BUSINESS MODEL DEVELOPMENT FOR BLUE OCEAN STARTUPS

BUSINESS MODEL DEVELOPMENT
FOR BLUE OCEAN STARTUPS
A One-stop Toolkit for Discovering, Validating, and Managing Your Business Model
Dr. Rod Kuhn King
Visual Problem Solver, Inventor, and Magician

Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
Business Model Development (BMD)
Involves a
Visual Integration of
Best Practice Methodologies
Including
 Kim & Mauborgne’s Blue Ocean Strategy
 Steve Blank’s Customer Development
 Eric Ries’s Lean Startup
 Alex Osterwalder’s Business Model Canvas
 Rod King’s Wisdomsourcing Map

Is a More Cost-Effective Way
To Design, Launch, and Manage Businesses
Especially

Recognizes That
Business Plan Development (BPD)
Is an Ineffective and Unsuitable Approach
In a World of Rapid Commoditization,
Great Uncertainty, and Limited Resources
Such as in the World of

The Paradigm of
Assumes That Businesses
Should Be Conceived, Launched, and Managed
Like in Successful Magic Theater:
Customers Should Be Put First
In Order to Design and Deliver
Oh My God (OMG)-Customer Experiences

RAPID DEPLOYMENT AND LEARNING TIME AND MONEY SAVINGS
EASIER TO UNDERSTAND AND APPLY
CAN BE LINKED TO AND INTEGRATED
WITH ALL TOOLS FOR
CUSTOMER PROBLEM SOLVING
VERSATILE: APPLICABLE TO
SOFTWARE AND NON-SOFTWARE
BUSINESSES
FACILIITATES COLLABORATION
ADVANTAGES
OF
(BMD)
SCALABLE AND FRACTAL TOOLS
“FUNNER” TO USE
ADVANTAGES OF BUSINESS MODEL DEVELOPMENT
GURUS

(-): PAIN
(+): DELIGHT
Disruption Spot
Luxury Spot
Strategic
Choice
Key
OMG-Experience:
Undesirable Experience:
Profit Margin
No. of Direct Competitors
(Level of Commoditization)
Blue Ocean
(“Practical Impossibility”)
Luxury Spot
Disruption Spot
Green Ocean Red Ocean
JOURNEY OF
THE BLUE OCEAN STARTUP
3
100%
6
10%
20%
10 (Global)

(-): PAIN
(+): DELIGHT 2
Profit Margin
Direct Competitors
(Commoditization)
(+): DELIGHT 1
Industry Attractiveness
(Market Growth)
New
Market
Space
Existing
Market
SpaceKey
OMG-Experience:
GURUS
Market (Customer Problem/Goal): ……………………………………………
BLUE OCEAN STARTUP Cube
Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models

CUSTOMER CREATION PYRAMID FOR
 Delighters
 Satisfiers
 Dissatisfiers
 Delighters
 Satisfiers
 Dissatisfiers
 Delighters
 Satisfiers
 Dissatisfiers
NON-COMPETITORS
(Remote Industries/Economy:
Sectoral & Geographical Non-alternatives)
DIRECT COMPETITORS
(Core Sector/Strategic Groups:
Substitutes)
BUSINESS
(New) Customer Value Proposition/Market: …………………………………………………………………..
 NON- CUSTOMERS
o Profitable
o Break-even
o Unprofitable
Oh My God-
Product/Service
Why?
How?
Why?
How?
Why?
How?
INDIRECT COMPETITORS
(Peripheral/Adjacent Industries:
Alternatives/Value Chain Complements)
Diffusion (Word-of-mouth) Potential = Delighters + Satisfiers - Dissatisfiers
GURUS

CUSTOMER PERSPECTIVE (Voice of the Customer) BUSINESS PERSPECTIVE (Voice of the Business)
DEFINITION OF
OH MY GOD (OMG)-PRODUCT
GURUS
 An Oh My God (OMG)-Product delivers an uncontested
experience or value which is so remarkable that the large
majority of customers say: “Oh My God!”
 An Oh My God (OMG)-Product is an uncontested market
leader in a fast growing niche or market segment, that is, an
OMG-Product has a market share of at least three times that
of the nearest competitor as well as has a market growth rate
of at least 10% a year.
In addition, the OMG-Product has a profit margin of at least
20%.
DEFINITION OF
OH MY GOD (OMG)-PRODUCT

ARCHETYPAL STRATEGIES
FOR DESIGNING OH MY GOD (OMG)-PRODUCTS
GURUS
ARCHETYPAL
STRATEGIES
Existing Market (Segment)
(Compete on Existing Dimensions of
Customer Experience: Cost vs. Value or Diff.)
“Luxury Spot” Business Model:
High Differentiation & High Cost Strategy
 “Disruption Spot” Business Model:
Low Cost or Disruptive Innovation Strategy
 “Practical Impossibility” Business Model:
Emerging Blue Ocean Strategy
 “Sweet Spot” Business Model:
High Differentiation & Moderate Cost
Strategy
New Market (Universe)
(Compete on New Dimensions of
Customer Experience: Pain vs. Delight)
 “New Market” Business Model:
Ideal Market Disruption Strategy/
Ideal Blue Ocean Strategy/
Ideal Market Strategy
Zooming-in
Market Strategies
Zooming-out
Market Strategy

GURUS
PROBLEM-SOLUTION
MAP
PROBLEM-SOLUTION MAP
Visually Facilitate Collaboration, Ideas Management, Creativity, and Customer Problem Solving
PROBLEM SOLUTION

“PUSH” BUSINESS MODEL DEVELOPMENT “PULL” BUSINESS MODEL DEVELOPMENT
GURUS
 Supply-oriented Approach
 Product-centric
 Waterfall Model: Linear Product Development
 Production Line/Chain Model
 Classic Competitive Strategy
 Traditional Business Plan
 Traditional Strategic Plan
 Traditional Balanced Scorecard
 Long Cycle for Product Development
 High Risk of Product-Market Misfit
 Suitable in a Routine/Predictable World of Little or No Risk
as well as Great Access to Resources
 Demand-oriented Approach
 Customer-centric
 Customer Development Model (Steve Blank): Iterative
 Lean Startup Model (Eric Ries): Continuous Learning And
Rapid Prototyping/Deployment
 Blue Ocean Startup (Rod King)
 Blue Ocean Strategy
 Disruptive Innovation Strategy
 Crowdsourcing
 QFD/Voice of the Customer
 Six Sigma/Lean Thinking/
Agile Development/Just-In-Time
 Concurrent Engineering
“PUSH” vs. “PULL”
BUSINESS MODEL
DEVELOPMENT
“PUSH” vs. “PULL”

GURUS
BUSINESS MODEL
DEVELOPMENT
(BMD) MAP
4 STAGES IN THE WEB OF
1. BUSINESS MODEL PROBLEM & DISCOVERY 2. BUSINESS MODEL VALIDATION
3. BUSINESS MODEL EXECUTION 4. BUSINESS MODEL MANAGEMENT

ITENNBUSINESS MODEL
PROBLEM & DISCOVERY
What’s the evidence?
GURUS
BUSINESS MODEL PROBLEM & DISCOVERY

ITENNBUSINESS MODEL
VALIDATION
GURUS
BUSINESS MODEL VALIDATION

ITENNBUSINESS MODEL
EXECUTION
GURUS
BUSINESS MODEL EXECUTION

ITENNBUSINESS MODEL
MANAGEMENT
GURUS
BUSINESS MODEL MANAGEMENT

GURUS
THE 2 WORLDS OF
BUSINESS MODEL
DEVELOPMENT
THE 2 WORLDS OF BUSINESS MODEL DEVELOPMENT
BUSINESS MODEL PROBLEM & DISCOVERY BUSINESS MODEL VALIDATION
BUSINESS MODEL EXECUTION BUSINESS MODEL MANAGEMENT
WORLD OF BUSINESS MODEL SEARCH
(For ‘Startups/Entrepreneurs/Founders’)
WORLD OF BUSINESS MODEL EXECUTION
(For ‘Established Companies/Accountants’)

GURUS
PROBLEM UNIVERSE GOAL UNIVERSE
EXECUTION UNIVERSE LIFESPACE RESOURCES
(Internal/External)
WISDOMSOURCING
CANVAS
Theme:
WISDOMSOURCING CANVAS
A Zoomable Jigsaw Puzzle for Collaboratively Solving Problems and Presenting Solutions
Date: ……………………..……

