DRAMATIC STORY CANVAS FOR APPLE: How Steve Jobs Saved Apple

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This presentation contains the template of a Dramatic Story Canvas for formulating and executing "Good Strategy" as outlined in Richard Rumelt's book, "Good Strategy. Bad Strategy." The presented template for the Dramatic Story Canvas contains the "Good Strategy" Canvas which contains the 4 topics that Rumelt considers necessary for a Good Strategy. The Dramatic Story Canvas is applied to illustrate the story of how Steve Jobs saved Apple.

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  • Dr. Ali Anani recently published his presentation on a New Metaphor for Blue Ocean Strategy. It's an interesting presentation that complements the formulation and execution of Good Strategy as well as use of the Dramatic Story Canvas. See Dr. Anani's presentation here: http://www.slideshare.net/hudali15/a-new-metaphor-for-blue-ocean-strategy
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  • Ali, Great! I look forward to getting more information on your new metaphor regarding Blue Ocean Strategy. I know it would be inspiring.
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  • Rod- Of all a sudden an idea popped up in my mind about a metaphor for implementing Blue Ocean Strategy. I have started writing it. I hope it would inspire you with at least with one idea to add to the BOS block on your inspiring canvas.
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  • Ali: I like your framing of the 'Good Strategy' Canvas as the Hero's Challenge. It's an engaging framing and it reminds of Joseph Campbell's Hero's Journey. What I especially like about the Hero's Challenge is that it evokes the paradigm of (Holistic) Problem Solving. And with description of Hero, I could further use the War Triangle the actors of whom are the Victim (Customer/Non-customer), Villain (Competitor/Persecutor), and Hero (Rescuer/Victor) to present a dramatic story. You would no doubt recognize the War Triangle as my interpretation of Karpman's Drama Triangle. One advantage of the Dramatic Story Canvas is that one could seamlessly link concepts within and between disciplines or domains. As you note, '... there is ample room for 'stretching muscles' over the canvas.' With regard to the 'Action Plan' covering all of the foundation block, my thinking is that the Action Plan reflects operational or experiential problem solving which is a more detailed (tactical) form of Strategic Problem Solving. To present this idea more clearly, I've now annotated the foundation block or sub-structure of the Good Strategy Canvas as 'Execution' (Operational/Experiential/Tactical Problem Solving) and the upper block or superstructure as 'Strategic Problem Solving.' I hope that these new annotations better justify the visual format of the Good Strategy Canvas.
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  • Rod, the hero's challenge, hurdles to be surmounted and ending are clearly demonstrated in Slide 4. All seen visually on the canvas. The three-Act structure is evident. I wonder why you extrapolated the action plan across the canvas! May be to reflect that this plan is active over the three acts of the story.
    I think there is ample room for 'stretching muscles' over the canvas. Not only in filling the canvas, but also in adding appealing graphs and drawings. I mean the beauty of the canvas is that everyone has ample room to be creative. It suits all tastes.
    As is the case, this is a lovely presentation.
