Steve Blank’s Petal Diagram vs. Rod King’s Value Engine Map: Visual Tools for Brand Positioning,...

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Steve Blank’s Petal Diagram vs. Rod King’s Value Engine Map Visual Tools for Value Posi.oning, Market Segmenta.on, and Compe..ve Analysis PETAL DIAGRAM VALUE ENGINE MAP

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About a week ago, the startup world got ablaze from reading Steve Blank’s blog post, “A New Way to Look at Competitors.” In the blog post, Blank notes that the traditional Competitive Graph – which focuses on differentiating offerings of “Our Company” vs. “Our Competitors” - is “inappropriate for startups or existing companies creating new markets.” Blank goes on to offer a Petal Diagram which places a given company (startup) in the core of a flower while segments of competitors are place in petals that surround the core. But how useful is Steve Blank’s Petal Diagram especially for startups? Judging from feedback including Tweets and Facebook Likes on the Internet, the response to the Petal Diagram is extremely positive. Many readers note that the Petal Diagram offers benefits including the following: # great way to communicate a startup’s position and opportunity especially to investors (Venture Capitalists) # segmentation of an existing market while showing sources of future customers as well as potential competitors and partners # visually appealing way for investors to see growth opportunities for a startup # linkage to business model innovation especially using the Business Model Canvas Although feedback on the Petal Diagram is generally great, some people are critical of the form and usefulness of the Petal Diagram especially in presenting proposals to investors. Perhaps, the strongest critique of the Petal Diagram comes from fellow Venture Capitalist, Tomasz Tunguz who blogged on: “Why the Petal Diagram Isn’t the Best Competition Diagram for Startup’s Pitch.” Tunguz’s main critique was “petal diagrams don't communicate the startup's unique way of competing in the market.” In short, the Petal Diagram is not useful for Brand Positioning, Value Proposition Design, Competitive Analysis, and Benchmarking. Consequently, it would seem like the Petal Diagram has to be used in conjunction with the classic Competitive Graph to present a wholesome picture of a startup’s opportunity and strategy. Or ... can we visually reframe the classic Competitive Graph so that it offers its original features as well as all the features and benefits of the Petal Diagram? I believe that we can. Yes, we can. http://goo.gl/8TKHm4

Transcript of Steve Blank’s Petal Diagram vs. Rod King’s Value Engine Map: Visual Tools for Brand Positioning,...

  • Steve Blanks Petal Diagram vs. Rod Kings Value Engine Map Visual Tools for Value Posi.oning, Market Segmenta.on, and Compe..ve Analysis PETAL DIAGRAM VALUE ENGINE MAP
  • Visual Tools for Value PosiEoning, Market SegmentaEon, and CompeEEve Analysis CHARACTERISTICS TOOLS (TASKS/FUNCTIONS) TradiEonal X/Y- CompeEEve Graph 1) Market (Brand) Posi.oning; Perceptual Mapping 2) Classic Market Segmenta.on (Exis'ng Market/Customers) Petal Diagram (Steve Blank) Value Eng. Map (Rod King) 3) Job-To-Be-Done Market Segmenta.on (Future Market) 4) Fractal Market Segmenta.on (Customer Personas) 5) Adjacencies/Adjacent Markets: Red Ocean/Blue Ocean 6) Players (Organiza.ons) in Compe..ve Landscape 7) Investments in Compe..ve Landscape 8) Industry (Value) Benchmarking; Customer Dev. Interviews 9) Business Model Archetypes or Paerns 10) Value Proposi.on Design; Strategy Canvas 11) Classic Compe..ve (3 Generic) Strategies 12) Disrup.ve Innova.on Strategy 13) Blue Ocean Strategy (Value Innova.on) 14) Red Ocean Disrup.on (ROD) Strategy/Tac.cs (4 Ac.ons) 15) Ideal Final Result (IFR); Ideal Min. Valuable Product (MVP) 16) Trends of Evolu.on (Moores Law) 17) Analogical Tools: Product Analogs/An.logs 18) Resolu.on of Trade-os/Conicts/Contradic.ons 19) Brand Disrup.on: Disrup.ve Value Factors; Wargaming 20) Exis.ng/Expected Price Line (Price-Benet Map)
  • 3 CompeEEve Strategy QuesEons for Insurgent and Incumbent CompeEtors 1 2 3 WHO are your direct/indirect compe.tors? WHY would you win against the main compe.tors? HOW would you win against the main compe.tors? (HOW would you rapidly engage, acquire, and retain customers/non- customers?)
