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MELT MASTER’S PLAYBOOK 1. 0
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BY MIIKK A LEINONEN
WWW.MIIKKALEINONEN.COM
VERSION 1.0
As material and immaterial worlds melt, new business opportunities arise.
IMMATERIAL HAVES
BY MIIKKA LEINONEN
Emotions, Competence, Knowledge, Authority, Intelligence, Imagination, Talent, Insight, Loyalty, Creativity...
– Miikka Leinonen
IMMATERIAL NEEDS Emotions, Fame, Enjoyment, Sense of freedom, Sense of belonging, Sense of community, Competence, Recognition, Admiration, Curiosity…
IMMATERIAL RESOURCES
IMMATERIAL EFFECT
What assets would you like to combine with your service?
How do you amplify the immaterial world?
ECOSYSTEM What partners and features connect with the resources and offering? Are they controlled by providers or customers?
MATERIAL RESOURCES
MATERIAL EFFECT
MATERIAL SURROUNDINGS
MATERIAL NEEDS
COST STRUCTURE
REVENUE STREAMS
What can you incorporate into your service?
Objects, Actions, Places, Change of current status…
W W W.MIIKKALEINONEN. COM VERSION 1.2
People, Objects, Actions, Places...
How will you shape the material world?
Melt Frame is a strategy facilitation and innovation tool.
What is Melt Frame?
Products become services.
Core idea?
OUR WORLD IS BECOMING IMMATERIAL.
What this means for companies.
Services become communities. Ownership becomes blurred. New ecosystem roles disrupt businesses.
Frame MATERIAL WORLD
IMMATERIAL WORLD
E.G. OBJECTS AND ACTIONS
E.G. TALENT, EMOTIONS AND COMEPTENCE
THIS IS WHERE THEY
MELT
Use of the frame IMMATERIAL LOOP ECOSYSTEM MATERIAL LOOP
Can I modify it?
The worlds are interconnected through loops. Follow the loops, and you may find some surprising insight.
Of course! Do what ever you want with it. Be creative!
Based on the visual strategy book Melt by Miikka Leinonen
MELT MASTER’S PLAYBOOK BY MIIKK A LEINONEN
BASIC SERVICE ANALYSIS
6
MATERIAL EFFECT
8
IMMATERIAL EFFECT
10
MATERIAL RESOURCES
12
IMMATERIAL RESOURCES
14
ECOSYSTEM ROLES
16
EPIPHYTE STRATEGY
18
CREATING DATA RESOURCES
20
COSTS AND REVENUE
22
EXTRA TOOLS
24
This is a beta version of the Melt Master’s Playbook. Let me know what should be added or clarified. – Miikka
BASIC SERVICE ANALYSIS IMMATERIAL HAVES
IMMATERIAL NEEDS
Emotions, Competence, Knowledge, Authority, Intelligence, Imagination, Talent, Insight, Loyalty, Creativity...
Emotions, Fame, Enjoyment, Sense of freedom, Sense of belonging, Sense of community, Competence, Recognition, Admiration, Curiosity…
IMMATERIAL RESOURCES
IMMATERIAL EFFECT
What assets would you like to combine with your service?
How do you amplify the immaterial world?
3
6
ECOSYSTEM
7
What partners and features connect with the resources and offering? Are they controlled by providers or customers?
4
1
4 7
MATERIAL RESOURCES
MATERIAL EFFECT
What can you incorporate into your service?
How will you shape the material world?
5
MATERIAL SURROUNDINGS
MATERIAL NEEDS
COST STRUCTURE
REVENUE STREAMS
People, Objects, Actions, Places...
6
2
Objects, Actions, Places, Change of current status…
BASIC SERVICE ANALYSIS This exercise gets you started. Do this as a first thing if you are developing a service or brand.
START HERE
Add the name of your service or brand in the center.
1
Think simple.
2
Add material effect.
Add immaterial effect.
