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Industry/Market/Customer	
  Goal	
  (Job	
  To	
  Get	
  Done):	
  ……………………………………………….………………………….	
  
Problem	
  
Pain:	
  (Un)Known	
  
RED	
  OCEAN	
  
BLUE	
  OCEAN	
  
SoluGon	
  
Gain:	
  (Un)Known	
  
Method	
  
	
  
#VCYacht.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hRp://businessmodels.ning.com	
  &	
  hRp://twiRer.com/RodKuhnKing	
  
 
	
  
	
  
	
  
Industry/Market/Customer	
  Goal	
  (Job	
  To	
  Get	
  Done):	
  ……………………………………………….………………………….	
  
RED	
  OCEAN	
  
BLUE	
  OCEAN	
  
SoluGon	
  
Gain:	
  (Un)Known	
  
Method	
  
	
  
#VCYacht.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hRp://businessmodels.ning.com	
  &	
  hRp://twiRer.com/RodKuhnKing	
  
Where	
  currently	
  
are	
  we?	
  
Where	
  must	
  we	
  
go?	
  
How	
  must	
  we	
  	
  	
  	
  
get	
  there?	
  
Problem	
  
Pain:	
  (Un)Known	
  
 
	
  
	
  
	
  
Industry/Market/Customer	
  Goal	
  (Job	
  To	
  Get	
  Done):	
  ……………………………………………….………………………….	
  
RED	
  OCEAN	
  
BLUE	
  OCEAN	
  
SoluGon	
  
Gain:	
  (Un)Known	
  
Method	
  
	
  
#VCYacht.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hRp://businessmodels.ning.com	
  &	
  hRp://twiRer.com/RodKuhnKing	
  
Where	
  currently	
  
are	
  we?	
  
Where	
  must	
  we	
  
go?	
  
Problem	
  
Pain:	
  (Un)Known	
  
 
	
  
	
  
	
  
Industry/Market/Customer	
  Goal	
  (Job	
  To	
  Get	
  Done):	
  ……………………………………………….………………………….	
  
RED	
  OCEAN	
  
BLUE	
  OCEAN	
  
SoluGon	
  
Gain:	
  (Un)Known	
  
Method	
  
	
  
#VCYacht.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hRp://businessmodels.ning.com	
  &	
  hRp://twiRer.com/RodKuhnKing	
  
Where	
  currently	
  
are	
  we?	
  
Where	
  must	
  we	
  
go?	
  
Problem	
  
Pain:	
  (Un)Known	
  
 
	
  
	
  
	
  
Industry/Market/Customer	
  Goal	
  (Job	
  To	
  Get	
  Done):	
  ……………………………………………….………………………….	
  
RED	
  OCEAN	
  
BLUE	
  OCEAN	
  
SoluGon	
  
Gain:	
  (Un)Known	
  
Method	
  
System	
  
Structure	
  
Performance	
  
Structure	
  
	
  
#VCYacht.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hRp://businessmodels.ning.com	
  &	
  hRp://twiRer.com/RodKuhnKing	
  
Where	
  currently	
  
are	
  we?	
  
Where	
  must	
  we	
  
go?	
  
Problem	
  
Pain:	
  (Un)Known	
  
 
	
  
	
  
	
  
Industry/Market/Customer	
  Goal	
  (Job	
  To	
  Get	
  Done):	
  ……………………………………………….………………………….	
  
Problem	
  
Pain:	
  (Un)Known	
  
RED	
  OCEAN	
  
BLUE	
  OCEAN	
  
SoluGon	
  
Gain:	
  (Un)Known	
  
Method	
  
System	
  
Structure	
  
Performance	
  
Structure	
  
	
  
#VCYacht.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hRp://businessmodels.ning.com	
  &	
  hRp://twiRer.com/RodKuhnKing	
  
 
	
  
	
  
	
  
Industry/Market/Customer	
  Goal	
  (Job	
  To	
  Get	
  Done):	
  ……………………………………………….………………………….	
  
Problem	
  
Pain:	
  (Un)Known	
  
RED	
  OCEAN	
  
BLUE	
  OCEAN	
  
SoluGon	
  
Gain:	
  (Un)Known	
  
C$	
   R$	
  
P$	
  
VP	
  
+	
  -­‐	
  
	
  
#VCYacht.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hRp://businessmodels.ning.com	
  &	
  hRp://twiRer.com/RodKuhnKing	
  
 
	
  
	
  
	
  
	
  
#VCYacht.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hRp://businessmodels.ning.com	
  &	
  hRp://twiRer.com/RodKuhnKing	
  
Industry/Market/Customer	
  Goal	
  (Job	
  To	
  Get	
  Done):	
  ……………………………………………….………………………….	
  
Problem	
  
Pain:	
  (Un)Known	
  
RED	
  OCEAN	
  
BLUE	
  OCEAN	
  
SoluGon	
  
Gain:	
  (Un)Known	
  
C$	
   R$	
  
P$	
  
VP	
  
+	
  -­‐	
  
 
	
  
	
  
	
  
	
  
#VCYacht.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hRp://businessmodels.ning.com	
  &	
  hRp://twiRer.com/RodKuhnKing	
  
Industry/Market/Customer	
  Goal	
  (Job	
  To	
  Get	
  Done):	
  ……………………………………………….………………………….	
  
Problem	
  
Pain:	
  (Un)Known	
  
RED	
  OCEAN	
  
BLUE	
  OCEAN	
  
SoluGon	
  
Gain:	
  (Un)Known	
  
C$	
   R$	
  
P$	
  
VP	
  
+	
  -­‐	
  
 
	
  
	
  
	
  
	
  
#VCYacht.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hRp://businessmodels.ning.com	
  &	
  hRp://twiRer.com/RodKuhnKing	
  
Industry/Market/Customer	
  Goal	
  (Job	
  To	
  Get	
  Done):	
  ……………………………………………….………………………….	
  
Problem	
  
Pain:	
  (Un)Known	
  
RED	
  OCEAN	
  
BLUE	
  OCEAN	
  
SoluGon	
  
Gain:	
  (Un)Known	
  
PROFIT	
  
(MARGIN)	
  
COST	
  
(STRUCTURE)	
  
REVENUE	
  
(STREAMS)	
  
	
  
Value	
  Engine	
  
(Proposi<on/Strategy)	
  
 
	
  
	
  
	
  
	
  
#QBE.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hRp://businessmodels.ning.com	
  &	
  hRp://twiRer.com/RodKuhnKing	
  
Industry/Market/Customer	
  Goal	
  (Job	
  To	
  Get	
  Done):	
  ……………………………………………….………………………….	
  
PROFIT	
  
(MARGIN)	
  
COST	
  
(STRUCTURE)	
  
REVENUE	
  
(STREAMS)	
  
Problem	
  
Pain:	
  (Un)Known	
  
RED	
  OCEAN	
  
BLUE	
  OCEAN	
  
SoluGon	
  
Gain:	
  (Un)Known	
  
Services	
  
Outbound	
  LogisGcs	
  
OperaGons	
  
Inbound	
  LogisGcs	
  
Procurement	
  
Technology	
  
Dev.	
  
HR	
  
Mngt.	
  
	
  
Firm	
  
Infra.	
  
	
  
Value	
  Engine	
  
(Proposi<on/Strategy)	
  
MarkeGng	
  &	
  Sales	
  
 
	
  
	
  
	
  
	
  
#QBE.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hRp://businessmodels.ning.com	
  &	
  hRp://twiRer.com/RodKuhnKing	
  
Industry/Market/Customer	
  Goal	
  (Job	
  To	
  Get	
  Done):	
  ……………………………………………….………………………….	
  
PROFIT	
  
(MARGIN)	
  
COST	
  
(STRUCTURE)	
  
REVENUE	
  
(STREAMS)	
  
Problem	
  
Pain:	
  (Un)Known	
  
RED	
  OCEAN	
  
BLUE	
  OCEAN	
  
SoluGon	
  
Gain:	
  (Un)Known	
  
Services	
  
Outbound	
  LogisGcs	
  
OperaGons	
  
Inbound	
  LogisGcs	
  
Procurement	
  
Technology	
  
Dev.	
  
HR	
  
Mngt.	
  
