Business DNA Model, Balanced Scorecard, and Strategy Map: A Visual Mathematical Synthesis
47
Business DNA Model Comprehensively Visualize, Organize, and Understand the DNA of a Business Model #1APEX. Dr. Rod King. [email protected] & h@p://businessmodels.ning.com & h@p://[email protected]/RodKuhnKing BUSINESS MODEL (Value Prop.) Why? Strategy How? What? HowWhatWhy Learning Circles
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Transcript of Business DNA Model, Balanced Scorecard, and Strategy Map: A Visual Mathematical Synthesis
Business DNA Model Comprehensively Visualize, Organize, and Understand the DNA of a Business Model
#1APEX. Dr. Rod King. [email protected] & h@p://businessmodels.ning.com & h@p://[email protected]/RodKuhnKing
BUSINESS MODEL (Value Prop.)
Why?
Strategy
How? What?
How-‐What-‐Why Learning Circles
Business DNA Model Comprehensively Visualize, Organize, and Understand the DNA of a Business Model
#1APEX. Dr. Rod King. [email protected] & h@p://businessmodels.ning.com & h@p://[email protected]/RodKuhnKing
BUSINESS MODEL (Value Prop.)
PRODUCT (Solu>on)
MARKET (Problem/Trade-‐off)
FINANCE (Value)
How? What?
Why?
Strategy
How-‐What-‐Why Learning Circles
Business DNA Model Comprehensively Visualize, Organize, and Understand the DNA of a Business Model
#1APEX. Dr. Rod King. [email protected] & h@p://businessmodels.ning.com & h@p://[email protected]/RodKuhnKing
BUSINESS MODEL (Value Prop.)
PRODUCT (Solu>on)
MARKET (Problem/Trade-‐off)
FINANCE (Value)
How? What?
Why?
Strategy
D N
AHow-‐What-‐Why Learning Circles
Business DNA Model Comprehensively Visualize, Organize, and Understand the DNA of a Business Model
#1APEX. Dr. Rod King. [email protected] & h@p://businessmodels.ning.com & h@p://[email protected]/RodKuhnKing
BUSINESS MODEL (Value Prop.)
PRODUCT (Solu>on)
FINANCE (Value)
D: Design N: Needs
A: AspiraKons
Strategy
MARKET (Problem/Trade-‐off)
Design-‐Needs-‐Aspira>ons (D-‐N-‐A) Learning Circles
Business DNA Model Comprehensively Visualize, Organize, and Understand the DNA of a Business Model
#1APEX. Dr. Rod King. [email protected] & h@p://businessmodels.ning.com & h@p://[email protected]/RodKuhnKing
Value Engine: Value Capture
BUSINESS MODEL (Value Prop.)
PRODUCT (Solu>on)
FINANCE (Value)
D: Design N: Needs
A: AspiraKons
Strategy
MARKET (Problem/Trade-‐off)
Enterprise Engine: Value CreaGon (Supply Infra’)
Customer Growth Engine: Value Delivery (Demand Infra’)
Business DNA Model Comprehensively Visualize, Organize, and Understand the DNA of a Business Model
#1APEX. Dr. Rod King. [email protected] & h@p://businessmodels.ning.com & h@p://[email protected]/RodKuhnKing
Value Engine: Value Capture
BUSINESS MODEL (Value Prop.)
PRODUCT (Solu>on)
FINANCE (Value)
Cost (Structure)
Revenue (Streams);
DifferenGaGon
Product-‐Market Fit
D: Design N: Needs
A: AspiraKons
Strategy
MARKET (Problem/Trade-‐off)
Enterprise Engine: Value CreaGon (Supply Infra’)
Customer Growth Engine: Value Delivery (Demand Infra’)
Business DNA Model Minimum Viable Perspec1ves (MVPs) for Business Model and Strategy Performance Management:
The Balanced Scorecard and Strategy Map
#1APEX. Dr. Rod King. [email protected] & h@p://businessmodels.ning.com & h@p://[email protected]/RodKuhnKing
q Learning and Growth Perspec>ve
q Process Perspec>ve
q Customer Perspec>ve
q Financial Perspec>ve
BUSINESS MODEL (Value Prop.)
D: Design N: Needs
A: AspiraKons
Strategy
Business DNA Template Comprehensively Visualize, Organize, and Understand the DNA of a Business Model
#1APEX. Dr. Rod King. [email protected] & h@p://businessmodels.ning.com & h@p://[email protected]/RodKuhnKing
Enterprise Engine: Value CreaGon (Supply Infra’)
Customer Growth Engine: Value Delivery (Demand Infra’)
Value Engine: Value Capture
BUSINESS MODEL (Value Prop.)
