Visually Integrating Porter’s 5 Forces of Competition with the Business Model Canvas_rod_king

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ENVIRONMENT Global Business Model (GBM) Canvas: Bird’s Eye View Business Model Canvas Business Model Canvas & Environment The Above “Global Business Model (GBM) Canvas” is adapted from the Business Model Canvas (www.businessmodelgeneraEon.com ) and Is Licensed under the CreaEve Commons AIribuEonShareAlike 3.0 Unported License

description

The Business Model Canvas is a tool that illustrates how a business creates and delivers value as well as makes money. However, a Business Model Canvas presents a worm’s eye view of a business so that the context or Environment is not shown on the Business Model Canvas. Nevertheless, the Business Model Canvas (worm’s eye view) and Business Model Environment (bird’s eye view) can be presented on a single page; see page 201 of the book, “Business Model Generation” by Alexander Osterwalder and Yves Pigneur. In describing the Business Model Environment of the Business Model Canvas, the literature has focused on 4 “Global Forces” of the Macro-Environment: Industry Ecosystem (IE); Market Ecosystem (ME); Key Trends & Complementors (KTC); Macro-Economic Influencers (MEI). However, we have yet to come across a one-page worksheet that simultaneously illustrates the Business Model Canvas and Business Model Environment. Consequently, some people find it difficult to concurrently analyze the fitness between a business model and its environment. This presentation (http://goo.gl/1uinUW) uniquely presents a modular worksheet that contains the Business Model Canvas and Business Model Environment. Consequently, one can simultaneously analyze a business model and its global environment especially with a view to determining environmental fitness of a business model. Although its boundaries are fluid, the Business Model Environment largely acts as a constraint to the growth of a business model. According to “Constructionists,” a Business Model Environment mostly determines whether a nascent business model thrives or dies. However, “Reconstructionists” such as Blue Ocean Strategists believe that a Blue Ocean business model can create an uncontested market space and subsequently, redefine market boundaries and industries that make competitors irrelevant. To determine the chances of a business model thriving or dying in an existing industry (Red Ocean), it’s imperative to analyze industry attractiveness especially using Porter’s 5 Forces of Competition or “Industry Forces.” Industry Attractiveness Analysis can be enhanced by combining the diagram for Porter’s 5 Forces and the Business Model Canvas. Such an integrated diagram can be used to determine the competitive advantage of a business model. In the presentation below, a diagram is presented which seamlessly integrates Porter’s 5 Forces and the Business Model Canvas. The resulting one-page modular worksheet is referred to as the Global Business Model (GBM) Canvas. Note that GBM Canvas also refers to the one-page modular worksheet that combines the 4 Global Forces with the Business Model Canvas. The objective of a GBM Canvas is to provide a single page that facilitates seeing both the big picture and details of a business model. In summary, the GBM Canvas facilitates comprehensive internal and external analyses of a business model.

Transcript of Visually Integrating Porter’s 5 Forces of Competition with the Business Model Canvas_rod_king

Page 1: Visually Integrating Porter’s 5 Forces of Competition with the Business Model Canvas_rod_king

ENVIRONMENT  

Global  Business  Model  (GBM)  Canvas:  Bird’s  Eye  View  

Business  Model  Canvas  

Business  Model  Canvas  &  Environment  

The  Above  “Global  Business  Model  (GBM)  Canvas”  is  adapted  from  the  Business  Model  Canvas  (www.businessmodelgeneraEon.com)  and  Is  Licensed  under  the  CreaEve  Commons  AIribuEon-­‐ShareAlike  3.0  Unported  License  

Page 2: Visually Integrating Porter’s 5 Forces of Competition with the Business Model Canvas_rod_king

Global  Business  Model  (GBM)  Canvas:  Worm’s  Eye  View   Business  Model  Canvas  

Source:  Business  Model  Canvas  (www.businessmodelgeneraEon.com)  and  Is  Licensed  under  the  CreaEve  Commons  AIribuEon-­‐ShareAlike  3.0  Unported  License  

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ENVIRONMENT  

Global  Business  Model  (GBM)  Canvas:  Eagle’s  Eye  View   Business  Model  Canvas  &  Environment  

The  Above  “Global  Business  Model  (GBM)  Canvas”  is  adapted  from  the  Business  Model  Canvas  (www.businessmodelgeneraEon.com)  and  Is  Licensed  under  the  CreaEve  Commons  AIribuEon-­‐ShareAlike  3.0  Unported  License  

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W:  W

EAKN

ESSES  (-­‐)  

S:  STR

ENGTH

S  (+)  

O:  OPPORTUNITIES  (+)  

T:  THREATS  (-­‐)  The  Above  “Global  Business  Model  (GBM)  Canvas”  is  adapted  from  the  Business  Model  Canvas  (www.businessmodelgeneraEon.com)  

and  Is  Licensed  under  the  CreaEve  Commons  AIribuEon-­‐ShareAlike  3.0  Unported  License  

Global  Business  Model  (GBM)  Canvas:  Eagle’s  Eye  View   Business  Model  Canvas  &  Global  Environment  (Value  &  SWOT  Analysis)  

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E:  Elim

inate  

I:  Increase  

C:  Create  

R:  Reduce  The  Above  “Global  Business  Model  (GBM)  Canvas”  is  adapted  from  the  Business  Model  Canvas  (www.businessmodelgeneraEon.com)  

and  Is  Licensed  under  the  CreaEve  Commons  AIribuEon-­‐ShareAlike  3.0  Unported  License  

Global  Business  Model  (GBM)  Canvas:  Eagle’s  Eye  View   Business  Model  Canvas  &  Global  Environment  (“E.R.I.C.”  Value  Innova<on  Tac<cs)  

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Indu

stry  Ecosystem

 (IE):  Sup

ply  

Market  E

cosystem

 (ME):  D

eman

d  

Key  Trends  &  Complementors  (KTC):  PESTLIED  (-­‐/+)  

Macro-­‐Economic  Influencers  (MEI):  Global  Economy  The  Above  “Global  Business  Model  (GBM)  Canvas”  is  adapted  from  the  Business  Model  Canvas  (www.businessmodelgeneraEon.com)  

and  Is  Licensed  under  the  CreaEve  Commons  AIribuEon-­‐ShareAlike  3.0  Unported  License  

Global  Business  Model  (GBM)  Canvas:  Eagle’s  Eye  View   Business  Model  Canvas  &  Global  Environment  (4  Global  Environment  Forces  for  External  Fitness  Analysis)  

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Bargaining  Pow

er  of  Sup

pliers  

Bargaining  Pow

er  of  C

ustomers  

Threat  of  New  Entrants  

Threat  of  SubsNtute  Products  or  Services  

Business  Model  Canvas  &  Industry  Environment  (Porter’s  5  Forces  for  Industry  Profitability  &  Fitness  Analysis)  

The  Above  “Global  Business  Model  (GBM)  Canvas”  is  adapted  from  the  Business  Model  Canvas  (www.businessmodelgeneraEon.com)  and  Is  Licensed  under  the  CreaEve  Commons  AIribuEon-­‐ShareAlike  3.0  Unported  License  

Global  Business  Model  (GBM)  Canvas:  Eagle’s  Eye  View  

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                                                                                     Global  Business  Model  (GBM)  Canvas:  Fractal  Hierarchy  for  Determining  Business  Model  Fitness  

Environment  

Business  Model  Canvas  

World  (Global)  

NaNon  (Economy/  Value  Network)  

Industry  

Sector  (Locality/Supply  Chain)  

Region  

Supp

liers  

Custom

ers  

SubsLtutes  (In/Direct  CompeEtors)  

New  Entrants  (PotenEal  CompeEtors)  

W:  W

EAKN

ESSES  (-­‐)  

S:  STR

ENGTH

S  (+)  

O:  OPPORTUNITIES  (+)  

T:  THREATS  (-­‐)    #VPGen.  Dr.  Rod  King.  [email protected]  &  hUp://businessmodels.ning.com  &  hUp://twiUer.com/RodKuhnKing  

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                                                                                     Global  Business  Model  (GBM)  Canvas:  Fractal  Hierarchy  for  Determining  Business  Model  Fitness  

Environment  

Business  Model  Canvas  

World  (Global)  

NaNon  (Economy/  Value  Network)  

Industry  

Sector  (Locality/Supply  Chain)  

Region  

Supp

liers  

Custom

ers  

SubsLtutes  (In/Direct  CompeEtors)  

New  Entrants  (PotenEal  CompeEtors)  

Macro-­‐Economic  Forces  (MEF):  Global  Economy  

Indu

stry  Ecosystem

 (IE):  Sup

ply  

Market  E

cosystem

 (ME):  D

eman

d  

Key  Trends  &  Complementors  (KTC):  PESTLIED  

 #VPGen.  Dr.  Rod  King.  [email protected]  &  hUp://businessmodels.ning.com  &  hUp://twiUer.com/RodKuhnKing  

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Example  Global  Business  Model  (GBM)    

Canvas  For    

Startup  

Example  Global  Business  Model  (GBM)    

Canvas  For    

Startup  

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WHAT  to  change?      

