The Business Model Fishbone is essentially a linear cause-and-effect diagram for visualizing, improving, and innovating on business models. This presentation illustrates the business model of Apple's classic iPod. This multi-purpose fishbone diagram is particularly useful for root-cause analysis and Subversion Analysis (Failure Mode Effect Analysis) of business models.

1. UNIVERSAL SYSTEM FISHBONE
Cause-and-Effect Platform for System Visualization, Improvement, and Innovation
CAUSE (System) EFFECT (Result/Impact)
Environ-
Ment:
Global
Copyright 2012. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing

2. BUSINESS MODEL FISHBONE
 Past  Present  Future
Supply Infrastructure (Push System) Effect (Result/Impact)
Key Partners Key Resources Key Activities Value Cost Revenue
(KP) (KR) (KA) Proposition Structure Streams
(VP) (C$) (R$)
Mission/Vision
Environ-
Ment:
Global
Total Total
Channels Customer Rel. Customer Seg. Cost Rev.
(CH) (CR) (CS)
Demand Infrastructure (Pull System)
Copyright 2012. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing

3. BUSINESS MODEL FISHBONE FOR APPLE’S CLASSIC IPOD
 Past  Present  Future (2001)
Supply Infrastructure (Push System) Effect (Result/Impact)
Key Partners Key Resources Key Activities Value Cost Revenue
(KP) (KR) (KA) Proposition Structure Streams
(VP) (C$) (R$)
OEMs IP; R & D Supply Chain
Management “A Thousand OEMs; Direct Sale of
Record Labels Staff Software Design
Culture Songs in Your Manufac- Hardware
Pocket” turing; (iPod)
Staff;
iTunes Brand Hardware Design
Mission/Vision
“Seamless IP;
Music IT Infra;
Environ- Experience” Marketing &
Ment: Sales
Global
Apple Store High Quality Luxury Spot (High end)
Cust. Service Customers
Big Box Retailers Lovemark Big Box Retailers
Apple.com Switching Cost
Low High Rev
Channels Customer Rel. Customer Seg. Cost & Diffn.
(CH) (CR) (CS)
Demand Infrastructure (Pull System)
Copyright 2012. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing