the value chain (vc) yacht: discover and solve customer problems better, faster, and cheaper
DESCRIPTION
It is a truism that organizations that survive and prosper are those that discover and solve customer problems better, faster, and cheaper. This presentation introduces a fun tool, the Value Chain (VC) Yacht, that enables startups as well as established organizations to discover and solve problems better, faster, and cheaper. The VC Yacht is an extremely versatile tool for problem finding and solving. The VC Yacht can be used to illustrate, derive, explain, and apply over 40 tools that are used for finding and solving problems. http://goo.gl/b5FGHZTRANSCRIPT
Industry/Market/Customer Goal (Job To Get Done): ……………………………………………….………………………….
Problem Pain: (Un)Known
RED OCE
AN BLU
E OCEAN
SoluGon Gain: (Un)Known
Method
#VCYacht. Dr. Rod King. [email protected] & hRp://businessmodels.ning.com & hRp://twiRer.com/RodKuhnKing
Industry/Market/Customer Goal (Job To Get Done): ……………………………………………….………………………….
RED OCE
AN BLU
E OCEAN
SoluGon Gain: (Un)Known
Method
#VCYacht. Dr. Rod King. [email protected] & hRp://businessmodels.ning.com & hRp://twiRer.com/RodKuhnKing
Where currently are we? Where must we
go?
How must we get there?
Problem Pain: (Un)Known
Industry/Market/Customer Goal (Job To Get Done): ……………………………………………….………………………….
RED OCE
AN BLU
E OCEAN
SoluGon Gain: (Un)Known
Method
#VCYacht. Dr. Rod King. [email protected] & hRp://businessmodels.ning.com & hRp://twiRer.com/RodKuhnKing
Where currently are we? Where must we
go?
Problem Pain: (Un)Known
Industry/Market/Customer Goal (Job To Get Done): ……………………………………………….………………………….
RED OCE
AN BLU
E OCEAN
SoluGon Gain: (Un)Known
Method
#VCYacht. Dr. Rod King. [email protected] & hRp://businessmodels.ning.com & hRp://twiRer.com/RodKuhnKing
Where currently are we? Where must we
go?
Problem Pain: (Un)Known
Industry/Market/Customer Goal (Job To Get Done): ……………………………………………….………………………….
RED OCE
AN BLU
E OCEAN
SoluGon Gain: (Un)Known
Method
System Structure
Performance Structure
#VCYacht. Dr. Rod King. [email protected] & hRp://businessmodels.ning.com & hRp://twiRer.com/RodKuhnKing
Where currently are we? Where must we
go?
Problem Pain: (Un)Known
Industry/Market/Customer Goal (Job To Get Done): ……………………………………………….………………………….
Problem Pain: (Un)Known
RED OCE
AN BLU
E OCEAN
SoluGon Gain: (Un)Known
Method
System Structure
Performance Structure
#VCYacht. Dr. Rod King. [email protected] & hRp://businessmodels.ning.com & hRp://twiRer.com/RodKuhnKing
Industry/Market/Customer Goal (Job To Get Done): ……………………………………………….………………………….
Problem Pain: (Un)Known
RED OCE
AN BLU
E OCEAN
SoluGon Gain: (Un)Known
C$ R$
P$
VP + -‐
#VCYacht. Dr. Rod King. [email protected] & hRp://businessmodels.ning.com & hRp://twiRer.com/RodKuhnKing
#VCYacht. Dr. Rod King. [email protected] & hRp://businessmodels.ning.com & hRp://twiRer.com/RodKuhnKing
Industry/Market/Customer Goal (Job To Get Done): ……………………………………………….………………………….
Problem Pain: (Un)Known
RED OCE
AN BLU
E OCEAN
SoluGon Gain: (Un)Known
C$ R$
P$
VP + -‐
#VCYacht. Dr. Rod King. [email protected] & hRp://businessmodels.ning.com & hRp://twiRer.com/RodKuhnKing
Industry/Market/Customer Goal (Job To Get Done): ……………………………………………….………………………….
