HOW ENTREPRENEURS AND BUSINESSES CAN BETTER SOLVE COMMUNITY PROBLEMS: The Global Business Model (GBM) Canvas for Shared Value Business Models and Projects
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"Capitalism as usual" is increasingly coming under attack. According to an increasing number of observers, society and the environment are suffering while many corporations are having fantastic profit. The sentiment of those observers is that corporations are making profit at the expense of society and the environment. These observers consider as unacceptable the trade-off between profit on the one hand and people and the planet on the other hand. There is a growing number of proposals on how to resolve the inherent trade-offs of capitalism. One of the most promising frameworks is "Creating Shared Value" by Michael Porter and Mark Kramer. Although Porter and Kramer outline principles and tactics for creating Shared Value, their description is largely textual. In addition, they have not proposed a holistic tool for creating, delivering, and sharing value in projects. This presentation introduces the Global Business Model (GBM) Canvas which is a one-page visual tool for creating, delivering, and sharing value in projects. The GBM Canvas can also be used for simply reDesigning shared value business models that improve society and the environment as well as profit.
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HOW ENTREPRENEURS AND BUSINESSES CAN BETTER SOLVE COMMUNITY PROBLEMS: The Global Business Model (GBM) Canvas for Shared Value Business Models and Projects
- 1. BUSINESS MODEL JOBS-‐TO-‐BE-‐DONE Design Shared Value (“Back End”) Deliver Shared Value (“Front End”) Business Model Environ-‐ ment (BME) Learn About Business System (PROJECT/TOOL) (“Superstructure”/“Stage”) Manage Shared Value (IMPACT ANALYSIS) (“Founda8on”) Global Business Model (GBM) Canvas for Shared Value Business Models and Projects Simply ReDesign Business Models for the Triple BoCom Line of Profit, People, and Planet Copyright 2013. Dr. Rod King. rodkuhnking@sbcglobal.net & hOp://businessmodels.ning.com & hOp://twiOer.com/RodKuhnKing
- 2. BUSINESS MODEL JOBS-‐TO-‐BE-‐DONE Design Shared Happiness (“Back End”) Deliver Shared Happiness (“Front End”) Business Model Environ-‐ ment (BME) Learn About Business System (PROJECT/TOOL) (“Superstructure”/“Stage”) Manage Shared Happiness (IMPACT ANALYSIS) (“Founda8on”) Global Business Model (GBM) Canvas for Shared Happiness Business Models and Projects Global Business Model (GBM) Theater: Simply ReDesign Business Models for the Triple BoCom Line of Profit, People, and Planet Copyright 2013. Dr. Rod King. rodkuhnking@sbcglobal.net & hOp://businessmodels.ning.com & hOp://twiOer.com/RodKuhnKing
- 3. The Job-‐To-‐Be-‐Done of A Business (Model/Project) Is To Viably Learn About, Design for, Deliver, and Manage Shared Value (Happiness)
- 4. What is “Shared Value”? “Shared Value CreaYon focuses on idenYfying the connecYon between societal and economic progress” “The concept of shared value can be defined as policies and operaYng pracYces that enhance the compeYYveness of a company while simultaneously advancing the economic and social condiYons in the communiYes in which it operates.” Michael Porter & Mark Kramer
- 5. One-‐Page PlaTorm For Visually DocumenVng, CreaVng, and Managing Shared Value Business Models and Projects
