THE CUSTOMER DEVELOPMENT ROADMAP: A Minimum Viable Toolset for Systematically Creating Blue Ocean Startups

THE CUSTOMER DEVELOPMENT ROADMAP
A Minimum Viable Toolset for Systematically Creating Blue Ocean Startups
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
Visual Customer Development
Especially for
‘Non-Software’ Startups

A Blue Ocean Startup
Is a “Value Innovation” Business That
Creates an Uncontested Market Space and
Makes Competitors Irrelevant

Eventually, a Blue Ocean Startup has
 a Profit Margin of, at least, 20% p.a.
 not more than 3 Direct Competitors
in a Fast-growing Market (Niche)
a Market Share of, at least,
3 Times That of Nearest Competitor

Blue Ocean Startups
Are the Darlings of
Angel Investors,
Venture Capitalists, and
the Stock Market

ORIGINAL BLUE OCEAN STARTUPS
ORIGINAL
BLUE OCEAN STARTUPS
GURUS

But, how are Blue Ocean Startups Created?

ITENN
GURUS
BUSINESS MODEL DEVELOPMENT
TOOLS FOR SYSTEMATICALLY CREATING BLUE OCEAN STARTUPS
WISDOMSOURCING MAP
(Rod King)
CUSTOMER DEVELOPMENT
(Steve Blank)
BLUE OCEAN STRATEGY
(W. Chan Kim & Renee Mauborgne)
Blue
Ocean
Startup
Market Types
(Customer Experience
Map)
Value Innovation
VoC
Note
VoC: Voice of Customer
LEAN STARTUP
(Eric Ries)

(-): 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
Disruption Spot
Luxury Spot
Strategic
Choice
Profit Margin
No. of Direct Competitors
(Level of Commoditization)
COMPANY BUILDING COMPANY SCALING/
ACQUISITION
CUSTOMER CREATION
CUSTOMER DISCOVERY
& VALIDATION
‘CUSTOMER DEVELOPMENT’ JOURNEY OF
3
100%
6
10%
20%
10 (Global)

(-): PAIN
(+): DELIGHT
Disruption Spot
Luxury Spot
Strategic
Choice
Key
OMG-Experience:
GURUS
Sweet Spot
STARTUP
Blue Ocean
STARTUP
(“Practical Impossibility;
Value Innovation”)
Luxury Spot
STARTUP
(“Existing Market”)
Disruption Spot/
Lean STARTUP
(“Resegmented/Reframed
Market; Lean/No-frills Niche”)
Volcano
STARTUP
Oasis
STARTUP
Green Ocean
STARTUP
Red Ocean
STARTUP
No-Man’s-Island
STARTUP
3
10
6
3
6
10
Ideal Value Space
(Ideal Market/
Ideal Impossibility/
Ideal Tool/
Ideal Universe/
New Market
STARTUP)
10 ARCHETYPAL STARTUPS & MARKET TYPES
“What Kind of a Startup Are We? What Kind of a Startup Must We Be? How?”
Differentiation
(Performance)
Cost

(-): 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

WHY (PROBLEMS)?
 Use of Waterfall Model for
Product Development
 Having Little or No Customers:
Product-Market Misfit
HOW MANY? HOW MUCH?
Growing Communities of Practice for
 Customer Development Model
 Lean Startup Model
WHAT (PROBLEMS)?
 9 out of 10 New Products are
Failures (Unprofitable)
 High Mortality Rate of Scalable
Startups
HOW (SOLUTION)?
 Customer Development Model
(Steve Blank): Customer Discovery;
Customer Validation; Customer
Creation; Company Building
 Lean Startup Model (Eric Ries):
Continuous & Rapid Deployment
WHAT NEXT?
See http://steveblank.com/
WHERE (PROBLEMS)?
 Scalable Startups especially in
Silicon Valley, California
 World of Business (Startups)
THE METHODOLOGY OF
(based on Steve Blank’s book:
“The Four Steps
To The Epiphany”)
WHEN?
See http://steveblank.com/
WHO?
Steve Blank
 Retired Serial Entrepreneur
 Author of “The Four Steps
To The Epiphany”
 Creator of “Customer Dev. Model”
 Entrepreneurship Professor
OVERVIEW OF
THE METHODOLOGY OF CUSTOMER DEVELOPMENT
“Successful Strategies for Products That Win”
GURUS

