A	
  Business	
  Model	
  Canvas-­‐Killer	
  

Rapidly	
  Visualize,	
  Prototype,	
  and	
  Test	
  the	
  3	
  Engines	
...
“Good”	
  vs	
  “Great”	
  Business	
  Model	
  Canvas	
  
REQUIREMENTS	
  
(TASKS/FUNCTIONS)	
  FOR	
  
BUSINESS	
  MODEL...
The	
  Business	
  Model	
  Canvas	
  
From	
  “Good”	
  to	
  “Great”	
  
“Good”	
  Business	
  Model	
  Canvas	
  
[A	
  New	
  Look	
  at	
  the	
  Tradi1onal	
  Business	
  Model	
  Canvas]	
  ...
TradiWonal	
  Business	
  Model	
  Canvas	
  

Source:	
  h@p://en.wikipedia.org/wiki/Business_Model_Canvas	
  	
  
Jigsaw-­‐Business	
  Model	
  Canvas	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  

	
  

	
  
	
  
	
  
	
  
	
  
	
  
	
  

	
 ...
Jigsaw-­‐Business	
  Model	
  Canvas	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  

	
  

	
  
	
  
	
  
	
  
	
  
	
  
	
  

	
 ...
9	
  Blank	
  Jigsaw	
  Cards	
  (Several	
  Types	
  of	
  Shapes)	
  
Rapidly	
  Visualize,	
  Prototype,	
  and	
  Test...
Topic	
  Jigsaw	
  Cards	
  for	
  the	
  Business	
  Model	
  Canvas	
  
Rapidly	
  Visualize,	
  Prototype,	
  and	
  Te...
Jigsaw	
  Board	
  for	
  Business	
  Model	
  Canvas	
  

Rapidly	
  Visualize,	
  Prototype,	
  and	
  Test	
  the	
  3	...
Jigsaw-­‐Business	
  Model	
  Canvas:	
  9	
  Cards	
  

Rapidly	
  Visualize,	
  Prototype,	
  and	
  Test	
  the	
  3	
 ...
Jigsaw-­‐Business	
  Model	
  Canvas:	
  4	
  Panels	
  

Rapidly	
  Visualize,	
  Prototype,	
  and	
  Test	
  the	
  3	
...
TradiWonal	
  Business	
  Model	
  Canvas:	
  Monolithic	
  Gameboard	
  (Form)	
  
Rapidly	
  Visualize,	
  Prototype,	
 ...
Example	
  
Business	
  Model	
  Canvas	
  for	
  Apple	
  (iPod)	
  

Rapidly	
  Visualize,	
  Prototype,	
  and	
  Test	
  the	
  3	...
How	
  to	
  Use	
  The	
  Tradi?onal	
  Business	
  Model	
  Canvas	
  
1.  Plot	
  the	
  Business	
  Model	
  Canvas	
 ...
“Great”	
  Business	
  Model	
  Canvas	
  

LEVEL	
  1:	
  3	
  Streams	
  (Swimlanes)	
  of	
  Cards	
  
Visualize,	
  Prototype,	
  and	
  Test	
  
A	
  Business	
  Model	
  
In	
  Terms	
  of	
  
Its	
  3	
  Engines:	
  
q 	...
Visualize,	
  Prototype,	
  and	
  Test	
  
A	
  Business	
  Model	
  
In	
  Terms	
  of	
  9	
  PerspecWves	
  
Upstream	...
9	
  Blank	
  Jigsaw	
  Cards	
  (One	
  Type	
  of	
  Shape)	
  

Rapidly	
  Visualize,	
  Prototype,	
  and	
  Test	
  t...
Topic	
  Cards	
  for	
  the	
  Business	
  Model	
  Jigsaw	
  
Rapidly	
  Visualize,	
  Prototype,	
  and	
  Test	
  the	...
Gameboard	
  for	
  Business	
  Model	
  Jigsaw	
  

Rapidly	
  Visualize,	
  Prototype,	
  and	
  Test	
  the	
  3	
  Eng...
Gameboard	
  for	
  Business	
  Model	
  Jigsaw	
  

Rapidly	
  Visualize,	
  Prototype,	
  and	
  Test	
  the	
  3	
  Eng...
Gameboard	
  for	
  Business	
  Model	
  Jigsaw	
  

Rapidly	
  Visualize,	
  Prototype,	
  and	
  Test	
  the	
  3	
  Eng...
Gameboard	
  for	
  Business	
  Model	
  Jigsaw	
  

Rapidly	
  Visualize,	
  Prototype,	
  and	
  Test	
  the	
  3	
  Eng...
Gameboard	
  for	
  Business	
  Model	
  Jigsaw	
  

Rapidly	
  Visualize,	
  Prototype,	
  and	
  Test	
  the	
  3	
  Eng...
Business	
  Model	
  Jigsaw	
  

Rapidly	
  Visualize,	
  Prototype,	
  and	
  Test	
  the	
  3	
  Engines	
  of	
  a	
  B...
Business	
  Model	
  Jigsaw	
  

Rapidly	
  Visualize,	
  Prototype,	
  and	
  Test	
  the	
  3	
  Engines	
  of	
  a	
  B...
Business	
  Model	
  Jigsaw	
  

Rapidly	
  Visualize,	
  Prototype,	
  and	
  Test	
  the	
  3	
  Engines	
  of	
  a	
  B...
Always	
  Start	
  With	
  “Why?”	
  

HOW?	
  

WHAT?	
  

WHY?	
  

Note:	
  The	
  logic	
  as	
  well	
  as	
  sequenc...
“People	
  like	
  
MarWn	
  Luther	
  King,	
  Jr.,	
  
Steve	
  Jobs,	
  and	
  
The	
  Wright	
  Brothers	
  
Might	
  ...
Example	
  
Business	
  Model	
  Jigsaw	
  for	
  Apple’s	
  iPod	
  

Rapidly	
  Visualize,	
  Prototype,	
  and	
  Test	
  the	
  3	...
Business	
  Model	
  Jigsaw	
  for	
  Apple’s	
  iPod	
  

Rapidly	
  Visualize,	
  Prototype,	
  and	
  Test	
  the	
  3	...
Business	
  Model	
  Jigsaw	
  for	
  Apple’s	
  iPod	
  

Rapidly	
  Visualize,	
  Prototype,	
  and	
  Test	
  the	
  3	...
Business	
  Model	
  Jigsaw	
  for	
  Apple’s	
  iPod	
  

Rapidly	
  Visualize,	
  Prototype,	
  and	
  Test	
  the	
  3	...
Business	
  Model	
  Jigsaw	
  for	
  Apple’s	
  iPod	
  