BUS. MODEL DEVELOPMENT FOR THE BLUE OCEAN STARTUP
Theme: ………………………………………………………………………………………… Date: …………………..…..
BUSINESS MODEL DEVELOPMENT (BMD) FOR THE BLUE OCEAN STARTUP
GENERIC ACTIVITIES FOR CORE & PERIPHERAL INDUSTRIES BUSINESS MODEL (CUSTOMER/PRODUCT)
WISDOMSOURCING
CANVAS
COLLABORATIVE PROBLEM SOLVING TASKS FOR
PROCESS/INDUSTRY/BUSINESS MODEL/PRODUCT
PROBLEM/
DISCOVERY
VALIDA-
TION
EXECU-
TION
MANAGE-
MENT
PROBLEM UNIVERSE:
GLOBAL PROBLEM
MAPPING
Collect/Define/Measure/Verify Problems, Pains, and Trade-offs
in System for Customer Segments/Personas
Organize/Group/Analyze Problems, Pains, and Trade-offs
Prioritize/Verify Big Urgent Market Pain (BUMP)
GOAL UNIVERSE:
GLOBAL GOAL
& STRATEGY
MAPPING
Collect/Generate/Verify OMG-Goals, Objectives, Strategies,
Tactics, Targets & Processes for Eliminating BUMP
Organize/Group/Generate a Hierarchy of OMG-Goals,
Objectives, Strategies, Tactics, Targets & Processes
Prioritize/Verify OMG-Goals, Objectives, Strategies, Tactics,
Targets & Processes and Synthesize into a Plan/Prototype
EXECUTION UNIVERSE:
GLOBAL STRATEGY
EXECUTION
Implement, Control, and Validate Plan/Prototype Reflecting
OMG-Goals, Objectives, Strategies, Tactics, Targets & Processes.
Prepare Project Charter and Form Project Team with Diverse
Members (Customers and Non-customers)
Mission/Vision: …………………….………………………………………………….
GURUS
Market Segment (Customer Problem/Goal): ……………………….….…

MEMBER 4
MEMBER 6
MEMBER 1
MEMBER 5
MEMBER …
MEMBER 3
PROJECT TEAM FOR:
MEMBER 7
MEMBER 2
PROJECT TEAM FOR THE BLUE OCEAN STARTUPGURUS

Ron Johnson
Phillip Schiller
Steve Jobs
Bruce Sewell
Peter Oppenheimer
Tim Cook
APPLE INC.:
Executives
(2010)
Scott Forstall
Jonathan Ive
PROJECT TEAM Template: Example
EXECUTIVE TEAM FOR APPLE INC.
GURUS

MEMBER/CONTACT 4
MEMBER/CONTACT 6
MEMBER/CONTACT 1
MEMBER/CONTACT 5
MEMBER/CONTACT …
MEMBER/CONTACT 3
SOCIAL NETWORK/
CONTACTS FOR:
MEMBER/CONTACT 7
MEMBER/CONTACT 2
SOCIAL NETWORK FOR THE BLUE OCEAN STARTUPGURUS

The Methodology of
Seamlessly Integrates
Major Breakthrough Ideas and Tools
In Customer Development,
Collaboration, Business Creativity,
Strategy, Innovation, and
Performance Management
Over the Last 50 Years

Helps to Reduce
the Risk of Failure of Businesses
Especially Scalable Startups
By Facilitating
the Discovery, Validation, Execution,
and Management of
Business Models

Also Helps Individuals and Teams
To Deploy
Any Business Process or Methodology
In a
Simpler, Faster, and Funner Way

ITENN
E: ENVIRONMENT PROBLEMS
 Inadequate Profit Margin/Cash
Flow/Return On Investment
 Hyper-competition
 Commoditization: Red Ocean
 Ineffective Partners; Conflicts
 Volatile/Chaotic Environment
P: PROCESS PROBLEMS
 Incomplete Global Value Chain/
Business Model; Waste
 Inadequate Business Processes:
Business Model Development/
Innovation/Strategy/Execution
 Ineffective Marketing/Sales
S: SUPPLIER/MATERIAL
PROBLEMS
 Inadequate Suppliers
 Inadequate Materials
R: RETAILER/DISTRIBUTOR/
CHANNEL PROBLEMS
 Inadequate Channels/
Distributors/Logistics
 Inadequate Branding/Marketing/
Advertising
O: OUTPUT (PRODUCT/
SERVICE) PROBLEMS
 Product-Market Misfit
 Service-Market Misfit
 Ineffective Pricing Model/
Strategy
 Slow Prototyping/Deployment
 Unacceptable Defects/Design
E: EMPLOYEE/KNOWLEDGE
ASSETS/CULTURE PROBLEMS
 Unrealistic Vision/Forecast/Target
 Ineffective Team/Culture
 Ineffective Business Strategy
 Ineffective Product Development
 Ineffective Strategic Alignment
 Inadequate Learning/Insights
WHY DO BUSINESSES
(STARTUPS) FAIL AND DIE?
INEFFECTIVE/INADEQUATE
 Customer Value Proposition
 Business Value (Experience)
 Customer Value (Experience)
 Competitive Advantage
M: MACHINERY/EQUIPMENT/
FACILITY/LOCATION PROBLEMS
 Inadequate Machinery/
Equipment/Tools
 Inadequate Technology
 Inadequate Infrastructure
 Inadequate Location
C: CUSTOMER/CONSUMER &
RELATIONSHIP PROBLEMS
 Inadequate No. of Customers
 Inadequate Market Growth Rate
 Inadequate Customer Relation-
ships/Loyalty
 Inadequate Collaboration/‘VoC’
WHY DO BUSINESSES (STARTUPS) FAIL AND DIE?GURUS

WHY?
HOW MANY? HOW MUCH?
WHAT (JOBS)?
HOW?
WHAT NEXT?
WHERE?
CUSTOMER JOBS TO BE DONE
(JBTD)
WHEN?
WHO?
CUSTOMER JOBS TO BE DONE (JBTD)
GURUS

ITENNCOMPETITORS’
PRODUCTS/SERVICES
GURUS
COMPETITORS’ PRODUCTS/SERVICES

WHY?
HOW MANY? HOW MUCH?
WHAT (PROBLEMS)?
HOW?
WHAT NEXT?
WHERE?
COMPETITORS’ PROBLEMS:
 Weaknesses
 Threats
WHEN?
WHO?
COMPETITORS’ PROBLEMS
GURUS

WHY?
HOW MANY? HOW MUCH?
WHAT (PROBLEMS/PAIN)?
HOW?
WHAT NEXT?
WHERE?
CUSTOMER PROBLEMS (PAIN)
WHEN?
WHO?
CUSTOMER PROBLEMS
GURUS

WHY?
HOW MANY? HOW MUCH?
WHAT (PROBLEMS)?
HOW?
WHAT NEXT?
WHERE?
BUSINESS PROBLEMS (PAIN)
WHEN?
WHO?
BUSINESS PROBLEMS
GURUS

CAUSE 4
CAUSE 6
CAUSE 1
CAUSE 5
CAUSE …
CAUSE 3
ROOT-CAUSE MAP
-------------------------------
MAIN PROBLEM (EFFECT):
CAUSE 7
CAUSE 2
ROOT-CAUSE MAP
GURUS

WHY (MISSION)?
HOW MANY? HOW MUCH?
WHAT (VISION)?
HOW?
WHAT NEXT?
WHERE?
BUSINESS VISION
WHEN?
WHO?
BUSINESS VISION
GURUS

GURUS
WHAT IS A BUSINESS MODEL?
A Business Model or Value Chain
is a Schema of
How an Organization or Industry Operates
to Deliver Value
Especially Profit and
Oh My God-Customer Experiences

ITENN
ENVIRONMENT
UNIVERSAL MODEL OF A SYSTEM
GURUS
SYSTEM
OUTPUTPROCESSING
INPUT
(Elements)
FEEDBACK (“Pivot”/Learning Cycle)

ITENN
ENVIRONMENT
UNIVERSAL BUSINESS SYSTEM
GURUS
SUPPLIERS/
MATERIALS
Partners CompetitorsInvestor
CUSTOMERS/
CONSUMERS
Government Society
RETAILERS/
CHANNELS
BUSINESS
OUTPUT
(Product/
Service)
PROCESSING
(PROCESSES)
INPUT
(EMPLOYEES/
MACHINERY)
FEEDBACK (“Pivot”/Learning Cycle)

INPUT (ELEMENT) 4 : X4
INPUT (ELEMENT) 1: X1
INPUT (ELEMENT) … : X…
VISUAL EQUATION FOR
A SYSTEM
-------------------------------
OUTCOME OR OUTPUT (Y)
=
FUNCTION OF INPUTS (X)
VISUAL EQUATION FOR A SYSTEM
GURUS

ITENNE: ENVIRONMENT P: PROCESSES
S: SUPPLIERS/MATERIALS
R: RETAILERS/DISTRIBUTORS/
CHANNELS
O: OUTPUTS (PRODUCT/
SERVICE)
E: EMPLOYEES/KNOWLEDGE
ASSETS/CULTURE
GLOBAL VALUE CHAIN:
OUTCOMES/GOALS
 Customer Value Proposition (Job)
 Business Value = Revenue/Cost
 Customer Value (Experience) =
Customer Delight/Customer Pain
FACILITY/LOCATION
C: CUSTOMERS/CONSUMERS &
RELATIONSHIPS
GLOBAL VALUE CHAIN
Zoomable Elements of a Value Chain or Business Model: “SEMPORCE”
GURUS

ITENNE: ENVIRONMENT WASTE P: PROCESS WASTE
S: SUPPLIER/MATERIAL WASTE
CHANNEL WASTE
O: OUTPUT (PRODUCT/
SERVICE) WASTE
ASSETS/CULTURE WASTE
GLOBAL VALUE CHAIN
WASTE:
OUTCOMES/DEFECTS
FACILITY/LOCATION WASTE
C: CUSTOMER/CONSUMER WASTE
GLOBAL VALUE CHAIN WASTEGURUS