PRODUCT (Solu>on)
FINANCE (Value)
Cost (Structure)
Revenue (Streams);
DifferenGaGon
Product-‐Market Fit
Strategy
Business DNA Model
MARKET (Problem/Trade-‐off)
Business DNA Template Comprehensively Visualize, Organize, and Understand the DNA of a Business Model
#1APEX. Dr. Rod King. [email protected] & h@p://businessmodels.ning.com & h@p://[email protected]/RodKuhnKing
Enterprise Engine: Value CreaGon (Supply Infra’)
Customer Growth Engine: Value Delivery (Demand Infra’)
Value Engine: Value Capture
BUSINESS MODEL (Value Prop.)
PRODUCT (Solu>on)
FINANCE (Value)
Cost (Structure)
Revenue (Streams);
DifferenGaGon
Product-‐Market Fit
Strategy
Business DNA Model
MARKET (Problem/Trade-‐off)
Business DNA Template Comprehensively Visualize, Organize, and Understand the DNA of a Business Model
#1APEX. Dr. Rod King. [email protected] & h@p://businessmodels.ning.com & h@p://[email protected]/RodKuhnKing
Enterprise Engine: Value CreaGon (Supply Infra’)
Customer Growth Engine: Value Delivery (Demand Infra’)
Value Engine: Value Capture
PRODUCT (Solu>on)
FINANCE (Value)
Cost (Structure)
Revenue (Streams);
DifferenGaGon
Product-‐Market Fit
Business DNA Model
MARKET (Problem/Trade-‐off)
Business DNA Template Comprehensively Visualize, Organize, and Understand the DNA of a Business Model
#1APEX. Dr. Rod King. [email protected] & h@p://businessmodels.ning.com & h@p://[email protected]/RodKuhnKing
PRODUCT (Solu>on)
FINANCE (Value)
Cost (Structure)
Revenue (Streams);
DifferenGaGon
Product-‐Market Fit
Business DNA Model
MARKET (Problem/Trade-‐off)
Business DNA Template Comprehensively Visualize, Organize, and Understand the DNA of a Business Model
#1APEX. Dr. Rod King. [email protected] & h@p://businessmodels.ning.com & h@p://[email protected]/RodKuhnKing
PRODUCT (Solu>on)
FINANCE (Value)
Business DNA Model
MARKET (Problem/Trade-‐off)
Business DNA Template Comprehensively Visualize, Organize, and Understand the DNA of a Business Model
#1APEX. Dr. Rod King. [email protected] & h@p://businessmodels.ning.com & h@p://[email protected]/RodKuhnKing
Business DNA Model
Business DNA Template Comprehensively Visualize, Organize, and Understand the DNA of a Business Model
#1APEX. Dr. Rod King. [email protected] & h@p://businessmodels.ning.com & h@p://[email protected]/RodKuhnKing
Business DNA Model
(Suppliers)
(Customers)
Business DNA Template Comprehensively Visualize, Organize, and Understand the DNA of a Business Model
#1APEX. Dr. Rod King. [email protected] & h@p://businessmodels.ning.com & h@p://[email protected]/RodKuhnKing
INDUSTRY (Ecosystem)
Business DNA Model (Suppliers) (Customers)
Business DNA Template Comprehensively Visualize, Organize, and Understand the DNA of a Business Model
#1APEX. Dr. Rod King. [email protected] & h@p://businessmodels.ning.com & h@p://[email protected]/RodKuhnKing
INDUSTRY (Ecosystem)
Business DNA Model (Suppliers) (Customers)
Business DNA Template Comprehensively Visualize, Organize, and Understand the DNA of a Business Model
#1APEX. Dr. Rod King. [email protected] & h@p://businessmodels.ning.com & h@p://[email protected]/RodKuhnKing
Business DNA Model
INDUSTRY (Ecosystem)
(Suppliers) (Customers)
Business DNA Template Comprehensively Visualize, Organize, and Understand the DNA of a Business Model
#1APEX. Dr. Rod King. [email protected] & h@p://businessmodels.ning.com & h@p://[email protected]/RodKuhnKing
GLOBAL ENVIRONMENT
Business DNA Model
INDUSTRY (Ecosystem)
(Suppliers) (Customers)
Business DNA Template Comprehensively Visualize, Organize, and Understand the DNA of a Business Model
#1APEX. Dr. Rod King. [email protected] & h@p://businessmodels.ning.com & h@p://[email protected]/RodKuhnKing
GLOBAL ENVIRONMENT
Business DNA Model
P.E.S.T.L.I.E.D. Trends
INDUSTRY (Ecosystem)
(Suppliers) (Customers)
Business DNA Template Comprehensively Visualize, Organize, and Understand the DNA of a Business Model
GLOBAL ENVIRONMENT
Business DNA Model
P.E.S.T.L.I.E.D. Trends
D N
A
INDUSTRY (Ecosystem)
(Suppliers) (Customers)
Business DNA Template Comprehensively Visualize, Organize, and Understand the DNA of a Business Model
GLOBAL ENVIRONMENT
Business DNA Model
P.E.S.T.L.I.E.D. Trends
How? What?
