business model strips for customer growth hackers: a new business model notation system

5 Stages of Market Evolu2on

Business Model Strips for Visualizing Pa/erns in the Evolu5on of Mul5-‐sided Business Models

Register at www.visionaryd.com to learn more about Customer Growth Hacking. Lean Startup Coach. Dr. Rod King. [email protected] & h/p://businessmodels.ning.com & h/p://twi/er.com/RodKuhnKing

ORPHAN (Stone) Pa/ern

CHAIN (Linear/Pipe)

Pa/ern

TREE (Hierarchical/V-‐)

Pa/ern

TRIANGLE (Network) Pa/ern

WEB (Network) Pa/ern

No Market 1-‐Sided Market 2-‐Sided Market 2-‐Sided Market Mul5-‐sided Market

STRUCTURE: From Ver2cal Integra2on (Bundling; Centraliza5on) To Horizontal Integra2on (Unbundling; Decentraliza5on; Outsourcing)

Supplier (Enterprise)

Customer 1

Custom

er 2 Customer 1

Custom

er 2



Customer


Customer 1

Custom

er 2

Custom

er 3


5 Stages of Product Evolu2on

Business Model Strips for Visualizing Pa/erns in the Evolu5on of Web-‐Products


CHAIN (Linear/Pipe)

Pa/ern


Pa/ern




1. Single Product (Integrated Func5on)

2. Chain-‐Product

3. Tree-‐Product

4. Triangle-‐Product

5. Web-‐Product (Industry/Mul5-‐func5onal PlaYorm)


Customer 1

Custom

er 2 Customer 1

Custom

er 2 Customer 1

Custom

er 2

Custom

er 3




Customer



Representa5ons of

Business Model Strip (New Business Model Nota2on System)

5 Business Model Strips Business Model Engineering

Rapidly Document, Analyze, Prototype, and Design Business Model Engines

Business Model Engine (BME) No Stack-‐Business Model Strip Stack-‐Business Model Strip

1D: Point (“Lean” System)

2D: Circle Gradated (Without Label)

Gradated (With Label)

Stack of Blocks (Ver5cal)

S: Supplier (Input)

C

S

C

S

C

S

C: Customer (Output)

C

S

Customer Growth Engine (CGE)

Enterprise Engine (EE)

Value Engine (VE)



Value Engine (VE)

(Processing/

Stock)

Value Delivery

Value CreaDon

Value Capture/ Share

Business Model Engine (BME)

Zooming in (Block diagram) Zooming out (Line diagram)


Expanded Business Model Strip Business Model Engineering: Stack of 3 Mini-‐strips


q  Customer Segments -‐ CS

q  Channels/Customer Rela2onships -‐ CH/CR

q  Product/Service -‐ PS

q  Value Proposi2on -‐ VP

q  Key Ac2vi2es/Processes -‐ KA

q  Key Resources -‐ KR q  Inputs/Partners -‐ KP

q  Profit (Margin) -‐ P$

q  Revenue (Streams) -‐ R$

q  Cost (Structure) -‐ C$

q  Strategy -‐ Strat

C

S

CUSTOMER GROWTH Engine (CGE): Delivers Value

ENTERPRISE Engine (EE):

Creates Value

VALUE Engine (VE):

Captures/Shares Value


Examples of

Business Model Strips

How does/will the business make money?

Tradi2onal Money Lender Business Model Strip

Rapidly Document, Analyze, Prototype, and Design Business Model Engines for CUSTOMER GROWTH HACKING

BUSINESS MODEL REVENUE MODEL

Business Model (Strip): Customer Growth Engine Job To Get Done (JTGD)

Interest (%) -‐ Model

Tradi2onal Money Lender

•  Founded:

•  Tagline/Value Prop.: •  Industry/Product:

Financial Services

•  Compe2tors: Banks; Credit Card Companies

Enterprise: Money Lender

q Loan money for profit

Business Model Engine (Red Ocean Strategy): High Cost & Low DifferenDaDon

Customer/Borrower q Borrow money

Enterprise: Money Lender (Financial Services: One-‐sided Market)