(-): PAIN
(+): DELIGHT
Disruption Spot
Luxury Spot
Strategic
Choice
Customer Development
Model:
Minimum Viable
Product(s)
Time
(Delay; Cost; Adoption Barrier)
Waterfall Model:
Alpha/Beta Product
Amount of
Validated Learning
Key
OMG-Experience:
GURUS
Learning Time Map for Product Development
Market Segment (Customer Problem/Goal): ………………………………………………………
Ideal Value Space
(Ideal Market/
Ideal Tool/
Ideal Universe/
Entirely New Market)

(-): PAIN
(+): DELIGHT
Disruption Spot
Luxury Spot
Strategic
Choice
Resegmented/
Reframed/Low-cost
Market;
Lean/No-frills Niche
Cost
(Adoption Barrier; Complexity;
Inaccessibility; Delay)
Existing High end-
Market
Performance
(Functionality;
Quality)
Key
OMG-Experience:
GURUS
Cost-Performance Map for ‘Market Types’
Ideal Value Space
(Ideal Market/
Ideal Tool/
Ideal Universe/
Entirely New Market)
3
10
6
3
6
10

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
 Hypotheses vs. Reality
 JTBD = Job To Be Done

GURUS
COMPETITIVE LANDSCAPE
FOR
Customer Value Proposition
(Hypotheses vs. Facts):
COMPETITIVE LANDSCAPE FOR THE BLUE OCEAN STARTUP
Visually Facilitate Collaboration, Ideas Management, Creativity, and Customer Problem Solving
DIRECT COMPETITORS INDIRECT COMPETITORS
NON-COMPETITORS

GURUS
MARKET UNIVERSE
FOR
Customer Value Proposition
MARKET UNIVERSE FOR THE BLUE OCEAN STARTUP
CORE CUSTOMERS PERIPHERAL CUSTOMERS
REMOTE CUSTOMERS

CUSTOMIZATION POSITIONING
 Personalized; Personal
 Customized; Scalable
 Fun; Entertaining
 Multi-sensory; Immersive
 Intuitive/Natural
 Do-It-Yourself/Self-service
INACCESSIBILITY POSITIONING
 Accessible
 Scarce
 Only
 Unlimited; Omnipresent
 Connected
 Wireless
FUNCTIONALITY POSITIONING
 Useful
 Unique (Capability)
 Specialized
 Effective; Problem-solving
 Pain-Reliever; [Pain]-Prevention;
 Versatile; Comprehensive
COST (PRICE)/SIZE POSITIONING
 Low Price; Affordable; Cheap; Free
 Premium Price
 Luxurious
 Discounted
 Bestselling
 Portable; Miniature
PROCESS TIME POSITIONING
 Instant; Immediate; Latest
 On Demand; 24x7
 Oldest; Antique
 Time-saving
 1/2/3-Day/Overnight Delivered
 Patient
BRANDING POSITIONING
 Leading; No. 1; Exclusive
 Original; Authentic; Unique
 New Category; Innovative; Emergent
 Emotional
 Empowering; Humanizing
 Classic; Modern; Avant Garde
POSITIONING/FEATURES
 CUSTOMER PREFERENCES
vs.
 BUSINESS PREFERENCES
COMPLEXITY POSITIONING
 Simple; Easy to Learn/Use/Apply
 Convenient
 Hassle-free
 Easy-to-understand
 Risk-free
 Certain
QUALITY POSITIONING
 Moderate/High Quality
 Pure; Defect-free
 Fast; Reliable
 Durable; Hard; Adaptive
 Healthy; Safe; Secure; Soft
 Efficient
POSITIONING/FEATURES MAP: Hypotheses
Collaboratively Design Oh My God-Strategies, Products, Services, and Business Models
GURUS

