• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
A Business Model Canvas-KILLER. Rapidly Visualize, Prototype, and Test the 3 Engines of a Business Model
 

A Business Model Canvas-KILLER. Rapidly Visualize, Prototype, and Test the 3 Engines of a Business Model

on

  • 2,402 views

The Business Model Canvas can be considered as a graphic organizer (high level TreeMap) that shows 9 tessellated elements, tiles, or “building blocks” of an archetypal business model. Since the ...

The Business Model Canvas can be considered as a graphic organizer (high level TreeMap) that shows 9 tessellated elements, tiles, or “building blocks” of an archetypal business model. Since the 2009 publication of Alexander Osterwalder and Yves Pigneur’s “Business Model Generation” book, use and popularity of the Business Model Canvas (BMC) have surged worldwide.

The BMC is enthusiastically used by entrepreneurs, startups, established businesses, and non-profit organizations as well as university students, lecturers, and selected scientists from America’s National Science Foundation program. But is the BMC efficiently being used? Is the traditional BMC a “living organism” that would evolve to a higher level or simply become extinct in the jungle of tools for Business Model Planning, Strategy, and Performance Management (BMPSPM)?

As a long-time practitioner of TRIZ (“Theory of Inventive Problem Solving”) and an avid observer of idealized systems, a particular question that interests me is this: Would the BMC evolve towards the “Ideal Final Result (IFR)” by disrupting and cannibalizing itself, that is, by becoming multi-functional while instantly using freely available and/or internal resources at little or no cost? In other words, would the BMC evolve from being “good” to being “great” as an adaptive organism?

So far, evolution regarding the graphic organizer of the BMC has been superficial: the visual structure or BMC Gameboard (blank graphic framework) and how to use it have remained the same. So far, the most popular change to the BMC is by Ash Maurya in his Lean Canvas. In the Lean Canvas, 4 topics (Key Partners, Key Activities, Key Resources, and Customer Relationships) are eliminated while being respectively replaced by topics such as Problem, Solution, Key Metrics, and Unfair Advantage. These changes violate the macro-logic of a business model. The Lean Canvas focuses on operationalizing the Lean Startup method which is a methodology for continuously managing highly risky (innovation) projects. However, the Lean Canvas is inadequate for Business Model Planning, Strategy, and Performance Management; the Lean Canvas does not use a business model as a unit of analysis.

Recently, I presented a list of 10 characteristics of a “great” Business Model Canvas. The traditional BMC scored a 3 (out of 10). The 10 characteristics relate to tasks especially in Business Model Planning, Strategy, and Performance Management as well as Business Model Gamification. The question, then, is: how can we “ideally” transform a good BMC to a great BMC? Ideally, we should make little or no changes to the topics of the BMC and logic of a business model. The Lean Canvas falls short of that ideal.

The presentation below shows how one can “gamificate” (turn into a game) the traditional BMC so that it meets the 10 criteria of a great Business Model Canvas.

http://goo.gl/vWnOHl

Statistics

Views

Total Views
2,402
Views on SlideShare
2,254
Embed Views
148

Actions

Likes
7
Downloads
72
Comments
5

3 Embeds 148

http://www.scoop.it 77
https://twitter.com 70
http://www.linkedin.com 1

Accessibility

Upload Details

Uploaded via as Adobe PDF

Usage Rights

CC Attribution-NoDerivs LicenseCC Attribution-NoDerivs License

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel

15 of 5 previous next Post a comment

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
  • This. Is. Genius. Thank you Rod.
    Are you sure you want to
    Your message goes here
    Processing…
  • Rod- I visited this presentation again and a question popped up. In the value stream and from the example cited '1000 songs in your pocket' is a moving slogan. How do you translate that into a dollar value? I have thought always about this and it seems we are still behind in converting emotions into dollar values? Any thoughts?
    Are you sure you want to
    Your message goes here
    Processing…
  • @RodKing
    Rod- a brilliant response. I hope readers go through it carefully. I step aside to let readers enjoy your lovely response, Rod.
    Are you sure you want to
    Your message goes here
    Processing…
  • Ali, You ask a great question which reminds me of one of my favorite sayings from the philosopher, Soren Kierkegaard: 'Life can only be understood backwards; but it must be lived forwards.' If I'm to paraphrase Kierkegaard, 'Design Thinking and Outcome-based Thinking live backwards but Analytical Thinking and Time live forwards.' I believe that the core job of Designers is to bring the future to the present. Consequently, Designers always start with the end or outcome in mind; they start with the Why (Future) and proceed to the How (Present). In contrast to Designers who focus on future systems, Analysts focus on existing systems. Analysts, therefore, take a present system and decompose (analyze) it while asking How. In the end, however, there must be synergy between the How (Present/Details) and Why (Future/Big Picture). In my experience and in designing novel systems, Design Thinking results in more elegant and efficient solutions. Analytical Thinking is more suited to routine problems and solutions such as in improvement projects. So, regarding my reason for putting the 'Why?' on the right hand side, the short answer is that I'm using the paradigm of Design Thinking and Outcome-based Thinking. I therefore started with the end in mind, as Stephen Covey would say. Of course, the end being on the right hand side assumes a left to right reading/writing culture such as in English. As you know, in the Middle East and in Arab regions in particular, reading/writing is from right to left. If I were writing in Arabic, the end would be on the left hand side. My solution to this apparent paradox is to be fluent in reading backwards and forwards as well as upwards and downwards. And Ali, I suspect that you are a master of multi-directional reading, for that's the hallmark of a highly visual thinker. I hope that my explanation suffices. Nevertheless, should you have further questions, just let me know.
    Are you sure you want to
    Your message goes here
    Processing…
  • Rod- as usual, great ideas that are great to apply. You say start always with the Why. However; you put the why to the right- why? I feel you intend to force me to think backwards. I am sure you have something in mind. I wonder What is it?
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    A Business Model Canvas-KILLER. Rapidly Visualize, Prototype, and Test the 3 Engines of a Business Model A Business Model Canvas-KILLER. Rapidly Visualize, Prototype, and Test the 3 Engines of a Business Model Presentation Transcript

