business model moviemaking: rapidly visualize, prototype, and test your business plot, strategy...

Rapidly Visualize Your Business Plot and Value Proposi5on Business Story Theater

Rapidly Visualize, Prototype, and Test Your Business Plot, Strategy Story, Value Proposi5on, and Business Model

"You can have the best technology, you can have the best business model, but if the storytelling isn't amazing,

it won't maDer."

World-‐class Coaching on Business Model Moviemaking & Econgineering for Less Than $10/Month: h;p://businessmodels.ning.com Ambidextrous Growth Strategist. Dr. Rod King. [email protected] & h;p://businessmodels.ning.com & @rodKuhnKing

C: Customer

S: Supplier

Payment (Feedback; Reward)

Product/Service OTHER Loop


Red Ocean Disrup5on (ROD) Storyboard


DISRUPTION PROBLEM (Trade-‐off)

IDEAL SOLUTION (Zero Trade-‐off)

ENVIRONMENT (Trade-‐off; Context: Place; Time; Cue/Trigger/Signal) – Why Change?

STRATEGY

(How best to change & win?) CURRENT ECOSYSTEM (What to change?)

FUTURE ECOSYSTEM (To what to change?)

C: Customer

S: Supplier






CONVENTION VISION DISRUPTION


STRATEGY



C: Customer

S: Supplier







1 3 2

ENVIRONMENT (Trade-‐off; Context: Place; Time; Cue/Trigger/Signal) – Why Change? 0

STRATEGY



C: Customer

S: Supplier






1 3 2

Industry/Market (Job To Get Done): ……………………………………………………………………………………………………………………………………….


STRATEGY



C: Customer

S: Supplier


Product/Service




1 3 2


OTHER Loop


STRATEGY



C: Customer

S: Supplier


Product/Service




1 3 2


OTHER Loop

TO DO DONE DOING


STRATEGY



C: Customer

S: Supplier


Product/Service


(How best to change & win?)

Strategy

Product (Current Business Model Trade-‐off)

Vision (Future Business Model Trade-‐off) OTHER Loop

(Build-‐Measure-‐Learn Loop)

Red Ocean Disrup5on (ROD) Storyboard for Lean Startup Movies


TO DO DONE DOING


CURRENT ECOSYSTEM (What to change?)


C: Customer

S: Supplier


Product/Service




Vision (Future Business Model Trade-‐off)

Industry/Market (Job To Get Done): Travel from one place to another … quickly and safely

1 3 2

OTHER Loop

(Build-‐Measure-‐Learn Loop)


How Apple/Steve Jobs Simply Created a Business Model Movie That Disrupted the Music Industry Ex

ample

TO DO DONE DOING



Strategy CURRENT ECOSYSTEM (What to change?)


C: Customer

S: Supplier


Product/Service



How Apple/Steve Jobs Simply Created a Business Model Movie That Disrupted the Music Industry


Vision (Future Business Model Trade-‐off)

Industry/Market (Job To Get Done): Listen to music (song collec`on/library) … everywhere

1 3 2

Exam

ple

OTHER Loop

(Build-‐Measure-‐Learn Loop) TO DO DONE DOING



Strategy CURRENT ECOSYSTEM (What to change?)


How to Simply, Effec5vely, and Quickly Tell BUSINESS MODEL STORIES

Use a Business Story Theater

A Business Story Theater Is A 1-‐Page Diagram or Snapshot of

A Business System Hierarchy at a Given Point in Time:

Defini5on of “Business Story Theater”


q  Business System: Enterprise (Business Model) q  Local Environment: Industry/Market q  Global Environment

Business Model (System)

Environment (Global)

Industry (Market)




CONTEXT (Strategic Choices): Where and when to differently compete/play/win?




CONTEXT (Strategic Choices): Where and when to differently compete/play/win?

