A Business DNA Map of the Business Model Canvas

Thinking Different for Infinite Shared Happiness

A BUSINESS DNA MAP OF
THE BUSINESS MODEL CANVAS
Towards a Unified Tool for
Business Model Innovation, Strategic Planning, and Performance Management

Dr. Rod Kuhn King

EVERY OBJECT
IN
THE UNIVERSE
IS
A FASCINATING STORY
AT PRESENT AND IN FUTURE

WHAT’S
YOUR FASCINATING STORY?

THE BUSINESS DNA MAP
IS
A VISUAL PLATFORM
FOR PRESENTING STORIES, MODELS, AND PROJECTS
ESPECIALLY IN
STRATEGIC MANAGEMENT,
BUSINESS STRATEGY,
AND
INNOVATION

BENEFITS OF THE BUSINESS DNA MAP
Thinking Different for Infinite Shared Happiness

Visually Present or Articulate Visually Improve Visually
 Business Ideas; Innovative Ideas  Branding  Inspire; Motivate
 Mission; Vision; Core Values  Sales; Marketing  Persuade; Convince
 Value Proposition; Elevator Speech  Product Development  Understand; Learn
 Strategy Map; Strategic Statement  Customer Development  Design; Analyze; Solve Problems
 Business/Strategic Plan; Brand  Organizational Alignment  Narrate; Tell; Show; Present
 Business Case: Success/Failure  Employee Engagement  Co-create

Visually Build/Increase ITENNSEL
BENEFITS Visually Reduce
 Credibility OF  Information Overload
 Respect THE BUSINESS DNA MAP:  Death By ‘Bullet Points’
 Cultural Identity Visually Create, Share, and  Conflicts (‘Wastes’) in Meetings as
Manage Business Stories well as Projects
in Space and Time

Visually Build/Enhance/Manage Visually Facilitate Visually Propose and Manage
 Knowledge; Holistic Thinking  Collaboration; Co-creation  Changes
 Holistic Problem Solving  Crowdsourcing; Networking  Transformations
 Creativity; Innovation  Storytelling; Conversations  Innovations
 Productivity; Performance  Writing of Business Proposals  Projects; Programs

STORY LOGIC OF THE BUSINESS DNA MAP: 3 Fundamental Building Blocks

Business DNA Question: ………………………………………………………………………………………………………………………………

D N A
Stimulus

Helper Protagonist Result
(Product) (Customer)
Challenge/Problem/Need

Response

Design Needs Aspirations
(How?) (What?) (Why?)

Copyright 2010. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing

GENERAL LOGIC OF THE BUSINESS DNA MAP: 3 Fundamental Building Blocks


D N A
Stimulus

Product Customers Result

Response



BUSINESS LOGIC OF THE BUSINESS DNA MAP


D N A
Offer/Positioning/Advertisements;
PRODUCT DELIVERY/MAINTENANCE/COST

Product Customers Result

Feedback/Attention/Interaction/
Delight/Action/Trust/Love/Desire/Loyalty;
ENQUIRY/ORDER/PAYMENT/REVENUE



THE BUSINESS MODEL CANVAS
Source: http://en.wikipedia.org/wiki/Business_Model_Canvas

“The Business Model Canvas is a strategic “It *Business Model Canvas+ is a visual chart
management template for developing new or with elements describing a firm's value
documenting existing business models.” proposition, infrastructure, customers, and
finances.”

THE BUSINESS MODEL
CANVAS

“It *Business Model Canvas+ “The Business Model Canvas
assists firms in aligning their was initially proposed by
activities by illustrating Alexander Osterwalder based on
potential trade-offs.” his earlier work on Business
Model Ontology.”


DELIGHT AND APPLICATIONS OF THE BUSINESS MODEL CANVAS
Source: Based on Osterwalder, A.; Pigneur, Y. (2009) Business Model Generation. Amsterdam: Modderman.

