THE LEAN STRATEGY CANVAS FOR STARTUPS AND ESTABLISHED ORGANIZATIONS: A Visual Toolkit for Eliminating Fat ("Wasteful") Strategy and Maximizing Profitability
Today, many startups and established organizations inadvertently practice "Fat Strategy" which leads to a lot of waste, unprofitability, and competitive disadvantage. This presentation features a Lean Strategy Canvas which can be used for eliminating Fat Strategy. The Lean Strategy Canvas is also helpful for projects that aim at delivering Awesome Customer Experiences (ACEs) as well as greater Shared Value (Profitability). The Lean Strategy Canvas is a core tool in the portfolio of tools for eliminating Fat Strategy.
Your insights and questions are welcomed.
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HOUSE OF STRATEGY: A New Way to Visualize, Present, and Manage Strategies ......Rod King, Ph.D.
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THE LEAN STRATEGY CANVAS FOR STARTUPS AND ESTABLISHED ORGANIZATIONS: A Visual Toolkit for Eliminating Fat ("Wasteful") Strategy and Maximizing Profitability
1.
#QBE.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
h9p://businessmodels.ning.com
&
h9p://twi9er.com/RodKuhnKing
“Smart”
Execu.on
Cycle
Doing
Outcome
Done
Plan
To
Do
Rapidly
Eliminate
“Fat
Strategy”
and
Maximize
Profitability
2.
#QBE.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
h9p://businessmodels.ning.com
&
h9p://twi9er.com/RodKuhnKing
“Smart”
Execu.on
Cycle
Doing
Outcome
Done
Plan
To
Do
Rapidly
Eliminate
“Fat
Strategy”
and
Maximize
Profitability
Problem?
3.
#QBE.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
h9p://businessmodels.ning.com
&
h9p://twi9er.com/RodKuhnKing
SoluMon
Idea/Task
“Smart”
Execu.on
Cycle
Doing
Outcome
Done
Plan
To
Do
Rapidly
Eliminate
“Fat
Strategy”
and
Maximize
Profitability
Problem?
4.
#QBE.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
h9p://businessmodels.ning.com
&
h9p://twi9er.com/RodKuhnKing
“6
Gates”
“Smart”
Execu.on
Cycle
Doing
Outcome
Done
Plan
To
Do
Rapidly
Eliminate
“Fat
Strategy”
and
Maximize
Profitability
SoluMon
Idea/Task
Problem?
5.
#QBE.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
h9p://businessmodels.ning.com
&
h9p://twi9er.com/RodKuhnKing
“6
Gates”
“Smart”
Execu.on
Cycle
Doing
Outcome
Done
Plan
To
Do
(Top
Problem
or
Challenge)
Lean
Canvas
Business
Model
Canvas
Business
Model
Storyboard
Business
Model
Trade-‐off,
Analysis,
and
Strategy
(Strategic
Customer
Problem
Solving)
Tac.cs,
Experiments,
and
Validated
Learning
(Opera:onal
Customer
Problem
Solving)
Result
(Deficit
or
Gap
from
‘Ideal’)
Rapidly
Eliminate
“Fat
Strategy”
and
Maximize
Profitability
TradiMonal
Business
Plan
Business
Model
Strategy
Product/Service
SoluMon
Idea/Task
Problem?
6.
#QBE.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
h9p://businessmodels.ning.com
&
h9p://twi9er.com/RodKuhnKing
Plan
To
Do
Result
(Deficit
or
Gap
from
‘Ideal’)
Build
(Do/Try)
Measure
Learn
“Smart”
Execu.on
Cycle
Doing
“6
Gates”
Tac.cs,
Experiments,
and
Validated
Learning
(Opera:onal
Customer
Problem
Solving)
Business
Model
Trade-‐off,
Analysis,
and
Strategy
(Strategic
Customer
Problem
Solving)
Minimum
Viable
Proposi:on
(MVP)
Outcome
Done
Rapidly
Eliminate
“Fat
Strategy”
and
Maximize
Profitability
TradiMonal
Business
Plan
Business
Model
Strategy
Product/Service
(Top
Problem
or
Challenge)
Lean
Canvas
Business
Model
Canvas
Business
Model
Storyboard
SoluMon
Idea/Task
Problem?
