a universal planning tool (platform) for rapidly achieving missions, visions, goals, and strategies:...

World-‐class Coaching on Applying the Ambidexterity Principle, Strategy Pale7e, and Ambidextrous Leadership Galaxy Ambidextrous Growth Strategist. Dr. Rod King. [email protected] & hAp://businessmodels.ning.com & @rodKuhnKing

BCG-‐Business Model Court MISSION/VISION/VALUES/SUCCESS CRITERIA: …………………………………………..………………………..

q  Present q  Future q  Past


OPERATING MODEL VALUE PROPOSITION


PROFIT MODEL



OPERATING MODEL: Creates Value VALUE PROPOSITION: Delivers Value


PROFIT MODEL: Captures Value


“The rate of economic change is going to conJnue to be high.

Obsolescence and commodiKzaKon will not abate.

What we need are be7er tools for business development and

market creaKon.” James F. Moore

BCG-‐BUSINESS MODEL COURT A Universal Planning Tool for Rapidly Achieving Missions, Visions, Goals, and Strategies

The BCG-‐Business Model Court is a Universal Planning (End-‐Means) Tool

That Synthesizes 4 Powerful Frameworks for Trade-‐Off Problem Solving (TOPS) as well as Storytelling:

§  End-‐Means (EM) Storyboard §  TRIZ’s MulKscreen §  Brandenburger & Nalebuff’s Value Net §  BCG’s Business Model InnovaKon Framework


BENEFITS

Rapid Innova:on and Improvement (Win-‐Win) at 5 Levels §  Personal/Employee/Career Development §  Product/Service Development §  Enterprise/Business (Unit)/Profit Model Development §  Industry/Domain Development §  Local/Regional/Global Development & Security


MISSION/VISION “A BCG-‐Business Model Court for Every §  Person/Employee/Career §  Product/Service §  Enterprise/Business (Unit)/Profit Model §  Industry/Domain §  Local/Regional/Global Economy & Defense Force On the Planet”



BCG-‐Business Model Court Visual Synthesis of Tools for Universal Problem Solving, Project Planning, Improvement, and InnovaKon


HIGHEST

OUTCOMES (Ideal Result)

ENVIRONMENT (Supersystem: Industry/Ecosystem/Value Net; Arena; OpJon Space)

BUSINESS MODEL (System: Theater; Extended Enterprise;

Value Chain)

q  Mission/Purpose q  Vision; Values q  Goals/ObjecJves q  Targets/Success Criteria/ Key Metrics/KPIs

q  Policy q  Strategy (Trade-‐off) q  Value ProposiJon

PROBLEM HIERARCHY (“What?”)

SOLUTION HIERARCHY

PROJECT OUTPUTS (Reality vs. Hypotheses)

q  Job To Get Done

q  Profit Model q  Product/ Service/ Campaign q  O.T.H.E.R. Process

GOLD

EN

PYRA

MID


END

MEANS


END

MEANS

How? Why?


END (Hypothesis/Fact)

MEANS (Hypothesis/Fact)

How? Why?


END (Hierarchy/Network)

MEANS (Hierarchy/Network)

How? Why?



TOOL(S)

How? Why?



How? Why?

Ambidexterity Principle (Hierarchy/Network)



How? Why?

Ambidexterity Principle “Pursue ideal win-‐win strategies and soluKons”



Ambidexterity ObjecKve (Challenge) “Pursue ideal win-‐win strategies and soluKons”

Short-‐term Objec:ve (Challenge) Con:nuously and Simply Create

Awesome Customer Experiences (ACEs) at Minimum Cost

Long-‐term Objec:ve (Challenge) Rapidly Pursue Sustainable Compe::ve Advantage

How? Why?



How? Why?

O: Observe (Detect; Sense)

T: Think (Analyze) H: Hypothesize

E: Experiment/ Execute (Act)

R: Reflect (Pivot or Persevere?)

Outcomes (R

esults)

O.T.H.E.R. Loop



How? Why?