• Establish “As Is” and “To Be”
Establish a Common Language for • Determine Shared Goals and
Business Models
Business Model Innovation Strategic Priorities in Business
• Do Reality Check on and Clarify
• Easily Illustrate the Financial
Existing Business Model
Viability of a Business Model
• Envision Innovative Business Models

• Align Members of Leadership Team ITENNSEL • Show Members of a Team the Big
(For Instance, During Formation of DELIGHT AND APPLICATIONS Picture, Roles, and Interdependen-
New Non-profit Program) cies in a Project
OF
• Help Government Organizations THE BUSINESS MODEL CANVAS • Think Holistically and Avoid Getting
Adopt an Entrepreneurial Mindset Stuck on Details of the Business

• Assess Personal Business Model and • Design an Attractive Business Plan • Restructure Value Chain Especially
Discover Opportunities By Offering New Value Propositions
• Translate Business Plans Into
• Capture Ideas and Solutions for Business Processes and Activities for • Design Future Organizational
Projects Implementation Structure of a Company


BUSINESS MODEL CANVAS: 9 Building Blocks
Source: http://en.wikipedia.org/wiki/Business_Model_Canvas (Alexander Osterwalder & Yves Pigneur)

ITENN

PAIN AND CRITICISMS OF THE BUSINESS MODEL CANVAS
Source: http://en.wikipedia.org/wiki/Business_Model_Canvas (Based on Prof. Dr. Mark von Rosing’s Critique)

“Doesn't include a representation of
“*T}heory can't be applied to a full “Doesn't include corporate structure
the main business goals, e.g.
business model framework.” and responsibility …”
strategic business objectives, critical
successfactors and key performance
indicators, which a holistic business
model approach should include.”

“Doesn't include a representation of ITENNSEL “Doesn't have a clear cause and
the main business issues/pain points PAIN AND CRITICISMS effect linkage between the
and thereby corporate weakness, competencies, desired outcomes and
OF
which a holistic business model measurements.”
approach should include for they THE BUSINESS MODEL CANVAS “The linkages among competences,
represent the threat to the measurements and results is not
company's business model.” explicit.”

“Doesn't consider the issue of “Doesn't consider the important “Doesn't place enough emphasis on
performance measurements, which issue of goal setting, which is critical business model management and is
is vital for business modelling.” for developing the business model.” thereby missing a continuous
improvement and governance
“Doesn't include a representation of approach to the business model.”
core differentiated and core
competitive competencies …”


100,000 ft

VISIONARY PERSPECTIVE
OF
BUSINESS MODEL CANVAS

BUSINESS DNA MAP FOR BUSINESS MODEL CANVAS – Visionary Perspective


D N A

• Supply Infrastructure • Demand Infrastructure • Offer

• Profitability


Source: Based on Osterwalder, A.; Pigneur, Y. (2009) Business Model Generation. Amsterdam: Modderman Drukwerk.


Example: VISIONARY BUSINESS MODEL (Plan/Future Story/Hypotheses)
FOR
“BUSINESS MODEL GENERATION” BOOK PROJECT

D N A

• Visionaries
• Game-changers
• Visual, Practical, and • Co-creation of
• Challengers
Beautiful Handbook for a Potential
• Entrepreneurs
Business Model Innovators Bestseller
• Executives
(with Names of
• Consultants
Co-creators)
• Academics
• Companies
• Personalized Books for • Simpler
Eliminate complexity
Companies and their in visualizing business Business
Customers models Model
Innovation

SUPPLY INFRASTRUCTURE DEMAND INFRASTRUCTURE OFFER/VALUE



BUSINESS DNA MAP FOR PROFITABILITY OF “BUSINESS MODEL GENERATION” PROJECT
Business DNA Question: What are game-changing designs, needs, and aspirations for
the business visualization industry?
Stage in Lifecycle (S-Wave): Infancy Date: 2009