7. PROFIT
(MARGIN)
q Maximum
Number
of
Users/Paying
Customers
q Minimum
Cost
(Waste)
Build
(Do/Try)
Measure
Learn
#QBE.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
h9p://businessmodels.ning.com
&
h9p://twi9er.com/RodKuhnKing
TradiMonal
Business
Plan
Business
Model
Business
Model
Trade-‐off,
Analysis,
and
Strategy
(Strategic
Customer
Problem
Solving)
Tac.cs,
Experiments,
and
Validated
Learning
(Opera:onal
Customer
Problem
Solving)
MISSION/VISION
Minimum
Viable
Proposi:on
(MVP)
“6
Gates”
Users/Customers
(Trade-‐off;
Success
Criteria)
q E:
Engagement;
Experience
q A:
Acquisi.on;
Ac.va.on
q R:
Reten.on;
Revenue
Outcome
Result
(Deficit
or
Gap
from
‘Ideal’)
“Smart”
Execu.on
Cycle
Doing
Plan
To
Do
Rapidly
Eliminate
“Fat
Strategy”
and
Maximize
Profitability
Strategy
Product/Service
(Top
Problem
or
Challenge)
Lean
Canvas
Business
Model
Canvas
Business
Model
Storyboard
SoluMon
Idea/Task
8. VALUE
(Happiness)
q Maximum
Delight:
Effec.veness
q Minimum
Pain:
Cost
(Waste)
q Awesome
Customer
Experience
Build
(Do/Try)
Measure
Learn
#QBE.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
h9p://businessmodels.ning.com
&
h9p://twi9er.com/RodKuhnKing
Minimum
Viable
Proposi:on
(MVP)
“6
Gates”
Users/Customers
(Trade-‐off;
Success
Criteria)
q E:
Engagement;
Experience
q A:
Acquisi.on;
Ac.va.on
q R:
Reten.on
MISSION/VISION
Outcome
Business
Model
Trade-‐off,
Analysis,
and
Strategy
(Strategic
Customer
Problem
Solving)
Tac.cs,
Experiments,
and
Validated
Learning
(Opera:onal
Customer
Problem
Solving)
Result
(Deficit
or
Gap
from
‘Ideal’)
Plan
To
Do
“Smart”
Execu.on
Cycle
Doing
Rapidly
Eliminate
“Fat
Strategy”
and
Maximize
Shared
Value
TradiMonal
Business
Plan
Business
Model
Strategy
Product/Service
(Top
Problem
or
Challenge)
Lean
Canvas
Business
Model
Canvas
Business
Model
Storyboard
SoluMon
Idea/Task
9.
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
h9p://businessmodels.ning.com
&
h9p://twi9er.com/RodKuhnKing
Lean
Strategy
Canvas
Rapidly
Eliminate
Fat
Strategy
and
Maximize
Profitability
A
Lean
Strategy
Canvas
Is
A
Unique
Space-‐Timeline
or
Kanban
Board
For
Effec:vely
and
Efficiently
Visualizing,
Managing,
and
PresenMng
The
Workflow
of
Any
Strategy
“Lean
Strategy”
refers
to
a
set
of
problem-‐solving
strategies,
any
of
which
effec.vely
and
efficiently
delivers
an
Awesome
Customer
Experience
(ACE)
as
well
as
greater
Shared
Value
(Profitability)
10.