ITENNE: ENVIRONMENT HYPOTHESES P: PROCESS HYPOTHESES
S: SUPPLIER/MATERIAL
HYPOTHESES
CHANNEL HYPOTHESES
O: OUTPUT (PRODUCT/
SERVICE) HYPOTHESES
ASSETS/CULTURE HYPOTHESES
GLOBAL VALUE CHAIN
HYPOTHESES:
EXPECTATIONS FOR
FACILITY/LOCATION HYPOTHESES
C: CUSTOMER/CONSUMER
HYPOTHESES
GLOBAL VALUE CHAIN HYPOTHESES
Formulate, Test, and Validate Hypotheses for Elements of Value Chain or Business Model
GURUS

ITENNGLOBAL VALUE CHAIN:
GOALS
GURUS
GOALS OF GLOBAL VALUE CHAIN
Collaboratively List and/or Sketch Goals Including Elements of Vision, Value Proposition,
Business Value, and Customer Value

ITENN
SUPPLIERS
Collaboratively List and/or Sketch Suppliers/Materials
GURUS

ITENN
E: EMPLOYEES/
KNOWLEDGE ASSETS
EMPLOYEES
Collaboratively List and/or Sketch Employees/Knowledge Assets
GURUS

ITENN
M: MACHINERY/
EQUIPMENT/FACILITY
MACHINERY
Collaboratively List and/or Sketch Machinery/Equipment/Facilities
GURUS

ITENN
P: PROCESSES/STRATEGIES
PROCESSES
Collaboratively List and/or Sketch Processes/Strategies
GURUS

ITENN
O: OUTPUTS
(PRODUCTS/SERVICES)
OUTPUTS
Collaboratively List and/or Sketch Outputs (Products/Services)
GURUS

ITENN
R: RETAILERS/CHANNELS/
DISTRIBUTORS
RETAILERS
Collaboratively List and/or Sketch Retailers/Channels/Distributors
GURUS

ITENN
C: CUSTOMERS/
CONSUMERS
CUSTOMERS
Collaboratively List and/or Sketch Customers/Consumers
GURUS

ITENN
E: ENVIRONMENT
ENVIRONMENT
Collaboratively List and/or Sketch Elements of Environment:
Partners/Complementors/Competitors/Industries/Investors/Government/NGOs/Enemies/Society
GURUS

ITENNE: ENVIRONMENT
• Competitors/Industry/Economy
• Partners/Complementors
• Investors/Board of Directors
• Public/Society/Enemies/Non-customer
• Government/NGOs/Environment
P: PROCESSES
• Preparing/Searching/Discovering
• Purchasing/Leasing
• Receiving/Delivering/Learning/Installing
• Using/Sharing/Complementing
• Maintaining/Storing/Managing/Disposing
S: SUPPLIERS/MATERIAL E: EMPLOYEES/KNOWLEDGE
ASSETS/CULTURE
GLOBAL VALUE CHAIN
(PERFORMANCE DASHBOARD)
OUTCOMES/GOALS
FACILITY/LOCATION
C: CUSTOMERS & CONSUMERS
RELATIONSHIPS
 Core Customers/Users/Influencers
 Peripheral Customers/Users/Influ.
 Remote Customers/Users/Influ.
GENERIC ELEMENTS OF GLOBAL VALUE CHAIN
Collaboratively List, Sketch, Organize, and/or Manage Metrics for Elements of Value Chain
GURUS
CHANNELS
 Retailers/Distributors/Channels
 Place/Warehousing/Location
 Promotion/Buzz
 Branding/Marketing
 Advertising
 Selling/Relationship Management
SERVICE)
 Product/Service
 Pricing
 Packaging
 Display
 Design
 Plan

ITENNE: ENVIRONMENT
 Key Partners (KP)
P: PROCESSES
 Key Activities (KA)
 Key Resources (KR) – Suppliers
CHANNELS
 Channels (CH)
SERVICE)
 Key Resources (KR) – Product/
Service
ASSETS/CULTURE
 Key Resources (KR) – Employees
GLOBAL VALUE CHAIN
FOR “BUSINESS MODEL
CANVAS”: GOALS
 Customer Value Proposition (VP)
 Revenue Streams (R$)
 Cost Structure (C$)
FACILITY/LOCATION
 Key Resources (KR) – Machinery
RELATIONSHIPS
 Customer Segments (CS)
 Customer Relationships (CR)
GLOBAL VALUE CHAIN FOR “BUSINESS MODEL CANVAS”
Visually Observe Similarities and Differences Between Global Value Chain & Business Model Canvas
GURUS

ITENNE: ENVIRONMENT
 Key Partners (KP)
 Record Companies
 Original Equipment Manufactur-
ers (OEMs)
P: PROCESSES
 Key Activities (KA):
 Hardware Design
 Software Design
 Marketing
 Key Resources (KR) – Suppliers
CHANNELS
 Channels (CH)
 iTunes Store
 www.apple.com
 Apple Stores
 Selected Retail Stores
SERVICE)
 Key Resources (KR) – Product/
Service
 iPod Hardware
 iTunes Software
 Content & Agreements
ASSETS/CULTURE
 Key Resources (KR) – Employees
 Staff
 Apple Brand
APPLE INC.: iPod (2001)
 Customer Value Proposition (VP):
“A Thousand Songs in Your Pocket”
 Revenue Streams (R$): iPod Hard-
ware; iTunes Store; Commissions
 Cost Structure (C$): Employees;
Manufacturing; Marketing & Sales
FACILITY/LOCATION
 Key Resources (KR) – Machinery
RELATIONSHIPS
 Customer Segments (CS)
 Luxury Spot; Mass Market
 Customer Relationships (CR)
 “Lovemark”
 Switching Costs
GLOBAL VALUE CHAIN FOR APPLE INC.: iPod
Visually Observe Similarities and Differences Between Global Value Chain & Business Model Canvas
GURUS

FOCUS “PIVOT” PROCESS: VALUE INNOVATION TACTICS (What if … E.R.I.C.?) OUTCOME:
FUTURE
(DISRUPTIVE)
BUS. MODEL
BUSINESS/
GLOBAL VALUE CHAIN
GIVEN BUSINESS
MODEL
E:
Eliminate
R:
Reduce/Replace
I:
Increase
C:
Create
INPUT (SUPPLIERS/
MATERIALS/ENERGY)
ELEMENTS
(EMPLOYEES/
MACHINERY)
Staff/
Apple Brand
PROCESS
(Bus. Process/
Strategies)
Hardware Design/
Software Design/
Marketing
OUTPUTS:
PRODUCT/SERVICE
iPod Hardware/
iTunes Software/
Content &
Agreements
RETAILERS/DISTRIB./
CHANNELS
iTunes; apple.com;
Apple Stores/Others
CONSUMERS/
CUSTOMERS (Experience)
Luxury Spot/
Mass Market
ENVIRONMENT
- COMPETITORS (Industry)
- PARTNERS (Complementors)
- INVESTORS (Revenue/Cost)
- PUBLIC/SOCIETY/Enemies
- GOVERNMENT/NGOs
Record Companies/
Original Equipment
Manufacturers
(OEMs)/…
BUSINESS MODEL PIVOT FOR APPLE INC.: iPod - 2001
SYSTEM
(INDUSTRY/BUSINESS) GURUS
Market Segment (Customer Problem): ‘Fragmented’ Music ExperienceMission/Vision: “… Apple leads the digital music revolution. …”

HYPOTHESES PROBLEMS/
PAIN
(WEAKNESS-
ES/THREATS)
GOALS/Objectives/
Strategies/Tactics/
Initiatives/
Projects
Key Metrics/
Performance
Indicators/
Targets
Business Experiences (Impacts)
Description of BUSINESS/
GLOBAL VALUE CHAIN
Delight
(Revenue)
Pain
(Cost)
S: Suppliers
E: Employees/
Knowledge Assets
Staff/
Apple Brand/
Staffing Cost
M: Machinery/
Infrastructure
Hardware Design/
Software Design/
Marketing
P: Processes Marketing
Sales
Marketing Cost
Sales Cost
O: Outputs
(Product/Service)
iPod Hardware/
iTunes Software/
Content & Agreements
R: Retailers/
Distributors/
Channels
iTunes; apple.com;
Apple Stores/
Other Retailers
C: Consumers/
Customers
Luxury Spot/
Mass Market
High Revenue
(Hardware)
E: Environment Record Companies/
Original Equipment
Manufacturers (OEMs)/…
Commissions
VALUE CHAIN
(“SEMPORCE”)
BUSINESS
ECOSYSTEM
Customer Value Proposition:
“A Thousand Songs in Your Pocket”
BUSINESS VALUE
(PROFIT MARGIN)
BUSINESS MODEL PLAN FOR APPLE INC.: iPod - 2001
GURUS
Mission/Vision: “… Apple leads the digital music revolution. …” Market Segment (Customer Problem): ‘Fragmented’ Music Experience

FOCUS
BUSINESS/
GLOBAL VALUE CHAIN
DESCRIPTION
INPUT (SUPPLIERS/
MATERIALS/ENERGY)
ELEMENTS
(EMPLOYEES/
MACHINERY)
PROCESS
(Bus. Process/
Strategies)
OUTPUTS:
PRODUCT/SERVICE
RETAILERS/DISTRIB./
CHANNELS
CONSUMERS/
ENVIRONMENT
- GOVERNMENT/NGOs
Mission/Vision: …………………….………………………………………………….
BUSINESS MODEL MATRIX: Template
SYSTEM