	
  
Firm	
  
Infra.	
  
	
  
Value	
  Engine	
  
(Proposi<on/Strategy)	
  
MarkeGng	
  &	
  Sales	
  
 
	
  
	
  
	
  
	
  
#QBE.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hRp://businessmodels.ning.com	
  &	
  hRp://twiRer.com/RodKuhnKing	
  
Industry/Market/Customer	
  Goal	
  (Job	
  To	
  Get	
  Done):	
  ……………………………………………….………………………….	
  
PROFIT	
  
(MARGIN)	
  
COST	
  
(STRUCTURE)	
  
REVENUE	
  
(STREAMS)	
  
Problem	
  
Pain:	
  (Un)Known	
  
RED	
  OCEAN	
  
BLUE	
  OCEAN	
  
SoluGon	
  
Gain:	
  (Un)Known	
  
Services	
  
Outbound	
  LogisGcs	
  
OperaGons	
  
Inbound	
  LogisGcs	
  
Procurement	
  
Technology	
  
Dev.	
  
HR	
  
Mngt.	
  
	
  
Firm	
  
Infra.	
  
	
  
Value	
  Engine	
  
(Proposi<on/Strategy)	
  
MarkeGng	
  &	
  Sales	
  
Forces	
  
Against	
  
Forces	
  	
  	
  
For	
  
Trade-­‐off	
   Trade-­‐off	
  
 
	
  
	
  
	
  
	
  
#QBE.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hRp://businessmodels.ning.com	
  &	
  hRp://twiRer.com/RodKuhnKing	
  
Industry/Market/Customer	
  Goal	
  (Job	
  To	
  Get	
  Done):	
  ……………………………………………….………………………….	
  
PROFIT	
  
(MARGIN)	
  
COST	
  
(STRUCTURE)	
  
REVENUE	
  
(STREAMS)	
  
Problem	
  
Pain:	
  (Un)Known	
  
RED	
  OCEAN	
  
BLUE	
  OCEAN	
  
SoluGon	
  
Gain:	
  (Un)Known	
  
Services	
  
Outbound	
  LogisGcs	
  
OperaGons	
  
Inbound	
  LogisGcs	
  
Procurement	
  
Technology	
  
Dev.	
  
HR	
  
Mngt.	
  
	
  
Firm	
  
Infra.	
  
	
  
Value	
  Engine	
  
(Proposi<on/Strategy)	
  
MarkeGng	
  &	
  Sales	
  
S:	
  
Strengths	
  
O:	
  
Opportuni-­‐
<es	
  
W:	
  
Weaknesses	
  
T:	
  
Threats	
  
Trade-­‐off	
   Trade-­‐off	
  
Value	
  Chain	
  Yacht	
  
Discover	
  and	
  Solve	
  Customer	
  Problems	
  BeDer,	
  Faster,	
  and	
  Cheaper	
  	
  
IntroducGon	
  
Today,	
  startups	
  as	
  well	
  as	
  established	
  organiza<ons	
  are	
  struggling	
  to	
  discover	
  and	
  solve	
  customer	
  problems	
  in	
  a	
  <mely	
  manner.	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  
On	
  the	
  one	
  hand,	
  tools	
  such	
  as	
  brainstorming	
  and	
  lateral	
  thinking	
  are	
  rela<vely	
  simple	
  to	
  use	
  but	
  produce	
  low	
  quality	
  solu<ons.	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  
On	
  the	
  other	
  hand,	
  tools	
  such	
  as	
  the	
  Six	
  Sigma	
  methodology,	
  Lean	
  Startup	
  method,	
  and	
  TRIZ	
  generate	
  high	
  quality	
  solu<ons	
  but	
  take	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  
a	
  long	
  <me	
  to	
  understand	
  and	
  effec<vely	
  apply.	
  Mastery	
  of	
  these	
  laUer	
  tools	
  is	
  also	
  <me-­‐consuming	
  and	
  expensive.	
  
	
  
ObjecGve	
  
The	
  Value	
  Chain	
  Yacht	
  is	
  designed	
  as	
  a	
  simple	
  customizable	
  worksheet	
  that	
  eliminates	
  the	
  trade-­‐off	
  of	
  Complexity	
  vs.	
  Quality	
  in	
  tools	
  	
  	
  	
  	
  
such	
  as	
  brainstorming,	
  lateral	
  thinking,	
  TRIZ,	
  Six	
  Sigma	
  methodology,	
  and	
  the	
  Lean	
  Startup	
  method.	
  The	
  Value	
  Chain	
  (VC)	
  Yacht	
  can	
  be	
  	
  	
  	
  	
  	
  
considered	
  as	
  a	
  “Wisdomsourcing”	
  Board	
  for	
  collabora<vely	
  organizing	
  and	
  managing	
  ideas	
  while	
  rapidly	
  solving	
  customer	
  problems.	
  
	
  
Delight	
  
The	
  Value	
  Chain	
  Yacht	
  helps	
  people	
  to	
  beUer,	
  faster,	
  and	
  cheaper	
  solve	
  problems.	
  There	
  are	
  8	
  levels	
  of	
  proficiency	
  in	
  using	
  the	
  Value	
  Chain	
  
(VC)	
  	
  Yacht.	
  The	
  first	
  level	
  of	
  proficiency	
  focuses	
  on	
  use	
  of	
  the	
  VC	
  Yacht	
  as	
  a	
  problem	
  discovery	
  tool.	
  At	
  this	
  first	
  level,	
  the	
  VC	
  Yacht	
  can	
  be	
  
learned	
  and	
  applied	
  within	
  30	
  minutes	
  especially	
  as	
  a	
  tool	
  for	
  visually	
  collec<ng	
  ideas	
  on	
  the	
  Voice	
  of	
  the	
  Customer.	
  At	
  the	
  eighth	
  level,	
  	
  
use	
  	
  	
  of	
  the	
  VC	
  Yacht	
  focuses	
  on	
  developing	
  ideas	
  on	
  the	
  evolu<on	
  of	
  business	
  model	
  ecosystems.	
  Use	
  of	
  the	
  VC	
  Yacht	
  at	
  intermediate	
  
levels	
  ranges	
  from	
  product	
  innova<on,	
  value	
  chain	
  analysis,	
  industry	
  analysis,	
  business	
  model	
  innova<on	
  to	
  performance	
  management.	
  
	
  
Procedure	
  (for	
  Level	
  1	
  of	
  the	
  Value	
  Chain	
  Yacht)	
  
1.  Make	
  a	
  large	
  (A1	
  size)	
  printout	
  or	
  drawing	
  of	
  the	
  template	
  for	
  the	
  Value	
  Chain	
  (VC)	
  Yacht	
  and	
  place	
  it	
  on	
  a	
  table	
  or	
  wall.	
  
2.  Write	
  out	
  a	
  descrip<on	
  of	
  the	
  Customer	
  Goal	
  or	
  “Job	
  To	
  Get	
  Done”.	
  
3.  Describe	
  or	
  list	
  each	
  problem	
  (preferably	
  using	
  Post-­‐It	
  notes)	
  under	
  the	
  Problem	
  Space	
  or	
  “Red	
  Ocean”	
  on	
  lec	
  hand	
  side.	
  
4.  Choose	
  the	
  most	
  important	
  problem.	
  (Why	
  is	
  the	
  selected	
  problem	
  regarded	
  as	
  the	
  most	
  important?	
  What	
  are	
  impacts	
  of	
  problem?)	
  
5.  Generate,	
  under	
  the	
  Solu<on	
  Space	
  or	
  “Blue	
  Ocean”,	
  ideas	
  for	
  solving	
  the	
  most	
  important	
  problem.	
  (Hint:	
  Use	
  analogical	
  thinking.)	
  
6.  Select	
  the	
  highest	
  quality	
  solu<on	
  that	
  can	
  be	
  rapidly	
  implemented	
  as	
  well	
  as	
  which	
  has	
  the	
  least	
  cost.	
  
	
  
References	
  
Kim,	
  W.C.;	
  Mauborgne,	
  R.	
  (2004)	
  Blue	
  Ocean	
  Strategy.	
  MassachuseUs:	
  Harvard	
  Business	
  Review	
  Press.	
  