Why?
D N
A
INDUSTRY (Ecosystem)
(Suppliers) (Customers)
Business DNA Template Comprehensively Visualize, Organize, and Understand the DNA of a Business Model
GLOBAL ENVIRONMENT
Business DNA Model
P.E.S.T.L.I.E.D. Trends
Design Needs
AspiraKons
D N
A
INDUSTRY (Ecosystem)
(Suppliers) (Customers)
Business DNA Template Comprehensively Visualize, Organize, and Understand the DNA of a Business Model
GLOBAL ENVIRONMENT
Business DNA Model
Design Needs
AspiraKons
D N
A
INDUSTRY (Ecosystem)
Business DNA Template Comprehensively Visualize, Organize, and Understand the DNA of a Business Model
GLOBAL ENVIRONMENT
Business DNA Model
Design Needs
AspiraKons
D N
AWhy sa>sfy customer needs?
What are customer needs or Job To Get Done?
How to sa>sfy customer needs?
INDUSTRY (Ecosystem)
Business DNA Template Comprehensively Visualize, Organize, and Understand the DNA of a Business Model
GLOBAL ENVIRONMENT
Business DNA Model
Design Needs
AspiraKons
D N
AWhy sa>sfy customer needs?
What are customer needs or Job To Get Done?
How to sa>sfy customer needs? What is trade-‐off or compeGGve advantage?
What are costs & revenues (benefits)?
What are impacts on environment?
INDUSTRY (Ecosystem)
RED OCEAN
BLUE OCEAN
Where currently are you? Where must you go?
How should you get there?
1-‐Page AdapKve Planning & ExecuKon (APEX) Evolu1on of Business DNA from Red Ocean to Blue Ocean
Present D-‐N-‐A: Reality/Problem
Future D-‐N-‐A: Scenario/SoluGon
Ø Hypotheses/Guesses (External/Internal)
Ø Reality/Facts (External & Internal)
RED OCEAN
BLUE OCEAN
Where currently are you? Where must you go?
How should you get there?
1-‐Page AdapKve Planning & ExecuKon (APEX) Evolu1on of Business DNA from Red Ocean to Blue Ocean
Present D-‐N-‐A: Reality/Problem
Future D-‐N-‐A: Scenario/SoluGon
E: Executor
O: Observer
O: Orienter
D: Decider
APEX
Team
(Sim
plified
OODE
Loo
p)
Ø Hypotheses/Guesses (External/Internal)
Ø Reality/Facts (External & Internal)
RED OCEAN
BLUE OCEAN
Where currently are you? Where must you go?
How should you get there?
Ø Hypotheses/Guesses q Core Purpose/Mission q Vision q Core Values q Goal: Blue Ocean Success q ObjecKves/ “Jobs-‐To-‐Get Done” (Physical/Intellectual/ Emo>onal/Spiritual)
1-‐Page AdapKve Planning & ExecuKon (APEX) Evolu1on of Business DNA from Red Ocean to Blue Ocean
Business DNA Resources/ Value Factors & Proposi>on q S: Strengths (1-‐10) q W: Weaknesses (1-‐10) q O: OpportuniKes (1-‐10) q T: Threats (1-‐10)
Ø Reality/Facts (External & Internal)
E: Executor
O: Observer
O: Orienter
D: Decider
APEX
Team
(Sim
plified
OODE
Loo
p)
Present D-‐N-‐A: Reality/Problem
Future D-‐N-‐A: Scenario/SoluGon
RED OCEAN
BLUE OCEAN
Where currently are you? Where must you go?
How should you get there?
