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The Rich 3-Act Business Model STORYBOARD: Rapid Business Model Prototyping, Strategy, Validation, and Execution
 

The Rich 3-Act Business Model STORYBOARD: Rapid Business Model Prototyping, Strategy, Validation, and Execution

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Despite the recent proliferation in business model representation, business model visualization is relatively poor and still fraught with many problems. I’ve observed 10 Business Model Problems, ...

Despite the recent proliferation in business model representation, business model visualization is relatively poor and still fraught with many problems. I’ve observed 10 Business Model Problems, each problem of which has been solved by the “3-Act Business Model Network,” a simple and information-rich platform for visualizing, organizing, integrating, discussing, innovating on, testing, evaluating, benchmarking, and managing business models as well as stories.

In brief, the 3-Act Business Model Network provides an all-in-one platform for facilitating not only business model prototyping, strategy, validation, and execution but also story prototyping, testing, and management. Using the “rich” 3-Act Business Model Network, you could achieve great savings in time, cost, and energy while holistically prototyping and managing business models as well as inspirational stories of change.

To facilitate use of the 3-Act Business Model Network, the tool is applied to the business model of Apple’s iPod; see http://goo.gl/zdZ05f

Below is a list of 10 problems that plague other representations of a business model.

#1: TOWER-OF-BABEL Problem

#2: BUILDING BLOCK OVERLOAD Problem

#3: INCOHERENT BUSINESS-MODEL-LOGIC Problem

#4: REVERSE-INCOME-STATEMENT Problem

#5: ASSUMPTION-FORMULATION-AND-TESTING Problem

#6: PERFORMANCE-MANAGEMENT Problem

#7: EXTERNAL BUSINESS MODEL INTEGRATION Problem

#8: HOLISTIC BUSINESS MODEL Problem

#9: UNILEVEL BUSINESS MODEL Problem

#10: SHARED-VALUE Problem

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  • @RodKing Rod, I thank you for your enlightening response. Yes, you are taking us step by step on the iteration journey. Each presentation adds to the previous one. It is not only you are describing a 3-Act Model; it is also you are applying it in enriching our knowledge. By also being fractal, the more you probe in, the more you see. It is a fractal journey. You are giving us the magnifier and the tool to zoom-in and zoom-out. Rod, the discovery journal of your 3-Act Business Model is infinite because it is fractal. We are on board to discover more.
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  • Ali, I feel honored to be called 'Iteration Man' by you. Through iteration all things are possible. Iteration is really at the heart of innovation, adaptation, evolution, and problem solving. Through the moniker of 'Iteration Man,' you succinctly capture my essence. With regard to the spread of time between the three acts, I'd say the second act or 'Value Proposition Model' is most important and should consume the most time. If the Value Proposition Model is weak or does not work, the Value Sharing (Profit) Model will also be weak or at worst, fail. In my view, the Value Creation Model exists to support demand created by the Value Proposition Model. Consequently, the design of the Value Creation Model should be derived from the design of the Value Proposition Model. Likewise, the design of the Value Proposition Model should be derived from the aspirations of the Value Sharing (Profit) Model. As Stephen Covey used to say, 'Begin with the end in mind.' In recent years, this design approach has been reinforced by Simon Sinek who says, 'Start with Why.' In my parlance, I'd say start any project on business planning, design, and modeling with the Value Sharing (Profit) Model for it provides the why or 'oxygen' of a business. But, as we all know, man does not leave by oxygen alone. Fulfillment of the second act - the Value Proposition Model - makes life more meaningful as it directly focuses on improving the lives of customers. Given a choice of where to spend the most time, I'd choose the Value Proposition Model: knowing and delivering what delights customers takes an awfully long time. But, the rewards or Value Sharing (Profit) would certainly justify the time spent on the Value Proposition Act.
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  • Rod, I was about to call you 'The Waterfall of Ideas'. I decided not, because the waterfall model is inadequate in tracing complexity. So, The Iterative Man may be better. You take us almost weekly on an iterative model that is improved from the previous one. This presentation is amazingly clear and logical.
    In story writing, the bulk of work is on the second act. How do you envisage the spread of time on each of the three acts that they feedback to each other?
    Dr. Rod King- thanks for rewarding us with this great show.
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    The Rich 3-Act Business Model STORYBOARD: Rapid Business Model Prototyping, Strategy, Validation, and Execution The Rich 3-Act Business Model STORYBOARD: Rapid Business Model Prototyping, Strategy, Validation, and Execution Presentation Transcript