CUSTOMER CREATION PYRAMID FOR
“THE CUSTOMER DEVELOPMENT ROADMAP”
 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
Customer Value Proposition/Market: Create a Successful, Scalable Startup/Product;
Radically Reduce Risk of Failure for Startups/New Products
 NON- CUSTOMERS
o Profitable
o Break-even
o Unprofitable
Customer
Dev. Roadmap
Why?
How?
Why?
How?
Why?
How?
INDIRECT COMPETITORS
(Peripheral/Adjacent Industries:
Alternatives/Value Chain Complements)
Diffusion (Word-of-mouth) Potential = Delighters + Satisfiers - Dissatisfiers
GURUS
 Hypotheses vs. Reality
 JTBD = Job To Be Done

GURUS
ROADMAP
“The Four Steps
To The Epiphany”)
CUSTOMER DEVELOPMENT ROADMAP
The 4 Stages of the Customer Development Journey for a Scalable Startup
1. CUSTOMER DISCOVERY 2. CUSTOMER VALIDATION
3. CUSTOMER CREATION 4. COMPANY BUILDING

GURUS
ROADMAP
“The Four Steps
To The Epiphany”)
CUSTOMER DEVELOPMENT ROADMAP - Details
The 4 Stages of the Customer Development Journey for a Scalable Startup
1. CUSTOMER DISCOVERY
1.1 State Your Hypothesis
- “Customer Experience Curve (Canvas): Expected Pain/Delight”
- Business Model (Global Value Chain): Expected Pain/Delight
1.2 Test “Problem” Hypothesis: “Customer Experience Curve: Actual”
1.3 Test “Product” Hypothesis: Minimum Viable Product (MVP)
- Build MVP: Prototype Ad/Headline/Web
Page/Product/Service; Min. Feature Set
- Test MVP
- Test Hypotheses for Business Model
2. CUSTOMER VALIDATION
2.1 Get Ready to Sell
2.2 Sell to “Earlyvangelists”
2.3 Develop Positioning: Product-Market Fit
- Proposed Customer Experience Curve (Canvas)
- Proposed Scalable Business Model
2.4 Verify
- Product-Market Fit
- Scalable Business Model
3. CUSTOMER CREATION
3.1 Get Ready
3.2 Position
3.3 Launch
3.4 Create Demand
4. COMPANY BUILDING
4.1 Mainstream Customers
4.2 Management/Culture Issues
4.3 Functional Departments
4.4 Fast Response Departments

GURUS
QUESTIONS FOR
EACH STAGE OF
THE CUSTOMER
DEVELOPMENT JOURNEY
QUESTIONS FOR EACH STAGE OF
THE CUSTOMER DEVELOPMENT JOURNEY
2. WHERE MUST THE BUSINESS GO? What Positioning?
3. HOW WILL THE BUSINESS GET THERE?
What Business Model?
1. WHAT KIND OF A BUSINESS ARE WE? What Industry/Vision?
4. HOW WILL WE KNOW WHEN THE
BUSINESS’S VISION IS REALISED?

GURUS
CUSTOMER DISCOVERY
STAGE
What are the hypotheses?
What are the facts/evidences?
CUSTOMER DISCOVERY STAGE
Collaboratively Discover Most Important Customers, Big Urgent Market Problem (BUMP), and Business Model

ALID
GURUS
CUSTOMER VALIDATION
STAGE
CUSTOMER VALIDATION STAGE
Collaboratively Validate Most Important Customers, Big Urgent Market Problem (BUMP),
and Business Model as well as Customer Goal (Job To Be Done)

ALID
GURUS
CUSTOMER CREATION
STAGE
CUSTOMER CREATION STAGE
Collaboratively Create End-user Demand and Drive That Demand Into Sales Channel of Business
1. WHAT KIND OF A BUSINESS ARE WE? What Industry/Vision? 2. WHERE MUST THE BUSINESS GO? What Positioning?

