the living system dashboard and business model pathology
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#4ROD. Dr. Rod King. rodkuhnhking@gmail.com & h8p://businessmodels.ning.com & h8p://twi8er.com/RodKuhnKing
Business Model Canvas (Scorecard for Managing Extended Enterprise)
Blue Ocean Strategy (Strategy Canvas)
Agile (Product) Development
Customer Development
Living System Dashboard: Fragmented vs. Holis:c Problem Solving
Tools for Learning How to Rapidly Discover Customer Problems and Share Awesome Customer Experiences
Business Plan (Strategic/Financial)
Lean Startup (Process/ Execu:on)
0
2
4
6
8
10
12
Cost Learning Time
Ideal Tool
Business (Waterfall) Plan
Lean Startup Method
Business Model Canvas
BUSINESS MODEL PATHOLOGY
“Maximum Learning at Minimum Cost in No Time”
#4ROD. Dr. Rod King. rodkuhnhking@gmail.com & h8p://businessmodels.ning.com & h8p://twi8er.com/RodKuhnKing
(Highest)
Cost-‐Learning-‐Time (CLT) Canvas for Crea:ng a Scalable Business
What is Business Model Pathology?
BUSINESS MODEL PATHOLOGY Is a Branch of
BUSINESS MODEL CYBERNETICS That Focuses on HolisHcally
Studying and Developing Models That Explain the Trade-‐offs of
HIGH MORTALITY RATE (HMR) STARTUPS And Other LIVING SYSTEMS
Why Business Model Pathology?
BUSINESS MODEL PATHOLOGY Is Essen:al for The Diagnosis, Early DetecYon,
PrevenYon, and EliminaYon of Undesirable Trade-‐offs of
HIGH MORTALITY RATE (HMR) STARTUPS And Other LIVING SYSTEMS
#4ROD. Dr. Rod King. rodkuhnhking@gmail.com & h8p://businessmodels.ning.com & h8p://twi8er.com/RodKuhnKing
BUSINESS MODEL PATHOLOGY
3 Categories of Experience for a Living System
LIVING SYSTEM
Supersystem Experience
Environment Experience
System Experience
#4ROD. Dr. Rod King. rodkuhnhking@gmail.com & h8p://businessmodels.ning.com & h8p://twi8er.com/RodKuhnKing
BUSINESS MODEL PATHOLOGY
LIVING SYSTEM
Supersystem Experience
Region/Gov./NGOs
Influencers/ Media
Non-‐Customers (Prospects)
PESTLIED Events/Trends
Environment Experience
Suppliers
Channels/ Rela:onships
(In)Direct Compe:tors
New Entrants (Startups)
Customers
System Experience
Input
Processor
Output
Feedback
3 Categories of Experience for a Living System
#4ROD. Dr. Rod King. rodkuhnhking@gmail.com & h8p://businessmodels.ning.com & h8p://twi8er.com/RodKuhnKing
BUSINESS MODEL PATHOLOGY
Tree Diagram (“Mind Map”) for Living System Dashboard
LIVING SYSTEM
Supersystem (Entropy)
Region/Gov./NGOs
Influencers/ Media
Non-‐Customers (Trade-‐off:+/-‐)
PESTLIED Events/Trends
Environment (InnovaHon: S-‐Curve)
Suppliers
Channels/ Rela:onships
(In)Direct Compe:tors
New Entrants (Startups)
Customers (Trade-‐off:+/-‐)
System (Jobs To Get Done)
Input
Processor (Tool/Org.)