  • Steve Blanks Petal Diagram Value PosiEoning, Market SegmentaEon, and CompeEEve Analysis
  • PETAL DIAGRAM of CompeEEve Landscape: Create a Lifelong Learning Network for Entrepreneurs Source: hp://steveblank.com/2013/11/08/a-new-way-to-look-at-compe.tors/
  • PETAL DIAGRAM of CompeEEve Landscape: Create a Lifelong Learning Network for Entrepreneurs Source: hp://steveblank.com/2013/11/08/a-new-way-to-look-at-compe.tors/
  • PETAL DIAGRAM of CompeEEve Landscape: Create a Lifelong Learning Network for Entrepreneurs Projected Investments Source: hp://steveblank.com/2013/11/08/a-new-way-to-look-at-compe.tors/
  • The Petal Diagram [Compe..ve Landscape] Drives Your Business Model Canvas Steve Blank
  • Rod Kings Value Engine Map (3x3 Fractal Storycard) Value PosiEoning, Market SegmentaEon, and CompeEEve Analysis Source of info on Trade-o Maps: hp://steveblank.com/2013/11/08/a-new-way-to-look-at-compe.tors/
  • The Value Engine Map Drives Red Ocean DisrupEon (ROD) Strategy & TacEcs Rod King
  • How?
  • The Value Engine Map Ensures That You Do The 6 Jobs of Highly InnovaEve Teams
  • The 6 Jobs of Highly InnovaEve Teams Rapidly Discover and Solve BUMPs Problem Dener SoluEon Builder TRADE-OFF MAP Value Learner SoluEon Improver Problem Measurer Problem Analyzer #4ROD. Dr. Rod King. [email protected] & hep://businessmodels.ning.com & hep://twieer.com/RodKuhnKing
  • The 6 Jobs of Highly InnovaEve Teams Rapidly Discover and Solve BUMPs Problem Dener Value Learner SoluEon Builder Dene Problem Dene/sketch customer Make eld visits; Network Observe anomalies, pains & trade-os Ques.on ecosystem Learn Whats Valued Explore in Build SoluEon What to learn/share space/.me Set goals/strategies Evaluate (-/+); Monitor Brainstorm specs/propn. Reect: Lesson Learned Idealize; Use What if? Tell stories; Pitch Analogize; Experiment TRADE-OFF Prototype tool; Pilot Summarize MAP Improve SoluEon Measure Problem Resolve trade-os Measure impacts Do mul.level thinking Collect data/info Transform; Disrupt Quan.fy rela.onships Role-play; Simplify Conrm channels Implement tac.cs Verify/Validate Analyze Problem Analyze data/info Categorize inputs Model process/system Structure/Classify outputs Display cri.cal thinking SoluEon Improver Problem Measurer Problem Analyzer #4ROD. Dr. Rod King. [email protected] & hep://businessmodels.ning.com & hep://twieer.com/RodKuhnKing
  • The 6 Jobs of Highly EecEve Teams: LIFELONG LEARNING NETWORK for Entrepreneurs Rapidly Discover and Solve BUMPs Problem Dener Value Learner SoluEon Builder Dene Problem Dene/sketch customer Make eld visits; Network Observe anomalies, pains & trade-os Ques.on ecosystem Learn Whats Valued Explore in Build SoluEon What to learn/share space/.me Set goals/strategies Evaluate (-/+); Monitor Brainstorm specs/propn. Reect: Lesson Learned Idealize; Use What if? Tell stories; Pitch LIFELONG Analogize; Experiment Summarize LEARNING Prototype tool; Pilot Improve SoluEon NETWORK Measure Problem Resolve trade-os Measure impacts Do mul.level thinking Collect data/info Transform; Disrupt Quan.fy rela.onships Role-play; Simplify Conrm channels Implement tac.cs Verify/Validate Analyze Problem Analyze data/info Categorize inputs Model process/system Structure/Classify outputs Display cri.cal thinking SoluEon Improver Problem Measurer Problem Analyzer #4ROD. Dr. Rod King. [email protected] & hep://businessmodels.ning.com & hep://twieer.com/RodKuhnKing
  • QuesEon for Value Engine Map Why and How to Create a Lifelong Learning Network for Entrepreneurs?
