business models interlinked
Post on 31-Mar-2016
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Business Model Correlation AttheKaospilots,weworkwithmanydifferentthoughtsandmodelsinourfourdisciplines–CreativeBusiness,Project,ProcessandLeadershipDesign,andseveralofthesemodelscanbethoughtofasdirectlyinterlinked,eventhoughtheyaremadefromdifferentschemesofthoughtandbydifferentpeople.Bythinkingthesemodelsaspartofthesameframework,anddevelopingthemintandem,theycanfeedintoeachotherandenrichtheunderstandingofeachother.ThemodelsIwillexplainasinterlinkedinthispaperarebusiness/projectmodels:
• TheHedgehogconcept–JimCollins,GoodtoGreat• KaosPilotvariantofDeeHockSteppingStones–DeeHock/KaosPilot• TheBusinessModelCanvas‐AlexanderOsterwalder&YvesPigneur,
BusinessModelGeneration• TheBuyerUtilityMap–W.ChanKim,ReneeMauborgne,BlueOcean
Strategy• StrategyCanvas‐W.ChanKim,ReneeMauborgne,BlueOceanStrategy
Iwillnotgointoextensiveexplanationsofeachofthemodels,butexpectthereadertohaveknowledgeofthesemodels,oralternativelytodiveintothesourcestoreadthebasicfactsaboutthemodels.
The Hedgehog Concept TheJimCollinsconceptisbasedonthreeoverlappingcircles,whereyoucancreateyourbestinthecenterfieldwhereallthreecirclesoverlap.1)whatyouaredeeplypassionateabout2)whatyoucanbethebestintheworldat3)whatbestdrivesyoureconomicengine–whatpeoplewanttopayfor
The KaosPilot variant of Dee Hock Stepping Stones TheSteppingStonesbyDeeHockwasoriginallyconceivedasanorganizationaldevelopmentmodel,usediteratively.InspiredbyourworkwithDeeHock,theKaospilotlateraddedtwoother“stones”tothemodel:IdeaandNeed,andwearenowusingthemodelasthebasisforPreject,i.e.gettingallstakeholdersonthesamepagebeforeheadingintopraxisinaProject.
The Business Model Canvas TheBusinessModelCanvasisagreatframeworkforcreatingtheoverviewofthebusinessenginebehindabusinessidea.Itrequirestheusertothinkofboththevaluecreationpartandtheorganizationalandcoststructurepartofabusiness.
The Buyer Utility Map TheBuyerUtilityMapfromBlueOceanStrategywasoriginallypublishedinHarvardBusinessReviewinanarticletitled:“KnowingaWinningBusinessIdeaWhenYouSeeOne”.Themapisamatrixwith6distinctivestepsintheusersexperiencewiththeproduct/serviceonthehorizontalaxe:Purchase,Delivery,Use,Supplements,Maintenance,Disposal.And6UtilityLeversontheverticalaxe:CustomerProductivity,Simplicity,Convenience,Risk,FunandImage,EnvironmentalFriendliness.ThepointoftheUtilityMapisthatyou’llhavetobeabletoshowthatyouaredoingsomethingnew/differentfromthecompetitioninatleastoneofthefieldsinthematrixtoclaimyouhaveawinningbusinessidea.
Blue Ocean Strategy Canvas Agraphical“analysis”ofthewayyourcompetitorsandthemarketarefulfillingthecustomer’sneeds,andthewayyouare.Oftentocreateablueoceanisaboutreframingthequestions,andperceivingtheproduct/service/customerneedfromanewangle,i.e.whenyouaresellingshortdistanceflights,areyouthencompetingwithbusinessclassorareyoucompetingwithtrainandcartravel?
Correlation between models Themodelsandconceptsarecorrelating,sobydevelopingthemintandemandusingthemodelstoconsistencycheckingeachother,youwillgainadeeperunderstandingofyourbusinessconceptandamoreconsistentbasisforcommunicatinganddevelopingyourbusinessidea.StartingwiththeHedgehogConcept(HC),yourDreamsshouldfeeddirectlyintoyourIdeaintheSteppingStoneModel(SS).YouranalysisoftheNeedintheSSwillgiveyoutwoanswers:Whoneedsit,andthusWhatwilltheypayfor.TheWhatshouldbeconsistentwiththeeconomicdriversintheHC,TheWhoneedsitwillfeeddirectlyintotheCustomerSegmentintheBusinessModelCanvas(BMC)TheEconomicdriver/PayforintheHCwillfuelyourValuePropositionintheBMC,andalsofeedtheRevenueStreaminBMC.AndstayingwiththeHC,theBestatwillfeeddirectlyintotheKeyActivitiesandtheKeyResourcesintheBMC.AndthiswilllaterinyourworkwithBMChelpyoudefineyourKeyPartners,becausetheyaretheoneswhoshouldcoveralltheKeyActivities,thatarenecessaryforcreatingthebusiness,butyouandyourteamarenotdoing.
TakingitastepfurtheryoucanlookattherighthandsideoftheBMC,i.e.thevaluecreationpart.ThispartmustbeconsistentwithyourConceptintheSS.AndtheTeamintheSSmodelshallbeconsistentwith/giveyouinputtoyourdefinitionofKeyResourcesandKeyPartnersintheBMC.TheLefthandsideoftheBMC,i.e.theenginebehind,andcostoftheValueCreationwillfeedintotheStructureoftheSSmodel.
FinallyTheBuyerUtilityMap(BUM)willalsofeeddirectlyintoyourValuePropositioninyourBMC.ThefieldsintheBUMwhereyouroffersaredistinctlydifferentfromtherestofthemarket/competition,willbetheareasinyourBlueOceanStrategyCanvas(SC),whereyouareeitheroppositeofthecompetitionorwherethereisnocompetitionatallbecauseyouarelookingatthemarketandserviceinanewway,i.e.yourBlueOcean.
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