3-act business model storyboard for lean startup pivots: a visual template for systematically...

#VPGen. Dr. Rod King. [email protected] & h:p://businessmodels.ning.com & h:p://twi:er.com/RodKuhnKing

Product Innova-on Customer Development Innova-on Accoun-ng Job-‐To-‐ Get-‐Done

3-‐ACT BUSINESS MODEL STORYBOARD FOR LEAN STARTUP PIVOTS Lean Startup Planning, Modeling, and Execu6on (LSPME)


Product Innova-on: BUILD

Customer Development: MEASURE

Innova-on Accoun-ng: LEARN

Job-‐To-‐ Get-‐Done



VALUE CREATION MODEL

VALUE PROPOSITION MODEL

VALUE SHARING (PROFIT) MODEL










delivers

requires

drives

requires










delivers

requires

drives

requires





VISION (Problems/Plan/Ideas)


PRODUCT (Op6miza6on) STRATEGY (Emergent; Pivot)





delivers

requires

drives

requires

3-‐ACT BUSINESS MODEL STORYBOARD FOR LEAN STARTUP PIVOTS 10 Pivots: Based on Eric Ries’s Catalog of Pivots in his book, “The Lean Startup”

Product/Value ProposiWon q Zoom-‐in Pivot q Zoom-‐out Pivot q PlaYorm (Total SoluFon) Pivot

Channels & RelaWonships q Channel Pivot q Engine of Growth Pivot

Customer/Job-‐To-‐Get-‐Done q  Customer Segment Pivot q  Customer Need Pivot

require(s)

require(s)

Inputs/Partners

Internal Resources q Business Architecture Pivot q Technology Pivot

Processes/AcWviWes

require(s) affect(s)

require(s) deliver(s)

Cost (Pain)

Revenue (Delight) q Value Capture Pivot

PROFIT (VALUE)

requires

drive(s)

delights

delight(s)

delight(s)




(Problem

-‐SoluF

on Fit; Produ

ct-‐M

arket F

it)


VISION (Problems/Plan/Ideas) PRODUCT (Op6miza6on) STRATEGY (Emergent; Pivot)





delivers

requires

drives

requires

3-‐ACT BUSINESS MODEL STORYBOARD OF OPTIONS FOR LEAN STARTUP PIVOTS Generic Pivot PaPerns for the Business Model of a Lean Startup

(Based on A. Osterwalder and Y. Pigneur’s book, “Business Model GeneraFon”)

Product/Value ProposiWon q Single Product or Service q Bundled Product or Service q Value Proposi6on: Luxury;

DisrupWon/Lean; Blue Ocean

Channels & RelaWonships q Online; Automated q Offline; Sales Force q Direct: No Intermediary q  Indirect Retailers/Distributors

Customer/Job-‐To-‐Get-‐Done q High-‐end (Luxury) Market q Low-‐end (Mass) Market q Niche/Segmented Market q Bilateral/MulWsided Market

require(s)

require(s)

Inputs/Partners q Strategic Alliances q Joint Ventures q “CoopeWtors” q Exclusive Buyer-‐Supplier

Internal Resources q Physical Resources q  Intellectual Resources q EmoWonal Resources q Spiritual Resources

Processes/AcWviWes q Problem Solving (ConsulWng) q ProducWon (Manufacturing) q PlaYorm/Network Manage-‐

ment; ExtracWon



Cost (Pain) q Low Cost; No-‐frills;

Minimum Viable Cost q Value-‐driven Cost q Total SoluWon Cost

Revenue (Delight) q Asset (Product) Sale q Usage Fee; Rent; Lease q SubscripWon; Ads; Free q Licensing; Brokerage

PROFIT (VALUE) q High Profit Margin;

Low Velocity q Low Profit Margin;

High Velocity

requires

drive(s)

delights

delight(s)

delight(s)

(Problem

-‐SoluF

on Fit; Produ

ct-‐M

arket F

it)







VALUE CREATION MODEL: COST REDUCTION

VALUE PROPOSITION MODEL: REVENUE INCREASE

Inputs/Partners q Co-‐creaFon; Social Media q Open Source CollaboraFon q Crowd-‐funding/sourcing q FracFonalizaFon/Co-‐owner q  Investor/Sponsor/Donor q Mergers & AcquisiFons

Internal Resources (Physical/Intellectual/Emo6onal/Spiritual Resources) q Creator; Broker; Landlord q Peer-‐to-‐Peer PlaYorm q Facilitated Network q Patents (“Fences”; Barriers)

Processes/AcWviWes q OperaFonal Excellence; JIT q AutomaFon (Self-‐service/DIY) q GamificaFon; DigitalizaFon q Ecosystem Management q Problem Solving; ConsulFng q CompeFFve Strategies

Product/Value ProposiWon q Asset Sale/Direct Sale q Product Leadership/Extension q Used/2nd Hand Product; Bargain q CustomizaFon (Value Factors) q Bundling/Unbundling q Product/So_ware as a Service

Channels & RelaWonships q Offline/Online; (In)direct Sale q Franchise; Licensing; Affiliates q Distributor; Disintermediator q Ad Network; Brand MulFplier q AggregaFon/DisaggregaFon q AucFon/Reverse AucFon

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

Cost (Pain) q Outsourcing; SpecializaFon q Group Deals q Lending/RenFng/Leasing q Cross-‐subsidizaFon q FracFonalizaFon/Co-‐owner