	
  
	
  
	
  
#VCYacht.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hRp://businessmodels.ning.com	
  &	
  hRp://twiRer.com/RodKuhnKing	
  
ITENN	
  Level	
  4:	
  BUS.	
  PROBLEM	
  SOLVING	
  
q  4	
  Elements	
  of	
  Good	
  Strategy	
  
q  Six	
  Sigma	
  Methodology	
  
q  Theory	
  of	
  Constraints	
  
q  Customer	
  Dev.	
  Stack	
  
q  Lean	
  Startup	
  Method	
  
Level	
  5:	
  VALUE	
  CHAIN	
  STRATEGY	
  
q  Value	
  Chain	
  (Analysis)	
  
q  5	
  Forces;	
  Env.	
  Analysis	
  
q  3	
  Generic	
  Strategies	
  
q  DisrupGve	
  InnovaGon	
  Theory	
  
q  Blue	
  Ocean	
  Strategy/Canvas	
  
Level	
  1:	
  PROBLEM	
  DISCOVERY	
  
q  Voice	
  of	
  the	
  Customer;	
  NPS	
  
q  Trade-­‐offs;	
  SWOT	
  Analysis	
  
q  Red	
  Ocean	
  Strategy	
  Canvas	
  
q  4	
  Problem	
  Archetypes;	
  BUMP	
  
q  Product/Market	
  Matrix	
  
Level	
  7:	
  BUS.	
  MODEL	
  EXECUTION	
  
q  HolisGc	
  System	
  Resources	
  
q  Core	
  Competences	
  
q  Resource-­‐Based	
  View	
  
q  Balanced	
  Scorecard;	
  Kanban	
  
q  Prototype/Pilot/Full	
  Scale	
  
Level	
  8:	
  ECOSYSTEM	
  EVOLUTION	
  
q  9	
  Windows	
  (MulGscreen)	
  
q  Business	
  Model	
  Dashboard	
  
q  Nested	
  S-­‐Curve;	
  WarGaming	
  
q  Value	
  Network	
  EvoluGon	
  
q  EvoluGon	
  of	
  Shared	
  Value	
  
Level	
  2:	
  PROBLEM	
  ANALYSIS	
  
q  5	
  Whys;	
  AnalyGcal	
  Hierarchy	
  
q  Root-­‐cause	
  Analysis:	
  Fishbone	
  
q  SIPOC	
  Process;	
  Pre-­‐mortem	
  
q  Universal	
  System	
  Structure	
  
q  FuncGonal	
  Analysis	
  Diagram	
  
THE	
  VALUE	
  CHAIN	
  YACHT	
  
o  Uses;	
  Areas	
  of	
  Applica<on	
  
o  Associated	
  Concepts/Tools	
  
o  Taxonomy	
  of	
  Tools	
  for	
  
Problem	
  Finding	
  &	
  Solving	
  
Level	
  3:	
  IDEA	
  GEN./EVALUATION	
  
q  (Visual)	
  Brainstorming	
  
q  E.R.I.C.	
  TacGcs	
  (“4	
  Ac<ons”)	
  	
  
q  SCAMPERR	
  Technique;	
  ASIT	
  
q  TRIZ:	
  Ideal	
  Final	
  Result	
  (IFR)	
  
q  Mission/Vision;	
  Pretotype	
  
Level	
  6:	
  BUS.	
  MODEL	
  STRATEGY	
  
q  Value	
  Net;	
  Lean	
  Canvas	
  
q  Business	
  Model	
  Canvas/Env.	
  
q  Business	
  Model	
  Storyboard	
  
q  “SPARC”	
  Yacht/Framework	
  
q  PESTLIED	
  Events	
  &	
  Trends	
  
	
  
#VCYacht.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hRp://businessmodels.ning.com	
  &	
  hRp://twiRer.com/RodKuhnKing	
  
8	
  LEVELS	
  AND	
  USES	
  OF	
  THE	
  VALUE	
  CHAIN	
  YACHT	
  
(Taxonomy	
  of	
  Problem-­‐Based	
  Strategy	
  &	
  Learning)	
  
Discover	
  and	
  Solve	
  Customer	
  Problems	
  BeDer,	
  Faster,	
  and	
  Cheaper	
  
Problem-­‐Based	
  Strategy	
  and	
  Learning	
  (PBSL)	
  Roadmap	
  	
  
Select/Reflect	
  on	
  a	
  Path	
  or	
  Program	
  for	
  Customer	
  Problem	
  Discovery	
  and	
  Solving	
  
	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  BUSINESS	
  MODEL	
  HIERARCHY	
  
	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  (Unit	
  of	
  Analysis/ReDesign)	
  
LEVEL	
  OF	
  PBSL	
  (Deliverable)	
  
Supersystem	
  
(Economy;	
  Macro-­‐
environment)	
  
Environment	
  
(Industry;	
  Market)	
  
System	
  
(Enterprise/Value	
  Chain;	
  
Product/Service)	
  
Visionary/
Conceptual	
  
Problem	
  
Solving	
  
(Pretotype)	
  
1.	
  PROBLEM	
  DISCOVERY	
  
2.	
  PROBLEM	
  ANALYSIS	
  
3.	
  IDEA	
  GENERATION/
EVALUATION	
  
Strategic	
  
Problem	
  
Solving	
  
(Prototype;	
  
Pilot)	
  
4.	
  BUSINESS	
  PROBLEM	
  
SOLVING	
  
5.	
  VALUE	
  CHAIN	
  
STRATEGY	
  
6.	
  BUSINESS	
  MODEL	
  
STRATEGY	
  
Tac<cal/	
  
Opera<onal	
  
Problem	
  
Solving	
  
(Full-­‐scale)	
  
7.	
  BUSINESS	
  MODEL	
  
EXECUTION	
  
Scenario	
  
Thinking	
  
8.	
  ECOSYSTEM	
  
EVOLUTION	
  
	
  
#VCYacht.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hRp://businessmodels.ning.com	
  &	
  hRp://twiRer.com/RodKuhnKing	
  
4	
  Problem	
  Archetypes	
  
Product/Market	
  Matrix	
  
	
  
#VCYacht.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hRp://businessmodels.ning.com	
  &	
  hRp://twiRer.com/RodKuhnKing	
  
	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  PROBLEM	
  
	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  (Market	
  Trade-­‐off/Size)	
  
	
  
SOLUTION	
  
(Product	
  Features)	
  
Known	
   Unknown	
  
Known	
   Simple	
  System	
  
(Tame;	
  
Closed;	
  
Well-­‐structured)	
  
	
  
Complex	
  System	
  
Unknown	
   Complicated	
  System	
   ChaoGc	
  System	
  
(Wicked;	
  
Open;	
  
Ill-­‐structured)	
  
 
The	
  TheoreGcal	
  Framework	
  of	
  
The	
  Value	
  Chain	
  Yacht	
  
Is	
  
HolisGc	
  Problem	
  Solving	
  (HPS)	
  
Which	
  Encapsulates	
  
Scien<fic	
  Problem	
  Solving	
  
HolisGc	
  Problem	
  Solving	
  (HPS)	
  has	
  3	
  Levels	
  
	
  
q  Visionary/Conceptual	
  Problem	
  Solving	
  
q  Strategic	
  Problem	
  Solving	
  
q  Tac<cal/Opera<onal	
  Problem	
  Solving	
  
 
A	
  Value	
  Chain	
  Yacht	
  
Is	
  
A	
  Diagram	
  That	
  Shows	
  
A	
  Chain	
  of	
  AcGviGes	
  
That	
  an	
  OrganizaGon	
  Uses	
  
To	
  Create,	
  Deliver,	
  and	
  Share	
  Value	
  
The	
  Value	
  Chain	
  Yacht	
  
Can	
  Be	
  Regarded	
  As	
  a	
  	
  
Means,	
  Vehicle,	
  Tool,	
  or	
  Holis<c	
  System	
  
for	
  Itera<vely	
  Pursuing	
  
Any	
  Mission,	
  Vision,	
  
Goal,	
  ObjecGve,	
  Strategy,	
  and/or	
  Target	
  
Especially	
  Under	
  CondiGons	
  of	
  
Great	
  Uncertainty	
  
The	
  Working	
  Space	
  of	
  a	
  Value	
  Chain	
  Yacht	
  
Is	
  
Divided	
  Into	
  3	
  Sec<ons:	
  
	
  
*	
  Problem	
  Space	
  (“Red	
  Ocean”):	
  
Where	
  currently	
  are	
  we?	
  