Rapidly	
  Visualize,	
  Prototype,	
  and	
  Test	
  the	
  3	...
How	
  to	
  Basically	
  Use	
  the	
  Business	
  Model	
  Jigsaw	
  
1.  Plot	
  the	
  Gameboard	
  of	
  the	
  Busin...
AlternaWve	
  Forms	
  of	
  “3	
  Stream-­‐Jigsaw	
  Board”	
  
(Non-­‐magne1c/Magne1c/Sta1c)	
  
AlternaWve	
  Forms	
  of	
  “Jigsaw	
  Cards”	
  
(Non-­‐magne1c/Magne1c/Sta1c)	
  
Appendix	
  
Advanced	
  Business	
  Model	
  Jigsaw	
  

LEVEL	
  2:	
  Network	
  (Func?onal	
  Analysis)	
  Diagram	
  
Simply	
  Prepare	
  
A	
  Business	
  Model	
  Strategy	
  Map	
  
A	
  Business	
  Model	
  Strategy	
  Map	
  
Is	
  
A	
  Cause-­‐and-­‐Effect	
  Diagram	
  
That	
  Illustrates	
  
How	
...
A	
  Business	
  Model	
  Strategy	
  Map	
  
Facilitates	
  
The	
  TranslaWon	
  of	
  
Mission/Vision/Purpose	
  
Into	...
Business	
  Model	
  Jigsaw	
  

Rapidly	
  Visualize,	
  Prototype,	
  and	
  Test	
  the	
  3	
  Engines	
  of	
  a	
  B...
Business	
  Model	
  Jigsaw	
  

Rapidly	
  Visualize,	
  Prototype,	
  and	
  Test	
  the	
  3	
  Engines	
  of	
  a	
  B...
Business	
  Model	
  Jigsaw	
  

Rapidly	
  Visualize,	
  Prototype,	
  and	
  Test	
  the	
  3	
  Engines	
  of	
  a	
  B...
Business	
  Model	
  Jigsaw	
  

Rapidly	
  Visualize,	
  Prototype,	
  and	
  Test	
  the	
  3	
  Engines	
  of	
  a	
  B...
Business	
  Model	
  Jigsaw	
  

Rapidly	
  Visualize,	
  Prototype,	
  and	
  Test	
  the	
  3	
  Engines	
  of	
  a	
  B...
Business	
  Model	
  Jigsaw	
  

Rapidly	
  Visualize,	
  Prototype,	
  and	
  Test	
  the	
  3	
  Engines	
  of	
  a	
  B...
Business	
  Model	
  Jigsaw	
  

Rapidly	
  Visualize,	
  Prototype,	
  and	
  Test	
  the	
  3	
  Engines	
  of	
  a	
  B...
Business	
  Model	
  Jigsaw	
  

Rapidly	
  Visualize,	
  Prototype,	
  and	
  Test	
  the	
  3	
  Engines	
  of	
  a	
  B...
Business	
  Model	
  Jigsaw	
  

Rapidly	
  Visualize,	
  Prototype,	
  and	
  Test	
  the	
  3	
  Engines	
  of	
  a	
  B...
Business	
  Model	
  Jigsaw	
  

Rapidly	
  Visualize,	
  Prototype,	
  and	
  Test	
  the	
  3	
  Engines	
  of	
  a	
  B...
Example	
  
Business	
  Model	
  Jigsaw	
  

Rapidly	
  Visualize,	
  Prototype,	
  and	
  Test	
  the	
  3	
  Engines	
  of	
  a	
  B...
Business	
  Model	
  Jigsaw	
  for	
  Apple’s	
  iPod	
  

Rapidly	
  Visualize,	
  Prototype,	
  and	
  Test	
  the	
  3	...
Business	
  Model	
  Jigsaw	
  for	
  Apple’s	
  iPod	
  

Rapidly	
  Visualize,	
  Prototype,	
  and	
  Test	
  the	
  3	...
Business	
  Model	
  Jigsaw	
  for	
  Apple’s	
  iPod	
  

Rapidly	
  Visualize,	
  Prototype,	
  and	
  Test	
  the	
  3	...
Business	
  Model	
  Jigsaw	
  for	
  Apple’s	
  iPod	
  

Rapidly	
  Visualize,	
  Prototype,	
  and	
  Test	
  the	
  3	...
Business	
  Model	
  Jigsaw	
  for	
  Apple’s	
  iPod	
  

Rapidly	
  Visualize,	
  Prototype,	
  and	
  Test	
  the	
  3	...
Business	
  Model	
  Jigsaw	
  for	
  Apple’s	
  iPod	
  

Rapidly	
  Visualize,	
  Prototype,	
  and	
  Test	
  the	
  3	...
Business	
  Model	
  Jigsaw	
  for	
  Apple’s	
  iPod	
  

Rapidly	
  Visualize,	
  Prototype,	
  and	
  Test	
  the	
  3	...
Environment	
  
Of	
  
A	
  Business	
  Model	
  Jigsaw	
  

LEVEL	
  3:	
  Environment	
  (Supersystem)	
  Diagram	
  
 Environment	
  of	
  Business	
  Model	
  Jigsaw:	
  “SWOT”	
  Factors	
  
	
  

W:	
  Weaknesses	
  

ENTERPRISE	
  
ENG...
Environment	
  of	
  Business	
  Model	
  Jigsaw:	
  Environmental	
  Factors	
  	
  
	
  

Value	
  Crea?on:	
  
Upstream...
Environment	
  of	
  Business	
  Model	
  Jigsaw:	
  Global	
  Environmental	
  Factors	
  
	
  

Value	
  Crea?on:	
  
Up...
Environment	
  of	
  Business	
  Model	
  Jigsaw:	
  Local	
  Industry	
  Factors	
  
	
  

Value	
  Crea?on:	
  
Upstream...
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A Business Model Canvas-KILLER. Rapidly Visualize, Prototype, and Test the 3 Engines of a Business Model

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The Business Model Canvas can be considered as a graphic organizer (high level TreeMap) that shows 9 tessellated elements, tiles, or “building blocks” of an archetypal business model. Since the 2009 publication of Alexander Osterwalder and Yves Pigneur’s “Business Model Generation” book, use and popularity of the Business Model Canvas (BMC) have surged worldwide.

The BMC is enthusiastically used by entrepreneurs, startups, established businesses, and non-profit organizations as well as university students, lecturers, and selected scientists from America’s National Science Foundation program. But is the BMC efficiently being used? Is the traditional BMC a “living organism” that would evolve to a higher level or simply become extinct in the jungle of tools for Business Model Planning, Strategy, and Performance Management (BMPSPM)?

