6	
  GATES	
  TO	
  BUSINESS	
  MODEL	
  PROFITABILITY	
  
	
  
Visually	
  Organize,	
  Manage,	
  and	
  Test	
  Ideas	...
 25	
  INVESTOR	
  QUESTIONS	
  (IQs)	
  for	
  BUSINESS	
  MODEL	
  PROFITABILITY	
  
	
  
Visually	
  Organize,	
  Manag...
Lean	
  Business	
  Model	
  Canvas	
  
A	
  One-­‐page	
  Tool	
  for	
  Visually	
  Organizing	
  and	
  Managing	
  Res...
 TOPICS	
  FOR	
  STORY	
  OF	
  LEAN	
  BUSINESS	
  MODEL	
  CANVAS	
  
	
  
HolisEcally	
  Document,	
  Present,	
  and	...
 
#4ROD.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hGp://businessmodels.ning.com	
  &	
  hGp://twiGer.com/R...
 
#4ROD.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hGp://businessmodels.ning.com	
  &	
  hGp://twiGer.com/R...
 
#4ROD.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hGp://businessmodels.ning.com	
  &	
  hGp://twiGer.com/R...
 
#4ROD.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hGp://businessmodels.ning.com	
  &	
  hGp://twiGer.com/R...
 
#4ROD.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hGp://businessmodels.ning.com	
  &	
  hGp://twiGer.com/R...
 Apple’s	
  6	
  GATES	
  TO	
  BUSINESS	
  MODEL	
  PROFITABILITY	
  for	
  the	
  Classic	
  iPod	
  
	
  
Visually	
  O...
51	
  PaGerns	
  for	
  
Business	
  Model	
  DisrupQon	
  &	
  Profitability	
  	
  
 
Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hGp://businessmodels.ning.com	
  &	
  hGp://twiGer.com/RodKuhnKing...
 
#VPGen.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hGp://businessmodels.ning.com	
  &	
  hGp://twiGer.com/...
 
#VPGen.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hGp://businessmodels.ning.com	
  &	
  hGp://twiGer.com/...
 
#VPGen.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hGp://businessmodels.ning.com	
  &	
  hGp://twiGer.com/...
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6 Gates to BUSINESS MODEL PROFITABILITY for Startups and Investors: Visually Organize, Manage, and Test Ideas for Improving Business Profitability

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As the business landscape gets more and more competitive as well as volatile, uncertain, complex, and ambiguous businesses especially startups are struggling to increase their profitability. This presentation offers a visual framework - the 6 Gates to Business Model Profitability - for systematically examining an organization's business model with a view to increasing profitability.

A hierarchy of 6 Gates of questions are presented for systematically exploring strengths, weaknesses, opportunities, and threats of a business model. A Lean Business Model Canvas is presented as a tool for visually organizing, managing, and testing ideas for increasing profitability of a business model.

Note that topics of the "6 Gates to Business Model Profitability" can be used to evaluate a business model in terms of SWOT: Strengths; Weaknesses; Opportunities; Threats. Alternatively, one could assign a single numerical value on a scale from 1 to 10 regarding the different aspects of an organization's current business model.

http://goo.gl/iq5Xz1

Published in: Business, Technology
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  • Ali, Thanks for your feedback especially on the Lean Business Model Canvas (LBMC). In business, nowadays, there is an explosion of tools for business model analysis, design, and innovation. However, what remains fixed is the set of questions for the '6 Gates for Business Model Profitability.' I think that we need to synthesize business tools as well as show connections between the diverse tools as they are referring to different aspects of a business model, that is, Questions for 6 Gates to Business Model Profitability. The Dramatic Story Canvas and the Lean Business Model Canvas are my responses to resolve the problem of 'Business Tool Explosion.' As you note, there are many ways to read and use the Lean Business Model Canvas. In time, the 'floating' possibilities would emerge in the Blue Ocean. Hopefully, we and other early adopters would help others to navigate such a Blue Ocean.
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  • Rod,
    You made the idea of the Lean Business Model Canvas (LBMC), as flowing as running water. The merging of the lean Lean Business Canvas and the Business Model Canvas (Slide 4) to get the LBMC canvas is a subtle way of having the best of the two worlds.
    Rod, you have added the two Venn diagrams on Slide 4. I guess one reason for that is simplicity. I believe there are more sound reasoning in your bag. The second point is that we have more interacting elements in the resulting canvas. Ably, you produced Slide 6 to accommodate them on page. That makes life easier. But also, we may create new possibilities that would emerge without us anticipating them. In applying the example on Slide 6, we should be aware of being very observant as well for 'floating' possibilities on the surface of the blue ocean.

