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The Red Ocean Disruption (ROD) Cycle: A Continuous Disruption Roadmap for Product Innovators, Improvers, Business Planners, and Lean Startups

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Over 90% of startups go bankrupt within a year. The main reason is that targeted customers buy few or no “visionary” products and services that are originally described in traditional business plans. Many entrepreneurs and startups are conscientiously using Waterfall Planning and Execution to build products and services that customers do not value. So, how are we solving the problem of cost-effectively translating bold visions and dreams into reality? After all, the startup community and society at large are wasting vast amounts of money, time, and human resources in failures that could have been earlier averted.

Given the high risk of failure in using a traditional business plan, startups are understandably calling for “Death of the Business Plan.” So, if a traditional business plan combined with Waterfall (Sequential) Planning and Execution is increasingly irrelevant to startups, what alternative approaches and tools are startups using to reduce the risk of translating bold visions and dreams into reality?

The emerging dominant approaches for translating vision into reality hail from Silicon Valley, California. The approaches are Steve Blank’s Customer Development Stack and Eric Ries’s Lean Startup Method. Both approaches are strongly related as Eric Ries’s approach was inspired by Steve Blank’s approach of Customer Development. Using the paradigm of a Business Model Story – the components of which are Customer, Business, and Learning Stories – Steve Blank’s approach focuses on the Customer Story (“Define Problem”) while Eric Ries’s approach focuses on the Business Story (“Build Solution”). Both approaches emphasize the Learning Story as a key outcome of each cycle, iteration, or experiment in a startup project.

The similarity in Blank and Ries’s approaches also arises from the fact that they are codifying and applying the Scientific Problem-Solving Process to systematically translate business visions and dreams into profitable products, services, and business models. Nevertheless, Blank and Ries’s principles and tools are relatively complex to understand and difficult to apply. Startups as well as established businesses are struggling to rapidly apply the methodology of the Customer Development Stack and Lean Startup. Consequently, many startup projects are still at risk of failure.

Unlike in the Continuous Improvement methodology of Six Sigma, neither the Customer Development Stack nor the Lean Startup Method has a simple, effective acronym for translating a project’s vision or objective into reality. Blank’s mantra of “Get Out Of the Building” is an inspirational war cry but is not actionable. Ries’s “Build-Measure-Learn” feedback loop is more actionable but does not adequately describe the Scientific Problem-Solving Process.

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Transcript of "The Red Ocean Disruption (ROD) Cycle: A Continuous Disruption Roadmap for Product Innovators, Improvers, Business Planners, and Lean Startups"

