The document describes how scalable lean startups can use the Red Ocean Disruption (ROD) Map to inspire investors and obtain funding and higher valuations. The ROD Map is a worksheet that guides companies through vision experiments, problem-solution experiments, and product-market experiments to disrupt conventional business models and create new blue ocean business models that deliver value in uncontested market spaces.

1. How
Scalable
Lean
Startups
Can
Use
The
Red
Ocean
Disrup;on
(ROD)
Map
To
Inspire
Today’s
Investors
While
Ge(ng
Needed
Funds
and
Higher
Valua4ons
Dr.
Rod
King

2. Worksheet
of
The
Red
Ocean
Disrup4on
(ROD)
Map

3. Red
Ocean
Disrup;on
(ROD)
Map
Date:
………………………..….
q Vision
Experiment
q Problem-­‐Solu;on
Experiment
q Product-­‐Market
Experiment
q Op;miza;on
&
Scaling
q Renewal
Project
Vision
(Cause/Final
Result/Outcome):
……………………….…………..………………………………………………………..…………………..…..……
Customer
(Segment/Base/“Tribe”/Benefactor):
…..…………………………………………….….……….………..……………………………..…………..……
Goal/Strategy/Job-­‐To-­‐Get-­‐Done:
…………………...…………..…………………………………………………………..……………..….…………………………….……
Conven4onal
Tool
(Product/Service/Business
Model):
………………………………..…….……………………………………………………………………..
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hMp://businessmodels.ning.com
&
hMp://twiMer.com/RodKuhnKing

4. Red
Ocean
Disrup;on
(ROD)
Map
Date:
………………………..….
q Vision
Experiment
q Problem-­‐Solu;on
Experiment
q Product-­‐Market
Experiment
q Op;miza;on
&
Scaling
q Renewal
Project
Vision
(Cause/Final
Result/Outcome):
……………………….…………..………………………………………………………..…………………..…..……
Customer
(Segment/Base/“Tribe”/Benefactor):
…..…………………………………………….….……….………..……………………………..…………..……
Goal/Strategy/Job-­‐To-­‐Get-­‐Done:
…………………...…………..…………………………………………………………..……………..….…………………………….……
Conven4onal
Tool
(Product/Service/Business
Model):
………………………………..…….……………………………………………………………………..
D:
B:
Define
Build
Problem
(Needs)
Solu4on
(Pilot)
M:
Measure
Problem
(Effect)
A:
Analyze
Problem
I:
Improve
Solu4on
L:
Learn
What’s
Valued
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hMp://businessmodels.ning.com
&
hMp://twiMer.com/RodKuhnKing

5. Red
Ocean
Disrup;on
(ROD)
Map
Date:
………………………..….
q Vision
Experiment
q Problem-­‐Solu;on
Experiment
q Product-­‐Market
Experiment
q Op;miza;on
&
Scaling
q Renewal
Project
Vision
(Cause/Final
Result/Outcome):
……………………….…………..………………………………………………………..…………………..…..……
Customer
(Segment/Base/“Tribe”/Benefactor):
…..…………………………………………….….……….………..……………………………..…………..……
Goal/Strategy/Job-­‐To-­‐Get-­‐Done:
…………………...…………..…………………………………………………………..……………..….…………………………….……
Conven4onal
Tool
(Product/Service/Business
Model):
………………………………..…….……………………………………………………………………..
D:
B:
Define
Build
Problem
(Needs)
Solu4on
(Pilot)
M:
Measure
Problem
(Effect)
A:
Analyze
Problem
I:
Improve
Solu4on
L:
Learn
What’s
Valued
Customer
Story
Business
Story
Learning
Story
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hMp://businessmodels.ning.com
&
hMp://twiMer.com/RodKuhnKing

6. Red
Ocean
Disrup;on
(ROD)
Map
Date:
………………………..….
q Vision
Experiment
q Problem-­‐Solu;on
Experiment
q Product-­‐Market
Experiment
q Op;miza;on
&
Scaling
q Renewal
Project
Vision
(Cause/Final
Result/Outcome):
……………………….…………..………………………………………………………..…………………..…..……
Customer
(Segment/Base/“Tribe”/Benefactor):
…..…………………………………………….….……….………..……………………………..…………..……
Goal/Strategy/Job-­‐To-­‐Get-­‐Done:
…………………...…………..…………………………………………………………..……………..….…………………………….……
Conven4onal
Tool
(Product/Service/Business
Model):
………………………………..…….……………………………………………………………………..
D:
B:
Define
Build
Problem
(Needs)
Solu4on
(Pilot)
M:
Measure
Problem
(Effect)
A:
Analyze
Problem
I:
Improve
Solu4on
L:
Learn
What’s
Valued
Experiment/
Cycle
1
Experiment/
Cycle
2
Experiment/
Cycle
…
Customer
Story
Business
Story
Learning
Story
(ROD
Problem)
(ROD
Solu:on)
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hMp://businessmodels.ning.com
&
hMp://twiMer.com/RodKuhnKing