3
What the service or brand delivers? Something concrete, e.g. Makes cooking simple.
What emoties or knowledge does it deliver? e.g. Enjoyment or Cooking skills.
4
Add material resources.
5
e.g. Food ingredients and Pots and pans.
6
Add features and partnerships that melt the resources to your service.
Add features and partnerships that produce the effect. e.g. Skype cooking class and Online community supportâ&#x20AC;?.
Add immaterial resources.
e.g. Talent of amateur chefs and Past experieces.
7
e.g. Beginners cooking package and 24/7 mentoring chat app. Critical thinking: What does the REALISTIC ecosystem look like?
ANALYZE Discuss why this differs from reality.
NO
Does this portray your key features and partnerships correctly?
YES
GO TO MATERIAL EFFECT
8
Critical thinking: Are you wasting your energy in things that have no real impact?
DIFFICULTY
TIME
10 min.
7
MATERIAL EFFECT IMMATERIAL HAVES
Emotions, Competence, Knowledge, Authority, Intelligence, Imagination, Talent, Insight, Loyalty, Creativity...
IMMATERIAL NEEDS Emotions, Fame, Enjoyment, Sense of freedom, Sense of belonging, Sense of community, Competence, Recognition, Admiration, Curiosity…
IMMATERIAL RESOURCES
IMMATERIAL EFFECT
What assets would you like to combine with your service?
How do you amplify the immaterial world?
ECOSYSTEM What partners and features connect with the resources and offering? Are they controlled by providers or customers?
MATERIAL RESOURCES
MATERIAL EFFECT
What can you incorporate into your service?
How will you shape the material world?
1
MATERIAL SURROUNDINGS
MATERIAL NEEDS
People, Objects, Actions, Places...
Objects, Actions, Places, Change of current status…
2
COST STRUCTURE
8
REVENUE STREAMS
MATERIAL EFFECT How does your service or brand affect the material world? How well does it meet customer needs?
START HERE
Look into your brand promise and value proposition.
List material effects.
1
What does the service or brand deliver? Something concrete, e.g. Makes cooking simple.
2
List customer’s material needs. You can always reverse-engineer your service. Start from customer needs.
What do your customers want? E.g. Save time and Organized life. NEED MAPPER
Don’t start guessing. Ask them.
GO TO IMMATERIAL EFFECT If not sure what needs are material and 25 what immaterial, try Needs mapper.
10
YES
YES
Does your service create something unforeseen that has value for new customers?
Do you want to reshape your service?
NO
Find new customers that mach your offering.
Do your material effects match with customer needs?
NO
NO
Have you created new material resources? E.g. Cooking class creates food. What can you do with that?
GO TO MATERIAL RESOURCES
22
GO TO COSTS AND REVENUES
12
DIFFICULTY
Ready for bean counting?
YES
TIME
20 min.
9
IMMATERIAL EFFECT IMMATERIAL HAVES
Emotions, Competence, Knowledge, Authority, Intelligence, Imagination, Talent, Insight, Loyalty, Creativity...
IMMATERIAL NEEDS Emotions, Fame, Enjoyment, Sense of freedom, Sense of belonging, Sense of community, Competence, Recognition, Admiration, Curiosity…
2
IMMATERIAL RESOURCES
IMMATERIAL EFFECT
What assets would you like to combine with your service?
1
How do you amplify the immaterial world?
ECOSYSTEM What partners and features connect with the resources and offering? Are they controlled by providers or customers?
MATERIAL RESOURCES
MATERIAL EFFECT
MATERIAL SURROUNDINGS
MATERIAL NEEDS
COST STRUCTURE
REVENUE STREAMS
What can you incorporate into your service?
People, Objects, Actions, Places...
10
How will you shape the material world?
Objects, Actions, Places, Change of current status…
IMMATERIAL EFFECT How does your service make people feel? Does it support their world view, or create sense of belonging? Does it add knowledge?
START HERE
List immaterial effects.