    • A  Business  Model  Canvas-­‐Killer   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   Dr.  Rod  King   Business  Model  Gamifica1on  
    • “Good”  vs  “Great”  Business  Model  Canvas   REQUIREMENTS   (TASKS/FUNCTIONS)  FOR   BUSINESS  MODEL  PLANNING,  STRATEGY,   PERFORMANCE  MANAGEMENT,  AND  GAMIFICATION     “Good”   Business  Model  Canvas       1)    Can  be  carried  in  pocket/wallet:  ultra-­‐portability;  modularity   “Great”   Business  Model  Canvas   ü      2)    Visualize  archetypal  parts  or  elements  of  a  business  model   (system):  Business  Model  Outline  (Form/Checklist/TreeMap)   ü      ü      3)    Organize  and  manage  ideas  regarding  the  parts  or  elements  of   a  business  model  (system):  Business  Model  Scorecard   ü      ü      4)    Illustrate  the  3  macro-­‐modules  or  engines  of  a  business  model:   Provider  (Supply)  Model;  Customer  (Demand)  Model;  Value   (Performance/Profit)  Model:  MulWlevel  (Aggregate)  Analysis   ü      5)  Comprehensively  show  how  cause-­‐and-­‐effect  rela1onships  that   illustrate  how  a  business  model  works  to  deliver  value:  Business   Model  Strategy  Map;  FuncWonal  Analysis  Diagram   ü      6)  Illustrate  Problem-­‐Solu1on  Fit  &  Product-­‐Market  Fit:  Lean   Startup  method;  Engine  of  Growth   ü      7)    Facilitate  genera1on  and  management  of  business  model   hypotheses  as  well  as  strategy:  Business  Model  Strategy   ü      ü      8)    Facilitate  Premortem  (Failure  Analysis):  Root-­‐cause  Analysis   ü      9)    Facilitate  problem  solving,  innova1on,  and  performance  mngt   as  well  as  Outcome-­‐driven  Planning,  including  Discovery-­‐driven   Planning:  Universal  Project  Management  (UPM)  Dashboard   ü      10)    Can  be  deployed  as  a  boardgame  with  “na1ve”  game  pieces   (cards)  &  board:  Business  Model  Jigsaw  (BMJ)  Game   ü      (3/10)   (10/10)  
    • The  Business  Model  Canvas   From  “Good”  to  “Great”  
    • “Good”  Business  Model  Canvas   [A  New  Look  at  the  Tradi1onal  Business  Model  Canvas]   Single  Level  TreeMap/Visual  Outline  (Form/Checklist)  
    • TradiWonal  Business  Model  Canvas   Source:  h@p://en.wikipedia.org/wiki/Business_Model_Canvas    
    • Jigsaw-­‐Business  Model  Canvas                                                                                                                                           Jigsaw-­‐Business  Model  Canvas  is  adopted  from  the  Business  Model  Canvas  (h]p://www.businessmodelgeneraWon.com)  which  is  licensed  under  the  CreaWve   Commons  A]ribute-­‐Share  Alike  3.0  Un-­‐ported  License  
    • Jigsaw-­‐Business  Model  Canvas                                                                                                                                           Jigsaw-­‐Business  Model  Canvas  is  adopted  from  the  Business  Model  Canvas  (h]p://www.businessmodelgeneraWon.com)  which  is  licensed  under  the  CreaWve   Commons  A]ribute-­‐Share  Alike  3.0  Un-­‐ported  License  
    • 9  Blank  Jigsaw  Cards  (Several  Types  of  Shapes)   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   BMC  Jigsaw  Cards  is  adopted  from  the  Business  Model  Canvas  (h]p://www.businessmodelgeneraWon.com)  which  is  licensed  under  the  CreaWve  Commons   A]ribute-­‐Share  Alike  3.0  Un-­‐ported  License  
    • Topic  Jigsaw  Cards  for  the  Business  Model  Canvas   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   Key   Partners   (KP)                   Key   AcWviWes     (KA)       Key   Resources   (KR)       Cost  Structure  (C$)       Value  ProposiWon   (VP)                     Customer   Rel.   (CR)       Channels   (CH)         Customer   Segments   (CS)                   Revenue  Streams  (R$)       Topics  of  BMC  Jigsaw  Cards  are  adopted  from  the  Business  Model  Canvas  (h]p://www.businessmodelgeneraWon.com)  which  is  licensed  under  the  CreaWve   Commons  A]ribute-­‐Share  Alike  3.0  Un-­‐ported  License  
    • Jigsaw  Board  for  Business  Model  Canvas   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   BMC  Jigsaw  Cards  is  adopted  from  the  Business  Model  Canvas  (h]p://www.businessmodelgeneraWon.com)  which  is  licensed  under  the  CreaWve  Commons   A]ribute-­‐Share  Alike  3.0  Un-­‐ported  License  
