The 3-Act Business Model Storyboard for Cinderella's Fairy Godmother, Apple's IPod, and Enterprise Architecture

Law of the 3-‐Act Business Model Although Stories, Businesses, Living Systems, and Other Organiza?ons Appear Different on the Surface, Every Story, Enterprise, Living System, or Organiza=on on the Planet Has the Same Fractal “DNA” Structure Which Consists of 3 “Acts” or Sub-‐models: v  Value Crea?on Act

v  Value Proposi?on Act

v  Value Sharing (Profit) Act

#VPGen. Dr. Rod King. [email protected] & hPp://businessmodels.ning.com & hPp://twiPer.com/RodKuhnKing

ENVIRONMENT

3-‐Act Business Model (3BM) Storyboard: Bird’s Eye View Value Chain & Environment


3-‐Act Business Model

Create Value Deliver Value Share (Capture) Value CORE JOBS:

VALUE CREATION MODEL

VALUE PROPOSITION

MODEL

VALUE SHARING (PROFIT) MODEL

HOW? WHAT? WHY?


3-‐ACT BUSINESS MODEL OF Cinderella’s Fairy Godmother

VALUE CREATION ACT

VALUE PROPOSITION ACT

VALUE SHARING ACT

ENVIRONMENT

Universal (De)Constructor of Stories, Systems, and Business Models


VALUE CREATION ACT


VALUE SHARING ACT




VALUE CREATION ACT


Inputs q  Pumpkin (Golden Carriage) q  Mice (Horses) q  Rat (Coachman) q  Lizards (Footmen)

Internal Resources q  Fairy Godmother q  Magic wand q  Magic power; spells

Processes q  Magical transforma=on of objects q  Make apparently impossible

dreams come true

Output q  Magical service (magically transform-‐

ing mundane objects: Cinderella’s rags are transformed into a beauTful jewelled gown complete with magic slippers as well as golden carriage, horses, coachman, and footmen)

Channels & Rela?onships q  “Invisible Teleporta=on Medium/

Cloud” q  Magical Appearance

q  Helper (On Demand)

Customer-‐Protagonist q  Cinderella: Beau=ful girl; mother has died; now lives with wicked stepmom and 2 ugly stepsisters q  Cinderella is being badly treated q  Goal: Wants to go to the Prince’s ball q  If she goes to ball, be back by 12am

Pain q  Cinderella’s daily suffers at hands

of wicked stepmother and 2 stepsisters

q  Sleeps in the kitchen’s fireplace to get warmth at home

q  Has to leave the ball by 12am

Delight q  Cinderella totally captures the a[en=on and heart of the Prince at the ball q  Cinderella marries the Prince and

lives happily ever a\er in a palace

Value q  Greater happiness for Cinderella q  “Beauty is a treasure but

graciousness is priceless”. q  A great help to the disadvantaged

or people at the boVom of the pyramid

VALUE SHARING ACT


Example: Social Enterprise



VALUE CREATION ACT


3-‐ACT BUSINESS MODEL (Blank Template for MulTlevel Business Model)

VALUE SHARING ACT

Blank Template for Strategic Business Model Management



VALUE CREATION ACT


Inputs

Internal Resources

Processes

Output

Channels & Rela?onships

Customer-‐Protagonist

Pain

Delight

Value

VALUE SHARING ACT

Template for Strategic Business Model Management 3-‐ACT BUSINESS MODEL

(Annotated MulTlevel Business Model)



3-‐ACT BUSINESS MODEL For Apple’s Classic iPod

VALUE CREATION ACT


VALUE SHARING ACT

ENVIRONMENT



3-‐ACT BUSINESS MODEL For Apple’s Classic iPod

VALUE CREATION ACT (SUB-‐MODEL)

VALUE PROPOSITION ACT (SUB-‐MODEL)

VALUE SHARING ACT (SUB-‐MODEL)

Inputs/Partners q Original Equipment Manu. q Record Companies

Internal Resources q Staff q Brand

Processes/Ac?vi?es q Hardware Design q So\ware Design q Marke=ng

Product/Value Proposi?on q  iPod Hardware

q “A Thousand Songs in Your Pocket”

Channels & Rela?onships q www.apple.com q Apple Retail Stores q  iTunes Store q Big Box Retailers

Customer/Job-‐To-‐Get-‐Done q Luxury Spo[er q Mass Market q Job: Listen to Music q Constraints: Bulky music players;

small storage for songs; difficulty in organizing songs

Pain: Cost Items q Employees q Manufacturing q Marke=ng & Sales

Delight: Revenue Items (Sources) q  iPod Hardware q  iTunes Store q Commissions

Value: Profit

Example: Commercial Enterprise


APPENDIX

3-‐Act Business Model Storyboard For

Enterprise Architecture




Inputs

Internal Resources

Processes

Output

Channels & Rela?onships

Customer-‐Protagonist

Pain

Delight

Value


Source of Informa=on: Nick Malik’s Enterprise Business MoTvaTon Model; see h[p://goo.gl/xSgO0)

Business Partner (BP)

Partner Type (PT)

3-‐ACT BUSINESS MODEL For Enterprise Architecture

Resource/Asset (RA)

Required Competency (RC)

Value Proposi=on (VP)

Products & Services (PS)

Customer Demands & Rela=onships (CDR)

Channels (CH)

Customer (C)

Customer Type (CT)

Cost Model (CM)

Revenue Model (RM)

Profit Model (PM)


3-‐ACT BUS. MODEL




PT BP RA RC VP PS CDR CH C CT CM RM PM

PT -‐ affects -‐>

affects -‐>

BP behaves as -‐>

-‐

RA -‐ impacts -‐>

impacts -‐>

impacts -‐>

RC demand-‐>

-‐ delivers -‐>

VP drives -‐>

-‐ targets -‐>

PS -‐ saTsfies -‐>

targets -‐>

CDR -‐

CH -‐ targets -‐>

drives -‐>

drives -‐>

drives -‐>

C -‐ behaves as à

CT has -‐>

-‐

CM -‐

RM -‐

PM -‐ #VPGen. Dr. Rod King. [email protected] & hPp://businessmodels.ning.com & hPp://twiPer.com/RodKuhnKing

From -‐> To

3-‐ACT BUSINESS MODEL STORYBOARD (“Concept Map”/Input-‐Output Matrix) for Enterprise Architecture (Source of Informa=on: Nick Malik’s Enterprise Business MoTvaTon Model; see h[p://goo.gl/xSgO0)

Acknowledgement Topics for Describing the Business Model in Enterprise Architecture (“yellow boxes”) are obtained from Nick Malik’s Enterprise Business Mo=va=on Model; see h[p://goo.gl/xSgO0 The topic of “Geographies and Locales” has been omi[ed for clarity.