  1. 1. Red  Ocean  DisrupFon  (ROD)  Cycle:  DB-­‐MAIL   Red  Ocean  DisrupFon  (ROD)  Map  for  Product  Innovators,  Improvers,  Planners,  and  Lean  Startups   q D:  Define  Problem   q B:  Build  Solu1on   q M:  Measure  Problem   q A:  Analyze  Problem     q I:  Improve  Solu1on   q L:  Learn  What’s  Valued   Business  Lifecycle  Evolu1on   1.  Vision  (Leap  of  Faith)  Experiment   Does  the  vision,  cause,  theme,  or  Job-­‐ To-­‐Get-­‐Done  of  the  project  empower   the  targeted  customers  (co-­‐creators)?   D:   Define   L:  Learn   B:  Build   ROD  Cycle   for   Each  EvoluJon/Experiment  (Project):   DB-­‐MAIL   I:   Improve   M:   Measure   A:   Analyze   2.  Problem-­‐SoluFon  Experiment   Would  a  minimum  viable  product/ service  (prototype)  solve  a  validated  Big   Urgent  Market  Problem  (BUMP)?     3.        Product-­‐Market  Experiment   Is  the  proposed  (more  featured)   product/service/business  model   effecJvely  and  profitably  solving  the  Big   Urgent  Market  Problem  (BUMP)?     4.  Business  Model  OpFmizaFon  &   Scaling  Experiment   Can  defects  or  waste  in  processes  be   rapidly  and  cost-­‐effecJvely  eliminated,   i.e.,  brought  to  the  level  of  Six  Sigma   (3.4  defects  in  1,000,000)?  Can  the   business  model  be  scaled  or  repeated?     5.  Business  Model  Renewal/ Ecosystem  DisrupFon  Experiment   How  best  to  disrupt  exisJng  (matured)   product/service/business  model?   Note:  The  ROD  (DB-­‐MAIL)  Cycle  is  a  synthesis  of  ideas  from  the  Scien1fic  Problem-­‐Solving  Process,  Six  Sigma’s  “DMAIC”  heuris1c,     Eric  Ries’s  “Build-­‐Measure-­‐Learn  (BML)”  Loop,  Kim  &  Mauborgne’s  Blue  Ocean  Strategy,  and  Jean-­‐Marie  Dru’s  Disrup1on.     #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  h8p://businessmodels.ning.com  &  h8p://twi8er.com/RodKuhnKing  
  2. 2. 10  Topics  of  the  Red  Ocean  DisrupFon  (ROD)  Map   Linear  Layout  of  Storycards  for  Worksheet  of  the  Red  Ocean  Disrup1on  (ROD)  Cycle   ①     Project  Vision/Outcome   ②     Customer  (Segment/Base)   ③     Goal/Strategy/Job-­‐To-­‐Get-­‐Done   ④     Conven1onal  Tool  (Product/Service/Business  Model)   ⑤     Define  Problem   ⑥     Build  Solu1on   ⑦     Measure  Problem   ⑧     Analyze  Problem   ⑨     Improve  Solu1on   ⑩     Learn  What’s  Valued     #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  h8p://businessmodels.ning.com  &  h8p://twi8er.com/RodKuhnKing  
  3. 3. 10  Topics  of  the  Red  Ocean  DisrupFon  (ROD)  Map   Linear  Layout  of  Storycards  for  Worksheet  of  the  Red  Ocean  Disrup1on  (ROD)  Cycle   WHY-­‐Storycard   ②     Customer  (Segment/Base)   WHO-­‐Storycard   3W   ①     Project  Vision/Outcome   ③     Goal/Strategy/Job-­‐To-­‐Get-­‐Done   WHAT-­‐Storycards   ④     Conven1onal  Tool  (Product/Service/Business  Model)   ⑤     Define  Problem   ⑥     Build  Solu1on   ⑦     Measure  Problem   ⑧     Analyze  Problem   HOW-­‐Storycards   ⑨     Improve  Solu1on   ⑩     Learn  What’s  Valued     #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  h8p://businessmodels.ning.com  &  h8p://twi8er.com/RodKuhnKing  
  4. 4. 10  Topics  of  the  Red  Ocean  DisrupFon  (ROD)  Map   Linear  Layout  of  Storycards  for  Worksheet  of  the  Red  Ocean  Disrup1on  (ROD)  Cycle   ①     Project  Vision/Outcome   ②     Customer  (Segment/Base)   ③     Goal/Strategy/Job-­‐To-­‐Get-­‐Done   “Project  Charter”   InformaJon   ④     Conven1onal  Tool  (Product/Service/Business  Model)   ⑤     Define  Problem   ⑥     Build  Solu1on   ⑦     Measure  Problem   ⑧     Analyze  Problem   ROD  Cycle   (DB-­‐MAIL)   For   ConJnuous   DisrupJon   ⑨     Improve  Solu1on   ⑩     Learn  What’s  Valued     #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  h8p://businessmodels.ning.com  &  h8p://twi8er.com/RodKuhnKing  
  5. 5. 10  Storycards  of  the  Red  Ocean  DisrupFon  (ROD)  Map   Linear  Layout  of  Storycards  for  Worksheet  of  the  Red  Ocean  Disrup1on  (ROD)  Cycle   Project  Vision/Outcome   Customer  (Segment/Base)   Goal/Strategy/Job-­‐To-­‐Get-­‐Done   ConvenFonal  Tool  (Product/Service/Business  Model)   D:  Define  Problem  (Needs)   B:  Build  SoluFon   M:  Measure  Problem   A:  Analyze  Problem   I:  Improve  SoluFon   L:  Learn  What’s  Valued   Note   A  “storycard”  is  preferably   rectangular  and/or   modular.  However,  a   storycard  can  have  any   shape  and  be  of  any  size.     Common  storycards  include   the  following:   q Index  cards   q Paper   q Posters   q Post-­‐It  notes   q Business  cards   q Playing  cards   q Tiles;  Blocks   q Digital  screen/page     #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  h8p://businessmodels.ning.com  &  h8p://twi8er.com/RodKuhnKing  