FOCUS EVOLUTION OF BUSINESS MODEL IDEAL BUSINESS
MODEL
BUSINESS/
GLOBAL VALUE CHAIN
DESCRIPTION/
INDUSTRY
PAST
BUSINESS MODEL
PRESENT
BUSINESS MODEL
FUTURE
BUSINESS MODEL
INPUT (SUPPLIERS/
MATERIALS/ENERGY)
ELEMENTS
(EMPLOYEES/
MACHINERY)
PROCESS
(Bus. Process/
Strategies)
OUTPUTS:
PRODUCT/SERVICE
RETAILERS/DISTRIB./
CHANNELS
CONSUMERS/
ENVIRONMENT
- GOVERNMENT/NGOs
Mission/Vision: …………………….………………………………………………….
BUSINESS MODEL EVOLUTION
SYSTEM

FOCUS BUSINESS MODEL LIFECYCLE: Five Stages in the Life of a Business Model
BUSINESS/
GLOBAL VALUE CHAIN
DESCRIPTION/
INDUSTRY
BIRTH GROWTH MATURITY DECLINE DEATH
INPUT (SUPPLIERS/
MATERIALS/ENERGY)
ELEMENTS
(EMPLOYEES/
MACHINERY)
PROCESS
(Bus. Process/
Strategies)
OUTPUTS:
PRODUCT/SERVICE
RETAILERS/DISTRIB./
CHANNELS
CONSUMERS/
Early Adopters/
Innovators
Early Majority Late Majority Overserved/
Underserved
Switchers
ENVIRONMENT
- GOVERNMENT/NGOs
BUSINESS MODEL LIFECYCLE
SYSTEM

FOCUS BUSINESS MODEL (CUSTOMER/PRODUCT) DEVELOPMENT DASHBOARD LEARNING:
Findings/
Insights/Deci-
sions/Actions
BUSINESS/
GLOBAL VALUE CHAIN
DESCRIPTION/
INDUSTRY
BUSINESS
MODEL PROB.
& DISCOVERY
BUSINESS
MODEL
VALIDATION
BUSINESS
MODEL
EXECUTION
BUSINESS
MODEL
MANAGEMENT
INPUT (SUPPLIERS/
MATERIALS/ENERGY)
ELEMENTS
(EMPLOYEES/
MACHINERY)
PROCESS
(Bus. Process/
Strategies)
OUTPUTS:
PRODUCT/SERVICE
RETAILERS/DISTRIB./
CHANNELS
CONSUMERS/
Early Adopters/
Innovators
Early Majority Late Majority Loyal/Overserved/
Underserved
ENVIRONMENT
- GOVERNMENT/NGOs
BUSINESS MODEL DEVELOPMENT (BMD) MATRIX: Template
SYSTEM

FOCUS BUSINESS MODEL (CUSTOMER/PRODUCT) DEVELOPMENT DASHBOARD LEARNING:
Findings/
Insights/Deci-
sions/Actions
BUSINESS/
GLOBAL VALUE CHAIN
DESCRIPTION/
INDUSTRY
BUSINESS
MODEL PROB.
& DISCOVERY
BUSINESS
MODEL
VALIDATION
BUSINESS
MODEL
EXECUTION
BUSINESS
MODEL
MANAGEMENT
INPUT (SUPPLIERS/
MATERIALS/ENERGY)
ELEMENTS
(EMPLOYEES/
MACHINERY)
PROCESS
(Bus. Process/
Strategies)
Envision, Brain-
storm, Search for,
and/or Discover
Business Model
Validate Business
Model
Launch/Scale
Business Model;
Develop Mar-
keting Roadmap
Build Company
Culture;
Grow Company
OUTPUTS:
PRODUCT/SERVICE
Minimum Pro-
duct: Desirable/
Viable/Feasible
Product-Market
Fit: Prototype/
Pilot/No-frills
Product-Solution
Fit: Full Soft-
ware/ Hardware
More Fully Featured
Product: Software/
Hardware
RETAILERS/DISTRIB./
CHANNELS
CONSUMERS/
Early Adopters/
Innovators
Early Majority Late Majority Loyal/Overserved/
Underserved
ENVIRONMENT
- GOVERNMENT/NGOs
BUSINESS MODEL DEVELOPMENT (BMD) MATRIX: Populated
SYSTEM

FOCUS BUSINESS MODEL TRENDS IN AN ECONOMY LEARNING:
Findings/
Insights/Deci-
sions/Actions
BUSINESS/
GLOBAL VALUE CHAIN
DESCRIPTION/
INDUSTRY
PHYSICAL
SECTOR
SOCIAL
SECTOR
KNOWLEDGE
SECTOR
SPIRITUAL
SECTOR
INPUT (SUPPLIERS/
MATERIALS/ENERGY)
ELEMENTS
(EMPLOYEES/
MACHINERY)
PROCESS
(Bus. Process/
Strategies)
OUTPUTS:
PRODUCT/SERVICE
RETAILERS/DISTRIB./
CHANNELS
CONSUMERS/
ENVIRONMENT
- GOVERNMENT/NGOs
BUSINESS MODEL TRENDS
SYSTEM

FOCUS COMPETITORS/SECTOR/INDUSTRY FUTURE
(DISRUPTIVE/
IDEAL)
BUS. MODEL
BUSINESS/
GLOBAL VALUE CHAIN
GIVEN
BUS. MODEL
BUS. MODEL 1: BUS. MODEL 2: BUS. MODEL 3: BUS. MODEL
…
INPUT (SUPPLIERS/
MATERIALS/ENERGY)
ELEMENTS
(EMPLOYEES/
MACHINERY)
PROCESS
(Bus. Process/
Strategies)
OUTPUTS:
PRODUCT/SERVICE
RETAILERS/DISTRIB./
CHANNELS
CONSUMERS/
ENVIRONMENT
- GOVERNMENT/NGOs
Mission/Vision: …………………….………………………………………………….
INDUSTRY BUSINESS MODELS
SYSTEM

FOCUS STRATEGY: How must the business model get there? Where must
business
model go?BUSINESS/
GLOBAL VALUE CHAIN
Where currently is
business model?
INPUT (SUPPLIERS/
MATERIALS/ENERGY)
ELEMENTS
(EMPLOYEES/
MACHINERY)
PROCESS
(Bus. Process/
Strategies)
OUTPUTS:
PRODUCT/SERVICE
RETAILERS/DISTRIB./
CHANNELS
CONSUMERS/
ENVIRONMENT
- GOVERNMENT/NGOs
Mission/Vision: …………………….………………………………………………….
BUSINESS MODEL PLANNING
SYSTEM

HYPOTHESES PROBLEMS/
PAIN
(WEAKNESS-
ES/THREATS)
GOALS/Objectives/
Strategies/Tactics/
Initiatives/
Projects
Key Metrics/
Performance
Indicators/
Targets
Business Experiences (Impacts)
Description of BUSINESS/
GLOBAL VALUE CHAIN
Delight
(Revenue)
Pain
(Cost)
S: Suppliers
E: Employees/
Knowledge Assets
M: Machinery/
Infrastructure
P: Processes
O: Outputs
(Product/Service)
R: Retailers/
Distributors/
Channels
C: Consumers/
Customers
E: Environment
VALUE CHAIN
(“SEMPORCE”)
BUSINESS
ECOSYSTEM
Customer Value Proposition (Job To Be Done): BUSINESS VALUE
(PROFIT MARGIN)
GURUS
Mission/Vision: …………………….…………………………………………………. Market Segment (Customer Problem/Goal): ……………………….….…
BUSINESS MODEL PLAN

FOCUS PROCESS: SWOT Analysis FUTURE
(DISRUPTIVE/
IDEAL)
BUS. MODEL
BUSINESS/
GLOBAL VALUE CHAIN
GIVEN
BUS. MODEL
S:
Strengths
W:
Weaknesses
O:
Opportunities
T:
Threats
INPUT (SUPPLIERS/
MATERIALS/ENERGY)
ELEMENTS
(EMPLOYEES/
MACHINERY)
PROCESS
(Bus. Process/
Strategies)
OUTPUTS:
PRODUCT/SERVICE
RETAILERS/DISTRIB./
CHANNELS
CONSUMERS/
ENVIRONMENT
- GOVERNMENT/NGOs
Mission/Vision: …………………….………………………………………………….
BUSINESS MODEL SWOT ANALYSIS
SYSTEM

FOCUS “PIVOT” PROCESS: VALUE INNOVATION TACTICS (What if … E.R.I.C.?) FUTURE
(DISRUPTIVE/
IDEAL)
BUS. MODEL
BUSINESS/
GLOBAL VALUE CHAIN
GIVEN
BUS. MODEL
E:
Eliminate
R:
Reduce/Replace
I:
Increase
C:
Create
INPUT (SUPPLIERS/
MATERIALS/ENERGY)
ELEMENTS
(EMPLOYEES/
MACHINERY)
PROCESS
(Bus. Process/
Strategies)
OUTPUTS:
PRODUCT/SERVICE
RETAILERS/DISTRIB./
CHANNELS
CONSUMERS/
ENVIRONMENT
- GOVERNMENT/NGOs
Mission/Vision: …………………….………………………………………………….
BUSINESS MODEL PIVOT
SYSTEM

