AGRICULTURE	
  &	
  MINING	
  Industry	
   SERVICE	
  Industry	
  
INFRASTRUCTURE/PLATFORM	
  Management	
  
MANUFACTURING...
AGRICULTURE	
  &	
  MINING	
  Industry	
   SERVICE	
  Industry	
  
INFRASTRUCTURE/PLATFORM	
  Management	
  
MANUFACTURING...
AGRICULTURE	
  &	
  MINING	
  Industry	
   SERVICE	
  Industry	
  
INFRASTRUCTURE/PLATFORM	
  Management	
  
MANUFACTURING...
AGRICULTURE	
  &	
  MINING	
  Industry	
   SERVICE	
  Industry	
  
INFRASTRUCTURE/PLATFORM	
  Management	
  
MANUFACTURING...
AGRICULTURE	
  &	
  MINING	
  Industry	
   SERVICE	
  Industry	
  
INFRASTRUCTURE/PLATFORM	
  Management	
  
MANUFACTURING...
AGRICULTURE	
  &	
  MINING	
  Industry	
   SERVICE	
  Industry	
  
INFRASTRUCTURE/PLATFORM	
  Management	
  
MANUFACTURING...
Disrup1on	
  Spot	
  
Luxury	
  Spot	
  
Strategic	
  
Choice	
  
Sweet	
  Spot	
  
Profit	
  Model	
  
Blue	
  Ocean	
  
P...
Disrup1on	
  Spot	
  
Luxury	
  Spot	
  
Strategic	
  
Choice	
  
Sweet	
  Spot	
  
Profit	
  Model	
  
Blue	
  Ocean	
  
P...
 
#VPGen.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  h^p://businessmodels.ning.com	
  &	
  h^p://twi^er.com/...
 
#VPGen.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  h^p://businessmodels.ning.com	
  &	
  h^p://twi^er.com/...
 
#VPGen.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  h^p://businessmodels.ning.com	
  &	
  h^p://twi^er.com/...
 
#VPGen.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  h^p://businessmodels.ning.com	
  &	
  h^p://twi^er.com/...
 
#VPGen.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  h^p://businessmodels.ning.com	
  &	
  h^p://twi^er.com/...
 
#VPGen.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  h^p://businessmodels.ning.com	
  &	
  h^p://twi^er.com/...
 
#VPGen.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  h^p://businessmodels.ning.com	
  &	
  h^p://twi^er.com/...
 
#VPGen.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  h^p://businessmodels.ning.com	
  &	
  h^p://twi^er.com/...
Past	
  	
  
Profit	
  Model	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
Present	
  
Profit	
  Model	
  
	
  
	
  
	
  
	
  
	
  ...
Past	
  	
  
Profit	
  Model	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
Present	
  
Profit	
  Model	
  
	
  
	
  
	
  
	
  
	
  ...
Contact	
  
Dr.	
  Rod	
  Kuhn	
  King	
  
rodkuhnhking@gmail.com	
  
	
  
VDD	
  University	
  for	
  Profit	
  Model	
  D...
Upcoming SlideShare
Loading in …5
×

Profit Model Improvement and Innovation: How Businesses Really Make Money and Win Business Model Competitions in the Imitation Economy.

2,053 views

Published on

“Profit is the oxygen of a business.”

How would you classify your profit model? How would you improve or innovate on it?

If you are asking the above questions, you are thinking about Profit Model Innovation (PMI). The current focus is on business model innovation. However, for established businesses the Profit Model poses the greatest risk to the existence of the business.

This presentation presents an industry-based classification system for profit models. The Profit Model Classification System (PMCS) can be used to visually organize and classify profit models in the past, present, and future. The PMCS would save you considerable time and energy when formulating, testing, and managing prototypes of profit models.

Published in: Business
3 Comments
2 Likes
Statistics
Notes
  • @RodKing
    Rod, I concur. The area of each triangle may reflect the importance of the sector under study. Visually this shall be quite interesting as different structural arrangements shall emerge.
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • @hudali15: You hit the nail right on the head. Yes, the visualization for the Profit Model Classification System (PMCS) is the fractal of the Sierpinski Triangle. I chose a fractal representation to indicate the multilevel and recursive nature of profit models. At the moment, visualizations of profit and business models tend to be at a single level. This single level visualization limits the potential uses and applications of profit (business) models. Hopefully, the Sierpinski triangle of the Profit Model Classification System would encourage multilevel explorations as the Sierpinski trangle reflects fractal patterns that are inherent in profit (business) models.

