1. Innovation Benefits Realization
Management for Implementing
BLUE OCEAN STRATEGY
5 Phase-Gates For Managing Innovation
From Formulation to Implementation
By Dr. Iain Sanders, Design for Innovation, New Zealand
1
2. By way of introduction…
• This is part-1 of a 5 part series on -
Innovation Benefits Realization:
1. Innovation Benefits Realization Management:
Blue Ocean Strategy
2. Innovation Benefits Realization:
7 Levels to Manage
3. Innovation Benefits Realization: Ideation TRIZ
4. Innovation Benefits Realization:
Managing Complexity
5. New Product Development Process:
NZTE Workshop
(The other parts can be viewed here:
http://www.designforinnovation.com/portfolio.html) 2
3. Design for Innovation
What is Blue Ocean Strategy (BOS)?
• BOS is the result of a decade-long study of 150 strategic
moves spanning more than 30 industries over 100 years
(1880-2000).
• BOS is the simultaneous pursuit of differentiation and low
cost.
• The aim of BOS is not to out-perform the competition in
the existing industry, but to create new market space or a
blue ocean, thereby making the competition irrelevant.
• While innovation has been seen as a random/experimental
process where entrepreneurs and spin-offs are the primary
drivers:
– BOS offers systematic and reproducible methodologies and
processes in pursuit of innovation by both new and existing
firms. 3
4. Design for Innovation
Blue Ocean Strategy Imperative
• Prospects in most established market spaces (red oceans)
are shrinking steadily.
• Technological advances have substantially improved
industrial productivity, permitting suppliers to produce an
unprecedented array of products and services.
• And as trade barriers between nations and regions fall and
information on products and prices becomes instantly and
globally available, niche markets and monopoly havens are
continuing to disappear.
• At the same time, there is little evidence of any increase in
demand, at least in the developed markets, where recent
United Nations statistics even point to declining
populations…
4
5. Emerging
economies have
developed the They have access
business to virtually limitless
development resources…
capabilities of
OECD economies…
An endless stream
A bottomless pool of hungry,
of cheap labour… motivated and
skilled workers
Thanks to Low Cost
Differentiation!
5
6. idea creation & management, product
innovation & development, business
process improvements
Value-Creation random arrays of internal business opportunities
Barometer driven by project / business requirements
No training and leadership to formulate and
6
implement blue ocean strategy…
7. “Systematic value capture,
Value-Creation evaluation and development”
Barometer Internally managed and developed product development process
Connections enable continuous innovation
Some training and leadership to formulate and
7
implement blue ocean strategy…
8. “Leadership-driven Value Creation”
Value-Creation
Internally and externally managed and developed
Barometer
product innovation and development process
These people drive the
creation of new ventures
and spin-outs, JVs etc.
(True entrepreneurs)
Cluster activities are driven by strong leadership
Significant training and leadership to formulate
8
and implement blue ocean strategy…
9. BUSINESS ASSET-CREATING NETWORKS
“Systematic Value Capture-Creation for New Ventures”
Value-Creation
Internally and externally adaptable and evolving value
Barometer capture-creation: new ventures initiated anywhere at anytime
New Asset
Cluster
New
Venture
Blue Ocean Creation
Strategy Network-venturing
Formulation & brokers are the key
Implementation to creating endless
is the Norm
possibilities in an
innovative climate!