7. Red
Ocean
Disrup;on
(ROD)
Map
Date:
………………………..….
q Vision
Experiment
q Problem-­‐Solu;on
Experiment
q Product-­‐Market
Experiment
q Op;miza;on
&
Scaling
q Renewal
Project
Vision
(Cause/Final
Result/Outcome):
……………………….…………..………………………………………………………..…………………..…..……
Customer
(Segment/Base/“Tribe”/Benefactor):
…..…………………………………………….….……….………..……………………………..…………..……
Goal/Strategy/Job-­‐To-­‐Get-­‐Done:
…………………...…………..…………………………………………………………..……………..….…………………………….……
Conven4onal
Tool
(Product/Service/Business
Model):
………………………………..…….……………………………………………………………………..
D:
B:
Define
Build
Problem
(Needs)
Solu4on
(Pilot)
Red
Ocean
Business
Model
(Product/Service)
Minimum
Viable
Business
Model
(Product/Service)
M:
Measure
Problem
(Effect)
Business
Model
(“PEAR”)
Metrics
A:
Analyze
Problem
Business
Model
Analysis
I:
Improve
Solu4on
Business
Model
Disrup4on
Strategy
L:
Learn
What’s
Valued
Blue
Ocean
Business
Model
(Product/Service)
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hMp://businessmodels.ning.com
&
hMp://twiMer.com/RodKuhnKing

8. Red
Ocean
Disrup;on
(ROD)
Map
Date:
………………………..….
q Vision
Experiment
q Problem-­‐Solu;on
Experiment
q Product-­‐Market
Experiment
q Op;miza;on
&
Scaling
q Renewal
Project
Vision
(Cause/Final
Result/Outcome):
……………………….…………..………………………………………………………..…………………..…..……
Customer
(Segment/Base/“Tribe”/Benefactor):
…..…………………………………………….….……….………..……………………………..…………..……
Goal/Strategy/Job-­‐To-­‐Get-­‐Done:
…………………...…………..…………………………………………………………..……………..….…………………………….……
Conven4onal
Tool
(Product/Service/Business
Model):
………………………………..…….……………………………………………………………………..
D:
B:
Define
Build
Problem
(Needs)
Solu4on
(Pilot)
Red
Ocean
Business
Model
(Product/Service)
Minimum
Viable
Business
Model
(Product/Service)
M:
Measure
Problem
(Effect)
Business
Model
(“PEAR”)
Metrics
A:
Analyze
Problem
Business
Model
Analysis
I:
Improve
Solu4on
Business
Model
Disrup4on
Strategy
L:
Learn
What’s
Valued
Blue
Ocean
Business
Model
(Product/Service)
Disrup;ve
………………………………
(Prototype/Demo)
P.I.E.S.
Features
Note:
P.I.E.S.
is
an
acronym
for
Physical;
Intellectual;
Emo:onal;
Spiritual
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hMp://businessmodels.ning.com
&
hMp://twiMer.com/RodKuhnKing

9. Red
Ocean
Disrup;on
(ROD)
Map
Date:
………………………..….
q Vision
Experiment
q Problem-­‐Solu;on
Experiment
q Product-­‐Market
Experiment
q Op;miza;on
&
Scaling
q Renewal
Project
Vision
(Cause/Final
Result/Outcome):
……………………….…………..………………………………………………………..…………………..…..……
Customer
(Segment/Base/“Tribe”/Benefactor):
…..…………………………………………….….……….………..……………………………..…………..……
Goal/Strategy/Job-­‐To-­‐Get-­‐Done:
…………………...…………..…………………………………………………………..……………..….…………………………….……
Conven4onal
Tool
(Product/Service/Business
Model):
………………………………..…….……………………………………………………………………..
D:
B:
Define
Build
Problem
(Needs)
Solu4on
(Pilot)
Red
Ocean
Business
Model
(Product/Service)
Minimum
Viable
Business
Model
(Product/Service)
Disrup;ve
………………………………
(Prototype/Demo)
P.I.E.S.
Features
M:
Measure
Problem
(Effect)
Business
Model
(“PEAR”)
Metrics
A:
Analyze
Problem
Business
Model
Analysis
I:
Improve
Solu4on
Business
Model
Disrup4on
Strategy
L:
Learn
What’s
Valued
Blue
Ocean
Business
Model
(Product/Service)
P:
Process
(Trade-­‐off)
E:
Engagement
A:
Acquisi4on
A:
Ac4va4on
R:
Reten4on
R:
Referral
R:
Revenue
Note:
P.I.E.S.
is
an
acronym
for
Physical;
Intellectual;
Emo:onal;
Spiritual
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hMp://businessmodels.ning.com
&
hMp://twiMer.com/RodKuhnKing

