the lean strategy canvas for startups and established organizations: a visual toolkit for...

#QBE. Dr. Rod King. [email protected] & h9p://businessmodels.ning.com & h9p://twi9er.com/RodKuhnKing

“Smart” Execu.on Cycle Doing

Outcome Done

Plan To Do

Rapidly Eliminate “Fat Strategy” and Maximize Profitability



Outcome Done

Plan To Do


Problem?


SoluMon Idea/Task


Outcome Done

Plan To Do


Problem?


“6 Gates”


Outcome Done

Plan To Do


SoluMon Idea/Task

Problem?


“6 Gates”


Outcome Done

Plan To Do

(Top Problem or Challenge) Lean Canvas Business Model Canvas Business Model Storyboard

Business Model Trade-‐off, Analysis, and Strategy

(Strategic Customer Problem Solving)

Tac.cs, Experiments, and Validated Learning

(Opera:onal Customer Problem Solving) Result

(Deficit or Gap from ‘Ideal’)


TradiMonal Business Plan

Business Model

Strategy

Product/Service

SoluMon Idea/Task

Problem?


Plan To Do

Result


Build (Do/Try)

Measure Learn


“6 Gates”


(Opera:onal Customer Problem Solving)



Minimum Viable Proposi:on (MVP)

Outcome Done



Business Model

Strategy

Product/Service


SoluMon Idea/Task

Problem?

PROFIT (MARGIN) q  Maximum Number of Users/Paying Customers q  Minimum Cost (Waste) Build

(Do/Try)

Measure Learn



Business Model




(Opera:onal Customer Problem Solving)

MISSION/VISION


“6 Gates”

Users/Customers (Trade-‐off; Success Criteria)

q  E: Engagement; Experience q  A: Acquisi.on; Ac.va.on q  R: Reten.on; Revenue

Outcome

Result



Plan To Do


Strategy

Product/Service


SoluMon Idea/Task

VALUE (Happiness) q  Maximum Delight: Effec.veness q  Minimum Pain: Cost (Waste) q  Awesome Customer Experience Build

(Do/Try)

Measure Learn



“6 Gates”

Users/Customers (Trade-‐off; Success Criteria)

q  E: Engagement; Experience q  A: Acquisi.on; Ac.va.on q  R: Reten.on

MISSION/VISION

Outcome




(Opera:onal Customer Problem Solving) Result


Plan To Do


Rapidly Eliminate “Fat Strategy” and Maximize Shared Value


Business Model

Strategy

Product/Service


SoluMon Idea/Task

#4ROD. Dr. Rod King. [email protected] & h9p://businessmodels.ning.com & h9p://twi9er.com/RodKuhnKing

Lean Strategy Canvas Rapidly Eliminate Fat Strategy and Maximize Profitability

A Lean Strategy Canvas Is

A Unique Space-‐Timeline or Kanban Board For Effec:vely and Efficiently

Visualizing, Managing, and PresenMng The Workflow of Any Strategy

“Lean Strategy” refers to a set of problem-‐solving strategies, any of which effec.vely and efficiently delivers an Awesome Customer Experience (ACE) as well as greater Shared Value (Profitability)


Visually Organize Ideas and Solve Any Problem

Method/ImplementaMon Space (Doing)

CreaMve LifeSpace (Networking; Learning)

SoluMo

n Spa

ce

(To Do

)

Prob

lem Spa

ce

(Don

e)

ITENN Lean Business Model Canvas

DramaMc Story Canvas

Lean Strategy Canvas (Problem Solving Envelope)

Business Model Dashboard

Value Engine Map

Six Gates to Profitability

LEAN STRATEGY TOOLKIT Integrated Tools For Lean Strategy

25 Investor QuesMons

Business Model Storyboard


LEAN STRATEGY TOOLKIT

Integrated Tools for Rapidly Elimina:ng Fat Strategy and Maximizing Profitability

The Six Gates to Profitability (Ques.on-‐Based Entrepreneurship)



Outcome Done

Plan To Do


SoluMon Idea/Task

Problem?



Outcome Done

Plan To Do

Develop/Validate … “6 Gates to Profitability” 1.   Problem-‐SoluMon Fitness

2.   Value ProposiMon Fitness

3.   Product-‐Market Feasibility

4.   Revenue Model Feasibility

5.   Resource-‐Based Feasibility

6.   Business Model Advantage


SoluMon Idea/Task

Problem?


