the linear business model canvas for business investors, mentors, and startups
Post on 19-Oct-2014
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DESCRIPTION
Business model innovation is a hot topic. People from many professions are getting involved in business model projects. However, many participants in business model projects do not have a deep understanding of business models to use them as tools for managing performance improvement, business model innovation, and shared value. This presentation introducing a simple but powerful framework to help business investors, mentors, and startups to better understand and manage not only performance improvement but also business model innovation and shared value. This presentation is largely an update of my presentation, "The Linear Business Model Canvas on the Disruptor's Arrow of Time." The key difference between both presentations is the focus on the targeted audience.TRANSCRIPT
Copyright 2012. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing “Visually Organize and Manage the World’s Systems, Projects, and Trends”
HEROES
Compete Different
THE LINEAR BUSINESS MODEL CANVAS
FOR BUSINESS INVESTORS, MENTORS, AND STARTUPS
How to Deeply Understand and Manage
Performance Improvement, Business Model Innovation, and Shared Value
Rod King, Ph.D.
For People
Who Are Looking For
Simpler, More Powerful, and Versatile Tools
To
Manage
Performance Improvement,
Business Model Innovation, and
Shared Value
Copyright 2012. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing “Visually Organize and Manage the World’s Systems, Projects, and Trends”
The Business Model Canvas
Was Created by Alexander Osterwalder and
Is Basically
A Visually Structured Dashboard (“Canvas”) For
Documenting Information About
The Building Blocks of a Business Model
Or
The Elements of a Business Ecosystem
Copyright 2012. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing “Visually Organize and Manage the World’s Systems, Projects, and Trends”
A Business Model
Is
A Visual Representation, Story Plot, or
Dynamic Simulation of a Living Organization That
Viably Pursues and Achieves
A Hierarchy of Goals Especially of
Increasing the Number of Profitable Customers &
Delivering Greater Value in the Ecosystem
Copyright 2012. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing “Visually Organize and Manage the World’s Systems, Projects, and Trends”
9 Topics and Layout of The Non‐Linear Business Model Canvas
Source: Hhttp://en.wikipedia.org/wiki/Business_Model_Canvas
Copyright 2012. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing “Visually Organize and Manage the World’s Systems, Projects, and Trends”
From a Kinesthetic Perspective,
Creating the Linear Business Model Canvas
Involves
“Flattening”
Or
“Thinking Out of the Box” of
The Non‐Linear Business Model Canvas
Copyright 2012. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing “Visually Organize and Manage the World’s Systems, Projects, and Trends”
The Linear Business Model Canvas
Is Essentially
A Chain of the 9 Topics on The Business Model Canvas:
KP KR KA VP CH CR CS R$ C$
Effect (Result)Cause
On the Linear Business Model Canvas,
The 9 Topics Are Arranged in
A Linear Sequence That Reflects
The Cause‐and‐Effect Chain of an Ecosystem: Input‐Processing‐Output‐Feedback‐Environment‐Result (IPOFER)
Copyright 2012. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing “Visually Organize and Manage the World’s Systems, Projects, and Trends”
A Unique Characteristic of
The Linear Business Model Canvas
Is
Generalization of the Topics of
“Revenue Streams” and “Cost Structure.”
“Revenue Streams” has an extended description
of “Delight”
“Cost Structure” is now described under “Pain”
Copyright 2012. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing “Visually Organize and Manage the World’s Systems, Projects, and Trends”
The Inclusion of “Delight” and “Pain”
In
the Linear Business Model Canvas Allows
Value to Be Defined
As the Ratio of Delight to Pain
(Instead of Just As Profit or the Ratio of Revenue to Cost).
Also, the Above Description of Value
Means That the Linear Business Model Canvas
Can Be Applied to All Types of Projects.