10. Red
Ocean
Disrup;on
(ROD)
Map
Date:
………………………..….
q Vision
Experiment
q Problem-­‐Solu;on
Experiment
q Product-­‐Market
Experiment
q Op;miza;on
&
Scaling
q Renewal
Project
Vision
(Cause/Final
Result/Outcome):
……………………….…………..………………………………………………………..…………………..…..……
Customer
(Segment/Base/“Tribe”/Benefactor):
…..…………………………………………….….……….………..……………………………..…………..……
Goal/Strategy/Job-­‐To-­‐Get-­‐Done:
…………………...…………..…………………………………………………………..……………..….…………………………….……
Conven4onal
Tool
(Product/Service/Business
Model):
………………………………..…….……………………………………………………………………..
D:
B:
Define
Build
Problem
(Needs)
Solu4on
(Pilot)
Red
Ocean
Business
Model
(Product/Service)
Minimum
Viable
Business
Model
(Product/Service)
Disrup;ve
………………………………
(Prototype/Demo)
P.I.E.S.
Features
M:
Measure
Problem
(Effect)
Business
Model
(“PEAR”)
Metrics
P:
Process
(Trade-­‐off)
E:
Engagement
A:
Acquisi4on
A:
Ac4va4on
R:
Reten4on
R:
Referral
R:
Revenue
A:
Analyze
Problem
Business
Model
Analysis
I:
Improve
Solu4on
Business
Model
Disrup4on
Strategy
L:
Learn
What’s
Valued
Blue
Ocean
Business
Model
(Product/Service)
Lifecycle
Experiments
q Vision
(Leap
of
Faith)
Experiment
q Problem-­‐Solu4on
Experiment
q Product-­‐Market
Experiment
q Op4miza4on
&
Scaling
Experiment
q Renewal/
Disrup4on
Experiment
Note:
P.I.E.S.
is
an
acronym
for
Physical;
Intellectual;
Emo:onal;
Spiritual
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hMp://businessmodels.ning.com
&
hMp://twiMer.com/RodKuhnKing

11. Date:
………………………..….
Red
Ocean
Disrup;on
(ROD)
Map
q Vision
Experiment
q Problem-­‐Solu;on
Experiment
q Product-­‐Market
Experiment
q Op;miza;on
&
Scaling
q Renewal
Project
Vision
(Cause/Final
Result/Outcome):
……………………….…………..………………………………………………………..…………………..…..……
Customer
(Segment/Base/“Tribe”/Benefactor):
…..…………………………………………….….……….………..……………………………..…………..……
Goal/Strategy/Job-­‐To-­‐Get-­‐Done:
…………………...…………..…………………………………………………………..……………..….…………………………….……
Conven4onal
Tool
(Product/Service/Business
Model):
………………………………..…….……………………………………………………………………..
D:
B:
Define
Build
Problem
(Needs)
Solu4on
(Pilot)
Red
Ocean
Business
Model
(Product/Service)
Minimum
Viable
Business
Model
(Product/Service)
Disrup;ve
………………………………
(Prototype/Demo)
P.I.E.S.
Features
M:
Measure
Problem
(Effect)
Business
Model
(“PEAR”)
Metrics
P:
Process
(Trade-­‐off)
E:
Engagement
A:
Acquisi4on
A:
Ac4va4on
R:
Reten4on
R:
Referral
R:
Revenue
A:
Analyze
Problem
Business
Model
Analysis
I:
Improve
Solu4on
Business
Model
Disrup4on
Strategy
Lifecycle
Experiments
q Vision
(Leap
of
Faith)
Experiment
Blue
Ocean
Business
Model
(Product/Service)
E:
Eliminate
q Problem-­‐Solu4on
Experiment
L:
Learn
What’s
Valued
R:
Reduce
q Product-­‐Market
Experiment
q Op4miza4on
&
Scaling
Experiment
q Renewal/
Disrup4on
Experiment
I:
Increase
C:
Create
Note:
P.I.E.S.
is
an
acronym
for
Physical;
Intellectual;
Emo:onal;
Spiritual
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hMp://businessmodels.ning.com
&
hMp://twiMer.com/RodKuhnKing

12. Date:
………………………..….
Red
Ocean
Disrup;on
(ROD)
Map
q Vision
Experiment
q Problem-­‐Solu;on
Experiment
q Product-­‐Market
Experiment
q Op;miza;on
&
Scaling
q Renewal
Project
Vision
(Cause/Final
Result/Outcome):
……………………….…………..………………………………………………………..…………………..…..……
Customer
(Segment/Base/“Tribe”/Benefactor):
…..…………………………………………….….……….………..……………………………..…………..……
Goal/Strategy/Job-­‐To-­‐Get-­‐Done:
…………………...…………..…………………………………………………………..……………..….…………………………….……
Conven4onal
Tool
(Product/Service/Business
Model):
………………………………..…….……………………………………………………………………..
D:
B:
Define
Build
Problem
(Needs)
Solu4on
(Pilot)
Red
Ocean
Business
Model
(Product/Service)
Minimum
Viable
Business
Model
(Product/Service)
Disrup;ve
………………………………
(Prototype/Demo)
P.I.E.S.
Features
M:
Measure
Problem
(Effect)
Business
Model
(“PEAR”)
Metrics
P:
Process
(Trade-­‐off)
E:
Engagement
A:
Acquisi4on
A:
Ac4va4on
R:
Reten4on
R:
Referral
R:
Revenue
A:
Analyze
Problem
Business
Model
Analysis
I:
Improve
Solu4on
Business
Model
Disrup4on
Strategy
Lifecycle
Experiments
q Vision
(Leap
of
Faith)
Experiment
E:
Eliminate
q Problem-­‐Solu4on
Experiment
R:
Reduce
q Product-­‐Market
Experiment
q Op4miza4on
&
Scaling
Experiment
q Renewal/
Disrup4on
Experiment
L:
Learn
What’s
Valued
Blue
Ocean
Business
Model
(Product/Service)
q PRODUCT/
VALUE
PROPOSITION
q CHANNELS/
CUSTOMER
RELATIONSHIPS
q PROFITABILITY
I:
Increase
C:
Create
q COST
(PAIN)
q REVENUE
(DELIGHT)
q UNFAIR
ADVANTAGE
Note:
P.I.E.S.
is
an
acronym
for
Physical;
Intellectual;
Emo:onal;
Spiritual
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hMp://businessmodels.ning.com
&
hMp://twiMer.com/RodKuhnKing