Output (Trade-‐off:+/-‐)
Feedback (Strategy)
q Past q Present q Future EXPERIENCE
A Living System Dashboard (CyberneYc Model)
Illustrates The Logic of
How Every Living System or OrganizaYon
Emerges, Survives, and Prospers
A Living System Dashboard Focuses on
3 Categories of Organiza:onal Experience:
Supersystem Experience, Environment Experience, and
System Experience
The 3 Components of Each OrganizaYonal Experience
Are:
Happiness, Loyalty, and
Profitability (Cost EffecYveness)
#4ROD. Dr. Rod King. rodkuhnhking@gmail.com & h8p://businessmodels.ning.com & h8p://twi8er.com/RodKuhnKing
BUSINESS MODEL PATHOLOGY
Tree Diagram (“Mind Map”) for Living System Dashboard
LIVING SYSTEM
Supersystem Experience
Region/Gov./NGOs
Influencers/ Media
Non-‐Customers (Prospects)
PESTLIED Events/Trends
Environment Experience
Suppliers
Channels/ Rela:onships
(In)Direct Compe:tors
New Entrants (Startups)
Customers
System Experience
Input
Processor
Output
Feedback
“Fake XP
”/
Build
Learn
Test XP/
Measure
q Past q Present q Future EXPERIENCE
#4ROD. Dr. Rod King. rodkuhnhking@gmail.com & h8p://businessmodels.ning.com & h8p://twi8er.com/RodKuhnKing
BUSINESS MODEL PATHOLOGY
Tree Diagram (“Mind Map”) for Living System Dashboard
LIVING SYSTEM
Supersystem Experience
Region/Gov./NGOs
Influencers/ Media
Non-‐Customers (Prospects)
PESTLIED Events/Trends
Environment Experience
Suppliers
Channels/ Rela:onships
(In)Direct Compe:tors
New Entrants (Startups)
Customers
System Experience
Input
Processor
Output
Feedback
“Fake XP
”/
Build
Learn
Test XP/
Measure
q Past q Present q Future EXPERIENCE
#4ROD. Dr. Rod King. rodkuhnhking@gmail.com & h8p://businessmodels.ning.com & h8p://twi8er.com/RodKuhnKing
BUSINESS MODEL PATHOLOGY
Tree Diagram (“Mind Map”) for Living System Dashboard
LIVING SYSTEM
Supersystem Experience
Region/Gov./NGOs
Influencers/ Media
Non-‐Customers (Prospects)
PESTLIED Events/Trends
Environment Experience
Suppliers
Channels/ Rela:onships
(In)Direct Compe:tors
New Entrants (Startups)
Customers
System Experience
Input
Processor
Output
Feedback
“Fake XP
”/
Build
Learn
Test XP/
Measure
Structuralist (CompeHHve Advantage)
ReconstrucHonist (Blue Ocean)
q Past q Present q Future EXPERIENCE
#4ROD. Dr. Rod King. rodkuhnhking@gmail.com & h8p://businessmodels.ning.com & h8p://twi8er.com/RodKuhnKing
BUSINESS MODEL PATHOLOGY
Tree Diagram (“Mind Map”) for Living System Dashboard
LIVING SYSTEM
Supersystem Experience
Region/Gov./NGOs
Influencers/ Media
Non-‐Customers (Prospects)
PESTLIED Events/Trends
Environment Experience
Suppliers
Channels/ Rela:onships
(In)Direct Compe:tors
New Entrants (Startups)
Customers
System Experience
Input
Processor
Output
Feedback
q Past q Present q Future EXPERIENCE
KP
KA
KR
R$ C$
CR
CS
CH
VP
Structuralist (CompeHHve Advantage)
ReconstrucHonist (Blue Ocean)
#4ROD. Dr. Rod King. rodkuhnhking@gmail.com & h8p://businessmodels.ning.com & h8p://twi8er.com/RodKuhnKing
BUSINESS MODEL PATHOLOGY
LIVING SYSTEM for: RED OCEAN
Supersystem Experience
Region/Gov./NGOs
Influencers/ Media
Non-‐Customers (Prospects)
PESTLIED Events/Trends
Environment Experience
Suppliers
Channels/ Rela:onships
(In)Direct Compe:tors
New Entrants (Startups)
Customers
System Experience
Input
Processor
Output
Feedback
q Past ü Present q Future EXPERIENCE
KP
KA
KR
R$ C$ CS VP
Structuralist (CompeHHve Advantage)
ReconstrucHonist (Blue Ocean)
First, Understand Red Ocean Trade-‐off Experiences. Then, Disrupt Them.
CR CH
#4ROD. Dr. Rod King. rodkuhnhking@gmail.com & h8p://businessmodels.ning.com & h8p://twi8er.com/RodKuhnKing
BUSINESS MODEL PATHOLOGY
LIVING SYSTEM for: BLUE OCEAN
Supersystem Experience
Region/Gov./NGOs
Influencers/ Media
Non-‐Customers (Prospects)
PESTLIED Events/Trends
Environment Experience
Suppliers
Channels/ Rela:onships
(In)Direct Compe:tors
New Entrants (Startups)
Customers
System Experience
Input
Processor
Output
Feedback
q Past q Present ü Future EXPERIENCE
KP
KA
KR
R$ C$ CS VP
Structuralist (CompeHHve Advantage)
ReconstrucHonist (Blue Ocean)
First, Understand Red Ocean Trade-‐off Experiences. Then, Disrupt Them.
