Zoomable Project Canvas for Business Model Improvement and Disruption - vdd university

HEROES

Think Big and Different

THE ZOOMABLE PROJECT CANVAS
FOR BUSINESS MODEL IMPROVEMENT AND DISRUPTION
Scalably Design Your Disruptive Business Model and Lean Startup
As Well As
Secure Customer Buy-in and Venture Funding

Visual
White
Paper Dr. Rod King
VDD University for Lean Startup Project Management

“Disruptive Innovations
Are Like
Missiles
Launched at Your Business”
Maxwell Wessel & Clayton Christensen

The Greatest Constraint, Risk, or Challenge
Facing a Typical Startup
Is
To Obtain Massive Customer Buy-in;
ITENNWH

In Short, To Co-discover and Validate
A B.U.M.P.:
Big Urgent Market Problem
Copyright 2012. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing

“Most Startups
Lack
A Structured Process
For Testing
Their Business Model
[Problem/Solution-] Hypotheses”
Steve Blank & Bob Dorf

Good Problem Solvers
– Tacitly and/or Explicitly –
Continuously Use
One Visual Template
[The Zoomable Project Canvas]:
A Platform
for
Integrated Problem Solving

The Visual Structure and Design
Of
The Zoomable Project Canvas
Are Based On a Triad of Principles:
1. Disruptive Evolution of S-Wave
2. Universal Problem Solving
3. Strategy-and-Tactics Integration

Features
An Adaptive Project Planning &
Management Framework
That Can Respond and Adapt to
Emergent Problems
And
A Rapidly Changing Environment

Use
To Scalably and Adaptively
Design Business Models and Startups
As Well As
Secure Customer Buy-in and
Venture Funding

Can Also Be Used As A Platform For
Facilitating, Presenting, and Integrating
The Following Tools/Methodologies:
 Brainstorming; Creative Problem Solving; Design
 Adaptive Project Planning; Adaptive Business Planning
 Competitive (Advantage) Strategy; Value Chain
 Blue Ocean Strategy; Disruptive Innovation Strategy
 Customer Development
 Agile Development; Lean Startup; Continuous Innovation
 Business Model Canvas; Lean Canvas
 Balanced Scorecard
 TRIZ; Theory of Constraints; Six Sigma

Zoomable Project Canvases
Of
4 Disruptive Lean Startups

ZOOMABLE PROJECT CANVAS: System Improvement/Disruption of ……………………
Problem Space (20…..) Big Urgent Market Problem (BUMP)
…………………… Industry What system to improve/disrupt? “Top Dogs” …………………….

Solution (Story) Space
What How What Why
system best to system improve/disrupt
to improve/disrupt? improve/disrupt to improve/disrupt system?
system? to?
Shared
Present System Process/Strategy Future System Goal/Vision/Result
Lean Startup Project Short/Medium/Long Term
Management (LSPM) ITENN
 Precedents
(Analogs/Antilogs)
 Inventive Principles
D N A & Techniques - D N A
• Eliminate: ………………
• Reduce: …………………
• Increase: ………………. Constraints/Trade-offs
• Create: …………………

 Get Out Of Building
 Prototype (Build)-
Given System Measure-Learn Evolved System


ZOOMABLE PROJECT CANVAS (ZPC) for PRODUCT IMPROVEMENT/DISRUPTION
Problem Space
What product or service to improve/disrupt?

How What Why
What
best to product or service improve/disrupt
product or service
improve/disrupt to improve/disrupt product or service?
to improve/disrupt?
product or service? to?
Shared
Present Product Process/Strategy Future Product Goal/Vision/Result/
ITENN Short Term
 Medium Term
Aspiration

 Long Term

Constraints/Trade-offs


ZOOMABLE PROJECT CANVAS (ZPC) for BUSINESS MODEL IMPROVEMENT/DISRUPTION
Problem Space
What business model to improve/disrupt?

How What Why
What
best to business model improve/disrupt
business model
improve/disrupt to improve/disrupt business model?
to improve/disrupt?
business model? to?
Shared
Present Bus. Model Process/Strategy Future Bus. Model Goal/Vision/Result/
ITENN Short Term
 Medium Term
Aspiration

 Long Term



Apple’s PROJECT CANVAS: Business Model Improvement/Disruption of Smartphone Industry

Telecommunications Problem Space (2007) User Interface
(Smartphone) Industry What business model to improve/disrupt? “Top Dogs” with buttons