Network-venturing among business asset
9
clusters to create new kinds of assets, faster
10. Design for Innovation
Technology Innovation
Typology of Technological Innovations at the Enterprise Level
High Strategic
Systemic
Innovation
Continuous
Degree Incremental
of Innovation
Management
Radical Innovation
Unplanned
Improvements
Low
Degree of Leadership and
Low High
Contribution to Competitiveness
AGILE INNOVATION FOR SUSTAINABLE COMPETITIVE ADVANTAGE 10
11. Moving With Speed: Agility
Opportunity-driven Business Development
Fast Fast Fast Sustaining
thinking decision- to speed
making market
Forecasting & Setting rules Launching a Simplicity
road-mapping crusade
Getting rid of Boundarylessness
Anticipating bureaucracy Owning
competitive Self-confidence &
Spotting trends Shuffling advantage growth attitude
portfolios
Brainstorming Getting suppliers Financial flexibility
Unpacking move fast
Putting every proposals Business Process
idea through the Staying beneath Mgmt System
“grinder” Constantly the radar
reassessing Managing creativity
Letting the best Institutionalizing
idea win innovation Staying close to the
Adapted from
customer 11
“It’s not be big that eat the small…It’s the fast that eats the slow”, J.Jennings & L.Haughton
12. Survival vs. Market Leadership Strategies Design for Innovation
Entry ticket to the SURVIVAL STRATEGY LEADERSHIP STRATEGY
competition game Staying alive Targeting market leadership
Winning and Retaining Customers
Creating higher customer
Customer Value Low cost/benefit ratio
value
Differentiation and
Marketing Strategy Mass marketing
positioning
Customer Satisfaction Customer service Customer intimacy
New attributes & Line New product categories &
Product Innovation
extensions New brands
Building Your Competitive Advantage
Building distinctive
Strategic Growth Focus Building resources
capabilities
D4I
Innovation Linear Systemic
Technology Innovation Incremental Radical
FOCUS
Process Innovation Functional improvements Enterprise-wide BPM
Perfecting traditional Creating new adaptable
Business Innovation 12
business model business models
17. Strategic Alignment of Business
Priorities with Opportunities
2. What can we use?
(Relevant Context: Customer Needs)
1. Where are we going?
(External Perspective: Market Scenarios)
3. How do we use it?
(Formulate Strategy: Identify & Evaluate Opportunities) 17
18. Design for Innovation
5 Phase-Gates to Manage:
1. Where are we Going?
2. What can we Use Now?
3. Create New Possibilities.
4. Select Best Possibilities.
5. Take Appropriate Action.
18
20. How do we compete more effectively?
Existing Value New Value
New Expand into Diversify and
Context new markets expand into
or applications new markets
Existing Maintain Diversify and
Context current deepen existing
strategy relationships
What is our key value proposition?
20
21. Product-Market Matrix:
Current Market New Market
New Product
Product Diversification
Development
Current Market Market
Product Penetration Development
21
22. Product-Market Matrix:
Current Market New Market
Make new product
This strategy chosen in
offers more effectively
conjunction with one or
and inexpensively to
more of the others or
existing customers
when a crisis has been
rather than to new
recognized
ones
New Product
Product Diversification
Development
Current Market Market
Product Penetration Development
Well-developed
products introduced
De facto strategy: into new markets to
change nothing and sell extend value: ideal
more of the same to when little
existing customers and modification required &
extend customer base room for growth in
original market is22
restricted
23. Green Mountain Coffee Roasters Strategy
Current Market New Market
Phase 3:
New Sell
Product Complimentary
Products
Phase 2:
Current Phase 1:
Expand Base via
Product Sell to
Catalogue, Viral
Core Market
Marketing
23
24. Product-Customer Matrix:
Old Customers New Customers
New Define new
Approach with
Product components and
caution
solution needs
Increase Market and reach
Old marketing new customers,
Product intensity and improve
awareness scalability
24
25. Product-Customer Matrix:
Old Customers New Customers
New Define new
Approach with
Product components and
caution
solution needs
Move transaction services
horizontally
Increase Market and reach
Old marketing new customers,
Product intensity and improve
awareness scalability
Develop new emerging
“retail” customers
25
26. Product-Customer Matrix:
Old Customers New Customers
Better solution
architectures, New devices, broader control
partnered products of customer network
New Define new
Approach with
Product components and
caution
solution needs
Move transaction services
horizontally
Increase Market and reach
Old marketing new customers,
Product intensity and improve
awareness scalability
Develop new emerging
“retail” customers
26
27. Charting the Future
• FUTURE SCENARIOS
– What will the ECONOMIC ENVIRONMENT look like in X years?
– What will the POLITICAL ENVIRONMENT look like in X years?
– What will the REGULATORY & LEGISLATIVE ENVIRONMENT look like in X
years?
– What will the DEMOGRAPHIC & SOCIAL ENVIRONMENT look like in X years?
– What will the MARKETS look like in X years?
– What will CUSTOMER / USER PROFILES & HABITS look like in X years?
– What will the COMPETITIVE ENVIRONMENT look like in X years?
– What will the next two to three GENERATIONS OF TECHNOLOGY look like in
X years?
– What FEATURES & CONTENT will PRODUCTS have in the next X years?
– What will MANUFACTURING PROCESSES & CAPABILITIES look like in X
years?
– What will SALES / MARKETING METHODS look like in X years?
– What will DELIVERY / DISTRIBUTION METHODS & SYSTEMS look like in X
years?