BUSINESS MODEL CHOICES




ENVIRONMENT (Global: Job To Get Done; Problem; Trade-‐off)

INDUSTRY (Market: Job To Get Done; Problem; Trade-‐off)




BUSINESS MODEL STORY






BUSINESS MODEL (Enterprise)







ENVIRONMENT (INDUSTRY/MARKET: Job To Get Done; Problem; Trade-‐off)


The 3 Types of Business Models On the Planet

BUSINESS MODEL CLASSIFICATION SYSTEM

(Taxonomy)

Business Model PLATFORM

Business Model PIPE

2-‐SIDED MARKET/ Business Model

MULTI-‐SIDED MARKET/

Business Model

1-‐SIDED MARKET/ Business Model

Pipe Diamond Valley






SUPPLIER Customer

One-‐sided Market/Business Model -‐ Chain (Pipe)

Examples u  Single Product Factory u  Encyc. Britannica u  Tradi<onal Taxi u  Tradi<onal Hotel u  iPod





SUPPLIER Customer

Customer

Two-‐sided Market/Business Model -‐ Valley (Pladorm)

Examples u  Two Product Factory u  Wikipedia u  Uber u  Airbnb u  iPod/iTunes





Mul5-‐sided Market/Business Model -‐ Diamond (Pladorm)

SUPPLIER Customer

Customer

Customer

Examples u  Mul<-‐Product Factory u  Google (Search) u  eBay u  Amazon u  iPhone/App Store



Business Model Storytelling

“The business model tells a logical story explaining who your customers are, what they value, and

how you’ll make money providing that value.” Joan MagreTa



Who? What? How?

Why?



Who? What? How?

Why?

Supplier Product/Service Customer

Value (Profit)



Who? What? How?

Why?

Supplier

How does supplier or enterprise create value for customers?

Product/Service What do customers value?

Customer Who are the customers?

Value (Profit) Why does enterprise make money, profit, or win?

C: Customer

S: Supplier


Product/Service



C: Customer

S: Supplier


Product/Service



Who? What? How?

Why?

Joan MagreTa’s STORY-‐BASED DEFINITION OF A BUSINESS MODEL

“The business model tells a logical story explaining who your customers are, what they value, and how you’ll make money providing that value.”

Who? How?

Why?

C: Customer

S: Supplier


Product/Service

What?


Who? How?

Why?



What?




Who? How?

Why?

Business Model Story (BMS) View

What?




Who? How?

Why? u  V A L U E C A P T U R E

u  V A L U E C R E A T I O N u  V A L UE D E L I V E R Y

Business Model Func<on (BMF) View

What?




Who? How?

Why? u  VALUE MAP Engine

u  ENTERPRISE Engine u  CUSTOMER GROWTH Engine

Business Model Engine (BME) View

What?




Who? How?

Why? v  FINANCIAL Perspec5ve

v  CUSTOMER Perspec5ve v  LEARNING & GROWTH Perspec5ve

v  PROCESS Perspec5ve

Balanced Scorecard (BSC) View

What?




Who? How?

Why? Ø  VALUE: PROFIT (MARGIN)

Ø  DEMAND INFRASTRUCTURE Ø  SUPPLY INFRASTRUCTURE

Value Infrastructure View

Ø  OFFER

What?




Who? How?

Why?

q  Suppliers/Inputs (KP)

q  Key Resources (KR)

q  Key Ac`viès (KA)

q  Customer Segments (CS)

q  Channels (CH)

q  Customer Relaònships (CR)

q  Product/Service (PS)

q  PAIN (Cost/Structure: C$)

q  DELIGHT (Revenue Streams: R$)

q  Profit Margin (P$); Strategy/Value Proposiòn (VP)

Advanced Business Model Canvas (BMC) View

What?




Who? How?

Why?

q  Firm Infrastructure q  HR Management q  Technology Development q  Procurement

q  Inbound LogisZcs q  OperaZons

q  Outbound LogisZcs

q  MarkeZng & Sales

q  Service

q  Profit Margin

Value Chain (VC) View

What?


C: Customer

S: Supplier


Product/Service

“A business model presents a coherent story of why and how

a business sustainably wins customers and makes profit or shares value.”

