5 Archetypal Strategies for Designing Winning Business Models

5 ARCHETYPAL STRATEGIES
FOR DESIGNING
Dr. Rod Kuhn King
Visual Problem Solver, Inventor, and Magician

Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
GURUS
BUSINESS MODEL DESIGN
(BMD) MAP
BUSINESS MODEL DESIGN MAP
1. BUSINESS MODEL PROBLEM & DISCOVERY 2. BUSINESS MODEL VALIDATION
3. BUSINESS MODEL EXECUTION 4. BUSINESS MODEL MANAGEMENT

GURUS
QUESTIONS FOR
EACH STAGE OF
BUSINESS MODEL DESIGN
QUESTIONS FOR EACH STAGE OF
THE MAP FOR BUSINESS MODEL DESIGN
2. WHERE MUST THE BUSINESS GO? What Positioning?
3. HOW WILL THE BUSINESS GET THERE?
What Business Model?
1. WHAT KIND OF A BUSINESS ARE WE? What Industry/Vision?
4. HOW WILL WE KNOW WHEN THE
BUSINESS’S VISION IS REALISED?

5 ARCHETYPAL STRATEGIES
FOR DESIGNING WINNING BUSINESS MODELSGURUS
ARCHETYPAL
STRATEGIES
Existing Market (Segment)
(Compete on Existing Dimensions of
Customer Experience: Cost vs. Value or Diff.)
“Luxury Spot” Business Model:
High Differentiation & High Cost Strategy
 “Disruption Spot” Business Model:
Low Cost or Disruptive Innovation Strategy
 “Practical Impossibility” Business Model:
Emerging Blue Ocean Strategy
 “Sweet Spot” Business Model:
High Differentiation & Moderate Cost
Strategy
New Market (Universe)
(Compete on New Dimensions of
Customer Experience: Pain vs. Delight)
 “New Market” Business Model:
Ideal Market Disruption Strategy/
Ideal Blue Ocean Strategy/
Ideal Market Strategy
Zooming-in
Market Strategies
Zooming-out
Market Strategy

(-): PAIN
(+): DELIGHT
Disruption Spot
Luxury Spot
Strategic
Choice
Low-end Disruption
(Disruptive Innovator:
Low-end, Overserved
Customers; Low Margin;
‘Good Enough’ Quality)
Cost
(Adoption Barrier; Complexity;
Inaccessibility; Delay)
Sustaining Innovation
(Incumbent: High end,
‘20-80’ Customers;
High Profit Margin)Performance
(Functionality;
Quality)
Key
OMG-Experience:
Undesirable Experience:
GURUS
Cost-Performance Map
Collaboratively Design Oh My God-Vision, Strategies, Products, Services, and Business Models
Market Segment (Customer Problem/Goal): ………………………………………………………
Ideal Value Space
(Ideal Market/
Ideal Impossibility/
Ideal Tool/
Ideal Universe/
New Market Disruption)

(-): PAIN
(+): DELIGHT
Disruption Spot
Luxury Spot
Strategic
Choice
Key
OMG-Experience:
GURUS
Sweet Spot
STARTUP
Blue Ocean
STARTUP
(“Practical Impossibility;
Value Innovation”)
Luxury Spot
STARTUP
(“Existing Market”)
Disruption Spot/
Lean STARTUP
(“Resegmented/Reframed
Market; Lean/No-frills Niche”)
Volcano
STARTUP
Oasis
STARTUP
Green Ocean
STARTUP
Red Ocean
STARTUP
No-Man’s-Island
STARTUP
3
10
6
3
6
10
Ideal Value Space
(Ideal Market/
Ideal Impossibility/
Ideal Tool/
Ideal Universe/
New Market
STARTUP)
10 ARCHETYPAL STARTUPS & MARKET TYPES
“What Kind of a Startup Are We? What Kind of a Startup Must We Be? How?”
Differentiation
(Performance)
Cost

WHY?
HOW MANY? HOW MUCH?
WHAT (JOBS)?
HOW?
WHAT NEXT?
WHERE?
CUSTOMER JOBS TO BE DONE
(JBTD)
What’s the evidence?
WHEN?
WHO?
CUSTOMER JOBS TO BE DONE (JBTD)
Visually Facilitate Collaboration, Ideas Management, Creativity, and Customer Problem Solving
GURUS

ITENNE: ENVIRONMENT P: PROCESSES
S: SUPPLIERS/MATERIALS
R: RETAILERS/DISTRIBUTORS/
CHANNELS
O: OUTPUTS (PRODUCT/
SERVICE)
E: EMPLOYEES/KNOWLEDGE
ASSETS/CULTURE
GLOBAL VALUE CHAIN:
OUTCOMES/GOALS
 Customer Value Proposition (Job)
 Business Value = Revenue/Cost
 Customer Value (Experience) =
Customer Delight/Customer Pain
M: MACHINERY/EQUIPMENT/
FACILITY/LOCATION
C: CUSTOMERS/CONSUMERS &
RELATIONSHIPS
GLOBAL VALUE CHAIN
Zoomable Elements of a Value Chain or Business Model: “SEMPORCE”
GURUS