Problem Pain: (Un)Known
RED OCE
AN BLU
E OCEAN
SoluGon Gain: (Un)Known
C$ R$
P$
VP + -‐
#VCYacht. Dr. Rod King. [email protected] & hRp://businessmodels.ning.com & hRp://twiRer.com/RodKuhnKing
Industry/Market/Customer Goal (Job To Get Done): ……………………………………………….………………………….
Problem Pain: (Un)Known
RED OCE
AN BLU
E OCEAN
SoluGon Gain: (Un)Known
PROFIT (MARGIN)
COST (STRUCTURE)
REVENUE (STREAMS)
Value Engine
(Proposi<on/Strategy)
#QBE. Dr. Rod King. [email protected] & hRp://businessmodels.ning.com & hRp://twiRer.com/RodKuhnKing
Industry/Market/Customer Goal (Job To Get Done): ……………………………………………….………………………….
PROFIT (MARGIN)
COST (STRUCTURE)
REVENUE (STREAMS)
Problem Pain: (Un)Known
RED OCE
AN BLU
E OCEAN
SoluGon Gain: (Un)Known
Services
Outbound LogisGcs
OperaGons
Inbound LogisGcs
Procurement
Technology Dev.
HR Mngt.
Firm Infra.
Value Engine
(Proposi<on/Strategy)
MarkeGng & Sales
#QBE. Dr. Rod King. [email protected] & hRp://businessmodels.ning.com & hRp://twiRer.com/RodKuhnKing
Industry/Market/Customer Goal (Job To Get Done): ……………………………………………….………………………….
PROFIT (MARGIN)
COST (STRUCTURE)
REVENUE (STREAMS)
Problem Pain: (Un)Known
RED OCE
AN BLU
E OCEAN
SoluGon Gain: (Un)Known
Services
Outbound LogisGcs
OperaGons
Inbound LogisGcs
Procurement
Technology Dev.
HR Mngt.
Firm Infra.
Value Engine
(Proposi<on/Strategy)
MarkeGng & Sales
#QBE. Dr. Rod King. [email protected] & hRp://businessmodels.ning.com & hRp://twiRer.com/RodKuhnKing
Industry/Market/Customer Goal (Job To Get Done): ……………………………………………….………………………….
PROFIT (MARGIN)
COST (STRUCTURE)
REVENUE (STREAMS)
Problem Pain: (Un)Known
RED OCE
AN BLU
E OCEAN
SoluGon Gain: (Un)Known
Services
Outbound LogisGcs
OperaGons
Inbound LogisGcs
Procurement
Technology Dev.
HR Mngt.
Firm Infra.
Value Engine
(Proposi<on/Strategy)
MarkeGng & Sales
Forces Against
Forces For
Trade-‐off Trade-‐off
#QBE. Dr. Rod King. [email protected] & hRp://businessmodels.ning.com & hRp://twiRer.com/RodKuhnKing
Industry/Market/Customer Goal (Job To Get Done): ……………………………………………….………………………….
PROFIT (MARGIN)
COST (STRUCTURE)
REVENUE (STREAMS)
Problem Pain: (Un)Known
RED OCE
AN BLU
E OCEAN
SoluGon Gain: (Un)Known
Services
Outbound LogisGcs
OperaGons
Inbound LogisGcs
Procurement
Technology Dev.
HR Mngt.
Firm Infra.
Value Engine
(Proposi<on/Strategy)
MarkeGng & Sales S:
Strengths
O: Opportuni-‐
<es
W: Weaknesses
T: Threats
Trade-‐off Trade-‐off
Value Chain Yacht Discover and Solve Customer Problems BeDer, Faster, and Cheaper
IntroducGon Today, startups as well as established organiza<ons are struggling to discover and solve customer problems in a <mely manner. On the one hand, tools such as brainstorming and lateral thinking are rela<vely simple to use but produce low quality solu<ons. On the other hand, tools such as the Six Sigma methodology, Lean Startup method, and TRIZ generate high quality solu<ons but take a long <me to understand and effec<vely apply. Mastery of these laUer tools is also <me-‐consuming and expensive.