Rod King Who? How?

Why?

What?

C: Customer

S: Supplier


Product/Service

Startups and Established Companies Must Rapidly Create and Manage

Red Ocean Disrup5on (ROD) Storyboards: Stories About How Red Ocean Business Models are Disrupted By

Ideal (Blue) Ocean Business Models Who? How?

Why?

What?

A Red Ocean Disrup5on (ROD) Storyboard Is

Dynamic Visual Template That Answers 4 Fundamental Ques5ons

Of A Change Management Project

Current Ecosystem (Business Model): What to Change?

Future Ecosystem (Business Model): To What to Change?

Strategy: How Best to Change & Win?

What Really is a Red Ocean Disrup5on (ROD) Storyboard?

1

3

2

Environment: Why Change? 0

C: Customer

S: Supplier






Note OTHER is an acronym for Observe; Think; Hypothesize; Experiment; Reflect. The OTHER Loop is a generic tac`c for itera`vely achieving goals, objec`ves, strategies, and targets.


STRATEGY



C: Customer

S: Supplier







STRATEGY



C: Customer

S: Supplier








STRATEGY



C: Customer

S: Supplier






RED OCEAN IDEAL OCEAN


STRATEGY



Present (“As Is”) Future (“To Be”)

Rapidly Visualize Your Red Ocean Disrup5on (ROD) Story Red Ocean Disrup5on (ROD) Storyboard


Examples of Red Ocean Disrup`on (ROD) aka Blue Ocean Strategy (BOS) Stories Ringling Brothers vs. Cirque du Soleil; Tradi5onal Long-‐haul Airlines vs. Southwest Airlines; Tradi5onal Wine vs. Yellow Tail; Walkman vs. iPod; Borders vs. Amazon; Blockbuster vs. Neilix; Encyclopedia Britannica vs. Wikipedia; Tradi5onal Hotels vs. Airbnb

RED OCEAN

IDEAL OCEAN

What to change? To what to change?

How best to change & win?



Infancy

Birth

Growth

Chasm



Maturity

RED OCEAN

IDEAL OCEAN





Infancy (Shaping Strategy)

Birth (AdapZve Strategy)

Growth (Visionary Strategy)

Maturity (Classic Strategy) Chasm



RED OCEAN

IDEAL OCEAN







RED OCEAN

IDEAL OCEAN





Prototype

Pretotype

Pilot

Full-‐scale Chasm



RED OCEAN

IDEAL OCEAN





Customer Valida5on (Startup)

Customer Discovery (Startup)

Company Crea5on

Company Building Chasm



RED OCEAN

IDEAL OCEAN





Problem-‐Solu5on Fit

Chasm



RED OCEAN

IDEAL OCEAN





Product-‐Market Fit


Chasm



RED OCEAN

IDEAL OCEAN







Business Model Fit

Chasm



RED OCEAN

IDEAL OCEAN







Business Model Fit

Scaling Chasm



RED OCEAN

IDEAL OCEAN





Chasm



RED OCEAN

IDEAL OCEAN




Chasm



RED OCEAN

IDEAL OCEAN



q  Reality/Facts (External & Internal Trade-‐offs)


Business Model Resources/ Value Factors & Trade-‐offs q  S: Strengths (1-‐10) q  W: Weaknesses (1-‐10) q  O: Opportuni5es (1-‐10) q  T: Threats (1-‐10)

Chasm



RED OCEAN

IDEAL OCEAN





q  Core Purpose/Mission q  Vision q  Core Values q  Goal q  Objec5ves/“Jobs” (Physical/Intellectual/ Emo`onal/Spiritual)


Chasm



RED OCEAN

IDEAL OCEAN





q  Core Purpose/Mission q  Vision q  Core Values q  Goal q  Objec5ves/“Jobs” (Physical/Intellectual/ Emo`onal/Spiritual)

q  ROD Strategy/Tac5cs/Targets -‐  Minimize Weaknesses/Threats/ Pain/Risks/Disadvantages -‐  Maximize Strengths/Opportuni5es/

