zoomable project canvas for business model improvement and disruption - vdd university
DESCRIPTION
There is an emerging school of thought which advocates that startups should ‘pitch’ their business models rather than business plans. Accordingly, startups should present their business model using a one-page business model map such as the Business Model Canvas. Prominent proponents of this school of thought include Steve Blank, Alex Osterwalder, and Nathan Furr. This “Business Model-School of Thought” has an ongoing battle with the “Business Plan-School of Thought.” The war cry of the Business Model-School of Thought is “Burn your business plan.” But, should the traditional business plan be completely burnt? Should the Business Model Canvas (or derivatives such as the Lean Canvas) be the only document presented such as in Startup Competitions, which are increasingly called “Business Model Competitions”? What about a founder/startup’s Goals, Vision, Mission, and Aspirations which are usually available in a traditional business plan but not directly catered for in the 9 blocks of the Business Model Canvas? How can we have the best of both worlds: obtain the comprehensive view and depth of a business plan while maintaining the relevance and efficiency of one-page business model maps such as the Business Model Canvas (or Lean Canvas)? The answer may lie in the use of a zoomable but adaptive story canvas – the “Zoomable Project Canvas” - a rudimentary form of which I used in 2007 to obtain venture financing for my visual search engine startup. Over the years, I’ve refined the layout and logic of the zoomable page of the Zoomable Project Canvas, which I consider as a “living organism.” As I read the history of extraordinarily successful startups such as Google, Netflix, and Cirque du Soleil, I cannot help but observe that their story of birth and growth neatly maps into the 4 Improvement/Disruption (I/D) Questions of the Universal Project Canvas. The 4 Improvement/Disruption Questions are as follows: #1: What BUSINESS MODEL to improve/disrupt? Present Business Model #2: How best to improve/disrupt BUSINESS MODEL? Process/Strategy #3: What BUSINESS MODEL to improve/disrupt TO? Future Business Model #4: Why improve/disrupt BUSINESS MODEL? Goal/Vision/Result/Aspirations The Zoomable Project Canvas is the one tool that can be used as a visual platform for facilitating tools and methodologies such as Brainstorming, Customer Development, Business Model Canvas, Lean Canvas, Business DNA Map, Agile Development, Lean Startup, Six Sigma, TRIZ, and Theory of Constraints.TRANSCRIPT
THE ZOOMABLE PROJECT CANVAS FOR BUSINESS MODEL IMPROVEMENT AND DISRUPTION
Scalably Design Your Disruptive Business Model and Lean Startup As Well As
Secure Customer Buy-in and Venture Funding
Dr. Rod King VDD University for Lean Startup Project Management
Think Big and Different
HEROES
Visual White Paper
“Disruptive Innovations
Are Like
Missiles
Launched at Your Business”
Maxwell Wessel & Clayton Christensen
ITENNWH
The Greatest Constraint, Risk, or Challenge
Facing a Typical Startup
Is
To Obtain Massive Customer Buy-in;
In Short, To Co-discover and Validate
A B.U.M.P.:
Big Urgent Market Problem
Copyright 2012. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
“Most Startups
Lack
A Structured Process
For Testing
Their Business Model
[Problem/Solution-] Hypotheses”
Steve Blank & Bob Dorf
Good Problem Solvers – Tacitly and/or Explicitly –
Continuously Use One Visual Template
[The Zoomable Project Canvas]:
A Platform for
Integrated Problem Solving
The Visual Structure and Design
Of
The Zoomable Project Canvas
Are Based On a Triad of Principles:
1. Disruptive Evolution of S-Wave
2. Universal Problem Solving
3. Strategy-and-Tactics Integration
The Zoomable Project Canvas
Features
An Adaptive Project Planning &
Management Framework
That Can Respond and Adapt to
Emergent Problems
And
A Rapidly Changing Environment
Use
The Zoomable Project Canvas
To Scalably and Adaptively
Design Business Models and Startups
As Well As
Secure Customer Buy-in and
Venture Funding
The Zoomable Project Canvas
Can Also Be Used As A Platform For
Facilitating, Presenting, and Integrating
The Following Tools/Methodologies: Brainstorming; Creative Problem Solving; Design Adaptive Project Planning; Adaptive Business Planning Competitive (Advantage) Strategy; Value Chain Blue Ocean Strategy; Disruptive Innovation Strategy Customer Development Agile Development; Lean Startup; Continuous Innovation Business Model Canvas; Lean Canvas Balanced Scorecard TRIZ; Theory of Constraints; Six Sigma
Zoomable Project Canvases
Of
4 Disruptive Lean Startups
ITENN
Copyright 2012. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
ZOOMABLE PROJECT CANVAS: System Improvement/Disruption of …………………… Problem Space (20…..)
What system to improve/disrupt? “Top Dogs”
Solution (Story) Space
What system
to improve/disrupt?
Present System
What system
to improve/disrupt to?
Future System Short/Medium/Long Term
How best to
improve/disrupt system?
Process/Strategy Lean Startup Project Management (LSPM) Precedents (Analogs/Antilogs) Inventive Principles & Techniques - • Eliminate: ……………… • Reduce: ………………… • Increase: ………………. • Create: ………………… Get Out Of Building Prototype (Build)- Measure-Learn
Why improve/disrupt
system?