    •   #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  h:p://businessmodels.ning.com  &  h:p://twi:er.com/RodKuhnKing   Innovator     Marketer     Accountant     3-­‐ACT  BUSINESS  MODEL  STORYBOARD  for  Apple’s  Classic  iPod   An  Informa*on  Rich  Pla1orm  for  Rapid  Business  Model  Prototyping,  Strategy,  Valida*on,  and  Execu*on  
    •   #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  h:p://businessmodels.ning.com  &  h:p://twi:er.com/RodKuhnKing   Innovator     Marketer     Accountant     3-­‐ACT  BUSINESS  MODEL  STORYBOARD  for  Apple’s  Classic  iPod   An  Informa*on  Rich  Pla1orm  for  Rapid  Business  Model  Prototyping,  Strategy,  Valida*on,  and  Execu*on   JOB  TO  GET  DONE   Sa*sfy  Demand   Create  Demand   Generate  Profit  
    •   #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  h:p://businessmodels.ning.com  &  h:p://twi:er.com/RodKuhnKing   Innovator     Marketer     Accountant     3-­‐ACT  BUSINESS  MODEL  STORYBOARD  for  Apple’s  Classic  iPod   An  Informa*on  Rich  Pla1orm  for  Rapid  Business  Model  Prototyping,  Strategy,  Valida*on,  and  Execu*on   JOB  TO  GET  DONE   Sa*sfy  Demand   Create  Demand   Generate  Profit  
    •   #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  h:p://businessmodels.ning.com  &  h:p://twi:er.com/RodKuhnKing   Innovator     Marketer     Accountant     delivers   requires   drives   requires   3-­‐ACT  BUSINESS  MODEL  STORYBOARD  for  Apple’s  Classic  iPod   An  Informa*on  Rich  Pla1orm  for  Rapid  Business  Model  Prototyping,  Strategy,  Valida*on,  and  Execu*on  
    •   #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  h:p://businessmodels.ning.com  &  h:p://twi:er.com/RodKuhnKing   Innovator   (Product)   Marketer   (Customer)   Accountant   (Profit)   delivers   requires   drives   requires   3-­‐ACT  BUSINESS  MODEL  STORYBOARD  for  Apple’s  Classic  iPod   An  Informa*on  Rich  Pla1orm  for  Rapid  Business  Model  Prototyping,  Strategy,  Valida*on,  and  Execu*on  
    •   #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  h:p://businessmodels.ning.com  &  h:p://twi:er.com/RodKuhnKing   VALUE  CREATION   MODEL   VALUE  PROPOSITION   MODEL   VALUE  SHARING   (PROFIT)  MODEL   delivers   requires   drives   requires   3-­‐ACT  BUSINESS  MODEL  STORYBOARD  for  Apple’s  Classic  iPod   An  Informa*on  Rich  Pla1orm  for  Rapid  Business  Model  Prototyping,  Strategy,  Valida*on,  and  Execu*on  
    •   #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  h:p://businessmodels.ning.com  &  h:p://twi:er.com/RodKuhnKing   VALUE  CREATION   MODEL   VALUE  PROPOSITION   MODEL   VALUE  SHARING   (PROFIT)  MODEL   delivers   requires   drives   requires   3-­‐ACT  BUSINESS  MODEL  STORYBOARD  for  Apple’s  Classic  iPod   An  Informa*on  Rich  Pla1orm  for  Rapid  Business  Model  Prototyping,  Strategy,  Valida*on,  and  Execu*on   Product/Value  ProposiUon   q iPod  Hardware   q “A  Thousand  Songs  in  Your   Pocket”   Channels  &  RelaUonships   q www.apple.com   q Apple  Retail  Stores   q iTunes  Store   q Big  Box  Retailers   Customer/Job-­‐To-­‐Get-­‐Done   q Luxury  SpoDer   q “Blue  Ocean”  XP   q Listen  to  Music  Everywhere   q Bulky  players;  small  storage   Inputs/Partners     q Original  Equipment  Manu.   q Record  Companies     Internal  Resources   q Staff/Employees   q Brand/Culture   q IP     Processes/AcUviUes   q Luxury  Spot  Strategy   q Hardware  Design   q SoPware  Design   q MarkeQng  &  Sales   Revenue  (Delight):  High   Items  (Sources/Streams)   q iPod  Hardware   q iTunes  Store   q Commissions   PROFIT  (VALUE):  High   q High  Profit  Margin   q Extraordinary  Profit   q Luxury  Spot  Strategy   Ent.  Industry:  Music  (Share)   Cost  (Pain):  High   Items  (Structure)   q Staff/Employees   q Manufacturing   q MarkeQng  &  Sales  
    •   #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  h:p://businessmodels.ning.com  &  h:p://twi:er.com/RodKuhnKing   VALUE  CREATION   MODEL   VALUE  PROPOSITION   MODEL   VALUE  SHARING   (PROFIT)  MODEL   delivers   requires   drives   requires   3-­‐ACT  BUSINESS  MODEL  STORYBOARD  for  Apple’s  Classic  iPod   An  Informa*on  Rich  Pla1orm  for  Rapid  Business  Model  Prototyping,  Strategy,  Valida*on,  and  Execu*on   Product/Value  ProposiUon   q iPod  Hardware   q “A  Thousand  Songs  in  Your   Pocket”   Channels  &  RelaUonships   q www.apple.com   q Apple  Retail  Stores   q iTunes  Store   q Big  Box  Retailers   Customer/Job-­‐To-­‐Get-­‐Done   q Luxury  SpoDer   q “Blue  Ocean”  XP   q Listen  to  Music  Everywhere   q Bulky  players;  small  storage   Inputs/Partners     q Original  Equipment  Manu.   q Record  Companies     Internal  Resources   q Staff/Employees   q Brand/Culture   q IP     Processes/AcUviUes   q Luxury  Spot  Strategy   q Hardware  Design   q SoPware  Design   q MarkeQng  &  Sales   Cost  (Pain):  High   Items  (Structure)   q Staff/Employees   q Manufacturing   q MarkeQng  &  Sales   Revenue  (Delight):  High   Items  (Sources/Streams)   q iPod  Hardware   q iTunes  Store   q Commissions   PROFIT  (VALUE):  High   q High  Profit  Margin   q Extraordinary  Profit   q Luxury  Spot  Strategy   Ent.  Industry:  Music  (Share)  
    •   #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  h:p://businessmodels.ning.com  &  h:p://twi:er.com/RodKuhnKing   VALUE  CREATION   MODEL   VALUE  PROPOSITION   MODEL   VALUE  SHARING   (PROFIT)  MODEL   delivers   requires   drives   requires   3-­‐ACT  BUSINESS  MODEL  STORYBOARD  for  Apple’s  Classic  iPod   An  Informa*on  Rich  Pla1orm  for  Rapid  Business  Model  Prototyping,  Strategy,  Valida*on,  and  Execu*on   Product/Value  ProposiUon   q iPod  Hardware   q “A  Thousand  Songs  in  Your   Pocket”   Channels  &  RelaUonships   q www.apple.com   q Apple  Retail  Stores   q iTunes  Store   q Big  Box  Retailers   Customer/Job-­‐To-­‐Get-­‐Done   q Luxury  SpoDer   q “Blue  Ocean”  XP   q Listen  to  Music  Everywhere   q Bulky  players;  small  storage   Inputs/Partners     q Original  Equipment  Manu.   q Record  Companies     Internal  Resources   q Staff/Employees   q Brand/Culture   q IP     Processes/AcUviUes   q Luxury  Spot  Strategy   q Hardware  Design   q SoPware  Design   q MarkeQng  &  Sales   Cost  (Pain):  High   Items  (Structure)   q Staff/Employees   q Manufacturing   q MarkeQng  &  Sales   Revenue  (Delight):  High   Items  (Sources/Streams)   q iPod  Hardware   q iTunes  Store   q Commissions   PROFIT  (VALUE):  High   q High  Profit  Margin   q Extraordinary  Profit   q Luxury  Spot  Strategy   Ent.  Industry:  Music  (Share)   (Problem-­‐SoluQon  Fit;  Product-­‐Market  Fit)  
