“No problem can be solved from the same level of consciousness that created it.” Albert Einstein - Silicon Valley is the hub of high tech innovations and a “growth pole” of the global economy. Silicon Valley serves as headquarter to business behemoths such as Apple, Google, eBay, Facebook, Oracle, Cisco, Intel, Hewlett Packard, and Adobe. Silicon Valley also has a high density of Venture Capitalists. Given the global success of many startups in Silicon Valley, it is astounding that about 90% of funded startups fail or go bankrupt. For an outsider like me, this High Mortality Rate (HMR) of startups is unacceptable: it’s a huge waste of time, money, and talent. Surely, there must be a less risky way of building scalable startups. In my view, Silicon Valley needs a paradigm shift, now. Silicon Valley certainly needs a new movement that champions Holistic Problem Solving rather than Fragmented (Functional) Problem Solving approaches such as in traditional Agile (Product) Development and Customer (Market) Development. But, what really is Holistic Problem Solving? “Holistic Problem Solving (HPS)” refers to an integrated dashboard methodology that focuses on rapidly discovering Big Urgent Market Problems (BUMPs) while creating, delivering, and managing Awesome Customer Experiences (ACEs) at 3 levels: Level of System (Enterprise), Environment (Market/Industry), and Supersystem (Economy/Society). In Holistic Problem Solving, ideas are visually generated, organized, managed, and tracked on one page using a zoomable map: the Living System Dashboard (LSD). In recent years, startups in the Silicon Valley have increasingly been using the paradigm of Holistic Problem Solving especially by focusing on a business model or an extended enterprise as unit of analysis. Emerging holistic problem solving approaches include Eric Ries’s Lean Startup Method and Steve Blank’s Customer Development Stack. In Silicon Valley, the approaches of Lean Startup Method and Customer Development Stack are replacing traditional Business (Waterfall) Planning which has an amorphous and inordinately long Build-Measure-Learn cycle. The traditional Business Plan is considered initially unsuitable for scalable startups, which require hypotheses about market problems and customer experiences to be rapidly tested and validated (or rejected). It is important to note, however, that the Lean Startup Method and Customer Development Stack ignore the creation, delivery, sharing, and management of customer experience at the level of the supersystem (society/economy). This neglect is evident in the increasing use of the Business Model Canvas and Lean Canvas to visually organize and manage ideas for scalable startups especially in Silicon Valley. Unlike in the Living System Dashboard, however, the Business Model Canvas does not contain building blocks for competitors and elements of a supersystem. http://goo.gl/2usVrI

1. BUSINESS
MODEL
PATHOLOGY
Study
and
Develop
Models
that
Visually
Explain
the
Evolu6on
of
Trade-­‐offs
in
Living
Systems
Holis6c
Problem
Solving
&
Learning
Maximum
Learning
at
Minimum
Cost
in
No
Time
Living
System
Dashboard
(Business
Model
Dashboard)
Visually
Manage
Simple,
Complicated,
Complex,
and
Chao6c
Projects

2.
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hMp://businessmodels.ning.com
&
hMp://twiMer.com/RodKuhnKing
Business
Model
Canvas
(Scorecard
for
Managing
Extended
Enterprise)
Blue
Ocean
Strategy
(Strategy
Canvas)
Agile
(Product)
Development
Customer
Development
Living
System
Dashboard:
Fragmented
vs.
Holis?c
Problem
Solving
Tools
for
Learning
How
to
Rapidly
Discover
Customer
Problems
and
Share
Awesome
Customer
Experiences
Business
Plan
(Strategic/Financial)
Lean
Startup
(Process/
Execu?on)

3. Holis6c
Problem
Solving
Refers
to
A
Methodology
for
Visually
Managing
4
Types
of
Projects
(Systems):
q Type
1:
Known
Problem-­‐Known
Solu6on
q Type
2:
Known
Problem-­‐Unknown
Solu6on
q Type
3:
Unknown
Problem-­‐Known
Solu6on
q Type
4:
Unknown
Problem-­‐Unknown
Solu6on

4.
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hMp://businessmodels.ning.com
&
hMp://twiMer.com/RodKuhnKing
HOLISTIC
PROBLEM
SOLVING
(HPS)
WHEEL
Framework
for
Managing
Projects
Under
Varying
Condi6ons
of
Uncertainty:
Pretotype.
Prototype.
Build.
Improve.
*
SENSE
(Measure/Learn)
*
RESPOND
(Eliminate/Reduce/
Increase/Create)
PROTOTYPE
PRETOTYPE
IMPROVE
BUILD

5.
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hMp://businessmodels.ning.com
&
hMp://twiMer.com/RodKuhnKing
HOLISTIC
PROBLEM
SOLVING
(HPS)
WHEEL
Framework
for
Managing
Projects
Under
Varying
Condi6ons
of
Uncertainty:
Pretotype.
Prototype.
Build.
Improve.
*
SENSE
(Measure/Learn)
*
RESPOND
(Eliminate/Reduce/
Increase/Create)
PROTOTYPE
PRETOTYPE
IMPROVE
BUILD
Complicated
Project
Complex
Project
Simple
(Tame)
Project
Chao?c
(Wicked)
Project
Known-­‐
Knowns
Unknown-­‐
Unknowns
Unknown-­‐
Knowns
Known-­‐
Unknowns

