Why the Balanced Scorecard is Good but Not Great: The BUSINESS MODEL STRATEGY MAP

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Developed by Robert Kaplan and David Norton in the 1990s, the Balanced Scorecard (BSC) is the most widely used tool for managing the performance of a business. The BSC is used by the majority of companies in the Fortune 1000 as well as by many small and medium-scale businesses. The BSC focuses on a managing a chain or “stream” of performance metrics rather than the output or traditional singular financial metric of profit.

In the presentation below - http://goo.gl/lSIDX9 - I take a critical look at the traditional Balanced Scorecard as well as introduce a new tool in the evolution of the framework for the Balanced Scorecard. Tools such as Kaplan and Norton’s Strategy Map have been developed to complement the Balanced Scorecard. However, in this age of Business Model Planning, Strategy, and Performance Management, the traditional Balanced Scorecard or Strategy Map is not enough.

What do you think?

Rod.

http://goo.gl/lSIDX9

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  • Thanks Rod for this great content. What I've failed to see though is the example application of how Objectives, Measures, Targets and Initiatives integrate into the model. This would allow to create an operational and changing model like the ScoreCard. Could you please clarify this? Thanks again your slides are amazing.
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  • Thanks Rod for the detailed response. If you remember, you provided me some detail when I wrote software to create the Blue Ocean Strategy Analytic. If is useful in TekMetrix Software.



    In SAP AG there is the balanced scorecard that Kaplan wrote his book about. The SAP Balanced Scorecard Software allows the creation of as many perspectives and you want. Last time I configured the software I think I had 6 perspectives. Setting up strategies, projects for change, and key performance indicators derived from SAP and or Legacy Enterprise Applications data, let the manager monitor performance in real time ( performance can now be monitored in nearly realtime). Results, Variance and Predictions can be deployed to an iPhone or any other device. The balanced scorecard was easy to commit to software. Porters 5 forces would require more qualitative modeling, while the balanced scorecard is more quantitative and easier for program logic.



    I have also used the SAP Balanced Scorecard software to create a balanced scorecard focused on operations data only. KPI's were cost drivers, costs and time cycles. But we still had perspectives, goals, project initiatives along with the KPI's. Thanks again
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  • @berrydr: Hi Doug, Thanks for your feedback. Just for the records, my comment is about the Balanced Scorecard (BSC) being good but not great. I did not say that the Balanced Scorecard is 'weak.' Framing my concern of the BSC as a 'weakness' might imply that the BSC is not worthy of use. In contrast, saying that the BSC is good but not great implies that there is room for improvement regarding the BSC. Having said that, I'd like to note that criticisms focus on three topics: 1. Structure (Neglect of channels) 2. Linkages (Inadequate consideration of the cause-and-effect relationships between the 4 perspectives) 3. Logic (Non-display of macro- and micro-logic of BSC as well as exclusive focus on financial objectives and measures as the driver of the organization's mission). The aforementioned criticisms also apply to Porter's 5 Forces which is usually applied for determining the attractiveness of an industry. In my experience, the BSC and Porter's 5 Forces are complementary rather than mutually exclusive. The BSC focuses on the organization as a business system while Porter's 5 Forces focus on the local industry environment of a business system (model). In response to your comment, I've added some slides (46-48) which present the Business Model Strategy Map as a system in different environments. My focus has been on inadequacies of the BSC as a tool for comprehensively managing the performance of a business model. Porter's Value Chain as well as 5 Forces are also subject to the majority of criticisms that I'm making against the BSC; see, for example, slide 6. What I'm advocating for by introducing the Business Model Strategy Map is a customizable or versatile multilevel system that can be used for flexibly managing, on a single page, the strategy and performance of any type of organization: businesses and non-profit organizations. In the work of Kaplan and Norton, their Performance Management framework evolved from the first generation (Balanced Scorecard) to the second generation (Strategy Map). There is even a third generation tool. However, it does not focus on a 'business model.' I believe that the next generation tool must focus on a business model as the unit of analysis, design, and performance management. The Business Model Strategy Map is an example of such a next generation tool.
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  • @berrydr
    Hi Doug- The presentation didn't say the Balanced Scorecard is bad; it said it is good. Dr. Rod is making it excellent. With all fairness, only if we apply Rod' model and the balanced Scorecard on the same project then we may see the difference. I use the BSC frequently as well as Dr. Rod's Model. I enjoy the latter more.
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  • I have enjoyed using the balanced scorecard on many projects - it is embedded in SAP performance management software. If you think it is weak Rod, then try Porter's 5 Forces Model. It covers all the voids that the balanced scorecard does not cover.