    Also, the Profit Model Classification System can be interpreted as a timeline on the evolution of industry in what is now an 'Imitation Economy.' In a developed or matured economy, the dominance of industry has moved from Agriculture & Mining through Manufacturing to Services. Theoretically and like in a Tree Map visualization, the size of each triangle can be modified to reflect its share in an economy. It's true that in a developed economy, the industries of Agriculture & Mining together with Manufacturing have diminished in importance. The Service industry is most dominant in a matured economy but not so in the economy of most developing countries. There are some people who think that the Experience industry will eventually displace the Service industry in terms of dominance. This is a stimulating discussion. And I thoroughly appreciate your bringing up of these issues.
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • Rod, What I like about your model is is that it looks like the Sierpinski Triangle. This is a fractal shape immediately suggesting that you are having a repeating unit at all scales. I was involved in a discussion with a LinkedIn group whether industry has turned to services. I am still believe that industry is industry, even though after sales services are growing in importance. How would this reflect on the Triangle? Rod, your work keeps evoking questions in my mind.
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
No Downloads
Views
Total views
2,053
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
59
Comments
3
Likes
2
Embeds 0
No embeds

No notes for slide

Profit Model Improvement and Innovation: How Businesses Really Make Money and Win Business Model Competitions in the Imitation Economy.