Delight/Rewards/Advantages -‐  Rapidly Experiment & Learn (4 Heuris`cs): •  OTHER: Observe; Think; Hypothesize;

Experiment; Reflect •  OODA: Observe SWOT; Orient; Decide; Act •  BML: Build-‐Measure-‐Learn Loop •  ERIC (R.O.D. Disrup5on): Eliminate;

Reduce; Increase; Create


Chasm



RED OCEAN

IDEAL OCEAN




C: Customer

S: Supplier


Product/Service

A Red Ocean Disrup5on (ROD) Story Hardly Plays Out

As Planned or WriDen in Detail

OTHER Loop

Red Ocean (“As Is”) Business Model

Ideal/Blue Ocean (“To Be”) Business Model




C: Customer

S: Supplier


Product/Service

Does Any Planned Blue Ocean Business Model Survive

First Contact With Customers?

OTHER Loop




Red Ocean (“As Is”) Business Model

Ideal/Blue Ocean (“To Be”) Business Model

VALUE MAP

BLUE OCEAN

RED OCEAN

(+): DE

LIGHT

Low (1)

High (10)

Low: (1)

High: (10)

SWEET SPOT LUXURY SPOT

DISRUPTION SPOT

(-‐): PAIN

Job To Be Done (Market/Goal): ……………………………………………………………………………………………………………….……………. Big Urgent Market Problem (BUMP): ……………………………………………………………………………………………………………………..

VALUE MAP

BLUE OCEAN

RED OCEAN

(+): DE

LIGHT

: Differen

5a5o

n

Low (1)

High (10)

Low: (1)

High: (10)

SWEET SPOT LUXURY SPOT

DISRUPTION SPOT

(-‐): PAIN: Cost

Job To Be Done (Market/Goal): ……………………………………………………………………………………………………………….……………. Big Urgent Market Problem (BUMP): ……………………………………………………………………………………………………………………..

Stages of

4Q-‐Business Model Strip



C: Customer

S: Supplier


Product/Service

BUSINESS PLOT (STRATEGY STORY)





C: Customer

S: Supplier


Product/Service


UPPER Stage

LOWER Stage





C: Customer

S: Supplier


Product/Service


Center Stage Back Stage Front Stage

LOWER Stage





C: Customer

S: Supplier


Product/Service

Who? What? How?

Why?


Center Stage Back Stage Front Stage

LOWER Stage





C: Customer

S: Supplier


Product/Service

Product Stage Enterprise Stage Customer Stage

VALUE Stage

Who? What? How?

Why?







VALUE Stage

Who? What? How?

Why?







VALUE Stage

Who? What? How?

Why?

q  Suppliers/Inputs (KP)

q  Key Resources (KR)

q  Key Ac`viès (KA)

q  Customer Segments (CS)

q  Channels (CH)

q  Customer Relaònships (CR)

q  Product/Service (PS)

q  PAIN (Cost/Structure: C$)

q  DELIGHT (Revenue Streams: R$)

q  Profit Margin (P$); Strategy/Value Proposiòn (VP)



VALUE Stage

Who? What? How?

Why?

Story

ENTERPRISE (Team; Core Competence)

PRODUCT CUSTOMER

FINANCE





VALUE Stage

Who? What? How?

Why?

Editor

PRODUCT CUSTOMER

FINANCE



ENTERPRISE (Team; Core Competence)


Seman5c Structure of

4Q-‐Business Model Strip

C: Customer

S: Supplier


Product/Service

Rapidly Visualize Your Business Plot and Value Proposi5on 4Q-‐Business Model Strip




C: Customer

S: Supplier


Product/Service

SUPPLIER PRODUCT/SERVICE CUSTOMER





C:

Customer (Subject)

S: Supplier


Product/Service


Context: Place/Time; Trigger





C:

Customer (Subject)

S: Supplier

Product/Service







C:

Customer (Subject)

S: Supplier

Product/Service



Job To Get Done (Outcome; Value: Delight; Pain)





C:

Customer (Subject)

S: Supplier

Product/Service


Object


hires

operates on [verb: wants]






What is a “Business Plot”?