  • VALUE ENGINE MAP of MARKET UNIVERSE Big Urgent Market Problem (BUMP): Inadequate learning resources for entrepreneurs BLUE OCEAN [Business Model] RED OCEAN [Business Model]
  • VALUE ENGINE MAP of MARKET UNIVERSE Big Urgent Market Problem (BUMP): Inadequate learning resources for entrepreneurs Job To Be Done (Market/Goal): Experience a lifelong learning network for entrepreneurs BLUE OCEAN [Business Model] RED OCEAN [Business Model]
  • VALUE ENGINE MAP of MARKET UNIVERSE Big Urgent Market Problem (BUMP): Inadequate learning resources for entrepreneurs Job To Be Done (Market/Goal): Experience a lifelong learning network for entrepreneurs (+): DELIGHT: BLUE OCEAN [Business Model] RED OCEAN [Business Model] (-): PAIN:
  • VALUE ENGINE MAP of Cost vs. Performance MARKET SEGMENTATION (Customer Personas) Big Urgent Market Problem (BUMP): Inadequate learning resources for entrepreneurs Job To Be Done (Market/Goal): Experience a lifelong learning network for entrepreneurs BLUE OCEAN [Business Model] (+): DELIGHT: Performance (Benet) High RED OCEAN [Business Model] Low Low (-): PAIN: Cost High
  • VALUE ENGINE MAP of Cost vs. Performance MARKET SEGMENTATION (Customer Personas) Big Urgent Market Problem (BUMP): Inadequate learning resources for entrepreneurs Job To Be Done (Market/Goal): Experience a lifelong learning network for entrepreneurs (+): DELIGHT: Performance (Benet) High Low Low (-): PAIN: Cost High
  • VALUE ENGINE MAP of Cost vs. Performance MARKET SEGMENTATION (Customer Personas) Big Urgent Market Problem (BUMP): Inadequate learning resources for entrepreneurs Job To Be Done (Market/Goal): Experience a lifelong learning network for entrepreneurs BLUE OCEAN [Customers] (+): DELIGHT: Performance (Benet) High (10) RED OCEAN [Customers] Low (1) Low (1) (-): PAIN: Cost High (10)
  • VALUE ENGINE MAP of Cost vs. Performance BUSINESS MODELS (PRODUCTS/STRATEGIES/VPs) Big Urgent Market Problem (BUMP): Inadequate learning resources for entrepreneurs Job To Be Done (Market/Goal): Experience a lifelong learning network for entrepreneurs BLUE OCEAN [Business Model] (+): DELIGHT: Performance (Benet) High (10) RED OCEAN [Business Model] Low (1) Low (1) (-): PAIN: Cost High (10)
  • VALUE ENGINE MAP of Cost vs. Performance BUSINESS MODELS (PRODUCTS/STRATEGIES/VPs) Big Urgent Market Problem (BUMP): Inadequate learning resources for entrepreneurs Job To Be Done (Market/Goal): Experience a lifelong learning network for entrepreneurs BLUE OCEAN [Business Model] (+): DELIGHT: Performance (Benet) High (10) RED OCEAN [Business Model] Low (1) Low (1) (-): PAIN: Cost High (10)
  • VALUE ENGINE MAP of Cost vs. Performance BUSINESS MODELS (PRODUCTS/STRATEGIES/VPs) Big Urgent Market Problem (BUMP): Inadequate learning resources for entrepreneurs Job To Be Done (Market/Goal): Experience a lifelong learning network for entrepreneurs BLUE OCEAN [Business Model] Higher EducaEon Startup Ecosystem InsEtuEons Corporate (+): DELIGHT: Performance (Benet) High (10) Adult Learning/Skills RED OCEAN [Business Model] Low (1) Low (1) (-): PAIN: Cost High (10)