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DRAMATIC STORY CANVAS FOR APPLE: How Steve Jobs Saved Apple

  1. 1.  DRAMATIC  STORY  CANVAS:  Storyboard  Template     Holis&cally  Document,  Present,  and  Manage  Organiza&onal  Success  (Failure)  in  Business  and  Life     #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hAp://businessmodels.ning.com  &  hAp://twiAer.com/RodKuhnKing   Problem   Pain:  (Un)Known   RED  OCEAN   BLUE  OCEAN   SoluOon   Gain:  (Un)Known   Business   Model   Business   Model             Before     AFer     Adap&ve  Storyboard   Job  To  Get  Done/Experience   (Journey:  Strategy/Execu=on)  
  2. 2.  DRAMATIC  STORY  CANVAS  for  FormulaOng  and  ExecuOng  “Good    Strategy”     Source:  Based  on  Rumelt,  R.P.  (2011)  Good  Strategy.  Bad  Strategy.  Crown  Business:  New  York.     #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hAp://businessmodels.ning.com  &  hAp://twiAer.com/RodKuhnKing   Problem   Pain:  (Un)Known   RED  OCEAN   BLUE  OCEAN   SoluOon   Gain:  (Un)Known   Business   Model   Business   Model   CHALLENGE   DIAGNOSIS   POLICY     ACTION  PLAN  (TO  DO)         Before     AFer     “Good  Strategy”  Canvas   Strategic     Problem  Solving   Targets  (Metrics)         ExecuOon   Job  To  Get  Done/Experience   (Journey:  Strategy/Execu=on)  
  3. 3.  DRAMATIC  STORY  CANVAS  for  FormulaOng  and  ExecuOng  “Good    Strategy”     Source:  Based  on  Rumelt,  R.P.  (2011)  Good  Strategy.  Bad  Strategy.  Crown  Business:  New  York.     #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hAp://businessmodels.ning.com  &  hAp://twiAer.com/RodKuhnKing   Problem   Pain:  (Un)Known   RED  OCEAN   BLUE  OCEAN   SoluOon   Gain:  (Un)Known   Business   Model   Business   Model   CHALLENGE   DIAGNOSIS   POLICY     ACTION  PLAN  (TO  DO)         Before     AFer     “Good  Strategy”  Canvas   Strategic     Problem  Solving   Targets  (Metrics)         ExecuOon   Job  To  Get  Done/Experience   (Journey:  Strategy/Execu=on)  
  4. 4.  DRAMATIC  STORY  CANVAS  for  FormulaOng  and  ExecuOng  “Good    Strategy”     Source:  Based  on  Rumelt,  R.P.  (2011)  Good  Strategy.  Bad  Strategy.  Crown  Business:  New  York.     #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hAp://businessmodels.ning.com  &  hAp://twiAer.com/RodKuhnKing   Problem   Pain:  (Un)Known   RED  OCEAN   BLUE  OCEAN   SoluOon   Gain:  (Un)Known   Business   Model   Business   Model   CHALLENGE:  Short/Medium/Long-­‐term   (Problems:  Constraints/Obstacles)   DIAGNOSIS:  HolisOc  Business  Model   (Causes/Insights:  Ext./Int.  Resources)   POLICY   (Solu=ons:  Goals/Objec=ves/Strategy)   ACTION  PLAN  (TO  DO)  -­‐  Core  Tac=cs/Coherent  Ac=ons:  Do-­‐Measure-­‐Learn  (DML)  Cycle         Before     AFer     “Good  Strategy”  Canvas   Strategic     Problem  Solving   Targets  (Metrics)         ExecuOon   Job  To  Get  Done/Experience   (Journey:  Strategy/Execu=on)  