Shared
Goal/Vision/Result
Constraints/Trade-offs
D N A D N A
…………………… Industry
Given System Evolved System
…………………….
Big Urgent Market Problem (BUMP)
ITENN
Copyright 2012. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
ZOOMABLE PROJECT CANVAS (ZPC) for PRODUCT IMPROVEMENT/DISRUPTION
Problem Space What product or service to improve/disrupt?
Solution (Story) Space
What product or service
to improve/disrupt?
Present Product
What product or service to improve/disrupt
to?
Future Product Short Term Medium Term Long Term
How best to
improve/disrupt product or service?
Process/Strategy
Why improve/disrupt
product or service?
Shared Goal/Vision/Result/
Aspiration
Constraints/Trade-offs
ITENN
Copyright 2012. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
ZOOMABLE PROJECT CANVAS (ZPC) for BUSINESS MODEL IMPROVEMENT/DISRUPTION Problem Space
What business model to improve/disrupt?
Solution (Story) Space
What business model
to improve/disrupt?
Present Bus. Model
What business model
to improve/disrupt to?
Future Bus. Model Short Term Medium Term Long Term
How best to
improve/disrupt business model?
Process/Strategy
Why improve/disrupt business model?
Shared Goal/Vision/Result/
Aspiration
Constraints/Trade-offs
ITENN
Copyright 2012. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
Apple’s PROJECT CANVAS: Business Model Improvement/Disruption of Smartphone Industry Problem Space (2007)
What business model to improve/disrupt? “Top Dogs”
Solution (Story) Space
What business model
to improve/disrupt?
Present Bus. Model
What business model
to improve/disrupt to?
Future Bus. Model Short/Medium/Long Term
How best to
improve/disrupt business model?
Process/Strategy Lean Startup Project Management (LSPM) Precedents (Analogs/Antilogs) Disruptive Innova- tion/Blue Ocean - • Eliminate: Buttons • Reduce: Thickness • Increase: Simplicity • Create: Multitouch screen; Ecosystem Get Out Of Building Prototype (Build)- Measure-Learn
Why improve/disrupt business model?
Shared
Goal/Vision/Result Revolutionary user interface without buttons “Apple reinvents the phone” Disruptive but viable business ecosystem: Digital Hub “Put a dent in the universe” Constraints/Trade-offs No tactile buttons Expensive phone Unique interface
D N A D N A
Telecommunications (Smartphone) Industry
Sustainable Bus. Model ‘Sweet Spot’ Bus. Model
User Interface with buttons
ITENN
Copyright 2012. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
Netflix’s PROJECT CANVAS: Business Model Improvement/Disruption of Blockbuster Problem Space (1997)
What business model to improve/disrupt? “Top Dog”
Solution (Story) Space
What business model
to improve/disrupt?
Present Bus. Model
What business model
to improve/disrupt to?
Future Bus. Model Short/Medium/Long Term
How best to
improve/disrupt business model?
Process/Strategy Lean Startup Project Management (LSPM) Precedents (Analogs/Antilogs) Disruptive Innova- tion/Blue Ocean - • Eliminate: Late fees • Reduce: Product size • Increase: Accessibility • Create: Flat fees; web order/mail delivery Get Out Of Building Prototype (Build)- Measure-Learn
Why improve/disrupt business model?
Shared
Goal/Vision/Result
Video rental busi- ness without late fees Membership with flat fees Video/Film Rental Service 24x7 Disruptive but viable business model Constraints/Trade-offs Limited number and range of video/film titles for rental
D N A D N A
Home Entertainment (Video Rental) Industry
Sustainable Bus. Model Disruptive Bus. Model
High/ Late fees
ITENN
Copyright 2012. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
Cirque du Soleil’s PROJECT CANVAS: Business Model Improvement/Disruption of Circus Industry Problem Space (1984)
What business model to improve/disrupt? “Top Dogs”
Solution (Story) Space
What business model
to improve/disrupt?
Present Bus. Model
What business model
to improve/disrupt to?
Future Bus. Model Short/Medium/Long Term
How best to
improve/disrupt business model?
Process/Strategy Lean Startup Project Management (LSPM) Precedents (Analogs/Antilogs) Disruptive Innova- tion/Blue Ocean - • Eliminate: Animals • Reduce: Thrill/Danger • Increase: Ambience • Create: Theme; Music Dance; Multi-prodns Get Out Of Building Prototype (Build)- Measure-Learn
Why improve/disrupt business model?
Shared Goal/Vision/Result
“We reinvent the circus” Circus without animals Market space where competitors are irrelevant Differentiation and low cost Bus. Model: “Blue Ocean” Constraints/Trade-offs Tickets are more expensive than in traditional circus
D N A D N A
Entertainment (Circus) Industry
Red Ocean Bus. Model Blue Ocean Bus. Model
Animals
ITENN
Copyright 2012. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
Google’s PROJECT CANVAS: Business Model Improvement/Disruption of Search Engine Industry Problem Space (1998)
What business model to improve/disrupt? “Top Dogs”
Solution (Story) Space
What business model
to improve/disrupt?
Present Bus. Model
What business model
to improve/disrupt to?
Future Bus. Model Short/Medium/Long Term
How best to
improve/disrupt business model?
