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Law	
  of	
  the	
  3-­‐Act	
  Business	
  Model	
  
Although	
  Stories,	
  Businesses,	
  Living	
  Systems,	
  and	
  Other	
  
Organiza?ons	
  Appear	
  Different	
  on	
  the	
  Surface,	
  
Every	
  Story,	
  Enterprise,	
  Living	
  System,	
  or	
  Organiza=on	
  on	
  the	
  Planet	
  
Has	
  the	
  Same	
  Fractal	
  “DNA”	
  Structure	
  Which	
  Consists	
  of	
  3	
  “Acts”	
  or	
  
Sub-­‐models:	
  
	
  
v 	
  	
  Value	
  Crea?on	
  Act	
  
v 	
  	
  Value	
  Proposi?on	
  Act	
  
v 	
  	
  Value	
  Sharing	
  (Profit)	
  Act	
  
	
  
#VPGen.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hPp://businessmodels.ning.com	
  &	
  hPp://twiPer.com/RodKuhnKing	
  
ENVIRONMENT	
  
3-­‐Act	
  Business	
  Model	
  (3BM)	
  Storyboard:	
  Bird’s	
  Eye	
  View	
   Value	
  Chain	
  &	
  Environment	
  
	
  
#VPGen.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hPp://businessmodels.ning.com	
  &	
  hPp://twiPer.com/RodKuhnKing	
  
3-­‐Act	
  Business	
  Model	
  
Create	
  Value	
   Deliver	
  Value	
   Share	
  (Capture)	
  Value	
  CORE	
  JOBS:	
  
VALUE	
  
CREATION	
  
MODEL	
  
VALUE	
  
PROPOSITION	
  
MODEL	
  
VALUE	
  SHARING	
  
(PROFIT)	
  
MODEL	
  
HOW?	
   WHAT?	
   WHY?	
  
 
#VPGen.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hPp://businessmodels.ning.com	
  &	
  hPp://twiPer.com/RodKuhnKing	
  
3-­‐ACT	
  BUSINESS	
  MODEL	
  OF	
  
Cinderella’s	
  Fairy	
  Godmother	
  
VALUE	
  CREATION	
  
ACT	
  
VALUE	
  PROPOSITION	
  
ACT	
  
VALUE	
  SHARING	
  
ACT	
  
ENVIRONMENT	
  
Universal	
  (De)Constructor	
  of	
  
Stories,	
  Systems,	
  and	
  	
  
Business	
  Models	
  
 
#VPGen.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hPp://businessmodels.ning.com	
  &	
  hPp://twiPer.com/RodKuhnKing	
  
VALUE	
  CREATION	
  
ACT	
  
VALUE	
  PROPOSITION	
  
ACT	
  
VALUE	
  SHARING	
  
ACT	
  
3-­‐ACT	
  BUSINESS	
  MODEL	
  OF	
  
Cinderella’s	
  Fairy	
  Godmother	
  
Universal	
  (De)Constructor	
  of	
  
Stories,	
  Systems,	
  and	
  	
  
Business	
  Models	
  
 
#VPGen.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hPp://businessmodels.ning.com	
  &	
  hPp://twiPer.com/RodKuhnKing	
  
VALUE	
  CREATION	
  
ACT	
  
VALUE	
  PROPOSITION	
  
ACT	
  
Inputs	
  
q  Pumpkin	
  (Golden	
  Carriage)	
  
q  Mice	
  (Horses)	
  
q  Rat	
  (Coachman)	
  
q  Lizards	
  (Footmen)	
  
Internal	
  Resources	
  
q  Fairy	
  Godmother	
  
q  Magic	
  wand	
  
q  Magic	
  power;	
  spells	
  
	
  
	
  
	
  
Processes	
  
q  Magical	
  transforma=on	
  of	
  objects	
  
q  Make	
  apparently	
  impossible	
  
dreams	
  come	
  true	
  
	
  
	
  