A Business (Enterprise) Plot Describes

A Minimum Viable Story of A Business (Plan):

The Simplest Descrip`on of An Enterprise’s Supply Chain

or A Minimum Business Model

BIG BANG BUSINESS (BBB) TOOL

A Business (Enterprise) Plot Is

The First Stage in The Evolu5on of a Classic Business Plan

BIG BANG BUSINESS (BBB) TOOL

A Classic Business Plan involves a detailed (long) future story that coherently explains why and how a business would sustainably win customers and make profit or share value

5 Stages in the Evolu5on of a Classic Business Plan

Tools for Rapidly Planning, Crea5ng, and Managing an Ambidextrous Growth Strategy for Enduring Compe55ve Advantage

A Business Plan is like a bu;erfly. It metamorphosizes from a Strategy Story and Value ProposiZon Story through a Business Model Story to a Strategy Map and Classic Business Plan.

Five Stages in the Evolu5on of a Classic Business Plan

VALUE PROPOSITION STORY

CLASSIC BUSINESS PLAN

BUSINESS/ENTERPRISE PLOT (Strategy Story)

STRATEGY MAP (BSC)

BUSINESS MODEL STORY

1

2

3

4

5

Simple (Abstract; Flexible)

Complex (Detailed; Rigid)

Short Story

Long Story


Explore BUSINESS

MODEL STORY

Ramp up

Reconfigure

Pretotype

Prototype

CONTINUOUS INNOVATION

AMBIDEXTROUS GROWTH STRATEGY

Exploit

CONTINUOUS IMPROVEMENT

VALUE PROPOSITION STORY CLASSIC BUSINESS PLAN

BUSINESS/ENTERPRISE PLOT (Strategy Story) STRATEGY MAP (BSC)

Job To Get Done

Changing Environment (Industry)

Stable Environment

(Industry)

5 Stages in the Evolu5on of a Classic Business Plan

Tools for Rapidly Planning, Crea5ng, and Managing an Ambidextrous Growth Strategy for Enduring Compe55ve Advantage


Business Story Hierarchy 5 Levels of a Business Story

Rapidly Visualize, Prototype, and Test Your Strategy Story, Value Proposi5on, and Business Model

BUSINESS STORY (Title/Headline)

Strategy Story

Value Prop. Story

Business Model Story

Story Outline (Blueprint)

Customer Plot

AcZng Script

5 Levels of Business Story

Classic Business Plan

Strategy Map (Balanced Scorecard)

Manuscript

= Minimum Viable Story (MVS)



Short Story

Long Story

Business/Enterprise Plot


Business Story Hierarchy 5 Levels of a Business Story

Rapidly Visualize, Prototype, and Test Your Strategy Story, Value Proposi5on, and Business Model

BUSINESS STORY (Title/Headline)

Strategy Story

Value Prop. Story

Business Model Story

Business/Enterprise Plot

Story Outline (Blueprint)

Customer Plot

AcZng Script

5 Levels of Business Story

Classic Business Plan

Strategy Map (Balanced Scorecard)

Manuscript

= Minimum Viable Story (MVS)



Short Story

Long Story


What Really is a “Strategy Story”?

Coined by Freek Vermeulen, A “Strategy Story” Usually Refers to

A Textual Business (Enterprise) Plot: A Sentence or Line That Succinctly Tells

the Story of an Organiza`on From

The Point of View of the Organiza`on

A “Strategy Story” or

Textual Business (Enterprise) Plot Answers, at least, 4 Ques`ons (4Q) About an Organiza`on, a Business, or Project:

q  Why? q  Who? q  What? q  How?

The Format of A Strategy Story or Textual Business Plot

Is as Follows:

“[Supplier] offers [Product/Service] to

[Customer (who wants Job To Get Done &

Outcome; Reward; Delight; Value)].”

