A Business Model Canvas-KILLER. Rapidly Visualize, Prototype, and Test the 3 Engines of a Business Model

A Business Model Canvas-‐Killer Rapidly Visualize, Prototype, and Test the 3 Engines of a Business Model

Dr. Rod King Business Model Gamifica1on

“Good” vs “Great” Business Model Canvas REQUIREMENTS (TASKS/FUNCTIONS) FOR BUSINESS MODEL PLANNING, STRATEGY, PERFORMANCE MANAGEMENT, AND GAMIFICATION

“Good” Business Model Canvas

“Great” Business Model Canvas

1) Can be carried in pocket/wallet: ultra-‐portability; modularity ü  2) Visualize archetypal parts or elements of a business model (system): Business Model Outline (Form/Checklist/TreeMap)

ü  ü  3) Organize and manage ideas regarding the parts or elements of a business model (system): Business Model Scorecard

ü  ü  4) Illustrate the 3 macro-‐modules or engines of a business model: Provider (Supply) Model; Customer (Demand) Model; Value (Performance/Profit) Model: MulWlevel (Aggregate) Analysis

ü 

5) Comprehensively show how cause-‐and-‐effect rela1onships that illustrate how a business model works to deliver value: Business Model Strategy Map; FuncWonal Analysis Diagram

ü 

6) Illustrate Problem-‐Solu1on Fit & Product-‐Market Fit: Lean Startup method; Engine of Growth

ü  7) Facilitate genera1on and management of business model hypotheses as well as strategy: Business Model Strategy

ü  ü  8) Facilitate Premortem (Failure Analysis): Root-‐cause Analysis ü  9) Facilitate problem solving, innova1on, and performance mngt as well as Outcome-‐driven Planning, including Discovery-‐driven Planning: Universal Project Management (UPM) Dashboard

ü 

10) Can be deployed as a boardgame with “na1ve” game pieces (cards) & board: Business Model Jigsaw (BMJ) Game

ü 

(3/10) (10/10)

The Business Model Canvas From “Good” to “Great”

“Good” Business Model Canvas [A New Look at the Tradi1onal Business Model Canvas]

Single Level TreeMap/Visual Outline (Form/Checklist)

TradiWonal Business Model Canvas

Source: h@p://en.wikipedia.org/wiki/Business_Model_Canvas

Jigsaw-‐Business Model Canvas

Jigsaw-‐Business Model Canvas is adopted from the Business Model Canvas (h]p://www.businessmodelgeneraWon.com) which is licensed under the CreaWve Commons A]ribute-‐Share Alike 3.0 Un-‐ported License

Jigsaw-‐Business Model Canvas

Jigsaw-‐Business Model Canvas is adopted from the Business Model Canvas (h]p://www.businessmodelgeneraWon.com) which is licensed under the CreaWve Commons A]ribute-‐Share Alike 3.0 Un-‐ported License

9 Blank Jigsaw Cards (Several Types of Shapes) Rapidly Visualize, Prototype, and Test the 3 Engines of a Business Model

BMC Jigsaw Cards is adopted from the Business Model Canvas (h]p://www.businessmodelgeneraWon.com) which is licensed under the CreaWve Commons A]ribute-‐Share Alike 3.0 Un-‐ported License

Key Partners (KP)

Key AcWviWes

(KA)

Key Resources

(KR)

Value ProposiWon (VP)

Customer Segments

(CS)

Customer Rel. (CR)

Channels (CH)

Cost Structure (C$)

Revenue Streams (R$)

Topic Jigsaw Cards for the Business Model Canvas Rapidly Visualize, Prototype, and Test the 3 Engines of a Business Model

Topics of BMC Jigsaw Cards are adopted from the Business Model Canvas (h]p://www.businessmodelgeneraWon.com) which is licensed under the CreaWve Commons A]ribute-‐Share Alike 3.0 Un-‐ported License