What How What Why
business model best to business model improve/disrupt
to improve/disrupt? improve/disrupt to improve/disrupt business model?
business model? to?
Shared
Present Bus. Model Process/Strategy Future Bus. Model Goal/Vision/Result
Lean Startup Project Short/Medium/Long Term  Revolutionary user
Management (LSPM) ITENN interface without
 Precedents buttons
(Analogs/Antilogs)  “Apple reinvents the
 Disruptive Innova- phone”
D N A tion/Blue Ocean - D N A  Disruptive but viable
• Eliminate: Buttons business ecosystem:
• Reduce: Thickness Digital Hub
• Increase: Simplicity  “Put a dent in the
• Create: Multitouch universe”
screen; Ecosystem Constraints/Trade-offs
 Get Out Of Building  No tactile buttons
 Prototype (Build)-  Expensive phone
Sustainable Bus. Model Measure-Learn ‘Sweet Spot’ Bus. Model  Unique interface


Netflix’s PROJECT CANVAS: Business Model Improvement/Disruption of Blockbuster

Home Entertainment Problem Space (1997) High/
(Video Rental) Industry What business model to improve/disrupt? “Top Dog” Late fees

What How What Why
business model? to?
Shared
Lean Startup Project Short/Medium/Long Term
 Video rental busi-
Management (LSPM) ITENN ness without late
 Precedents
fees
(Analogs/Antilogs)
 Membership with
 Disruptive Innova-
flat fees
D N A tion/Blue Ocean - D N A  Video/Film Rental
• Eliminate: Late fees
Service 24x7
• Reduce: Product size
 Disruptive but viable
• Increase: Accessibility
business model
• Create: Flat fees; web
order/mail delivery
 Limited number and
 Get Out Of Building
range of video/film
 Prototype (Build)-
Sustainable Bus. Model Disruptive Bus. Model titles for rental
Measure-Learn


Cirque du Soleil’s PROJECT CANVAS: Business Model Improvement/Disruption of Circus Industry

Entertainment Problem Space (1984)
(Circus) Industry What business model to improve/disrupt? “Top Dogs” Animals

What How What Why
business model? to?
Shared
Lean Startup Project Short/Medium/Long Term  “We reinvent the
Management (LSPM) ITENN circus”
 Precedents  Circus without
(Analogs/Antilogs) animals
 Disruptive Innova-  Market space where
D N A tion/Blue Ocean - D N A competitors are
• Eliminate: Animals irrelevant
• Reduce: Thrill/Danger  Differentiation and
• Increase: Ambience low cost Bus. Model:
• Create: Theme; Music “Blue Ocean”
Dance; Multi-prodns Constraints/Trade-offs
 Get Out Of Building  Tickets are more
 Prototype (Build)- expensive than in
Red Ocean Bus. Model Measure-Learn Blue Ocean Bus. Model traditional circus


Google’s PROJECT CANVAS: Business Model Improvement/Disruption of Search Engine Industry

Information Technology Problem Space (1998)
(Search Engine) Industry What business model to improve/disrupt? “Top Dogs” Cluttered Interface

What How What Why
business model? to?
Shared
Lean Startup Project Short/Medium/Long Term  “To organize the
Management (LSPM) ITENN world’s information
 Precedents and make it univer-
(Analogs/Antilogs) sally accessible
 Disruptive Innova- and useful”
D N A tion/Blue Ocean - D N A  “Don’t Be Evil”
• Eliminate: Clutter  Differentiation and
• Reduce: Interruptions low cost Bus. Model:
• Increase: Speed “Blue Ocean”
• Create: Targeted Ads;  Multi-sided Model
Multi-sided Platform Constraints/Trade-offs
 Get Out Of Building  No banner adverti-
 Prototype (Build)- ing; no ranking
Red Ocean Bus. Model Measure-Learn Blue Ocean Bus. Model using paid results


“Everyone Has a Plan
Until
They Get Punched
ITENNWH

In the Face”
Mike Tyson

Strategies Change.
The ONLY Constant In
Business, War, and Life
Is
The Set of
ITENNWH
4 Improvement/Disruption Questions:
 What system to improve/disrupt?
 How best to improve/disrupt system?
 What system to improve/disrupt to?
 Why improve/disrupt system?

THE 3 PRINCIPLES OF THE ZOOMABLE PROJECT CANVAS

Inherent in the
Visual Design and Use of
The Zoomable Project Canvas ITENNWH

Are 3 Principles:
1. Disruptive Evolution of S-Wave
2. Universal Problem Solving
3. Strategy-and-Tactics Integration

PRINCIPLE OF DISRUPTIVE EVOLUTION OF S-WAVE

“The Value of
A Living System or Organism
Follows the Shape of an S-Wave By
ITENNWH
Adaptively Solving Problems
And
Adding Value
To its Environment.
Otherwise, the System Dies.”

PRINCIPLE OF UNIVERSAL PROBLEM SOLVING

“Good Problem Solvers
In All Domains
ITENNWH

- Tacitly and/or Explicitly -
Collaboratively and Daily Use
The Zoomable Project Canvas.”


