Why you need - Business Model Zen

2015.3.2

Yongho (Brad) Cho

Why�� you�� need

VisionArena Co.,Ltd All Right Reserved http://Visionarena.co.kr

Create Different

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Thanks for inspiration. You can reference these books.

- Business Model Generation by Alexander Osterwalder & Yves Pigneur - Seizing the White Space by A.G. Lafley and Mark W. Johnson - The Profit Zone by Adrian J. Slywotzky

- Free by Chris Anderson - Not for Free by Saul J. Berman

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mailto:[email protected]

Mission of Business Model Zen

“Helping People To Design and Act Viable Business Innovation”

If you already have any of below questions, then you should consider Business Model Zen.

- How can I make my business model much more divergent?

- How can I use significant innovation methods all together easily?

- How can I do business things right with right things?

- How can I produce great business ideas?

WHY WE NEED ANOTHER BUSINESS MODEL APPROACH

Business Model Zen Canvas http://businessmodelzen.com

Customer

Mission

Problem

Market

Solution

Advantage

Empathy

High Concept

Revenue

Cost

Cooperator

Cooperator for Market

for Innovation

Exploring Opportunities

Generating Ideas Do & Test

Learn & Pivot

Business Model Zen Canvas

- One page canvas that integrates concept-plan-action

4by4 Business Model Patterns

- 38 powerful business model patterns

Sum, Split, Subtract Orchestrate

Flow Twist

SOFT Ideation Wheel

- 25 innovative ideation thinking set

Business Model Map

- cross-over map among blue ocean strategy, service design, lean startup and bm canvas

Business Model Zen Diagnostic

- Strategical diagnostic framework for business model

Customer Problem

Mission Market

Solution Empathy

Advantage High Concept

Revenue

Cost

Cooperator


for Innovation

Making Good Ideas BM Health Check

Extending Cross-Over Utility

Empowering patterns

Unfolded BM Cube

Innovation Solution Box

Even if you fill prevalent business model canvas with Bad Concept that can’t sell, you get little feedback to reflect.

How can I do business things right with right things?

Problem (1)

Key Question

BUSINESS MODEL ZEN CANVAS

Solution

ProvideSingle Integrated Business View of ‘Concept-Plan-Action’ with systematic reflection

with BM Diagnostics

http://businessmodelzen.com��

Customer

Mission

Problem

Market

Solution

Advantage

Empathy

High Concept

Revenue

Cost

Cooperator for Innovation



Learn & Pivot

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Who is my customer?

What is my promise to customer?

What is my customer’s unmet needs?

Are the needs attractive enough to the market?

What are my value propositions to the customer?

Does it have unfair advantages over my competitors?

How can I evoke empathy from my customer?

Does my concept have emotional and cultural aspects?

What is main revenue stream of my business?

What is main cost structure of my business?

Who should I work with to make the Solution?

Who should I work with to enter the Market?

Date: / /��

Group:�� Version:�� Business

Name�� Business Model Zen Canvas What are candidate solutions for customer problem? Which ideas are in the top priorities?

What are the business opportunities according to business environments, customer needs, lifestyle, social culture and technology that are changing?

What are the key metrics to test market hypothesis?If gap exists, what is the main cause of it?

Do we need partial adjustment or big change?

What are the concrete actions to go to market and test market hypothesis?


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10

Business Model Zen Diagnostics version 1.5


Customer

Mission

Problem

Market

Solution

Advantage

Empathy

High Concept Revenue

Cost




Learn & Pivot

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Who is my customer?












Instructionsto diagnose��

1)  Before diagnosing, you are recommended to design the preliminary business model with ZEN canvas.2)  Diagnose each blocks one by one following block number (located in upper right corner of each block).3)  If your business fall in red zone while assessing, it is a important signal to review and redesign your business model again. (blue is OK, green needs some review)

What are candidate solutions for customer problem? Which ideas are in the top priorities?