ALID
GURUS
COMPANY BUILDING
STAGE
COMPANY BUILDING STAGE
Collaboratively Scale Business Model and Establish Formal Departments With Standardized Processes
2. WHERE MUST THE BUSINESS GO? What Position?

GURUS
THE 2 WORLDS OF
THE 2 WORLDS OF CUSTOMER DEVELOPMENT
CUSTOMER DISCOVERY CUSTOMER VALIDATION
CUSTOMER CREATION COMPANY BUILDING
WORLD OF SEARCH FOR SCALABLE BUSINESS MODEL
(For ‘Startups/Entrepreneurs/Founders’)
WORLD OF EXECUTION FOR SCALABLE BUSINESS MODEL
(For ‘Established or Matured Companies/Accountants’)

GURUS
EXPECTED OUTCOMES
FOR
 Customer Discovery
 Customer Validation
 Customer Creation
 Company Building
EXPECTED OUTCOMES
HYPOTHESES PROPOSED TESTING/METHOD
EXPECTED OUTCOMES

GURUS
ACTUAL OUTCOMES
FOR
 Customer Discovery
 Customer Validation
 Customer Creation
 Company Building
ACTUAL OUTCOMES
HYPOTHESES: What we thought ACTUAL TESTING/METHOD: What we did
ACTUAL OUTCOMES: What we learned

ITENNE: ENVIRONMENT/INVESTOR
 Revenue (Sales)
 Cash Burn Rate
 Month of Cash Left
 Time to Cash Flow-Breakeven
 Contribution Margin
P: PROCESSES
 Cycle Time for Pivots/Prototyping/
Versioning/Product Releases
 Average Time to First Order
 Average Time to Follow-on Order
 Customer Feedback/Voice
S: SUPPLIERS/MATERIALS
R: RETAILERS/DISTRIBUTORS/
CHANNELS
 Advertising Expenses
 Viral Coefficient
O: OUTPUTS (PRODUCT/
SERVICE)
 No. of Minimum Viable Products
 No. of Prototypes/Releases
 Average Size Order
 Average Selling Price per Order
 Web Page/Site: Total Visits;
Total Page Views
E: EMPLOYEES/KNOWLEDGE
ASSETS/CULTURE
 Agile/Lean (‘Small’) Teams
 Lessons Learned/Insights
 No. of Experiments/Interviews
 Effectiveness/Proficiency of
Sale Person
 Revenue per Sale Person
DASHBOARD (CDD)
OUTCOMES/GOALS:
 Customer Value Proposition
 Business Value = Revenue/Cost
 Customer Value (Experience) =
Customer Delight/Customer Pain
M: MACHINERY/EQUIPMENT/
FACILITY/LOCATION
C: CUSTOMERS/CONSUMERS &
RELATIONSHIPS
 No. of Prospects/Registrations
 No. of Customers/Referrals
 Cost per Acquisition (Paid/Net)
 Customer Lifetime Value
 Customer Loyalty/Retention:
Net Promoter Score (NPS)
CUSTOMER DEVELOPMENT DASHBOARD
FOR THE BLUE OCEAN STARTUP
GURUS

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
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 GENERALLY FAIL AND DIE?GURUS

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

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

CAUSE 4
CAUSE 6
CAUSE 1
CAUSE 5
CAUSE …
CAUSE 3
ROOT-CAUSES
-------------------------------
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 MAP
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
CHANNELS
SERVICE)
ASSETS/CULTURE
GLOBAL VALUE CHAIN:
OUTCOMES/GOALS
 Customer Value Proposition (Job)
FACILITY/LOCATION
RELATIONSHIPS
GLOBAL VALUE CHAIN
Zoomable Elements of a Value Chain or Business Model: “SEMPORCE”
GURUS