  6. 6. 10  Topics  of  the  Red  Ocean  DisrupFon  (ROD)  Map   Grid  Layout  of  Storycards  for  Worksheet  of  the  Red  Ocean  Disrup1on  (ROD)  Cycle   RED  OCEAN  DISRUPTION   (ROD)  MAP:   10  Topics   1   Project  Vision/Outcome     2   Customer  (Segment/   Base)   3   Goal/Strategy/   Job-­‐To-­‐Get-­‐Done   4   Conven1onal  Tool   (Product/Service/Busi-­‐   ness  Model)   5   Define  Problem   6   Build  Solu1on   7   Measure  Problem   8   Analyze  Problem   9   Improve  Solu1on   10   Learn  What’s  Valued     #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  h8p://businessmodels.ning.com  &  h8p://twi8er.com/RodKuhnKing  
  7. 7. 10  Topics  of  the  Red  Ocean  DisrupFon  (ROD)  Map   Direct  Rela1onship  With  Other  Project  Planning  and  Management  Tools   RED  OCEAN  DISRUPTION   (ROD)  MAP:   10  Topics   1   LEAN   LEAN   STARTUP:   CANVAS:   BML  Heuris1c   Topics   Customer  (Segment/   Base)   VALUE  PROP.   CANVAS:   Topics   Project  Vision/Outcome     2   SIX  SIGMA:   DMAIC   Heuris1c   3   4   PROJECT   CHARTER:   Specs.   ü      ü   (Customer   ü   (Customer   ü      Segments)   Goal/Strategy/   Job-­‐To-­‐Get-­‐Done   Segment)   ü   (Customer   ü      Job(s))   Conven1onal  Tool   (Product/Service/Busi-­‐   ness  Model)   ü   (ExisJng   Alterna-­‐ Jves)   5   Define  Problem   ü     (Define)   6   Build  Solu1on       7   Measure  Problem   Analyze  Problem   ü     (Analyze)   9   Improve  Solu1on   ü     (Improve)   10   Learn  What’s  Valued   ü     (Control)   &  Services)   ü     (Measure)   ü   (Measure)   ü   (Metrics)   8   ü   (Products   ü      ü   (Problem)   ü   (Pains)   ü   (Build)   ü      ü   (Solu1on)   ü   (Relievers)                   ü     (Learn)     #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  h8p://businessmodels.ning.com  &  h8p://twi8er.com/RodKuhnKing  
  8. 8. 10  Topics  of  the  Red  Ocean  DisrupFon  (ROD)  Map   Direct  Rela1onship  With  Other  Project  Planning  and  Management  Tools  in  Eric  Ries’s  Book,  “The  Lean  Startup”   RED  OCEAN  DISRUPTION   (ROD)  MAP:   10  Topics   1   Project  Vision/Outcome     2   VISION-­‐ STRATEGY-­‐ PRODUCT   Customer  (Segment/   Base)   CUSTOMER   ARCHETYPE     ANALOG/   ANTILOG     MINIMUM   VALUABLE   PRODUCT   INNOVA-­‐ TION   ACCOUNT   ü   (MVP)       ü   (Vision)   ü   (Customer       Archetype)   3   Goal/Strategy/   Job-­‐To-­‐Get-­‐Done   ü   (Strategy)   4   Conven1onal  Tool   (Product/Service/Busi-­‐   ness  Model)   ü   (Product)   5   Build  Solu1on   7   Analyze  Problem   9   Improve  Solu1on   10   Learn  What’s  Valued   An1log)   Measure  Problem   8   ü   (Analog/ Define  Problem   6       ü        #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  h8p://businessmodels.ning.com  &  h8p://twi8er.com/RodKuhnKing  
  9. 9. 10  Topics  of  the  Red  Ocean  DisrupFon  (ROD)  Map   Direct  Rela1onship  With  Healthcare  Project  Planning  and  Management  Tools:  5Ps  of  a  Clinical  Microsystem   RED  OCEAN  DISRUPTION   (ROD)  MAP:   10  Topics   PURPOSE/   AIM   1   Customer  (Segment/   Base)   3   Conven1onal  Tool   (Product/Service/Busi-­‐   ness  Model)   PROFESSION-­‐ ALS   Goal/Strategy/   Job-­‐To-­‐Get-­‐Done   4   PROCESSES   (Core/   SupporFng)   PERFOR-­‐ MANCE   PATTERNS   Project  Vision/Outcome   ü   (Purpose/     Aim)   2   PATIENTS     ü   (Pa1ents)       ü   (Perf.)       ü   (Process-­‐ es)   ü   (Pro-­‐ fessionals)   5   Define  Problem   6   Build  Solu1on       7   Measure  Problem   ü   (Perf.)   8   Analyze  Problem   9   Improve  Solu1on   10   Learn  What’s  Valued     #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  h8p://businessmodels.ning.com  &  h8p://twi8er.com/RodKuhnKing  
