BUSINESS	
  MODEL	
  PATHOLOGY	
  
Study	
  and	
  Develop	
  Models	
  that	
  Visually	
  Explain	
  the	
  Evolu6on	
  ...
 
#4ROD.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hMp://businessmodels.ning.com	
  &	
  hMp://twiMer.com/R...
Holis6c	
  Problem	
  Solving	
  
Refers	
  to	
  
A	
  Methodology	
  for	
  
Visually	
  Managing	
  4	
  Types	
  of	
 ...
 
#4ROD.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hMp://businessmodels.ning.com	
  &	
  hMp://twiMer.com/R...
 
#4ROD.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hMp://businessmodels.ning.com	
  &	
  hMp://twiMer.com/R...
 
#4ROD.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hMp://businessmodels.ning.com	
  &	
  hMp://twiMer.com/R...
 
#4ROD.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hMp://businessmodels.ning.com	
  &	
  hMp://twiMer.com/R...
 
#4ROD.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hMp://businessmodels.ning.com	
  &	
  hMp://twiMer.com/R...
 
#4ROD.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hMp://businessmodels.ning.com	
  &	
  hMp://twiMer.com/R...
 
#4ROD.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hMp://businessmodels.ning.com	
  &	
  hMp://twiMer.com/R...
 
#4ROD.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hMp://businessmodels.ning.com	
  &	
  hMp://twiMer.com/R...
 
#4ROD.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hMp://businessmodels.ning.com	
  &	
  hMp://twiMer.com/R...
 
#4ROD.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hMp://businessmodels.ning.com	
  &	
  hMp://twiMer.com/R...
 
#4ROD.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hMp://businessmodels.ning.com	
  &	
  hMp://twiMer.com/R...
 
#4ROD.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hMp://businessmodels.ning.com	
  &	
  hMp://twiMer.com/R...
0	
  
2	
  
4	
  
6	
  
8	
  
10	
  
12	
  
Cost	
   Learning	
   Time	
  
Ideal	
  Tool	
  
Business	
  (Waterfall)	
  Pl...
What	
  is	
  Business	
  Model	
  Pathology?	
  
BUSINESS	
  MODEL	
  PATHOLOGY	
  
Is	
  a	
  Branch	
  of	
  
BUSINESS	...
BUSINESS	
  MODEL	
  PATHOLOGY	
  
Facilitates	
  
Holis6c	
  Problem	
  Solving	
  &	
  Learning	
  
Why	
  Business	
  Model	
  Pathology?	
  
BUSINESS	
  MODEL	
  PATHOLOGY	
  
Is	
  Essen?al	
  for	
  
The	
  Diagnosis,	...
Business	
  Model	
  Pathology	
  
Uses	
  
Just	
  One	
  Tool	
  
Living	
  System	
  (LS)	
  Dashboard	
  
 
#4ROD.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hMp://businessmodels.ning.com	
  &	
  hMp://twiMer.com/R...
 
#4ROD.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hMp://businessmodels.ning.com	
  &	
  hMp://twiMer.com/R...
 
#4ROD.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hMp://businessmodels.ning.com	
  &	
  hMp://twiMer.com/R...
A	
  Living	
  System	
  Dashboard	
  
(Cyberne6c	
  Model)	
  
Illustrates	
  	
  
The	
  Logic	
  of	
  
How	
  Every	
 ...
A	
  Living	
  System	
  Dashboard	
  
Focuses	
  on	
  
3	
  Categories	
  of	
  
Organiza?onal	
  Experience:	
  
	
  
S...
The	
  3	
  Components	
  of	
  	
  
Each	
  Organiza6onal	
  Experience	
  
Are:	
  
	
  
Happiness,	
  
Loyalty,	
  and	...
Tree	
  Diagram	
  (“Mind	
  Map”)	
  
for	
  
Living	
  System	
  Dashboard	
  
 
#4ROD.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hMp://businessmodels.ning.com	
  &	
  hMp://twiMer.com/R...
 
#4ROD.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hMp://businessmodels.ning.com	
  &	
  hMp://twiMer.com/R...
 
#4ROD.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hMp://businessmodels.ning.com	
  &	
  hMp://twiMer.com/R...
 
#4ROD.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hMp://businessmodels.ning.com	
  &	
  hMp://twiMer.com/R...
 
#4ROD.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hMp://businessmodels.ning.com	
  &	
  hMp://twiMer.com/R...
 
#4ROD.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hMp://businessmodels.ning.com	
  &	
  hMp://twiMer.com/R...
Legend	
  
The	
  following	
  topics,	
  which	
  describe	
  elements	
  of	
  a	
  business	
  model	
  on	
  slides	
 ...
The	
  3	
  Elements	
  of	
  
BUSINESS	
  EXPERIENCE	
  
Are	
  
Happiness,	
  
Loyalty,	
  and	
  
Profitability	
  
Nested	
  Diagram	
  
for	
  
Living	
  System	
  Dashboard	
  
 
#4ROD.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hMp://businessmodels.ning.com	
  &	
  hMp://twiMer.com/R...
 
#4ROD.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hMp://businessmodels.ning.com	
  &	
  hMp://twiMer.com/R...
 
#4ROD.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hMp://businessmodels.ning.com	
  &	
  hMp://twiMer.com/R...
 
#4ROD.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hMp://businessmodels.ning.com	
  &	
  hMp://twiMer.com/R...
 
#4ROD.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hMp://businessmodels.ning.com	
  &	
  hMp://twiMer.com/R...
 
#4ROD.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hMp://businessmodels.ning.com	
  &	
  hMp://twiMer.com/R...
 
#4ROD.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hMp://businessmodels.ning.com	
  &	
  hMp://twiMer.com/R...
 
#4ROD.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hMp://businessmodels.ning.com	
  &	
  hMp://twiMer.com/R...
 
#4ROD.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hMp://businessmodels.ning.com	
  &	
  hMp://twiMer.com/R...
 
#4ROD.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hMp://businessmodels.ning.com	
  &	
  hMp://twiMer.com/R...
 
#4ROD.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hMp://businessmodels.ning.com	
  &	
  hMp://twiMer.com/R...
Axiom	
  of	
  Business	
  Model	
  Cyberne6cs	
  
CUSTOMER	
  
Hires	
  (Chooses)	
  
OUTPUT	
  (Product/Service)	
  from...
Examples	
  
(“Autopsies”)	
  
1-­‐Minute	
  Business	
  Failure	
  Analysis	
  
 
#4ROD.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hMp://businessmodels.ning.com	
  &	
  hMp://twiMer.com/R...
 