13. Red
Ocean
Disrup;on
(ROD)
Maps
of
The
World’s
Most
Successful
Scalable
Lean
Startups

14. RED
OCEAN
DISRUPTION
(ROD)
VISION
The
North
Star
of
the
World’s
Most
Innova:ve
Companies
“Reinvent
(Disrupt)
The
Customer
Experience
In
The
Tradi;onal
X-­‐Industry”
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hMp://businessmodels.ning.com
&
hMp://twiMer.com/RodKuhnKing

15. A
Scalable
Lean
Startup
Story
About
the
Evolu;on
of
Man
(Homo
Sapiens)
How
Nature
Uses
the
Lean
Startup
Method
in
a
Fractal
Lifecycle
of
5
Experiments
Fractal
Lifecycle
Plan
for
Scalable
Lean
Startups
Chasm
Lean
Startup’s
Journey
&
Milestones
?
Problem-­‐Solu;on
Product-­‐Market
Experiment
Experiment
Op;miza;on
&
Scaling
Experiment
Renewal
Experiment
Vision
Experiment
(“Big
Bang”
Disrup:on)
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hMp://businessmodels.ning.com
&
hMp://twiMer.com/RodKuhnKing

16. Red
Ocean
Disrup;on
(ROD)
Map
of
Apple
(iPhone):
2007
q Vision
Experiment
q Problem-­‐Solu;on
Experiment
q Product-­‐Market
Experiment
q Op;miza;on
&
Scaling
q Renewal
Project
Vision
(Cause/Final
Result/Outcome):
Reinvent
(Disrupt)
the
Customer
Experience
in
the
Phone
Industry
Customer
(Segment/Base/“Tribe”/Benefactor):
Luxury-­‐Spot
“Game-­‐changers”
Goal/Strategy/Job-­‐To-­‐Get-­‐Done:
Seamless
Mul:-­‐media
Communica:on:
Differently
Phone,
Listen
to
Music,
and
Browse
Internet
Conven4onal
Tool
(Product/Service/Business
Model):
Cell
phones;
Smartphones:
Moto
Q;
Blackberry;
Palm
Treo;
Nokia
E62;
Digital
Music
Player;
Desktop/Laptop
Computer
D:
B:
Define
Build
Problem
(Needs)
Solu4on
(Pilot)
Red
Ocean
Business
Model
(Product/Service)
Smartphones
Not
So“Smart”
Complex:
Hard
to
Use
Small
Screen
Fixed
Key-­‐
board;
Stylus
Minimum
Viable
Business
Model
(Product/Service)
Disrup;ve
Smartphone
(Prototype/Demo)
M:
Measure
Problem
(Effect)
Business
Model
(“PEAR”)
Metrics
P:
Process
(Trade-­‐off)
E:
Engagement
A:
Acquisi4on
A:
Ac4va4on
P.I.E.S.
Features
q “Supersmart”
R:
Reten4on
Phone
q Dead
Simple
to
R:
Referral
Use
q Cool,
Sexy
Design
R:
Revenue
q Ultra-­‐slim
q No
Keyboard
or
Stylus
A:
Analyze
Problem
Business
Model
Analysis
I:
Improve
Solu4on
Business
Model
Disrup4on
Strategy
E:
Eliminate
Lifecycle
Experiments
Fixed
plas:c
q Vision
(Leap
of
keyboard/buZons;
Faith)
Pen
stylus;
Manual
Experiment
R:
Reduce
Size/Thickness;
q Problem-­‐Solu4on
Weight;
Complexity;
Experiment
Learning/:me
q Product-­‐Market
Experiment
I:
Increase
Price;
Screen
Size;
Performance;
q Op4miza4on
&
Scaling
Experiment
Syncing;
Design
C:
Create
Touchscreen;
q Renewal/
Packaging;
Visual
Disrup4on
Voicemail;
Apps;
Ads
Experiment
L:
Learn
What’s
Valued
Blue
Ocean
Business
Model
(Product/Service)
iPhone
Touchscreen
Mobile
Phone/
Digital
Music
Player/
Internet
Navigator
“Insanely
Great
Customer
Experience”
Note:
P.I.E.S.
is
an
acronym
for
Physical;
Intellectual;
Emo:onal;
Spiritual
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hMp://businessmodels.ning.com
&
hMp://twiMer.com/RodKuhnKing

