the living system dashboard and business model pathology

#4ROD. Dr. Rod King. [email protected] & 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”


(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

Business Model Pathology Uses

Just One Tool

Living System (LS) Dashboard



3 Categories of Experience for a Living System

LIVING SYSTEM

Supersystem Experience

Environment Experience

System Experience



LIVING SYSTEM


Region/Gov./NGOs

Influencers/ Media

Non-‐Customers (Prospects)

PESTLIED Events/Trends


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



Tree Diagram (“Mind Map”) for Living System Dashboard

LIVING SYSTEM

Supersystem (Entropy)

Region/Gov./NGOs

Influencers/ Media

Non-‐Customers (Trade-‐off:+/-‐)


Environment (InnovaHon: S-‐Curve)

Suppliers




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)

Tree Diagram (“Mind Map”) for

Living System Dashboard




LIVING SYSTEM


Region/Gov./NGOs

Influencers/ Media




Suppliers




Customers

System Experience

Input

Processor

Output

Feedback

“Fake XP

”/

Build

Learn

Test XP/

Measure





LIVING SYSTEM


Region/Gov./NGOs

Influencers/ Media




Suppliers




Customers

System Experience

Input

Processor

Output

Feedback

“Fake XP

”/

Build

Learn

Test XP/

Measure

Structuralist (CompeHHve Advantage)

ReconstrucHonist (Blue Ocean)





LIVING SYSTEM


Region/Gov./NGOs

Influencers/ Media




Suppliers




Customers

System Experience

Input

Processor

Output

Feedback


KP

KA

KR

R$ C$

CR

CS

CH

VP





LIVING SYSTEM for: RED OCEAN


Region/Gov./NGOs

Influencers/ Media




Suppliers




Customers

System Experience

Input

Processor

Output

Feedback

q  Past ü  Present q  Future EXPERIENCE

KP

KA

KR

R$ C$ CS VP



First, Understand Red Ocean Trade-‐off Experiences. Then, Disrupt Them.

CR CH



LIVING SYSTEM for: BLUE OCEAN


Region/Gov./NGOs

Influencers/ Media




Suppliers




Customers

System Experience

Input

Processor

Output

Feedback

q  Past q  Present ü  Future EXPERIENCE

KP

KA

KR

R$ C$ CS VP



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

The 3 Elements of BUSINESS EXPERIENCE

Are Happiness, Loyalty, and Profitability

Nested Diagram for

Living System Dashboard



Living System (Cyberne:c Model)

ENVIRONMENT

SYSTEM

Nested Diagram for Living System Dashboard

SUPERSYSTEM



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)


ENVIRONMENT

PROCESSOR (Tool/Org.;

Func:onality)

INPUT (Ideas/

Resources)

OUTPUT (Trade-‐off/ Experience)


(AWFUL FINAL RESULT/VISION/GOAL/FAILURE CRITERIA)

SUPERSYSTEM Visually Model Hierarchy of Causes for the High Mortality Rate of Business


Dead System Model


ENVIRONMENT

INPUT (Ideas/

Resources)

Feedback(Strategy/TacHcs)


+ -‐


Func:onality)





Dead System Model


ENVIRONMENT

“Fake XP”/Build Test XP/Measure

INPUT (Ideas/

Resources)

Learn (Strategy/TacHcs)


+ -‐


Func:onality)





Dead System Model


ENVIRONMENT

INPUT (Ideas/

Resources)



+ -‐

CUSTOMER

S

SUPP

LIER

S

(IN)DIRECT COMPETITORS (Subs:tutes/Complements)

NEW ENTRANTS (Startups)


Func:onality)





Dead System Model



ENVIRONMENT

INPUT


OUTPUT

+ -‐

CUSTOMER

S

SUPP

LIER

S



PROCESSOR



KP

VP KA KR

CS R$ C$

CH

CR



Dead System Model


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”

Examples (“Autopsies”)

1-‐Minute Business Failure Analysis


ENVIRONMENT

INPUT


OUTPUT

+ -‐

CUSTOMER

S

SUPP

LIER

S



PROCESSOR

BLOCKBUSTER’S SYSTEM: Experience Entertainment at Home

BUSINESS MODEL PATHOLOGY for Blockbuster Video (1985-‐2014)

Blockbuster’s “Dead System”


KP

VP KA KR

CS R$ C$

CH

CR

Blockbuster Video




ENVIRONMENT

INPUT


OUTPUT

+ -‐

CUSTOMER

S

SUPP

LIER

S



PROCESSOR

BLACKBERRY’S SYSTEM: Tele-‐communicate 24x7

BUSINESS MODEL PATHOLOGY for Blackberry Phone

Blackberry’s “Dying System”


KP

VP KA KR

CS R$ C$

CH

CR

Smartphone



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)


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!