PRINCIPLE OF STRATEGY-AND-TACTICS INTEGRATION

“Successful Leaders and Projects
Adaptively Integrate
ITENNWH

Strategy and Tactics
That Differently Create
Greater Happiness or Shared Value.”


Visual Checklist for CUSTOMER EXPERIENCE IMPROVEMENT/DISRUPTION
Problem Space
What customer experience to improve/disrupt?

What How What Why
customer experience best to customer experience improve/disrupt
to improve/disrupt to customer experience?
improve/disrupt? customer experience? improve/disrupt to?
Shared
Present Customer XP Process/Strategy Future Customer XP Goal/Vision/Result
 Customer Ecosystem  Customer Develop- ITENN Customer Ecosystem  Shared Value
(Market/Segment) ment (Market/Segment)  Profit
 Job To Be Done/  Business Model  Job To Be Done/  Revenue (Streams)
Goal/Workflow Mapping/Inno’ Goal/Workflow  Cost (Structure)
 Tool or Means  Lean Startup (Agile)  Tool or Means  Delight (+)
(Product/Service/  Trends (PESTLIED) (Product/Service/  Pain (-)
Brand/Bus. Model/  Competitive Strat. Brand/Bus. Model/  Ideal Final Result
Bus. Ecosystem)  Disruptive Innova- Bus. Ecosystem) (IFR)
 Outcome/Result tion Strategy  Outcome/Result  Ultimate Leap of
 Customer Experi-  Blue Ocean Strategy  Customer Experi- Faith (LoF)
ence  Creative Strategy ence  Other Success
(Delight/Pain)  TRIZ; CPS; ToC; VDD (Delight/Pain) Criteria (Metrics)


CUSTOMER ACQUISITION PYRAMID: Getting Massive Customer Buy-in (Early Adopters)

Disruption Question: ……………………………………………………………………………………………………………………

Dream
Product/Service
 Delighters
 Satisfiers
STARTUP  Dissatisfiers

DIRECT COMPETITORS  Delighters
(Core Sector/Strategic Groups:  Satisfiers
Substitutes) Why?
 Dissatisfiers How?

INDIRECT COMPETITORS  Delighters
(Peripheral/Adjacent Industries:  Satisfiers
Alternatives/Value Chain Complements) Why?

 NON- CUSTOMERS (“UNDERDOGS”)
NON-COMPETITORS
o Profitable Why?
(Remote Industries/Economy:
o Break-even How?
Sectoral & Geographical Non-alternatives)
o Unprofitable

(New) Customer Value Proposition/Market: …………………………………………………………………..

Diffusion (Word-of-mouth) Potential = Delighters + Satisfiers - Dissatisfiers


CUSTOMER ACQUISITION PYRAMID for Zoomable Project Canvas (ZPC)
Disruption Question: How best to get massive customer buy-in (early adopters)?

Dream
Product/Service
 Delighters
 Satisfiers
ZPCanvas  Dissatisfiers

CUSTOMER DEV. STACK  Delighters
(Core Sector/Strategic Groups:  Satisfiers
Substitutes) Why?

BUSINESS (STRATEGIC) PLAN  Delighters
(Peripheral/Adjacent Industries:  Satisfiers
Alternatives/Value Chain Complements) Why?

 NON- CUSTOMERS (“UNDERDOGS”)
NON-COMPETITORS
o Profitable Why?
(Remote Industries/Economy:
o Break-even How?
Sectoral & Geographical Non-alternatives)
o Unprofitable

(New) Customer Value Proposition/Market: …………………………………………………………………..

Diffusion (Word-of-mouth) Potential = Delighters + Satisfiers - Dissatisfiers


“We’re Good at Solving Problems
But
ITENNWH

Not So Good At Defining Them”
David Murray

“You Have to Understand
The Root Cause of the Problem
Before
ITENNWH

You Can Develop
Hypothesis On How to Solve It”
David Murray

Entrepreneurs
Are
Inventive Problem Finders and Solvers.
Successful Entrepreneurs
Constantly Discover Customer Problems
ITENNWH

And
Iteratively Test Prototypes (Versions)
That Cost-Effectively Solve
Big Urgent Market Problems (BUMPs).

BUT,
How Do Successful Entrepreneurs
Really
Discover Customer Problems
ITENNWH
And
Iteratively Test Prototypes (Versions)
That Cost-Effectively Solve
Big Urgent Market Problems (BUMPs)?