	
  
*	
  Method	
  Space	
  (“Vehicle”;	
  Strategy):	
  
How	
  must	
  we	
  get	
  there?	
  
	
  
*	
  SoluGon	
  Space	
  (“Blue	
  Ocean”):	
  
Where	
  must	
  we	
  go?	
  
 
	
  
	
  
	
  
RED	
  OCEAN	
  
BLUE	
  OCEAN	
  
SoluGon	
  
Gain:	
  (Un)Known	
  
Method	
  
	
  
#VCYacht.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hRp://businessmodels.ning.com	
  &	
  hRp://twiRer.com/RodKuhnKing	
  
Where	
  currently	
  
are	
  we?	
  
Where	
  must	
  we	
  
go?	
  
How	
  must	
  we	
  	
  	
  	
  
get	
  there?	
  
Problem	
  
Pain:	
  (Un)Known	
  
Industry/Market/Customer	
  Goal	
  (Job	
  To	
  Get	
  Done):	
  Improve	
  innova<on	
  and	
  performance	
  of	
  organiza<on	
  
 
	
  
	
  
	
  
RED	
  OCEAN	
  
BLUE	
  OCEAN	
  
SoluGon	
  
Gain:	
  (Un)Known	
  
Method	
  
	
  
#VCYacht.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hRp://businessmodels.ning.com	
  &	
  hRp://twiRer.com/RodKuhnKing	
  
Industry/Market/Customer	
  Goal	
  (Job	
  To	
  Get	
  Done):	
  Improve	
  innova<on	
  and	
  performance	
  of	
  organiza<on	
  
CURRENT	
  INNOVATION/PERFORMANCE	
   FUTURE	
  INNOVATION/PERFORMANCE	
  
Where	
  currently	
  
are	
  we?	
  
Where	
  must	
  we	
  
go?	
  
How	
  must	
  we	
  	
  	
  	
  
get	
  there?	
  
Problem	
  
Pain:	
  (Un)Known	
  
 
	
  
	
  
	
  
RED	
  OCEAN	
  
BLUE	
  OCEAN	
  
SoluGon	
  
Gain:	
  (Un)Known	
  
	
  
#VCYacht.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hRp://businessmodels.ning.com	
  &	
  hRp://twiRer.com/RodKuhnKing	
  
Industry/Market/Customer	
  Goal	
  (Job	
  To	
  Get	
  Done):	
  Improve	
  innova<on	
  and	
  performance	
  of	
  organiza<on	
  
Where	
  currently	
  
are	
  we?	
  
Where	
  must	
  we	
  
go?	
  
Problem	
  
Pain:	
  (Un)Known	
  
Method	
  CURRENT	
  INNOVATION/PERFORMANCE	
   FUTURE	
  INNOVATION/PERFORMANCE	
  
 
	
  
	
  
	
  
RED	
  OCEAN	
  
BLUE	
  OCEAN	
  
SoluGon	
  
Gain:	
  (Un)Known	
  
C$	
   R$	
  
P$	
  
VP	
  
+	
  -­‐	
  
	
  
#VCYacht.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hRp://businessmodels.ning.com	
  &	
  hRp://twiRer.com/RodKuhnKing	
  
Industry/Market/Customer	
  Goal	
  (Job	
  To	
  Get	
  Done):	
  Improve	
  innova<on	
  and	
  performance	
  of	
  organiza<on	
  
Where	
  currently	
  
are	
  we?	
  
Where	
  must	
  we	
  
go?	
  
Problem	
  
Pain:	
  (Un)Known	
  
CURRENT	
  INNOVATION/PERFORMANCE	
   FUTURE	
  INNOVATION/PERFORMANCE	
  
 
	
  
	
  
	
  
	
  
#VCYacht.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hRp://businessmodels.ning.com	
  &	
  hRp://twiRer.com/RodKuhnKing	
  
Industry/Market/Customer	
  Goal	
  (Job	
  To	
  Get	
  Done):	
  Improve	
  innova<on	
  and	
  performance	
  of	
  organiza<on	
  
RED	
  OCEAN	
  
BLUE	
  OCEAN	
  
SoluGon	
  
Gain:	
  (Un)Known	
  
C$	
   R$	
  
P$	
  
VP	
  
+	
  -­‐	
  
CURRENT	
  INNOVATION/PERFORMANCE	
   FUTURE	
  INNOVATION/PERFORMANCE	
  
Where	
  currently	
  
are	
  we?	
  
Where	
  must	
  we	
  
go?	
  
Problem	
  
Pain:	
  (Un)Known	
  
 
	
  
	
  
	
  
	
  
#VCYacht.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hRp://businessmodels.ning.com	
  &	
  hRp://twiRer.com/RodKuhnKing	
  
Industry/Market/Customer	
  Goal	
  (Job	
  To	
  Get	
  Done):	
  Improve	
  innova<on	
  and	
  performance	
  of	
  organiza<on	
  
Problem	
  
Pain:	
  (Un)Known	
  
RED	
  OCEAN	
  
BLUE	
  OCEAN	
  
SoluGon	
  
Gain:	
  (Un)Known	
  
C$	
   R$	
  
P$	
  
VP	
  
+	
  -­‐	
  
CURRENT	
  INNOVATION/PERFORMANCE	
   FUTURE	
  INNOVATION/PERFORMANCE	
  
 
	
  
	
  
	
  
	
  
#VCYacht.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hRp://businessmodels.ning.com	
  &	
  hRp://twiRer.com/RodKuhnKing	
  
Industry/Market/Customer	
  Goal	
  (Job	
  To	
  Get	
  Done):	
  Improve	
  innova<on	
  and	
  performance	
  of	
  organiza<on	
  
Problem	
  
Pain:	
  (Un)Known	
  
RED	
  OCEAN	
  
BLUE	
  OCEAN	
  
SoluGon	
  
Gain:	
  (Un)Known	
  
C$	
   R$	
  
P$	
  
VP	
  
+	
  -­‐	
  
Lack	
  of	
  shared	
  purpose,	
  
mission,	
  and	
  vision	
  
Emphasis	
  on	
  technical	
  
features	
  of	
  products	
  rather	
  
than	
  customer	
  experiences	
  
Thinking	
  in	
  
“silos”	
  
No	
  common	
  language	
  
or	
  framework	
  for	
  
facilitaXng	
  innovaXon	
  
UnarXculated	
  
values/culture	
  
Unclear	
  Business	
  
Model/Strategy	
  
CURRENT	
  INNOVATION/PERFORMANCE	
   FUTURE	
  INNOVATION/PERFORMANCE	
  
 
	
  
	
  
	
  
	
  
#QBE.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hRp://businessmodels.ning.com	
  &	
  hRp://twiRer.com/RodKuhnKing	
  
PROFIT	
  
(MARGIN)	
  
COST	
  
(STRUCTURE)	
  
REVENUE	
  
(STREAMS)	
  
Problem	
  
Pain:	
  (Un)Known	
  
RED	
  OCEAN	
  
BLUE	
  OCEAN	
  
SoluGon	
  
Gain:	
  (Un)Known	
  
Services	
  
Outbound	
  LogisGcs	
  
OperaGons	
  
Inbound	
  LogisGcs	
  
Procurement	
  
Technology	
  
Dev.	
  
HR	
  
Mngt.	
  
	
  
Firm	
  
Infra.	
  