6.
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hMp://businessmodels.ning.com
&
hMp://twiMer.com/RodKuhnKing
Classifica6on
of
Startup
Projects
(CoSP)
for
Holis?c
Problem
Solving
Evolu6on
of
Communica6on,
Knowledge,
and
Learning
Systems
PROBLEM
(Market/
Demand/Boundary)
SOLUTION
(Product/Technology)
KNOWN
(Sta6c
or
Fixed
Problem:
Job-­‐To-­‐Get-­‐Done
Hierarchy)
UNKNOWN
(Problem-­‐To-­‐Be-­‐Discovered:
Job-­‐To-­‐Get-­‐Done
Hierarchy)
KNOWN
(Sta6c
or
Fixed
Solu6on/
Outcome:
Universe
of
Tools)
UNKNOWN
(Solu6on-­‐To-­‐Be-­‐Discovered:
Universe
of
Tools)

7.
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hMp://businessmodels.ning.com
&
hMp://twiMer.com/RodKuhnKing
Classifica6on
of
Startup
Projects
(CoSP)
for
Holis?c
Problem
Solving
Evolu6on
of
Communica6on,
Knowledge,
and
Learning
Systems
PROBLEM
(Market/
Demand/Boundary)
SOLUTION
(Product/Technology)
KNOWN
(Sta6c
or
Fixed
Problem:
Job-­‐To-­‐Get-­‐Done
Hierarchy)
UNKNOWN
(Problem-­‐To-­‐Be-­‐Discovered:
Job-­‐To-­‐Get-­‐Done
Hierarchy)
KNOWN
(Sta6c
or
Fixed
Solu6on/
Outcome:
Universe
of
Tools)
UNKNOWN
(Solu6on-­‐To-­‐Be-­‐Discovered:
Universe
of
Tools)
Type
4
Project
(System)
Type
2
Project
(System)
Type
3
Project
(System)
Type
1
Project
(System)

8.
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hMp://businessmodels.ning.com
&
hMp://twiMer.com/RodKuhnKing
Classifica6on
of
Startup
Projects
(CoSP)
for
Holis?c
Problem
Solving
Evolu6on
of
Communica6on,
Knowledge,
and
Learning
Systems
PROBLEM
(Market/
Demand/Boundary)
SOLUTION
(Product/Technology)
KNOWN
(Sta6c
or
Fixed
Problem:
Job-­‐To-­‐Get-­‐Done
Hierarchy)
UNKNOWN
(Problem-­‐To-­‐Be-­‐Discovered:
Job-­‐To-­‐Get-­‐Done
Hierarchy)
KNOWN
(Sta6c
or
Fixed
Solu6on/
Outcome:
Universe
of
Tools)
UNKNOWN
(Solu6on-­‐To-­‐Be-­‐Discovered:
Universe
of
Tools)
Type
4
Project
(System)
Type
2
Project
(System)
Type
3
Project
(System)
Type
1
Project
(System)
q Trade-­‐off
of
System
or
Customer
is
known
q Ideal
Solu6on
(IS)
or
Ideal
Final
Result
(IFR)
is
known
q Trade-­‐off
of
System
or
Big
Urgent
Market
Problem
(BUMP)
is
unknown
q
Ideal
Solu6on
(IS)
or
Ideal
Final
Result
(IFR)
is
known
q Trade-­‐off
of
System
or
Customer
is
known
q Ideal
Solu6on
(IS)
or
Ideal
Final
Result
(IFR)
is
unknown
q Trade-­‐off
of
System
or
Big
Urgent
Market
Problem
(BUMP)
is
unknown
q Ideal
Solu6on
(IS)
or
Ideal
Final
Result
(IFR)
is
unknown

9.
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hMp://businessmodels.ning.com
&
hMp://twiMer.com/RodKuhnKing
Classifica6on
of
Startup
Projects
(CoSP)
for
Holis?c
Problem
Solving
Evolu6on
of
Communica6on,
Knowledge,
and
Learning
Systems
PROBLEM
(Market/
Demand/Boundary)
SOLUTION
(Product/Technology)
KNOWN
(Sta6c
or
Fixed
Problem:
Job-­‐To-­‐Get-­‐Done
Hierarchy)
UNKNOWN
(Problem-­‐To-­‐Be-­‐Discovered:
Job-­‐To-­‐Get-­‐Done
Hierarchy)
KNOWN
(Sta6c
or
Fixed
Solu6on/
Outcome:
Universe
of
Tools)
UNKNOWN
(Solu6on-­‐To-­‐Be-­‐Discovered:
Universe
of
Tools)
Simple
(“Tame”)
System/Project
Complicated
System/Project
Chao6c
(“Wicked”)
System/Project
Complex
System/Project

10.
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hMp://businessmodels.ning.com
&
hMp://twiMer.com/RodKuhnKing
Classifica6on
of
Startup
Projects
(CoSP)
for
Holis?c
Problem
Solving
Inspired
by
David
Snowden’s
Cynefin
Framework
for
Communica6on
and
Decision-­‐making
in
Varying
Contexts
of
Uncertainty
PROBLEM
(Market/
Demand/Boundary)
SOLUTION
(Product/Technology)
KNOWN
(Sta6c
or
Fixed
Problem:
Job-­‐To-­‐Get-­‐Done
Hierarchy)
UNKNOWN
(Problem-­‐To-­‐Be-­‐Discovered:
Job-­‐To-­‐Get-­‐Done
Hierarchy)
KNOWN
(Sta6c
or
Fixed
Solu6on/
Outcome:
Universe
of
Tools)
UNKNOWN
(Solu6on-­‐To-­‐Be-­‐Discovered:
Universe
of
Tools)
q Sense
(Measure/Learn)
q Respond
(Eliminate/Reduce/
Increase/Create))
q Categorize
(Improve)
q Probe
(Prototype)
q Analyze
(Build)
q Act
(Pretotype)
Simple
(“Tame”)
System/Project
Complicated
System/Project
Chao6c
(“Wicked”)
System/Project
Complex
System/Project