– What will HUMAN, FINANCIAL, & NATURAL RESOURCES look like in X years?
27
28. PULL or PUSH Economy?
• PULL ECONOMY • PUSH ECONOMY
– SUPPLY VS. DEMAND – DEMAND VS. SUPPLY
– CUSTOMER-DRIVEN – PRODUCER-DRIVEN
– MARKET FRAGMENTATION – MARKET SEGMENTATION
– SMALLER NUMBERS OF
CUSTOMERS, DISSIMILAR – LARGE NUMBERS OF
NEEDS CUSTOMERS, SIMILAR
– TAILORED PRODUCTS NEEDS
– PREMIUM PRICES – GENERIC PRODUCT
– SHORTER PRODUCTION – COMMODITY PRICES
RUNS – LONG PRODUCTION RUNS
– FLEXIBLE, EFFECTIVE – EFFICIENT
MANUFACTURING MANUFACTURING
– SHORTER PRODUCT CYCLES – LONG PRODUCT CYCLES
– LITTLE BRAND LOYALTY
– STRONG BRAND LOYALTY
– PROCESS INNOVATION
– PRODUCT INNOVATION
– CHANGING RULES
– FAST & NIMBLE – FIXED RULES
– STURDY & STABLE 28
30. Quantify Opportunities:
Served Customers Unserved Customers
Unarticulated-Served Unarticulated-
Customers: potential Unserved Customers:
for satisfied customers proactive and visionary
to become frustrated companies like Honda
or uninterested if seek to get inside he
unexpressed but felt heads & experiences of
needs not addressed unaddressed customers
Unarticulated Unexploited Unexploited
Needs Opportunities Opportunities
Articulated Exploited Unexploited
Needs Opportunities Opportunities
Articulated-Unserved
Customers: offerings
Articulated-Served
developed & perfected
Customers: known
for existing customers
world of customer
extended to new
needs
customers in different
markets 30
31. Design for Innovation
Blue Ocean Strategy in Action
• To reconstruct buyer value elements in crafting
a new value curve, a Four Actions Framework is
used.
• To break the trade-off between product / service
differentiation and low cost, and to create a new
value curve, four key questions are used to
challenge an industry's strategic logic and
business model:
31
32. Design for Innovation
Four Key Questions to Challenge
Strategic Logic and Business Model:
• Which of the factors that the industry
takes for granted should be eliminated ?
• Which factors should be reduced well
below the industry's standard?
• Which factors should be raised well above
the industry's standard?
• Which factors should be created that the
industry has never offered?
32
33. Where are we going?
Existing Industrial Changing Industrial
Standards Standards
Reduce /
Over-shot Change
Eliminate
Customers Consumers
Factors
Raise /
Under-shot
Create Nonconsumers
Customers
Factors
33
34. Where are we going?
Existing Industrial Changing Industrial
Standards Standards
Which factors
Which factors that
should be reduced
the industry takes
well below the
for granted should
industry’s
be eliminated?
standard?
Reduce /
Over-shot Change
Eliminate
Customers Consumers
Factors
Raise /
Under-shot
Create Nonconsumers
Customers
Factors
Which factors
Which factors
should be raised
should be created
well above the
that the industry
industry’s
has never offered?
standard?
34
37. Market Entry / Growth Scenarios
SCENARIO 1 SCENARIO 2 SCENARIO 3
Non-consumers converted via cost, Non-market legal barriers or Business models exploit non-market
access or education distortions overcome or bypassed regulatory barriers without
addressing economic constraints
Example: telephone replacing Example: Wireless bypasses telecom
telegraph, wireless replacing cable monopoly access to customers Example: Revolving loans for
bundled Renewable Energy options
address reliability requirements but
not economies of scale constraints
SCENARIO 4 SCENARIO 5 SCENARIO 6
Non-market forces will not remove Non-market forces will not overcome New business models emerge to
technological interdependence lack of industrial motivation or serve least demanding overshot
ability customers
Example: Broadband ISPs dependent
on telecom landline access Example: Artificial price-fixing at Example: Advertising revenue model
petrol pump for free Google software
SCENARIO 7 SCENARIO 8 SCENARIO 9
Specialists entering and displacing Standards or rules allow different Sustaining new, and/or improved
integrated players for overshot providers to meet min. requirements products and services for undershot
customers of overshot customer segments customers: integrators thrive,
specialists struggle
Example: DataCol meter reading Example: Parallel imports of solar
services for electric utilities hot water systems, synthetic Example: Windows operating system
substitutes and other appliances
37
38. Signals of Change
1. What jobs are customers in the industry trying to get
done? Are customers not served, undershot, or
overshot by current offerings? Along which
dimensions do firms compete for customers?