E: ENVIRONMENT
• Competitors/Industry/Economy
• Partners/Complementors
• Investors: Large Capital Investment
• Public/Society/Enemies
• Government/NGOs/Environment
GLOBAL VALUE CHAIN
FOR LUXURY SPOT
Customer Value Proposition:
[REVENUE/COST]
P: PROCESS CHAIN/GOALS
 Customer Experience-Driven/Inno.
 Customer Relationship Management
 Outstanding Marketing/Branding
 Excellent R & D/Product Engineering
 Selective Customization
PROMOTION CHANNELS
 Few Stores: High Cost, Low Volume-
Products/Services
 Exclusive Access
E: EMPLOYEES/KNOWLEDGE ASSETS/
CULTURE
 Decentralized Organization
 High Level of Employee Creativity
 Design/Solutions-Competence
 Intimate Knowledge of the Consumer
 Organic/“Collaboration” Culture
C: CONSUMERS/CUSTOMERS
 Personalized Interaction/Experience:
High Touch, High Feel; Co-creation
 Customer Experience Segmentation
 Superior Customer Support
 High end Customers: Conservative
O: OUTPUTS/PRODUCT/SERVICE
 Rare Product/Service; Premium Price
 High Performance; High Quality
 Highly Recognized Brand; Extension
 Feature-rich; High Profit Margin
 Prestigious; Cool Factor; Social Aura
 Novel/Unique Materials
FACILITY/LOCATION
 Highly Innovative/Disruptive
Technology
 Luxury Ambience
 High Rent; Premium/Urban Location
KEY
Existing Revenue (Reward/Info flow) Potential Revenue (Reward/Info flow)
Existing Cost (Entry Barrier/Info Flow) Potential Cost (Entry Barrier/Info Flow)
GURUS
LUXURY SPOT-BUSINESS MODEL
Collaboratively Expand Market and Become Uncontested Leader in Existing Fast-growing Industry

E: ENVIRONMENT
• Competitors/Econ./Complementors
• Partners: Distribution Channels
• Investors
GLOBAL VALUE CHAIN FOR
DISRUPTION SPOT
Customer Value Proposition::
[REVENUE/COST]
 Standardization; Modularization
 Process Improvement & Waste Min.
 Optimization/Outsourcing/Innovation
 Customer Development; Lean Startup
 Process Improvement & Waste Red.
PROMOTION CHANNELS
 Online Business/Store
 Offline: Superstores/Franchises:
Low Cost, High Volume-Products/
Services
CULTURE
 Centralized Organization
 Productivity and Process-focused
 Lower Paid Employees
 Vertical Teams/Structured Jobs
 “Cultivation/Control” Culture
 Mass Market: Overserved/Unserved
 Early/Fast Adopters; Pragmatists
 ‘Good Enough’ or Minimum Customer
Service
 Simple-to-use Product/Service
 ‘Good Enough’ Functionality/Quality
 Low/Discounted Price
 Widely Available; Fast-moving
 Low-price and Quality-Compliant
Suppliers
 Contracted/Outsourced Suppliers
FACILITY/LOCATION
 Cost-reduction Platform
 High Quality/Scalable IT Architecture
 Optimized Plant Capacity/Infra’
 High Asset Utilization
 Low Rent/Suburban Location
KEY
GURUS
DISRUPTION SPOT-BUSINESS MODEL
Collaboratively Expand Market and Become Uncontested Leader in Emerging Fast-growing Industry

E: ENVIRONMENT
• Competitors/Econ./Complementors
• Partners: Distribution Channels
• Investors
GLOBAL VALUE CHAIN FOR
BLUE OCEAN
Customer Value Proposition::
[REVENUE/COST]
 Ambidextrous Business Model
 Experimentation: Fast and Low-cost
Failures; Big (Disruptive) Wins
 Unique Technology (IP); Agile Process
 Mass Customization; Just-in-Time
CHANNELS/INTERFACE
 Online Business/Store
 Offline: Superstores; Franchises
 Real-time Transaction of Orders
 Integrated Channel Management
CULTURE
 Highly Productive and Creative
 Discovery-driven Learning
 Customer Development/Lean Startup
 Fast Decisions
 Ambidextrous Org.: De-/Centralized
 Long-tail (80/20) Consumers/
Customers
 Short-head (20/80) Consumers/
Customers; Online Support
 High Quality; Feature-differentiated
 High Differentiation; Recognizable
Brand; Unique Design
 Low Price or Free; Widely Accessible
 Self-service
 Real-time Integrated Scheduling/
Shipping/Warehouse Management
 External Co-creators
 Cheaper Supplies: Raw Materials
FACILITY/LOCATION
 Informal Ambience/Atmosphere
 Advanced Technology Platform:
Automation
 Massive/Scalable Infrastructure
 Modular Architecture: Interoperable
KEY
GURUS
BLUE OCEAN-BUSINESS MODEL
Collaboratively Expand Market and Become Uncontested Leader in Emerging Fast-growing Industry