11.
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hMp://businessmodels.ning.com
&
hMp://twiMer.com/RodKuhnKing
PROBLEM
(Market/
Demand/Boundary)
SOLUTION
(Product/Technology)
KNOWN
(Sta6c
or
Fixed
Problem:
Job-­‐To-­‐Get-­‐Done
Hierarchy)
UNKNOWN
(Problem-­‐To-­‐Be-­‐Discovered:
Job-­‐To-­‐Get-­‐Done
Hierarchy)
KNOWN
(Sta6c
or
Fixed
Solu6on/
Outcome:
Universe
of
Tools)
Linear
Tools
&
Strategies
UNKNOWN
(Solu6on-­‐To-­‐Be-­‐Discovered:
Universe
of
Tools)
Non-­‐Linear
Tools
&
Strategies
Non-­‐Linear
Tools
&
Strategies
Classifica6on
of
Tools
(CoT)
for
Holis?c
Problem
Solving
Tools
for
Communica6on
and
Decision-­‐making
in
Varying
Contexts
of
Uncertainty

12.
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hMp://businessmodels.ning.com
&
hMp://twiMer.com/RodKuhnKing
Classifica6on
of
Tools
(CoT)
for
Holis?c
Problem
Solving
Tools
for
Communica6on
and
Decision-­‐making
in
Varying
Contexts
of
Uncertainty
PROBLEM
(Market/
Demand/Boundary)
SOLUTION
(Product/Technology)
KNOWN
(Sta6c
or
Fixed
Problem:
Job-­‐To-­‐Get-­‐Done
Hierarchy)
UNKNOWN
(Problem-­‐To-­‐Be-­‐Discovered:
Job-­‐To-­‐Get-­‐Done
Hierarchy)
KNOWN
(Sta6c
or
Fixed
Solu6on/
Outcome:
Universe
of
Tools)
UNKNOWN
(Solu6on-­‐To-­‐Be-­‐Discovered:
Universe
of
Tools)
Leb
Brain
Tools
Right
Brain
Tools
Six
Sigma
Methodology
Customer
Development
Stack
Agile
(Product)
Development
Discovery-­‐Driven
Planning
Tradi6onal
System
Thinking
Tradi?onal
Business
Plan
Design
(PaMern)
Thinking
Business
Model
Disrup?on
Rou6ne
(Linear)
Thinking
Compe??ve
Advantage
Strategy
TRIZ:
Inven6ve
Problem
Solving
Crea?ve
Problem
Solving
Living
System
Dashboard
Business
Model
Dashboard/IBIS
Blue
Ocean
Strategy
Mission/Vision/Values-­‐based
Complexity
(Chaos)
Thinking
SoX
Systems
Methodology
Collabora6ve
Storytelling
Sense-­‐making/Scenarios
Lean
Startup
Method
Systems
Engineering

13.
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hMp://businessmodels.ning.com
&
hMp://twiMer.com/RodKuhnKing
“Rumsfeld’s
Startup
BaMlefield”
for
Holis?c
Problem
Solving
PROBLEM
(Market/
Demand/Boundary)
SOLUTION
(Product/Technology)
KNOWN
(Sta6c
or
Fixed
Problem:
Job-­‐To-­‐Get-­‐Done
Hierarchy)
UNKNOWN
(Problem-­‐To-­‐Be-­‐Discovered:
Job-­‐To-­‐Get-­‐Done
Hierarchy)
KNOWN
(Sta6c
or
Fixed
Solu6on/
Outcome:
Universe
of
Tools)
UNKNOWN
(Solu6on-­‐To-­‐Be-­‐Discovered:
Universe
of
Tools)
Leb
Brain
Tools
Right
Brain
Tools
Six
Sigma
Methodology
Customer
Development
Stack
Blue
Ocean
Strategy
Mission/Vision/Values-­‐based
Complexity
(Chaos)
Thinking
SoX
Systems
Methodology
Design
(PaMern)
Thinking
Business
Model
Disrup?on
Rou6ne
(Linear)
Thinking
Compe??ve
Advantage
Strategy
“[T]here
are
known
knowns;
there
are
things
that
we
know
that
we
know.
We
also
know
that
there
are
known
unknowns;
that
is
to
say
we
know
there
are
some
things
we
do
not
know.
But
there
are
also
unknown
unknowns,
the
ones
we
don’t
know
we
don’t
know.”
Donald
Rumsfeld
Lean
Startup
Method
Systems
Engineering
TRIZ:
Inven6ve
Problem
Solving
Crea?ve
Problem
Solving
Collabora6ve
Storytelling
Sense-­‐making/Scenarios
Tradi6onal
System
Thinking
Tradi?onal
Business
Plan
Living
System
Dashboard
Business
Model
Dashboard/IBIS
Agile
(Product)
Development
Discovery-­‐Driven
Planning