Jigsaw Board for Business Model Canvas Rapidly Visualize, Prototype, and Test the 3 Engines of a Business Model


Key Partners (KP)

Key AcWviWes

(KA)

Key Resources

(KR)


Customer Rel. (CR)

Channels (CH)

Cost Structure (C$)


Jigsaw-‐Business Model Canvas: 9 Cards Rapidly Visualize, Prototype, and Test the 3 Engines of a Business Model

Customer Segments

(CS)


Key Partners (KP)

Key AcWviWes

(KA)

Key Resources

(KR)


Customer Rel. (CR)

Channels (CH)

Cost Structure (C$)


Jigsaw-‐Business Model Canvas: 4 Panels Rapidly Visualize, Prototype, and Test the 3 Engines of a Business Model

Customer Segments

(CS)


Key Partners (KP)

Key AcWviWes (KA)

Key Resources

(KR)


Cost Structure (C$)


TradiWonal Business Model Canvas: Monolithic Gameboard (Form) Rapidly Visualize, Prototype, and Test the 3 Engines of a Business Model

Customer Rel. (CR)

Channels (CH)

Customer Segments

(CS)


Example

Key Partners (KP)

Key AcWviWes (KA)

Key Resources

(KR)


Cost Structure (C$)


Business Model Canvas for Apple (iPod) Rapidly Visualize, Prototype, and Test the 3 Engines of a Business Model

Customer Rel. (CR)

Channels (CH)

Customer Segments

(CS)


q  Record companies

q  Original

Equipment Manufactur-‐ers

q  Staff/ Employees q  Brand/Culture q  Infra’: IT

q  “A Thousand Songs in Your Pocket”

q  Seamless Music Experience

q  iPod Hardware

q  Online q  Face-‐to-‐face q  “Lock in”

q  Apple.com q  iTunes Store q  Retail stores q  Big Box Retail

q  Luxury Spoker: Listen to music every-‐ where q  Customer Habit

Engine

q  Staff/Employees q  Manufacturing q  Marke1ng & Sales q  Infrastructure: IT

q  iPod Hardware q  iTunes q  Commissions

q  Luxury Spot Strategy

q  Hardware/Solware Design

q  Marke1ng & Sales

How to Use The Tradi?onal Business Model Canvas

1.   Plot the Business Model Canvas on a Poster

2.   Place the Poster on a Wall

3.   Sketch Out – Especially Using Post-‐It Notes – the Business Model

“Great” Business Model Canvas

LEVEL 1: 3 Streams (Swimlanes) of Cards

Visualize, Prototype, and Test A Business Model

In Terms of Its 3 Engines:

q  Value Engine: Share Value q  Growth Engine: Deliver Value q  Enterprise Engine: Create Value

Visualize, Prototype, and Test A Business Model

In Terms of 9 PerspecWves

Key Partners (KP) Value ProposiWon (VP) PAIN: Cost Structure (C$)

Key Resources (KR) Channels (CH) & Customer RelaWonships (CR)

DELIGHT: Revenue Streams (R$)

Key AcWviWes (KA) Customer Segments (CS) VALUE: PROFIT

Topics with Abbrevia1ons are adopted from the Business Model Canvas (h]p://www.businessmodelgeneraWon.com) which is licensed under the CreaWve Commons A]ribute-‐Share Alike 3.0 Un-‐ported License

Upstream Midstream Downstream

9 Blank Jigsaw Cards (One Type of Shape) Rapidly Visualize, Prototype, and Test the 3 Engines of a Business Model


Key Partners (KP)

Key Resources (KR)

Channels (CH) & Customer RelaWonships (CR)

Customer Segments (CS)

Cost Structure (C$)

PROFIT


Key AcWviWes (KA)

Topics of the 9 Jigsaw Cards are adopted from the Business Model Canvas (h]p://www.businessmodelgeneraWon.com) which is licensed underthe CreaWve Commons A]ribute-‐Share Alike 3.0 Un-‐ported License

Topic Cards for the Business Model Jigsaw Rapidly Visualize, Prototype, and Test the 3 Engines of a Business Model

Gameboard for Business Model Jigsaw Rapidly Visualize, Prototype, and Test the 3 Engines of a Business Model

HOW? WHAT? WHY?