Example

C: Customer

S: Supplier


Product/Service

SUPPLIER PRODUCT/SERVICE CUSTOMER We provide

specialty magazines for young males in Britain (who want [Reward; Delight; Value])





Main source of informa`on in table: “A Good Strategy Makes for a Good Story” by Freek Vermeulen: h;ps://strategyprofs.wordpress.com/2012/07/06/a-‐good-‐strategy-‐makes-‐for-‐a-‐good-‐story/

C: Customer

S: Supplier


Product/Service



We make perfect scale models (which appeal to some sense of nostalgia) for

adult collectors (who want [Reward; Delight; Value])






C: Customer

S: Supplier


Product/Service





We offer ultra-‐portable music players to music lovers (who want 1000 songs in their pocket)






C: Customer

S: Supplier


Product/Service





We offer ultra-‐portable music players to music lovers (who want 1000 songs in their pocket)

Who? What? How?

Why?






Templates of “Business Model Strips”

WHAT IS A “BUSINESS MODEL STRIP”?

A Business Model Strip is a map that illustrates an exchange, a transac5on, or play between a sender (supplier) and receiver (customer).

RECEIVER SENDER


P.I.G.S.

(Product/Informa<on/Goods/Service)

Templates of “Business Model Strips”

WHAT IS A “BUSINESS MODEL STRIP”?

A Business Model Strip is a map that illustrates an exchange, a transac5on, or play between a sender (supplier) and receiver (customer).

IT BUSINESS PLOT (STRATEGY STORY)

RECEIVER SENDER


P.I.G.S.






SENDER P.I.G.S. RECEIVER

RECEIVER SENDER


P.I.G.S.






C: Customer

S: Supplier


Product/Service






C: Customer

S: Supplier


Product/Service


Who? What? How?

Why?





C: Customer

S: Supplier


Product/Service


O: Observe

T: Think

H: Hypothesize

E: Experiment

R: Reflect

Who? What? How?

Why? O.T.H.E.R. BUSINESS PLOT (STRATEGY STORY)




C: Customer

S: Supplier


Product/Service

SUPPLIER PRODUCT/SERVICE CUSTOMER Descrip5on

Delight (+)

Pain (-‐)

VALUE (+/-‐)

Who? What? How?

Why? Value BUSINESS PLOT (STRATEGY STORY)




C: Customer

S: Supplier


Product/Service


Innova5on Strategy

Improvement Strategy

AMBIDEXTROUS STRATEGY

Who? What? How?

Why? Ambidextrous BUSINESS PLOT (STRATEGY STORY)




C: Customer

S: Supplier


Product/Service


Who? What? How?

PAST

PRESENT

FUTURE

Why? Evolu`onary BUSINESS PLOT (STRATEGY STORY)




C: Customer

S: Supplier


Product/Service


Who? What? How?

GRAY OCEAN

RED OCEAN

BLUE OCEAN

Why? Evolu`on BUSINESS PLOT (STRATEGY STORY)




C: Customer

S: Supplier


Product/Service


Who? What? How?

CONVENTION

DISRUPTION

VISION

Why? Disrup`on BUSINESS PLOT (STRATEGY STORY)




C: Customer

S: Supplier


Product/Service


Who? What? How?

DIFFERENTIA-‐TION

Strategy

LOW COST Strategy

VALUE INNOVATION

Strategy

Why? Value Innova`on BUSINESS PLOT (STRATEGY STORY)




C: Customer

S: Supplier


Product/Service


Who? What? How?

1

2

3

Plot

Outline/ Blueprint

Script

Why? Hierarchical BUSINESS PLOT (STRATEGY STORY)




C: Customer

S: Supplier


Product/Service


Who? What? How?

Value Capture Value Crea5on Value Delivery 1

Why? BUSINESS PLOT (STRATEGY STORY)




C: Customer

S: Supplier


Product/Service


Who? What? How?