1
What emoties or knowledge does it deliver? e.g. Enjoyment or Cooking skills.
2
Don’t start guessing. Ask them.
List customer’s material needs.
E.g. Happiness, Trust, “What do your Meaning, Passion, customers want? ” knowledge, Talent...
You can always reverse-engineer your service. Start from customer needs.
NEED MAPPER Don’t start guessing. Ask them.
If not sure what needs are material and 25 what immaterial, try Needs mapper.
YES
Does your service create something unforeseen that has value for new customers?
Do you want to reshape your service?
NO
Do your immaterial effects match with customer needs?
NO
12
Find new customers that mach your offering.
DIFFICULTY
YES
GO TO IMMATERIAL RESOURCES
TIME
20 min.
11
MATERIAL RESOURCES IMMATERIAL HAVES
Emotions, Competence, Knowledge, Authority, Intelligence, Imagination, Talent, Insight, Loyalty, Creativity...
IMMATERIAL NEEDS Emotions, Fame, Enjoyment, Sense of freedom, Sense of belonging, Sense of community, Competence, Recognition, Admiration, Curiosity…
IMMATERIAL RESOURCES
IMMATERIAL EFFECT
What assets would you like to combine with your service?
How do you amplify the immaterial world?
ECOSYSTEM What partners and features connect with the resources and offering? Are they controlled by providers or customers?
2
MATERIAL RESOURCES
MATERIAL EFFECT
What can you incorporate into your service?
How will you shape the material world?
1
MATERIAL SURROUNDINGS
MATERIAL NEEDS
COST STRUCTURE
REVENUE STREAMS
People, Objects, Actions, Places...
12
Objects, Actions, Places, Change of current status…
MATERIAL RESOURCES Cars, houses, meetings, jogging, power grid, weather, nature, production. What tangible creates the base of your business?
START HERE
Data is a simple aditional resourse for any service. See where you can extract that.
List material resources.
1
e.g. Food ingredients, Pots and pans or User data.
2
Add features and partnerships that connect resourses to your service.
e.g. Beginners cooking package.
Donâ&#x20AC;&#x2122;t limit yourself to the obvious. Competing products are a resource too.
Want to find more resources?
NO
GO TO IMMATERIAL RESOURCES
14
YES
TRY RESOURCE MAPPER
Resource mapper helps you to find 25 elements to use as part of your service.
DIFFICULTY
TIME
15 min.
13
IMMATERIAL RESOURCES IMMATERIAL HAVES
Emotions, Competence, Knowledge, Authority, Intelligence, Imagination, Talent, Insight, Loyalty, Creativity...
IMMATERIAL NEEDS Emotions, Fame, Enjoyment, Sense of freedom, Sense of belonging, Sense of community, Competence, Recognition, Admiration, Curiosity…
1
IMMATERIAL RESOURCES
4
What assets would you like to combine with your service?
IMMATERIAL EFFECT How do you amplify the immaterial world?
2
3
5
MATERIAL RESOURCES
MATERIAL EFFECT
MATERIAL SURROUNDINGS
MATERIAL NEEDS
COST STRUCTURE
REVENUE STREAMS
What can you incorporate into your service?
People, Objects, Actions, Places...
14
ECOSYSTEM What partners and features connect with the resources and offering? Are they controlled by providers or customers?
How will you shape the material world?
Objects, Actions, Places, Change of current status…
IMMATERIAL RESOURCES The big guestion stands: “How do you activate immaterial elements and guide them to be part of your service.” This is super important for community-building and generating unigue “soft data” about peoples’ desires and opinions.
START HERE
This can be a bit tricky. Take your time.
List immaterial haves.
1
What immaterial people have? E.g. Emotions, Talent, Experience...
2
Add features and partnerships that combine haves with your service.
Moving immaterial elements could need both push and pull.
Select elements you would like to have in your service.
E.g. Excellent cooking talent, Enthusiasm...