Process/Strategy Lean Startup Project Management (LSPM) Precedents (Analogs/Antilogs) Disruptive Innova- tion/Blue Ocean - • Eliminate: Clutter • Reduce: Interruptions • Increase: Speed • Create: Targeted Ads; Multi-sided Platform Get Out Of Building Prototype (Build)- Measure-Learn
Why improve/disrupt business model?
Shared Goal/Vision/Result
“To organize the world’s information and make it univer- sally accessible and useful” “Don’t Be Evil” Differentiation and low cost Bus. Model: “Blue Ocean” Multi-sided Model Constraints/Trade-offs No banner adverti- ing; no ranking using paid results
D N A D N A
Information Technology (Search Engine) Industry
Red Ocean Bus. Model Blue Ocean Bus. Model
Cluttered Interface
Visual Checklists
ITENNWH
“Everyone Has a Plan
Until
They Get Punched
In the Face”
Mike Tyson
ITENNWH
Strategies Change. The ONLY Constant In
Business, War, and Life Is
The Set of 4 Improvement/Disruption Questions:
What system to improve/disrupt? How best to improve/disrupt system? What system to improve/disrupt to? Why improve/disrupt system?
Copyright 2012. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
ITENNWH
THE 3 PRINCIPLES OF THE ZOOMABLE PROJECT CANVAS
Inherent in the Visual Design and Use of
The Zoomable Project Canvas Are 3 Principles:
1. Disruptive Evolution of S-Wave 2. Universal Problem Solving 3. Strategy-and-Tactics Integration
Copyright 2012. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
ITENNWH
PRINCIPLE OF DISRUPTIVE EVOLUTION OF S-WAVE
“The Value of A Living System or Organism
Follows the Shape of an S-Wave By Adaptively Solving Problems
And Adding Value
To its Environment. Otherwise, the System Dies.”
Copyright 2012. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
ITENNWH
PRINCIPLE OF UNIVERSAL PROBLEM SOLVING
“Good Problem Solvers
In All Domains
- Tacitly and/or Explicitly -
Collaboratively and Daily Use
The Zoomable Project Canvas.”
Copyright 2012. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
ITENNWH
PRINCIPLE OF STRATEGY-AND-TACTICS INTEGRATION
“Successful Leaders and Projects
Adaptively Integrate
Strategy and Tactics
That Differently Create
Greater Happiness or Shared Value.”
Copyright 2012. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
ITENN
Copyright 2012. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
Visual Checklist for CUSTOMER EXPERIENCE IMPROVEMENT/DISRUPTION
Problem Space What customer experience to improve/disrupt?
Solution (Story) Space
What customer experience
to improve/disrupt?
Present Customer XP Customer Ecosystem (Market/Segment) Job To Be Done/ Goal/Workflow Tool or Means (Product/Service/ Brand/Bus. Model/ Bus. Ecosystem) Outcome/Result Customer Experi- ence (Delight/Pain)
What customer experience
to improve/disrupt to?
Future Customer XP Customer Ecosystem (Market/Segment) Job To Be Done/ Goal/Workflow Tool or Means (Product/Service/ Brand/Bus. Model/ Bus. Ecosystem) Outcome/Result Customer Experi- ence (Delight/Pain)
How best to
improve/disrupt customer experience?
Process/Strategy Customer Develop- ment Business Model Mapping/Inno’ Lean Startup (Agile) Trends (PESTLIED) Competitive Strat. Disruptive Innova- tion Strategy Blue Ocean Strategy Creative Strategy TRIZ; CPS; ToC; VDD
Why improve/disrupt
customer experience?
Shared Goal/Vision/Result
Shared Value Profit Revenue (Streams) Cost (Structure) Delight (+) Pain (-) Ideal Final Result (IFR) Ultimate Leap of Faith (LoF) Other Success Criteria (Metrics)
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)
STARTUP
(New) Customer Value Proposition/Market: …………………………………………………………………..
NON- CUSTOMERS (“UNDERDOGS”) o Profitable o Break-even o Unprofitable
Dream 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
CUSTOMER ACQUISITION PYRAMID: Getting Massive Customer Buy-in (Early Adopters)
Disruption Question: ……………………………………………………………………………………………………………………
Copyright 2012. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
Delighters
Satisfiers
Dissatisfiers
Delighters
Satisfiers
Dissatisfiers
Delighters
Satisfiers
Dissatisfiers
NON-COMPETITORS (Remote Industries/Economy: Sectoral & Geographical Non-alternatives)
CUSTOMER DEV. STACK (Core Sector/Strategic Groups: Substitutes)
ZPCanvas
(New) Customer Value Proposition/Market: …………………………………………………………………..
NON- CUSTOMERS (“UNDERDOGS”) o Profitable o Break-even o Unprofitable
Dream Product/Service
Why? How?
Why? How?
Why? How?
BUSINESS (STRATEGIC) PLAN (Peripheral/Adjacent Industries: Alternatives/Value Chain Complements)
Diffusion (Word-of-mouth) Potential = Delighters + Satisfiers - Dissatisfiers
CUSTOMER ACQUISITION PYRAMID for Zoomable Project Canvas (ZPC)
Disruption Question: How best to get massive customer buy-in (early adopters)?