#4ROD.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hMp://businessmodels.ning.com	
  &	
  hMp://twiMer.com/R...
Startups	
  and	
  Established	
  Businesses	
  
Die	
  
When	
  They	
  Fail	
  to	
  Discover	
  and	
  Solve	
  
BUMPs:...
Business	
  Model	
  Cyberne6cs	
  
Is	
  About	
  
Simply	
  Crea6ng,	
  Delivering,	
  and	
  Sharing	
  
Awesome	
  Cus...
 
#4ROD.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hMp://businessmodels.ning.com	
  &	
  hMp://twiMer.com/R...
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The Living System Dashboard and Business Model Pathology

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“No problem can be solved from the same level of consciousness that created it.”
Albert Einstein

-
Silicon Valley is the hub of high tech innovations and a “growth pole” of the global economy. Silicon Valley serves as headquarter to business behemoths such as Apple, Google, eBay, Facebook, Oracle, Cisco, Intel, Hewlett Packard, and Adobe. Silicon Valley also has a high density of Venture Capitalists. Given the global success of many startups in Silicon Valley, it is astounding that about 90% of funded startups fail or go bankrupt. For an outsider like me, this High Mortality Rate (HMR) of startups is unacceptable: it’s a huge waste of time, money, and talent. Surely, there must be a less risky way of building scalable startups. In my view, Silicon Valley needs a paradigm shift, now. Silicon Valley certainly needs a new movement that champions Holistic Problem Solving rather than Fragmented (Functional) Problem Solving approaches such as in traditional Agile (Product) Development and Customer (Market) Development.

But, what really is Holistic Problem Solving? “Holistic Problem Solving (HPS)” refers to an integrated dashboard methodology that focuses on rapidly discovering Big Urgent Market Problems (BUMPs) while creating, delivering, and managing Awesome Customer Experiences (ACEs) at 3 levels: Level of System (Enterprise), Environment (Market/Industry), and Supersystem (Economy/Society). In Holistic Problem Solving, ideas are visually generated, organized, managed, and tracked on one page using a zoomable map: the Living System Dashboard (LSD). In recent years, startups in the Silicon Valley have increasingly been using the paradigm of Holistic Problem Solving especially by focusing on a business model or an extended enterprise as unit of analysis. Emerging holistic problem solving approaches include Eric Ries’s Lean Startup Method and Steve Blank’s Customer Development Stack.

In Silicon Valley, the approaches of Lean Startup Method and Customer Development Stack are replacing traditional Business (Waterfall) Planning which has an amorphous and inordinately long Build-Measure-Learn cycle. The traditional Business Plan is considered initially unsuitable for scalable startups, which require hypotheses about market problems and customer experiences to be rapidly tested and validated (or rejected). It is important to note, however, that the Lean Startup Method and Customer Development Stack ignore the creation, delivery, sharing, and management of customer experience at the level of the supersystem (society/economy). This neglect is evident in the increasing use of the Business Model Canvas and Lean Canvas to visually organize and manage ideas for scalable startups especially in Silicon Valley. Unlike in the Living System Dashboard, however, the Business Model Canvas does not contain building blocks for competitors and elements of a supersystem.

http://goo.gl/2usVrI

Published in: Business, Education, Technology
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  • Rod, thanks for your vivid response and the addition of Slide 2. I see your point of view and it adds to the richness of the presentation.
    Interestingly,you added Slide 2 making the presentation richer. In particular I like expanding the Cynefin Framework by adding Learning domain to it. This way it is easy to figure out the link between chaotic and Act, Sense and Probe and Complex system> Complicated and Analyze> System and categorize. Again, I see this as a repeating fractal cycle and therefore is a living one.
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  • @hudali15: In theory, the hierarchy of elements of a living system could be arranged in sequence from left to right or from right to left. I chose to present the hierarchy of Supersystem-Environment-System from left to right because of my preference for 'Outside-In' thinking for business innovation and development. As you know, the English writing system presents sentences that read from left to right. Consequently, many readers are accustomed to looking at text and picture from left to right and from top to bottom. By putting the Supersystem on the left hand side, I'm more or less 'prodding' readers to review the supersystem and environment before considering the system. Although this outside-in perspective is excellent for innovation and design projects, it may be difficult for some people to quickly grasp how a system works. The outside-in perspective follows the strategic logical sequence of 'Why-What-How.' For people who prefer the operational logical sequence of 'How-What-Why', an inside-out perspective is recommended: System-Environment-Supersystem. Luckily, with the diagram of the Living System Dashboard (Hierarchy) one can start with an outside-in or inside-out perspective. In the end, the direction of approach depends on what the presenter wants to convey to the audience as well as the nature of an audience's preferences for understanding systems. I hope the above comments address your question.
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  • Dear Dr. Rod,
    fantastic thinking behind this super presentation.
    i wanted to make a detailed comment, but first wish to read your thinking behind Slide 7. Why super system on the left and system on the right?

    Thanks
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The Living System Dashboard and Business Model Pathology