    • Jigsaw-­‐Business  Model  Canvas:  9  Cards   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   Key   Partners   (KP)                   Key   AcWviWes     (KA)       Key   Resources   (KR)       Cost  Structure  (C$)       Value  ProposiWon   (VP)                     Customer   Rel.   (CR)       Channels   (CH)         Customer   Segments   (CS)                   Revenue  Streams  (R$)       BMC  Jigsaw  Cards  is  adopted  from  the  Business  Model  Canvas  (h]p://www.businessmodelgeneraWon.com)  which  is  licensed  under  the  CreaWve  Commons   A]ribute-­‐Share  Alike  3.0  Un-­‐ported  License  
    • Jigsaw-­‐Business  Model  Canvas:  4  Panels   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   Key   Partners   (KP)                   Key   AcWviWes     (KA)       Key   Resources   (KR)       Cost  Structure  (C$)       Value  ProposiWon   (VP)                     Customer   Customer   Segments   Rel.   (CS)   (CR)         Channels   (CH)                       Revenue  Streams  (R$)       BMC  Jigsaw  Cards  is  adopted  from  the  Business  Model  Canvas  (h]p://www.businessmodelgeneraWon.com)  which  is  licensed  under  the  CreaWve  Commons   A]ribute-­‐Share  Alike  3.0  Un-­‐ported  License  
    • TradiWonal  Business  Model  Canvas:  Monolithic  Gameboard  (Form)   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   Key   Partners   (KP)                         Key  AcWviWes     (KA)             Key   Resources   (KR)         Cost  Structure  (C$)               Value  ProposiWon   (VP)                           Customer  Rel.   (CR)             Customer   Segments   (CS)         Channels   (CH)                           Revenue  Streams  (R$)               BMC  Jigsaw  Cards  is  adopted  from  the  Business  Model  Canvas  (h]p://www.businessmodelgeneraWon.com)  which  is  licensed  under  the  CreaWve  Commons   A]ribute-­‐Share  Alike  3.0  Un-­‐ported  License  
    • Example  
    • Business  Model  Canvas  for  Apple  (iPod)   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   Key   Partners   (KP)     q  Record     companies       q  Original     Equipment     Manufactur-­‐   ers             q  q  q  q  Value  ProposiWon   Key  AcWviWes     (VP)   (KA)       q  Luxury  Spot   q  “A  Thousand  Songs  in  Your     Strategy     Pocket”   q  Hardware/     Solware  Design     q  Seamless  Music  Experience     q  Marke1ng  &                      Sales     q  iPod  Hardware     Key     Resources     (KR)     q  Staff/                  Employees       q  Brand/Culture       q  Infra’:  IT     Cost  Structure  (C$)     Staff/Employees   Manufacturing     Marke1ng  &  Sales     Infrastructure:  IT         Customer  Rel.   Customer   Segments   (CR)   (CS)     q  Online       q  Face-­‐to-­‐face   q  Luxury  Spoker:     q  “Lock  in”                    Listen  to                      music  every-­‐                    where       Channels   (CH)     q  Apple.com     q  iTunes  Store   q  Retail  stores     q  Big  Box  Retail     q  Customer  Habit     Engine             Revenue  Streams  (R$)     q  iPod  Hardware   q  iTunes     q  Commissions           BMC  Jigsaw  Cards  is  adopted  from  the  Business  Model  Canvas  (h]p://www.businessmodelgeneraWon.com)  which  is  licensed  under  the  CreaWve  Commons   A]ribute-­‐Share  Alike  3.0  Un-­‐ported  License  
    • How  to  Use  The  Tradi?onal  Business  Model  Canvas   1.  Plot  the  Business  Model  Canvas  on  a  Poster   2.  Place  the  Poster  on  a  Wall   3.  Sketch  Out  –  Especially  Using  Post-­‐It  Notes  –       the  Business  Model  
    • “Great”  Business  Model  Canvas   LEVEL  1:  3  Streams  (Swimlanes)  of  Cards  
    • Visualize,  Prototype,  and  Test   A  Business  Model   In  Terms  of   Its  3  Engines:   q     Value  Engine:  Share  Value     q     Growth  Engine:  Deliver  Value   q     Enterprise  Engine:  Create  Value  