As a long-time practitioner of TRIZ (“Theory of Inventive Problem Solving”) and an avid observer of idealized systems, a particular question that interests me is this: Would the BMC evolve towards the “Ideal Final Result (IFR)” by disrupting and cannibalizing itself, that is, by becoming multi-functional while instantly using freely available and/or internal resources at little or no cost? In other words, would the BMC evolve from being “good” to being “great” as an adaptive organism?

So far, evolution regarding the graphic organizer of the BMC has been superficial: the visual structure or BMC Gameboard (blank graphic framework) and how to use it have remained the same. So far, the most popular change to the BMC is by Ash Maurya in his Lean Canvas. In the Lean Canvas, 4 topics (Key Partners, Key Activities, Key Resources, and Customer Relationships) are eliminated while being respectively replaced by topics such as Problem, Solution, Key Metrics, and Unfair Advantage. These changes violate the macro-logic of a business model. The Lean Canvas focuses on operationalizing the Lean Startup method which is a methodology for continuously managing highly risky (innovation) projects. However, the Lean Canvas is inadequate for Business Model Planning, Strategy, and Performance Management; the Lean Canvas does not use a business model as a unit of analysis.

Recently, I presented a list of 10 characteristics of a “great” Business Model Canvas. The traditional BMC scored a 3 (out of 10). The 10 characteristics relate to tasks especially in Business Model Planning, Strategy, and Performance Management as well as Business Model Gamification. The question, then, is: how can we “ideally” transform a good BMC to a great BMC? Ideally, we should make little or no changes to the topics of the BMC and logic of a business model. The Lean Canvas falls short of that ideal.

The presentation below shows how one can “gamificate” (turn into a game) the traditional BMC so that it meets the 10 criteria of a great Business Model Canvas.

http://goo.gl/vWnOHl

  • Njce! Thanks for sharing.
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  • This. Is. Genius. Thank you Rod.
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  • Rod- I visited this presentation again and a question popped up. In the value stream and from the example cited '1000 songs in your pocket' is a moving slogan. How do you translate that into a dollar value? I have thought always about this and it seems we are still behind in converting emotions into dollar values? Any thoughts?
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  • @RodKing
    Rod- a brilliant response. I hope readers go through it carefully. I step aside to let readers enjoy your lovely response, Rod.
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  • Ali, You ask a great question which reminds me of one of my favorite sayings from the philosopher, Soren Kierkegaard: 'Life can only be understood backwards; but it must be lived forwards.' If I'm to paraphrase Kierkegaard, 'Design Thinking and Outcome-based Thinking live backwards but Analytical Thinking and Time live forwards.' I believe that the core job of Designers is to bring the future to the present. Consequently, Designers always start with the end or outcome in mind; they start with the Why (Future) and proceed to the How (Present). In contrast to Designers who focus on future systems, Analysts focus on existing systems. Analysts, therefore, take a present system and decompose (analyze) it while asking How. In the end, however, there must be synergy between the How (Present/Details) and Why (Future/Big Picture). In my experience and in designing novel systems, Design Thinking results in more elegant and efficient solutions. Analytical Thinking is more suited to routine problems and solutions such as in improvement projects. So, regarding my reason for putting the 'Why?' on the right hand side, the short answer is that I'm using the paradigm of Design Thinking and Outcome-based Thinking. I therefore started with the end in mind, as Stephen Covey would say. Of course, the end being on the right hand side assumes a left to right reading/writing culture such as in English. As you know, in the Middle East and in Arab regions in particular, reading/writing is from right to left. If I were writing in Arabic, the end would be on the left hand side. My solution to this apparent paradox is to be fluent in reading backwards and forwards as well as upwards and downwards. And Ali, I suspect that you are a master of multi-directional reading, for that's the hallmark of a highly visual thinker. I hope that my explanation suffices. Nevertheless, should you have further questions, just let me know.
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A Business Model Canvas-KILLER. Rapidly Visualize, Prototype, and Test the 3 Engines of a Business Model