Output	
  
q  Magical	
  service	
  (magically	
  transform-­‐
ing	
  mundane	
  objects:	
  Cinderella’s	
  rags	
  
are	
  transformed	
  into	
  a	
  beauTful	
  
jewelled	
  gown	
  complete	
  with	
  magic	
  
slippers	
  as	
  well	
  as	
  golden	
  carriage,	
  
horses,	
  coachman,	
  and	
  footmen)	
  
Channels	
  &	
  Rela?onships	
  
q  “Invisible	
  Teleporta=on	
  Medium/
Cloud”	
  
q  Magical	
  Appearance	
  
q  Helper	
  (On	
  Demand)	
  
	
  
Customer-­‐Protagonist	
  
q  Cinderella:	
  Beau=ful	
  girl;	
  
	
  	
  	
  	
  	
  	
  mother	
  has	
  died;	
  now	
  lives	
  with	
  
	
  	
  	
  	
  	
  	
  wicked	
  stepmom	
  and	
  2	
  ugly	
  stepsisters	
  
q  Cinderella	
  is	
  being	
  badly	
  treated	
  
q  Goal:	
  Wants	
  to	
  go	
  to	
  the	
  Prince’s	
  ball	
  
q  If	
  she	
  goes	
  to	
  ball,	
  be	
  back	
  by	
  12am	
  
Pain	
  
q  Cinderella’s	
  daily	
  suffers	
  at	
  hands	
  
of	
  wicked	
  stepmother	
  and	
  2	
  
stepsisters	
  
q  Sleeps	
  in	
  the	
  kitchen’s	
  fireplace	
  to	
  
get	
  warmth	
  at	
  home	
  
q  Has	
  to	
  leave	
  the	
  ball	
  by	
  12am	
  
Delight	
  
q  Cinderella	
  totally	
  captures	
  	
  
	
  	
  	
  	
  	
  	
  the	
  a[en=on	
  and	
  heart	
  of	
  
	
  	
  	
  	
  	
  	
  the	
  Prince	
  at	
  the	
  ball	
  
	
  	
  	
  
q  Cinderella	
  marries	
  the	
  Prince	
  	
  and	
  
lives	
  happily	
  ever	
  aer	
  in	
  a	
  palace	
  
Value	
  
q  Greater	
  happiness	
  for	
  Cinderella	
  
q  “Beauty	
  is	
  a	
  treasure	
  but	
  
graciousness	
  is	
  priceless”.	
  
q  A	
  great	
  help	
  to	
  the	
  disadvantaged	
  
or	
  people	
  at	
  the	
  boVom	
  of	
  the	
  
pyramid	
  
VALUE	
  SHARING	
  
ACT	
  
3-­‐ACT	
  BUSINESS	
  MODEL	
  OF	
  
Cinderella’s	
  Fairy	
  Godmother	
  
Example:	
  
Social	
  Enterprise	
  
Universal	
  (De)Constructor	
  of	
  
Stories,	
  Systems,	
  and	
  	
  
Business	
  Models	
  
 
#VPGen.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hPp://businessmodels.ning.com	
  &	
  hPp://twiPer.com/RodKuhnKing	
  
VALUE	
  CREATION	
  
ACT	
  
VALUE	
  PROPOSITION	
  
ACT	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
3-­‐ACT	
  BUSINESS	
  MODEL	
  
(Blank	
  Template	
  for	
  MulTlevel	
  Business	
  Model)	
  
VALUE	
  SHARING	
  
ACT	
  
Blank	
  Template	
  for	
  Strategic	
  
Business	
  Model	
  Management	
  	
  
Universal	
  (De)Constructor	
  of	
  
Stories,	
  Systems,	
  and	
  	
  
Business	
  Models	
  
 
#VPGen.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hPp://businessmodels.ning.com	
  &	
  hPp://twiPer.com/RodKuhnKing	
  
VALUE	
  CREATION	
  
ACT	
  
VALUE	
  PROPOSITION	
  
ACT	
  
Inputs	
  
	
  
	
  
	
  
	
  
Internal	
  Resources	
  
	
  
	
  
	
  
	
  
Processes	
  
	
  