ITENNE: ENVIRONMENT
• Competitors/Industry/Economy
• Partners/Complementors
• Investors/Board of Directors
• Public/Society/Enemies/Non-customer
P: PROCESSES
• Preparing/Searching/Discovering
• Purchasing/Leasing
• Receiving/Delivering/Learning/Installing
• Using/Sharing/Complementing
• Maintaining/Storing/Managing/Disposing
S: SUPPLIERS/MATERIAL E: EMPLOYEES/KNOWLEDGE
ASSETS/CULTURE
GLOBAL VALUE CHAIN
(PERFORMANCE DASHBOARD)
OUTCOMES/GOALS
FACILITY/LOCATION
C: CUSTOMERS & CONSUMERS
RELATIONSHIPS
 Core Customers/Users/Influencers
 Peripheral Customers/Users/Influ.
 Remote Customers/Users/Influ.
GENERIC ELEMENTS OF GLOBAL VALUE CHAIN MAP
Collaboratively List, Sketch, Organize, and/or Manage Metrics for Elements of Value Chain
GURUS
CHANNELS
 Retailers/Distributors/Channels
 Place/Warehousing/Location
 Promotion/Buzz
 Branding/Marketing
 Advertising
 Selling/Relationship Management
SERVICE)
 Product/Service
 Pricing
 Packaging
 Display
 Design
 Plan

ITENNE: ENVIRONMENT/INVESTOR
 Revenue (Sales)
 Cash Burn Rate
 Month of Cash Left
 Time to Cash Flow-Breakeven
 Contribution Margin
P: PROCESSES
 Cycle Time for Pivots/Prototyping/
Versioning/Product Releases
 Average Time to First Order
 Average Time to Follow-on Order
 Customer Feedback/Voice
CHANNELS
 Advertising Expenses
 Viral Coefficient
SERVICE)
 No. of Minimum Viable Products
 No. of Prototypes/Releases
 Average Size Order
 Average Selling Price per Order
 Web Page/Site: Total Visits;
Total Page Views
ASSETS/CULTURE
 Agile/Lean (‘Small’) Teams
 Lessons Learned/Insights
 No. of Experiments/Interviews
 Effectiveness/Proficiency of
Sale Person
 Revenue per Sale Person
GLOBAL VALUE CHAIN
DASHBOARD (Startup)
OUTCOMES/GOALS:
 Customer Value Proposition
FACILITY/LOCATION
RELATIONSHIPS
 No. of Prospects/Registrations
 No. of Customers/Referrals
 Cost per Acquisition (Paid/Net)
 Customer Lifetime Value
 Customer Loyalty/Retention:
Net Promoter Score (NPS)
GLOBAL VALUE CHAIN DASHBOARD: Example (Startup)GURUS

(-): PAIN
(+): DELIGHT
Disruption Spot
Luxury Spot
Strategic
Choice
Key
OMG-Experience:
Profit Margin
No. of Direct Competitors
(Level of Commoditization)
Blue Ocean
(“Practical Impossibility”)
Luxury Spot
Disruption Spot
Green Ocean Red Ocean
JOURNEY OF
THE BLUE OCEAN STARTUP
3
100%
6
10%
20%
10 (Global)

(-): PAIN
(+): DELIGHT
Disruption Spot
Luxury Spot
Strategic
Choice
Profit Margin
No. of Direct Competitors
(Level of Commoditization)
COMPANY BUILDING COMPANY SCALING/
ACQUISITION
CUSTOMER CREATION
CUSTOMER DISCOVERY
& VALIDATION
‘CUSTOMER DEVELOPMENT’ JOURNEY OF
THE BLUE OCEAN STARTUP
3
100%
6
10%
20%
10 (Global)

Apple’s iPod
Business Model Canvas,
Global Value Chain Map,
and
Business Model Matrix

ITENN
GURUS
BUSINESS MODEL CANVAS
Alexander Osterwalder
Map, Analyze, and Design Your Business Model