  • VALUE ENGINE MAP of Cost vs. Performance BUSINESS MODELS (PRODUCTS/STRATEGIES/VPs) Big Urgent Market Problem (BUMP): Inadequate learning resources for entrepreneurs Job To Be Done (Market/Goal): Experience a lifelong learning network for entrepreneurs BLUE OCEAN [Business Model] Higher EducaEon Startup Ecosystem InsEtuEons Corporate (+): DELIGHT: Performance (Benet) High (10) Adult Learning/Skills RED OCEAN [Business Model] Low (1) Low (1) (-): PAIN: Cost High (10)
  • VALUE ENGINE MAP of Cost vs. Performance BUSINESS MODELS (EXISTING INVESTMENTS) Big Urgent Market Problem (BUMP): Inadequate learning resources for entrepreneurs Job To Be Done (Market/Goal): Experience a lifelong learning network for entrepreneurs BLUE OCEAN [Business Model] Higher EducaEon Corporate (+): DELIGHT: Performance (Benet) High (10) $90. 8m Startup Ecosystem $20 m InsEtuEons $14. 25m Adult Learning/Skills $1.5 b $103 m $195 m $163 m RED OCEAN [Business Model] Low (1) Low (1) (-): PAIN: Cost High (10)
  • VALUE ENGINE MAP of Cost vs. Performance BUSINESS MODELS (PROJECTIONS) Big Urgent Market Problem (BUMP): Inadequate learning resources for entrepreneurs Job To Be Done (Market/Goal): Experience a lifelong learning network for entrepreneurs BLUE OCEAN [Business Model] Corporate $20 b High (10) (+): DELIGHT: Performance (Benet) Higher EducaEon Startup Ecosystem $20. 6b $100b InsEtuEons Adult Learning/Skills $23 m $55 b RED OCEAN [Business Model] Low (1) Low (1) (-): PAIN: Cost High (10)
  • Classic CompeEEve Graph Source: hp://steveblank.com/2013/11/08/a-new-way-to-look-at-compe.tors/
  • VALUE ENGINE MAP Big Urgent Market Problem (BUMP): Job To Be Done (Market/Goal): . Ideal Final Result (IFR): Insanely Great Experience or Ideal Minimum Viable Product (MVP) BLUE OCEAN [Business Model] (+): DELIGHT: High (10) RED OCEAN [Business Model] Low (1) Low (1) (-): PAIN: High (10)
  • VALUE ENGINE MAP for Red Ocean DisrupEon (ROD) Strategy and TacEcs Big Urgent Market Problem (BUMP): Job To Be Done (Market/Goal): . Ideal Final Result (IFR): Insanely Great Experience or Ideal Minimum Viable Product (MVP) BLUE OCEAN [Business Model] (+): DELIGHT: High (10) RED OCEAN [Business Model] Low (1) Low (1) (-): PAIN: High (10)
  • VALUE ENGINE MAP of Market Universe: 9 Archetypal Customer Segments (Personas) Big Urgent Market Problem (BUMP): Job To Be Done (Market/Goal): . Ideal Final Result (IFR): Insanely Great Experience or Ideal Minimum Viable Product (MVP) BLUE OCEAN Customers SWEET SPOT Customers LUXURY SPOT/ DIFFERENTIATION Customers DISRUPTION SPOT/ LOW COST/LEAN Customers OASIS SPOT/ STUCK-IN-THE-MIDDLE Customers VOLCANO SPOT Customers GREEN OCEAN Customers NO-MANS-ISLAND Customers RED OCEAN Customers Low (1) (-): PAIN: Cost (+): DELIGHT: Dieren5a5on High (10) Low (1) High (10)