  1. 1. BUSINESS  MODEL  PATHOLOGY   Study  and  Develop  Models  that  Visually  Explain  the  Evolu6on  of  Trade-­‐offs  in  Living  Systems   Holis6c  Problem  Solving  &  Learning   Maximum  Learning  at  Minimum  Cost  in  No  Time     Living  System  Dashboard   (Business  Model  Dashboard)   Visually  Manage  Simple,  Complicated,  Complex,  and  Chao6c  Projects  
  2. 2.   #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hMp://businessmodels.ning.com  &  hMp://twiMer.com/RodKuhnKing   Business  Model  Canvas   (Scorecard  for  Managing   Extended  Enterprise)   Blue  Ocean  Strategy   (Strategy  Canvas)   Agile  (Product)   Development   Customer   Development   Living  System  Dashboard:  Fragmented  vs.  Holis?c  Problem  Solving     Tools  for  Learning  How  to  Rapidly  Discover  Customer  Problems  and  Share  Awesome  Customer  Experiences   Business  Plan   (Strategic/Financial)   Lean  Startup   (Process/   Execu?on)  
  3. 3. Holis6c  Problem  Solving   Refers  to   A  Methodology  for   Visually  Managing  4  Types  of  Projects   (Systems):   q  Type  1:  Known  Problem-­‐Known  Solu6on   q  Type  2:  Known  Problem-­‐Unknown  Solu6on   q  Type  3:  Unknown  Problem-­‐Known  Solu6on   q  Type  4:  Unknown  Problem-­‐Unknown  Solu6on  
  4. 4.   #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hMp://businessmodels.ning.com  &  hMp://twiMer.com/RodKuhnKing   HOLISTIC  PROBLEM  SOLVING  (HPS)  WHEEL     Framework  for  Managing  Projects  Under  Varying  Condi6ons  of  Uncertainty:  Pretotype.  Prototype.  Build.  Improve.       *  SENSE   (Measure/Learn)   *  RESPOND   (Eliminate/Reduce/ Increase/Create)   PROTOTYPE   PRETOTYPE   IMPROVE   BUILD  
  5. 5.   #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hMp://businessmodels.ning.com  &  hMp://twiMer.com/RodKuhnKing   HOLISTIC  PROBLEM  SOLVING  (HPS)  WHEEL     Framework  for  Managing  Projects  Under  Varying  Condi6ons  of  Uncertainty:  Pretotype.  Prototype.  Build.  Improve.       *  SENSE   (Measure/Learn)   *  RESPOND   (Eliminate/Reduce/ Increase/Create)   PROTOTYPE   PRETOTYPE   IMPROVE   BUILD   Complicated   Project   Complex   Project   Simple  (Tame)   Project   Chao?c  (Wicked)   Project   Known-­‐   Knowns   Unknown-­‐ Unknowns   Unknown-­‐ Knowns   Known-­‐ Unknowns  
  6. 6.   #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hMp://businessmodels.ning.com  &  hMp://twiMer.com/RodKuhnKing   Classifica6on  of  Startup  Projects  (CoSP)  for  Holis?c  Problem  Solving     Evolu6on  of  Communica6on,  Knowledge,  and  Learning  Systems              PROBLEM  (Market/            Demand/Boundary)     SOLUTION   (Product/Technology)   KNOWN   (Sta6c  or  Fixed  Problem:   Job-­‐To-­‐Get-­‐Done  Hierarchy)   UNKNOWN   (Problem-­‐To-­‐Be-­‐Discovered:   Job-­‐To-­‐Get-­‐Done  Hierarchy)   KNOWN   (Sta6c  or  Fixed  Solu6on/ Outcome:   Universe  of  Tools)   UNKNOWN   (Solu6on-­‐To-­‐Be-­‐Discovered:   Universe  of  Tools)  
  7. 7.   #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hMp://businessmodels.ning.com  &  hMp://twiMer.com/RodKuhnKing   Classifica6on  of  Startup  Projects  (CoSP)  for  Holis?c  Problem  Solving     Evolu6on  of  Communica6on,  Knowledge,  and  Learning  Systems              PROBLEM  (Market/            Demand/Boundary)     SOLUTION   (Product/Technology)   KNOWN   (Sta6c  or  Fixed  Problem:   Job-­‐To-­‐Get-­‐Done  Hierarchy)   UNKNOWN   (Problem-­‐To-­‐Be-­‐Discovered:   Job-­‐To-­‐Get-­‐Done  Hierarchy)   KNOWN   (Sta6c  or  Fixed  Solu6on/ Outcome:   Universe  of  Tools)   UNKNOWN   (Solu6on-­‐To-­‐Be-­‐Discovered:   Universe  of  Tools)   Type  4  Project  (System)  Type  2  Project  (System)   Type  3  Project  (System)  Type  1  Project  (System)  
  8. 8.   #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hMp://businessmodels.ning.com  &  hMp://twiMer.com/RodKuhnKing   Classifica6on  of  Startup  Projects  (CoSP)  for  Holis?c  Problem  Solving     Evolu6on  of  Communica6on,  Knowledge,  and  Learning  Systems              PROBLEM  (Market/            Demand/Boundary)     SOLUTION   (Product/Technology)   KNOWN   (Sta6c  or  Fixed  Problem:   Job-­‐To-­‐Get-­‐Done  Hierarchy)   UNKNOWN   (Problem-­‐To-­‐Be-­‐Discovered:   Job-­‐To-­‐Get-­‐Done  Hierarchy)   KNOWN   (Sta6c  or  Fixed  Solu6on/ Outcome:   Universe  of  Tools)   UNKNOWN   (Solu6on-­‐To-­‐Be-­‐Discovered:   Universe  of  Tools)   Type  4  Project  (System)  Type  2  Project  (System)   Type  3  Project  (System)  Type  1  Project  (System)   q Trade-­‐off  of  System  or  Customer  is   known   q Ideal  Solu6on  (IS)  or   Ideal  Final  Result  (IFR)  is  known   q Trade-­‐off  of  System  or  Big  Urgent   Market  Problem  (BUMP)  is  unknown   q   Ideal  Solu6on  (IS)  or   Ideal  Final  Result  (IFR)  is  known     q Trade-­‐off  of  System  or  Customer    is   known   q Ideal  Solu6on  (IS)  or   Ideal  Final  Result  (IFR)  is  unknown   q Trade-­‐off  of  System  or  Big  Urgent   Market  Problem  (BUMP)  is  unknown   q Ideal  Solu6on  (IS)  or   Ideal  Final  Result  (IFR)  is  unknown  
  9. 9.   #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hMp://businessmodels.ning.com  &  hMp://twiMer.com/RodKuhnKing   Classifica6on  of  Startup  Projects  (CoSP)  for  Holis?c  Problem  Solving     Evolu6on  of  Communica6on,  Knowledge,  and  Learning  Systems              PROBLEM  (Market/            Demand/Boundary)     SOLUTION   (Product/Technology)   KNOWN   (Sta6c  or  Fixed  Problem:   Job-­‐To-­‐Get-­‐Done  Hierarchy)   UNKNOWN   (Problem-­‐To-­‐Be-­‐Discovered:   Job-­‐To-­‐Get-­‐Done  Hierarchy)   KNOWN   (Sta6c  or  Fixed  Solu6on/ Outcome:   Universe  of  Tools)   UNKNOWN   (Solu6on-­‐To-­‐Be-­‐Discovered:   Universe  of  Tools)   Simple  (“Tame”)   System/Project   Complicated   System/Project   Chao6c  (“Wicked”)   System/Project   Complex   System/Project  