ObjecGve The Value Chain Yacht is designed as a simple customizable worksheet that eliminates the trade-‐off of Complexity vs. Quality in tools such as brainstorming, lateral thinking, TRIZ, Six Sigma methodology, and the Lean Startup method. The Value Chain (VC) Yacht can be considered as a “Wisdomsourcing” Board for collabora<vely organizing and managing ideas while rapidly solving customer problems.
Delight The Value Chain Yacht helps people to beUer, faster, and cheaper solve problems. There are 8 levels of proficiency in using the Value Chain (VC) Yacht. The first level of proficiency focuses on use of the VC Yacht as a problem discovery tool. At this first level, the VC Yacht can be learned and applied within 30 minutes especially as a tool for visually collec<ng ideas on the Voice of the Customer. At the eighth level, use of the VC Yacht focuses on developing ideas on the evolu<on of business model ecosystems. Use of the VC Yacht at intermediate levels ranges from product innova<on, value chain analysis, industry analysis, business model innova<on to performance management.
Procedure (for Level 1 of the Value Chain Yacht) 1. Make a large (A1 size) printout or drawing of the template for the Value Chain (VC) Yacht and place it on a table or wall. 2. Write out a descrip<on of the Customer Goal or “Job To Get Done”. 3. Describe or list each problem (preferably using Post-‐It notes) under the Problem Space or “Red Ocean” on lec hand side. 4. Choose the most important problem. (Why is the selected problem regarded as the most important? What are impacts of problem?) 5. Generate, under the Solu<on Space or “Blue Ocean”, ideas for solving the most important problem. (Hint: Use analogical thinking.) 6. Select the highest quality solu<on that can be rapidly implemented as well as which has the least cost.
References Kim, W.C.; Mauborgne, R. (2004) Blue Ocean Strategy. MassachuseUs: Harvard Business Review Press.
#VCYacht. Dr. Rod King. [email protected] & hRp://businessmodels.ning.com & hRp://twiRer.com/RodKuhnKing
ITENN Level 4: BUS. PROBLEM SOLVING q 4 Elements of Good Strategy q Six Sigma Methodology q Theory of Constraints q Customer Dev. Stack q Lean Startup Method
Level 5: VALUE CHAIN STRATEGY q Value Chain (Analysis) q 5 Forces; Env. Analysis q 3 Generic Strategies q DisrupGve InnovaGon Theory q Blue Ocean Strategy/Canvas
Level 1: PROBLEM DISCOVERY q Voice of the Customer; NPS q Trade-‐offs; SWOT Analysis q Red Ocean Strategy Canvas q 4 Problem Archetypes; BUMP q Product/Market Matrix
Level 7: BUS. MODEL EXECUTION q HolisGc System Resources q Core Competences q Resource-‐Based View q Balanced Scorecard; Kanban q Prototype/Pilot/Full Scale
Level 8: ECOSYSTEM EVOLUTION q 9 Windows (MulGscreen) q Business Model Dashboard q Nested S-‐Curve; WarGaming q Value Network EvoluGon q EvoluGon of Shared Value
Level 2: PROBLEM ANALYSIS q 5 Whys; AnalyGcal Hierarchy q Root-‐cause Analysis: Fishbone q SIPOC Process; Pre-‐mortem q Universal System Structure q FuncGonal Analysis Diagram
