business model cybernetics: simply create, deliver, and share awesome customer experiences (aces)

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#4ROD. Dr. Rod King. [email protected] & h8p://businessmodels.ning.com & h8p://twi8er.com/RodKuhnKing BUSINESS MODEL CYBERNETICS Simply Create, Deliver, and Share Awesome Customer Experiences (ACEs) Living System Dashboard ENVIRONMENT (IDEAL FINAL RESULT/VISION/GOAL/SUCCESS CRITERIA) SUPERSYSTEM SYSTEM (Chain & Hierarchy of Jobs To Get Done)

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Page 1: BUSINESS MODEL CYBERNETICS: Simply Create, Deliver, and Share Awesome Customer Experiences (ACEs)

 #4ROD.  Dr.  Rod  King.  [email protected]  &  h8p://businessmodels.ning.com  &  h8p://twi8er.com/RodKuhnKing  

BUSINESS  MODEL  CYBERNETICS    

Simply  Create,  Deliver,  and  Share  Awesome  Customer  Experiences  (ACEs)  

Living  System  Dashboard  

ENVIRONMENT   (IDEAL  FINAL  RESULT/VISION/GOAL/SUCCESS  CRITERIA)  

SUPERSYSTEM  

SYSTEM  (Chain  &  Hierarchy  of  Jobs  To  Get  Done)  

Page 2: BUSINESS MODEL CYBERNETICS: Simply Create, Deliver, and Share Awesome Customer Experiences (ACEs)

 #4ROD.  Dr.  Rod  King.  [email protected]  &  h8p://businessmodels.ning.com  &  h8p://twi8er.com/RodKuhnKing  

BUSINESS  MODEL  CYBERNETICS    

ENVIRONMENT   (IDEAL  FINAL  RESULT/VISION/GOAL/SUCCESS  CRITERIA)  

PROCESSOR  (Tool/Org.;  

Func@onality)  

INPUT  (Ideas/  

Resources)  

OUTPUT  (Trade-­‐off/  Experience)  

Simply  Create,  Deliver,  and  Share  Awesome  Customer  Experiences  (ACEs)  

SUPERSYSTEM  

SYSTEM  (Chain  &  Hierarchy  of  Jobs  To  Get  Done)  

Living  System  Dashboard  

Page 3: BUSINESS MODEL CYBERNETICS: Simply Create, Deliver, and Share Awesome Customer Experiences (ACEs)

 #4ROD.  Dr.  Rod  King.  [email protected]  &  h8p://businessmodels.ning.com  &  h8p://twi8er.com/RodKuhnKing  

BUSINESS  MODEL  CYBERNETICS    

ENVIRONMENT   (IDEAL  FINAL  RESULT/VISION/GOAL/SUCCESS  CRITERIA)  

INPUT  (Ideas/  

Resources)  

Feedback(Strategy/TacIcs)  

OUTPUT  (Trade-­‐off/  Experience)  

+   -­‐  

Simply  Create,  Deliver,  and  Share  Awesome  Customer  Experiences  (ACEs)  

PROCESSOR  (Tool/Org.;  

Func@onality)  

SUPERSYSTEM  

SYSTEM  (Chain  &  Hierarchy  of  Jobs  To  Get  Done)  

Living  System  Dashboard  

Page 4: BUSINESS MODEL CYBERNETICS: Simply Create, Deliver, and Share Awesome Customer Experiences (ACEs)

 #4ROD.  Dr.  Rod  King.  [email protected]  &  h8p://businessmodels.ning.com  &  h8p://twi8er.com/RodKuhnKing  

BUSINESS  MODEL  CYBERNETICS    

ENVIRONMENT   (IDEAL  FINAL  RESULT/VISION/GOAL/SUCCESS  CRITERIA)  

INPUT  (Ideas/  

Resources)  

Learn  (Strategy/TacIcs)  

OUTPUT  (Trade-­‐off/  Experience)  

+   -­‐  

Simply  Create,  Deliver,  and  Share  Awesome  Customer  Experiences  (ACEs)  

PROCESSOR  (Tool/Org.;  

Func@onality)  

SUPERSYSTEM  

SYSTEM  (Chain  &  Hierarchy  of  Jobs  To  Get  Done)  

“Fake  XP”/Build  

Living  System  Dashboard  

Test  XP/Measure  

Page 5: BUSINESS MODEL CYBERNETICS: Simply Create, Deliver, and Share Awesome Customer Experiences (ACEs)