Copyright 2012. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing “Visually Organize and Manage the World’s Systems, Projects, and Trends”
Ideally,
The Maximization of Value
Involves …
o Maximization of Delight: Revenue (Streams); Performance; Functionality; Quality; Reliability; Brand/Image/Reputation; Differentiation; Customization/Personalization
o Minimization of Pain: Cost (Structure); Size; Weight; Waste; Defects; Complexity; Inaccessibility; Inconvenience; Time (Delay); Obstacles/Barriers/Problems; Risks
Copyright 2012. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing “Visually Organize and Manage the World’s Systems, Projects, and Trends”
High Low PAIN (‐): Cost
DELIGHT Revenue;
Differentiation; Quality
(+):
Low
High 1 2 3
4 5 6
7 8 9
9 Archetypal Business Models
Business Models
Key BLUE OCEAN SWEET SPOT LUXURY SPOT DISRUPTION (LEAN) SPOT Profitable
421
3
The Linear Business Model Canvas: An Outline of 9 Topics
KP Key Partnerships (Partners/Alliances/Complementors)
KR Key Resources (Supplies/Inputs/Employees/Machinery/Tool)
KA Key Activities (Process/Strategy/Business Job‐To‐Be‐Done)
VP Value Proposition (Product/Service)
CH Channels (Distribution)
CR Customer Relationships (Engagement/Acquisition/Retention)
CS Customer Segments (Problems/Needs/Job‐To‐Be‐Done)
R$
Revenue Streams (Delight: +)
Cost Structure (Pain: ‐) (Value = Delight/Pain)
C$
Copyright 2012. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing “Visually Organize and Manage the World’s Systems, Projects, and Trends”
NOW, YOU CAN
INSTANTLY AND COLLABORATIVELY USE
THE LINEAR BUSINESS MODEL CANVAS
FOR PROJECTS
ANYWHERE AND EVERYWHERE:
No Special Graphic Layout or Canvas
Is
Required
Copyright 2012. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing “Visually Organize and Manage the World’s Systems, Projects, and Trends”
THE MINIMUM LINEAR BUSINESS MODEL CANVAS
IS ENTIRELY TEXT‐BASED.
This Linear Business Model Canvas
Does Not Need
Any Special or Dedicated Software
Copyright 2012. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing “Visually Organize and Manage the World’s Systems, Projects, and Trends”
THE MINIMUM LINEAR BUSINESS MODEL CANVAS
REQUIRES ONLY PEN AND BLANK PAPER
OR
BASIC TEXT‐EDITING (WORD PROCESING) SOFTWARE
Copyright 2012. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing “Visually Organize and Manage the World’s Systems, Projects, and Trends”
Background on
The Linear Business Model Canvas
Rod King Created the Linear Business Model Canvas as
A “Minimum Viable Product (MVP)”
of the Business Model Canvas
Which Was Created By Alexander Osterwalder and Featured in the Book,
“Business Model Generation.”
Copyright 2012. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing “Visually Organize and Manage the World’s Systems, Projects, and Trends”
Copyright 2012. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing “Visually Organize and Manage the World’s Systems, Projects, and Trends”
Main Purpose of
The Linear Business Model Canvas
The Linear Business Model Canvas
Focuses on Ubiquitously
Achieving Performance Improvement and
Business Model Innovation
In
Simpler, Faster, and “Funner” Ways
Universality of
The Linear Business Model Canvas
The Linear Business Model Canvas
Can Also Be Regarded As One of Many Systems
[“Minimum Viable Interfaces,” Dashboards, or Objects]
For Portrayal on the Visual Platform of
The Disruptor’s Arrow of Time
Which Integrates All Tools in Strategic Management
Copyright 2012. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing “Visually Organize and Manage the World’s Systems, Projects, and Trends”
Advantages of The Linear Business Model Canvas
Elimination of Complex Graphic Layout (Canvas): Easier to Read Linear Format
Simplicity in Form and Structure; Infinitely Long (“DNA” Fractal) Format
Intuitive Linear Logic That is Applicable to All Systems: Living and Non‐living
Faster Learning and Easier Application; Easier Customization and Extension
Direct Linkage to Existing Tools of Business/Strategic Planning, Performance Management, Total Quality Management, Business Process Improvement, Product Innovation, Inventive Problem Solving, and Portfolio Management
Collaborative Development of Strategy (Blue Ocean Strategy) and Scenarios
Easier Development, Update, and Tracking of Business Model Plan/Dashboard
Diversified and Novel Linear Layouts for Topics of the Business Model Canvas
Facilitates Comparative Analysis, Benchmarking, and Pattern Identification
Can Easily Be Presented as a Game in Many Formats; Facilitates Gamification
Outline of Topics Can Easily Be Converted to a Report for a Business Model Plan
Copyright 2012. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing “Visually Organize and Manage the World’s Systems, Projects, and Trends”
Logic of Sequence on The Linear Business Model Canvas
Key Partnerships
Key Resources
Key Activities (Processing)
Value Proposition (Product)
Channels (Distribution)
Customer Relationships
Customer Segments
Revenue Streams (Delight)
Cost Structure (Pain)
Upstream
HOW?
[D]esign
‐ Input/Processing/Output (System)
Midstream
WHAT?
[N]eeds
‐ Local Environment
Downstream
WHY?