    I also hope discussions on this great work would lead to emerging possibilities. Rod, thanks for sharing your mind with us..
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6 Gates to BUSINESS MODEL PROFITABILITY for Startups and Investors: Visually Organize, Manage, and Test Ideas for Improving Business Profitability

  1. 1.  6  GATES  TO  BUSINESS  MODEL  PROFITABILITY     Visually  Organize,  Manage,  and  Test  Ideas  for  Improving  Business  Model  Profitability     #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hGp://businessmodels.ning.com  &  hGp://twiGer.com/RodKuhnKing   1   2   3   4   5   6   Problem-­‐SoluQon   Fitness   Value  ProposiQon   Fitness   Product-­‐Market   Feasibility   Revenue  Model   Feasibility   Resource-­‐Based   Feasibility   BUSINESS  MODEL  ADVANTAGE  
  2. 2.  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  &  hGp://businessmodels.ning.com  &  hGp://twiGer.com/RodKuhnKing   1.  Problem-­‐SoluQon  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/aKer  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  ProposiQon  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  paerns  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?  
  3. 3. Lean  Business  Model  Canvas   A  One-­‐page  Tool  for  Visually  Organizing  and  Managing  Responses  to   The  25  Investor  QuesEons  for  Business  Model  Profitability  
  4. 4.  TOPICS  FOR  STORY  OF  LEAN  BUSINESS  MODEL  CANVAS     HolisEcally  Document,  Present,  and  Manage  OrganizaEonal  Success  (Failure)  in  Business  and  Life     #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hGp://businessmodels.ning.com  &  hGp://twiGer.com/RodKuhnKing   Lean  Business  Model  Canvas  =    Lean  Canvas  +  Business  Model  Canvas   Lean  Canvas   Business  Model  Canvas   q  Problem   q  SoluQon   q  Key  Metrics   q  Profit  (Value)   q  Cost  Structure   q  Revenue  Streams   q  Value  ProposiQons   q  Channels   q  Customer                Segments   q  Unfair  Advantage   q  Key  Partners   q  Key  Resources   q  Key  AcQviQes   q  Customer  RelaQonships   Problem  Finding  &  Solving/Performance  Management   Business  Model  VisualizaEon,  Resources,  and  Viability  
  5. 5.   #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hGp://businessmodels.ning.com  &  hGp://twiGer.com/RodKuhnKing   Problem   Pain:  (Un)Known   RED  OCEAN   BLUE  OCEAN   SoluQon   Gain:  (Un)Known   Business   Model   Business   Model   Before     AWer     Key  Metrics        Lean  Business  Model  Canvas     Source:  Based  on  Business  Model  Canvas  -­‐  hXp://en.wikipedia.org/wiki/Business_Model_Canvas  &   Lean  Canvas  -­‐  hXp://pracEcetrumpstheory.com/2012/02/why-­‐lean-­‐canvas/   Job  To  Get  Done/Experience   (Journey:  Strategy/Execu=on)   Lean  Business  Model  Canvas  
  6. 6.   #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hGp://businessmodels.ning.com  &  hGp://twiGer.com/RodKuhnKing   Problem   Pain:  (Un)Known   RED  OCEAN   BLUE  OCEAN   SoluQon   Gain:  (Un)Known   Business   Model   Business   Model   Before     AWer     Business  Model   (System)   Key  Metrics        Lean  Business  Model  Canvas     Source:  Based  on  Business  Model  Canvas  -­‐  hXp://en.wikipedia.org/wiki/Business_Model_Canvas  &   Lean  Canvas  -­‐  hXp://pracEcetrumpstheory.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)  