- 6. BUSINESS MODEL JOBS-‐TO-‐BE-‐DONE Design Shared Value (Supply Infrastructure: Internal System) “Back End” Deliver Shared Value (Demand Infrastructure: External) “Front End” Business Model Environ-‐ ment (BME) Learn About Business System (PROJECT/TOOL) Business Model Canvas (Extended Business) SEMPORCES Business Chain (Ecosystem) DESCRIPTIONS (Content: Outcomes/ AcYviYes/Tasks) Manage Shared Value (S: Shared Value/Mission/IMPACT ANALYSIS) Financial Value or Profit Trade-‐off Cost (C$) Benefit (R$) Social Value or People Trade-‐off Cost Benefit Env. Value or Planet Trade-‐off Cost Benefit Copyright 2013. Dr. Rod King. rodkuhnking@sbcglobal.net & hOp://businessmodels.ning.com & hOp://twiOer.com/RodKuhnKing Global Business Model (GBM) Canvas for Shared Value Business Models and Projects Simply ReDesign Business Models for the Triple BoCom Line of Profit, People, and Planet
- 7. BUSINESS MODEL JOBS-‐TO-‐BE-‐DONE Design Shared Value (Supply Infrastructure: Internal System) “Back End” Deliver Shared Value (Demand Infrastructure: External) “Front End” Business Model Environ-‐ ment (BME) Industry Ecosys-‐ tem Market Ecosys-‐ tem Trends (PEST-‐ LIED) & Comple-‐ mentors Macro-‐ Econo-‐ mic Influen-‐ cers (Society) Learn About Business System (PROJECT/TOOL) Value Chain Canvas (Extended Business) SEMPORCES Business Chain (Ecosystem) DESCRIPTIONS (Content: Outcomes/ AcYviYes/Tasks) Manage Shared Value (S: Shared Value/Mission/IMPACT ANALYSIS) Financial Value or Profit Trade-‐off Cost Benefit Social Value or People Trade-‐off Cost Benefit Env. Value or Planet Trade-‐off Cost Benefit Global Business Model (GBM) Canvas: Pla]orm Showing “Profit Logic” of Value Chain Canvas PROFIT MARGIN (Profit) q Past (“Done”) q Present (“As Is”/“Doing”) q Future (“To Be”/“To Do”) Topics of the the Value Chain Canvas (“Yellow blocks”) are from Michael Porter’s book, Compe88ve Advantage Service MarkeVng & Sales Human Resource Management Inbound LogisVcs OperaVons Outbound LogisVcs Technology Firm Infrastructure Procurement
- 8. BUSINESS MODEL JOBS-‐TO-‐BE-‐DONE Design Shared Value (Supply Infrastructure: Internal System) “Back End” Deliver Shared Value (Demand Infrastructure: External) “Front End” Business Model Environ-‐ ment (BME) Industry Ecosys-‐ tem Market Ecosys-‐ tem Trends (PEST-‐ LIED) & Comple-‐ mentors Macro-‐ Econo-‐ mic Influen-‐ cers (Society) Learn About Business System (PROJECT/TOOL) Shared Value Chain Canvas (Extended Business) SEMPORCES Business Chain (Ecosystem) DESCRIPTIONS (Content: Outcomes/ AcYviYes/Tasks) Manage Shared Value (S: Shared Value/Mission/IMPACT ANALYSIS) Financial Value or Profit Trade-‐off Cost Benefit Social Value or People Trade-‐off Cost Benefit Env. Value or Planet Trade-‐off Cost Benefit Global Business Model (GBM) Canvas: Pla]orm Showing “Shared Value Logic” of Shared Value Chain Canvas PROFIT MARGIN (Profit) q Past (“Done”) q Present (“As Is”/“Doing”) q Future (“To Be”/“To Do”) Topics of the the Shared Value Chain Canvas (“Yellow blocks”) are mainly from Michael Porter’s book, Compe88ve Advantage Service MarkeVng & Sales Human Resource Management Inbound LogisVcs OperaVons Outbound LogisVcs Technology Firm Infrastructure Procurement SOCIAL VALUE (People) ENVIRONMENTAL VALUE (Planet)
