Developed by Robert Kaplan and David Norton in the 1990s, the Balanced Scorecard (BSC) is the most widely used tool for managing the performance of a business. The BSC is used by the majority of companies in the Fortune 1000 as well as by many small and medium-scale businesses. The BSC focuses on a managing a chain or “stream” of performance metrics rather than the output or traditional singular financial metric of profit.
In the presentation below - http://goo.gl/lSIDX9 - I take a critical look at the traditional Balanced Scorecard as well as introduce a new tool in the evolution of the framework for the Balanced Scorecard. Tools such as Kaplan and Norton’s Strategy Map have been developed to complement the Balanced Scorecard. However, in this age of Business Model Planning, Strategy, and Performance Management, the traditional Balanced Scorecard or Strategy Map is not enough.
What do you think?
Rod.
http://goo.gl/lSIDX9
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Why the Balanced Scorecard is Good but Not Great: The BUSINESS MODEL STRATEGY MAP
1. Business
Model
Strategy
Map
for
Apple’s
iPod
MISSION/VISION/PURPOSE:
“Put
a
Dent
in
the
Universe”/Create
Insanely
Great
Customer
Experience/“Think
Different”
Key
Partners
(KP)
q Record
companies
q Original
Equipment
Manufacturers
Key
Resources
(KR)
q
q
q
q
Staff/Employees
Brand/Culture
IP
Infrastructure:
IT
Key
AcBviBes
(KA)
q Luxury
Spot
Strategy
q Hardware/SoTware
Design
q MarkeUng
&
Sales
Value
ProposiBon
(VP)
q “A
Thousand
Songs
in
Your
Pocket”
q Seamless
Music
XP
q iPod
Hardware
Channels
(CH)
&
Customer
RelaBonships
(CR)
PAIN:
Cost
Structure
(C$)
q Staff/Employees
q Manufacturing/Infra’
q MarkeUng
&
Sales
DELIGHT:
Revenue
Streams
(R$)
q Apple.com;
Big
Box
Retailer
q iTunes
Store;
Retail
stores
q iPod
Hardware
q iTunes
q Commissions
Customer
Segments
(CS)
VALUE:
PROFIT
q
Online/Face-‐to-‐Face;
Lock-‐in
q Luxury
SpoXer:
Listen
to
music
everywhere
q Customer
Habit
Engine
q High
Profit
Margin
q Extraordinary
Profit
q Performance
Metrics
Topics
with
AbbreviaUons
are
adopted
from
the
Business
Model
Canvas
(hNp://www.businessmodelgeneraBon.com)
which
is
licensed
under
the
CreaBve
Commons
ANribute-‐Share
Alike
3.0
Un-‐ported
License
2. Business
Model
(BM)
Strategy
Map
Rapidly
Visualize,
Prototype,
and
Test
the
3
Engines
of
a
Business
Model
0 MISSION/VISION/PURPOSE:
………………………………………………………………………………………………………………………………………
3
2
1
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hNp://businessmodels.ning.com
&
hNp://twiNer.com/RodKuhnKing
3. Business
Model
(BM)
Strategy
Map
Rapidly
Visualize,
Prototype,
and
Test
the
3
Engines
of
a
Business
Model
0
MISSION/VISION/PURPOSE:
Why
does
the
organizaMon
exist?
3
2
1
How
does
the
organizaUon
create,
improve,
or
innovate
on
a
product/strategy/business
model?
How
does
the
organizaUon
engage,
acquire,
and
retain
customers?
How
does
the
organizaUon
make
money
(profit)
and/or
share
value
(happiness)?
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hNp://businessmodels.ning.com
&
hNp://twiNer.com/RodKuhnKing
4. Business
Model
(BM)
Strategy
Map
Rapidly
Visualize,
Prototype,
and
Test
the
3
Engines
of
a
Business
Model
0
MISSION/VISION/PURPOSE:
Why
does
the
organizaMon
exist?
3
2
1
How
does
the
organizaUon
create,
improve,
or
innovate
on
a
product/strategy/business
model?
How
does
the
organizaUon
engage,
acquire,
and
retain
customers?
How
does
the
organizaUon
make
money
(profit)
and/or
share
value
(happiness)?
Enterprise
Hypotheses
Growth
Hypotheses
Value
Hypotheses
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hNp://businessmodels.ning.com
&
hNp://twiNer.com/RodKuhnKing
6. Why
the
BALANCED
SCORECARD
is
Good
But
Not
Great
STRUCTURE
The
Balanced
Scorecard
(BSC)
is
frequently
presented
as
a
chain
or
sequence
of
4
boxes
–
“perspecUves”
–
of
a
business
(system).
The
4
boxes
(perspecUves)
of
a
BSC
relate
to
only
4
blocks
of
a
business
model.
The
4
perspecUves
of
a
BSC
deal
with
performance
management
of
the
3
models
or
engines
of
a
business
model:
q Provider
(Supply)
Model
or
Enter-‐
prise
Engine
for
creaMng
value
q Customer
(Demand)
Model
or
Growth
Engine
for
delivering
value
q Performance
(Profit)
Model
or
Value
Engine
for
sharing
value
However,
channels
are
ignored.
THE
BALANCED
SCORECARD
LINKAGES
(FUNCTIONAL
ANALYSIS)
The
Balanced
Scorecard
(BSC)
does
not
focus
on
showing
micro-‐cause-‐and-‐
effect
relaUonships
in
a
business.
That
funcUon
is
taken
up
by
the
complemen-‐
tary
tool
of
Kaplan
and
Norton’s
Strategy
Map
which
is
also
limited
to
4
corresponding
perspecUves.
h"ps://balancedscorecard.org/Resources/
Abou"heBalancedScorecard/tabid/55/Default.aspx
Consequently,
the
BSC
is
not
a
detailed
network
(funcUonal
analysis)
diagram
that
illustrates
exchange
of
resources
between
boxes
or
perspecUves.
A
Balanced
Scorecard
is
good
as
a
Business
Scorecard
and
Checklist
as
well
as
Performance
Management
Dashboard
for
transla>ng
a
business’s
vision,
goals,
objec>ves,
and
strategy
into
reality
but
…
Also,
techniques
such
as
Premortem
(Failure
Analysis)
and
Hypothesis
GeneraUon
cannot
be
simply
carried
out
using
the
Balanced
Scorecard.