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

PROFIT (VALUE) q Shared Value (Profit) q Transient CompeFFve Adv. q Sustainable CompeFFve Adv. q Red Ocean; Low Cost/Margin q Blue Ocean; Luxury Spot q DisrupFon/Lean Spot

PROFIT MODEL: PROFIT INCREASE

51 BUSINESS PROFIT PATTERNS (Specific Pivot PaPerns)





delivers

requires

drives

requires

3-‐ACT BUSINESS MODEL STORYBOARD FOR LEAN STARUP PLANNING, MODELING, AND EXECUTION Lean Startup Roadmap for Visually Planning, Modeling, and Execu6ng the Strategy of a Lean Startup

(Based on Eric Ries’s Book, “The Lean Startup”)

Product/Value ProposiWon

Channels & RelaWonships

Customer/Job-‐To-‐Get-‐Done

require(s)

require(s)

Inputs/Partners

Internal Resources

Processes/AcWviWes



Cost (Pain)

Revenue (Delight)

PROFIT (VALUE)

requires

drive(s)

delights

delight(s)

delight(s)

(Problem

-‐SoluF

on Fit; Produ

ct-‐M

arket F

it)





VISION (Problems/Plan/Ideas)

q  Engagement q  AcquisiFon; AcFvaFon q  RetenFon; Referral; Revenue

PRODUCT (Op6miza6on) STRATEGY (Emergent; Pivot)

Which Canvas or Storyboard to Use for Lean Startup Planning, Modeling, and Execu-on?





delivers

requires

drives

requires

3-‐ACT BUSINESS MODEL STORYBOARD Tree Template




Inputs/Partners

Internal Resources

Processes/AcWviWes

Cost (Pain)

Revenue (Delight)

PROFIT (VALUE)










delivers

requires

drives

requires

3-‐ACT BUSINESS MODEL STORYBOARD 9 Types of Unknowns, Indeterminacies, or Risks in a Lean Startup




Inputs/Partners

Internal Resources

Processes/AcWviWes

Cost (Pain)

Revenue (Delight)

PROFIT (VALUE)










delivers

requires

drives

requires

3-‐ACT BUSINESS MODEL STORYBOARD Network Template




require(s)

require(s)

Inputs/Partners

Internal Resources

Processes/AcWviWes



Cost (Pain)

Revenue (Delight)

PROFIT (VALUE)

requires

drive(s)

delights

delight(s)

delight(s)

(Problem

-‐SoluF

on Fit; Produ

ct-‐M

arket F

it)










delivers

requires

drives

requires

3-‐ACT BUSINESS MODEL STORYBOARD 9 Types of Unknowns, Indeterminacies, or Risks in a Lean Startup




require(s)

require(s)

Inputs/Partners

Internal Resources

Processes/AcWviWes



Cost (Pain)

Revenue (Delight)

PROFIT (VALUE)

requires

drive(s)

delights

delight(s)

delight(s)

(Problem

-‐SoluF

on Fit; Produ

ct-‐M

arket F

it)










delivers

requires

drives

requires

3-‐ACT BUSINESS MODEL STORYBOARD Elements and Profit Logic of Osterwalder & Pigneur’s Business Model Canvas

Product/Value ProposiWon q Value ProposiWon (VP)

Channels & RelaWonships q Channels (CH) q Customer RelaWonships (CR)

Customer/Job-‐To-‐Get-‐Done q Customer Segment (CS)

require(s)

require(s)

Inputs/Partners q Key Partners (KP)

Internal Resources q Key Resources (KR)

Processes/AcWviWes q Key AcWviWes (KA)



Cost (Pain) q Cost Structure (C$)

Revenue (Delight) q Revenue Streams (R$)

PROFIT (VALUE)

requires

drive(s)

delights

delight(s)

delight(s)





delivers

requires

drives

requires

3-‐ACT BUSINESS MODEL STORYBOARD Elements and Profit Logic of Ash Maurya’s Lean Canvas

Product/Value ProposiWon q  Unique Value ProposiWon q  SoluWon

Channels & RelaWonships q  Channels

Customer/Job-‐To-‐Get-‐Done q  Customer Segment q  Problem (Trade-‐off)

require(s)

require(s)

Inputs/Partners

Internal Resources q  Unfair Advantage

Processes/AcWviWes



Cost (Pain) q  Cost Structure

Revenue (Delight) q  Revenue Streams

PROFIT (VALUE) q Key Metrics

requires

drive(s)

delights

delight(s)

delight(s)

(Problem

-‐SoluF

on Fit; Produ

ct-‐M

arket F

it)





delivers

requires

drives

requires

3-‐ACT BUSINESS MODEL STORYBOARD Elements and Profit Logic of Mark Johnson’s 4-‐Box Business Model

Product/Value ProposiWon q  Customer Value ProposiWon



require(s)

require(s)

Inputs/Partners

Internal Resources q  Key Resources

Processes/AcWviWes q  Key Processes



Cost (Pain)

Revenue (Delight)

PROFIT (VALUE) q  Profit Formula

requires

drive(s)

delights

delight(s)

delight(s)

Past Reality

Present Reality

Future Reality


Strategy

Short/Medium/Long-‐term

WHAT to pivot? TO WHAT to pivot?

WHY pivot?

3-‐ACT BUSINESS MODEL PLAN

4 Pivot Ques6ons & Unique Kanban Board

HOW to pivot?

Date: ………………………………..

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3-act business model storyboard for lean startup pivots: a visual template for systematically...

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