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Why the Balanced Scorecard is Good but Not Great: The BUSINESS MODEL STRATEGY MAP

  1. 1. Business  Model  Strategy  Map  for  Apple’s  iPod   MISSION/VISION/PURPOSE:  “Put  a  Dent  in  the  Universe”/Create  Insanely  Great  Customer  Experience/“Think  Different”   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  AcBviBes  (KA)   q  Luxury  Spot  Strategy   q  Hardware/SoTware  Design   q  MarkeUng  &  Sales   Value  ProposiBon  (VP)   q  “A  Thousand  Songs  in  Your   Pocket”   q  Seamless  Music  XP   q  iPod  Hardware   Channels  (CH)  &  Customer   RelaBonships  (CR)   PAIN:   Cost  Structure  (C$)   q  Staff/Employees   q  Manufacturing/Infra’   q  MarkeUng  &  Sales   DELIGHT:   Revenue  Streams  (R$)   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  SpoXer:                  Listen  to  music  everywhere   q  Customer  Habit  Engine   q  High  Profit  Margin   q  Extraordinary  Profit   q  Performance  Metrics   Topics  with  AbbreviaUons  are  adopted  from  the  Business  Model  Canvas  (hNp://www.businessmodelgeneraBon.com)  which  is  licensed  under  the  CreaBve  Commons   ANribute-­‐Share  Alike  3.0  Un-­‐ported  License  
  2. 2. Business  Model  (BM)  Strategy  Map   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   0 MISSION/VISION/PURPOSE:  ………………………………………………………………………………………………………………………………………   3 2 1   #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hNp://businessmodels.ning.com  &  hNp://twiNer.com/RodKuhnKing  
  3. 3. Business  Model  (BM)  Strategy  Map   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   0  MISSION/VISION/PURPOSE:  Why  does  the  organizaMon  exist?   3 2 1 How  does  the  organizaUon   create,  improve,  or  innovate  on  a   product/strategy/business  model?   How  does  the  organizaUon   engage,  acquire,  and   retain  customers?   How  does  the  organizaUon   make  money  (profit)  and/or   share  value  (happiness)?     #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hNp://businessmodels.ning.com  &  hNp://twiNer.com/RodKuhnKing  
  4. 4. Business  Model  (BM)  Strategy  Map   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   0  MISSION/VISION/PURPOSE:  Why  does  the  organizaMon  exist?   3 2 1 How  does  the  organizaUon   create,  improve,  or  innovate  on  a   product/strategy/business  model?   How  does  the  organizaUon   engage,  acquire,  and   retain  customers?   How  does  the  organizaUon   make  money  (profit)  and/or   share  value  (happiness)?   Enterprise  Hypotheses   Growth  Hypotheses   Value  Hypotheses     #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hNp://businessmodels.ning.com  &  hNp://twiNer.com/RodKuhnKing  
  5. 5. A  New  Look   At   The  Balanced  Scorecard    
  6. 6. Why  the  BALANCED  SCORECARD  is  Good  But  Not  Great   STRUCTURE   The  Balanced  Scorecard  (BSC)  is   frequently  presented  as  a  chain  or   sequence  of  4  boxes  –  “perspecUves”  –   of  a  business  (system).  The  4  boxes   (perspecUves)  of  a  BSC  relate  to  only  4   blocks  of  a  business  model.     The  4  perspecUves  of  a  BSC  deal  with   performance  management  of  the  3   models  or  engines  of  a  business  model:   q  Provider  (Supply)  Model  or  Enter-­‐ prise  Engine  for  creaMng  value   q  Customer  (Demand)  Model  or   Growth  Engine  for  delivering  value   q  Performance  (Profit)  Model  or   Value  Engine  for  sharing  value   However,  channels  are  ignored.                 THE  BALANCED  SCORECARD       LINKAGES  (FUNCTIONAL  ANALYSIS)   The  Balanced  Scorecard  (BSC)  does  not   focus  on  showing  micro-­‐cause-­‐and-­‐ effect  relaUonships  in  a  business.  That   funcUon  is  taken  up  by  the  complemen-­‐ tary  tool  of  Kaplan  and  Norton’s   Strategy  Map  which  is  also  limited  to  4   corresponding  perspecUves.       h"ps://balancedscorecard.org/Resources/ Abou"heBalancedScorecard/tabid/55/Default.aspx     Consequently,  the  BSC  is  not  a  detailed   network  (funcUonal  analysis)  diagram   that  illustrates  exchange  of  resources   between  boxes  or  perspecUves.   A  Balanced  Scorecard  is  good  as  a  Business   Scorecard  and  Checklist  as  well  as   Performance  Management  Dashboard  for   transla>ng  a  business’s  vision,  goals,   objec>ves,  and  strategy  into  reality  but  …   Also,  techniques  such  as  Premortem   (Failure  Analysis)  and  Hypothesis   GeneraUon  cannot  be  simply  carried   out  using  the  Balanced  Scorecard.   Source:     LOGIC  (PREDICTIVE  CAPABILITY)   A  Balanced  Scorecard  (BSC)  can  be  considered  as  a  “surrogate”  or  parBal  visualizaBon  of  a  business  model:  it  shows  minimal   cause-­‐and-­‐effect  relaUonships  between  the  4  perspecUves.  The  BSC  does  not  adequately  describe  a  business  model  as  the   BSC  does  not  show  the  macro-­‐logic  of  how  an  organizaUon  creates,  delivers,  and  captures  or  shares  value  (profit).     Consequently,  the  BSC  is  of  limited  use  for  Business  Model  Performance  Management  and  PredicUon  especially  at  the  macro-­‐ level.     Although  in  theory  the  BSC  can  be  applied  to  non-­‐profit  organizaUon,  its  focus  is  on  achieving  financial  objecUves.     #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hNp://businessmodels.ning.com  &  hNp://twiNer.com/RodKuhnKing  