	
  
Value	
  Engine	
  
(Proposi<on/Strategy)	
  
MarkeGng	
  &	
  Sales	
  
Industry/Market/Customer	
  Goal	
  (Job	
  To	
  Get	
  Done):	
  Improve	
  innova<on	
  and	
  performance	
  of	
  organiza<on	
  
Lack	
  of	
  shared	
  purpose,	
  
mission,	
  and	
  vision	
  
Emphasis	
  on	
  technical	
  
features	
  of	
  products	
  rather	
  
than	
  customer	
  experiences	
  
Thinking	
  in	
  
“silos”	
  
No	
  common	
  language	
  
or	
  framework	
  for	
  
facilitaXng	
  innovaXon	
  
UnarXculated	
  
values/culture	
  
Unclear	
  Business	
  
Model/Strategy	
  
CURRENT	
  INNOVATION/PERFORMANCE	
   FUTURE	
  INNOVATION/PERFORMANCE	
  
 
	
  
A	
  Value	
  System	
  Yacht	
  
Shows	
  
An	
  Extended	
  Value	
  Chain	
  
	
  From	
  Suppliers	
  	
  
Through	
  the	
  Value	
  Chain	
  Yacht	
  	
  
To	
  Customers	
  
 
	
  
	
  
	
  
	
  
#QBE.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hRp://businessmodels.ning.com	
  &	
  hRp://twiRer.com/RodKuhnKing	
  
Industry/Market/Customer	
  Goal	
  (Job	
  To	
  Get	
  Done):	
  ……………………………………………….………………………….	
  
PROFIT	
  
(MARGIN)	
  
COST	
  
(STRUCTURE)	
  
REVENUE	
  
(STREAMS)	
  
Problem	
  
Pain:	
  (Un)Known	
  
RED	
  OCEAN	
  
BLUE	
  OCEAN	
  
SoluGon	
  
Gain:	
  (Un)Known	
  
Services	
  
Outbound	
  LogisGcs	
  
OperaGons	
  
Inbound	
  LogisGcs	
  
Procurement	
  
Technology	
  
Dev.	
  
HR	
  
Mngt.	
  
	
  
Firm	
  
Infra.	
  
	
  
Value	
  Engine	
  
(Proposi<on/Strategy)	
  
MarkeGng	
  &	
  Sales	
  
Suppliers	
  
(Co-­‐creators)	
  
Customers	
  
	
  
 
	
  
	
  
	
  
	
  
#QBE.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hRp://businessmodels.ning.com	
  &	
  hRp://twiRer.com/RodKuhnKing	
  
Industry/Market/Customer	
  Goal	
  (Job	
  To	
  Get	
  Done):	
  ……………………………………………….………………………….	
  
PROFIT	
  
(MARGIN)	
  
COST	
  
(STRUCTURE)	
  
REVENUE	
  
(STREAMS)	
  
Problem	
  
Pain:	
  (Un)Known	
  
RED	
  OCEAN	
  
BLUE	
  OCEAN	
  
SoluGon	
  
Gain:	
  (Un)Known	
  
Services	
  
Outbound	
  LogisGcs	
  
OperaGons	
  
Inbound	
  LogisGcs	
  
Procurement	
  
Technology	
  
Dev.	
  
HR	
  
Mngt.	
  
	
  
Firm	
  
Infra.	
  
	
  
Value	
  Engine	
  
(Proposi<on/Strategy)	
  
MarkeGng	
  &	
  Sales	
  
Suppliers	
  
(Co-­‐creators)	
  
Customers	
  
	
  
New	
  
Entrants	
  
(Startups)	
  
Subs<-­‐
tutes	
  
(Incumbents)	
  
 
	
  
	
  
	
  
	
  
#QBE.	
  Dr.	
  Rod	
  King.	
  rodkuhnhking@gmail.com	
  &	
  hRp://businessmodels.ning.com	
  &	
  hRp://twiRer.com/RodKuhnKing	
  
Industry/Market/Customer	
  Goal	
  (Job	
  To	
  Get	
  Done):	
  ……………………………………………….………………………….	
  
PROFIT	
  
(MARGIN)	
  
COST	
  
(STRUCTURE)	
  
REVENUE	
  
(STREAMS)	
  
Problem	
  
Pain:	
  (Un)Known	
  
RED	
  OCEAN	
  
BLUE	
  OCEAN	
  
SoluGon	
  
Gain:	
  (Un)Known	
  
Services	
  
Outbound	
  LogisGcs	
  
OperaGons	
  
Inbound	
  LogisGcs	
  
MarkeGng	
  &	
  Sales	
  
Procurement	
  
Technology	
  
Dev.	
  
HR	
  
Mngt.	
  
	
  
Firm	
  
Infra.	
  
	
  
Value	
  Engine	
  
(Proposi<on/Strategy)	
  
New	
  
Entrants	
  
(Startups)	
  
Subs<-­‐
tutes	
  
(Incumbents)	
  
q  Provide	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  
customer	
  	
  	
  	
  	
  	
  	
  	
  
support/repairs	
  
q  Fulfill	
  orders	
  
q  Deliver	
  product/service	
  
q  Use	
  channels	
  (offline/online)	
  
q  Process/transform	
  inputs	
  (materials/info)	
  
q  Develop	
  product/service/business	
  model	
  
q  Discover/solve	
  customer	
  and	
  business	
  problems	
  
q  Receive	
  inputs	
  (materials/info)	
  
q  Warehouse	
  or	
  store	
  inputs	
  (materials/info)	
  
q  Manage/control	
  inventory	
  
q  Purchase	
  
inputs	
  
(materials/	
  
info)	
  
q  Conduct	
  	
  	
  	
  	
  	
  	
  	
  	
  
R	
  &	
  D	
  
q  Develop	
  
innovaXve/	
  	
  	
  	
  	
  
disrupXve	
  
technology	
  
q  Experiment	
  
with	
  	
  	
  
business	
  
model	
  
innovaXon	
  
q  Recruit/	
  	
  
Develop/	
  	
  	
  
Pay	
  Staff	
  
q  Manage	
  
business	
  
q  Acquire/	
  
Rent	
  infra’	
  
q  Engage/Acquire/Retain	
  
Customers	
  
q  Brand/AdverXse/Sell	
  
Suppliers	
  
(Co-­‐creators)	
  
Customers	
  
	
  
“Bad”	
  vs.	
  “Good”	
  Value	
  System	
  Yacht	
  
All	
  Failures	
  
In	
  Business	
  and	
  Life	
  
Are	
  the	
  Results	
  
Of	
  Using	
  	
  
“Bad”	
  Value	
  System	
  Yachts	
  
	
  
All	
  Successes	
  
In	
  Business	
  and	
  Life	
  
Are	
  the	
  Results	
  
Of	
  Using	
  	
  
“Good”	
  Value	
  System	
  Yachts	
  
	
  
 
	
  
	
  
	
  
“It’s	
  more	
  fun	
  to	
  be	
  a	
  pirate	
  than	
  to	
  join	
  the	
  navy."	
  
Problem	
  
Pain:	
  (Un)Known	
  
RED	
  OCEAN	
  
BLUE	
  OCEAN	
  
SoluGon	
  
Gain:	
  (Un)Known	
  

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The VALUE CHAIN (VC) YACHT: Discover and Solve Customer Problems Better, Faster, and Cheaper