  10. 10.   #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hMp://businessmodels.ning.com  &  hMp://twiMer.com/RodKuhnKing   Classifica6on  of  Startup  Projects  (CoSP)  for  Holis?c  Problem  Solving     Inspired  by  David  Snowden’s  Cynefin  Framework  for  Communica6on  and    Decision-­‐making  in  Varying  Contexts  of  Uncertainty            PROBLEM  (Market/            Demand/Boundary)     SOLUTION   (Product/Technology)   KNOWN   (Sta6c  or  Fixed  Problem:   Job-­‐To-­‐Get-­‐Done  Hierarchy)   UNKNOWN   (Problem-­‐To-­‐Be-­‐Discovered:   Job-­‐To-­‐Get-­‐Done  Hierarchy)   KNOWN   (Sta6c  or  Fixed  Solu6on/ Outcome:   Universe  of  Tools)   UNKNOWN   (Solu6on-­‐To-­‐Be-­‐Discovered:   Universe  of  Tools)   q  Sense                    (Measure/Learn)   q  Respond   (Eliminate/Reduce/   Increase/Create))   q  Categorize  (Improve)   q  Probe  (Prototype)   q  Analyze  (Build)   q  Act  (Pretotype)   Simple  (“Tame”)   System/Project   Complicated   System/Project   Chao6c  (“Wicked”)   System/Project   Complex   System/Project  
  11. 11.   #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hMp://businessmodels.ning.com  &  hMp://twiMer.com/RodKuhnKing            PROBLEM  (Market/            Demand/Boundary)     SOLUTION   (Product/Technology)   KNOWN   (Sta6c  or  Fixed  Problem:   Job-­‐To-­‐Get-­‐Done  Hierarchy)   UNKNOWN   (Problem-­‐To-­‐Be-­‐Discovered:   Job-­‐To-­‐Get-­‐Done  Hierarchy)   KNOWN   (Sta6c  or  Fixed  Solu6on/ Outcome:   Universe  of  Tools)         Linear  Tools  &   Strategies   UNKNOWN   (Solu6on-­‐To-­‐Be-­‐Discovered:   Universe  of  Tools)   Non-­‐Linear  Tools  &  Strategies   Non-­‐Linear  Tools  &   Strategies   Classifica6on  of  Tools  (CoT)  for  Holis?c  Problem  Solving     Tools  for  Communica6on  and  Decision-­‐making  in  Varying  Contexts  of  Uncertainty  
  12. 12.   #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hMp://businessmodels.ning.com  &  hMp://twiMer.com/RodKuhnKing   Classifica6on  of  Tools  (CoT)  for  Holis?c  Problem  Solving     Tools  for  Communica6on  and  Decision-­‐making  in  Varying  Contexts  of  Uncertainty            PROBLEM  (Market/            Demand/Boundary)     SOLUTION   (Product/Technology)   KNOWN   (Sta6c  or  Fixed  Problem:   Job-­‐To-­‐Get-­‐Done  Hierarchy)   UNKNOWN   (Problem-­‐To-­‐Be-­‐Discovered:   Job-­‐To-­‐Get-­‐Done  Hierarchy)   KNOWN   (Sta6c  or  Fixed  Solu6on/ Outcome:   Universe  of  Tools)   UNKNOWN   (Solu6on-­‐To-­‐Be-­‐Discovered:   Universe  of  Tools)   Leb  Brain  Tools   Right  Brain  Tools   Six  Sigma  Methodology   Customer  Development  Stack   Agile  (Product)  Development   Discovery-­‐Driven  Planning     Tradi6onal  System  Thinking   Tradi?onal  Business  Plan   Design  (PaMern)  Thinking   Business  Model  Disrup?on   Rou6ne  (Linear)  Thinking   Compe??ve  Advantage  Strategy   TRIZ:  Inven6ve  Problem  Solving   Crea?ve  Problem  Solving   Living  System  Dashboard   Business  Model  Dashboard/IBIS   Blue  Ocean  Strategy   Mission/Vision/Values-­‐based   Complexity  (Chaos)  Thinking   SoX  Systems  Methodology   Collabora6ve  Storytelling   Sense-­‐making/Scenarios   Lean  Startup  Method   Systems  Engineering  
  13. 13.   #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hMp://businessmodels.ning.com  &  hMp://twiMer.com/RodKuhnKing   “Rumsfeld’s  Startup  BaMlefield”  for  Holis?c  Problem  Solving                PROBLEM  (Market/            Demand/Boundary)     SOLUTION   (Product/Technology)   KNOWN   (Sta6c  or  Fixed  Problem:   Job-­‐To-­‐Get-­‐Done  Hierarchy)   UNKNOWN   (Problem-­‐To-­‐Be-­‐Discovered:   Job-­‐To-­‐Get-­‐Done  Hierarchy)   KNOWN   (Sta6c  or  Fixed  Solu6on/ Outcome:   Universe  of  Tools)   UNKNOWN   (Solu6on-­‐To-­‐Be-­‐Discovered:   Universe  of  Tools)   Leb  Brain  Tools   Right  Brain  Tools   Six  Sigma  Methodology   Customer  Development  Stack   Blue  Ocean  Strategy   Mission/Vision/Values-­‐based   Complexity  (Chaos)  Thinking   SoX  Systems  Methodology   Design  (PaMern)  Thinking   Business  Model  Disrup?on   Rou6ne  (Linear)  Thinking   Compe??ve  Advantage  Strategy   “[T]here  are  known  knowns;  there  are  things  that  we  know  that  we  know.  We  also  know  that  there  are  known  unknowns;  that  is   to  say  we  know  there  are  some  things  we  do  not  know.  But  there  are  also  unknown  unknowns,  the  ones  we  don’t  know  we  don’t   know.”  Donald  Rumsfeld     Lean  Startup  Method   Systems  Engineering   TRIZ:  Inven6ve  Problem  Solving   Crea?ve  Problem  Solving   Collabora6ve  Storytelling   Sense-­‐making/Scenarios   Tradi6onal  System  Thinking   Tradi?onal  Business  Plan   Living  System  Dashboard   Business  Model  Dashboard/IBIS   Agile  (Product)  Development   Discovery-­‐Driven  Planning  
  14. 14.   #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hMp://businessmodels.ning.com  &  hMp://twiMer.com/RodKuhnKing   “Rumsfeld’s  Startup  BaMlefield”  for  Holis?c  Problem  Solving                PROBLEM  (Market/            Demand/Boundary)     SOLUTION   (Product/Technology)   KNOWN   (Sta6c  or  Fixed  Problem:   Job-­‐To-­‐Get-­‐Done  Hierarchy)   UNKNOWN   (Problem-­‐To-­‐Be-­‐Discovered:   Job-­‐To-­‐Get-­‐Done  Hierarchy)   KNOWN   (Sta6c  or  Fixed  Solu6on/ Outcome:   Universe  of  Tools)   UNKNOWN   (Solu6on-­‐To-­‐Be-­‐Discovered:   Universe  of  Tools)   Leb  Brain  Tools   Right  Brain  Tools   UNKNOWN  UNKNOWNS  KNOWN  UNKNOWNS   [UNKNOWN  KNOWNS]  KNOWN  KNOWNS   “[T]here  are  known  knowns;  there  are  things  [systems]  that  we  know  that  we  know.  We  also  know  that  there  are  known   unknowns;  that  is  to  say  we  know  there  are  some  things  [systems]  we  do  not  know.  But  there  are  also  unknown  unknowns,  the   ones  [systems]  we  don’t  know  we  don’t  know.”  Donald  Rumsfeld    