TO  WHAT  to  change?      

   

HOW  to  change?  

   

WHY  change?  

Google  Glass    

 #VPGen.  Dr.  Rod  King.  [email protected]  &  hTp://businessmodels.ning.com  &  hTp://twiTer.com/RodKuhnKing  

3-­‐ACT  CHANGE  MANAGEMENT  QUESTIONS  FOR  GOOGLE  GLASS  Visual  Change  Management  for  Dream  ValidaEon  TesEng  

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Disrup<on  Spot  

Luxury  Spot  

Strategic  Choice  

   

   

Netbook  

   

   

Laptop  Computer  Wearable  Computer/  SmartPhone  

Desktop  Computer  

Tablet  Computer  

OVERVIEW  OF  COMPUTING  TOOLS  

Trade-­‐off  Map  of  Performance  vs.  Size    

(-­‐):  PAIN:  Size  (Cost)  

(+):  DELIGHT:  Performance  

(Power;  VersaLlity)  

Key  Profitable  Tool    Unprofitable  Tool  

“Insane”  Happiness  (Value)  Ideal  Final  Result  (IFR)  Infinite  Shared  Happiness  “Invisible  Hand”    

 #VPGen.  Dr.  Rod  King.  [email protected]  &  hTp://businessmodels.ning.com  &  hTp://twiTer.com/RodKuhnKing  

Market  Segment  (Job-­‐To-­‐Get-­‐Done/Goal;  Product/Tool):  Record,  Organize,    Manage,  and/or  Evaluate  InformaEon  

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ENVIRONMENT  

Business  Model  Canvas  For  Google  Glass  

Global  Business  Model  (GBM)  Canvas:  Bird’s  Eye  View   Business  Model  Canvas  &  Environment  

 #VPGen.  Dr.  Rod  King.  [email protected]  &  hUp://businessmodels.ning.com  &  hUp://twiUer.com/RodKuhnKing  

Page 14: Visually Integrating Porter’s 5 Forces of Competition with the Business Model Canvas_rod_king

ENVIRONMENT  

Global  Business  Model  (GBM)  Canvas:  Bird’s  Eye  View   Business  Model  Canvas  &  Environment  

 #VPGen.  Dr.  Rod  King.  [email protected]  &  hUp://businessmodels.ning.com  &  hUp://twiUer.com/RodKuhnKing  

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Key  AcNviNes  (KA)          

Key  Partners  (KP)  

                         

Key  Resources  (KR)          

Customer  Segments  

(CS)                  

   

Pain:    Cost  Structure  (C$)  

     

Delight:  Revenue  Streams  (R$)  

     

Channels  (CH)          

Customer  RelaNonships  

(CR)    

   

(-­‐)   (+)  

Value  ProposiNon  

(VP)                    

     

The  Above  “Global  Business  Model  (GBM)  Canvas”  is  adapted  from  the  Business  Model  Canvas  (www.businessmodelgeneraEon.com)  and  Is  Licensed  under  the  CreaEve  Commons  AIribuEon-­‐ShareAlike  3.0  Unported  License  

ENVIRONMENT  

Global  Business  Model  (GBM)  Canvas:  Eagle’s  Eye  View   Business  Model  Canvas  &  Environment  

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Key  AcNviNes  (KA)  

q  Closed/Open/  Co-­‐InnovaLon  

q  Prototyping  q  Viral  MarkeLng  q  Story  Mngt.  

Key  Partners  (KP)  

q OEM  Manufac-­‐turers  

 

Venture  Capitalists  q  KPCB    

q  Andersen  Horowitz  

 

App  Developers  q  “Explorers”  q  NY  Times    Android  Carriers  

Key  Resources  (KR)  

Google’s  q  Team/Mngt/

Brand/IP  q  IT  Infra’;  Tech.  q  FaciliLes  

Customer  Segments  

(CS)  q  Luxury  users  

who  consider  pocket  or  desktop  computers  as  “bulky”  

q  App  Developers  

q  Professionals  such  as  in  Security  

Job  To  Be  Done?  

Pain:    Cost  Structure  (C$):  Supplies;  Staff;  FaciliLes;  …  q  Weaknesses:  hard  to  fold  or  store;                      short  baIery  life;  high  cost  (price)  q  Threats:  social  discomfort;  switching  costs;  

privacy  concerns  

Delight:  Revenue  Streams  (R$):  US$1,500  per  item  

q  Strengths:  instantly  accessible  smartphone  funcEonaliEes;  could  be  hands-­‐free  

q  OpportuniNes:  killer  apps;  first  mover  ad-­‐                    vantage;  creaEon  of  a  “Blue  Ocean”  Industry  

Channels  (CH)  

q Online  

q Mail  Delivery    

q  Retail  Stores  

Customer  RelaNonships  

(CR)  q  Community  of  

Early  Adopters  q  PromoLon-­‐  

CompeLLons  

(-­‐)  

q  What  &  how  does  Google  conNnuously  learn  (to  create  customers,  profit  or  shared  value)?  

(+)  

Value  ProposiNon  

(VP)  q  “Seamless  &  

Empowering”  Computer/  

             Plagorm:  -­‐  Photo;  Video;  

Maps;  Search;            Internet    …  -­‐  Jobs  To  Be  Done  

       

The  Above  “Global  Business  Model  (GBM)  Canvas”  is  adapted  from  the  Business  Model  Canvas  (www.businessmodelgeneraEon.com)  and  Is  Licensed  under  the  CreaEve  Commons  AIribuEon-­‐ShareAlike  3.0  Unported  License  

ENVIRONMENT  

Global  Business  Model  (GBM)  Canvas:  Eagle’s  Eye  View   Business  Model  Canvas  &  Environment  

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Key  AcNviNes  (KA)  

q  Closed/Open/  Co-­‐InnovaLon  

q  Prototyping  q  Viral  MarkeLng  q  Story  Mngt.  

Key  Partners  (KP)  

q OEM  Manufac-­‐turers  

 

Venture  Capitalists  q  KPCB    

q  Andersen  Horowitz  

 

App  Developers  q  “Explorers”  q  NY  Times    Android  Carriers  

Key  Resources  (KR)  

Google’s  q  Team/Mngt/

Brand/IP  q  IT  Infra’;  Tech.  q  FaciliLes  

Customer  Segments  

(CS)  q  Luxury  users  

who  consider  pocket  or  desktop  computers  as  “bulky”  

q  App  Developers  

q  Professionals  such  as  in  Security  

Job  To  Be  Done?  

Pain:    Cost  Structure  (C$):  Supplies;  Staff;  FaciliLes;  …  q  Weaknesses:  hard  to  fold  or  store;                      short  baIery  life;  high  cost  (price)  q  Threats:  social  discomfort;  switching  costs;  

privacy  concerns  

Delight:  Revenue  Streams  (R$):  US$1,500  per  item  

q  Strengths:  instantly  accessible  smartphone  funcEonaliEes;  could  be  hands-­‐free  

q  OpportuniNes:  killer  apps;  first  mover  ad-­‐                    vantage;  creaEon  of  a  “Blue  Ocean”  Industry  

Channels  (CH)  

q Online  

q Mail  Delivery    

q  Retail  Stores  

Customer  RelaNonships  

(CR)  q  Community  of  

Early  Adopters  q  PromoLon-­‐  

CompeLLons  

(-­‐)  

q  What  &  how  does  Google  conNnuously  learn  (to  create  customers,  profit  or  shared  value)?  

(+)  

Value  ProposiNon  

(VP)  q  “Seamless  &  

Empowering”  Computer/  

             Plagorm:  -­‐  Photo;  Video;  

Maps;  Search;            Internet    …  -­‐  Jobs  To  Be  Done  

       

The  Above  “Global  Business  Model  (GBM)  Canvas”  is  adapted  from  the  Business  Model  Canvas  (www.businessmodelgeneraEon.com)  and  Is  Licensed  under  the  CreaEve  Commons  AIribuEon-­‐ShareAlike  3.0  Unported  License  

Global  Business  Model  (GBM)  Canvas:  Eagle’s  Eye  View  

W:  W

EAKN

ESSES  (-­‐)    

 S:  STR

ENGTH

S  (+)  

 

O:  OPPORTUNITIES  (+)  

T:  THREATS  (-­‐)  

Business  Model  Canvas  &  Global  Environment  (Value  &  SWOT  Analysis)  

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Key  AcNviNes  (KA)  

q  Closed/Open/  Co-­‐InnovaLon  

q  Prototyping  q  Viral  MarkeLng  q  Story  Mngt.  