    • Visualize,  Prototype,  and  Test   A  Business  Model   In  Terms  of  9  PerspecWves   Upstream   Midstream   Downstream   Key  Partners  (KP)   Value  ProposiWon  (VP)   PAIN:   Cost  Structure  (C$)   Key  Resources  (KR)   Channels  (CH)  &  Customer   RelaWonships  (CR)   DELIGHT:   Revenue  Streams  (R$)   Key  AcWviWes  (KA)   Customer  Segments  (CS)   VALUE:   PROFIT   Topics  with  Abbrevia1ons  are  adopted  from  the  Business  Model  Canvas  (h]p://www.businessmodelgeneraWon.com)  which  is  licensed  under  the  CreaWve  Commons   A]ribute-­‐Share  Alike  3.0  Un-­‐ported  License  
    • 9  Blank  Jigsaw  Cards  (One  Type  of  Shape)   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model                                                      
    • Topic  Cards  for  the  Business  Model  Jigsaw   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   Key  Partners  (KP)         Value  ProposiWon  (VP)       Cost  Structure  (C$)           Key  Resources  (KR)         Channels  (CH)  &  Customer   RelaWonships  (CR)       Revenue  Streams  (R$)         Key  AcWviWes  (KA)         Customer  Segments  (CS)       PROFIT           Topics  of  the  9  Jigsaw  Cards  are  adopted  from  the  Business  Model  Canvas  (h]p://www.businessmodelgeneraWon.com)  which  is  licensed  underthe  CreaWve   Commons  A]ribute-­‐Share  Alike  3.0  Un-­‐ported  License  
    • Gameboard  for  Business  Model  Jigsaw   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   HOW?   WHAT?   WHY?  
    • Gameboard  for  Business  Model  Jigsaw   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   HOW?   Enterprise  Stream   WHAT?   Growth  Stream   WHY?   Value  Stream  
    • Gameboard  for  Business  Model  Jigsaw   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   HOW?   Supply:  Value  CreaXon     WHAT?   Demand:  Value  Delivery   WHY?   Value  Sharing  (Capture)  
    • Gameboard  for  Business  Model  Jigsaw   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   HOW?   Supply:  Value  CreaXon     WHAT?   Demand:  Value  Delivery   WHY?   Value  Sharing  (Capture)  
    • Gameboard  for  Business  Model  Jigsaw   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   Upstream  Cards   Supply:  Value  CreaXon     Midstream  Cards   Demand:  Value  Delivery   Downstream  Cards   Value  Sharing  (Capture)  
    • Business  Model  Jigsaw   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   Key  Partners  (KP)         Value  ProposiWon  (VP)       Cost  Structure  (C$)           Key  Resources  (KR)         Channels  (CH)  &  Customer   RelaWonships  (CR)       Revenue  Streams  (R$)         Key  AcWviWes  (KA)         Customer  Segments  (CS)       PROFIT          
    • Business  Model  Jigsaw   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   Key  Partners  (KP)         Value  ProposiWon  (VP)   [Product/Service]     PAIN:   Cost  Structure  (C$)         Key  Resources  (KR)         Channels  (CH)  &  Customer   RelaWonships  (CR)       DELIGHT:   Revenue  Streams  (R$)       Key  AcWviWes  (KA)         Customer  Segments  (CS)       VALUE:   PROFIT        
    • Business  Model  Jigsaw   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   WHY?   WHAT?   HOW?   Key  Partners  (KP)         Value  ProposiWon  (VP)   [Product/Service]     PAIN:   Cost  Structure  (C$)         Key  Resources  (KR)         Channels  (CH)  &  Customer   RelaWonships  (CR)       DELIGHT:   Revenue  Streams  (R$)       Key  AcWviWes  (KA)         Customer  Segments  (CS)       VALUE:   PROFIT        
    • Always  Start  With  “Why?”   HOW?   WHAT?   WHY?   Note:  The  logic  as  well  as  sequence  of  Why-­‐What-­‐How  in  the  above  diagram  differs  from   Simon  Sinek’s  Golden  Circle  which  he  presents  in  his  book,  “Start  With  Why.”  
    • “People  like   MarWn  Luther  King,  Jr.,   Steve  Jobs,  and   The  Wright  Brothers   Might  Have  Likle  in  Common,   But   They  All  Started  with  “Why?””   Simon  Sinek  
    • Example  
    • Business  Model  Jigsaw  for  Apple’s  iPod   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   HOW?   WHAT?   WHY?  
    • Business  Model  Jigsaw  for  Apple’s  iPod   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   Downstream  Cards   PAIN:   Cost  Structure  (C$)   q  Staff/Employees   q  Manufacturing/Infra’   q  Marke1ng  &  Sales   DELIGHT:   Revenue  Streams  (R$)   q  iPod  Hardware   q  iTunes   q  Commissions   VALUE:   PROFIT   q  High  Profit  Margin   q  Extraordinary  Profit   q  Performance  Metrics  