- 9. BUSINESS MODEL JOBS-‐TO-‐BE-‐DONE Design Shared Value (Supply Infrastructure: Internal System) “Back End” Deliver Shared Value (Demand Infrastructure: External) “Front End” Business Model Environ-‐ ment (BME) Industry Ecosys-‐ tem Market Ecosys-‐ tem Trends (PEST-‐ LIED) & Comple-‐ mentors Macro-‐ Econo-‐ mic Influen-‐ cers (Society) Learn About Business System (PROJECT/TOOL) 4-‐Box Business Model Canvas (Extended Business) SEMPORCES Business Chain (Ecosystem) DESCRIPTIONS (Content: Outcomes/ AcYviYes/Tasks) Manage Shared Value (S: Shared Value/Mission/IMPACT ANALYSIS) Financial Value or Profit Trade-‐off Cost (C$) Benefit (R$) Social Value or People Trade-‐off Cost Benefit Env. Value or Planet Trade-‐off Cost Benefit Global Business Model (GBM) Canvas: Pla]orm Showing “Profit Logic” of 4-‐Box Business Model Canvas PROFIT FORMULA q Past (“Done”) q Present (“As Is”/“Doing”) q Future (“To Be”/“To Do”) Topics of the the Value Chain Canvas (“Yellow blocks”) are from Mark Johnson’s book, Seizing the White Space Key Resources Key Processes Customer Value ProposiVon
- 10. BUSINESS MODEL JOBS-‐TO-‐BE-‐DONE Design Shared Value (Supply Infrastructure: Internal System) “Back End” Deliver Shared Value (Demand Infrastructure: External) “Front End” Business Model Environ-‐ ment (BME) Industry Ecosys-‐ tem Market Ecosys-‐ tem Trends (PEST-‐ LIED) & Comple-‐ mentors Macro-‐ Econo-‐ mic Influen-‐ cers (Society) Learn About Business System (PROJECT/TOOL) Business Model Canvas (Extended Business) SEMPORCES Business Chain (Ecosystem) DESCRIPTIONS (Content: Outcomes/ AcYviYes/Tasks) Manage Shared Value (S: Shared Value/Mission/IMPACT ANALYSIS) Financial Value or Profit Trade-‐off Cost (C$) Benefit (R$) Social Value or People Trade-‐off Cost Benefit Env. Value or Planet Trade-‐off Cost Benefit Global Business Model (GBM) Canvas: Pla]orm Showing “Profit Logic” of Non-‐linear Business Model Canvas Customer Segments (CS) Customer RelaVonships (CR) Channels (CH) Key AcVviVes (KA) Key Resources (KA) Key Partners (KP) Revenue Streams (R$) q Past (“Done”) q Present (“As Is”/“Doing”) q Future (“To Be”/“To Do”) Value ProposiVon (VP) Cost Structure (C$) Topics and blocks of the the Business Model Canvas are from the book, Business Model Genera8on (www.businessmodelgeneraYon.com)
- 11. BUSINESS MODEL JOBS-‐TO-‐BE-‐DONE Design Shared Value (Supply Infrastructure: Internal System) Deliver Shared Value (Demand Infrastructure: External) Business Model Environ-‐ ment (BME) Industry Ecosys-‐ tem Market Ecosys-‐ tem Trends (PEST-‐ LIED) & Comple-‐ mentors Macro-‐ Econo-‐ mic Influen-‐ cers (Society) Learn About Business System (PROJECT/TOOL) Business Model Canvas (Extended Business) SEMPORCES Business Chain (Ecosystem) DESCRIPTIONS (Content: Outcomes/ AcYviYes/Tasks) Manage Shared Value (S: Shared Value/Mission/IMPACT ANALYSIS) Financial Value or Profit Trade-‐off Cost (C$) Benefit (R$) Social Value or People Trade-‐off Cost Benefit Env. Value or Planet Trade-‐off Cost Benefit Global Business Model (GBM) Canvas: Pla]orm Showing “Profit Logic” of Linear Business Model Canvas Key Resources (KR) Key AcVviVes (KA) Key Partners (KP) Value ProposiVon (VP) Cost Structure (C$) Revenue Streams (R$) q Past (“Done”) q Present (“As Is”/“Doing”) q Future (“To Be”/“To Do”) Customer RelaVonships (CR) Channels (CH) Customer Segments (CS) Topics of the the Business Model Canvas (“Yellow blocks”) are from the book, Business Model Genera8on (www.businessmodelgeneraYon.com)