 #4ROD.  Dr.  Rod  King.  [email protected]  &  h8p://businessmodels.ning.com  &  h8p://twi8er.com/RodKuhnKing  

BUSINESS  MODEL  CYBERNETICS    

ENVIRONMENT   (IDEAL  FINAL  RESULT/VISION/GOAL/SUCCESS  CRITERIA)  

INPUT  (Ideas/  

Resources)  

Learn  (Strategy/TacIcs)  

OUTPUT  (Trade-­‐off/  Experience)  

+   -­‐  

CUSTOMER

S  

SUPP

LIER

S  Simply  Create,  Deliver,  and  Share  Awesome  Customer  Experiences  (ACEs)  

(IN)DIRECT  COMPETITORS  (Subs@tutes/Complements)  

NEW  ENTRANTS  (Startups)  

PROCESSOR  (Tool/Org.;  

Func@onality)  

SUPERSYSTEM  

SYSTEM  (Chain  &  Hierarchy  of  Jobs  To  Get  Done)  

Living  System  Dashboard  

“Fake  XP”/Build   Test  XP/Measure  

Page 6: BUSINESS MODEL CYBERNETICS: Simply Create, Deliver, and Share Awesome Customer Experiences (ACEs)

 #4ROD.  Dr.  Rod  King.  [email protected]  &  h8p://businessmodels.ning.com  &  h8p://twi8er.com/RodKuhnKing  

BUSINESS  MODEL  CYBERNETICS    

ENVIRONMENT   (IDEAL  FINAL  RESULT/VISION/GOAL/SUCCESS  CRITERIA)  

Learn  (Strategy/TacIcs)  

INPUT  (Ideas/  

Resources)  

+   -­‐  

OUTPUT  (Trade-­‐off/  Experience)  SU

PPLIER

S  

CUSTOMER

S  

Simply  Create,  Deliver,  and  Share  Awesome  Customer  Experiences  (ACEs)  

(IN)DIRECT  COMPETITORS  (Subs@tutes/Complements)  

NEW  ENTRANTS  (Startups)  

PROCESSOR  (Tool/Org.;  

Func@onality)  

SUPERSYSTEM  

SYSTEM  (Chain  &  Hierarchy  of  Jobs  To  Get  Done)  

Living  System  Dashboard  

“Fake  XP”/Build   Test  XP/Measure  

Page 7: BUSINESS MODEL CYBERNETICS: Simply Create, Deliver, and Share Awesome Customer Experiences (ACEs)

 #4ROD.  Dr.  Rod  King.  [email protected]  &  h8p://businessmodels.ning.com  &  h8p://twi8er.com/RodKuhnKing  

BUSINESS  MODEL  CYBERNETICS    

ENVIRONMENT   (IDEAL  FINAL  RESULT/VISION/GOAL/SUCCESS  CRITERIA)  

PROCESSOR    

Learn  (Strategy/TacIcs)  

INPUT  

+   -­‐  

OUTPUT  

KP  

VP  KA  KR  

CS  R$   C$  

CH  

CR   CUSTOMER

S  

SUPP

LIER

S  Simply  Create,  Deliver,  and  Share  Awesome  Customer  Experiences  (ACEs)  

(IN)DIRECT  COMPETITORS  (Subs@tutes/Complements)  

NEW  ENTRANTS  (Startups)  

SUPERSYSTEM  

SYSTEM  (Chain  &  Hierarchy  of  Jobs  To  Get  Done)  

Living  System  Dashboard  

“Fake  XP”/Build   Test  XP/Measure  

Page 8: BUSINESS MODEL CYBERNETICS: Simply Create, Deliver, and Share Awesome Customer Experiences (ACEs)

 #4ROD.  Dr.  Rod  King.  [email protected]  &  h8p://businessmodels.ning.com  &  h8p://twi8er.com/RodKuhnKing  

BUSINESS  MODEL  CYBERNETICS    

ENVIRONMENT   (IDEAL  FINAL  RESULT/VISION/GOAL/SUCCESS  CRITERIA)  

PROCESSOR    

Learn  (Strategy/TacIcs)  

INPUT  

+   -­‐  

OUTPUT  

KP  

VP  KA  KR  

CS  R$   C$  

CH  

CR   CUSTOMER

S  

SUPP

LIER

S  Simply  Create,  Deliver,  and  Share  Awesome  Customer  Experiences  (ACEs)  

(IN)DIRECT  COMPETITORS  (Subs@tutes/Complements)  