2. What improvements garnered premium prices in the
past?
3. Do integrated or specialized business models
currently prevail? Are interfaces specifiable,
verifiable, and predictable? If so, where is
modularity occurring?
4. Where are new business models emerging? Is there
growth in fringe markets?
5. What role does the government or its regulatory
bodies play in enhancing or inhibiting innovation?38
39. Competitive Battles
1. What are industry players’ business models? What
are their motivations? What are their skills?
2. How do industry players compare to one another?
How do they compare to the needs of the market?
Where are there symmetries? Where are there
asymmetries?
3. Do the asymmetries tilt in favour of the attacker or
the incumbent?
4. Does the innovation naturally fit its target market? Is
there evidence of cramming (forced fit)?
5. Are there signs that a company is ceding a low-end
market and trying to move up? Is there an “up” to
move to? For how long? 39
40. Strategic Choices
1. Is a company in a situation in which the right
strategy needs to emerge? Is the firm giving itself
the freedom to encourage emergent forces? Have
managers wrestled with problems they are likely to
face again? Have they shown the capacity to learn?
2. Are investor values aligned with company needs? If
the investor is a corporation, has growth stalled?
3. Do value networks overlap? If they do, what are the
degrees of overlap? Do they make it impossible to
create a business model that has asymmetries?
4. Is this an appropriate situation for a spinout? Is the
company giving the spinout the freedom to do what
is necessary? 40
41. Design for Innovation
Creating the Future
• “The best way to manage the future?
Create it!”
– The best competitive position to be in is to
have no competition
• This position can only be achieved by NOT playing
the way your competition plays the game but
rather by controlling the game, by creating
products and services that change the rules in
your favour.
41
42. Design for Innovation
How to Create the Future
Use a framework that classifies best-practice business processes for
identifying, developing and retaining customers
The first-level processes in this framework for identifying best-
practice business opportunities, define a company‟s basic operations,
such as:
1. Understand markets and customers
2. Involve customers in the design of products and services
3. Market and sell products and services
4. Involve customers in the delivery of products and services.
5. Provide customer service
6. Manage customer information
Supporting these basic operations, management and support
processes maximize the value and use of human resources,
information and technology, and financial and physical resources, to
name a few 42
43. Design for Innovation
Set Strategic Direction
• Which way is the business heading?
1. What (if anything) gives this business distinctiveness?
2. What skills does this business currently have that are better than those of the
competition? Can this advantage be sustained for a period of more than a few
years?
3. How is this organization generally regarded in the industry or by outside
experts? How do outsiders see the business's strategy? What do they think
about it?
4. What are this organization's strengths in creating a high performing business?
5. What are the biggest roadblocks to this business becoming a high performing
business?
6. What does the business do? Why?
7. What does it not do? Why not?
8. Who are its customers / Who are not its customers?
9. What are its products / What are not its products?
10. What are its markets / What are not its markets?
11. Why is the business in this business & not another?
12. Why is the business focusing on these customers & not others? Why is it
providing these services (or making these products) & not others?
13. Does this business have more than one strategy?
43
44. Design for Innovation
Set Strategic Direction
• BUSINESS STRATEGY ISSUES
1. VISION, VALUES, PURPOSE
2. OVERALL DIRECTION
3. DESIRED OUTCOMES
4. LONG TERM OBJECTIVES
5. STRATEGY TO ACHIEVE OBJECTIVES
• IDENTIFYING BUSINESS STRATEGY ISSUES
– Identify 7 business strategy issues that need to be
addressed in your business plan, examining:
A. Strategic Issue
B. Impact
C. Action Required
44
46. Design for Innovation
Establish Clear Objectives
• What is the business trying to achieve in the near future?
– STRATEGIC
1. Has the business developed clear & formal objectives for the long-term as
well as the immediate future?
2. Are those objectives quantified in terms of rate & return, growth, market
share, product or service development?
3. Does the business know at what stage in their life cycles its products
currently are?
4. Does the business consider the following in its development of strategic
objectives:
Economic conditions, including the effects of inflation?
Political conditions?
Labour requirements?