- 12. BUSINESS MODEL JOBS-‐TO-‐BE-‐DONE Design Shared Value (Supply Infrastructure: Internal System) “Back End” Deliver Shared Value (Demand Infrastructure: External) “Front End” Business Model Environ-‐ ment Learn About Business System (PROJECT/TOOL) Lean Canvas (Extended Business) SEMPORCES Business Chain (Ecosystem) DESCRIPTIONS (Content: Outcomes/ AcYviYes/Tasks) Manage Shared Value (S: Shared Value/Mission/IMPACT ANALYSIS) Financial Value or Profit Trade-‐off Cost (C$) Benefit (R$) Social Value or People Trade-‐off Cost Benefit Env. Value or Planet Trade-‐off Cost Benefit Global Business Model (GBM) Canvas: Pla]orm Showing “Profit Logic” of Non-‐linear Lean Canvas Customer Segments Channels Revenue Streams q Past (“Done”) q Present (“As Is”/“Doing”) q Future (“To Be”/“To Do”) Unique Value ProposiVon Cost Structure Topics and blocks of the the Lean Canvas are from Ash Maurya’s book, Running Lean Key Metrics Unfair Advan-‐ tage SoluVon Problem
- 13. BUSINESS MODEL JOBS-‐TO-‐BE-‐DONE Design Shared Value (Supply Infrastructure: Internal System) Deliver Shared Value (Demand Infrastructure: External) Business Model Environ-‐ ment (BME) Industry Ecosys-‐ tem Market Ecosys-‐ tem Trends (PEST-‐ LIED) & Comple-‐ mentors Macro-‐ Econo-‐ mic Influen-‐ cers (Society) Learn About Business System (PROJECT/TOOL) Business Model Chain (Extended Business) SEMPORCES Business Chain (Ecosystem) DESCRIPTIONS (Content: Outcomes/ AcYviYes/Tasks) Manage Shared Value (S: Shared Value/Mission/IMPACT ANALYSIS) Financial Value or Profit Trade-‐off Cost (C$) Benefit (R$) Social Value or People Trade-‐off Cost Benefit Env. Value or Planet Trade-‐off Cost Benefit Global Business Model (GBM) Canvas: Pla]orm Showing “Shared Value Logic” of Business Model Chain/Process Copyright 2013. Dr. Rod King. rodkuhnking@sbcglobal.net & hOp://businessmodels.ning.com & hOp://twiOer.com/RodKuhnKing E: Employees/ Brand/IP P: Process/Strategy S: Suppliers/Partners/Input O: Output (Product/ Service/Value ProposiYon) Financial Pain (Disadv./Cost): -‐ Financial Delight (Adv./Benefit): + q Past (“Done”) q Present (“As Is”/“Doing”) q Future (“To Be”/“To Do”) R: Retailers/Channels/CRM C: Customers/Consumers M: Machinery/ Infra’ Social Pain (Disadv./Cost): -‐ Social Delight (Adv./Benefit): + Environmental Pain (Disadv./Cost): -‐ Environmental Delight (Adv./ Benefit): +
- 14. BUSINESS MODEL JOBS-‐TO-‐BE-‐DONE Design Shared Value (Supply Infrastructure: Internal System) “Back End” Deliver Shared Value (Demand Infrastructure: External) “Front End” Business Model Environ-‐ ment (BME) Learn About Business System (PROJECT/TOOL) Business Model Canvas (Extended Business) Key Partners (KP) Key Resources (KR) Key AcVviVes (KA) Value Prop. (VP) Channels (CH) Custom-‐ er Rel. (CR) Customer Segments (CS) SEMPORCES Business Chain (Ecosystem) S: Supplier/ Inputs E: Employ-‐ ees, etc. M: Mach-‐ inery P: Process/ Strategy O: Product/ Service R: Retailers/ Distributors/CRM C: Customer E: Environ-‐ ment DESCRIPTIONS (Content: Outcomes/ AcYviYes/Tasks) Manage Shared Value (S: Shared Value/Mission/IMPACT ANALYSIS) Financial Value or Profit Trade-‐off Cost (C$) Benefit (R$) Social Value or People Trade-‐off Cost Benefit Env. Value or Planet Trade-‐off Cost Benefit Global Business Model (GBM) Canvas: Document and Evaluate Projects Using Linear Business Model Copyright 2013. Dr. Rod King. rodkuhnking@sbcglobal.net & hOp://businessmodels.ning.com & hOp://twiOer.com/RodKuhnKing q Past (“Done”) q Present (“As Is”/“Doing”) q Future (“To Be”/“To Do”)