  15. 15.   #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hMp://businessmodels.ning.com  &  hMp://twiMer.com/RodKuhnKing   “Rumsfeld’s  Startup  BaMlefield”  for  Holis?c  Problem  Solving                PROBLEM  (Market/            Demand/Boundary)     SOLUTION   (Product/Technology)   KNOWN   (Sta6c  or  Fixed  Problem:   Job-­‐To-­‐Get-­‐Done  Hierarchy)   UNKNOWN   (Problem-­‐To-­‐Be-­‐Discovered:   Job-­‐To-­‐Get-­‐Done  Hierarchy)   KNOWN   (Sta6c  or  Fixed  Solu6on/ Outcome:   Universe  of  Tools)   UNKNOWN   (Solu6on-­‐To-­‐Be-­‐Discovered:   Universe  of  Tools)   Leb  Brain  Tools   Right  Brain  Tools   UNKNOWN  UNKNOWNS  KNOWN  UNKNOWNS   [UNKNOWN  KNOWNS]  KNOWN  KNOWNS   “[T]here  are  known  knowns;  there  are  things  [systems]  that  we  know  that  we  know.  We  also  know  that  there  are  known   unknowns;  that  is  to  say  we  know  there  are  some  things  [systems]  we  do  not  know.  But  there  are  also  unknown  unknowns,  the   ones  [systems]  we  don’t  know  we  don’t  know.”  Donald  Rumsfeld     things  (systems)  that  we  know  that   we  know   things  (systems)  that  we  do  not  know   that  we  know   things  (systems)  that  we  know  that   we  do  not  know   things  (systems)  that  we  do  not  know   that  we  do  not  know  
  16. 16. 0   2   4   6   8   10   12   Cost   Learning   Time   Ideal  Tool   Business  (Waterfall)  Plan   Lean  Startup  Method   Business  Model  Canvas   BUSINESS  MODEL  PATHOLOGY     “Maximum  Learning  at  Minimum  Cost  in  No  Time”     #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hMp://businessmodels.ning.com  &  hMp://twiMer.com/RodKuhnKing   (Highest)   Cost-­‐Learning-­‐Time  (CLT)  Canvas   for  Crea?ng  a  Scalable  Business  
  17. 17. What  is  Business  Model  Pathology?   BUSINESS  MODEL  PATHOLOGY   Is  a  Branch  of   BUSINESS  MODEL  CYBERNETICS   That  Focuses  on  Holis6cally   Studying  and  Developing  Models   That  Explain  the  Trade-­‐offs  of   HIGH  MORTALITY  RATE  (HMR)  STARTUPS   And  Other  LIVING  SYSTEMS  
  18. 18. BUSINESS  MODEL  PATHOLOGY   Facilitates   Holis6c  Problem  Solving  &  Learning  
  19. 19. Why  Business  Model  Pathology?   BUSINESS  MODEL  PATHOLOGY   Is  Essen?al  for   The  Diagnosis,   Early  Detec6on,   Preven6on,  and  Elimina6on  of   Undesirable  Trade-­‐offs  of   HIGH  MORTALITY  RATE  (HMR)  STARTUPS   And  Other  LIVING  SYSTEMS  
  20. 20. Business  Model  Pathology   Uses   Just  One  Tool  
  21. 21. Living  System  (LS)  Dashboard  
  22. 22.   #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hMp://businessmodels.ning.com  &  hMp://twiMer.com/RodKuhnKing   BUSINESS  MODEL  PATHOLOGY     3  Categories  of  Experience  for  a  Living  System   LIVING  SYSTEM                                                                                                                                         Supersystem   Experience   Environment   Experience   System                     Experience  
  23. 23.   #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hMp://businessmodels.ning.com  &  hMp://twiMer.com/RodKuhnKing   BUSINESS  MODEL  PATHOLOGY     LIVING  SYSTEM                                                                                                                                         Supersystem   Experience   Region/Gov./ NGOs   Influencers/         Media   Non-­‐Customers   (Prospects)   PESTLIED   Events/Trends     Environment   Experience   Suppliers   Channels/   Rela?onships   (In)Direct   Compe?tors   New  Entrants   (Startups)   Customers   System                         Experience   Input   Processor     Output     Feedback     3  Categories  of  Experience  for  a  Living  System  
  24. 24.   #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hMp://businessmodels.ning.com  &  hMp://twiMer.com/RodKuhnKing   BUSINESS  MODEL  PATHOLOGY     Tree  Diagram  (“Mind  Map”)  for  Living  System  Dashboard   LIVING  SYSTEM                                                                                                                                         Supersystem   (Entropy)   Region/Gov./ NGOs   Influencers/         Media   Non-­‐Customers   (Trade-­‐off:+/-­‐)   PESTLIED   Events/Trends     Environment   (Innova6on:  S-­‐Curve)   Suppliers   Channels/   Rela?onships   (In)Direct   Compe?tors   New  Entrants   (Startups)   Customers                     (Trade-­‐off:+/-­‐)   System                                                   (Jobs  To  Get  Done)   Input   Processor   (Tool/Org.)   Output                       (Trade-­‐off:+/-­‐)   Feedback             (Strategy)   q  Past   q  Present   q  Future   EXPERIENCE  
  25. 25. A  Living  System  Dashboard   (Cyberne6c  Model)   Illustrates     The  Logic  of   How  Every  Living  System  or   Organiza6on   Emerges,  Survives,  and  Prospers  
  26. 26. A  Living  System  Dashboard   Focuses  on   3  Categories  of   Organiza?onal  Experience:     Supersystem  Experience,   Environment  Experience,  and   System  Experience  
  27. 27. The  3  Components  of     Each  Organiza6onal  Experience   Are:     Happiness,   Loyalty,  and   Profitability  (Cost  Effec6veness)  