    •   #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  h:p://businessmodels.ning.com  &  h:p://twi:er.com/RodKuhnKing   VALUE  CREATION   MODEL   VALUE  PROPOSITION   MODEL   VALUE  SHARING   (PROFIT)  MODEL   delivers   requires   drives   requires   3-­‐ACT  BUSINESS  MODEL  STORYBOARD  for  Apple’s  Classic  iPod   An  Informa*on  Rich  Pla1orm  for  Rapid  Business  Model  Prototyping,  Strategy,  Valida*on,  and  Execu*on   Product/Value  ProposiUon   q iPod  Hardware   q “A  Thousand  Songs  in  Your   Pocket”   Channels  &  RelaUonships   q www.apple.com   q Apple  Retail  Stores   q iTunes  Store   q Big  Box  Retailers   Customer/Job-­‐To-­‐Get-­‐Done   q Luxury  SpoDer   q “Blue  Ocean”  XP   q Listen  to  Music  Everywhere   q Bulky  players;  small  storage   require(s)   delight(s)   require(s)   delight(s)   Inputs/Partners     q Original  Equipment  Manu.   q Record  Companies     Internal  Resources   q Staff/Employees   q Brand/Culture   q IP     require(s)   affect(s)   require(s)   deliver(s)   drive(s)   requires   delights   Processes/AcUviUes   q Luxury  Spot  Strategy   q Hardware  Design   q SoPware  Design   q MarkeQng  &  Sales   Revenue  (Delight):  High   Items  (Sources/Streams)   q iPod  Hardware   q iTunes  Store   q Commissions   PROFIT  (VALUE):  High   q High  Profit  Margin   q Extraordinary  Profit   q Luxury  Spot  Strategy   Ent.  Industry:  Music  (Share)   Cost  (Pain):  High   Items  (Structure)   q Staff/Employees   q Manufacturing   q MarkeQng  &  Sales  
    •   #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  h:p://businessmodels.ning.com  &  h:p://twi:er.com/RodKuhnKing   VALUE  CREATION   MODEL   VALUE  PROPOSITION   MODEL   VALUE  SHARING   (PROFIT)  MODEL   delivers   requires   drives   requires   3-­‐ACT  BUSINESS  MODEL  STORYBOARD  for  Apple’s  Classic  iPod   An  Informa*on  Rich  Pla1orm  for  Rapid  Business  Model  Prototyping,  Strategy,  Valida*on,  and  Execu*on   Product/Value  ProposiUon   q iPod  Hardware   q “A  Thousand  Songs  in  Your   Pocket”   Channels  &  RelaUonships   q www.apple.com   q Apple  Retail  Stores   q iTunes  Store   q Big  Box  Retailers   Customer/Job-­‐To-­‐Get-­‐Done   q Luxury  SpoDer   q “Blue  Ocean”  XP   q Listen  to  Music  Everywhere   q Bulky  players;  small  storage   require(s)   require(s)   Inputs/Partners     q Original  Equipment  Manu.   q Record  Companies     Internal  Resources   q Staff/Employees   q Brand/Culture   q IP     require(s)   affect(s)   require(s)   deliver(s)   drive(s)   requires   delights   Processes/AcUviUes   q Luxury  Spot  Strategy   q Hardware  Design   q SoPware  Design   q MarkeQng  &  Sales   Revenue  (Delight):  High   Items  (Sources/Streams)   q iPod  Hardware   q iTunes  Store   q Commissions   PROFIT  (VALUE):  High   q High  Profit  Margin   q Extraordinary  Profit   q Luxury  Spot  Strategy   Ent.  Industry:  Music  (Share)   Cost  (Pain):  High   Items  (Structure)   q Staff/Employees   q Manufacturing   q MarkeQng  &  Sales   delight(s)   delight(s)  
    •   “[A]  business  model  makes  it  possible   for  you  to  gain  a  comprehensive  and   realisQc  understanding  of  how  to  make   money.”     Larry  Bossidy  and  Ram  Charan  in  the  book,  “ConfronQng  Reality”   Why  Use  “Business  Model”   As  Unit  of  Analysis?  
    • Law  of  the  3-­‐Act  Business  Model   Although  Stories,  Businesses,  Business  Models,  Living  Systems,  and   Other  OrganizaUons  Appear  Different  on  the  Surface,   Every  Story,  Enterprise,  Business  Model,  Living  System,  or   OrganizaQon  on  the  Planet  Has  the  Same  Fractal  “DNA”  Structure   Which  Consists  of  a  Network  of  3  “Acts”  or  Sub-­‐models:     v     Value  CreaUon  Act:  System   v     Value  ProposiUon  Act:  Environment  (Local/Global)     v     Value  Sharing  (Profit)  Act:  Impact  or  Trade-­‐off  (Pain;  Delight)     #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  h:p://businessmodels.ning.com  &  h:p://twi:er.com/RodKuhnKing  
    • ENVIRONMENT  (Local/Global)   Law  of  the  3-­‐Act  Business  Model:  Storyboard  of  Paradigm  for  Universal  System  Modeling   IMPACT  or  TRADE-­‐OFF  (-­‐/+)     #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  h:p://businessmodels.ning.com  &  h:p://twi:er.com/RodKuhnKing   SYSTEM   (Object/Tool/Business  Model)  
    • ENVIRONMENT  (Local/Global)   Law  of  the  3-­‐Act  Business  Model:  Storyboard  of  Paradigm  for  Universal  System  Modeling   IMPACT  or  TRADE-­‐OFF  (-­‐/+)     #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  h:p://businessmodels.ning.com  &  h:p://twi:er.com/RodKuhnKing   3-­‐ACT  BUSINESS  MODEL  
    • ENVIRONMENT  (Local/Global)   IMPACT  or  TRADE-­‐OFF  (-­‐/+)     #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  h:p://businessmodels.ning.com  &  h:p://twi:er.com/RodKuhnKing   VALUE  CREATION   MODEL     VALUE  PROPOSITION   MODEL     VALUE  SHARING   (PROFIT)  MODEL     Law  of  the  3-­‐Act  Business  Model:  Storyboard  of  Paradigm  for  Universal  System  Modeling  
    • ENVIRONMENT  (Local/Global)   IMPACT  or  TRADE-­‐OFF  (-­‐/+)     #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  h:p://businessmodels.ning.com  &  h:p://twi:er.com/RodKuhnKing   VALUE  CREATION   MODEL     VALUE  PROPOSITION   MODEL     VALUE  SHARING   (PROFIT)  MODEL     Law  of  the  3-­‐Act  Business  Model:  Storyboard  of  Paradigm  for  Universal  System  Modeling   Innovator’s   PerspecQve   Marketer’s   PerspecQve   Investor’s   PerspecQve  
    • ENVIRONMENT  (Local/Global)   IMPACT  or  TRADE-­‐OFF  (-­‐/+)     #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  h:p://businessmodels.ning.com  &  h:p://twi:er.com/RodKuhnKing   VALUE  CREATION   MODEL     VALUE  PROPOSITION   MODEL     VALUE  SHARING   (PROFIT)  MODEL     FITNESS?   FITNESS?   Law  of  the  3-­‐Act  Business  Model:  Storyboard  of  Paradigm  for  Universal  System  Modeling   Innovator’s   PerspecQve   Marketer’s   PerspecQve   Investor’s   PerspecQve   FITNESS?   Product   Customer   Profit  