Key  Partners  (KP)  

q OEM  Manufac-­‐turers  

 

Venture  Capitalists  q  KPCB    

q  Andersen  Horowitz  

 

App  Developers  q  “Explorers”  q  NY  Times    Android  Carriers  

Key  Resources  (KR)  

Google’s  q  Team/Mngt/

Brand/IP  q  IT  Infra’;  Tech.  q  FaciliLes  

Customer  Segments  

(CS)  q  Luxury  users  

who  consider  pocket  or  desktop  computers  as  “bulky”  

q  App  Developers  

q  Professionals  such  as  in  Security  

Job  To  Be  Done?  

Pain:    Cost  Structure  (C$):  Supplies;  Staff;  FaciliLes;  …  q  Weaknesses:  hard  to  fold  or  store;                      short  baIery  life;  high  cost  (price)  q  Threats:  social  discomfort;  switching  costs;  

privacy  concerns  

Delight:  Revenue  Streams  (R$):  US$1,500  per  item  

q  Strengths:  instantly  accessible  smartphone  funcEonaliEes;  could  be  hands-­‐free  

q  OpportuniNes:  killer  apps;  first  mover  ad-­‐                    vantage;  creaEon  of  a  “Blue  Ocean”  Industry  

Channels  (CH)  

q Online  

q Mail  Delivery    

q  Retail  Stores  

Customer  RelaNonships  

(CR)  q  Community  of  

Early  Adopters  q  PromoLon-­‐  

CompeLLons  

(-­‐)  

q  What  &  how  does  Google  conNnuously  learn  (to  create  customers,  profit  or  shared  value)?  

(+)  

Value  ProposiNon  

(VP)  q  “Seamless  &  

Empowering”  Computer/  

             Plagorm:  -­‐  Photo;  Video;  

Maps;  Search;            Internet    …  -­‐  Jobs  To  Be  Done  

       

The  Above  “Global  Business  Model  (GBM)  Canvas”  is  adapted  from  the  Business  Model  Canvas  (www.businessmodelgeneraEon.com)  and  Is  Licensed  under  the  CreaEve  Commons  AIribuEon-­‐ShareAlike  3.0  Unported  License  

Global  Business  Model  (GBM)  Canvas:  Eagle’s  Eye  View  

E:  Elim

inate    

I:  Increase  

C:  Create  

R:  Reduce  

Business  Model  Canvas  &  Global  Environment  (“E.R.I.C.”  Value  Innova<on  Tac<cs)  

Page 19: Visually Integrating Porter’s 5 Forces of Competition with the Business Model Canvas_rod_king

Key  AcNviNes  (KA)  

q  Closed/Open/  Co-­‐InnovaLon  

q  Prototyping  q  Viral  MarkeLng  q  Story  Mngt.  

Key  Partners  (KP)  

q OEM  Manufac-­‐turers  

 

Venture  Capitalists  q  KPCB    

q  Andersen  Horowitz  

 

App  Developers  q  “Explorers”  q  NY  Times    Android  Carriers  

Key  Resources  (KR)  

Google’s  q  Team/Mngt/

Brand/IP  q  IT  Infra’;  Tech.  q  FaciliLes  

Customer  Segments  

(CS)  q  Luxury  users  

who  consider  pocket  or  desktop  computers  as  “bulky”  

q  App  Developers  

q  Professionals  such  as  in  Security  

Job  To  Be  Done?  

Pain:    Cost  Structure  (C$):  Supplies;  Staff;  FaciliLes;  …  q  Weaknesses:  hard  to  fold  or  store;                      short  baIery  life;  high  cost  (price)  q  Threats:  social  discomfort;  switching  costs;  

privacy  concerns  

Delight:  Revenue  Streams  (R$):  US$1,500  per  item  

q  Strengths:  instantly  accessible  smartphone  funcEonaliEes;  could  be  hands-­‐free  

q  OpportuniNes:  killer  apps;  first  mover  ad-­‐                    vantage;  creaEon  of  a  “Blue  Ocean”  Industry  

Channels  (CH)  

q Online  

q Mail  Delivery    

q  Retail  Stores  

Customer  RelaNonships  

(CR)  q  Community  of  

Early  Adopters  q  PromoLon-­‐  

CompeLLons  

(-­‐)  

q  What  &  how  does  Google  conNnuously  learn  (to  create  customers,  profit  or  shared  value)?  

(+)  

Value  ProposiNon  

(VP)  q  “Seamless  &  

Empowering”  Computer/  

             Plagorm:  -­‐  Photo;  Video;  

Maps;  Search;            Internet    …  -­‐  Jobs  To  Be  Done  

       

The  Above  “Global  Business  Model  (GBM)  Canvas”  is  adapted  from  the  Business  Model  Canvas  (www.businessmodelgeneraEon.com)  and  Is  Licensed  under  the  CreaEve  Commons  AIribuEon-­‐ShareAlike  3.0  Unported  License  

Indu

stry  Ecosystem

 (IE):  Sup

ply  

Market  E

cosystem

 (ME):  D

eman

d  

Macro-­‐Economic  Influencers  (MEI):  Global  Economy  

Key  Trends  &  Complementors  (KTC):  PESTLIED  (-­‐/+)  

Global  Business  Model  (GBM)  Canvas:  Eagle’s  Eye  View   Business  Model  Canvas  &  Global  Environment  (4  Global  Environment  Forces  for  External  Fitness  Analysis)  

Page 20: Visually Integrating Porter’s 5 Forces of Competition with the Business Model Canvas_rod_king

Key  AcNviNes  (KA)  

q  Closed/Open/  Co-­‐InnovaLon  

q  Prototyping  q  Viral  MarkeLng  q  Story  Mngt.  

Key  Partners  (KP)  

q OEM  Manufac-­‐turers  

 

Venture  Capitalists  q  KPCB    

q  Andersen  Horowitz  

 

App  Developers  q  “Explorers”  q  NY  Times    Android  Carriers  

Key  Resources  (KR)  

Google’s  q  Team/Mngt/

Brand/IP  q  IT  Infra’;  Tech.  q  FaciliLes  

Customer  Segments  

(CS)  q  Luxury  users  

who  consider  pocket  or  desktop  computers  as  “bulky”  

q  App  Developers  

q  Professionals  such  as  in  Security  

Job  To  Be  Done?  

Pain:    Cost  Structure  (C$):  Supplies;  Staff;  FaciliLes;  …  q  Weaknesses:  hard  to  fold  or  store;                      short  baIery  life;  high  cost  (price)  q  Threats:  social  discomfort;  switching  costs;  

privacy  concerns  

Delight:  Revenue  Streams  (R$):  US$1,500  per  item  

q  Strengths:  instantly  accessible  smartphone  funcEonaliEes;  could  be  hands-­‐free  

q  OpportuniNes:  killer  apps;  first  mover  ad-­‐                    vantage;  creaEon  of  a  “Blue  Ocean”  Industry  

Channels  (CH)  

q Online  

q Mail  Delivery    

q  Retail  Stores  

Customer  RelaNonships  

(CR)  q  Community  of  

Early  Adopters  q  PromoLon-­‐  

CompeLLons  

(-­‐)  

Macro-­‐Economic  Influencers  (MEI)  

Indu

stry  Ecosystem

 (IE):  Sup

ply  

(Sup

pliers  of  W

earable  Co

mpu

ters)  

Key  Trends  &  Complementors  (KTC)  (Emergent  Jobs  To  Be  Done/Experiences)  

q  What  &  how  does  Google  conNnuously  learn  (to  create  customers,  profit  or  shared  value)?  Vuzix  

Telepa

thy  

Wearable  (Ubiquitous/AR)  CompuLng   EvoluLon  of  Computers/Eyeglasses  

Weak  Global  Economy  

Sharing  Economy  

GlobalizaLon  

Social  Media/TV   CollaboraLon  

Gov.  