  7. 7.   #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hGp://businessmodels.ning.com  &  hGp://twiGer.com/RodKuhnKing   Problem   Pain:  (Un)Known   RED  OCEAN   BLUE  OCEAN   SoluQon   Gain:  (Un)Known   Business   Model   Business   Model   Before     AWer     Key  Metrics   E:  Engagement;  Experience   A:  Acquisi=on;  Ac=va=on   R:  Reten=on;  Referral;  Revenue     q  Big/clunky  music  players   q  Complex:  difficult  to  use   q  Small  song  storage   q  Ultra-­‐portable  digital   music  player   q  Simple:  easy  to  use   q  Large  song  storage   Listen  to  music  (at  home/work/outdoors)    Apple’s  Lean  Business  Model  Canvas  for  the  Classic  iPod  (2001)       Visually  Organize,  Manage,  and  Test  Ideas  for  Improving  Business  Model  Profitability   Job  To  Get  Done/Experience   (Journey:  Strategy/Execu=on)  
  8. 8.   #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hGp://businessmodels.ning.com  &  hGp://twiGer.com/RodKuhnKing   Problem   Pain:  (Un)Known   RED  OCEAN   BLUE  OCEAN   SoluQon   Gain:  (Un)Known   Business   Model   Business   Model   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)   Digital  Hub/Ecosystem  including  iTunes   Before     AWer     Business  Model   (System)   Key  Metrics   E:  Engagement;  Experience   A:  Acquisi=on;  Ac=va=on   R:  Reten=on;  Referral;  Revenue     q  Big/clunky  music  players   q  Complex:  difficult  to  use   q  Small  song  storage   q  Ultra-­‐portable  digital   music  player   q  Simple:  easy  to  use   q  Large  song  storage   Listen  to  music  (at  home/work/outdoors)    Apple’s  Lean  Business  Model  Canvas  for  the  Classic  iPod  (2001)       Visually  Organize,  Manage,  and  Test  Ideas  for  Improving  Business  Model  Profitability   Job  To  Get  Done/Experience   (Journey:  Strategy/Execu=on)  
  9. 9.   #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hGp://businessmodels.ning.com  &  hGp://twiGer.com/RodKuhnKing   Problem   Pain:  (Un)Known   RED  OCEAN   BLUE  OCEAN   SoluQon   Gain:  (Un)Known   Business   Model   Business   Model   VALUE  CREATION   (Enterprise  Engine)   VALUE  DELIVERY   (Customer  Growth  Engine)   VALUE  CAPTURE/SHARING   (Value  Engine)   KP   q  Record   companies   q  Original   Equipment   Manufactu-­‐ rers     KA   q  Hardware/ SoKware  Design   q  Marke=ng  &   Sales   VP   “A  Thousand   Songs  in   Your  Pocket”     Seamless   Music  XP     iPod   Hardware     CR   Online/Face-­‐ to-­‐Face;   Lock-­‐in     CS   Luxury   Spoer:     Listen  to   music   everywhere     C$   q  Staff/Employees   q  Manufacturing/ Infra’   q  Marke=ng  &   Sales   P$   q  High  Profit   Margin   q  Extraordinary   Profit   q  Luxury  Spot   Strategy   q  Pain:  Low   q  Delight:  High   q  Value:  High     KR   q  Staff/Employees   q  Brand/Culture   q  IP   q  Infrastructure:  IT   CH   Apple.com;   Big  Retailer/   iTunes  Store;   Retail  stores   R$   q  iPod  Hardware   q  iTunes   q  Commissions   BUSINESS  MODEL  ENVIRONMENT  (Compe==ve/Unfair  Advantage)   Digital  Hub/Ecosystem  including  iTunes   Before     AWer     Business  Model   (System)   Key  Metrics   E:  Engagement;  Experience   A:  Acquisi=on;  Ac=va=on   R:  Reten=on;  Referral;  Revenue     q  Big/clunky  music  players   q  Complex:  difficult  to  use   q  Small  song  storage   q  Ultra-­‐portable  digital   music  player   q  Simple:  easy  to  use   q  Large  song  storage   Listen  to  music  (at  home/work/outdoors)    Apple’s  Lean  Business  Model  Canvas  for  the  Classic  iPod  (2001)       Visually  Organize,  Manage,  and  Test  Ideas  for  Improving  Business  Model  Profitability   Job  To  Get  Done/Experience   (Journey:  Strategy/Execu=on)  