ITENNE: ENVIRONMENT P: PROCESSES
CHANNELS
SERVICE)
ASSETS/CULTURE
GLOBAL VALUE CHAIN:
OUTCOMES/GOALS
FACILITY/LOCATION
RELATIONSHIPS
GURUS
GLOBAL VALUE CHAIN MAP
Rod Kuhn King
Map, Analyze, and Design Elements of Your Business Model & Value Chain (“SEMPORCE”)

ITENNE: ENVIRONMENT
 Key Partners (KP)
P: PROCESSES
 Key Activities (KA)
 Key Resources (KR) – Suppliers
CHANNELS
 Channels (CH)
SERVICE)
 Key Resources (KR) – Product/
Service
ASSETS/CULTURE
 Key Resources (KR) – Employees
GLOBAL VALUE CHAIN
FOR “BUSINESS MODEL
CANVAS”: GOALS
 Customer Value Proposition (VP)
 Revenue Streams (R$)
 Cost Structure (C$)
FACILITY/LOCATION
 Key Resources (KR) – Machinery
RELATIONSHIPS
 Customer Segments (CS)
 Customer Relationships (CR)
GLOBAL VALUE CHAIN FOR “BUSINESS MODEL CANVAS”
Visually Observe Similarities and Differences Between Global Value Chain & Business Model Canvas
GURUS

ITENNE: ENVIRONMENT
 Key Partners (KP)
 Record Companies
 Original Equipment Manufactur-
ers (OEMs)
P: PROCESSES
 Key Activities (KA):
 Hardware Design
 Software Design
 Marketing
 Key Resources (KR) – Suppliers
CHANNELS
 Channels (CH)
 iTunes Store
 www.apple.com
 Apple Stores
 Selected Retail Stores
SERVICE)
 Key Resources (KR) – Product/
Service
 iPod Hardware
 iTunes Software
 Content & Agreements
ASSETS/CULTURE
 Key Resources (KR) – Employees
 Staff
 Apple Brand
APPLE INC.: iPod (2001)
 Customer Value Proposition (VP):
“A Thousand Songs in Your Pocket”
 Revenue Streams (R$): iPod Hard-
ware; iTunes Store; Commissions
 Cost Structure (C$): Employees;
Manufacturing; Marketing & Sales
FACILITY/LOCATION
 Key Resources (KR) – Machinery
RELATIONSHIPS
 Customer Segments (CS)
 Luxury Spot; Mass Market
 Customer Relationships (CR)
 “Lovemark”
 Switching Costs
GLOBAL VALUE CHAIN FOR APPLE INC.: iPod
Visually Observe Similarities and Differences Between Global Value Chain & Business Model Canvas
GURUS

FOCUS “PIVOT” PROCESS: VALUE INNOVATION TACTICS (What if … E.R.I.C.?) OUTCOME:
FUTURE
(DISRUPTIVE)
BUS. MODEL
BUSINESS/
GLOBAL VALUE CHAIN
GIVEN BUSINESS
MODEL
E:
Eliminate
R:
Reduce/Replace
I:
Increase
C:
Create
INPUT (SUPPLIERS/
MATERIALS/ENERGY)
ELEMENTS
(EMPLOYEES/
MACHINERY)
Staff/
Apple Brand
PROCESS
(Bus. Process/
Strategies)
Hardware Design/
Software Design/
Marketing
OUTPUTS:
PRODUCT/SERVICE
iPod Hardware/
iTunes Software/
Content &
Agreements
RETAILERS/DISTRIB./
CHANNELS
iTunes; apple.com;
Apple Stores/Others
CONSUMERS/
CUSTOMERS (Experience)
Luxury Spot/
Mass Market
ENVIRONMENT
- COMPETITORS (Industry)
- PARTNERS (Complementors)
- INVESTORS (Revenue/Cost)
- PUBLIC/SOCIETY/Enemies
- GOVERNMENT/NGOs
Record Companies/
Original Equipment
Manufacturers
(OEMs)/…
BUSINESS MODEL PIVOT FOR APPLE INC.: iPod - 2001
SYSTEM
(INDUSTRY/BUSINESS) GURUS
Market Segment (Customer Problem): ‘Fragmented’ Music ExperienceMission/Vision: “… Apple leads the digital music revolution. …”

