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BUSINESS MODEL PIVOTS: How Great Organizations Create and Sustain Competitive Advantage

It is an illusion to think that our environment is constant, that is, never changing. If the dinosaurs thought like that millennia ago, that must have been a big mistake. Natural environments are open systems and are in a constant state of flux; the business environment is no exception. Consequently, organizations that grow and thrive are once that are adaptive. In today's business parlance, organizations that create and sustain competitive advantage are the ones that "pivot" while maximizing their strengths and opportunities and minimizing their weaknesses and threats.

In the Lean Startup method, the concept of "pivot" refers to a transformation or structural change of a part of a business model. Such a pivot is made when a team faces an apparently insurmountable challenge in its environment. In this presentation, the concept of a pivot is liberally applied. Here a pivot applies to a non-problem-focused change in parts of a business model. In other words, pivots are applied here to generate ideas and hypotheses to be field tested especially with a view to disrupting traditional business models. Such pivots are necessary when designing game-changing business models.

BUSINESS MODEL PIVOTS: How Great Organizations Create and Sustain Competitive Advantage

  1. 1. World-class Coaching on Applying the Ambidexterity Principle, Strategy Pale7e, and Ambidextrous Leadership Galaxy Ambidextrous Growth Strategist. Dr. Rod King. rodkuhnhking@gmail.com & hAp://businessmodels.ning.com & @rodKuhnKing WHAT WHY HOW WHO PRODUCT/ SERVICE PROFIT MARGIN VALUE PROPOSITION RESOURCES (INPUTS/ PARTNERS) CUSTOMER STRATEGY Job To Get Done (JTGD): ….................................................................... Present (Doing): Red Ocean Business Model 4Q-Business Model Diamond Rapidly Discover and Solve the Greatest Problems in Communi:es WHAT WHY HOW WHO PRODUCT/ SERVICE PROFIT MARGIN VALUE PROPOSITION RESOURCES (INPUTS/ PARTNERS) CUSTOMER STRATEGY Future (To Do): Blue Ocean Business Model = PIVOT (Red Ocean Business Model) E: Eliminate … R: Reduce … I: Increase … C: Create …
  2. 2. World-class Coaching on Applying the Ambidexterity Principle, Strategy Pale7e, and Ambidextrous Leadership Galaxy Ambidextrous Growth Strategist. Dr. Rod King. rodkuhnhking@gmail.com & hAp://businessmodels.ning.com & @rodKuhnKing WHAT WHY HOW WHO PRODUCT/ SERVICE PROFIT MARGIN VALUE PROPOSITION RESOURCES (INPUTS/ PARTNERS) CUSTOMER STRATEGY Job To Get Done (JTGD): ….................................................................... WHY HOW PRODUCT/ SERVICE PROFIT MARGIN VALUE PROPOSITION RESOURCES (INPUTS/ PARTNERS) STRATEGY = PIVOT (Red Ocean Business Model) E: Eliminate … R: Reduce … I: Increase … C: Create … WHAT WHO CUSTOMER 4Q-Business Model Diamond Rapidly Discover and Solve the Greatest Problems in Communi:es Present (Doing): Red Ocean Business Model Future (To Do): Blue Ocean Business Model
