Consider this scenario which is a “Hollywood version” of a business case that I read several years ago in the book, “Discovery-Driven Growth,” by Rita Gunther McGrath and Ian MacMillan. The character, Bob, is a figment of my imagination.
Bob, a father of two young girls, was recently made redundant. Bob is desperate to pursue his dream business idea of owning an antique toy store. However, Bob is seeking advice on the best tool for testing the viability of his dream idea. The options at the top of Bob’s mind are as follows:
Option 1: INTUITION ("JUST DO IT")
Based on gut feeling and experience: rent store, buy antique toys, open store to public, and see what happens. Hopefully, monthly revenue from the sale of antique toys will be more than his monthly operating cost.
Option 2: TRADITIONAL BUSINESS PLAN
Spend 8 weeks attending an evening course on writing a (theoretical) business plan for the antique toy store. Thereafter, launch the project and open the antique toy store according to the schedule or “waterfall” of activities in the business plan.
Option 3: BUSINESS MODEL CANVAS/CUSTOMER DEVELOPMENT STACK
First, document the proposal (hypotheses) for the antique toy store using the tool of the Business Model Canvas. Then, according to principles of Steve Blank’s Customer Development methodology, “Get Out Of the Building” and talk to at least 50 prospective customers and other stakeholders. Test and validate/reject hypotheses for each of the 9 building blocks of the Business Model Canvas.
Option 4: LEAN STARTUP METHOD
Start by building a Minimum Viable Product (MVP) for the antique toy store. The objective is to rapidly learn about what works and what does not work regarding outcomes that customers want and can pay for. Rapidly use the iterative loop of “Build-Measure-Learn” to find problem-solution fit as well as product-market fit.
Option 5: DISCOVERY-DRIVEN PLANNING
The first step is to prepare a “Reverse Income Statement (RIS)” to check whether the opportunity or profitability of such an antique toy store is worthwhile. Also, the Reverse Income Statement would reveal “profitability-assumptions and hypotheses” of a business model that should be tested, validated, and/or rejected.
In your opinion, which of the above options would be best for Bob? And why?
My own recommendation is for Bob to use the methodology of Profit Model Analysis and Design (PMAD) for his task of Dream Viability Testing. PMAD is a seamless visual synthesis of the above tools. PMAD consists of three activities as follows:
#1: Visualize the desired profitability of your business model
#2: Design and test your value proposition model
#3: Launch and manage a scalable value creation model
For details of applying PMAD to the above case study, see http://goo.gl/2HAN00
So, once again, which option would be best for Bob in pursuing his dream business idea of owning and running his antique toy store?
Investment Opportunity for Thailand's Automotive & EV Industries
Dream Viability Testing: Quickly and Cheaply Test the Viability of Your Dream Business Ideas
1.
THE
3-‐ACT
BUSINESS
MODEL
STORYBOARD
A
Visual
Toolkit
for
Quickly
and
Cheaply
Tes8ng
Whether
Your
Business
Idea
is
Viable
Dr.
Rod
King
2.
The
Core
Job-‐To-‐Get-‐Done
of
A
Business
Startup
Is
To
Efficiently
Discover
and
Launch
A
Scalable
Profit
Model
3.
“Profit
is
the
Oxygen
of
a
Business”
4.
How
Can
We
Quickly
and
Inexpensively
Test
The
Viability
(Profitability)
of
A
Business
Idea?
5. Never
Start
a
Project
Using
The
TradiVonal
Business
Plan,
Lean
Startup
Method,
and
Customer
Development
Stack
To
Test
The
Viability
(Profitability)
of
A
Business
Idea
6. WHAT
DO
THE
FOLLOWING
APPROACHES
HAVE
IN
COMMON:
Tradi'onal
Business
Plan,
Lean
Startup
Method,
and
Customer
Development
Stack?
q The
approaches
of
the
tradi8onal
business
plan,
Lean
Startup
method,
and
Customer
Development
Stack
are
8me-‐consuming
and
expensive
for
tes8ng
the
profitability
of
dream
business
ideas
q “Profit
Model”
is
not
the
unit
of
analysis
or
unit
of
learning
in
the
approaches
of
the
tradi8onal
business
plan,
Lean
Startup
method,
and
Customer
Development
Stack
q The
approaches
of
the
tradi8onal
business
plan,
Lean
Startup
method,
and
Customer
Development
Stack
ini8ally
ignore
profitability:
they
do
NOT
begin
with
the
end
in
mind,
that
is,
with
profitability
or
analogs/
an8logs
of
a
sustainable
profit
model.
The
approaches
take
a
worm’s
eye
view
of
a
project
q Each
approach
is
wasteful:
it
spends
a
lot
of
8me/money
in
implicitly
defining
a
profit
model
and
does
not
make
use
of
archetypal
profit
models
as
well
as
proven
profitable
paXerns
for
business
models
q Rela8vely
lot
of
8me/money
is
spent
to
find
out
what
a
profitable
model
looks
like
when
using
the
tradi8onal
business
plan,
Lean
Startup,
and
Customer
Development
Stack
q Many
vague,
weak,
or
non-‐quan8ta8ve
hypotheses
are
generated
when
using
the
tradi8onal
business
plan,
Lean
Startup,
and
Customer
Development
Stack
so
that
hypothesis
tes8ng
is
haphazard
q The
approaches
do
not
feature
a
Revenue
Lifecycle
Profile
for
a
Product/Service
so
that
it
is
not
clear
when
and
how
the
product/business
intends
to
generate
revenue
q The
methodologies
of
the
tradi8onal
business
plan,
Lean
Startup,
and
Customer
Development
Stack
are
weakly
integrated
with
the
body
of
knowledge
in
Strategic
Management,
Innova8on,
and
Project
Management.
These
methodologies
cannot
adequately
model
or
explain
factual
business
success
or
failure
#VPGen.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hap://businessmodels.ning.com
&
hap://twiaer.com/RodKuhnKing
7. Disrup'on
Spot
Luxury
Spot
Strategic
Choice
TradiVonal
Business
Plan
Business
Model
Canvas/
Customer
Development
Stack
q 3-‐Act
Business
Model
q Discovery-‐Driven
Growth
(DDG)
Strategic
Management/
Strategic
Plan/
Balanced
Scorecard
Lean
Startup
Method/
Lean
Canvas
OVERVIEW
OF
TOOLS
FOR
DREAM
VIABILITY
TESTING
(DVT)
Trade-‐off
Map
of
Cost
vs.