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9

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X axis: Mission and customer value fitness�� Y axis: Mission and target customer fitness��

Low! High!

Low!

High!

‘Customer’ area Asses Criteria��

“Does the mission match the actually pursued value?”!

Pass: I Check If OK: II, III Reconsider: IV��

Check if adjusting customer Value is needed!

Check if re-targeting customer is needed!

X axis: Number of customers�� Y axis: Importance of customer problem (payment inclination)��

Low! High!

Low!

High!

‘Problem’ area Asses Criteria��

“How big is the sum of problem?”!


II" I"

IV" III"

X axis: Degree of market competition on solving problem�� Y axis: Degree of differentiation��

High! Low!

Low (Incremental)!

High (Substantial)!

‘Solution’ area Asses Criteria��

“How much can the solution be differentiated? ”!


X axis: Degree of target customer’s empathy on problem�� Y axis: Degree of target customer’s empathy on solution��

Low! High!

Low!

High!

‘Empathy’ area Asses Criteria��

“Is the degree of customer empathy enough? ”!


Check if re-targeting customer is needed!

Check why solution does not have comparative advantages

Is the market chance grasped through the chance

search still valid?

Were potential ideas fully deduced and discussed?

Are the standards for verifying BM hypothesis clear and measurable?

Are the practice plans for the market approach

specific enough?

II" I"

IV" III"

X axis: �� Relevancy between revenue source

Y axis: Diversity of revenue source��

Low! High!

Low!

High!

‘Profit’ area Asses Criteria (III)�� “Are the portfolio and relevant ability enough?”


Check core revenue source and competency!

Check if revenue source can be diversified

II" I"

IV" III"

X axis: Period to earn profit after launching�� Y axis: Net Customer LTV ��

Long! Short!

Low!

High!

‘Profit’ area Asses Criteria (I)�� “Is the profit model powerful enough? ”

Pass: I �� Check If OK: II, III �� Reconsider: IV�� Net Customer Lifetime Value = Customer Lifetime Value �� – Customer Acquisition Cost – Customer Retention Cost��

Check if fund raising will be possible

Check if business itself is attractive

II" I"

IV" III"

X axis: Marginal Profit�� Y axis: Investment in Initial stage��

Low! High!

High!

Low!

‘Profit’ area Asses Criteria (II)�� “Is the profit model powerful enough?”!


Check if business itself is attractive

Check if fund raising will be possible

Marginal Profit = Marginal Revenue – Marginal Cost��

and core competency

II" I"

IV" III"

X axis: Degree of external cooperation�� Y axis: Degree of ecosystem value integrity��

Low! High!

Low

High

‘Cooperator’ area Asses Criteria(I)�� “How many cooperation do you consider? ”


Check if you can invite more cooperators! II" I"

IV" III"

X axis: Easiness to cooperate with�� Y axis: Independency to cooperators��

Low! High!

Low (Must-Have)

High (Nice-to-Have)

‘Cooperator’ area Asses Criteria(II)�� “Is cooperation possibility high? ”


Check if you can

suggest positive value!

Check if differentiation point exist really!

II" I"

IV" III"

II" I"

IV" III"

II" I"

IV" III"Check if you could define

competition in customer’s eye!

Check if you can find more customer groups who has same problem!

Check if the problem really

happens widely and frequently

Check if you can invite more cooperators!

Check if cooperation

is easy or strong really!

Blue means Good

Red means Bad

Business Model Zen

Business Model Zen

One Word that includes Balance, Integrity, Simplicity and Orientalism?

Why Zen?

禪 Tao Zen

(Korea) (China) (Japan)

No Nationality Really~

Business Model Canvas

Where are those??

Creating Value

Delivering Value

Capturing Value

Discovering Value

Proofing Value

Strategic Consideration Feedback Mechanism

The old BM Canvas is good tool and we respect it. But there are significant things left to be improved.


Customer

Mission

Problem

Market

Solution

Advantage

Empathy

High Concept

Revenue

Cost




Learn & Pivot

This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License.To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/ .