14.
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hMp://businessmodels.ning.com
&
hMp://twiMer.com/RodKuhnKing
“Rumsfeld’s
Startup
BaMlefield”
for
Holis?c
Problem
Solving
PROBLEM
(Market/
Demand/Boundary)
SOLUTION
(Product/Technology)
KNOWN
(Sta6c
or
Fixed
Problem:
Job-­‐To-­‐Get-­‐Done
Hierarchy)
UNKNOWN
(Problem-­‐To-­‐Be-­‐Discovered:
Job-­‐To-­‐Get-­‐Done
Hierarchy)
KNOWN
(Sta6c
or
Fixed
Solu6on/
Outcome:
Universe
of
Tools)
UNKNOWN
(Solu6on-­‐To-­‐Be-­‐Discovered:
Universe
of
Tools)
Leb
Brain
Tools
Right
Brain
Tools
UNKNOWN
UNKNOWNS
KNOWN
UNKNOWNS
[UNKNOWN
KNOWNS]
KNOWN
KNOWNS
“[T]here
are
known
knowns;
there
are
things
[systems]
that
we
know
that
we
know.
We
also
know
that
there
are
known
unknowns;
that
is
to
say
we
know
there
are
some
things
[systems]
we
do
not
know.
But
there
are
also
unknown
unknowns,
the
ones
[systems]
we
don’t
know
we
don’t
know.”
Donald
Rumsfeld

15.
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hMp://businessmodels.ning.com
&
hMp://twiMer.com/RodKuhnKing
“Rumsfeld’s
Startup
BaMlefield”
for
Holis?c
Problem
Solving
PROBLEM
(Market/
Demand/Boundary)
SOLUTION
(Product/Technology)
KNOWN
(Sta6c
or
Fixed
Problem:
Job-­‐To-­‐Get-­‐Done
Hierarchy)
UNKNOWN
(Problem-­‐To-­‐Be-­‐Discovered:
Job-­‐To-­‐Get-­‐Done
Hierarchy)
KNOWN
(Sta6c
or
Fixed
Solu6on/
Outcome:
Universe
of
Tools)
UNKNOWN
(Solu6on-­‐To-­‐Be-­‐Discovered:
Universe
of
Tools)
Leb
Brain
Tools
Right
Brain
Tools
UNKNOWN
UNKNOWNS
KNOWN
UNKNOWNS
[UNKNOWN
KNOWNS]
KNOWN
KNOWNS
“[T]here
are
known
knowns;
there
are
things
[systems]
that
we
know
that
we
know.
We
also
know
that
there
are
known
unknowns;
that
is
to
say
we
know
there
are
some
things
[systems]
we
do
not
know.
But
there
are
also
unknown
unknowns,
the
ones
[systems]
we
don’t
know
we
don’t
know.”
Donald
Rumsfeld
things
(systems)
that
we
know
that
we
know
things
(systems)
that
we
do
not
know
that
we
know
things
(systems)
that
we
know
that
we
do
not
know
things
(systems)
that
we
do
not
know
that
we
do
not
know

16. 0
2
4
6
8
10
12
Cost
Learning
Time
Ideal
Tool
Business
(Waterfall)
Plan
Lean
Startup
Method
Business
Model
Canvas
BUSINESS
MODEL
PATHOLOGY
“Maximum
Learning
at
Minimum
Cost
in
No
Time”
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hMp://businessmodels.ning.com
&
hMp://twiMer.com/RodKuhnKing
(Highest)
Cost-­‐Learning-­‐Time
(CLT)
Canvas
for
Crea?ng
a
Scalable
Business

17. What
is
Business
Model
Pathology?
BUSINESS
MODEL
PATHOLOGY
Is
a
Branch
of
BUSINESS
MODEL
CYBERNETICS
That
Focuses
on
Holis6cally
Studying
and
Developing
Models
That
Explain
the
Trade-­‐offs
of
HIGH
MORTALITY
RATE
(HMR)
STARTUPS
And
Other
LIVING
SYSTEMS

18. BUSINESS
MODEL
PATHOLOGY
Facilitates
Holis6c
Problem
Solving
&
Learning

19. Why
Business
Model
Pathology?
BUSINESS
MODEL
PATHOLOGY
Is
Essen?al
for
The
Diagnosis,
Early
Detec6on,
Preven6on,
and
Elimina6on
of
Undesirable
Trade-­‐offs
of
HIGH
MORTALITY
RATE
(HMR)
STARTUPS
And
Other
LIVING
SYSTEMS

20. Business
Model
Pathology
Uses
Just
One
Tool

21. Living
System
(LS)
Dashboard

22.
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hMp://businessmodels.ning.com
&
hMp://twiMer.com/RodKuhnKing
BUSINESS
MODEL
PATHOLOGY
3
Categories
of
Experience
for
a
Living
System
LIVING
SYSTEM
Supersystem
Experience
Environment
Experience
System
Experience

23.
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hMp://businessmodels.ning.com
&
hMp://twiMer.com/RodKuhnKing
BUSINESS
MODEL
PATHOLOGY
LIVING
SYSTEM
Supersystem
Experience
Region/Gov./
NGOs
Influencers/
Media
Non-­‐Customers
(Prospects)
PESTLIED
Events/Trends
Environment
Experience
Suppliers
Channels/
Rela?onships
(In)Direct
Compe?tors
New
Entrants
(Startups)
Customers
System
Experience
Input
Processor
Output
Feedback
3
Categories
of
Experience
for
a
Living
System

