Melt master's playbook

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MELT MASTER’S PLAYBOOK 1.

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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?