    • ENVIRONMENT  (Local/Global)   IMPACT  or  TRADE-­‐OFF  (-­‐/+)     #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  h:p://businessmodels.ning.com  &  h:p://twi:er.com/RodKuhnKing   VALUE  CREATION   MODEL:   How?   VALUE  PROPOSITION   MODEL:   What?   VALUE  SHARING   (PROFIT)  MODEL:   Why?   Law  of  the  3-­‐Act  Business  Model:  Storyboard  of  Paradigm  for  Universal  System  Modeling  
    • IMPACT  or  TRADE-­‐OFF  (-­‐/+)     #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  h:p://businessmodels.ning.com  &  h:p://twi:er.com/RodKuhnKing   VALUE  CREATION   MODEL:   How?   VALUE  PROPOSITION   MODEL:   What?   VALUE  SHARING   (PROFIT)  MODEL:   Why?   Bargaining  Power  of  Suppliers   Bargaining  Power  of  Customers   Threat  of  New  Entrants   Threat  of  SubsUtute  Products  or  Services   Porter’s  5  Forces  for  Industry  Profitability  &  Fitness  Analysis   Law  of  the  3-­‐Act  Business  Model:  Storyboard  of  Paradigm  for  Universal  System  Modeling  
    • IMPACT  or  TRADE-­‐OFF  (-­‐/+)     #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  h:p://businessmodels.ning.com  &  h:p://twi:er.com/RodKuhnKing   VALUE  CREATION   MODEL:   How?   VALUE  PROPOSITION   MODEL:   What?   VALUE  SHARING   (PROFIT)  MODEL:   Why?   4  Global  Environment  Forces  for  External  Fitness  Analysis  Industry  Ecosystem  (IE):  Supply   Market  Ecosystem  (ME):  Demand   Key  Trends  &  Complementors  (KTC):  PESTLIED  (-­‐/+)   Macro-­‐Economic  Influencers  (MEI):  Global  Economy   Law  of  the  3-­‐Act  Business  Model:  Storyboard  of  Paradigm  for  Universal  System  Modeling  
    • IMPACT  or  TRADE-­‐OFF  (-­‐/+)     #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  h:p://businessmodels.ning.com  &  h:p://twi:er.com/RodKuhnKing   VALUE  CREATION   MODEL:   How?   VALUE  PROPOSITION   MODEL:   What?   VALUE  SHARING   (PROFIT)  MODEL:   Why?   SWOT  Analysis  W:  WEAKNESSES  (-­‐)    S:  STRENGTHS  (+)   O:  OPPORTUNITIES  (+)   T:  THREATS  (-­‐)   Law  of  the  3-­‐Act  Business  Model:  Storyboard  of  Paradigm  for  Universal  System  Modeling  
    • IMPACT  or  TRADE-­‐OFF  (-­‐/+)     #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  h:p://businessmodels.ning.com  &  h:p://twi:er.com/RodKuhnKing   VALUE  CREATION   MODEL:   How?   VALUE  PROPOSITION   MODEL:   What?   VALUE  SHARING   (PROFIT)  MODEL:   Why?   “E.R.I.C.”  Value  InnovaDon  TacDcs  E:  Eliminate    I:  Increase   C:  Create   R:  Reduce   Law  of  the  3-­‐Act  Business  Model:  Storyboard  of  Paradigm  for  Universal  System  Modeling  
    • DisrupDon  Spot   Luxury  Spot   Strategic   Choice   Sweet  Spot   Profit  Model/   Strategy/   Value  Proposi*on   Blue  Ocean   Profit  Model/   Strategy/   Value  Proposi*on   Luxury  Spot   (“Differen*a*on”)   Profit  Model/   Strategy/   Value  Proposi*on   DisrupUon  Spot/Lean   (“Low  Cost”)   Profit  Model/   Strategy/   Value  Proposi*on   4  BUSINESS  PROFIT  MODELS,  WINNING  STRATEGIES,  AND  VALUE  PROPOSITIONS   Trade-­‐off  Map  of  Cost  vs.  Revenue     (-­‐):  PAIN:  Cost  (Size;  Complexity;  Inaccessibility;  Delay)   (+):  DELIGHT:   Revenue   (Performance;   Quality;   Brand;   Customiza*on)   Key   Profitable  Model     Unprofitable  Model     #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hDp://businessmodels.ning.com  &  hDp://twiDer.com/RodKuhnKing   Market  Segment  (Job-­‐To-­‐Get-­‐Done/Goal;  Product/Tool):  ………………..…..……..……. …………  ……………………………………………………………………….…………….………….……………….   “Insane”  Happiness  (Value)   Ideal  Final  Result  (IFR)   Infinite  Shared  Happiness   “Invisible  Hand”    
    • DisrupDon  Spot   Luxury  Spot   Strategic   Choice   Sweet  Spot   Profit  Model/   Strategy/   Value  Proposi*on   Blue  Ocean   Profit  Model/   Strategy/   Value  Proposi*on   Luxury  Spot   (“Differen*a*on”)   Profit  Model/   Strategy/   Value  Proposi*on   DisrupUon  Spot/Lean   (“Low  Cost”)   Profit  Model/   Strategy/   Value  Proposi*on   Apple  iPod’s  GENERIC  PROFIT  MODEL,  WINNING  STRATEGY,  AND  VALUE  PROPOSITION   Trade-­‐off  Map  of  Cost  vs.  Revenue     (-­‐):  PAIN:  Cost  (Size;  Complexity;  Inaccessibility;  Delay)   (+):  DELIGHT:   Revenue   (Performance;   Quality;   Brand;   Customiza*on)   Key   Profitable  Model     Unprofitable  Model     #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hDp://businessmodels.ning.com  &  hDp://twiDer.com/RodKuhnKing   Market  Segment  (Job-­‐To-­‐Get-­‐Done/Goal;  Product/Tool):  Entertainment  Industry   (Music):  Listen  to  music   “Insane”  Happiness  (Value)   Ideal  Final  Result  (IFR)   Infinite  Shared  Happiness   “Invisible  Hand”    
    • DisrupDon  Spot   Luxury  Spot   Strategic   Choice   Sweet  Spot   Customer  Experience   Blue  Ocean   Customer  Experience   Luxury  Spot   Customer  Experience   DisrupUon  Spot/Lean   Customer  Experience   CUSTOMER  EXPERIENCE,  VALUE  PROPOSITION,  JOB-­‐TO-­‐GET-­‐DONE,  AND  (VALUE)  FACTORS   Trade-­‐off  Map  of  Customer  Pain  vs.  Customer  Delight     (-­‐):  PAIN:  Cost;  Size;  Complexity;  Inaccessibility;  Delay   (+):  DELIGHT:     Func*onality;   Performance;   Quality;   Brand;   Customiza*on   Key   Valuable  Experience     Non-­‐valuable  Experience     #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hDp://businessmodels.ning.com  &  hDp://twiDer.com/RodKuhnKing   Market  Segment  (Job-­‐To-­‐Get-­‐Done/Goal;  Product/Tool):  Entertainment  Industry   (Music):  Listen  to  music   “Insane”  Happiness  (Value)   Ideal  Final  Result  (IFR)   Infinite  Shared  Happiness   “Invisible  Hand”    
    • DisrupDon  Spot   Luxury  Spot   Strategic   Choice   Sweet  Spot   Customer  Experience   Blue  Ocean   Customer  Experience   Luxury  Spot   Customer  Experience   DisrupUon  Spot/Lean   Customer  Experience   CUSTOMER  EXPERIENCE,  VALUE  PROPOSITION,  AND  JOB-­‐TO-­‐GET-­‐DONE  for  Apple’s  iPod   Trade-­‐off  Map  of  Customer  Pain  vs.  Customer  Delight     (-­‐):  PAIN:  Size;  Complexity   (+):  DELIGHT:     Func*onality;   Performance   (Storage);   Quality;   Brand;   Customiza*on   Key   Valuable  Experience     Non-­‐valuable  Experience     #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hDp://businessmodels.ning.com  &  hDp://twiDer.com/RodKuhnKing   Market  Segment  (Job-­‐To-­‐Get-­‐Done/Goal;  Product/Tool):  Entertainment  Industry   (Music):  Listen  to  music   “Insane”  Happiness  (Value)   Ideal  Final  Result  (IFR)   Infinite  Shared  Happiness   “Invisible  Hand”    