  3. 3. World-class Coaching on Applying the Ambidexterity Principle, Strategy Pale7e, and Ambidextrous Leadership Galaxy Ambidextrous Growth Strategist. Dr. Rod King. rodkuhnhking@gmail.com & hAp://businessmodels.ning.com & @rodKuhnKing WHAT WHY HOW WHO PRODUCT/ SERVICE PROFIT MARGIN VALUE PROPOSITION RESOURCES (INPUTS/ PARTNERS) CUSTOMER STRATEGY Job To Get Done (JTGD): ….................................................................... WHY HOW PRODUCT/ SERVICE PROFIT MARGIN VALUE PROPOSITION RESOURCES (INPUTS/ PARTNERS) STRATEGY = PIVOT (Red Ocean Business Model) E: Eliminate … R: Reduce … I: Increase … C: Create … WHAT WHO CUSTOMER 4Q-Business Model Diamond Rapidly Discover and Solve the Greatest Problems in Communi:es Present (Doing): Red Ocean Business Model Future (To Do): Blue Ocean Business Model
  4. 4. World-class Coaching on Applying the Ambidexterity Principle, Strategy Pale7e, and Ambidextrous Leadership Galaxy Ambidextrous Growth Strategist. Dr. Rod King. rodkuhnhking@gmail.com & hAp://businessmodels.ning.com & @rodKuhnKing WHAT WHY HOW WHO PRODUCT/ SERVICE PROFIT MARGIN VALUE PROPOSITION RESOURCES (INPUTS/ PARTNERS) CUSTOMER STRATEGY Job To Get Done (JTGD): ….................................................................... WHY HOW PRODUCT/ SERVICE PROFIT MARGIN VALUE PROPOSITION RESOURCES (INPUTS/ PARTNERS) STRATEGY = PIVOT (Red Ocean Business Model) E: Eliminate … R: Reduce … I: Increase … C: Create … WHAT WHO CUSTOMER LOVEABILITY TESTS q  Internal Business Loveability: q  External Business Loveability: q  Product-Employee Loveability: q  Product-Market Loveability: 4Q-Business Model Diamond Rapidly Discover and Solve the Greatest Problems in Communi:es Present (Doing): Red Ocean Business Model Future (To Do): Blue Ocean Business Model
  5. 5. World-class Coaching on Applying the Ambidexterity Principle, Strategy Pale7e, and Ambidextrous Leadership Galaxy Ambidextrous Growth Strategist. Dr. Rod King. rodkuhnhking@gmail.com & hAp://businessmodels.ning.com & @rodKuhnKing Job To Get Done (JTGD): ..................................................................... BUSINESS MODEL CANVAS WHAT WHY HOW WHO Product/Service PROFIT MARGIN Value Proposi>on Resources; Inputs/ Partners Customer Segments STRATEGY BUSINESS MODEL CANVAS vs. 4Q-BUSINESS MODEL DIAMOND Why Organiza:ons Use a 4Q-Business Model Diamond 4Q-Business Model Diamond Complexity & Opacity Simplicity & Clarity OrganizaWon: ….....................
  6. 6. Anatomy of Business Model Pivots
  7. 7. World-class Coaching on Applying the Ambidexterity Principle, Strategy Pale7e, and Ambidextrous Leadership Galaxy Ambidextrous Growth Strategist. Dr. Rod King. rodkuhnhking@gmail.com & hAp://businessmodels.ning.com & @rodKuhnKing Job To Get Done (JTGD): ….................................................................... 4Q-Business Model Diamond Rapidly Discover and Solve the Greatest Problems in Communi:es
  8. 8. World-class Coaching on Applying the Ambidexterity Principle, Strategy Pale7e, and Ambidextrous Leadership Galaxy Ambidextrous Growth Strategist. Dr. Rod King. rodkuhnhking@gmail.com & hAp://businessmodels.ning.com & @rodKuhnKing WHAT WHY HOW WHO Job To Get Done (JTGD): ….................................................................... 4Q-Business Model (Lean Diamond) 4Q-Business Model Diamond Rapidly Discover and Solve the Greatest Problems in Communi:es
  9. 9. World-class Coaching on Applying the Ambidexterity Principle, Strategy Pale7e, and Ambidextrous Leadership Galaxy Ambidextrous Growth Strategist. Dr. Rod King. rodkuhnhking@gmail.com & hAp://businessmodels.ning.com & @rodKuhnKing WHAT WHY HOW WHO Job To Get Done (JTGD): ….................................................................... 4Q-Business Model (Lean Diamond) 4Q-Business Model Diamond Rapidly Discover and Solve the Greatest Problems in Communi:es
