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ITENNE: ENVIRONMENT P: PROCESSES
S: SUPPLIERS/MATERIALS
R: RETAILERS/DISTRIBUTORS/
CHANNELS
O: OUTPUTS (PRODUCT/
SERVICE)
E: EMPLOYEES/KNOWLEDGE
ASSETS/CULTURE
GLOBAL VALUE CHAIN:
OUTCOMES/GOALS
 Customer Value Proposition (Job)
 Business Value = Revenue/Cost
 Customer Value (Experience) =
Customer Delight/Customer Pain
M: MACHINERY/EQUIPMENT/
FACILITY/LOCATION
C: CUSTOMERS/CONSUMERS &
RELATIONSHIPS
GLOBAL VALUE CHAIN MAP: Template for a Business System
Zoomable Elements of a Value Chain or Business Model: “SEMPORCE”
GURUS
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
ITENNE: ENVIRONMENT/INVESTOR
 Revenue (Sales)
 Cash Burn Rate
 Month of Cash Left
 Time to Cash Flow-Breakeven
 Contribution Margin
P: PROCESSES
 Cycle Time for Pivots/Prototyping/
Versioning/Product Releases
 Average Time to First Order
 Average Time to Follow-on Order
 Customer Feedback/Voice
S: SUPPLIERS/MATERIALS
R: RETAILERS/DISTRIBUTORS/
CHANNELS
 Advertising Expenses
 Viral Coefficient
O: OUTPUTS (PRODUCT/
SERVICE)
 No. of Minimum Viable Products
 No. of Prototypes/Releases
 Average Size Order
 Average Selling Price per Order
 Web Page/Site: Total Visits;
Total Page Views
E: EMPLOYEES/KNOWLEDGE
ASSETS/CULTURE
 Agile/Lean (‘Small’) Teams
 Lessons Learned/Insights
 No. of Experiments/Interviews
 Effectiveness/Proficiency of
Sale Person
 Revenue per Sale Person
GLOBAL VALUE CHAIN
DASHBOARD
OUTCOMES/GOALS:
 Customer Value Proposition
 Business Value = Revenue/Cost
 Customer Value (Experience) =
Customer Delight/Customer Pain
M: MACHINERY/EQUIPMENT/
FACILITY/LOCATION
C: CUSTOMERS/CONSUMERS &
RELATIONSHIPS
 No. of Prospects/Registrations
 No. of Customers/Referrals
 Cost per Acquisition (Paid/Net)
 Customer Lifetime Value
 Customer Loyalty/Retention:
Net Promoter Score (NPS)
GLOBAL VALUE CHAIN DASHBOARD: Example (Startup)
GURUS
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
ITENNE: ENVIRONMENT/INVESTOR
ATTRACTIVENESS
NEW ENTRANTS – Entry Barriers/Moves
 Segments; scale; Brand identity;
Capital; Switching cost; Distr.; Gov Policy
COMPETITORS – Exit Barriers/Moves
 Segments; Growth; Fixed costs, etc.
P: PROCESSES ATTRACTIVENESS
• Strategic/Branding/HR Management
• Operational/Technology Management
• Procurement/Marketing-Sales/Finance
• Design/Inbound & Outbound Logistics
• Core Competencies/Co-creation
S: SUPPLIERS/MATERIALS
ATTRACTIVENESS
 Segments: Trade-offs; Switching cost
 Volume; Differentiation of inputs
 Presence of substitute inputs
 Threat of forward/backward linkages
 Cost relative to purchase in industry
R: RETAILERS/DISTRIBUTORS/
CHANNELS ATTRACTIVENESS
O: OUTPUTS (PRODUCT/
SERVICE) ATTRACTIVENESS
 Segments: Trade-offs; Switching costs
 Function; Relative price perf. of
substitute product/service; Margins
 Propensity for substitute product/
service; Experience factors; Scalability
E: EMPLOYEES/KNOWLEDGE
ASSETS/CULTURE ATTRACTIVENESS
GLOBAL VALUE CHAIN
ATTRACTIVENESS:
OUTCOMES/GOALS
 Customer Value Proposition (Job)
 Business Value = Revenue/Cost
 Customer Value (Experience) =
Customer Delight/Customer Pain
M: MACHINERY/EQUIPMENT/
FACILITY ATTRACTIVENESS
C: CUSTOMERS/CONSUMERS &
RELATIONSHIPS ATTRACTIVENESS
 Segments: Trade-offs; Switching costs
 Volume; Input; Incentives; Linkages
 Substitute products; Prod. differences
 Information; Quality/Perf./Access
 Price sensitivity; Price/Total Purchase
GURUS
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
GLOBAL VALUE CHAIN ATTRACTIVENESS
Competitive Advantage Factors at Level of Enterprise, Sector, and Industry