Customer/Borrower: Personal


Tradi2onal Bank Business Model Strip




Interest (%); Transac2on Fees (%); Service Charges; Interna2onal Transac2on Fees (%) -‐ Model

Tradi2onal Bank

•  Founded:


Financial Services

•  Compe2tors: Credit Card Services (Visa; MasterCard; American Express; …); ATMs; Prepaid Cards; eWallet (Apple; Google); Diners; …

Enterprise: Bank

q Facilitate convenient, safe, and reliable way to deposit as well as borrow money

Business Model Engine (Luxury Spot Strategy): High Cost & DifferenDaDon

Depositor q Conveniently & reliably

store or save money

Customer/Borrower q Conveniently & securely

borrow money

Enterprise: Bank (Financial Services: Two-‐sided Market)

Customer/Borrower: Personal; Business; Non-‐Profit

Depositor: Personal; Business; Non-‐Profit




Commission/Transac2on Fee (%) -‐ Model

Crowdfunding Plaborm

•  Founded:


Financial Services/Crowdfunding

•  Compe2tors: Banks; Credit Card Companies; Investors; Sponsors; …

Enterprise: Crowdfunding Plaborm Peer-‐to-‐Peer Funding Technology Company

q Provide Crowdfunding Processsing Services: Project CreaDon; Micro-‐financing Management

Business Model Engine (Blue Ocean Strategy): Low Cost & High DifferenDaDon

Fund Seeker/Prjct Creator q Facilitate transac5on betw

Crowdfunder/Backer q Conveniently & reliably

obtain customer payment

User/Consumer q Conveniently & securely buy

without cash

Fund Seeker/Project Creator

Crowdfunding Plaborm (e.g., Kickstarter) Business Model Strip


Enterprise: Owner of Crowdfunding Plaborm (Financial Services/Crowdfunding:

Three-‐sided Market)

User/ Customer

Crowdfunder/ Sponsor/ Backer


MasterCard Business Model Strip




Franchisor/Processor/Advisor -‐ Model

MasterCard

•  Founded: 1966 (Master Charge)

•  Tagline/Value Proposi2on:

“Making payments, safe, simple, and smart”

•  Industry/Product: Credit Card/Financial Services

•  Compe2tors: Banks; Visa; American Express; Capital; Discover; ATMs; Prepaid Cards; Apple (Wallet); …

Enterprise: MasterCard Vision: “A world beyond cash”

Mission: “Every day, every-‐where, we use our technology and exper5se to make pay-‐ments safe, simple and smart”


Acquirer/Issuer: Bank q Facilitate transac5on

between seller and buyer

Seller/Merchant: Store q Conveniently and reliably

obtain customer payment Buyer/User: Cardholder q Conveniently & securely buy

product/service without cash

Credit Card Enterprise: MasterCard (Credit Card/Financial Services:

MulD-‐sided PlaZorm; Credit Card/Payment System)

Buyer/ User:

Cardholder

Seller/ Merchant:

Store

Acquirer/Issuer: Payment Processor/Bank


VISA Business Model Strip




Transac2on Fees (%); Data Processing Service; Inter-‐na2onal Fees (%) -‐ Model

VISA

•  Founded: 1958 (BankAmericard)

•  Tagline/Value Prop.: “Everywhere you want to be”

•  Industry/Product: Credit Card/Financial Services

•  Compe2tors: Banks; MasterCard; American Express; Capital; Discover; ATMs; Prepaid Cards; Apple (Wallet); Diners; …

Enterprise: VISA Global Payments Technology Company

q Provide Network Processs-‐ing Services: AuthorizaDon; Clearing & Se\lement; Fraud & Risk Management


Acquirer/Issuer: Bank q Facilitate transac5on

between seller and buyer

Seller/Merchant: Store q Conveniently & reliably

obtain customer payment

Buyer/User: Cardholder q Conveniently & securely buy

without cash

Credit Card Enterprise: VISA (Credit Card/Financial Services:

MulD-‐sided PlaZorm; Credit Card/Payment System)

Acquirer/Issuer: Payment Processor/Bank

Buyer/ User:

Cardholder

Seller/ Merchant:

Store


q  Customer Segments – CS §  Acquirer/Issuer (Bank); Seller/Merchant (Store); Buyer/User (Cardholder)

q  Channels/Customer Rela2onships -‐ CH/CR §  Website; Social Media; Spor5ng Events; Trade Shows; TV Ads; …

q  Product/Service – PS §  Payment Services

q  Value Proposi2on -‐ VP §  “Everywhere you want to be”

q  Key Ac2vi2es/Processes -‐ KA §  Network Processing Services: AuthorizaDon; Clearing & Se\lement; Fraud & Risk Management

q  Key Resources -‐ KR §  Payment Technology PlaYorm; Staff; IP; Brand/Culture

q  Inputs/Partners -‐ KP §  Banks; Merchants; Technology Companies

q  Profit (Margin) -‐ P$ §  High Profit Margin

q  Revenue (Streams) -‐ R$ §  Transac5on Fees (Local/Interna5onal: %); Data Processing Service

q  Cost (Structure) -‐ C$ §  Infrastructure Facili5es; Staff Salaries

q  Strategy – Strat: Luxury Spot Strategy (High Cost & High Differen5a5on)

C

S




ENTERPRISE Engine (EE):

Creates Value

VALUE Engine (VE):

Captures/Shares Value


q  Product/ Service

q  Channels/ Rela2onships

q  Customer/ Segment (Community)

q  Key Partners q  Key Ac2vi2es

q  Value (Profit Margin)

q  Value Proposi2on

q  Cost (Structure)

q  Key Resources

q  Revenue (Streams)

Enterprise Engine

Value Engine

Customer Growth Engine

q  Strategy

Feedback; Fitness (Demand vs. Supply)?

Mul2-‐ Plug-‐and-‐Play SUPPLY INFRA-‐STRUCTURE (Resource-‐ Processes-‐ Value

(RPV) Engine)

q  Unknown q  Known MULTI-‐PROBLEM (Jobs)

TOTAL SOLUTION q  Unknown q  Known

MISSION; VISION; CORE VALUES; CULTURE

Demand Infrastructure

Mod

ular PLA

TFORM




More Representa5ons of


Apple (iTunes) vs. Spo2fy Business Model Strips in Music Industry



Lean Business Model (Strip): ROD’s Business Model Nota5on

Job To Get Done (JTGD): Listen to Music

Asset (Product) Sale Model

Apple (iTunes)

Business Model Engine (Luxury Spot Strategy): High Cost & High Quality

Monthly Subscrip2on Model (Membership)

Spo2fy

Business Model Engine (Blue Ocean Strategy): Low Cost & High Quality

Ad Payment Model

Spo2fy


Customer (Payer)


Songs (Streamed)

Monthly Payment for Songs ($4.99; $9.99)

Customer (Payer)


Song (Downloaded)

Payment per Song ($0.99)

Customer 1 (Adver5ser/Payer)

Custom

er 2

(Free user)


Ad Service

Ad Payment Song (Streamed)/Ads

Exposure


Membership

Apple (iTunes) vs. Spo2fy Business Model Strips in Music Industry



Lean Business Model (Strip): ROD’s Business Model Nota5on

Job To Get Done (JTGD): Listen to Music

Asset (Product) Sale Model

Apple (iTunes)

Business Model Engine (Luxury Spot Strategy): High Cost & High Quality

Monthly Subscrip2on Model (Membership)

Spo2fy


Ad Payment Model

Spo2fy


Customer (Payer)


Songs (Streamed)

Monthly Payment for Songs ($4.99; $9.99)

Customer (Payer)


Song (Downloaded)

Payment per Song ($0.99)

Customer 1 (Adver5ser/Payer)

Custom

er 2

(Free user)


Ad Service Ad Payment

Song (Streamed)/ Ads

Exposure


BUSINESS MODEL: MARKET REVENUE MODEL

1-‐Sided Market Business Model Engine (Strategy): Low Cost & Good Enough Quality

Job To Get Done (JTGD): Obtain food, drinks, and hard goods

Asset (Product) Sale

Wal-‐Mart (Supermarket) Target (Supermarket)

Annual Subscrip2on (Membership)

Asset (Product) Sale + Annual Subscrip2on (Membership)

Wal-‐Mart (Sam’s Club) Costco (Wholesale-‐Supermarket)