  1. 1. A  Business  Model  Canvas-­‐Killer   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   Dr.  Rod  King   Business  Model  Gamifica1on  
  2. 2. “Good”  vs  “Great”  Business  Model  Canvas   REQUIREMENTS   (TASKS/FUNCTIONS)  FOR   BUSINESS  MODEL  PLANNING,  STRATEGY,   PERFORMANCE  MANAGEMENT,  AND  GAMIFICATION     “Good”   Business  Model  Canvas       1)    Can  be  carried  in  pocket/wallet:  ultra-­‐portability;  modularity   “Great”   Business  Model  Canvas   ü      2)    Visualize  archetypal  parts  or  elements  of  a  business  model   (system):  Business  Model  Outline  (Form/Checklist/TreeMap)   ü      ü      3)    Organize  and  manage  ideas  regarding  the  parts  or  elements  of   a  business  model  (system):  Business  Model  Scorecard   ü      ü      4)    Illustrate  the  3  macro-­‐modules  or  engines  of  a  business  model:   Provider  (Supply)  Model;  Customer  (Demand)  Model;  Value   (Performance/Profit)  Model:  MulWlevel  (Aggregate)  Analysis   ü      5)  Comprehensively  show  how  cause-­‐and-­‐effect  rela1onships  that   illustrate  how  a  business  model  works  to  deliver  value:  Business   Model  Strategy  Map;  FuncWonal  Analysis  Diagram   ü      6)  Illustrate  Problem-­‐Solu1on  Fit  &  Product-­‐Market  Fit:  Lean   Startup  method;  Engine  of  Growth   ü      7)    Facilitate  genera1on  and  management  of  business  model   hypotheses  as  well  as  strategy:  Business  Model  Strategy   ü      ü      8)    Facilitate  Premortem  (Failure  Analysis):  Root-­‐cause  Analysis   ü      9)    Facilitate  problem  solving,  innova1on,  and  performance  mngt   as  well  as  Outcome-­‐driven  Planning,  including  Discovery-­‐driven   Planning:  Universal  Project  Management  (UPM)  Dashboard   ü      10)    Can  be  deployed  as  a  boardgame  with  “na1ve”  game  pieces   (cards)  &  board:  Business  Model  Jigsaw  (BMJ)  Game   ü      (3/10)   (10/10)  
  3. 3. The  Business  Model  Canvas   From  “Good”  to  “Great”  
  4. 4. “Good”  Business  Model  Canvas   [A  New  Look  at  the  Tradi1onal  Business  Model  Canvas]   Single  Level  TreeMap/Visual  Outline  (Form/Checklist)  
  5. 5. TradiWonal  Business  Model  Canvas   Source:  h@p://en.wikipedia.org/wiki/Business_Model_Canvas    
  6. 6. Jigsaw-­‐Business  Model  Canvas                                                                                                                                           Jigsaw-­‐Business  Model  Canvas  is  adopted  from  the  Business  Model  Canvas  (h]p://www.businessmodelgeneraWon.com)  which  is  licensed  under  the  CreaWve   Commons  A]ribute-­‐Share  Alike  3.0  Un-­‐ported  License  
  7. 7. Jigsaw-­‐Business  Model  Canvas                                                                                                                                           Jigsaw-­‐Business  Model  Canvas  is  adopted  from  the  Business  Model  Canvas  (h]p://www.businessmodelgeneraWon.com)  which  is  licensed  under  the  CreaWve   Commons  A]ribute-­‐Share  Alike  3.0  Un-­‐ported  License  
  8. 8. 9  Blank  Jigsaw  Cards  (Several  Types  of  Shapes)   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   BMC  Jigsaw  Cards  is  adopted  from  the  Business  Model  Canvas  (h]p://www.businessmodelgeneraWon.com)  which  is  licensed  under  the  CreaWve  Commons   A]ribute-­‐Share  Alike  3.0  Un-­‐ported  License  
  9. 9. Topic  Jigsaw  Cards  for  the  Business  Model  Canvas   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   Key   Partners   (KP)                   Key   AcWviWes     (KA)       Key   Resources   (KR)       Cost  Structure  (C$)       Value  ProposiWon   (VP)                     Customer   Rel.   (CR)       Channels   (CH)         Customer   Segments   (CS)                   Revenue  Streams  (R$)       Topics  of  BMC  Jigsaw  Cards  are  adopted  from  the  Business  Model  Canvas  (h]p://www.businessmodelgeneraWon.com)  which  is  licensed  under  the  CreaWve   Commons  A]ribute-­‐Share  Alike  3.0  Un-­‐ported  License  
  10. 10. Jigsaw  Board  for  Business  Model  Canvas   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   BMC  Jigsaw  Cards  is  adopted  from  the  Business  Model  Canvas  (h]p://www.businessmodelgeneraWon.com)  which  is  licensed  under  the  CreaWve  Commons   A]ribute-­‐Share  Alike  3.0  Un-­‐ported  License  
  11. 11. Jigsaw-­‐Business  Model  Canvas:  9  Cards   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   Key   Partners   (KP)                   Key   AcWviWes     (KA)       Key   Resources   (KR)       Cost  Structure  (C$)       Value  ProposiWon   (VP)                     Customer   Rel.   (CR)       Channels   (CH)         Customer   Segments   (CS)                   Revenue  Streams  (R$)       BMC  Jigsaw  Cards  is  adopted  from  the  Business  Model  Canvas  (h]p://www.businessmodelgeneraWon.com)  which  is  licensed  under  the  CreaWve  Commons   A]ribute-­‐Share  Alike  3.0  Un-­‐ported  License  
  12. 12. Jigsaw-­‐Business  Model  Canvas:  4  Panels   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   Key   Partners   (KP)                   Key   AcWviWes     (KA)       Key   Resources   (KR)       Cost  Structure  (C$)       Value  ProposiWon   (VP)                     Customer   Customer   Segments   Rel.   (CS)   (CR)         Channels   (CH)                       Revenue  Streams  (R$)       BMC  Jigsaw  Cards  is  adopted  from  the  Business  Model  Canvas  (h]p://www.businessmodelgeneraWon.com)  which  is  licensed  under  the  CreaWve  Commons   A]ribute-­‐Share  Alike  3.0  Un-­‐ported  License  
  13. 13. TradiWonal  Business  Model  Canvas:  Monolithic  Gameboard  (Form)   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   Key   Partners   (KP)                         Key  AcWviWes     (KA)             Key   Resources   (KR)         Cost  Structure  (C$)               Value  ProposiWon   (VP)                           Customer  Rel.   (CR)             Customer   Segments   (CS)         Channels   (CH)                           Revenue  Streams  (R$)               BMC  Jigsaw  Cards  is  adopted  from  the  Business  Model  Canvas  (h]p://www.businessmodelgeneraWon.com)  which  is  licensed  under  the  CreaWve  Commons   A]ribute-­‐Share  Alike  3.0  Un-­‐ported  License  