FOCUS “PIVOT” PROCESS: VALUE INNOVATION TACTICS (What if … E.R.I.C.?) FUTURE
(DISRUPTIVE/
IDEAL)
BUS. MODEL
BUSINESS/
GLOBAL VALUE CHAIN
GIVEN
BUS. MODEL
E:
Eliminate
R:
Reduce
I:
Increase
C:
Create
INPUT (SUPPLIERS/
MATERIALS/ENERGY)
Waste/Defects Waste/Defects/
Energy
Efficiency of Logistics/
Digitalization/
Partnerships/
Collaborations
ELEMENTS
(EMPLOYEES/
MACHINERY)
Unprofitable Assets/
Obsolete equip-
ment/machinery/
Manual/Travel
Assets/Training/
Staff/Compensation/
Materials/Meals/
Fuel/Travel/Location
Assets/IP/Training/
Productivity/IT/
Knowledge/
Motivation/Security
Assets/IP/
Outsourcing/
Competence/
Platform
PROCESS
(Bus. Process/
Strategies)
Delays/Complexity/
Bottlenecks/Waste/
Defects/Risks/
Uncertainties
Delays/Complexity/
Bottlenecks/Waste/
Risks/Uncertainties/
Marketing/Debt
Efficiency/Speed/
Agility/Flexibility/
Reliability/Accuracy/
Customization
Digitalization/
Integration/
Pricing unit/
KPIs
OUTPUTS
(PRODUCT/
SERVICE)
Dissatisfiers: Cost/
Concessions/
Complexity/
Delays/Aging
Delighters: Quality
Dissatisfiers: Cost/
Maintenance/Range/
Choice/Complexity
Dissatisfiers: Cost
Delighters/Value:
Convenience/Prestige/
Useability/Brand
Delighters:
Theme/Thrill/
Fun/Music/
Art/Adventure
RETAILERS/DISTRIB./
CHANNELS
Distribution outlets/
Retailers
Marketing/Ad.
Marketing/Ad./Service
Website/Word-
of-mouth
CONSUMERS/
Dissatisfiers:
Pain/Objections/
Complaints
Dissatisfiers:
Pain/Objections/
Complaints
Delighters/Key
metrics: Quality/Pro-
ductivity/Profitability
Demand/Goal:
Niches/Exper./
Crowdsourcing
ENVIRONMENT
- GOVERNMENT/NGOs
Industry barriers/
constraints/
Competition/
Risks/Threats/
Uncertainties
Environmental Risks/
Competition/
Risks/Threats/
Uncertainties/
Environmental
degradation
Profit (Margin)/ROI/
Share price/
Cash flow velocity/
Tracking/
Entry barriers/
Env. Friendliness
Partnerships/
Mergers/
Competitive
Intelligence/
Threshold ev./
Entry barriers
Mission/Vision: …………………….………………………………………………….
BUSINESS MODEL PIVOT: Scenarios
SYSTEM
(INDUSTRY/BUSINESS)
Market Segment (Customer Problem/Goal):
Increase or Appropriately Reduce CUSTOMER VALUE QUOTIENT
GURUS

SYSTEM ADJACENT (PERIPHERAL/ALTERNATIVE) BUSINESS MODELS FUTURE
(VISIONARY/
IDEAL)
BUS. MODEL
BUSINESS/
GLOBAL VALUE CHAIN
PRESENT/CORE
BUSINESS MODEL
Adjacency
1:
Adjacency
2:
Adjacency
3:
Adjacency
…
S: Suppliers
E: Employees/
Knowledge Assets
M: Machinery/
Infrastructure
P: Processes
O: Outputs
(Product/Service)
R: Retailers/
Distributors/
Channels
C: Consumers/
Customers
E: Environment
VALUE CHAIN
(“SEMPORCE”)
CORE Customer Value Proposition (Job To Be Done):
BUSINESS MODEL ADJACENCIES
GURUS

FOCUS SIX SIGMA PROCESS
BUSINESS/
GLOBAL VALUE CHAIN
C:
Collect Info’
D:
Define Problem
M:
Measure
A:
Analyze
G:
Generate
I:
Improve
C:
Control
INPUT (SUPPLIERS/
MATERIALS/ENERGY)
ELEMENTS
(EMPLOYEES/
MACHINERY)
PROCESS
(Bus. Process/
Strategies)
OUTPUTS:
PRODUCT/SERVICE
(Defects)
RETAILERS/DISTRIB./
CHANNELS
CONSUMERS/
ENVIRONMENT
- GOVERNMENT/NGOs
Mission/Vision: …………………….………………………………………………….
SIX SIGMA-BUSINESS MODEL MATRIX
SYSTEM

FOCUS CUSTOMER DEVELOPMENT-BUSINESS MODEL
Expected vs. Actual Performance
LEARNING:
Findings/Insights/
Decisions/Actions
BUSINESS/
GLOBAL VALUE CHAIN
COMPANY
VISION
CUSTOMER
DISCOVERY
CUSTOMER
VALIDATION
CUSTOMER
CREATION
COMPANY
BUILDING
INPUT (SUPPLIERS/
MATERIALS/ENERGY)
ELEMENTS
(EMPLOYEES/
MACHINERY)
PROCESS
(Bus. Process/
Strategies)
OUTPUTS:
PRODUCT/SERVICE
Minimum Product:
Desirable/Viable/
Feasible
Product-Market Fit:
Prototype/
Pilot/No-frills
Product-Solution
Fit: Full Software/
Hardware
More Fully
Featured
Product
RETAILERS/DISTRIB./
CHANNELS
CONSUMERS/
Innovators Early Adopters
(“Earlyvangelists”)
Early Majority Late Majority/
Loyal
ENVIRONMENT
- GOVERNMENT/NGOs
Mission/Vision: …………………….………………………………………………….
CUSTOMER DEVELOPMENT-BUSINESS MODEL (CDBM) MATRIX
SYSTEM

ITEM
FOCUS
CUSTOMER DISCOVERY DASHBOARD
STATEMENT/FORMULATION OF HYPOTHESES RESULT LEARNING:
Findings/
Insights/
Decisions/
Actions
BUSINESS/
GLOBAL VALUE CHAIN
JOBS/GOALS/STATEMENTS/QUESTIONS/ASSUMPTIONS MEDIA/
METRICS/
CRITERIA
Expected
Perform-
ance
Actual
Perform-
ance
S: SUPPLIERS
E: EMPLOYEES/
KNOWLEDGE ASSETS/IP
M: MACHINERY/EQUIP./
FACILITY/INFRASTRUCTURE
P: PROCESSES
O: OUTPUTS
(PRODUCT/SERVICE)
R: RETAILERS/DISTRIB./
CHANNELS
C: CONSUMERS/
CUSTOMERS
E: ENVIRONMENT/PUBLIC/
COMPETITORS/
INVESTORS/PARTNERS
CUSTOMER DISCOVERY-BUSINESS MODEL
GURUS

BUSINESS Upstream VALUE NETWORK (SUPPLY CHAIN OR “FOOD CHAIN”) Downstream
TO
FROM
S:
Suppliers
E:
Employees
M:
Machinery
P:
Processes
O:
Output
R: Retailers/
Wholesalers/Distr.
C:
Customers
E:
Environment
S: Suppliers
E: Employees/
Knowledge Assets
M: Machinery/
Facility/Infra’
P: Processes
O: Outputs
(Product/Service)
R: Retailers/
Distributors/
Channels
C: Consumers/
Customers
E: Environment
VALUE NETWORK
(“SEMPORCE”)
Customer Value Proposition (Job To Be Done):
VALUE NETWORK-BUSINESS MODEL
Collaboratively Design Oh My God-Visijon, Strategies, Products, Services, and Business Models
GURUS

PUBLISHER Upstream VALUE NETWORK (SUPPLY CHAIN OR “FOOD CHAIN”) Downstream
TO
FROM
S:
Suppliers
E:
Employees
M:
Machinery
P:
Processes
O:
Output
R: Retailers/
Wholesalers/Distr.
C:
Customers
E:
Environment
S: Suppliers
E: Employees/
Knowledge Assets
M: Machinery/
Facility/Infra’
P: Processes Print books Stock/pack books
Det. allocations
O: Outputs
(Product/Service)
Books Book inventory;
Merchandise titles
R: Retailers/
Distributors/
Channels
Establish
identity
Ship books;
Deliver orders;
Dispose of returns
C: Consumers/
Customers
Create
demand
Articulate value Buy books
E: Environment
VALUE NETWORK
(“SEMPORCE”)
Customer Value Proposition (Job To Be Done):
VALUE NETWORK-BUSINESS MODEL: Traditional Book Publisher
GURUS