Effec'veness
(-‐):
PAIN:
Time
(Cost;
Risk)
(+):
DELIGHT:
Effec8veness
Key
Profitable
Tool
Unprofitable
Tool
#VPGen.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hXp://businessmodels.ning.com
&
hXp://twiXer.com/RodKuhnKing
Market
Segment
(Job-‐To-‐Get-‐Done/Goal;
Product/Tool):
Test
Viability
of
Business
Idea
(Project/Business
Model)
“Insane”
Happiness
(Value)
Ideal
Final
Result
(IFR)
Infinite
Shared
Happiness
“Invisible
Hand”
8. The
3-‐Act
Business
Model
Storyboard
Eliminate
the
Complexity
and
Waste
of
The
Tradi8onal
Business
Plan,
Lean
Startup
Method,
and
Customer
Development
Stack
9. 3
STEPS
FOR
THE
3-‐ACT
BUSINESS
MODEL
STORYBOARD
Quick
and
Inexpensive
Heuris'c
for
Pregnant
Idea
Tes'ng
and
Execu'on
q First,
Visualize
the
Desired
Profitability
of
Your
Business
Model.
q Then,
Analyze,
Design,
and
Test
Your
Value
ProposiVon
Model.
q Finally,
Launch
and
Manage
Story
of
a
Scalable
Value
CreaVon
Model.
#VPGen.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hap://businessmodels.ning.com
&
hap://twiaer.com/RodKuhnKing
10.
#VPGen.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hap://businessmodels.ning.com
&
hap://twiaer.com/RodKuhnKing
Start
with
the
End
In
Mind
11. Past
Reality
Present
Reality
Future
Reality
#VPGen.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hap://businessmodels.ning.com
&
hap://twiaer.com/RodKuhnKing
WHY
pivot?
3-‐Act
Business
Model
(3BM)
Plan
Why
Pivot?
12. Past
Reality
Present
Reality
Future
Reality
3-‐Act
Business
Model
(3BM)
Plan
4
Pivot
Ques'ons
#VPGen.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hap://businessmodels.ning.com
&
hap://twiaer.com/RodKuhnKing
Strategy
Short/Medium/Long-‐term
WHAT
to
pivot?
TO
WHAT
to
pivot?
WHY
pivot?
HOW
to
pivot?
13. ENVIRONMENT
#VPGen.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hap://businessmodels.ning.com
&
hap://twiaer.com/RodKuhnKing
3-‐Act
Business
Model
Create
Value
Deliver
Value
Share
(Capture)
Value
Bird’s
Eye
View
CORE
JOBS:
HOW?
WHAT?
WHY?
VALUE
CREATION
MODEL
VALUE
PROPOSITION
MODEL
VALUE
SHARING
(PROFIT)
MODEL
Innovator’s
Perspec8ve
Marketer’s
Perspec8ve
Investor’s
Perspec8ve
14.
#VPGen.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hap://businessmodels.ning.com
&
hap://twiaer.com/RodKuhnKing
VALUE
CREATION
MODEL
VALUE
PROPOSITION
MODEL
PROFIT
MODEL
ENVIRONMENT
3-‐ACT
BUSINESS
MODEL
3-‐ACT
BUSINESS
MODEL
STORYBOARD
First,
Visualize
the
Desired
Profitability
of
Your
Business
Model
Bird’s
Eye
View
15.
#VPGen.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hap://businessmodels.ning.com
&
hap://twiaer.com/RodKuhnKing
VALUE
CREATION
MODEL
VALUE
PROPOSITION
MODEL
PROFIT
MODEL
3-‐ACT
BUSINESS
MODEL
STORYBOARD
First,
Visualize
the
Desired
Profitability
of
Your
Business
Model
W:
WEAKNESSES
(-‐)
S:
STRENGTHS
(+)
O:
OPPORTUNITIES
(+)
T:
THREATS
(-‐)
(Value
&
SWOT
Analysis)
3-‐ACT
BUSINESS
MODEL
16.
#VPGen.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hap://businessmodels.ning.com
&
hap://twiaer.com/RodKuhnKing
VALUE
CREATION
MODEL
VALUE
PROPOSITION
MODEL
PROFIT
MODEL
3-‐ACT
BUSINESS
MODEL
STORYBOARD
First,
Visualize
the
Desired
Profitability
of
Your
Business
Model
(“E.R.I.C.”
Value
Innova'on
Tac'cs)
E:
Eliminate
I:
Increase
C:
Create
R:
Reduce
3-‐ACT
BUSINESS
MODEL
17.
#VPGen.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hap://businessmodels.ning.com
&
hap://twiaer.com/RodKuhnKing
VALUE
CREATION
MODEL
VALUE
PROPOSITION
MODEL
Inputs/Partners
Internal
Resources
Processes/AcVviVes
Product/Value
ProposiVon
Channels
&
RelaVonships
Customer/Job-‐To-‐Get-‐Done
Cost:
(Structure/Metrics)
Revenue:
(Streams/Metrics)
PROFIT
3-‐ACT
BUSINESS
MODEL
PROFIT
MODEL
Dream
Viability
Tes8ng
(DVT):
First,
Visualize
the
Desired
Profitability
of
Your
Business
Model
Worm’s
Eye
View
(Each
sub-‐model
consists
of
3
panels)
18. Disrup'on
Spot
Luxury
Spot
Strategic
Choice
Samson
Strategy
Delilah
Strategy
Goliath
Strategy
David
Strategy
4
GENERIC
WINNING
STRATEGIES
AND
VALUE
PROPOSITIONS
Trade-‐off
Map
of
Weakness
vs.
Strength
(-‐):
PAIN:
Weakness
(e.g.,
Size)
(+):
DELIGHT:
Strength
Key
Winning
Strategy
Losing
Strategy
#VPGen.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hXp://businessmodels.ning.com
&
hXp://twiXer.com/RodKuhnKing
Market
Segment
(Job-‐To-‐Get-‐Done/Goal;
Product/Tool):
………………..…..……..…….
…………
……………………………………………………………………….…………….………….……………….
