Draft Guide to Business Ecosystem Development

From Business Case

to Business Ecosystem

in Six StepsAn Online Primer

to

Successful Business Case Development within

Business Clusters and Business Ecosystems

Overview• Why Business Clusters and Business Ecosystems…

• Business Case Development: Process Flow

• Business Sustainability: Process Flow

• Two-Way Flow of Wealth and Capital

• Responsibility for Wealth and Capital

• Community Investment Portfolio (CIP)

• Put Theory into Practice…

• 6-Step CIP Implementation Sequence

• Business Case Development: Key Questions

• Business Sustainability: Key Questions

• CIP Implementation: Key Questions Guide and Implementation Framework

• Call to Action!

Why Business Clusters and Business Ecosystems

• Assure the successful launch of new and expanded businesses that provide– Meaningful work– Reasonable quality of life– Rightful dignity to people from all walks of life

• Introduce a platform whereby ANYONE with a business concept they are passionate about can make its case and put it in play

• Encourage collective responsibility-taking among those with business cases to– Form efficient interdependencies– Manage community wealth– Serve diverse community members

• Reduce dependency on investment from outside the community and thereby– Curtail economic leakage– Increase the likelihood of community self-sufficiency and sustainability

Why Would TheyPay for It?

Who Will Pay for It?

What Will YourBusiness Deliver?

What Is Your Business Concept?

Price?

Features?

Need?

Timing?

Convenience?

Functionality?

Value?

New?

Product / Service / Both?

Differentiated? End-User?

Value Chain Partner?

Aggregator?Colleagues?

Origin?

Name?

Volume? Others?

Business Case DevelopmentProcess Flow

Community Engagement?

Reward for Performance?

Reputation Management?

Legally Constituted?

Embedded Intelligence?

Multiple Mediums of Exchange?

Products / Services?

Multiple / Integrated?

Value Chain? Group Development?

Collective Leadership?

Identification?

Location?

Type?

Ownership? Open Communication?

Democratic Polling?

Widespread Participation?

Map Assets

Model Clusters

TrackFlows

MakeDecisions

Business SustainabilityProcess Flow

Price?

Features?

Need?

Timing?

Convenience?

Functionality?

Value?

New?





Origin?

Name?

Volume? Others?











Identification?

Location?

Type?


Democratic Polling?


Map Assets

Model Clusters





Two-Way Flow of *Wealth and Capital

Investment OF Wealth

Investment IN Wealth

IndividualCapital

SocialCapital

IntellectualCapital

NaturalCapital

BuiltCapital

PoliticalCapital

FinancialCapital

* Visit YellowWood.org/WealthCreation.aspx for in-depth reports about wealth and capital

TrackFlows

MakeDecisions



IndividualCapital

SocialCapital

IntellectualCapital

NaturalCapital

BuiltCapital

PoliticalCapital

FinancialCapital

Price?

Features?

Need?

Timing?

Convenience?

Functionality?

Value?

New?





Origin?

Name?

Volume? Others?











Identification?

Location?

Type?


Democratic Polling?


Map Assets

Model Clusters





Responsibility for Wealth and Capital

Inventory Measures Management

TrackFlows

MakeDecisions



IndividualCapital

SocialCapital

IntellectualCapital

NaturalCapital

BuiltCapital

PoliticalCapital

FinancialCapitalInventory Measures Management

Map Assets

Model Clusters

TrackFlows

MakeDecisions

Price?

Features?

Need?

Timing?

Convenience?

Functionality?

Value?

New?





Origin?

Name?

Volume? Others?











Identification?

Location?

Type?


Democratic Polling?






Community Investment Portfolio (CIP)

Portfolio of Business Clusters

That Consist of Interdependent Business Cases

Put Theory into Practice…

Remember your business concept?

• Flesh it out

• Share it with others as they share theirs

• Develop your concept together with theirs

Here’s how…

Price?

Features?

Need?

Timing?

Convenience?

Functionality?

Value?

New?





Origin?

Name?

Volume? Others?











Identification?

Location?

Type?


Democratic Polling?