    • Business  Model  Jigsaw  for  Apple’s  iPod   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   Midstream  Cards   Value  ProposiWon  (VP)   q  “A  Thousand  Songs  in  Your   Pocket”   q  Seamless  Music  XP   q  iPod  Hardware   Channels  (CH)  &  Customer   RelaWonships  (CR)   Downstream  Cards   PAIN:   Cost  Structure  (C$)   q  Staff/Employees   q  Manufacturing/Infra’   q  Marke1ng  &  Sales   DELIGHT:   Revenue  Streams  (R$)   q  Apple.com;  Big  Box  Retailer   q  iTunes  Store;  Retail  stores   q  iPod  Hardware   q  iTunes   q  Commissions   Customer  Segments  (CS)   VALUE:   PROFIT   q  Online/Face-­‐to-­‐Face;  Lock-­‐in   q  Luxury  Spoker:                  Listen  to  music  everywhere   q  Customer  Habit  Engine   q  High  Profit  Margin   q  Extraordinary  Profit   q  Performance  Metrics  
    • Business  Model  Jigsaw  for  Apple’s  iPod   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   Midstream  Cards   Upstream  Cards   Key  Partners  (KP)   q  Record  companies   q  Original  Equipment   Manufacturers   Key  Resources  (KR)   q  q  q  q  Staff/Employees   Brand/Culture   IP   Infrastructure:  IT   Key  AcWviWes  (KA)   q  Luxury  Spot  Strategy   q  Hardware/Solware  Design   q  Marke1ng  &  Sales   Value  ProposiWon  (VP)   q  “A  Thousand  Songs  in  Your   Pocket”   q  Seamless  Music  XP   q  iPod  Hardware   Channels  (CH)  &  Customer   RelaWonships  (CR)   Downstream  Cards   PAIN:   Cost  Structure  (C$)   q  Staff/Employees   q  Manufacturing/Infra’   q  Marke1ng  &  Sales   DELIGHT:   Revenue  Streams  (R$)   q  Apple.com;  Big  Box  Retailer   q  iTunes  Store;  Retail  stores   q  iPod  Hardware   q  iTunes   q  Commissions   Customer  Segments  (CS)   VALUE:   PROFIT   q  Online/Face-­‐to-­‐Face;  Lock-­‐in   q  Luxury  Spoker:                  Listen  to  music  everywhere   q  Customer  Habit  Engine   q  High  Profit  Margin   q  Extraordinary  Profit   q  Performance  Metrics  
    • Business  Model  Jigsaw  for  Apple’s  iPod   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   Key  Partners  (KP)   q  Record  companies   q  Original  Equipment   Manufacturers   Key  Resources  (KR)   q  q  q  q  Staff/Employees   Brand/Culture   IP   Infrastructure:  IT   Key  AcWviWes  (KA)   q  Luxury  Spot  Strategy   q  Hardware/Solware  Design   q  Marke1ng  &  Sales   WHY?   WHAT?   HOW?   Value  ProposiWon  (VP)   q  “A  Thousand  Songs  in  Your   Pocket”   q  Seamless  Music  XP   q  iPod  Hardware   Channels  (CH)  &  Customer   RelaWonships  (CR)   PAIN:   Cost  Structure  (C$)   q  Staff/Employees   q  Manufacturing/Infra’   q  Marke1ng  &  Sales   DELIGHT:   Revenue  Streams  (R$)   q  Apple.com;  Big  Box  Retailer   q  iTunes  Store;  Retail  stores   q  iPod  Hardware   q  iTunes   q  Commissions   Customer  Segments  (CS)   VALUE:   PROFIT   q  Online/Face-­‐to-­‐Face;  Lock-­‐in   q  Luxury  Spoker:                  Listen  to  music  everywhere   q  Customer  Habit  Engine   q  High  Profit  Margin   q  Extraordinary  Profit   q  Performance  Metrics  
    • How  to  Basically  Use  the  Business  Model  Jigsaw   1.  Plot  the  Gameboard  of  the  Business  Model  Jigsaw  on  a  Poster   2.  Place  the  Poster  on  a  Table   3.  Lay  Out  –  Especially  Using  Index  Cards                or  Blank  Business  Cards  –  the  Business  Model              In  Terms  of  its  3  Engines:   HOW?   WHAT?   Enterprise  Engine   Growth  Engine   q Value  Engine   q Growth  Engine   q Enterprise  Engine   WHY?   Value  Engine  
    • AlternaWve  Forms  of  “3  Stream-­‐Jigsaw  Board”   (Non-­‐magne1c/Magne1c/Sta1c)  
    • AlternaWve  Forms  of  “Jigsaw  Cards”   (Non-­‐magne1c/Magne1c/Sta1c)  
    • Appendix  
    • Advanced  Business  Model  Jigsaw   LEVEL  2:  Network  (Func?onal  Analysis)  Diagram  
    • Simply  Prepare   A  Business  Model  Strategy  Map  
    • A  Business  Model  Strategy  Map   Is   A  Cause-­‐and-­‐Effect  Diagram   That  Illustrates   How  an  OrganizaWon   Creates,  Delivers,  and  Shares  Value   (Profit)  
    • A  Business  Model  Strategy  Map   Facilitates   The  TranslaWon  of   Mission/Vision/Purpose   Into   Reality  