HYPOTHESES PROBLEMS/
PAIN
(WEAKNESS-
ES/THREATS)
GOALS/Objectives/
Strategies/Tactics/
Initiatives/
Projects
Key Metrics/
Performance
Indicators/
Targets
Business Experiences (Impacts)
Description of BUSINESS/
GLOBAL VALUE CHAIN
Delight
(Revenue)
Pain
(Cost)
S: Suppliers
E: Employees/
Knowledge Assets
Staff/
Apple Brand/
Staffing Cost
M: Machinery/
Infrastructure
Hardware Design/
Software Design/
Marketing
P: Processes Marketing
Sales
Marketing Cost
Sales Cost
O: Outputs
(Product/Service)
iPod Hardware/
iTunes Software/
Content & Agreements
R: Retailers/
Distributors/
Channels
iTunes; apple.com;
Apple Stores/
Other Retailers
C: Consumers/
Customers
Luxury Spot/
Mass Market
High Revenue
(Hardware)
E: Environment Record Companies/
Original Equipment
Manufacturers (OEMs)/…
Commissions
VALUE CHAIN
(“SEMPORCE”)
BUSINESS
ECOSYSTEM
Customer Value Proposition:
“A Thousand Songs in Your Pocket”
BUSINESS VALUE
(PROFIT MARGIN)
BUSINESS MODEL PLAN FOR APPLE INC.: iPod - 2001
GURUS
Mission/Vision: “… Apple leads the digital music revolution. …” Market Segment (Customer Problem): ‘Fragmented’ Music Experience

FOCUS
BUSINESS/
GLOBAL VALUE CHAIN
DESCRIPTION
INPUT (SUPPLIERS/
MATERIALS/ENERGY)
ELEMENTS
(EMPLOYEES/
MACHINERY)
PROCESS
(Bus. Process/
Strategies)
OUTPUTS:
PRODUCT/SERVICE
RETAILERS/DISTRIB./
CHANNELS
CONSUMERS/
ENVIRONMENT
- GOVERNMENT/NGOs
Mission/Vision: …………………….………………………………………………….
BUSINESS MODEL MATRIX: Template
SYSTEM
Market Segment (Customer Problem/Goal): ……………………….….…

FOCUS EVOLUTION OF BUSINESS MODEL IDEAL BUSINESS
MODEL
BUSINESS/
GLOBAL VALUE CHAIN
DESCRIPTION/
INDUSTRY
PAST
BUSINESS MODEL
PRESENT
BUSINESS MODEL
FUTURE
BUSINESS MODEL
INPUT (SUPPLIERS/
MATERIALS/ENERGY)
ELEMENTS
(EMPLOYEES/
MACHINERY)
PROCESS
(Bus. Process/
Strategies)
OUTPUTS:
PRODUCT/SERVICE
RETAILERS/DISTRIB./
CHANNELS
CONSUMERS/
ENVIRONMENT
- GOVERNMENT/NGOs
Mission/Vision: …………………….………………………………………………….
BUSINESS MODEL EVOLUTION
SYSTEM

FOCUS BUSINESS MODEL LIFECYCLE: Five Stages in the Life of a Business Model
BUSINESS/
GLOBAL VALUE CHAIN
DESCRIPTION/
INDUSTRY
BIRTH GROWTH MATURITY DECLINE DEATH
INPUT (SUPPLIERS/
MATERIALS/ENERGY)
ELEMENTS
(EMPLOYEES/
MACHINERY)
PROCESS
(Bus. Process/
Strategies)
OUTPUTS:
PRODUCT/SERVICE
RETAILERS/DISTRIB./
CHANNELS
CONSUMERS/
Early Adopters/
Innovators
Early Majority Late Majority Overserved/
Underserved
Switchers
ENVIRONMENT
- GOVERNMENT/NGOs
BUSINESS MODEL LIFECYCLE
SYSTEM

FOCUS BUSINESS MODEL (CUSTOMER/PRODUCT) DEVELOPMENT DASHBOARD LEARNING:
Findings/
Insights/Deci-
sions/Actions
BUSINESS/
GLOBAL VALUE CHAIN
DESCRIPTION/
INDUSTRY
BUSINESS
MODEL PROB.
& DISCOVERY
BUSINESS
MODEL
VALIDATION
BUSINESS
MODEL
EXECUTION
BUSINESS
MODEL
MANAGEMENT
INPUT (SUPPLIERS/
MATERIALS/ENERGY)
ELEMENTS
(EMPLOYEES/
MACHINERY)
PROCESS
(Bus. Process/
Strategies)
OUTPUTS:
PRODUCT/SERVICE
RETAILERS/DISTRIB./
CHANNELS
CONSUMERS/
Early Adopters/
Innovators
Early Majority Late Majority Loyal/Overserved/
Underserved
ENVIRONMENT
- GOVERNMENT/NGOs
BUSINESS MODEL DEVELOPMENT (BMD) MATRIX: Template
SYSTEM

