Digital Transformation in the PLM domain - distrib.pdf
CFO/Controllers Circle 2011, sessie 2
1. Geert Desmet Maastricht, 15-06-2011
value creation & sustainable
competitive advantage
waardecreatie & duurzaam
concurrentievoordeel
Geert Desmet
Adjunct Professor of Strategic Marketing
the big picture
Controller's Circle 1
3. Geert Desmet Maastricht, 15-06-2011
(customer) value creation
(klant-) waardecreatie
business strategy
“Strategy is the art of creating value for the customer.
This can only be done by offering a product or service
that corresponds to customer needs. In a fast changing
business environment, the factors that determine value
are constantly changing.”
Adrian Slywotzky
Maastricht, 15-06-2011 Controller's Circle 7
Controller's Circle 3
4. Geert Desmet Maastricht, 15-06-2011
customer value build up
customer value creation - problem solving capacity
- what the product does
product - technical quality
benefits
- complementarities
brand - compatibility
benefits
- innovativeness
service
benefits - up-to-datedness
- etc.
(Based on Kotler, 2001,, Frambach, 2001, Anderson & Narus, 1999, Best 2000, )
Maastricht, 15-06-2011 Controller's Circle 8
customer value build up
customer value creation
- its claim to fame
product - trust
benefits
- reliability
- status
brand
benefits - brand personality / image
service
benefits - etc. (see also Kapferer, 2003)
Maastricht, 15-06-2011 Controller's Circle 9
Controller's Circle 4
5. Geert Desmet Maastricht, 15-06-2011
customer value build up
- SLA’s
customer value creation
- location (retailer)
product
benefits
- parking space
- speed of delivery
brand - never out of stock
benefits
service - on-site assistance
benefits
- pre & after sales services
- etc.
Maastricht, 15-06-2011 Controller's Circle 10
customer value build up
customer value creation
product
benefits all efforts a
customer must
price
make to obtain the
brand
product
benefits
service acquisition
benefits costs
Maastricht, 15-06-2011 Controller's Circle 11
Controller's Circle 5
6. Geert Desmet Maastricht, 15-06-2011
customer value build up
customer value creation
customer value
product
benefits
price
brand
benefits
service acquisition
benefits costs
Maastricht, 15-06-2011 Controller's Circle 12
how customers perceive value
customer H excitement ‘Wow’
loyalty attributes
performance
attributes
L H
competitive
performance threshold
attributes
(basic
requirements)
L
Maastricht, 15-06-2011 Controller's Circle 16
Controller's Circle 6
7. Geert Desmet Maastricht, 15-06-2011
value proposition
waardepropositie
value proposition
who
who: served customer
groups (segments)
what: served customer
functions (needs)
how: technologies utilised
(satisfaction mechanism)
what
how
Derek F. Abell domain matrix (Harvard)
Maastricht, 15-06-2011 Controller's Circle 22
Controller's Circle 7
8. Geert Desmet Maastricht, 15-06-2011
value proposition - what
who
‘what’ =
bundle of attributes
• threshold attributes
• performance attributes
• excitement attributes
what
how
Maastricht, 15-06-2011 Controller's Circle 23
historical perspective:
what is a “value proposition”?
The ‘product’…. is the total
bundle of benefits the
customer receives when he
or she buys it”
Theodore Levit, 1980
Maastricht, 15-06-2011 Controller's Circle 24
Controller's Circle 8
9. Geert Desmet Maastricht, 15-06-2011
what to offer: value proposition
from the 4 P’s to the 4 (value driven) C’s
Product to Customer value
Promotion to Communication
Place to Convenience
Price to Costs
(based on Kotler, 2001,, Frambach, 2001, Anderson & Narus, 1999, Best 2000, )
Maastricht, 15-06-2011 Controller's Circle 25
value creation & innovation
customer H excitement ‘Wow’
attributes
satisfaction radical ?
performance
? attributes
incremental
L H
competitive
performance threshold ?
process attributes
(basic
requirements)
L
Maastricht, 15-06-2011 Controller's Circle 26
Controller's Circle 9
10. Geert Desmet Maastricht, 15-06-2011
sustainable competitive
advantage
duurzaam concurrentievoordeel
competitive advantage
competitive advantage is all about choosing a
distinctive customer value proposition:
“A (marketing) strategy must start with a different value
proposition. Strategy delineates a territory in which a
company seeks to be unique. It is about making choices.
You can’t be all things to all people”
M. Porter, interview in Fast Company (March 2001)
Maastricht, 15-06-2011 Controller's Circle 30
Controller's Circle 10
11. Geert Desmet Maastricht, 15-06-2011
distinctive value proposition
who how to make the value
proposition distinctive:
– be different
or
– be better
(one way to be better is to
what be cheaper)
how
Maastricht, 15-06-2011 Controller's Circle 32
developing a differentiated value
proposition REDUCE
what factors should be reduced well below the industry standard?
ELIMINATE CREATE
what factors should what factors should
be eliminated that NEW VALUE be created that the
the industry has PROPOSITION industry has never
taken for granted? offered?
what factors should be raised well beyond the industry standard?
RAISE
Maastricht, 15-06-2011 Controller's Circle 33
Controller's Circle 11
12. Geert Desmet Maastricht, 15-06-2011
differentiation: “typical”
industry
value industry
curves player
average
“almost
ideal”
value-attributes
attribute 1
value
attribute 2
curve
- ……
- ……
- ……
- ……
- ……
“ideal”
value
- ……
curve
- ……
- ……
- ……
- attribute last
low performance high
Maastricht, 15-06-2011 Controller's Circle 35
competitive advantage
“Competitive Strategy is about being different. It means
deliberately choosing a different set of activities to
deliver a unique mix of value.”
Maastricht, 15-06-2011 Controller's Circle 39
Controller's Circle 12
13. Geert Desmet Maastricht, 15-06-2011
competitive advantage
… per segment
not alle customers want the same …
so:
* niche-marketing
or
* portfolio-management
Maastricht, 15-06-2011 Controller's Circle 40
unsegmentation
segmentation
segmentation
• comprehensive / portfolio
• selective
niche
customization / 1-to-1
• pure
• tailored
• standardized
Maastricht, 15-06-2011 Controller's Circle 41
Controller's Circle 13
14. Geert Desmet Maastricht, 15-06-2011
fundamental options for
business strategy
Treacy & Wiersema’s
3 strategies
product leadership “best product”
“best product”
focus: innovation
operational excellence product
leadership
“best total cost”
focus: supply chain management
operational customer
excellence intimacy
customer intimacy
“best solution” “best total cost” “best solution”
focus: customer insights
Maastricht, 15-06-2011 Controller's Circle 45
Controller's Circle 14
15. Geert Desmet Maastricht, 15-06-2011
Treacy & Wiersema’s
3 strategies
product leadership
State-of-the-art nieuw product/dienst * Nieuw type dienstverlening
Premium prijs * Snel door de klant te verwerven
operational excellence
Gestandaardiseerde, modulaire product/dienst * Beperkte, iedereen-is-gelijk dienstverlening
Relatief lage prijs * Gemakkelijk door de klant te verwerven
customer intimacy
Totaaloplossing product/dienst * Op klanten toegesneden dienstverlening
Premium prijs * Gegevens beschikbaar stellen aan de leverancier
Maastricht, 15-06-2011 Controller's Circle 46
- blanc -
Maastricht, 15-06-2011 Controller's Circle 47
Controller's Circle 15
18. Geert Desmet Maastricht, 15-06-2011
VC2 framework
value creation new business model
H
nightmare heaven
V>C V>C law of gravity
P=C P>C
horizontal game
hell dream
innovation
V=C V=C
P=C P>C
L
value capturing
L H
Maastricht, 15-06-2011 Controller's Circle 52
never stop asking
g.a.desmet@tiasnimbas.edu
Controller's Circle 18