#QBE.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
h9p://businessmodels.ning.com
&
h9p://twi9er.com/RodKuhnKing
Visually
Organize
Ideas
and
Solve
Any
Problem
Method/ImplementaMon
Space
(Doing)
CreaMve
LifeSpace
(Networking;
Learning)
SoluMon
Space
(To
Do)
Problem
Space
(Done)
11. ITENN
Lean
Business
Model
Canvas
DramaMc
Story
Canvas
Lean
Strategy
Canvas
(Problem
Solving
Envelope)
Business
Model
Dashboard
Value
Engine
Map
Six
Gates
to
Profitability
LEAN
STRATEGY
TOOLKIT
Integrated
Tools
For
Lean
Strategy
25
Investor
QuesMons
Business
Model
Storyboard
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
h9p://businessmodels.ning.com
&
h9p://twi9er.com/RodKuhnKing
LEAN
STRATEGY
TOOLKIT
Integrated
Tools
for
Rapidly
Elimina:ng
Fat
Strategy
and
Maximizing
Profitability
12. The
Six
Gates
to
Profitability
(Ques.on-‐Based
Entrepreneurship)
13.
#QBE.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
h9p://businessmodels.ning.com
&
h9p://twi9er.com/RodKuhnKing
“Smart”
Execu.on
Cycle
Doing
Outcome
Done
Plan
To
Do
Rapidly
Eliminate
“Fat
Strategy”
and
Maximize
Profitability
SoluMon
Idea/Task
Problem?
14.
#QBE.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
h9p://businessmodels.ning.com
&
h9p://twi9er.com/RodKuhnKing
“Smart”
Execu.on
Cycle
Doing
Outcome
Done
Plan
To
Do
Develop/Validate
…
“6
Gates
to
Profitability”
1. Problem-‐SoluMon
Fitness
2. Value
ProposiMon
Fitness
3. Product-‐Market
Feasibility
4. Revenue
Model
Feasibility
5. Resource-‐Based
Feasibility
6. Business
Model
Advantage
Rapidly
Eliminate
“Fat
Strategy”
and
Maximize
Profitability
SoluMon
Idea/Task
Problem?
15.
#QBE.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
h9p://businessmodels.ning.com
&
h9p://twi9er.com/RodKuhnKing
Problem-‐SoluMon
Fitness
Value
ProposiMon
Fitness
Product-‐Market
Feasibility
Revenue
Model
Feasibility
Resource-‐Based
Feasibility
BUSINESS
MODEL
ADVANTAGE
1
2
3
4
5
6
PROFIT
(MARGIN)
Plan
To
Do
Develop/Validate
…
“6
Gates
to
Profitability”
Rapidly
Eliminate
“Fat
Strategy”
and
Maximize
Profitability
SoluMon
Idea/Task
16. 25
INVESTOR
QUESTIONS
(IQs)
for
BUSINESS
MODEL
PROFITABILITY
Visually
Organize,
Manage,
and
Test
Ideas
for
Improving
Business
Model
Profitability
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
h9p://businessmodels.ning.com
&
h9p://twi9er.com/RodKuhnKing
1.
Problem-‐SoluMon
Fitness
1.1
What
is
the
main
physical/intellectual/emo.onal/spiritual
task
or
Job
To
Get
Done
for
the
customer
segment
(archetype)?
1.2
What
are
the
top
3
problems,
challenges,
constraints,
barriers,
or
trade-‐offs
before/during/ader
the
Job
To
Get
Done?
1.3
What
are
features
of
the
product/service/business
model
that
resolve
the
top
3
problems
or
trade-‐offs
of
the
targeted
customer
segment
(archetype)?
2.
Value
ProposiMon
Fitness
2.1
What
is
the
Value
Proposi.on
for
the
customer
segment
(archetype)?
2.2
How
likely,
on
a
scale
from
0
(not
likely)
to
10
(highly
likely),
would
customers
purchase
product/service
based
on
the
Value
Proposi.on?
2.3
How
is
the
Value
Proposi.on
similar
to
that
of
compe.tors?
2.4
How
is
the
Value
Proposi.on
different
from
that
of
compe.tors?
2.5
How
does
the
(minimum
viable)
ad/product/service/business
model
embody
or
reflect
the
Value
Proposi.on?