    • “Businesses  will  increasingly  find  themselves   dealing  with  external  forces  they  didn’t   foresee.  To  seize  opportuniQes  or  defend   themselves,  they’ll  have  to  change  faster   and  more  oPen.  But  what  should  a  business   change?  How  much  should  it  change,  how   soon  and  how  fast?”     Larry  Bossidy  and  Ram  Charan  in  the  book,  “ConfronQng  Reality”   What  to  Change?  
    • More  …   q  HOLISTIC  BUSINESS-­‐MODEL  Problem   q  UNILEVEL  BUSINESS-­‐MODEL   Problem   q  SHARED  VALUE  Problem   INCOHERENT  BUSINESS-­‐MODEL-­‐LOGIC   Problem     Logical  relaQonships  of  how  a  business   makes  money  are  either  incoherent  or   not  shown  in  nearly  all  representaQons   of  a  business  model.  ExisQng  business   model  diagrams  are  staQc.     ASSUMPTION-­‐FORMULATION-­‐AND-­‐ TESTING  Problem     The  process  of  formulaQng  and  tesQng   assumpQons  (hypotheses/proposal/   plans)  of  a  business  model  is  currently   unsystemaQc  and  whimsical.     EXTERNAL  BUSINESS-­‐MODEL-­‐   INTEGRATION    Problem     ExisQng  business  model  representa-­‐ Qons  do  not  easily  integrate  with  the   large  body  of  knowledge  in  Strategic   Management,  Startups,  Product   InnovaQon,  and  Project  Planning.   BUILDING-­‐BLOCK-­‐OVERLOAD   Problem     It  is  brain-­‐unfriendly  to  present  9  or   more  building  blocks  at  a  single  level.   Many  people  feel  overwhelmed  and   cannot  remember  to  reproduce  the   building  blocks  of  a  business  model.     10  BUSINESS  MODEL  PROBLEMS   THAT  YOU  CAN  IMMEDIATELY   ELIMINATE     Use     3-­‐Act  Business  Model  Storyboard  to   Solve  the  Following  Problems  …   PERFORMANCE  MANAGEMENT   Problem     Nearly  all  business  model  diagrams  are   not  directly  integrated  with  the  tool  of   the  Balanced  Scorecard.  Business  model   diagrams  are  hardly  used  for  managing   business  model  performance.   TOWER-­‐OF-­‐BABEL   Problem     Too  many  “unique”  frameworks  and   languages  for  business  model   visualizaQon.  The  frameworks  are  oPen   contradictory  and  don’t  speak  to  each   other.     REVERSE-­‐INCOME-­‐STATEMENT   Problem     Most  diagrams  of  business  models  do   not  explicitly  contain  “Profit”  as  a   building  block.  This  makes  it  difficult  to   focus  on  designing  for  profit  as  well  as   preparing  a  Reverse  Income  Statement.   10  BUSINESS  MODEL  PROBLEMS  THAT  YOU  CAN  IMMEDIATELY  ELIMINATE   An  Informa*on  Rich  Pla1orm  for  Rapid  Business  Model  Prototyping,  Strategy,  Valida*on,  and  Execu*on     #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  h:p://businessmodels.ning.com  &  h:p://twi:er.com/RodKuhnKing  
    • “A  Business  Model  Prototype   Is     A  Thousand  Times  More  Cost-­‐Effec*ve    Than   A  Business  Plan”   Business  Model  Prototype  vs.  Business  Plan  
    • Appendix   MulUlevel  VisualizaUon  of     The  3-­‐Act  Business  Model  Storyboard     q     Bird’s  Eye  View  (Macro-­‐Logic  of  Business  Model)   q     Eagle  Eye’s  View  (Meso-­‐Logic  of  Business  Model)   q     Worm’s  Eye  View  (Micro-­‐Logic  of  Business  Model)  
    • ENVIRONMENT  (Local/Global)   IMPACT  or  TRADE-­‐OFF  (-­‐/+)     #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  h:p://businessmodels.ning.com  &  h:p://twi:er.com/RodKuhnKing   VALUE  CREATION   MODEL     VALUE  PROPOSITION   MODEL     VALUE  SHARING   (PROFIT)  MODEL     FITNESS?   FITNESS?   FITNESS?   3-­‐ACT  BUSINESS  MODEL  STORYBOARD   Innovator’s   PerspecQve   Marketer’s   PerspecQve   Investor’s   PerspecQve  
    •   #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  h:p://businessmodels.ning.com  &  h:p://twi:er.com/RodKuhnKing   VALUE  CREATION   MODEL   VALUE  PROPOSITION   MODEL   3-­‐ACT  BUSINESS  MODEL  STORYBOARD   Bird’s  Eye  View  (Business  Model  Chain:  Macro-­‐Logic)   VALUE  SHARING   (PROFIT)  MODEL   delivers   requires   drives   requires  
    •   #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  h:p://businessmodels.ning.com  &  h:p://twi:er.com/RodKuhnKing   VALUE  CREATION   MODEL   VALUE  PROPOSITION   MODEL   VALUE  SHARING   (PROFIT)  MODEL   delivers   requires   drives   requires   3-­‐ACT  BUSINESS  MODEL  STORYBOARD   Eagle’s  Eye  View  (Business  Model  Tree  –  Hierarchical  Decomposi*on  of  Macro-­‐Logic)   Product/Value  ProposiUon         Channels  &  RelaUonships         Customer/Job-­‐To-­‐Get-­‐Done         Inputs/Partners         Internal  Resources         Processes/AcUviUes         Cost  (Pain)         Revenue  (Delight)         PROFIT  (VALUE)        
    •   #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  h:p://businessmodels.ning.com  &  h:p://twi:er.com/RodKuhnKing   VALUE  CREATION   MODEL   VALUE  PROPOSITION   MODEL   VALUE  SHARING   (PROFIT)  MODEL   delivers   requires   drives   requires   3-­‐ACT  BUSINESS  MODEL  STORYBOARD   Eagle’s  Eye  View  (Generic  Business  Model  Network:  Meso-­‐Logic)   Product/Value  ProposiUon         Channels  &  RelaUonships         Customer/Job-­‐To-­‐Get-­‐Done         Inputs/Partners         Internal  Resources         Processes/AcUviUes         Cost  (Pain)         Revenue  (Delight)         PROFIT  (VALUE)        
    •   #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  h:p://businessmodels.ning.com  &  h:p://twi:er.com/RodKuhnKing   VALUE  CREATION   MODEL   VALUE  PROPOSITION   MODEL   VALUE  SHARING   (PROFIT)  MODEL   delivers   requires   drives   requires   3-­‐ACT  BUSINESS  MODEL  STORYBOARD   Eagle’s  Eye  View  (Generic  Business  Model  Network:  Meso-­‐Logic)   Product/Value  ProposiUon         Channels  &  RelaUonships         Customer/Job-­‐To-­‐Get-­‐Done         Inputs/Partners         Internal  Resources         Processes/AcUviUes         Cost  (Pain)         Revenue  (Delight)         PROFIT  (VALUE)         (Problem-­‐SoluQon  Fit;  Product-­‐Market  Fit)  