Source:
LOGIC
(PREDICTIVE
CAPABILITY)
A
Balanced
Scorecard
(BSC)
can
be
considered
as
a
“surrogate”
or
parBal
visualizaBon
of
a
business
model:
it
shows
minimal
cause-‐and-‐effect
relaUonships
between
the
4
perspecUves.
The
BSC
does
not
adequately
describe
a
business
model
as
the
BSC
does
not
show
the
macro-‐logic
of
how
an
organizaUon
creates,
delivers,
and
captures
or
shares
value
(profit).
Consequently,
the
BSC
is
of
limited
use
for
Business
Model
Performance
Management
and
PredicUon
especially
at
the
macro-‐
level.
Although
in
theory
the
BSC
can
be
applied
to
non-‐profit
organizaUon,
its
focus
is
on
achieving
financial
objecUves.
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hNp://businessmodels.ning.com
&
hNp://twiNer.com/RodKuhnKing
7. “Good”
vs
“Great”
BALANCED
SCORECARD
REQUIREMENTS
(TASKS/FUNCTIONS)
FOR
BUSINESS
MODEL
PLANNING,
STRATEGY,
PERFORMANCE
MANAGEMENT,
AND
GAMIFICATION
“Good”
Balanced
Scorecard
1)
Can
be
carried
in
pocket/wallet:
ultra-‐portability;
modularity
“Great”
Balanced
Scorecard
ü
2)
Visualize
archetypal
parts
or
elements
of
a
business
model
(system):
Business
Model
Outline
(Form/Checklist/TreeMap)
ü
ü
3)
Organize
and
manage
ideas
regarding
the
parts
or
elements
of
a
business
model
(system):
Business
Model
Scorecard
ü
ü
4)
Illustrate
the
3
macro-‐modules
or
engines
of
a
business
model:
Provider
(Supply)
Model;
Customer
(Demand)
Model;
Value
(Performance/Profit)
Model:
MulBlevel
(Aggregate)
Analysis
ü
5)
Comprehensively
show
cause-‐and-‐effect
relaUonships
that
illustrate
how
a
business
model
works
to
deliver
value:
Business
Model
Strategy
Map;
FuncBonal
Analysis
Diagram
ü
6)
Illustrate
Problem-‐SoluUon
Fit
&
Product-‐Market
Fit:
Lean
Startup
method;
Engine
of
Growth
ü
7)
Facilitate
generaUon
and
management
of
business
model
hypotheses
as
well
as
strategy:
Business
Model
Strategy
ü
ü
8)
Facilitate
Premortem
(Failure
Analysis):
Root-‐cause
Analysis
ü
9)
Facilitate
problem
solving,
innovaUon,
and
performance
mngt
as
well
as
Outcome-‐driven
Planning,
including
Discovery-‐driven
Planning:
Universal
Project
Management
(UPM)
Dashboard
ü
10)
Can
be
deployed
as
a
boardgame
with
“naUve”
game
pieces
(cards)
&
board:
Business
Model
Jigsaw
(BMJ)
Game
ü
(3/10)
(10/10)
9. A
Balanced
Scorecard
(BSC)
Uses
4
PerspecBves
To
Organize
and
Manage
InformaUon
on
The
Performance
of
a
Business
Model:
q Financial
PerspecUve
q Customer
PerspecUve
q Processes
PerspecUve
q Learning
&
Growth
PerspecUve
10. TradiBonal
Balanced
Scorecard
(BSC)
Rapidly
Visualize,
Prototype,
and
Test
the
3
Engines
of
a
Business
Model
Source:
h"ps://balancedscorecard.org/Resources/Abou"heBalancedScorecard/tabid/55/Default.aspx
11. Balanced
Scorecard
(BSC)
Strategy
Map
Rapidly
Visualize,
Prototype,
and
Test
the
3
Engines
of
a
Business
Model
MISSION/VISION/PURPOSE:
………………………………………………………………………………………………………………………………………
Learning
&
Growth
Processes
Customer
Finance
Topics
in
brown
color
are
from
descripUons
of
“boxes”
or
perspecUves
of
the
Balanced
Scorecard
12. Balanced
Scorecard
(BSC)
Strategy
Map
Rapidly
Visualize,
Prototype,
and
Test
the
3
Engines
of
a
Business
Model
MISSION/VISION/PURPOSE:
………………………………………………………………………………………………………………………………………
Learning
&
Growth
Processes
Customer
Finance
Topics
in
brown
color
are
from
descripUons
of
“boxes”
or
perspecUves
of
the
Balanced
Scorecard
13. Balanced
Scorecard
(BSC)
Strategy
Map
Rapidly
Visualize,
Prototype,
and
Test
the
3
Engines
of
a
Business
Model
MISSION/VISION/PURPOSE:
………………………………………………………………………………………………………………………………………
Learning
&
Growth
impact(s)
Processes
deliver(s)
Customer
Finance
Topics
in
brown
color
are
from
descripUons
of
“boxes”
or
perspecUves
of
the
Balanced
Scorecard
14. A
Balanced
Scorecard
(BSC)
Is
A
Minimum
Viable
Product
(MVP)
Of
A
Business
Model
Strategy
Map
17. For
a
Comprehensive
Project,
Four
Sets
of
Business
Model
(BM)
Strategy
Maps
Should
be
Completed
in
the
Categories
of
M.O.S.T.:
q
M:
Mission
(Vision/Goal/Leap
of
Faith)
q
O:
Outcome
q
S:
Strategy
(Hypotheses)
q
T:
Targets
(Hypotheses)
Note
For
startups
or
startup
projects,
it
is
advisable
to
prepare
Analog
&
AnBlog-‐Business
Model
Strategy
Maps
before
compleUng
M.O.S.T.-‐Business
Model
Strategy
Maps
18. A
Business
Model
(BM)
Strategy
Map
Is
Designed
to
Facilitate
3
“Jobs-‐To-‐Get-‐Done”:
1
Translate
into
reality
an
OrganizaBon’s
Mission,
Vision,
Purpose,
Goal
and/or
Strategy
Document
and
improve
the
performance
of
any
organizaUon
2
isualize
3
Vsystem)
or
document
the
3
engines
of
ta
business
model
(
as
well
as
prototype
and
test
he
hypotheses
of
its
9
parts,
“strategy
blocks”
or
perspecBves
19. A
Business
Model
(BM)
Strategy
Map
Uses
3
“Engine
Maps”
For
Organizing
and
Managing
InformaUon
About
The
Performance
of
a
Business
Model:
q
Value
Engine
(VE)
Map
q
Growth
Engine
(GE)
Map
q
Enterprise
Engine
(EE)
Map
20. 3
QuesBons
for
The
Business
Model
Strategy
Map
VE
GE
EE
Value
Engine
Map:
How
do
we
capture
or
share
value
(wealth;
profit;
learning;
happiness)?