1-‐Page AdapKve Planning & ExecuKon (APEX) Evolu1on of Business DNA from Red Ocean to Blue Ocean
Business DNA Resources/ Value Factors & Proposi>on q S: Strengths (1-‐10) q W: Weaknesses (1-‐10) q O: OpportuniKes (1-‐10) q T: Threats (1-‐10)
q APEX Strategy/TacKcs/Targets -‐ Minimize Weaknesses/Threats/ Pain/Risks/Disadvantages -‐ Maximize Strengths/OpportuniKes/
Delight/Rewards/Advantages -‐ Rapidly Experiment & Learn (4 Heuris>cs): • OODA: Observe SWOT; Orient; Decide; Act • BML: Build-‐Measure-‐Learn Loop • ARONP: Ac>on; Risk Minimiza>on;
Opportunity Maximiza>on; Networking; Pilo>ng
• ERIC (R.O.D. DisrupKon): Eliminate; Reduce; Increase; Create
E: Executor
O: Observer
O: Orienter
D: Decider
APEX
Team
(Sim
plified
OODE
Loo
p)
Present D-‐N-‐A: Reality/Problem
Future D-‐N-‐A: Scenario/SoluGon
Ø Hypotheses/Guesses q Core Purpose/Mission q Vision q Core Values q Goal: Blue Ocean Success q ObjecKves/ “Jobs-‐To-‐Get Done” (Physical/Intellectual/ Emo>onal/Spiritual)
Ø Reality/Facts (External & Internal)
Appendix 1
Business DNA Model for Classic iPod “A Thousand Songs in Your Pocket”
#1APEX. Dr. Rod King. [email protected] & h@p://businessmodels.ning.com & h@p://[email protected]/RodKuhnKing
Value Engine: Value Capture
BUSINESS MODEL (Value Prop.)
PRODUCT (Solu>on)
FINANCE (Value)
Cost (Structure)
Revenue (Streams);
DifferenGaGon
Product-‐Market Fit
D: Design N: Needs
A: AspiraKons
Strategy
Listen to Music
iPod
Walkman
(Detractors)
MARKET (Problem/Trade-‐off)
Enterprise Engine: Value CreaGon (Supply Infra’)
Customer Growth Engine: Value Delivery (Demand Infra’)
Business DNA Model for Classic iPod “A Thousand Songs in Your Pocket”
#1APEX. Dr. Rod King. [email protected] & h@p://businessmodels.ning.com & h@p://[email protected]/RodKuhnKing
BUSINESS MODEL (Value Prop.)
PRODUCT (Solu>on)
FINANCE (Value)
Cost (Structure)
Revenue (Streams);
DifferenGaGon
Product-‐Market Fit
D: Design N: Needs
A: AspiraKons
Strategy
Listen to Music
iPod
Walkman
(Detractors) q Learning and Growth
Perspec>ve q Process Perspec>ve q Customer Perspec>ve
q Financial Perspec>ve
MARKET (Problem/Trade-‐off)
Business DNA Model for VisionaryD “Rapidly Improve Business Model Agility”
#1APEX. Dr. Rod King. [email protected] & h@p://businessmodels.ning.com & h@p://[email protected]/RodKuhnKing
Value Engine: Value Capture
BUSINESS MODEL (Value Prop.)
PRODUCT (Solu>on)
FINANCE (Value)
Cost (Structure)
Revenue (Streams);
DifferenGaGon
Product-‐Market Fit
D: Design N: Needs
A: AspiraKons
Strategy
Google Search
VisionaryD (Detractors)
MARKET (Problem/Trade-‐off)
Enterprise Engine: Value CreaGon (Supply Infra’)
Customer Growth Engine: Value Delivery (Demand Infra’)
Simpler, Faster, Cheaper Processes
Business DNA Model for VisionaryD “Rapidly Improve Business Model Agility”
#1APEX. Dr. Rod King. [email protected] & h@p://businessmodels.ning.com & h@p://[email protected]/RodKuhnKing
BUSINESS MODEL (Value Prop.)
PRODUCT (Solu>on)
FINANCE (Value)
Cost (Structure)
Revenue (Streams);
DifferenGaGon
Product-‐Market Fit
D: Design N: Needs
A: AspiraKons
Strategy
Google Search
VisionaryD (Detractors) q Learning and Growth
Perspec>ve q Process Perspec>ve q Customer Perspec>ve
q Financial Perspec>ve
MARKET (Problem/Trade-‐off)
Simpler, Faster, Cheaper Processes
Appendix 2
#PMYacht. Dr. Rod King. [email protected] & h@p://businessmodels.ning.com & h@p://[email protected]/RodKuhnKing
Business DNA Big Hairy Audacious Goal (BHAG): ………………………………………………………………..………………….………………………….