Copyright 2012. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
EPILOG
ITENNWH
“We’re Good at Solving Problems
But
Not So Good At Defining Them”
David Murray
ITENNWH
“You Have to Understand
The Root Cause of the Problem
Before
You Can Develop
Hypothesis On How to Solve It”
David Murray
ITENNWH
Entrepreneurs Are
Inventive Problem Finders and Solvers.
Successful Entrepreneurs Constantly Discover Customer Problems
And Iteratively Test Prototypes (Versions)
That Cost-Effectively Solve Big Urgent Market Problems (BUMPs).
ITENNWH
BUT, How Do Successful Entrepreneurs
Really Discover Customer Problems
And Iteratively Test Prototypes (Versions)
That Cost-Effectively Solve Big Urgent Market Problems (BUMPs)?
ITENNWH
MY PRIMARY FALSIFIABLE HYPOTHESIS
Zoomable Project Canvas (ZPC) for Modeling and Validating Problem-Hypotheses As Well As Solution-Hypotheses
Successful Entrepreneurs
Tacitly and/or Explicitly Master
Collaborative and Daily Use
of
The Zoomable Project Canvas
Copyright 2012. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
ITENNWH
MY SECONDARY FALSIFIABLE HYPOTHESIS
Existing Tools for Business Planning and Strategic Planning as well as Business Model Improvement and Disruption
The Zoomable Project Canvas Eliminates
Pains and Frustrations of Using Traditional Business (Strategic/Marketing) Plan Golden Circle; Value Chain Blue Ocean Strategy; Disruptive Innovation Strategy Strategy Canvas Business Model Canvas Lean Canvas Balanced Scorecard Brainstorming; TRIZ; Theory of Constraints; Six Sigma
Copyright 2012. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
ITENNWH
BUT,
What Are
Benefits,
Features, and Layouts
Of
The Zoomable Project Canvas?
Copyright 2012. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
ITENNWH
The Zoomable Project Canvas Provides
A Universal “DNA” Layout and Language As Well As
4 Improvement/Disruption Questions That Help Users, Storytellers, or Disruptors to
Simply Apply and Integrate Tools of
Creativity, Problem Solving, Planning, Strategy, Improvement, Innovation, and
Performance Management Copyright 2012. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
ITENNWH
The Zoomable Project Canvas Refers to
A Zoomable Story Canvas (Platform) For
Simply Applying and Integrating All Tools of
Creativity, Problem Solving, Planning, Strategy, Improvement, Innovation, and
Performance Management
Copyright 2012. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
ITENNWH
THE ZOOMABLE PROJECT CANVAS
As A Visual Platform
For Integrated Problem Solving
Copyright 2012. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
ITENN
Copyright 2012. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
ZOOMABLE PROJECT CANVAS (ZPC): Organic Perspective
Problem Space
Solution (Story) Space
ITENN
Copyright 2012. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
ZOOMABLE PROJECT CANVAS (ZPC): The 2 Mantras
Problem Space “Get Out Of The Enterprise (Building)”
Solution (Story) Space “Prototype-Test-Learn (PTL)” or “Build-Measure-Learn (BML)”
ITENN
Copyright 2012. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
ZOOMABLE PROJECT CANVAS (ZPC): Systematic Perspective (4 Solution-Storyboards) Problem Space
Solution (Story) Space
Present Storyboard
Future Storyboard Short Term Medium Term Long Term
Process-Storyboard
Goal/Vision/Result/ Aspiration-Storyboard
ITENN
Copyright 2012. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
ZOOMABLE PROJECT CANVAS (ZPC): Systematic Perspective (The 4 Disruption Questions) Problem Space
What system to improve/disrupt?
Solution (Story) Space
What system
to improve/disrupt?
Present System
What system
to improve/disrupt to?
Future System Short Term Medium Term Long Term
How best to
improve/disrupt system?
Process/Strategy
Why improve/disrupt
system?
Shared Goal/Vision/Result/
Aspiration
Constraints/Trade-offs
ITENN
Copyright 2012. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
ZOOMABLE PROJECT CANVAS (ZPC) for BUSINESS MODEL IMPROVEMENT/DISRUPTION Problem Space
What business model to improve/disrupt?
Solution (Story) Space
What business model
to improve/disrupt?
Present Bus. Model
What business model
to improve/disrupt to?
Future Bus. Model Short Term Medium Term Long Term
How best to
improve/disrupt business model?
Process/Strategy
Why improve/disrupt business model?
Shared Goal/Vision/Result/
Aspiration
Constraints/Trade-offs
ITENN
Copyright 2012. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
ZOOMABLE PROJECT CANVAS (ZPC) for MARKETING MODEL IMPROVEMENT/DISRUPTION Problem Space
What marketing model to improve/disrupt?
Solution (Story) Space
What marketing model
to improve/disrupt?
Present Marketing Model
What marketing model
to improve/disrupt to?
Future Marketing Model
Short Term Medium Term Long Term
How best to
improve/disrupt marketing model?
Process/Strategy
Why improve/disrupt
marketing model?
Shared Goal/Vision/Result/
Aspiration
Constraints/Trade-offs
A P
“Leaders Need Multiple Perspectives
To Get a Complete Picture.
Effective Leaders Zoom In and Zoom Out.”