Growth
Engine
Map:
How
do
we
deliver
value?
Enterprise
Engine
Map:
How
do
we
create
value?
21. Business
Model
(BM)
Strategy
Map
Rapidly
Visualize,
Prototype,
and
Test
the
3
Engines
of
a
Business
Model
0 MISSION/VISION/PURPOSE:
………………………………………………………………………………………………………………………………………
3
2
1
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hNp://businessmodels.ning.com
&
hNp://twiNer.com/RodKuhnKing
22. Visualize,
Prototype,
and
Test
A
Business
Model
In
Terms
of
9
Strategy
Blocks
Upstream
Midstream
Downstream
Key
Partners
(KP)
Value
ProposiBon
(VP)
PAIN:
Cost
Structure
(C$)
Key
Resources
(KR)
Channels
(CH)
&
Customer
RelaBonships
(CR)
DELIGHT:
Revenue
Streams
(R$)
Key
AcBviBes
(KA)
Customer
Segments
(CS)
VALUE:
PROFIT
Topics
with
AbbreviaUons
are
adopted
from
the
Business
Model
Canvas
(hNp://www.businessmodelgeneraBon.com)
which
is
licensed
under
the
CreaBve
Commons
ANribute-‐Share
Alike
3.0
Un-‐ported
License
24. Business
Model
Strategy
Map
Rapidly
Visualize,
Prototype,
and
Test
the
3
Engines
of
a
Business
Model
MISSION/VISION/PURPOSE:
………………………………………………………………………………………………………………………………………
Key
Partners
(KP)
Value
ProposiBon
(VP)
PAIN:
Cost
Structure
(C$)
Key
Resources
(KR)
Channels
(CH)
&
Customer
RelaBonships
(CR)
DELIGHT:
Revenue
Streams
(R$)
Key
AcBviBes
(KA)
Customer
Segments
(CS)
VALUE:
PROFIT
Topics
with
AbbreviaUons
are
adopted
from
the
Business
Model
Canvas
(hNp://www.businessmodelgeneraBon.com)
which
is
licensed
under
the
CreaBve
Commons
ANribute-‐Share
Alike
3.0
Un-‐ported
License
25. Business
Model
Strategy
Map
Rapidly
Visualize,
Prototype,
and
Test
the
3
Engines
of
a
Business
Model
MISSION/VISION/PURPOSE:
………………………………………………………………………………………………………………………………………
Key
Partners
(KP)
Value
ProposiBon
(VP)
PAIN:
Cost
Structure
(C$)
Key
Resources
(KR)
Channels
(CH)
&
Customer
RelaBonships
(CR)
DELIGHT:
Revenue
Streams
(R$)
Key
AcBviBes
(KA)
Customer
Segments
(CS)
VALUE:
PROFIT
Topics
with
AbbreviaUons
are
adopted
from
the
Business
Model
Canvas
(hNp://www.businessmodelgeneraBon.com)
which
is
licensed
under
the
CreaBve
Commons
ANribute-‐Share
Alike
3.0
Un-‐ported
License
26. Business
Model
Strategy
Map
Rapidly
Visualize,
Prototype,
and
Test
the
3
Engines
of
a
Business
Model
MISSION/VISION/PURPOSE:
………………………………………………………………………………………………………………………………………
affect(s)
Key
Resources
(KR)
impact(s)
impact(s)
Channels
(CH)
&
Customer
RelaBonships
(CR)
deliver(s)
Key
AcBviBes
(KA)
affect(s)
impact(s)
affect(s)
Customer
Segments
(CS)
PAIN:
Cost
Structure
(C$)
impacts
affects
DELIGHT:
Revenue
Streams
(R$)
drive(s)
impact(s)
Value
ProposiBon
(VP)
(Problem-‐SoluUon
Fit;
Product-‐Market
Fit)
Key
Partners
(KP)
VALUE:
PROFIT
Topics
with
AbbreviaUons
are
adopted
from
the
Business
Model
Canvas
(hNp://www.businessmodelgeneraBon.com)
which
is
licensed
under
the
CreaBve
Commons
ANribute-‐Share
Alike
3.0
Un-‐ported
License
27. Business
Model
Strategy
Map
Rapidly
Visualize,
Prototype,
and
Test
the
3
Engines
of
a
Business
Model
MISSION/VISION/PURPOSE:
………………………………………………………………………………………………………………………………………
affect(s)
Key
Resources
(KR)
Learning
&
Growth
impact(s)
impact(s)
Channels
(CH)
&
Customer
RelaBonships
(CR)
deliver(s)
Key
AcBviBes
(KA)
Processes
affect(s)
impact(s)
affect(s)
Customer
Segments
(CS)
Customer
PAIN:
Cost
Structure
(C$)
impacts
affects
DELIGHT:
Revenue
Streams
(R$)
drive(s)
impact(s)
Value
ProposiBon
(VP)
(Problem-‐SoluUon
Fit;
Product-‐Market
Fit)
Key
Partners
(KP)
VALUE:
PROFIT
Finance
Topics
with
AbbreviaUons
are
adopted
from
the
Business
Model
Canvas
(hNp://www.businessmodelgeneraBon.com)
which
is
licensed
under
the
CreaBve
Commons
ANribute-‐Share
Alike
3.0
Un-‐ported
License
28. Business
Model
Strategy
Map
Rapidly
Visualize,
Prototype,
and
Test
the
3
Engines
of
a
Business
Model
MISSION/VISION/PURPOSE:
………………………………………………………………………………………………………………………………………
affect(s)
Key
Resources
(KR)
Strategy:
Learning
&
Growth
impact(s)