ITENNE: ENVIRONMENT HYPOTHESES P: PROCESS HYPOTHESES
S: SUPPLIER/MATERIAL
HYPOTHESES
R: RETAILER/DISTRIBUTOR/
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
Market Segment (Customer Problem/Goal): ……………………….….…

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 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 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

FOCUS PROGRAM FOR TRADITIONAL (WATERFALL) PRODUCT DEVELOPMENT
BUSINESS/
GLOBAL VALUE CHAIN
COMPANY
VISION
CONCEPT
DEVELOPMENT
PRODUCT
DEVELOPMENT
ALPHA/BETA
TEST
LAUNCH/
1st SHIPMENT
REVENUE PLAN
INPUT (SUPPLIERS/
MATERIALS/ENERGY)
ELEMENTS
(EMPLOYEES/
MACHINERY)
Write Business
Plan
Write Marketing
Requirements
Document (MRD)
Hire VP Sales/
Hire Bus. Dev.
Achieve Targets in
Business Plan
PROCESS
(Bus. Process/
Strategies)
Use Waterfall
Model for Product
Development
Do Quality
Assurance Tests
Technical
Publications
OUTPUTS:
PRODUCT/SERVICE
Develop Alpha/Beta
Version of Product
Test Alpha/Beta
Version of Product
Launch Product/
Event
Release Version 2-n
RETAILERS/DISTRIB./
CHANNELS
Select Channel/Do
Marcom Materials
Hire PR Agency/
Create Early Buzz
Create Demand/
Build Channel
Create Demand
CONSUMERS/
Sell
ENVIRONMENT
- GOVERNMENT/NGOs
Fabricate Revenue
Plan
Fabricate Revenue
Plan/
Create Positioning
Do Deals for First
Customer
Shipment (FCS)
Branding/
Do Deals for FCS
Conduct Competitive
Analysis/
Do Deals
Mission/Vision: …………………….………………………………………………….
TRADITIONAL PRODUCT DEVELOPMENT MODEL
Known Customers & Known Product Features
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
Unknown Customers & Unknown Product Features
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

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: ……………………..……

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
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
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

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

ANATOMY OF CUSTOMER EXPERIENCE
Delight & Pain
CUSTOMER
EXPERIENCE
(VALUE =
Delight/Pain)
CUSTOMER
DELIGHT
(Goal)
* Functionality
* Quality
* Branding
* Customization
CUSTOMER
PAIN
(Constraints)
* Cost (Price)
* Inaccessibility
* Complexity
* Process Time/Delay
GURUS
+ -

CUSTOMIZATION
INACCESSIBILITY
FUNCTIONALITY
COST (PRICE)/SIZE
PROCESS TIME
BRANDING
OF PRODUCT/SERVICE
vs.
COMPLEXITY
QUALITY
POSITIONING/FEATURES MAP: Template
GURUS

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

ITENN1998
 Creation of Winamp, the first MP3
playback software for Windows
1989
 Patenting of MP3 Format
(Germany)
1996
 Granting of US Patent for MP3 to
German Inventors
EVOLUTION OF
MP3 TECHNOLOGY
1997
 Invention of AMP, the first MP3
playback program
GURUS
EVOLUTION OF MP3 TECHNOLOGY