	
  
	
  
	
  
Output	
  
	
  
	
  
	
  
	
  
Channels	
  &	
  Rela?onships	
  
	
  
	
  
	
  
	
  
Customer-­‐Protagonist	
  
	
  
	
  
	
  
	
  
Pain	
  
	
  
	
  
	
  
	
  
Delight	
  
	
  
	
  
	
  
	
  
Value	
  
	
  
	
  
	
  
	
  
VALUE	
  SHARING	
  
ACT	
  
Template	
  for	
  Strategic	
  
Business	
  Model	
  Management	
  	
   3-­‐ACT	
  BUSINESS	
  MODEL	
  
(Annotated	
  MulTlevel	
  Business	
  Model)	
  
Universal	
  (De)Constructor	
  of	
  
Stories,	
  Systems,	
  and	
  	
  
Business	
  Models	
  
 
#VPGen.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hPp://businessmodels.ning.com	
  &	
  hPp://twiPer.com/RodKuhnKing	
  
3-­‐ACT	
  BUSINESS	
  MODEL	
  
For	
  Apple’s	
  Classic	
  iPod	
  
VALUE	
  CREATION	
  
ACT	
  
VALUE	
  PROPOSITION	
  
ACT	
  
VALUE	
  SHARING	
  
ACT	
  
ENVIRONMENT	
  
Universal	
  (De)Constructor	
  of	
  
Stories,	
  Systems,	
  and	
  	
  
Business	
  Models	
  
 
#VPGen.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hPp://businessmodels.ning.com	
  &	
  hPp://twiPer.com/RodKuhnKing	
  
3-­‐ACT	
  BUSINESS	
  MODEL	
  
For	
  Apple’s	
  Classic	
  iPod	
  
VALUE	
  CREATION	
  
ACT	
  (SUB-­‐MODEL)	
  
VALUE	
  PROPOSITION	
  
ACT	
  (SUB-­‐MODEL)	
  
VALUE	
  SHARING	
  
ACT	
  (SUB-­‐MODEL)	
  
Inputs/Partners	
  
q Original	
  Equipment	
  Manu.	
  
q Record	
  Companies	
  
	
  
	
  
	
  
Internal	
  Resources	
  
q Staff	
  
q Brand	
  
	
  
	
  
	
  
Processes/Ac?vi?es	
  
q Hardware	
  Design	
  
q Soware	
  Design	
  
q Marke=ng	
  
	
  
	
  
Product/Value	
  Proposi?on	
  
q iPod	
  Hardware	
  
q “A	
  Thousand	
  Songs	
  in	
  Your	
  
Pocket”	
  
Channels	
  &	
  Rela?onships	
  
q www.apple.com	
  
q Apple	
  Retail	
  Stores	
  
q iTunes	
  Store	
  
q Big	
  Box	
  Retailers	
  
	
  
Customer/Job-­‐To-­‐Get-­‐Done	
  
q Luxury	
  Spo[er	
  
q Mass	
  Market	
  
q Job:	
  Listen	
  to	
  Music	
  
q Constraints:	
  Bulky	
  music	
  players;	
  
small	
  storage	
  for	
  songs;	
  
	
  	
  	
  	
  	
  difficulty	
  in	
  organizing	
  songs	
  
Pain:	
  Cost	
  
Items	
  
q Employees	
  
q Manufacturing	
  
q Marke=ng	
  &	
  Sales	
  
	
  
Delight:	
  Revenue	
  
Items	
  (Sources)	
  
q iPod	
  Hardware	
  
q iTunes	
  Store	
  
q Commissions	
  
	
  
Value:	
  Profit	
  
	
  
	
  
	
  
	
  
Example:	
  
Commercial	
  Enterprise	
  
Universal	
  (De)Constructor	
  of	
  
Stories,	
  Systems,	
  and	
  	
  
Business	
  Models	
  
APPENDIX	
  
	
  
	
  