  10. 10. World-class Coaching on Applying the Ambidexterity Principle, Strategy Pale7e, and Ambidextrous Leadership Galaxy Ambidextrous Growth Strategist. Dr. Rod King. rodkuhnhking@gmail.com & hAp://businessmodels.ning.com & @rodKuhnKing WHAT WHY HOW WHO PROFIT MARGIN Job To Get Done (JTGD): ….................................................................... 4Q-Business Model (Lean Diamond) 4Q-Business Model Diamond Rapidly Discover and Solve the Greatest Problems in Communi:es
  11. 11. World-class Coaching on Applying the Ambidexterity Principle, Strategy Pale7e, and Ambidextrous Leadership Galaxy Ambidextrous Growth Strategist. Dr. Rod King. rodkuhnhking@gmail.com & hAp://businessmodels.ning.com & @rodKuhnKing WHAT WHY HOW WHO PROFIT MARGIN Job To Get Done (JTGD): ….................................................................... 4Q-Business Model (Lean Diamond) 4Q-Business Model Diamond Rapidly Discover and Solve the Greatest Problems in Communi:es
  12. 12. World-class Coaching on Applying the Ambidexterity Principle, Strategy Pale7e, and Ambidextrous Leadership Galaxy Ambidextrous Growth Strategist. Dr. Rod King. rodkuhnhking@gmail.com & hAp://businessmodels.ning.com & @rodKuhnKing WHAT WHY HOW WHO PRODUCT/ SERVICE PROFIT MARGIN VALUE PROPOSITION STRATEGY Job To Get Done (JTGD): ….................................................................... 4Q-Business Model (Lean Diamond) 4Q-Business Model Diamond Rapidly Discover and Solve the Greatest Problems in Communi:es
  13. 13. World-class Coaching on Applying the Ambidexterity Principle, Strategy Pale7e, and Ambidextrous Leadership Galaxy Ambidextrous Growth Strategist. Dr. Rod King. rodkuhnhking@gmail.com & hAp://businessmodels.ning.com & @rodKuhnKing WHAT WHY HOW WHO PRODUCT/ SERVICE PROFIT MARGIN VALUE PROPOSITION CUSTOMER STRATEGY Job To Get Done (JTGD): ….................................................................... 4Q-Business Model (Lean Diamond) 4Q-Business Model Diamond Rapidly Discover and Solve the Greatest Problems in Communi:es
  14. 14. World-class Coaching on Applying the Ambidexterity Principle, Strategy Pale7e, and Ambidextrous Leadership Galaxy Ambidextrous Growth Strategist. Dr. Rod King. rodkuhnhking@gmail.com & hAp://businessmodels.ning.com & @rodKuhnKing WHAT WHY HOW WHO PRODUCT/ SERVICE PROFIT MARGIN VALUE PROPOSITION CUSTOMER STRATEGY Job To Get Done (JTGD): ….................................................................... 4Q-Business Model (Lean Diamond) 4Q-Business Model Diamond Rapidly Discover and Solve the Greatest Problems in Communi:es
  15. 15. World-class Coaching on Applying the Ambidexterity Principle, Strategy Pale7e, and Ambidextrous Leadership Galaxy Ambidextrous Growth Strategist. Dr. Rod King. rodkuhnhking@gmail.com & hAp://businessmodels.ning.com & @rodKuhnKing WHAT WHY HOW WHO PRODUCT/ SERVICE PROFIT MARGIN VALUE PROPOSITION RESOURCES (INPUTS/ PARTNERS) CUSTOMER STRATEGY Job To Get Done (JTGD): ….................................................................... 4Q-Business Model (Lean Diamond) 4Q-Business Model Diamond Rapidly Discover and Solve the Greatest Problems in Communi:es