    • Business  Model  Jigsaw   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   MISSION/VISION/PURPOSE:  ………………………………………………………………………………………………………………………………………  
    • Business  Model  Jigsaw   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   HOW?   WHAT?   WHY?  
    • Business  Model  Jigsaw   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   Upstream   Midstream   Downstream  
    • Business  Model  Jigsaw   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   Upstream  Cards   Supply:  Value  CreaXon     Midstream  Cards   Demand:  Value  Delivery   Downstream  Cards   Value  Sharing  (Capture)  
    • Business  Model  Jigsaw   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   Key  Partners  (KP)         Value  ProposiWon  (VP)       PAIN:   Cost  Structure  (C$)         Key  Resources  (KR)         Channels  (CH)  &  Customer   RelaWonships  (CR)       DELIGHT:   Revenue  Streams  (R$)       Key  AcWviWes  (KA)         Customer  Segments  (CS)       VALUE:   PROFIT        
    • Business  Model  Jigsaw   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   Key  Partners  (KP)         Value  ProposiWon  (VP)       PAIN:   Cost  Structure  (C$)         Key  Resources  (KR)         Channels  (CH)  &  Customer   RelaWonships  (CR)       DELIGHT:   Revenue  Streams  (R$)       Key  AcWviWes  (KA)         Customer  Segments  (CS)       VALUE:   PROFIT        
    • Business  Model  Jigsaw   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model     affect(s)   Key  Resources  (KR)         impact(s)   impact(s)   Channels  (CH)  &  Customer   RelaWonships  (CR)       deliver(s)   Key  AcWviWes  (KA)         affect(s)   impact(s)   affect(s)   Customer  Segments  (CS)         PAIN:   Cost  Structure  (C$)     impacts     affects   DELIGHT:   Revenue  Streams  (R$)       drive(s)   impact(s)   Value  ProposiWon  (VP)       (Problem-­‐Solu1on  Fit;  Product-­‐Market  Fit)   Key  Partners  (KP)         VALUE:   PROFIT      
    • Business  Model  Jigsaw   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   Key  Partners  (KP)         impact(s)   Value  ProposiWon  (VP)         affect(s)   Key  Resources  (KR)         impact(s)   impact(s)     Key  AcWviWes  (KA)         impact(s)   DELIGHT:   Revenue  Streams  (R$)       affect(s)   Customer  Segments  (CS)           affect(s)   Channels  (CH)  &  Customer   RelaWonships  (CR)     deliver(s)   PAIN:   Cost  Structure  (C$)     VALUE:   PROFIT      
    • Business  Model  Jigsaw   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model     affect(s)   Key  Resources  (KR)         impact(s)   impact(s)   Channels  (CH)  &  Customer   RelaWonships  (CR)       deliver(s)   Key  AcWviWes  (KA)         affect(s)   impact(s)   affect(s)   Customer  Segments  (CS)         PAIN:   Cost  Structure  (C$)     impacts     affects   DELIGHT:   Revenue  Streams  (R$)       drive(s)   impact(s)   Value  ProposiWon  (VP)   [Product/Service]     (Problem-­‐Solu1on  Fit;  Product-­‐Market  Fit)   Key  Partners  (KP)         VALUE:   PROFIT      
    • Business  Model  Jigsaw   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model     affect(s)   Key  Resources  (KR)         impact(s)   impact(s)   Channels  (CH)  &  Customer   RelaWonships  (CR)       deliver(s)   Key  AcWviWes  (KA)         affect(s)   impact(s)   affect(s)   Customer  Segments  (CS)         PAIN:   Cost  Structure  (C$)     impacts     affects   DELIGHT:   Revenue  Streams  (R$)       drive(s)   Value  ProposiWon  (VP)   [Product/Service]     (Problem-­‐Solu1on  Fit;  Product-­‐Market  Fit)   Key  Partners  (KP)         impact(s)   WHY?   WHAT?   HOW?   VALUE:   PROFIT      
    • Example  
    • Business  Model  Jigsaw   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   HOW?   WHAT?   WHY?  
    • Business  Model  Jigsaw  for  Apple’s  iPod   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   Upstream  Cards   Midstream  Cards   Downstream  Cards  