2.6
To
what
extent
does
the
Value
Proposi.on
help
engage,
acquire,
and
retain
targeted
customers?
3.
Product-‐Market
Feasibility
3.1
What
hierarchy
of
jobs
or
tasks
does
the
product/service
help
the
targeted
customers
to
do?
3.2
What
is
the
minimum
viable
market
size,
value,
share,
and
growth
rate
for
the
product/service?
3.3
What
is
the
minimum
viable
product/service
for
delivering
the
primary
func.onality,
benefit,
or
delight
to
the
targeted
customers?
3.4
What
is
the
level
of
compa.bility
between
main
func.onality
of
the
product/service
and
the
customer’s
core
jobs
to
get
done?
3.5
Through
what
channels
and
rela.onships
would
the
product/service
be
delivered
to
the
targeted
customers?
3.6
What
are
customer
experiences
as
well
as
level
of
loyalty
(Net
Promoter
Score)
for
the
product/service?
4.
Revenue
Model
Feasibility
4.1
How
does
the
business
make
money:
What
are
minimum
revenue
streams
and
volume
of
revenue
for
the
business?
4.2
How
does
the
business
increase
revenue
as
well
as
customer
value
(experience)
and
loyalty?
4.3
What
are
alterna.ve
means
such
as
profit,
revenue,
and
business
model
pakerns
by
which
the
business
can
increase
(recurring)
revenue?
5.
Resource-‐Based
Feasibility
5.1
What
physical/intellectual/emo.onal/spiritual
resources
and
competences
of
the
business
model
are
valuable,
rare,
inimitable,
and
non-‐subs.tutable?
5.2
What
is
the
cost
structure
as
well
as
cost
of
resources
for
(a
minimum
viable)
business
model?
6.
Business
Model
Advantage
6.1
What
is
the
profit
margin
(Return
On
Investment)
for
the
business
model?
6.2
What
are
the
compe..ve
strategy
and
tac.cs
(including
switching
costs
and
network
effects)
for
the
business
model?
6.3
What
is
the
trade-‐off
of
the
compe..ve
strategy
or
business
model?
6.4
How
disrup.ve
and
scalable
is
the
business
model?
6.5
How
does
the
business
con.nuously
discover
and
solve
Big
Urgent
Market
Problems
(BUMPs)
especially
in
an
environment
of
great
uncertainty?
17. Lean
Business
Model
Canvas
A
One-‐page
Tool
for
Visually
Organizing
and
Managing
Responses
to
The
25
Investor
Ques:ons
for
Business
Model
Profitability
18. TOPICS
FOR
STORY
OF
LEAN
BUSINESS
MODEL
CANVAS
Holis:cally
Document,
Present,
and
Manage
Organiza:onal
Success
(Failure)
in
Business
and
Life
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
h9p://businessmodels.ning.com
&
h9p://twi9er.com/RodKuhnKing
Lean
Business
Model
Canvas
=
Lean
Canvas
+
Business
Model
Canvas
Lean
Canvas
Business
Model
Canvas
q Problem
q SoluMon
q Key
Metrics
q Profit
(Value)
q Cost
Structure
q Revenue
Streams
q Value
ProposiMons
q Channels
q Customer
Segments
q Unfair
Advantage
q Key
Partners
q Key
Resources
q Key
AcMviMes
q Customer
RelaMonships
Problem
Finding
&
Solving/Performance
Management
Business
Model
Visualiza:on,
Resources,
and
Viability
19.
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
h9p://businessmodels.ning.com
&
h9p://twi9er.com/RodKuhnKing
Problem
Pain:
(Un)Known
RED
OCEAN
BLUE
OCEAN
SoluMon
Gain:
(Un)Known
Business
Model
Business
Model
Before
Aaer
Key
Metrics
Lean
Business
Model
Canvas
Source:
Based
on
Business
Model
Canvas
-‐
hbp://en.wikipedia.org/wiki/Business_Model_Canvas
&
Lean
Canvas
-‐
hbp://prac:cetrumpstheory.com/2012/02/why-‐lean-‐canvas/
Job
To
Get
Done/Experience
(Journey:
Strategy/Execu.on)
Lean
Business
Model
Canvas
1a
1b
1c
20.