RED OCE
AN BLU
E OCEAN
COST (Pain)
REVENUE (Delight; Benefit)
VALUE (Un/Happiness; PROFIT)
Processes/ AcKviKes
Internal Resources
Inputs/ Partners
Channels & RelaKon-‐ ships
Product/ Service
Customer Segments
Present D-‐N-‐A: Reality/Problem
Future D-‐N-‐A: Scenario/SoluGon
(Habits/Tasks)
ENVIRON-‐MENT
A: AspiraKons
q Customer Perspec>ve
q Financial Perspec>ve
q Process Perspec>ve
q Learning & Growth
Perspec>ve
Appendix 3
Non-‐Business DNA Model Comprehensively Visualize, Organize, and Understand the DNA of a Business Model
#1APEX. Dr. Rod King. [email protected] & h@p://businessmodels.ning.com & h@p://[email protected]/RodKuhnKing
Value Engine: Value Capture
PRODUCT (Solu>on)
FINANCE (Value)
D: Design N: Needs
A: AspiraKons
MARKET (Problem/Trade-‐off)
Enterprise Engine: Value CreaGon (Supply Infra’)
Customer Growth Engine: Value Delivery (Demand Infra’)
Non-‐Business DNA Model Comprehensively Visualize, Organize, and Understand the DNA of a Business Model
#1APEX. Dr. Rod King. [email protected] & h@p://businessmodels.ning.com & h@p://[email protected]/RodKuhnKing
Value Engine: Value Capture
PRODUCT (Solu>on)
FINANCE (Value)
D: Design N: Needs
A: AspiraKons
MARKET (Problem/Trade-‐off)
Enterprise Engine: Value CreaGon (Supply Infra’)
Customer Growth Engine: Value Delivery (Demand Infra’)
(Detractors)
#1APEX. Dr. Rod King. [email protected] & h@p://businessmodels.ning.com & h@p://[email protected]/RodKuhnKing
Non-‐living DNA Model
Non-‐Business DNA Model Comprehensively Visualize, Organize, and Understand the DNA of a Business Model
Value Engine: Value Capture
PRODUCT (Solu>on)
FINANCE (Value)
MARKET (Problem/Trade-‐off)
Enterprise Engine: Value CreaGon (Supply Infra’)
Customer Growth Engine: Value Delivery (Demand Infra’)
(Detractors)
#1APEX. Dr. Rod King. [email protected] & h@p://businessmodels.ning.com & h@p://[email protected]/RodKuhnKing
Non-‐living DNA Model
Non-‐Business DNA Model Comprehensively Visualize, Organize, and Understand the DNA of a Business Model
Value Engine: Value Capture
PRODUCT (Solu>on)
FINANCE (Value)
MARKET (Problem/Trade-‐off)
Enterprise Engine: Value CreaGon (Supply Infra’)
Customer Growth Engine: Value Delivery (Demand Infra’)
D
A
(Detractors)
N
Appendix 4
Business DNA Template for “Porter’s 5 Forces” Comprehensively Visualize, Organize, and Understand the DNA of a Business Model
GLOBAL ENVIRONMENT
P.E.S.T.L.I.E.D. Trends
Design Needs
AspiraKons
D N
A
INDUSTRY (Ecosystem)
(Suppliers) (Customers)
Business DNA Template for “Value Net” Comprehensively Visualize, Organize, and Understand the DNA of a Business Model
GLOBAL ENVIRONMENT
P.E.S.T.L.I.E.D. Trends
Design Needs
AspiraKons
D N
A
INDUSTRY (Ecosystem)
(Suppliers) (Customers)
Appendix 5
Business DNA Template for the Business Model Canvas Collabora1vely and Fractally Building the “Infinite Business Library (IBL)”
#1APEX. Dr. Rod King. [email protected] & h@p://businessmodels.ning.com & h@p://[email protected]/RodKuhnKing
PRODUCT (Solu>on)
FINANCE (Value)
Cost (Structure)
Revenue (Streams);
DifferenGaGon
Business DNA Model
MARKET (Problem/Trade-‐off)
BUSINESS MODEL (Value Prop.)
Product-‐Market Fit
Strategy
D N
A
Key Partners
Key AcKviKes
Key Resources
Customer Rel.
Channels
Customer Segments
Business DNA Template for the Lean Canvas Collabora1vely and Fractally Building the “Infinite Business Library (IBL)”
#1APEX. Dr. Rod King. [email protected] & h@p://businessmodels.ning.com & h@p://[email protected]/RodKuhnKing
Cost (Structure)
Revenue (Streams);
DifferenGaGon
Business DNA Model
BUSINESS MODEL (Value Prop.)
D N
A
Channels
Customer Segments
PRODUCT (SoluKon)
MARKET (Problem/Trade-‐off)
Key Metrics
Unfair Advantage