CUSTOMER DEVELOPMENT FOR SCALABLE STARTUPS
Theme: ………………………………………………………………………………………… Date: …………………..…..
CUSTOMER DEVELOPMENT FOR SCALABLE STARTUPS
GENERIC ACTIVITIES FOR CORE & PERIPHERAL INDUSTRIES CUSTOMER
DISCOVERY
CUSTOMER
VALIDA-
TION
CUSTOMER
CREATION
COM-
PANY
BUILD-
ING
WISDOMSOURCING
CANVAS
COLLABORATIVE PROBLEM SOLVING TASKS FOR
PROCESS/INDUSTRY/BUSINESS MODEL/PRODUCT
PROBLEM UNIVERSE:
GLOBAL PROBLEM
MAPPING
Collect/Define/Measure/Verify Problems, Pains, and
Trade-offs in System for Customer Segments/Personas
Organize/Group/Analyze Problems, Pains, and Trade-offs
Prioritize/Verify Big Urgent Market Pain (BUMP)
GOAL UNIVERSE:
GLOBAL GOAL
& STRATEGY
MAPPING
Collect/Generate/Verify OMG-Goals, Objectives, Strategies,
Tactics, Targets & Processes for Eliminating BUMP
Organize/Group/Generate a Hierarchy of OMG-Goals,
Objectives, Strategies, Tactics, Targets & Processes
Prioritize/Verify OMG-Goals, Objectives, Strategies, Tactics,
Targets & Processes and Synthesize into a Plan/Prototype
EXECUTION UNIVERSE:
GLOBAL STRATEGY
EXECUTION
Implement, Control, and Validate Plan/Prototype Reflecting
OMG-Goals, Objectives, Strategies, Tactics, Targets &
Processes
Prepare Project Charter and Form Project Team with Diverse
Members (Customers and Non-customers)
Mission/Vision: …………………….………………………………………………….
GURUS

CORE VALUES (Incentives/Penalties)
STAKEHOLDER IMPACTS
[Profit (Margin); Revenue /Cost ;
Unit Price; Volume; Speed; Trade-off]
GOALS, OBJECTIVES,
STRATEGIES & TACTICS
(PLAN)
CUSTOMER PROBLEM
(BIG URGENT MARKET PROBLEM:
BUMP)
RESOURCES
(GLOBAL VALUE CHAIN)
 S: Suppliers
 E: Employees (Core Competencies)
 M: Machinery/Equipment/Facility
 P: Processes
 O: Output (Product/Service)
 R: Retailers/Distributors/Channels
 C: Consumer/Customer Segments
 E: Environment: Competitors, etc.
COMPANY BLUEPRINT (Version X)
MISSION/VISION
CUSTOMER VALUE PROPOSITION
GURUS

(-): PAIN
(+): DELIGHT
Disruption Spot
Luxury Spot
Strategic
Choice
Resegmented/
Reframed/Low-cost
Market
Cost
(Adoption Barrier; Complexity;
Inaccessibility; Delay)
Existing High end-
Market
Performance
(Functionality;
Quality)
Key
OMG-Experience:
GURUS
Cost-Performance Map for ‘Market Types’
Market Segment (Customer Problem/Goal): ………………………………………………………
Ideal Value Space
(Ideal Market/
Ideal Impossibility/
Ideal Tool/
Ideal Universe/
Entirely New Market)

(-): PAIN
(+): DELIGHT
Disruption Spot
Luxury Spot
Strategic
Choice
Key
OMG-Experience:
CUSTOMER EXPERIENCE MAP: Template
Collaboratively Collect, Organize, Prioritize, and Manage
Vision, Strategies, Products, Services, and Business Models
GURUS
Ideal Value Space
(Ideal Market/
Ideal Tool/
Ideal Universe/
New Market)

(-): PAIN
(+): DELIGHT
Disruption Spot
Luxury Spot
Strategic
Choice
Cost-Quality Map
For Product/Service/Business Model
Where Currently is the System?/Why? Where Must the System go?/Why? How Will the System Get There?
Key
OMG-Experience:
Quality
(Performance)
Cost
(Price)
GURUS
Ideal Value Space
(Ideal Market/
Ideal Tool/
Ideal Universe/
New Market)

(-): PAIN
(+): DELIGHT
Disruption Spot
Luxury Spot
Strategic
Choice
Cost-Differentiation Map
Visually Describe, Analyze, and Manage Customer Experiences (in Space/Time)
Key
OMG-Experience:
Differentiation
(Uniqueness)
Cost
Classic
DIFFERENTIATION
Strategy
Classic
COST LEADERSHIP
Strategy
GURUS
“STUCK-IN-THE-
MIDDLE”
Strategy
Ideal Value Space
(Ideal Market/
Ideal Tool/
Ideal Universe/
New Market)

(-): PAIN
(+): DELIGHT
Disruption Spot
Luxury Spot
Strategic
Choice
Low-end Disruption
(Disruptive Innovator:
Low-end, Overserved
Customers; Low Margin;
‘Good Enough’ Quality)
Cost
(Adoption Barrier; Complexity;
Inaccessibility; Delay)
Sustaining Innovation
(Incumbent: High end,
‘20-80’ Customers;
High Profit Margin)Performance
(Functionality;
Quality)
Key
OMG-Experience:
GURUS
Cost-Performance Map
Ideal Value Space
(Ideal Market/
Ideal Tool/
Ideal Universe/
New Market Disruption)

(-): PAIN
(+): DELIGHT
Disruption Spot
Luxury Spot
Strategic
Choice
Key
OMG-Experience:
Differentiation
(Uniqueness)
Risk
SCALE
Differentiated
Business Model
STANDARDIZE
Product/Service;
OUTSOURCE
‘Peripherals’
TRANSFER
Resources and
EXIT
INVENT
Differentiated
Product/Service
GURUS
Value Innovation Cycle
Ideal Value Space
(Ideal Market/
Ideal Tool/
Ideal Universe/
New Market)

(-): PAIN
(+): DELIGHT
Disruption Spot
Luxury Spot
Strategic
Choice
Key
OMG-Experience:
Differentiation
(Uniqueness)
Risk
“PAPER” COMPANY
(Luxury Spot)
“ROCK” COMPANY
(Sweet Spot)
“SCISSORS” COMPANY
(Disruption Spot)
GURUS
Growth vs. Competition Cycle
Ideal Value Space
(Ideal Market/
Ideal Tool/
Ideal Universe/
New Market)

(-): PAIN
(+): DELIGHT
Disruption Spot
Luxury Spot
Strategic
Choice
Customer Intimacy
DISCIPLINE
Operational
Excellence
DISCIPLINE
Quality of
Experience
(Performance)
Cost
Product Leadership
DISCIPLINE
Key
OMG-Experience:
GURUS Value Discipline Map
Ideal Value Space
(Ideal Market/
Ideal Tool/
Ideal Universe/
New Market)

(-): PAIN
(+): DELIGHT
Disruption Spot
Luxury Spot
Strategic
Choice
Defect (Error; Waste; Delay;
Complaint; Deviation from ‘Standard’;
Delivery Time; Complexity)
Process
Speed
(Agility; Flow;
Efficiency;
Effectiveness)
Lean-Six Sigma
METHODOLOGY
Six Sigma
METHODOLOGY
Lean Manufacturing
METHODOLOGY
GURUS
Key
OMG-Experience:
Ideal Value Space
(Ideal Market/
Ideal Tool/
Ideal Universe/
New Market)
Lean-Six Sigma Map

(-): PAIN
(+): DELIGHT
Disruption Spot
Luxury Spot
Strategic
Choice
Novelty of
Meaning
(Interaction; Job;
Utility; Want;
Language; Style;
Differentiation)
Technology Obsolescence
(Maturity; Cycle; Evolution)
Game-changing
MEANING/TOOL
(Paradigm Shift)
Emergent
MEANING/TOOL
Generic
MEANING/TOOL
(Existing Paradigm)
Stretch
MEANING/TOOL
Disruptive
MEANING/TOOL
GURUS
Key
OMG-Experience:
Ideal Value Space
(Ideal Market/
Ideal Tool/
Ideal Universe/
New Market)
Meaning-driven Innovation Map

(-): PAIN
[HARMFUL EFFECT]
(+): DELIGHT
[USEFUL EFFECT]
Disruption Spot
Luxury Spot
Strategic
Choice
Undesirable Parameter
(Cost; Size; Weight; Time; Defect; Rigidity;
Quantity; Material; Complexity; Resource)
TRIZ Design
(Win-Win) Strategy
Value Innovation
Conventional Design
(Win-Lose) Strategy
Thinking-in-the-box
Optimization Design
(Win-Neutral) Strategy
Optimization
Disruptive Design
(‘Good Enough’) Strategy
Disruptive Innovation
Desirable
Parameter
(Performance;
Strength; Power;
Reliability
Quality;
Accuracy;
Speed; Content;
Versatility)
GURUS
Key
OMG-Experience:
Ideal Value Space
(Ideal Market/
Ideal Tool/
Ideal Universe/
New Market)
Technical Innovation Map

(-): PAIN
(+): DELIGHT
Disruption Spot
Luxury Spot
Strategic
Choice
Cash Cow
Star
Market
Growth
Rate
Commoditization
(1 – Market Share)
Dog
Question Mark
Key
OMG-Experience:
GURUS
Product Portfolio Map
Ideal Value Space
(Ideal Market/
Ideal Tool/
Ideal Universe/
New Market)

(-): PAIN
(+): DELIGHT
Disruption Spot
Luxury Spot
Strategic
Choice
Key
OMG-Experience:
GURUS
Sweet SpotBlue Ocean
(“Practical Impossibility”)
Luxury Spot
Disruption Spot VolcanoOasis
Green Ocean Red OceanNo Man’s Island
CUSTOMER EXPERIENCE MAP: Descriptions
Collaboratively Collect, Organize, Prioritize, and Manage
Vision, Strategies, Products, Services, and Business Models
3
10
6
3
6
10
Ideal Value Space
(Ideal Market/
Ideal Tool/
Ideal Universe/
New Market)

