the business model tree: 3 simple ways to visualize a business model & have "richer"...
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BUSINESS MODEL
Customer Growth Engine: delivers value
Enterprise Engine: creates value
Value Engine: captures/shares value
World-‐class Coaching on Lean Startup & Customer Growth Hacking for Less Than $10/Month: h<p://businessmodels.ning.com Business Strategy Coach. Dr. Rod King. [email protected] & hLp://businessmodels.ning.com & hLp://twiLer.com/RodKuhnKing
q Customer Segment (CS) q Channels/RelaRonships (CHR) q Product/Service (PS)
q Value ProposiRon (VP) q Key Resources (KR); Key AcRviRes (KA) q Key Partners/Inputs (KP)
q Delight (+) –> Revenue/Streams (R$) q Pain (-‐) –> Cost/Structure (C$) q Value (+/-‐) –> Profit (P$); Strategy
Business Model Tree “Business Model” describes the way a business sustainably makes money
BUSINESS MODEL
Customer Growth Engine: delivers value
Enterprise Engine: creates value
Value Engine: captures/shares value
World-‐class Coaching on Lean Startup & Customer Growth Hacking for Less Than $10/Month: h<p://businessmodels.ning.com Business Strategy Coach. Dr. Rod King. [email protected] & hLp://businessmodels.ning.com & hLp://twiLer.com/RodKuhnKing
q Customer Segment (CS) q Channels/RelaRonships (CHR) q Product/Service (PS)
q Value ProposiRon (VP) q Key Resources (KR); Key AcRviRes (KA) q Key Partners/Inputs (KP)
q Delight (+) –> Revenue/Streams (R$) q Pain (-‐) –> Cost/Structure (C$) q Value (+/-‐) –> Profit (P$); Strategy
Business Model Tree “Business Model” describes the way a business sustainably makes money
BUSINESS MODEL
Customer Growth Engine: delivers value
Enterprise Engine: creates value
Value Engine: captures/shares value
World-‐class Coaching on Lean Startup & Customer Growth Hacking for Less Than $10/Month: h<p://businessmodels.ning.com Business Strategy Coach. Dr. Rod King. [email protected] & hLp://businessmodels.ning.com & hLp://twiLer.com/RodKuhnKing
q Customer Segment (CS) q Channels/RelaRonships (CHR) q Product/Service (PS)
q Value ProposiRon (VP) q Key Resources (KR); Key AcRviRes (KA) q Key Partners/Inputs (KP)
S: Supplier
C: Customer
q Delight (+) –> Revenue/Streams (R$) q Pain (-‐) –> Cost/Structure (C$) q Value (+/-‐) –> Profit (P$); Strategy
Product/Service
Payment
Business Model Tree “Business Model” describes the way a business sustainably makes money
BUSINESS MODEL
Customer Growth Engine: delivers value
Enterprise Engine: creates value
Value Engine: captures/shares value
World-‐class Coaching on Lean Startup & Customer Growth Hacking for Less Than $10/Month: h<p://businessmodels.ning.com Business Strategy Coach. Dr. Rod King. [email protected] & hLp://businessmodels.ning.com & hLp://twiLer.com/RodKuhnKing
q Customer Segment (CS) q Channels/RelaRonships (CHR) q Product/Service (PS)
q Value ProposiRon (VP) q Key Resources (KR); Key AcRviRes (KA) q Key Partners/Inputs (KP)
S: Supplier
C: Customer
q Delight (+) –> Revenue/Streams (R$) q Pain (-‐) –> Cost/Structure (C$) q Value (+/-‐) –> Profit (P$); Strategy
Product/Service
Payment
Big Urgent Market Problem (BUMP)
Job To Get Done (JTGD); Habit
Business Model Tree “Business Model” describes the way a business sustainably makes money
BUSINESS MODEL
Customer Growth Engine: delivers value
Enterprise Engine: creates value
Value Engine: captures/shares value
World-‐class Coaching on Lean Startup & Customer Growth Hacking for Less Than $10/Month: h<p://businessmodels.ning.com Business Strategy Coach. Dr. Rod King. [email protected] & hLp://businessmodels.ning.com & hLp://twiLer.com/RodKuhnKing
q Customer Segment (CS) q Channels/RelaRonships (CHR) q Product/Service (PS)
q Value ProposiRon (VP) q Key Resources (KR); Key AcRviRes (KA) q Key Partners/Inputs (KP)
S: Supplier
C: Customer
q Delight (+) –> Revenue/Streams (R$) q Pain (-‐) –> Cost/Structure (C$) q Value (+/-‐) –> Profit (P$); Strategy
Acquisi=on
Revenue
Business Model AnalyMcs Roadmap “Business Model” describes the way a business sustainably makes profit