- 15. BUSINESS MODEL JOBS-‐TO-‐BE-‐DONE Design Shared Value (Supply Infrastructure: Internal System) “Back End” Deliver Shared Value (Demand Infrastructure: External) “Front End” Business Model Environ-‐ ment (BME) Learn About Business System (PROJECT/TOOL) Business Model Canvas -‐ Topics (Extended Business) Key Partners (KP) Key Resources (KR) Key AcVviVes (KA) Value Prop. (VP) Channels (CH) Custom-‐ er Rel. (CR) Customer Segments (CS) Problem Solving Cycle (excluding “Measure”; “Learn”) Build Plan Problem E: Environ-‐ ment DESCRIPTIONS (Content: Outcomes/ AcYviYes/Tasks) Manage Shared Value (S: Shared Value/Mission/IMPACT ANALYSIS) Financial Value or Profit Trade-‐off Cost (C$) Benefit (R$) Social Value or People Trade-‐off Cost Benefit Env. Value or Planet Trade-‐off Cost Benefit Global Business Model (GBM) Canvas: Document and Evaluate Projects Using Problem Solving Cycle Copyright 2013. Dr. Rod King. rodkuhnking@sbcglobal.net & hOp://businessmodels.ning.com & hOp://twiOer.com/RodKuhnKing q Past (“Done”) q Present (“As Is”/“Doing”) q Future (“To Be”/“To Do”)
- 16. BUSINESS MODEL JOBS-‐TO-‐BE-‐DONE Design Shared Value (Supply Infrastructure: Internal System) “Back End” Deliver Shared Value (Demand Infrastructure: External) “Front End” Business Model Environ-‐ ment (BME) Learn About Business System (PROJECT/TOOL) Business Model Canvas (Extended Business) Key Partners (KP) Key Resources (KR) Key AcVviVes (KA) Value Prop. (VP) Channels (CH) Custom-‐ er Rel. (CR) Customer Segments (CS) SEMPORCES Business Chain (Ecosystem) S: Supplier/ Inputs E: Employ-‐ ees, etc. M: Mach-‐ inery P: Process/ Strategy O: Product/ Service R: Retailers/ Distributors/CRM C: Customer E: Environ-‐ ment DESCRIPTIONS (Content: Outcomes/ AcYviYes/Tasks) Learning Perspec-‐ 8ve Process Perspec-‐ 8ve Customer Perspec-‐ 8ve Manage Shared Value (S: Shared Value/Mission/IMPACT ANALYSIS) Financial Value or Profit Trade-‐off Cost (C$) Benefit (R$) Social Value or People Trade-‐off Cost Benefit Env. Value or Planet Trade-‐off Cost Benefit Global Business Model (GBM) Canvas: Manage Performance Using PerspecYves of Balanced Scorecard (BSC) Copyright 2013. Dr. Rod King. rodkuhnking@sbcglobal.net & hOp://businessmodels.ning.com & hOp://twiOer.com/RodKuhnKing q Past (“Done”) q Present (“As Is”/“Doing”) q Future (“To Be”/“To Do”)
- 17. BUSINESS MODEL JOBS-‐TO-‐BE-‐DONE Design Shared Value (Supply Infrastructure: Internal System) “Back End” Deliver Shared Value (Demand Infrastructure: External) “Front End” Business Model Environ-‐ ment (BME) Learn About Business System (PROJECT/TOOL) Business Model Canvas (Extended Business) Key Partners (KP) Key Resources (KR) Key AcVviVes (KA) Value Prop. (VP) Channels (CH) Custom-‐ er Rel. (CR) Customer Segments (CS) SEMPORCES Business Chain (Ecosystem) S: Supplier/ Inputs E: Employ-‐ ees, etc. M: Mach-‐ inery P: Process/ Strategy O: Product/ Service R: Retailers/ Distributors/CRM C: Customer E: Environ-‐ ment DESCRIPTIONS (4 “ERIC” TacVcs: Eliminate/Reduce/ Increase/Create) Manage Shared Value (S: Shared Value/Mission/IMPACT ANALYSIS) Financial Value or Profit Trade-‐off Cost (C$) Benefit (R$) Social Value or People Trade-‐off Cost Benefit Env. Value or Planet Trade-‐off Cost Benefit Global Business Model (GBM) Canvas: 4 What-‐if (“ERIC”) TacVcs for Improving/DisrupVng a Business Model Copyright 2013. Dr. Rod King. rodkuhnking@sbcglobal.net & hOp://businessmodels.ning.com & hOp://twiOer.com/RodKuhnKing q Past (“Done”) q Present (“As Is”/“Doing”) q Future (“To Be”/“To Do”)