ITENN2001
 Nike’s PSA Play120 (for customers
who workout; has armband)
 Apple iPod (5GB; seamless inte-
gration with iTunes music library
for use on Mac computers)
2002
 Apple iPod (20GB; Windows
compatibility; iTunes Music
Store)
1998
 Eiger Labs releases MP3 player:
- MPMan F10 (Flash drive
capacity of 32MB)
- Diamond Rio PMP300 (32MB
Capacity)
2006
 Mainstream popularity of Music-
phones
2007
 Apple iPhone (Multi-touch
screen; etc.)
 Apple iPod Touch Phone (Multi-
touch screen; etc.)
1999
 Release of Sensory Science Rave
MP 2100 (64MB; voice recorder;
FM tuner)
 Creative Labs’ Nomad (docking)
 PJB-100 (Internal hard disk: 4.8GB)
EVOLUTION OF
THE DIGITAL MUSIC PLAYER
2000
 I2Go eGo (Micro-drive: 2GB;
pocket size; high price)
 Creative Labs’ Nomad Jukebox
(6GB; clunky; high quality sound)
2005
 Apple iPod (60GB; color screen)
 Emerging popularity of music –
telephones: Motorola; Samsung;
LG; Nokia; Sony Ericksson
GURUS
EVOLUTION OF THE DIGITAL MUSIC PLAYER

CUSTOMIZATION
 Peripherals
INACCESSIBILITY
 No Wireless Connectivity
 Dock Connector
 Stereo Minijack
FUNCTIONALITY
 Digital Media Player
 4 GB (1,000 Songs)
 8 GB (2,000 Songs)
 2” Screen; Earphones
 Video Support; Photo Support
COST (PRICE)/SIZE
 $149 for 4 GB (49.2g):
2.75 x 2.06 x 0.26 in
PROCESS TIME
 Battery Life:
- Music Playback: 24 hrs
- Video Playback: 5 hrs
 Charge Time: 3 hrs
BRANDING
 Apple Brand
FOR IPOD NANO
vs.
COMPLEXITY
 Ease of Use/Navigation: High
QUALITY
 Consumer Rating:
POSITIONING/FEATURES MAP FOR APPLE’S IPOD NANO
GURUS

CUSTOMIZATION
 Peripherals
INACCESSIBILITY
 Dock Connector
 Stereo Minijack
FUNCTIONALITY
 Digital Music Player
 1 GB (240 Songs)
 No Display or Screen
COST (PRICE)/SIZE
 $149 for 4 GB (49.2g):
2.75 x 2.06 x 0.26 in
PROCESS TIME
 Battery Life:
BRANDING
 Apple Brand
FOR IPOD SHUFFLE
vs.
COMPLEXITY
 Ease of Use/Navigation: Moderate
QUALITY
POSITIONING/FEATURES MAP FOR APPLE’S IPOD SHUFFLE
GURUS

CUSTOMIZATION
 Peripherals
INACCESSIBILITY
 Dock Connector
 Stereo Minijack
FUNCTIONALITY
 80 GB (20,000 Songs)
 160 GB (40,000 Songs)
 2.5” Screen; Earphones
COST (PRICE)/SIZE
 $249 for 80GB (140g):
4.1 x 2.4 x 0.41 in
 $349 for 160GB (162g)
4.1 x 2.4 x 0.53 in
PROCESS TIME
 Battery Life:
BRANDING
 Apple Brand
FOR IPOD CLASSIC
vs.
COMPLEXITY
QUALITY
POSITIONING/FEATURES MAP FOR APPLE’S IPOD CLASSIC
GURUS

CUSTOMIZATION
 Peripherals
INACCESSIBILITY
 Wi-Fi Connectivity
 Dock Connector
 Stereo Minijack
FUNCTIONALITY
 8 GB (1,750 Songs);
 16 GB (3,500 Songs)
 3.5” Multi-touch; Earphones
COST (PRICE)/SIZE
 $299 for 8GB (120g):
4.3 x 2.4 x 0.31 in
 $399 for 16GB (120g)
4.3 x 2.4 x 0.31 in
PROCESS TIME
 Battery Life:
BRANDING
 Apple Brand
FOR IPOD TOUCH
vs.
COMPLEXITY
QUALITY
POSITIONING/FEATURES MAP FOR APPLE’S IPOD TOUCH
GURUS