  5. 5.  DRAMATIC  STORY  CANVAS  for  FormulaOng  and  ExecuOng  “Good    Strategy”     Holis&cally  Document,  Present,  and  Manage  Organiza&onal  Success  (Failure)  in  Business  and  Life     #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hAp://businessmodels.ning.com  &  hAp://twiAer.com/RodKuhnKing   Problem   Pain:  (Un)Known   RED  OCEAN   BLUE  OCEAN   SoluOon   Gain:  (Un)Known   Business   Model   Business   Model   CHALLENGE:  Short/Medium/Long-­‐term   (Problems:  Constraints/Obstacles)   DIAGNOSIS:  HolisOc  Business  Model   (Causes/Insights:  Ext./Int.  Resources)   POLICY   (Solu=ons:  Goals/Objec=ves/Strategy)   q C:  Collect  info  (on  business  model)   q D:  Define  customer  challenge,  pain,   unacceptable  trade-­‐off,  conflict,  or   Minimum  Viable  Problem  (MVP)   q M:  Measure  challenge,  pain,         trade-­‐off,  conflict,  or  problem   q A:  Analyze,  qualita=vely  and   quan=ta=vely,  core  (80/20)  causes   or  simulate  business  model  drivers   especially  at  level  of  system,   environment,  and  supersystem;               use  analogies,  if  necessary     q G:  Generate  disrup=ve  ideas  and   select  best  alterna=ve            (MAXIMIZE  VALUE  OR  HAPPINESS:              Minimize  Cost,  Pain,  and/or  Waste;              Minimize  Weaknesses  and  Threats              Maximize  Revenue,  Delight,  Benefit              and/or  Differen&a&on;              Maximize  Strengths  &  Opportuni.)   ACTION  PLAN  (TO  DO)  -­‐  Core  Tac=cs/Coherent  Ac=ons:  Do-­‐Measure-­‐Learn  (DML)  Cycle       Before     AFer     “Good  Strategy”  Canvas:  Process   Strategic     Problem  Solving   ExecuOon   Targets  (Metrics)         Job  To  Get  Done/Experience   (Journey:  Strategy/Execu=on)  
  6. 6.  DRAMATIC  STORY  CANVAS  for  FormulaOng  and  ExecuOng  “Good    Strategy”     Holis&cally  Document,  Present,  and  Manage  Organiza&onal  Success  (Failure)  in  Business  and  Life     #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hAp://businessmodels.ning.com  &  hAp://twiAer.com/RodKuhnKing   Problem   Pain:  (Un)Known   RED  OCEAN   BLUE  OCEAN   SoluOon   Gain:  (Un)Known   Business   Model   Business   Model   CHALLENGE:  Short/Medium/Long-­‐term   (Problems:  Constraints/Obstacles)   DIAGNOSIS:  HolisOc  Business  Model   (Causes/Insights:  Ext./Int.  Resources)   POLICY   (Solu=ons:  Goals/Objec=ves/Strategy)   q C:  Collect  info  (on  business  model)   q D:  Define  customer  challenge,  pain,   unacceptable  trade-­‐off,  conflict,  or   Minimum  Viable  Problem  (MVP)   q M:  Measure  challenge,  pain,         trade-­‐off,  conflict,  or  problem   q A:  Analyze,  qualita=vely  and   quan=ta=vely,  core  (80/20)  causes   or  simulate  business  model  drivers   especially  at  level  of  system,   environment,  and  supersystem;               use  analogies,  if  necessary       q G:  Generate  disrup=ve  ideas  and   select  best  alterna=ve            (MAXIMIZE  VALUE  OR  HAPPINESS:              Minimize  Cost,  Pain,  and/or  Waste;              Minimize  Weaknesses  and  Threats              Maximize  Revenue,  Delight,  Benefit              and/or  Differen&a&on;              Maximize  Strengths  &  Opportuni.)   ACTION  PLAN  (TO  DO)  -­‐  Core  Tac=cs/Coherent  Ac=ons:  Do-­‐Measure-­‐Learn  (DML)  Cycle   q  E:  Eliminate  –     q  R:  Reduce  –     q  I:  Increase  –     q  C:  Create  –     Before     AFer     “Good  Strategy”  Canvas:  Process   Strategic     Problem  Solving   ExecuOon   Targets  (Metrics)         Job  To  Get  Done/Experience   (Journey:  Strategy/Execu=on)  