Rosabeth Moss Canter
Bonus Lean Startup Project Management
ITENNWH
4 APPLICATIONS OF LEAN STARTUP PROJECT MANAGEMENT
Open Problem Finding & Solving: What way or domain is your focus?
“SOLUTION SPACE” (Product) “PROBLEM SPACE” (Market)
Established Solution (Established Product/Service/ Tool/Technology)
Unestablished Solution (Unestablished Product/ Service/Tool)
Established Problem (Established Market/BUMP/Job/ Need)
ESTABLISHED BUSINESS Established Market (Problem) Established Solution (Product/Service/Technology)
“Six Sigma Way”/“Red Ocean Way”/
”Business Planning Way”
ESTABLISHED PROBLEM (Market) SEARCHING FOR UNESTABLISHED SOLUTION (Product/Service/Technology)
“Harvard Business School (HBS) Way”/“Market Planning Way”
Unestablished Problem (Unestablished Market/BUMP/Job/ Need)
ESTABLISHED SOLUTION (Product/Service/Technology) SEARCHING FOR UNESTABLISHED PROBLEM (Market)
“MIT University Way”/ “Product (Technology) Planning
Way”
Classic LEAN STARTUP Unestablished Problem (Market) Unestablished Solution (Product/Service/Technology)
“Stanford University (SU) Way”/
“Lean Startup Way”/ “Blue Ocean Way”/
“Business Model Way”
(-): Product Risk
(+):
Mar
ket
Pre
dic
tab
ility
3
1 2
4
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ITENNWH 8. PERSEVERER OR PIVOTER
4. BUILDER
1. TEAMSTER
6. REVIEWER
5. MEASURER
2. LEAPER
THE DREAM TEAM FOR
HIGHLY SUCCESSFUL INNOVATIONS AND LEAN STARTUPS:
Personalities/Roles
3. DESIGNER
7. LEARNER
HEROES
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THE DREAM TEAM FOR LEAN STARTUP PROJECT MANAGEMENT (LSPM) Who?
Collaboratively Document and Solve Big Urgent Market Problems (BUMPs) in Real Time
ITENNWH 8. PERSEVERER OR PIVOTER Repeats spiral of steps to achieve product-market fit/value proposi- tion/vision/mission. Then, scale Otherwise, pivots (on the strategy/ vision). Abandons the project???
4. BUILDER Assigns finish date and metrics to planned project activities or tactics States verifiable targets, criteria, or milestones for each activity/tactic Builds prototype: Min. Viable Prod
1. TEAMSTER Forms “Co-creation Dream Team” for managing the ecosystem of the lean startup project as well as identifying needs of stakeholders Looks for synergy in ecosystem
6. REVIEWER Reviews progress and gaps of lean startup project: daily/weekly/ monthly/quarterly/annually Determines and documents what next activities to do
5. MEASURER External Validation: Gets out of enterprise & tests most critical risks & assumptions of ecosystem Internal Validation: Tests and validates internal assumptions
2. LEAPER Completes Project Charter that describes customer, big problems, vision, resources, and duration as well as success criteria (ROI; cost effectiveness) for startup project
ACTIVITIES OF THE DREAM TEAM FOR
LEAN STARTUP PROJECT MANAGEMENT
(LSPM): The Roles Highly Successful Innovators
And Lean Startups Play
3. DESIGNER Documents & reviews ecosystem (business model) for existing analogs and antilogs of project Devises plan (hypotheses/assump- tions); designs strategy for project
7. LEARNER Analyzes gaps/failures/successes Anticipates future adoption and weakest links. Devises experiment Summarizes/Shares lessons learnt Summarizes/Shares insights
HEROES
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ACTIVITIES OF THE DREAM TEAM FOR LEAN STARTUP PROJECT MANAGEMENT How?
Collaboratively Document and Solve Big Urgent Market Problems (BUMPs) in Real Time
ITENNWH
THE 8 STEPS-KANBAN MATRIX FOR LEAN STARTUP PROJECT MANAGEMENT (LSPM)
Collaboratively Document and Solve Big Urgent Market Problems (BUMPs) in Real Time
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8 STEPS/ ACTIVITIES/
JOBS/STORIES FOR LSPM
CHECKLIST OF TASKS/
RESULTS/ DELIVERABLES
KANBAN MATRIX - Work
DONE (Past Reality/
Facts)
IN PROGRESS (Present Reality/
Facts)
TO DO (Future/Backlog/ Hypotheses/Plan)
1. Team Team/Stakeholders in Ecosystem
2. Leap Problem/Vision/Customer Experience
3. Design “As Is” (Analogs/Antilogs) & “To Be” Business Model/Ecosystem; Strategy/ Tactics; Value Proposition/Tagline
4. Build Program; Metrics (KPIs); Prototype/ Minimum Viable Product (MVP)
5. Measure Customer Feedback/Response/Rating/ Success Criteria: Value Proposition
6. Review Progress Report: Gaps; Value Prop.; To Do (“What Next?”/Future) List
7. Learn Root-cause Analysis/Modeling; Lessons Learned/Insights
8. Persevere or Pivot
Iteration Cycle: Problem-Solution Fit/ Product-Market Fit; Pivot/Abandon?