CR CH
Legend The following topics, which describe elements of a business model on slides 17 to 19 are obtained from the book, “Business Model Genera:on” by Alexander Osterwalder and Yves Pigneur.
q Key Partners (KP)
q Key Resources (KR)
q Key Ac:vi:es (KA)
q Value Proposi:on (VP)
q Channels (CH)/Customer Rela:onships (CR)
q Customer Segments (CS)
q Cost Structure (C$)
q Revenue Streams (R$)
The above topics are also visually presented on the Business Model Canvas which can be obtained here: hfp://www.businessmodelgenera:on.com/downloads/business_model_canvas_poster.pdf
PESTLIED is an acronym for Poli:cal; Economic; Social; Technological; Legal; Interna:onal; Environmental; Demographic
#4ROD. Dr. Rod King. rodkuhnhking@gmail.com & h8p://businessmodels.ning.com & h8p://twi8er.com/RodKuhnKing
BUSINESS MODEL PATHOLOGY
Living System (Cyberne:c Model)
ENVIRONMENT
SYSTEM
Nested Diagram for Living System Dashboard
SUPERSYSTEM
#4ROD. Dr. Rod King. rodkuhnhking@gmail.com & h8p://businessmodels.ning.com & h8p://twi8er.com/RodKuhnKing
BUSINESS MODEL PATHOLOGY
Dead System Model
ENVIRONMENT (AWFUL FINAL RESULT/VISION/GOAL/FAILURE CRITERIA)
Visually Model Hierarchy of Causes for the High Mortality Rate of Business
SUPERSYSTEM
SYSTEM (Chain & Hierarchy of Jobs To Get Done)
#4ROD. Dr. Rod King. rodkuhnhking@gmail.com & h8p://businessmodels.ning.com & h8p://twi8er.com/RodKuhnKing
ENVIRONMENT
PROCESSOR (Tool/Org.;
Func:onality)
INPUT (Ideas/
Resources)
OUTPUT (Trade-‐off/ Experience)
BUSINESS MODEL PATHOLOGY
(AWFUL FINAL RESULT/VISION/GOAL/FAILURE CRITERIA)
SUPERSYSTEM Visually Model Hierarchy of Causes for the High Mortality Rate of Business
SYSTEM (Chain & Hierarchy of Jobs To Get Done)
Dead System Model
#4ROD. Dr. Rod King. rodkuhnhking@gmail.com & h8p://businessmodels.ning.com & h8p://twi8er.com/RodKuhnKing
ENVIRONMENT
INPUT (Ideas/
Resources)
Feedback(Strategy/TacHcs)
OUTPUT (Trade-‐off/ Experience)
+ -‐
PROCESSOR (Tool/Org.;
Func:onality)
BUSINESS MODEL PATHOLOGY
(AWFUL FINAL RESULT/VISION/GOAL/FAILURE CRITERIA)
SUPERSYSTEM Visually Model Hierarchy of Causes for the High Mortality Rate of Business
SYSTEM (Chain & Hierarchy of Jobs To Get Done)
Dead System Model
#4ROD. Dr. Rod King. rodkuhnhking@gmail.com & h8p://businessmodels.ning.com & h8p://twi8er.com/RodKuhnKing
ENVIRONMENT
“Fake XP”/Build Test XP/Measure
INPUT (Ideas/
Resources)
Learn (Strategy/TacHcs)
OUTPUT (Trade-‐off/ Experience)
+ -‐
PROCESSOR (Tool/Org.;
Func:onality)
BUSINESS MODEL PATHOLOGY
(AWFUL FINAL RESULT/VISION/GOAL/FAILURE CRITERIA)
SUPERSYSTEM Visually Model Hierarchy of Causes for the High Mortality Rate of Business
SYSTEM (Chain & Hierarchy of Jobs To Get Done)
Dead System Model
#4ROD. Dr. Rod King. rodkuhnhking@gmail.com & h8p://businessmodels.ning.com & h8p://twi8er.com/RodKuhnKing
ENVIRONMENT
INPUT (Ideas/
Resources)
Learn (Strategy/TacHcs)
OUTPUT (Trade-‐off/ Experience)
+ -‐
CUSTOMER
S
SUPP
LIER
S
(IN)DIRECT COMPETITORS (Subs:tutes/Complements)
NEW ENTRANTS (Startups)
PROCESSOR (Tool/Org.;
Func:onality)
BUSINESS MODEL PATHOLOGY
(AWFUL FINAL RESULT/VISION/GOAL/FAILURE CRITERIA)