Map Assets

Model Clusters

TrackFlows

MakeDecisions





Six-Step CIP Implementation Sequence



IndividualCapital

SocialCapital

IntellectualCapital

NaturalCapital

BuiltCapital

PoliticalCapital

FinancialCapitalInventory Measures Management

Forma

Group

Define Business Clusters

TakeCollective

Responsibility

Adopt Collaborative

Tools

Establish Governance

Structure

Build the

Brand

1 2 3 4 5 6





Community Investment PortfolioImplementation Sequence Framework

Map Assets

Model Clusters

TrackFlows

MakeDecisions

Share Your Ideas with Those Who Care about You

Network among Your Community Members

Invite Those Who Care and Their Contacts to Meet

Convene the Groupfor its Initial Meeting

Catalogue Business Ideas by Value Chain Affiliations and

InterdependenciesDetermine Capabilities of Value

Chains to DeliverChart the Two-Way Flow of Capital for Each Value Chain

Develop Scenarios That Address Value Chain Capacities

and Capital

Determine Mediums of Exchange for Each Form of

Capital

Identify Critical Points in Business Clusters to Measure

Flows of CapitalsUnderstand the Flow Dynamics

of Capitals in ClustersAssociate Flows of Capitals

with Launch of Business Clusters

Formalize Means of Communications and Access to

Document TrailManage Calendars, Tasks, and

CommitmentsCollaborate on the

Development and Delivery of Intellectual Property

Coordinate among Multiple Endeavors and under Complex

Conditions

Charter an Investment Community to Manage Its Business Cluster Portfolio

Load Business Clusters into a Community

Investment Portfolio

Apply the Portfolio Management Guidelines Defined by the Charter

Revise the Investment Community Charter as Needed

Compose a Two-Minute Elevator Speech about Your

Business Ecosystem

Tell about the Participants and Their Deliverables

in Your Business Ecosystem

Provide Easy Access to the Deliverables of the

Business Ecosystem

Safeguard the Reputations of All Participants


1

2

3

4

5

6

Document Your CaseKey Questions

Anyone working on it with you?How did you come up with the idea?What is the background behind it?

Is it a product or service or both?Is it new? Is it differentiated? Do others deliver the same?Does it help meet overall demand?

Who is the customer: Is it the end-user?Is it another stop in the value chain?Is it an aggregator?

What is the motivation to buy: Price? Features? Value? Functionality? Convenience? Quality? Timing? Others?





Map Assets

Model Clusters

Provide Decision Support Information

Transfer Knowledge to Key Decision Points

Business SustainabilityKey Questions

What types of capital do we have:Individual? Social? Intellectual?Natural? Built? Political? Financial?Where are they located?Who owns / controls them?

In a given locality, which business cases:Deliver similar products and services? Contribute to similar value chains?Integrate across multiple value chains?

Is there open communication among stakeholders?Are collective leaders emerging among stakeholders?Are stakeholder groups following a development process?Is there widespread participation among stakeholders?Is the larger community more involved with stakeholders?

Are multiple mediums of exchange in use?Is intelligence embedded within the system?Is there democratic polling among members?Is the governance process legally constituted?Is performance rewarded?Are reputations managed?


Invite Those WhoCare and Their

Contacts to Meet



CIP Implementation: Form a Group – Key Questions

Who cares about you and your ideas?Do the people with whom you share represent:Customers? Colleagues? Value chain partners?Who do they know with similar or related:Ideas? Experiences? Know-how?

Who can: Fill-in value chain gaps?Deliver key support services? Address capacity constraints?Prompt more ideas?

Why meet face-to-face? Who will be there?Why discuss these ideas?What are the expected outcomes?

When and where is the meeting?What is the agenda? Who is the moderator? What is the process?

1

Develop Scenarios That Address Value Chain

Capacities and Capital

Chart the Two-Way Flow of Capital forEach Value Chain

Determine Capabilitiesof Value Chains

to Deliver

Catalogue Business Ideas by Value Chain Affiliations

and Interdependencies

CIP Implementation: Define Business Clusters – Key Questions

Which business ideas: Deliver similar output? Deliver to similar customers? Utilize similar input?Integrate across multiple value chains?

What is a complete value chain?Which value chain functions: Are missing? Are critical path? Apply to multiple value chains?What is the capacity of each value chain function?