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
h9p://businessmodels.ning.com
&
h9p://twi9er.com/RodKuhnKing
Problem
Pain:
(Un)Known
RED
OCEAN
BLUE
OCEAN
SoluMon
Gain:
(Un)Known
Business
Model
Business
Model
Before
Aaer
Business
Model
(System)
Key
Metrics
Lean
Business
Model
Canvas
Source:
Based
on
Business
Model
Canvas
-‐
hbp://en.wikipedia.org/wiki/Business_Model_Canvas
&
Lean
Canvas
-‐
hbp://prac:cetrumpstheory.com/2012/02/why-‐lean-‐canvas/
VALUE
CREATION
(Enterprise
Engine)
VALUE
DELIVERY
(Customer
Growth
Engine)
VALUE
CAPTURE/SHARING
(Value
Engine)
KP
KA
VP
CR
CS
C$
P$
KR
CH
R$
BUSINESS
MODEL
ENVIRONMENT
(Compe..ve/Unfair
Advantage)
Lean
Business
Model
Canvas
Job
To
Get
Done/Experience
(Journey:
Strategy/Execu.on)
1a
1b
1c
1d
21.
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
h9p://businessmodels.ning.com
&
h9p://twi9er.com/RodKuhnKing
Problem
Pain:
(Un)Known
RED
OCEAN
BLUE
OCEAN
SoluMon
Gain:
(Un)Known
Business
Model
Business
Model
Before
Aaer
Business
Model
(System)
Key
Metrics
Lean
Business
Model
Canvas
Source:
Based
on
Business
Model
Canvas
-‐
hbp://en.wikipedia.org/wiki/Business_Model_Canvas
&
Lean
Canvas
-‐
hbp://prac:cetrumpstheory.com/2012/02/why-‐lean-‐canvas/
VALUE
CREATION
(Enterprise
Engine)
VALUE
DELIVERY
(Customer
Growth
Engine)
VALUE
CAPTURE/SHARING
(Value
Engine)
KP
KA
VP
CR
CS
C$
P$
KR
CH
R$
BUSINESS
MODEL
ENVIRONMENT
(Compe..ve/Unfair
Advantage)
Lean
Business
Model
Canvas
Job
To
Get
Done/Experience
(Journey:
Strategy/Execu.on)
1a
1b
1c
3a
2b
2a
3b
3d
0
3c
4b
4a
5b
5a
5c
6
1d
22.
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
h9p://businessmodels.ning.com
&
h9p://twi9er.com/RodKuhnKing
Problem
Pain:
(Un)Known
RED
OCEAN
BLUE
OCEAN
SoluMon
Gain:
(Un)Known
Business
Model
Business
Model
Before
Aaer
Business
Model
(System)
Key
Metrics
Lean
Business
Model
Canvas
Source:
Based
on
Business
Model
Canvas
-‐
hbp://en.wikipedia.org/wiki/Business_Model_Canvas
&
Lean
Canvas
-‐
hbp://prac:cetrumpstheory.com/2012/02/why-‐lean-‐canvas/
VALUE
CREATION
(Enterprise
Engine)
VALUE
DELIVERY
(Customer
Growth
Engine)
VALUE
CAPTURE/SHARING
(Value
Engine)
KP
KA
VP
CR
CS
C$
P$
KR
CH
R$
BUSINESS
MODEL
ENVIRONMENT
(Compe..ve/Unfair
Advantage)
Lean
Business
Model
Canvas
Job
To
Get
Done/Experience
(Journey:
Strategy/Execu.on)
23. DramaMc
Story
Canvas
Holis:cally
Document,
Present,
and
Manage
Ideas
for
Organiza:onal
Success
24. DRAMATIC
STORY
CANVAS
Holis:cally
Document,
Present,
and
Manage
Ideas
for
Organiza:onal
Success
(Failure)
in
Business
and
Life
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
h9p://businessmodels.ning.com
&
h9p://twi9er.com/RodKuhnKing
Problem
Pain:
(Un)Known
RED
OCEAN
BLUE