NEW  ENTRANTS  (Startups)  SYSTEM  (Chain  &  Hierarchy  of  Jobs  To  Get  Done)  

Living  System  Dashboard  

“Fake  XP”/Build   Test  XP/Measure  

Page 9: BUSINESS MODEL CYBERNETICS: Simply Create, Deliver, and Share Awesome Customer Experiences (ACEs)

 #4ROD.  Dr.  Rod  King.  [email protected]  &  h8p://businessmodels.ning.com  &  h8p://twi8er.com/RodKuhnKing  

BUSINESS  MODEL  CYBERNETICS    

ENVIRONMENT   (IDEAL  FINAL  RESULT/VISION/GOAL/SUCCESS  CRITERIA)  

PROCESSOR    

Learn  (Strategy/TacIcs)  

INPUT  

+   -­‐  

OUTPUT  

KP  

VP  KA  KR  

CS  R$   C$  

CH  

CR   CUSTOMER

S  

SUPP

LIER

S  Simply  Create,  Deliver,  and  Share  Awesome  Customer  Experiences  (ACEs)  

(IN)DIRECT  COMPETITORS  (Subs@tutes/Complements)  

NEW  ENTRANTS  (Startups)  SYSTEM  (Chain  &  Hierarchy  of  Jobs  To  Get  Done)  

Living  System  Dashboard  

“Fake  XP”/Build   Test  XP/Measure  

Page 10: BUSINESS MODEL CYBERNETICS: Simply Create, Deliver, and Share Awesome Customer Experiences (ACEs)

 #4ROD.  Dr.  Rod  King.  [email protected]  &  h8p://businessmodels.ning.com  &  h8p://twi8er.com/RodKuhnKing  

BUSINESS  MODEL  CYBERNETICS    

ENVIRONMENT   (IDEAL  FINAL  RESULT/VISION/GOAL/SUCCESS  CRITERIA)  

PROCESSOR    

Learn  (Strategy/TacIcs)  

INPUT  

+   -­‐  

OUTPUT  

KP  

VP  KA  KR  

CS  R$   C$  

CH  

CR   CUSTOMER

S  

SUPP

LIER

S  Simply  Create,  Deliver,  and  Share  Awesome  Customer  Experiences  (ACEs)  

(IN)DIRECT  COMPETITORS  (Subs@tutes/Complements)  

NEW  ENTRANTS  (Startups)  SYSTEM  (Chain  &  Hierarchy  of  Jobs  To  Get  Done)  

Living  System  Dashboard  

“Fake  XP”/Build   Test  XP/Measure  

Page 11: BUSINESS MODEL CYBERNETICS: Simply Create, Deliver, and Share Awesome Customer Experiences (ACEs)

 #4ROD.  Dr.  Rod  King.  [email protected]  &  h8p://businessmodels.ning.com  &  h8p://twi8er.com/RodKuhnKing  

BUSINESS  MODEL  CYBERNETICS    

ENVIRONMENT   (IDEAL  FINAL  RESULT/VISION/GOAL/SUCCESS  CRITERIA)  

PROCESSOR    

Learn  (Strategy/TacIcs)  

INPUT  

+   -­‐  

OUTPUT  

KP  

VP  KA  KR  

CS  R$   C$  

CH  

CR   CUSTOMER

S  

SUPP

LIER

S  Simply  Create,  Deliver,  and  Share  Awesome  Customer  Experiences  (ACEs)  

(IN)DIRECT  COMPETITORS  (Subs@tutes/Complements)  

NEW  ENTRANTS  (Startups)  SYSTEM  (Chain  &  Hierarchy  of  Jobs  To  Get  Done)  

Living  System  Dashboard  

“Fake  XP”/Build   Test  XP/Measure  

Page 12: BUSINESS MODEL CYBERNETICS: Simply Create, Deliver, and Share Awesome Customer Experiences (ACEs)

 #4ROD.  Dr.  Rod  King.  [email protected]  &  h8p://businessmodels.ning.com  &  h8p://twi8er.com/RodKuhnKing  

BUSINESS  MODEL  CYBERNETICS    

ENVIRONMENT  

PROCESSOR    

Learn  (Strategy/TacIcs)  

INPUT  

Present:  RED  OCEAN  

+   -­‐  

OUTPUT  

NEW  ENTRANTS  (Startups)  

KP  

VP  KA  KR  

CS  R$   C$  

CH  

CR   CUSTOMER

S  

SUPP

LIER

S  Simply  Create,  Deliver,  and  Share  Awesome  Customer  Experiences  (ACEs)  