  14. 14. Example  
  15. 15. Business  Model  Canvas  for  Apple  (iPod)   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   Key   Partners   (KP)     q  Record     companies       q  Original     Equipment     Manufactur-­‐   ers             q  q  q  q  Value  ProposiWon   Key  AcWviWes     (VP)   (KA)       q  Luxury  Spot   q  “A  Thousand  Songs  in  Your     Strategy     Pocket”   q  Hardware/     Solware  Design     q  Seamless  Music  Experience     q  Marke1ng  &                      Sales     q  iPod  Hardware     Key     Resources     (KR)     q  Staff/                  Employees       q  Brand/Culture       q  Infra’:  IT     Cost  Structure  (C$)     Staff/Employees   Manufacturing     Marke1ng  &  Sales     Infrastructure:  IT         Customer  Rel.   Customer   Segments   (CR)   (CS)     q  Online       q  Face-­‐to-­‐face   q  Luxury  Spoker:     q  “Lock  in”                    Listen  to                      music  every-­‐                    where       Channels   (CH)     q  Apple.com     q  iTunes  Store   q  Retail  stores     q  Big  Box  Retail     q  Customer  Habit     Engine             Revenue  Streams  (R$)     q  iPod  Hardware   q  iTunes     q  Commissions           BMC  Jigsaw  Cards  is  adopted  from  the  Business  Model  Canvas  (h]p://www.businessmodelgeneraWon.com)  which  is  licensed  under  the  CreaWve  Commons   A]ribute-­‐Share  Alike  3.0  Un-­‐ported  License  
  16. 16. How  to  Use  The  Tradi?onal  Business  Model  Canvas   1.  Plot  the  Business  Model  Canvas  on  a  Poster   2.  Place  the  Poster  on  a  Wall   3.  Sketch  Out  –  Especially  Using  Post-­‐It  Notes  –       the  Business  Model  
  17. 17. “Great”  Business  Model  Canvas   LEVEL  1:  3  Streams  (Swimlanes)  of  Cards  
  18. 18. Visualize,  Prototype,  and  Test   A  Business  Model   In  Terms  of   Its  3  Engines:   q     Value  Engine:  Share  Value     q     Growth  Engine:  Deliver  Value   q     Enterprise  Engine:  Create  Value  
  19. 19. Visualize,  Prototype,  and  Test   A  Business  Model   In  Terms  of  9  PerspecWves   Upstream   Midstream   Downstream   Key  Partners  (KP)   Value  ProposiWon  (VP)   PAIN:   Cost  Structure  (C$)   Key  Resources  (KR)   Channels  (CH)  &  Customer   RelaWonships  (CR)   DELIGHT:   Revenue  Streams  (R$)   Key  AcWviWes  (KA)   Customer  Segments  (CS)   VALUE:   PROFIT   Topics  with  Abbrevia1ons  are  adopted  from  the  Business  Model  Canvas  (h]p://www.businessmodelgeneraWon.com)  which  is  licensed  under  the  CreaWve  Commons   A]ribute-­‐Share  Alike  3.0  Un-­‐ported  License  
  20. 20. 9  Blank  Jigsaw  Cards  (One  Type  of  Shape)   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model                                                      
  21. 21. Topic  Cards  for  the  Business  Model  Jigsaw   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   Key  Partners  (KP)         Value  ProposiWon  (VP)       Cost  Structure  (C$)           Key  Resources  (KR)         Channels  (CH)  &  Customer   RelaWonships  (CR)       Revenue  Streams  (R$)         Key  AcWviWes  (KA)         Customer  Segments  (CS)       PROFIT           Topics  of  the  9  Jigsaw  Cards  are  adopted  from  the  Business  Model  Canvas  (h]p://www.businessmodelgeneraWon.com)  which  is  licensed  underthe  CreaWve   Commons  A]ribute-­‐Share  Alike  3.0  Un-­‐ported  License  
  22. 22. Gameboard  for  Business  Model  Jigsaw   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   HOW?   WHAT?   WHY?  
  23. 23. Gameboard  for  Business  Model  Jigsaw   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   HOW?   Enterprise  Stream   WHAT?   Growth  Stream   WHY?   Value  Stream  
  24. 24. Gameboard  for  Business  Model  Jigsaw   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   HOW?   Supply:  Value  CreaXon     WHAT?   Demand:  Value  Delivery   WHY?   Value  Sharing  (Capture)  
  25. 25. Gameboard  for  Business  Model  Jigsaw   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   HOW?   Supply:  Value  CreaXon     WHAT?   Demand:  Value  Delivery   WHY?   Value  Sharing  (Capture)  
  26. 26. Gameboard  for  Business  Model  Jigsaw   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   Upstream  Cards   Supply:  Value  CreaXon     Midstream  Cards   Demand:  Value  Delivery   Downstream  Cards   Value  Sharing  (Capture)  
  27. 27. Business  Model  Jigsaw   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   Key  Partners  (KP)         Value  ProposiWon  (VP)       Cost  Structure  (C$)           Key  Resources  (KR)         Channels  (CH)  &  Customer   RelaWonships  (CR)       Revenue  Streams  (R$)         Key  AcWviWes  (KA)         Customer  Segments  (CS)       PROFIT          
  28. 28. Business  Model  Jigsaw   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   Key  Partners  (KP)         Value  ProposiWon  (VP)   [Product/Service]     PAIN:   Cost  Structure  (C$)         Key  Resources  (KR)         Channels  (CH)  &  Customer   RelaWonships  (CR)       DELIGHT:   Revenue  Streams  (R$)       Key  AcWviWes  (KA)         Customer  Segments  (CS)       VALUE:   PROFIT        
  29. 29. Business  Model  Jigsaw   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   WHY?   WHAT?   HOW?   Key  Partners  (KP)         Value  ProposiWon  (VP)   [Product/Service]     PAIN:   Cost  Structure  (C$)         Key  Resources  (KR)         Channels  (CH)  &  Customer   RelaWonships  (CR)       DELIGHT:   Revenue  Streams  (R$)       Key  AcWviWes  (KA)         Customer  Segments  (CS)       VALUE:   PROFIT        