- 18. BUSINESS MODEL JOBS-‐TO-‐BE-‐DONE Design Shared Value (Supply Infrastructure: Internal System) “Back End” Deliver Shared Value (Demand Infrastructure: External) “Front End” Business Model Environ-‐ ment (BME) Learn About Business System (PROJECT/TOOL) Business Model Canvas (Extended Business) Key Partners (KP) Key Resources (KR) Key AcVviVes (KA) Value Prop. (VP) Channels (CH) Custom-‐ er Rel. (CR) Customer Segments (CS) SEMPORCES Business Chain (Ecosystem) S: Supplier/ Inputs E: Employ-‐ ees, etc. M: Mach-‐ inery P: Process/ Strategy O: Product/ Service R: Retailers/ Distributors/CRM C: Customer E: Environ-‐ ment DESCRIPTIONS (SWOT Analysis: Strength/Weak-‐ ness/Opp./Threat) Manage Shared Value (S: Shared Value/Mission/IMPACT ANALYSIS) Financial Value or Profit Trade-‐off Cost (C$) Benefit (R$) Social Value or People Trade-‐off Cost Benefit Env. Value or Planet Trade-‐off Cost Benefit Global Business Model (GBM) Canvas: SWOT Analysis of a Business Model Copyright 2013. Dr. Rod King. rodkuhnking@sbcglobal.net & hOp://businessmodels.ning.com & hOp://twiOer.com/RodKuhnKing q Past (“Done”) q Present (“As Is”/“Doing”) q Future (“To Be”/“To Do”)
- 19. BUSINESS MODEL JOBS-‐TO-‐BE-‐DONE Design Shared Value (Supply Infrastructure: Internal System) Deliver Shared Value (Demand Infrastructure: External) Business Model Environ-‐ ment (BME) Learn About Business System (PROJECT/TOOL) Business Model Canvas (Extended Business) Key Partners (KP) Key Resources (KR) Key AcVviVes (KA) Value Prop. (VP) Channels (CH) Custom-‐ er Rel. (CR) Customer Segments (CS) SEMPORCES Business Chain (Ecosystem) S: Supplier/ Inputs E: Employ-‐ ees, etc. M: Mach-‐ inery P: Process/ Strategy O: Product/ Service R: Retailers/ Distributors/CRM C: Customer E: Environ-‐ ment DESCRIPTIONS (Content: Outcomes/ AcYviYes/Tasks) Manage Shared Value (S: Shared Value/Mission/IMPACT ANALYSIS) Financial Value or Profit Trade-‐off Cost (C$) Benefit (R$) Social Value or People Trade-‐off Cost Benefit Env. Value or Planet Trade-‐off Cost Benefit Global Business Model (GBM) Canvas: The 5 Levers of InnovaVon for Shared Value Business Models & Projects Copyright 2013. Dr. Rod King. rodkuhnking@sbcglobal.net & hOp://businessmodels.ning.com & hOp://twiOer.com/RodKuhnKing q Past (“Done”) q Present (“As Is”/“Doing”) q Future (“To Be”/“To Do”)
- 20. BUSINESS MODEL JOBS-‐TO-‐BE-‐DONE Design Shared Value (Supply Infrastructure: Internal System) “Back End” Deliver Shared Value (Demand Infrastructure: External) “Front End” Business Model Environ-‐ ment (BME) Industry Ecosys-‐ tem Market Ecosys-‐ tem Trends (PEST-‐ LIED) & Comple-‐ mentors Macro-‐ Econo-‐ mic Influen-‐ cers (Society/ Cluster Dev.) Learn About Business System (PROJECT/TOOL) Business Model Canvas (Extended Business) SEMPORCES Business Chain (Ecosystem) DESCRIPTIONS (Content: Outcomes/ AcYviYes/Tasks) Manage Shared Value (S: Shared Value/Mission/IMPACT ANALYSIS) Financial Value or Profit Trade-‐off Cost (C$) Benefit (R$) Social Value or People Trade-‐off Cost Benefit