“Insane”
Happiness
(Value)
Ideal
Final
Result
(IFR)
Infinite
Shared
Happiness
“Invisible
Hand”
19. Disrup'on
Spot
Luxury
Spot
Strategic
Choice
Sweet
Spot
Profit
Model/
Strategy/
Value
Proposi'on
Blue
Ocean
Profit
Model/
Strategy/
Value
Proposi'on
Luxury
Spot
(“Differen'a'on”)
Profit
Model/
Strategy/
Value
Proposi'on
DisrupVon
Spot/Lean
(“Low
Cost”)
Profit
Model/
Strategy/
Value
Proposi'on
4
GENERIC
PROFIT
MODELS,
WINNING
STRATEGIES,
AND
VALUE
PROPOSITIONS
Trade-‐off
Map
of
Cost
vs.
Revenue
(-‐):
PAIN:
Cost
(+):
DELIGHT:
Revenue
Key
Profitable
Model
Unprofitable
Model
#VPGen.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hXp://businessmodels.ning.com
&
hXp://twiXer.com/RodKuhnKing
Market
Segment
(Job-‐To-‐Get-‐Done/Goal;
Product/Tool):
………………..…..……..…….
…………
……………………………………………………………………….…………….………….……………….
“Insane”
Happiness
(Value)
Ideal
Final
Result
(IFR)
Infinite
Shared
Happiness
“Invisible
Hand”
20. Disrup'on
Spot
Luxury
Spot
Strategic
Choice
Sweet
Spot
Customer
Experience
Blue
Ocean
Customer
Experience
Luxury
Spot
Customer
Experience
DisrupVon
Spot/Lean
Customer
Experience
CUSTOMER
EXPERIENCE,
VALUE
PROPOSITION,
JOB-‐TO-‐GET-‐DONE,
AND
(VALUE)
FACTORS
Trade-‐off
Map
of
Customer
Pain
vs.
Customer
Delight
(-‐):
PAIN:
Cost;
Size;
Complexity;
Inaccessibility;
Delay
(+):
DELIGHT:
Func'onality;
Performance;
Quality;
Brand;
Customiza'on
Key
Valuable
Experience
Non-‐valuable
Experience
#VPGen.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hXp://businessmodels.ning.com
&
hXp://twiXer.com/RodKuhnKing
Market
Segment
(Job-‐To-‐Get-‐Done/Goal;
Product/Tool):
Entertainment
Industry
(Music):
Listen
to
music
“Insane”
Happiness
(Value)
Ideal
Final
Result
(IFR)
Infinite
Shared
Happiness
“Invisible
Hand”
21. AGRICULTURE
&
MINING
Industry
SERVICE
Industry
INFRASTRUCTURE/PLATFORM
Management
MANUFACTURING
Industry
PROFIT
MODELS:
STRATEGIES,
TACTICS,
AND
PATTERNS
How
Businesses
Really
Make
Money
and
Win
Business
Model
Compe88ons
in
the
Imita8on
Economy
#VPGen.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hXp://businessmodels.ning.com
&
hXp://twiXer.com/RodKuhnKing
q Asset
Sale
q Long
Tail
q Open
Source
Collabora'on
q Dona'on
q So`ware
as
a
Service
q Two-‐sided
Market
q Asset
Sale
q Razor
Blade
(Bait
&
Switch)
q Subscrip'on
Fee
q Crowdsourcing
q Lending/Ren'ng/Leasing
q Licensing
q Licensing
q Brokerage
q Usage
Fee
q Asset
Sale
q Adver'sing
q Co-‐crea'on
q Usage
Fee
q Mul'-‐sided
Market
Placorm
q Ad
Network
q Outsourcing
q Ecosystem
Management
q Direct
Sale
q Indirect
Sale
q Offline
q Online
q Discount
q Tiered
Payment
q Auc'on
q Facilitated
Network
q Brand
Mul'plier
q Reverse
Auc'on
q Customiza'on
q Cross-‐subsidiza'on
q Franchise
q Product
Leadership
q Automa'on
(Self-‐service)
q Gamifica'on
q B2C
q B2B
q Pre-‐Payment
q Fair
Pricing
q Community
(Hub)
q On
Demand
q DIY
q Unbundling
q Unbundling
q Bundling
q Free
GENERIC
PROFIT
MODELS
q P2P
Placorm
q Landlord
q Leasing
q 2nd
Hand
q Luxury
Spot
(Differen'a'on)
q Disrup'on
Spot
(Low
Cost;
Lean)
q Blue
Ocean
(Value
Innova'on)
q Creator
q Distributor
q Broker
q Sweet
Spot
q Product
Extension
q Opera'onal
Excellence
q Frac'onaliza'on
q Customer
In'macy
q Affiliates
What
industry
is
the
business
(or
customer)
in?
Who
is
the
customer-‐protagonist
(most
dissa'sfied)?
What
is
the
customer
Job-‐To-‐Get-‐Done?
What
is
the
profit
model
of
the
business
(customer)?
What
are
analogs
and
an'logs
of
the
profit
model?
q Shared
Value
22. Case
Study
on
The
3-‐Act
Business
Model
Storyboard
An'que
Toy
Store
How
a
New
An8que
Toy
Store
Owner
Made
An
Annual
Profit
of
$250,000
23. Generate
and
Test
QuanVfiable
Hypotheses
(AssumpVons)
That
Are
Based
On
Generic
Profitable
Models
24. Past
Reality
Business
Profit
Present
Reality
Business
Profit
Future
Reality
Business
Profit
3-‐Act
Business
Model
(3BM)
Plan
for
AnVque
Toy
Store
4
Pivot
Ques'ons
#VPGen.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hap://businessmodels.ning.com
&
hap://twiaer.com/RodKuhnKing
Strategy
Short/Medium/Long-‐term
WHAT
to
pivot?
TO
WHAT
to
pivot?
WHY
pivot?
HOW
to
pivot?