ANTI-‐SYSTEM (Trade-‐off)

PAIN (-‐)

PAIN (-‐)

SYSTEM (Trade-‐off)

Pro (Win)

Cons (Lose)

Pro (Win)

Cons (Lose)

WIN-‐WIN SYSTEM (Ideal SoluJon)

DELIGHT (+)

DELIGHT (+)



How? Why?


PAIN (-‐)

PAIN (-‐)


Pro (Win)

Cons (Lose)

Pro (Win)

Cons (Lose)


DELIGHT (+)

DELIGHT (+)

THEME/ JOB TO

GET DONE



How? Why? (+): DE

LIGHT

(Objec:ve)

Low (1)

Low: (1)

High: (10)

(-‐): PAIN (Constraint) High (10)

Trade-‐off Strategies & Business Models



How? Why?

Blue Ocean

(Value Innova:on)

Sweet Spot

Luxury Spot

(High Differen:a:on)

DisrupKon Spot

(Low Cost)

Stuck-‐in-‐the-‐

Middle

Red Ocean

(+): DE

LIGHT

(Differen:a

:on; Revenue)

Low (1)

Low: (1)

High: (10)

(-‐): PAIN (Cost) High (10)




Ambidextrous Strategies & Business Models

CANONICAL STRATEGIES

Blue Ocean Strategy

DisrupKve InnovaKon Strategy

Red Ocean Strategy

Differen-‐KaKon Strategy

Stuck-‐in-‐the-‐Middle Strategy

STARTUP (Experimenta@on -‐

Explora@on)

COMPANY (Execu@on -‐ Exploita@on)

How? Why?




CANONICAL BUSINESS MODELS

Blue Ocean Bus. Model

DisrupKve InnovaKon Bus. Model

Red Ocean Bus. Model

Differen-‐KaKon

Bus. Model

Stuck-‐in-‐the-‐Middle Bus. Model


Explora@on)


How? Why?




How? Why?




COMPLEMENTORS

SUPP

LIER

S

CUSTOMER

S

COMPETITORS (Incumbents: SubsKtutes; New Entrants/Startups)

How? Why?




COMPLEMENTORS

SUPP

LIER

S

CUSTOMER

S


How? Why?

VALUE NET (ECOSYSTEM; ARENA; OPTION SPACE)




COMPLEMENTORS

SUPP

LIER

S

CUSTOMER

S


How? Why?

Bargaining Power & Threat (Forces; Influence): AXrac:veness




COMPLEMENTORS

SUPP

LIER

S

CUSTOMER

S


How? Why?

Strengths & Weaknesses (SW): Trade-‐offs




Problem-‐Solu:on Fit

Business Model Fit/ Scaling

Product-‐Market Fit

Shaping Strategy: “Orchestrate”

AdapKve Strategy: “Be Fast”

Visionary Strategy: “Be First”

Classic Strategy: “Be Big”

STARTUP (Minimum Viable Product: MVP)

COMPANY (Maximum Awesome Product: MAP)

RenewalStrategy: “Be viable”

STRATEGY PALETTE

How? Why?















STRATEGY PALETTE

How? Why?














Ambidextrous Strategies & Business Models COMPLEMENTORS

SUPP

LIER

S

CUSTOMER

S

COMPETITORS (Incumbents: SubsKtutes; New Entrants/Startups) STRATEGY PALETTE

How? Why?





Shaping Bus. Model: “Orchestrate”

AdapKve Bus. Model: “Be Fast”

Visionary Bus. Model: “Be First”

Classic Bus. Model:

“Be Big”



Renewal Bus. Model: “Be viable”




SUPP

LIER

S

CUSTOMER

S

COMPETITORS (Incumbents: SubsKtutes; New Entrants/Startups) BUSINESS MODEL PALETTE

How? Why?


How? Why?