Problem-‐SoluMon Fitness

Value ProposiMon Fitness

Product-‐Market Feasibility

Revenue Model Feasibility

Resource-‐Based Feasibility

BUSINESS MODEL ADVANTAGE

1 2

3

4

5

6

PROFIT (MARGIN)

Plan To Do

Develop/Validate … “6 Gates to Profitability”


SoluMon Idea/Task

25 INVESTOR QUESTIONS (IQs) for BUSINESS MODEL PROFITABILITY

Visually Organize, Manage, and Test Ideas for Improving Business Model Profitability


1. Problem-‐SoluMon Fitness 1.1 What is the main physical/intellectual/emo.onal/spiritual task or Job To Get Done for the customer segment (archetype)? 1.2 What are the top 3 problems, challenges, constraints, barriers, or trade-‐offs before/during/ader the Job To Get Done? 1.3 What are features of the product/service/business model that resolve the top 3 problems or trade-‐offs of the targeted customer segment (archetype)?

2. Value ProposiMon Fitness 2.1 What is the Value Proposi.on for the customer segment (archetype)? 2.2 How likely, on a scale from 0 (not likely) to 10 (highly likely), would customers purchase product/service based on the Value Proposi.on? 2.3 How is the Value Proposi.on similar to that of compe.tors? 2.4 How is the Value Proposi.on different from that of compe.tors? 2.5 How does the (minimum viable) ad/product/service/business model embody or reflect the Value Proposi.on? 2.6 To what extent does the Value Proposi.on help engage, acquire, and retain targeted customers?

3. Product-‐Market Feasibility 3.1 What hierarchy of jobs or tasks does the product/service help the targeted customers to do? 3.2 What is the minimum viable market size, value, share, and growth rate for the product/service? 3.3 What is the minimum viable product/service for delivering the primary func.onality, benefit, or delight to the targeted customers? 3.4 What is the level of compa.bility between main func.onality of the product/service and the customer’s core jobs to get done? 3.5 Through what channels and rela.onships would the product/service be delivered to the targeted customers? 3.6 What are customer experiences as well as level of loyalty (Net Promoter Score) for the product/service?

4. Revenue Model Feasibility 4.1 How does the business make money: What are minimum revenue streams and volume of revenue for the business? 4.2 How does the business increase revenue as well as customer value (experience) and loyalty? 4.3 What are alterna.ve means such as profit, revenue, and business model pakerns by which the business can increase (recurring) revenue?

5. Resource-‐Based Feasibility 5.1 What physical/intellectual/emo.onal/spiritual resources and competences of the business model are valuable, rare, inimitable, and non-‐subs.tutable? 5.2 What is the cost structure as well as cost of resources for (a minimum viable) business model?

6. Business Model Advantage 6.1 What is the profit margin (Return On Investment) for the business model? 6.2 What are the compe..ve strategy and tac.cs (including switching costs and network effects) for the business model? 6.3 What is the trade-‐off of the compe..ve strategy or business model? 6.4 How disrup.ve and scalable is the business model? 6.5 How does the business con.nuously discover and solve Big Urgent Market Problems (BUMPs) especially in an environment of great uncertainty?

Lean Business Model Canvas A One-‐page Tool for Visually Organizing and Managing Responses to

The 25 Investor Ques:ons for Business Model Profitability

TOPICS FOR STORY OF LEAN BUSINESS MODEL CANVAS

Holis:cally Document, Present, and Manage Organiza:onal Success (Failure) in Business and Life


Lean Business Model Canvas = Lean Canvas + Business Model Canvas

Lean Canvas Business Model Canvas

q  Problem

q  SoluMon

q  Key Metrics

q  Profit (Value)

q  Cost Structure

q  Revenue Streams

q  Value ProposiMons

q  Channels

q  Customer Segments

q  Unfair Advantage

q  Key Partners

q  Key Resources

q  Key AcMviMes

q  Customer RelaMonships

Problem Finding & Solving/Performance Management Business Model Visualiza:on, Resources, and Viability


Problem Pain: (Un)Known

RED OCE

AN BLU

E OCEAN

SoluMon Gain: (Un)Known

Business Model

Business Model

Before

Aaer

Key Metrics

Lean Business Model Canvas

Source: Based on Business Model Canvas -‐ hbp://en.wikipedia.org/wiki/Business_Model_Canvas & Lean Canvas -‐ hbp://prac:cetrumpstheory.com/2012/02/why-‐lean-‐canvas/

Job To Get Done/Experience (Journey: Strategy/Execu.on)


1a 1b 1c



RED OCE

AN BLU

E OCEAN


Business Model

Business Model

Before

Aaer

Busine

ss M

odel

(System)

Key Metrics



VALUE CREATION (Enterprise Engine)

VALUE DELIVERY (Customer Growth Engine)

VALUE CAPTURE/SHARING (Value Engine)

KP

KA VP CR CS C$ P$

KR CH R$

BUSINESS MODEL ENVIRONMENT (Compe..ve/Unfair Advantage)