  30. 30. Always  Start  With  “Why?”   HOW?   WHAT?   WHY?   Note:  The  logic  as  well  as  sequence  of  Why-­‐What-­‐How  in  the  above  diagram  differs  from   Simon  Sinek’s  Golden  Circle  which  he  presents  in  his  book,  “Start  With  Why.”  
  31. 31. “People  like   MarWn  Luther  King,  Jr.,   Steve  Jobs,  and   The  Wright  Brothers   Might  Have  Likle  in  Common,   But   They  All  Started  with  “Why?””   Simon  Sinek  
  32. 32. Example  
  33. 33. Business  Model  Jigsaw  for  Apple’s  iPod   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   HOW?   WHAT?   WHY?  
  34. 34. Business  Model  Jigsaw  for  Apple’s  iPod   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   Downstream  Cards   PAIN:   Cost  Structure  (C$)   q  Staff/Employees   q  Manufacturing/Infra’   q  Marke1ng  &  Sales   DELIGHT:   Revenue  Streams  (R$)   q  iPod  Hardware   q  iTunes   q  Commissions   VALUE:   PROFIT   q  High  Profit  Margin   q  Extraordinary  Profit   q  Performance  Metrics  
  35. 35. Business  Model  Jigsaw  for  Apple’s  iPod   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   Midstream  Cards   Value  ProposiWon  (VP)   q  “A  Thousand  Songs  in  Your   Pocket”   q  Seamless  Music  XP   q  iPod  Hardware   Channels  (CH)  &  Customer   RelaWonships  (CR)   Downstream  Cards   PAIN:   Cost  Structure  (C$)   q  Staff/Employees   q  Manufacturing/Infra’   q  Marke1ng  &  Sales   DELIGHT:   Revenue  Streams  (R$)   q  Apple.com;  Big  Box  Retailer   q  iTunes  Store;  Retail  stores   q  iPod  Hardware   q  iTunes   q  Commissions   Customer  Segments  (CS)   VALUE:   PROFIT   q  Online/Face-­‐to-­‐Face;  Lock-­‐in   q  Luxury  Spoker:                  Listen  to  music  everywhere   q  Customer  Habit  Engine   q  High  Profit  Margin   q  Extraordinary  Profit   q  Performance  Metrics  
  36. 36. Business  Model  Jigsaw  for  Apple’s  iPod   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   Midstream  Cards   Upstream  Cards   Key  Partners  (KP)   q  Record  companies   q  Original  Equipment   Manufacturers   Key  Resources  (KR)   q  q  q  q  Staff/Employees   Brand/Culture   IP   Infrastructure:  IT   Key  AcWviWes  (KA)   q  Luxury  Spot  Strategy   q  Hardware/Solware  Design   q  Marke1ng  &  Sales   Value  ProposiWon  (VP)   q  “A  Thousand  Songs  in  Your   Pocket”   q  Seamless  Music  XP   q  iPod  Hardware   Channels  (CH)  &  Customer   RelaWonships  (CR)   Downstream  Cards   PAIN:   Cost  Structure  (C$)   q  Staff/Employees   q  Manufacturing/Infra’   q  Marke1ng  &  Sales   DELIGHT:   Revenue  Streams  (R$)   q  Apple.com;  Big  Box  Retailer   q  iTunes  Store;  Retail  stores   q  iPod  Hardware   q  iTunes   q  Commissions   Customer  Segments  (CS)   VALUE:   PROFIT   q  Online/Face-­‐to-­‐Face;  Lock-­‐in   q  Luxury  Spoker:                  Listen  to  music  everywhere   q  Customer  Habit  Engine   q  High  Profit  Margin   q  Extraordinary  Profit   q  Performance  Metrics  
  37. 37. Business  Model  Jigsaw  for  Apple’s  iPod   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   Key  Partners  (KP)   q  Record  companies   q  Original  Equipment   Manufacturers   Key  Resources  (KR)   q  q  q  q  Staff/Employees   Brand/Culture   IP   Infrastructure:  IT   Key  AcWviWes  (KA)   q  Luxury  Spot  Strategy   q  Hardware/Solware  Design   q  Marke1ng  &  Sales   WHY?   WHAT?   HOW?   Value  ProposiWon  (VP)   q  “A  Thousand  Songs  in  Your   Pocket”   q  Seamless  Music  XP   q  iPod  Hardware   Channels  (CH)  &  Customer   RelaWonships  (CR)   PAIN:   Cost  Structure  (C$)   q  Staff/Employees   q  Manufacturing/Infra’   q  Marke1ng  &  Sales   DELIGHT:   Revenue  Streams  (R$)   q  Apple.com;  Big  Box  Retailer   q  iTunes  Store;  Retail  stores   q  iPod  Hardware   q  iTunes   q  Commissions   Customer  Segments  (CS)   VALUE:   PROFIT   q  Online/Face-­‐to-­‐Face;  Lock-­‐in   q  Luxury  Spoker:                  Listen  to  music  everywhere   q  Customer  Habit  Engine   q  High  Profit  Margin   q  Extraordinary  Profit   q  Performance  Metrics  
  38. 38. How  to  Basically  Use  the  Business  Model  Jigsaw   1.  Plot  the  Gameboard  of  the  Business  Model  Jigsaw  on  a  Poster   2.  Place  the  Poster  on  a  Table   3.  Lay  Out  –  Especially  Using  Index  Cards                or  Blank  Business  Cards  –  the  Business  Model              In  Terms  of  its  3  Engines:   HOW?   WHAT?   Enterprise  Engine   Growth  Engine   q Value  Engine   q Growth  Engine   q Enterprise  Engine   WHY?   Value  Engine  
  39. 39. AlternaWve  Forms  of  “3  Stream-­‐Jigsaw  Board”   (Non-­‐magne1c/Magne1c/Sta1c)  
  40. 40. AlternaWve  Forms  of  “Jigsaw  Cards”   (Non-­‐magne1c/Magne1c/Sta1c)  
  41. 41. Appendix  
  42. 42. Advanced  Business  Model  Jigsaw   LEVEL  2:  Network  (Func?onal  Analysis)  Diagram  
  43. 43. Simply  Prepare   A  Business  Model  Strategy  Map  
  44. 44. A  Business  Model  Strategy  Map   Is   A  Cause-­‐and-­‐Effect  Diagram   That  Illustrates   How  an  OrganizaWon   Creates,  Delivers,  and  Shares  Value   (Profit)  
  45. 45. A  Business  Model  Strategy  Map   Facilitates   The  TranslaWon  of   Mission/Vision/Purpose   Into   Reality  
  46. 46. Business  Model  Jigsaw   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   MISSION/VISION/PURPOSE:  ………………………………………………………………………………………………………………………………………  
  47. 47. Business  Model  Jigsaw   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   HOW?   WHAT?   WHY?  
  48. 48. Business  Model  Jigsaw   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   Upstream   Midstream   Downstream  
  49. 49. Business  Model  Jigsaw   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   Upstream  Cards   Supply:  Value  CreaXon     Midstream  Cards   Demand:  Value  Delivery   Downstream  Cards   Value  Sharing  (Capture)  
  50. 50. Business  Model  Jigsaw   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   Key  Partners  (KP)         Value  ProposiWon  (VP)       PAIN:   Cost  Structure  (C$)         Key  Resources  (KR)         Channels  (CH)  &  Customer   RelaWonships  (CR)       DELIGHT:   Revenue  Streams  (R$)       Key  AcWviWes  (KA)         Customer  Segments  (CS)       VALUE:   PROFIT        