Business DNA D Design N Needs A Aspirations

Profitability “Inside the Enterprise” “Outside the Enterprise”
(Storyboard) - Product Development - Customer Development - Vision Management
“Business Model Generation” • Visual, Practical, and • Visionaries • Co-creation of
book by Alexander Oster- Beautiful Handbook for • Game-changers a Potential Bestseller
walder and Yves Pigneur Business Model Innovators • Challengers (with Names of
• Entrepreneurs Co-creators)
• Executives; Consultants
• Academics • Simpler Business Model
• Personalized Books for • Companies Innovation
Companies and their Eliminate complexity in visualizing
Customers business models

Benefit or Revenue: (+) • Hub Membership Fees Total Benefit or Revenue:
• Advance/Post-Publication Sales
• Free Section of Book
• Fee for Customized Version
• Royalties from Publishers

Cost: (-) • Design Total Cost:
• Content Production
• Printing
• Distribution

Value or Profit (Margin) Total Profit (Margin):
Return On Investment (ROI):



BUSINESS DNA MAP FOR SWOT ANALYSIS OF “BUSINESS MODEL GENERATION” PROJECT


SWOT Analysis “Inside the Enterprise” “Outside the Enterprise”
“Business Model Generation” • Visual, Practical, and • Visionaries • Co-creation of
book by Alexander Oster- Beautiful Handbook for • Game-changers a Potential Bestseller
walder and Yves Pigneur Business Model Innovators • Challengers (with Names of
• Entrepreneurs Co-creators)
• Executives; Consultants
• Academics • Simpler Business Model
• Personalized Books for • Companies Innovation
Companies and their
Customers

CURRENT S: Strengths Overall Strength:
SITUATION
W: Weaknesses Overall Weakness:

FUTURE O: Opportunities Overall Opportunity:
SITUATION
T: Threats Overall Threat:



BALANCED SCORECARD PERSPECTIVES FOR “BUSINESS MODEL GENERATION” PROJECT


Balanced Scorecard “Inside the Enterprise” “Outside the Enterprise”
(Storyboard: Measures) - Product Development - Customer Development - Vision Management
“Business Model Generation” • Visual, Practical, and • Visionaries; Game-changers • Co-creation of
book by Alexander Oster- Beautiful Handbook for • Challengers; Entrepreneurs a Potential Bestseller
walder and Yves Pigneur Business Model Innovators • Executives; Consultants • Business Model Innova-
• Personalized Books for … • Academics; Companies tion
Financial (Investor) To succeed financially,
Perspective how should we appear to
our shareholders?
Customer To achieve our vision, how
Perspective should we appear to our
customers?
Process To satisfy our shareholders
Perspective and customers, what
business processes must
we excel at?
Employee (Learning) To achieve our vision, how
Perspective will we sustain our ability
to change and improve?



50,000 ft

STRATEGIC PERSPECTIVE
OF
BUSINESS MODEL CANVAS

BUSINESS DNA MAP FOR BUSINESS MODEL CANVAS – Strategic Perspective


D N A

• Value
Proposition
• Key Partnerships (KP) • Channels (CH)
(VP)
• Key Resources (KR) • Customer Relationships (CR)
• Revenue (R$)
• Key Activities (KA) • Customer Segments (CS)
• Cost (C$)




Example: STRATEGIC BUSINESS MODEL (Plan/Future Story/Hypotheses)
FOR
“BUSINESS MODEL GENERATION” BOOK PROJECT

D N A

• Key Partnerships • Channels • Value
- Hub Members
- The Movement (Design) Proposition
- Word of Mouth; Guerilla Mrktng
- Ning Platform; Amazon.com - Visual, Practical,
- Businessmodel.com
- 3rd Party Logistics Company and Beautiful Hand-
• Key Resources • Customer Relationships book for Business
- Businessmodelhub.com Model Innovators
- Blog and Online Visibility - Co-creation of a Potential
- Business Model Event (Amsterdam)
- Business Model Hub Bestseller
- Powerful Methodology • Customer Segments - Personalized Books for
- Visionaries; etc. Companies and Their
• Key Activities
- Entrepreneurs Customers
- Content Production
- Companies - Bus. Model Inno
- Hub Management
- Guerilla Mrktng * Revenue
* Cost