“Outlier-­‐Users”    

of  

 Wearable  Co

mpu

ters  

Users  

 of    

Non

-­‐Wearable  Co

mpu

ters  

Apple  

Sony  

Health  Sector   Defense  Sector  OpposiLon  Groups  

DIY  Economy  

(+)  

Value  ProposiNon  

(VP)  q  “Seamless  &  

Empowering”  Computer/  

             Plagorm:  -­‐  Photo;  Video;  

Maps;  Search;            Internet    …  -­‐  Jobs  To  Be  Done  

       

The  Above  “Global  Business  Model  (GBM)  Canvas”  is  adapted  from  the  Business  Model  Canvas  (www.businessmodelgeneraEon.com)  and  Is  Licensed  under  the  CreaEve  Commons  AIribuEon-­‐ShareAlike  3.0  Unported  License  

Global  Business  Model  (GBM)  Canvas:  Eagle’s  Eye  View   Business  Model  Canvas  &  Global  Environment  (4  Global  Environment  Forces  for  External  Fitness  Analysis)  

Market  E

cosystem

 (ME):  D

eman

d  (Id

eal  Final  Result:  “Free,  Perfect,  N

ow”;  Use  Cases)  

Page 21: Visually Integrating Porter’s 5 Forces of Competition with the Business Model Canvas_rod_king

Key  AcNviNes  (KA)  

q  Closed/Open/  Co-­‐InnovaLon  

q  Prototyping  q  Viral  MarkeLng  q  Story  Mngt.  

Key  Partners  (KP)  

q OEM  Manufac-­‐turers  

 

Venture  Capitalists  q  KPCB    

q  Andersen  Horowitz  

 

App  Developers  q  “Explorers”  q  NY  Times    Android  Carriers  

Key  Resources  (KR)  

Google’s  q  Team/Mngt/

Brand/IP  q  IT  Infra’;  Tech.  q  FaciliLes  

Value  ProposiNon  

(VP)  q  “Seamless  &  

Empowering”  Computer/  

             Plagorm:  -­‐  Photo;  Video;  

Maps;  Search;            Internet    …  -­‐  Jobs  To  Be  Done  

       

Customer  Segments  

(CS)  q  Luxury  users  

who  consider  pocket  or  desktop  computers  as  “bulky”  

q  App  Developers  

q  Professionals  such  as  in  Security  

Job  To  Be  Done?  

Channels  (CH)  

q Online  

q Mail  Delivery    

q  Retail  Stores  

Customer  RelaNonships  

(CR)  q  Community  of  

Early  Adopters  q  PromoLon-­‐  

CompeLLons  

(-­‐)  

Indu

stry  Ecosystem

 (IE):  Sup

ply  

(Sup

pliers  of  W

earable  Co

mpu

ters)  

Market  E

cosystem

 (ME):  D

eman

d  (Id

eal  Final  Result:  “Free,  Perfect,  N

ow”;  Use  Cases)  

Key  Trends  &  Complementors  (KTC)  (Emergent  Jobs  To  Be  Done/Experiences)  

Vuzix  

Telepa

thy  

Wearable  (Ubiquitous/AR)  CompuLng   EvoluLon  of  Computers/Eyeglasses  

Weak  Global  Economy  

Sharing  Economy  Social  Media/TV   CollaboraLon  

“Outlier-­‐Users”    

of  

 Wearable  Co

mpu

ters  

Apple  

Sony  

Health  Sector  OpposiLon  Groups  

DIY  Economy  

(+)  Staffing  Cost:  

Customer  AcquisiLon  Cost:  

Equipment/Infrastructure/Facility  Cost:  

DistribuLon/LogisLcs  Cost:    

Material/Info’  Cost:  

 Shared  Value  (PROFIT;  Customer  Experience)  

Metrics   Engagement:  

AcLvaLon:   RetenLon:  

Revenue:  

Referral:  

AcquisiLon:  

Macro-­‐Economic  Influencers  (MEI)   Gov.  Defense  Sector   GlobalizaLon  

Global  Business  Model  (GBM)  Canvas:  Eagle’s  Eye  View   Business  Model  Canvas  &  Global  Environment  (4  Global  Environment  Forces  for  External  Fitness  Analysis)  

Users  

 of    

Non

-­‐Wearable  Co

mpu

ters  

The  Above  “Global  Business  Model  (GBM)  Canvas”  is  adapted  from  the  Business  Model  Canvas  (www.businessmodelgeneraEon.com)  and  Is  Licensed  under  the  CreaEve  Commons  AIribuEon-­‐ShareAlike  3.0  Unported  License  

Page 22: Visually Integrating Porter’s 5 Forces of Competition with the Business Model Canvas_rod_king

Key  AcNviNes  (KA)  

q  Closed/Open/  Co-­‐InnovaLon  

q  Prototyping  q  Viral  MarkeLng  q  Story  Mngt.  

Key  Partners  (KP)  

q OEM  Manufac-­‐turers  

 

Venture  Capitalists  q  KPCB    

q  Andersen  Horowitz  

 

App  Developers  q  “Explorers”  q  NY  Times    Android  Carriers  

Key  Resources  (KR)  

Google’s  q  Team/Mngt/

Brand/IP  q  IT  Infra’;  Tech.  q  FaciliLes  

Customer  Segments  

(CS)  q  Luxury  users  

who  consider  pocket  or  desktop  computers  as  “bulky”  

q  App  Developers  

q  Professionals  such  as  in  Security  

Job  To  Be  Done?  

Pain:    Cost  Structure  (C$):  Supplies;  Staff;  FaciliLes;  …  q  Weaknesses:  hard  to  fold  or  store;                      short  baIery  life;  high  cost  (price)  q  Threats:  social  discomfort;  switching  costs;  

privacy  concerns  

Delight:  Revenue  Streams  (R$):  US$1,500  per  item  

q  Strengths:  instantly  accessible  smartphone  funcEonaliEes;  could  be  hands-­‐free  

q  OpportuniNes:  killer  apps;  first  mover  ad-­‐                    vantage;  creaEon  of  a  “Blue  Ocean”  Industry  

Channels  (CH)  

q Online  

q Mail  Delivery    

q  Retail  Stores  

Customer  RelaNonships  

(CR)  q  Community  of  

Early  Adopters  q  PromoLon-­‐  

CompeLLons  

(-­‐)  

q  What  &  how  does  Google  conNnuously  learn  (to  create  customers,  profit  or  shared  value)?  

(+)  

Value  ProposiNon  

(VP)  q  “Seamless  &  

Empowering”  Computer/  

             Plagorm:  -­‐  Photo;  Video;  

Maps;  Search;            Internet    …  -­‐  Jobs  To  Be  Done  

       

The  Above  “Global  Business  Model  (GBM)  Canvas”  is  adapted  from  the  Business  Model  Canvas  (www.businessmodelgeneraEon.com)  and  Is  Licensed  under  the  CreaEve  Commons  AIribuEon-­‐ShareAlike  3.0  Unported  License  

Bargaining  Pow

er  of  Sup

pliers  

Bargaining  Pow

er  of  C

ustomers  

Threat  of  New  Entrants  

Threat  of  SubsNtute  Products  or  Services  

Business  Model  Canvas  &  Industry  Environment  (Porter’s  5  Forces  for  Industry  Profitability  &  Fitness  Analysis)  

Global  Business  Model  (GBM)  Canvas:  Eagle’s  Eye  View  

Page 23: Visually Integrating Porter’s 5 Forces of Competition with the Business Model Canvas_rod_king

Key  AcNviNes  (KA)  

q  Closed/Open/  Co-­‐InnovaLon  

q  Prototyping  q  Viral  MarkeLng  q  Story  Mngt.  

Key  Partners  (KP)  

q OEM  Manufac-­‐turers  

 

Venture  Capitalists  q  KPCB    

q  Andersen  Horowitz  

 

App  Developers  q  “Explorers”  q  NY  Times    Android  Carriers  

Key  Resources  (KR)  

Google’s  q  Team/Mngt/

Brand/IP  q  IT  Infra’;  Tech.  q  FaciliLes  

Customer  Segments  

(CS)  q  Luxury  users  

who  consider  pocket  or  desktop  computers  as  “bulky”  

q  App  Developers  

q  Professionals  such  as  in  Security  

Job  To  Be  Done?  

Pain:    Cost  Structure  (C$):  Supplies;  Staff;  FaciliLes;  …  q  Weaknesses:  hard  to  fold  or  store;                      short  baIery  life;  high  cost  (price)  q  Threats:  social  discomfort;  switching  costs;  

privacy  concerns  

Delight:  Revenue  Streams  (R$):  US$1,500  per  item  

q  Strengths:  instantly  accessible  smartphone  funcEonaliEes;  could  be  hands-­‐free  

q  OpportuniNes:  killer  apps;  first  mover  ad-­‐                    vantage;  creaEon  of  a  “Blue  Ocean”  Industry  

Channels  (CH)  

q Online  

q Mail  Delivery    

q  Retail  Stores  

Customer  RelaNonships  

(CR)  q  Community  of  

Early  Adopters  q  PromoLon-­‐  

CompeLLons  

(-­‐)  

q  What  &  how  does  Google  conNnuously  learn  (to  create  customers,  profit  or  shared  value)?  