BUMP-Tool Fitness Project BUMP Discovery Project Customer Growth Project Company Maturity Project
ITENN
Copyright 2012. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
SHARED DREAM/ VISION
- Start - Define - Learn - Experiment Elimination of Big Urgent Market Problems (BUMPs)
ONE-PAGE LEAN STARTUP (Ries’s LS Methodology)
CUSTOMER/CLIENT: ………………………………………………………………………………… Date:……………………………………
PAIN/PROBLEM/TRADE-OFF/GOAL/NEED/JOB: ………………………………………………………………………………………………………………………
Present Past Future
MEANS (TOOL: What? How? Resources: People/Culture-Process/Strategy-Product/Service) (Iteratively Develop Natural, Planned, and/or Disruptive Customer Ecosystem)
STEER: “BUILD-MEASURE-LEARN” VALIDATED LEARNING LOOP
- Leap (Big Problem; Vision/Hypotheses/Value (Proposition))
- Test (Criteria for Problem; Minimum Viable Product(MVP))
- Measure (Actionable Metrics for Customer Growth)
- Pivot (or Persevere) (Strategy/Business Model/Customer Ecosystem)
ACCELERATE: LAUNCH-SCALE
- Batch (Size/Version; Time/Cycle)
- Grow (Engines of Customer Growth)
- Adapt (Adaptive Org./5 Whys)
- Innovate (Disruptive Inno.)
Unique Summary and Visual Model of Eric Ries’s Book, “The Lean Startup”
END (Value/ Why?)
ITENN
Copyright 2012. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
4 Phases of a Successful Lean Startup or Business Model Cycle (The Lean Startup Journey: Evolutionary Hypotheses vs. Reality)
Infancy (Prototype)
Time
Cu
sto
mer
Exp
erie
nce
, Hap
pin
ess,
or
Val
ue
= D
elig
ht/
Pain
Growth (Optimize)
Maturity (Scale)
Renewal (Renew)
Chasm (Traction; Tipping Point;
Product-Market Fit)
Fault (Line)
ONE-PAGE LEAN STARTUP (Lean Startup Journey)
CUSTOMER/CLIENT: ………………………………………………………………………………… Date:……………………………………
PAIN/PROBLEM/TRADE-OFF/GOAL/NEED/JOB: …………………………………………………………………………………………………………
Present Past Future
Traditional/Hypothetical Ecosystem Demand (Market, Industry, Enterprise, or Technology)
SHARED DREAM/ VISION:
Ideal Final Result (IFR)
Requirements for
Insanely Great Customer
Experience
Angel Funding (Up to $100,000)
Seed Funding ($100,000-$1M)
Venture Funding ($1M-$5M)
ITENN
Copyright 2012. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
“VISIONARY” ONE-PAGE LEAN STARTUP
CUSTOMER/CLIENT: ………………………………………………………………………………… Date:……………………………………
PAIN/PROBLEM/TRADE-OFF/GOAL/NEED/JOB: …………………………………………………………………………………………………………
Present Past Future
INTERNAL/EXTERNAL MEANS (TOOL) (Resources: People/Culture-Process/Strategy-Product/Service)
SHARED DREAM/ VISION
END (Value)
Prototype (Build) - Measure Learn
Copyright 2012. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
“STRATEGIC” ONE-PAGE LEAN STARTUP (Plan): ……………………….……....… Date: ……...…..………… Client/Customer (Segment/Persona): …………..……………………..……………………………………………………………..…… PAIN/PROBLEM/TRADE-OFF/NEED/GOAL/JOB: …………………………………………………………………………..………….
CONSTRAINTS: (What are constraints/obstacles/barriers/problems that prevent full realization of future system/vision/ dream/Ideal Final Result (IFR)?
SHARED DREAM/ VISION
PRESENT SYSTEM/EXPERIENCE (Where currently are we?)
VALUE TRANSFORMATION TOOL - Evolve, Explore, or Disrupt: What if … we
(Eliminate/Reduce/Increase/Create)
FUTURE SYSTEM/EXPERIENCE (Where must we go?)
Short/Medium/Long-term
(“RED OCEAN”; Analog; Antilog)
“The 8 Steps for Lean Startup Project Management (LSPM)” Value Proposition Factors/ Competitive Features/Criteria STRATEGY/TACTICS/PROCESS • Eliminate: • Reduce: • Increase: • Create:
(“BLUE OCEAN”)
Zooming
Copyright 2012. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
Design
Needs
Asp.
Suppliers/ Inputs/ Partners
Employees/ Culture/ Brand/IP
Machinery/ Technol./ Infra’
Process/ Strategy/ Project
Output (Product/ Service)
Retailers/ Channels/ Distributors
Customers/ Consumers/ Market
Environ-ment: Global
Shared Value (Profit)
S M E P R C E O S
D N A
“TACTICAL” ONE-PAGE LEAN STARTUP
CUSTOMER/CLIENT: ………………………………………………………………………………… Date:……………………………………
PAIN/PROBLEM/TRADE-OFF/GOAL/NEED/JOB: ………………………………………………………………………………………………………………………
Present Past Future
Prototype (Build) Measure Learn
More …
Copyright 2012. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
ZOOMABLE PROJECT CANVAS (ZPC): Complete Overview
Dream Up and Execute Magical Ideas That Positively Change the World
Design
Needs
Asp.