[A]spirations
‐ Result (Effect)
Left Brain ‐ Evaluate
SUPPLY INFRASTRUCTURE (Inside the Enterprise)
Right Brain ‐ Explore
DEMAND INFRASTRUCTURE (Outside the Enterprise)
Total Brain ‐ Envision
SHARED VALUE (= Delight/Pain)
E
C
O
S
Y
S
T
E
M
(Supply/ Input)
Product‐Market Fitness (Feedback)
KP
KR
KA
VP
CH
CR
CS
R$
C$
Copyright 2012. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing “Visually Organize and Manage the World’s Systems, Projects, and Trends”
The Usefulness, Areas of Application, and Power
Of
The Linear Business Model Canvas Are
Exponentially Increased
When the Linear Business Model Canvas
Is Presented on
The Disruptor’s Arrow of Time
Copyright 2012. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing “Visually Organize and Manage the World’s Systems, Projects, and Trends”
Copyright 2012. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing “Visually Organize and Manage the World’s Systems, Projects, and Trends”
Disruptor’s Arrow of Time (DAT): ………………………………………….……………………………….. Client/Customer: ………………………………….……
Objective: ……………………………………………………………………………………………………………………………. Date: ………………………………….……
PRESENT SYSTEM (Where currently are we?)
VALUE DISRUPTION STRATEGY – Evolve, Plan, or Disrupt: E.R.I.C.
(Eliminate/Reduce/Increase/Create)
FUTURE SYSTEM (Where must we go?)
Short/Medium/Long‐term
CONSTRAINTS (What are constraints/obstacles/barriers/problems that prevent full realization of future system/vision/dream/IFR)?
DREAM/ VISION/ Ideal Final Result (IFR): Value (+/‐)
Copyright 2012. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing “Visually Organize and Manage the World’s Systems, Projects, and Trends”
Linear BMC‐Arrow of Time (LBMC‐AT): …………………………..…………………………………….. Client/Customer: ………………………………….……
Objective: Business Model Documentation, Improvement, Innovation, and Presentation Date: ………………………………….……
PRESENT SYSTEM – Linear Business Model Canvas (LBMC)
VALUE DISRUPTION STRATEGY – Evolve, Plan, or Disrupt: E.R.I.C.
(Eliminate/Reduce/Increase/Create)
FUTURE SYSTEM – Linear Business Model Canvas (LBMC)
Short/Medium/Long‐term KP – Key Partners
KR – Key Resources
KA – Key Activities
VP – Value Proposition
CH – Channels
CR – Customer Relationships
CS – Customer Segments
R$ – Revenue Streams (Delight: +)
C$ – Cost Structure (Pain: ‐)
CONSTRAINTS (What are constraints/obstacles/barriers/problems that prevent full realization of future system/vision/dream/IFR)?
KP
KR
KA
VP
CH
CR
CS
C$
R$
DREAM/ VISION/ Ideal Final Result (IFR): Value (+/‐)
Copyright 2012. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing “Visually Organize and Manage the World’s Systems, Projects, and Trends”
Linear BMC‐Arrow of Time (LBMC‐AT) for “Business Model Generation” Project Client/Customer: ………………………………….……
Objective: Business Model Documentation, Improvement, Innovation, and Presentation Date: ………………………………….……
PRESENT SYSTEM – 2008 Linear Business Model Canvas (LBMC)
For Traditional Book Authors/Publishers
VALUE DISRUPTION STRATEGY – Evolve, Plan, or Disrupt: E.R.I.C.
(Eliminate/Reduce/Increase/Create)
FUTURE SYSTEM – 2009 Linear Business Model Canvas (LBMC)
For “Business Model Generation” Project KP – Key Partners Publishers
Eliminate Publishers The Movement (Design); Ning Platform; Amazon.com; 3rd Party Logistics Company
KR – Key Resources
Blog and Visibility on the Web; Business Model Hub; Powerful Methodology
KA – Key Activities Logistics & Shipping
Eliminate Logistics & Shipping Content Production; Hub Management; Guerilla Marketing and Word‐of‐Mouth
VP – Value Proposition
Visual, Practical, and Beautiful Handbook; Co‐creation; Personalized Book
CH – Channels Intermediation Through Publishers
Eliminate Intermediation Through Publishers
Hub Members; Word‐of‐Mouth; Amazon. com; BusinessModelHub.com; Book Stores
CR – Customer Relationships
Businessmodelhub.com; Business Model Event (Amsterdam)
CS – Customer Segments
Visionaries, Game Changers, and Challeng‐ers; Entrepreneurs, Execs, etc.; Companies
R$ – Revenue Streams (Delight: +)
Hub Membership Fees; Advance & Post‐publication Sales; Giveaways; Royalties; etc.
C$ – Cost Structure (Pain: ‐)
Design; Content Production; Printing; Distribution
CONSTRAINTS (What are constraints/obstacles/barriers/problems that prevent full realization of future system/vision/dream/IFR)?