24.
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hMp://businessmodels.ning.com
&
hMp://twiMer.com/RodKuhnKing
BUSINESS
MODEL
PATHOLOGY
Tree
Diagram
(“Mind
Map”)
for
Living
System
Dashboard
LIVING
SYSTEM
Supersystem
(Entropy)
Region/Gov./
NGOs
Influencers/
Media
Non-­‐Customers
(Trade-­‐off:+/-­‐)
PESTLIED
Events/Trends
Environment
(Innova6on:
S-­‐Curve)
Suppliers
Channels/
Rela?onships
(In)Direct
Compe?tors
New
Entrants
(Startups)
Customers
(Trade-­‐off:+/-­‐)
System
(Jobs
To
Get
Done)
Input
Processor
(Tool/Org.)
Output
(Trade-­‐off:+/-­‐)
Feedback
(Strategy)
q Past
q Present
q Future
EXPERIENCE

25. A
Living
System
Dashboard
(Cyberne6c
Model)
Illustrates
The
Logic
of
How
Every
Living
System
or
Organiza6on
Emerges,
Survives,
and
Prospers

26. A
Living
System
Dashboard
Focuses
on
3
Categories
of
Organiza?onal
Experience:
Supersystem
Experience,
Environment
Experience,
and
System
Experience

27. The
3
Components
of
Each
Organiza6onal
Experience
Are:
Happiness,
Loyalty,
and
Profitability
(Cost
Effec6veness)

28. Tree
Diagram
(“Mind
Map”)
for
Living
System
Dashboard

29.
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hMp://businessmodels.ning.com
&
hMp://twiMer.com/RodKuhnKing
BUSINESS
MODEL
PATHOLOGY
Tree
Diagram
(“Mind
Map”)
for
Living
System
Dashboard
LIVING
SYSTEM
Supersystem
Experience
Region/Gov./
NGOs
Influencers/
Media
Non-­‐Customers
(Prospects)
PESTLIED
Events/Trends
Environment
Experience
Suppliers
Channels/
Rela?onships
(In)Direct
Compe?tors
New
Entrants
(Startups)
Customers
System
Experience
Input
Processor
Output
Feedback
“Fake
XP”/
Build
Learn
Test
XP/
Measure
q Past
q Present
q Future
EXPERIENCE

30.
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hMp://businessmodels.ning.com
&
hMp://twiMer.com/RodKuhnKing
BUSINESS
MODEL
PATHOLOGY
Tree
Diagram
(“Mind
Map”)
for
Living
System
Dashboard
LIVING
SYSTEM
Supersystem
Experience
Region/Gov./
NGOs
Influencers/
Media
Non-­‐Customers
(Prospects)
PESTLIED
Events/Trends
Environment
Experience
Suppliers
Channels/
Rela?onships
(In)Direct
Compe?tors
New
Entrants
(Startups)
Customers
System
Experience
Input
Processor
Output
Feedback
“Fake
XP”/
Build
Learn
Test
XP/
Measure
q Past
q Present
q Future
EXPERIENCE

31.
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hMp://businessmodels.ning.com
&
hMp://twiMer.com/RodKuhnKing
BUSINESS
MODEL
PATHOLOGY
Tree
Diagram
(“Mind
Map”)
for
Living
System
Dashboard
LIVING
SYSTEM
Supersystem
Experience
Region/Gov./
NGOs
Influencers/
Media
Non-­‐Customers
(Prospects)
PESTLIED
Events/Trends
Environment
Experience
Suppliers
Channels/
Rela?onships
(In)Direct
Compe?tors
New
Entrants
(Startups)
Customers
System
Experience
Input
Processor
Output
Feedback
“Fake
XP”/
Build
Learn
Test
XP/
Measure
Structuralist
(Compe66ve
Advantage)
Reconstruc6onist
(Blue
Ocean)
q Past
q Present
q Future
EXPERIENCE

32.
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hMp://businessmodels.ning.com
&
hMp://twiMer.com/RodKuhnKing
BUSINESS
MODEL
PATHOLOGY
Tree
Diagram
(“Mind
Map”)
for
Living
System
Dashboard
LIVING
SYSTEM
Supersystem
Experience
Region/Gov./
NGOs
Influencers/
Media
Non-­‐Customers
(Prospects)
PESTLIED
Events/Trends
Environment
Experience
Suppliers
Channels/
Rela?onships
(In)Direct
Compe?tors
New
Entrants
(Startups)
Customers
System
Experience
Input
Processor
Output
Feedback
q Past
q Present
q Future
EXPERIENCE
KP
KA
KR
R$
C$
CR
CS
CH
VP
Structuralist
(Compe66ve
Advantage)
Reconstruc6onist
(Blue
Ocean)

