BM ZEN Philosophy Book for Innovators (English Edition)

BM ZEN
Philosophy
Book
for
Innovators
English Edition
2016. 5. 29.
Copyright @VisionArena 2015
Original Version Published on 29 April, 2016
www.businessmodelzen.com
www.businessmodelzen.co.kr
www.businessmodelforum.com
www.bmhealthcheck.com
http://industrysight.com
http://gpathwayz.com

STARTING
WITH WHY
http://businessmodelzen.com

Narrative starting with
Why defines meaning
of business model.


About business model,
the whole sum is bigger
than the sum of parts.

That’s why we need
integral thinking.


Good tools make
people to think over
about worth questions,
not simply to fill the
blanks.


Thinking drives change
of action. Action drives
difference of result.

PURPOSE

What we want, purpose
can not be achieved
with no purpose.

Purpose is for knowing
things that we shall not
do rather than that we
shall do.

Both purpose and
persistency make
excellence together.

Purpose means ‘Why'.
Even if ‘Why' is fixed,
‘How' should be
flexible.

The company without
its own purpose can
not make meaningful
innovation.

ACTION

We can learn things
right only with action.

Find hows rather than
faults.

Make things happen
rather than finding
hows.

That is innovator’s
mindset.

Why you should act
quickly with little
resources is to get in
the right way by help of
effective learning.

CUSTOMER

Compassion driving
you to serve customer
is the linchpin of
entrepreneurship.

People having the
same specific problem
you solve are your
customer.

Customer is alive and
breeding by its nature.
So we should not
suppose all things
going sensible, rational
or reasonable
like formula.

PROBLEM

Market is equal to the
sum of customer’s
problem.

Valuation of company is
equal to the sum of
customer’s problem
your company is
solving in the present
and future.

Market will be found
from unmet needs.
Market is not created
by your invention of
new customer problem.

Just ask problem to
customer, not solution.
Your company owe the
solution.

You can start
innovation journey
from dividing current
problem and solution.

When some problem
really exists, no one can
guarantee it is worth
solving.

Good problem is in the
sweet spot of that
problem...

is real, is recognized by
customer, is explored
to be solved by
customer, has very
little competing
solution providers and

has customer with
sufficient budget.

Every problems are laid
in-between other
problems.

The higher it is about
desire. The lower it is
about specific needs.

Which problem you
choose among them
makes different result.

Every problems lie on
the related buyer chain.
(buyer, user,
influencer,..)

One single problem can
be perceived quite
differently by person on
the other side of buyer
chain.

SOLUTION

Always (product)
solutions are more than
(customer) problems.

Often the solution can
be the source of
another new problem
(pain point) to
customer.

When you eventually
solve this newly
generated problem by
your solution, we can
call it excellent
solution.

Solution is made by
problem-solving idea
and implemented
product.

Even when we have
awesome idea, we
need craftsmanship to
make things happen.

The success of product
depends on the value
customer finally gets,
not the value you
provide.

Customer often use
product as unintended
way from maker.

This sort of unexpected
happening help you to
find hidden new
customers or new
problems.

Your attempt to
optimize your product
skipping customer
problem insight has its
definite limit.

The same product can
generate quite
different customer
perceptions.

ADVANTAGE

Competition is
disruptive by its own
nature.

Success over non-
competition is the most
desirable high.

Competition is
determined by the
customer problem
which I decide to solve.

Competitor is not
enemy.

Rather, it could be good
teacher to learn from.

It does not mean
competitor is your best
teacher.

True learning that can
lead to innovation lies
in-between customer
and me.

Advantage today and
unfair advantage
reaching future are
somewhat different.

Unfair advantage lies
on sustainable core
competency.

We can leverage this
core competency when
expanding to adjacent
markets.

EMPATHY

Customers often have
certain beliefs about
specific categories and
product lines.

This affect much on
empathy from
customer.

You have to sell the
problem before you sell
the product.

Customer search the
reasonable why
just after he/she
decides to buy
something at first
moment.

It is important to know
the critical decision
factor of customer’s
buying.

Which is often hidden.

We need to look at
problem and solution
separately.

A customer can
empathize with
problem but solution.

Likewise, a customer
can empathize with
solution but problem.

Emotional and cultural
approaches can lower
the barriers to empathy
from customer.

COOPERATOR

Cooperation makes it
possible to overcome
limitations of individual
being.

Competition and
cooperation are two
sides of the same coin.

However, it make
significantly different
results depending on
what between them
you expect from
others.

About cooperation, we
also need philosophy
and strategy.

The best performing
company are good at
cooperation as well as
competition.

The best imaginable
cooperation enables
reproducing good
influence mutually in
circulative manner.


When we can not
reduce the degree of
irreplaceability, we
must share a
strong vision built on
common destiny.

Cooperative equations
should be established
so that the benefits of
the common vision,
long horizon of
cooperation, enough
interaction, and
cooperation are higher
than the benefits of
betrayal.

The sense of
community sharing
value boosts long-term
cooperation.

PROFIT
MODEL

You generate profits for
better products rather
than make product just
for money.

Here is the order: sell,
survive, and grow.

Even if you can sell, it
does not mean you can
survive. Even if you can
survive, it does not
mean you can grow.

There are separate
factors to be
considered for each.

In order to design an
viable profit model, you
need to look into the
elements of the
customer problem
like frequency,
importance and etc.

Pricing should comes
from customers’ WTP
(willingness to pay).

WTP depends on
customer's perception
to product as well
as the the importance
of the problem to the
customer.

Profit model is the
output of creative
designing process
through connecting
buyer, payment time
and complementaries.

Growth is achieved not
by the company itself,
but by volunteers for
marketing. Which are
product, customer,
cooperator, and
employee.

Customer satisfaction
is not just a result of
sales, but a starting
point for virtuous cycle
of growth.

The company
sustaining the
relationship with
customer plays a game
on different level
compared to the one
approaching the
customer only with
product.

A powerful key
message draws
empathy from
customer and traction.

If one customer is
bringing two other
customers, your
business is already
equipped with the basis
for growth.

Growth through
entering new and
adjacent markets
should start from
understanding of self.

Seeking values and
core competency fit lie
in its core.

Even if you have a big
ambition to change the
world, actual growth
happens when you
carefully balance the
speed of execution
based on awareness of
reality.

To go far you need to
go together.

A growing business is
equipped with
excellence in both
competition and
cooperation.

FEEDBACK

Self-reflection is a
feature of a strong and
humble person.

Only the humble can
learn, only the learner
grows, and only those
who embrace
differences can walk
across the border.

Fast feedback
determines the speed
of learning.

BM ZEN
Philosophy
Book
2016. 5. 29.
for
InnovatorsCopyright @VisionArena 2015
Original Version Published on 29 April, 2016
www.businessmodelzen.com
www.businessmodelzen.co.kr
www.businessmodelforum.com
www.bmhealthcheck.com
http://industrysight.com
http://gpathwayz.com

BM ZEN Philosophy Book for Innovators (English Edition)

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