    •   #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  h:p://businessmodels.ning.com  &  h:p://twi:er.com/RodKuhnKing   VALUE  CREATION   MODEL   VALUE  PROPOSITION   MODEL   VALUE  SHARING   (PROFIT)  MODEL   delivers   requires   drives   requires   3-­‐ACT  BUSINESS  MODEL  STORYBOARD   Eagle’s  Eye  View  (Generic  Business  Model  Network:  Meso-­‐Logic)   Product/Value  ProposiUon         Channels  &  RelaUonships         Customer/Job-­‐To-­‐Get-­‐Done         require(s)   require(s)   Inputs/Partners         Internal  Resources         Processes/AcUviUes         require(s)   affect(s)   require(s)   deliver(s)   Cost  (Pain)         Revenue  (Delight)         PROFIT  (VALUE)         requires   drive(s)   delights   delight(s)   delight(s)  
    •   #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  h:p://businessmodels.ning.com  &  h:p://twi:er.com/RodKuhnKing   VALUE  CREATION   MODEL   VALUE  PROPOSITION   MODEL   VALUE  SHARING   (PROFIT)  MODEL   delivers   requires   drives   requires   3-­‐ACT  BUSINESS  MODEL  STORYBOARD   Eagle’s  Eye  View  (Generic  Business  Model  Network:  Meso-­‐Logic)   Product/Value  ProposiUon         Channels  &  RelaUonships         Customer/Job-­‐To-­‐Get-­‐Done         require(s)   require(s)   Inputs/Partners         Internal  Resources         Processes/AcUviUes         require(s)   affect(s)   require(s)   deliver(s)   Cost  (Pain)         Revenue  (Delight)         PROFIT  (VALUE)         requires   drive(s)   delights   delight(s)   delight(s)  
    •   #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  h:p://businessmodels.ning.com  &  h:p://twi:er.com/RodKuhnKing   VALUE  CREATION   MODEL   VALUE  PROPOSITION   MODEL   VALUE  SHARING   (PROFIT)  MODEL   delivers   requires   drives   requires   3-­‐ACT  BUSINESS  MODEL  STORYBOARD   Eagle’s  Eye  View  (Generic  Business  Model  Network  –  Elements  and  Profit  Logic  of  the  MarkeDng  Mix:  4Ps  of  MarkeDng)   Product/Value  ProposiUon   q   Product       Channels  &  RelaUonships   q   Place   q   PromoUon     Customer/Job-­‐To-­‐Get-­‐Done         require(s)   require(s)   Inputs/Partners         Internal  Resources           Processes/AcUviUes       require(s)   affect(s)   require(s)   deliver(s)   Cost  (Pain)         Revenue  (Delight)   q   Pricing       PROFIT  (VALUE)         requires   drive(s)   delights   delight(s)   delight(s)  
    •   #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  h:p://businessmodels.ning.com  &  h:p://twi:er.com/RodKuhnKing   VALUE  CREATION   MODEL   VALUE  PROPOSITION   MODEL   VALUE  SHARING   (PROFIT)  MODEL   delivers   requires   drives   requires   3-­‐ACT  BUSINESS  MODEL  STORYBOARD   Eagle’s  Eye  View  (Generic  Business  Model  Network  –  Elements  and  Profit  Logic  of  Kaplan  &  Norton’s  Balanced  Scorecard)   Product/Value  ProposiUon         Channels  &  RelaUonships         Customer/Job-­‐To-­‐Get-­‐Done   q       Customer  PerspecQve       require(s)   require(s)   Inputs/Partners         Internal  Resources   q  Learning  and  Growth   PerspecQve   Processes/AcUviUes   q       Process  PerspecQve       require(s)   affect(s)   require(s)   deliver(s)   Cost  (Pain)         Revenue  (Delight)         PROFIT  (VALUE)   q       Financial  PerspecQve       requires   drive(s)   delights   delight(s)   delight(s)  
    •   #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  h:p://businessmodels.ning.com  &  h:p://twi:er.com/RodKuhnKing   VALUE  CREATION   MODEL   VALUE  PROPOSITION   MODEL   VALUE  SHARING   (PROFIT)  MODEL   delivers   requires   drives   requires   3-­‐ACT  BUSINESS  MODEL  STORYBOARD   Eagle’s  Eye  View  (Generic  Business  Model  Network  –  Elements  and  Profit  Logic  of  Michael  Porter’s  Value  Chain)   Product/Value  ProposiUon         Channels  &  RelaUonships   q       Outbound  LogisDcs   q       MarkeDng  &  Sales   q       Service   Customer/Job-­‐To-­‐Get-­‐Done         require(s)   require(s)   Inputs/Partners   q  Inbound  LogisDcs       Internal  Resources   q  Firm  Infrastructure   q  Human  Resource  Mngt   q  Technology  Development   q  Procurement   Processes/AcUviUes   q       OperaDons       require(s)   affect(s)   require(s)   deliver(s)   Cost  (Pain)         Revenue  (Delight)         PROFIT  (VALUE)   q       Profit  Margin       requires   drive(s)   delights   delight(s)   delight(s)  
    •   #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  h:p://businessmodels.ning.com  &  h:p://twi:er.com/RodKuhnKing   VALUE  CREATION   MODEL   VALUE  PROPOSITION   MODEL   VALUE  SHARING   (PROFIT)  MODEL   delivers   requires   drives   requires   3-­‐ACT  BUSINESS  MODEL  STORYBOARD   Eagle’s  Eye  View  (Business  Model  Network  –  Elements  and  Shared  Value  Logic  of  Rod  King’s  “S.E.M.P.O.R.C.E.S.”  Chain)   Product/Value  ProposiUon   q       Output/Product  (O)       Channels  &  RelaUonships   q       Retailers/Distributors/                  Channels  (R)     Customer/Job-­‐To-­‐Get-­‐Done   q     Customers/Consumers  (C)         require(s)   require(s)   Inputs/Partners   q  Suppliers/Inputs  (S)       Internal  Resources   q  Employees  (E)   q  Machinery/Equipment  (M)     Processes/AcUviUes   q       Process  (P)       require(s)   affect(s)   require(s)   deliver(s)   Cost  (Pain)         Revenue  (Delight)         PROFIT  (VALUE)   q       Shared  Value  (S)       requires   drive(s)   delights   delight(s)   delight(s)  
    •   #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  h:p://businessmodels.ning.com  &  h:p://twi:er.com/RodKuhnKing   VALUE  CREATION   MODEL   VALUE  PROPOSITION   MODEL   VALUE  SHARING   (PROFIT)  MODEL   delivers   requires   drives   requires   3-­‐ACT  BUSINESS  MODEL  STORYBOARD   Eagle’s  Eye  View  (Generic  Business  Model  Network  –  Elements  and  Profit  Logic  of  Osterwalder  &  Pigneur’s  Business  Model  Canvas)   Product/Value  ProposiUon   q Value  ProposiUon  (VP)       Channels  &  RelaUonships   q Channels  (CH)   q Customer  RelaUonships  (CR)     Customer/Job-­‐To-­‐Get-­‐Done   q Customer  Segment  (CS)       require(s)   require(s)   Inputs/Partners   q Key  Partners  (KP)       Internal  Resources   q Key  Resources  (KR)     Processes/AcUviUes   q Key  AcUviUes  (KA)       require(s)   affect(s)   require(s)   deliver(s)   Cost  (Pain)   q Cost  Structure  (C$)       Revenue  (Delight)   q Revenue  Streams  (R$)       PROFIT  (VALUE)         requires   drive(s)   delights   delight(s)   delight(s)  