33.
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hMp://businessmodels.ning.com
&
hMp://twiMer.com/RodKuhnKing
BUSINESS
MODEL
PATHOLOGY
LIVING
SYSTEM
for:
RED
OCEAN
Supersystem
Experience
Region/Gov./
NGOs
Influencers/
Media
Non-­‐Customers
(Prospects)
PESTLIED
Events/Trends
Environment
Experience
Suppliers
Channels/
Rela?onships
(In)Direct
Compe?tors
New
Entrants
(Startups)
Customers
System
Experience
Input
Processor
Output
Feedback
q Past
ü Present
q Future
EXPERIENCE
KP
KA
KR
R$
C$
CS
VP
Structuralist
(Compe66ve
Advantage)
Reconstruc6onist
(Blue
Ocean)
First,
Understand
Red
Ocean
Trade-­‐off
Experiences.
Then,
Disrupt
Them.
CR
CH

34.
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hMp://businessmodels.ning.com
&
hMp://twiMer.com/RodKuhnKing
BUSINESS
MODEL
PATHOLOGY
LIVING
SYSTEM
for:
BLUE
OCEAN
Supersystem
Experience
Region/Gov./
NGOs
Influencers/
Media
Non-­‐Customers
(Prospects)
PESTLIED
Events/Trends
Environment
Experience
Suppliers
Channels/
Rela?onships
(In)Direct
Compe?tors
New
Entrants
(Startups)
Customers
System
Experience
Input
Processor
Output
Feedback
q Past
q Present
ü Future
EXPERIENCE
KP
KA
KR
R$
C$
CS
VP
Structuralist
(Compe66ve
Advantage)
Reconstruc6onist
(Blue
Ocean)
First,
Understand
Red
Ocean
Trade-­‐off
Experiences.
Then,
Disrupt
Them.
CR
CH

35. Legend
The
following
topics,
which
describe
elements
of
a
business
model
on
slides
32
to
34
are
obtained
from
the
book,
“Business
Model
Genera?on”
by
Alexander
Osterwalder
and
Yves
Pigneur.
q Key
Partners
(KP)
q Key
Resources
(KR)
q Key
Ac?vi?es
(KA)
q Value
Proposi?on
(VP)
q Channels
(CH)/Customer
Rela?onships
(CR)
q Customer
Segments
(CS)
q Cost
Structure
(C$)
q Revenue
Streams
(R$)
The
above
topics
are
also
visually
presented
on
the
Business
Model
Canvas
which
can
be
obtained
here:
hfp://www.businessmodelgenera?on.com/downloads/business_model_canvas_poster.pdf
PESTLIED
is
an
acronym
for
Poli?cal;
Economic;
Social;
Technological;
Legal;
Interna?onal;
Environmental;
Demographic

36. The
3
Elements
of
BUSINESS
EXPERIENCE
Are
Happiness,
Loyalty,
and
Profitability

37. Nested
Diagram
for
Living
System
Dashboard

38.
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hMp://businessmodels.ning.com
&
hMp://twiMer.com/RodKuhnKing
BUSINESS
MODEL
PATHOLOGY
Living
System
(Cyberne?c
Model)
ENVIRONMENT
SYSTEM
Nested
Diagram
for
Living
System
Dashboard
SUPERSYSTEM

39.
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hMp://businessmodels.ning.com
&
hMp://twiMer.com/RodKuhnKing
BUSINESS
MODEL
PATHOLOGY
Dead
System
Model
ENVIRONMENT
(AWFUL
FINAL
RESULT/VISION/GOAL/FAILURE
CRITERIA)
Visually
Model
Hierarchy
of
Causes
for
the
High
Mortality
Rate
of
Business
SUPERSYSTEM
SYSTEM
(Chain
&
Hierarchy
of
Jobs
To
Get
Done)

40.
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hMp://businessmodels.ning.com
&
hMp://twiMer.com/RodKuhnKing
ENVIRONMENT
PROCESSOR
(Tool/Org.;
Func?onality)
INPUT
(Ideas/
Resources)
OUTPUT
(Trade-­‐off/
Experience)
BUSINESS
MODEL
PATHOLOGY
(AWFUL
FINAL
RESULT/VISION/GOAL/FAILURE
CRITERIA)
SUPERSYSTEM
Visually
Model
Hierarchy
of
Causes
for
the
High
Mortality
Rate
of
Business
SYSTEM
(Chain
&
Hierarchy
of
Jobs
To
Get
Done)
Dead
System
Model

41.
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hMp://businessmodels.ning.com
&
hMp://twiMer.com/RodKuhnKing
ENVIRONMENT
INPUT
(Ideas/
Resources)
Feedback(Strategy/Tac6cs)
OUTPUT
(Trade-­‐off/
Experience)
+
-­‐
PROCESSOR
(Tool/Org.;
Func?onality)
BUSINESS
MODEL
PATHOLOGY
(AWFUL
FINAL
RESULT/VISION/GOAL/FAILURE
CRITERIA)
SUPERSYSTEM
Visually
Model
Hierarchy
of
Causes
for
the
High
Mortality
Rate
of
Business
SYSTEM
(Chain
&
Hierarchy
of
Jobs
To
Get
Done)
Dead
System
Model

42.
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hMp://businessmodels.ning.com
&
hMp://twiMer.com/RodKuhnKing
ENVIRONMENT
“Fake
XP”/Build
Test
XP/Measure
INPUT
(Ideas/
Resources)
Learn
(Strategy/Tac6cs)
OUTPUT
(Trade-­‐off/
Experience)
+
-­‐
PROCESSOR
(Tool/Org.;
Func?onality)
BUSINESS
MODEL
PATHOLOGY
(AWFUL
FINAL
RESULT/VISION/GOAL/FAILURE
CRITERIA)
SUPERSYSTEM
Visually
Model
Hierarchy
of
Causes
for
the
High
Mortality
Rate
of
Business
SYSTEM
(Chain
&
Hierarchy
of
Jobs
To
Get
Done)
Dead
System
Model