(IN)DIRECT  COMPETITORS  (Subs@tutes/Complements)  

(AWFUL  FINAL  RESULT/VISION/GOAL/FAILURE  CRITERIA)  

Living  System  Dashboard  

“Fake  XP”/Build   Test  XP/Measure  

Page 13: BUSINESS MODEL CYBERNETICS: Simply Create, Deliver, and Share Awesome Customer Experiences (ACEs)

 #4ROD.  Dr.  Rod  King.  [email protected]  &  h8p://businessmodels.ning.com  &  h8p://twi8er.com/RodKuhnKing  

BUSINESS  MODEL  CYBERNETICS    

ENVIRONMENT   (IDEAL  FINAL  RESULT/VISION/GOAL/SUCCESS  CRITERIA)  

PROCESSOR    

Learn  (Strategy/TacIcs)  

INPUT  

+   -­‐  

OUTPUT  

NEW  ENTRANTS  (Startups)  

KP  

VP  KA  KR  

CS  R$   C$  

CH  

CR   CUSTOMER

S  

SUPP

LIER

S  Simply  Create,  Deliver,  and  Share  Awesome  Customer  Experiences  (ACEs)  

(IN)DIRECT  COMPETITORS  (Subs@tutes/Complements)  

Future:  BLUE  OCEAN  

Living  System  Dashboard  

“Fake  XP”/Build   Test  XP/Measure  

Page 14: BUSINESS MODEL CYBERNETICS: Simply Create, Deliver, and Share Awesome Customer Experiences (ACEs)

Legend  The  following  topics,  which  describe  elements  of  a  business  model  on  slides  7  to  13  are  obtained  from  the  book,  “Business  Model  Genera@on”  by  Alexander  Osterwalder  and  Yves  Pigneur.    

q  Key  Partners  (KP)  

q  Key  Resources  (KR)  

q  Key  Ac@vi@es  (KA)  

q  Value  Proposi@on  (VP)  

q  Channels  (CH)/Customer  Rela@onships  (CR)  

q  Customer  Segments  (CS)  

q  Cost  Structure  (C$)  

q  Revenue  Streams  (R$)  

The  above  topics  are  also  visually  presented  on  the  Business  Model  Canvas  which  can  be  obtained  here:    h`p://[email protected]/downloads/business_model_canvas_poster.pdf      

PESTLIED  is  an  acronym  for  Poli@cal;  Economic;  Social;  Technological;  Legal;  Interna@onal;  Environmental;  Demographic  

Page 15: BUSINESS MODEL CYBERNETICS: Simply Create, Deliver, and Share Awesome Customer Experiences (ACEs)

Axiom  of  Business  Model  Cyberne^cs  

CUSTOMER  Hires  (Chooses)  OUTPUT  (Product/Service)  from  PROCESSOR  (Organiza@on/Tool)  In  Order  to  Achieve  SYSTEM’S  “Job  To  Get  Done”  

Page 16: BUSINESS MODEL CYBERNETICS: Simply Create, Deliver, and Share Awesome Customer Experiences (ACEs)

Examples  

1-­‐Minute  Living  System  Dashboard  (“Measure-­‐Learn-­‐Build  (MLB)”  Loop)  

Page 17: BUSINESS MODEL CYBERNETICS: Simply Create, Deliver, and Share Awesome Customer Experiences (ACEs)

Startups  Enjoy  Great  Success  

When  They  Discover  and  Solve  BUMPs:  (Big  Urgent  Market  Problems)  

&  Deliver  ACEs  

(Awesome  Customer  Experiences)  

Page 18: BUSINESS MODEL CYBERNETICS: Simply Create, Deliver, and Share Awesome Customer Experiences (ACEs)

Measure  and  Disrupt  the  Trade-­‐off  of  

Red  Ocean  (Exis^ng)  Compe^tors  

Page 19: BUSINESS MODEL CYBERNETICS: Simply Create, Deliver, and Share Awesome Customer Experiences (ACEs)

 #4ROD.  Dr.  Rod  King.  [email protected]  &  h8p://businessmodels.ning.com  &  h8p://twi8er.com/RodKuhnKing  

BUSINESS  MODEL  CYBERNETICS  for  Apple’s  iPod    

Living  System  Dashboard  for  Apple’s  iPod  

ENVIRONMENT  (IDEAL  FINAL  RESULT/VISION/GOAL/SUCCESS  CRITERIA)  

PROCESSOR    

Learn  (Red  Ocean  DisrupIon  (ROD)  Strategy/TacIcs)  