FOCUS BUSINESS MODEL (CUSTOMER/PRODUCT) DEVELOPMENT DASHBOARD LEARNING:
Findings/
Insights/Deci-
sions/Actions
BUSINESS/
GLOBAL VALUE CHAIN
DESCRIPTION/
INDUSTRY
BUSINESS
MODEL PROB.
& DISCOVERY
BUSINESS
MODEL
VALIDATION
BUSINESS
MODEL
EXECUTION
BUSINESS
MODEL
MANAGEMENT
INPUT (SUPPLIERS/
MATERIALS/ENERGY)
ELEMENTS
(EMPLOYEES/
MACHINERY)
PROCESS
(Bus. Process/
Strategies)
Envision, Brain-
storm, Search for,
and/or Discover
Business Model
Validate Business
Model
Launch/Scale
Business Model;
Develop Mar-
keting Roadmap
Build Company
Culture;
Grow Company
OUTPUTS:
PRODUCT/SERVICE
Minimum Pro-
duct: Desirable/
Viable/Feasible
Product-Market
Fit: Prototype/
Pilot/No-frills
Product-Solution
Fit: Full Soft-
ware/ Hardware
More Fully Featured
Product: Software/
Hardware
RETAILERS/DISTRIB./
CHANNELS
CONSUMERS/
Early Adopters/
Innovators
Early Majority Late Majority Loyal/Overserved/
Underserved
ENVIRONMENT
- GOVERNMENT/NGOs
BUSINESS MODEL DEVELOPMENT (BMD) MATRIX: Populated
SYSTEM

FOCUS BUSINESS MODEL TRENDS IN AN ECONOMY LEARNING:
Findings/
Insights/Deci-
sions/Actions
BUSINESS/
GLOBAL VALUE CHAIN
DESCRIPTION/
INDUSTRY
PHYSICAL
SECTOR
SOCIAL
SECTOR
KNOWLEDGE
SECTOR
SPIRITUAL
SECTOR
INPUT (SUPPLIERS/
MATERIALS/ENERGY)
ELEMENTS
(EMPLOYEES/
MACHINERY)
PROCESS
(Bus. Process/
Strategies)
OUTPUTS:
PRODUCT/SERVICE
RETAILERS/DISTRIB./
CHANNELS
CONSUMERS/
ENVIRONMENT
- GOVERNMENT/NGOs
BUSINESS MODEL TRENDS
SYSTEM

FOCUS COMPETITORS/SECTOR/INDUSTRY FUTURE
(DISRUPTIVE/
IDEAL)
BUS. MODEL
BUSINESS/
GLOBAL VALUE CHAIN
GIVEN
BUS. MODEL
BUS. MODEL 1: BUS. MODEL 2: BUS. MODEL 3: BUS. MODEL
…
INPUT (SUPPLIERS/
MATERIALS/ENERGY)
ELEMENTS
(EMPLOYEES/
MACHINERY)
PROCESS
(Bus. Process/
Strategies)
OUTPUTS:
PRODUCT/SERVICE
RETAILERS/DISTRIB./
CHANNELS
CONSUMERS/
ENVIRONMENT
- GOVERNMENT/NGOs
Mission/Vision: …………………….………………………………………………….
INDUSTRY BUSINESS MODELS
SYSTEM

FOCUS STRATEGY: How must the business model get there? Where must
business
model go?BUSINESS/
GLOBAL VALUE CHAIN
Where currently is
business model?
INPUT (SUPPLIERS/
MATERIALS/ENERGY)
ELEMENTS
(EMPLOYEES/
MACHINERY)
PROCESS
(Bus. Process/
Strategies)
OUTPUTS:
PRODUCT/SERVICE
RETAILERS/DISTRIB./
CHANNELS
CONSUMERS/
ENVIRONMENT
- GOVERNMENT/NGOs
Mission/Vision: …………………….………………………………………………….
BUSINESS MODEL PLANNING
SYSTEM

HYPOTHESES PROBLEMS/
PAIN
(WEAKNESS-
ES/THREATS)
GOALS/Objectives/
Strategies/Tactics/
Initiatives/
Projects
Key Metrics/
Performance
Indicators/
Targets
Business Experiences (Impacts)
Description of BUSINESS/
GLOBAL VALUE CHAIN
Delight
(Revenue)
Pain
(Cost)
S: Suppliers
E: Employees/
Knowledge Assets
M: Machinery/
Infrastructure
P: Processes
O: Outputs
(Product/Service)
R: Retailers/
Distributors/
Channels
C: Consumers/
Customers
E: Environment
VALUE CHAIN
(“SEMPORCE”)
BUSINESS
ECOSYSTEM
Customer Value Proposition (Job To Be Done): BUSINESS VALUE
(PROFIT MARGIN)
GURUS
Mission/Vision: …………………….…………………………………………………. Market Segment (Customer Problem/Goal): ……………………….….…
BUSINESS MODEL PLAN