(-): PAIN
(+): DELIGHT
Disruption Spot
Luxury Spot
Strategic
Choice
Big Urgent Market
Pain
(BUMP)
BUMP MAP
Collaboratively Discover or Identify Big Urgent Market Pain (BUMP)
Urgency
(Need/Importance)
of Solution
Size or Pervasiveness of Pain
(Number of ‘Victims’ or
Customers & Non-customers)
GURUS
List of Stakeholders
Little Urgent
Market Pain
(LUMP)

(-): PAIN
(+): DELIGHT 2
Emotional Delight
(Branding/Differentiation; Customization)
Intellectual Pain
(Complexity; Cost
Inaccessibility;
Processing Time)
(+): DELIGHT 1
Physical Delight
(Functionality; Quality; Performance)
Future
Market
Space
Existing
Market
SpaceKey
OMG-Experience:
GURUS
Market (Customer Problem/Goal): ……………………………………………
Customer Value Cube

(-): PAIN 2
(+): DELIGHT 2
Value
(Quality; Differentiation)
Waste
(Cost; Time; Defect)
Lean
Startup
(-): DELIGHT 1
Performance
(Functionality)
Future
Market
Space
Existing
Market
SpaceKey
OMG-Experience:
GURUS
Market (Customer Problem/Goal): Lean Customer Development
LEAN STARTUP Cube

0
2
4
6
8
10
0 2 4 6 8 10
DELIGHT
PAIN
Customer Value Quotient (VEQ) = Weighted Delight/Weighted Pain = Utility Function
= Slope of Customer Experience Curve
TRADE-OFF GRAPH: Template
Visually Describe, Analyze, and Manage Customer Experiences & Trade-offs
Desirable Experience
Undesirable Experience
GURUS
Zero Trade-off
(Ideal Tool/New Market Disruption/Singularity)
………………………………………………………………………..…

0
2
4
6
8
10
0 2 4 6 8 10
DELIGHT
( Differentiation;
Quality)
PAIN
(Cost)
Classic Competitive Strategies Graph
CONVENTIONAL THINKING
(“Higher quality, higher cost”)
“Stuck
in the
Middle”
Classic
Differentiation
(“Short head”/
“20-80”/
High Profit
Margin)
Classic Cost
Leadership
(“Long Tail”/
Low Profit
Margin)
Desirable Experience
Undesirable Experience
GURUS
Zero Trade-off
Competitive Advantage
Customer Value Quotient (CVQ) = Weighted Delight/Weighted Pain = Utility Function

0
2
4
6
8
10
0 2 4 6 8 10
DELIGHT
( Knowledge;
Quantity)
PAIN
(Cost; Price)
Knowledge Advantage Graph
DEMAND CURVE
(When price decreases, demand increases)
KNOWLEDGE ADVANTAGE CURVE
(‘Long-term Demand Curve’)
GURUS
………………………………………………………………………..…
Zero Trade-off
Customer Value Quotient (VVQ) = Weighted Delight/Weighted Pain = Utility Function

0
2
4
6
8
10
0 2 4 6 8 10
DELIGHT
(Quantity)
PAIN
(Price)
Price-Quantity (Demand & Supply) Graph
DEMAND CURVE
(When price decreases, consumer increases demand)
SUPPLY CURVE
(When price increases, supplier increases quantity)
………………………………………………………………………..…
Zero Trade-off
GURUS
Customer Value Quotient (VVQ) = Weighted Delight/Weighted Pain = Utility Function

0
2
4
6
8
10
0 2 4 6 8 10
Illustrating Moore’s Law as an Instance of Evolution Towards ‘Zero Trade-off’
DELIGHT
(Transistors)
PAIN
(Size)
CEQ = 8/1= 8
Customer Experience Quotient (CEQ) = Weighted Delight/Weighted Pain Function of (Transistors/Size)
CEQ = 4/1= 4
CEQ = 2/1= 2
Moore’s Law Graph
Market (Customer Goal): Integrated Circuit Board
GURUS
Zero Trade-off

E: ENVIRONMENT
• Competitors/Econ./Complementors
• Partners: Distribution Channels
• Investors
• Public/Society/Enemies
GLOBAL VALUE CHAIN FOR
BLUE OCEAN
Customer Value Proposition::
[REVENUE/COST]
P: PROCESS CHAIN/GOALS
 Ambidextrous Business Model
 Experimentation: Fast and Low-cost
Failures; Big (Disruptive) Wins
 Unique Technology (IP); Agile Process
 Mass Customization; Just-in-Time
CHANNELS/INTERFACE
 Online Business/Store
 Offline: Superstores; Franchises
 Real-time Transaction of Orders
 Integrated Channel Management
E: EMPLOYEES/KNOWLEDGE ASSETS/
CULTURE
 Highly Productive and Creative
 Discovery-driven Learning
 Customer Development/Lean Startup
 Fast Decisions
 Ambidextrous Org.: De-/Centralized
C: CONSUMERS/CUSTOMERS
 Long-tail (80/20) Consumers/
Customers
 Short-head (20/80) Consumers/
Customers; Online Support
O: OUTPUTS/PRODUCT/SERVICE
 High Quality; Feature-differentiated
 High Differentiation; Recognizable
Brand; Unique Design
 Low Price or Free; Widely Accessible
 Self-service
 Real-time Integrated Scheduling/
Shipping/Warehouse Management
 External Co-creators
 Cheaper Supplies: Raw Materials
FACILITY/LOCATION
 Informal Ambience/Atmosphere
 Advanced Technology Platform:
Automation
 Massive/Scalable Infrastructure
 Modular Architecture: Interoperable
KEY
Existing Revenue (Reward/Info flow) Potential Revenue (Reward/Info flow)
Existing Cost (Entry Barrier/Info Flow) Potential Cost (Entry Barrier/Info Flow)
GURUS
BLUE OCEAN-BUSINESS MODEL
Collaboratively Expand Market and Become Uncontested Leader in Emerging Fast-growing Industry

E: ENVIRONMENT
• Competitors/Econ./Complementors
• Partners: Distribution Channels
• Investors
GLOBAL VALUE CHAIN FOR
DISRUPTION SPOT
Customer Value Proposition::
[REVENUE/COST]
 Standardization; Modularization
 Process Improvement & Waste Min.
 Optimization/Outsourcing/Innovation
 Customer Development; Lean Startup
 Process Improvement & Waste Red.
PROMOTION CHANNELS
 Online Business/Store
 Offline: Superstores/Franchises:
Low Cost, High Volume-Products/
Services
CULTURE
 Centralized Organization
 Productivity and Process-focused
 Lower Paid Employees
 Vertical Teams/Structured Jobs
 “Cultivation/Control” Culture
 Mass Market: Overserved/Unserved
 Early/Fast Adopters; Pragmatists
 ‘Good Enough’ or Minimum Customer
Service
 Simple-to-use Product/Service
 ‘Good Enough’ Functionality/Quality
 Low/Discounted Price
 Widely Available; Fast-moving
 Low-price and Quality-Compliant
Suppliers
 Contracted/Outsourced Suppliers
FACILITY/LOCATION
 Cost-reduction Platform
 High Quality/Scalable IT Architecture
 Optimized Plant Capacity/Infra’
 High Asset Utilization
 Low Rent/Suburban Location
KEY
GURUS
DISRUPTION SPOT-BUSINESS MODEL
Collaboratively Expand Market and Become Uncontested Leader in Emerging Fast-growing Industry

E: ENVIRONMENT
• Competitors/Industry/Economy
• Partners/Complementors
• Investors: Large Capital Investment
GLOBAL VALUE CHAIN
FOR LUXURY SPOT
Customer Value Proposition:
[REVENUE/COST]
 Customer Experience-Driven/Inno.
 Customer Relationship Management
 Outstanding Marketing/Branding
 Excellent R & D/Product Engineering
 Selective Customization
PROMOTION CHANNELS
 Few Stores: High Cost, Low Volume-
Products/Services
 Exclusive Access
CULTURE
 Decentralized Organization
 High Level of Employee Creativity
 Design/Solutions-Competence
 Intimate Knowledge of the Consumer
 Organic/“Collaboration” Culture
 Personalized Interaction/Experience:
High Touch, High Feel; Co-creation
 Customer Experience Segmentation
 Superior Customer Support
 High end Customers: Conservative
 Rare Product/Service; Premium Price
 High Performance; High Quality
 Highly Recognized Brand; Extension
 Feature-rich; High Profit Margin
 Prestigious; Cool Factor; Social Aura
 Novel/Unique Materials
FACILITY/LOCATION
 Highly Innovative/Disruptive
Technology
 Luxury Ambience
 High Rent; Premium/Urban Location
KEY
GURUS
LUXURY SPOT-BUSINESS MODEL
Collaboratively Expand Market and Become Uncontested Leader in Existing Fast-growing Industry

IMPACTS
SYSTEM
VOICE OF THE CUSTOMER IN CORE & PERIPHERAL INDUSTRIES
CUSTOMER DELIGHT (+) CUSTOMER PAIN (-)
Selection Criteria:
Needs & Barriers
COMPETITORS
Function/
Content/
Perf./
Knowledge
Quality/
Reliability/
Accuracy/
Efficiency
Brand/
Emotion/
Style/Aura/
Prestige
Customization/
Personalization/
Interactivity/
Entertainment
Cost
(Price)
Inaccessibility/
Unavailability/
Inflexibility/
Friction/Scale
Complexity/
Difficulty/
Support/
Range/Risk
Process
Time/
Delay/
Age
WEIGHT
(IMPORTANCE)
Given Business/
Product:
CORE
COMPETITORS
(Core Industry)
PERIPHERAL
COMPETITORS
(Peripheral Ind.)
REMOTE
COMPETITORS
(Remote Ind.)
Mission/Vision: …………………….………………………………………………….
GURUS
CUSTOMER EXPERIENCE OF COMPETITORS