25. Past
Reality
Business
Profit
Present
Reality
Business
Profit
Future
Reality
Business
Profit
(Desired
Annual
Profit:
$250,000)
Business
Model
(3-‐Act)
Business
Model
(3-‐Act)
Business
Model
(3-‐Act)
Industry
Ecosystem
Market
Ecosystem
Business
Model
(3-‐Act)
Macro-‐Economic
Influencers
Key
Trends
&
Complementors
AnVque
Toy
Store’s
Mission/Vision/
Purpose/Ideals/
Ideal
Final
Result
For
Business
Profit
#VPGen.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hap://businessmodels.ning.com
&
hap://twiaer.com/RodKuhnKing
Strategy
Short/Medium/Long-‐term
3-‐Act
Business
Model
(3BM)
Plan
for
AnVque
Toy
Store
4
Pivot
Ques'ons
26. Disrup'on
Spot
Luxury
Spot
Strategic
Choice
Sweet
Spot
Profit
Model/
Strategy/
Value
Proposi'on
Blue
Ocean
Profit
Model/
Strategy/
Value
Proposi'on
Luxury
Spot
(“Differen'a'on”)
Profit
Model/
Strategy/
Value
Proposi'on
DisrupVon
Spot/Lean
(“Low
Cost”)
Profit
Model/
Strategy/
Value
Proposi'on
4
GENERIC
PROFIT
MODELS,
WINNING
STRATEGIES,
AND
VALUE
PROPOSITIONS
FOR
ANTIQUE
TOY
STORE
Trade-‐off
Map
of
Cost
vs.
Revenue
(-‐):
PAIN:
Cost
(+):
DELIGHT:
Revenue
Key
Profitable
Model
Unprofitable
Model
#VPGen.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hXp://businessmodels.ning.com
&
hXp://twiXer.com/RodKuhnKing
Market
Segment
(Job-‐To-‐Get-‐Done/Goal;
Product/Tool):
Have
fun/entertainment
ü
“Insane”
Happiness
(Value)
Ideal
Final
Result
(IFR)
Infinite
Shared
Happiness
“Invisible
Hand”
27. Disrup'on
Spot
Luxury
Spot
Strategic
Choice
Sweet
Spot
Customer
Experience
Blue
Ocean
Customer
Experience
Luxury
Spot
Customer
Experience
DisrupVon
Spot/Lean
Customer
Experience
SCENARIOS
OF
CUSTOMER
EXPERIENCE
AND
(VALUE)
FACTORS
FOR
ANTIQUE
TOY
STORE
Trade-‐off
Map
of
Customer
Pain
vs.
Customer
Delight
(-‐):
PAIN:
Cost;
Size;
Complexity;
Inaccessibility;
Delay
(+):
DELIGHT:
Func'onality;
Performance;
Quality;
Brand;
Customiza'on
Key
Valuable
Experience
Non-‐valuable
Experience
#VPGen.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hXp://businessmodels.ning.com
&
hXp://twiXer.com/RodKuhnKing
“Insane”
Happiness
(Value)
Ideal
Final
Result
(IFR)
Infinite
Shared
Happiness
“Invisible
Hand”
Market
Segment
(Job-‐To-‐Get-‐Done/Goal;
Product/Tool):
Have
fun/entertainment
28. ENVIRONMENT
#VPGen.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hap://businessmodels.ning.com
&
hap://twiaer.com/RodKuhnKing
3-‐Act
Business
Model
for
AnVque
Toy
Store
Bird’s
Eye
View
Create
Value
Deliver
Value
Share
(Capture)
Value
CORE
JOBS:
SATISFY
DEMAND
CREATE
DEMAND
GENERATE
PROFIT
VALUE
CREATION
MODEL
VALUE
PROPOSITION
MODEL
(ARENA)
VALUE
SHARING
(PROFIT)
MODEL
Innovator’s
Perspec8ve
Marketer’s
Perspec8ve
Investor’s
Perspec8ve
29.
#VPGen.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hap://businessmodels.ning.com
&
hap://twiaer.com/RodKuhnKing
VALUE
CREATION
MODEL
VALUE
PROPOSITION
MODEL
(ARENA)
Inputs/Partners
Internal
Resources
Annual
Salary
of
2
Employees
=
2
($8/hr
x
40x52)
=
$33,280
Rent
=
$30
per
sq
o;
3,100
sq
o
Total
Rent
=
30x3,100
=
$93,000
Inv.
=
10%
of
Sales
=$50,000
Processes/AcVviVes
Product/Value
ProposiVon
q “An8que”
Toys:
Average
price
per
toy:
$25
Annual
no.
of
toys
to
be
sold
=
Sale/Price
per
item
=
500,000/25
=
20,000
Channels
&
RelaVonships
Adver8sing
per
Sale
of
Toy=
$3
-‐>
Total
Adver8sing
=
Annual
no.
of
sale
x
Ad
per
sale
=
10,000x3
=
$30,000
Customer/Job-‐To-‐Get-‐Done
q Kids
(Parent/Family)
who
want
non-‐electronic
entertainment
Average
no.
of
items
per
sale
=
2
Annual
no.
of
sales
=
20,000/2
=
10,000
(Monthly
sale
=
833
toys)
Cost
(Pain)
Annual
Allowable
Cost
=
Sale
–
Profit
=
$500,000
-‐
$250,000
=
$250,000
(incl.
con8ngencies)
Revenue
(Delight)
Annual
Return
On
Sale
=
50%
=
Profit/Sale
-‐>
Sale
(Revenue)
=
Profit/0.50
=
250,000/0.50
=
$500,000
(Pricing:
$25
per
item)
PROFIT
(VALUE)
Desired
Annual
Profit
=
$250,000
Desired
Profit
Margin
=
50%
3-‐ACT
BUSINESS
MODEL
For
ANTIQUE
TOY
STORE
PROFIT
MODEL
Dream
Viability
Tes8ng
(DVT):
First,
Visualize
the
Desired
Profitability
of
Your
Business
Model
Source
of
Informa8on:
McGrath,
R.G.;
MacMillan,
I.C.
(2009)
Discovery-‐Driven
Growth.
MassachuseXs:
Harvard
Business
Press.
“Reverse
Income
Statement”
30.