  • 1.         Industry/Market/Customer  Goal  (Job  To  Get  Done):  ……………………………………………….………………………….   Problem   Pain:  (Un)Known   RED  OCEAN   BLUE  OCEAN   SoluGon   Gain:  (Un)Known   Method     #VCYacht.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hRp://businessmodels.ning.com  &  hRp://twiRer.com/RodKuhnKing  
  • 2.         Industry/Market/Customer  Goal  (Job  To  Get  Done):  ……………………………………………….………………………….   RED  OCEAN   BLUE  OCEAN   SoluGon   Gain:  (Un)Known   Method     #VCYacht.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hRp://businessmodels.ning.com  &  hRp://twiRer.com/RodKuhnKing   Where  currently   are  we?   Where  must  we   go?   How  must  we         get  there?   Problem   Pain:  (Un)Known  
  • 3.         Industry/Market/Customer  Goal  (Job  To  Get  Done):  ……………………………………………….………………………….   RED  OCEAN   BLUE  OCEAN   SoluGon   Gain:  (Un)Known   Method     #VCYacht.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hRp://businessmodels.ning.com  &  hRp://twiRer.com/RodKuhnKing   Where  currently   are  we?   Where  must  we   go?   Problem   Pain:  (Un)Known  
  • 4.         Industry/Market/Customer  Goal  (Job  To  Get  Done):  ……………………………………………….………………………….   RED  OCEAN   BLUE  OCEAN   SoluGon   Gain:  (Un)Known   Method     #VCYacht.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hRp://businessmodels.ning.com  &  hRp://twiRer.com/RodKuhnKing   Where  currently   are  we?   Where  must  we   go?   Problem   Pain:  (Un)Known  
  • 5.         Industry/Market/Customer  Goal  (Job  To  Get  Done):  ……………………………………………….………………………….   RED  OCEAN   BLUE  OCEAN   SoluGon   Gain:  (Un)Known   Method   System   Structure   Performance   Structure     #VCYacht.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hRp://businessmodels.ning.com  &  hRp://twiRer.com/RodKuhnKing   Where  currently   are  we?   Where  must  we   go?   Problem   Pain:  (Un)Known  
  • 6.         Industry/Market/Customer  Goal  (Job  To  Get  Done):  ……………………………………………….………………………….   Problem   Pain:  (Un)Known   RED  OCEAN   BLUE  OCEAN   SoluGon   Gain:  (Un)Known   Method   System   Structure   Performance   Structure     #VCYacht.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hRp://businessmodels.ning.com  &  hRp://twiRer.com/RodKuhnKing  
  • 7.         Industry/Market/Customer  Goal  (Job  To  Get  Done):  ……………………………………………….………………………….   Problem   Pain:  (Un)Known   RED  OCEAN   BLUE  OCEAN   SoluGon   Gain:  (Un)Known   C$   R$   P$   VP   +  -­‐     #VCYacht.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hRp://businessmodels.ning.com  &  hRp://twiRer.com/RodKuhnKing  
  • 8.           #VCYacht.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hRp://businessmodels.ning.com  &  hRp://twiRer.com/RodKuhnKing   Industry/Market/Customer  Goal  (Job  To  Get  Done):  ……………………………………………….………………………….   Problem   Pain:  (Un)Known   RED  OCEAN   BLUE  OCEAN   SoluGon   Gain:  (Un)Known   C$   R$   P$   VP   +  -­‐  
  • 9.           #VCYacht.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hRp://businessmodels.ning.com  &  hRp://twiRer.com/RodKuhnKing   Industry/Market/Customer  Goal  (Job  To  Get  Done):  ……………………………………………….………………………….   Problem   Pain:  (Un)Known   RED  OCEAN   BLUE  OCEAN   SoluGon   Gain:  (Un)Known   C$   R$   P$   VP   +  -­‐  
  • 10.           #VCYacht.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hRp://businessmodels.ning.com  &  hRp://twiRer.com/RodKuhnKing   Industry/Market/Customer  Goal  (Job  To  Get  Done):  ……………………………………………….………………………….   Problem   Pain:  (Un)Known   RED  OCEAN   BLUE  OCEAN   SoluGon   Gain:  (Un)Known   PROFIT   (MARGIN)   COST   (STRUCTURE)   REVENUE   (STREAMS)     Value  Engine   (Proposi<on/Strategy)  
  • 11.           #QBE.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hRp://businessmodels.ning.com  &  hRp://twiRer.com/RodKuhnKing   Industry/Market/Customer  Goal  (Job  To  Get  Done):  ……………………………………………….………………………….   PROFIT   (MARGIN)   COST   (STRUCTURE)   REVENUE   (STREAMS)   Problem   Pain:  (Un)Known   RED  OCEAN   BLUE  OCEAN   SoluGon   Gain:  (Un)Known   Services   Outbound  LogisGcs   OperaGons   Inbound  LogisGcs   Procurement   Technology   Dev.   HR   Mngt.     Firm   Infra.     Value  Engine   (Proposi<on/Strategy)   MarkeGng  &  Sales  
  • 12.           #QBE.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hRp://businessmodels.ning.com  &  hRp://twiRer.com/RodKuhnKing   Industry/Market/Customer  Goal  (Job  To  Get  Done):  ……………………………………………….………………………….   PROFIT   (MARGIN)   COST   (STRUCTURE)   REVENUE   (STREAMS)   Problem   Pain:  (Un)Known   RED  OCEAN   BLUE  OCEAN   SoluGon   Gain:  (Un)Known   Services   Outbound  LogisGcs   OperaGons   Inbound  LogisGcs   Procurement   Technology   Dev.   HR   Mngt.     Firm   Infra.     Value  Engine   (Proposi<on/Strategy)   MarkeGng  &  Sales  
  • 13.           #QBE.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hRp://businessmodels.ning.com  &  hRp://twiRer.com/RodKuhnKing   Industry/Market/Customer  Goal  (Job  To  Get  Done):  ……………………………………………….………………………….   PROFIT   (MARGIN)   COST   (STRUCTURE)   REVENUE   (STREAMS)   Problem   Pain:  (Un)Known   RED  OCEAN   BLUE  OCEAN   SoluGon   Gain:  (Un)Known   Services   Outbound  LogisGcs   OperaGons   Inbound  LogisGcs   Procurement   Technology   Dev.   HR   Mngt.     Firm   Infra.     Value  Engine   (Proposi<on/Strategy)   MarkeGng  &  Sales   Forces   Against   Forces       For   Trade-­‐off   Trade-­‐off  
  • 14.           #QBE.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hRp://businessmodels.ning.com  &  hRp://twiRer.com/RodKuhnKing   Industry/Market/Customer  Goal  (Job  To  Get  Done):  ……………………………………………….………………………….   PROFIT   (MARGIN)   COST   (STRUCTURE)   REVENUE   (STREAMS)   Problem   Pain:  (Un)Known   RED  OCEAN   BLUE  OCEAN   SoluGon   Gain:  (Un)Known   Services   Outbound  LogisGcs   OperaGons   Inbound  LogisGcs   Procurement   Technology   Dev.   HR   Mngt.     Firm   Infra.     Value  Engine   (Proposi<on/Strategy)   MarkeGng  &  Sales   S:   Strengths   O:   Opportuni-­‐ <es   W:   Weaknesses   T:   Threats   Trade-­‐off   Trade-­‐off  
  • 15. Value  Chain  Yacht   Discover  and  Solve  Customer  Problems  BeDer,  Faster,  and  Cheaper     IntroducGon   Today,  startups  as  well  as  established  organiza<ons  are  struggling  to  discover  and  solve  customer  problems  in  a  <mely  manner.                                     On  the  one  hand,  tools  such  as  brainstorming  and  lateral  thinking  are  rela<vely  simple  to  use  but  produce  low  quality  solu<ons.                                     On  the  other  hand,  tools  such  as  the  Six  Sigma  methodology,  Lean  Startup  method,  and  TRIZ  generate  high  quality  solu<ons  but  take                       a  long  <me  to  understand  and  effec<vely  apply.  Mastery  of  these  laUer  tools  is  also  <me-­‐consuming  and  expensive.     ObjecGve   The  Value  Chain  Yacht  is  designed  as  a  simple  customizable  worksheet  that  eliminates  the  trade-­‐off  of  Complexity  vs.  Quality  in  tools           such  as  brainstorming,  lateral  thinking,  TRIZ,  Six  Sigma  methodology,  and  the  Lean  Startup  method.  