  16. 16. World-class Coaching on Applying the Ambidexterity Principle, Strategy Pale7e, and Ambidextrous Leadership Galaxy Ambidextrous Growth Strategist. Dr. Rod King. rodkuhnhking@gmail.com & hAp://businessmodels.ning.com & @rodKuhnKing WHAT WHY HOW WHO PRODUCT/ SERVICE PROFIT MARGIN VALUE PROPOSITION RESOURCES (INPUTS/ PARTNERS) CUSTOMER STRATEGY Job To Get Done (JTGD): ….................................................................... 4Q-Business Model (Lean Diamond) 4Q-Business Model Diamond Rapidly Discover and Solve the Greatest Problems in Communi:es
  17. 17. World-class Coaching on Applying the Ambidexterity Principle, Strategy Pale7e, and Ambidextrous Leadership Galaxy Ambidextrous Growth Strategist. Dr. Rod King. rodkuhnhking@gmail.com & hAp://businessmodels.ning.com & @rodKuhnKing WHAT WHY HOW WHO PRODUCT/ SERVICE PROFIT MARGIN VALUE PROPOSITION RESOURCES (INPUTS/ PARTNERS) CUSTOMER STRATEGY Job To Get Done (JTGD): ….................................................................... Present (Doing): Red Ocean Business Model 4Q-Business Model Diamond Rapidly Discover and Solve the Greatest Problems in Communi:es
  18. 18. World-class Coaching on Applying the Ambidexterity Principle, Strategy Pale7e, and Ambidextrous Leadership Galaxy Ambidextrous Growth Strategist. Dr. Rod King. rodkuhnhking@gmail.com & hAp://businessmodels.ning.com & @rodKuhnKing WHAT WHY HOW WHO PRODUCT/ SERVICE PROFIT MARGIN VALUE PROPOSITION RESOURCES (INPUTS/ PARTNERS) CUSTOMER STRATEGY Job To Get Done (JTGD): ….................................................................... WHAT WHY HOW WHO PRODUCT/ SERVICE PROFIT MARGIN VALUE PROPOSITION RESOURCES (INPUTS/ PARTNERS) CUSTOMER STRATEGY 4Q-Business Model Diamond Rapidly Discover and Solve the Greatest Problems in Communi:es Present (Doing): Red Ocean Business Model Future (To Do): Blue Ocean Business Model
  19. 19. World-class Coaching on Applying the Ambidexterity Principle, Strategy Pale7e, and Ambidextrous Leadership Galaxy Ambidextrous Growth Strategist. Dr. Rod King. rodkuhnhking@gmail.com & hAp://businessmodels.ning.com & @rodKuhnKing WHAT WHY HOW WHO PRODUCT/ SERVICE PROFIT MARGIN VALUE PROPOSITION RESOURCES (INPUTS/ PARTNERS) CUSTOMER STRATEGY Job To Get Done (JTGD): ….................................................................... WHAT WHY HOW WHO PRODUCT/ SERVICE PROFIT MARGIN VALUE PROPOSITION RESOURCES (INPUTS/ PARTNERS) CUSTOMER STRATEGY = PIVOT (Red Ocean Business Model) E: Eliminate … R: Reduce … I: Increase … C: Create … 4Q-Business Model Diamond Rapidly Discover and Solve the Greatest Problems in Communi:es Present (Doing): Red Ocean Business Model Future (To Do): Blue Ocean Business Model
  20. 20. World-class Coaching on Applying the Ambidexterity Principle, Strategy Pale7e, and Ambidextrous Leadership Galaxy Ambidextrous Growth Strategist. Dr. Rod King. rodkuhnhking@gmail.com & hAp://businessmodels.ning.com & @rodKuhnKing WHAT WHY HOW WHO PRODUCT/ SERVICE PROFIT MARGIN VALUE PROPOSITION RESOURCES (INPUTS/ PARTNERS) CUSTOMER STRATEGY Job To Get Done (JTGD): ….................................................................... WHY HOW PRODUCT/ SERVICE PROFIT MARGIN VALUE PROPOSITION RESOURCES (INPUTS/ PARTNERS) STRATEGY = PIVOT (Red Ocean Business Model) E: Eliminate … R: Reduce … I: Increase … C: Create … WHAT WHO CUSTOMER 4Q-Business Model Diamond Rapidly Discover and Solve the Greatest Problems in Communi:es Present (Doing): Red Ocean Business Model Future (To Do): Blue Ocean Business Model
  21. 21. Examples
  22. 22. Example 1