Value Capture Value Crea5on Value Delivery

q  Financial Perspec`ve q  Learning & Growth Perspec`ve q  Process Perspec`ve

q  Customer Perspec`ve

1

2





C: Customer

S: Supplier


Product/Service


Who? What? How?




u  Enterprise Engine u  Customer Growth Engine u  Value Map Engine

1

2

3





C: Customer

S: Supplier


Product/Service


Who? What? How?




u  Enterprise Engine -‐  Supplies/Inputs/Key Partners (KP) -‐  Key Resources (KR); Key AcZviZes (KA) -‐  Product/Service (PS)

u  Customer Growth Engine -‐  Value ProposiZon (VP) -‐  Channels/RelaZonships (CH/CR) -‐  Customer Segment (CS)

u  Value Map Engine -‐  Profit Margin (P$); Strategy -‐  Revenue Streams (R$) -‐  Cost Structure (C$)

1

2

3





C: Customer

S: Supplier


Product/Service

SUPPLIER PRODUCT/SERVICE CUSTOMER Situa5on (Exis`ng)

Complica5on

Ques5on

Answer

Who? What? How?

Why? Pyramid BUSINESS PLOT (STRATEGY STORY)




C: Customer

S: Supplier


Product

Who? What? How?

Why?





Who? What? How?

Why?


Rapidly Visualize Your Business Plot and Value Proposi5on 4Q-‐Business Model Theater



Who?

What?

How?

Why?


Rapidly Visualize Your Business Plot and Value Proposi5on 4Q-‐Business Model Diamond



Customer

Product/Service

Supplier




Outcome/ Value


Customer

Product/Service

Supplier




Outcome/ Value

provides (delivers)

rewards (pays)


Customer

Product/Service

Supplier

Outcome/ Value




provides (delivers)

rewards (pays)





Customer

Product/Service

Supplier

Outcome/ Value






Compe5tors (New Entrants/Startups; Incumbents)

Customer

Product/Service

Supplier

Outcome/ Value

Complementors

Supp

liers (Ind

ustry)

Custom

ers (Market)


Zooming In and Out of Each Node

On 4Q-‐Business Model Canvas

C: Customer

S: Supplier

Business Model Strip (System: Customer Growth Factory)

Payment (Reward)

Product




Zoomable Node

C: Customer

S: Supplier


Payment (Reward)

Product




Object Pain: -‐ (Cost/Structure)

Delight: + (Revenue/Streams)

Value: +/-‐ (Trade-‐off/Margin)

Goal/Job To Get Done (JTGD)

Zoomable Node

C: Customer

S: Supplier


Payment (Reward)

Product




Business Model

Pain: -‐ (Cost/Structure)




Bus. Model Node

C: Customer

S: Supplier


Payment (Reward)

Product




C: Customer





Customer Node

C: Customer

S: Supplier


Payment (Reward)

Product




Product





Product Node

C: Customer

S: Supplier


Payment (Reward)

Product




Payment





Payment Node

C: Customer

S: Supplier


Payment (Reward)

Product




S:

Supplier Pain: -‐ (Cost/Structure)




Supplier Node

C: Customer

S: Supplier


Payment (Reward)

Product




Three More Examples …

C: Customer

S: Supplier


Product/Service

SUPPLIER PRODUCT/SERVICE CUSTOMER We offer

a broad range of goods to mass of customers (who want everyday low prices)

We offer trusted and convenient face-‐to-‐face financial advice to

conserva5ve individual investors (who want to delegate their financial decisions to trusted advisers)

We make replicable television produc5ons for interna5onal tv sta5ons (who want easy-‐to-‐launch tv shows)

Who? What? How?

Why?





C: Customer

S: Supplier

Feedback (Experience; Reward)

Product/Service

Facebook’s Strategy Story, Value Proposi5on, and MVP (2004/2015) 4Q-‐Business Model Strip


SUPPLIER PRODUCT/SERVICE CUSTOMER 2004

We offer an online directory to college/university students (who want to connect through social networks at colleges/universi`es)

2015 We offer

an online social network for people (who want to connect and share with the people in their life)

Facebook’s BUSINESS PLOT (STRATEGY STORY)

Who? What? How?