Strategic Business DNA Dashboard for “Business Model Generation” Book

BUSINESS DNA DESIGN BLOCK NEEDS BLOCK
D (Inside the Enterprise) (Outside the Enterprise) N
BUSINESS MODEL Key Key Key Customer Channels Customer GLOBAL
CANVAS Partners Resources Activities Relation- Segments ENVIRON-
(KP) (KR) (KA) ships (CR) (CH) (CS) MENT MAP:
Business
“SEMPORCES” Suppliers/ Employee/ Machinery/ Process/ Output: Retailers/ Customers/ Model
Genes (Universal Inputs Actors/ Props/ Strategy/ Product/ Channels/ Audience Environment
System Logic) Culture/IP Infrastructure Tactics Service Distributors (BME)

“Business Model The Move- Osterwal- Co-creation Visual, Blog; Visionaries Market
Generation” ment der & Of Bestseller practical, Word-of- Game- Forces
Book (Design) Pigneur and beauti- mouth by changers
Content ful Hub Challengers Industry
Ning.com Core Team Production; handbook members Forces
Members Hub Man- Entrepreneurs
Amazon. agement Personalized Websites Executives Macro-
com Co- books for Businessmod Consultants economic
creators Guerilla companies elgeneration; Academics Forces
3rd Party (Other Marketing and their Amazon;
Logistics Hub and Word of customers Bookstores Companies Key Trends
members) Mouth

DELIGHT: Customized Free/ Hub Member- Royalties
Revenue (R$) Versions Paid: Adv. ship Fees
A PAIN: Design Printing Content Distribution
Cost (C$) Production

SHARED VALUE (PROPOSITION/VP): Co-creation of Potential Bestseller (Contains Co-creators); Simpler Business Model Innovation

Source of Information: Osterwalder, A.; Pigneur, Y. (2009) Business Model Generation. Amsterdam.


SWOT Analysis for “Business Model Generation” Book

Business

members) Mouth
S: Strengths
W: Weaknesses
A
O: Opportunities
T: Threats



Benchmarking for “Business Model Generation” Book

Business

Traditional Book Good Content/ Writing Book Publisher/ Readers ‘Five Forces’
Publishing Publisher Publ. Deal Retail of Competn

members) Mouth
A Delight: (+)
Pain: (-)



Balanced Scorecard Perspectives for “Business Model Generation” Book

Business

members) Mouth
Financial
Perspective
A Customer Persp.
Process Persp.
Learning Persp.



Business DNA Management for “Business Model Generation” Book

Business

members) Mouth
MODEL (Plan)

A PROTOTYPE (Do)
MEASURE (Check)
LEARN (Review)



Customer Development for “Business Model Generation” Book

Business

members) Mouth
Customer
Discovery
A Cust. Validation
Cust. Creation
Company Building

Source of Customer Development Phases : Blank, S. (2007) The Four Steps To The Epiphany. USA: Quad/Graphics.


Program for “Business Model Generation” Book

Business

members) Mouth
Week 1

A Week 2
Week 3
Week …



THE BUSINESS DNA MAP – 100,000ft Classic Storyboard


D N A
Offer/Positioning/Advertisements;
PRODUCT DELIVERY/MAINTENANCE/COST

Product/Solution Customer Problems/Issues Result

Feedback/Attention/Interaction/
Delight/Trust/Love/Desire/Loyalty;
ENQUIRY/ORDER/PAYMENT/REVENUE



Template: BUSINESS DNA DASHBOARD – 100,000ft Swimlane Storyboard

Stage in Lifecycle (S-Wave): …………………………..............................…………… Date: ……………………………………..