  23. 23. World-class Coaching on Applying the Ambidexterity Principle, Strategy Pale7e, and Ambidextrous Leadership Galaxy Ambidextrous Growth Strategist. Dr. Rod King. rodkuhnhking@gmail.com & hAp://businessmodels.ning.com & @rodKuhnKing WHAT WHY HOW WHO Job To Get Done (JTGD): Travel from one point to another (inter-city) Present (Doing): Red Ocean Business Model How Southwest Airlines Pivoted From the Business Model of the TradiWonal Airlines Rapidly Discover and Solve the Greatest Problems in Communi:es
  24. 24. World-class Coaching on Applying the Ambidexterity Principle, Strategy Pale7e, and Ambidextrous Leadership Galaxy Ambidextrous Growth Strategist. Dr. Rod King. rodkuhnhking@gmail.com & hAp://businessmodels.ning.com & @rodKuhnKing WHAT WHY HOW WHO Job To Get Done (JTGD): Travel from one point to another (inter-city) How Southwest Airlines Pivoted From the Business Model of the TradiWonal Airlines Rapidly Discover and Solve the Greatest Problems in Communi:es High PROFIT MARGIN Present (Doing): Red Ocean Business Model
  25. 25. World-class Coaching on Applying the Ambidexterity Principle, Strategy Pale7e, and Ambidextrous Leadership Galaxy Ambidextrous Growth Strategist. Dr. Rod King. rodkuhnhking@gmail.com & hAp://businessmodels.ning.com & @rodKuhnKing WHAT WHY HOW WHO Long-haul air transporta[on High PROFIT MARGIN Flight with ameni>es Staff (Non-union); Diverse Aircra]s High end Passenger DifferenWaWon STRATEGY Job To Get Done (JTGD): Travel from one point to another (inter-city) How Southwest Airlines Pivoted From the Business Model of the TradiWonal Airlines Rapidly Discover and Solve the Greatest Problems in Communi:es Present (Doing): Red Ocean Business Model
  26. 26. World-class Coaching on Applying the Ambidexterity Principle, Strategy Pale7e, and Ambidextrous Leadership Galaxy Ambidextrous Growth Strategist. Dr. Rod King. rodkuhnhking@gmail.com & hAp://businessmodels.ning.com & @rodKuhnKing WHAT WHY HOW WHO Long-haul air transporta[on High PROFIT MARGIN Flight with ameni>es Staff (Non-union); Diverse Aircra]s High end Passenger DifferenWaWon STRATEGY Job To Get Done (JTGD): Travel from one point to another (inter-city) = PIVOT (Red Ocean Business Model) E: Eliminate … hub connec>vity; sea>ng class R: Reduce … price; meals; lounges; waste I: Increase … friendly service; speed C: Create … point-to-point departures How Southwest Airlines Pivoted From the Business Model of the TradiWonal Airlines Rapidly Discover and Solve the Greatest Problems in Communi:es Present (Doing): Red Ocean Business Model
  27. 27. World-class Coaching on Applying the Ambidexterity Principle, Strategy Pale7e, and Ambidextrous Leadership Galaxy Ambidextrous Growth Strategist. Dr. Rod King. rodkuhnhking@gmail.com & hAp://businessmodels.ning.com & @rodKuhnKing WHAT WHY HOW WHO Long-haul air transporta[on High PROFIT MARGIN Flight with ameni>es Staff (Non-union); Diverse Aircra]s High end Passenger DifferenWaWon STRATEGY Job To Get Done (JTGD): Travel from one point to another (inter-city) = PIVOT (Red Ocean Business Model) E: Eliminate … hub connec>vity; sea>ng class R: Reduce … price; meals; lounges; waste I: Increase … friendly service; speed C: Create … point-to-point departures How Southwest Airlines Pivoted From the Business Model of the TradiWonal Airlines Rapidly Discover and Solve the Greatest Problems in Communi:es WHAT WHY HOW WHO Future (To Do): Blue Ocean Business Model Present (Doing): Red Ocean Business Model