Env. Value or Planet Trade-‐off Cost Benefit Global Business Model (GBM) Canvas: ObjecVves/Tasks for Shared Value Business Models and Projects Customer RelaVonships (CR) Deliver local brand promise Channels (CH) -‐ Use local channels/ media Key AcVviVes (KA) -‐ Streamline processes -‐ Balance inventory Key Resources (KA) -‐ Local talent -‐ Improve labor condi8ons Value ProposiVon (VP) -‐ Develop value proposi8ons/ products/ services that solve local/ community/ regional/ na8onal/global problems Cost Structure (C$) • Reduce or manage (overseas) direct/indirect costs • Eliminate waste; Increase efficiency & produc8vity • Reduce energy consump8on/opera8ng costs Revenue Streams (R$) • Increase (local) revenue • Increase market share (growth) • Increase profitability & quality Social Costs (-‐) • Reduce social costs and risks • Reduce social dispari8es,e.g., in educa8on/training • Reduce crime and social malaise; reduce illnesses Social Benefits (+) • Improve community develop-‐ ment, e.g., housing • Provide local jobs/employment • Improve health/educa8on Environmental Costs (-‐) • Reduce environmental pollu8on/degrada8on • Efficiently use resources in business (model)/ value chain/supply chain/ecosystem Environmental Benefits (+) • Improve condi8ons for local/ regional/na8onal growth • Reduce carbon footprint Customer Segments (CS) -‐ Improve customer experience incl. community/ investors/ society -‐ Build customer loyalty Key Partners (KP) -‐ Use local/ recycled materials -‐ Improve quality and efficiency of local supply chain -‐ Collaborate locally/NGOs q Past (“Done”) q Present (“As Is”/“Doing”) q Future (“To Be”/“To Do”) Topics of the the Business Model Canvas are mainly from the book, Business Model Genera8on (www.businessmodelgeneraYon.com)
- 21. ApplicaYon of Global Business Model (GBM) Canvas HolisYcally Design, Deliver, and Capture Shared Value
- 22. BUSINESS MODEL JOBS-‐TO-‐BE-‐DONE Design Shared Value (Supply Infrastructure: Internal System) “Back End” Deliver Shared Value (Demand Infrastructure: External) “Front End” Business Model Environ-‐ ment (BME) Industry Ecosys-‐ tem Market Ecosys-‐ tem Trends (PEST-‐ LIED) & Comple-‐ mentors Macro-‐ Econo-‐ mic Influen-‐ cers (Society/ Cluster Dev.) Learn About Business System (PROJECT/TOOL) Business Model Canvas (Extended Business) SEMPORCES Business Chain (Ecosystem) DESCRIPTIONS (Content: Outcomes/ AcYviYes/Tasks) Manage Shared Value (S: Shared Value/Mission/IMPACT ANALYSIS) Financial Value or Profit Trade-‐off Cost (C$) Benefit (R$) Social Value or People Trade-‐off Cost Benefit Env. Value or Planet Trade-‐off Cost Benefit Global Business Model (GBM) Canvas for a Shared Value Road Project in a Developing Country Customer RelaVonships (CR) • Self-‐service/ Face-‐to-‐face • Media Channels (CH) • Physical (Road) Key AcVviVes (KA) (Pre)feasibility/ Financing/ Management/ Maintenance Key Resources (KA) • HR (Staff) • Firm Infra’ • Technology Value ProposiVon (VP) • Faster and safer travel • Regional economic growth and develop-‐ ment • New road Cost Structure (C$) Revenue Streams (R$) Social Costs (-‐) Social Benefits (+) Environmental Costs (-‐) Environmental Benefits (+) Customer Segments (CS) q Road Users: • Passenger-‐ car owners • Van-‐owners • Truck/Lorry-‐ owners • Cyclists • Pedestrians q Gov’ment Key Partners (KP) Local/Overseas • Consultants • Contractors • Sub-‐ contractors • Banks • Donors Land/Property owners Local Agencies q Past q Present (“As Is”) ü Future (Project Lifecycle: 20 yrs) Topics of the the Business Model Canvas are mainly from the book, Business Model Genera8on (www.businessmodelgeneraYon.com)