3-­‐Act	
  Business	
  Model	
  Storyboard	
  
For	
  
Enterprise	
  Architecture	
  
 
#VPGen.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hPp://businessmodels.ning.com	
  &	
  hPp://twiPer.com/RodKuhnKing	
  
VALUE	
  CREATION	
  
ACT	
  (SUB-­‐MODEL)	
  
VALUE	
  PROPOSITION	
  
ACT	
  (SUB-­‐MODEL)	
  
Inputs	
  
	
  
	
  
	
  
	
  
	
  
Internal	
  Resources	
  
	
  
	
  
	
  
	
  
	
  
Processes	
  
	
  
	
  
	
  
	
  
	
  
Output	
  
	
  
	
  
	
  
	
  
	
  
Channels	
  &	
  Rela?onships	
  
	
  
	
  
	
  
	
  
	
  
Customer-­‐Protagonist	
  
	
  
	
  
	
  
	
  
	
  
Pain	
  
	
  
	
  
	
  
	
  
	
  
Delight	
  
	
  
	
  
	
  
	
  
	
  
Value	
  
	
  
	
  
	
  
	
  
	
  
VALUE	
  SHARING	
  
ACT	
  (SUB-­‐MODEL)	
  
Source	
  of	
  Informa=on:	
  
Nick	
  Malik’s	
  Enterprise	
  Business	
  
MoTvaTon	
  Model;	
  	
  
see	
  h[p://goo.gl/xSgO0)	
  
Business	
  Partner	
  (BP)	
  
Partner	
  Type	
  (PT)	
  
3-­‐ACT	
  BUSINESS	
  MODEL	
  
For	
  Enterprise	
  Architecture	
  
Resource/Asset	
  (RA)	
  
Required	
  Competency	
  
(RC)	
  
Value	
  Proposi=on	
  (VP)	
  
Products	
  &	
  Services	
  (PS)	
  
Customer	
  Demands	
  &	
  
Rela=onships	
  (CDR)	
  
Channels	
  (CH)	
  
Customer	
  (C)	
  
Customer	
  Type	
  (CT)	
  
Cost	
  Model	
  (CM)	
  
Revenue	
  Model	
  (RM)	
  
Profit	
  Model	
  (PM)	
  
Universal	
  (De)Constructor	
  of	
  
Stories,	
  Systems,	
  and	
  	
  
Business	
  Models	
  
3-­‐ACT	
  
BUS.	
  
MODEL	
  
VALUE	
  CREATION	
  ACT	
  
(SUB-­‐MODEL)	
  
VALUE	
  PROPOSITION	
  ACT	
  
(SUB-­‐MODEL)	
  
VALUE	
  SHARING	
  ACT	
  
(SUB-­‐MODEL)	
  
PT	
   BP	
   RA	
   RC	
   VP	
   PS	
   CDR	
   CH	
   C	
   CT	
   CM	
   RM	
   PM	
  
PT	
   -­‐	
   affects	
  	
  
-­‐>	
  	
  
affects	
  	
  
-­‐>	
  
BP	
   behaves	
  
as	
  -­‐>	
  
-­‐	
  
RA	
   -­‐	
   impacts	
  	
  
-­‐>	
  	
  
impacts	
  	
  
-­‐>	
  	
  
impacts	
  	
  
-­‐>	
  	
  
RC	
   demand
-­‐>	
  	
  
-­‐	
   delivers	
  
-­‐>	
  
VP	
   drives	
  	
  	
  	
  
-­‐>	
  
-­‐	
   targets	
  	
  	
  	
  
-­‐>	
  
PS	
   -­‐	
   saTsfies	
  	
  
-­‐>	
  
targets	
  	
  
-­‐>	
  
CDR	
   -­‐	
  
CH	
   -­‐	
   targets	
  	
  
-­‐>	
  
drives	
  	
  	
  	
  
-­‐>	
  
drives	
  	
  	
  	
  
-­‐>	
  
drives	
  	
  	
  	
  
-­‐>	
  
C	
   -­‐	
   behaves	
  
as	
  à	
  
CT	
   has	
  	
  
-­‐>	
  	
  
-­‐	
  
CM	
   -­‐	
  
RM	
   -­‐	
  
PM	
   -­‐	
  
	
  