    • Business  Model  Jigsaw  for  Apple’s  iPod   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   Key  Partners  (KP)   q  Record  companies   q  Original  Equipment   Manufacturers   Key  Resources  (KR)   q  q  q  q  Staff/Employees   Brand/Culture   IP   Infrastructure:  IT   Key  AcWviWes  (KA)   q  Luxury  Spot  Strategy   q  Hardware/Solware  Design   q  Marke1ng  &  Sales   Value  ProposiWon  (VP)   q  “A  Thousand  Songs  in  Your   Pocket”   q  Seamless  Music  XP   q  iPod  Hardware   Channels  (CH)  &  Customer   RelaWonships  (CR)   PAIN:   Cost  Structure  (C$)   q  Staff/Employees   q  Manufacturing/Infra’   q  Marke1ng  &  Sales   DELIGHT:   Revenue  Streams  (R$)   q  Apple.com;  Big  Box  Retailer   q  iTunes  Store;  Retail  stores   q  iPod  Hardware   q  iTunes   q  Commissions   Customer  Segments  (CS)   VALUE:   PROFIT   q  Online/Face-­‐to-­‐Face;  Lock-­‐in   q  Luxury  Spoker:                  Listen  to  music  everywhere   q  Customer  Habit  Engine   q  High  Profit  Margin   q  Extraordinary  Profit   q  Performance  Metrics  
    • Business  Model  Jigsaw  for  Apple’s  iPod   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   Key  Partners  (KP)   q  Record  companies   q  Original  Equipment   Manufacturers   Key  Resources  (KR)   q  q  q  q  Staff/Employees   Brand/Culture   IP   Infrastructure:  IT   Key  AcWviWes  (KA)   q  Luxury  Spot  Strategy   q  Hardware/Solware  Design   q  Marke1ng  &  Sales   Value  ProposiWon  (VP)   q  “A  Thousand  Songs  in  Your   Pocket”   q  Seamless  Music  XP   q  iPod  Hardware   Channels  (CH)  &  Customer   RelaWonships  (CR)   PAIN:   Cost  Structure  (C$)   q  Staff/Employees   q  Manufacturing/Infra’   q  Marke1ng  &  Sales   DELIGHT:   Revenue  Streams  (R$)   q  Apple.com;  Big  Box  Retailer   q  iTunes  Store;  Retail  stores   q  iPod  Hardware   q  iTunes   q  Commissions   Customer  Segments  (CS)   VALUE:   PROFIT   q  Online/Face-­‐to-­‐Face;  Lock-­‐in   q  Luxury  Spoker:                  Listen  to  music  everywhere   q  Customer  Habit  Engine   q  High  Profit  Margin   q  Extraordinary  Profit   q  Performance  Metrics  
    • Business  Model  Jigsaw  for  Apple’s  iPod   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   impact(s)   affect(s)   Key  Resources  (KR)   q  q  q  q  Staff/Employees   Brand/Culture   IP   Infrastructure:  IT   impact(s)   deliver(s)   Key  AcWviWes  (KA)   q  Luxury  Spot  Strategy   q  Hardware/Solware  Design   q  Marke1ng  &  Sales   q  “A  Thousand  Songs  in  Your   Pocket”   q  Seamless  Music  XP   q  iPod  Hardware   impact(s)   affect(s)   Channels  (CH)  &  Customer   RelaWonships  (CR)   q  Apple.com;  Big  Box  Retailer   q  iTunes  Store;  Retail  stores   q  Online/Face-­‐to-­‐Face;  Lock-­‐in   impact(s)   affect(s)   Customer  Segments  (CS)   q  Luxury  Spoker:                  Listen  to  music  everywhere   q  Customer  Habit  Engine   impacts   affects   q  Staff/Employees   q  Manufacturing/Infra’   q  Marke1ng  &  Sales   DELIGHT:   Revenue  Streams  (R$)   q  iPod  Hardware   q  iTunes   q  Commissions   drive(s)   q  Record  companies   q  Original  Equipment   Manufacturers   PAIN:   Cost  Structure  (C$)   Value  ProposiWon  (VP)   (Problem-­‐Solu1on  Fit;  Product-­‐Market  Fit)   Key  Partners  (KP)   VALUE:   PROFIT   q  High  Profit  Margin   q  Extraordinary  Profit   q  Performance  Metrics  
    • Business  Model  Jigsaw  for  Apple’s  iPod   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   Key  Partners  (KP)   q  Record  companies   q  Original  Equipment   Manufacturers   impact(s)   affect(s)   Key  Resources  (KR)   q  q  q  q  Staff/Employees   Brand/Culture   IP   Infrastructure:  IT   impact(s)   deliver(s)   Key  AcWviWes  (KA)   q  Luxury  Spot  Strategy   q  Hardware/Solware  Design   q  Marke1ng  &  Sales   Value  ProposiWon  (VP)   q  “A  Thousand  Songs  in  Your   Pocket”   q  Seamless  Music  XP   q  iPod  Hardware   impact(s)   q  Apple.com;  Big  Box  Retailer   q  iTunes  Store;  Retail  stores   Online/Face-­‐to-­‐Face;  Lock-­‐in   impact(s)   q  Staff/Employees   q  Manufacturing/Infra’   q  Marke1ng  &  Sales   affect(s)   Channels  (CH)  &  Customer   RelaWonships  (CR)   q  PAIN:   Cost  Structure  (C$)   DELIGHT:   Revenue  Streams  (R$)   q  iPod  Hardware   q  iTunes   q  Commissions   affect(s)   Customer  Segments  (CS)   q  Luxury  Spoker:                  Listen  to  music  everywhere   q  Customer  Habit  Engine   VALUE:   PROFIT   q  High  Profit  Margin   q  Extraordinary  Profit   q  Performance  Metrics  