Item “Inside the Enterprise” “Outside the Enterprise”


Template: BUSINESS DNA DASHBOARD for Profitability – 100,000ft Grid Storyboard



Profitability “Inside the Enterprise” “Outside the Enterprise”

Description

DELIGHT: Benefit or Revenue Total Benefit or Revenue:
(+)

PAIN: Cost Total Cost:
(-)

Value or Profit Total Profit:


Template: SWOT ANALYSIS ON BUSINESS DNA DASHBOARD – 100,000ft Grid Storyboard



SWOT Analysis System Supersystem (Environment) Result
(Storyboard)
Description

CURRENT S: Strengths Overall Strength:
SITUATION

W: Weaknesses Overall Weakness:

FUTURE O: Opportunities Overall Opportunity:
SITUATION
T: Threats Overall Threat:


Template: BALANCED SCORECARD PERSPECTIVES ON BUSINESS DNA DASHBOARD



Balanced Scorecard “Inside the Enterprise” “Outside the Enterprise”
(Storyboard: Measures) - Product Development - Customer Development - Vision Management

Description

Financial (Investor) To succeed financially,
Perspective how should we appear to
our shareholders?
Customer To achieve our vision, how
Perspective should we appear to our
customers?
Process To satisfy our shareholders
Perspective and customers, what
business processes must
we excel at?
Employee (Learning) To achieve our vision, how
Perspective will we sustain our ability
to change and improve?


Blank Template: Strategic Business DNA Dashboard – 50,000ft

TOOL/MODEL: GLOBAL
ENVIRON-
MENT MAP:
“SEMPORCES” Suppliers/ Employee/ Machinery/ Process/ Output: Retailers/ Customers/ Environment
Genes (Universal Inputs Actors/ Props/ Strategy/ Product/ Channels/ Audience
System Logic) Culture/IP Infrastructure Tactics Service Distributors

Description

DELIGHT:

A PAIN:

SHARED VALUE (PROPOSITION):


Strategic Business DNA Dashboard for Business Model Canvas

Business
Market
Description Forces

Industry
Forces

Macro-
economic
Forces

Key Trends

DELIGHT:
Revenue (R$)
A PAIN:
Cost (C$)

SHARED VALUE (PROPOSITION/VP):


SWOT Analysis on Strategic Business DNA Dashboard

Business
Market
Description Forces

Industry
Forces

Macro-
economic
Forces

Key Trends

S: Strengths
W: Weaknesses
A
O: Opportunities
T: Threats


Balanced Scorecard Perspectives on Strategic Business DNA Dashboard

Business
Market
Description Forces

Industry
Forces

Macro-
economic
Forces

Key Trends

Financial
Perspective
A Customer Persp.
Process Persp.
Learning Persp.


Business DNA Management on Strategic Business DNA Dashboard

Business
Market
Description Forces

Industry
Forces

Macro-
economic
Forces

Key Trends

MODEL (Plan)

A PROTOTYPE (Do)
MEASURE (Check)
LEARN (Review)


Customer Development Phases on Strategic Business DNA Dashboard

Business
Market
Description Forces

Industry
Forces

Macro-
economic
Forces

Key Trends

Customer
Discovery
A Cust. Validation
Cust. Creation
Company Building

Source of Customer Development Phases : Blank, S. (2007) The Four Steps To The Epiphany. USA: Quad/Graphics.


Program for Strategic Business DNA Dashboard

Business
Market
Description Forces

Industry
Forces

Macro-
economic
Forces

Key Trends

Week 1

A Week 2
Week 3
Week …


THE ZOOMABLE BUSINESS DNA MAP: Examples
Tools for Business Model Visualization, Organization, Management, and Presentation

Level Description of Business DNA Map or Storyboard No. of
(Storyboard) (Checklist) Main Topics
200,000ft Industry Value Chain Analysis (Genome); Business Value System (Network)
100,000ft Systems View of Business DNA Map; Key Functional Departments; 3
(Visionary) Business DNA Dashboard;
User-Centered Design; IDEO’s Human Centered Design; Plan-As-You-Go;
Lean Startup Strategy; Strategy Statement;
90,000ft Balanced Scorecard; Strategy Map; 4
Four Box Model Framework; Lean Startup
70,000ft One Page Business Plan 5
50,000ft SEMPORCES Chain (Sequence of Genes); 9
(Strategic) Business Model Canvas; Lean Canvas
40,000ft Enterprise Value Chain 12
10,000ft Customer Development 14
(Tactical)
5,000ft Open Services Value Chain; Traditional Business Plan 16