  • VALUE ENGINE MAP of Market Universe: 9 Archetypal Customer Segments (Personas) Big Urgent Market Problem (BUMP): Job To Be Done (Market/Goal): . Ideal Final Result (IFR): Insanely Great Experience or Ideal Minimum Viable Product (MVP) BLUE OCEAN Customers (+): DELIGHT: Dieren5a5on High (10) q Dissa5sers q Sa'sers q Delighters DISRUPTION SPOT/ LOW COST/LEAN Customers q Dissa5sers q Sa'sers q Delighters GREEN OCEAN Customers Low (1) SWEET SPOT Customers q Dissa5sers q Sa'sers q Delighters Low (1) OASIS SPOT/ STUCK-IN-THE-MIDDLE Customers q Dissa5sers q Sa'sers q Delighters NO-MANS-ISLAND Customers q Dissa5sers q Sa'sers q Delighters (-): PAIN: Cost LUXURY SPOT/ DIFFERENTIATION Customers q Dissa5sers q Sa'sers q Delighters VOLCANO SPOT Customers q Dissa5sers q Sa'sers q Delighters RED OCEAN Customers q Dissa5sers q Sa'sers q Delighters High (10)
  • VALUE ENGINE MAP of Market Universe: 9 Archetypal Customer Segments (Personas) Big Urgent Market Problem (BUMP): Job To Be Done (Market/Goal): . Ideal Final Result (IFR): Insanely Great Experience or Ideal Minimum Viable Product (MVP) BLUE OCEAN Customers (+): DELIGHT: Dieren5a5on High (10) q Dissa5sers q Sa'sers q Delighters DISRUPTION SPOT/ LOW COST/LEAN Customers q Dissa5sers q Sa'sers q Delighters GREEN OCEAN Customers Low (1) SWEET SPOT Customers q Dissa5sers q Sa'sers q Delighters Low (1) OASIS SPOT/ STUCK-IN-THE-MIDDLE Customers q Dissa5sers q Sa'sers q Delighters NO-MANS-ISLAND Customers q Dissa5sers q Sa'sers q Delighters (-): PAIN: Cost LUXURY SPOT/ DIFFERENTIATION Customers q Dissa5sers q Sa'sers q Delighters VOLCANO SPOT Customers q Dissa5sers q Sa'sers q Delighters RED OCEAN Customers q Dissa5sers q Sa'sers q Delighters High (10)
  • VALUE ENGINE MAP of Universe of BUSINESS MODELS (PRODUCTS/STRATEGIES/VPs) Big Urgent Market Problem (BUMP): Job To Be Done (Market/Goal): . Ideal Final Result (IFR): Insanely Great Experience or Ideal Minimum Viable Product (MVP) (+): DELIGHT: Dieren5a5on High (10) Low (1) BLUE OCEAN [Business Model/ Strategy/ Value Proposi.on] SWEET SPOT [Business Model/ Strategy/ Value Proposi.on] LUXURY SPOT/ DIFFERENTIATION [Business Model/ Strategy/ Value Proposi.on] DISRUPTION SPOT/ LOW COST/LEAN [Business Model/ Strategy/ Value Proposi.on] OASIS SPOT/ STUCK-IN-THE-MIDDLE [Business Model/ Strategy/ Value Proposi.on] VOLCANO SPOT [Business Model/ Strategy/ Value Proposi.on] GREEN OCEAN [Business Model/ Strategy/ Value Proposi.on] NO-MANS-ISLAND [Business Model/ Strategy/ Value Proposi.on] RED OCEAN [Business Model/ Strategy/ Value Proposi.on] Low (1) (-): PAIN: Cost High (10)
  • VALUE ENGINE MAP of Universe of TOOLS (ANALOGICAL PRODUCTS/SERVICES: In/Out of Industry) Big Urgent Market Problem (BUMP): Job To Be Done (Market/Goal): . Ideal Final Result (IFR): Insanely Great Experience or Ideal Minimum Viable Product (MVP) (+): DELIGHT: High (10) Low (1) BLUE OCEAN [TOOLS: Product/Service-Analogs] SWEET SPOT [TOOLS: Product/Service-Analogs] LUXURY SPOT/ [TOOLS: Product/Service-Analogs] DISRUPTION SPOT/ LOW COST/LEAN [TOOLS: Product/Service-Analogs] OASIS SPOT/ STUCK-IN-THE-MIDDLE [TOOLS: Product/Service-Analogs] VOLCANO SPOT [TOOLS: Product/Service-Analogs] GREEN OCEAN [TOOLS: Product/Service-Analogs] NO-MANS-ISLAND [TOOLS: Product/Service-Analogs] RED OCEAN [TOOLS: Product/Service-Analogs] Low (1) (-): PAIN: High (10)