Big Urgent Market Problem (BUMP)
Job To Get Done (JTGD); Habit
Engagement (Awareness)
Referral Reten=on
Ac=va=on
World-‐class Coaching on Lean Startup & Customer Growth Hacking for Less Than $10/Month: h<p://businessmodels.ning.com Business Strategy Coach. Dr. Rod King. [email protected] & hLp://businessmodels.ning.com & hLp://twiLer.com/RodKuhnKing
4 Steps for CreaRng A Minimum Viable Business Model
Step 1: Observe & Think
(Customer)
Step 2: Hypothesize (Product)
Step 3: Experiment
(Product; Channel)
Step 4: Experiment (Pricing)
Job To Get Done (JTGD); Customer Persona; Habits;
Trade-‐offs; Problems
Minimum Viable Product (MVP) Hypotheses;
AnR-‐/Analogs; Solu=ons
Minimum Viable Product (MVP) TesRng; Channel; Problem-‐Solu=on Fitness
Minimum Viable Business Model (MVBM); Product-‐Market Fitness
S: Supplier
C: Customer
Product/Service
Payment
S: Supplier
C: Customer
S: Supplier
C: Customer
Product/Service (MVP)
Feedback
S: Supplier
C: Customer
Product/Service (MVP)
Payment ($)
Product/Service (MVP)
Unpredictable Environment
Predictable Environment
O.T.H.E.R. Loop
ORGANIZATION Low Uncertainty/ Risk
Extreme Uncertainty/ Risk
Problem-‐Solu=on Fit
Business Model Fit/ Scaling
Product-‐Market Fit
STARTUP (Minimum Viable Product: MVP)
COMPANY (Maximum Awesome Product: MAP)
TransiMon
Complex Business Model
ChaoMc Business Model
Stable Business Model
Simple Business Model
Hypothesize & Experiment (Lean Startup/Effectua=on Project)
Plan & Execute (Six Sigma/Planning Project)
World-‐class Coaching on Lean Startup & Customer Growth Hacking for Less Than $10/Month: h<p://businessmodels.ning.com Business Strategy Coach. Dr. Rod King. [email protected] & hLp://businessmodels.ning.com & hLp://twiLer.com/RodKuhnKing
Novel Problems Con=nuous Innova;on Culture/Habit
RouRne Problems Con=nuous Improvement Culture/Habit
Business Model Lifecycle Business Model Lifecycle
Every Living Organiza=on (Business Model) has a Dynamic Mix of Novel and Rou=ne Problems
Business Model Lifecycle Business Model Lifecycle
Every Living Organiza=on (Business Model) has a Dynamic Mix of Novel and Rou=ne Problems
EMERGENT BUSINESS MODEL:
Minimum Viable
Business Model
DELIBERATE BUSINESS MODEL:
Maximum Awesome
Business Model
Unpredictable Environment
Predictable Environment
O.T.H.E.R. Loop
ORGANIZATION Low Uncertainty/ Risk
Extreme Uncertainty/ Risk
Problem-‐Solu=on Fit
Business Model Fit/ Scaling
Product-‐Market Fit
TransiMon
Complex Business Model
ChaoMc Business Model
Stable Business Model
Simple Business Model
Hypothesize & Experiment (Lean Startup/Effectua=on Project)
Plan & Execute (Six Sigma/Planning Project)
World-‐class Coaching on Lean Startup & Customer Growth Hacking for Less Than $10/Month: h<p://businessmodels.ning.com Business Strategy Coach. Dr. Rod King. [email protected] & hLp://businessmodels.ning.com & hLp://twiLer.com/RodKuhnKing
Novel Problems Con=nuous Innova;on Culture/Habit
RouRne Problems Con=nuous Improvement Culture/Habit
Business Strategy Lifecycle Environment-‐Strategy-‐Product (ESP) Fitness, Archetypal Strategies, and ImplementaMon
Choose the Right Environment (Geography; Market; Industry). Use the Right Strategy. Launch the Right Project.
World-‐class Coaching on Lean Startup & Customer Growth Hacking for Less Than $10/Month: h<p://businessmodels.ning.com Business Strategy Coach. Dr. Rod King. [email protected] & hLp://businessmodels.ning.com & hLp://twiLer.com/RodKuhnKing
Unpredictable Environment
Predictable Environment ORGANIZATION
Low Uncertainty/ Risk
Extreme Uncertainty/ Risk
Problem-‐Solu=on Fit
Business Model Fit/ Scaling
Product-‐Market Fit
Shaping Strategy
AdapMve Strategy
Visionary Strategy
Classic Strategy
RenewalStrategy
O.T.H.E.R. Loop
Hypothesize & Experiment (Lean Startup/Effectua=on Project)
Plan & Execute (Six Sigma/Planning Project)
Novel Problems Con=nuous Innova;on Culture/Habit
RouRne Problems Con=nuous Improvement Culture/Habit
EMERGENT BUSINESS MODEL:
Minimum Viable
Business Model
DELIBERATE BUSINESS MODEL:
Maximum Awesome
Business Model