MY PRIMARY FALSIFIABLE HYPOTHESIS

Zoomable Project Canvas (ZPC) for Modeling and Validating Problem-Hypotheses As Well As Solution-Hypotheses

Successful Entrepreneurs
Tacitly and/or Explicitly Master
ITENNWH
Collaborative and Daily Use
of

MY SECONDARY FALSIFIABLE HYPOTHESIS

Existing Tools for Business Planning and Strategic Planning as well as Business Model Improvement and Disruption

Eliminates
Pains and Frustrations of Using ITENNWH
 Traditional Business (Strategic/Marketing) Plan
 Golden Circle; Value Chain
 Blue Ocean Strategy; Disruptive Innovation Strategy
 Strategy Canvas
 Business Model Canvas
 Lean Canvas
 Balanced Scorecard
 Brainstorming; TRIZ; Theory of Constraints; Six Sigma

BUT,
What Are
Benefits,
ITENNWH
Features, and Layouts
Of
The Zoomable Project Canvas?


Provides
A Universal “DNA” Layout and Language
As Well As
4 Improvement/Disruption Questions
That Help Users, Storytellers, or Disruptors to
ITENNWH

Simply Apply and Integrate
Tools of
Creativity, Problem Solving, Planning,
Strategy, Improvement, Innovation, and
Performance Management

Refers to
A Zoomable Story Canvas (Platform)
For
Simply Applying and Integrating
ITENNWH

All Tools of
Creativity, Problem Solving, Planning,
Strategy, Improvement, Innovation, and
Performance Management

THE ZOOMABLE PROJECT
CANVAS
As
ITENNWH
A Visual Platform
For
Integrated Problem Solving

ZOOMABLE PROJECT CANVAS (ZPC): Organic Perspective
Problem Space


ITENN


ZOOMABLE PROJECT CANVAS (ZPC): The 2 Mantras
Problem Space
“Get Out Of The Enterprise (Building)”

ITENN
“Prototype-Test-Learn (PTL)” or “Build-Measure-Learn (BML)”


ZOOMABLE PROJECT CANVAS (ZPC): Systematic Perspective (4 Solution-Storyboards)
Problem Space


Present Storyboard Process-Storyboard Future Storyboard Goal/Vision/Result/
 Short Term Aspiration-Storyboard
 Medium Term
 Long Term

ITENN


ZOOMABLE PROJECT CANVAS (ZPC): Systematic Perspective (The 4 Disruption Questions)
Problem Space
What system to improve/disrupt?

How What Why
What
best to system improve/disrupt
system
improve/disrupt to improve/disrupt system?
to improve/disrupt?
system? to?
Shared
Present System Process/Strategy Future System Goal/Vision/Result/
ITENN Short Term
 Medium Term
Aspiration

 Long Term



ZOOMABLE PROJECT CANVAS (ZPC) for MARKETING MODEL IMPROVEMENT/DISRUPTION
Problem Space
What marketing model to improve/disrupt?

How What Why
What
best to marketing model improve/disrupt
marketing model
improve/disrupt to improve/disrupt marketing model?
to improve/disrupt?
marketing model? to?
Shared
Present Marketing Process/Strategy Future Marketing Goal/Vision/Result/
Model
ITENN ShortModel
Term
Aspiration

 Medium Term
 Long Term



“Leaders Need
Multiple Perspectives
To
Get a Complete Picture.
AP

Effective Leaders
Zoom In and Zoom Out.”
Rosabeth Moss Canter

Bonus
Lean Startup Project Management

4 APPLICATIONS OF LEAN STARTUP PROJECT MANAGEMENT

Open Problem Finding & Solving: What way or domain is your focus?

“SOLUTION SPACE” (Product) Established Solution Unestablished Solution
(Established Product/Service/ (Unestablished Product/
“PROBLEM SPACE” (Market) Tool/Technology) Service/Tool)
Established Problem ESTABLISHED BUSINESS ESTABLISHED PROBLEM
(Established Market/BUMP/Job/  Established Market (Problem) (Market) SEARCHING FOR
 Established Solution UNESTABLISHED SOLUTION
Need)
(Product/Service/Technology) (Product/Service/Technology)
(+): Market Predictability

1 2
ITENNWH
“Six Sigma Way”/“Red Ocean Way”/ “Harvard Business School (HBS)
”Business Planning Way” Way”/“Market Planning Way”

Unestablished Problem ESTABLISHED SOLUTION Classic LEAN STARTUP
(Unestablished Market/BUMP/Job/ (Product/Service/Technology)  Unestablished Problem
SEARCHING FOR UNESTABLISHED (Market)
Need)
PROBLEM (Market)  Unestablished Solution
(Product/Service/Technology)
3 4
“MIT University Way”/ “Stanford University (SU) Way”/
“Product (Technology) Planning “Lean Startup Way”/
Way” “Blue Ocean Way”/
“Business Model Way”