  7. 7.  DRAMATIC  STORY  CANVAS  for  FormulaOng  and  ExecuOng  “Good    Strategy”     Holis&cally  Document,  Present,  and  Manage  Organiza&onal  Success  (Failure)  in  Business  and  Life     #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hAp://businessmodels.ning.com  &  hAp://twiAer.com/RodKuhnKing   Problem   Pain:  (Un)Known   RED  OCEAN   BLUE  OCEAN   SoluOon   Gain:  (Un)Known   Business   Model   Business   Model   CHALLENGE:  Short/Medium/Long-­‐term   (Problems:  Constraints/Obstacles)   DIAGNOSIS:  HolisOc  Business  Model   (Causes/Insights:  Ext./Int.  Resources)   POLICY   (Solu=ons:  Goals/Objec=ves/Strategy)   q C:  Collect  info  (on  business  model)   q D:  Define  customer  challenge,  pain,   unacceptable  trade-­‐off,  conflict,  or   Minimum  Viable  Problem  (MVP)     q M:  Measure  challenge,  pain,         trade-­‐off,  conflict,  or  problem   q A:  Analyze,  qualita=vely  and   quan=ta=vely,  core  (80/20)  causes   or  simulate  business  model  drivers   especially  at  level  of  system,   environment,  and  supersystem;               use  analogies,  if  necessary       q G:  Generate  disrup=ve  ideas  and   select  best  alterna=ve            (MAXIMIZE  VALUE  OR  HAPPINESS:              Minimize  Cost,  Pain,  and/or  Waste;              Minimize  Weaknesses  and  Threats              Maximize  Revenue,  Delight,  Benefit              and/or  Differen&a&on;              Maximize  Strengths  &  Opportuni.)   ACTION  PLAN  (TO  DO)  -­‐  Core  Tac=cs/Coherent  Ac=ons:  Do-­‐Measure-­‐Learn  (DML)  Cycle   q  E:  Eliminate  –  Waste  (Defects)   q  R:  Reduce  –  Cost  (Pain)   q  I:  Increase  –  Revenue  (Delight)   q  C:  Create  –  Differen=a=on  (Awesome  Customer  Experience)   Before     AFer     “Good  Strategy”  Canvas:  9  Steps  of  Problem-­‐Based  Strategy  (CDMAG-­‐ERIC)   Strategic     Problem  Solving   ExecuOon   Targets  (Metrics)         Job  To  Get  Done/Experience   (Journey:  Strategy/Execu=on)  
  8. 8.  DRAMATIC  STORY  CANVAS  for  FormulaOng  and  ExecuOng  “Good    Strategy”     Holis&cally  Document,  Present,  and  Manage  Organiza&onal  Success  (Failure)  in  Business  and  Life     #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hAp://businessmodels.ning.com  &  hAp://twiAer.com/RodKuhnKing   Problem   Pain:  (Un)Known   RED  OCEAN   BLUE  OCEAN   SoluOon   Gain:  (Un)Known   Business   Model   Business   Model   CHALLENGE:  Short/Medium/Long-­‐term   (Problems:  Constraints/Obstacles)   DIAGNOSIS:  HolisOc  Business  Model   (Causes/Insights:  Ext./Int.  Resources)   POLICY   (Solu=ons:  Goals/Objec=ves/Strategy)   q C:  Collect  info  (on  business  model)   q D:  Define  customer  challenge,  pain,   unacceptable  trade-­‐off,  conflict,  or   Minimum  Viable  Problem  (MVP)     q M:  Measure  challenge,  pain,         trade-­‐off,  conflict,  or  problem   q A:  Analyze,  qualita=vely  and   quan=ta=vely,  core  (80/20)  causes   or  simulate  business  model  drivers   especially  at  level  of  system,   environment,  and  supersystem;               use  analogies,  if  necessary       q G:  Generate  disrup=ve  ideas  and   select  best  alterna=ve            (MAXIMIZE  VALUE  OR  HAPPINESS:              Minimize  Cost,  Pain,  and/or  Waste;              Minimize  Weaknesses  and  Threats              Maximize  Revenue,  Delight,  Benefit              and/or  Differen&a&on;              Maximize  Strengths  &  Opportuni.)   