The  Value  Chain  (VC)  Yacht  can  be             considered  as  a  “Wisdomsourcing”  Board  for  collabora<vely  organizing  and  managing  ideas  while  rapidly  solving  customer  problems.     Delight   The  Value  Chain  Yacht  helps  people  to  beUer,  faster,  and  cheaper  solve  problems.  There  are  8  levels  of  proficiency  in  using  the  Value  Chain   (VC)    Yacht.  The  first  level  of  proficiency  focuses  on  use  of  the  VC  Yacht  as  a  problem  discovery  tool.  At  this  first  level,  the  VC  Yacht  can  be   learned  and  applied  within  30  minutes  especially  as  a  tool  for  visually  collec<ng  ideas  on  the  Voice  of  the  Customer.  At  the  eighth  level,     use      of  the  VC  Yacht  focuses  on  developing  ideas  on  the  evolu<on  of  business  model  ecosystems.  Use  of  the  VC  Yacht  at  intermediate   levels  ranges  from  product  innova<on,  value  chain  analysis,  industry  analysis,  business  model  innova<on  to  performance  management.     Procedure  (for  Level  1  of  the  Value  Chain  Yacht)   1.  Make  a  large  (A1  size)  printout  or  drawing  of  the  template  for  the  Value  Chain  (VC)  Yacht  and  place  it  on  a  table  or  wall.   2.  Write  out  a  descrip<on  of  the  Customer  Goal  or  “Job  To  Get  Done”.   3.  Describe  or  list  each  problem  (preferably  using  Post-­‐It  notes)  under  the  Problem  Space  or  “Red  Ocean”  on  lec  hand  side.   4.  Choose  the  most  important  problem.  (Why  is  the  selected  problem  regarded  as  the  most  important?  What  are  impacts  of  problem?)   5.  Generate,  under  the  Solu<on  Space  or  “Blue  Ocean”,  ideas  for  solving  the  most  important  problem.  (Hint:  Use  analogical  thinking.)   6.  Select  the  highest  quality  solu<on  that  can  be  rapidly  implemented  as  well  as  which  has  the  least  cost.     References   Kim,  W.C.;  Mauborgne,  R.  (2004)  Blue  Ocean  Strategy.  MassachuseUs:  Harvard  Business  Review  Press.         #VCYacht.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hRp://businessmodels.ning.com  &  hRp://twiRer.com/RodKuhnKing  
  • 16. ITENN  Level  4:  BUS.  PROBLEM  SOLVING   q  4  Elements  of  Good  Strategy   q  Six  Sigma  Methodology   q  Theory  of  Constraints   q  Customer  Dev.  Stack   q  Lean  Startup  Method   Level  5:  VALUE  CHAIN  STRATEGY   q  Value  Chain  (Analysis)   q  5  Forces;  Env.  Analysis   q  3  Generic  Strategies   q  DisrupGve  InnovaGon  Theory   q  Blue  Ocean  Strategy/Canvas   Level  1:  PROBLEM  DISCOVERY   q  Voice  of  the  Customer;  NPS   q  Trade-­‐offs;  SWOT  Analysis   q  Red  Ocean  Strategy  Canvas   q  4  Problem  Archetypes;  BUMP   q  Product/Market  Matrix   Level  7:  BUS.  MODEL  EXECUTION   q  HolisGc  System  Resources   q  Core  Competences   q  Resource-­‐Based  View   q  Balanced  Scorecard;  Kanban   q  Prototype/Pilot/Full  Scale   Level  8:  ECOSYSTEM  EVOLUTION   q  9  Windows  (MulGscreen)   q  Business  Model  Dashboard   q  Nested  S-­‐Curve;  WarGaming   q  Value  Network  EvoluGon   q  EvoluGon  of  Shared  Value   Level  2:  PROBLEM  ANALYSIS   q  5  Whys;  AnalyGcal  Hierarchy   q  Root-­‐cause  Analysis:  Fishbone   q  SIPOC  Process;  Pre-­‐mortem   q  Universal  System  Structure   q  FuncGonal  Analysis  Diagram   THE  VALUE  CHAIN  YACHT   o  Uses;  Areas  of  Applica<on   o  Associated  Concepts/Tools   o  Taxonomy  of  Tools  for   Problem  Finding  &  Solving   Level  3:  IDEA  GEN./EVALUATION   q  (Visual)  Brainstorming   q  E.R.I.C.  TacGcs  (“4  Ac<ons”)     q  SCAMPERR  Technique;  ASIT   q  TRIZ:  Ideal  Final  Result  (IFR)   q  Mission/Vision;  Pretotype   Level  6:  BUS.  MODEL  STRATEGY   q  Value  Net;  Lean  Canvas   q  Business  Model  Canvas/Env.   q  Business  Model  Storyboard   q  “SPARC”  Yacht/Framework   q  PESTLIED  Events  &  Trends     #VCYacht.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hRp://businessmodels.ning.com  &  hRp://twiRer.com/RodKuhnKing   8  LEVELS  AND  USES  OF  THE  VALUE  CHAIN  YACHT   (Taxonomy  of  Problem-­‐Based  Strategy  &  Learning)   Discover  and  Solve  Customer  Problems  BeDer,  Faster,  and  Cheaper  
  • 17. Problem-­‐Based  Strategy  and  Learning  (PBSL)  Roadmap     Select/Reflect  on  a  Path  or  Program  for  Customer  Problem  Discovery  and  Solving                        BUSINESS  MODEL  HIERARCHY                        (Unit  of  Analysis/ReDesign)   LEVEL  OF  PBSL  (Deliverable)   Supersystem   (Economy;  Macro-­‐ environment)   Environment   (Industry;  Market)   System   (Enterprise/Value  Chain;   Product/Service)   Visionary/ Conceptual   Problem   Solving   (Pretotype)   1.  PROBLEM  DISCOVERY   2.  PROBLEM  ANALYSIS   3.  IDEA  GENERATION/ EVALUATION   Strategic   Problem   Solving   (Prototype;   Pilot)   4.  BUSINESS  PROBLEM   SOLVING   5.  VALUE  CHAIN   STRATEGY   6.  BUSINESS  MODEL   STRATEGY   Tac<cal/   Opera<onal   Problem   Solving   (Full-­‐scale)   7.  BUSINESS  MODEL   EXECUTION   Scenario   Thinking   8.  ECOSYSTEM   EVOLUTION     #VCYacht.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hRp://businessmodels.ning.com  &  hRp://twiRer.com/RodKuhnKing  
  • 18. 4  Problem  Archetypes   Product/Market  Matrix     #VCYacht.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hRp://businessmodels.ning.com  &  hRp://twiRer.com/RodKuhnKing                                      PROBLEM                                                  (Market  Trade-­‐off/Size)     SOLUTION   (Product  Features)   Known   Unknown   Known   Simple  System   (Tame;   Closed;   Well-­‐structured)     Complex  System   Unknown   Complicated  System   ChaoGc  System   (Wicked;   Open;   Ill-­‐structured)  
  • 19.   The  TheoreGcal  Framework  of   The  Value  Chain  Yacht   Is   HolisGc  Problem  Solving  (HPS)   Which  Encapsulates   Scien<fic  Problem  Solving   HolisGc  Problem  Solving  (HPS)  has  3  Levels     q  Visionary/Conceptual  Problem  Solving   q  Strategic  Problem  Solving   q  Tac<cal/Opera<onal  Problem  Solving  
  • 20.   A  Value  Chain  Yacht   Is   A  Diagram  That  Shows   A  Chain  of  AcGviGes   That  an  OrganizaGon  Uses   To  Create,  Deliver,  and  Share  Value  
  • 21. The  Value  Chain  Yacht   Can  Be  Regarded  As  a     Means,  Vehicle,  Tool,  or  Holis<c  System   for  Itera<vely  Pursuing   Any  Mission,  Vision,   Goal,  ObjecGve,  Strategy,  and/or  Target   Especially  Under  CondiGons  of   Great  Uncertainty  
  • 22. The  Working  Space  of  a  Value  Chain  Yacht   Is   Divided  Into  3  Sec<ons:     *  Problem  Space  (“Red  Ocean”):   Where  currently  are  we?     *  Method  Space  (“Vehicle”;  Strategy):   How  must  we  get  there?     *  SoluGon  Space  (“Blue  Ocean”):   Where  must  we  go?  
  • 23.         RED  OCEAN   BLUE  OCEAN   SoluGon   Gain:  (Un)Known   Method     #VCYacht.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hRp://businessmodels.ning.com  &  hRp://twiRer.com/RodKuhnKing   Where  currently   are  we?   Where  must  we   go?   How  must  we         get  there?   Problem   Pain:  (Un)Known   Industry/Market/Customer  Goal  (Job  To  Get  Done):  Improve  innova<on  and  performance  of  organiza<on  
