Business Models Interlinked

Page 1

Business Model Correlation 
 At
the
Kaospilots,
we
work
with
many
different
thoughts
and
models
in
our
four
 disciplines
–
Creative
Business,
Project,
Process
and
Leadership
Design,
and
 several
of
these
models
can
be
thought
of
as
directly
interlinked,
even
though
 they
are
made
from
different
schemes
of
thought
and
by
different
people.
 
 By
thinking
these
models
as
part
of
the
same
framework,
and
developing
them
in
 tandem,
they
can
feed
into
each
other
and
enrich
the
understanding
of
each
 other.
 
 The
models
I
will
explain
as
interlinked
in
this
paper
are
business/project
 models:
 • The
Hedgehog
concept
–
Jim
Collins,
Good
to
Great
 • KaosPilot
variant
of
Dee
Hock
Stepping
Stones
–
Dee
Hock/KaosPilot
 • The
Business
Model
Canvas
‐
Alexander
Osterwalder
&
Yves
Pigneur,
 Business
Model
Generation
 • The
Buyer
Utility
Map
–
W.
Chan
Kim,
Renee
Mauborgne,
Blue
Ocean
 Strategy
 • Strategy
Canvas
‐
W.
Chan
Kim,
Renee
Mauborgne,
Blue
Ocean
Strategy
 
 I
will
not
go
into
extensive
explanations
of
each
of
the
models,
but
expect
the
 reader
to
have
knowledge
of
these
models,
or
alternatively
to
dive
into
the
 sources
to
read
the
basic
facts
about
the
models.

The Hedgehog Concept The
Jim
Collins
concept
is
based
on
three
overlapping
circles,
where
you
can
 create
your
best
in
the
center
field
where
all
three
circles
overlap.
 1)
what
you
are
deeply
passionate
about
 2)
what
you
can
be
the
best
in
the
world
at
 3)
what
best
drives
your
economic
engine
–
what
people
want
to
pay
for


The KaosPilot variant of Dee Hock Stepping Stones The
Stepping
Stones
by
Dee
Hock
was
originally
conceived
as
an
organizational
 development
model,
used
iteratively.
Inspired
by
our
work
with
Dee
Hock,
the
 Kaospilot
later
added
two
other
“stones”
to
the
model:
Idea
and
Need,
and
we
are
 now
using
the
model
as
the
basis
for
Preject,
i.e.
getting
all
stakeholders
on
the
 same
page
before
heading
into
praxis
in
a
Project.


The Business Model Canvas The
Business
Model
Canvas
is
a
great
framework
for
creating
the
overview
of
the
 business
engine
behind
a
business
idea.
It
requires
the
user
to
think
of
both
the
 value
creation
part
and
the
organizational
and
cost
structure
part
of
a
business.


The Buyer Utility Map The
Buyer
Utility
Map
from
Blue
Ocean
Strategy
was
originally
published
in
 Harvard
Business
Review
in
an
article
titled:
“Knowing
a
Winning
Business
Idea
 When
You
See
One”.
The
map
is
a
matrix
with
6
distinctive
steps
in
the
users
 experience
with
the
product/service
on
the
horizontal
axe:
Purchase,
Delivery,
 Use,
Supplements,
Maintenance,
Disposal.
And
6
Utility
Levers
on
the
vertical
 axe:
Customer
Productivity,
Simplicity,
Convenience,
Risk,
Fun
and
Image,
 Environmental
Friendliness.
 
 The
point
of
the
Utility
Map
is
that
you’ll
have
to
be
able
to
show
that
you
are
 doing
something
new/different
from
the
competition
in
at
least
one
of
the
fields
 in
the
matrix
to
claim
you
have
a
winning
business
idea.


Blue Ocean Strategy Canvas A
graphical
“analysis”
of
the
way
your
competitors
and
the
market
are
fulfilling
 the
customer’s
needs,
and
the
way
you
are.
Often
to
create
a
blue
ocean
is
about
 reframing
the
questions,
and
perceiving
the
product/service/customer
need
 from
a
new
angle,
i.e.
when
you
are
selling
short
distance
flights,
are
you
then
 competing
with
business
class
or
are
you
competing
with
train
and
car
travel?


Correlation between models The
models
and
concepts
are
correlating,
so
by
developing
them
in
tandem
and
 using
the
models
to
consistency
checking
each
other,
you
will
gain
a
deeper
 understanding
of
your
business
concept
and
a
more
consistent
basis
for
 communicating
and
developing
your
business
idea.
 
 Starting
with
the
Hedgehog
Concept
(HC),
your
Dreams
should
feed
directly
into
 your
Idea
in
the
Stepping
Stone
Model
(SS).
 
 Your
analysis
of
the
Need
in
the
SS
will
give
you
two
answers:
 Who
needs
it,
and
thus
What
will
they
pay
for.
 The
What
should
be
consistent
with
the
economic
drivers
in
the
HC,
The
Who
 needs
it
will
feed
directly
into
the
Customer
Segment
in
the
Business
Model
 Canvas
(BMC)
 
 The
Economic
driver/Pay
for
in
the
HC
will
fuel
your
Value
Proposition
in
the
 BMC,
and
also
feed
the
Revenue
Stream
in
BMC.
 
 And
staying
with
the
HC,
the
Best
at
will
feed
directly
into
the
Key
Activities
and
 the
Key
Resources
in
the
BMC.
 
 And
this
will
later
in
your
work
with
BMC
help
you
define
your
Key
Partners,
 because
they
are
the
ones
who
should
cover
all
the
Key
Activities,
that
are
 necessary
for
creating
the
business,
but
you
and
your
team
are
not
doing.


Taking
it
a
step
further
you
can
look
at
the
right
hand
side
of
the
BMC,
i.e.
the
 value
creation
part.
This
part
must
be
consistent
with
your
Concept
in
the
SS.
 
 And
the
Team
in
the
SS
model
shall
be
consistent
with/give
you
input
to
your
 definition
of
Key
Resources
and
Key
Partners
in
the
BMC.
 
 The
Left
hand
side
of
the
BMC,
i.e.
the
engine
behind,
and
cost
of
the
Value
 Creation
will
feed
into
the
Structure
of
the
SS
model.


Finally
The
Buyer
Utility
Map
(BUM)
will
also
feed
directly
into
your
Value
 Proposition
in
your
BMC.

 
 The
fields
in
the
BUM
where
your
offers
are
distinctly
different
from
the
rest
of
 the
market/competition,
will
be
the
areas
in
your
Blue
Ocean
Strategy
Canvas
 (SC),
where
you
are
either
opposite
of
the
competition
or
where
there
is
no
 competition
at
all
because
you
are
looking
at
the
market
and
service
in
a
new
 way,
i.e.
your
Blue
Ocean.


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