  1. 1. AGRICULTURE  &  MINING  Industry   SERVICE  Industry   INFRASTRUCTURE/PLATFORM  Management   MANUFACTURING  Industry          Nespresso’s  PROFIT  MODEL  CLASSIFICATION  SYSTEM  (PMCS)          How  Businesses  Really  Make  Money  and  Win  Business  Model  Compe66ons  in  the  Imita6on  Economy     #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hGp://businessmodels.ning.com  &  hGp://twiGer.com/RodKuhnKing   GENERIC  PROFIT  MODEL         q  Luxury  Spot                (Differen1a1on)   q Ecosystem  Management   What  industry  is  the  business  (or  customer)  in?  
  2. 2. AGRICULTURE  &  MINING  Industry   SERVICE  Industry   INFRASTRUCTURE/PLATFORM  Management   MANUFACTURING  Industry          PROFIT  MODEL  CLASSIFICATION  SYSTEM  (PMCS)    -­‐  By  Industry  (Categories  of  Products/Services)            How  Businesses  Really  Make  Money  and  Win  Business  Model  Compe66ons  in  the  Imita6on  Economy     #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hGp://businessmodels.ning.com  &  hGp://twiGer.com/RodKuhnKing   GENERIC  POFIT  MODELS         What  industry  is  the  business  (or  customer)  in?  
  3. 3. AGRICULTURE  &  MINING  Industry   SERVICE  Industry   INFRASTRUCTURE/PLATFORM  Management   MANUFACTURING  Industry          PROFIT  MODEL  CLASSIFICATION  SYSTEM  (PMCS)    -­‐  By  Sector  of  Industry  (Categories  of  Products/Services)      How  Businesses  Really  Make  Money  and  Win  Business  Model  Compe66ons  in  the  Imita6on  Economy     #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hGp://businessmodels.ning.com  &  hGp://twiGer.com/RodKuhnKing   GENERIC  PROFIT  MODELS         q Healthcare,  Life  Sciences,  and  Pharmaceu?cals   q Chemicals  Manufacturing   q Autos,  Trucks,  Trains,          Ships,  and  Other  Vehicles   q Consumer  Products  Manufacturing   q Aerospace  &          Defense   q Food,  Beverage,  and  Tobacco  Manufacturing   q Mining,  Metals,  Energy,  U?li?es,  and          Environmental  Services   q Agriculture,  Forestry,  Fishing,          and  Hun?ng   q Insurance     q Food  Services  &  Lodging   q Construc?on  &  Eng.   q Healthcare   q Banking,  Fin.          Markets  &  Services   q Consumer,  Educa?on,  Real          Estate  and  Public  Services   q IT   Services   q Business  &  Consul?ng  Services   q Retail   q Media  &  Entertainment     Note:  The  above  descrip6on  of  sectors  is  based  on  the  IBBCS;  see  hGp://www.industrybuildingblocks.com/Industry-­‐Groups.php       q Travel   What  industry  is  the  business  (or  customer)  in?   Who  is  the  customer-­‐protagonist  (most  dissa?sfied)?   What  is  the  customer  Job-­‐To-­‐Get-­‐Done?   What  is  the  profit  model  of  the  business  (customer)?   What  are  analogs  and  an?logs  of  the  profit  model?  
  4. 4. AGRICULTURE  &  MINING  Industry   SERVICE  Industry   INFRASTRUCTURE/PLATFORM  Management   MANUFACTURING  Industry     #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hGp://businessmodels.ning.com  &  hGp://twiGer.com/RodKuhnKing   GENERIC  PROFIT  MODELS         q Consumer  Products  Manufacturing   q Food,  Beverage,  and  Tobacco  Manufacturing   q Food  Services  &  Lodging   q Retail     Note:  The  above  descrip6on  of  sectors  is  based  on  the  IBBCS;  see  hGp://www.industrybuildingblocks.com/Industry-­‐Groups.php       What  industry  is  the  business  (or  customer)  in?   Who  is  the  customer-­‐protagonist  (most  dissa?sfied)?   What  is  the  customer  Job-­‐To-­‐Get-­‐Done?   What  is  the  profit  model  of  the  business  (customer)?   What  are  analogs  and  an?logs  of  the  profit  model?                    Nespresso’s  PROFIT  MODEL  CLASSIFICATION  SYSTEM  (PMCS)  -­‐  By  Sector  of  Industry                          How  Businesses  Really  Make  Money  and  Win  Business  Model  Compe66ons  in  the  Imita6on  Economy  