#VPGen.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hap://businessmodels.ning.com
&
hap://twiaer.com/RodKuhnKing
Inputs/Partners
q Famous
Railroad
Museum
(nearby
proposed
store)
q Old
fashioned
toys
Internal
Resources
q Employees/Team
q Store
Facility
q Office
Equipment/Supplies
q Culture/Brand
Processes/AcVviVes
q Discover
q Plan
q Build
q Measure
q Learn
Product/Value
ProposiVon
q “An8que”
Toys:
old
fashioned
toys
like
model
trains
and
board
game
q Play
with
unique
toys
back
in
'me
Channels
&
RelaVonships
q Offline
q In-‐store
Purchases
Customer/Job-‐To-‐Get-‐Done
q Kids
(Parent/Family)
q Have
fun
playing
with
non-‐
electronic
toys:
unique
old
fashioned
toys
Cost
(Pain)
High
Cost
q Salary
of
Employees
q Rent;
Inventory
q Office
Supplies;
U8li8es
q Marke8ng/Adver8sing
Revenue
(Delight)
High
Revenue
q Asset
Sale
• Engagement
• Acquisi'on;
Ac'va'on
• Reten'on;
Referral;
Revenue
PROFIT
(VALUE)
q High
Profit
Margin
Dream
Viability
Tes8ng
(DVT):
Then,
Design
and
Test
Your
Value
Proposi'on
Model
Source
of
Informa8on:
McGrath,
R.G.;
MacMillan,
I.C.
(2009)
Discovery-‐Driven
Growth.
MassachuseXs:
Harvard
Business
Press.
Business
Model
Resources
(Hypotheses)
VALUE
CREATION
MODEL
VALUE
PROPOSITION
MODEL
(ARENA)
PROFIT
MODEL
3-‐ACT
BUSINESS
MODEL
For
ANTIQUE
TOY
STORE
31.
#VPGen.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hap://businessmodels.ning.com
&
hap://twiaer.com/RodKuhnKing
VALUE
CREATION
MODEL
VALUE
PROPOSITION
MODEL
(ARENA)
PROFIT
MODEL
ENVIRONMENT
Dream
Viability
Tes8ng
(DVT):
Bird’s
Eye
View
W:
WEAKNESSES
(-‐)
S:
STRENGTHS
(+)
O:
OPPORTUNITIES
(+)
T:
THREATS
(-‐)
Value
&
SWOT
Analysis
3-‐ACT
BUSINESS
MODEL
For
ANTIQUE
TOY
STORE
32.
#VPGen.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hap://businessmodels.ning.com
&
hap://twiaer.com/RodKuhnKing
VALUE
CREATION
MODEL
VALUE
PROPOSITION
MODEL
PROFIT
MODEL
E:
Eliminate
I:
Increase
C:
Create
R:
Reduce
“E.R.I.C.”
Value
Innova'on
Tac'cs
3-‐ACT
BUSINESS
MODEL
For
ANTIQUE
TOY
STORE
Dream
Viability
Tes8ng
(DVT):
Bird’s
Eye
View
33.
#VPGen.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hap://businessmodels.ning.com
&
hap://twiaer.com/RodKuhnKing
VALUE
CREATION
MODEL
VALUE
PROPOSITION
MODEL
(ARENA)
Industry
Ecosystem
(IE):
Supply
Market
Ecosystem
(ME):
Demand
Key
Trends
&
Complementors
(KTC):
PESTLIED
(-‐/+)
Macro-‐Economic
Influencers
(MEI):
Global
Economy
PROFIT
MODEL
4
Global
Environment
Forces
for
External
Fitness
Analysis
3-‐ACT
BUSINESS
MODEL
For
ANTIQUE
TOY
STORE
Dream
Viability
Tes8ng
(DVT):
Bird’s
Eye
View
34.
#VPGen.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hap://businessmodels.ning.com
&
hap://twiaer.com/RodKuhnKing
VALUE
CREATION
MODEL
VALUE
PROPOSITION
MODEL
(ARENA)
PROFIT
MODEL
Bargaining
Power
of
Suppliers
Bargaining
Power
of
Customers
Threat
of
New
Entrants
Threat
of
SubsVtute
Products
or
Services
Porter’s
5
Forces
for
Industry
Profitability
&
Fitness
Analysis
3-‐ACT
BUSINESS
MODEL
For
ANTIQUE
TOY
STORE
Dream
Viability
Tes8ng
(DVT):
Bird’s
Eye
View
35. REVENUE
LIFECYCLE
PROFILE
(RLP)
-‐
Simplified
Diagram
First,
Visualize
the
Desired
Profitability
of
Your
Business
Model
#VPGen.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hXp://businessmodels.ning.com
&
hXp://twiXer.com/RodKuhnKing
TIME
REVENUE
Birth
of
Idea/
Prototyping/TesVng/
Product-‐Market
Fit
(Agility)
T1
(Full
Product
Launch)
T2
(Entry
of
Main
Compe'tor)
T3
(Compe''veness
Erosion)
Source
of
Informa8on:
McGrath,
R.G.;
MacMillan,
I.C.
(2009)
Discovery-‐Driven
Growth.
MassachuseXs:
Harvard
Business
Press.
Blank,
S.;
Dorf,
B.
(2012)
The
Startup
Owner’s
Manual.
California:
K
&
S
Ranch,
Inc.
Stability/
Steady
State/Sustainability
(Op'miza'on/Exploita'on)
T4
(Product
Termina'on)
Customer
CreaVon
Company
Building
Customer
Development
Customer
ValidaVon
36. COST
LIFECYCLE
PROFILE
(CLP)
–
Simplified
Diagram
First,
Visualize
the
Desired
Profitability
of
Your
Business
Model
#VPGen.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hXp://businessmodels.ning.com
&
hXp://twiXer.com/RodKuhnKing
COST
T1
(Full
Product
Launch)
T2
(Entry
of
Main
Compe'tor)
T3
(Compe''veness
Erosion)
TIME
T4
(Product
Termina'on)
Source
of
Informa8on:
McGrath,
R.G.;
MacMillan,
I.C.
(2009)
Discovery-‐Driven
Growth.
MassachuseXs:
Harvard
Business
Press.
Blank,
S.;
Dorf,
B.
(2012)
The
Startup
Owner’s
Manual.
California:
K
&
S
Ranch,
Inc.
Customer
Development
Customer
ValidaVon
Customer
CreaVon
Company
Building
Birth
of
Idea/
Prototyping/TesVng/
Product-‐Market
Fit
(Agility)
37. The
3-‐Act
Business
Model
Storyboard
A
Quick
and
Inexpensive
Toolkit
for
Tes8ng
the
Viability
of
Ideas
38. WHAT
to
pivot?
TO
WHAT
to
pivot?
HOW
to
pivot?
WHY
pivot?
4
Pivot
QuesVons
#VPGen.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hXp://businessmodels.ning.com
&
hXp://twiXer.com/RodKuhnKing
4
PIVOT
QUESTIONS
FOR
THE
3-‐ACT
BUSINESS
MODEL
(3BM)
PLAN
Pivot
Management
Story
for
Dream
Valida'on
Tes'ng
39.