  7. 7. “Good”  vs  “Great”  BALANCED  SCORECARD   REQUIREMENTS   (TASKS/FUNCTIONS)  FOR   BUSINESS  MODEL  PLANNING,  STRATEGY,   PERFORMANCE  MANAGEMENT,  AND  GAMIFICATION     “Good”   Balanced  Scorecard       1)    Can  be  carried  in  pocket/wallet:  ultra-­‐portability;  modularity   “Great”   Balanced  Scorecard   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:  MulBlevel  (Aggregate)  Analysis   ü      5)  Comprehensively  show  cause-­‐and-­‐effect  relaUonships  that   illustrate  how  a  business  model  works  to  deliver  value:  Business   Model  Strategy  Map;  FuncBonal  Analysis  Diagram   ü      6)  Illustrate  Problem-­‐SoluUon  Fit  &  Product-­‐Market  Fit:  Lean   Startup  method;  Engine  of  Growth   ü      7)    Facilitate  generaUon  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,  innovaUon,  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  “naUve”  game  pieces   (cards)  &  board:  Business  Model  Jigsaw  (BMJ)  Game   ü      (3/10)   (10/10)  
  8. 8. “Good”  
  9. 9. A  Balanced  Scorecard  (BSC)   Uses   4  PerspecBves   To  Organize  and  Manage  InformaUon   on   The  Performance  of  a  Business  Model:   q  Financial  PerspecUve   q  Customer  PerspecUve   q  Processes  PerspecUve   q  Learning  &  Growth  PerspecUve  
  10. 10. TradiBonal  Balanced  Scorecard  (BSC)   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   Source:  h"ps://balancedscorecard.org/Resources/Abou"heBalancedScorecard/tabid/55/Default.aspx    
  11. 11. Balanced  Scorecard  (BSC)  Strategy  Map   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   MISSION/VISION/PURPOSE:  ………………………………………………………………………………………………………………………………………   Learning  &  Growth         Processes         Customer         Finance         Topics  in  brown  color  are  from  descripUons  of  “boxes”  or  perspecUves  of  the  Balanced  Scorecard  
  12. 12. Balanced  Scorecard  (BSC)  Strategy  Map   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   MISSION/VISION/PURPOSE:  ………………………………………………………………………………………………………………………………………   Learning  &  Growth         Processes         Customer         Finance         Topics  in  brown  color  are  from  descripUons  of  “boxes”  or  perspecUves  of  the  Balanced  Scorecard  
  13. 13. Balanced  Scorecard  (BSC)  Strategy  Map   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   MISSION/VISION/PURPOSE:  ………………………………………………………………………………………………………………………………………   Learning  &  Growth         impact(s)   Processes         deliver(s)   Customer         Finance         Topics  in  brown  color  are  from  descripUons  of  “boxes”  or  perspecUves  of  the  Balanced  Scorecard  
  14. 14. A  Balanced  Scorecard  (BSC)   Is   A  Minimum  Viable  Product  (MVP)   Of   A  Business  Model  Strategy  Map  
  15. 15. “Great”  
  16. 16. Business  Model  Strategy  Map  
  17. 17. For  a  Comprehensive  Project,   Four  Sets  of   Business  Model  (BM)  Strategy  Maps   Should  be  Completed  in  the  Categories  of   M.O.S.T.:     q     M:  Mission  (Vision/Goal/Leap  of  Faith)   q     O:  Outcome   q     S:  Strategy  (Hypotheses)   q     T:  Targets  (Hypotheses)   Note   For  startups  or  startup   projects,  it  is  advisable  to   prepare   Analog  &  AnBlog-­‐Business   Model  Strategy  Maps   before  compleUng   M.O.S.T.-­‐Business  Model   Strategy  Maps  
  18. 18. A  Business  Model  (BM)  Strategy  Map   Is  Designed  to  Facilitate   3  “Jobs-­‐To-­‐Get-­‐Done”:         1    Translate  into  reality  an  OrganizaBon’s  Mission,  Vision,                      Purpose,  Goal  and/or  Strategy        Document  and  improve  the  performance  of  any  organizaUon   2     isualize   3              Vsystem)  or  document  the  3  engines  of  ta  business  model             ( as  well  as  prototype  and  test   he  hypotheses  of                    its  9  parts,  “strategy  blocks”  or  perspecBves  
  19. 19. A  Business  Model  (BM)  Strategy  Map   Uses   3  “Engine  Maps”   For  Organizing  and  Managing  InformaUon   About   The  Performance  of  a  Business  Model:   q     Value  Engine  (VE)  Map   q     Growth  Engine  (GE)  Map   q     Enterprise  Engine  (EE)  Map  
  20. 20. 3  QuesBons  for   The  Business  Model  Strategy  Map   VE   GE   EE   Value  Engine  Map:  How  do  we  capture  or  share   value  (wealth;  profit;  learning;  happiness)?   Growth  Engine  Map:  How  do  we  deliver   value?   Enterprise  Engine  Map:  How  do  we  create   value?  
  21. 21. Business  Model  (BM)  Strategy  Map   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   0 MISSION/VISION/PURPOSE:  ………………………………………………………………………………………………………………………………………   3 2 1   #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hNp://businessmodels.ning.com  &  hNp://twiNer.com/RodKuhnKing  
  22. 22. Visualize,  Prototype,  and  Test   A  Business  Model   In  Terms  of  9  Strategy  Blocks   Upstream   Midstream   Downstream   Key  Partners  (KP)   Value  ProposiBon  (VP)   PAIN:   Cost  Structure  (C$)   Key  Resources  (KR)   Channels  (CH)  &  Customer   RelaBonships  (CR)   DELIGHT:   Revenue  Streams  (R$)   Key  AcBviBes  (KA)   Customer  Segments  (CS)   VALUE:   PROFIT   Topics  with  AbbreviaUons  are  adopted  from  the  Business  Model  Canvas  (hNp://www.businessmodelgeneraBon.com)  which  is  licensed  under  the  CreaBve  Commons   ANribute-­‐Share  Alike  3.0  Un-­‐ported  License  