  28. 28. World-class Coaching on Applying the Ambidexterity Principle, Strategy Pale7e, and Ambidextrous Leadership Galaxy Ambidextrous Growth Strategist. Dr. Rod King. rodkuhnhking@gmail.com & hAp://businessmodels.ning.com & @rodKuhnKing WHAT WHY HOW WHO Long-haul air transporta[on High PROFIT MARGIN Flight with ameni>es Staff (Non-union); Diverse Aircra]s High end Passenger DifferenWaWon STRATEGY Job To Get Done (JTGD): Travel from one point to another (inter-city) = PIVOT (Red Ocean Business Model) E: Eliminate … hub connec>vity; sea>ng class R: Reduce … price; meals; lounges; waste I: Increase … friendly service; speed C: Create … point-to-point departures How Southwest Airlines Pivoted From the Business Model of the TradiWonal Airlines Rapidly Discover and Solve the Greatest Problems in Communi:es WHAT WHY HOW WHO Low PROFIT MARGIN Future (To Do): Blue Ocean Business Model Present (Doing): Red Ocean Business Model
  29. 29. World-class Coaching on Applying the Ambidexterity Principle, Strategy Pale7e, and Ambidextrous Leadership Galaxy Ambidextrous Growth Strategist. Dr. Rod King. rodkuhnhking@gmail.com & hAp://businessmodels.ning.com & @rodKuhnKing WHAT WHY HOW WHO Long-haul air transporta[on High PROFIT MARGIN Flight with ameni>es Staff (Non-union); Diverse Aircra]s High end Passenger DifferenWaWon STRATEGY Job To Get Done (JTGD): Travel from one point to another (inter-city) = PIVOT (Red Ocean Business Model) E: Eliminate … hub connec>vity; sea>ng class R: Reduce … price; meals; lounges; waste I: Increase … friendly service; speed C: Create … point-to-point departures How Southwest Airlines Pivoted From the Business Model of the TradiWonal Airlines Rapidly Discover and Solve the Greatest Problems in Communi:es WHAT WHY HOW WHO Low Cost STRATEGY Low PROFIT MARGIN Future (To Do): Blue Ocean Business Model Present (Doing): Red Ocean Business Model
  30. 30. World-class Coaching on Applying the Ambidexterity Principle, Strategy Pale7e, and Ambidextrous Leadership Galaxy Ambidextrous Growth Strategist. Dr. Rod King. rodkuhnhking@gmail.com & hAp://businessmodels.ning.com & @rodKuhnKing WHAT WHY HOW WHO Long-haul air transporta[on High PROFIT MARGIN Flight with ameni>es Staff (Non-union); Diverse Aircra]s High end Passenger DifferenWaWon STRATEGY Job To Get Done (JTGD): Travel from one point to another (inter-city) WHAT WHY HOW WHO Short-haul air transporta[on Low PROFIT MARGIN “The speed of a plane at the price of a car” Staff (Union); Standard Aircra]s Inter-city Commuter Low Cost STRATEGY = PIVOT (Red Ocean Business Model) E: Eliminate … hub connec>vity; sea>ng class R: Reduce … price; meals; lounges; waste I: Increase … friendly service; speed C: Create … point-to-point departures How Southwest Airlines Pivoted From the Business Model of the TradiWonal Airlines Rapidly Discover and Solve the Greatest Problems in Communi:es Future (To Do): Blue Ocean Business Model Present (Doing): Red Ocean Business Model