- 23. BUSINESS MODEL JOBS-‐TO-‐BE-‐DONE Design Shared Value (Supply Infrastructure: Internal System) “Back End” Deliver Shared Value (Demand Infrastructure: External) “Front End” Business Model Environ-‐ ment (BME) Industry Ecosys-‐ tem Market Ecosys-‐ tem Trends (PEST-‐ LIED) & Comple-‐ mentors Macro-‐ Econo-‐ mic Influen-‐ cers (Society/ Cluster Dev.) Learn About Business System (PROJECT/TOOL) Business Model Canvas (Extended Business) SEMPORCES Business Chain (Ecosystem) DESCRIPTIONS (Content: Outcomes/ AcYviYes/Tasks) Manage Shared Value (S: Shared Value/Mission/IMPACT ANALYSIS) Financial Value or Profit Trade-‐off Cost (C$) Benefit (R$) Social Value or People Trade-‐off Cost Benefit Env. Value or Planet Trade-‐off Cost Benefit Customer Segments (CS) q Road Users: • Passenger-‐ car owners • Van-‐owners • Truck/Lorry-‐ owners • Cyclists • Pedestrians q Gov’ment Customer RelaVonships (CR) • Self-‐service/ Face-‐to-‐face • Media Channels (CH) • Physical (Road) Key AcVviVes (KA) (Pre)feasibility/ Financing/ Management/ Maintenance Key Resources (KA) • HR (Staff) • Firm Infra’ • Technology Key Partners (KP) Local/Overseas • Consultants • Contractors • Sub-‐ contractors • Banks • Donors Land/Property owners Local Agencies Value ProposiVon (VP) • Faster and safer travel • Regional economic growth and develop-‐ ment • New road Cost Structure (C$): Tangibles • Materials including Property/Asset Purchase • Labor including ConsulYng Fees • Machinery/Equipment; Infrastructure FaciliYes • Repayment/Interest on Loan (Capital); Maintenance Revenue Streams (R$): Tangibles • Free/Toll-‐free; Road taxes • Time savings; ProducYvity gains • Generated income due to mulYplier effects; New jobs Social Costs (-‐) • Less expensive road maintenance • Lower inefficiency and waste • Displacement of local populaYon in path of new road • DisrupYon of tradiYonal life in community Social Benefits (+) • Faster travel/CommuYng • Safer travel: fewer accidents; fewer deaths • Greater connecYvity/trade Environmental Costs (-‐) • DestrucYon of flora and fauna • Greater consumpYon of (imported) fuel • Land scarificaYon Environmental Benefits (+) • Lesser consumpYon of non-‐ renewable energy Global Business Model (GBM) Canvas for a Shared Value-‐Road Project in a Developing Country q Past q Present (“As Is”) ü Future (Project Lifecycle: 20 yrs) Topics of the the Business Model Canvas are mainly from the book, Business Model Genera8on (www.businessmodelgeneraYon.com)
- 24. BUSINESS MODEL JOBS-‐TO-‐BE-‐DONE Design Shared Happiness (“Back Stage”) Deliver Shared Happiness (“Front Stage”) Business Model Environ-‐ ment (BME) Learn About Business System (PROJECT/TOOL) (“Superstructure”/“Stage”) Manage Shared Happiness (IMPACT ANALYSIS) (“Founda8on”) Global Business Model (GBM) Canvas for Shared Happiness Business Models and Projects Global Business Model (GBM) Theater: Simply ReDesign Business Models for the Triple BoCom Line of Profit, People, and Planet The expressions of “Front Stage” and “Back Stage” are used by Alexander Osterwalder in his analogy of the Business Model Canvas as “Theater”