(-): Product Risk

SHARE WITH COLLEAGUES. Creative Commons License. VDD University for Lean Startup Project Management
Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing

THE DREAM TEAM FOR LEAN STARTUP PROJECT MANAGEMENT (LSPM)
Who? HEROES
Collaboratively Document and Solve Big Urgent Market Problems (BUMPs) in Real Time

1. TEAMSTER 2. LEAPER 3. DESIGNER

8. PERSEVERER OR PIVOTER ITENNWH 4. BUILDER
THE DREAM TEAM
FOR
HIGHLY SUCCESSFUL INNOVATIONS
AND LEAN STARTUPS:
Personalities/Roles

7. LEARNER 6. REVIEWER 5. MEASURER


ACTIVITIES OF THE DREAM TEAM FOR LEAN STARTUP PROJECT MANAGEMENT
How? HEROES

1. TEAMSTER 2. LEAPER 3. DESIGNER

 Forms “Co-creation Dream Team”  Completes Project Charter that  Documents & reviews ecosystem
for managing the ecosystem of the describes customer, big problems, (business model) for existing
lean startup project as well as vision, resources, and duration as analogs and antilogs of project
identifying needs of stakeholders well as success criteria (ROI; cost  Devises plan (hypotheses/assump-
 Looks for synergy in ecosystem effectiveness) for startup project tions); designs strategy for project

8. PERSEVERER OR PIVOTER ITENNWH
ACTIVITIES OF 4. BUILDER
THE DREAM TEAM FOR
 Repeats spiral of steps to achieve LEAN STARTUP  Assigns finish date and metrics to
product-market fit/value proposi- PROJECT MANAGEMENT planned project activities or tactics
tion/vision/mission. Then, scale (LSPM):  States verifiable targets, criteria, or
 Otherwise, pivots (on the strategy/ The Roles Highly Successful Innovators milestones for each activity/tactic
vision). Abandons the project??? And Lean Startups Play  Builds prototype: Min. Viable Prod

7. LEARNER 6. REVIEWER 5. MEASURER

 Analyzes gaps/failures/successes  Reviews progress and gaps of lean  External Validation: Gets out of
 Anticipates future adoption and startup project: daily/weekly/ enterprise & tests most critical
weakest links. Devises experiment monthly/quarterly/annually risks & assumptions of ecosystem
 Summarizes/Shares lessons learnt  Determines and documents what  Internal Validation: Tests and
 Summarizes/Shares insights next activities to do validates internal assumptions


THE 8 STEPS-KANBAN MATRIX FOR LEAN STARTUP PROJECT MANAGEMENT (LSPM)
 BUMP Discovery Project  BUMP-Tool Fitness Project  Customer Growth Project  Company Maturity Project


8 STEPS/ CHECKLIST OF KANBAN MATRIX - Work
ACTIVITIES/ TASKS/
DONE IN PROGRESS TO DO
JOBS/STORIES RESULTS/ (Past Reality/ (Present Reality/ (Future/Backlog/
FOR LSPM DELIVERABLES Facts) Facts) Hypotheses/Plan)
1. Team Team/Stakeholders in Ecosystem

2. Leap Problem/Vision/Customer Experience

3. Design “As Is” (Analogs/Antilogs) & “To Be”
Business Model/Ecosystem; Strategy/ ITENNWH
Tactics; Value Proposition/Tagline
4. Build Program; Metrics (KPIs); Prototype/
Minimum Viable Product (MVP)
5. Measure Customer Feedback/Response/Rating/
Success Criteria: Value Proposition
6. Review Progress Report: Gaps; Value Prop.;
To Do (“What Next?”/Future) List
7. Learn Root-cause Analysis/Modeling;
Lessons Learned/Insights
8. Persevere Iteration Cycle: Problem-Solution Fit/
or Pivot Product-Market Fit; Pivot/Abandon?


ONE-PAGE LEAN STARTUP (Ries’s LS Methodology)  Past  Present  Future

CUSTOMER/CLIENT: ………………………………………………………………………………… Date:……………………………………
PAIN/PROBLEM/TRADE-OFF/GOAL/NEED/JOB: ………………………………………………………………………………………………………………………

Unique Summary and Visual Model of Eric Ries’s Book, “The Lean Startup”