impact(s)
Channels
(CH)
&
Customer
RelaBonships
(CR)
Strategy
deliver(s)
Key
AcBviBes
(KA)
Strategy:
Processes
affect(s)
impact(s)
affect(s)
Customer
Segments
(CS)
Strategy:
Customer
PAIN:
Cost
Structure
(C$)
Strategy
impacts
affects
DELIGHT:
Revenue
Streams
(R$)
Strategy
drive(s)
impact(s)
Value
ProposiBon
(VP)
Strategy
(Problem-‐SoluUon
Fit;
Product-‐Market
Fit)
Key
Partners
(KP)
Strategy
VALUE:
PROFIT
Strategy:
Finance
Topics
with
AbbreviaUons
are
adopted
from
the
Business
Model
Canvas
(hNp://www.businessmodelgeneraBon.com)
which
is
licensed
under
the
CreaBve
Commons
ANribute-‐Share
Alike
3.0
Un-‐ported
License
29. Business
Model
Strategy
Map
Rapidly
Visualize,
Prototype,
and
Test
the
3
Engines
of
a
Business
Model
MISSION/VISION/PURPOSE:
………………………………………………………………………………………………………………………………………
affect(s)
Key
Resources
(KR)
Targets:
Learning
&
Growth
impact(s)
impact(s)
Channels
(CH)
&
Customer
RelaBonships
(CR)
Targets
deliver(s)
Key
AcBviBes
(KA)
Targets:
Processes
affect(s)
impact(s)
affect(s)
Customer
Segments
(CS)
Targets:
Customer
PAIN:
Cost
Structure
(C$)
Targets
impacts
affects
DELIGHT:
Revenue
Streams
(R$)
Targets
drive(s)
impact(s)
Value
ProposiBon
(VP)
Targets
(Problem-‐SoluUon
Fit;
Product-‐Market
Fit)
Key
Partners
(KP)
Targets
VALUE:
PROFIT
Targets:
Finance
Topics
with
AbbreviaUons
are
adopted
from
the
Business
Model
Canvas
(hNp://www.businessmodelgeneraBon.com)
which
is
licensed
under
the
CreaBve
Commons
ANribute-‐Share
Alike
3.0
Un-‐ported
License
30. Business
Model
Strategy
Map
Rapidly
Visualize,
Prototype,
and
Test
the
3
Engines
of
a
Business
Model
MISSION/VISION/PURPOSE:
………………………………………………………………………………………………………………………………………
affect(s)
Key
Resources
(KR)
Targets
impact(s)
deliver(s)
Key
AcBviBes
(KA)
Targets
impact(s)
affect(s)
Channels
(CH)
&
Customer
RelaBonships
(CR)
Targets
impact(s)
affect(s)
Customer
Segments
(CS)
Targets
PAIN:
Cost
Structure
(C$)
Targets
impacts
affects
DELIGHT:
Revenue
Streams
(R$)
Targets
drive(s)
impact(s)
Value
ProposiBon
(VP)
Targets
(Problem-‐SoluUon
Fit;
Product-‐Market
Fit)
Key
Partners
(KP)
Targets
VALUE:
PROFIT
Targets
Topics
with
AbbreviaUons
are
adopted
from
the
Business
Model
Canvas
(hNp://www.businessmodelgeneraBon.com)
which
is
licensed
under
the
CreaBve
Commons
ANribute-‐Share
Alike
3.0
Un-‐ported
License
31. Business
Model
Strategy
Map
Rapidly
Visualize,
Prototype,
and
Test
the
3
Engines
of
a
Business
Model
MISSION/VISION/PURPOSE:
………………………………………………………………………………………………………………………………………
affect(s)
Key
Resources
(KR)
Hypotheses
impact(s)
impact(s)
Channels
(CH)
&
Customer
RelaBonships
(CR)
Hypotheses
deliver(s)
Key
AcBviBes
(KA)
Hypotheses
affect(s)
impact(s)
affect(s)
Customer
Segments
(CS)
Hypotheses
PAIN:
Cost
Structure
(C$)
Hypotheses
impacts
affects
DELIGHT:
Revenue
Streams
(R$)
Hypotheses
drive(s)
impact(s)
Value
ProposiBon
(VP)
Hypotheses
(Problem-‐SoluUon
Fit;
Product-‐Market
Fit)
Key
Partners
(KP)
Hypotheses
VALUE:
PROFIT
Hypotheses
Topics
with
AbbreviaUons
are
adopted
from
the
Business
Model
Canvas
(hNp://www.businessmodelgeneraBon.com)
which
is
licensed
under
the
CreaBve
Commons
ANribute-‐Share
Alike
3.0
Un-‐ported
License
32. Business
Model
Strategy
Map
Rapidly
Visualize,
Prototype,
and
Test
the
3
Engines
of
a
Business
Model
MISSION/VISION/PURPOSE:
………………………………………………………………………………………………………………………………………
affect(s)
Key
Resources
(KR)
Obstacles
impact(s)
impact(s)
Channels
(CH)
&
Customer
RelaBonships
(CR)
Obstacles
deliver(s)
Key
AcBviBes
(KA)
Obstacles
affect(s)
impact(s)
affect(s)
Customer
Segments
(CS)
Obstacles
PAIN:
Cost
Structure
(C$)
Obstacles
impacts
affects
DELIGHT:
Revenue
Streams
(R$)
Obstacles
drive(s)
impact(s)
Value
ProposiBon
(VP)
Obstacles
(Problem-‐SoluUon
Fit;
Product-‐Market
Fit)
Key
Partners
(KP)
Obstacles
VALUE:
PROFIT
Obstacles
Topics
with
AbbreviaUons
are
adopted
from
the
Business
Model
Canvas
(hNp://www.businessmodelgeneraBon.com)