Suppliers/ Inputs/ Partners
Employees/ Culture/ Brand/IP
Machinery/ Technol./ Infra’
Process/ Strategy
Output (Product/ Service)
Retailers/ Channels/ Distributors
Customers/ Customer Rel. Management
Environ-ment: Global
Shared Value (Profit)
D A N
IDEALS/DREAMS/ VISION/VALUE/PROFIT
S M E P R C E O S
PAST Business DNA Model (System/Ecosystem)
PRESENT Business DNA Model (System/Ecosystem)
FUTURE Business DNA Model (System/Ecosystem)
PERIODIC TABLE AND JIGSAW PUZZLE FOR MAPPING BUSINESS DNA (MODEL)
Tools, Theories, and Methodologies for Product/Service, Business Model, and Customer Ecosystem Innovation
S E M P O R C E S Suppliers/ Inputs
Employees/ Culture/ Brand/IP
Machinery/ Technology/ Infra’
Processes/ Strategies
Output: Product/ Service
Retailers/ Distributors/ Channels
Customers/ Consumers (Problems/Job)
Environ-ment
Shared Greatn./ Impact
Partners (Suppliers/Materials/ Info/Energy)
Key Resources Activities (Processes)
Internal Value Proposition (Solution)
Customer Relationship Management
Industry/ Trends
SHARED VALUE/ PROFIT (Pain: - Delight: +
CAPABILITIES: CORE COMPETENCIES LOCAL ENVIRONMENT (Demand)
GLOBAL ENV.
ENTERPRISE (SYSTEM/VALUE CHAIN/Supply: Inside the Enterprise)
Design
Needs
Aspiratns
EXTENDED ENTERPRISE
(SUB-ECOSYSTEM; INDUSTRY/SUPPLY CHAIN)
GLOBAL COMPETI-TIVE FORCES
COMPE-TITIVE ADVAN-TAGE
INPUT PROCESSING OUTPUT EXTERNAL ENVIRONMENT RESULT (Impacts/ Effects) SUPERSYSTEM (Cause)
ECOSYSTEM
D N A
Copyright 2012. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
Disruption Spot
Luxury Spot
Strategic Choice
Sweet Spot Model/Startup
Blue Ocean (Value Innovation)
Model/Startup
Luxury Spot (Differentiated/
Sustaining-[R]evolutionary) Model/Startup
Disruption Spot/Lean (Disruptive Innovation)
Model/Startup
Copyright 2012. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
Market Segment (Customer Job/Crisis/Goal): ………………….……..……………….………… ………………………………………………………………………………………..…………….………….………….
ASPIRATION MAP: Types of Business Models/Startups Where currently are we? Where must we go?
Collaboratively Document and Solve Big Urgent Market Problems (BUMPs) in Real Time
Volcano Model/Startup
Green Ocean Model/Startup
Red Ocean Model/Startup
No-Man’s-Island Model/Startup
Oasis (‘Stuck-in-the-middle’)
Model/Startup
(-): PAIN
(Risk; Uncertainty)
(+): DELIGHT
(Reward; Profitability; ROI;
Abundance)
Insanely Great Experience Ideal Final Result (IFR) Infinite Shared Greatness
Key High Level of Customer Experience Low Level of Customer Experience
6 10 3
6
10
3
0
A
Copyright 2012. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
PRECEDENTS
INVENTIVE PRINCIPLES/ FUNCTIONS: E.R.I.C.
GIVEN SYSTEM (TOOL/OBJECT/PRODUCT/SERVICE/BUSINESS MODEL/ECOSYSTEM): ……………………………………………………………………..
“Must-Have” Features/Factors/Properties Secondary Features/Factors/Properties
E: Eliminate
R: Reduce
I: Increase
C: Create
IDEAL FINAL RESULT (IFR): Evolved System
E.R.I.C. PRECEDENT MATRIX: Generating Disruptive Ideas & Hypotheses
CUSTOMER/CLIENT: ………………………………………………………………………………… Date:……………………………………
PAIN/PROBLEM/TRADE-OFF/GOAL/NEED/JOB: ………………………………………………………………………………………………………………………
PAIN
(-)
D
ELIG
HT
(+)
Copyright 2012. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
Apple’s E.R.I.C. Precedent Matrix for a Disruptive Smartphone
CUSTOMER/CLIENT: Luxury-spot User of Communication/Computing Devices Date: 2007
PAIN/PROBLEM/TRADE-OFF/GOAL/NEED/JOB: Communicate and process information both offline and on Internet
PRECEDENTS
INVENTIVE PRINCIPLES/ FUNCTIONS: E.R.I.C.