DiagnosKcian: Take an external

perspec:ve

Segmenter: Match approach to environment

Disrupter: Review diagnosis and segmenta:on

Team Coach: Select the right people for the job

8 CRITICAL ROLES OF

AMBIDEXTROUS LEADER

Salesperson: Advocate for the strategic choices

(stories)

Inquisitor: Ask probing ques:ons to help thinking

Antenna: Selec:vely amplify important signals

Accelerator: Put weight behind cri:cal ini:a:ves

BUSINESS MODEL ANIMATOR






Environment (Global)

Industry (Ecosystem; Arena; OpJon Space)

System (Business/Profit/Enterprise Model; Product/Service; “Court”)





Industry (Arena; OpJon Space)







COMPLEMENTORS

SUPP

LIER

S

CUSTOMER

S





Environment (Global) COMPLEMENTORS

SUPP

LIER

S

CUSTOMER

S






SUPP

LIER

S

CUSTOMER

S


Strengths & Weaknesses (SW): Trade-‐offs

DialecKcs Court

(3 Panels)

Ping Pong Court

(4 Panels)

Bookkeeping Court

(6 Panels)

Soccer Court

(6 Panels)

BMC Court

(9 Panels)

Tennis Court

(10 Panels)

3x3 Fractal Court

(9 Panels)

Swimlane Court

(2 or More Panels)

Job To Get Done (Market/Goal): Visually Document, Organize, and Manage Informa:on Especially for Projects on Business (Profit) Model Innova:on and Improvement

COURTS FOR BUSINESS MODEL GAMES:

Visually Document, Organize, and Manage

InformaJon

COURTS (INTERFACES) FOR VISUALIZING SYSTEMS AND BUSINESS MODELS


UNIVERSAL SYSTEM MODEL Overview

The Universal System Model (USM), Which is Developed by Rod King, is a Simple and IntuiJve Flow Diagram for Visualizing How Any System Works Especially in Business


Customer

Supplier/Input

Revenue (Delight)

Output (Product/Service)

Cost (Pain)

UNIVERSAL SYSTEM MODEL




q  Past q  Present q  Future

Customer

Supplier/Input

Revenue (Delight)


Cost (Pain)

Processing







Customer

Supplier/Input

Revenue (Delight)


Channel

Cost (Pain)

Processing





Customer

Supplier/Input

Revenue Model (Delight)

Channel

Cost Model (Pain)


Product/Service

Processing




Channel


Product/Service

Processing



Supplier

Customer





Supplier

Customer


UNIVERSAL SYSTEM MODEL (One-‐sided Market)



Supplier

Customer Segment 1


UNIVERSAL SYSTEM MODEL (Two-‐sided Market)



Supplier

Customer Segment 1

Customer Segment 2


UNIVERSAL SYSTEM MODEL (Mul:-‐sided Market)



Supplier

Customer Segment 1

Customer Segment 2

Customer Segment 3




Supplier

Customer




Supplier

Customer


Channel

Cost Model (Pain)

Product/Service Processing


Customer

Supplier/Input


Product/Service Channel

Cost Model (Pain)

Processing





Customer

Supplier/Input



Cost Model (Pain)

PROFIT MODEL (VALUE; Margin)

Processing





Suppliers/Input (Key Partners)

Processing (Key AcJviJes)


Customer/Client (Goal/Constraints)

Resources (Key Resources)

Retailers (Channels/Rel.)

Customer

Supplier/Input



Cost Model (Pain)


Processing













Cost Model (Pain)

COMPLEMENTORS

SUPP

LIER

S

CUSTOMER

S





Customer

Supplier/Input


COMPLEMENTORS

SUPP

LIER

S

CUSTOMER

S









Cost Model (Pain) Revenue Model (Delight) PROFIT MODEL (VALUE; Margin)



UNIVERSAL SYSTEM MODEL Differently Organizing Topics of BCG’s Business Model InnovaJon Framework

BCG’s 3 Windows of a Business Model BCG’s Components of a Profit (Business) Model