IMPACTS
SYSTEM
Selection Criteria:
Needs & Barriers
CURVES
Function/
Content/
Perf./
Knowledge
Quality/
Reliability/
Accuracy/
Efficiency
Brand/
Emotion/
Style/Aura/
Prestige
Customization/
Personalization/
Interactivity/
Entertainment
Cost
(Price)
Inaccessibility/
Unavailability/
Inflexibility/
Friction/Scale
Complexity/
Difficulty/
Support/
Range/Risk
Process
Time/
Delay/
Age
WEIGHT
(IMPORTANCE)
Given Business/
Product:
CUSTOMER
EXPERIENCE
CURVES
10
8
6
4
2
0
Mission/Vision: …………………….………………………………………………….
Key -> 1: Low level; 10: Extraordinary level of experience
Customer Value Quotient (CVQ)
= Weighted Delight/Weighted Pain
CUSTOMER EXPERIENCE CURVES
Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business ModelsGURUS

Mission/Vision: …………………….………………………………………………….
IMPACTS
SYSTEM
Selection Criteria:
Needs & Barriers
TACTICS
Function/
Content/
Perf./
Knowledge
Quality/
Reliability/
Accuracy/
Efficiency
Brand/
Emotion/
Style/Aura/
Prestige
Customization/
Personalization/
Interactivity/
Fun/Entertain.
Cost
(Price/
Weight/
Material)
Inaccessibility/
Unavailability/
Inflexibility/
Friction/Scale
Complexity/
Difficulty/
Support/Risk
Range/Shape
Process
Time/
Delay/
Age
WEIGHT
(IMPORTANCE)
Av. Competitor:
Chief Competitor:
Given Business/
Product:
E: Eliminate
R: Reduce
I: Increase
C: Create
CUSTOMER EXPERIENCE TACTICS
Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business ModelsGURUS

GURUS
4 VALUE INNOVATION
SUPERHEROES
(ARCHETYPAL THINKING ROLES)
FOR
TARGETED OBJECTS/RESOURCES:
System, Elements, Attributes, Processes
& Supersystem/Industry/Environment
4 VALUE INNOVATION SUPERHEROES
FOR THE BLUE OCEAN STARTUP
E: ELIMINATOR
Has the Power to
 Remove totally
 Skip
 Discard
 Destroy
 Introduce Zero/Void/Vacuum
Has all tools and gadgets for ELIMINATING objects
R: REDUCER
Has the Power to
 Remove partially; Streamline
 Trim; Prune; Downsize; Make Lean
 Minify; Miniaturize
 Separate; Standardize; Replace
 Divide; Segment
Has all tools and gadgets for REDUCING objects
C: CREATOR:
Has the Power to
 Make (a)symmetrical/opposite
 Reverses Combine; Integrate
 Replace; Universalize
 Create Fields/Forces/Feedback
 Substitute; Transform; Restructure
 Use Another Dimension
 Hybridize/Bisociate
Has all tools and gadgets for CREATING objects
I: INCREASER
Has the Power to
 Add; Multiply; Magnify; Mutate
 Merge; Nest
 Introduce Interface; Cushion;
 Stretch; Extend
 Diversify
 Use Additional Components
Has all tools and gadgets for INCREASING objects

ITENN4 PART-WISDOMSOURCING MAP 5 PART-WISDOMSOURCING MAP
1 PART-WISDOMSOURCING MAP
CLASSIC VERTICAL MAP PAIN-DELIGHT MAP
WISDOMSOURCING MAPS:
Family of Wisdomsourcing Maps
(Zoomable Idea Organizers) for
Facilitating Collaboration, Ideas
Management, Creativity, and
Customer Problem Solving
CLASSIC HORIZONTAL MAP
GURUS
WISDOMSOURCING MAPS FOR

GURUS
Horizontal
Wisdomsourcing Map
Vertical
Wisdomsourcing Map
Pain-Delight
Wisdomsourcing Map
Classic Family of Wisdomsourcing Maps: Parent and 8 Children
Parent (Child: Mini-Wisdomsourcing Map)
Collect Ideas:
Flexibly & Efficiently List/Brainstorm/
Document/Storyboard Ideas in Cluster
Organize Ideas:
Outline/Deconstruct; Classify/Collate/
Analyze/Synthesize Ideas in Cluster
Prioritize Ideas:
Rate/Rank/Sort/Classify/Compare/
“Analogize”/“Bisociate” Ideas in Cluster
CLASSIC WISDOMSOURCING MAPS
Family of Fractal Idea Organizers for Collaborative Creativity, Problem-solving, Decision-making, and Learning

THE INFINITE WISDOMSOURCING MAP
Collaboratively and Fractally Organize All Information in the Universe: Past, Present, and Future
GURUS
Level 0
Mini-Wisdomsourcing Map
(Building Block, Atom, Seed, or Screen)
Super Wisdomsourcing Map:
3x3 Classic Wisdomsourcing Map
Level 1
Level 2
Classic Wisdomsourcing Map:
3x3 Mini-Wisdomsourcing Map

GURUS
CLASSIC HORIZONTAL MAP
Theme/Topic: …………………………………….……………………………………..…… Date: …………………..…..

ITENN
GURUS
CLASSIC VERTICAL MAP
Theme/Topic: …………………………………….……………………………………..…… Date: …………………..…..

(-): PAIN
(+): DELIGHT
Disruption Spot
Luxury Spot
Strategic
Choice
Key
OMG-Experience:
GURUS
Ideal Value Space
(Ideal Market/
Ideal Tool/
Ideal Universe/
New Market)
CLASSIC PAIN-DELIGHT MAP
Theme/Topic: …………………………………….……………………………………..…… Date: …………………..…..

ABOUT THE INVENTOR/AUTHOR
GURUS

Inventor of over 40 Tools for
The Wisdomsourcing Trilogy –
Facilitating work in the areas of
 Business Model Development
 Business and Strategic Planning
 Product & Service Innovation
 Performance Management
Inventor of “The Fractal Grid”
This technology, which has US and
International patent-pending, can be
used for visually organizing and
Prioritizing massive amounts of
information such as in search
engines, social networks, and
other communities on the Internet
 Visual Problem Solver
 Speaker & Consultant on
Business Model Development
 Inventor of The Wisdomsourcing
Trilogy, a Customer Problem Solv-
ing Suite for Collaboratively
Designing Oh My God-Strategies,
Products, and Business Models
Founder of the Wisdomsourcing
Group, an online Global Think Tank
for collaboratively improving
customer experiences and resolving
tough dilemmas
Organizer & Coordinator of Wisdom-
sourcing survey involving over 200
professionals from over 30 countries
CONTACT
Dr. Rod King: California, USA
Cell: (559) 248-6230
rodkuhnking@sbcglobal.net
http://twitter.com/RodKuhnKing
 B. Eng. (Hons) in Civil Eng.
 Master of Infrastructure Planning
 Ph.D. in Regional Dev. Planning
 Postgraduate Certificate in
Advanced Academic Studies
 Over 20 years of experience in
creative problem solving for
multi-disciplinary projects
Dr. Rod King
Visual Problem Solver,
Inventor & Magician
 Inventor of first software that
wholly invents magic tricks
 Inventor of several magic tricks
 Author of “Trickanalyzing the
Close-up Magic of David
Copperfield” & several articles
 Winner of several championships
in chess and table-tennis
 Founder and former CEO of
Galaxy IT, Inc., a venture-financed
visual search engine business
 Major contributor on creativity to
the multi-author book, “Research
Methods for Postgraduates”
 Former Lecturer
BIOGRAPHICAL SKETCH
Background Information on Dr. Rod King, Creator of Business Model Development (BMD)
GURUS

• Rod King (2009)
• Global Collaboration
• Visual Problem Solving
• Practical Impossibility Thinking
• Wisdomsourcing Maps
• Wisdomsourcing Canvas
• Customer Experience Map
(Pain-Delight Evaluation of Trade-off)
• Wisdomsourcing Deck
• Manifesto for Wisdomsourcing Game
• Alex Osborne (1953)
• Rules for Brainstorming – No criticism
during idea generation
• ‘Blue Sky’ Thinking and Ideas
• Jeff Howe (2006)
• Crowdsourced Goods and
Information Products
• Off-site Tools for Strategic
Analysis and Problem
Solving
• ‘Ad hoc’ Group
• Unlimited Number of Volunteers
• Peer Production; Documentation
• Open Innovation and Value Chain
• Prosumers: Consumers who participate
like employees/producer in a business
• Competitions; Contests; Prizes
• Recognition; Reputation
• Organic Process
• Online Collaboration
• Collaborative Idea Generation
• 1D-Evaluation; Voting
• Myriad Generated
Ideas
• Offline
• 1 Physical Location
• Formal Group
WISDOMSOURCING
3.
CROWDSOURCING
2.
1.
BRAINSTORMING
EVOLUTION OF WISDOMSOURCINGGURUS

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