SUPERSYSTEM Visually Model Hierarchy of Causes for the High Mortality Rate of Business
SYSTEM (Chain & Hierarchy of Jobs To Get Done)
Dead System Model
“Fake XP”/Build Test XP/Measure
#4ROD. Dr. Rod King. rodkuhnhking@gmail.com & h8p://businessmodels.ning.com & h8p://twi8er.com/RodKuhnKing
ENVIRONMENT
INPUT
Learn (Strategy/TacHcs)
OUTPUT
+ -‐
CUSTOMER
S
SUPP
LIER
S
(IN)DIRECT COMPETITORS (Subs:tutes/Complements)
NEW ENTRANTS (Startups)
PROCESSOR
BUSINESS MODEL PATHOLOGY
(AWFUL FINAL RESULT/VISION/GOAL/FAILURE CRITERIA)
KP
VP KA KR
CS R$ C$
CH
CR
SUPERSYSTEM Visually Model Hierarchy of Causes for the High Mortality Rate of Business
SYSTEM (Chain & Hierarchy of Jobs To Get Done)
Dead System Model
“Fake XP”/Build Test XP/Measure
#4ROD. Dr. Rod King. rodkuhnhking@gmail.com & h8p://businessmodels.ning.com & h8p://twi8er.com/RodKuhnKing
ENVIRONMENT
INPUT
Learn (Strategy/TacHcs)
OUTPUT
+ -‐
CUSTOMER
S
SUPP
LIER
S
(IN)DIRECT COMPETITORS (Subs:tutes/Complements)
NEW ENTRANTS (Startups)
PROCESSOR
BUSINESS MODEL PATHOLOGY
(AWFUL FINAL RESULT/VISION/GOAL/FAILURE CRITERIA)
KP
VP KA KR
CS R$ C$
CH
CR
Visually Model Hierarchy of Causes for the High Mortality Rate of Business
SYSTEM (Chain & Hierarchy of Jobs To Get Done)
Dead System Model
“Fake XP”/Build Test XP/Measure
#4ROD. Dr. Rod King. rodkuhnhking@gmail.com & h8p://businessmodels.ning.com & h8p://twi8er.com/RodKuhnKing
ENVIRONMENT
INPUT
Learn (Strategy/TacHcs)
OUTPUT
+ -‐
CUSTOMER
S
SUPP
LIER
S
(IN)DIRECT COMPETITORS (Subs:tutes/Complements)
NEW ENTRANTS (Startups)
PROCESSOR
BUSINESS MODEL PATHOLOGY
(AWFUL FINAL RESULT/VISION/GOAL/FAILURE CRITERIA)
KP
VP KA KR
CS R$ C$
CH
CR
Visually Model Hierarchy of Causes for the High Mortality Rate of Business
SYSTEM (Chain & Hierarchy of Jobs To Get Done)
Dead System Model
“Fake XP”/Build Test XP/Measure
#4ROD. Dr. Rod King. rodkuhnhking@gmail.com & h8p://businessmodels.ning.com & h8p://twi8er.com/RodKuhnKing
ENVIRONMENT
INPUT
Learn (Strategy/TacHcs)
OUTPUT
+ -‐
CUSTOMER
S
SUPP
LIER
S
(IN)DIRECT COMPETITORS (Subs:tutes/Complements)
NEW ENTRANTS (Startups)
PROCESSOR
BUSINESS MODEL PATHOLOGY
(AWFUL FINAL RESULT/VISION/GOAL/FAILURE CRITERIA)
KP
VP KA KR
CS R$ C$
CH
CR
Visually Model Hierarchy of Causes for the High Mortality Rate of Business
SYSTEM (Chain & Hierarchy of Jobs To Get Done)
Dead System Model
“Fake XP”/Build Test XP/Measure
#4ROD. Dr. Rod King. rodkuhnhking@gmail.com & h8p://businessmodels.ning.com & h8p://twi8er.com/RodKuhnKing
ENVIRONMENT
INPUT
Learn (Strategy/TacHcs)
OUTPUT
+ -‐
CUSTOMER
S
SUPP
LIER
S
(IN)DIRECT COMPETITORS (Subs:tutes/Complements)
NEW ENTRANTS (Startups)
PROCESSOR
BUSINESS MODEL PATHOLOGY
(AWFUL FINAL RESULT/VISION/GOAL/FAILURE CRITERIA)
KP
VP KA KR
CS R$ C$
CH
CR
Visually Model Hierarchy of Causes for the High Mortality Rate of Business
SYSTEM (Chain & Hierarchy of Jobs To Get Done)
Dead System Model
“Fake XP”/Build Test XP/Measure
Axiom of Business Model CyberneYcs
CUSTOMER Hires (Chooses) OUTPUT (Product/Service) from PROCESSOR (Organiza:on/Tool) In Order to Achieve SYSTEM’S “Job To Get Done”