Who is my customer?












Date: / /��

Group:�� Version:�� Business

Name�� Business Model Zen Canvas What are candidate solutions for customer problem? Which ideas are in the top priorities?






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1

4

5

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10

Business Model Zen BM Zen helps entrepreneurs not to overlook important things.

Creating Value

Delivering Value

Capturing Value

Discovering Value Proofing Value

Strategic Consideration + Diagnostics

Many ideation methods like SCAMPER, TRIZ do not fit to Business Ideation Issues exactly.

Problem (2)

How can we produce great business ideas?

Key Question

SOFT IDEATION

Solution

Provide25 guidelines to make Soft Innovation

SOFT Ideation Level-3 S O

T F

http://softideation.com�� This work is licensed under the Creative Commons Attribution-Non Commercial-Share Alike 3.0 Unported License. To view a copy of this license, visit http://creativecommons.org/licenses/by-nc-sa/3.0/ .

Divide and sell as much as you consumed

Make it unnecessary and omit Make

non-

custo

mers

custo

mers

Help

peop

le ex

chan

ge th

e goo

ds

Connect people who want to meet

Make the fixed assets floating assets Change the remaining 10 minutes valuable

Make the non-stock assets into stock

Solve

the

prob

lem o

utsid

e th

e sy

stem

Make t

he sy

stem fo

r the p

oor

Combine the profitable/non-profitable products

Gather distinctive proposals Gather customer’s preferences

Gather great experiences

Divide the share

Divide into single one and contents Rem

ove the choice

Reuse what people did

Connect a different kind of things

Make the interest spread

Change the behavior through the pleasure

Change the feature to be sold

Chan

ge th

e prob

lem di

fferen

tly

Contrive the ch

ange of order or relation Make the profit by free model

Wheel

Theme Selection Idea Generation Check Issues

Problem Discovery

Opportunities Exploration

Theme

Brainstorming

Idea Expansion

Brain writing

Idea Classifying

Idea Converge

Idea Clustering

Idea Voting Team Discussion

Matrix Evaluation

Problem-Solution Draw

Idea Execution

Issue Tree

Tool SOFT-25 Checklist Brainstorming Board Brain writing Board SIG (SOFT Ideation Game) Card

Idea Theme Board Idea Matrix Board Problem-Solution Draw Board

Action Generate great business ideas using SOFT

Classify and refine generated ideas

Prioritize the ideas Check issues and secondary effects while executing

Set the preliminary theme

http://softideation.com��

SOFT Ideation S O

T F Process

SIG can be played

There are no systematic method to make my Business Model greater than (Industry average or Current) As-Is one.

How can I make my business model much more divergent?

Problem (3)

Key Question

4BY4 BUSINESS MODEL PATTERN

Solution

ProvideTweak current business model to be Divergent


What it is


1. Select business core component to leverage Customer Product Channel Profit

Model

2. Arithmetical Operation applied to selected business component.

+ - X %

BM approach to leverage your business components with +,-,*,%.


When to use


on idea exploration stage

- use this framework to make new way of business not similar to industry average BM

on product validation stage

on business growth stage

- use this framework to make initial BM (focusing on customer value) working & pivoting

- use this framework to make proven BM to be optimized and growth-friendly

IndustryAverageModel

Businessnot Validated

YetBusinesswith LowGrowth

IndustryDivergent

Model ValidatedBusiness

Businesswith HighGrowth


4by4 Business Model Patterns 38 BM Patterns to Change Your Biz.