(+)  

Value  ProposiNon  

(VP)  q  “Seamless  &  

Empowering”  Computer/  

             Plagorm:  -­‐  Photo;  Video;  

Maps;  Search;            Internet    …  -­‐  Jobs  To  Be  Done  

       

The  Above  “Global  Business  Model  (GBM)  Canvas”  is  adapted  from  the  Business  Model  Canvas  (www.businessmodelgeneraEon.com)  and  Is  Licensed  under  the  CreaEve  Commons  AIribuEon-­‐ShareAlike  3.0  Unported  License  

Bargaining  Pow

er  of  Sup

pliers  

Bargaining  Pow

er  of  C

ustomers  

Threat  of  New  Entrants  

Threat  of  SubsNtute  Products  or  Services  

Business  Model  Canvas  &  Industry  Environment  (Porter’s  5  Forces  for  Industry  Profitability  &  Fitness  Analysis)  

Global  Business  Model  (GBM)  Canvas:  Eagle’s  Eye  View  

Vuzix   Telepathy  

Apple   Sony  

Page 24: Visually Integrating Porter’s 5 Forces of Competition with the Business Model Canvas_rod_king

Past  Reality  Business  Model  

             

Present  Reality  Business  Model  

           

Future  Reality  Business  Model  

             

Global  Business  Model  (GBM)  Story  for  Google  Glass    

One-­‐Page  Business  Profit  Plan  

Business  Model  (Canvas)  

Business  Model  (Canvas)  

Business  Model  (Canvas)  

Industry  Ecosystem  

Market  Ecosystem  

Business  Model  (Canvas)  

Macro-­‐Economic  Influencers  

Key  Trends  &  Complementors  

Google  Glass’s  Mission/Vision/Purpose/Ideals/  Ideal  Final  Result  For  Business  Model  

 #VPGen.  Dr.  Rod  King.  [email protected]  &  hUp://businessmodels.ning.com  &  hUp://twiUer.com/RodKuhnKing  

Strategy  Short/Medium/Long-­‐term  

Page 25: Visually Integrating Porter’s 5 Forces of Competition with the Business Model Canvas_rod_king

Past  Reality  Business  Model  

             

Present  Reality  Business  Model  

           

Future  Reality  Business  Model  

             

Global  Business  Model  (GBM)  Story  for  Google  Glass    

3-­‐Act  Change  Management  QuesEons  

 #VPGen.  Dr.  Rod  King.  [email protected]  &  hUp://businessmodels.ning.com  &  hUp://twiUer.com/RodKuhnKing  

Strategy  

Short/Medium/Long-­‐term  

WHAT  to  change?   TO  WHAT  to  change?  

WHY  change?  

HOW  to  change?  

Page 26: Visually Integrating Porter’s 5 Forces of Competition with the Business Model Canvas_rod_king

Appendix  1  

Classic  Value  Chain  (CVC)  Canvas  A  HolisEc  Approach  to  Value  Chain  and  Industry  AIracEveness  Analyses  

Page 27: Visually Integrating Porter’s 5 Forces of Competition with the Business Model Canvas_rod_king

ENVIRONMENT  

Classic  Value  Chain  (CVC)  Canvas:  Bird’s  Eye  View  

Classic  Value  Chain  

Value  Chain  &  Environment  

 #VPGen.  Dr.  Rod  King.  [email protected]  &  hUp://businessmodels.ning.com  &  hUp://twiUer.com/RodKuhnKing  

Page 28: Visually Integrating Porter’s 5 Forces of Competition with the Business Model Canvas_rod_king

Classic  Value  Chain  (CVC)  Canvas:  Worm’s  Eye  View   Value  Chain  

Firm  Infrastructure  

Human  Resource  Management    

Technology  Development  

Procurement  

Inbound  LogisNcs  

OperaNons   Outbound  LogisNcs  

MarkeNng  &  Sales  

Service  

Supp

ort  

AcEviEes  

Prim

ary  

AcEviEes  

PROFIT  MARGIN  

 #VPGen.  Dr.  Rod  King.  [email protected]  &  hUp://businessmodels.ning.com  &  hUp://twiUer.com/RodKuhnKing  

Source:  Porter,  M.  (1985)  CompeEEve  Advantage.  New  York:  Free  Press.  

Page 29: Visually Integrating Porter’s 5 Forces of Competition with the Business Model Canvas_rod_king

Classic  Value  Chain  (CVC)  Canvas:  Worm’s  Eye  View   Value  Chain  

Firm  Infrastructure  

Human  Resource  Management    

Technology  Development  

Procurement  

Inbound  LogisNcs  

OperaNons   Outbound  LogisNcs  

MarkeNng  &  Sales  

Service  

Supp

ort  

AcEviEes  

Prim

ary  

AcEviEes  

PROFIT  MARGIN  

Classic  Value  Chain  

 #VPGen.  Dr.  Rod  King.  [email protected]  &  hUp://businessmodels.ning.com  &  hUp://twiUer.com/RodKuhnKing  

Source:  Porter,  M.  (1985)  CompeEEve  Advantage.  New  York:  Free  Press.  

Page 30: Visually Integrating Porter’s 5 Forces of Competition with the Business Model Canvas_rod_king

Classic  Value  Chain  (CVC)  Canvas:  Eagle’s  Eye  View   Value  Chain  &  Environment  (Value  &  SWOT  Analysis)  

Firm  Infrastructure  

Human  Resource  Management    

Technology  Development  

Procurement  

Inbound  LogisNcs  

OperaNons   Outbound  LogisNcs  

MarkeNng  &  Sales  

Service  

Supp

ort  

AcEviEes  

Prim

ary  

AcEviEes  

PROFIT  MARGIN  

 #VPGen.  Dr.  Rod  King.  [email protected]  &  hUp://businessmodels.ning.com  &  hUp://twiUer.com/RodKuhnKing  

Classic  Value  Chain  

W:  W

EAKN

ESSES  (-­‐)  

 S:  STR

ENGTH

S  (+)  

O:  OPPORTUNITIES  (+)  

T:  THREATS  (-­‐)  

Page 31: Visually Integrating Porter’s 5 Forces of Competition with the Business Model Canvas_rod_king

Classic  Value  Chain  (CVC)  Canvas:  Eagle’s  Eye  View   Value  Chain  &  Environment  (“E.R.I.C.”  Value  Innova<on  Tac<cs)  

Firm  Infrastructure  

Human  Resource  Management    

Technology  Development  

Procurement  

Inbound  LogisNcs  

OperaNons   Outbound  LogisNcs  

MarkeNng  &  Sales  

Service  

Supp

ort  

AcEviEes  

Prim

ary  

AcEviEes  

PROFIT  MARGIN  

 #VPGen.  Dr.  Rod  King.  [email protected]  &  hUp://businessmodels.ning.com  &  hUp://twiUer.com/RodKuhnKing  

Classic  Value  Chain  

E:  Elim

inate  

 I:  In

crease  

C:  Create  

R:  Reduce  

Page 32: Visually Integrating Porter’s 5 Forces of Competition with the Business Model Canvas_rod_king

Indu

stry  Ecosystem

 (IE):  Sup

ply  

Market  E

cosystem

 (ME):  D

eman

d  

Key  Trends  &  Complementors  (KTC):  PESTLIED  (-­‐/+)  

Macro-­‐Economic  Influencers  (MEI):  Global  Economy  

Classic  Value  Chain  (CVC)  Canvas:  Eagle’s  Eye  View   Value  Chain  &  Global  Environment  (4  Global  Environment  Forces  for  External  Fitness  Analysis)  

Firm  Infrastructure  

Human  Resource  Management    

Technology  Development  

Procurement  

Inbound  LogisNcs  

OperaNons   Outbound  LogisNcs  

MarkeNng  &  Sales  

Service  

Supp

ort  

AcEviEes  

Prim

ary  

AcEviEes  

PROFIT  MARGIN  

 #VPGen.  Dr.  Rod  King.  [email protected]  &  hUp://businessmodels.ning.com  &  hUp://twiUer.com/RodKuhnKing  

Classic  Value  Chain  

Page 33: Visually Integrating Porter’s 5 Forces of Competition with the Business Model Canvas_rod_king

Bargaining  Pow

er  of  Sup

pliers  

Bargaining  Pow

er  of  C

ustomers  

Threat  of  New  Entrants  

Threat  of  SubsNtute  Products  or  Services  

Value  Chain  &  Industry  Environment  (Porter’s  5  Forces  for  Industry  Profitability  &  Fitness  Analysis)  