  31. 31. World-class Coaching on Applying the Ambidexterity Principle, Strategy Pale7e, and Ambidextrous Leadership Galaxy Ambidextrous Growth Strategist. Dr. Rod King. rodkuhnhking@gmail.com & hAp://businessmodels.ning.com & @rodKuhnKing WHAT WHY HOW WHO Long-haul air transporta[on High PROFIT MARGIN Flight with ameni>es Staff (Non-union); Diverse Aircra]s High end Passenger DifferenWaWon STRATEGY Job To Get Done (JTGD): Travel from one point to another (inter-city) WHY HOW Short-haul air transporta[on Low PROFIT MARGIN “The speed of a plane at the price of a car” Staff (Union); Standard Aircra]s Low Cost STRATEGY = PIVOT (Red Ocean Business Model) E: Eliminate … hub connec>vity; sea>ng class R: Reduce … price; meals; lounges; waste I: Increase … friendly service; speed C: Create … point-to-point departures How Southwest Airlines Pivoted From the Business Model of the TradiWonal Airlines Rapidly Discover and Solve the Greatest Problems in Communi:es WHAT WHO Inter-city Commuter Future (To Do): Blue Ocean Business Model Present (Doing): Red Ocean Business Model
  32. 32. World-class Coaching on Applying the Ambidexterity Principle, Strategy Pale7e, and Ambidextrous Leadership Galaxy Ambidextrous Growth Strategist. Dr. Rod King. rodkuhnhking@gmail.com & hAp://businessmodels.ning.com & @rodKuhnKing WHAT WHY HOW WHO Long-haul air transporta[on High PROFIT MARGIN Flight with ameni>es Staff (Non-union); Diverse Aircra]s High end Passenger DifferenWaWon STRATEGY Job To Get Done (JTGD): Travel from one point to another (inter-city) WHY HOW Short-haul air transporta[on Low PROFIT MARGIN “The speed of a plane at the price of a car” Staff (Union); Standard Aircra]s Low Cost STRATEGY = PIVOT (Red Ocean Business Model) E: Eliminate … hub connec>vity; sea>ng class R: Reduce … price; meals; lounges; waste I: Increase … friendly service; speed C: Create … point-to-point departures How Southwest Airlines Pivoted From the Business Model of the TradiWonal Airlines Rapidly Discover and Solve the Greatest Problems in Communi:es WHAT WHO Inter-city Commuter LOVEABILITY TESTS q  Internal Business Loveability: q  External Business Loveability: q  Product-Employee Loveability: q  Product-Market Loveability: Low Future (To Do): Blue Ocean Business Model Present (Doing): Red Ocean Business Model
  33. 33. Example 2
  34. 34. World-class Coaching on Applying the Ambidexterity Principle, Strategy Pale7e, and Ambidextrous Leadership Galaxy Ambidextrous Growth Strategist. Dr. Rod King. rodkuhnhking@gmail.com & hAp://businessmodels.ning.com & @rodKuhnKing WHAT WHY HOW WHO How Cirque du Soleil Pivoted From the Business Model of the TradiWonal Circus Rapidly Discover and Solve the Greatest Problems in Communi:es WHAT WHY HOW WHO TRADITIONAL CIRCUS Business Model CIRQUE DU SOLEIL’S Business Model Tradi[onal Circus Show Low Profit Margin (Profitability) High Profit Margin (Loveability) High end Market: •  Adults •  Corporate •  Family •  Children “We Reinvent the Circus” “The Greatest Show On Earth” Staff; Animals; Equip- ment Staff; Equip- ment Circus-Theater Experience = PIVOT (Red Ocean Business Model) E: Eliminate … Star performers; Animals; Aisle concessions; Mul>ple show arenas R: Reduce … Fun/Humor; Thrill/Danger I: Increase … Uniqueness of venue C: Create … Theme; Music; Dance; Ambience Low end Market: •  Family •  Children Blue Ocean Strategy Red Ocean Strategy Job To Get Done (JTGD): Experience live entertainment