which
is
licensed
under
the
CreaBve
Commons
ANribute-‐Share
Alike
3.0
Un-‐ported
License
33. Business
Model
Strategy
Map
Rapidly
Visualize,
Prototype,
and
Test
the
3
Engines
of
a
Business
Model
MISSION/VISION/PURPOSE:
………………………………………………………………………………………………………………………………………
affect(s)
Key
Resources
(KR)
IniBaBves
impact(s)
impact(s)
Channels
(CH)
&
Customer
RelaBonships
(CR)
IniBaBves
deliver(s)
Key
AcBviBes
(KA)
IniBaBves
affect(s)
impact(s)
affect(s)
Customer
Segments
(CS)
IniBaBves
PAIN:
Cost
Structure
(C$)
IniBaBves
impacts
affects
DELIGHT:
Revenue
Streams
(R$)
IniBaBves
drive(s)
impact(s)
Value
ProposiBon
(VP)
IniBaBves
(Problem-‐SoluUon
Fit;
Product-‐Market
Fit)
Key
Partners
(KP)
IniBaBves
VALUE:
PROFIT
IniBaBves
Topics
with
AbbreviaUons
are
adopted
from
the
Business
Model
Canvas
(hNp://www.businessmodelgeneraBon.com)
which
is
licensed
under
the
CreaBve
Commons
ANribute-‐Share
Alike
3.0
Un-‐ported
License
34. Business
Model
Strategy
Map
Rapidly
Visualize,
Prototype,
and
Test
the
3
Engines
of
a
Business
Model
MISSION/VISION/PURPOSE:
………………………………………………………………………………………………………………………………………
affect(s)
Key
Resources
(KR)
IniBaBves:
Employees/Team
Machinery/Infrastructure
impact(s)
impact(s)
Channels
(CH)
&
Customer
RelaBonships
(CR)
IniBaBves:
Retailers/Distributors
deliver(s)
Key
AcBviBes
(KA)
IniBaBves:
Processes
affect(s)
impact(s)
affect(s)
Customer
Segments
(CS)
IniBaBves:
Customer
Archetype
PAIN:
Cost
Structure
(C$)
IniBaBves
impacts
affects
DELIGHT:
Revenue
Streams
(R$)
IniBaBves
drive(s)
impact(s)
Value
ProposiBon
(VP)
IniBaBves:
Ouptut
-‐
Product/Service
(Problem-‐SoluUon
Fit;
Product-‐Market
Fit)
Key
Partners
(KP)
IniBaBves:
Suppliers/Inputs
VALUE:
PROFIT
IniBaBves:
Shared
Value
(Strategy)
Topics
with
AbbreviaUons
are
adopted
from
the
Business
Model
Canvas
(hNp://www.businessmodelgeneraBon.com)
which
is
licensed
under
the
CreaBve
Commons
ANribute-‐Share
Alike
3.0
Un-‐ported
License
36. 4
Business
Model
Engine
(BME)
QuesBons
How
Does
the
OrganizaMon
Work?
q MISSION
(M)
QuesUon:
Why
does
the
organizaUon
exist?
q VALUE
ENGINE
(VE)
QuesUon:
How
does
the
organizaUon
make
money
(profit)
and/or
share
value
(happiness)?
q GROWTH
ENGINE(GE)
QuesUon:
How
does
the
organizaUon
engage,
acquire,
and
retain
customers?
q ENTERPRISE
ENGINE
(EE)
QuesUon:
How
does
the
organizaUon
create,
improve,
or
innovate
on
a
product/strategy/business
model?
37. 4
Business
Model
Engine
(BME)
QuesBons
How
Does
the
OrganizaMon
Work?
Business
Model
Strategy
Map
QuesBon
MISSION
(M)
Why
does
the
organizaUon
exist?
VALUE
ENGINE
(VE)
How
does
the
organizaUon
make
money
(profit)
and/or
share
value
(happiness)?
GROWTH
ENGINE
(GE)
How
does
the
organizaUon
engage,
acquire,
and
retain
customers?
ENTERPRISE
ENGINE
(EE)
How
does
the
organizaUon
create,
improve,
or
innovate
on
a
product/strategy/business
model?
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hNp://businessmodels.ning.com
&
hNp://twiNer.com/RodKuhnKing
38. Business
Model
(BM)
Strategy
Map
Rapidly
Visualize,
Prototype,
and
Test
the
3
Engines
of
a
Business
Model
0
MISSION/VISION/PURPOSE:
Why
does
the
organizaMon
exist?
3
2
1
How
does
the
organizaUon
create,
improve,
or
innovate
on
a
product/strategy/business
model?
How
does
the
organizaUon
engage,
acquire,
and
retain
customers?
How
does
the
organizaUon
make
money
(profit)
and/or
share
value
(happiness)?
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hNp://businessmodels.ning.com
&
hNp://twiNer.com/RodKuhnKing
39. Business
Model
(BM)
Strategy
Map
Rapidly
Visualize,
Prototype,
and
Test
the
3
Engines
of
a
Business
Model
0
MISSION/VISION/PURPOSE:
Why
does
the
organizaMon
exist?
3
2
1
How
does
the
organizaUon
create,
improve,
or
innovate
on
a
product/strategy/business
model?
How
does
the
organizaUon
engage,
acquire,
and
retain
customers?
How
does
the
organizaUon
make
money
(profit)
and/or
share
value
(happiness)?