Classic  Value  Chain  (CVC)  Canvas:  Eagle’s  Eye  View  

Firm  Infrastructure  

Human  Resource  Management    

Technology  Development  

Procurement  

Inbound  LogisNcs  

OperaNons   Outbound  LogisNcs  

MarkeNng  &  Sales  

Service  

Supp

ort  

AcEviEes  

Prim

ary  

AcEviEes  

PROFIT  MARGIN  

 #VPGen.  Dr.  Rod  King.  [email protected]  &  hUp://businessmodels.ning.com  &  hUp://twiUer.com/RodKuhnKing  

Classic  Value  Chain  

Page 34: Visually Integrating Porter’s 5 Forces of Competition with the Business Model Canvas_rod_king

                                                                                     Classic  Value  Chain  (CVC)  Canvas:  Fractal  Hierarchy  for  Determining  Value  Chain  Fitness  

Environment  

Classic  Value  Chain  

World  (Global)  

Industry  

Sector  (Locality/Supply  Chain)  

Region  

Supp

liers  

Custom

ers  

SubsLtutes  (In/Direct  CompeEtors)  

New  Entrants  (PotenEal  CompeEtors)  

NaNon  (Economy/  Value  Network)  

W:  W

EAKN

ESSES  (-­‐)  

 S:  STR

ENGTH

S  (+)  

O:  OPPORTUNITIES  (+)  

T:  THREATS  (-­‐)  

 #VPGen.  Dr.  Rod  King.  [email protected]  &  hTp://businessmodels.ning.com  &  hTp://twiTer.com/RodKuhnKing  

Page 35: Visually Integrating Porter’s 5 Forces of Competition with the Business Model Canvas_rod_king

                                                                                     Classic  Value  Chain  (CVC)  Canvas:  Fractal  Hierarchy  for  Determining  Value  Chain  Fitness  

Environment  

Classic  Value  Chain  

World  (Global)  

Industry  

Sector  (Locality/Supply  Chain)  

Region  

Supp

liers  

Custom

ers  

SubsLtutes  (In/Direct  CompeEtors)  

New  Entrants  (PotenEal  CompeEtors)  

KEY:  “PESTLIED”  is  an  acronym  for  PoliLcal;  Economic;  Social;  Technological;  Legal;  InternaLonal;  Environmental;  Demographic  

Macro-­‐Economic  Forces  (MEF):  Global  Economy  

Indu

stry  Ecosystem

 (IE):  Sup

ply  

Market  E

cosystem

 (ME):  D

eman

d  

Key  Trends  &  Complementors  (KTC):  PESTLIED  

 #VPGen.  Dr.  Rod  King.  [email protected]  &  hUp://businessmodels.ning.com  &  hUp://twiUer.com/RodKuhnKing  

NaNon  (Economy/  Value  Network)  

Page 36: Visually Integrating Porter’s 5 Forces of Competition with the Business Model Canvas_rod_king

Past  Reality  Value  Chain  

             

Present  Reality  Value  Chain  

           

Future  Reality  Value  Chain  

             

Global  Value  Chain  (GVC)  Story  

 One-­‐Page  Business  Profit  Plan  

 Value  Chain  

 Value  Chain  

 Value  Chain  

Industry  Ecosystem  

Market  Ecosystem  

 

Value  Chain  

Macro-­‐Economic  Influencers  

Key  Trends  &  Complementors  

Mission/Vision/Purpose/Ideals/  Ideal  Final  Result  For  Value  Chain  

 #VPGen.  Dr.  Rod  King.  [email protected]  &  hUp://businessmodels.ning.com  &  hUp://twiUer.com/RodKuhnKing  

Strategy  Short/Medium/Long-­‐term  

Page 37: Visually Integrating Porter’s 5 Forces of Competition with the Business Model Canvas_rod_king

Past  Reality  Value  Chain  

             

Present  Reality  Value  Chain  

           

Future  Reality  Value  Chain  

             

Global  Value  Chain  (GVC)  Story    

3-­‐Act  Change  Management  QuesEons  

 #VPGen.  Dr.  Rod  King.  [email protected]  &  hUp://businessmodels.ning.com  &  hUp://twiUer.com/RodKuhnKing  

Strategy  

Short/Medium/Long-­‐term  

WHAT  to  change?   TO  WHAT  to  change?  

WHY  change?  

HOW  to  change?  

Page 38: Visually Integrating Porter’s 5 Forces of Competition with the Business Model Canvas_rod_king

Appendix  2  

Modern  Value  Chain  (MVC)  Canvas  A  HolisEc  Approach  to  Value  Chain  and  Industry  AIracEveness  Analyses  

Page 39: Visually Integrating Porter’s 5 Forces of Competition with the Business Model Canvas_rod_king

ENVIRONMENT  

Modern  Value  Chain  (MVC)  Canvas:  Bird’s  Eye  View  

Modern  Value  Chain  

Value  Chain  &  Environment  

 #VPGen.  Dr.  Rod  King.  [email protected]  &  hUp://businessmodels.ning.com  &  hUp://twiUer.com/RodKuhnKing  

Page 40: Visually Integrating Porter’s 5 Forces of Competition with the Business Model Canvas_rod_king

ENVIRONMENT  

Modern  Value  Chain  (MVC)  Canvas:  Bird’s  Eye  View   Value  Chain  &  Environment  

 #VPGen.  Dr.  Rod  King.  [email protected]  &  hUp://businessmodels.ning.com  &  hUp://twiUer.com/RodKuhnKing  

Modern  Value  Chain  (3-­‐Act  Business  Model)  

VALUE  CREATION  MODEL  

VALUE  PROPOSITION  

MODEL  

VALUE  SHARING  (PROFIT)  MODEL  

Create  Value   Deliver  Value   Share  (Capture)  Value  CORE  JOBS:  

HOW?   WHAT?   WHY?  

Page 41: Visually Integrating Porter’s 5 Forces of Competition with the Business Model Canvas_rod_king

 #VPGen.  Dr.  Rod  King.  [email protected]  &  hUp://businessmodels.ning.com  &  hUp://twiUer.com/RodKuhnKing  

VALUE  CREATION  MODEL  

VALUE  PROPOSITION  MODEL  

PROFIT  MODEL  

ENVIRONMENT  

MODERN  VALUE  CHAIN  (3-­‐Act  Business  Model)  

Value  Chain  &  Environment  

Page 42: Visually Integrating Porter’s 5 Forces of Competition with the Business Model Canvas_rod_king

 #VPGen.  Dr.  Rod  King.  [email protected]  &  hUp://businessmodels.ning.com  &  hUp://twiUer.com/RodKuhnKing  

VALUE  CREATION  MODEL  

VALUE  PROPOSITION  MODEL  

Inputs/Partners          

Internal  Resources          

Processes/AcNviNes          

Product/Value  ProposiNon          

Channels  &  RelaNonships          

Customer/Job-­‐To-­‐Get-­‐Done          

Cost:  (Structure/Metrics)          

Revenue:  (Streams/Metrics)          

PROFIT          

MODERN  VALUE  CHAIN  (3-­‐Act  Business  Model)  

PROFIT  MODEL  

Value  Chain  (Blank)  

Page 43: Visually Integrating Porter’s 5 Forces of Competition with the Business Model Canvas_rod_king

 #VPGen.  Dr.  Rod  King.  [email protected]  &  hUp://businessmodels.ning.com  &  hUp://twiUer.com/RodKuhnKing  

VALUE  CREATION  MODEL  

VALUE  PROPOSITION  MODEL  

Inputs/Partners  q  Inbound  LogisEcs        

Internal  Resources  q  Firm  Infrastructure  q  Human  Resource  Mngt  q  Technology  Dev.  q  Procurement  

Processes/AcNviNes  q  OperaEons        

Product/Value  ProposiNon          

Channels  &  RelaNonships  q  Outbound  LogisEcs  q  MarkeEng  &  Sales  q  Service    

Customer/Job-­‐To-­‐Get-­‐Done          

Cost:  (Structure/Metrics)          

Revenue:  (Streams/Metrics)          

PROFIT  q  PROFIT  MARGIN        

PROFIT  MODEL  

Value  Chain  (ParEally  Annotated)  MODERN  VALUE  CHAIN  (3-­‐Act  Business  Model)  

Page 44: Visually Integrating Porter’s 5 Forces of Competition with the Business Model Canvas_rod_king

 #VPGen.  Dr.  Rod  King.  [email protected]  &  hUp://businessmodels.ning.com  &  hUp://twiUer.com/RodKuhnKing  

VALUE  CREATION  MODEL  

VALUE  PROPOSITION  MODEL  

Inputs/Partners  q  Capital  Requirements  q  Access  to  Inputs  q  DifferenLated  Inputs  q  Volume  of  Inputs  q  Entry/Exit  Barriers  