What kinds of capital are utilized? Does control of capital change hands?Does capital increase or decrease?

What actions in combination with one another: Influence capacity? Influence capital? Improve efficiency? Create wealth?

2

Associate Flows ofCapitals with Launch of Business Clusters

Understand the Flow Dynamics of Capitals

in Clusters

Identify Critical Pointsin Business Clusters to

Measure Flows of Capitals

Determine Mediums of Exchange for Each

Form of Capital

CIP Implementation: Take Collective Responsibility – Key Questions

What are our choices for mediums of exchange?What are their advantages and disadvantages?What special skills do we need to adopt them?Can they all be adopted at one time?

Where do transactions occur in the business clusters?Who controls capital after the transaction? When does control over capital leave the community?When does control over capital enter the community?

What is the rate of outflow?What is the rate of inflow?What influences the flow rates?What factors affect degree of influence?

What are the capital requirements?Can alternative capitals be used? How can the cluster be improved? Who else can be included?

3

Coordinate among Multiple Endeavors

and under Complex Conditions

Collaborate on the Development

and Delivery of Intellectual Property

Manage Calendars, Tasks, and Commitments

Formalize Means of Communications and

Access to Document Trail

CIP Implementation: Adopt Collaborative Strategies – Key Questions

Which Services? System / Platform?Apps / Tools?Training / Tutorials?




4

Revise the Investment Community Charter

as Needed





CIP Implementation: Establish Governance Structure – Key Questions

Who can invest?How do they invest?How is success measured?How are the risks managed?How are the returns distributed

Do the clusters have:Requisite diversity? Priorities? Interdependencies?Critical path?

How are decisions made?Is there a Plan B and a Plan C?How big can the portfolio become?

What did we expect?What happened?What did we learn?What would we do differently?

5

Safeguard the Reputations of All

Participants in Your Business Ecosystem


Business Ecosystem




Business Ecosystem

CIP Implementation: Build the Brand – Key Questions

What is the business ecosystem?Why is it important?What does it provide of value?How do you engage with it?

Who participates in the business ecosystem?What is their association with deliverables? What are their ecosystem experiences?How can others identify with them?

How does one participate in the business ecosystem? What mediums of exchange are available?How does one conduct transactions in the ecosystem?What roles can one play in the business ecosystem?

How do you: Evaluate participant performance?Ensure participant compliance? Manage the storytelling about participants? Remediate poor participant performance?

6





Community Investment PortfolioImplementation Sequence Framework

Map Assets

Model Clusters

TrackFlows

MakeDecisions



Invite Those Who Care and Their Contacts to Meet


Catalogue Business Ideas by Value Chain Affiliations and

InterdependenciesDetermine Capabilities of Value

Chains to DeliverChart the Two-Way Flow of Capital for Each Value Chain

Develop Scenarios That Address Value Chain Capacities

and Capital

Determine Mediums of Exchange for Each Form of

Capital

Identify Critical Points in Business Clusters to Measure

Flows of CapitalsUnderstand the Flow Dynamics

of Capitals in ClustersAssociate Flows of Capitals

with Launch of Business Clusters

Formalize Means of Communications and Access to

Document TrailManage Calendars, Tasks, and

CommitmentsCollaborate on the

Development and Delivery of Intellectual Property

Coordinate among Multiple Endeavors and under Complex

Conditions





Revise the Investment Community Charter as Needed


Business Ecosystem




Business Ecosystem

Safeguard the Reputations of All Participants


1

2

3

4

5

6

Call to Action!

Get started:

• Explore your business idea– http://localfoodsystems.org/explore

• Place your idea on the map– http://localfoodsystems.org/businesscaseapp/manage

• Join forces and collaborate– http://localfoodsystems.org/collaborate

• Grow business and community capital– http://localfoodsystems.org/cip

http://localfoodsystems.org/explore



http://localfoodsystems.org/businesscaseapp/manage

http://localfoodsystems.org/businesscaseapp/manage

http://localfoodsystems.org/collaborate

http://localfoodsystems.org/collaborate

http://localfoodsystems.org/cip

http://localfoodsystems.org/cip