#VPGen.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hXp://businessmodels.ning.com
&
hXp://twiXer.com/RodKuhnKing
3-‐ACT
BUSINESS
MODEL
(3BM)
STORYBOARD:
Visual
Checklist
BUSINESS
MODEL
BUSINESS
MODEL
ENVIRONMENT
VALUE
CREATION
MODEL
VALUE
PROPOSITION
MODEL
PROFIT
(SHARED
VALUE)
MODEL
Discover
(Iden'fy/Define/List/
Analyze)
Plan
(Design/Hypothesize/
Generate/Brainstorm)
Build
(Do/Test/Prototype/
Demo/Pilot/Execute)
Measure
(Check/Evaluate/
Validate
Impact:
Delight/Pain)
Learn
(Lessons/Insights/
To
Do)
THE
5
STAGES
OF
USING
THE
3-‐ACT
BUSINESS
MODEL
STORYBOARD
Discover.
Plan.
Build.
Measure.
Learn
40. THE
5
STAGES
OF
USING
THE
3-‐ACT
BUSINESS
MODEL
STORYBOARD
Discover.
Plan.
Build.
Measure.
Learn
#VPGen.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hXp://businessmodels.ning.com
&
hXp://twiXer.com/RodKuhnKing
3-‐ACT
BUSINESS
MODEL
(3BM)
STORYBOARD:
Visual
Checklist
BUSINESS
MODEL
BUSINESS
MODEL
ENVIRONMENT
VALUE
CREATION
MODEL
VALUE
PROPOSITION
MODEL
PROFIT
(SHARED
VALUE)
MODEL
Discover
(Iden'fy/Define/List/
Analyze)
q Team
Members
q Core
Competences/
Capabili8es
q Key
Processes/
Ac8vi8es
q Internal
Resources
q Market
(Study/
Research/Trends/
Segmenta8on)
q Customer
Personas
q Customer
Obstacles/
Job-‐To-‐Get-‐Done
q Business
Vision/Goal/
Job-‐To-‐Get-‐Done
q Targeted
Profit
q Profit
Margin
q Revenue
(Pricing)
q Cost
q Return
on
Assets
q Profit
Model
Strategies/Tac8cs/
PaXerns
q Industry
Classifica8on
&
Size
q Industry
(AXrac8veness/Value)
Analysis,
Trends,
and
Opportuni8es
q Compe8tor
Analysis
(Nearest
Compe8tor
Offers)
&
Strategy
q Partners/Collaborators
q Related
Communi8es
q Lifecycle
Investment
Plan/Sponsors
Plan
(Design/Hypothesize/
Generate/Brainstorm)
q Product/Service
q Processes
q Team/Culture
q Int.
Resources
q Value
Proposi8on
q Customer
Obstacles/
Job-‐To-‐Get-‐Done
q Channels/Landing
Page
q Profit
Margin
q Revenue
(Pricing)
q Cost
q Customer
Behavior
q “Unfair”
Compe88ve
Advantage
q Compe88ve
Strategy
&
Tac8cs
q Marke8ng
Strategy
&
Tac8cs
Build
(Do/Test/Prototype/
Demo/Pilot/Execute)
q Product/Service
q Processes
q Team/Culture
q Int.
Resources
q Value
Proposi8on
q Customer
Obstacles/
Job-‐To-‐Get-‐Done
q Channels/Landing
Page
q Profit
Margin
q Revenue
(Pricing)
q Cost
q Customer
Behavior
q “Unfair”
Compe88ve
Advantage
q Compe88ve
Strategy
&
Tac8cs
q Marke8ng
Strategy
&
Tac8cs
Measure
(Check/Evaluate/
Validate
Impact:
Delight/Pain)
q Product/Service
q Processes
q Team/Culture
q Int.
Resources
q Value
Proposi8on
q Customer
Obstacles/
Job-‐To-‐Get-‐Done
q Channels/Landing
Page
q Profit
Margin
q Revenue
(Pricing)
q Cost
q Customer
Behavior
q “Unfair”
Compe88ve
Advantage
q Compe88ve
Strategy
&
Tac8cs
q Marke8ng
Strategy
&
Tac8cs
Learn
(Lessons/Insights/
To
Do)
q “Unfair”
Compe88ve
Advantage
q Compe88ve
Strategy
&
Tac8cs
q Marke8ng
Strategy
&
Tac8cs
41.
#VPGen.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hap://businessmodels.ning.com
&
hap://twiaer.com/RodKuhnKing
VALUE
CREATION
MODEL
VALUE
PROPOSITION
MODEL
Inputs/Partners
Internal
Resources
Processes/AcVviVes
Product/Value
ProposiVon
Channels
&
RelaVonships
Customer/Job-‐To-‐Get-‐Done
Cost
(Pain)
Revenue
(Delight)
PROFIT
(VALUE)
PROFIT
MODEL
Dream
Viability
Tes8ng
(DVT):
First,
Visualize
the
Desired
Profitability
of
Your
Business
Model
3-‐ACT
BUSINESS
MODEL
Worm’s
Eye
View
(Each
sub-‐model
consists
of
3
panels)
42.
#VPGen.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hap://businessmodels.ning.com
&
hap://twiaer.com/RodKuhnKing
VALUE
CREATION
MODEL
VALUE
PROPOSITION
MODEL
Inputs/Partners
q What
material,
informa'on,
and
capital
are
needed
prior
to
launching
product?
q What
partners/alliances
are
needed?
Internal
Resources
q Who
are
team
members?
q What
hard
assets
(equip-‐
ment/infra’)
will
are
needed
prior
to
launching
product?
q What
technology
is
needed?
Processes/AcVviVes
q What
are
development
ac8vi8es
that
must
be
completed
prior
to
launching
product/service/tool?
Product/Value
ProposiVon
q What
product/service/tool
will
customer
use
and/or
buy?
q Why
will
customer
buy
product/
service/tool?
Channels
&
RelaVonships
q How
will
product/service/tool
be
delivered
to
customer?
q What
sort
of
rela8onship
will
business
have
with
customer?
q How
will
customer
be
engaged,
acquired,
and
retained?
Customer/Job-‐To-‐Get-‐Done
q What
customer
will
use
and/or
buy
product/service/tool?
q What
job
is
customer
trying
to
get
done?