Customer (Payer)


Service (Membership)

SubscripDon Payment

Customer (Payer)


Goods Payment for Goods

Customer (Payer)


Service (Membership)/

Goods

SubscripDon Payment/ Payment for Goods/

Wal-‐Mart vs. Target vs. Costco Business Model Strips in Retail Industry



Pa2entsLikeMe.com Business Model Strips in Healthcare Industry




Data/Info-‐for-‐Payment Model Pa2entsLikeMe.com •  Founded: 2004


“Live be\er, together!” •  Industry/Product: Social

Networking (Medical)

•  Compe2tors:

Pa2entsLikeMe.com q Facilitate interac5on and

dialogue between pa5ents

q Accelerate clinical research, improve treatments, and be/er pa5ent care

q Sustainably make profit Business Model Engine (Blue Ocean Strategy): Low Cost & High Quality

Pa2ents (Communi2es) q Share ideas as well as data/

info with people who have similar health problems

Pharmaceu2cals q Obtain structured medical

data/info on pa5ents

Pa2entsLikeMe.com (Pa5ent-‐based Social Network:

2-‐sided PlaZorm)

Pharmaceu2cals

Pa2ents (Communi5es)

Medical Data/Info

(De-‐idenDfied)

Payment

Discussion PlaZorm

(Medical) Data/Info


Mul2-‐sided Business Model for Healthcare


Insurance (Payer; Buyer)

Doctor/Pharmacy (Product/Service Supplier)

Pa2ent (Consumer)

Healthcare Provider: Hospital/Clinic (Producer: PlaYorm Owner; Tool/Infrastructure Supplier)


Facebook.com Business Model Strip in Social Networking




Ad-‐ Model Facebook.com •  Founded: 2004


“Move fast with stable infrastructure” •  Industry/Product: Social

Networking •  Compe2tors: Twi/er; LinkedIn; Google+; Yelp Zynga; Groupon; ...

Facebook.com q Give people the power to

share and make the world more open and connected


Users (Social Networkers) q Share ideas especially

photos and videos (links)

Adver2sers q Obtain exposure to targeted

users

Developers q Provide plaYorm and tools

(API) for developing apps

Facebook.com (Social Network:

MulD-‐sided PlaZorm)

Adver2sers

Users Developers


Amazon.com Business Model Strip in Online Shopping




Product (Asset) Sale; Ad; Subscrip2on; Service -‐ Model

Amazon.com

•  Founded: 1994 (Cadabra)


“Earth’s most customer-‐ centric company”

•  Industry/Product: Online Shopping; Web Hos5ng; Content Distribu5on

•  Compe2tors: Barnes & Noble; BestBuy; NeYlix; Apple; Google; Wal-‐Mart; Citrix Systems; ...

Amazon.com “Our vision is to be earth's most customer centric company; to build a place where people can come to find and discover anything they might want to buy online.”


Buyers/Users (Consumers) q Simply obtain goods/service

from trustworthy seller

3rd Party q Obtain more customers q Obtain inexpensive service

Big Box Retailers q Make more profit in selling

(products such as Kindle)

Amazon.com (Online Commerce/Web Hos5ng:


Big Box Retailers

Buyers/ Users

3rd Party (Developers; Resellers; Affiliates)


(Search) Business Model Strip in Search Engine Industry




Ad-‐ Model Google.com •  Founded: 1998

•  Tagline/Value Proposi2on: Relevant and Inexpensive ads;

“Don’t be Evil” •  Industry/Product: Search

Engine •  Compe2tors: Bing.com; Yahoo.com; Facebook.com; ...

Google.com q Google's mission is to

“organize the world's informa5on and make it universally accessible and useful.”