  23. 23. Blank  Gameboard  for  Business  Model  Strategy  Map                                                                
  24. 24. Business  Model  Strategy  Map   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   MISSION/VISION/PURPOSE:  ………………………………………………………………………………………………………………………………………   Key  Partners  (KP)         Value  ProposiBon  (VP)       PAIN:   Cost  Structure  (C$)         Key  Resources  (KR)         Channels  (CH)  &  Customer   RelaBonships  (CR)       DELIGHT:   Revenue  Streams  (R$)       Key  AcBviBes  (KA)         Customer  Segments  (CS)       VALUE:   PROFIT         Topics  with  AbbreviaUons  are  adopted  from  the  Business  Model  Canvas  (hNp://www.businessmodelgeneraBon.com)  which  is  licensed  under  the  CreaBve  Commons   ANribute-­‐Share  Alike  3.0  Un-­‐ported  License  
  25. 25. Business  Model  Strategy  Map   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   MISSION/VISION/PURPOSE:  ………………………………………………………………………………………………………………………………………   Key  Partners  (KP)         Value  ProposiBon  (VP)       PAIN:   Cost  Structure  (C$)         Key  Resources  (KR)         Channels  (CH)  &  Customer   RelaBonships  (CR)       DELIGHT:   Revenue  Streams  (R$)       Key  AcBviBes  (KA)         Customer  Segments  (CS)       VALUE:   PROFIT         Topics  with  AbbreviaUons  are  adopted  from  the  Business  Model  Canvas  (hNp://www.businessmodelgeneraBon.com)  which  is  licensed  under  the  CreaBve  Commons   ANribute-­‐Share  Alike  3.0  Un-­‐ported  License  
  26. 26. Business  Model  Strategy  Map   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   MISSION/VISION/PURPOSE:  ………………………………………………………………………………………………………………………………………     affect(s)   Key  Resources  (KR)         impact(s)   impact(s)   Channels  (CH)  &  Customer   RelaBonships  (CR)       deliver(s)   Key  AcBviBes  (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  ProposiBon  (VP)       (Problem-­‐SoluUon  Fit;  Product-­‐Market  Fit)   Key  Partners  (KP)         VALUE:   PROFIT       Topics  with  AbbreviaUons  are  adopted  from  the  Business  Model  Canvas  (hNp://www.businessmodelgeneraBon.com)  which  is  licensed  under  the  CreaBve  Commons   ANribute-­‐Share  Alike  3.0  Un-­‐ported  License  
  27. 27. Business  Model  Strategy  Map   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   MISSION/VISION/PURPOSE:  ………………………………………………………………………………………………………………………………………     affect(s)   Key  Resources  (KR)   Learning  &  Growth       impact(s)   impact(s)   Channels  (CH)  &  Customer   RelaBonships  (CR)       deliver(s)   Key  AcBviBes  (KA)   Processes       affect(s)   impact(s)   affect(s)   Customer  Segments  (CS)   Customer       PAIN:   Cost  Structure  (C$)     impacts     affects   DELIGHT:   Revenue  Streams  (R$)       drive(s)   impact(s)   Value  ProposiBon  (VP)       (Problem-­‐SoluUon  Fit;  Product-­‐Market  Fit)   Key  Partners  (KP)         VALUE:   PROFIT   Finance     Topics  with  AbbreviaUons  are  adopted  from  the  Business  Model  Canvas  (hNp://www.businessmodelgeneraBon.com)  which  is  licensed  under  the  CreaBve  Commons   ANribute-­‐Share  Alike  3.0  Un-­‐ported  License  
  28. 28. Business  Model  Strategy  Map   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   MISSION/VISION/PURPOSE:  ………………………………………………………………………………………………………………………………………     affect(s)   Key  Resources  (KR)   Strategy:   Learning  &  Growth     impact(s)   impact(s)   Channels  (CH)  &  Customer   RelaBonships  (CR)   Strategy     deliver(s)   Key  AcBviBes  (KA)   Strategy:   Processes     affect(s)   impact(s)   affect(s)   Customer  Segments  (CS)   Strategy:   Customer     PAIN:   Cost  Structure  (C$)   Strategy   impacts     affects   DELIGHT:   Revenue  Streams  (R$)   Strategy     drive(s)   impact(s)   Value  ProposiBon  (VP)   Strategy     (Problem-­‐SoluUon  Fit;  Product-­‐Market  Fit)   Key  Partners  (KP)   Strategy       VALUE:   PROFIT  Strategy:   Finance     Topics  with  AbbreviaUons  are  adopted  from  the  Business  Model  Canvas  (hNp://www.businessmodelgeneraBon.com)  which  is  licensed  under  the  CreaBve  Commons   ANribute-­‐Share  Alike  3.0  Un-­‐ported  License  
  29. 29. Business  Model  Strategy  Map   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   MISSION/VISION/PURPOSE:  ………………………………………………………………………………………………………………………………………     affect(s)   Key  Resources  (KR)   Targets:   Learning  &  Growth     impact(s)   impact(s)   Channels  (CH)  &  Customer   RelaBonships  (CR)   Targets     deliver(s)   Key  AcBviBes  (KA)   Targets:   Processes     affect(s)   impact(s)   affect(s)   Customer  Segments  (CS)   Targets:   Customer     PAIN:   Cost  Structure  (C$)   Targets   impacts     affects   DELIGHT:   Revenue  Streams  (R$)   Targets     drive(s)   impact(s)   Value  ProposiBon  (VP)   Targets     (Problem-­‐SoluUon  Fit;  Product-­‐Market  Fit)   Key  Partners  (KP)   Targets       VALUE:   PROFIT  Targets:   Finance     Topics  with  AbbreviaUons  are  adopted  from  the  Business  Model  Canvas  (hNp://www.businessmodelgeneraBon.com)  which  is  licensed  under  the  CreaBve  Commons   ANribute-­‐Share  Alike  3.0  Un-­‐ported  License  