What
are
obstacles?
q What
is
customer
pain?
q What
is
customer
delight?
Cost
(Pain)
q At
what
price
will
customer
buy
product/service/tool?
q What
effort
will
customer
expend
in
buying
product?
q What
is
customer
acqu.
cost?
q What
is
annual
total
cost?
Revenue
(Delight))
q How
soon
will
customer
buy?
q How
many
and
o`en
will
customer
buy?
q How
will
customer
pay?
q What
will
be
annual
total
revenue?
PROFIT
(VALUE)
q What
will
be
the
annual
profit
margin?
q What
will
be
the
annual
profit?
3-‐ACT
BUSINESS
MODEL
…………………………………………………..
PROFIT
MODEL
Dream
Viability
Tes8ng
(DVT):
Ques'ons
Note:
The
above
ques8ons
are
based
on
John
Mullins
and
Randy
Komisar’s
book,
“Geyng
to
Plan
B”
43.
#VPGen.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hap://businessmodels.ning.com
&
hap://twiaer.com/RodKuhnKing
VALUE
CREATION
MODEL
(“Build”)
VALUE
PROPOSITION
MODEL
(“Discover”;
“Plan”)
Inputs/Partners
q Materials/Supplies
q Informa8on
q Investment
Capital
q Strategic
Alliances/Partners
q Co-‐creators/Contractors
Internal
Resources
(Physical/Intellectual/Emo'onal/
Spiritual
Resources)
q Employees
q Machinery/Infra’
Facili8es
q Technology/IP
q Brand/Culture
Processes/AcVviVes
q Discover
q Plan
q Build
q Measure
q Learn
Product/Value
ProposiVon
q Value
Proposi8on
Requirements
q Value
Proposi8on
Statement
q Product/Service/Tool:
Features
Channels
&
RelaVonships
q Online
Channels
q Offline
Channels
Customer/Job-‐To-‐Get-‐Done
q Customer-‐Protagonist
q Stage
(Arena);
Conflict
Zone
q Cri8cal
Problem
q Task/Job-‐To-‐Get-‐Done/Quest
q Constraints/Obstacles
q Success
Criteria
(Outcomes)
Cost
(Pain)
q Cost
of
Customer
Acquisi8on
q Total
Cost
q Opera'ng
Cost
q Working
Capital
Revenue
(Delight)
q E:
Engagement
q A:
Acquisi8on
q A:
Ac8va8on
q R:
Reten8on
q R:
Referral
q R:
Revenue
PROFIT
(VALUE)
q High
Profit
Margin
(Price):
Low
Volume;
Low
Velocity
q Low
Profit
Margin
(Price):
High
Volume;
High
Velocity
q Gross
Margin
q Customer
Life8me
Value
PROFIT
MODEL
(“Measure”)
Dream
Viability
Tes8ng
(DVT):
Checklist
3-‐ACT
BUSINESS
MODEL
(“Learn”)
44.
#VPGen.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hap://businessmodels.ning.com
&
hap://twiaer.com/RodKuhnKing
VALUE
CREATION
MODEL:
COST
REDUCTION
VALUE
PROPOSITION
MODEL:
REVENUE
INCREASE
Inputs/Partners
q Co-‐crea8on;
Social
Media
q Open
Source
Collabora8on
q Crowd-‐funding/sourcing
q Frac8onaliza8on/Co-‐owner
q Investor/Sponsor/Donor
q Mergers
&
Acquisi8ons
Internal
Resources
(Physical/Intellectual/Emo'onal/
Spiritual
Resources)
q Creator;
Broker;
Landlord
q Peer-‐to-‐Peer
Pla|orm
q Facilitated
Network
q Patents
(“Fences”;
Barriers)
Processes/AcVviVes
q Opera8onal
Excellence;
JIT
q Automa8on
(Self-‐service/DIY)
q Gamifica8on;
Digitaliza8on
q Ecosystem
Management
q Problem
Solving;
Consul8ng
q Compe88ve
Strategies
Product/Value
ProposiVon
q Asset
Sale/Direct
Sale
q Product
Leadership/Extension
q Used/2nd
Hand
Product;
Bargain
q Customiza8on
(Value
Factors)
q Bundling/Unbundling
q Product/Sooware
as
a
Service
Channels
&
RelaVonships
q Offline/Online;
(In)direct
Sale
q Franchise;
Licensing;
Affiliates
q Distributor;
Disintermediator
q Ad
Network;
Brand
Mul8plier
q Aggrega8on/Disaggrega8on
q Auc8on/Reverse
Auc8on
Customer/Job-‐To-‐Get-‐Done
q Customer
In8macy/Loyalty
q B2B;
B2C
q Long
Tail;
Community
(Hub)
q Two-‐sided
Market
(Segments)
q Mul8-‐sided
Market
(Pla|orm)
q Luxury/Mass
Market/Niche
Cost
(Pain)
q Outsourcing;
Specializa8on
q Group
Deals
q Lending/Ren8ng/Leasing
q Cross-‐subsidiza8on
q Frac8onaliza8on/Co-‐owner
Revenue
(Delight)
q Pre-‐payment;
Amor8za8on
q Discount;
Dynamic
Pricing
q Razor
Blade
(“Bait
&
Switch”)
q Usage
Fee;
Subscrip8on
Fee
q Tiered
Payment;
Freemium
q Dona8on;
Free
PROFIT
(VALUE)
q Shared
Value
(Profit)
q Transient
Compe88ve
Adv.
q Sustainable
Compe88ve
Adv.
q Red
Ocean;
Low
Cost/Margin
q Blue
Ocean;
Luxury
Spot
q Disrup8ve
Innova8on
Spot
PROFIT
MODEL:
PROFIT
INCREASE
Dream
Viability
Tes8ng
(DVT):
Paserns/Tac'cs
51
BUSINESS
PROFIT
PATTERNS
(Business
Model
Choices
for
Compe''ve
Advantage)
45.
#VPGen.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hap://businessmodels.ning.com
&
hap://twiaer.com/RodKuhnKing
VALUE
CREATION
MODEL
VALUE
PROPOSITION
MODEL
3-‐ACT
BUSINESS
MODEL
STORYBOARD
Bird’s
Eye
View
(Business
Model
Chain:
Macro-‐Logic)
VALUE
SHARING
(PROFIT)
MODEL
delivers
requires
drives
requires
46.