Source of Windows of Business Model: hAps://www.bcg.com/documents/file36456.pdf

Value Proposi@on Window: Delivers value

Opera@ng Model Window: Creates value

PROFIT MARGIN Window: Captures value


Business Model InnovaKon and Improvement Value Hierarchy (AccounKng) & Supply Chain Logic

BUSINESS (PROFIT) MODEL

Captures Value

OPERATING MODEL (Cost Structure:

Pain) Creates Value

OrganizaKon

(Resources)

VALUE PROPOSITION (Revenue Streams:

Delight) Delivers Value

Value Chain

(Ac:vi:es)

Product/Service (Output)

Customer Segments

Strategic (Supply Chain)

Logic

Opera:onal (Process) Logic


Profit Margin

Accoun:ng (Financial)

Logic


Captures Value


Pain) Creates Value

OrganizaKon

(Resources)



Value Chain

(Ac:vi:es)


Channels/ Rel.

(Distribu:on)



Suppliers/Inputs

(Partners)

Customer Segments (Clients)


Profit Margin Strategic

(Supply Chain) Logic


Logic


Captures Value


Pain) Creates Value

OrganizaKon

(Resources)

Suppliers/Inputs

(Partners)



Value Chain

(Ac:vi:es)


Channels/ Rel.

(Distribu:on)




VALUE ENGINE

ENTERPRISE ENGINE: Value Crea:on CUSTOMER GROWTH ENGINE: Value Delivery

Cost

Supply

Revenue

Demand





Logic


Captures Value


Pain) Creates Value

OrganizaKon

(Resources)

Suppliers/Inputs

(Partners)



Value Chain

(Ac:vi:es)


Channels/ Rel.

(Distribu:on)




VALUE ENGINE

ENTERPRISE ENGINE: Value Crea:on CUSTOMER GROWTH ENGINE: Value Delivery



Cost

Supply

Revenue

Demand




Logic



Cost Model (Pain) Revenue Model (Delight)






Value Chain

Product/Service Customer/Client

OrganizaKon







Suppliers/Input Value Chain

Product/Service Customer/Client

OrganizaKon Channels/Rel.







Suppliers/Input Value Chain

Product/Service (Ideal SoluJon)


OrganizaKon Channels/Rel. (DistribuJon)








Value Chain (Key AcJviJes)



OrganizaKon (Key Resources)

Channels/Rel. (DistribuJon)














Customer Segment

Org./Value Chain



Cost Model (Pain)

Processing




COMPLEMENTORS

SUPP

LIER

S

CUSTOMER

S










Customer Segment

Org./Value Chain



Cost Model (Pain)

Processing




COMPLEMENTORS

SUPP

LIER

S

CUSTOMER

S













COMPLEMENTORS

SUPP

LIER

S

CUSTOMER

S

SCOPE: COMPETITORS (Incumbents: SubsKtutes; New Entrants/Startups)




RULES TACTICS




PLAYERS (TEAM)






COMPLEMENTORS

SUPP

LIER

S

CUSTOMER

S





RULES TACTICS




PLAYERS (TEAM)


Cost Model (Pain) Revenue Model (Delight) PROFIT MODEL (Captures VALUE)




COMPLEMENTORS

SUPP

LIER

S

CUSTOMER

S




What inputs and partners are needed to create, deliver, and capture value?


How to rapidly achieve ideal final result or outcome?


What is the ideal final result or outcome? What is (ideal) tool?


What is the problem, goal, Job To Get Done (JTGD), and/or desired outcome of customer? What is prevenKng customer from achiev-‐ing goal/outcome? Why? Why? Why?


What resources are required to deliver result/outcome?


channel or mean to deliver soluKon?





COMPLEMENTORS

SUPP

LIER

S

CUSTOMER

S




What inputs and partners are needed to create, deliver, and capture value?



Output (Product/Service; Ideal SoluJon)






Retailers (Channel/Rel.)

What is the ideal channel or mean to deliver soluKon?





COMPLEMENTORS

SUPP

LIER

S

CUSTOMER

S


OPERATING MODEL: Creates Experience VALUE PROPOSITION: Delivers Experience


What partners are needed to create, deliver, and capture value?