Enterprise
Hypotheses
Growth
Hypotheses
Value
Hypotheses
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hNp://businessmodels.ning.com
&
hNp://twiNer.com/RodKuhnKing
40. Business
Model
Strategy
Map
for
Apple’s
iPod
Rapidly
Visualize,
Prototype,
and
Test
the
3
Engines
of
a
Business
Model
MISSION/VISION/PURPOSE:
“Put
a
Dent
in
the
Universe”/Create
Insanely
Great
Customer
Experience/“Think
Different”
41. Business
Model
Strategy
Map
for
Apple’s
iPod
Rapidly
Visualize,
Prototype,
and
Test
the
3
Engines
of
a
Business
Model
MISSION/VISION/PURPOSE:
“Put
a
Dent
in
the
Universe”/Create
Insanely
Great
Customer
Experience/“Think
Different”
PAIN:
Cost
Structure
(C$)
q Staff/Employees
q Manufacturing/Infra’
q MarkeUng
&
Sales
DELIGHT:
Revenue
Streams
(R$)
q iPod
Hardware
q iTunes
q Commissions
VALUE:
PROFIT
q High
Profit
Margin
q Extraordinary
Profit
q Performance
Metrics
42. Business
Model
Strategy
Map
for
Apple’s
iPod
Rapidly
Visualize,
Prototype,
and
Test
the
3
Engines
of
a
Business
Model
MISSION/VISION/PURPOSE:
“Put
a
Dent
in
the
Universe”/Create
Insanely
Great
Customer
Experience/“Think
Different”
Value
ProposiBon
(VP)
q “A
Thousand
Songs
in
Your
Pocket”
q Seamless
Music
XP
q iPod
Hardware
Channels
(CH)
&
Customer
RelaBonships
(CR)
PAIN:
Cost
Structure
(C$)
q Staff/Employees
q Manufacturing/Infra’
q MarkeUng
&
Sales
DELIGHT:
Revenue
Streams
(R$)
q Apple.com;
Big
Box
Retailer
q iTunes
Store;
Retail
stores
q iPod
Hardware
q iTunes
q Commissions
Customer
Segments
(CS)
VALUE:
PROFIT
q
Online/Face-‐to-‐Face;
Lock-‐in
q Luxury
SpoXer:
Listen
to
music
everywhere
q Customer
Habit
Engine
q High
Profit
Margin
q Extraordinary
Profit
q Performance
Metrics
43. Business
Model
Strategy
Map
for
Apple’s
iPod
Rapidly
Visualize,
Prototype,
and
Test
the
3
Engines
of
a
Business
Model
MISSION/VISION/PURPOSE:
“Put
a
Dent
in
the
Universe”/Create
Insanely
Great
Customer
Experience/“Think
Different”
Key
Partners
(KP)
q Record
companies
q Original
Equipment
Manufacturers
Key
Resources
(KR)
q
q
q
q
Staff/Employees
Brand/Culture
IP
Infrastructure:
IT
Key
AcBviBes
(KA)
q Luxury
Spot
Strategy
q Hardware/SoTware
Design
q MarkeUng
&
Sales
Value
ProposiBon
(VP)
q “A
Thousand
Songs
in
Your
Pocket”
q Seamless
Music
XP
q iPod
Hardware
Channels
(CH)
&
Customer
RelaBonships
(CR)
PAIN:
Cost
Structure
(C$)
q Staff/Employees
q Manufacturing/Infra’
q MarkeUng
&
Sales
DELIGHT:
Revenue
Streams
(R$)
q Apple.com;
Big
Box
Retailer
q iTunes
Store;
Retail
stores
q iPod
Hardware
q iTunes
q Commissions
Customer
Segments
(CS)
VALUE:
PROFIT
q
Online/Face-‐to-‐Face;
Lock-‐in
q Luxury
SpoXer:
Listen
to
music
everywhere
q Customer
Habit
Engine
q High
Profit
Margin
q Extraordinary
Profit
q Performance
Metrics
44. Business
Model
Strategy
Map
for
Apple’s
iPod
Rapidly
Visualize,
Prototype,
and
Test
the
3
Engines
of
a
Business
Model
MISSION/VISION/PURPOSE:
“Put
a
Dent
in
the
Universe”/Create
Insanely
Great
Customer
Experience/“Think
Different”
Key
Partners
(KP)
q Record
companies
q Original
Equipment
Manufacturers
Key
Resources
(KR)
q
q
q
q
Staff/Employees
Brand/Culture
IP
Infrastructure:
IT
Key
AcBviBes
(KA)
q Luxury
Spot
Strategy
q Hardware/SoTware
Design
q MarkeUng
&
Sales
Value
ProposiBon
(VP)
q “A
Thousand
Songs
in
Your
Pocket”
q Seamless
Music
XP
q iPod
Hardware
Channels
(CH)
&
Customer
RelaBonships
(CR)
PAIN:
Cost
Structure
(C$)
q Staff/Employees
q Manufacturing/Infra’
q MarkeUng
&
Sales
DELIGHT:
Revenue
Streams
(R$)
q Apple.com;
Big
Box
Retailer
q iTunes
Store;
Retail
stores
q iPod
Hardware
q iTunes
q Commissions
Customer
Segments
(CS)
VALUE:
PROFIT
q
Online/Face-‐to-‐Face;
Lock-‐in
q Luxury
SpoXer:
Listen
to
music
everywhere
q Customer
Habit
Engine
q High
Profit
Margin
q Extraordinary
Profit
q Performance
Metrics
45. Business
Model
Strategy
Map
for
Apple’s
iPod
Rapidly
Visualize,
Prototype,
and
Test
the
3
Engines
of
a
Business
Model
MISSION/VISION/PURPOSE:
“Put
a
Dent
in
the
Universe”/Create
Insanely
Great
Customer
Experience/“Think
Different”
impact(s)
affect(s)
Key
Resources
(KR)
q
q
q
q
Staff/Employees
Brand/Culture
IP
Infrastructure:
IT
impact(s)
deliver(s)
Key
AcBviBes
(KA)
q Luxury
Spot
Strategy
q Hardware/SoTware
Design
q MarkeUng
&
Sales
q “A
Thousand
Songs
in
Your
Pocket”
q Seamless
Music
XP
q iPod
Hardware
impact(s)
affect(s)
Channels
(CH)
&
Customer
RelaBonships
(CR)
q Apple.com;
Big
Box
Retailer
q iTunes
Store;
Retail
stores
q
Online/Face-‐to-‐Face;
Lock-‐in
impact(s)
affect(s)
Customer
Segments
(CS)
q Luxury