  • 3D-Value Engine Map 3D-Value PosiEoning, Market SegmentaEon, and CompeEEve Analysis
  • 3D-VALUE ENGINE MAP (CompeEtors Rubik Cube) Big Urgent Market Problem (BUMP): Job To Be Done (Market/Goal): . DELIGHT 1: ExisEng Market SegmentaEon (Direct/Indirect Compe.tors) PAIN: DELIGHT 2: New Market SegmentaEon (Non-compe.tors; Non-customers)
  • 3D-VALUE ENGINE MAP FOR LIFELONG LEARNING NETWORK Big Urgent Market Problem (BUMP): Inadequate learning resources for entrepreneurs Job To Be Done (Market/Goal): Experience a lifelong learning network for entrepreneurs DELIGHT 1: Performance (Benet) ExisEng Market SegmentaEon (Direct/Indirect Compe.tors) PAIN: Cost DELIGHT 2: (Dieren'a'ng ASribute, e.g., Simplicity) New Market SegmentaEon (Non-compe.tors; Non-customers)
  • BONUS TOOL Customer AcquisiEon Pyramid One-Page Worksheet That Answers the Ques.on: How will a Blue Ocean Lean Startup (BOLS) get customers?
  • CUSTOMER ACQUISITION PYRAMID: How to create a Blue Ocean Big Urgent Market Problem (BUMP): Job To Be Done (Market/Goal): . Dream Product/Service q Delighters q SaEsers BUSINESS q DissaEsers DIRECT COMPETITORS q Delighters (Core Sector/Strategic Groups: q SaEsers Subs'tutes) q DissaEsers INDIRECT COMPETITORS (Peripheral/ Adjacent Industries: Alterna'ves/Value Chain Complements) NON-COMPETITORS (Remote Industries/Economy: Sectoral & Geographical Non-alterna'ves) q Delighters q SaEsers q DissaEsers Why? How? Why? How? q NON- CUSTOMERS (UNDERDOGS) o Protable o Break-even o Unprotable Why? How? (New) Customer Value ProposiEon/Market: .. Diusion (Word-of-mouth) Poten'al = Delighters + Sa'sers - Dissa'sers #4ROD. Dr. Rod King. [email protected] & hep://businessmodels.ning.com & hep://twieer.com/RodKuhnKing
  • CUSTOMER ACQUISITION PYRAMID FOR LIFELONG LEARNING NETWORK Big Urgent Market Problem (BUMP): Inadequate learning resources for entrepreneurs Job To Be Done (Market/Goal): Experience a lifelong learning network for entrepreneurs Dream Product/Service q Delighters q SaEsers BUSINESS q DissaEsers DIRECT COMPETITORS q Delighters (Core Sector/Strategic Groups: q SaEsers Subs'tutes) q DissaEsers INDIRECT COMPETITORS (Peripheral/ Adjacent Industries: Alterna'ves/Value Chain Complements) NON-COMPETITORS (Remote Industries/Economy: Sectoral & Geographical Non-alterna'ves) q Delighters q SaEsers q DissaEsers Why? How? Why? How? q NON- CUSTOMERS (UNDERDOGS) o Protable o Break-even o Unprotable Why? How? (New) Customer Value ProposiEon/Market: .. Diusion (Word-of-mouth) Poten'al = Delighters + Sa'sers - Dissa'sers #4ROD. Dr. Rod King. [email protected] & hep://businessmodels.ning.com & hep://twieer.com/RodKuhnKing
  • ROD U Rapidly Discover and Solve BUMPs For more informaEon on how to beer use and master the Value Engine Map, contact Red Ocean DisrupEon (ROD) University hp://businessmodels.ning.com #4ROD. Dr. Rod King. [email protected] & hep://businessmodels.ning.com & hep://twieer.com/RodKuhnKing