43.
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hMp://businessmodels.ning.com
&
hMp://twiMer.com/RodKuhnKing
ENVIRONMENT
INPUT
(Ideas/
Resources)
Learn
(Strategy/Tac6cs)
OUTPUT
(Trade-­‐off/
Experience)
+
-­‐
CUSTOMERS
SUPPLIERS
(IN)DIRECT
COMPETITORS
(Subs?tutes/Complements)
NEW
ENTRANTS
(Startups)
PROCESSOR
(Tool/Org.;
Func?onality)
BUSINESS
MODEL
PATHOLOGY
(AWFUL
FINAL
RESULT/VISION/GOAL/FAILURE
CRITERIA)
SUPERSYSTEM
Visually
Model
Hierarchy
of
Causes
for
the
High
Mortality
Rate
of
Business
SYSTEM
(Chain
&
Hierarchy
of
Jobs
To
Get
Done)
Dead
System
Model
“Fake
XP”/Build
Test
XP/Measure

44.
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hMp://businessmodels.ning.com
&
hMp://twiMer.com/RodKuhnKing
ENVIRONMENT
INPUT
Learn
(Strategy/Tac6cs)
OUTPUT
+
-­‐
CUSTOMERS
SUPPLIERS
(IN)DIRECT
COMPETITORS
(Subs?tutes/Complements)
NEW
ENTRANTS
(Startups)
PROCESSOR
BUSINESS
MODEL
PATHOLOGY
(AWFUL
FINAL
RESULT/VISION/GOAL/FAILURE
CRITERIA)
KP
VP
KA
KR
CS
R$
C$
CH
CR
SUPERSYSTEM
Visually
Model
Hierarchy
of
Causes
for
the
High
Mortality
Rate
of
Business
SYSTEM
(Chain
&
Hierarchy
of
Jobs
To
Get
Done)
Dead
System
Model
“Fake
XP”/Build
Test
XP/Measure

45.
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hMp://businessmodels.ning.com
&
hMp://twiMer.com/RodKuhnKing
ENVIRONMENT
INPUT
Learn
(Strategy/Tac6cs)
OUTPUT
+
-­‐
CUSTOMERS
SUPPLIERS
(IN)DIRECT
COMPETITORS
(Subs?tutes/Complements)
NEW
ENTRANTS
(Startups)
PROCESSOR
BUSINESS
MODEL
PATHOLOGY
(AWFUL
FINAL
RESULT/VISION/GOAL/FAILURE
CRITERIA)
KP
VP
KA
KR
CS
R$
C$
CH
CR
Visually
Model
Hierarchy
of
Causes
for
the
High
Mortality
Rate
of
Business
SYSTEM
(Chain
&
Hierarchy
of
Jobs
To
Get
Done)
Dead
System
Model
“Fake
XP”/Build
Test
XP/Measure

46.
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hMp://businessmodels.ning.com
&
hMp://twiMer.com/RodKuhnKing
ENVIRONMENT
INPUT
Learn
(Strategy/Tac6cs)
OUTPUT
+
-­‐
CUSTOMERS
SUPPLIERS
(IN)DIRECT
COMPETITORS
(Subs?tutes/Complements)
NEW
ENTRANTS
(Startups)
PROCESSOR
BUSINESS
MODEL
PATHOLOGY
(AWFUL
FINAL
RESULT/VISION/GOAL/FAILURE
CRITERIA)
KP
VP
KA
KR
CS
R$
C$
CH
CR
Visually
Model
Hierarchy
of
Causes
for
the
High
Mortality
Rate
of
Business
SYSTEM
(Chain
&
Hierarchy
of
Jobs
To
Get
Done)
Dead
System
Model
“Fake
XP”/Build
Test
XP/Measure

47.
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hMp://businessmodels.ning.com
&
hMp://twiMer.com/RodKuhnKing
ENVIRONMENT
INPUT
Learn
(Strategy/Tac6cs)
OUTPUT
+
-­‐
CUSTOMERS
SUPPLIERS
(IN)DIRECT
COMPETITORS
(Subs?tutes/Complements)
NEW
ENTRANTS
(Startups)
PROCESSOR
BUSINESS
MODEL
PATHOLOGY
(AWFUL
FINAL
RESULT/VISION/GOAL/FAILURE
CRITERIA)
KP
VP
KA
KR
CS
R$
C$
CH
CR
Visually
Model
Hierarchy
of
Causes
for
the
High
Mortality
Rate
of
Business
SYSTEM
(Chain
&
Hierarchy
of
Jobs
To
Get
Done)
Dead
System
Model
“Fake
XP”/Build
Test
XP/Measure

48.
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hMp://businessmodels.ning.com
&
hMp://twiMer.com/RodKuhnKing
ENVIRONMENT
INPUT
Learn
(Strategy/Tac6cs)
OUTPUT
+
-­‐
CUSTOMERS
SUPPLIERS
(IN)DIRECT
COMPETITORS
(Subs?tutes/Complements)
NEW
ENTRANTS
(Startups)
PROCESSOR
BUSINESS
MODEL
PATHOLOGY
(AWFUL
FINAL
RESULT/VISION/GOAL/FAILURE
CRITERIA)
KP
VP
KA
KR
CS
R$
C$
CH
CR
Visually
Model
Hierarchy
of
Causes
for
the
High
Mortality
Rate
of
Business
SYSTEM
(Chain
&
Hierarchy
of
Jobs
To
Get
Done)
Dead
System
Model
“Fake
XP”/Build
Test
XP/Measure