1a 1b 1c

1d



RED OCE

AN BLU

E OCEAN


Business Model

Business Model

Before

Aaer

Busine

ss M

odel

(System)

Key Metrics






KP

KA VP CR CS C$ P$

KR CH R$




1a 1b 1c

3a

2b 2a

3b

3d

0

3c

4b

4a

5b

5a

5c

6 1d



RED OCE

AN BLU

E OCEAN


Business Model

Business Model

Before

Aaer

Busine

ss M

odel

(System)

Key Metrics






KP

KA VP CR CS C$ P$

KR CH R$




DramaMc Story Canvas Holis:cally Document, Present, and Manage Ideas for Organiza:onal Success

DRAMATIC STORY CANVAS

Holis:cally Document, Present, and Manage Ideas for Organiza:onal Success (Failure) in Business and Life



RED OCE

AN BLU

E OCEAN


Business Model

Business Model

Before

Aaer


Business Model Storyboard A One-‐page Tool for Documen:ng and Checking the Logic of a Business Model

Dr. Rod King. [email protected] & h9p://businessmodels.ning.com & h9p://twi9er.com/RodKuhnKing

ENTERPRISE ENGINE

CUSTOMER GROWTH ENGINE

VALUE ENGINE

delivers

requires

drives

requires

Product/Value ProposiMon

Channels & RelaMonships

Customer/Job-‐To-‐Get-‐Done

require(s)

require(s)

Inputs/Partners

Internal Resources

Processes/AcMviMes

require(s) affect(s)

require(s) deliver(s)

Cost (Pain)

Revenue (Delight)

PROFIT (VALUE)

requires

drive(s)

delights

delight(s)

delight(s)

(Problem

-‐Solu.

on Fit; Produ

ct-‐M

arket F

it)

Job-‐To-‐ Get-‐Done

Create Value Deliver Value Capture/Share Value

BUSINESS MODEL STORYBOARD Visualize the Building Blocks and Norma:ve Logic of a Business Model

#VPGen. Dr. Rod King. [email protected] & h9p://businessmodels.ning.com & h9p://twi9er.com/RodKuhnKing

ENTERPRISE ENGINE: Value Crea:on (Reduce Cost)

CUSTOMER GROWTH ENGINE: Value Delivery (Increase Revenue)

Inputs/Partners q Co-‐crea.on; Social Media q Open Source Collabora.on q Crowd-‐funding/sourcing q Frac.onaliza.on/Co-‐owner q  Investor/Sponsor/Donor q Mergers & Acquisi.ons

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

Processes/AcMviMes q Opera.onal Excellence; JIT q Automa.on (Self-‐service/DIY) q Gamifica.on; Digitaliza.on q Ecosystem Management q Problem Solving; Consul.ng q Compe..ve Strategies

Product/Value ProposiMon q Asset Sale/Direct Sale q Product Leadership/Extension q Used/2nd Hand Product; Bargain q Customiza.on (Value Factors) q Bundling/Unbundling q Product/Sodware as a Service

Channels & RelaMonships q Offline/Online; (In)direct Sale q Franchise; Licensing; Affiliates q Distributor; Disintermediator q Ad Network; Brand Mul.plier q Aggrega.on/Disaggrega.on q Auc.on/Reverse Auc.on

Customer/Job-‐To-‐Get-‐Done q Customer In.macy/Loyalty q B2B; B2C q Long Tail; Community (Hub) q Two-‐sided Market (Segments) q Mul.-‐sided Market (Planorm) q Luxury/Mass Market/Niche

Cost (Pain) q Outsourcing; Specializa.on q Group Deals q Lending/Ren.ng/Leasing q Cross-‐subsidiza.on q Frac.onaliza.on/Co-‐owner

Revenue (Delight) q Pre-‐payment; Amor.za.on q Discount; Dynamic Pricing q Razor Blade (“Bait & Switch”) q Usage Fee; Subscrip.on Fee q Tiered Payment; Freemium q Dona.on; Free

PROFIT (VALUE) q Shared Value (Profit) q Transient Compe..ve Adv. q Sustainable Compe..ve Adv. q Red Ocean; Low Cost/Margin q Blue Ocean; Luxury Spot q Disrup.on/Lean Spot

VALUE ENGINE: Value Sharing (Increase Profit)

51 BUSINESS PROFIT PATTERNS (Strategic Choices for Business Model Profitability)

Business Model Dashboard The 3 Levels of Business Model Performance


BUSINESS MODEL DASHBOARD

BUSINESS MODEL DASHBOARD Outcome (Result/Impact/Trade-‐off/SWOT)

Supersystem

Region/Gov./NGOs

Influencers/ Media

Non-‐Customers (Prospects)

PESTLIED Events/Trends

Environment (Market/Industry)