Enterprise Stream Growth Stream Value Stream

HOW? WHAT? WHY?


Supply: Value CreaXon Demand: Value Delivery Value Sharing (Capture)

HOW? WHAT? WHY?



HOW? WHAT? WHY?


Upstream Cards Midstream Cards Downstream Cards


Business Model Jigsaw Rapidly Visualize, Prototype, and Test the 3 Engines of a Business Model


Key Partners (KP)

Key Resources (KR)



Cost Structure (C$)

PROFIT


Key AcWviWes (KA)



Key Partners (KP)

Key Resources (KR)



PAIN: Cost Structure (C$)

VALUE: PROFIT

Value ProposiWon (VP) [Product/Service]

Key AcWviWes (KA)



Key Partners (KP)

Key Resources (KR)




VALUE: PROFIT


Key AcWviWes (KA)

HOW? WHAT? WHY?

Always Start With “Why?”

WHY? WHAT? HOW?

Note: The logic as well as sequence of Why-‐What-‐How in the above diagram differs from Simon Sinek’s Golden Circle which he presents in his book, “Start With Why.”

“People like MarWn Luther King, Jr.,

Steve Jobs, and The Wright Brothers

Might Have Likle in Common, But

They All Started with “Why?”” Simon Sinek

Example

Business Model Jigsaw for Apple’s iPod Rapidly Visualize, Prototype, and Test the 3 Engines of a Business Model

HOW? WHAT? WHY?


DELIGHT: Revenue Streams (R$) q  iPod Hardware q  iTunes q  Commissions

PAIN: Cost Structure (C$) q  Staff/Employees q  Manufacturing/Infra’ q  Marke1ng & Sales

VALUE: PROFIT q  High Profit Margin q  Extraordinary Profit q  Performance Metrics

Downstream Cards



Channels (CH) & Customer RelaWonships (CR) q  Apple.com; Big Box Retailer q  iTunes Store; Retail stores q  Online/Face-‐to-‐Face; Lock-‐in

Customer Segments (CS) q  Luxury Spoker: Listen to music everywhere q  Customer Habit Engine


Value ProposiWon (VP) q  “A Thousand Songs in Your

Pocket” q  Seamless Music XP q  iPod Hardware


Midstream Cards Downstream Cards



Key Partners (KP) q  Record companies q  Original Equipment

Manufacturers

Key Resources (KR) q  Staff/Employees q  Brand/Culture q  IP q  Infrastructure: IT






Key AcWviWes (KA) q  Luxury Spot Strategy q  Hardware/Solware Design q  Marke1ng & Sales






Manufacturers









HOW? WHAT? WHY?

How to Basically Use the Business Model Jigsaw

1.   Plot the Gameboard of the Business Model Jigsaw on a Poster

2.   Place the Poster on a Table

3.   Lay Out – Especially Using Index Cards or Blank Business Cards – the Business Model In Terms of its 3 Engines:

q Value Engine q Growth Engine q Enterprise Engine

HOW? WHAT? WHY? Value Engine Growth Engine Enterprise Engine

AlternaWve Forms of “3 Stream-‐Jigsaw Board” (Non-‐magne1c/Magne1c/Sta1c)

AlternaWve Forms of “Jigsaw Cards” (Non-‐magne1c/Magne1c/Sta1c)

Appendix

Advanced Business Model Jigsaw

LEVEL 2: Network (Func?onal Analysis) Diagram

Simply Prepare A Business Model Strategy Map

A Business Model Strategy Map Is

A Cause-‐and-‐Effect Diagram That Illustrates

How an OrganizaWon Creates, Delivers, and Shares Value

(Profit)

A Business Model Strategy Map Facilitates

The TranslaWon of Mission/Vision/Purpose

Into Reality


MISSION/VISION/PURPOSE: ………………………………………………………………………………………………………………………………………


HOW? WHAT? WHY?