THE VALUE CHAIN YACHT o Uses; Areas of Applica<on o Associated Concepts/Tools o Taxonomy of Tools for
Problem Finding & Solving
Level 3: IDEA GEN./EVALUATION q (Visual) Brainstorming q E.R.I.C. TacGcs (“4 Ac<ons”) q SCAMPERR Technique; ASIT q TRIZ: Ideal Final Result (IFR) q Mission/Vision; Pretotype
Level 6: BUS. MODEL STRATEGY q Value Net; Lean Canvas q Business Model Canvas/Env. q Business Model Storyboard q “SPARC” Yacht/Framework q PESTLIED Events & Trends
#VCYacht. Dr. Rod King. [email protected] & hRp://businessmodels.ning.com & hRp://twiRer.com/RodKuhnKing
8 LEVELS AND USES OF THE VALUE CHAIN YACHT (Taxonomy of Problem-‐Based Strategy & Learning) Discover and Solve Customer Problems BeDer, Faster, and Cheaper
Problem-‐Based Strategy and Learning (PBSL) Roadmap Select/Reflect on a Path or Program for Customer Problem Discovery and Solving
BUSINESS MODEL HIERARCHY (Unit of Analysis/ReDesign) LEVEL OF PBSL (Deliverable)
Supersystem (Economy; Macro-‐environment)
Environment (Industry; Market)
System (Enterprise/Value Chain; Product/Service)
Visionary/Conceptual Problem Solving (Pretotype)
1. PROBLEM DISCOVERY
2. PROBLEM ANALYSIS
3. IDEA GENERATION/EVALUATION
Strategic Problem Solving (Prototype; Pilot)
4. BUSINESS PROBLEM SOLVING
5. VALUE CHAIN STRATEGY
6. BUSINESS MODEL STRATEGY
Tac<cal/ Opera<onal Problem Solving (Full-‐scale)
7. BUSINESS MODEL EXECUTION
Scenario Thinking
8. ECOSYSTEM EVOLUTION
#VCYacht. Dr. Rod King. [email protected] & hRp://businessmodels.ning.com & hRp://twiRer.com/RodKuhnKing
4 Problem Archetypes Product/Market Matrix
#VCYacht. Dr. Rod King. [email protected] & hRp://businessmodels.ning.com & hRp://twiRer.com/RodKuhnKing
PROBLEM (Market Trade-‐off/Size)
SOLUTION (Product Features)
Known Unknown
Known Simple System (Tame; Closed; Well-‐structured)
Complex System
Unknown Complicated System ChaoGc System (Wicked; Open; Ill-‐structured)
The TheoreGcal Framework of
The Value Chain Yacht Is
HolisGc Problem Solving (HPS) Which Encapsulates
Scien<fic Problem Solving HolisGc Problem Solving (HPS) has 3 Levels
q Visionary/Conceptual Problem Solving q Strategic Problem Solving q Tac<cal/Opera<onal Problem Solving
A Value Chain Yacht
Is A Diagram That Shows A Chain of AcGviGes
That an OrganizaGon Uses To Create, Deliver, and Share Value
The Value Chain Yacht Can Be Regarded As a
Means, Vehicle, Tool, or Holis<c System for Itera<vely Pursuing Any Mission, Vision,
Goal, ObjecGve, Strategy, and/or Target Especially Under CondiGons of
Great Uncertainty
The Working Space of a Value Chain Yacht Is
Divided Into 3 Sec<ons:
* Problem Space (“Red Ocean”): Where currently are we?
* Method Space (“Vehicle”; Strategy):
How must we get there?
* SoluGon Space (“Blue Ocean”): Where must we go?
RED OCE
AN BLU
E OCEAN
SoluGon Gain: (Un)Known
Method
#VCYacht. Dr. Rod King. [email protected] & hRp://businessmodels.ning.com & hRp://twiRer.com/RodKuhnKing
Where currently are we? Where must we
go?
How must we get there?