  28. 28. Tree  Diagram  (“Mind  Map”)   for   Living  System  Dashboard  
  29. 29.   #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hMp://businessmodels.ning.com  &  hMp://twiMer.com/RodKuhnKing   BUSINESS  MODEL  PATHOLOGY     Tree  Diagram  (“Mind  Map”)  for  Living  System  Dashboard   LIVING  SYSTEM                                                                                                                                         Supersystem   Experience   Region/Gov./ NGOs   Influencers/         Media   Non-­‐Customers   (Prospects)   PESTLIED   Events/Trends     Environment   Experience   Suppliers   Channels/   Rela?onships   (In)Direct   Compe?tors   New  Entrants   (Startups)   Customers   System                         Experience   Input   Processor     Output     Feedback     “Fake  XP”/   Build   Learn     Test  XP/   Measure   q  Past   q  Present   q  Future   EXPERIENCE  
  30. 30.   #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hMp://businessmodels.ning.com  &  hMp://twiMer.com/RodKuhnKing   BUSINESS  MODEL  PATHOLOGY     Tree  Diagram  (“Mind  Map”)  for  Living  System  Dashboard   LIVING  SYSTEM                                                                                                                                         Supersystem   Experience   Region/Gov./ NGOs   Influencers/         Media   Non-­‐Customers   (Prospects)   PESTLIED   Events/Trends     Environment   Experience   Suppliers   Channels/   Rela?onships   (In)Direct   Compe?tors   New  Entrants   (Startups)   Customers   System                         Experience   Input   Processor     Output     Feedback     “Fake  XP”/   Build   Learn     Test  XP/   Measure   q  Past   q  Present   q  Future   EXPERIENCE  
  31. 31.   #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hMp://businessmodels.ning.com  &  hMp://twiMer.com/RodKuhnKing   BUSINESS  MODEL  PATHOLOGY     Tree  Diagram  (“Mind  Map”)  for  Living  System  Dashboard   LIVING  SYSTEM                                                                                                                                         Supersystem   Experience   Region/Gov./ NGOs   Influencers/         Media   Non-­‐Customers   (Prospects)   PESTLIED   Events/Trends     Environment   Experience   Suppliers   Channels/   Rela?onships   (In)Direct   Compe?tors   New  Entrants   (Startups)   Customers   System                         Experience   Input   Processor     Output     Feedback     “Fake  XP”/   Build   Learn     Test  XP/   Measure   Structuralist   (Compe66ve  Advantage)   Reconstruc6onist   (Blue  Ocean)   q  Past   q  Present   q  Future   EXPERIENCE  
  32. 32.   #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hMp://businessmodels.ning.com  &  hMp://twiMer.com/RodKuhnKing   BUSINESS  MODEL  PATHOLOGY     Tree  Diagram  (“Mind  Map”)  for  Living  System  Dashboard   LIVING  SYSTEM                                                                                                                                         Supersystem   Experience   Region/Gov./ NGOs   Influencers/         Media   Non-­‐Customers   (Prospects)   PESTLIED   Events/Trends     Environment   Experience   Suppliers   Channels/   Rela?onships   (In)Direct   Compe?tors   New  Entrants   (Startups)   Customers   System                         Experience   Input   Processor     Output     Feedback     q  Past   q  Present   q  Future   EXPERIENCE   KP   KA   KR   R$   C$   CR   CS   CH   VP   Structuralist   (Compe66ve  Advantage)   Reconstruc6onist   (Blue  Ocean)  
  33. 33.   #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hMp://businessmodels.ning.com  &  hMp://twiMer.com/RodKuhnKing   BUSINESS  MODEL  PATHOLOGY     LIVING  SYSTEM  for:  RED  OCEAN                                                                                                                                         Supersystem   Experience   Region/Gov./ NGOs   Influencers/         Media   Non-­‐Customers   (Prospects)   PESTLIED   Events/Trends     Environment   Experience   Suppliers   Channels/   Rela?onships   (In)Direct   Compe?tors   New  Entrants   (Startups)   Customers   System                         Experience   Input   Processor     Output     Feedback     q  Past   ü  Present   q  Future   EXPERIENCE   KP   KA   KR   R$   C$   CS   VP   Structuralist   (Compe66ve  Advantage)   Reconstruc6onist   (Blue  Ocean)   First,  Understand  Red  Ocean  Trade-­‐off  Experiences.  Then,  Disrupt  Them.   CR  CH  
  34. 34.   #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hMp://businessmodels.ning.com  &  hMp://twiMer.com/RodKuhnKing   BUSINESS  MODEL  PATHOLOGY     LIVING  SYSTEM  for:  BLUE  OCEAN                                                                                                                                         Supersystem   Experience   Region/Gov./ NGOs   Influencers/         Media   Non-­‐Customers   (Prospects)   PESTLIED   Events/Trends     Environment   Experience   Suppliers   Channels/   Rela?onships   (In)Direct   Compe?tors   New  Entrants   (Startups)   Customers   System                         Experience   Input   Processor     Output     Feedback     q  Past   q  Present   ü  Future   EXPERIENCE   KP   KA   KR   R$   C$   CS   VP   Structuralist   (Compe66ve  Advantage)   Reconstruc6onist   (Blue  Ocean)   First,  Understand  Red  Ocean  Trade-­‐off  Experiences.  Then,  Disrupt  Them.   CR  CH  