IMPACTS
SYSTEM
VOICE OF THE CUSTOMER IN CORE & PERIPHERAL INDUSTRIES: Hypotheses vs. Reality
Decision Criteria:
Needs & Barriers
COMPETITORS
Function/
Content/
Perf/
Knowledge
Quality/
Reliability/
Accuracy/
Efficiency
Brand/
Emotion/
Style/Aura/
Prestige
Customization/
Personalization/
Interactivity/
Fun/Entertain.
Cost
(Price)
Inaccessibility/
Unavailability/
Inflexibility/
Friction/Scale
Complexity/
Difficulty/
Support/
Range/Risk
Process
Time/
Delay/
Age
IMPORTANCE
Given Product:
iPod Nano
Hold 1,000
songs (4 GB)
Watch
Photos/Video
High quality Apple Brand Color
Capacity Choice
$149 Pocketable
No Wireless
Connection
Simple to use
Store-Service
Support
24hr Music
Playback
CORE
COMPETI-
TORS:
iPod Shuffle
Hold 240
songs (1 GB)
Capacity Choice
$79 Ultra-pocketable
No Wireless
Connection
Simple to use
Store-Service
Support
12hr Music
Playback
PERIPHERAL
COMPETITORS
iPod Classic
Hold 20,000
songs (80 GB)
Watch
Photos/Video
Capacity Choice
$249 Pocketable
No Wireless
Connection
Simple to use
Store-Service
Support
40hr Music
Playback
REMOTE
COMPETI-
TORS:
iPod Touch
Hold 1,750
songs (8 GB);
Watch Video/
Photos; Multi-
touch Screen
Capacity Choice
Multi-touch Screen
$299 Pocketable
Wi-Fi Connection
Simple to use
Store-Service
Support
22hr Music
Playback
CUSTOMER EXPERIENCE OF COMPETITORS FOR APPLE’S IPOD NANO
GURUS
Market Segment (Customer Problem/Goal): Listen to
Music/View Photos/Watch Videos/Manage Personal Info’
Mission/Vision: “… Apple leads the digital music revolution. …”

IMPACTS
SYSTEM
Decision Criteria:
Needs & Barriers
CURVES
Function/
Content/
Perf./
Knowledge
Quality/
Reliability/
Accuracy/
Efficiency
Brand/
Emotion/
Style/Aura/
Prestige
Customization/
Personalization/
Interactivity/
Fun/Entertain.
Cost
(Price)
Inaccessibility/
Unavailability/
Inflexibility/
Friction/Scale
Complexity/
Difficulty/
Support/
Range/Risk
Process
Time/
Delay/
Age
WEIGHT
(IMPORTANCE)
Given Product:
iPod Nano
Hold 1,000
songs (4 GB)
High quality Apple Brand Color/
Capacity Choice
$149 Pocketable/
No Wireless
Simple to use/
Store-Service
24hr Music
Playback
CUSTOMER
EXPERIENCE
CURVES
10
8
6
4
2
0
CUSTOMER EXPERIENCE CURVES FOR APPLE’S IPOD NANO
How to Zoom In and Out of BUMPs in Core & Peripheral Industries?
KEY -> 1: Low level; 10: Extraordinary level of customer experience iPod Nano
“iPod Shuffle
“iPod Classic
GURUS