Problem Pain: (Un)Known
Industry/Market/Customer Goal (Job To Get Done): Improve innova<on and performance of organiza<on
RED OCE
AN BLU
E OCEAN
SoluGon Gain: (Un)Known
Method
#VCYacht. Dr. Rod King. [email protected] & hRp://businessmodels.ning.com & hRp://twiRer.com/RodKuhnKing
Industry/Market/Customer Goal (Job To Get Done): Improve innova<on and performance of organiza<on
CURRENT INNOVATION/PERFORMANCE FUTURE INNOVATION/PERFORMANCE
Where currently are we? Where must we
go?
How must we get there?
Problem Pain: (Un)Known
RED OCE
AN BLU
E OCEAN
SoluGon Gain: (Un)Known
#VCYacht. Dr. Rod King. [email protected] & hRp://businessmodels.ning.com & hRp://twiRer.com/RodKuhnKing
Industry/Market/Customer Goal (Job To Get Done): Improve innova<on and performance of organiza<on
Where currently are we? Where must we
go?
Problem Pain: (Un)Known
Method CURRENT INNOVATION/PERFORMANCE FUTURE INNOVATION/PERFORMANCE
RED OCE
AN BLU
E OCEAN
SoluGon Gain: (Un)Known
C$ R$
P$
VP + -‐
#VCYacht. Dr. Rod King. [email protected] & hRp://businessmodels.ning.com & hRp://twiRer.com/RodKuhnKing
Industry/Market/Customer Goal (Job To Get Done): Improve innova<on and performance of organiza<on
Where currently are we? Where must we
go?
Problem Pain: (Un)Known
CURRENT INNOVATION/PERFORMANCE FUTURE INNOVATION/PERFORMANCE
#VCYacht. Dr. Rod King. [email protected] & hRp://businessmodels.ning.com & hRp://twiRer.com/RodKuhnKing
Industry/Market/Customer Goal (Job To Get Done): Improve innova<on and performance of organiza<on
RED OCE
AN BLU
E OCEAN
SoluGon Gain: (Un)Known
C$ R$
P$
VP + -‐
CURRENT INNOVATION/PERFORMANCE FUTURE INNOVATION/PERFORMANCE
Where currently are we? Where must we
go?
Problem Pain: (Un)Known
#VCYacht. Dr. Rod King. [email protected] & hRp://businessmodels.ning.com & hRp://twiRer.com/RodKuhnKing
Industry/Market/Customer Goal (Job To Get Done): Improve innova<on and performance of organiza<on
Problem Pain: (Un)Known
RED OCE
AN BLU
E OCEAN
SoluGon Gain: (Un)Known
C$ R$
P$
VP + -‐
CURRENT INNOVATION/PERFORMANCE FUTURE INNOVATION/PERFORMANCE
#VCYacht. Dr. Rod King. [email protected] & hRp://businessmodels.ning.com & hRp://twiRer.com/RodKuhnKing
Industry/Market/Customer Goal (Job To Get Done): Improve innova<on and performance of organiza<on
Problem Pain: (Un)Known
RED OCE
AN BLU
E OCEAN
SoluGon Gain: (Un)Known
C$ R$
P$
VP + -‐
Lack of shared purpose, mission, and vision
Emphasis on technical features of products rather than customer experiences
Thinking in “silos”
No common language or framework for facilitaXng innovaXon
UnarXculated values/culture
Unclear Business Model/Strategy
CURRENT INNOVATION/PERFORMANCE FUTURE INNOVATION/PERFORMANCE
#QBE. Dr. Rod King. [email protected] & hRp://businessmodels.ning.com & hRp://twiRer.com/RodKuhnKing
PROFIT (MARGIN)
COST (STRUCTURE)
REVENUE (STREAMS)
Problem Pain: (Un)Known
RED OCE
AN BLU
E OCEAN
SoluGon Gain: (Un)Known
Services
Outbound LogisGcs
OperaGons
Inbound LogisGcs
Procurement
Technology Dev.
HR Mngt.
Firm Infra.