  5. 5. AGRICULTURE  &  MINING  Industry   SERVICE  Industry   INFRASTRUCTURE/PLATFORM  Management   MANUFACTURING  Industry          PROFIT  MODEL  CLASSIFICATION  SYSTEM  (PMCS)    -­‐  By  Profit  Strategies/Tac6cs/PaGerns                How  Businesses  Really  Make  Money  and  Win  Business  Model  Compe66ons  in  the  Imita6on  Economy     #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hGp://businessmodels.ning.com  &  hGp://twiGer.com/RodKuhnKing   q Asset  Sale   q Long  Tail   q Open  Source  Collabora?on   q Dona?on   q SoTware  as  a  Service   q Two-­‐sided  Market   q Asset  Sale   q Razor  Blade  (Bait  &  Switch)   q Subscrip?on  Fee     q Crowdsourcing   q Lending/Ren?ng/Leasing   q Licensing   q Licensing   q Brokerage   q Usage  Fee   q Asset  Sale   q Adver?sing   q Co-­‐crea?on   q Usage  Fee   q Mul?-­‐sided  Market  PlaXorm   q Ad  Network   q Outsourcing   q Ecosystem  Management   q Direct  Sale   q Indirect  Sale   q Offline   q Online   q Discount   q Tiered  Payment   q Auc?on   q Facilitated  Network   q Brand  Mul?plier   q Reverse  Auc?on   q Customiza?on   q Cross-­‐subsidiza?on  q Franchise   q Product  Leadership   q Automa?on  (Self-­‐service)   q Gamifica?on   q B2C   q B2B   q Pre-­‐Payment   q Fair            Pricing   q Community  (Hub)   q On  Demand   q DIY   q Unbundling   q Unbundling   q Bundling   q Free   GENERIC  PROFIT  MODELS         q P2P  PlaXorm   q Landlord   q Leasing   q 2nd  Hand   q  Luxury  Spot                (Differen1a1on)   q  Disrup1on  Spot                  (Low  Cost;  Lean)   q  Blue  Ocean                  (Value  Innova1on)   q Creator   q Distributor   q Broker   q  Sweet  Spot   q Product  Extension   q Opera?onal  Excellence   q Frac?onaliza?on   q Customer  In?macy   q Affiliates   What  industry  is  the  business  (or  customer)  in?   Who  is  the  customer-­‐protagonist  (most  dissa?sfied)?   What  is  the  customer  Job-­‐To-­‐Get-­‐Done?   What  is  the  profit  model  of  the  business  (customer)?   What  are  analogs  and  an?logs  of  the  profit  model?   q Shared  Value  
  6. 6. AGRICULTURE  &  MINING  Industry   SERVICE  Industry   INFRASTRUCTURE/PLATFORM  Management   MANUFACTURING  Industry     #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hGp://businessmodels.ning.com  &  hGp://twiGer.com/RodKuhnKing   q Asset  Sale   q Asset  Sale   q Outsourcing   q Ecosystem  Management   q Direct  Sale   q Offline   q Online   q Product  Leadership   q Automa?on  (Self-­‐service)   q Pre-­‐Payment   q Community  (Hub)   GENERIC  PROFIT  MODEL         q Shared  Value   q Product  Extension   q Customer  In?macy   What  industry  is  the  business  (or  customer)  in?   Who  is  the  customer-­‐protagonist  (most  dissa?sfied)?   What  is  the  customer  Job-­‐To-­‐Get-­‐Done?   What  is  the  profit  model  of  the  business  (customer)?   What  are  analogs  and  an?logs  of  the  profit  model?   q  Luxury  Spot                (Differen1a1on)   q Brand  Mul?plier          Nespresso’s  PROFIT  MODEL  CLASSIFICATION  SYSTEM  (PMCS)    -­‐  Profit  Strategies/Tac6cs/PaGerns                                How  Businesses  Really  Make  Money  and  Win  Business  Model  Compe66ons  in  the  Imita6on  Economy   q Bundling  
  7. 7. Disrup1on  Spot   Luxury  Spot   Strategic   Choice   Sweet  Spot   Profit  Model   Blue  Ocean   Profit  Model   Luxury  Spot   (“Differen?a?on”)   Profit  Model   DisrupLon  Spot/Lean   (“Low  Cost”)   Profit  Model   ILLUSTRATION  OF  THE  4  GENERIC  PROFIT  MODELS   Trade-­‐off  Map  of  Cost  vs.  Revenue     (-­‐):  PAIN:  Cost   (+):  DELIGHT:   Revenue   Key   Profitable  Model     Unprofitable  Model   “Insane”  Happiness  (Value)   Ideal  Final  Result  (IFR)   Infinite  Shared  Happiness       #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hGp://businessmodels.ning.com  &  hGp://twiGer.com/RodKuhnKing   Market  Segment  (Job-­‐To-­‐Get-­‐Done/Goal;  Product/Tool):  ………………..…..……..……. …………  ……………………………………………………………………….…………….………….……………….  
  8. 8. Disrup1on  Spot   Luxury  Spot   Strategic   Choice   Sweet  Spot   Profit  Model   Blue  Ocean   Profit  Model   Luxury  Spot   (“Differen?a?on”)   Profit  Model   DisrupLon  Spot/Lean   (“Low  Cost”)   Profit  Model   GENERIC  PROFIT  MODEL  of  Nespresso   Trade-­‐off  Map  of  Cost  vs.  Revenue     (-­‐):  PAIN:  Cost   (+):  DELIGHT:   Revenue   “Insane”  Happiness  (Value)   Ideal  Final  Result  (IFR)   Infinite  Shared  Happiness       #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hGp://businessmodels.ning.com  &  hGp://twiGer.com/RodKuhnKing   Market  Segment  (Job-­‐To-­‐Get-­‐Done/Goal;  Product/Tool):  Drink  coffee     Key   Profitable  Model     Unprofitable  Model  
  9. 9.   #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  h^p://businessmodels.ning.com  &  h^p://twi^er.com/RodKuhnKing   VALUE  CREATION   MODEL   VALUE  PROPOSITION   MODEL   PROFIT   MODEL   ENVIRONMENT    PROFIT  MODEL  STORYTREE                                        For  Nespresso   Generic  Profit  Model   Management:   Visualize  the  Abrac?veness  of  Your  Profit  Model    