SpoXer:
Listen
to
music
everywhere
q Customer
Habit
Engine
impacts
affects
q Staff/Employees
q Manufacturing/Infra’
q MarkeUng
&
Sales
DELIGHT:
Revenue
Streams
(R$)
q iPod
Hardware
q iTunes
q Commissions
drive(s)
q Record
companies
q Original
Equipment
Manufacturers
PAIN:
Cost
Structure
(C$)
Value
ProposiBon
(VP)
(Problem-‐SoluUon
Fit;
Product-‐Market
Fit)
Key
Partners
(KP)
VALUE:
PROFIT
q High
Profit
Margin
q Extraordinary
Profit
q Performance
Metrics
46. Business
Model
Strategy
Map
for
Apple’s
iPod
Rapidly
Visualize,
Prototype,
and
Test
the
3
Engines
of
a
Business
Model
MISSION/VISION/PURPOSE:
“Put
a
Dent
in
the
Universe”/Create
Insanely
Great
Customer
Experience/“Think
Different”
affect(s)
Key
Resources
(KR)
Strategy:
Learning
&
Growth
impact(s)
impact(s)
Channels
(CH)
&
Customer
RelaBonships
(CR)
Strategy
deliver(s)
Key
AcBviBes
(KA)
Strategy:
Processes
affect(s)
impact(s)
affect(s)
Customer
Segments
(CS)
Strategy:
Customer
PAIN:
Cost
Structure
(C$)
Strategy
impacts
affects
DELIGHT:
Revenue
Streams
(R$)
Strategy
drive(s)
impact(s)
Value
ProposiBon
(VP)
Strategy
(Problem-‐SoluUon
Fit;
Product-‐Market
Fit)
Key
Partners
(KP)
Strategy
VALUE:
PROFIT
Strategy:
Finance
Topics
with
AbbreviaUons
are
adopted
from
the
Business
Model
Canvas
(hNp://www.businessmodelgeneraBon.com)
which
is
licensed
under
the
CreaBve
Commons
ANribute-‐Share
Alike
3.0
Un-‐ported
License
47. Business
Model
Strategy
Map
for
Apple’s
iPod
Rapidly
Visualize,
Prototype,
and
Test
the
3
Engines
of
a
Business
Model
MISSION/VISION/PURPOSE:
“Put
a
Dent
in
the
Universe”/Create
Insanely
Great
Customer
Experience/“Think
Different”
affect(s)
Key
Resources
(KR)
Targets:
Learning
&
Growth
impact(s)
impact(s)
Channels
(CH)
&
Customer
RelaBonships
(CR)
Targets
deliver(s)
Key
AcBviBes
(KA)
Targets:
Processes
affect(s)
impact(s)
affect(s)
Customer
Segments
(CS)
Targets:
Customer
PAIN:
Cost
Structure
(C$)
Targets
impacts
affects
DELIGHT:
Revenue
Streams
(R$)
Targets
drive(s)
impact(s)
Value
ProposiBon
(VP)
Targets
(Problem-‐SoluUon
Fit;
Product-‐Market
Fit)
Key
Partners
(KP)
Targets
VALUE:
PROFIT
Targets:
Finance
Topics
with
AbbreviaUons
are
adopted
from
the
Business
Model
Canvas
(hNp://www.businessmodelgeneraBon.com)
which
is
licensed
under
the
CreaBve
Commons
ANribute-‐Share
Alike
3.0
Un-‐ported
License
48. Business
Model
Strategy
Map
for
Apple’s
iPod
Rapidly
Visualize,
Prototype,
and
Test
the
3
Engines
of
a
Business
Model
MISSION/VISION/PURPOSE:
“Put
a
Dent
in
the
Universe”/Create
Insanely
Great
Customer
Experience/“Think
Different”
affect(s)
Key
Resources
(KR)
Targets
impact(s)
deliver(s)
Key
AcBviBes
(KA)
Targets
impact(s)
affect(s)
Channels
(CH)
&
Customer
RelaBonships
(CR)
Targets
impact(s)
affect(s)
Customer
Segments
(CS)
Targets
PAIN:
Cost
Structure
(C$)
Targets
impacts
affects
DELIGHT:
Revenue
Streams
(R$)
Targets
drive(s)
impact(s)
Value
ProposiBon
(VP)
Targets
(Problem-‐SoluUon
Fit;
Product-‐Market
Fit)
Key
Partners
(KP)
Targets
VALUE:
PROFIT
Targets
Topics
with
AbbreviaUons
are
adopted
from
the
Business
Model
Canvas
(hNp://www.businessmodelgeneraBon.com)
which
is
licensed
under
the
CreaBve
Commons
ANribute-‐Share
Alike
3.0
Un-‐ported
License
49. Business
Model
Strategy
Map
for
Apple’s
iPod
Rapidly
Visualize,
Prototype,
and
Test
the
3
Engines
of
a
Business
Model
MISSION/VISION/PURPOSE:
“Put
a
Dent
in
the
Universe”/Create
Insanely
Great
Customer
Experience/“Think
Different”
affect(s)
Key
Resources
(KR)
Hypotheses
impact(s)
impact(s)
Channels
(CH)
&
Customer
RelaBonships
(CR)
Hypotheses
deliver(s)
Key
AcBviBes
(KA)
Hypotheses
affect(s)
impact(s)
affect(s)
Customer
Segments
(CS)
Hypotheses
PAIN:
Cost
Structure
(C$)
Hypotheses
impacts
affects
DELIGHT:
Revenue
Streams
(R$)
Hypotheses
drive(s)
impact(s)
Value
ProposiBon
(VP)
Hypotheses
(Problem-‐SoluUon
Fit;
Product-‐Market
Fit)
Key
Partners
(KP)
Hypotheses
VALUE:
PROFIT
Hypotheses
Topics
with
AbbreviaUons
are
adopted
from
the
Business
Model
Canvas
(hNp://www.businessmodelgeneraBon.com)
which
is
licensed
under
the
CreaBve
Commons
ANribute-‐Share
Alike
3.0
Un-‐ported
License
50. Business
Model
Strategy
Map
for
Apple’s
iPod
Rapidly
Visualize,
Prototype,
and
Test
the
3
Engines
of
a
Business
Model
MISSION/VISION/PURPOSE:
“Put
a
Dent
in
the
Universe”/Create
Insanely
Great
Customer
Experience/“Think
Different”
affect(s)
Key
Resources
(KR)
IniBaBves
impact(s)
impact(s)
Channels
(CH)
&
Customer
RelaBonships
(CR)
IniBaBves
deliver(s)
Key
AcBviBes
(KA)
IniBaBves
affect(s)