  51. 51. Business  Model  Jigsaw   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   Key  Partners  (KP)         Value  ProposiWon  (VP)       PAIN:   Cost  Structure  (C$)         Key  Resources  (KR)         Channels  (CH)  &  Customer   RelaWonships  (CR)       DELIGHT:   Revenue  Streams  (R$)       Key  AcWviWes  (KA)         Customer  Segments  (CS)       VALUE:   PROFIT        
  52. 52. Business  Model  Jigsaw   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model     affect(s)   Key  Resources  (KR)         impact(s)   impact(s)   Channels  (CH)  &  Customer   RelaWonships  (CR)       deliver(s)   Key  AcWviWes  (KA)         affect(s)   impact(s)   affect(s)   Customer  Segments  (CS)         PAIN:   Cost  Structure  (C$)     impacts     affects   DELIGHT:   Revenue  Streams  (R$)       drive(s)   impact(s)   Value  ProposiWon  (VP)       (Problem-­‐Solu1on  Fit;  Product-­‐Market  Fit)   Key  Partners  (KP)         VALUE:   PROFIT      
  53. 53. Business  Model  Jigsaw   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   Key  Partners  (KP)         impact(s)   Value  ProposiWon  (VP)         affect(s)   Key  Resources  (KR)         impact(s)   impact(s)     Key  AcWviWes  (KA)         impact(s)   DELIGHT:   Revenue  Streams  (R$)       affect(s)   Customer  Segments  (CS)           affect(s)   Channels  (CH)  &  Customer   RelaWonships  (CR)     deliver(s)   PAIN:   Cost  Structure  (C$)     VALUE:   PROFIT      
  54. 54. Business  Model  Jigsaw   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model     affect(s)   Key  Resources  (KR)         impact(s)   impact(s)   Channels  (CH)  &  Customer   RelaWonships  (CR)       deliver(s)   Key  AcWviWes  (KA)         affect(s)   impact(s)   affect(s)   Customer  Segments  (CS)         PAIN:   Cost  Structure  (C$)     impacts     affects   DELIGHT:   Revenue  Streams  (R$)       drive(s)   impact(s)   Value  ProposiWon  (VP)   [Product/Service]     (Problem-­‐Solu1on  Fit;  Product-­‐Market  Fit)   Key  Partners  (KP)         VALUE:   PROFIT      
  55. 55. Business  Model  Jigsaw   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model     affect(s)   Key  Resources  (KR)         impact(s)   impact(s)   Channels  (CH)  &  Customer   RelaWonships  (CR)       deliver(s)   Key  AcWviWes  (KA)         affect(s)   impact(s)   affect(s)   Customer  Segments  (CS)         PAIN:   Cost  Structure  (C$)     impacts     affects   DELIGHT:   Revenue  Streams  (R$)       drive(s)   Value  ProposiWon  (VP)   [Product/Service]     (Problem-­‐Solu1on  Fit;  Product-­‐Market  Fit)   Key  Partners  (KP)         impact(s)   WHY?   WHAT?   HOW?   VALUE:   PROFIT      
  56. 56. Example  
  57. 57. Business  Model  Jigsaw   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   HOW?   WHAT?   WHY?  
  58. 58. Business  Model  Jigsaw  for  Apple’s  iPod   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   Upstream  Cards   Midstream  Cards   Downstream  Cards  
  59. 59. Business  Model  Jigsaw  for  Apple’s  iPod   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   Key  Partners  (KP)   q  Record  companies   q  Original  Equipment   Manufacturers   Key  Resources  (KR)   q  q  q  q  Staff/Employees   Brand/Culture   IP   Infrastructure:  IT   Key  AcWviWes  (KA)   q  Luxury  Spot  Strategy   q  Hardware/Solware  Design   q  Marke1ng  &  Sales   Value  ProposiWon  (VP)   q  “A  Thousand  Songs  in  Your   Pocket”   q  Seamless  Music  XP   q  iPod  Hardware   Channels  (CH)  &  Customer   RelaWonships  (CR)   PAIN:   Cost  Structure  (C$)   q  Staff/Employees   q  Manufacturing/Infra’   q  Marke1ng  &  Sales   DELIGHT:   Revenue  Streams  (R$)   q  Apple.com;  Big  Box  Retailer   q  iTunes  Store;  Retail  stores   q  iPod  Hardware   q  iTunes   q  Commissions   Customer  Segments  (CS)   VALUE:   PROFIT   q  Online/Face-­‐to-­‐Face;  Lock-­‐in   q  Luxury  Spoker:                  Listen  to  music  everywhere   q  Customer  Habit  Engine   q  High  Profit  Margin   q  Extraordinary  Profit   q  Performance  Metrics  
  60. 60. Business  Model  Jigsaw  for  Apple’s  iPod   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   Key  Partners  (KP)   q  Record  companies   q  Original  Equipment   Manufacturers   Key  Resources  (KR)   q  q  q  q  Staff/Employees   Brand/Culture   IP   Infrastructure:  IT   Key  AcWviWes  (KA)   q  Luxury  Spot  Strategy   q  Hardware/Solware  Design   q  Marke1ng  &  Sales   Value  ProposiWon  (VP)   q  “A  Thousand  Songs  in  Your   Pocket”   q  Seamless  Music  XP   q  iPod  Hardware   Channels  (CH)  &  Customer   RelaWonships  (CR)   PAIN:   Cost  Structure  (C$)   q  Staff/Employees   q  Manufacturing/Infra’   q  Marke1ng  &  Sales   DELIGHT:   Revenue  Streams  (R$)   q  Apple.com;  Big  Box  Retailer   q  iTunes  Store;  Retail  stores   q  iPod  Hardware   q  iTunes   q  Commissions   Customer  Segments  (CS)   VALUE:   PROFIT   q  Online/Face-­‐to-­‐Face;  Lock-­‐in   q  Luxury  Spoker:                  Listen  to  music  everywhere   q  Customer  Habit  Engine   q  High  Profit  Margin   q  Extraordinary  Profit   q  Performance  Metrics  
  61. 61. Business  Model  Jigsaw  for  Apple’s  iPod   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   impact(s)   affect(s)   Key  Resources  (KR)   q  q  q  q  Staff/Employees   Brand/Culture   IP   Infrastructure:  IT   impact(s)   deliver(s)   Key  AcWviWes  (KA)   q  Luxury  Spot  Strategy   q  Hardware/Solware  Design   q  Marke1ng  &  Sales   q  “A  Thousand  Songs  in  Your   Pocket”   q  Seamless  Music  XP   q  iPod  Hardware   impact(s)   affect(s)   Channels  (CH)  &  Customer   RelaWonships  (CR)   q  Apple.com;  Big  Box  Retailer   q  iTunes  Store;  Retail  stores   q  Online/Face-­‐to-­‐Face;  Lock-­‐in   impact(s)   affect(s)   Customer  Segments  (CS)   q  Luxury  Spoker:                  Listen  to  music  everywhere   q  Customer  Habit  Engine   impacts   affects   q  Staff/Employees   q  Manufacturing/Infra’   q  Marke1ng  &  Sales   DELIGHT:   Revenue  Streams  (R$)   q  iPod  Hardware   q  iTunes   q  Commissions   drive(s)   q  Record  companies   q  Original  Equipment   Manufacturers   PAIN:   Cost  Structure  (C$)   Value  ProposiWon  (VP)   (Problem-­‐Solu1on  Fit;  Product-­‐Market  Fit)   Key  Partners  (KP)   VALUE:   PROFIT   q  High  Profit  Margin   q  Extraordinary  Profit   q  Performance  Metrics  