Value Engine
(Proposi<on/Strategy)
MarkeGng & Sales
Industry/Market/Customer Goal (Job To Get Done): Improve innova<on and performance of organiza<on
Lack of shared purpose, mission, and vision
Emphasis on technical features of products rather than customer experiences
Thinking in “silos”
No common language or framework for facilitaXng innovaXon
UnarXculated values/culture
Unclear Business Model/Strategy
CURRENT INNOVATION/PERFORMANCE FUTURE INNOVATION/PERFORMANCE
A Value System Yacht Shows
An Extended Value Chain From Suppliers
Through the Value Chain Yacht To Customers
#QBE. Dr. Rod King. [email protected] & hRp://businessmodels.ning.com & hRp://twiRer.com/RodKuhnKing
Industry/Market/Customer Goal (Job To Get Done): ……………………………………………….………………………….
PROFIT (MARGIN)
COST (STRUCTURE)
REVENUE (STREAMS)
Problem Pain: (Un)Known
RED OCE
AN BLU
E OCEAN
SoluGon Gain: (Un)Known
Services
Outbound LogisGcs
OperaGons
Inbound LogisGcs
Procurement
Technology Dev.
HR Mngt.
Firm Infra.
Value Engine
(Proposi<on/Strategy)
MarkeGng & Sales
Suppliers (Co-‐creators)
Customers
#QBE. Dr. Rod King. [email protected] & hRp://businessmodels.ning.com & hRp://twiRer.com/RodKuhnKing
Industry/Market/Customer Goal (Job To Get Done): ……………………………………………….………………………….
PROFIT (MARGIN)
COST (STRUCTURE)
REVENUE (STREAMS)
Problem Pain: (Un)Known
RED OCE
AN BLU
E OCEAN
SoluGon Gain: (Un)Known
Services
Outbound LogisGcs
OperaGons
Inbound LogisGcs
Procurement
Technology Dev.
HR Mngt.
Firm Infra.
Value Engine
(Proposi<on/Strategy)
MarkeGng & Sales
Suppliers (Co-‐creators)
Customers
New Entrants (Startups)
Subs<-‐tutes
(Incumbents)
#QBE. Dr. Rod King. [email protected] & hRp://businessmodels.ning.com & hRp://twiRer.com/RodKuhnKing
Industry/Market/Customer Goal (Job To Get Done): ……………………………………………….………………………….
PROFIT (MARGIN)
COST (STRUCTURE)
REVENUE (STREAMS)
Problem Pain: (Un)Known
RED OCE
AN BLU
E OCEAN
SoluGon Gain: (Un)Known
Services
Outbound LogisGcs
OperaGons
Inbound LogisGcs
MarkeGng & Sales
Procurement
Technology Dev.
HR Mngt.
Firm Infra.
Value Engine
(Proposi<on/Strategy)
New Entrants (Startups)
Subs<-‐tutes
(Incumbents)
q Provide customer support/repairs
q Fulfill orders q Deliver product/service q Use channels (offline/online)
q Process/transform inputs (materials/info) q Develop product/service/business model q Discover/solve customer and business problems
q Receive inputs (materials/info) q Warehouse or store inputs (materials/info) q Manage/control inventory
q Purchase inputs (materials/ info)
q Conduct R & D
q Develop innovaXve/ disrupXve technology
q Experiment with business model innovaXon
q Recruit/ Develop/ Pay Staff
q Manage business
q Acquire/ Rent infra’
q Engage/Acquire/Retain Customers
q Brand/AdverXse/Sell
Suppliers (Co-‐creators)
Customers
“Bad” vs. “Good” Value System Yacht
All Failures In Business and Life Are the Results
Of Using “Bad” Value System Yachts
All Successes In Business and Life Are the Results
Of Using “Good” Value System Yachts
“It’s more fun to be a pirate than to join the navy."
Problem Pain: (Un)Known
RED OCE
AN BLU
E OCEAN
SoluGon Gain: (Un)Known