MEANS (TOOL: What? How? Resources: People/Culture-Process/Strategy-Product/Service)
(Iteratively Develop Natural, Planned, and/or Disruptive Customer Ecosystem)
END
(Value/
 STEER: “BUILD-MEASURE-LEARN” VALIDATED LEARNING LOOP
Why?)
- Leap (Big Problem; Vision/Hypotheses/Value (Proposition))
 SHARED
- Test (Criteria for Problem; Minimum Viable Product(MVP))
DREAM/
- Measure (Actionable Metrics for Customer Growth)
- Pivot (or Persevere)
ITENN VISION
(Strategy/Business Model/Customer Ecosystem) - Start
- Define
 ACCELERATE: LAUNCH-SCALE - Learn
- Experiment
- Batch (Size/Version; Time/Cycle) Elimination of
- Grow (Engines of Customer Growth) Big Urgent
- Adapt (Adaptive Org./5 Whys) Market
- Innovate (Disruptive Inno.) Problems
(BUMPs)


ONE-PAGE LEAN STARTUP (Lean Startup Journey)  Past  Present  Future

PAIN/PROBLEM/TRADE-OFF/GOAL/NEED/JOB: …………………………………………………………………………………………………………

4 Phases of a Successful Lean Startup or Business Model Cycle
(The Lean Startup Journey: Evolutionary Hypotheses vs. Reality)
Customer Experience, Happiness, or Value

Fault (Line) SHARED
DREAM/
VISION:
= Delight/Pain

ITENN
Traditional/Hypothetical Ecosystem Demand
Ideal Final
Result
(Market, Industry, Enterprise, or Technology) (IFR)
Requirements
for
Insanely Great
Chasm Customer
(Traction; Tipping Point; Experience
Product-Market Fit)

Time
Infancy Growth Maturity Renewal
(Prototype) (Optimize) (Scale) (Renew)

Angel Funding Seed Funding Venture Funding
(Up to $100,000) ($100,000-$1M) ($1M-$5M)


“VISIONARY” ONE-PAGE LEAN STARTUP  Past  Present  Future

PAIN/PROBLEM/TRADE-OFF/GOAL/NEED/JOB: …………………………………………………………………………………………………………

INTERNAL/EXTERNAL MEANS (TOOL) END
(Resources: People/Culture-Process/Strategy-Product/Service) (Value)
SHARED
DREAM/
VISION
ITENN

Prototype (Build) - Measure Learn


“STRATEGIC” ONE-PAGE LEAN STARTUP (Plan): ……………………….……....… Date: ……...…..…………

Client/Customer (Segment/Persona): …………..……………………..……………………………………………………………..……

PAIN/PROBLEM/TRADE-OFF/NEED/GOAL/JOB: …………………………………………………………………………..………….

PRESENT SYSTEM/EXPERIENCE VALUE TRANSFORMATION TOOL - FUTURE SYSTEM/EXPERIENCE
(Where currently are we?) Evolve, Explore, or Disrupt: What if … we (Where must we go?)
(Eliminate/Reduce/Increase/Create) Short/Medium/Long-term

(“RED OCEAN”;  “The 8 Steps for Lean Startup (“BLUE OCEAN”)
Project Management (LSPM)” SHARED
Analog; Antilog)  Value Proposition Factors/ DREAM/
Competitive Features/Criteria VISION
 STRATEGY/TACTICS/PROCESS
• Eliminate:

• Reduce:

• Increase:

• Create:

CONSTRAINTS: (What are constraints/obstacles/barriers/problems that prevent full realization of future system/vision/
dream/Ideal Final Result (IFR)?

Zooming


“TACTICAL” ONE-PAGE LEAN STARTUP  Past  Present  Future


D Design N Needs A Asp.

S E M P O R C E S

Suppliers/ Employees/ Machinery/ Process/ Output Retailers/ Customers/ Environ- Shared
Inputs/ Culture/ Technol./ Strategy/ (Product/ Channels/ Consumers/ ment: Value
Partners Brand/IP Infra’ Project Service) Distributors Market Global (Profit)

Prototype (Build) Measure Learn


ZOOMABLE PROJECT CANVAS (ZPC): Complete Overview

Dream Up and Execute Magical Ideas That Positively Change the World

PAST PRESENT FUTURE
Business DNA Model Business DNA Model Business DNA Model IDEALS/DREAMS/
(System/Ecosystem) (System/Ecosystem) (System/Ecosystem) VISION/VALUE/PROFIT

D Design N Needs A Asp.