Reference: Osterwalder, A.; Pigneur, Y. (2009) Business Model Generation. Amsterdam: Modderman Drukwerk.
DREAM/ VISION/ Ideal Final Result (IFR): Value (+/‐)
KP
KR
KA
VP
CH
CR
CS
R$
C$
Copyright 2012. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing “Visually Organize and Manage the World’s Systems, Projects, and Trends”
BME‐Arrow of Time (BME‐AT): …………………………..………………………………………………….. Client/Customer: ………………………………….……
Objective: Industry and Environmental Analysis; Competitive Advantage Date: ……………………………….……
PRESENT SYSTEM – Business Model Environment (LBME)
Global Environment
VALUE DISRUPTION STRATEGY – Evolve, Plan, or Disrupt: E.R.I.C.
(Eliminate/Reduce/Increase/Create)
FUTURE SYSTEM – Short/Medium/Long‐term Business Model Environment (LBME)
Global Environment
INDUSTRY FORCES
MARKET FORCES
MACRO‐ECONOMIC FORCES
PESTLIED FACTORS (KEY TRENDS)
DREAM/ VISION/ Ideal Final Result (IFR): Value (+/‐)
CONSTRAINTS (What are constraints/obstacles/barriers/problems that prevent full realization of future system/vision/dream/IFR)?
Key: PESTLIED = Political; Economic; Social; Technological; Legal; International; Environmental; Demographic
Universal System Modeling
Using the Interface of the
“SEMPORCES” Tool
A More Comprehensive and
APPENDIX
Copyright 2012. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing “Visually Organize and Manage the World’s Systems, Projects, and Trends”
“SEMPORCES” Tool for Living & Non‐living Ecosystems
Suppliers/Inputs/Partners S
Employees/Brand/IP/etc. E
C
O
S
Y
S
T
E
M
Upstream
HOW?
[D]esign
‐ Input/Processing/Output (System)
E
Machinery/Facilities/etc. M
Process/Strategy P
Midstream
WHAT?
[N]eeds
‐ Global/Local Environment
Output (Product/Service) O
Retailers/Channels R
Customers/Consumers C
Environment (Global) E
Shared Value (Delight/Pain)
Product‐Market Fitness (Feedback)
Total Brain – Envision SHARED VALUE Delight/Pain) (=
Downstream WHY? [A]spirations ‐ Result (Effect)
Right Brain ‐ Explore
DEMAND INFRASTRUCTURE (Outside the Enterprise)
SUPPLY INFRASTRUCTURE (Inside the Enterprise)
Left Brain ‐ Evaluate
S
Copyright 2012. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing “Visually Organize and Manage the World’s Systems, Projects, and Trends”
Copyright 2012. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing “Visually Organize and Manage the World’s Systems, Projects, and Trends”
SEMPORCES‐Arrow of Time (S‐AT): …………………..…..………………………………………..…….. Client/Customer: ………………………………….……
Objective: Business Model Documentation, Improvement, Innovation, and Presentation Date: ………………………………….……
PRESENT SYSTEM – SEMPORCES
VALUE DISRUPTION STRATEGY – Evolve, Plan, or Disrupt: E.R.I.C.
(Eliminate/Reduce/Increase/Create)
FUTURE SYSTEM – SEMPORCES
Short/Medium/Long‐term S – Suppliers/Inputs/Partners
E – Employees/Culture/Brand/IP
M – Machinery/Technology/Tool/Infra’
P – Process/Strategy/Job To Be Done
O – Output (Product/Service)
R – Retailers/Distributors/Channels/CRM
C – Customers/Consumers (Problems)
E – Environment (Global)
S – Shared Dream/Mission/Result/ROI
CONSTRAINTS (What are constraints/obstacles/barriers/problems that prevent full realization of future system/vision/dream/IFR)?
DREAM/ VISION/ Ideal Final Result (IFR): Value (+/‐)
S
E
M
P
O
R
C
E
S
The Disruptor’s Arrow of Time
Is
The Main Tool for
Business Model Project Management
(BMPM)
Copyright 2012. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing “Visually Organize and Manage the World’s Systems, Projects, and Trends”
Plan, Organize, Manage, and Present
(Business) Projects
In
Simpler, Better, Leaner, and Faster Ways
Copyright 2012. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing “Visually Organize and Manage the World’s Systems, Projects, and Trends”
Copyright 2012. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing “Visually Organize and Manage the World’s Systems, Projects, and Trends”
“Every Object in the Universe
Is
A System or an Ecosystem
That Can Be Described Using
The Same Categories as in
A Business DNA Model,
Linear Business Model Canvas, and/or
Disruptor’s Arrow of Time”