Users/Searchers q Search for informa5on:

websites, …

Adver2sers q Obtain exposure to targeted

users/searchers

Affiliates/Developers q Provide plaYorm and tools

(API)

Google.com (Search) (Search Engine:



Adver2sers

Users/ Searchers

Affiliates/ Developers

Adver2sers

Affiliates/ Developers

User/ Searcher

Google.com: Search Engine (Mul5-‐sided Market/Business Model)


(Search) Business Model Strip in Search Engine Industry


Free Search Engine/ Relevant Content/

Experience Ads

Ad Payment

Exposure Ad Service

A\enDon (Usage)/ Data

A\enDon (Usage)/ Membership (Email)/

Data/Info

Embed Code (Royalty)/

API

Awareness/AcquisiDon (Purchase)

A\enDon (Usage) Free Site/Google Search (Ads)

Awareness/AcquisiDon (Purchase)

Exposure

S2ll More Representa5ons of


5 Stages in the Market Evolu2on of Search

Red Ocean DisrupDon (ROD) Graphing for Visualizing Pa/erns in the Evolu5on of Mul5-‐sided Business Models


CHAIN (Linear/Pipe)

Pa/ern


Pa/ern




From Ver2cal Integra2on (Bundling; Centraliza5on) To Horizontal Integra2on (Unbundling; Decentraliza5on; Outsourcing)

Supplier (Google Search)

Adver5ser

User/Searcher

Adver5ser

User/Searcher



User/Searcher


Adver5ser

User/Searcher

Affiliates/

3rd P

arty

Develope

r



The 5 Stages of Market Evolu2on in the Compu2ng Industry



CHAIN (Linear/Pipe)

Pa/ern


Pa/ern





Ver5cal Integra5on (Miniaturiza5on): q  IBM (Mainframe) q Apple Computer q  IBM (PC)

Ver5cal Disintegra5on (Modulariza5on): q Hardware: IBM (PC); Intel q Sotware: Microsot

(MSDOS)

Physical Horizontal Integra5on (Bridging): q Sotware PlaYorm

Integra5on: Microsot (Windows)

Online Horizontal Integra5on (Networking; Interoperability): q Sotware Econetwork: Google


Customer 1 (Hardware)

Custom

er 2

(Sot

ware) Customer 1

(Hardware)

Custom

er 2

(Sot

ware)

Supplier (Hardware & Sokware)

Supplier (Sokware)

Customer (Hardware & Sotware)



Custom

er 2

(Sot

ware)

Custom

er 3

(3rd Party

Develope

r)

Supplier (Sokware)


The 5 Stages of Market Evolu2on in the Compu2ng Industry



CHAIN (Linear/Pipe)

Pa/ern


Pa/ern





Ver5cal Integra5on (Miniaturiza5on): q  IBM (Mainframe) q Apple Computer q  IBM (PC)

Ver5cal Disintegra5on (Modulariza5on): q Hardware: IBM (PC); Intel q Sotware: Microsot

(MSDOS)

Physical Horizontal Integra5on (Bridging): q Sotware PlaYorm

Integra5on: Microsot (Windows)

Online Horizontal Integra5on (Networking; Interoperability): q Sotware Econetwork: Google



Custom

er 2

(Sot

ware) Customer 1

(Hardware)

Custom

er 2

(Sot

ware)


Supplier (Sokware)

Customer (Hardware & Sotware)



Custom

er 2

(Sot

ware)

Custom

er 3

(3rd Party

Develope

r)

Supplier (Sokware)

BUMP BUMP BUMP BUMP (BUMP: Big Urgent

Market Problem)


One More Thing …

ZERO-‐ Pa/ern

MONO-‐ Pa/ern

BI-‐ Pa/ern

TRI-‐ Pa/ern

POLY-‐ Pa/ern

No Product Mono-‐Product Bi-‐Product Tri-‐Product Mul5-‐Product (PlaYorm)

Ini2al (Single) Form/Func5on

Similar (Duplicate) Form/Func5on

Opposite (An5-‐) Forms/Func5ons

Diverse (Zoom in/out) Forms/Func5ons

Job To Get Done (JTGD): ……………………………………………………………………………………………………….