  30. 30. Business  Model  Strategy  Map   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   MISSION/VISION/PURPOSE:  ………………………………………………………………………………………………………………………………………     affect(s)   Key  Resources  (KR)   Targets       impact(s)   deliver(s)   Key  AcBviBes  (KA)   Targets       impact(s)   affect(s)   Channels  (CH)  &  Customer   RelaBonships  (CR)   Targets     impact(s)   affect(s)   Customer  Segments  (CS)   Targets       PAIN:   Cost  Structure  (C$)   Targets   impacts     affects   DELIGHT:   Revenue  Streams  (R$)   Targets     drive(s)   impact(s)   Value  ProposiBon  (VP)   Targets     (Problem-­‐SoluUon  Fit;  Product-­‐Market  Fit)   Key  Partners  (KP)   Targets       VALUE:   PROFIT  Targets       Topics  with  AbbreviaUons  are  adopted  from  the  Business  Model  Canvas  (hNp://www.businessmodelgeneraBon.com)  which  is  licensed  under  the  CreaBve  Commons   ANribute-­‐Share  Alike  3.0  Un-­‐ported  License  
  31. 31. Business  Model  Strategy  Map   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   MISSION/VISION/PURPOSE:  ………………………………………………………………………………………………………………………………………     affect(s)   Key  Resources  (KR)   Hypotheses       impact(s)   impact(s)   Channels  (CH)  &  Customer   RelaBonships  (CR)   Hypotheses     deliver(s)   Key  AcBviBes  (KA)   Hypotheses       affect(s)   impact(s)   affect(s)   Customer  Segments  (CS)   Hypotheses       PAIN:   Cost  Structure  (C$)   Hypotheses   impacts     affects   DELIGHT:   Revenue  Streams  (R$)   Hypotheses     drive(s)   impact(s)   Value  ProposiBon  (VP)   Hypotheses     (Problem-­‐SoluUon  Fit;  Product-­‐Market  Fit)   Key  Partners  (KP)   Hypotheses       VALUE:   PROFIT  Hypotheses       Topics  with  AbbreviaUons  are  adopted  from  the  Business  Model  Canvas  (hNp://www.businessmodelgeneraBon.com)  which  is  licensed  under  the  CreaBve  Commons   ANribute-­‐Share  Alike  3.0  Un-­‐ported  License  
  32. 32. Business  Model  Strategy  Map   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   MISSION/VISION/PURPOSE:  ………………………………………………………………………………………………………………………………………     affect(s)   Key  Resources  (KR)   Obstacles       impact(s)   impact(s)   Channels  (CH)  &  Customer   RelaBonships  (CR)   Obstacles     deliver(s)   Key  AcBviBes  (KA)   Obstacles       affect(s)   impact(s)   affect(s)   Customer  Segments  (CS)   Obstacles       PAIN:   Cost  Structure  (C$)   Obstacles   impacts     affects   DELIGHT:   Revenue  Streams  (R$)   Obstacles     drive(s)   impact(s)   Value  ProposiBon  (VP)   Obstacles     (Problem-­‐SoluUon  Fit;  Product-­‐Market  Fit)   Key  Partners  (KP)   Obstacles       VALUE:   PROFIT  Obstacles       Topics  with  AbbreviaUons  are  adopted  from  the  Business  Model  Canvas  (hNp://www.businessmodelgeneraBon.com)  which  is  licensed  under  the  CreaBve  Commons   ANribute-­‐Share  Alike  3.0  Un-­‐ported  License  
  33. 33. Business  Model  Strategy  Map   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   MISSION/VISION/PURPOSE:  ………………………………………………………………………………………………………………………………………     affect(s)   Key  Resources  (KR)   IniBaBves       impact(s)   impact(s)   Channels  (CH)  &  Customer   RelaBonships  (CR)   IniBaBves     deliver(s)   Key  AcBviBes  (KA)   IniBaBves       affect(s)   impact(s)   affect(s)   Customer  Segments  (CS)   IniBaBves       PAIN:   Cost  Structure  (C$)   IniBaBves   impacts     affects   DELIGHT:   Revenue  Streams  (R$)   IniBaBves     drive(s)   impact(s)   Value  ProposiBon  (VP)   IniBaBves     (Problem-­‐SoluUon  Fit;  Product-­‐Market  Fit)   Key  Partners  (KP)   IniBaBves       VALUE:   PROFIT  IniBaBves       Topics  with  AbbreviaUons  are  adopted  from  the  Business  Model  Canvas  (hNp://www.businessmodelgeneraBon.com)  which  is  licensed  under  the  CreaBve  Commons   ANribute-­‐Share  Alike  3.0  Un-­‐ported  License  
  34. 34. Business  Model  Strategy  Map   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   MISSION/VISION/PURPOSE:  ………………………………………………………………………………………………………………………………………     affect(s)   Key  Resources  (KR)   IniBaBves:   Employees/Team   Machinery/Infrastructure   impact(s)   impact(s)   Channels  (CH)  &  Customer   RelaBonships  (CR)   IniBaBves:   Retailers/Distributors   deliver(s)   Key  AcBviBes  (KA)   IniBaBves:   Processes     affect(s)   impact(s)   affect(s)   Customer  Segments  (CS)   IniBaBves:   Customer  Archetype     PAIN:   Cost  Structure  (C$)   IniBaBves   impacts     affects   DELIGHT:   Revenue  Streams  (R$)   IniBaBves     drive(s)   impact(s)   Value  ProposiBon  (VP)   IniBaBves:   Ouptut  -­‐  Product/Service   (Problem-­‐SoluUon  Fit;  Product-­‐Market  Fit)   Key  Partners  (KP)   IniBaBves:   Suppliers/Inputs     VALUE:   PROFIT  IniBaBves:   Shared  Value  (Strategy)     Topics  with  AbbreviaUons  are  adopted  from  the  Business  Model  Canvas  (hNp://www.businessmodelgeneraBon.com)  which  is  licensed  under  the  CreaBve  Commons   ANribute-­‐Share  Alike  3.0  Un-­‐ported  License  
  35. 35. Example  
  36. 36. 4  Business  Model  Engine  (BME)  QuesBons   How  Does  the  OrganizaMon  Work?     q  MISSION  (M)  QuesUon:  Why  does  the  organizaUon  exist?   q  VALUE  ENGINE  (VE)  QuesUon:  How  does  the  organizaUon   make  money  (profit)  and/or  share  value  (happiness)?     q  GROWTH  ENGINE(GE)  QuesUon:  How  does  the  organizaUon   engage,  acquire,  and  retain  customers?     q  ENTERPRISE  ENGINE  (EE)  QuesUon:  How  does  the   organizaUon  create,  improve,  or  innovate  on              a  product/strategy/business  model?    