3
E.g. “Rate peoples’ food pics and give them development ideas”.
Add features and partnerships that produce desired effect.
Is that enough to get the haves moving?
5
NO
List immaterial effects you have to produce to create immaterial resources.
YES
GO TO ECOSYSTEM ROLES
16
TRY SELF-DETERMINATION THEORY
4
What activates us? Find the right combination of motivators.
DIFFICULTY
TIME
24
30 min.
15
ECOSYSTEM ROLES IMMATERIAL HAVES
Emotions, Competence, Knowledge, Authority, Intelligence, Imagination, Talent, Insight, Loyalty, Creativity...
IMMATERIAL NEEDS Emotions, Fame, Enjoyment, Sense of freedom, Sense of belonging, Sense of community, Competence, Recognition, Admiration, Curiosity…
IMMATERIAL RESOURCES
IMMATERIAL EFFECT
What assets would you like to combine with your service?
How do you amplify the immaterial world?
ECOSYSTEM What partners and features connect with the resources and offering? Are they controlled by providers or customers?
2
1
MATERIAL RESOURCES
MATERIAL EFFECT
MATERIAL SURROUNDINGS
MATERIAL NEEDS
COST STRUCTURE
REVENUE STREAMS
What can you incorporate into your service?
People, Objects, Actions, Places...
16
How will you shape the material world?
Objects, Actions, Places, Change of current status…
ECOSYSTEM ROLES Are you a control freak? Or can you move away from the world of scarcity and accept other stakeholders as equal owners of the service? Sharing economy, for example, is founded on the idea of shared control. The ecosystem roles you choose can accelerate your service’s impact immensely.
START HERE
Remove all partnerships and features from the frame.
1 Put them back one-by-one and ask the question...
2 Top part of the ecosystem is open. Ownership is shared or controlled by the customers. Bottom part is controlled and owned by one entity (maybe you).
YOU or some other controller.
Ownership can mean “sense of ownership”. People, for example, feel they own their Facebook wall.
Who has the ownership of the feature?
Try internal view. Do employees own their work?
CUSTOMERS or no-one defined. You can split features, e.g. user owned profiles and marketing profiles.
Rule of thumb: More open -> More scalable and better connection with the immaterial world. More closed -> better chances of making money.
Assess how this reflects to resources and effects.
14
12
GO TO IMMATERIAL RESOURCES
GO TO IMMATERIAL EFFECTS
GO TO MATERIAL RESOURCES
GO TO MATERIAL EFFECTS
10
8
22
GO TO REVENUE AND COSTS
DIFFICULTY
TIME
30 min.
17
EPIPHYTE STRATEGY IMMATERIAL HAVES
IMMATERIAL NEEDS
Emotions, Competence, Knowledge, Authority, Intelligence, Imagination, Talent, Insight, Loyalty, Creativity...
Emotions, Fame, Enjoyment, Sense of freedom, Sense of belonging, Sense of community, Competence, Recognition, Admiration, Curiosity…
IMMATERIAL RESOURCES
IMMATERIAL EFFECT
What assets would you like to combine with your service?
2
5
2
How do you amplify the immaterial world?
ECOSYSTEM What partners and features connect with the resources and offering? Are they controlled by providers or customers?
3
6
1
3 3
MATERIAL RESOURCES
MATERIAL EFFECT
What can you incorporate into your service?
How will you shape the material world?
2
2
4
MATERIAL SURROUNDINGS
MATERIAL NEEDS
COST STRUCTURE
REVENUE STREAMS
People, Objects, Actions, Places...
18
Objects, Actions, Places, Change of current status…
EPIPHYTE STRATEGY Company can function merely as an epiphyte in the ecosystem of others. But once it is part of the ecosystem it can actively try to find new roles.
START HERE “Epiphyte is a plant that grows on another plant, especially one that is not parasitic. E.g. orchids growing on tree trunks in tropical rainforests.”
Add the name of your customer’s service or brand in the center.
