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How market-driven management generates shareholder value ?

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How market-driven management generates shareholder value ? Professor J.J. Lambin OUTLINE What is market-driven management? How to create customer value? – PowerPoint PPT presentation

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Title: How market-driven management generates shareholder value ?


1
How market-driven management generates
shareholder value ?
  • Professor J.J. Lambin

2
OUTLINE
  • What is market-driven management?
  • How to create customer value?
  • How customer orientation leads to growth
    opportunities?
  • How customer value generates
  • shareholder value?

3
  • What is market-driven management?
  • Is market-driven management really
    different from traditional marketing management ?

4
THE AMBIGUITY OF THE TERM MARKETING
  • Literally, marketing means the process of
    going to the market.

5
THE AMBIGUITY OF THE TERM MARKETING
  • Literally, marketing means the process of going
    to the market.
  • The term places the emphasis on the selling and
    promotional activities of the commercialisation
    process.

6
THE AMBIGUITY OF THE TERM MARKETING
  • Literally, marketing means the process of going
    to the market.
  • The term places the emphasis on the selling and
    promotional activities of the commercialisation
    process.
  • Thereby, the importance of the strategic
    thinking activities that precede tend to be
    underestimated.

7
THE MARKET ORIENTATION CONCEPT Three Components
  • CULTURE
  • ANALYSIS
  • ACTION

8
THE MARKET ORIENTATION CONCEPT Three Components
  • CULTURE
  • A business philosophy at the core of a
    social market economy system,
  • . emphasising the process of customer value
    creation,
  • . as the best way for the firm to achieve
    its objectives of profit and growth.

9
THE MARKET ORIENTATION CONCEPT Three Components
  • CULTURE
  • ANALYSIS
  • The strategic brain of the firm,
  • used to identify profitable customer
    activity arenas in which to compete.
  • (strategic marketing)

10
THE MARKET ORIENTATION CONCEPT Three Components
  • CULTURE
  • ANALYSIS
  • ACTION
  • The commercial arm of the firm
  • ...used to conquer the target market
    segments
  • (operational marketing)

11
THE MARKET ORIENTATION CONCEPT Three Components
  • CULTURE
  • A state of mind .
  • Corporate business philosophy.
  • ANALYSIS
  • A set of analysis tools to understand the
    market.
  • Strategic marketing.
  • ACTION
  • A set of selling instruments (the 4Ps)
  • Operational marketing

12
MARKET-DRIVEN MANAGEMENT Who is in charge ?
13
THE MARKET DRIVEN MANAGEMENT Conditions of
application
  • LIBERTY OF CHOICE
  • Individual choice determines what is rewarding.
  • COMPETITIVE EXCHANGE
  • Competition is the regulating mechanism.
  • SOCIAL COLLECTIVE PREFERENCES
  • Externalities must be taken into account by the
    firm.

14
STRATEGIC MARKETING Two approaches
  • RESPONSE STRATEGIC MARKETING
  • Find wants and fill them
  • Innovations are market pull.

15
STRATEGIC MARKETING Two approaches
  • RESPONSE STRATEGIC MARKETING
  • Find wants and fill them
  • Innovations are market pull.
  • CREATIVE STRATEGIC MARKETING
  • Find new ways to fill existing wants.
  • Innovations are supply-push.

16
THE ROLE OF STRATEGIC MARKETING
17
EXAMPLES OF DISRUPTIVE INNOVATIONS IN MATURE
MARKETS
  • The furniture market with Ikea.
  • The shoe market with Geox (ventilated soles) and
    Mephisto (shock absorber)
  • The airline market with, Virgin-Express, EasyJet,
    Ryan Air,
  • The liquid food packaging market with Tetrapak.
  • The Kinepolis concept in the movie theater
    market.
  • The digital photography market with Sony, HP,
    Kodak,

18
The Key Market Actors
The General Case
DISTRIBUTORS
COMPETITORS
CUSTOMERS
(user, buyer, payer)
PRESCRIBERS
19
The Market viewed as an Eco-system
Competitors
Other customers
licensees,
direct and substitutes

aggregators
,...
Prescribers
Other
stakeholders
Manufacturers direct customers
Intermediaries
agents, wholesalers,
retailers, ...
End
Suppliers
customers

20
MARKET-DRIVEN MANAGEMENT (MDM) Its role in the
firm
  • For a firm operating in a market economy, the
    role of MDM is to design and promote, at a
    profit, value-added solutions to people and
    organisations problems.