  37. 37. 4  Business  Model  Engine  (BME)  QuesBons   How  Does  the  OrganizaMon  Work?    Business  Model  Strategy  Map   QuesBon   MISSION  (M)         Why  does  the  organizaUon  exist?   VALUE  ENGINE  (VE)         How  does  the  organizaUon  make  money  (profit)   and/or  share  value  (happiness)?     GROWTH  ENGINE  (GE)         How  does  the  organizaUon  engage,  acquire,  and   retain  customers?       ENTERPRISE  ENGINE  (EE)         How  does  the  organizaUon  create,  improve,  or   innovate  on  a  product/strategy/business  model?           #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hNp://businessmodels.ning.com  &  hNp://twiNer.com/RodKuhnKing  
  38. 38. Business  Model  (BM)  Strategy  Map   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   0  MISSION/VISION/PURPOSE:  Why  does  the  organizaMon  exist?   3 2 1 How  does  the  organizaUon   create,  improve,  or  innovate  on  a   product/strategy/business  model?   How  does  the  organizaUon   engage,  acquire,  and   retain  customers?   How  does  the  organizaUon   make  money  (profit)  and/or   share  value  (happiness)?     #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hNp://businessmodels.ning.com  &  hNp://twiNer.com/RodKuhnKing  
  39. 39. Business  Model  (BM)  Strategy  Map   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   0  MISSION/VISION/PURPOSE:  Why  does  the  organizaMon  exist?   3 2 1 How  does  the  organizaUon   create,  improve,  or  innovate  on  a   product/strategy/business  model?   How  does  the  organizaUon   engage,  acquire,  and   retain  customers?   How  does  the  organizaUon   make  money  (profit)  and/or   share  value  (happiness)?   Enterprise  Hypotheses   Growth  Hypotheses   Value  Hypotheses     #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hNp://businessmodels.ning.com  &  hNp://twiNer.com/RodKuhnKing  
  40. 40. Business  Model  Strategy  Map  for  Apple’s  iPod   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   MISSION/VISION/PURPOSE:  “Put  a  Dent  in  the  Universe”/Create  Insanely  Great  Customer  Experience/“Think  Different”  
  41. 41. Business  Model  Strategy  Map  for  Apple’s  iPod   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   MISSION/VISION/PURPOSE:  “Put  a  Dent  in  the  Universe”/Create  Insanely  Great  Customer  Experience/“Think  Different”   PAIN:   Cost  Structure  (C$)   q  Staff/Employees   q  Manufacturing/Infra’   q  MarkeUng  &  Sales   DELIGHT:   Revenue  Streams  (R$)   q  iPod  Hardware   q  iTunes   q  Commissions   VALUE:   PROFIT   q  High  Profit  Margin   q  Extraordinary  Profit   q  Performance  Metrics  
  42. 42. Business  Model  Strategy  Map  for  Apple’s  iPod   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   MISSION/VISION/PURPOSE:  “Put  a  Dent  in  the  Universe”/Create  Insanely  Great  Customer  Experience/“Think  Different”   Value  ProposiBon  (VP)   q  “A  Thousand  Songs  in  Your   Pocket”   q  Seamless  Music  XP   q  iPod  Hardware   Channels  (CH)  &  Customer   RelaBonships  (CR)   PAIN:   Cost  Structure  (C$)   q  Staff/Employees   q  Manufacturing/Infra’   q  MarkeUng  &  Sales   DELIGHT:   Revenue  Streams  (R$)   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  SpoXer:                  Listen  to  music  everywhere   q  Customer  Habit  Engine   q  High  Profit  Margin   q  Extraordinary  Profit   q  Performance  Metrics  
  43. 43. Business  Model  Strategy  Map  for  Apple’s  iPod   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   MISSION/VISION/PURPOSE:  “Put  a  Dent  in  the  Universe”/Create  Insanely  Great  Customer  Experience/“Think  Different”   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  AcBviBes  (KA)   q  Luxury  Spot  Strategy   q  Hardware/SoTware  Design   q  MarkeUng  &  Sales   Value  ProposiBon  (VP)   q  “A  Thousand  Songs  in  Your   Pocket”   q  Seamless  Music  XP   q  iPod  Hardware   Channels  (CH)  &  Customer   RelaBonships  (CR)   PAIN:   Cost  Structure  (C$)   q  Staff/Employees   q  Manufacturing/Infra’   q  MarkeUng  &  Sales   DELIGHT:   Revenue  Streams  (R$)   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  SpoXer:                  Listen  to  music  everywhere   q  Customer  Habit  Engine   q  High  Profit  Margin   q  Extraordinary  Profit   q  Performance  Metrics  
  44. 44. Business  Model  Strategy  Map  for  Apple’s  iPod   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   MISSION/VISION/PURPOSE:  “Put  a  Dent  in  the  Universe”/Create  Insanely  Great  Customer  Experience/“Think  Different”   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  AcBviBes  (KA)   q  Luxury  Spot  Strategy   q  Hardware/SoTware  Design   q  MarkeUng  &  Sales   Value  ProposiBon  (VP)   q  “A  Thousand  Songs  in  Your   Pocket”   q  Seamless  Music  XP   q  iPod  Hardware   Channels  (CH)  &  Customer   RelaBonships  (CR)   PAIN:   Cost  Structure  (C$)   q  Staff/Employees   q  Manufacturing/Infra’   q  MarkeUng  &  Sales   DELIGHT:   Revenue  Streams  (R$)   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  SpoXer:                  Listen  to  music  everywhere   q  Customer  Habit  Engine   q  High  Profit  Margin   q  Extraordinary  Profit   q  Performance  Metrics  