HYPOTHESES PROBLEMS/
PAIN
(WEAKNESS-
ES/THREATS)
GOALS/Objectives/
Strategies/Tactics/
Initiatives/
Projects
Key Metrics/
Performance
Indicators/
Targets
Business Experiences (Impacts)
Description of BUSINESS/
GLOBAL VALUE CHAIN
Delight
(Revenue)
Pain
(Cost)
S: Suppliers
E: Employees/
Knowledge Assets
M: Machinery/
Infrastructure
P: Processes
O: Outputs
(Product/Service)
R: Retailers/
Distributors/
Channels
C: Consumers/
Customers
E: Environment
VALUE CHAIN
(“SEMPORCE”)
BUSINESS
ECOSYSTEM
Customer Value Proposition (Job To Be Done): BUSINESS VALUE
(PROFIT MARGIN)
GURUS
Mission/Vision: …………………….…………………………………………………. Market Segment (Customer Problem/Goal): ……………………….….…
BUSINESS MODEL PLAN: Template
Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models
Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing

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GLOBAL VALUE CHAIN MAP: A Template for Mapping Value Chains, Business Models, and Business Performances

  • 1. ITENNE: ENVIRONMENT P: PROCESSES S: SUPPLIERS/MATERIALS R: RETAILERS/DISTRIBUTORS/ CHANNELS O: OUTPUTS (PRODUCT/ SERVICE) E: EMPLOYEES/KNOWLEDGE ASSETS/CULTURE GLOBAL VALUE CHAIN: OUTCOMES/GOALS  Customer Value Proposition (Job)  Business Value = Revenue/Cost  Customer Value (Experience) = Customer Delight/Customer Pain M: MACHINERY/EQUIPMENT/ FACILITY/LOCATION C: CUSTOMERS/CONSUMERS & RELATIONSHIPS GLOBAL VALUE CHAIN MAP: Template for a Business System Zoomable Elements of a Value Chain or Business Model: “SEMPORCE” GURUS Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
  • 2. ITENNE: ENVIRONMENT/INVESTOR  Revenue (Sales)  Cash Burn Rate  Month of Cash Left  Time to Cash Flow-Breakeven  Contribution Margin P: PROCESSES  Cycle Time for Pivots/Prototyping/ Versioning/Product Releases  Average Time to First Order  Average Time to Follow-on Order  Customer Feedback/Voice S: SUPPLIERS/MATERIALS R: RETAILERS/DISTRIBUTORS/ CHANNELS  Advertising Expenses  Viral Coefficient O: OUTPUTS (PRODUCT/ SERVICE)  No. of Minimum Viable Products  No. of Prototypes/Releases  Average Size Order  Average Selling Price per Order  Web Page/Site: Total Visits; Total Page Views E: EMPLOYEES/KNOWLEDGE ASSETS/CULTURE  Agile/Lean (‘Small’) Teams  Lessons Learned/Insights  No. of Experiments/Interviews  Effectiveness/Proficiency of Sale Person  Revenue per Sale Person GLOBAL VALUE CHAIN DASHBOARD OUTCOMES/GOALS:  Customer Value Proposition  Business Value = Revenue/Cost  Customer Value (Experience) = Customer Delight/Customer Pain M: MACHINERY/EQUIPMENT/ FACILITY/LOCATION C: CUSTOMERS/CONSUMERS & RELATIONSHIPS  No. of Prospects/Registrations  No. of Customers/Referrals  Cost per Acquisition (Paid/Net)  Customer Lifetime Value  Customer Loyalty/Retention: Net Promoter Score (NPS) GLOBAL VALUE CHAIN DASHBOARD: Example (Startup) GURUS Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
  • 3. ITENNE: ENVIRONMENT/INVESTOR ATTRACTIVENESS NEW ENTRANTS – Entry Barriers/Moves  Segments; scale; Brand identity; Capital; Switching cost; Distr.; Gov Policy COMPETITORS – Exit Barriers/Moves  Segments; Growth; Fixed costs, etc. P: PROCESSES ATTRACTIVENESS • Strategic/Branding/HR Management • Operational/Technology Management • Procurement/Marketing-Sales/Finance • Design/Inbound & Outbound Logistics • Core Competencies/Co-creation S: SUPPLIERS/MATERIALS ATTRACTIVENESS  Segments: Trade-offs; Switching cost  Volume; Differentiation of inputs  Presence of substitute inputs  Threat of forward/backward linkages  Cost relative to purchase in industry R: RETAILERS/DISTRIBUTORS/ CHANNELS ATTRACTIVENESS O: OUTPUTS (PRODUCT/ SERVICE) ATTRACTIVENESS  Segments: Trade-offs; Switching costs  Function; Relative price perf. of substitute product/service; Margins  Propensity for substitute product/ service; Experience factors; Scalability E: EMPLOYEES/KNOWLEDGE ASSETS/CULTURE ATTRACTIVENESS GLOBAL VALUE CHAIN ATTRACTIVENESS: OUTCOMES/GOALS  Customer Value Proposition (Job)  Business Value = Revenue/Cost  Customer Value (Experience) = Customer Delight/Customer Pain M: MACHINERY/EQUIPMENT/ FACILITY ATTRACTIVENESS C: CUSTOMERS/CONSUMERS & RELATIONSHIPS ATTRACTIVENESS  Segments: Trade-offs; Switching costs  Volume; Input; Incentives; Linkages  Substitute products; Prod. differences  Information; Quality/Perf./Access  Price sensitivity; Price/Total Purchase GURUS Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing GLOBAL VALUE CHAIN ATTRACTIVENESS Competitive Advantage Factors at Level of Enterprise, Sector, and Industry
  • 4. HYPOTHESES PROBLEMS/ PAIN (WEAKNESS- ES/THREATS) GOALS/Objectives/ Strategies/Tactics/ Initiatives/ Projects Key Metrics/ Performance Indicators/ Targets Business Experiences (Impacts) Description of BUSINESS/ GLOBAL VALUE CHAIN Delight (Revenue) Pain (Cost) S: Suppliers E: Employees/ Knowledge Assets M: Machinery/ Infrastructure P: Processes O: Outputs (Product/Service) R: Retailers/ Distributors/ Channels C: Consumers/ Customers E: Environment VALUE CHAIN (“SEMPORCE”) BUSINESS ECOSYSTEM Customer Value Proposition (Job To Be Done): BUSINESS VALUE (PROFIT MARGIN) GURUS Mission/Vision: …………………….…………………………………………………. Market Segment (Customer Problem/Goal): ……………………….….… BUSINESS MODEL PLAN: Template Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing

Editor's Notes

  1. BIBLIOGRAPHY Blank, S.G. (2007) The Four Steps to the Epiphany. USA. http://steveblank.com/2010/02/22/no-accounting-for-startups/
  2. BIBLIOGRAPHY Barnes, D. (Ed.) (2001) Understanding Business. London: Routledge. Brache, A.P. (2002) How Organizations Work. New York: John Wiley & Sons Hamel, G.; Prahalad, C.K. (1996). Competing for the Future. Boston: Harvard Business School (HBS) Press. Merrifeld, R. (2009) Re-think. New Jersey: Pearson Education, Inc. Poirier, C.C. (20030 Using Models to Improve the Supply Chain. Florida: St. Lucie Press Porter, M.E. (1998) Competitive Advantage. New York: The Free Press. Porter, M.E. (1998) Competitive Strategy. New York: The Free Press. Porter, M.E. (2008) On Competition. Boston: Harvard Business School (HBS) Press. Rummler, G.; Brache, A. (1995) Improving Performance. San Francisco: Jossey-Bass.
  3. BIBLIOGRAPHY Christensen, C. (2003) The Innovator’s Dilemma. Boston: Harvard Business School (HBS) Press. Christensen, C. (2003) The Innovator’s Solution. Boston: Harvard Business School (HBS) Press. Iansiti, M.; Levien, R. (2004) The Keystone Advantage. Boston: Harvard Business School (HBS) Press. Kaplan, R.S.; Norton, D.P. (1998) The Balanced Scorecard. Boston: Harvard Business School (HBS) Press. Kaplan, R.S.; Norton, D.P. (2004) Strategy Maps. Boston: Harvard Business School (HBS) Press. Kaplan, R.S.; Norton, D.P. (2008) The Execution Premium. Boston: Harvard Business School (HBS) Press. Porter, M.E. (1998) Competitive Advantage. New York: The Free Press. Porter, M.E. (1998) Competitive Strategy. New York: The Free Press. Porter, M.E. (2008) On Competition. Boston: Harvard Business School (HBS) Press. Wikipedia. Pleasure Principle. http://en.wikipedia.org/wiki/Pleasure_principle_(psychology) Wikipedia. TRIZ. http://en.wikipedia.org/wiki/TRIZ