  35. 35. Legend   The  following  topics,  which  describe  elements  of  a  business  model  on  slides  32  to  34   are  obtained  from  the  book,  “Business  Model  Genera?on”  by  Alexander  Osterwalder   and  Yves  Pigneur.     q  Key  Partners  (KP)   q  Key  Resources  (KR)   q  Key  Ac?vi?es  (KA)   q  Value  Proposi?on  (VP)   q  Channels  (CH)/Customer   Rela?onships  (CR)   q  Customer  Segments  (CS)   q  Cost  Structure  (C$)   q  Revenue  Streams  (R$)   The  above  topics  are  also  visually  presented  on  the  Business  Model  Canvas  which  can   be  obtained  here:    hfp://www.businessmodelgenera?on.com/downloads/business_model_canvas_poster.pdf       PESTLIED  is  an  acronym  for  Poli?cal;  Economic;  Social;  Technological;   Legal;  Interna?onal;  Environmental;  Demographic  
  36. 36. The  3  Elements  of   BUSINESS  EXPERIENCE   Are   Happiness,   Loyalty,  and   Profitability  
  37. 37. Nested  Diagram   for   Living  System  Dashboard  
  38. 38.   #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hMp://businessmodels.ning.com  &  hMp://twiMer.com/RodKuhnKing   BUSINESS  MODEL  PATHOLOGY     Living  System  (Cyberne?c  Model)   ENVIRONMENT   SYSTEM   Nested  Diagram  for  Living  System  Dashboard   SUPERSYSTEM  
  39. 39.   #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hMp://businessmodels.ning.com  &  hMp://twiMer.com/RodKuhnKing   BUSINESS  MODEL  PATHOLOGY     Dead  System  Model   ENVIRONMENT   (AWFUL  FINAL  RESULT/VISION/GOAL/FAILURE  CRITERIA)   Visually  Model  Hierarchy  of  Causes  for  the  High  Mortality  Rate  of  Business   SUPERSYSTEM   SYSTEM  (Chain  &  Hierarchy  of  Jobs  To  Get  Done)  
  40. 40.   #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hMp://businessmodels.ning.com  &  hMp://twiMer.com/RodKuhnKing   ENVIRONMENT   PROCESSOR   (Tool/Org.;   Func?onality)   INPUT   (Ideas/   Resources)   OUTPUT   (Trade-­‐off/   Experience)   BUSINESS  MODEL  PATHOLOGY     (AWFUL  FINAL  RESULT/VISION/GOAL/FAILURE  CRITERIA)   SUPERSYSTEM   Visually  Model  Hierarchy  of  Causes  for  the  High  Mortality  Rate  of  Business   SYSTEM  (Chain  &  Hierarchy  of  Jobs  To  Get  Done)   Dead  System  Model  
  41. 41.   #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hMp://businessmodels.ning.com  &  hMp://twiMer.com/RodKuhnKing   ENVIRONMENT   INPUT   (Ideas/   Resources)   Feedback(Strategy/Tac6cs)   OUTPUT   (Trade-­‐off/   Experience)   +   -­‐   PROCESSOR   (Tool/Org.;   Func?onality)   BUSINESS  MODEL  PATHOLOGY     (AWFUL  FINAL  RESULT/VISION/GOAL/FAILURE  CRITERIA)   SUPERSYSTEM   Visually  Model  Hierarchy  of  Causes  for  the  High  Mortality  Rate  of  Business   SYSTEM  (Chain  &  Hierarchy  of  Jobs  To  Get  Done)   Dead  System  Model  
  42. 42.   #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hMp://businessmodels.ning.com  &  hMp://twiMer.com/RodKuhnKing   ENVIRONMENT   “Fake  XP”/Build   Test  XP/Measure   INPUT   (Ideas/   Resources)   Learn  (Strategy/Tac6cs)   OUTPUT   (Trade-­‐off/   Experience)   +   -­‐   PROCESSOR   (Tool/Org.;   Func?onality)   BUSINESS  MODEL  PATHOLOGY     (AWFUL  FINAL  RESULT/VISION/GOAL/FAILURE  CRITERIA)   SUPERSYSTEM   Visually  Model  Hierarchy  of  Causes  for  the  High  Mortality  Rate  of  Business   SYSTEM  (Chain  &  Hierarchy  of  Jobs  To  Get  Done)   Dead  System  Model  
  43. 43.   #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hMp://businessmodels.ning.com  &  hMp://twiMer.com/RodKuhnKing   ENVIRONMENT   INPUT   (Ideas/   Resources)   Learn  (Strategy/Tac6cs)   OUTPUT   (Trade-­‐off/   Experience)   +   -­‐   CUSTOMERS   SUPPLIERS   (IN)DIRECT  COMPETITORS  (Subs?tutes/Complements)   NEW  ENTRANTS  (Startups)   PROCESSOR   (Tool/Org.;   Func?onality)   BUSINESS  MODEL  PATHOLOGY     (AWFUL  FINAL  RESULT/VISION/GOAL/FAILURE  CRITERIA)   SUPERSYSTEM   Visually  Model  Hierarchy  of  Causes  for  the  High  Mortality  Rate  of  Business   SYSTEM  (Chain  &  Hierarchy  of  Jobs  To  Get  Done)   Dead  System  Model   “Fake  XP”/Build   Test  XP/Measure  
  44. 44.   #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hMp://businessmodels.ning.com  &  hMp://twiMer.com/RodKuhnKing   ENVIRONMENT   INPUT   Learn  (Strategy/Tac6cs)   OUTPUT   +   -­‐   CUSTOMERS   SUPPLIERS   (IN)DIRECT  COMPETITORS  (Subs?tutes/Complements)   NEW  ENTRANTS  (Startups)   PROCESSOR   BUSINESS  MODEL  PATHOLOGY     (AWFUL  FINAL  RESULT/VISION/GOAL/FAILURE  CRITERIA)   KP   VP  KA  KR   CS   R$   C$   CH   CR   SUPERSYSTEM   Visually  Model  Hierarchy  of  Causes  for  the  High  Mortality  Rate  of  Business   SYSTEM  (Chain  &  Hierarchy  of  Jobs  To  Get  Done)   Dead  System  Model   “Fake  XP”/Build   Test  XP/Measure  
  45. 45.   #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hMp://businessmodels.ning.com  &  hMp://twiMer.com/RodKuhnKing   ENVIRONMENT   INPUT   Learn  (Strategy/Tac6cs)   OUTPUT   +   -­‐   CUSTOMERS   SUPPLIERS   (IN)DIRECT  COMPETITORS  (Subs?tutes/Complements)   NEW  ENTRANTS  (Startups)   PROCESSOR   BUSINESS  MODEL  PATHOLOGY     (AWFUL  FINAL  RESULT/VISION/GOAL/FAILURE  CRITERIA)   KP   VP  KA  KR   CS   R$   C$   CH   CR   Visually  Model  Hierarchy  of  Causes  for  the  High  Mortality  Rate  of  Business   SYSTEM  (Chain  &  Hierarchy  of  Jobs  To  Get  Done)   Dead  System  Model   “Fake  XP”/Build   Test  XP/Measure  
  46. 46.   #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hMp://businessmodels.ning.com  &  hMp://twiMer.com/RodKuhnKing   ENVIRONMENT   INPUT   Learn  (Strategy/Tac6cs)   OUTPUT   +   -­‐   CUSTOMERS   SUPPLIERS   (IN)DIRECT  COMPETITORS  (Subs?tutes/Complements)   NEW  ENTRANTS  (Startups)   PROCESSOR   BUSINESS  MODEL  PATHOLOGY     (AWFUL  FINAL  RESULT/VISION/GOAL/FAILURE  CRITERIA)   KP   VP  KA  KR   CS   R$   C$   CH   CR   Visually  Model  Hierarchy  of  Causes  for  the  High  Mortality  Rate  of  Business   SYSTEM  (Chain  &  Hierarchy  of  Jobs  To  Get  Done)   Dead  System  Model   “Fake  XP”/Build   Test  XP/Measure  