ACTION  PLAN  (TO  DO)  -­‐  Core  Tac=cs/Coherent  Ac=ons:  Do-­‐Measure-­‐Learn  (DML)  Cycle   q  E:  Eliminate  –  Waste  (Defects)   q  R:  Reduce  –  Cost  (Pain),  e.g.,  size/cost;  complexity;  inaccessibility  (inconvenience);  &me  (delay)     q  I:  Increase  –  Revenue  (Delight),  e.g.,  func&onality/performance;  quality;  status  (brand);  customiza&on/interac&on   q  C:  Create  –  Differen=a=on  (Awesome  Customer  Experience)   Before     AFer     “Good  Strategy”  Canvas:  9  Steps  of  Problem-­‐Based  Strategy  (CDMAG-­‐ERIC)   Strategic     Problem  Solving   ExecuOon   Targets  (Metrics)         Job  To  Get  Done/Experience   (Journey:  Strategy/Execu=on)  
  9. 9. InvenOon  of  the  DramaOc  Story  Canvas  was  Inspired  by   Pablo  Picasso’s  AdapOve  Approach  to  Art   Especially  in  His  “AdapOve  (Morphological)”  PainOng  of  a  Chicken     THE  MOST  ADAPTIVE  TOOL  IN  BUSINESS  
  10. 10. The  DramaOc  Story  Canvas   Is   An  ExcepOonally  VersaOle  Tool   Because  of   Its  Universal  Story  Structure     In   Time  and  Space   THE  MOST  ADAPTIVE  TOOL  IN  BUSINESS  
  11. 11. Example  
  12. 12.  DRAMATIC  STORY  CANVAS  for  Apple  (1998):  How  Steve  Jobs  Saved  Apple     Source:  Based  on  Rumelt,  R.P.  (2011)  Good  Strategy.  Bad  Strategy.  Crown  Business:  New  York.     #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hAp://businessmodels.ning.com  &  hAp://twiAer.com/RodKuhnKing   Problem   Pain:  (Un)Known   RED  OCEAN   BLUE  OCEAN   SoluOon   Gain:  (Un)Known   Business   Model   Business   Model   CHALLENGE   DIAGNOSIS   POLICY     Value  Engine  (Undesirable  Impacts)   q Serious  decline  in  market  share,   ROI,  revenue,  and  share  price     q High  nega=ve  cash  flow       q Compe==ve  disadvantage                               (in  Red  Ocean  industry  of  personal   computers)   ACTION  PLAN  (TO  DO)  -­‐  Core  Tac=cs/Coherent  Ac=ons:  Do-­‐Measure-­‐Learn  Cycle           Before     AFer     Apple’s  “Good  Strategy”  Canvas  (1998)   Strategic     Problem  Solving   ExecuOon   “Put  a  dent  in  the  universe”   Targets  (Metrics)         Job  To  Get  Done/Experience   (Journey:  Strategy/Execu=on)  
  13. 13.  DRAMATIC  STORY  CANVAS  for  Apple  (1998):  How  Steve  Jobs  Saved  Apple     Source:  Based  on  Rumelt,  R.P.  (2011)  Good  Strategy.  Bad  Strategy.  Crown  Business:  New  York.     #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hAp://businessmodels.ning.com  &  hAp://twiAer.com/RodKuhnKing   Problem   Pain:  (Un)Known   RED  OCEAN   BLUE  OCEAN   SoluOon   Gain:  (Un)Known   Business   Model   Business   Model   CHALLENGE   DIAGNOSIS   POLICY     Value  Engine  (Undesirable  Impacts)   q Serious  decline  in  market  share,   ROI,  revenue,  and  share  price     q High  nega=ve  cash  flow       q Compe==ve  disadvantage                               (in  Red  Ocean  industry  of  personal   computers)   q Customers  have  difficul=es  in   differen=a=ng  Apple’s  products   q Complicated  product  lineup   q Too  many  (na=onal)  retailers:  too   many  models.  price  points,  and   markup  are  required  to  sa=sfy   various  retailers   q Highly  priced  products   ACTION  PLAN  (TO  DO)  -­‐  Core  Tac=cs/Coherent  Ac=ons:  Do-­‐Measure-­‐Learn  Cycle         Before     AFer     Apple’s  “Good  Strategy”  Canvas  (1998)   Strategic     Problem  Solving   ExecuOon   “Put  a  dent  in  the  universe”   Targets  (Metrics)         Job  To  Get  Done/Experience   (Journey:  Strategy/Execu=on)  