INPUT  

Apple’s  System:  Listen  to  Music  

+   -­‐  

OUTPUT  

NEW  ENTRANTS  (Startups)  

KP  

VP  KA  KR  

CS  R$   C$  

CH  

CR   CUSTOMER

S  

SUPP

LIER

S  

“Insanely  Great  Customer  Experience”;  Extraordinary  Profitability  

Simply  Create,  Deliver,  and  Share  Awesome  Customer  Experiences  (ACEs)  

(IN)DIRECT  COMPETITORS  (Subs@tutes/Complements)  

Digital  Music  Player  

“Fake  XP”/Build   Test  XP/Measure  

Page 20: BUSINESS MODEL CYBERNETICS: Simply Create, Deliver, and Share Awesome Customer Experiences (ACEs)

 #4ROD.  Dr.  Rod  King.  [email protected]  &  h8p://businessmodels.ning.com  &  h8p://twi8er.com/RodKuhnKing  

BUSINESS  MODEL  CYBERNETICS  for  Cirque  du  Soleil    

ENVIRONMENT  (IDEAL  FINAL  RESULT/VISION/GOAL/SUCCESS  CRITERIA)  

PROCESSOR    

Learn  (Red  Ocean  DisrupIon  (ROD)  Strategy/TacIcs)  

INPUT  

Cirque  du  Soleil’s  System:  Experience  Live  Entertainment  

+   -­‐  

OUTPUT  

NEW  ENTRANTS  (Startups)  

KP  

VP  KA  KR  

CS  R$   C$  

CH  

CR   CUSTOMER

S  

SUPP

LIER

S  

Awesome  Customer  Experience,  Loyalty,  and  Profitability  

Living  System  Dashboard  for  Cirque  du  Soleil  

Simply  Create,  Deliver,  and  Share  Awesome  Customer  Experiences  (ACEs)  

(IN)DIRECT  COMPETITORS  (Subs@tutes/Complements)  

Circus-­‐Theater  

“Fake  XP”/Build   Test  XP/Measure  

Page 21: BUSINESS MODEL CYBERNETICS: Simply Create, Deliver, and Share Awesome Customer Experiences (ACEs)

 #4ROD.  Dr.  Rod  King.  [email protected]  &  h8p://businessmodels.ning.com  &  h8p://twi8er.com/RodKuhnKing  

BUSINESS  MODEL  CYBERNETICS  for  Southwest  Airlines    

ENVIRONMENT  (IDEAL  FINAL  RESULT/VISION/GOAL/SUCCESS  CRITERIA)  

PROCESSOR    

Learn  (Red  Ocean  DisrupIon  (ROD)  Strategy/TacIcs)  

INPUT  

Southwest  Airline’s  System:  Travel/Commute  (by  Air)    

+   -­‐  

OUTPUT  

NEW  ENTRANTS  (Startups)  

KP  

VP  KA  KR  

CS  R$   C$  

CH  

CR   CUSTOMER

S  

SUPP

LIER

S  

Awesome  Customer  Experience,  Loyalty,  and  Profitability  

Living  System  Dashboard  for  Southwest  Airlines  

Simply  Create,  Deliver,  and  Share  Awesome  Customer  Experiences  (ACEs)  

(IN)DIRECT  COMPETITORS  (Subs@tutes/Complements)  

Airline  Service  

“Fake  XP”/Build   Test  XP/Measure  

Page 22: BUSINESS MODEL CYBERNETICS: Simply Create, Deliver, and Share Awesome Customer Experiences (ACEs)

 #4ROD.  Dr.  Rod  King.  [email protected]  &  h8p://businessmodels.ning.com  &  h8p://twi8er.com/RodKuhnKing  

BUSINESS  MODEL  CYBERNETICS  for  Zappos  

ENVIRONMENT  (IDEAL  FINAL  RESULT/VISION/GOAL/SUCCESS  CRITERIA)  

PROCESSOR    

Learn  (Red  Ocean  DisrupIon  (ROD)  Strategy/TacIcs)  

INPUT  

Zappos’  System:  Buy  Shoes  Online  

+   -­‐  

OUTPUT  

NEW  ENTRANTS  (Startups)  

KP  

VP  KA  KR  

CS  R$   C$  

CH  

CR   CUSTOMER

S  

SUPP

LIER

S  

“Insanely  Great  Customer  Experience”;  Extraordinary  Profitability  

Living  System  Dashboard  for  Zappos  

Simply  Create,  Deliver,  and  Share  Awesome  Customer  Experiences  (ACEs)  