Internal  Resources  q  Economies  of  Scale  q  Brand  IdenLty/Loyalty  q  Proprietary  Learning  Curve  q  Fixed  Costs  q  (Over)Capacity  

Processes/AcNviNes  q  Forward/Backward  Linkage  q  Agility:  Ability  to  Quickly  

Retaliate/Respond/                  Innovate    

Product/Value  ProposiNon  q Product  Design  q Proprietary  Product  Differences  q Product  Quality/Reliability/…  q No./Price/Growth  of  SubsLtutes  q Switching  Cost  

Channels  &  RelaNonships  q  Access  to  DistribuLon  

 

Customer/Job-­‐To-­‐Get-­‐Done  q Switching  Cost  q Propensity  to  SubsLtute/Switch  q Customers’  No./ConcentraLon/  

Order  Volume/Price  SensiLvity  q Decision-­‐maker’s  IncenLves  

Cost:  (Structure/Metrics)  q Cost  (RelaLve  to  Total  

Purchase)  

   

Revenue:  (Streams/Metrics)  q Price  q Benefits  (ULlity)      

 

PROFIT  q  Value  Added        

PROFIT  MODEL  

Value  Chain  (Bargaining  Factors)  MODERN  VALUE  CHAIN  (Factors  for  Business  Model  Advantage)  

Page 45: Visually Integrating Porter’s 5 Forces of Competition with the Business Model Canvas_rod_king

 #VPGen.  Dr.  Rod  King.  [email protected]  &  hUp://businessmodels.ning.com  &  hUp://twiUer.com/RodKuhnKing  

VALUE  CREATION  MODEL:  COST  REDUCTION  

VALUE  PROPOSITION  MODEL:  REVENUE  INCREASE  

Inputs/Partners  q Co-­‐creaLon;  Social  Media  q Open  Source  CollaboraLon  q Crowd-­‐funding/sourcing  q FracLonalizaLon/Co-­‐owner  q  Investor/Sponsor/Donor  q Mergers  &  AcquisiLons  

Internal  Resources  (Physical/Intellectual/EmoEonal/Spiritual  Resources)  q Creator;  Broker;  Landlord  q Peer-­‐to-­‐Peer  Plagorm  q Facilitated  Network  q Patents  (“Fences”;  Barriers)    

Processes/AcNviNes  q OperaLonal  Excellence;  JIT  q AutomaLon  (Self-­‐service/DIY)  q GamificaLon;  DigitalizaLon  q Ecosystem  Management  q Problem  Solving;  ConsulLng  q CompeLLve  Strategies  

Product/Value  ProposiNon  q Asset  Sale/Direct  Sale  q Product  Leadership/Extension  q Used/2nd  Hand  Product;  Bargain  q CustomizaLon  (Value  Factors)  q Bundling/Unbundling  q Product/Sonware  as  a  Service  

Channels  &  RelaNonships  q Offline/Online;  (In)direct  Sale  q Franchise;  Licensing;  Affiliates  q Distributor;  Disintermediator  q Ad  Network;  Brand  MulLplier  q AggregaLon/DisaggregaLon  q AucLon/Reverse  AucLon  

Customer/Job-­‐To-­‐Get-­‐Done  q Customer  InLmacy/Loyalty  q B2B;  B2C  q Long  Tail;  Community  (Hub)  q Two-­‐sided  Market  (Segments)  q MulL-­‐sided  Market  (Plagorm)  q Luxury/Mass  Market/Niche  

Cost  (Pain)  q Outsourcing;  SpecializaLon  q Group  Deals  q Lending/RenLng/Leasing  q Cross-­‐subsidizaLon  q FracLonalizaLon/Co-­‐owner    

Revenue  (Delight)  q Pre-­‐payment;  AmorLzaLon  q Discount;  Dynamic  Pricing  q Razor  Blade  (“Bait  &  Switch”)  q Usage  Fee;  SubscripLon  Fee  q Tiered  Payment;  Freemium  q DonaLon;  Free  

PROFIT  (VALUE)  q Shared  Value  (Profit)  q Transient  CompeLLve  Adv.  q Sustainable  CompeLLve  Adv.  q Red  Ocean;  Low  Cost/Margin  q Blue  Ocean;  Luxury  Spot  q DisrupLve  InnovaLon  Spot  

PROFIT  MODEL:  PROFIT  INCREASE  

Business  Profit  Management  (PaIerns/TacEcs)     51  BUSINESS  PROFIT  PATTERNS  

(Business  Profit  InnovaEon  for  CompeEEve  Advantage)  

Page 46: Visually Integrating Porter’s 5 Forces of Competition with the Business Model Canvas_rod_king

ENVIRONMENT  

Modern  Value  Chain  (MVC)  Canvas:  Eagle’s  Eye  View   Value  Chain  &  Environment  

 #VPGen.  Dr.  Rod  King.  [email protected]  &  hUp://businessmodels.ning.com  &  hUp://twiUer.com/RodKuhnKing  

VALUE  CREATION  MODEL  

VALUE  PROPOSITION  MODEL  

PROFIT  MODEL  

MODERN  VALUE  CHAIN  

Page 47: Visually Integrating Porter’s 5 Forces of Competition with the Business Model Canvas_rod_king

Value  Chain  &  Global  Environment  (Value  &  SWOT  Analysis)  

 #VPGen.  Dr.  Rod  King.  [email protected]  &  hUp://businessmodels.ning.com  &  hUp://twiUer.com/RodKuhnKing  

Modern  Value  Chain  (MVC)  Canvas:  Eagle’s  Eye  View  

VALUE  CREATION  MODEL  

VALUE  PROPOSITION  MODEL  

PROFIT  MODEL  

MODERN  VALUE  CHAIN  

W:  W

EAKN

ESSES  (-­‐)  

 S:  STR

ENGTH

S  (+)  

O:  OPPORTUNITIES  (+)  

T:  THREATS  (-­‐)  

Page 48: Visually Integrating Porter’s 5 Forces of Competition with the Business Model Canvas_rod_king

Value  Chain  &  Global  Environment  (“E.R.I.C.”  Value  Innova<on  Tac<cs)  

 #VPGen.  Dr.  Rod  King.  [email protected]  &  hUp://businessmodels.ning.com  &  hUp://twiUer.com/RodKuhnKing  

Modern  Value  Chain  (MVC)  Canvas:  Eagle’s  Eye  View  

VALUE  CREATION  MODEL  

VALUE  PROPOSITION  MODEL  

PROFIT  MODEL  

MODERN  VALUE  CHAIN  

E:  Elim

inate  

 I:  In

crease  

C:  Create  

R:  Reduce  

Page 49: Visually Integrating Porter’s 5 Forces of Competition with the Business Model Canvas_rod_king

Indu

stry  Ecosystem

 (IE):  Sup

ply  

Market  E

cosystem

 (ME):  D

eman

d  

Key  Trends  &  Complementors  (KTC):  PESTLIED  (-­‐/+)  

Macro-­‐Economic  Influencers  (MEI):  Global  Economy  

Value  Chain  &  Global  Environment  (4  Global  Environment  Forces  for  External  Fitness  Analysis)  

 #VPGen.  Dr.  Rod  King.  [email protected]  &  hUp://businessmodels.ning.com  &  hUp://twiUer.com/RodKuhnKing  

Modern  Value  Chain  (MVC)  Canvas:  Eagle’s  Eye  View  

VALUE  CREATION  MODEL  

VALUE  PROPOSITION  MODEL  

PROFIT  MODEL  

MODERN  VALUE  CHAIN  

Page 50: Visually Integrating Porter’s 5 Forces of Competition with the Business Model Canvas_rod_king

Bargaining  Pow

er  of  Sup

pliers  

Bargaining  Pow

er  of  C

ustomers  

Threat  of  New  Entrants  

Threat  of  SubsNtute  Products  or  Services  

Value  Chain  &  Industry  Environment  (Porter’s  5  Forces  for  Industry  Profitability  &  Fitness  Analysis)  

 #VPGen.  Dr.  Rod  King.  [email protected]  &  hUp://businessmodels.ning.com  &  hUp://twiUer.com/RodKuhnKing  

Modern  Value  Chain  (MVC)  Canvas:  Eagle’s  Eye  View  

VALUE  CREATION  MODEL  

VALUE  PROPOSITION  MODEL  

PROFIT  MODEL  

MODERN  VALUE  CHAIN  

Page 51: Visually Integrating Porter’s 5 Forces of Competition with the Business Model Canvas_rod_king

Bargaining  Pow

er  of  Sup

pliers  

Bargaining  Pow

er  of  C

ustomers  

Threat  of  New  Entrants  

Threat  of  SubsNtute  Products  or  Services  

Value  Chain  &  Industry  Environment  (Porter’s  5  Forces  for  Industry  Profitability  &  Fitness  Analysis)  