IMPACTS
SYSTEM
Decision Criteria:
Needs & Barriers
TACTICS
Function/
Content/
Perf./
Knowledge
Quality/
Reliability/
Accuracy/
Efficiency
Brand/
Emotion/
Style/Aura
Prestige
Customization/
Personalization/
Interactivity/
Fun/Entertain.
Cost
(Price)
Inaccessibility/
Unavailability/
Inflexibility/
Friction/Scale
Complexity/
Difficulty/
Support/
Range/Risk
Process
Time/
Delay/
Age
WEIGHT
(IMPORTANCE)
Given Product:
iPod Nano
6 8 8.5 2 7 6 3 8
Core Compet.
iPod Shuffle
5 8 8.5 2 4 6 2 5
Peripheral Compet.
iPod Classic
8.5 8.5 8.5 6 9 6 4 9
E: Eliminate
R: Reduce
I: Increase Screen Size
Storage
Quality of
Sound
Fun
Entertainment
Price Thickness
Weight
C: Create Multi-touch
Screen
Digital
Media Hub
Wi-Fi Multi-touch
Navigation
CUSTOMER EXPERIENCE TACTICS FOR APPLE’S IPOD NANO
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
Screen Size; Storage;
Fun; Entertainment;
Thickness; Weight;
Price
Multi-touch
screen; Digital
Media Hub;
Wi-Fi
RETAILERS/DISTRIB./
CHANNELS
iTunes; apple.com;
Apple Stores/Others
CONSUMERS/
Mass Market
ENVIRONMENT
- GOVERNMENT/NGOs
Record Companies/
Original Equipment
Manufacturers
(OEMs)/…
BUSINESS MODEL PIVOT FOR APPLE INC.: iPod - 2001
SYSTEM
Market Segment (Customer Problem): Commoditized ProductsMission/Vision: “… Apple leads the digital music revolution. …”

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: …………………..…..

ITENN
1.1 STATE YOUR HYPOTHESIS 1.2 TEST “PROBLEM” HYPOTHESIS
1.0 CUSTOMER DISCOVERY
1.3 TEST “PRODUCT” HYPOTHESIS
GURUS
1.0 CUSTOMER DISCOVERY MAP: Example
Theme/Topic: CUSTOMER DEVELOPMENT METHODOLOGY

ITENN
1.14 DEMAND CREATION
HYPOTHESIS
1.15 MARKET TYPE HYPOTHESIS
1.11 PRODUCT HYPOTHESIS 1.12 CUSTOMER & PROBLEM
HYPOTHESIS
1.1 STATE YOUR HYPOTHESIS
1.13 DISTRIBUTION & PRICING
HYPOTHESIS
1.16 COMPETITIVE HYPOTHESIS
GURUS
1.1 STATE-YOUR-HYPOTHESIS MAP
Theme/Topic: CUSTOMER DEVELOPMENT METHODOLOGY/CUSTOMER DISCOVERY

ITENN1.114 Benefit List: What do the
features let a customer do?
1.116 Will these benefits be accept-
ed as such or do they need
explanation?
1.111 What problem are you
solving?
1.117 What Intellectual Property
(IP) of ours will be unique?
1.118 What is the total cost of
ownership of your product?
1.119 Dependency Analysis:
Are you dependent on …
to happen before your
product can sell in volume?
1.112 One Page Product List: What
are the technical attributes of
the Product?
1.11 PRODUCT HYPOTHESIS
1.113 Will these features be well
understood or do they require
explanation?
1.116 What is the initial delivery
schedule?
When will all of these
features be available?
GURUS
1.11 PRODUCT-HYPOTHESIS MAP

ITENN
1.21 FRIENDLY FIRST CONTACTS 1.22 “PROBLEM” PRESENTATION
1.2 TEST “PROBLEM”
HYPOTHESIS
1.23 CUSTOMER UNDERSTANDING
GURUS
1.2 TEST-“PROBLEM”-HYPOTHESIS MAP

ITENN1.34 SECOND REALITY CHECK 1.35 1st ADVISORY BOARD
1.31 FIRST REALITY CHECK
1.37 VERIFY THE PRODUCT MORE …
1.38 VERIFY THE BUSINESS MODEL
1.39 ITERATE OR EXIT
1.32 “PRODUCT” PRESENTATION
1.3 TEST “PRODUCT”
HYPOTHESIS
1.33 YET MORE CUSTOMER VISITS
1.36 VERIFY THE PROBLEM
GURUS
1.3 TEST-“PRODUCT”-HYPOTHESIS MAP

(-): 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

THE CUSTOMER DEVELOPMENT ROADMAP: A Minimum Viable Toolset for Systematically Creating Blue Ocean Startups

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