17. Red
Ocean
Disrup;on
(ROD)
Map
of
Apple
(iPod):
2001
q Vision
Experiment
q Problem-­‐Solu;on
Experiment
q Product-­‐Market
Experiment
q Op;miza;on
&
Scaling
q Renewal
Project
Vision
(Cause/Final
Result/Outcome):
Reinvent
(Disrupt)
the
Customer
Experience
in
the
Music
Player
Industry
Customer
(Segment/Base/“Tribe”/Benefactor):
Luxury-­‐Spot
“Game-­‐changers”
Goal/Strategy/Job-­‐To-­‐Get-­‐Done:
Seamless
Music
Experience
(Everywhere):
Differently
Listen
to
Music
Conven4onal
Tool
(Product/Service/Business
Model):
Portable
Music
Players
–
CD-­‐Player;
Flash
Player;
MP3-­‐CD
Player;
Hard-­‐Disk
Jukebox
D:
B:
Define
Build
Problem
(Needs)
Solu4on
(Pilot)
Red
Ocean
Business
Model
(Product/Service)
Music
Players
Limited
Song
Storage
“Ugly”
Design;
Bulky
Limited
BaMery
Life
Skipped
Songs
Minimum
Viable
Business
Model
(Product/Service)
Disrup;ve
Music
Player
(Prototype/Demo)
M:
Measure
Problem
(Effect)
Business
Model
(“PEAR”)
Metrics
P:
Process
(Trade-­‐off)
E:
Engagement
A:
Acquisi4on
A:
Ac4va4on
P.I.E.S.
Features
q “Unlimited”
Song
R:
Reten4on
Storage
q Cool,
Sexy
Design
q Long
Bagery
Life
R:
Referral
q No
Skipped
R:
Revenue
Songs
A:
Analyze
Problem
Business
Model
Analysis
I:
Improve
Solu4on
Business
Model
Disrup4on
Strategy
Lifecycle
Experiments
E:
Eliminate
q Vision
(Leap
of
Control
BuZons;
Faith)
Gray/Black
Color;
Experiment
On-­‐off
Switch
q Problem-­‐Solu4on
R:
Reduce
Size/
Experiment
Weight;
Thickness;
q Product-­‐Market
Experiment
q Op4miza4on
&
Scaling
Experiment
q Renewal/
Disrup4on
Experiment
Complexity
I:
Increase
Price;
Song
Storage;
BaZery
Life
C:
Create
LCD
Screen;
Wheel;
Fast
Download
L:
Learn
What’s
Valued
Blue
Ocean
Business
Model
(Product/Service)
Classic
iPod
Ultra-­‐Portable
Digital
Music
Player:
“A
Thousand
Songs
in
Your
Pocket”
“Insanely
Great
Customer
Experience”
Note:
P.I.E.S.
is
an
acronym
for
Physical;
Intellectual;
Emo:onal;
Spiritual
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hMp://businessmodels.ning.com
&
hMp://twiMer.com/RodKuhnKing

18. Red
Ocean
Disrup;on
(ROD)
Map
of
Cirque
du
Soleil:
1984
q Vision
Experiment
q Problem-­‐Solu;on
Experiment
q Product-­‐Market
Experiment
q Op;miza;on
&
Scaling
q Renewal
Project
Vision
(Cause/Final
Result/Outcome):
Reinvent
(Disrupt)
the
Customer
Experience
in
the
Tradi:onal
Circus
Industry
Customer
(Segment/Base/“Tribe”/Benefactor):
Sweet-­‐Spot
“Game-­‐changers”
Goal/Strategy/Job-­‐To-­‐Get-­‐Done:
Differently
Experience
Live
Entertainment
(Circus)
Conven4onal
Tool
(Product/Service/Business
Model):
Tradi:onal
Circus;
Musical;
Broadway
Theater;
Spor:ng
Events
D:
B:
Define
Build
Problem
(Needs)
Solu4on
(Pilot)
Red
Ocean
Business
Model
(Product/Service)
Tradi;onal
Circus
Animal
Cruelty
Divided
AMen;on
in
3-­‐Ring
Venue
High
Price
of
Aisle
Seats
Expensive
Star
Performers
Minimum
Viable
Business
Model
(Product/Service)
Disrup;ve
Street
Performance
Act
(Road
Show/Demo)
P.I.E.S.
Features
q Unique
(Broadway-­‐type)
Circus
q No
Animal
Cruelty
q Classy
Venues
M:
Measure
Problem
(Effect)
Business
Model
(“PEAR”)
Metrics
P:
Process
(Trade-­‐off)
E:
Engagement
A:
Acquisi4on
A:
Ac4va4on
R:
Reten4on
R:
Referral
R:
Revenue
A:
Analyze
Problem
Business
Model
Analysis
I:
Improve
Solu4on
Business
Model
Disrup4on
Strategy
E:
Eliminate
Star
Performers;
Animal
Shows;
Aisle
Concessions;
Mul:ple
Show
Arenas
q Problem-­‐Solu4on
R:
Reduce
Experiment
Fun
and
Humor;
Thrill
and
Danger
Lifecycle
Experiments
q Vision
(Leap
of
Faith)
Experiment
q Product-­‐Market
Experiment
q Op4miza4on
&
Scaling
Experiment
q Renewal/
Disrup4on
Experiment
I:
Increase
Unique
Venue
C:
Create
Theme;
Refined
Environment;
Mul:-­‐Produc:ons;
Music
and
Dance
L:
Learn
What’s
Valued
Blue
Ocean
Business
Model
(Product/Service)
Cirque
du
Soleil
Avant
Garde
Circus
Unique
Circus-­‐Theater
Entertainment
Note:
P.I.E.S.
is
an
acronym
for
Physical;
Intellectual;
Emo:onal;
Spiritual
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hMp://businessmodels.ning.com
&
hMp://twiMer.com/RodKuhnKing