Overview: BUSINESS DNA DASHBOARD FOR ZOOMABLE BUSINESS MODEL CANVAS



Item “Inside the Enterprise” “Outside the Enterprise”

Description Supply Infrastructure Demand Infrastructure Offer

Value

VISIONARY Perspective • Product • Customer • Result

- Visionary Business Model

(Goals and Objectives)
STRATEGIC Perspective • Key Partnerships (KP) • Channels (CH) • Value Proposition (VP)
• Key Resources (KR) • Customer Segments (CS) • Revenue Streams (R$)
- Business Model Canvas • Key Activities (KA) • Customer Relationships (CR) • Cost Structure (C$)

(Strategies; Hypotheses)
OPERATIONAL Perspective • Partner Performance • Customer Performance • Offer Performance
- Business Model Scorecard • Resource Performance
(Key Performance Indicators) • Activity Performance • Financial Performance


Four-Box Business Model on Strategic Business DNA Dashboard

FOUR-BOX Key Key Key Key Key GLOBAL
BUSINESS MODEL Resources Resources Activities Resources Resources ENVIRON-
(1) (2) (3) (4) MENT MAP:
Business
Market
Description Forces

Industry
Forces

Macro-
economic
Forces

Key Trends

DELIGHT:
FORMULA
PROFIT

Revenue
A PAIN:
Cost

SHARED VALUE (PROPOSITION):


30 APPLICATIONS OF BUSINESS DNA MAP

 Business Concept (Idea/Vision)
 Value Chain Modeling/Profiling  Business Model Mapping &
Dev., Testing, and Validation
Analysis
 Value Chain & Industry Analysis
 Pitching of Business Projects  Business Model Innovation
 Value Chain Optimization  Business Value Engineering
 One-Minute Business Model
 Value Chain Innovation  Financial Planning & Budgeting
 One-page Business Plan
 Strategy Mapping  Process Mapping: SIPOC
ITENN
 Value Curve Mapping BUSINESS DNA MAP:  Root-cause Analysis
A Platform for
 Business Strategy Design: Universal Strategic Planning and  Fishbone Diagramming
Low Cost Strategy; Differentiation Performance Management
Strategy; Blue Ocean Strategy;
Disruptive Innovation Strategy
 Benchmarking

 Environmental/Situational
 Value Innovation: Products/Ads  Visual Project Management
Description and Analysis
 Visual Risk/SWOT Analysis  Wargaming
 Performance Management,
for example, using the Balanced
 Trade-off Analysis  Scenarios; Decision-making
Scorecard
 Conflict Resolution  Team/Personal Development
 Total Business Intelligence


BUSINESS GENOME INDEX: A Periodic Table of Elements of Business Stories & Models
Business Genomics Ontology for Universal Strategic Management and Innovation

S E M P O R C E S
Suppliers/ Employees/ Machinery/ Processes/ Output: Retailers/ Customers/ Environ- Shared
Inputs Culture/ Tools/ Goals/ Product/ Distributors/ Consumers ment Value
IP Facility Strategies Service Channels (Care/Support)
Partners Key Resources Activities Implicit Customer Relationship Society SHARED
(Suppliers/ (Processes) Shared Management VALUE
Materials/ Value (VISION:
CAPABILITIES: CORE COMPETENCIES LOCAL GLOBAL
Info) Proposition Pain/
ENVIRONMENT ENV.
Delight)

ENTERPRISE (BUSINESS SYSTEM)

D N A
Design Needs Aspiratns
SUPPLY CHAIN COMPETI- COMPE-
(VALUE CHAIN) TIVE TITIVE
FORCES ADVAN-
TAGE
INPUT PROCESSING OUTPUT EXTERNAL ENVIRONMENT RESULT
(Impacts/
BUSINESS DNA GAME Effects)

BUSINESS GENOME INDEX (Business Genome Map/Business Semantic Web/Shared Value Model)


A Business DNA Map of the Business Model Canvas

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