GIVEN SYSTEM (TOOL/OBJECT/PRODUCT/SERVICE/BUSINESS MODEL/ECOSYSTEM): Traditional Smartphone
“Must-Have” Features/Factors/Properties Secondary Features/Factors/Properties
Phone/ Calls
Screen Physical Buttons (for input)
Calendar Battery Charger
Music Player
Web Browser
…
E: Eliminate
R: Reduce Thickness
I: Increase
C: Create Touch-screen; Apps
IDEAL FINAL RESULT (IFR): Evolved System
PAIN
(-)
D
ELIG
HT
(+)
One Last Thing …
ITENNWH
A Game Plan, Business,
Business Model, or Customer Ecosystem
Is A Living Organism
Copyright 2012. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
Infant (Experimental/Startup)
BUSINESS MODEL
Growing (Scalable)
BUSINESS MODEL
Matured (“Red Ocean”)
BUSINESS MODEL
Tipping Point; Chasm
Fault line
LIFECYCLE OF A BUSINESS MODEL (DISRUPTIVE EVOLUTION)
4 Stages or Acts in the Evolution of a Customer Ecosystem or Business Model (Living Organism)
Customer Validation “Cleft” (Environmental Fitness)
Copyright 2012. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
Declining (Dying)
BUSINESS MODEL
Customer Idea (“Egg”; DNA; Genetic Code)
ENVIRONMENT (Shared Dream/Vision/Value/(Result: -/+)
DREAMS/ IDEALS/ GREATNESS Mission/ Vision
Tipping Point; Chasm
Fault line
DISRUPTIVE EVOLUTION OF MOST VALUABLE CUSTOMERS (MVC)
Customer Segments for 4 Stages in the Evolution of a Customer Ecosystem or Business Model
Customer Validation “Cleft” (Environmental Fitness)
Copyright 2012. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
Visionaries
(Delighted by Novel Functionality and “Cool” Uses)
Regular Users
(Delighted by Better Quality, Performance, and Cost as well as
Accessibility and Simplicity)
Upgraders
(Delighted by Customized Improvements, Brand, Extensions and Total Solutions)
Retirees (Dissatisfiers: Overserved/Underserved)
Leads/Prospects (Non-customers) - Low/High-end Dissatisfiers from Competitors - Early Evangelists/Adopters
DREAMS/ IDEALS/ GREATNESS Mission/ Vision
ENVIRONMENT (Shared Dream/Vision/Value/(Result: -/+)
ONE-PAGE MBA FOR DISRUPTIVE LEAN STARTUPS: FRACTAL S-WAVE
How World-class Innovators Dream Up and Execute Magical Ideas That Positively Change the World
Customer Planning Questions: Where currently are we/they? Where must we/they go? How should we/they get there? What are constraints?
TIME
(Arrow of Time: Past/Present/Future)
Journey, Invisible Hand, or Fractal S-Wave of Innovation for Ecosystem (Supersystem/Economy/Value Network/Supply Chain/Market/ Industry Trends, Expectations, or Demand)
1st Wavelet of Innovation: VALUE CHAIN (PRODUCT/SERVICE/ENTERPRISE) Innovation (Value Chain/Product: Functionality, Quality, Simplicity, Differentiation, and/or Cost-focus) Examples: IBM (Computers); Xerox; Motorola; RIM (Smartphone); Borders; Segway
2nd Wavelet of Innovation: BUSINESS MODEL Innovation (Business Model/Marketing Engine: Scalable Revenue & Profit-focus) Examples: Dell; Netflix; Cirque du Soleil; IKEA; Nintendo (Wii); Southwest Airlines; ZipCar; Ford/GM/Chrysler/Toyota; Samsung
Copyright 2012. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
∞
∞
3rd Wavelet of Innovation: CUSTOMER ECOSYSTEM Innovation (Ecosystem/Industry/Platform: Shared Value-focus) Examples: Apple; Wal-Mart; Microsoft; Cisco; eBay; Amazon; Google; Facebook; GE; P & G; IBM (Services)
EXPERIENCE: Shared Happiness (Experience = Happiness = Value = +/- = Delight/Pain ~ Revenue/Cost = Differentn/Cost = 1/Trade-off)
Birth
Maturity
Growth
Customer Segment/Persona: …………………………………………...…………… Customer Goal/Job To Be Done/Tool: …………….……………………………………….….
APPLE’S FRACTAL S-WAVE FOR DISRUPTIVE EVOLUTION
How World-class Innovators Dream Up and Execute Magical Ideas That Positively Change the World
Customer Planning Questions: Where currently are we/they? Where must we/they go? How should we/they get there? What are constraints?
TIME
(Arrow of Time: Past/Present/Future)
Journey, Invisible Hand, or Fractal S-Wave of Innovation for Ecosystem (Supersystem/Economy/Value Network/Supply Chain/Market/ Industry Trends, Expectations, or Demand)
1st Wavelet of Innovation: VALUE CHAIN (PRODUCT/SERVICE/ENTERPRISE) Innovation (Value Chain/Product: Functionality, Quality, Simplicity, Differentiation, and/or Cost-focus) Examples: Personal Computer; Printer – Apple I; Apple II; MacIntosh; iMac; Apple TV
2nd Wavelet of Innovation: BUSINESS MODEL Innovation (Business Model/Marketing Engine: Scalable Revenue & Profit-focus) Examples: Internet Software – iTunes; eStore; App Store
Copyright 2012. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
∞
∞
3rd Wavelet of Innovation: CUSTOMER ECOSYSTEM Innovation (Ecosystem/Industry/Platform: Shared Value-focus) Examples: Digital Lifestyle - iPod; iPod Touch; iPhone; iPad
EXPERIENCE: Shared Happiness (Experience = Happiness = Value = +/- = Delight/Pain ~ Revenue/Cost = Differentn/Cost = 1/Trade-off)
Birth
Maturity
Growth
Customer Segment/Persona: …………………………………………...…………… Customer Goal/Job To Be Done/Tool: …………….……………………………………….….
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