5 Panerns of Product Evolu2on

Red Ocean DisrupDon (ROD) Graphing for Visualizing Pa/erns in Evolu5on of Mul5-‐Product PlaYorms

Component/Parts of Product (System/Tool)


ZERO-‐ Pa/ern

MONO-‐ Pa/ern

BI-‐ Pa/ern

TRI-‐ Pa/ern

POLY-‐ Pa/ern



Single Lens; Monocle

Spectacle Op5cian’s Tes5ng Glasses: 3 Single Lenses

Tradi5onal Microscope


Contact Lens; Microscope

Bi-‐focal Spectacle: Symmetrical

Op5cian’s Tes5ng Glasses: Same Lenses

Electron Microscope


Telescope Binoculars; Bi-‐focal Spectacle: Asymmetrical

Op5cian’s Tes5ng Glasses: Opp. Lenses

Radio Telescope


Photo-‐chroma5c Lens; Camera Lens

S5ll/Video Camera; Periscope

Spy Camera Web-‐enabled Glasses: Google Glass

5 Panerns of Product Evolu2on: Single Lens

Red Ocean DisrupDon (ROD) Graphing for Visualizing Pa/erns in Evolu5on of Solu5on PlaYorms

Job To Get Done (JTGD): See more clearly



ZERO-‐ Pa/ern

MONO-‐ Pa/ern

BI-‐ Pa/ern

TRI-‐ Pa/ern

POLY-‐ Pa/ern



Desktop Computer Intranet Server Internet-‐enabled Desktop Computer


Laptop Computer; Handheld Computer

Pager Cellphone Smartphone


CD/DVD Player; (Video) Camera

TV-‐Video Recorder Home Entertainment Center

Digital Hub (Tablet)


Individual Sotware Applica5on (App)

Sotware Stack/Bundle/Suite

Integrated Apps; Sotware PlaYorm

Internet of Things (IoT); Social Network of Things (SNoT)

Job To Get Done (JTGD): Process, display, present, and/or communicate informaLon

5 Panerns of Product Evolu2on in Personal Compu2ng




ZERO-‐ Pa/ern

MONO-‐ Pa/ern

BI-‐ Pa/ern

TRI-‐ Pa/ern

POLY-‐ Pa/ern



Telegraph Telegraph Exchange


Fax Machine; Telephone

Telephone Exchange


Radio; Pager

Walkie Talkie

Basic Computer Network Social Networking PlaYorm


Smartphone Internet (Highway)

Job To Get Done (JTGD): Communicate (over short/medium/long distance).

5 Panerns of Product Evolu2on in Communica2on Industry




ZERO-‐ Pa/ern

MONO-‐ Pa/ern

BI-‐ Pa/ern

TRI-‐ Pa/ern

POLY-‐ Pa/ern



One Song-‐Music Player


Tape Recorder


Radio


Radio-‐Tape Recorder

5 Panerns of Product Evolu2on: Music Player

Red Ocean DisrupDon (ROD) Graphing for Visualizing Pa/erns in Evolu5on of Solu5on PlaYorms

Job To Get Done (JTGD): Listen to music



ZERO-‐ Pa/ern

MONO-‐ Pa/ern

BI-‐ Pa/ern

TRI-‐ Pa/ern

POLY-‐ Pa/ern






5 Panerns of Product Evolu2on: Single Wheel




ZERO-‐ Pa/ern

MONO-‐ Pa/ern

BI-‐ Pa/ern

TRI-‐ Pa/ern

POLY-‐ Pa/ern



Single blade razor Two-‐blade razor Three-‐blade razor Mul5-‐blade razor


Knife Dual-‐knife


Mono-‐boat Bi-‐boat: catamaran; Boat + Dinghy


Mono-‐rail; Mono-‐plane

Bi-‐rail; Bi-‐plane

Tri-‐plane

Mul5-‐plane

5 Panerns of Product Evolu2on: Triz


Job To Get Done (JTGD): ……………………………………………………………………………………………………….



Detailed Representa5on of

A Node (Object) In a Business Model Strip (New Business Model Nota2on System)


Customer Growth Storyboard Comprehensively Visualize a Node (Object)

Zoom in to a Node (Object) of a Business Model Strip

S: Supplier

C: Customer

Business Model Strip (System: Customer Growth Factory)

Processing (Stock)




Goal/Job To Get Done (JTGD)

Value: +/-‐ (Trade-‐off; Margin)

Delight: + (Revenue/Streams)

Pain: -‐ (Cost/Structure)

Node (Object)

S: Supplier

C: Customer

Business Model Strip (System: Customer Growth Factory)

Processing (Stock)