1 Add effects and resources.
2
SEE EXAMPLES
Add service’s key features and partners. SEE EXAMPLES
What new material or immaterial effect could you produce?
e.g. Trust and flexibility.
8
14
3 6
4
Add your primary role in the mix.
5
For example: Material resource, e.g. Transportation service.
What new service feature could you offer your customer.
6
E.g. Tracking service.
Examine what else you could deliver and what other ecosystem roles you could adopt.
22
GO TO REVENUE AND COSTS
DIFFICULTY
TIME
20 min.
19
CREATING DATA RESOURCES IMMATERIAL HAVES
Emotions, Competence, Knowledge, Authority, Intelligence, Imagination, Talent, Insight, Loyalty, Creativity...
IMMATERIAL NEEDS Emotions, Fame, Enjoyment, Sense of freedom, Sense of belonging, Sense of community, Competence, Recognition, Admiration, Curiosity…
IMMATERIAL RESOURCES
IMMATERIAL EFFECT
What assets would you like to combine with your service?
How do you amplify the immaterial world?
ECOSYSTEM What partners and features connect with the resources and offering? Are they controlled by providers or customers?
2
MATERIAL RESOURCES What can you incorporate into your service?
MATERIAL EFFECT How will you shape the material world?
MATERIAL SURROUNDINGS
MATERIAL NEEDS
COST STRUCTURE
REVENUE STREAMS
People, Objects, Actions, Places...
20
1
Objects, Actions, Places, Change of current status…
CREATING DATA RESOURCES What about data? All services produce it. It’s not material but it’s not immaterial either? What should be done with it?
START HERE
Add data generated by the service.
Make it public and free.
1
e.g. Profile views or chat volumes.
NO
YES
Can the data be used as a resource for the original service?
NO
Can the data be used as a resource for some other service?
YES
2
Add features that utilize the data.
e.g. Personalized recommendations.
In many cases it’s clearer to start a new frame.
6
18
GO TO
GO TO EPIPHYTE STRATEGY
BASIC SERVICE ANALYSIS
DIFFICULTY
TIME
20 min.
21
COSTS AND REVENUE IMMATERIAL HAVES
Emotions, Competence, Knowledge, Authority, Intelligence, Imagination, Talent, Insight, Loyalty, Creativity...
IMMATERIAL NEEDS Emotions, Fame, Enjoyment, Sense of freedom, Sense of belonging, Sense of community, Competence, Recognition, Admiration, Curiosity…
IMMATERIAL RESOURCES
IMMATERIAL EFFECT
What assets would you like to combine with your service?
How do you amplify the immaterial world?
ECOSYSTEM What partners and features connect with the resources and offering? Are they controlled by providers or customers?
MATERIAL RESOURCES
MATERIAL EFFECT
MATERIAL SURROUNDINGS
MATERIAL NEEDS
COST STRUCTURE
REVENUE STREAMS
What can you incorporate into your service?
How will you shape the material world?
People, Objects, Actions, Places...
22
Objects, Actions, Places, Change of current status…
1
COSTS AND REVENUE Money is a metric for the material world. Using immaterial elements to drive change in the material world is the key to greater profits.
1 Estimate costs and revenues.
Ability to affect the material world always creates an opportunity make profit.
Melt Frame is an ideation and strategy tool. It does not explicitly state which actions generate costs or revenues.
ELEMENTS IN THESE AREAS ARE MORE LIKELY TO GENERATE...
Immaterial elements add value, e.g. loyalty, brand awareness, sense of ownership...
REVENUE
Harnessing more immaterial elements, e.g. talent and emotions, is a valuabe thing, but you might have to sacrifice some profits, e.g. freemium strategy.
REVENUE& COSTS
COSTS
The right ecosystem roles either make or break your business.
In the end itâ&#x20AC;&#x2122;s up to your creativity.
Moving material elements typically requires some investments.
DIFFICULTY
TIME
30 min.