    • Business  Model  Jigsaw  for  Apple’s  iPod   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   impact(s)   affect(s)   Key  Resources  (KR)   q  q  q  q  Staff/Employees   Brand/Culture   IP   Infrastructure:  IT   impact(s)   deliver(s)   Key  AcWviWes  (KA)   q  Luxury  Spot  Strategy   q  Hardware/Solware  Design   q  Marke1ng  &  Sales   q  “A  Thousand  Songs  in  Your   Pocket”   q  Seamless  Music  XP   q  iPod  Hardware   impact(s)   affect(s)   Channels  (CH)  &  Customer   RelaWonships  (CR)   q  Apple.com;  Big  Box  Retailer   q  iTunes  Store;  Retail  stores   q  Online/Face-­‐to-­‐Face;  Lock-­‐in   impact(s)   affect(s)   Customer  Segments  (CS)   q  Luxury  Spoker:                  Listen  to  music  everywhere   q  Customer  Habit  Engine   impacts   affects   q  Staff/Employees   q  Manufacturing/Infra’   q  Marke1ng  &  Sales   DELIGHT:   Revenue  Streams  (R$)   q  iPod  Hardware   q  iTunes   q  Commissions   drive(s)   q  Record  companies   q  Original  Equipment   Manufacturers   PAIN:   Cost  Structure  (C$)   Value  ProposiWon  (VP)   (Problem-­‐Solu1on  Fit;  Product-­‐Market  Fit)   Key  Partners  (KP)   VALUE:   PROFIT   q  High  Profit  Margin   q  Extraordinary  Profit   q  Performance  Metrics  
    • Business  Model  Jigsaw  for  Apple’s  iPod   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   affect(s)   Key  Resources  (KR)   q  q  q  q  Staff/Employees   Brand/Culture   IP   Infrastructure:  IT   impact(s)   deliver(s)   Key  AcWviWes  (KA)   q  Luxury  Spot  Strategy   q  Hardware/Solware  Design   q  Marke1ng  &  Sales   q  “A  Thousand  Songs  in  Your   Pocket”   q  Seamless  Music  XP   q  iPod  Hardware   impact(s)   affect(s)   Channels  (CH)  &  Customer   RelaWonships  (CR)   q  Apple.com;  Big  Box  Retailer   q  iTunes  Store;  Retail  stores   q  Online/Face-­‐to-­‐Face;  Lock-­‐in   impact(s)   affect(s)   Customer  Segments  (CS)   q  Luxury  Spoker:                  Listen  to  music  everywhere   q  Customer  Habit  Engine   impacts   affects   q  Staff/Employees   q  Manufacturing/Infra’   q  Marke1ng  &  Sales   DELIGHT:   Revenue  Streams  (R$)   q  iPod  Hardware   q  iTunes   q  Commissions   drive(s)   q  Record  companies   q  Original  Equipment   Manufacturers   PAIN:   Cost  Structure  (C$)   Value  ProposiWon  (VP)   (Problem-­‐Solu1on  Fit;  Product-­‐Market  Fit)   Key  Partners  (KP)   impact(s)   WHY?   WHAT?   HOW?   VALUE:   PROFIT   q  High  Profit  Margin   q  Extraordinary  Profit   q  Performance  Metrics  
    • Environment   Of   A  Business  Model  Jigsaw   LEVEL  3:  Environment  (Supersystem)  Diagram  
    •  Environment  of  Business  Model  Jigsaw:  “SWOT”  Factors     W:  Weaknesses   ENTERPRISE   ENGINE:   Build   Value  Delivery:   Midstream  Cards   GROWTH   ENGINE:   Measure   T:  Threats   Value  Sharing  (Happiness):   Downstream  Cards   VALUE   ENGINE:   Learn   O:  OpportuniWes   S:  Strengths   Value  Crea?on:   Upstream  Cards  
    • Environment  of  Business  Model  Jigsaw:  Environmental  Factors       Value  Crea?on:   Upstream  Cards   ENTERPRISE   ENGINE:   Build   Value  Delivery:   Midstream  Cards   GROWTH   ENGINE:   Measure   ENVIRONMENT   Value  Sharing  (Happiness):   Downstream  Cards   VALUE   ENGINE:   Learn  
    • Environment  of  Business  Model  Jigsaw:  Global  Environmental  Factors     Value  Crea?on:   Upstream  Cards   ENTERPRISE   ENGINE:   Build   Value  Delivery:   Midstream  Cards   GROWTH   ENGINE:   Measure   Value  Sharing  (Happiness):   Downstream  Cards   VALUE   ENGINE:   Learn   Macro-­‐Economic  Influencers  (MEI):  Global  Economy   Market  Ecosystem  (ME):  Demand   Industry  Ecosystem  (IE):  Supply   Key  Trends  &  Complementors  (KTC):  PESTLIED  (-­‐/+)  
    • Environment  of  Business  Model  Jigsaw:  Local  Industry  Factors     Value  Crea?on:   Upstream  Cards   ENTERPRISE   ENGINE:   Build   Value  Delivery:   Midstream  Cards   GROWTH   ENGINE:   Measure   Value  Sharing  (Happiness):   Downstream  Cards   VALUE   ENGINE:   Learn   Threat  of  SubsWtute  Products  or  Services   Bargaining  Power  of  Customers   Bargaining  Power  of  Suppliers   Threat  of  New  Entrants