  10. 10.  Apple’s  6  GATES  TO  BUSINESS  MODEL  PROFITABILITY  for  the  Classic  iPod     Visually  Organize,  Manage,  and  Test  Ideas  for  Improving  Business  Model  Profitability     #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hGp://businessmodels.ning.com  &  hGp://twiGer.com/RodKuhnKing   1   2   3   4   5   6   Problem-­‐SoluQon   Fitness   Value  ProposiQon   Fitness   Product-­‐Market   Feasibility   Revenue  Model   Feasibility   Resource-­‐Based   Feasibility   BUSINESS  MODEL  ADVANTAGE   Digital  Music  Player  
  11. 11. 51  PaGerns  for   Business  Model  DisrupQon  &  Profitability    
  12. 12.   Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hGp://businessmodels.ning.com  &  hGp://twiGer.com/RodKuhnKing   ENTERPRISE   ENGINE   CUSTOMER  GROWTH   ENGINE   VALUE     ENGINE   delivers   requires   drives   requires   Product/Value  ProposiQon         Channels  &  RelaQonships         Customer/Job-­‐To-­‐Get-­‐Done         require(s)   require(s)   Inputs/Partners         Internal  Resources         Processes/AcQviQes         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  NormaEve  Logic  of  a  Business  Model  
  13. 13.   #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hGp://businessmodels.ning.com  &  hGp://twiGer.com/RodKuhnKing   ENTERPRISE  ENGINE   Value  CreaEon  (Reduce  Cost)   CUSTOMER  GROWTH  ENG.   Value  Delivery  (Increase  Rev.)   Inputs/Partners           Internal  Resources           Processes/AcQviQes           Product/Value  ProposiQon           Channels  &  RelaQonships           Customer/Job-­‐To-­‐Get-­‐Done           Cost  (Pain)           Revenue  (Delight)           PROFIT  (VALUE)           BUSINESS  MODEL  STORYBOARD   (Building  Blocks)   VALUE  ENGINE   Value  Sharing  (Increase  Profit)  
  14. 14.   #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hGp://businessmodels.ning.com  &  hGp://twiGer.com/RodKuhnKing   ENTERPRISE  ENGINE:   Value  CreaEon  (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/EmoEonal/ Spiritual  Resources)   q Creator;  Broker;  Landlord   q Peer-­‐to-­‐Peer  Planorm   q Facilitated  Network   q Patents  (“Fences”;  Barriers)     Processes/AcQviQes   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  ProposiQon   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/SoKware  as  a  Service   Channels  &  RelaQonships   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)  
  15. 15.   #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hGp://businessmodels.ning.com  &  hGp://twiGer.com/RodKuhnKing   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/EmoEonal/ Spiritual  Resources)   q Creator;  Broker;  Landlord   q Peer-­‐to-­‐Peer  Planorm   q Facilitated  Network   ü  Patents  (“Fences”;  Barriers)     Processes/AcQviQes   ü  Opera=onal  Excellence;  JIT   q Automa=on  (Self-­‐service/DIY)   q Gamifica=on;  Digitaliza=on   ü  Ecosystem  Management   q Problem  Solving;  Consul=ng   ü  Compe==ve  Strategies   Product/Value  ProposiQon   ü  Asset  Sale/Direct  Sale   ü  Product  Leadership/Extension   q Used/2nd  Hand  Product;  Bargain   q Customiza=on  (Value  Factors)   q Bundling/Unbundling   q Product/SoKware  as  a  Service   Channels  &  RelaQonships   ü  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   ü  Customer  In=macy/Loyalty   ü  B2B;  B2C   q Long  Tail;  Community  (Hub)   q Two-­‐sided  Market  (Segments)   q Mul=-­‐sided  Market  (Planorm)   ü  Luxury/Mass  Market/Niche   Cost  (Pain)   ü  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   ü  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   ü  Blue  Ocean;  Luxury  Spot   ü  Disrup=on/Lean  Spot   Apple’s  PROFIT  PATTERNS  for   Classic  iPod  (2001)   ENTERPRISE  ENGINE:   Value  CreaEon  (Reduce  Cost)   CUSTOMER  GROWTH  ENGINE:   Value  Delivery  (Increase  Revenue)   VALUE  ENGINE:   Value  Sharing  (Increase  Profit)  

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