23
EXTRA TOOLS 1
Need Mapper helps you to collect all needs and divide them into material and immaterial.
Make a Need Mapper for each stakeholder.
NEED MAPPER
BY MIIKKA LEINONEN
E.g. Professional cook, Barbeque enthusiast, Amateur chef, ...
2 3
List all his needs (rougly related to the topic).
3
New skills, sense of belonging, facilites, new ideas, customers
1 2
3 Divide them into material and immaterial needs. You might have to unbundle some of them.
What gets people excited? What makes them jump into action? What motivates them to share and care?
SELF-DETERMINATION THEORY Sense of responsibility towards community and altruistic motives.
1 BY MIIKKA LEINONEN
Curiosity and enjoyment-related motives.
Figure out what motivates your customers. Some want to be admired, some want to help and some like the shiny things.
1
2 Reputation and fame-related motives.
Reward-related (financial or other) motives.
Take these motivators back to the Frame Pair motivators and your service features. Are you offering a path for altruism? Are you making your customers look good in the eyes of their peers?
24
EXTRA TOOLS Pick a part of your business and find out what can be made more immaterial?
RESOURCE MAPPER
BY MIIKKA LEINONEN
EXTRACT
1 List all components of a material process. e.g. purchase process, development process, use of your product...
2 Find what you can “immaterialize”
What intangible can be extracted? e.g. actions produces data.
2
BUNDLE What parts can be combined with something more immaterial?
REPLACE What parts can be replaced with something more immaterial? e.g. product replaced with a service.
MATERIAL SURROUNDINGS Map e.g. development process, use of the product...
1 e.g. replace experts with crowdsourcing.
Are you changing the world or just fine-tuning your business? This helps you to estimate the results.
EFFECT EVALUATION CREATES NEW
INCREASES
BY MIIKKA LEINONEN
DECREASES
Estimate the impact of your service to material surroundings.
ELIMINATES Are you disrupting a business or not?
Disruption
Disruption
25
Curiosity and enjoyment-related motives.
Reward-related (financial or other) motives.
Reputation and fame-related motives.
BY MIIKKA LEINONEN
Sense of responsibility towards community and altruistic motives.
SELF-DETERMINATION THEORY
NEED MAPPER BY MIIKKA LEINONEN
Map e.g. development process, use of the product...
MATERIAL SURROUNDINGS
What parts can be replaced with something more immaterial? e.g. product replaced with a service.
REPLACE
What parts can be combined with something more immaterial?
BUNDLE
What intangible can be extracted? e.g. actions produces data.
EXTRACT
RESOURCE MAPPER BY MIIKKA LEINONEN
CREATES NEW
INCREASES
EFFECT EVALUATION DECREASES
ELIMINATES
BY MIIKKA LEINONEN
YOUR TOOL
YOUR TOOL
As material and immaterial worlds melt, new business opportunities arise.
IMMATERIAL HAVES
BY MIIKKA LEINONEN
Emotions, Competence, Knowledge, Authority, Intelligence, Imagination, Talent, Insight, Loyalty, Creativity...
– Miikka Leinonen
IMMATERIAL NEEDS Emotions, Fame, Enjoyment, Sense of freedom, Sense of belonging, Sense of community, Competence, Recognition, Admiration, Curiosity…
IMMATERIAL RESOURCES
IMMATERIAL EFFECT
What assets would you like to combine with your service?
How do you amplify the immaterial world?
ECOSYSTEM What partners and features connect with the resources and offering? Are they controlled by providers or customers?
MATERIAL RESOURCES
MATERIAL EFFECT
MATERIAL SURROUNDINGS
MATERIAL NEEDS
COST STRUCTURE
REVENUE STREAMS
What can you incorporate into your service?
Objects, Actions, Places, Change of current status…
W W W.MIIKKALEINONEN. COM VERSION 1.2
People, Objects, Actions, Places...
How will you shape the material world?