Channel/Rel. (DistribuJon)

What is the ideal channel or mean to deliver soluKon?


BCG-‐Business Model Court MISSION/VISION/VALUES/SUCCESS CRITERIA: Create Awesome Customer Experience (ACE) at Minimum Cost

GEN

ERIC

QUESTIONS



PRODUCT DEVELOPMENT CUSTOMER DEVELOPMENT


FINANCE



COMPLEMENTORS

SUPP

LIER

S

CUSTOMER

S


OPERATING MODEL: Creates Experience VALUE PROPOSITION: Delivers Experience



RULES TACTICS




PLAYERS (TEAM)






OPERATING MODEL: Creates Experience VALUE PROPOSITION: Delivers Experience Where to PLAY?



What CAPABILITIES are Required?




What MANAGEMENT SYSTEMS are Required?


Cost Model (Pain) Revenue Model (Delight) PROFIT MODEL (How to WIN?)

BCG-‐Business Model Court MISSION/VISION/VALUES/SUCCESS CRITERIA: What is the WINNING ASPIRATION?

q  Present q  Future q  Past PL

AYING-‐

TO-‐W

IN-‐

CHOICES

Where to COMPETE?

Example of a Project on PROFIT INNOVATION AND IMPROVEMENT

Using a Pladorm of Tools on the BCG-‐Business Model Court


BCG-‐Business Model Court for a Project by Bruce Henderson’s InsKtute MISSION/VISION/VALUES/SUCCESS CRITERIA:

Originate and develop, translate and apply new ideas in strategy and management ü  Present (2015) q  Future q  Past


MEANS (Hierarchy/Network)





SUPP

LIER

S

CUSTOMER

S






SUPP

LIER

S

CUSTOMER

S


Strengths & Weaknesses (SW)





SUPP

LIER

S

CUSTOMER

S


O: Observe (Detect; Sense)

T: Think (Analyze) H: Hypothesize

E: Experiment/ Execute (Act)

R: Reflect (Pivot or Persevere?)

O.T.H.E.R. Loop





PAIN (-‐)

PAIN (-‐)


Pro (Win)

Cons (Lose)

Pro (Win)

Cons (Lose)


DELIGHT (+)

DELIGHT (+)

THEME/ JOB TO

GET DONE




Blue Ocean

(Value Innova:on)

Sweet Spot

Luxury Spot

(High Differen:a:on)

DisrupKon Spot

(Low Cost)

Stuck-‐in-‐the-‐

Middle

Red Ocean

(+): DE

LIGHT

(Differen:a

:on; Revenue)

Low (1)

Low: (1)

High: (10)

(-‐): PAIN (Cost) High (10)
















SUPP

LIER

S

CUSTOMER

S

COMPETITORS (Incumbents: SubsKtutes; New Entrants/Startups) STRATEGY PALETTE




COMPLEMENTORS

SUPP

LIER

S

CUSTOMER

S







COMPLEMENTORS

SUPP

LIER

S

CUSTOMER

S





RULES TACTICS




PLAYERS (TEAM)






COMPLEMENTORS

SUPP

LIER

S

CUSTOMER

S





RULES TACTICS




PLAYERS (TEAM)



ü  Present (2015)




DiagnosKcian: Take an external

perspec:ve

Segmenter: Match approach to environment

Disrupter: Review diagnosis and segmenta:on

Team Coach: Select the right people for the job

8 CRITICAL ROLES OF

AMBIDEXTROUS LEADER

Salesperson: Advocate for the strategic choices

(stories)

Inquisitor: Ask probing ques:ons to help thinking

Antenna: Selec:vely amplify important signals

Accelerator: Put weight behind cri:cal ini:a:ves

BUSINESS MODEL ANIMATOR

ü  Present (2015)




RAPIDLY PURSUE SUSTAINABLE COMPETITIVE ADVANTAGE

CompeKKve Advantage