 #VPGen.  Dr.  Rod  King.  [email protected]  &  hUp://businessmodels.ning.com  &  hUp://twiUer.com/RodKuhnKing  

Modern  Value  Chain  (MVC)  Canvas:  Eagle’s  Eye  View  

VALUE  CREATION  MODEL  

VALUE  PROPOSITION  MODEL  

Inputs/Partners          

Internal  Resources          

Processes/AcNviNes          

Product/Value  ProposiNon          

Channels  &  RelaNonships          

Customer/Job-­‐To-­‐Get-­‐Done          

 Cost:    (Structure/Metrics)            Revenue:  (Streams/Metrics)          PROFIT          

PROFIT  MODEL  

Page 52: Visually Integrating Porter’s 5 Forces of Competition with the Business Model Canvas_rod_king

Value  Chain  &  Industry  Environment  (Porter’s  5  Forces  for  Industry  Profitability  &  Fitness  Analysis)  

 #VPGen.  Dr.  Rod  King.  [email protected]  &  hUp://businessmodels.ning.com  &  hUp://twiUer.com/RodKuhnKing  

Modern  Value  Chain  (MVC)  Canvas:  Eagle’s  Eye  View  

VALUE  CREATION  MODEL  

VALUE  PROPOSITION  MODEL  

Inputs/Partners          

Internal  Resources          

Processes/AcNviNes          

Product/Value  ProposiNon          

Channels  &  RelaNonships          

Customer/Job-­‐To-­‐Get-­‐Done          

 Cost:    (Structure/Metrics)            Revenue:  (Streams/Metrics)          PROFIT          

PROFIT  MODEL  

Indu

stry  Ecosystem

 (IE):  Sup

ply  

Market  E

cosystem

 (ME):  D

eman

d  

Key  Trends  &  Complementors  (KTC):  PESTLIED  (-­‐/+)  

Macro-­‐Economic  Influencers  (MEI):  Global  Economy  

Page 53: Visually Integrating Porter’s 5 Forces of Competition with the Business Model Canvas_rod_king

Value  Chain  &  Industry  Environment  (“E.R.I.C.”  Valua<on  Innova<on  Tac<cs)  

 #VPGen.  Dr.  Rod  King.  [email protected]  &  hUp://businessmodels.ning.com  &  hUp://twiUer.com/RodKuhnKing  

Modern  Value  Chain  (MVC)  Canvas:  Eagle’s  Eye  View  

VALUE  CREATION  MODEL  

VALUE  PROPOSITION  MODEL  

Inputs/Partners          

Internal  Resources          

Processes/AcNviNes          

Product/Value  ProposiNon          

Channels  &  RelaNonships          

Customer/Job-­‐To-­‐Get-­‐Done          

 Cost:    (Structure/Metrics)            Revenue:  (Streams/Metrics)          PROFIT          

PROFIT  MODEL  

E:  Elim

inate  

 I:  In

crease  

C:  Create  

R:  Reduce  

Page 54: Visually Integrating Porter’s 5 Forces of Competition with the Business Model Canvas_rod_king

Value  Chain  &  Industry  Environment  (Value  &  SWOT  Analysis)  

 #VPGen.  Dr.  Rod  King.  [email protected]  &  hUp://businessmodels.ning.com  &  hUp://twiUer.com/RodKuhnKing  

Modern  Value  Chain  (MVC)  Canvas:  Eagle’s  Eye  View  

VALUE  CREATION  MODEL  

VALUE  PROPOSITION  MODEL  

Inputs/Partners          

Internal  Resources          

Processes/AcNviNes          

Product/Value  ProposiNon          

Channels  &  RelaNonships          

Customer/Job-­‐To-­‐Get-­‐Done          

 Cost:    (Structure/Metrics)            Revenue:  (Streams/Metrics)          PROFIT          

PROFIT  MODEL  

W:  W

EAKN

ESSES  (-­‐)  

 S:  STR

ENGTH

S  (+)  

O:  OPPORTUNITIES  (+)  

T:  THREATS  (-­‐)  

Page 55: Visually Integrating Porter’s 5 Forces of Competition with the Business Model Canvas_rod_king

Value  Chain  &  Industry  Environment  (Porter’s  5  Forces  for  Industry  Profitability  &  Fitness  Analysis)  

 #VPGen.  Dr.  Rod  King.  [email protected]  &  hUp://businessmodels.ning.com  &  hUp://twiUer.com/RodKuhnKing  

Modern  Value  Chain  (MVC)  Canvas:  Eagle’s  Eye  View  

VALUE  CREATION  MODEL  

VALUE  PROPOSITION  MODEL  

Inputs/Partners          

Internal  Resources          

Processes/AcNviNes          

Product/Value  ProposiNon          

Channels  &  RelaNonships          

Customer/Job-­‐To-­‐Get-­‐Done          

 Cost:    (Structure/Metrics)            Revenue:  (Streams/Metrics)          PROFIT          

PROFIT  MODEL  

ENVIRONMENT  

Page 56: Visually Integrating Porter’s 5 Forces of Competition with the Business Model Canvas_rod_king

                                                                                     Modern  Value  Chain  (MVC)  Canvas:  Fractal  Hierarchy  for  Determining  Value  Chain  Fitness  

Environment  

Modern  Value  Chain  

World  (Global)  

Industry  

Sector  (Locality/Supply  Chain)  

Region  

Supp

liers  

Custom

ers  

SubsLtutes  (In/Direct  CompeEtors)  

New  Entrants  (PotenEal  CompeEtors)  

 #VPGen.  Dr.  Rod  King.  [email protected]  &  hUp://businessmodels.ning.com  &  hUp://twiUer.com/RodKuhnKing  

NaNon  (Economy/  Value  Network)  

W:  W

EAKN

ESSES  (-­‐)  

 S:  STR

ENGTH

S  (+)  

O:  OPPORTUNITIES  (+)  

T:  THREATS  (-­‐)  

Page 57: Visually Integrating Porter’s 5 Forces of Competition with the Business Model Canvas_rod_king

                                                                                     Modern  Value  Chain  (MVC)  Canvas:  Fractal  Hierarchy  for  Determining  Value  Chain  Fitness  

Environment  

Modern  Value  Chain  

World  (Global)  

Industry  

Sector  (Locality/Supply  Chain)  

Region  

Supp

liers  

Custom

ers  

SubsLtutes  (In/Direct  CompeEtors)  

New  Entrants  (PotenEal  CompeEtors)  

KEY:  “PESTLIED”  is  an  acronym  for  PoliLcal;  Economic;  Social;  Technological;  Legal;  InternaLonal;  Environmental;  Demographic  

Macro-­‐Economic  Forces  (MEF):  Global  Economy  

Indu

stry  Ecosystem

 (IE):  Sup

ply  

Market  E

cosystem

 (ME):  D

eman

d  

Key  Trends  &  Complementors  (KTC):  PESTLIED  

 #VPGen.  Dr.  Rod  King.  [email protected]  &  hUp://businessmodels.ning.com  &  hUp://twiUer.com/RodKuhnKing  

NaNon  (Economy/  Value  Network)  

Page 58: Visually Integrating Porter’s 5 Forces of Competition with the Business Model Canvas_rod_king

Past  Reality  Value  Chain  

             

Present  Reality  Value  Chain  

           

Future  Reality  Value  Chain  

             

Global  Value  Chain  (GVC)  Story  

 One-­‐Page  Business  Profit  Plan  

 Value  Chain  

 Value  Chain  

 Value  Chain  

Industry  Ecosystem  

Market  Ecosystem  

 

Value  Chain  

Macro-­‐Economic  Influencers  

Key  Trends  &  Complementors  

Mission/Vision/Purpose/Ideals/  Ideal  Final  Result  For  Value  Chain  

 #VPGen.  Dr.  Rod  King.  [email protected]  &  hUp://businessmodels.ning.com  &  hUp://twiUer.com/RodKuhnKing  

Strategy  Short/Medium/Long-­‐term  

Page 59: Visually Integrating Porter’s 5 Forces of Competition with the Business Model Canvas_rod_king

Past  Reality  Value  Chain  

             

Present  Reality  Value  Chain  

           

Future  Reality  Value  Chain  

             

Global  Value  Chain  (GVC)  Story    

4  Strategy-­‐Focused  QuesEons  

 #VPGen.  Dr.  Rod  King.  [email protected]  &  hUp://businessmodels.ning.com  &  hUp://twiUer.com/RodKuhnKing  

Strategy  

Short/Medium/Long-­‐term  

WHAT  to  change?   TO  WHAT  to  change?  

WHY  change?  

HOW  to  change?