FOCUS PROCESS: SWOT Analysis FUTURE
(DISRUPTIVE/
IDEAL)
BUS. MODEL
BUSINESS/
GLOBAL VALUE CHAIN
GIVEN
BUS. MODEL
S:
Strengths
W:
Weaknesses
O:
Opportunities
T:
Threats
INPUT (SUPPLIERS/
MATERIALS/ENERGY)
ELEMENTS
(EMPLOYEES/
MACHINERY)
PROCESS
(Bus. Process/
Strategies)
OUTPUTS:
PRODUCT/SERVICE
RETAILERS/DISTRIB./
CHANNELS
CONSUMERS/
ENVIRONMENT
- GOVERNMENT/NGOs
Mission/Vision: …………………….………………………………………………….
BUSINESS MODEL SWOT ANALYSIS
SYSTEM

FOCUS “PIVOT” PROCESS: VALUE INNOVATION TACTICS (What if … E.R.I.C.?) FUTURE
(DISRUPTIVE/
IDEAL)
BUS. MODEL
BUSINESS/
GLOBAL VALUE CHAIN
GIVEN
BUS. MODEL
E:
Eliminate
R:
Reduce/Replace
I:
Increase
C:
Create
INPUT (SUPPLIERS/
MATERIALS/ENERGY)
ELEMENTS
(EMPLOYEES/
MACHINERY)
PROCESS
(Bus. Process/
Strategies)
OUTPUTS:
PRODUCT/SERVICE
RETAILERS/DISTRIB./
CHANNELS
CONSUMERS/
ENVIRONMENT
- GOVERNMENT/NGOs
Mission/Vision: …………………….………………………………………………….
BUSINESS MODEL PIVOT
SYSTEM

FOCUS “PIVOT” PROCESS: VALUE INNOVATION TACTICS (What if … E.R.I.C.?) FUTURE
(DISRUPTIVE/
IDEAL)
BUS. MODEL
BUSINESS/
GLOBAL VALUE CHAIN
GIVEN
BUS. MODEL
E:
Eliminate
R:
Reduce
I:
Increase
C:
Create
INPUT (SUPPLIERS/
MATERIALS/ENERGY)
Waste/Defects Waste/Defects/
Energy
Efficiency of Logistics/
Digitalization/
Partnerships/
Collaborations
ELEMENTS
(EMPLOYEES/
MACHINERY)
Unprofitable Assets/
Obsolete equip-
ment/machinery/
Manual/Travel
Assets/Training/
Staff/Compensation/
Materials/Meals/
Fuel/Travel/Location
Assets/IP/Training/
Productivity/IT/
Knowledge/
Motivation/Security
Assets/IP/
Outsourcing/
Competence/
Platform
PROCESS
(Bus. Process/
Strategies)
Delays/Complexity/
Bottlenecks/Waste/
Defects/Risks/
Uncertainties
Delays/Complexity/
Bottlenecks/Waste/
Risks/Uncertainties/
Marketing/Debt
Efficiency/Speed/
Agility/Flexibility/
Reliability/Accuracy/
Customization
Digitalization/
Integration/
Pricing unit/
KPIs
OUTPUTS
(PRODUCT/
SERVICE)
Dissatisfiers: Cost/
Concessions/
Complexity/
Delays/Aging
Delighters: Quality
Dissatisfiers: Cost/
Maintenance/Range/
Choice/Complexity
Dissatisfiers: Cost
Delighters/Value:
Convenience/Prestige/
Useability/Brand
Delighters:
Theme/Thrill/
Fun/Music/
Art/Adventure
RETAILERS/DISTRIB./
CHANNELS
Distribution outlets/
Retailers
Marketing/Ad.
Marketing/Ad./Service
Website/Word-
of-mouth
CONSUMERS/
Dissatisfiers:
Pain/Objections/
Complaints
Dissatisfiers:
Pain/Objections/
Complaints
Delighters/Key
metrics: Quality/Pro-
ductivity/Profitability
Demand/Goal:
Niches/Exper./
Crowdsourcing
ENVIRONMENT
- GOVERNMENT/NGOs
Industry barriers/
constraints/
Competition/
Risks/Threats/
Uncertainties
Environmental Risks/
Competition/
Risks/Threats/
Uncertainties/
Environmental
degradation
Profit (Margin)/ROI/
Share price/
Cash flow velocity/
Tracking/
Entry barriers/
Env. Friendliness
Partnerships/
Mergers/
Competitive
Intelligence/
Threshold ev./
Entry barriers
Mission/Vision: …………………….………………………………………………….
BUSINESS MODEL PIVOT: Scenarios
SYSTEM
(INDUSTRY/BUSINESS)
Market Segment (Customer Problem/Goal):
Increase or Appropriately Reduce CUSTOMER VALUE QUOTIENT
GURUS