  45. 45. Business  Model  Strategy  Map  for  Apple’s  iPod   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   MISSION/VISION/PURPOSE:  “Put  a  Dent  in  the  Universe”/Create  Insanely  Great  Customer  Experience/“Think  Different”   impact(s)   affect(s)   Key  Resources  (KR)   q  q  q  q  Staff/Employees   Brand/Culture   IP   Infrastructure:  IT   impact(s)   deliver(s)   Key  AcBviBes  (KA)   q  Luxury  Spot  Strategy   q  Hardware/SoTware  Design   q  MarkeUng  &  Sales   q  “A  Thousand  Songs  in  Your   Pocket”   q  Seamless  Music  XP   q  iPod  Hardware   impact(s)   affect(s)   Channels  (CH)  &  Customer   RelaBonships  (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  SpoXer:                  Listen  to  music  everywhere   q  Customer  Habit  Engine   impacts   affects   q  Staff/Employees   q  Manufacturing/Infra’   q  MarkeUng  &  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  ProposiBon  (VP)   (Problem-­‐SoluUon  Fit;  Product-­‐Market  Fit)   Key  Partners  (KP)   VALUE:   PROFIT   q  High  Profit  Margin   q  Extraordinary  Profit   q  Performance  Metrics  
  46. 46. Business  Model  Strategy  Map  for  Apple’s  iPod   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   MISSION/VISION/PURPOSE:  “Put  a  Dent  in  the  Universe”/Create  Insanely  Great  Customer  Experience/“Think  Different”     affect(s)   Key  Resources  (KR)   Strategy:   Learning  &  Growth     impact(s)   impact(s)   Channels  (CH)  &  Customer   RelaBonships  (CR)   Strategy     deliver(s)   Key  AcBviBes  (KA)   Strategy:   Processes     affect(s)   impact(s)   affect(s)   Customer  Segments  (CS)   Strategy:   Customer     PAIN:   Cost  Structure  (C$)   Strategy   impacts     affects   DELIGHT:   Revenue  Streams  (R$)   Strategy     drive(s)   impact(s)   Value  ProposiBon  (VP)   Strategy     (Problem-­‐SoluUon  Fit;  Product-­‐Market  Fit)   Key  Partners  (KP)   Strategy       VALUE:   PROFIT  Strategy:   Finance     Topics  with  AbbreviaUons  are  adopted  from  the  Business  Model  Canvas  (hNp://www.businessmodelgeneraBon.com)  which  is  licensed  under  the  CreaBve  Commons   ANribute-­‐Share  Alike  3.0  Un-­‐ported  License  
  47. 47. Business  Model  Strategy  Map  for  Apple’s  iPod   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   MISSION/VISION/PURPOSE:  “Put  a  Dent  in  the  Universe”/Create  Insanely  Great  Customer  Experience/“Think  Different”     affect(s)   Key  Resources  (KR)   Targets:   Learning  &  Growth     impact(s)   impact(s)   Channels  (CH)  &  Customer   RelaBonships  (CR)   Targets     deliver(s)   Key  AcBviBes  (KA)   Targets:   Processes     affect(s)   impact(s)   affect(s)   Customer  Segments  (CS)   Targets:   Customer     PAIN:   Cost  Structure  (C$)   Targets   impacts     affects   DELIGHT:   Revenue  Streams  (R$)   Targets     drive(s)   impact(s)   Value  ProposiBon  (VP)   Targets     (Problem-­‐SoluUon  Fit;  Product-­‐Market  Fit)   Key  Partners  (KP)   Targets       VALUE:   PROFIT  Targets:   Finance     Topics  with  AbbreviaUons  are  adopted  from  the  Business  Model  Canvas  (hNp://www.businessmodelgeneraBon.com)  which  is  licensed  under  the  CreaBve  Commons   ANribute-­‐Share  Alike  3.0  Un-­‐ported  License  
  48. 48. Business  Model  Strategy  Map  for  Apple’s  iPod   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   MISSION/VISION/PURPOSE:  “Put  a  Dent  in  the  Universe”/Create  Insanely  Great  Customer  Experience/“Think  Different”     affect(s)   Key  Resources  (KR)   Targets       impact(s)   deliver(s)   Key  AcBviBes  (KA)   Targets       impact(s)   affect(s)   Channels  (CH)  &  Customer   RelaBonships  (CR)   Targets     impact(s)   affect(s)   Customer  Segments  (CS)   Targets       PAIN:   Cost  Structure  (C$)   Targets   impacts     affects   DELIGHT:   Revenue  Streams  (R$)   Targets     drive(s)   impact(s)   Value  ProposiBon  (VP)   Targets     (Problem-­‐SoluUon  Fit;  Product-­‐Market  Fit)   Key  Partners  (KP)   Targets       VALUE:   PROFIT  Targets       Topics  with  AbbreviaUons  are  adopted  from  the  Business  Model  Canvas  (hNp://www.businessmodelgeneraBon.com)  which  is  licensed  under  the  CreaBve  Commons   ANribute-­‐Share  Alike  3.0  Un-­‐ported  License  
  49. 49. Business  Model  Strategy  Map  for  Apple’s  iPod   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   MISSION/VISION/PURPOSE:  “Put  a  Dent  in  the  Universe”/Create  Insanely  Great  Customer  Experience/“Think  Different”     affect(s)   Key  Resources  (KR)   Hypotheses       impact(s)   impact(s)   Channels  (CH)  &  Customer   RelaBonships  (CR)   Hypotheses     deliver(s)   Key  AcBviBes  (KA)   Hypotheses       affect(s)   impact(s)   affect(s)   Customer  Segments  (CS)   Hypotheses       PAIN:   Cost  Structure  (C$)   Hypotheses   impacts     affects   DELIGHT:   Revenue  Streams  (R$)   Hypotheses     drive(s)   impact(s)   Value  ProposiBon  (VP)   Hypotheses     (Problem-­‐SoluUon  Fit;  Product-­‐Market  Fit)   Key  Partners  (KP)   Hypotheses       VALUE:   PROFIT  Hypotheses       Topics  with  AbbreviaUons  are  adopted  from  the  Business  Model  Canvas  (hNp://www.businessmodelgeneraBon.com)  which  is  licensed  under  the  CreaBve  Commons   ANribute-­‐Share  Alike  3.0  Un-­‐ported  License  