19. Red
Ocean
Disrup;on
(ROD)
Map
of
Southwest
Airlines:
1971
q Vision
Experiment
q Problem-­‐Solu;on
Experiment
q Product-­‐Market
Experiment
q Op;miza;on
&
Scaling
q Renewal
Project
Vision
(Cause/Final
Result/Outcome):
Reinvent
(Disrupt/Democra:ze)
the
Customer
Experience
of
the
Air
Travel
Industry
Customer
(Segment/Base/“Tribe”/Benefactor):
Low
Cost
“Game-­‐changers”
Goal/Strategy/Job-­‐To-­‐Get-­‐Done:
Interstate
Travel:
Differently
Travel
Between
Ci:es
Conven4onal
Tool
(Product/Service/Business
Model):
Tradi:onal
Airlines;
Train;
Taxi;
Con:nental
Airlines;
Pacific
Southwest
D:
B:
Define
Build
Problem
(Needs)
Solu4on
(Pilot)
Red
Ocean
Business
Model
(Product/Service)
Short-­‐Haul
Transport
High
Ticket
Price
Delays
on
Ground
Unserved
Prospects
Minimum
Viable
Business
Model
(Product/Service)
Disrup;ve
Short-­‐Haul
Transport
(Prototype/Demo)
P.I.E.S.
Features
q Low
Cost
q Timely
Flights
M:
Measure
Problem
(Effect)
Business
Model
(“PEAR”)
Metrics
P:
Process
(Trade-­‐off)
E:
Engagement
A:
Acquisi4on
A:
Ac4va4on
R:
Reten4on
R:
Referral
R:
Revenue
A:
Analyze
Problem
Business
Model
Analysis
I:
Improve
Solu4on
Business
Model
Disrup4on
Strategy
E:
Eliminate
L:
Learn
What’s
Valued
Blue
Ocean
Business
Model
(Product/Service)
Lifecycle
Experiments
Disrup;ve
Meals;
q Vision
(Leap
of
Short-­‐Haul
Transport
Lounges;
Faith)
Sea:ng
Class
Choices;
Experiment
Hub
Connec:vity
q Problem-­‐Solu4on
Experiment
q Product-­‐Market
Experiment
q Op4miza4on
&
Scaling
Experiment
q Renewal/
Disrup4on
Experiment
R:
Reduce
Price
of
Air
Ticket
I:
Increase
Friendly
Service;
Speed
C:
Create
Frequent
Point-­‐to-­‐Point
Departures
Low
Cost
Airline
“The
speed
of
a
plane
at
the
price
of
a
car
…
whenever
you
need
it”
Note:
P.I.E.S.
is
an
acronym
for
Physical;
Intellectual;
Emo:onal;
Spiritual
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hMp://businessmodels.ning.com
&
hMp://twiMer.com/RodKuhnKing

20. Red
Ocean
Disrup;on
(ROD)
Map
of
Google
(Search
Engine):
1998
q Vision
Experiment
q Problem-­‐Solu;on
Experiment
q Product-­‐Market
Experiment
q Op;miza;on
&
Scaling
q Renewal
Project
Vision
(Cause/Final
Result/Outcome):
Reinvent
(Disrupt)
the
Customer
Experience
of
the
Search
Engine
Industry
Customer
(Segment/Base/“Tribe”/Benefactor):
Blue
Ocean
“Game-­‐changers”
Goal/Strategy/Job-­‐To-­‐Get-­‐Done:
(1)
Differently
Get
Accurate
Search
Results
(2)
Differently
Get
Leads/Purchases
Conven4onal
Tool
(Product/Service/Business
Model):
Tradi:onal
Search
Engines
(Yahoo;
Excite;
GoTo.com;
Lycos)
D:
B:
Define
Build
Problem
(Needs)
Solu4on
(Pilot)
Red
Ocean
Business
Model
(Product/Service)
Search
Engines
Complex
User
Interface
Irrelevant/Paid
Search
Results
Banner
Ads
Untargeted
and
Costly
Ads
Minimum
Viable
Business
Model
(Product/Service)
Disrup;ve
Search
Engine
(Prototype/Demo)
P.I.E.S.
Features
q Simplicity
q Relevance
q Speed
q Inexpensive
Ads
M:
Measure
Problem
(Effect)
Business
Model
(“PEAR”)
Metrics
P:
Process
(Trade-­‐off)
E:
Engagement
A:
Acquisi4on
A:
Ac4va4on
R:
Reten4on
R:
Referral
R:
Revenue
A:
Analyze
Problem
Business
Model
Analysis
Lifecycle
Experiments
q Vision
(Leap
of
Faith)
Experiment
I:
Improve
Solu4on
Business
Model
Disrup4on
Strategy
E:
Eliminate
Banner
Ads;
Paid/Sponsored
Rankings
L:
Learn
What’s
Valued
Blue
Ocean
Business
Model
(Product/Service)
Disrup;ve
Search
Engine
R:
Reduce
q Problem-­‐Solu4on
Delay
in
Displaying
Experiment
Search
Results
q Product-­‐Market
Experiment
q Op4miza4on
&
Scaling
Experiment
q Renewal/
Disrup4on
Experiment
I:
Increase
Relevance
of
Search
Results/Ads
C:
Create
Automated
Ad
Purchasing
System;
Clean
(Elegant/
Simple)
Interface
“Organize
the
world’s
informa:on
and
make
it
universally
accessible
and
useful”
Note:
P.I.E.S.
is
an
acronym
for
Physical;
Intellectual;
Emo:onal;
Spiritual
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hMp://businessmodels.ning.com
&
hMp://twiMer.com/RodKuhnKing