OCEAN
SoluMon
Gain:
(Un)Known
Business
Model
Business
Model
Before
Aaer
Job
To
Get
Done/Experience
(Journey:
Strategy/Execu.on)
25. Business
Model
Storyboard
A
One-‐page
Tool
for
Documen:ng
and
Checking
the
Logic
of
a
Business
Model
26.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
h9p://businessmodels.ning.com
&
h9p://twi9er.com/RodKuhnKing
ENTERPRISE
ENGINE
CUSTOMER
GROWTH
ENGINE
VALUE
ENGINE
delivers
requires
drives
requires
Product/Value
ProposiMon
Channels
&
RelaMonships
Customer/Job-‐To-‐Get-‐Done
require(s)
require(s)
Inputs/Partners
Internal
Resources
Processes/AcMviMes
require(s)
affect(s)
require(s)
deliver(s)
Cost
(Pain)
Revenue
(Delight)
PROFIT
(VALUE)
requires
drive(s)
delights
delight(s)
delight(s)
(Problem-‐Solu.on
Fit;
Product-‐Market
Fit)
Job-‐To-‐
Get-‐Done
Create
Value
Deliver
Value
Capture/Share
Value
BUSINESS
MODEL
STORYBOARD
Visualize
the
Building
Blocks
and
Norma:ve
Logic
of
a
Business
Model
27.
#VPGen.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
h9p://businessmodels.ning.com
&
h9p://twi9er.com/RodKuhnKing
ENTERPRISE
ENGINE:
Value
Crea:on
(Reduce
Cost)
CUSTOMER
GROWTH
ENGINE:
Value
Delivery
(Increase
Revenue)
Inputs/Partners
q Co-‐crea.on;
Social
Media
q Open
Source
Collabora.on
q Crowd-‐funding/sourcing
q Frac.onaliza.on/Co-‐owner
q Investor/Sponsor/Donor
q Mergers
&
Acquisi.ons
Internal
Resources
(Physical/Intellectual/Emo:onal/
Spiritual
Resources)
q Creator;
Broker;
Landlord
q Peer-‐to-‐Peer
Planorm
q Facilitated
Network
q Patents
(“Fences”;
Barriers)
Processes/AcMviMes
q Opera.onal
Excellence;
JIT
q Automa.on
(Self-‐service/DIY)
q Gamifica.on;
Digitaliza.on
q Ecosystem
Management
q Problem
Solving;
Consul.ng
q Compe..ve
Strategies
Product/Value
ProposiMon
q Asset
Sale/Direct
Sale
q Product
Leadership/Extension
q Used/2nd
Hand
Product;
Bargain
q Customiza.on
(Value
Factors)
q Bundling/Unbundling
q Product/Sodware
as
a
Service
Channels
&
RelaMonships
q Offline/Online;
(In)direct
Sale
q Franchise;
Licensing;
Affiliates
q Distributor;
Disintermediator
q Ad
Network;
Brand
Mul.plier
q Aggrega.on/Disaggrega.on
q Auc.on/Reverse
Auc.on
Customer/Job-‐To-‐Get-‐Done
q Customer
In.macy/Loyalty
q B2B;
B2C
q Long
Tail;
Community
(Hub)
q Two-‐sided
Market
(Segments)
q Mul.-‐sided
Market
(Planorm)
q Luxury/Mass
Market/Niche
Cost
(Pain)
q Outsourcing;
Specializa.on
q Group
Deals
q Lending/Ren.ng/Leasing
q Cross-‐subsidiza.on
q Frac.onaliza.on/Co-‐owner
Revenue
(Delight)
q Pre-‐payment;
Amor.za.on
q Discount;
Dynamic
Pricing
q Razor
Blade
(“Bait
&
Switch”)
q Usage
Fee;
Subscrip.on
Fee
q Tiered
Payment;
Freemium
q Dona.on;
Free
PROFIT
(VALUE)
q Shared
Value
(Profit)
q Transient
Compe..ve
Adv.