49. Axiom
of
Business
Model
Cyberne6cs
CUSTOMER
Hires
(Chooses)
OUTPUT
(Product/Service)
from
PROCESSOR
(Organiza?on/Tool)
In
Order
to
Achieve
SYSTEM’S
“Job
To
Get
Done”

50. Examples
(“Autopsies”)
1-­‐Minute
Business
Failure
Analysis

51.
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hMp://businessmodels.ning.com
&
hMp://twiMer.com/RodKuhnKing
ENVIRONMENT
INPUT
Learn
(Strategy/Tac6cs)
OUTPUT
+
-­‐
CUSTOMERS
SUPPLIERS
(IN)DIRECT
COMPETITORS
(Subs?tutes/Complements)
NEW
ENTRANTS
(Startups)
PROCESSOR
BLOCKBUSTER’S
SYSTEM:
Experience
Entertainment
at
Home
BUSINESS
MODEL
PATHOLOGY
for
Blockbuster
Video
(1985-­‐2014)
Blockbuster’s
“Dead
System”
(AWFUL
FINAL
RESULT/VISION/GOAL/FAILURE
CRITERIA)
KP
VP
KA
KR
CS
R$
C$
CH
CR
Blockbuster
Video
Visually
Model
Hierarchy
of
Causes
for
the
High
Mortality
Rate
of
Business
“Fake
XP”/Build
Test
XP/Measure

52.
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hMp://businessmodels.ning.com
&
hMp://twiMer.com/RodKuhnKing
ENVIRONMENT
INPUT
Learn
(Strategy/Tac6cs)
OUTPUT
+
-­‐
CUSTOMERS
SUPPLIERS
(IN)DIRECT
COMPETITORS
(Subs?tutes/Complements)
NEW
ENTRANTS
(Startups)
PROCESSOR
BLACKBERRY’S
SYSTEM:
Tele-­‐communicate
24x7
BUSINESS
MODEL
PATHOLOGY
for
Blackberry
Phone
Blackberry’s
“Dying
System”
(AWFUL
FINAL
RESULT/VISION/GOAL/FAILURE
CRITERIA)
KP
VP
KA
KR
CS
R$
C$
CH
CR
Smartphone
Visually
Model
Hierarchy
of
Causes
for
the
High
Mortality
Rate
of
Business
“Fake
XP”/Build
Test
XP/Measure

53. Startups
and
Established
Businesses
Die
When
They
Fail
to
Discover
and
Solve
BUMPs:
(Big
Urgent
Market
Problems)
As
Well
As
Fail
to
Deliver
ACEs
(Awesome
Customer
Experiences)

54. Business
Model
Cyberne6cs
Is
About
Simply
Crea6ng,
Delivering,
and
Sharing
Awesome
Customer
Experiences
(ACEs)

55.
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hMp://businessmodels.ning.com
&
hMp://twiMer.com/RodKuhnKing
The
Blind
Men
and
the
Elephant
A
Poem
by
John
Godfrey
Saxe
I.
IT
was
six
men
of
Indostan
To
learning
much
inclined,
Who
went
to
see
the
Elephant
(Though
all
of
them
were
blind),
That
each
by
observa6on
Might
sa6sfy
his
mind.
II.
The
First
approached
the
Elephant,
And
happening
to
fall
Against
his
broad
and
sturdy
side,
At
once
began
to
bawl:
"God
bless
me!—but
the
Elephant
Is
very
like
a
wall!”
III.
The
Second,
feeling
of
the
tusk,
Cried:"Ho!—what
have
we
here
So
very
round
and
smooth
and
sharp?
To
me
't
is
mighty
clear
This
wonder
of
an
Elephant
Is
very
like
a
spear!”
IV.
The
Third
approached
the
animal,
And
happening
to
take
The
squirming
trunk
within
his
hands,
Thus
boldly
up
and
spake:
"I
see,"
quoth
he,
"the
Elephant
Is
very
like
a
snake!"
V.
The
Fourth
reached
out
his
eager
hand,
And
felt
about
the
knee.
"What
most
this
wondrous
beast
is
like
Is
mighty
plain,"
quoth
he;
"'T
is
clear
enough
the
Elephant
Is
very
like
a
tree!"
VI.
The
Figh,
who
chanced
to
touch
the
ear,
Said:
"E'en
the
blindest
man
Can
tell
what
this
resembles
most;
Deny
the
fact
who
can,
This
marvel
of
an
Elephant
Is
very
like
a
fan!”
VII.
The
Sixth
no
sooner
had
begun
About
the
beast
to
grope,
Than,
seizing
on
the
swinging
tail
That
fell
within
his
scope,
"I
see,"
quoth
he,
"the
Elephant
Is
very
like
a
rope!"
VIII.
And
so
these
men
of
Indostan
Disputed
loud
and
long,
Each
in
his
own
opinion
Exceeding
s?ff
and
strong,
Though
each
was
partly
in
the
right,
And
all
were
in
the
wrong!