  10. 10. Red  Ocean  DisrupFon  (ROD)  Map   Date:  ………………………..….   Hybrid  Layout  of  Storycards  for  Worksheet  of  the  Red  Ocean  Disrup1on  (ROD)  Cycle   q Vision  Experiment   q Problem-­‐SoluFon  Experiment   q Product-­‐Market  Experiment   q OpFmizaFon  &  Scaling   q Renewal   Project  Vision  (Cause/Final  Result/Outcome):  ……………………….…………..………………………………………………………..…………………..…..……   Customer  (Segment/Base/“Tribe”/Benefactor):  …..…………………………………………….….……….………..……………………………..…………..……   Goal/Strategy/Job-­‐To-­‐Get-­‐Done:  …………………...…………..…………………………………………………………..……………..….…………………………….……   Conven1onal  Tool  (Product/Service/Business  Model):  ………………………………..…….……………………………………………………………………..   D:   B:   Define   Build   Problem  (Needs)   Solu1on  (Pilot)   M:   Measure   Problem  (Effect)   A:   Analyze   Problem   I:   Improve   Solu1on   L:   Learn     What’s  Valued                                     Customer  Story   (Market-­‐focus)   Business  Story   (Product/Industry-­‐Focus)   Learning  Story     #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  h8p://businessmodels.ning.com  &  h8p://twi8er.com/RodKuhnKing  
  11. 11. Red  Ocean  DisrupFon  (ROD)  Map   Date:  ………………………..….   Hybrid  Layout  of  Storycards  for  Worksheet  of  the  Red  Ocean  Disrup1on  (ROD)  Cycle   q Vision  Experiment   q Problem-­‐SoluFon  Experiment   q Product-­‐Market  Experiment   q OpFmizaFon  &  Scaling   q Renewal   Project  Vision  (Cause/Final  Result/Outcome):  ……………………….…………..………………………………………………………..…………………..…..……   Customer  (Segment/Base/“Tribe”/Benefactor):  …..…………………………………………….….……….………..……………………………..…………..……   Goal/Strategy/Job-­‐To-­‐Get-­‐Done:  …………………...…………..…………………………………………………………..……………..….…………………………….……   Conven1onal  Tool  (Product/Service/Business  Model):  ………………………………..…….……………………………………………………………………..   D:   B:   Define   Build   Problem  (Needs)   Solu1on  (Pilot)   M:   Measure   Problem  (Effect)   A:   Analyze   Problem   I:   Improve   Solu1on   L:   Learn     What’s  Valued                                     Customer  Story   Business  Story   Learning  Story   (Market-­‐focus)   (Product/Industry-­‐Focus)     #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  h8p://businessmodels.ning.com  &  h8p://twi8er.com/RodKuhnKing  
  12. 12. Red  Ocean  DisrupFon  (ROD)  Map   Date:  ………………………..….   Hybrid  Layout  of  Storycards  for  Worksheet  of  the  Red  Ocean  Disrup1on  (ROD)  Cycle   q Vision  Experiment   q Problem-­‐SoluFon  Experiment   q Product-­‐Market  Experiment   q OpFmizaFon  &  Scaling   q Renewal   Project  Vision  (Cause/Final  Result/Outcome):  ……………………….…………..………………………………………………………..…………………..…..……   Customer  (Segment/Base/“Tribe”/Benefactor):  …..…………………………………………….….……….………..……………………………..…………..……   Goal/Strategy/Job-­‐To-­‐Get-­‐Done:  …………………...…………..…………………………………………………………..……………..….…………………………….……   Conven1onal  Tool  (Product/Service/Business  Model):  ………………………………..…….……………………………………………………………………..   D:   B:   Define   Build   Problem  (Needs)   Solu1on  (Pilot)   M:   Measure   Problem  (Effect)   A:   Analyze   Problem   I:   Improve   Solu1on   L:   Learn     What’s  Valued   Experiment/   Evolu0on/   Cycle  1               Experiment/   Evolu0on/   Cycle  2               Experiment/   Evolu0on/   Cycle  …             Customer  Story   Business  Story   Learning  Story   (Market-­‐focus)   (Product/Industry-­‐Focus)     #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  h8p://businessmodels.ning.com  &  h8p://twi8er.com/RodKuhnKing  
  13. 13. 5  ApplicaFons  of  the  Red  Ocean  DisrupFon  (ROD)  Map   Red  Ocean  Disrup1on  (ROD)  Cycle:  DB-­‐MAIL   q D:  Define  Problem   q B:  Build  Solu1on   q M:  Measure  Problem   q A:  Analyze  Problem     q I:  Improve  Solu1on   q L:  Learn  What’s  Valued   You  can  use  the  Red  Ocean  Disrup1on  (ROD)  Cycle  or  Map    to  rapidly  and  cost  effec1vely     do  the  following  projects:   VISION  DOCUMENTATION,  PLANNING,  EXECUTION,  AND   PRESENTATION   BUSINESS  MODEL  IMPROVEMENT:                                                                                       Lean/Six  Sigma  Projects;  Process/Product/Service  Improvement  Projects     BUSINESS  MODEL  DISRUPTION  (INNOVATION):                                 Lean  Startup  Projects;  Process/Product/Service  Innova1on  Projects   BUSINESS/STRATEGIC  PLANNING:                                                                     Business  Plan  Projects;  Strategic  Plan  Projects   BRAND  DISRUPTION:                                                                                                                                       Brand  Reinven1on/Disrup1on  Projects;  Disrup1ve  Marke1ng  Projects     #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  h8p://businessmodels.ning.com  &  h8p://twi8er.com/RodKuhnKing  
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