#VPGen.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hPp://businessmodels.ning.com	
  &	
  hPp://twiPer.com/RodKuhnKing	
  
From	
  	
  -­‐>	
  To	
  
3-­‐ACT	
  BUSINESS	
  MODEL	
  STORYBOARD	
  (“Concept	
  Map”/Input-­‐Output	
  Matrix)	
  for	
  Enterprise	
  Architecture	
  
(Source	
  of	
  Informa=on:	
  Nick	
  Malik’s	
  Enterprise	
  Business	
  MoTvaTon	
  Model;	
  see	
  h[p://goo.gl/xSgO0)	
  
Acknowledgement	
  
Topics	
  for	
  Describing	
  the	
  Business	
  Model	
  in	
  Enterprise	
  Architecture	
  (“yellow	
  
boxes”)	
  are	
  obtained	
  from	
  Nick	
  Malik’s	
  Enterprise	
  Business	
  Mo=va=on	
  
Model;	
  see	
  h[p://goo.gl/xSgO0	
  
	
  
The	
  topic	
  of	
  “Geographies	
  and	
  Locales”	
  has	
  been	
  omi[ed	
  for	
  clarity.	
  

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The 3-Act Business Model Storyboard for Cinderella's Fairy Godmother, Apple's IPod, and Enterprise Architecture