21
2. How to create customer value? Refer to
the customers generic need and to the
customer mental virtual market
22
THE VALUE APPROACH FROM THE CUSTOMER VIEWPOINT
  • What the customer buys and considers value is
    not the product, but the result or the service
    provided by the product.

23
THE VALUE APPROACH FROM THE CUSTOMER VIEWPOINT
  • What the customer buys and considers value is
    not the product, but the result or the service
    provided by the product.
  • The result sought by customers correspond to a
    generic need which is stable over time.

24
THE VALUE APPROACH FROM THE CUSTOMER VIEWPOINT
  • What the customer buys and considers value is
    not the product, but the result or the service
    provided by the product.
  • The result sought by customers correspond to a
    generic need which is stable over time.
  • Technologies are fast changing, while generic
    needs remain unchanged.

25
WHAT BUSINESS ARE WE IN ? Examples of generic
need definitions
  • We (Tetrapak) are selling liquid food
    conservation" solutions (...and not carton
    containers).

26
WHAT BUSINESS ARE WE IN ? Examples of generic
need definitions
  • We (Tetrapak) are selling liquid food
    conservation" solutions (...and not carton
    containers).
  • We (Automatic Systems) are selling "access
    control" solutions (...and not gates and doors).

27
WHAT BUSINESS ARE WE IN ? Examples of generic
need definitions
  • We (Tetrapak) are selling liquid food
    conservation" solutions (...and not carton
    containers).
  • We (Automatic Systems) are selling "access
    control" solutions (...and not gates and doors).
  • We (General Motors) operate in the personal
    mobility market arenas (and not simply in the
    car market).

28
WHAT BUSINESS ARE WE IN ? Examples of generic
need definitions
  • We (Tetrapak) are selling liquid food
    conservation" solutions (...and not carton
    containers).
  • We (Automatic Systems) are selling "access
    control" solutions (...and not gates and doors).
  • We (General Motors) operate in the personal
    mobility market arenas (and not simply in the
    car market).
  • We (IBM) are selling global networking
    capabilities ( ...and not only personal
    computers).

29
WHAT BUSINESS ARE WE IN ? Examples of generic
need definitions
  • We (Tetrapak) are selling liquid food
    conservation" solutions (...and not carton
    containers).
  • We (Automatic Systems) are selling "access
    control" solutions (...and not gates and doors).
  • We (General Motors) operate in the personal
    mobility market arenas (and not simply in the
    car market).
  • We (IBM) are selling global networking
    capabilities ( ...and not only personal
    computers).
  • We (BP) are selling integrated energy assurance
    ( and not simply oil, gas and lubricants).

30
THE CONCEPT OF VIRTUAL MARKET
  • 1.To achieve the generic result sought, customers
    engage in different activities, directly or
    indirectly related to the desired outcome.

31
THE CONCEPT OF VIRTUAL MARKET
  • 1. To achieve the generic result sought,
    customers engage in different activities,
    directly or indirectly related to the desired
    outcome.
  • 2. A mental virtual market regroup all the
    activities undertaken by customers to achieve a
    specific generic result.

32
THE CONCEPT OF VIRTUAL MARKET
  • 1. To achieve the generic result sought,
    customers engage in different activities,
    directly or indirectly related to the desired
    outcome.
  • 2. A mental virtual market regroup all the
    activities undertaken by customers to achieve a
    specific generic result.
  • 3. Thus, a virtual market represents an
    end-to-end temporal sequence of logically related
    activities in the cognitive space of customers.

33
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34
EXAMPLE OF THE DANISH LEGO COMPANY(1)
  • Consider Lego, the Danish toy company, In 1995,
    it had a worldwide construction toy market share
    of 72, in Europe its market share in that
    category was over 90.
  • But children were spending more spare time with
    computers, video games and television than with
    traditional toys.
  • So while Lego had been gaining market shares,
    toys in general and construction toys in
    particular had been losing their share of
    childrens spare-time activities

35
EXAMPLE OF THE LEGO COMPANY (2)
  • The need addressed by Lego, the Danish toy
    company, is family edutainment.
    (education-entertainment) and not
    construction-toy market.
  • The generic need is defined as ...having fun and
    exercising the mind
  • The Lego virtual market is a convergence of toys,
    education, interactive technology, software,
    computers and consumer electronics.

