2

(+): DELIGHT 2

Value(Quality; Differentiation)

Waste(Cost; Time; Defect)

Lean Startup

(-): DELIGHT 1

Performance(Functionality)

FutureMarketSpace

Existing MarketSpaceKey

OMG-Experience:


GURUS

Market (Customer Problem/Goal): Lean Customer Development

LEAN STARTUP Cube Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models







0 2 4 6 8 100

2

4

6

8

10

DELIGHT

PAIN

Customer Value Quotient (VEQ) = Weighted Delight/Weighted Pain = Utility Function= Slope of Customer Experience Curve


TRADE-OFF GRAPH: TemplateVisually 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 8 100

2

4

6

8

10

DELIGHT( Differentiation; Quality)

PAIN(Cost)


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


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 8 100

2

4

6

8

10

DELIGHT( Knowledge;Quantity)

PAIN(Cost; Price)


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



Customer Value Quotient (VVQ) = Weighted Delight/Weighted Pain = Utility Function= Slope of Customer Experience Curve





0 2 4 6 8 100

2

4

6

8

10

DELIGHT(Quantity)

PAIN(Price)


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)



GURUS

Customer Value Quotient (VVQ) = Weighted Delight/Weighted Pain = Utility Function= Slope of Customer Experience Curve





0 2 4 6 8 100

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


Moore’s Law GraphCollaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models

Market (Customer Goal): Integrated Circuit Board

GURUS






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


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


Existing Revenue (Reward/Info flow) Potential Revenue (Reward/Info flow)

Existing Cost (Entry Barrier/Info Flow) Potential Cost (Entry Barrier/Info Flow)

GURUSBLUE OCEAN-BUSINESS MODEL

Collaboratively Expand Market and Become Uncontested Leader in Emerging Fast-growing Industry





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]


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


Mass Market: Overserved/Unserved Early/Fast Adopters; Pragmatists ‘Good Enough’ or Minimum Customer Service


Simple-to-use Product/Service ‘Good Enough’ Functionality/Quality Low/Discounted Price Widely Available; Fast-moving


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




GURUSDISRUPTION 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]


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


Personalized Interaction/Experience: High Touch, High Feel; Co-creation Customer Experience Segmentation Superior Customer Support High end Customers: Conservative


Rare Product/Service; Premium Price High Performance; High Quality Highly Recognized Brand; Extension Feature-rich; High Profit Margin Prestigious; Cool Factor; Social Aura


Novel/Unique Materials


Highly Innovative/Disruptive Technology Luxury Ambience High Rent; Premium/Urban Location

KEY




GURUSLUXURY 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.)

REMOTECOMPETITORS(Remote Ind.)


Mission/Vision: …………………….………………………………………………….

GURUS


CUSTOMER EXPERIENCE OF COMPETITORS Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models





IMPACTS

SYSTEM



Selection Criteria:Needs & Barriers CURVES

Function/Content/Perf./Knowledge



Customization/ Personalization/Interactivity/Entertainment

Cost (Price)


Complexity/ Difficulty/Support/Range/Risk


WEIGHT (IMPORTANCE)


CUSTOMER EXPERIENCECURVES

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



Mission/Vision: …………………….………………………………………………….

IMPACTS

SYSTEM



Selection Criteria:Needs & Barriers TACTICS

Function/Content/Perf./ Knowledge



Customization/ Personalization/Interactivity/Fun/Entertain.

Cost (Price/Weight/ Material)


Complexity/ Difficulty/Support/RiskRange/Shape


WEIGHT (IMPORTANCE)

Av. Competitor:

Chief Competitor:


E: Eliminate

R: Reduce

I: Increase

C: Create

CUSTOMER EXPERIENCE TACTICS Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business ModelsGURUS








GURUS

4 VALUE INNOVATION SUPERHEROES

(ARCHETYPAL THINKING ROLES)FOR

TARGETED OBJECTS/RESOURCES: System, Elements, Attributes, Processes& Supersystem/Industry/Environment

4 VALUE INNOVATION SUPERHEROESFOR 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


WISDOMSOURCING MAPS:

Family of Wisdomsourcing Maps (Zoomable Idea Organizers) for Facilitating Collaboration, Ideas

Management, Creativity, and Customer Problem Solving


CLASSIC HORIZONTAL MAP

GURUS


WISDOMSOURCING MAPS FOR THE BLUE OCEAN STARTUP






GURUS

HorizontalWisdomsourcing Map

VerticalWisdomsourcing Map

Pain-DelightWisdomsourcing 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


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


Level 0

Mini-Wisdomsourcing Map(Building Block, Atom, Seed, or Screen)

Super Wisdomsourcing Map: 3x3 Classic Wisdomsourcing Map

Level 1

Level 2

Zooming Out of Space

(Time)

Zooming In Space

(Time)

Classic Wisdomsourcing Map: 3x3 Mini-Wisdomsourcing Map





GURUS


CLASSIC HORIZONTAL MAP

Theme/Topic: …………………………………….……………………………………..…… Date: …………………..…..