Customer

Product

Channel

Profit Model

+ - X %ver 1.0

Low Touch De-marketingMicro

Segmentation

Bundling

Crowd Deal

Channel Aggregation

Disintermediation

Referral Channel per Purpose

Unbundling

Fractionalizatio

Mass Customization

Collaborative Production

Two-sided Market

Brokerage

Collaborative Consumption

De-composition

AcquiringNon customers

De-profit source

Time-Space Sharing

Right Sharing

Cross-Subsidiary

3rd party Sponsored

Asset FluidizationMembership

Franchise

Complements

Brand Expansion

Cost Minimization

Licensing

Community

Feature Composition

Installment

Freemium

SubscriptionLease

Financing

Time value

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So many methods tracking innovation : Blue Ocean, Design Thinking, Lean Startup, BM Canvas and Much More..

How can I use significant innovation methods all together easily?

Problem (4)

Key Question

BUSINESS MODEL MAP

Solution

ProvideSingle View of many innovation methods

Business Model Zen Canvas http://businessmodelzen.com

Customer

Mission

Problem

Market

Solution

Advantage

Empathy

High Concept

Revenue

Cost

Cooperator


for Innovation



Learn & Pivot

This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/ .

Knowing Desire and

Feeling of User

Proofing hypothesis with Speed and Low cost

Drawing solu<ons

with Jobs-‐to-‐be-‐done

Making

Compe<<on Irrelevant

Blue Ocean

Strategy

ServiceDesign

Lean Startup

BM (VP)Canvas

Who is my customer?







Does my concept have emotional and

cultural aspects?


Who should I work with to enter the

Market?What is main revenue stream of my business?

What is main cost structure

of my business?

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3

5

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8

Context Descriptions

Business Model Zen is a brand new approach to customer oriented BM methodologies.

Can we integrate other methods in a single view? Can we use them in cross-over projects?

Why not. Please go on to next page >>

Blue Ocean

Strategy

ServiceDesign

Lean Startup

BM (VP)Canvas

Now you can use 4 methods all together in one business model context, Zen.

http://businessmodelmap.com

Customer

Mission

Problem

Market

Solution

Advantage

Empathy

High Concept

Revenue

Cost

Cooperators for Innovation



Learn & Pivot

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(Date:�� 2014.2.4)Version:�� 0.8Business Model Zen - Map

Cooperators for Market

Who is my customer?












ERRC Action

FrameworkStrategy Canvas

Strategy Show

Six Path

Non-Customer

Buyer Utility Map

Buyer Experience Cycle

Value Factor

To-Be Value Curve

Strategy Sequence

- Target Pricing

Strategy Sequence- Adoption

- Tipping Point Leadership

Value Curve Monitoring

Slogan (from Value Curve)

PMS Map

Co-creation

Workshop

Concept Sketch

Participant Observation

Persona

User Journey Map

Role play

Contextual Interview

Stakeholder Mapping

Service Blueprint

Service Scenarios

Storyboard

Service Prototyping

Empathy Map

Value Proposition Canvas

Customer Segments

Value Propositions

Partners

Revenue Stream

Cost Structure

Channels(Customer Relationships)

Key Activities

Key Resources

MVP

Value Hypothesis

Growth Hypothesis

A/B Test

Pivot

Cohort Analysis

Channels

Revenue Stream

Cost Structure

Customer Segments

Early Adopters

Problem Alternatives Solution UVP Unfair Advantage

Key Metrics

BO SD LS BCBlue OceanStrategy

ServiceDesign

LeanStartup

BMCanvas

LS ItemsBMC Items

http://businessmodelmap.com

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Global Approach

Toolkit listed on LeanStartup Circle Wiki

Warm Testimonials from BM Communities

The 3rd arrived BM master template on Canvanizer and BM Fiddle

More (click)

More (click)

More (click)

http://businessmodelzen.com/business-model-zen-online-canvas-is-now-available/







http://bit.ly/1qkG7D9







http://businessmodelzen.com/testimonials/









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For more information

Visit homepage: http://businessmodelzen.com

Email: [email protected]

Phone: +82.2.3454.1108

Contact Person: Brad Cho

Customer Centric Business Approach Starting with Why

This year, Business Model Zen will enter only one global country. Do you want to take a chance?

http://businessmodelzen.com

Why you need - Business Model Zen

Business

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