    •   #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  h:p://businessmodels.ning.com  &  h:p://twi:er.com/RodKuhnKing   VALUE  CREATION   MODEL   VALUE  PROPOSITION   MODEL   VALUE  SHARING   (PROFIT)  MODEL   delivers   requires   drives   requires   3-­‐ACT  BUSINESS  MODEL  STORYBOARD   Eagle’s  Eye  View  (Generic  Business  Model  Network  –  Elements  and  Profit  Logic  of  Ash  Maurya’s  Lean  Canvas)   Product/Value  ProposiUon   q       Unique  Value  ProposiUon   q       SoluUon     Channels  &  RelaUonships   q       Channels       Customer/Job-­‐To-­‐Get-­‐Done   q     Customer  Segment   q     Problem  (Trade-­‐off)     require(s)   require(s)   Inputs/Partners         Internal  Resources   q       Unfair  Advantage       Processes/AcUviUes           require(s)   affect(s)   require(s)   deliver(s)   Cost  (Pain)   q       Cost  Structure       Revenue  (Delight)   q       Revenue  Streams       PROFIT  (VALUE)   q Key  Metrics       requires   drive(s)   delights   delight(s)   delight(s)   (Problem-­‐SoluQon  Fit;  Product-­‐Market  Fit)  
    •   #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  h:p://businessmodels.ning.com  &  h:p://twi:er.com/RodKuhnKing   VALUE  CREATION   MODEL   VALUE  PROPOSITION   MODEL   VALUE  SHARING   (PROFIT)  MODEL   delivers   requires   drives   requires   3-­‐ACT  BUSINESS  MODEL  STORYBOARD   Eagle’s  Eye  View  (Generic  Business  Model  Network  –  Elements  and  Profit  Logic  of  Mark  Johnson’s  4-­‐Box  Business  Model)   Product/Value  ProposiUon   q       Customer  Value  ProposiUon       Channels  &  RelaUonships         Customer/Job-­‐To-­‐Get-­‐Done         require(s)   require(s)   Inputs/Partners         Internal  Resources   q       Key  Resources     Processes/AcUviUes   q       Key  Processes       require(s)   affect(s)   require(s)   deliver(s)   Cost  (Pain)         Revenue  (Delight)         PROFIT  (VALUE)   q       Profit  Formula       requires   drive(s)   delights   delight(s)   delight(s)  
    •   #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  h:p://businessmodels.ning.com  &  h:p://twi:er.com/RodKuhnKing   VALUE  CREATION   MODEL   VALUE  PROPOSITION   MODEL   VALUE  SHARING   (PROFIT)  MODEL   delivers   requires   drives   requires   3-­‐ACT  BUSINESS  MODEL  STORYBOARD   Eagle’s  Eye  View  (Generic  Business  Model  Network  –  Elements  and  Profit  Logic  of  Bossidy  &  Charan’s  Business  Model)   Product/Value  ProposiUon         Channels  &  RelaUonships         Customer/Job-­‐To-­‐Get-­‐Done   q       Customer  Base  (Needs)       require(s)   require(s)   Inputs/Partners         Internal  Resources   q       People:  Team   q       OrganizaUon     Processes/AcUviUes   q       Strategy   q       OperaUons   q       IteraQon;Root-­‐cause  analysis   q       Environment  Scan:  SWOT   require(s)   affect(s)   require(s)   deliver(s)   Cost  (Pain)   q       Capital  Intensity       Revenue  (Delight)   q       Revenue  Growth       PROFIT  (VALUE)   q       OperaUng  Margin   q       Cash  Flow   q       Return  on  Investment   q       (Financial  History:  Fit)     requires   drive(s)   delights   delight(s)   delight(s)  
    •   #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  h:p://businessmodels.ning.com  &  h:p://twi:er.com/RodKuhnKing   VALUE  CREATION   MODEL   VALUE  PROPOSITION   MODEL   VALUE  SHARING   (PROFIT)  MODEL   delivers   requires   drives   requires   3-­‐ACT  BUSINESS  MODEL  STORYBOARD   Eagle’s  Eye  View  (Generic  Business  Model  Network  –  Elements  and  Profit  Logic  of  Malik’s  Enterprise  Architecture  Model)   Product/Value  ProposiUon   q Value  ProposiUon   q Products  &  Services       Channels  &  RelaUonships   q Channels   q Customer  Demands  &   RelaUonships     Customer/Job-­‐To-­‐Get-­‐Done   q Customer  Type   q Customer       require(s)   require(s)   Inputs/Partners   q Partner  Type   q Business  Partner     Internal  Resources   q Required  Competency   q Resource/Asset     Processes/AcUviUes         require(s)   affect(s)   require(s)   deliver(s)   Cost  (Pain)   q Cost  Model       Revenue  (Delight)   q Revenue  Model       PROFIT  (VALUE)   q       Profit  Model       requires   drive(s)   delights   delight(s)   delight(s)  
    •   #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  h:p://businessmodels.ning.com  &  h:p://twi:er.com/RodKuhnKing   VALUE  CREATION   MODEL   VALUE  PROPOSITION   MODEL   VALUE  SHARING   (PROFIT)  MODEL   delivers   requires   drives   requires   Product/Value  ProposiUon   (P/VP)       Channels  &  RelaUonships   (CH/CR)       Customer/Job-­‐To-­‐Get-­‐Done   (CS/JTGD)       require(s)   require(s)   Inputs/Partners   (I/KP)       Internal  Resources   (IKR)       Processes/AcUviUes   (P/KA)       require(s)   affect(s)   require(s)   deliver(s)   Cost  (Pain)   (C$)       Revenue  (Delight)   (R$)       PROFIT  (VALUE)   (P$)       drive(s)   requires   3-­‐ACT  BUSINESS  MODEL  MODEL  STORYBOARD   An  Informa*on  Rich  Pla1orm  for  Rapid  Business  Model  Prototyping,  Strategy,  Valida*on,  and  Execu*on   delights   delight(s)   delight(s)  
    • 3-­‐ACT   BUSINESS MODEL   VALUE  CREATION   MODEL   VALUE  PROPOSITION   MODEL   VALUE  SHARING  (PROFIT)   MODEL   I/KP   IKR   P/KA   P/VP   CH/CR   CS/CJTGD   C$   R$   P$   I/KP   -­‐   IKR   -­‐   P/KA   -­‐   P/VP   -­‐   CH/CR   -­‐   CS/JTGD   -­‐   C$   -­‐   R$   -­‐   P$   -­‐     #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  h:p://businessmodels.ning.com  &  h:p://twi:er.com/RodKuhnKing   From    -­‐>  To   I/KP:  Inputs/Partners   IKR:  Internal  Resources   P/KA:  Processes/AcQviQes   P/VP:  Product/Value  ProposiQon   CHCR:  Channels  &  RelaQonships   CS/JTGD:  Customer/Job-­‐To-­‐Get-­‐Done   C$:  Cost  (Structure)   R$:  Revenue  (Streams)   P$:  Profit   Key   3-­‐ACT  BUSINESS  MODEL  STORYBOARD   Worm’s  Eye  View  (Business  Model  Network  of  Rela*onships:  Micro-­‐Logic  of  Input-­‐Output  Matrix/“Concept  Map”)  