  • 1. Law  of  the  3-­‐Act  Business  Model   Although  Stories,  Businesses,  Living  Systems,  and  Other   Organiza?ons  Appear  Different  on  the  Surface,   Every  Story,  Enterprise,  Living  System,  or  Organiza=on  on  the  Planet   Has  the  Same  Fractal  “DNA”  Structure  Which  Consists  of  3  “Acts”  or   Sub-­‐models:     v     Value  Crea?on  Act   v     Value  Proposi?on  Act   v     Value  Sharing  (Profit)  Act     #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hPp://businessmodels.ning.com  &  hPp://twiPer.com/RodKuhnKing  
  • 2. ENVIRONMENT   3-­‐Act  Business  Model  (3BM)  Storyboard:  Bird’s  Eye  View   Value  Chain  &  Environment     #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hPp://businessmodels.ning.com  &  hPp://twiPer.com/RodKuhnKing   3-­‐Act  Business  Model   Create  Value   Deliver  Value   Share  (Capture)  Value  CORE  JOBS:   VALUE   CREATION   MODEL   VALUE   PROPOSITION   MODEL   VALUE  SHARING   (PROFIT)   MODEL   HOW?   WHAT?   WHY?  
  • 3.   #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hPp://businessmodels.ning.com  &  hPp://twiPer.com/RodKuhnKing   3-­‐ACT  BUSINESS  MODEL  OF   Cinderella’s  Fairy  Godmother   VALUE  CREATION   ACT   VALUE  PROPOSITION   ACT   VALUE  SHARING   ACT   ENVIRONMENT   Universal  (De)Constructor  of   Stories,  Systems,  and     Business  Models  
  • 4.   #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hPp://businessmodels.ning.com  &  hPp://twiPer.com/RodKuhnKing   VALUE  CREATION   ACT   VALUE  PROPOSITION   ACT   VALUE  SHARING   ACT   3-­‐ACT  BUSINESS  MODEL  OF   Cinderella’s  Fairy  Godmother   Universal  (De)Constructor  of   Stories,  Systems,  and     Business  Models  
  • 5.   #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hPp://businessmodels.ning.com  &  hPp://twiPer.com/RodKuhnKing   VALUE  CREATION   ACT   VALUE  PROPOSITION   ACT   Inputs   q  Pumpkin  (Golden  Carriage)   q  Mice  (Horses)   q  Rat  (Coachman)   q  Lizards  (Footmen)   Internal  Resources   q  Fairy  Godmother   q  Magic  wand   q  Magic  power;  spells         Processes   q  Magical  transforma=on  of  objects   q  Make  apparently  impossible   dreams  come  true       Output   q  Magical  service  (magically  transform-­‐ ing  mundane  objects:  Cinderella’s  rags   are  transformed  into  a  beauTful   jewelled  gown  complete  with  magic   slippers  as  well  as  golden  carriage,   horses,  coachman,  and  footmen)   Channels  &  Rela?onships   q  “Invisible  Teleporta=on  Medium/ Cloud”   q  Magical  Appearance   q  Helper  (On  Demand)     Customer-­‐Protagonist   q  Cinderella:  Beau=ful  girl;              mother  has  died;  now  lives  with              wicked  stepmom  and  2  ugly  stepsisters   q  Cinderella  is  being  badly  treated   q  Goal:  Wants  to  go  to  the  Prince’s  ball   q  If  she  goes  to  ball,  be  back  by  12am   Pain   q  Cinderella’s  daily  suffers  at  hands   of  wicked  stepmother  and  2   stepsisters   q  Sleeps  in  the  kitchen’s  fireplace  to   get  warmth  at  home   q  Has  to  leave  the  ball  by  12am   Delight   q  Cinderella  totally  captures                the  a[en=on  and  heart  of              the  Prince  at  the  ball         q  Cinderella  marries  the  Prince    and   lives  happily  ever  aer  in  a  palace   Value   q  Greater  happiness  for  Cinderella   q  “Beauty  is  a  treasure  but   graciousness  is  priceless”.   q  A  great  help  to  the  disadvantaged   or  people  at  the  boVom  of  the   pyramid   VALUE  SHARING   ACT   3-­‐ACT  BUSINESS  MODEL  OF   Cinderella’s  Fairy  Godmother   Example:   Social  Enterprise   Universal  (De)Constructor  of   Stories,  Systems,  and     Business  Models  
  • 6.   #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hPp://businessmodels.ning.com  &  hPp://twiPer.com/RodKuhnKing   VALUE  CREATION   ACT   VALUE  PROPOSITION   ACT                                                                             3-­‐ACT  BUSINESS  MODEL   (Blank  Template  for  MulTlevel  Business  Model)   VALUE  SHARING   ACT   Blank  Template  for  Strategic   Business  Model  Management     Universal  (De)Constructor  of   Stories,  Systems,  and     Business  Models  