ITENN

GURUS


CLASSIC VERTICAL MAP

Theme/Topic: …………………………………….……………………………………..…… Date: …………………..…..





(-): PAIN


Luxury Spot

Strategic Choice

KeyOMG-Experience:


GURUS




CLASSIC PAIN-DELIGHT MAP

Theme/Topic: …………………………………….……………………………………..…… Date: …………………..…..






ABOUT THE INVENTOR/AUTHOR

GURUS





Inventor of over 40 Tools for The Wisdomsourcing Trilogy – Facilitating work in the areas of Business Model Development Business and Strategic Planning Product & Service Innovation Performance Management

Inventor of “The Fractal Grid”This technology, which has US andInternational patent-pending, can beused for visually organizing and Prioritizing massive amounts of information such as in search engines, social networks, andother communities on the Internet

Visual Problem Solver Speaker & Consultant on

Business Model Development Inventor of The Wisdomsourcing

Trilogy, a Customer Problem Solv-ing Suite for Collaboratively Designing Oh My God-Strategies, Products, and Business Models

Founder of the WisdomsourcingGroup, an online Global Think Tankfor collaboratively improvingcustomer experiences and resolvingtough dilemmasOrganizer & Coordinator of Wisdom-sourcing survey involving over 200 professionals from over 30 countries

CONTACT

Dr. Rod King: California, USACell: (559) 248-6230

[email protected]://twitter.com/RodKuhnKing

B. Eng. (Hons) in Civil Eng. Master of Infrastructure Planning Ph.D. in Regional Dev. Planning Postgraduate Certificate in

Advanced Academic Studies Over 20 years of experience in

creative problem solving formulti-disciplinary projects

Dr. Rod KingVisual Problem Solver,

Inventor & Magician Inventor of first software that

wholly invents magic tricks Inventor of several magic tricks Author of “Trickanalyzing the

Close-up Magic of David Copperfield” & several articles

Winner of several championships in chess and table-tennis

Founder and former CEO of Galaxy IT, Inc., a venture-financed visual search engine business

Major contributor on creativity to the multi-author book, “Research Methods for Postgraduates”

Former Lecturer

BIOGRAPHICAL SKETCH Background Information on Dr. Rod King, Creator of Business Model Development (BMD)

GURUS




• Rod King (2009)• Global Collaboration• Visual Problem Solving• Practical Impossibility Thinking• Wisdomsourcing Maps• Wisdomsourcing Canvas• Customer Experience Map (Pain-Delight Evaluation of Trade-off)• Wisdomsourcing Deck• Manifesto for Wisdomsourcing Game

• Alex Osborne (1953)• Rules for Brainstorming – No criticism during idea generation• ‘Blue Sky’ Thinking and Ideas

• Jeff Howe (2006)• Crowdsourced Goods and Information Products• Off-site Tools for Strategic Analysis and ProblemSolving

• ‘Ad hoc’ Group• Unlimited Number of Volunteers• Peer Production; Documentation• Open Innovation and Value Chain• Prosumers: Consumers who participate like employees/producer in a business• Competitions; Contests; Prizes• Recognition; Reputation

• Organic Process• Online Collaboration• Collaborative Idea Generation• 1D-Evaluation; Voting

• Myriad Generated Ideas

• Offline• 1 Physical Location• Formal Group

WISDOMSOURCING3.

CROWDSOURCING 2.

1.BRAINSTORMING

EVOLUTION OF WISDOMSOURCINGGURUS





Got Business Model Problems?





Send an E-mailTo, at least, 10 ColleaguesTelling Them About This

FREE & INTERACTIVE One-stop Toolkit:

“Business Model Developmentfor Blue Ocean Startups”

Note: This offer is for LIMITED TIME ONLY!!!Copyright 2010. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing

Please Help Other Startups and Entrepreneurs!




BUSINESS MODEL DEVELOPMENT FOR BLUE OCEAN STARTUPS

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