The 3rd Dimension
The Entity
The Mission is Establishment
You engineered an idea into a solution. Great…you are partially there. The solution gives you the right to play, but not the right to win. Now it’s time to engineer a great organization to wrap around that great solution. For the solution is like an engine, or a brain; valuable yet incapable of thriving on its own without a body. For you don’t ride the engine, you drive the car. The Entity Dimension is the stage where you wrap the solution in a suit of systems, structures, and processes. These systems are what create the dynamism, that breathes, moves and lives in the real world.
This is what is called the business model. Just like the human body has a suit of digestive, respiratory, muscular systems, processes and structures. So does your idea require a suit of systems, processes and structures to function. We prefer to call it the Business Body. For the term business model is confusingly abstract.
The animating reason behind your existence is to be of value. The more value you give, the more value you receive. This virtuous cycle of value is your core. The starting point is not the receiving of value- it’s the giving of value. The giving of value is twofold: 1-the creating of value. 2-the transferring of value to where it’s needed.
So in other words, everything your business body does, all the systems, structures and processes are organized in roles to either 1. Create Value. 2. Deliver Value. 3. Receive Value.
That’s it! that’s what you are organized for. That’s what an organization does. That’s what the organism of your business does. That’s what the entity you call business does. If your systems don’t create, deliver and receive value then you won’t survive. All three must thrive for you to thrive.
Creating Value
Refers to the designing of the solution to address the need.
Delivering Value
Refers to the transfer of created value to where it’s needed.
Receiving Value
Refers to the tangible real-ization of outcomes, coming to fruition. We prefer the term harvest.
The Value Generation Canvas
Through a process we call Business Bodying we deconstruct creating value, delivering value, and harvesting value into component parts. There are 10 key components. Arranged into a Value Generation Canvas. For you are indeed a value-generating machine.
At this point, I must pay homage to Alexander Osterwalder and his business partner Yves Pigneur. They democratized the understanding of business modeling to regular humans like us. This body of work stands on their shoulders.
Create Value
Customer Segment(s)
Whom do we choose to serve? Who are we creating value for?
Value Proposition(s)
How do we choose to serve them? What exactly is the need we are solving for? What exactly is the value we bring?
Deliver Value
Customer Relationships
What kind of relationships do we choose to establish, nurture, and engage in with our chosen customers?
Channels
Through which channels will we connect, deliver, reach, and be reached? What are the effective means of interaction & delivery?
Key Activities
What must we be exceptional at to generate value? What are the tasks most essential for value creation & delivery?
Key Resources
What are the most crucial resources required to create and deliver this value?
Key Partnerships
Which key collaborators do we need to create and deliver this value? Which strategic alliances or extended capabilities?
Costs
What are the most important costs inherent in creating and delivering this value?
Harvest Value
Revenue Model
How we reap tangible financial outcomes resulting from value created and delivered.
Key Impact(s)
How we design for tangible non-financial outcomes resulting from value created and delivered.
As the architect of your vision and the author of your story, merely listing the 10 components is not sufficient. As a designer of value, you hold the power to shape the narrative and intricacies of your business body (model). It is imperative to delve deeper, examining the interplay, refining the orchestration, and envisioning the holistic impact your organization can achieve. Embrace the role of a conscious creator, navigating the dynamic landscape of the Value Generation Canvas, and let your design not only meet spec but lead to a whole nother level of value creation.
And yes, it is possible to compete exclusively on the components of your business body (model).
Next...Proceed To The Orchestra