  14. 14.  DRAMATIC  STORY  CANVAS  for  Apple  (1998):  How  Steve  Jobs  Saved  Apple     Source:  Based  on  Rumelt,  R.P.  (2011)  Good  Strategy.  Bad  Strategy.  Crown  Business:  New  York.     #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hAp://businessmodels.ning.com  &  hAp://twiAer.com/RodKuhnKing   Problem   Pain:  (Un)Known   RED  OCEAN   BLUE  OCEAN   SoluOon   Gain:  (Un)Known   Business   Model   Business   Model   CHALLENGE   DIAGNOSIS   POLICY     Value  Engine  (Undesirable  Impacts)   q Serious  decline  in  market  share,   ROI,  revenue,  and  share  price     q High  nega=ve  cash  flow       q Compe==ve  disadvantage                               (in  Red  Ocean  industry  of  personal   computers)   q Customers  have  difficul=es  in   differen=a=ng  Apple’s  products   q Complicated  product  lineup   q Too  many  (na=onal)  retailers:  too   many  models.  price  points,  and   markup  are  required  to  sa=sfy   various  retailers   q Highly  priced  products   q Simplify  product  line   q Shrink  Apple  to  a  scale  and  scope   suitable  to  its  reality  of  being  a   niche  producer  in  highly  compe=-­‐ =ve  market  of  personal  computers   q Sell  products  through  few  retailers   q Borrow  US$150  Mio.  for  investment   q “Wait  for  the  next  big  thing  (wave)”   ACTION  PLAN  (TO  DO)  -­‐  Core  Tac=cs/Coherent  Ac=ons:  Do-­‐Measure-­‐Learn  Cycle           Before     AFer     Apple’s  “Good  Strategy”  Canvas  (1998)   Strategic     Problem  Solving   ExecuOon   “Put  a  dent  in  the  universe”   Targets  (Metrics)         Job  To  Get  Done/Experience   (Journey:  Strategy/Execu=on)  
  15. 15.  DRAMATIC  STORY  CANVAS  for  Apple  (1998):  How  Steve  Jobs  Saved  Apple     Source:  Based  on  Rumelt,  R.P.  (2011)  Good  Strategy.  Bad  Strategy.  Crown  Business:  New  York.     #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hAp://businessmodels.ning.com  &  hAp://twiAer.com/RodKuhnKing   Problem   Pain:  (Un)Known   RED  OCEAN   BLUE  OCEAN   SoluOon   Gain:  (Un)Known   Business   Model   Business   Model   CHALLENGE   DIAGNOSIS   POLICY     Value  Engine  (Undesirable  Impacts)   q Serious  decline  in  market  share,   ROI,  revenue,  and  share  price     q High  nega=ve  cash  flow       q Compe==ve  disadvantage                               (in  Red  Ocean  industry  of  personal   computers)   q Customers  have  difficul=es  in   differen=a=ng  Apple’s  products   q Complicated  product  lineup   q Too  many  (na=onal)  retailers:  too   many  models.  price  points,  and   markup  are  required  to  sa=sfy   various  retailers   q Highly  priced  products   q Simplify  product  line   q Shrink  Apple  to  a  scale  and  scope   suitable  to  its  reality  of  being  a   niche  producer  in  highly  compe=-­‐ =ve  market  of  personal  computers   q Sell  products  through  few  retailers   q Borrow  US$150  Mio.  for  investment   q “Wait  for  the  next  big  thing  (wave)”   ACTION  PLAN  (TO  DO)  -­‐  Core  Tac=cs/Coherent  Ac=ons:  