36
CHARACTERISTICS OF A VIRTUAL MARKET
  • 1. In a virtual market, the activities
    generally cut across traditional industry and
    product-market boundaries and are not necessarily
    in the core business of the firm.

37
CHARACTERISTICS OF A VIRTUAL MARKET
  • 2. Virtual markets absorb a higher proportion
    of customer spending than a specific
    product-market, and represents a higher market
    potential.

38
CHARACTERISTICS OF A VIRTUAL MARKET
  • 3. Internet information technology makes the
    objective of addressing virtual markets
    achievable.

39
EXAMPLE OF VIRTUAL MARKET (1)
  • To achieve the home ownership generic need,
    customers might engage with contractors,
    realtors, insurance companies, mortgage firms,
    removal companies, telecom, interior designers,

40
EXAMPLE OF VIRTUAL MARKET (2)
  • In the personal mobility virtual market, in
    addition to car ownership, related activities
    cover car maintenance, car insurance, roadside
    assistance, emergency services dispatch, route
    support, stolen vehicle location, .

41
FROM THE VIRTUAL MARKET TO THE META MARKET
  • A meta-market is created when the cognitive
    associations between these activities are
    reproduced in the physical market place, thereby
    streamlining customer activities and providing
    them with seamless experience.

42
CREATING THE META-MARKET The home ownership
virtual market
The cognitive space of the potential customer
The cognitive space of the potential customer
Negotiation and
Insurance and
Repairs and
Negotiation and
Insurance and
Renovation and
Information
Information
The purchase decision
The purchase decision
financing
maintenance
Reselling value
financing
maintenance
decoration
search and evaluation
search and evaluation
Need of the potential customer
Need of the potential customer
To buy a new car
Home ownership
Removal companies
Real estate agencies
Banks, mortgage firms
Insurance brokers
Painters and interiors designers
Insurance companies
Financing
Garages and
Cars builders
Car dealers
and brokers
mechanics
The global supply
The industry supply
43
META-MARKETS Managerial implications
  • 1. Do not define your reference market in terms
    of product categories.
  • (cars, metallic gates, detergents, toys)

44
META-MARKETS Managerial implications
  • 1. Do not define your reference market in terms
    of product categories.
  • (cars, metallic gates, detergents, toys)
  • 2. Refer to the result or the generic outcome
    customers want to achieve.
  • (personal mobility, access control, home
    care, edutainment,)

45
META-MARKETS Managerial implications
  • 1. Do not define your reference market in terms
    of product categories.
  • (cars, metallic gates, detergents, toys)
  • 2. Refer to the result or the generic outcome
    customers want to achieve.
  • (personal mobility, access control, home
    care, edutainment,)
  • 3. Identify all the activities that, from the
    customer point of view, are part of the virtual
    market.

46
META-MARKETS Managerial implications
  • 1. Do not define your reference market in terms
    of product categories.
  • (cars, metallic gates, detergents, toys)
  • 2. Refer to the result or the generic outcome
    customers want to achieve.
  • (personal mobility, access control, home
    care, edutainment,)
  • 3. Identify all the activities that, from the
    customer point of view, are part of the virtual
    market.
  • 4. Create the reference meta market by
    reproducing in the physical market place the
    mental associations made by customers.

47
META-MARKETS Managerial implications
  • 1. Do not define your reference market in terms
    of product categories.
  • (cars, metallic gates, detergents, toys)
  • 2. Refer to the result or the generic outcome
    customers want to achieve.
  • (personal mobility, access control, home
    care, edutainment,)
  • 3. Identify all the activities that, from the
    customer point of view, are part of the virtual
    market.
  • 4. Create the reference meta market by
    reproducing in the physical market place the
    mental associations made by customers.
  • 5. Present the total solution customers seek.

48
BENEFITS OF THE META-MARKET CONCEPT
  • 1. The concept is perfectly aligned on the
    customer views and therefore facilitates
    communication.

49
BENEFITS OF THE META-MARKET CONCEPT
  • 1. The concept is perfectly aligned on the
    customer views and therefore facilitates
    communication.
  • 2. The revenue potential of a meta-market is
    always larger than the discrete
    product-market.

50
BENEFITS OF THE META-MARKET CONCEPT
  • 1. The concept is perfectly aligned on the
    customer views and therefore facilitates
    communication.
  • 2. The revenue potential of a meta-market is
    always larger than the discrete product-market.
  • 3. It enables the firm to offer a total
    solution to customers thereby building
    exclusivity, loyalty and trust.

51
BENEFITS OF THE META-MARKET CONCEPT
  • 1. The concept is perfectly aligned on the
    customer views and therefore facilitates
    communication.
  • 2. The revenue potential of a meta-market is
    always larger than the discrete product-market.
  • 3. It enables the firm to offer a total
    solution to customers thereby building
    exclusivity, loyalty and trust.
  • 4. It helps identifying growth opportunities
    in activities directly or indirectly related to
    the core service.

52
BENEFITS OF THE META-MARKET CONCEPT
  • 1. The concept is perfectly aligned on the
    customer views and therefore facilitates
    communication.
  • 2. The revenue potential of a meta-market is
    always larger than the discrete product-market.
  • 3. It enables the firm to offer a total
    solution to customers thereby building
    exclusivity, loyalty and trust.
  • 4. It helps identifying growth opportunities
    in activities directly or indirectly related to
    the core service.
  • 5. It helps identifying who are the indirect
    (or substitute) competitors.

53
3. How customer orientation leads to growth
opportunities? Analyze the customer
activity cycle
54
THE ACTIVITY CHAIN CONCEPT
  • A virtual market is a sequence of logically,
    directly or indirectly, related activities
    customers engage in to achieve a specific
    outcome.

55
THE ACTIVITY CHAIN CONCEPT
  • Pre, or before when customers are deciding what
    to do to get the result desired.
  • During When customers are doing what they
    decided on.
  • Post, after when customers are maintaining the
    result, reviewing, renewing, extending, upgrading
    and updating

56
THE PRIMARY ACTIVITY CYCLE
Before customer is deciding what to do
Post Customer is keeping it going
During Customer is doing it
Customer- Activity cycle
57
STRUCTURE OF THE ACTIVITY CHAIN
  • PRIMARY ACTIVITY CHAIN
  • A sequence of logically and directly
    related activities customers engage in to achieve
    a specific outcome.
  • (Visiting a car dealer on the car
    ownership chain is a primary activity)

58
STRUCTURE OF THE ACTIVITY CHAIN
  • PRIMARY ACTIVITY CHAIN
  • A sequence of logically and directly
    related activities customers engage in to achieve
    a specific outcome.
  • (Visiting a car dealer on the car
    ownership chain is a primary activity)
  • ADJACENT ACTIVITY CHAINS
  • A sequence of logically but indirectly
    related activities engaged by the customer in its
    search of the problem solution.
  • (seeking car insurance quotes is a
    complementary activity that falls in a adjacent
    chain)

59
The Growth Opportunity Matrix
Adding new activities
1. Primary chain extension
3. Adjacent chain broadening
How ? Type of growth
4. Adjacent chain reconfiguration
2. Primary chain reconfiguration
Reconfiguring existing activities
Primary activity chain
Adjacent activity chain
Where ? Focus on growth
60
PRIMARY ACTIVITY CHAIN EXTENSION
Moving along the customer activity chain by
adding new services
61
THE CUSTOMER ACTIVITY CYCLE Search for value gaps
Before customer is deciding what to do
Value Gap
Post Customer is keeping it going
During Customer is doing it
Customer- Activity cycle
Value Gap
62
PRIMARY ACTIVITY CHAIN EXTENSION
  • Can services be added that precede the sale of
    the core product?
  • Can services be added that follow the sale of the
    core product?
  • Can services be added to accompany the product?
  • Can the product be augmented with network based
    services?
  • Can the product be updated with services ?

63
The Dutch Construction Group Heimans N.V
Before Customer is deciding what to do
Value gap Project development
During Customer is doing it
Customer Activity cycle
Post Customer is keeping it going
Core business Construction capacity
Value gap Maintenance activities
64
2. PRIMARY ACTIVITY CHAIN RECONFIGURATION
Changing the structure of the primary chain by
shifting the boundary between the activities
performed by the customer and by the firm."
65
2. PRIMARY ACTIVITY CHAIN RECONFIGURATION
  • Can customer burdens involving customization be
    reduced?
  • Can customer burdens involving product storage be
    reduced?
  • Can process expertise be leveraged?
  • Can customers inventory control and stocking
    processes be replaced?
  • Can processes unrelated to customers core
    competences or strategic objectives be taken
    over?

66
3. ADJACENT ACTIVITY CHAIN BROADENING
  • Introducing new services, not typically
    part of the primary chain, but closely associated
    with it.

67
3. ADJACENT ACTIVITY CHAIN BROADENING
  • Can products become platform for embedded
    services?
  • Can the existing customer base be rented?
  • Can the existing customer interface be leveraged?

68
4. ADJACENT ACTIVITY CHAIN RECONFIGURATION
  • Taking charge of activities in an adjacent
    chain.

69
4. ADJACENT ACTIVITY CHAIN RECONFIGURATION
  • Can services be added to integrate complementary
    customer activities?
  • Can services be added to leverage the brand?
  • Can services change the way customers acquire
    products?

70
MANAGING THE RISKS Three types of risk
  • 1. CAPABILITY RISK
  • 2. MARKET RISK
  • 3. FINANCIAL RISK

71
1. CAPABILITY RISKS
  • Can we execute and deliver?
  • Do we have the organizational culture to sell
    services?

72
2. MARKET RISKS
  • Will customers adopt the service provided?
  • Are we credible as a service provider among our
    customers base?

73
3. FINANCIAL RISKS
  • Can we make money?
  • Is the initial cost of development not too high?

74
4. How customer value generates shareholder
value? Analyze the customer response chain
75
Customer value triggers a chain of effects
Perceived value
Satisfaction
Trust
Affect
LOYALTY
76
TRUST AND AFFECT
  • TRUST
  • The willingness of the customer to rely on the
    ability
  • of the brand to perform its stated function.
  • AFFECT
  • A brands potential to elicit a positive
    emotional response
  • as a result of its use.

77
LOYALTY BEHAVIORAL AND ATTITUDINAL
  • PURCHASE LOYALTY
  • Repeated purchases of the brand
  • ATTITUDINAL LOYALTY
  • A dispositional commitment in terms of some
  • unique value associated with the brand

78
The Satisfaction
-
Loyalty Relationship
PURCHASE LOYALTY
100
Highly competitive market
Low switching costs
Many substitutes
50
0
5
2
3
1
4
SATISFACTION
1
completely dissatisfied
5
completely satisfied
79
Impact on the Economic Performance
Customer value (utilitarian and hedonic)
Brand trust
Purchase loyalty
Market share
Brand affect
Attitudinal loyalty
Relative price
Brand strengths (differentiation and share of
voice)
80
NET PROFIT CONTRIBUTION (NPC)
Variable cost per unit
Price per unit
Marketing expenses
Market share
-
Market demand
-
NPC
x
x
81
NET PROFIT CONTRIBUTION (NPC)
Strategies to target the virtual market
Strategies to increase value for customers
Variable cost per unit
Price per unit
Marketing expenses
Market share
-
Market demand
-
NPC
x
x
Strategies to increase market share
Strategies to increase marketing efficiency
82
CONCLUSIONS
  • 1. Market-driven management implies
    culture,analysis and action. In the global
    economy, being action-oriented in not enough.

83
CONCLUSIONS
  • 1. Market-driven management implies
    culture,analysis and action. In the global
    economy, being action-oriented in not enough.
  • 2. Customers are looking for the total
    solution of their problems and the firm should
    target the customer mental reference market .

84
CONCLUSIONS
  • 1. Market-driven management implies
    culture,analysis and action. In the global
    economy, being action-oriented in not enough.
  • 2. Customers are looking for the total
    solution of their problems and the firm should
    target the customer mental reference market .
  • 3. Referring to customer mental virtual
    markets offer to the firm attractive growth
    opportunities.

85
CONCLUSIONS
  • 1. Market-driven management implies
    culture,analysis and action. In the global
    economy, being action-oriented in not enough.
  • 2. Customers are looking for the total
    solution of their problems and the firm should
    target the customer mental reference market .
  • 3. Referring to customer mental virtual
    markets offer to the firm attractive growth
    opportunities.
  • 4. Customer value generates satisfaction,
    trust and loyalty, thereby creating shareholder
    value.

86
BIBLIOGRAPHY
  • J.J. Lambin (2000), Market-driven Management,
    London, Palmgrave Macmillan. See also the Russian
    translation, Saint Petersburg, Piter 2004.
  • S. Vandermerwe, (2000), How Increasing Value to
    Customers Improves Business Results, Sloan
    Management Review, Fall.
  • A.Chaudhuri and M.B. Holbrook, (2001), The Chain
    of Effects from Brand Trust and Brand Affect to
    Brand Performance the Role of Brand Loyalty,
    Journal of Marketing, Vol.65, April.
  • M. Sawhney, S. Balasubramanian and V.V
    Krishnan,(2004), Creating Growth with Services,
    Sloan Management Review, Winter.

87
PRIMARY ACTIVITY CHAIN EXTENSION Moving along
the customer activity chain by adding new
services
  • Can services be added that precede the sale of
    the core product?
  • (Training courses organized by
    computer companies)
  • Can services be added that follow the sale of the
    core product?
  • (Maintenance activities)
  • Can services be added to accompany the product?
  • (Assistance in use)
  • Can the product be augmented with network based
    services
  • (On line access to a range of
    software for complex applications)
  • Can the product be updated with services ?
  • (Anti-virus software regularly
    updated)

88
2. PRIMARY ACTIVITY CHAIN RECONFIGURATION
  • Can customer burdens involving customization be
    reduced?
  • (Dell provides services into the IT
    operations of its customers)
  • Can customer burdens involving product storage be
    reduced?
  • (Companies store customers products off
    season)
  • Can process expertise be leveraged?
  • (Dupont is running Fords paint shop)
  • Can customers inventory control and stocking
    processes be replaced?
  • (PG is handling these activities
    for Wal-Mart stores)
  • Can processes unrelated to customers core
    competences or strategic objectives be taken
    over?
  • (Companies subcontract non strategic
    tasks,like cleaning, maintenance, repair,..)

89
3. ADJACENT ACTIVITY CHAIN BROADENING Introducing
new services, not typically part of the primary
chain, but closely associated with it.
  • Can products become platform for embedded
    services?
  • (digital camera embedded in mobile
    phones)
  • Can the existing customer base be rented?
  • (Subscribers of a magazine receive
    special deals, or credit card holders)
  • Can the existing customer interface be leveraged?
  • (eBay teams with consulting firms to
    offer the services of professional working on
    web-delivered projects)

90
4. ADJACENT ACTIVITY CHAIN RECONFIGURATION
  • Can services be added to integrate complementary
    customer activities?
  • (Nike involvement in sport camps)
  • Can services be added to leverage the brand?
  • (The reputation of the John Deere
    brand allows the company to sell credit card and
    operating loans to farmers)
  • Can services change the way customers acquire
    products?
  • (the Nespresso system has changed
    customers habits in coffee purchasing)

91
1. CAPABILITY RISKS CAN WE DO IT?
  • ORGANIZATIONAL STRATEGIES THE PEOPLE
  • Incubate separately
  • Create, acquire or partner with a
    company having the service culture
  • DESIGN STRATEGIES THE OFFERING
  • Design services that build on
    existing product platforms
  • Design product architectures to
    support services
  • Involve lead users
  • DEVELOPMENT STRATEGIES THE PROCESS
  • Use partners to fill competence gaps
  • Inventory new competencies

92
2. MARKET RISKS WILL CUSTOMERS COME?
  • ORGANIZATIONAL STRATEGIES THE PEOPLE
  • Focus on existing customers
  • Train sales force to get an early
    adoption success stories
  • Train sales force to manage customer
    expectations
  • Train the sales force to clarify
    expected costs and income
  • DESIGN STRATEGIES THE OFFERING
  • Use partners to fill in reputation
    gaps
  • Offer trial periods
  • Reduce customer adoption risk (e.g.
    pay from savings)
  • DEVELOPMENT STRATEGIES THE PROCESS
  • Prototype and iteration
  • Blueprint to customers specifications

93
3. FINANCIAL RISKS CAN WE MAKE MONEY?
  • ORGANIZATIONAL STRATEGIES THE PEOPLE
  • Use partner assets
  • Use the internet to decrease labor
    costs
  • Encourage customer self service and
    automated service
  • DESIGN STRATEGIES THE OFFERING
  • For smaller customers, create
    productized versions of services
  • Use annuity payment model to obtain
    steady revenues
  • DEVELOPMENT STRATEGIES THE PROCESS
  • Quantify economic value to customers
    and compare with service delivery costs.
  • Perform robust, early and frequent
    economic value analyses.
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