SYSTEM ADJACENT (PERIPHERAL/ALTERNATIVE) BUSINESS MODELS FUTURE
(VISIONARY/
IDEAL)
BUS. MODEL
BUSINESS/
GLOBAL VALUE CHAIN
PRESENT/CORE
BUSINESS MODEL
Adjacency
1:
Adjacency
2:
Adjacency
3:
Adjacency
…
S: Suppliers
E: Employees/
Knowledge Assets
M: Machinery/
Infrastructure
P: Processes
O: Outputs
(Product/Service)
R: Retailers/
Distributors/
Channels
C: Consumers/
Customers
E: Environment
VALUE CHAIN
(“SEMPORCE”)
CORE Customer Value Proposition (Job To Be Done):
BUSINESS MODEL ADJACENCIES
GURUS
Mission/Vision: …………………….…………………………………………………. Market Segment (Customer Problem/Goal): ……………………….….…

ITENN4 PART-WISDOMSOURCING MAP 5 PART-WISDOMSOURCING MAP
1 PART-WISDOMSOURCING MAP
CLASSIC VERTICAL MAP PAIN-DELIGHT MAP
WISDOMSOURCING MAPS:
Family of Wisdomsourcing Maps
(Zoomable Idea Organizers) for
Facilitating Collaboration, Ideas
Management, Creativity, and
Customer Problem Solving
CLASSIC HORIZONTAL MAP
GURUS
WISDOMSOURCING MAPS
Visually Facilitate Collaboration, Ideas Management, Creativity, and Customer Problem Solving

ABOUT THE INVENTOR/AUTHOR
GURUS

Inventor of over 40 Tools for
The Wisdomsourcing Trilogy –
Facilitating work in the areas of
 Business Model Development
 Business and Strategic Planning
 Product & Service Innovation
 Performance Management
Inventor of “The Fractal Grid”
This technology, which has US and
International patent-pending, can be
used for visually organizing and
Prioritizing massive amounts of
information such as in search
engines, social networks, and
other communities on the Internet
 Visual Problem Solver
 Speaker & Consultant on
Business Model Development
 Inventor of The Wisdomsourcing
Trilogy, a Customer Problem Solv-
ing Suite for Collaboratively
Designing Oh My God-Strategies,
Products, and Business Models
Founder of the Wisdomsourcing
Group, an online Global Think Tank
for collaboratively improving
customer experiences and resolving
tough dilemmas
Organizer & Coordinator of Wisdom-
sourcing survey involving over 200
professionals from over 30 countries
CONTACT
Dr. Rod King: California, USA
Cell: (559) 248-6230
rodkuhnking@sbcglobal.net
http://twitter.com/RodKuhnKing
 B. Eng. (Hons) in Civil Eng.
 Master of Infrastructure Planning
 Ph.D. in Regional Dev. Planning
 Postgraduate Certificate in
Advanced Academic Studies
 Over 20 years of experience in
creative problem solving for
multi-disciplinary projects
Dr. Rod King
Visual Problem Solver,
Inventor & Magician
 Inventor of first software that
wholly invents magic tricks
 Inventor of several magic tricks
 Author of “Trickanalyzing the
Close-up Magic of David
Copperfield” & several articles
 Winner of several championships
in chess and table-tennis
 Founder and former CEO of
Galaxy IT, Inc., a venture-financed
visual search engine business
 Major contributor on creativity to
the multi-author book, “Research
Methods for Postgraduates”
 Former Lecturer
BIOGRAPHICAL SKETCH
Background Information on Dr. Rod King, Creator of Business Model Development (BMD)
GURUS

• Rod King (2009)
• Global Collaboration
• Visual Problem Solving
• Practical Impossibility Thinking
• Wisdomsourcing Maps
• Wisdomsourcing Canvas
• Customer Experience Map
(Pain-Delight Evaluation of Trade-off)
• Wisdomsourcing Deck
• Manifesto for Wisdomsourcing Game
• Alex Osborne (1953)
• Rules for Brainstorming – No criticism
during idea generation
• ‘Blue Sky’ Thinking and Ideas
• Jeff Howe (2006)
• Crowdsourced Goods and
Information Products
• Off-site Tools for Strategic
Analysis and Problem
Solving
• ‘Ad hoc’ Group
• Unlimited Number of Volunteers
• Peer Production; Documentation
• Open Innovation and Value Chain
• Prosumers: Consumers who participate
like employees/producer in a business
• Competitions; Contests; Prizes
• Recognition; Reputation
• Organic Process
• Online Collaboration
• Collaborative Idea Generation
• 1D-Evaluation; Voting
• Myriad Generated
Ideas
• Offline
• 1 Physical Location
• Formal Group
WISDOMSOURCING
3.
CROWDSOURCING
2.
1.
BRAINSTORMING
EVOLUTION OF WISDOMSOURCINGGURUS

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