Node (Object)


S: Supplier

C: Customer

Business Model Strip

Zooming In to a Node





Node (Object)



Value Engine (VE)

Product/Service

Payment (Margin; Strategy)

Core Competence




S: Supplier

C: Customer

Business Model Strip

Zooming In to a Node





Node (Object)



Value Engine (VE)

PROBLEM

SOLUTION

Product/Service

Payment (Margin; Strategy)

Core Competence




Zooming In to “Product” Node





Product/Service


Zoom in to “Product” Node of a Business Model Strip


Zooming In to “Supplier” Node





S: Supplier

Zooming In to “Customer” Node





C: Customer


Zoom in to “Supplier” and “Customer” Nodes of a Business Model Strip

Appendix

Business Model Strip & Related Tools Leaner Business Modeling: Stack of Blocks


BUSINESS MODEL ENGINE: Related Tools Elements

Business Model Canvas (BMC)

Lean Canvas (LC)

Balanced Scorecard (BSC)

Value Chain (VC)

Resources, Processes & Values (RPV) Theory


Customer Segments CS ü  ü  ü 

Channels/Customer Rela2onships

CH/CR

ü  ü 

Product/Service PS

ENTERPRISE Engine (EE): Creates Value

Value Proposi2on VP ü  ü 

Key Ac2vi2es/Processes

KA

ü  ü  ü  ü 

Key Resources KR ü  ü  ü  ü 

Inputs/Partners KP ü 

VALUE Engine (VE): Captures/Shares Value; Priori5zes Alloca5on of Resources

Profit (Margin) P$ ü  ü  ü 

Revenue (Streams) R$ ü  ü  ü 

Cost (Structure) C$ ü  ü  ü 

Strategy Strat



i

p

m

a c

t

Customer Growth Storyboard Comprehensively Visualize a System

System, Environment, and Impact (Value; Trade-‐off: Success Criteria/Metrics/Key Performance Indicators)

System


Business System

Engagement (Experience)

Ac5va5on

Referral

Reward (Revenue)

E

A

A

R R

R

Reten5on

Acquisi5on

Customer Growth Storyboard Comprehensively Visualize a Business System

Business System, Environment, and Impact (Value; Trade-‐off: Success Criteria/Metrics/Key Performance Indicators)


Business Model


Ac5va5on

Referral

Reward (Revenue)

E

A

A

R R

R

Reten5on

Acquisi5on

Customer Growth Storyboard Comprehensively Visualize a Business Model

Business Model, Environment, and Impact (Value; Trade-‐off: Success Criteria/Metrics/Key Performance Indicators)


Ac5va5on

Referral

Reward (Revenue)


E

A

A

R R

R

Reten5on

Acquisi5on The Three Main Phases of Customer Growth Hacking 1.  Customer Hacking:

Problem-‐SoluDon Fit 2.  Customer Growth:

Product-‐Market Fit 3.  Growth Hacking:

Business Model Fit/Scaling

Customer Growth Storyboard

One-‐sided Market (Business Model)

Customers/ Users

One-‐sided Market

B.U.M.P. = Big Urgent Market Problem

Examples of One-‐sided Markets ONE-‐MARKET ENTERPRISES



Ac5va5on

Referral

Reward (Revenue)


E

A

A

R R

R

Reten5on






Two-‐sided Market (Business Model)

Customers/ Users

Two-‐sided Market


Examples of Two-‐sided Markets TWO-‐MARKET ENTERPRISES


3rd Party Developers/ Prosumers


Ac5va5on

Referral

Reward (Revenue)


E

A

A

R R

R

Reten5on






Mul2-‐sided Market (Business Model)

Customers/ Adver2sers

Users

3rd Party Developers/ Affiliates


Examples of Mul2-‐sided Markets MULTI-‐SIDED ENTERPRISES q Smartphones: Apple; Samsung; Nokia q Search Engines: Google (Search) q Social Networks: Facebook; Twi\er q Business Networks: LinkedIn q Auc2ons: Ebay q Network Television q Credit Card Companies q Game Console Companies q Computer Opera2ng Systems Owner q Da2ng Clubs; Classified Ads-‐Publishers

Mul2-‐sided Market