  62. 62. Business  Model  Jigsaw  for  Apple’s  iPod   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   Key  Partners  (KP)   q  Record  companies   q  Original  Equipment   Manufacturers   impact(s)   affect(s)   Key  Resources  (KR)   q  q  q  q  Staff/Employees   Brand/Culture   IP   Infrastructure:  IT   impact(s)   deliver(s)   Key  AcWviWes  (KA)   q  Luxury  Spot  Strategy   q  Hardware/Solware  Design   q  Marke1ng  &  Sales   Value  ProposiWon  (VP)   q  “A  Thousand  Songs  in  Your   Pocket”   q  Seamless  Music  XP   q  iPod  Hardware   impact(s)   q  Apple.com;  Big  Box  Retailer   q  iTunes  Store;  Retail  stores   Online/Face-­‐to-­‐Face;  Lock-­‐in   impact(s)   q  Staff/Employees   q  Manufacturing/Infra’   q  Marke1ng  &  Sales   affect(s)   Channels  (CH)  &  Customer   RelaWonships  (CR)   q  PAIN:   Cost  Structure  (C$)   DELIGHT:   Revenue  Streams  (R$)   q  iPod  Hardware   q  iTunes   q  Commissions   affect(s)   Customer  Segments  (CS)   q  Luxury  Spoker:                  Listen  to  music  everywhere   q  Customer  Habit  Engine   VALUE:   PROFIT   q  High  Profit  Margin   q  Extraordinary  Profit   q  Performance  Metrics  
  63. 63. Business  Model  Jigsaw  for  Apple’s  iPod   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   impact(s)   affect(s)   Key  Resources  (KR)   q  q  q  q  Staff/Employees   Brand/Culture   IP   Infrastructure:  IT   impact(s)   deliver(s)   Key  AcWviWes  (KA)   q  Luxury  Spot  Strategy   q  Hardware/Solware  Design   q  Marke1ng  &  Sales   q  “A  Thousand  Songs  in  Your   Pocket”   q  Seamless  Music  XP   q  iPod  Hardware   impact(s)   affect(s)   Channels  (CH)  &  Customer   RelaWonships  (CR)   q  Apple.com;  Big  Box  Retailer   q  iTunes  Store;  Retail  stores   q  Online/Face-­‐to-­‐Face;  Lock-­‐in   impact(s)   affect(s)   Customer  Segments  (CS)   q  Luxury  Spoker:                  Listen  to  music  everywhere   q  Customer  Habit  Engine   impacts   affects   q  Staff/Employees   q  Manufacturing/Infra’   q  Marke1ng  &  Sales   DELIGHT:   Revenue  Streams  (R$)   q  iPod  Hardware   q  iTunes   q  Commissions   drive(s)   q  Record  companies   q  Original  Equipment   Manufacturers   PAIN:   Cost  Structure  (C$)   Value  ProposiWon  (VP)   (Problem-­‐Solu1on  Fit;  Product-­‐Market  Fit)   Key  Partners  (KP)   VALUE:   PROFIT   q  High  Profit  Margin   q  Extraordinary  Profit   q  Performance  Metrics  
  64. 64. Business  Model  Jigsaw  for  Apple’s  iPod   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   affect(s)   Key  Resources  (KR)   q  q  q  q  Staff/Employees   Brand/Culture   IP   Infrastructure:  IT   impact(s)   deliver(s)   Key  AcWviWes  (KA)   q  Luxury  Spot  Strategy   q  Hardware/Solware  Design   q  Marke1ng  &  Sales   q  “A  Thousand  Songs  in  Your   Pocket”   q  Seamless  Music  XP   q  iPod  Hardware   impact(s)   affect(s)   Channels  (CH)  &  Customer   RelaWonships  (CR)   q  Apple.com;  Big  Box  Retailer   q  iTunes  Store;  Retail  stores   q  Online/Face-­‐to-­‐Face;  Lock-­‐in   impact(s)   affect(s)   Customer  Segments  (CS)   q  Luxury  Spoker:                  Listen  to  music  everywhere   q  Customer  Habit  Engine   impacts   affects   q  Staff/Employees   q  Manufacturing/Infra’   q  Marke1ng  &  Sales   DELIGHT:   Revenue  Streams  (R$)   q  iPod  Hardware   q  iTunes   q  Commissions   drive(s)   q  Record  companies   q  Original  Equipment   Manufacturers   PAIN:   Cost  Structure  (C$)   Value  ProposiWon  (VP)   (Problem-­‐Solu1on  Fit;  Product-­‐Market  Fit)   Key  Partners  (KP)   impact(s)   WHY?   WHAT?   HOW?   VALUE:   PROFIT   q  High  Profit  Margin   q  Extraordinary  Profit   q  Performance  Metrics  
  65. 65. Environment   Of   A  Business  Model  Jigsaw   LEVEL  3:  Environment  (Supersystem)  Diagram  
  66. 66.  Environment  of  Business  Model  Jigsaw:  “SWOT”  Factors     W:  Weaknesses   ENTERPRISE   ENGINE:   Build   Value  Delivery:   Midstream  Cards   GROWTH   ENGINE:   Measure   T:  Threats   Value  Sharing  (Happiness):   Downstream  Cards   VALUE   ENGINE:   Learn   O:  OpportuniWes   S:  Strengths   Value  Crea?on:   Upstream  Cards  
  67. 67. Environment  of  Business  Model  Jigsaw:  Environmental  Factors       Value  Crea?on:   Upstream  Cards   ENTERPRISE   ENGINE:   Build   Value  Delivery:   Midstream  Cards   GROWTH   ENGINE:   Measure   ENVIRONMENT   Value  Sharing  (Happiness):   Downstream  Cards   VALUE   ENGINE:   Learn  
  68. 68. Environment  of  Business  Model  Jigsaw:  Global  Environmental  Factors     Value  Crea?on:   Upstream  Cards   ENTERPRISE   ENGINE:   Build   Value  Delivery:   Midstream  Cards   GROWTH   ENGINE:   Measure   Value  Sharing  (Happiness):   Downstream  Cards   VALUE   ENGINE:   Learn   Macro-­‐Economic  Influencers  (MEI):  Global  Economy   Market  Ecosystem  (ME):  Demand   Industry  Ecosystem  (IE):  Supply   Key  Trends  &  Complementors  (KTC):  PESTLIED  (-­‐/+)  
  69. 69. Environment  of  Business  Model  Jigsaw:  Local  Industry  Factors     Value  Crea?on:   Upstream  Cards   ENTERPRISE   ENGINE:   Build   Value  Delivery:   Midstream  Cards   GROWTH   ENGINE:   Measure   Value  Sharing  (Happiness):   Downstream  Cards   VALUE   ENGINE:   Learn   Threat  of  SubsWtute  Products  or  Services   Bargaining  Power  of  Customers   Bargaining  Power  of  Suppliers   Threat  of  New  Entrants  

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