  50. 50. Business  Model  Strategy  Map  for  Apple’s  iPod   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   MISSION/VISION/PURPOSE:  “Put  a  Dent  in  the  Universe”/Create  Insanely  Great  Customer  Experience/“Think  Different”     affect(s)   Key  Resources  (KR)   IniBaBves       impact(s)   impact(s)   Channels  (CH)  &  Customer   RelaBonships  (CR)   IniBaBves     deliver(s)   Key  AcBviBes  (KA)   IniBaBves       affect(s)   impact(s)   affect(s)   Customer  Segments  (CS)   IniBaBves       PAIN:   Cost  Structure  (C$)   IniBaBves   impacts     affects   DELIGHT:   Revenue  Streams  (R$)   IniBaBves     drive(s)   impact(s)   Value  ProposiBon  (VP)   IniBaBves     (Problem-­‐SoluUon  Fit;  Product-­‐Market  Fit)   Key  Partners  (KP)   IniBaBves       VALUE:   PROFIT  IniBaBves       Topics  with  AbbreviaUons  are  adopted  from  the  Business  Model  Canvas  (hNp://www.businessmodelgeneraBon.com)  which  is  licensed  under  the  CreaBve  Commons   ANribute-­‐Share  Alike  3.0  Un-­‐ported  License  
  51. 51. Business  Model  Strategy  Map  for  Apple’s  iPod   Rapidly  Visualize,  Prototype,  and  Test  the  3  Engines  of  a  Business  Model   MISSION/VISION/PURPOSE:  “Put  a  Dent  in  the  Universe”/Create  Insanely  Great  Customer  Experience/“Think  Different”     affect(s)   Key  Resources  (KR)   IniBaBves:   Employees/Team   Machinery/Infrastructure   impact(s)   impact(s)   Channels  (CH)  &  Customer   RelaBonships  (CR)   IniBaBves:   Retailers/Distributors   deliver(s)   Key  AcBviBes  (KA)   IniBaBves:   Processes     affect(s)   impact(s)   affect(s)   Customer  Segments  (CS)   IniBaBves:   Customer  Archetype     PAIN:   Cost  Structure  (C$)   IniBaBves   impacts     affects   DELIGHT:   Revenue  Streams  (R$)   IniBaBves     drive(s)   impact(s)   Value  ProposiBon  (VP)   IniBaBves:   Ouptut  -­‐  Product/Service   (Problem-­‐SoluUon  Fit;  Product-­‐Market  Fit)   Key  Partners  (KP)   IniBaBves:   Suppliers/Inputs     VALUE:   PROFIT  IniBaBves:   Shared  Value  (Strategy)     Topics  with  AbbreviaUons  are  adopted  from  the  Business  Model  Canvas  (hNp://www.businessmodelgeneraBon.com)  which  is  licensed  under  the  CreaBve  Commons   ANribute-­‐Share  Alike  3.0  Un-­‐ported  License  
  52. 52. Business  Model  Environment  Map  for  Apple’s  iPod     MISSION/VISION/PURPOSE:  “Put  a  Dent  in  the  Universe”/Create  Insanely  Great  Customer  Experience/“Think  Different”   ENVIRONMENT  
  53. 53. How  to  Use  the  Business  Model  Strategy  Map   1.  Plot  the  Gameboard  of  the  Business  Model  Strategy  Map  on  a   Poster,  e.g.,  3k  x  5k   2.  Place  the  Poster  on  a  Table   3.  Lay  Out  –  Especially  Using  Index  Cards,                Blank  Business  Cards,  or  Post-­‐Its  –     Mission/Vision/Purpose:  ………………………………              the  Business  Model  Strategy  Map   Enterprise  Engine   Growth  Engine   Value  Engine              In  Terms  of  the                3  Engine  Maps:   q Value  Engine  (VE)  Map   q Growth  Engine  (GE)  Map   q Enterprise  Engine  (EE)  Map   As  well  as   9  Strategy  Blocks  
  54. 54. Materials  for  Gameboard  of  Business  Model  Strategy  Map   (Non-­‐magneUc/MagneUc/StaUc)  
  55. 55. AlternaBve  Forms  of  Cards  for  Business  Model  Strategy  Map   (Non-­‐magneUc/MagneUc/StaUc)  
  56. 56. “Startups  also  have  a  true  north,   a  desBnaBon  in  mind:   creaBng  a  thriving  and  world-­‐changing  business.   I  call  it  a  startup’s  vision.   To  achieve  that  vision,  startups  employ  a     strategy  [Business  Model  Environment  Map],   which  includes     q  a  business  model,   q  a  product  road  map,   q  a  point  of  view  about  partners  and  compeBtors,  and   q  ideas  about  who  the  customers  will  be.”     Eric  Ries  in  his  book,  “The  Lean  Startup”  
  57. 57. Business  Model  Environment  Map   A  Gameboard  for   ConBnuous  InnovaBon  Under  CondiBons  of  Great  Uncertainty  
  58. 58. Business  Model  Environment  Map       MISSION/VISION/PURPOSE:  ………………………………………………………………………………………………………………………………………   ENVIRONMENT  
  59. 59. Business  Model  Environment  Map     MISSION/VISION/PURPOSE:  ………………………………………………………………………………………………………………………………………   Value  Crea>on:   Upstream   Value  Delivery:   Midstream   ENTERPRISE   ENGINE:   Build   GROWTH   ENGINE:   Measure   ENVIRONMENT   Value  Sharing  (Happiness):   Downstream   VALUE   ENGINE:   Learn  
  60. 60. Business  Model  Environment  Map:  Local  Industry  Factors     MISSION/VISION/PURPOSE:  ………………………………………………………………………………………………………………………………………   Value  Crea>on:   Upstream   Value  Delivery:   Midstream   ENTERPRISE   ENGINE:   Build   GROWTH   ENGINE:   Measure   Value  Sharing  (Happiness):   Downstream   VALUE   ENGINE:   Learn   Threat  of  SubsBtute  Products  or  Services   Bargaining  Power  of  Customers   Bargaining  Power  of  Suppliers   Threat  of  New  Entrants  
  61. 61. Business  Model  Environment  Map:  Global  Environmental  Factors     MISSION/VISION/PURPOSE:  ………………………………………………………………………………………………………………………………………   Value  Crea>on:   Upstream   Value  Delivery:   Midstream   ENTERPRISE   ENGINE:   Build   GROWTH   ENGINE:   Measure   Value  Sharing  (Happiness):   Downstream   VALUE   ENGINE:   Learn   Macro-­‐Economic  Influencers  (MEI):  Global  Economy   Market  Ecosystem  (ME):  Demand   Industry  Ecosystem  (IE):  Supply   Key  Trends  &  Complementors  (KTC):  PESTLIED  (-­‐/+)  
  62. 62.  Business  Model  Environment  Map:  “SWOT”  Factors     MISSION/VISION/PURPOSE:  ………………………………………………………………………………………………………………………………………   W:  Weaknesses   Value  Delivery:   Midstream   ENTERPRISE   ENGINE:   Build   GROWTH   ENGINE:   Measure   T:  Threats   Value  Sharing  (Happiness):   Downstream   VALUE   ENGINE:   Learn   O:  OpportuniBes   S:  Strengths   Value  Crea>on:   Upstream  
  63. 63.   #4ROD.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hNp://businessmodels.ning.com  &  hNp://twiNer.com/RodKuhnKing  

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