Why?


C: Customer

S: Supplier


Product/Service


We offer an easy-‐to-‐use coffee machine to coffee lovers (who want high quality espresso made at home/in the office)

Delight (+)

Pain (-‐)

VALUE (+/-‐) “Blue Ocean” “Extraordinary Profit Margin” “Awesome Customer Experience”

Who? What? How?

Why?

Nespresso’s Strategy Story, Value Proposi5on, and MVP 4Q-‐Business Model Strip


Nespresso’s BUSINESS PLOT (STRATEGY STORY)


Design and Test a Magne5c Value Proposi5on (MVP)

For Product-‐Market Fit

C: Customer

S: Supplier


Product/Service

Apple’s iPod Strategy Story and Value Proposi5on 4Q-‐Business Model Strip


Apple’s iPod BUSINESS PLOT (STRATEGY STORY)

Who? What? How?

Why?


We make ultra-‐portable music players for music lovers (who want 1000 songs in their pocket)

Delight (+)

“Dent in the universe”

Pain (-‐)

VALUE (+/-‐) “Blue Ocean” “Extraordinary Profit Margin” “Insanely Great Experience”


C: Customer

S: Supplier


Product/Service






Delight (+)


Pain (-‐)



C:

Customer (Subject)

Product/Service

Music

hires

to play listens to






Delight (+)


Pain (-‐)



S: Supplier



Appendix: Case Study

Design and Test a Magne5c Value Proposi5on (MVP)

For Product-‐Market Fit

C: Customer

S: Supplier


Product/Service

ROD University’s Strategy Story and Value Proposi5on 4Q-‐Business Model Strip


SUPPLIER PRODUCT/SERVICE CUSTOMER Descrip5on ROD University

We offer world-‐class coaching on business model storytelling to

busy leaders (who want to effecZvely inspire, convince, and entertain stakeholders)

Delight (+)

q  High Quality q  Speed q  Simplicity

Pain (-‐)

q  Low Cost


ROD University’s BUSINESS PLOT (STRATEGY STORY)

Who? What? How?

Why?


C:

Customer (Subject)

Product/Service

Business Growth

hires

to increase wants

S: Supplier

ROD University’s Strategy Story and Value Proposi5on 4Q-‐Business Model Strip


SUPPLIER PRODUCT/SERVICE CUSTOMER Descrip5on ROD University

We offer world-‐class coaching on business model storytelling to

busy leaders (who want to effecZvely inspire, convince, and entertain stakeholders)

Delight (+)

q  High Quality q  Speed q  Simplicity

Pain (-‐)

q  Low Cost


ROD University’s BUSINESS PLOT (STRATEGY STORY)




Appendix

Seman5c Business Model Strip

BENE-‐FACTOR

NOUN +

VERB

Benefit (EmoZon; Reward)

OBJECT



Seman5c BUSINESS PLOT (STRATEGY STORY)


BENE-‐FACTOR

SUBJECT +

VERB


OBJECT




SUBJECT + VERB OBJECT BENEFACTOR

Seman5c BUSINESS PLOT (STRATEGY STORY)







PATIENT HEALTH FACILITY

HEALTH PRODUCT/SERVICE

Health BUSINESS PLOT (STRATEGY STORY)

HEALTH FACILITY HEALTH PRODUCT/SERVICE PATIENT







PATIENT HEALTH FACILITY

HEALTH PRODUCT/SERVICE

Health BUSINESS PLOT (STRATEGY STORY)

HEALTH FACILITY HEALTH PRODUCT/SERVICE PATIENT

AGENT + ACTION TOOL USER


business model moviemaking: rapidly visualize, prototype, and test your business plot, strategy...

Business

customer s

strategy howbesttochangewin

currentecosystem whattochange

futureecosystem towhattochange