#VPGen.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hap://businessmodels.ning.com
&
hap://twiaer.com/RodKuhnKing
VALUE
CREATION
MODEL
VALUE
PROPOSITION
MODEL
VALUE
SHARING
(PROFIT)
MODEL
delivers
requires
drives
requires
3-‐ACT
BUSINESS
MODEL
STORYBOARD
Eagle’s
Eye
View
(Business
Model
Tree
–
Hierarchical
Decomposi'on
of
Macro-‐Logic)
Product/Value
ProposiVon
Channels
&
RelaVonships
Customer/Job-‐To-‐Get-‐Done
Inputs/Partners
Internal
Resources
Processes/AcVviVes
Cost
(Pain)
Revenue
(Delight)
PROFIT
(VALUE)
47.
#VPGen.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hap://businessmodels.ning.com
&
hap://twiaer.com/RodKuhnKing
VALUE
CREATION
MODEL
VALUE
PROPOSITION
MODEL
VALUE
SHARING
(PROFIT)
MODEL
delivers
requires
drives
requires
3-‐ACT
BUSINESS
MODEL
STORYBOARD
Eagle’s
Eye
View
(Generic
Business
Model
Network:
Meso-‐Logic)
Product/Value
ProposiVon
Channels
&
RelaVonships
Customer/Job-‐To-‐Get-‐Done
Inputs/Partners
Internal
Resources
Processes/AcVviVes
Cost
(Pain)
Revenue
(Delight)
PROFIT
(VALUE)
48.
#VPGen.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hap://businessmodels.ning.com
&
hap://twiaer.com/RodKuhnKing
VALUE
CREATION
MODEL
VALUE
PROPOSITION
MODEL
VALUE
SHARING
(PROFIT)
MODEL
delivers
requires
drives
requires
3-‐ACT
BUSINESS
MODEL
STORYBOARD
Eagle’s
Eye
View
(Generic
Business
Model
Network:
Meso-‐Logic)
Product/Value
ProposiVon
Channels
&
RelaVonships
Customer/Job-‐To-‐Get-‐Done
require(s)
sa'sfy/ies
require(s)
sa'sfy/ies
Inputs/Partners
Internal
Resources
Processes/AcVviVes
require(s)
affect(s)
require(s)
deliver(s)
Cost
(Pain)
Revenue
(Delight)
PROFIT
(VALUE)
requires
drive(s)
delights
49. AGRICULTURE
&
MINING
Industry
SERVICE
Industry
INFRASTRUCTURE/PLATFORM
Management
MANUFACTURING
Industry
PROFIT
MODEL
CLASSIFICATION
SYSTEM
(PMCS)
-‐
By
Industry
(Categories
of
Products/Services)
How
Businesses
Really
Make
Money
and
Win
Business
Model
Compe88ons
in
the
Imita8on
Economy
#VPGen.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hXp://businessmodels.ning.com
&
hXp://twiXer.com/RodKuhnKing
GENERIC
POFIT
MODELS
What
industry
is
the
business
(or
customer)
in?
50. AGRICULTURE
&
MINING
Industry
SERVICE
Industry
INFRASTRUCTURE/PLATFORM
Management
MANUFACTURING
Industry
PROFIT
MODEL
CLASSIFICATION
SYSTEM
(PMCS)
-‐
By
Sector
of
Industry
(Categories
of
Products/Services)
How
Businesses
Really
Make
Money
and
Win
Business
Model
Compe88ons
in
the
Imita8on
Economy
#VPGen.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hXp://businessmodels.ning.com
&
hXp://twiXer.com/RodKuhnKing
GENERIC
PROFIT
MODELS
q Healthcare,
Life
Sciences,
and
Pharmaceu'cals
q Chemicals
Manufacturing
q Autos,
Trucks,
Trains,
Ships,
and
Other
Vehicles
q Consumer
Products
Manufacturing
q Aerospace
&
Defense
q Food,
Beverage,
and
Tobacco
Manufacturing
q Mining,
Metals,
Energy,
U'li'es,
and
Environmental
Services
q Agriculture,
Forestry,
Fishing,
and
Hun'ng
q Insurance
q Food
Services
&
Lodging
q Construc'on
&
Eng.
q Healthcare
q Banking,
Fin.
Markets
&
Services
q Consumer,
Educa'on,
Real
Estate
and
Public
Services
q IT
Services
q Business
&
Consul'ng
Services
q Retail
q Media
&
Entertainment
Note:
The
above
descrip8on
of
sectors
is
based
on
the
IBBCS;
see
hXp://www.industrybuildingblocks.com/Industry-‐Groups.php
q Travel
What
industry
is
the
business
(or
customer)
in?
Who
is
the
customer-‐protagonist
(most
dissa'sfied)?
What
is
the
customer
Job-‐To-‐Get-‐Done?
What
is
the
profit
model
of
the
business
(customer)?
What
are
analogs
and
an'logs
of
the
profit
model?
51. Past
Reality
Business
Profit
Present
Reality
Business
Profit
Future
Reality
Business
Profit
Business
Model
(3_Act)
Business
Model
(3-‐Act)
Business
Model
(3-‐Act)
Industry
Ecosystem
Market
Ecosystem
Business
Model
(3-‐Act)
Macro-‐Economic
Influencers
Key
Trends
&
Complementors
Mission/Vision/
Purpose/Ideals/
Ideal
Final
Result
For
Business
Profit
#VPGen.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hap://businessmodels.ning.com
&
hap://twiaer.com/RodKuhnKing
Strategy
Short/Medium/Long-‐term
3-‐Act
Business
Model
(3BM)
Plan
4
Pivot
Ques'ons
52. Past
Reality
Business
Profit
Present
Reality
Business
Profit
Future
Reality
Business
Profit
#VPGen.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hap://businessmodels.ning.com
&
hap://twiaer.com/RodKuhnKing
Strategy
Short/Medium/Long-‐term
WHAT
to
pivot?
TO
WHAT
to
pivot?
WHY
pivot?
HOW
to
pivot?
3-‐Act
Business
Model
(3BM)
Plan
4
Pivot
Ques'ons
53.
Is
Your
Dream
Business
Idea
Viable?
#VPGen.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hap://businessmodels.ning.com
&
hap://twiaer.com/RodKuhnKing