21. Red
Ocean
Disrup;on
(ROD)
Map
of
An
Emerging
Red
Ocean
Disrup;on
(ROD)
Lean
Startup

22. Red
Ocean
Disrup;on
(ROD)
Map
for
Red
Ocean
Disrup;on
(ROD)
University
ROD
U
Date:
October
2013
ü Vision
Experiment
q Problem-­‐Solu;on
Experiment
q Product-­‐Market
Experiment
q Op;miza;on
&
Scaling
q Renewal
Project
Vision
(Cause/Final
Result/Outcome):
“Develop
Tools
for
Collabora:vely
and
Rapidly
Resolving
the
Global
Healthcare
Crisis”
Customer
(Segment/Base/“Tribe”/Benefactor):
BLUE
OCEAN
“GAME-­‐CHANGERS”:
Macro/Meso/Microsystems
(Disruptors)
Goal/Strategy/Job-­‐To-­‐Get-­‐Done:
Cost-­‐effec:vely
Improve
and
Disrupt
Exis:ng
Tools,
Services,
Brands,
and/or
Business
Models
Conven4onal
Tool
(Product/Service/Business
Model):
Business/Strategic
Plan;
Lean/Six
Sigma
Method;
Learning
From
Defect;
A3
Problem
Solving
Template
D:
B:
Define
Build
Problem
(Needs)
Solu4on
(Pilot)
M:
Measure
Problem
(Effect)
A:
Analyze
Problem
I:
Improve
Solu4on
L:
Learn
What’s
Valued
Experiment/
Cycle
1
Experiment/
Cycle
2
Experiment/
Cycle
…
Customer
Story
Business
Story
Learning
Story
(ROD
Problem)
(ROD
Solu:on)
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hMp://businessmodels.ning.com
&
hMp://twiMer.com/RodKuhnKing

23. Red
Ocean
Disrup;on
(ROD)
Map
for
Red
Ocean
Disrup;on
(ROD)
University
ROD
U
Date:
October
2013
ü Vision
Experiment
q Problem-­‐Solu;on
Experiment
q Product-­‐Market
Experiment
q Op;miza;on
&
Scaling
q Renewal
Project
Vision
(Cause/Final
Result/Outcome):
“Develop
Tools
for
Collabora:vely
and
Rapidly
Resolving
the
Global
Healthcare
Crisis”
Customer
(Segment/Base/“Tribe”/Benefactor):
BLUE
OCEAN
“GAME-­‐CHANGERS”:
Macro/Meso/Microsystems
(Disruptors)
Goal/Strategy/Job-­‐To-­‐Get-­‐Done:
Cost-­‐effec:vely
Improve
and
Disrupt
Exis:ng
Tools,
Services,
Brands,
and/or
Business
Models
Conven4onal
Tool
(Product/Service/Business
Model):
Business/Strategic
Plan;
Lean/Six
Sigma
Method;
Learning
From
Defect;
A3
Problem
Solving
Template
D:
B:
Define
Build
Problem
(Needs)
Solu4on
(Pilot)
Red
Ocean
Business
Model
(Product/Service)
Tradi;onal
Planning
&
Problem
Solving
Voluminous;
Rigid;
Costly
Time-­‐consuming
Waste
of
Resources
M:
Measure
Problem
(Effect)
Minimum
Viable
Business
Model
(Product/Service)
Disrup;ve
Tool
ROD
Quartet
of
Tools
(Con4nuous
Problem
Finding
&
Solving)
D B M A I
P.I.E.S.
Features
q One-­‐page
q Simple
q Fast
q Versa4le
q Inexpensive
L
Business
Model
(“PEAR”)
Metrics
P:
Process
(Trade-­‐off)
E:
Engagement
A:
Acquisi4on
A:
Ac4va4on
R:
Reten4on
R:
Referral
R:
Revenue
A:
Analyze
Problem
Business
Model
Analysis
q
q
q
Business
Model
Disrup4on
Strategy
L:
Learn
What’s
Valued
Blue
Ocean
Business
Model
(Product/Service)
E:
Eliminate
ROD
University
Complexity
Web
Site
R:
Reduce
(Sign
up/Landing
Page)
• Cost
• Prepara:on
Time
Problem-­‐Solu4on
• Size/Thickness
Experiment
• Waste
(Failure)
I:
Increase
Product-­‐Market
• Relevance;
Ac:on
Experiment
• Versa:lity
• Collabora:ve
Op4miza4on
&
Problem
Solving
Scaling
Experiment
hgp://
• Flexibility
businessmodels
Renewal/
C:
Create
.ning.com
Disrup4on
• Heuris:c:
DB-­‐MAIL
Experiment
• ROD
Teams
Lifecycle
Experiments
q Vision
(Leap
of
Faith)
Experiment
q
I:
Improve
Solu4on
•
Note:
P.I.E.S.
is
an
acronym
for
Physical;
Intellectual;
Emo:onal;
Spiritual
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hMp://businessmodels.ning.com
&
hMp://twiMer.com/RodKuhnKing