Upstream Midstream Downstream




Key Partners (KP)

Key Resources (KR)




Key AcWviWes (KA)




VALUE: PROFIT

Key Partners (KP)

Key Resources (KR)




Key AcWviWes (KA)




VALUE: PROFIT

Key Partners (KP)

Key Resources (KR)




Key AcWviWes (KA)

(Problem

-‐Solu1

on Fit; Produ

ct-‐M

arket F

it)

impact(s) affect(s)

impact(s) deliver(s)

impact(s)

impact(s)

affects

affect(s)

affect(s)

impacts


drive(s)



VALUE: PROFIT

Key Partners (KP)

Key Resources (KR)




Key AcWviWes (KA)

impact(s) affect(s)


impact(s)

impact(s)

affect(s)

affect(s)




VALUE: PROFIT

Key Partners (KP)

Key Resources (KR)




Key AcWviWes (KA)

drive(s)

(Problem

-‐Solu1

on Fit; Produ

ct-‐M

arket F

it)

impact(s) affect(s)


impact(s)

impact(s)

affects

affect(s)

affect(s)

impacts




VALUE: PROFIT

Key Partners (KP)

Key Resources (KR)




Key AcWviWes (KA)

drive(s)

(Problem

-‐Solu1

on Fit; Produ

ct-‐M

arket F

it)

impact(s) affect(s)


impact(s)

impact(s)

affects

affect(s)

affect(s)

impacts




VALUE: PROFIT

HOW? WHAT? WHY?

Example


HOW? WHAT? WHY?






Manufacturers











Manufacturers










(Problem

-‐Solu1

on Fit; Produ

ct-‐M

arket F

it)

impact(s) affect(s)


impact(s)

impact(s)

affects

affect(s)

affect(s)

impacts

drive(s)



Manufacturers










impact(s) affect(s)


impact(s)

impact(s)

affect(s)

affect(s)



Manufacturers










drive(s)

(Problem

-‐Solu1

on Fit; Produ

ct-‐M

arket F

it)

impact(s) affect(s)


impact(s)

impact(s)

affects

affect(s)

affect(s)

impacts



Manufacturers










drive(s)

(Problem

-‐Solu1

on Fit; Produ

ct-‐M

arket F

it)

impact(s) affect(s)


impact(s)

impact(s)

affects

affect(s)

affect(s)

impacts



Manufacturers









HOW? WHAT? WHY?


Environment Of

A Business Model Jigsaw

LEVEL 3: Environment (Supersystem) Diagram

S: Stren

gths

O: O

pportuniWe

s

W: Weaknesses

T: Threats

ENTERPRISE ENGINE: Build

GROWTH ENGINE: Measure

VALUE ENGINE: Learn

Environment of Business Model Jigsaw: “SWOT” Factors

Value Crea?on: Upstream Cards

Value Sharing (Happiness): Downstream Cards

Value Delivery: Midstream Cards

ENVIRONMENT

Environment of Business Model Jigsaw: Environmental Factors






VALUE ENGINE: Learn

Indu

stry Ecosystem

(IE): Sup

ply

Market E

cosystem

(ME): D

eman

d

Key Trends & Complementors (KTC): PESTLIED (-‐/+)

Macro-‐Economic Influencers (MEI): Global Economy

Environment of Business Model Jigsaw: Global Environmental Factors






VALUE ENGINE: Learn

Bargaining Pow

er of Sup

pliers

Bargaining Pow

er of C

ustomers

Threat of New Entrants

Threat of SubsWtute Products or Services




Environment of Business Model Jigsaw: Local Industry Factors



VALUE ENGINE: Learn

A Business Model Canvas-KILLER. Rapidly Visualize, Prototype, and Test the 3 Engines of a Business Model

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