#4ROD. Dr. Rod King. rodkuhnhking@gmail.com & h8p://businessmodels.ning.com & h8p://twi8er.com/RodKuhnKing
ENVIRONMENT
INPUT
Learn (Strategy/TacHcs)
OUTPUT
+ -‐
CUSTOMER
S
SUPP
LIER
S
(IN)DIRECT COMPETITORS (Subs:tutes/Complements)
NEW ENTRANTS (Startups)
PROCESSOR
BLOCKBUSTER’S SYSTEM: Experience Entertainment at Home
BUSINESS MODEL PATHOLOGY for Blockbuster Video (1985-‐2014)
Blockbuster’s “Dead System”
(AWFUL FINAL RESULT/VISION/GOAL/FAILURE CRITERIA)
KP
VP KA KR
CS R$ C$
CH
CR
Blockbuster Video
Visually Model Hierarchy of Causes for the High Mortality Rate of Business
“Fake XP”/Build Test XP/Measure
#4ROD. Dr. Rod King. rodkuhnhking@gmail.com & h8p://businessmodels.ning.com & h8p://twi8er.com/RodKuhnKing
ENVIRONMENT
INPUT
Learn (Strategy/TacHcs)
OUTPUT
+ -‐
CUSTOMER
S
SUPP
LIER
S
(IN)DIRECT COMPETITORS (Subs:tutes/Complements)
NEW ENTRANTS (Startups)
PROCESSOR
BLACKBERRY’S SYSTEM: Tele-‐communicate 24x7
BUSINESS MODEL PATHOLOGY for Blackberry Phone
Blackberry’s “Dying System”
(AWFUL FINAL RESULT/VISION/GOAL/FAILURE CRITERIA)
KP
VP KA KR
CS R$ C$
CH
CR
Smartphone
Visually Model Hierarchy of Causes for the High Mortality Rate of Business
“Fake XP”/Build Test XP/Measure
Startups and Established Businesses Die
When They Fail to Discover and Solve BUMPs:
(Big Urgent Market Problems) As Well As
Fail to Deliver ACEs (Awesome Customer Experiences)
Business Model CyberneYcs Is About
Simply CreaYng, Delivering, and Sharing Awesome Customer Experiences
(ACEs)
#4ROD. Dr. Rod King. rodkuhnhking@gmail.com & h8p://businessmodels.ning.com & h8p://twi8er.com/RodKuhnKing
The Blind Men and the Elephant
A Poem by John Godfrey Saxe
I. IT was six men of Indostan To learning much inclined, Who went to see the Elephant (Though all of them were blind), That each by observaHon Might saHsfy his mind.
II. The First approached the Elephant, And happening to fall Against his broad and sturdy side, At once began to bawl: "God bless me!—but the Elephant Is very like a wall!”
III. The Second, feeling of the tusk, Cried:"Ho!—what have we here So very round and smooth and sharp? To me 't is mighty clear This wonder of an Elephant Is very like a spear!”
IV. The Third approached the animal, And happening to take The squirming trunk within his hands, Thus boldly up and spake: "I see," quoth he, "the Elephant Is very like a snake!"
V. The Fourth reached out his eager hand, And felt about the knee. "What most this wondrous beast is like Is mighty plain," quoth he; "'T is clear enough the Elephant Is very like a tree!"
VI. The Fi_h, who chanced to touch the ear, Said: "E'en the blindest man Can tell what this resembles most; Deny the fact who can, This marvel of an Elephant Is very like a fan!”
VII. The Sixth no sooner had begun About the beast to grope, Than, seizing on the swinging tail That fell within his scope, "I see," quoth he, "the Elephant Is very like a rope!"
VIII. And so these men of Indostan Disputed loud and long, Each in his own opinion Exceeding s:ff and strong, Though each was partly in the right, And all were in the wrong!
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