(IN)DIRECT  COMPETITORS  (Subs@tutes/Complements)  

eCommerce  Website  

“Fake  XP”/Build   Test  XP/Measure  

Page 23: BUSINESS MODEL CYBERNETICS: Simply Create, Deliver, and Share Awesome Customer Experiences (ACEs)

BONUS  Integra^on  of    

Porter’s  5  Forces,  Generic  Strategies,  and  

Value  Chain    Using  the  Living  System  Dashboard  

Page 24: BUSINESS MODEL CYBERNETICS: Simply Create, Deliver, and Share Awesome Customer Experiences (ACEs)

 #4ROD.  Dr.  Rod  King.  [email protected]  &  h8p://businessmodels.ning.com  &  h8p://twi8er.com/RodKuhnKing  

BUSINESS  MODEL  CYBERNETICS    

ENVIRONMENT   (IDEAL  FINAL  RESULT/VISION/GOAL/SUCCESS  CRITERIA)  

PROCESSOR    

Learn  (Strategy/TacIcs)  

INPUT  

+   -­‐  

OUTPUT  

CUSTOMER

S  

SUPP

LIER

S  

IL  

P  T  

HR  FI   O  OL  

MS   S  

Profit  Margin  

Simply  Create,  Deliver,  and  Share  Awesome  Customer  Experiences  (ACEs)  

(IN)DIRECT  COMPETITORS  (Subs@tutes/Complements)  

NEW  ENTRANTS  (Startups)  

Living  System  Dashboard    

SYSTEM  (Chain  &  Hierarchy  of  Jobs  To  Get  Done)  

“Fake  XP”/Build   Test  XP/Measure  

Page 25: BUSINESS MODEL CYBERNETICS: Simply Create, Deliver, and Share Awesome Customer Experiences (ACEs)

Legend  The  following  topics,  which  describe  elements  of  a  business  model  on  slide  24  are  based  on  a  descrip@on  of  ac@vi@es  in  Michael  Porter’s  Value  Chain  

Firm  infrastructure  

Human  Resource  Management  

Technology  

 Procurement  

Inbound  Logis@cs  

 Opera@ons  

 Outbound  Logis@cs  

 Marke@ng  &  Sales  

 Service  

IL  

P  

T  

HR  

FI  

O  

OL  

MS  

S  

Page 26: BUSINESS MODEL CYBERNETICS: Simply Create, Deliver, and Share Awesome Customer Experiences (ACEs)

               

               

COLLABORATORS  

COMPETITORS  

SUPPLIERS   CUSTOMERS  

DifferenIaIon  of  inputs  

Supplier  concentraIon  

Importance  of  volume  and  speed  to  supplier  

                               Cost  relaIve  to    

total  purchases  

Impacts  of  input  on  cost  &  differenIaIon  

Forward  IntegraIon  

Presence  of    subsItute    inputs  

Backward  IntegraIon  

RelaIve  price  performance  of  subsItutes  

Switching  costs  Buyer  propensity  to  subsItute  

Diversity  

Fixed  costs/value  added  Brand  idenIty  

Overcapacity  

InformaIon  complexity  Entry  barriers  

Product  differences  

Product  differenIaIon  

Buyer  concentraIon  

IncenIves  for  decision-­‐makers  

                           Price/                    Volume/    Total  purchase  

Impacts  of  quality/performance  

Switching  costs  

Buyer  info’  

Backward/Forward  IntegraIon  

Buyer  profits  

Access  to  distribuIon  

Economies  of  scale  Capital  requirements  

Government  policy  

Exit  barriers  

Channel/distributor  concentraIon   DifferenIaIon  of  channels/distributors  

Backward  IntegraIon   Forward  IntegraIon  

Cost  advantages   Trends/PaYerns  Tipping  point  

Virality  

ROI  

Source:  Based  on  Porter,  M.  (1998)  Compe^^ve  Advantage.  New  York:  The  Free  Press.                            Porter,  M.  (1998)  Compe^^ve  Strategy.  New  York:  The  Free  Press.  

 #4ROD.  Dr.  Rod  King.  [email protected]  &  h8p://businessmodels.ning.com  &  h8p://twi8er.com/RodKuhnKing  

ENVIRONMENT  (INDUSTRY)  

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Business  Model  Cyberne^cs  Is  About  

Simply  Crea^ng,  Delivering,  and  Sharing  Awesome  Customer  Experiences  

(ACEs)