Do-­‐Measure-­‐Learn  Cycle   q  E:  Eliminate  –  Waste  (Defects);  Distributors;  Development  of  new  opera=ng  systems;  Printers  and  peripherals   q  R:  Reduce  –  Cost  (Pain);  No.  of  models  of  desktops  and  handheld  devices;  Retailers;  Manufacturing;  Inventory   q  I:  Increase  –  Revenue  (Delight);  ROI;  Partnership  with  Microsog;  Outsourcing  (Manufacturing)   q  C:  Create  –  Differen=a=on  (Awesome  Customer  Experience);  Online  Store;  Digital  Hub  (Ecosystem/Value  Network)   Before     AFer     Apple’s  “Good  Strategy”  Canvas  (1998)   Strategic     Problem  Solving   ExecuOon   “Put  a  dent  in  the  universe”   Targets  (Metrics)         Job  To  Get  Done/Experience   (Journey:  Strategy/Execu=on)  
  16. 16.  DRAMATIC  STORY  CANVAS  for  Apple  (1998):  How  Steve  Jobs  Saved  Apple     Source:  Based  on  Rumelt,  R.P.  (2011)  Good  Strategy.  Bad  Strategy.  Crown  Business:  New  York.     #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hAp://businessmodels.ning.com  &  hAp://twiAer.com/RodKuhnKing   Problem   Pain:  (Un)Known   RED  OCEAN   BLUE  OCEAN   SoluOon   Gain:  (Un)Known   Business   Model   Business   Model   CHALLENGE:  Short/Medium/Long-­‐term   (Problems:  Constraints/Obstacles)   DIAGNOSIS:  HolisOc  Business  Model   (Causes/Insights:  Ext./Int.  Resources)   POLICY   (Solu=ons:  Goals/Objec=ves/Strategy)   Value  Engine  (Undesirable  Impacts)   q Serious  decline  in  market  share,   ROI,  revenue,  and  share  price     q High  nega=ve  cash  flow       q Compe==ve  disadvantage                               (in  Red  Ocean  industry  of  personal   computers)   q Customers  have  difficul=es  in   differen=a=ng  Apple’s  products   q Complicated  product  lineup   q Too  many  (na=onal)  retailers:  too   many  models.  price  points,  and   markup  are  required  to  sa=sfy   various  retailers   q Highly  priced  products   q Simplify  product  line   q Shrink  Apple  to  a  scale  and  scope   suitable  to  its  reality  of  being  a   niche  producer  in  highly  compe=-­‐ =ve  market  of  personal  computers   q Sell  products  through  few  retailers   q Borrow  US$150  Mio.  for  investment   q “Wait  for  the  next  big  thing  (wave)”   ACTION  PLAN  (TO  DO)  -­‐  Core  Tac=cs/Coherent  Ac=ons:  Do-­‐Measure-­‐Learn  Cycle   q  E:  Eliminate  –  Waste  (Defects);  Distributors;  Development  of  new  opera=ng  systems;  Printers  and  peripherals   q  R:  Reduce  –  Cost  (Pain);  No.  of  models  of  desktops  and  handheld  devices;  Retailers;  Manufacturing;  Inventory   q  I:  Increase  –  Revenue  (Delight);  ROI;  Partnership  with  Microsog;  Outsourcing  (Manufacturing)   q  C:  Create  –  Differen=a=on  (Awesome  Customer  Experience);  Online  Store;  Digital  Hub  (Ecosystem/Value  Network)   Before     AFer     Apple’s  “Good  Strategy”  Canvas  (1998)   Strategic     Problem  Solving   ExecuOon   “Put  a  dent  in  the  universe”   Targets  (Metrics)         Job  To  Get  Done/Experience   (Journey:  Strategy/Execu=on)  
  17. 17. Problem-­‐Based  Entrepreneurship   Entrepreneurs  Should  be  Trained   Just  Like  Medical  Doctors.     Entrepreneurs  Should  PracOce  as  well  as  Master   Problem-­‐Based  Strategy  and  Learning.  

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