q Sustainable
Compe..ve
Adv.
q Red
Ocean;
Low
Cost/Margin
q Blue
Ocean;
Luxury
Spot
q Disrup.on/Lean
Spot
VALUE
ENGINE:
Value
Sharing
(Increase
Profit)
51
BUSINESS
PROFIT
PATTERNS
(Strategic
Choices
for
Business
Model
Profitability)
29.
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
h9p://businessmodels.ning.com
&
h9p://twi9er.com/RodKuhnKing
BUSINESS
MODEL
DASHBOARD
BUSINESS
MODEL
DASHBOARD
Outcome
(Result/Impact/Trade-‐off/SWOT)
Supersystem
Region/Gov./
NGOs
Influencers/
Media
Non-‐Customers
(Prospects)
PESTLIED
Events/Trends
Environment
(Market/Industry)
Suppliers
Channels/
Rela.onships
(In)Direct
Compe.tors
New
Entrants
(Startups)
Customers
System
(Enterprise)
Input
Processor
Output
Feedback
The
3
Levels
of
Business
Model
Performance
30.
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
h9p://businessmodels.ning.com
&
h9p://twi9er.com/RodKuhnKing
ENVIRONMENT
(Market/Industry)
SYSTEM
(Enterprise)
BUSINESS
MODEL
DASHBOARD
SUPERSYSTEM
Nested
System
Hierarchy
31.
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
h9p://businessmodels.ning.com
&
h9p://twi9er.com/RodKuhnKing
ENVIRONMENT
(Market/Industry)
SYSTEM
(Enterprise)
BUSINESS
MODEL
DASHBOARD
Business
Model
Ques:onnaires
for
Con:nuously
Managing,
Improving,
and
Disrup:ng
Business
Models
Business
Model
Ques:onnaire
–
Environment
(Market/Industry)
Level
Business
Model
Ques:onnaire
–
Enterprise
(System)
Level
SUPERSYSTEM
33. VALUE
ENGINE
MAP
(-‐):
PAIN:
(+):
DELIGHT:
Big
Urgent
Market
Problem
(BUMP):
…………………………………………………………………………………………………………………
Job
To
Be
Done
(Market/Goal):
………………………………………………………………………………………………………………………….
Ideal
Final
Result
(IFR):
Insanely
Great
Experience
or
Ideal
Minimum
Viable
Proposi:on
(MVP)
Low
(1)
High
(10)
Low
(1)
High
(10)
34. VALUE
ENGINE
MAP
for
Red
Ocean
DisrupMon
(ROD)
Strategy
and
TacMcs
(-‐):
PAIN:
(+):
DELIGHT:
BLUE
OCEAN
[Business
Model]
RED
OCEAN
[Business
Model]
Big
Urgent
Market
Problem
(BUMP):
…………………………………………………………………………………………………………………
Job
To
Be
Done
(Market/Goal):
………………………………………………………………………………………………………………………….
Ideal
Final
Result
(IFR):
Insanely
Great
Experience
or
Ideal
Minimum
Viable
Proposi:on
(MVP)
Low
(1)
High
(10)
Low
(1)
High
(10)
35. (-‐):
PAIN:
Cost
(+):
DELIGHT:
Differen@a@on
BLUE
OCEAN
Strategy
RED
OCEAN
Strategy
LUXURY
SPOT/
“DIFFERENTIATION”
Strategy
GREEN
OCEAN
Strategy
NO-‐MAN’S-‐ISLAND
Strategy
VOLCANO
SPOT
Strategy
SWEET
SPOT
Strategy
OASIS
SPOT/
“STUCK-‐IN-‐THE-‐MIDDLE”
Strategy
DISRUPTION
SPOT/
“LOW
COST”
Strategy
VALUE
ENGINE
MAP
of
Strategies
Big
Urgent
Market
Problem
(BUMP):
…………………………………………………………………………………………………………………
Job
To
Be
Done
(Market/Goal):
………………………………………………………………………………………………………………………….