    •   #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  h:p://businessmodels.ning.com  &  h:p://twi:er.com/RodKuhnKing   VALUE  CREATION  MODEL:   COST  REDUCTION   VALUE  PROPOSITION  MODEL:   REVENUE  INCREASE   Inputs/Partners   q Co-­‐creaQon;  Social  Media   q Open  Source  CollaboraQon   q Crowd-­‐funding/sourcing   q FracQonalizaQon/Co-­‐owner   q Investor/Sponsor/Donor   q Mergers  &  AcquisiQons   Internal  Resources   (Physical/Intellectual/Emo*onal/ Spiritual  Resources)   q Creator;  Broker;  Landlord   q Peer-­‐to-­‐Peer  Plaoorm   q Facilitated  Network   q Patents  (“Fences”;  Barriers)     Processes/AcUviUes   q OperaQonal  Excellence;  JIT   q AutomaQon  (Self-­‐service/DIY)   q GamificaQon;  DigitalizaQon   q Ecosystem  Management   q Problem  Solving;  ConsulQng   q CompeQQve  Strategies   Product/Value  ProposiUon   q Asset  Sale/Direct  Sale   q Product  Leadership/Extension   q Used/2nd  Hand  Product;  Bargain   q CustomizaQon  (Value  Factors)   q Bundling/Unbundling   q Product/SoPware  as  a  Service   Channels  &  RelaUonships   q Offline/Online;  (In)direct  Sale   q Franchise;  Licensing;  Affiliates   q Distributor;  Disintermediator   q Ad  Network;  Brand  MulQplier   q AggregaQon/DisaggregaQon   q AucQon/Reverse  AucQon   Customer/Job-­‐To-­‐Get-­‐Done   q Customer  InQmacy/Loyalty   q B2B;  B2C   q Long  Tail;  Community  (Hub)   q Two-­‐sided  Market  (Segments)   q MulQ-­‐sided  Market  (Plaoorm)   q Luxury/Mass  Market/Niche   Cost  (Pain)   q Outsourcing;  SpecializaQon   q Group  Deals   q Lending/RenQng/Leasing   q Cross-­‐subsidizaQon   q FracQonalizaQon/Co-­‐owner     Revenue  (Delight)   q Pre-­‐payment;  AmorQzaQon   q Discount;  Dynamic  Pricing   q Razor  Blade  (“Bait  &  Switch”)   q Usage  Fee;  SubscripQon  Fee   q Tiered  Payment;  Freemium   q DonaQon;  Free   PROFIT  (VALUE)   q Shared  Value  (Profit)   q Transient  CompeQQve  Adv.   q Sustainable  CompeQQve  Adv.   q Red  Ocean;  Low  Cost/Margin   q Blue  Ocean;  Luxury  Spot   q DisrupQve  InnovaQon  Spot   PROFIT  MODEL:   PROFIT  INCREASE   Business  Profit   Management  (Pagerns/Tac*cs)     51  BUSINESS  PROFIT  PATTERNS   (Business  Profit  Innova*on  for  Compe**ve  Advantage)  
    •        BUSINESS  DNA  MAP:  A  Visual  Framework  for  Unified  Strategic  Planning  &  Management       ‘Jigsaw  Puzzle’  of  Business  Modeling  Ontology  for  Living  Systems   S   E   M   P   O   R   C   E   S   Suppliers/   Inputs   Employees/   Culture/   Brand/IP   Machinery/   Technology/   Infra’   Processes/   Strategies   Output:   Product/   Service   Retailers/   Distributors/   Channels   Customers/   Consumers   (Care/Support)   Environ-­‐ ment   Shared   Greatn./   Impact   Partners   (Suppliers/ Materials/   Info/Energy)   Key  Resources   AcQviQes   (Processes)   Value   ProposiQon   (Jobs  To   Get  Done)   Customer  RelaQonship   Management   Industry/   Gov.   SHARED   VALUE/   PROFIT   (Pain:  -­‐   Delight:  +   CAPABILITIES:  CORE  COMPETENCIES   LOCAL  ENVIRONMENT   (Demand)     GLOBAL   ENV.   (Trends)     ENTERPRISE  (SYSTEM/Supply:  Inside  the  Enterprise)       Design       Needs       Aspiratns   ECOSYSTEM   (PLANET/ECONOMY/FOREST;  SPECIES;  INDUSTRY/SUPPLY  CHAIN/VALUE  CHAIN)   GLOBAL   COMPETI-­‐ TIVE   FORCES   COMPE-­‐ TITIVE   ADVAN-­‐ TAGE   INPUT   PROCESSING   OUTPUT   EXTERNAL  ENVIRONMENT   RESULT   (Impacts/   Effects)  BUSINESS  SYSTEM  (Cause)   BUSINESS  DNA  MAP:  Global  3-­‐Act  Business  Model  (G3BM)  Storyboard   D N A   #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  h:p://businessmodels.ning.com  &  h:p://twi:er.com/RodKuhnKing  
    •                                                                                      Global  3-­‐Act  Business  Model  (G3BM)  Storyboard:  Fractal  Hierarchy  for  Business  Model  Fitness   Environment   Business  Model  (3-­‐Act)   World  (Global)   NaUon  (Economy/   Value  Network)   Industry   Sector  (Locality/Supply  Chain)   Region   Suppliers   Customers   SubsQtutes  (In/Direct  Compe*tors)   New  Entrants  (Poten*al  Compe*tors)   W:  WEAKNESSES  (-­‐)   S:  STRENGTHS  (+)   O:  OPPORTUNITIES  (+)   T:  THREATS  (-­‐)     #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  h:p://businessmodels.ning.com  &  h:p://twi:er.com/RodKuhnKing  
    • Environment   Business  Model  (3-­‐Act)   World  (Global)   NaUon  (Economy/   Value  Network)   Industry   Sector  (Locality/Supply  Chain)   Region   Suppliers   Customers   SubsQtutes  (In/Direct  Compe*tors)   New  Entrants  (Poten*al  Compe*tors)   Macro-­‐Economic  Forces  (MEF):  Global  Economy   Industry  Ecosystem  (IE):  Supply   Market  Ecosystem  (ME):  Demand   Key  Trends  &  Complementors  (KTC):  PESTLIED     #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  h:p://businessmodels.ning.com  &  h:p://twi:er.com/RodKuhnKing                                                                                        Global  3-­‐Act  Business  Model  (G3BM)  Storyboard:  Fractal  Hierarchy  for  Business  Model  Fitness  
    • Past  Reality   Business  Model                 Present  Reality   Business  Model               Future  Reality   Business  Model                 Global  3-­‐Act  Business  Model  (G3BM)  Plan     An  Informa*on  Rich  Pla1orm  for  Rapid  Business  Model  Prototyping,  Strategy,  Valida*on,  and  Execu*on     #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  h:p://businessmodels.ning.com  &  h:p://twi:er.com/RodKuhnKing   Strategy   Short/Medium/Long-­‐term   WHAT  to  change?   TO  WHAT  to  change?   WHY  change?   HOW  to  change?  
    • Past  Reality   (“As  Was”)   Business  Model               Present  Reality   (“As  Is”)   Business  Model             Future  Reality   (“To  Be”)   Business  Model                 Bus.  Model   (3-­‐Act)     Bus.  Model   (3-­‐Act)     Bus.  Model   (3-­‐Act)   Industry   Ecosystem   Market   Ecosystem     Business  Model  (3-­‐Act)   Macro-­‐Economic  Influencers   Key  Trends  &  Complementors   Mission/Vision/ Purpose/Ideals/   Ideal  Final  Result   For   Business  Model     #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  h:p://businessmodels.ning.com  &  h:p://twi:er.com/RodKuhnKing   Strategy   Short/Medium/Long-­‐term   Global  3-­‐Act  Business  Model  (G3BM)  Plan     An  Informa*on  Rich  Pla1orm  for  Rapid  Business  Model  Prototyping,  Strategy,  Valida*on,  and  Execu*on