  • 7.   #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hPp://businessmodels.ning.com  &  hPp://twiPer.com/RodKuhnKing   VALUE  CREATION   ACT   VALUE  PROPOSITION   ACT   Inputs           Internal  Resources           Processes           Output           Channels  &  Rela?onships           Customer-­‐Protagonist           Pain           Delight           Value           VALUE  SHARING   ACT   Template  for  Strategic   Business  Model  Management     3-­‐ACT  BUSINESS  MODEL   (Annotated  MulTlevel  Business  Model)   Universal  (De)Constructor  of   Stories,  Systems,  and     Business  Models  
  • 8.   #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hPp://businessmodels.ning.com  &  hPp://twiPer.com/RodKuhnKing   3-­‐ACT  BUSINESS  MODEL   For  Apple’s  Classic  iPod   VALUE  CREATION   ACT   VALUE  PROPOSITION   ACT   VALUE  SHARING   ACT   ENVIRONMENT   Universal  (De)Constructor  of   Stories,  Systems,  and     Business  Models  
  • 9.   #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hPp://businessmodels.ning.com  &  hPp://twiPer.com/RodKuhnKing   3-­‐ACT  BUSINESS  MODEL   For  Apple’s  Classic  iPod   VALUE  CREATION   ACT  (SUB-­‐MODEL)   VALUE  PROPOSITION   ACT  (SUB-­‐MODEL)   VALUE  SHARING   ACT  (SUB-­‐MODEL)   Inputs/Partners   q Original  Equipment  Manu.   q Record  Companies         Internal  Resources   q Staff   q Brand         Processes/Ac?vi?es   q Hardware  Design   q Soware  Design   q Marke=ng       Product/Value  Proposi?on   q iPod  Hardware   q “A  Thousand  Songs  in  Your   Pocket”   Channels  &  Rela?onships   q www.apple.com   q Apple  Retail  Stores   q iTunes  Store   q Big  Box  Retailers     Customer/Job-­‐To-­‐Get-­‐Done   q Luxury  Spo[er   q Mass  Market   q Job:  Listen  to  Music   q Constraints:  Bulky  music  players;   small  storage  for  songs;            difficulty  in  organizing  songs   Pain:  Cost   Items   q Employees   q Manufacturing   q Marke=ng  &  Sales     Delight:  Revenue   Items  (Sources)   q iPod  Hardware   q iTunes  Store   q Commissions     Value:  Profit           Example:   Commercial  Enterprise   Universal  (De)Constructor  of   Stories,  Systems,  and     Business  Models  
  • 10. APPENDIX       3-­‐Act  Business  Model  Storyboard   For   Enterprise  Architecture  
  • 11.   #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hPp://businessmodels.ning.com  &  hPp://twiPer.com/RodKuhnKing   VALUE  CREATION   ACT  (SUB-­‐MODEL)   VALUE  PROPOSITION   ACT  (SUB-­‐MODEL)   Inputs             Internal  Resources             Processes             Output             Channels  &  Rela?onships             Customer-­‐Protagonist             Pain             Delight             Value             VALUE  SHARING   ACT  (SUB-­‐MODEL)   Source  of  Informa=on:   Nick  Malik’s  Enterprise  Business   MoTvaTon  Model;     see  h[p://goo.gl/xSgO0)   Business  Partner  (BP)   Partner  Type  (PT)   3-­‐ACT  BUSINESS  MODEL   For  Enterprise  Architecture   Resource/Asset  (RA)   Required  Competency   (RC)   Value  Proposi=on  (VP)   Products  &  Services  (PS)   Customer  Demands  &   Rela=onships  (CDR)   Channels  (CH)   Customer  (C)   Customer  Type  (CT)   Cost  Model  (CM)   Revenue  Model  (RM)   Profit  Model  (PM)   Universal  (De)Constructor  of   Stories,  Systems,  and     Business  Models  
  • 12. 3-­‐ACT   BUS.   MODEL   VALUE  CREATION  ACT   (SUB-­‐MODEL)   VALUE  PROPOSITION  ACT   (SUB-­‐MODEL)   VALUE  SHARING  ACT   (SUB-­‐MODEL)   PT   BP   RA   RC   VP   PS   CDR   CH   C   CT   CM   RM   PM   PT   -­‐   affects     -­‐>     affects     -­‐>   BP   behaves   as  -­‐>   -­‐   RA   -­‐   impacts     -­‐>     impacts     -­‐>     impacts     -­‐>     RC   demand -­‐>     -­‐   delivers   -­‐>   VP   drives         -­‐>   -­‐   targets         -­‐>   PS   -­‐   saTsfies     -­‐>   targets     -­‐>   CDR   -­‐   CH   -­‐   targets     -­‐>   drives         -­‐>   drives         -­‐>   drives         -­‐>   C   -­‐   behaves   as  à   CT   has     -­‐>     -­‐   CM   -­‐   RM   -­‐   PM   -­‐     #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hPp://businessmodels.ning.com  &  hPp://twiPer.com/RodKuhnKing   From    -­‐>  To   3-­‐ACT  BUSINESS  MODEL  STORYBOARD  (“Concept  Map”/Input-­‐Output  Matrix)  for  Enterprise  Architecture   (Source  of  Informa=on:  Nick  Malik’s  Enterprise  Business  MoTvaTon  Model;  see  h[p://goo.gl/xSgO0)  
  • 13. Acknowledgement   Topics  for  Describing  the  Business  Model  in  Enterprise  Architecture  (“yellow   boxes”)  are  obtained  from  Nick  Malik’s  Enterprise  Business  Mo=va=on   Model;  see  h[p://goo.gl/xSgO0     The  topic  of  “Geographies  and  Locales”  has  been  omi[ed  for  clarity.