Suppliers

Channels/ Rela.onships

(In)Direct Compe.tors

New Entrants (Startups)

Customers

System (Enterprise)

Input

Processor

Output

Feedback

The 3 Levels of Business Model Performance


ENVIRONMENT (Market/Industry)

SYSTEM (Enterprise)


SUPERSYSTEM Nested System Hierarchy


ENVIRONMENT (Market/Industry)

SYSTEM (Enterprise)


Business Model Ques:onnaires for Con:nuously Managing, Improving, and Disrup:ng Business Models

Business Model Ques:onnaire – Environment (Market/Industry) Level

Business Model Ques:onnaire – Enterprise (System) Level

SUPERSYSTEM

Value Engine Map Fat Strategy vs. Lean Strategy

VALUE ENGINE MAP

(-‐): PAIN:

(+): DE

LIGHT

:

Big Urgent Market Problem (BUMP): ………………………………………………………………………………………………………………… Job To Be Done (Market/Goal): ………………………………………………………………………………………………………………………….

Ideal Final Result (IFR): Insanely Great Experience or Ideal Minimum Viable Proposi:on (MVP)

Low (1)

High (10)

Low (1)

High (10)

VALUE ENGINE MAP for Red Ocean DisrupMon (ROD) Strategy and TacMcs

(-‐): PAIN:

(+): DE

LIGHT

:

BLUE OCEAN [Business Model]

RED OCEAN [Business Model]

Big Urgent Market Problem (BUMP): ………………………………………………………………………………………………………………… Job To Be Done (Market/Goal): ………………………………………………………………………………………………………………………….


Low (1)

High (10)

Low (1)

High (10)

(-‐): PAIN: Cost

(+): DE

LIGHT

: Diffe

ren@

a@on

BLUE OCEAN Strategy

RED OCEAN Strategy

LUXURY SPOT/ “DIFFERENTIATION”

Strategy

GREEN OCEAN Strategy

NO-‐MAN’S-‐ISLAND Strategy

VOLCANO SPOT Strategy

SWEET SPOT Strategy

OASIS SPOT/ “STUCK-‐IN-‐THE-‐MIDDLE”

Strategy

DISRUPTION SPOT/ “LOW COST” Strategy

VALUE ENGINE MAP of Strategies Big Urgent Market Problem (BUMP): ………………………………………………………………………………………………………………… Job To Be Done (Market/Goal): ………………………………………………………………………………………………………………………….


Low (1)

High (10)

Low (1)

High (10)

(-‐): PAIN: Cost

(+): DE

LIGHT

: Diffe

ren@

a@on

BLUE OCEAN Customers

RED OCEAN Customers

LUXURY SPOT/ “DIFFERENTIATION”

Customers

GREEN OCEAN Customers

NO-‐MAN’S-‐ISLAND Customers

VOLCANO SPOT Customers

SWEET SPOT Customers

OASIS SPOT/ “STUCK-‐IN-‐THE-‐MIDDLE”

Customers

DISRUPTION SPOT/ “LOW COST”/LEAN

Customers

VALUE ENGINE MAP of Market Universe: 9 Archetypal Customer Segments (Personas) Big Urgent Market Problem (BUMP): ………………………………………………………………………………………………………………… Job To Be Done (Market/Goal): ………………………………………………………………………………………………………………………….


Low (1)

High (10)

Low (1)

High (10)

Rapidly Eliminate “Fat Strategy” &

Maximize Profitability

Don’t Just Start a Business Project With A Minimum Viable Product (MVP). Start With and Test the Vision of

A Resona.ng Customer Trade-‐off (RCT) That Promises

An Awesome Customer Experience (ACE).

In Every Project, Begin With and ConMnuously Test the Vision of Delivering

An Awesome Customer Experience (ACE).

EXERCISE: Lean Strategy Game Plan, test, validate, and present a scalable “magical” idea/product/service/business model/value network (ecosystem) that delivers an Awesome Customer Experience (ACE) in a given industry or domain.



Outcome Done

Plan To Do




Outcome Done

Plan To Do


Problem?



Outcome Done

Plan To Do

Plan, test, validate, and present a scalable “magical” idea/product/service/business model/value network (ecosystem) that delivers an Awesome Customer Experience (ACE) in a given industry or domain.


Problem?



Outcome Done

Plan To Do

Plan, test, validate, and present a scalable “magical” idea/product/service/business model/value network (ecosystem) that delivers an Awesome Customer Experience (ACE) in a given industry or domain.


Awesome Customer Experience (ACE) in given industry/domain

Problem?

the lean strategy canvas for startups and established organizations: a visual toolkit for...

Business

engagementexperience

gates smartexecu

solumon ideatask smartexecu

onmvp outcome

veness q minimumpain

andvalidatedlearning