  10. 10.   #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  h^p://businessmodels.ning.com  &  h^p://twi^er.com/RodKuhnKing   VALUE  CREATION   MODEL   VALUE  PROPOSITION   MODEL   PROFIT   MODEL    PROFIT  MODEL  STORYTREE                                        For  Nespresso   Industry  Ecosystem  (IE):  Supply   Market  Ecosystem  (ME):  Demand   Key  Trends  &  Complementors  (KTC):  PESTLIED  (-­‐/+)   Macro-­‐Economic  Influencers  (MEI):  Global  Economy   Generic  Profit  Model   Management:   Visualize  the  Abrac?veness  of  Your  Profit  Model    
  11. 11.   #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  h^p://businessmodels.ning.com  &  h^p://twi^er.com/RodKuhnKing   VALUE  CREATION   MODEL   VALUE  PROPOSITION   MODEL   PROFIT   MODEL   Generic  Profit  Model   Management:   Visualize  the  Abrac?veness  of  Your  Profit  Model      PROFIT  MODEL  STORYTREE                                        For  Nespresso   Bargaining  Power  of  Suppliers   Bargaining  Power  of  Customers   Threat  of  New  Entrants   Threat  of  SubsLtute  Products  
  12. 12.   #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  h^p://businessmodels.ning.com  &  h^p://twi^er.com/RodKuhnKing   VALUE  CREATION   MODEL   VALUE  PROPOSITION   MODEL   Inputs/Partners   q Coffee  Machine  Manufactur-­‐ er   q Coffee   q Coffee  Growers     Internal  Resources   q Employees   q Patents/IP   q Brand   q Plant  (for  Producing  Pods)     Processes/AcLviLes   q Produc6on   q Marke6ng/Branding   q Distribu6on/Logis6cs       Product/Value  ProposiLon   q Nespresso  Coffee  Machine   q Nespresso  Pods   q Best  Quality  Coffee              at  Home/in  Office   Channels  &  RelaLonships   q Retail  (Machines  Only)   q Nespresso.com   q Nespresso  Bou6ques   q Mail  Order;  Call  Center   q Nespresso  Club   Customer/Job-­‐To-­‐Get-­‐Done   q Luxury  Spobers  (High  Enders)   Who  Are  Struggling  to  Find  High   Quality  Coffee  at  Home/Office   q Drink  High  Quality  Coffee            at  Home/in  Office   Cost:  (Structure/Metrics)   High  Cost   q Supplies/Inputs   q Employees/IP   q Machinery/Produc6on   q Marke6ng/Distribu6on   Revenue:  (Streams/Metrics)   High  Revenue   q Sale  of  Coffee  Machine   q Sale  of  Pods/Capsules   q Sale  of  Other  Machine   Accessories   PROFIT   q High  Profit  Margin          PROFIT  MODEL  STORYTREE                                        For  Nespresso   PROFIT   MODEL   Strategic  Profit  Model   Management:   Visualize  Your  Profit  Model    
  13. 13.   #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  h^p://businessmodels.ning.com  &  h^p://twi^er.com/RodKuhnKing   VALUE  CREATION   MODEL   VALUE  PROPOSITION   MODEL   Inputs/Partners           Internal  Resources           Processes/AcLviLes           Product/Value  ProposiLon           Channels  &  RelaLonships           Customer/Job-­‐To-­‐Get-­‐Done           Cost:  (Structure/Metrics)           Revenue:  (Streams/Metrics)           PROFIT           PROFIT  MODEL  STORYTREE   …………………………………………………..   PROFIT   MODEL   Strategic  Profit  Model   Management:   Visualize  Your  Profit  Model    
  14. 14.   #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  h^p://businessmodels.ning.com  &  h^p://twi^er.com/RodKuhnKing   VALUE  CREATION   MODEL   VALUE  PROPOSITION   MODEL   Inputs/Partners   q What  material,  informa?on,   and  capital  are  needed  prior   to  launching  product?   q What  partners/alliances  are   needed?     Internal  Resources   q Who  are  team  members?   q What  hard  assets  (equip-­‐ ment/infra’)  will  are  needed   prior  to  launching  product?   q What  technology  is  needed?     Processes/AcLviLes   q What  are  development   ac6vi6es  that  must  be   completed  prior  to  launching   product/service/tool?     Product/Value  ProposiLon   q What  product/service/tool  will   customer  use  and/or  buy?   q Why  will  customer  buy  product/ service/tool?       Channels  &  RelaLonships   q How  will  product/service/tool   be  delivered  to  customer?   q What  sort  of  rela6onship  will   business  have  with  customer?   q How  will  customer  be  engaged,   acquired,  and  retained?   Customer/Job-­‐To-­‐Get-­‐Done   q What  customer  will  use  and/or   buy  product/service/tool?   q What  job  is  customer  trying  to   get  done?  What  are  obstacles?   q What  is  customer  pain?   q What  is  customer  delight?       