  • 24.         RED  OCEAN   BLUE  OCEAN   SoluGon   Gain:  (Un)Known   Method     #VCYacht.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hRp://businessmodels.ning.com  &  hRp://twiRer.com/RodKuhnKing   Industry/Market/Customer  Goal  (Job  To  Get  Done):  Improve  innova<on  and  performance  of  organiza<on   CURRENT  INNOVATION/PERFORMANCE   FUTURE  INNOVATION/PERFORMANCE   Where  currently   are  we?   Where  must  we   go?   How  must  we         get  there?   Problem   Pain:  (Un)Known  
  • 25.         RED  OCEAN   BLUE  OCEAN   SoluGon   Gain:  (Un)Known     #VCYacht.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hRp://businessmodels.ning.com  &  hRp://twiRer.com/RodKuhnKing   Industry/Market/Customer  Goal  (Job  To  Get  Done):  Improve  innova<on  and  performance  of  organiza<on   Where  currently   are  we?   Where  must  we   go?   Problem   Pain:  (Un)Known   Method  CURRENT  INNOVATION/PERFORMANCE   FUTURE  INNOVATION/PERFORMANCE  
  • 26.         RED  OCEAN   BLUE  OCEAN   SoluGon   Gain:  (Un)Known   C$   R$   P$   VP   +  -­‐     #VCYacht.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hRp://businessmodels.ning.com  &  hRp://twiRer.com/RodKuhnKing   Industry/Market/Customer  Goal  (Job  To  Get  Done):  Improve  innova<on  and  performance  of  organiza<on   Where  currently   are  we?   Where  must  we   go?   Problem   Pain:  (Un)Known   CURRENT  INNOVATION/PERFORMANCE   FUTURE  INNOVATION/PERFORMANCE  
  • 27.           #VCYacht.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hRp://businessmodels.ning.com  &  hRp://twiRer.com/RodKuhnKing   Industry/Market/Customer  Goal  (Job  To  Get  Done):  Improve  innova<on  and  performance  of  organiza<on   RED  OCEAN   BLUE  OCEAN   SoluGon   Gain:  (Un)Known   C$   R$   P$   VP   +  -­‐   CURRENT  INNOVATION/PERFORMANCE   FUTURE  INNOVATION/PERFORMANCE   Where  currently   are  we?   Where  must  we   go?   Problem   Pain:  (Un)Known  
  • 28.           #VCYacht.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hRp://businessmodels.ning.com  &  hRp://twiRer.com/RodKuhnKing   Industry/Market/Customer  Goal  (Job  To  Get  Done):  Improve  innova<on  and  performance  of  organiza<on   Problem   Pain:  (Un)Known   RED  OCEAN   BLUE  OCEAN   SoluGon   Gain:  (Un)Known   C$   R$   P$   VP   +  -­‐   CURRENT  INNOVATION/PERFORMANCE   FUTURE  INNOVATION/PERFORMANCE  
  • 29.           #VCYacht.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hRp://businessmodels.ning.com  &  hRp://twiRer.com/RodKuhnKing   Industry/Market/Customer  Goal  (Job  To  Get  Done):  Improve  innova<on  and  performance  of  organiza<on   Problem   Pain:  (Un)Known   RED  OCEAN   BLUE  OCEAN   SoluGon   Gain:  (Un)Known   C$   R$   P$   VP   +  -­‐   Lack  of  shared  purpose,   mission,  and  vision   Emphasis  on  technical   features  of  products  rather   than  customer  experiences   Thinking  in   “silos”   No  common  language   or  framework  for   facilitaXng  innovaXon   UnarXculated   values/culture   Unclear  Business   Model/Strategy   CURRENT  INNOVATION/PERFORMANCE   FUTURE  INNOVATION/PERFORMANCE  
  • 30.           #QBE.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hRp://businessmodels.ning.com  &  hRp://twiRer.com/RodKuhnKing   PROFIT   (MARGIN)   COST   (STRUCTURE)   REVENUE   (STREAMS)   Problem   Pain:  (Un)Known   RED  OCEAN   BLUE  OCEAN   SoluGon   Gain:  (Un)Known   Services   Outbound  LogisGcs   OperaGons   Inbound  LogisGcs   Procurement   Technology   Dev.   HR   Mngt.     Firm   Infra.     Value  Engine   (Proposi<on/Strategy)   MarkeGng  &  Sales   Industry/Market/Customer  Goal  (Job  To  Get  Done):  Improve  innova<on  and  performance  of  organiza<on   Lack  of  shared  purpose,   mission,  and  vision   Emphasis  on  technical   features  of  products  rather   than  customer  experiences   Thinking  in   “silos”   No  common  language   or  framework  for   facilitaXng  innovaXon   UnarXculated   values/culture   Unclear  Business   Model/Strategy   CURRENT  INNOVATION/PERFORMANCE   FUTURE  INNOVATION/PERFORMANCE  
  • 31.     A  Value  System  Yacht   Shows   An  Extended  Value  Chain    From  Suppliers     Through  the  Value  Chain  Yacht     To  Customers  
  • 32.           #QBE.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hRp://businessmodels.ning.com  &  hRp://twiRer.com/RodKuhnKing   Industry/Market/Customer  Goal  (Job  To  Get  Done):  ……………………………………………….………………………….   PROFIT   (MARGIN)   COST   (STRUCTURE)   REVENUE   (STREAMS)   Problem   Pain:  (Un)Known   RED  OCEAN   BLUE  OCEAN   SoluGon   Gain:  (Un)Known   Services   Outbound  LogisGcs   OperaGons   Inbound  LogisGcs   Procurement   Technology   Dev.   HR   Mngt.     Firm   Infra.     Value  Engine   (Proposi<on/Strategy)   MarkeGng  &  Sales   Suppliers   (Co-­‐creators)   Customers    
  • 33.           #QBE.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hRp://businessmodels.ning.com  &  hRp://twiRer.com/RodKuhnKing   Industry/Market/Customer  Goal  (Job  To  Get  Done):  ……………………………………………….………………………….   PROFIT   (MARGIN)   COST   (STRUCTURE)   REVENUE   (STREAMS)   Problem   Pain:  (Un)Known   RED  OCEAN   BLUE  OCEAN   SoluGon   Gain:  (Un)Known   Services   Outbound  LogisGcs   OperaGons   Inbound  LogisGcs   Procurement   Technology   Dev.   HR   Mngt.     Firm   Infra.     Value  Engine   (Proposi<on/Strategy)   MarkeGng  &  Sales   Suppliers   (Co-­‐creators)   Customers     New   Entrants   (Startups)   Subs<-­‐ tutes   (Incumbents)  
  • 34.           #QBE.  Dr.  Rod  King.  rodkuhnhking@gmail.com  &  hRp://businessmodels.ning.com  &  hRp://twiRer.com/RodKuhnKing   Industry/Market/Customer  Goal  (Job  To  Get  Done):  ……………………………………………….………………………….   PROFIT   (MARGIN)   COST   (STRUCTURE)   REVENUE   (STREAMS)   Problem   Pain:  (Un)Known   RED  OCEAN   BLUE  OCEAN   SoluGon   Gain:  (Un)Known   Services   Outbound  LogisGcs   OperaGons   Inbound  LogisGcs   MarkeGng  &  Sales   Procurement   Technology   Dev.   HR   Mngt.     Firm   Infra.     Value  Engine   (Proposi<on/Strategy)   New   Entrants   (Startups)   Subs<-­‐ tutes   (Incumbents)   q  Provide                       customer                 support/repairs   q  Fulfill  orders   q  Deliver  product/service   q  Use  channels  (offline/online)   q  Process/transform  inputs  (materials/info)   q  Develop  product/service/business  model   q  Discover/solve  customer  and  business  problems   q  Receive  inputs  (materials/info)   q  Warehouse  or  store  inputs  (materials/info)   q  Manage/control  inventory   q  Purchase   inputs   (materials/   info)   q  Conduct                   R  &  D   q  Develop   innovaXve/           disrupXve   technology   q  Experiment   with       business   model   innovaXon   q  Recruit/     Develop/       Pay  Staff   q  Manage   business   q  Acquire/   Rent  infra’   q  Engage/Acquire/Retain   Customers   q  Brand/AdverXse/Sell   Suppliers   (Co-­‐creators)   Customers    
  • 35. “Bad”  vs.  “Good”  Value  System  Yacht   All  Failures   In  Business  and  Life   Are  the  Results   Of  Using     “Bad”  Value  System  Yachts     All  Successes   In  Business  and  Life   Are  the  Results   Of  Using     “Good”  Value  System  Yachts    
  • 36.         “It’s  more  fun  to  be  a  pirate  than  to  join  the  navy."   Problem   Pain:  (Un)Known   RED  OCEAN   BLUE  OCEAN   SoluGon   Gain:  (Un)Known