24. ROD
Cycle:
Origin
of
The
Red
Ocean
Disrup4on
(ROD)
Map

25. Red
Ocean
Disrup;on
(ROD)
Cycle:
DB-­‐MAIL
Red
Ocean
Disrup;on
(ROD)
Map
for
Product
Innovators,
Improvers,
Planners,
and
Lean
Startups
q D:
Define
Problem
q B:
Build
Solu4on
q M:
Measure
Problem
q A:
Analyze
Problem
q I:
Improve
Solu4on
q L:
Learn
What’s
Valued
Business
Lifecycle
Evolu4on
1. Vision
(Leap
of
Faith)
Experiment
Does
the
vision,
cause,
theme,
or
Job-­‐
To-­‐Get-­‐Done
of
the
project
empower
the
targeted
customers
(co-­‐creators)?
D:
Define
L:
Learn
B:
Build
ROD
Cycle
for
Each
Evolu:on/Experiment
(Project):
DB-­‐MAIL
I:
Improve
M:
Measure
A:
Analyze
2. Problem-­‐Solu;on
Experiment
Would
a
minimum
viable
product/
service
(prototype)
solve
a
validated
Big
Urgent
Market
Problem
(BUMP)?
3.
Product-­‐Market
Experiment
Is
the
proposed
(more
featured)
product/service/business
model
effec:vely
and
profitably
solving
the
Big
Urgent
Market
Problem
(BUMP)?
4. Business
Model
Op;miza;on
&
Scaling
Experiment
Can
defects
or
waste
in
processes
be
rapidly
and
cost-­‐effec:vely
eliminated,
i.e.,
brought
to
the
level
of
Six
Sigma
(3.4
defects
in
1,000,000)?
Can
the
business
model
be
scaled
or
repeated?
5. Business
Model
Renewal/
Ecosystem
Disrup;on
Experiment
How
best
to
disrupt
exis:ng
(matured)
product/service/business
model?
Note:
The
ROD
(DB-­‐MAIL)
Cycle
is
a
synthesis
of
ideas
from
the
Scien4fic
Problem-­‐Solving
Process,
Six
Sigma’s
“DMAIC”
heuris4c,
Eric
Ries’s
“Build-­‐Measure-­‐Learn
(BML)”
Loop,
Kim
&
Mauborgne’s
Blue
Ocean
Strategy,
and
Jean-­‐Marie
Dru’s
Disrup4on.
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hMp://businessmodels.ning.com
&
hMp://twiMer.com/RodKuhnKing

26. 5
Applica;ons
of
the
Red
Ocean
Disrup;on
(ROD)
Map
Red
Ocean
Disrup4on
(ROD)
Cycle:
DB-­‐MAIL
q D:
Define
Problem
q B:
Build
Solu4on
q M:
Measure
Problem
q A:
Analyze
Problem
q I:
Improve
Solu4on
q L:
Learn
What’s
Valued
You
can
use
the
Red
Ocean
Disrup4on
(ROD)
Cycle
or
Map
to
rapidly
and
cost
effec4vely
do
the
following
projects:
VISION
DOCUMENTATION,
PLANNING,
EXECUTION,
AND
PRESENTATION
BUSINESS
MODEL
IMPROVEMENT:
Lean/Six
Sigma
Projects;
Process/Product/Service
Improvement
Projects
BUSINESS
MODEL
DISRUPTION
(INNOVATION):
Lean
Startup
Projects;
Process/Product/Service
Innova4on
Projects
BUSINESS/STRATEGIC
PLANNING:
Business
Plan
Projects;
Strategic
Plan
Projects
BRAND
DISRUPTION:
Brand
Reinven4on/Disrup4on
Projects;
Disrup4ve
Marke4ng
Projects
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hMp://businessmodels.ning.com
&
hMp://twiMer.com/RodKuhnKing