  47. 47.   #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hMp://businessmodels.ning.com  &  hMp://twiMer.com/RodKuhnKing   ENVIRONMENT   INPUT   Learn  (Strategy/Tac6cs)   OUTPUT   +   -­‐   CUSTOMERS   SUPPLIERS   (IN)DIRECT  COMPETITORS  (Subs?tutes/Complements)   NEW  ENTRANTS  (Startups)   PROCESSOR   BUSINESS  MODEL  PATHOLOGY     (AWFUL  FINAL  RESULT/VISION/GOAL/FAILURE  CRITERIA)   KP   VP  KA  KR   CS   R$   C$   CH   CR   Visually  Model  Hierarchy  of  Causes  for  the  High  Mortality  Rate  of  Business   SYSTEM  (Chain  &  Hierarchy  of  Jobs  To  Get  Done)   Dead  System  Model   “Fake  XP”/Build   Test  XP/Measure  
  48. 48.   #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hMp://businessmodels.ning.com  &  hMp://twiMer.com/RodKuhnKing   ENVIRONMENT   INPUT   Learn  (Strategy/Tac6cs)   OUTPUT   +   -­‐   CUSTOMERS   SUPPLIERS   (IN)DIRECT  COMPETITORS  (Subs?tutes/Complements)   NEW  ENTRANTS  (Startups)   PROCESSOR   BUSINESS  MODEL  PATHOLOGY     (AWFUL  FINAL  RESULT/VISION/GOAL/FAILURE  CRITERIA)   KP   VP  KA  KR   CS   R$   C$   CH   CR   Visually  Model  Hierarchy  of  Causes  for  the  High  Mortality  Rate  of  Business   SYSTEM  (Chain  &  Hierarchy  of  Jobs  To  Get  Done)   Dead  System  Model   “Fake  XP”/Build   Test  XP/Measure  
  49. 49. Axiom  of  Business  Model  Cyberne6cs   CUSTOMER   Hires  (Chooses)   OUTPUT  (Product/Service)  from   PROCESSOR  (Organiza?on/Tool)   In  Order  to  Achieve   SYSTEM’S  “Job  To  Get  Done”  
  50. 50. Examples   (“Autopsies”)   1-­‐Minute  Business  Failure  Analysis  
  51. 51.   #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hMp://businessmodels.ning.com  &  hMp://twiMer.com/RodKuhnKing   ENVIRONMENT   INPUT   Learn  (Strategy/Tac6cs)   OUTPUT   +   -­‐   CUSTOMERS   SUPPLIERS   (IN)DIRECT  COMPETITORS  (Subs?tutes/Complements)   NEW  ENTRANTS  (Startups)   PROCESSOR   BLOCKBUSTER’S  SYSTEM:  Experience  Entertainment  at  Home   BUSINESS  MODEL  PATHOLOGY  for  Blockbuster  Video  (1985-­‐2014)     Blockbuster’s  “Dead  System”   (AWFUL  FINAL  RESULT/VISION/GOAL/FAILURE  CRITERIA)   KP   VP  KA  KR   CS   R$   C$   CH   CR   Blockbuster   Video   Visually  Model  Hierarchy  of  Causes  for  the  High  Mortality  Rate  of  Business   “Fake  XP”/Build   Test  XP/Measure  
  52. 52.   #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hMp://businessmodels.ning.com  &  hMp://twiMer.com/RodKuhnKing   ENVIRONMENT   INPUT   Learn  (Strategy/Tac6cs)   OUTPUT   +   -­‐   CUSTOMERS   SUPPLIERS   (IN)DIRECT  COMPETITORS  (Subs?tutes/Complements)   NEW  ENTRANTS  (Startups)   PROCESSOR   BLACKBERRY’S  SYSTEM:  Tele-­‐communicate  24x7     BUSINESS  MODEL  PATHOLOGY  for  Blackberry  Phone     Blackberry’s  “Dying  System”   (AWFUL  FINAL  RESULT/VISION/GOAL/FAILURE  CRITERIA)   KP   VP  KA  KR   CS   R$   C$   CH   CR   Smartphone   Visually  Model  Hierarchy  of  Causes  for  the  High  Mortality  Rate  of  Business   “Fake  XP”/Build   Test  XP/Measure  
  53. 53. Startups  and  Established  Businesses   Die   When  They  Fail  to  Discover  and  Solve   BUMPs:   (Big  Urgent  Market  Problems)   As  Well  As   Fail  to  Deliver  ACEs   (Awesome  Customer  Experiences)  
  54. 54. Business  Model  Cyberne6cs   Is  About   Simply  Crea6ng,  Delivering,  and  Sharing   Awesome  Customer  Experiences   (ACEs)  
  55. 55.   #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hMp://businessmodels.ning.com  &  hMp://twiMer.com/RodKuhnKing   The  Blind  Men  and  the  Elephant     A  Poem  by  John  Godfrey  Saxe   I.   IT  was  six  men  of  Indostan    To  learning  much  inclined,   Who  went  to  see  the  Elephant    (Though  all  of  them  were  blind),   That  each  by  observa6on    Might  sa6sfy  his  mind.     II.   The  First  approached  the  Elephant,    And  happening  to  fall   Against  his  broad  and  sturdy  side,    At  once  began  to  bawl:   "God  bless  me!—but  the  Elephant    Is  very  like  a  wall!”     III.   The  Second,  feeling  of  the  tusk,    Cried:"Ho!—what  have  we  here   So  very  round  and  smooth  and   sharp?    To  me  't  is  mighty  clear              This  wonder  of  an  Elephant                                  Is  very  like  a  spear!”   IV.   The  Third  approached  the  animal,    And  happening  to  take   The  squirming  trunk  within  his  hands,    Thus  boldly  up  and  spake:   "I  see,"  quoth  he,  "the  Elephant    Is  very  like  a  snake!"     V.   The  Fourth  reached  out  his  eager  hand,    And  felt  about  the  knee.   "What  most  this  wondrous  beast  is  like    Is  mighty  plain,"  quoth  he;   "'T  is  clear  enough  the  Elephant    Is  very  like  a  tree!"     VI.   The  Figh,  who  chanced  to  touch  the  ear,    Said:  "E'en  the  blindest  man   Can  tell  what  this  resembles  most;    Deny  the  fact  who  can,   This  marvel  of  an  Elephant    Is  very  like  a  fan!”   VII.   The  Sixth  no  sooner  had  begun    About  the  beast  to  grope,   Than,  seizing  on  the  swinging  tail    That  fell  within  his  scope,   "I  see,"  quoth  he,  "the  Elephant    Is  very  like  a  rope!"     VIII.   And  so  these  men  of  Indostan    Disputed  loud  and  long,   Each  in  his  own  opinion    Exceeding  s?ff  and  strong,   Though  each  was  partly  in  the   right,    And  all  were  in  the  wrong!        

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