Suppliers/ Employees/ Machinery/ Process/ Output Retailers/ Customers/ Environ- Shared
Inputs/ Culture/ Technol./ Strategy (Product/ Channels/ Customer Rel. ment: Value
Partners Brand/IP Infra’ Service) Distributors Management Global (Profit)

S E M P O R C E S


PERIODIC TABLE AND JIGSAW PUZZLE FOR MAPPING BUSINESS DNA (MODEL)

Tools, Theories, and Methodologies for Product/Service, Business Model, and Customer Ecosystem Innovation

S E M P O R C E S
Suppliers/ Employees/ Machinery/ Processes/ Output: Retailers/ Customers/ Environ- Shared
Inputs Culture/ Technology/ Strategies Product/ Distributors/ Consumers ment Greatn./
Brand/IP Infra’ Service Channels (Problems/Job) Impact
Partners Key Resources Activities Internal Customer Relationship Industry/ SHARED
(Suppliers/ (Processes) Value Management Trends VALUE/
Materials/ Proposition PROFIT
Info/Energy) CAPABILITIES: CORE COMPETENCIES LOCAL ENVIRONMENT GLOBAL
(Solution) (Pain: -
(Demand) ENV.
Delight: +

ENTERPRISE (SYSTEM/VALUE CHAIN/Supply: Inside the Enterprise)

D N A
Design Needs Aspiratns
GLOBAL COMPE-
EXTENDED ENTERPRISE COMPETI- TITIVE
(SUB-ECOSYSTEM; INDUSTRY/SUPPLY CHAIN) TIVE ADVAN-
FORCES TAGE
INPUT PROCESSING OUTPUT EXTERNAL ENVIRONMENT RESULT
(Impacts/
SUPERSYSTEM (Cause) Effects)

ECOSYSTEM


ASPIRATION MAP: Types of Business Models/Startups
A Where currently are we? Where must we go?
Insanely Great Experience
Ideal Final Result (IFR)
Infinite Shared Greatness Market Segment (Customer Job/Crisis/Goal): ………………….……..……………….…………
………………………………………………………………………………………..…………….………….………….

10 Blue Ocean Sweet Spot Luxury Spot
(Value Innovation) Model/Startup (Differentiated/
Model/Startup Luxury Spot
Sustaining-
[R]evolutionary)
Model/Startup
6
Disruption Spot/Lean Oasis Volcano
(Disruptive Innovation) (‘Stuck-in-the-middle’) Model/Startup
Disruption Spot
Model/Startup Model/Startup
(+): DELIGHT

(Reward;
Profitability; ROI; 3
Abundance)
Green Ocean No-Man’s-Island Red Ocean
Model/Startup Model/Startup Model/Startup
Strategic
Choice
Key 0
High Level of Customer Experience 3 6 10
Low Level of Customer Experience
(-): PAIN

(Risk; Uncertainty)


E.R.I.C. PRECEDENT MATRIX: Generating Disruptive Ideas & Hypotheses

PRECEDENTS GIVEN SYSTEM (TOOL/OBJECT/PRODUCT/SERVICE/BUSINESS MODEL/ECOSYSTEM):
……………………………………………………………………..
INVENTIVE “Must-Have” Features/Factors/Properties Secondary Features/Factors/Properties
PRINCIPLES/
FUNCTIONS:
E.R.I.C.
E: Eliminate
PAIN (-)

R: Reduce

I: Increase
DELIGHT (+)

C: Create

IDEAL FINAL RESULT
(IFR): Evolved System


Apple’s E.R.I.C. Precedent Matrix for a Disruptive Smartphone
CUSTOMER/CLIENT: Luxury-spot User of Communication/Computing Devices Date: 2007
PAIN/PROBLEM/TRADE-OFF/GOAL/NEED/JOB: Communicate and process information both offline and on Internet

PRECEDENTS GIVEN SYSTEM (TOOL/OBJECT/PRODUCT/SERVICE/BUSINESS MODEL/ECOSYSTEM):
Traditional Smartphone
INVENTIVE “Must-Have” Features/Factors/Properties Secondary Features/Factors/Properties
PRINCIPLES/
Phone/ Screen Physical Calendar Battery Music Web …
FUNCTIONS: Calls Buttons Charger Player Browser
E.R.I.C. (for input)
E: Eliminate 
PAIN (-)

R: Reduce Thickness

I: Increase    
DELIGHT (+)

C: Create    Touch-
screen;
Apps
IDEAL FINAL RESULT
(IFR): Evolved System


A Game Plan,
Business,
Business Model, or ITENNWH

Customer Ecosystem
Is
A Living Organism

LIFECYCLE OF A BUSINESS MODEL (DISRUPTIVE EVOLUTION)
4 Stages or Acts in the Evolution of a Customer Ecosystem or Business Model (Living Organism)
Declining (Dying)
ENVIRONMENT BUSINESS MODEL
(Shared Dream/Vision/Value/(Result: -/+)
Fault line DREAMS/
IDEALS/
GREATNESS
Mission/
Vision
Tipping Point; Chasm

Customer Validation “Cleft” Matured (“Red Ocean”)
(Environmental Fitness) BUSINESS MODEL
Growing (Scalable)
BUSINESS MODEL

Infant (Experimental/Startup)
BUSINESS MODEL

Customer Idea (“Egg”; DNA;
Genetic Code)