Ideal
Final
Result
(IFR):
Insanely
Great
Experience
or
Ideal
Minimum
Viable
Proposi:on
(MVP)
Low
(1)
High
(10)
Low
(1)
High
(10)
36. (-‐):
PAIN:
Cost
(+):
DELIGHT:
Differen@a@on
BLUE
OCEAN
Customers
RED
OCEAN
Customers
LUXURY
SPOT/
“DIFFERENTIATION”
Customers
GREEN
OCEAN
Customers
NO-‐MAN’S-‐ISLAND
Customers
VOLCANO
SPOT
Customers
SWEET
SPOT
Customers
OASIS
SPOT/
“STUCK-‐IN-‐THE-‐MIDDLE”
Customers
DISRUPTION
SPOT/
“LOW
COST”/LEAN
Customers
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
Proposi:on
(MVP)
Low
(1)
High
(10)
Low
(1)
High
(10)
38. Don’t
Just
Start
a
Business
Project
With
A
Minimum
Viable
Product
(MVP).
Start
With
and
Test
the
Vision
of
A
Resona.ng
Customer
Trade-‐off
(RCT)
That
Promises
An
Awesome
Customer
Experience
(ACE).
39. In
Every
Project,
Begin
With
and
ConMnuously
Test
the
Vision
of
Delivering
An
Awesome
Customer
Experience
(ACE).
40. EXERCISE:
Lean
Strategy
Game
Plan,
test,
validate,
and
present
a
scalable
“magical”
idea/product/service/business
model/value
network
(ecosystem)
that
delivers
an
Awesome
Customer
Experience
(ACE)
in
a
given
industry
or
domain.
41.
#QBE.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
h9p://businessmodels.ning.com
&
h9p://twi9er.com/RodKuhnKing
“Smart”
Execu.on
Cycle
Doing
Outcome
Done
Plan
To
Do
Rapidly
Eliminate
“Fat
Strategy”
and
Maximize
Profitability
42.
#QBE.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
h9p://businessmodels.ning.com
&
h9p://twi9er.com/RodKuhnKing
“Smart”
Execu.on
Cycle
Doing
Outcome
Done
Plan
To
Do
Rapidly
Eliminate
“Fat
Strategy”
and
Maximize
Profitability
Problem?
43.
#QBE.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
h9p://businessmodels.ning.com
&
h9p://twi9er.com/RodKuhnKing
“Smart”
Execu.on
Cycle
Doing
Outcome
Done
Plan
To
Do
Plan,
test,
validate,
and
present
a
scalable
“magical”
idea/product/
service/business
model/value
network
(ecosystem)
that
delivers
an
Awesome
Customer
Experience
(ACE)
in
a
given
industry
or
domain.
Rapidly
Eliminate
“Fat
Strategy”
and
Maximize
Profitability
Problem?
44.
#QBE.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
h9p://businessmodels.ning.com
&
h9p://twi9er.com/RodKuhnKing
“Smart”
Execu.on
Cycle
Doing
Outcome
Done
Plan
To
Do
Plan,
test,
validate,
and
present
a
scalable
“magical”
idea/product/
service/business
model/value
network
(ecosystem)
that
delivers
an
Awesome
Customer
Experience
(ACE)
in
a
given
industry
or
domain.
Rapidly
Eliminate
“Fat
Strategy”
and
Maximize
Profitability
Awesome
Customer
Experience
(ACE)
in
given
industry/domain
Problem?