impact(s)
affect(s)
Customer
Segments
(CS)
IniBaBves
PAIN:
Cost
Structure
(C$)
IniBaBves
impacts
affects
DELIGHT:
Revenue
Streams
(R$)
IniBaBves
drive(s)
impact(s)
Value
ProposiBon
(VP)
IniBaBves
(Problem-‐SoluUon
Fit;
Product-‐Market
Fit)
Key
Partners
(KP)
IniBaBves
VALUE:
PROFIT
IniBaBves
Topics
with
AbbreviaUons
are
adopted
from
the
Business
Model
Canvas
(hNp://www.businessmodelgeneraBon.com)
which
is
licensed
under
the
CreaBve
Commons
ANribute-‐Share
Alike
3.0
Un-‐ported
License
51. Business
Model
Strategy
Map
for
Apple’s
iPod
Rapidly
Visualize,
Prototype,
and
Test
the
3
Engines
of
a
Business
Model
MISSION/VISION/PURPOSE:
“Put
a
Dent
in
the
Universe”/Create
Insanely
Great
Customer
Experience/“Think
Different”
affect(s)
Key
Resources
(KR)
IniBaBves:
Employees/Team
Machinery/Infrastructure
impact(s)
impact(s)
Channels
(CH)
&
Customer
RelaBonships
(CR)
IniBaBves:
Retailers/Distributors
deliver(s)
Key
AcBviBes
(KA)
IniBaBves:
Processes
affect(s)
impact(s)
affect(s)
Customer
Segments
(CS)
IniBaBves:
Customer
Archetype
PAIN:
Cost
Structure
(C$)
IniBaBves
impacts
affects
DELIGHT:
Revenue
Streams
(R$)
IniBaBves
drive(s)
impact(s)
Value
ProposiBon
(VP)
IniBaBves:
Ouptut
-‐
Product/Service
(Problem-‐SoluUon
Fit;
Product-‐Market
Fit)
Key
Partners
(KP)
IniBaBves:
Suppliers/Inputs
VALUE:
PROFIT
IniBaBves:
Shared
Value
(Strategy)
Topics
with
AbbreviaUons
are
adopted
from
the
Business
Model
Canvas
(hNp://www.businessmodelgeneraBon.com)
which
is
licensed
under
the
CreaBve
Commons
ANribute-‐Share
Alike
3.0
Un-‐ported
License
52. Business
Model
Environment
Map
for
Apple’s
iPod
MISSION/VISION/PURPOSE:
“Put
a
Dent
in
the
Universe”/Create
Insanely
Great
Customer
Experience/“Think
Different”
ENVIRONMENT
53. How
to
Use
the
Business
Model
Strategy
Map
1. Plot
the
Gameboard
of
the
Business
Model
Strategy
Map
on
a
Poster,
e.g.,
3k
x
5k
2. Place
the
Poster
on
a
Table
3. Lay
Out
–
Especially
Using
Index
Cards,
Blank
Business
Cards,
or
Post-‐Its
–
Mission/Vision/Purpose:
………………………………
the
Business
Model
Strategy
Map
Enterprise
Engine
Growth
Engine
Value
Engine
In
Terms
of
the
3
Engine
Maps:
q Value
Engine
(VE)
Map
q Growth
Engine
(GE)
Map
q Enterprise
Engine
(EE)
Map
As
well
as
9
Strategy
Blocks
55. AlternaBve
Forms
of
Cards
for
Business
Model
Strategy
Map
(Non-‐magneUc/MagneUc/StaUc)
56. “Startups
also
have
a
true
north,
a
desBnaBon
in
mind:
creaBng
a
thriving
and
world-‐changing
business.
I
call
it
a
startup’s
vision.
To
achieve
that
vision,
startups
employ
a
strategy
[Business
Model
Environment
Map],
which
includes
q a
business
model,
q a
product
road
map,
q a
point
of
view
about
partners
and
compeBtors,
and
q ideas
about
who
the
customers
will
be.”
Eric
Ries
in
his
book,
“The
Lean
Startup”
58. Business
Model
Environment
Map
MISSION/VISION/PURPOSE:
………………………………………………………………………………………………………………………………………
ENVIRONMENT
59. Business
Model
Environment
Map
MISSION/VISION/PURPOSE:
………………………………………………………………………………………………………………………………………
Value
Crea>on:
Upstream
Value
Delivery:
Midstream
ENTERPRISE
ENGINE:
Build
GROWTH
ENGINE:
Measure
ENVIRONMENT
Value
Sharing
(Happiness):
Downstream
VALUE
ENGINE:
Learn
60. Business
Model
Environment
Map:
Local
Industry
Factors
MISSION/VISION/PURPOSE:
………………………………………………………………………………………………………………………………………
Value
Crea>on:
Upstream
Value
Delivery:
Midstream
ENTERPRISE
ENGINE:
Build
GROWTH
ENGINE:
Measure
Value
Sharing
(Happiness):
Downstream
VALUE
ENGINE:
Learn
Threat
of
SubsBtute
Products
or
Services
Bargaining
Power
of
Customers
Bargaining
Power
of
Suppliers
Threat
of
New
Entrants
61. Business
Model
Environment
Map:
Global
Environmental
Factors
MISSION/VISION/PURPOSE:
………………………………………………………………………………………………………………………………………
Value
Crea>on:
Upstream
Value
Delivery:
Midstream
ENTERPRISE
ENGINE:
Build
GROWTH
ENGINE:
Measure
Value
Sharing
(Happiness):
Downstream
VALUE
ENGINE:
Learn
Macro-‐Economic
Influencers
(MEI):
Global
Economy
Market
Ecosystem
(ME):
Demand
Industry
Ecosystem
(IE):
Supply
Key
Trends
&
Complementors
(KTC):
PESTLIED
(-‐/+)
62. Business
Model
Environment
Map:
“SWOT”
Factors
MISSION/VISION/PURPOSE:
………………………………………………………………………………………………………………………………………
W:
Weaknesses
Value
Delivery:
Midstream
ENTERPRISE
ENGINE:
Build
GROWTH
ENGINE:
Measure
T:
Threats
Value
Sharing
(Happiness):
Downstream
VALUE
ENGINE:
Learn
O:
OpportuniBes
S:
Strengths
Value
Crea>on:
Upstream
63.
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hNp://businessmodels.ning.com
&
hNp://twiNer.com/RodKuhnKing