Capital requirements?
Tax implications?
Production capacity?
5. Have the strategic objectives been embodied in a formalized financial plan
looking a number of years ahead?
6. Are the objectives & plans reviewed regularly & is the actual performance
monitored against the plan? 46
47. Design for Innovation
Establish Clear Objectives
• What is the business trying to achieve in the near future?
– OPERATIONAL
7. Is the role to be played by each individual Advisor in
achieving the plan clearly identified?
8. Have the Advisors developed their own business plans?
9. Is the business planning to expand in the coming year into a
new:
MARKET?
SERVICE?
CUSTOMER BASE?
47
48. Design for Innovation
Establish Clear Objectives
• DEVELOP CLEAR OBJECTIVES & PLANS
– S: SPECIFIC
– M: MEASURABLE
– A: ATTAINABLE
– R: REASONABLE & RESOURCED
– T: TIME BOUND
• KEY STRATEGIC OBJECTIVES
– Identify 7 key strategic objectives for your business, the
desired outcome, & how it can be measured, examining:
• STRATEGIC OBJECTIVE
• OUTCOME
• HOW MEASURED
48
50. Design for Innovation
Develop Marketing Strategy
• What market is the business in, & who are its customers?
1. Does our current marketing strategy give us the share of the local
market we might expect?
2. What kind of demand is there for our products & services?
3. Will our strategy provide us with a sustainable competitive
advantage?
4. Will this marketing strategy help us accomplish our business
objectives?
5. What kind of future opportunity is there if the business objectives
are achieved?
6. What are the vulnerabilities of this strategy?
7. Is this strategy consistent with the environment & changing
8. How does this strategy fare in future mapping or scenario analysis?
50
51. Design for Innovation
Develop Marketing Strategy
• DEVELOP MARKETING STRATEGY
1. DEFINING YOUR MARKET
2. IDENTIFYING TYPES OF CUSTOMERS
3. COMPETITORS
4. MARKETING STRATEGY
5. PRODUCTS & SERVICES
6. CUSTOMER SERVICE
• MARKET SEGMENTATION
– Identify the 7 key market segments for your business, identify
their future potential & what action is required:
A. SEGMENT
B. NUMBER OF CUSTOMERS PER MONTH
C. AVERAGE SPEND
D. ON WHAT?
E. POTENTIAL FOR DEVELOPMENT (HIGH, MEDIUM, LOW)
F. HOW TO DEVELOP 51
53. Customer Value Map Matrix:
Low Customer- High Customer-
perceived perceived
quality quality
High Customer- Worse Customer
perceived price Unique Value
Value
Low Customer- Better Customer
perceived price Commodity Value
Value
53
54. Customer Value Map Matrix:
Low Customer- High Customer-
Upscale goods and
Customer preferences perceived perceived services that offer
shift in economic quality quality unique value. Examples
downturns, higher- include: high-margin
priced products often products such as
find themselves in this custom jewelry for
position which close substitutes
not available
High Customer- Worse Customer
perceived price Unique Value
Value
Low Customer- Better Customer
perceived price Commodity Value
Value
Products perceived as
Goods are commodities
value leaders; costs are
with little
competitive, and the
differentiation between
products possess the
vendors, resulting in
quality attributes that
products selling on
customers value most
price
highly 54
55. Levi Jeans Example
Low Customer- High Customer-
perceived perceived
quality quality
High Customer- Worse Customer Normal Customer
perceived price Value Value
Low Customer- Normal Customer Better Customer
perceived price Value Value
55
56. Levi Jeans Example
Low Customer- High Customer-
perceived perceived
quality quality
Competitor 1
High Customer- Worse Customer
perceived price Value
Levi’s Competitor 2
Low Customer- Better Customer
perceived price Value
Competitor 3
56
57. Design for Innovation
How to Create the Future
Use a framework that classifies best-practice business processes for
identifying, developing and retaining customers
The first-level processes in this framework for identifying best-
practice business opportunities, define a company‟s basic operations,
such as:
1. Understand markets and customers
2. Involve customers in the design of products and services
3. Market and sell products and services
4. Involve customers in the delivery of products and services.
5. Provide customer service
6. Manage customer information
Supporting these basic operations, management and support
processes maximize the value and use of human resources,
information and technology, and financial and physical resources, to
name a few 57
59. SWOT Matrix:
Internal Internal
Threat matched with
Environment Environment weakness. Some threats
Threat is matched with
Strengths Weaknesses avoidable, and others are
organizational strength –
not. Confronting
mobilize to limit and
competitive threats with
control the looming
weakness is not only
danger
dangerous but drains
resources
External
Environment Confront Avoid or Prepare
Threats
External
Environment Exploit Search
Opportunities
Opportunity is matched
Opportunity is matched
with weakness.