DISRUPTIVE EVOLUTION OF MOST VALUABLE CUSTOMERS (MVC)
Customer Segments for 4 Stages in the Evolution of a Customer Ecosystem or Business Model

ENVIRONMENT Retirees (Dissatisfiers:
Overserved/Underserved)
(Shared Dream/Vision/Value/(Result: -/+)
Fault line DREAMS/
IDEALS/
GREATNESS
Mission/
Vision
Tipping Point; Chasm

Customer Validation “Cleft” Upgraders
(Environmental Fitness) (Delighted by Customized Improvements, Brand,
Extensions and Total Solutions)
Regular Users
(Delighted by Better Quality, Performance, and Cost as well as
Accessibility and Simplicity)

Visionaries
(Delighted by Novel Functionality and “Cool” Uses)

Leads/Prospects (Non-customers)
- Low/High-end Dissatisfiers from Competitors
- Early Evangelists/Adopters


ONE-PAGE MBA FOR DISRUPTIVE LEAN STARTUPS: FRACTAL S-WAVE
How World-class Innovators Dream Up and Execute Magical Ideas That Positively Change the World
Customer Planning Questions: Where currently are we/they? Where must we/they go? How should we/they get there? What are constraints?

Customer Segment/Persona:
∞ Journey, Invisible Hand, or Fractal S-Wave of Innovation for Ecosystem …………………………………………...……………
(Supersystem/Economy/Value Network/Supply Chain/Market/ Customer Goal/Job To Be Done/Tool:
EXPERIENCE:
Industry Trends, Expectations, or Demand) …………….……………………………………….….
Shared Maturity
Happiness

(Experience =

Happiness =
3rd Wavelet of Innovation: CUSTOMER ECOSYSTEM Innovation
Value = +/- Growth (Ecosystem/Industry/Platform: Shared Value-focus)
= Examples: Apple; Wal-Mart; Microsoft; Cisco; eBay;
Delight/Pain Amazon; Google; Facebook; GE; P & G; IBM (Services)
~
Revenue/Cost Birth 2nd Wavelet of Innovation: BUSINESS MODEL Innovation
= (Business Model/Marketing Engine: Scalable Revenue & Profit-focus)
Differentn/Cost Examples: Dell; Netflix; Cirque du Soleil; IKEA; Nintendo (Wii);
= Southwest Airlines; ZipCar; Ford/GM/Chrysler/Toyota; Samsung
1/Trade-off)
1st Wavelet of Innovation: VALUE CHAIN (PRODUCT/SERVICE/ENTERPRISE) Innovation
(Value Chain/Product: Functionality, Quality, Simplicity, Differentiation, and/or Cost-focus)
Examples: IBM (Computers); Xerox; Motorola; RIM (Smartphone); Borders; Segway
∞
TIME

(Arrow of Time: Past/Present/Future)


APPLE’S FRACTAL S-WAVE FOR DISRUPTIVE EVOLUTION
How World-class Innovators Dream Up and Execute Magical Ideas That Positively Change the World
Customer Planning Questions: Where currently are we/they? Where must we/they go? How should we/they get there? What are constraints?

Customer Segment/Persona:
∞ Journey, Invisible Hand, or Fractal S-Wave of Innovation for Ecosystem …………………………………………...……………
(Supersystem/Economy/Value Network/Supply Chain/Market/ Customer Goal/Job To Be Done/Tool:
EXPERIENCE:
Industry Trends, Expectations, or Demand) …………….……………………………………….….
Shared Maturity
Happiness

(Experience =

Happiness =
3rd Wavelet of Innovation: CUSTOMER ECOSYSTEM Innovation
Value = +/- Growth (Ecosystem/Industry/Platform: Shared Value-focus)
= Examples: Digital Lifestyle - iPod; iPod Touch; iPhone; iPad
Delight/Pain
~
Revenue/Cost Birth 2nd Wavelet of Innovation: BUSINESS MODEL Innovation
= (Business Model/Marketing Engine: Scalable Revenue & Profit-focus)
Differentn/Cost Examples: Internet Software – iTunes; eStore; App Store
=
1/Trade-off)
1st Wavelet of Innovation: VALUE CHAIN (PRODUCT/SERVICE/ENTERPRISE) Innovation
(Value Chain/Product: Functionality, Quality, Simplicity, Differentiation, and/or Cost-focus)
Examples: Personal Computer; Printer – Apple I; Apple II; MacIntosh; iMac; Apple TV
∞
TIME

(Arrow of Time: Past/Present/Future)


Join us
At
VDD University
For
Lean Startup Project Management

http://businessmodels.ning.com

Zoomable Project Canvas for Business Model Improvement and Disruption - vdd university

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