  35. 35. World-class Coaching on Applying the Ambidexterity Principle, Strategy Pale7e, and Ambidextrous Leadership Galaxy Ambidextrous Growth Strategist. Dr. Rod King. rodkuhnhking@gmail.com & hAp://businessmodels.ning.com & @rodKuhnKing WHAT WHY HOW WHO How Cirque du Soleil Pivoted From the Business Model of the TradiWonal Circus Rapidly Discover and Solve the Greatest Problems in Communi:es WHY HOW TRADITIONAL CIRCUS Business Model CIRQUE DU SOLEIL’S Business Model Tradi[onal Circus Show Low Profit Margin (Profitability) High Profit Margin (Loveability) “We Reinvent the Circus” “The Greatest Show On Earth” Circus-Theater Experience = PIVOT (Red Ocean Business Model) E: Eliminate … Star performers; Animals; Aisle concessions; Mul>ple show arenas R: Reduce … Fun/Humor; Thrill/Danger I: Increase … Uniqueness of venue C: Create … Theme; Music; Dance; Ambience Low end Market: •  Family •  Children Blue Ocean Strategy Red Ocean Strategy Job To Get Done (JTGD): Experience live entertainment WHAT WHO High end Market: •  Adults •  Corporate •  Family •  Children Staff; Animals; Equip- ment Staff; Equip- ment
  36. 36. Example 3
  37. 37. World-class Coaching on Applying the Ambidexterity Principle, Strategy Pale7e, and Ambidextrous Leadership Galaxy Ambidextrous Growth Strategist. Dr. Rod King. rodkuhnhking@gmail.com & hAp://businessmodels.ning.com & @rodKuhnKing WHAT WHY HOW WHO Photocopier Service High PROFIT MARGIN High speed duplica>on at premium cost High vol. copiers: Big companies DifferenWaWon STRATEGY Job To Get Done (JTGD): Obtain duplicate copies of a document Present: Red Ocean Business Model WHAT WHY HOW WHO Photocopier Product Low PROFIT MARGIN High quality at low price Small/ Medium Businesses; Individuals Low Cost STRATEGY = PIVOT (Red Ocean Business Model) E: Eliminate … direct salesforce; lease R: Reduce … price; meals; lounges; waste I: Increase … personaliza>on C: Create … dealer network How Canon Pivoted From the Business Model of Xerox Rapidly Discover and Solve the Greatest Problems in Communi:es Future: Blue Ocean Business Model Staff; Infrastructure Staff; Infrastructure
  38. 38. Example 4
  39. 39. World-class Coaching on Applying the Ambidexterity Principle, Strategy Pale7e, and Ambidextrous Leadership Galaxy Ambidextrous Growth Strategist. Dr. Rod King. rodkuhnhking@gmail.com & hAp://businessmodels.ning.com & @rodKuhnKing WHAT WHY HOW WHO Microso_ vs. Amazon’s Business Model: Profitability vs. Loveability Main Source of Informa:on: hYps://hbr.org/2015/06/too-much-profit-can-doom-your-company WHAT WHY HOW WHO Microso_’s Profit-focused Business Model Amazon’s Growth-focused Business Model Bundled (Packaged) Products Profit (Profitability) Growth (Loveability) Sellers “BeAer Customer Experience” Long-tail Selec[on: Wide Variety of Products “Familiar Customer Experience” Fast Follower Innovator LEAN DIAMOND (4Q-Business Model Diamond) Users Customers
  40. 40. World-class Coaching on Applying the Ambidexterity Principle, Strategy Pale7e, and Ambidextrous Leadership Galaxy Ambidextrous Growth Strategist. Dr. Rod King. rodkuhnhking@gmail.com & hAp://businessmodels.ning.com & @rodKuhnKing WHY HOW Microso_ vs. Amazon’s Business Model: Profitability vs. Loveability Main Source of Informa:on: hYps://hbr.org/2015/06/too-much-profit-can-doom-your-company WHY HOW Microso_’s Profit-focused Business Model Amazon’s Growth-focused Business Model Bundled (Packaged) Products Profit (Profitability) Growth (Loveability) “BeAer Customer Experience” Long-tail Selec[on: Wide Variety of Products “Familiar Customer Experience” Fast Follower LEAN DIAMOND (4Q-Business Model Diamond) Customers WHAT WHO Sellers WHAT WHO Users Innovator

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