Cost:  (Structure/Metrics)   q At  what  price  will  customer   buy  product/service/tool?   q What  effort  will  customer   expend  in  buying  product?   q What  is  customer  acqu.  cost?   q What  is  annual  total  cost?   Revenue:  (Streams/Metrics)   q How  soon  will  customer  buy?   q How  many  and  oTen  will   customer  buy?     q How  will  customer  pay?   q What  will  be  annual  total   revenue?   PROFIT   q What  will  be  the  annual   profit  margin?   q What  will  be  the  annual   profit?       PROFIT  MODEL  STORYTREE   …………………………………………………..   PROFIT   MODEL   Strategic  Profit  Model   Management:  Ques?ons   Note:  The  above  ques6ons  are  based  on  John  Mullins  and  Randy  Komisar’s  book,  “Gefng  to  Plan  B”  
  15. 15.   #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  h^p://businessmodels.ning.com  &  h^p://twi^er.com/RodKuhnKing   VALUE  CREATION  MODEL   (“Build”)   VALUE  PROPOSITION  MODEL   (“Discover”;  “Plan”)   Inputs/Partners   q Materials/Supplies   q Informa6on   q Investment  Capital   q Strategic  Alliances/Partners   q Co-­‐creators/Contractors     Internal  Resources   (Physical/Intellectual/Emo?onal/ Spiritual  Resources)   q Employees   q Machinery/Infra’  Facili6es   q Technology/IP   q Brand/Culture   Processes/AcLviLes   q Discover   q Plan   q Build   q Measure   q Learn   Product/Value  ProposiLon   q Value  Proposi6on  Requirements   q Value  Proposi6on  Statement   q Product/Service/Tool:  Features       Channels  &  RelaLonships   q Online  Channels   q Offline  Channels         Customer/Job-­‐To-­‐Get-­‐Done   q Customer-­‐Protagonist   q Cri6cal  Problem   q Task/Job-­‐To-­‐Get-­‐Done   q Constraints/Obstacles   q Success  Criteria  (Outcomes)     Cost:  (Structure/Metrics)   q Cost  of  Customer  Acquisi6on   q Total  Cost   q Opera?ng  Cost   q Working  Capital       Revenue:  (Streams/Metrics)   q E:  Engagement   q A:  Acquisi6on   q A:  Ac6va6on   q R:  Reten6on   q R:  Referral   q R:  Revenue   Value:  Profit   q High  Profit  Margin  (Price):   Low  Volume;  Low  Velocity   q Low  Profit  Margin  (Price):   High  Volume;  High  Velocity   q Gross  Margin   q Customer  Life6me  Value   PROFIT  MODEL   (“Measure”)   Profit  Model   Management  (Checklist)     PROFIT  MODEL  STORYTREE   (“Learn”)  
  16. 16.   #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  h^p://businessmodels.ning.com  &  h^p://twi^er.com/RodKuhnKing   VALUE  CREATION   MODEL   VALUE  PROPOSITION   MODEL   PROFIT   MODEL   ENVIRONMENT   PROFIT  MODEL  STORYTREE   …………………………………………………..   Generic  Profit  Model   Management:   Visualize  the  Abrac?veness  of  Your  Profit  Model    
  17. 17. Past     Profit  Model                 Present   Profit  Model               Future   Profit  Model                 Profit  Model  (PM)  PLAN     Profit  Model  Design  Toolkit  for  Thriving  in  a  Vola?le,  Uncertain,  Complex,  and  Ambiguous  (VUCA)  Environment   Profit   Model   (StoryTree)   Profit   Model   (StoryTree)   Profit   Model   (StoryTree)   Industry   Ecosystem   Market   Ecosystem   Profit  Model   (StoryTree)   Macro-­‐Economic  Influencers   Key  Trends  &  Complementors   Mission/Vision/ Purpose/Ideals/   Ideal  Final  Result   For   Profit   Model     #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  h^p://businessmodels.ning.com  &  h^p://twi^er.com/RodKuhnKing  
  18. 18. Past     Profit  Model                 Present   Profit  Model               Future   Profit  Model                 Nespresso’s  Profit  Model  (PM)  PLAN     Profit  Model  Design  Toolkit  for  Thriving  in  a  Vola?le,  Uncertain,  Complex,  and  Ambiguous  (VUCA)  Environment   Profit   Model   (StoryTree)   Profit   Model   (StoryTree)   Profit   Model   (StoryTree)   Industry   Ecosystem   Market   Ecosystem   Profit  Model   (StoryTree)   Macro-­‐Economic  Influencers   Key  Trends  &  Complementors   Mission/Vision/ Purpose/Ideals/   Ideal  Final  Result:   “A  Passion  for     Quality,  Innova1on   and  Privileged   Rela1onships     With  Cus-­‐   tomers”     #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  h^p://businessmodels.ning.com  &  h^p://twi^er.com/RodKuhnKing  
  19. 19. Contact   Dr.  Rod  Kuhn  King   rodkuhnhking@gmail.com     VDD  University  for  Profit  Model  Design  &   Management   hGp://businessmodels.ning.com   hGp://twiGer.com/RodKuhnKing     “No  Entrepreneur  LeT  Behind  (NELB)”   #VPGen.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hGp://businessmodels.ning.com  &  hGp://twiGer.com/RodKuhnKing  

×