with strength. Business’s
Opportunities exist that
growing edge – where it
the organization can
can capitalize on areas of
recognize but is not
strategic advantage
equipped to tackle
59
60. Generic Strategy Matrix:
Lower Cost for Differentiate for
Competitive Competitive
Advantage Advantage
Broad Target for
Competitive Cost Leadership Differentiation
Scope
Narrow Target Differentiation
for Competitive Cost Focus
Focus
Scope
60
61. Generic Strategy Matrix:
Lower Cost for Differentiate for
Deliver some unique
Competitive Competitive form of value that
Achieving the lowest
Advantage Advantage customers recognize
costs in an industry
and appreciate,
while maintaining an
developing or
acceptable level of
exploiting talents and
quality
resources that set the
company’s offer apart
Broad Target for
Competitive Cost Leadership Differentiation
Scope
Narrow Target Differentiation
for Competitive Cost Focus
Focus
Scope
Take advantage of the
unique needs of a Added value within a
segment of an industry small segment of a
that is difficult or market rather than
uneconomical for the across the entire
broad cost supplier to market
service adequately 61
62. Means and Ends Matrix:
Incompatible Compatible
Ends Ends
Compatible
Means Coalition Cooperation
Incompatible
Means Conflict Competition
62
63. Means and Ends Matrix:
Incompatible Compatible
Deliver some unique
Ends Ends form of value that
Formed by competitors
customers recognize
to address common,
and appreciate,
usually short-term
developing or
problems or
exploiting talents and
adversaries
resources that set the
company’s offer apart
Compatible
Means Coalition Cooperation
Incompatible
Means Conflict Competition
Companies within an
industry compete
Situations become against each other for
increasingly polarized, customers yet share
resulting in zero-sum, the need to educate the
win-lose outcomes public about their
collective value
63
proposition
64. Design for Innovation
How to Create the Future
The sub-processes (second-level processes) supporting the first-level
processes are as follows:
1. Understand markets and customers:
i. Understand the market environment
ii. Understand customers‟ wants and needs
iii. Segment customers
2. Involve customers in the design of products and services:
i. Develop new concepts and plans for products and services
ii. Design, build, and evaluate prototypes
iii. Refine and customize products or services, then test their effectiveness
3. Market and sell products and services:
i. Secure channels of distribution
ii. Establish pricing
iii. Develop advertising and promotion strategies
iv. Develop and deploy a sales force
v. Process orders
vi. Develop customers
64
65. Design for Innovation
How to Create the Future
The sub-processes (second-level processes) supporting the first-level
processes are as follows (continued):
4. Involve customers in the delivery of products and services:
i. Offer broad delivery options to become the „supplier of choice‟
ii. Use delivery customization to attract and retain core customers
iii. Identify customers‟ delivery needs
iv. Develop distribution capability
5. Provide customer service:
i. Establish „points-of-contact‟ excellence
ii. Build cross-functional „points-of-contact‟ cooperation
iii. Train employees to improve customers‟ expectations for products and services
6. Manage customer information:
i. Build customer profiles
ii. Establish service information
iii. Measure customer performance and satisfaction
65
66. Design for Innovation
How to Create the Future customers:
1. Best-practice agenda for understanding markets and
Understand that the market is more than just the customer. In its broadest sense, the market
environment includes the company‟s supply chain and merchant partners as well as intermediary
customers and end users. A company‟s understanding of government regulations, trends in
consumer purchasing, and unpredictable events can dramatically affect its production and
relationship with customers
Systematically create an image of the company‟s value chain, from suppliers to end users.
Prominently displayed, this diagram serves to inform all employees how they fit into the market
environment as well as how other stakeholders with whom they deal (customers, suppliers, and so
forth) also fit into the market environment
Survey your customers frequently, systematically, directly, and personally. Review the surveys and
then share them with the people in our organization who need to know what those customers have to
say. Responding personally to every survey, for example, should provide the norm for executive
behavior. If you don‟t have time to respond personally, make sure someone in your company does
Revise your products or services as customers request or tell them why they can‟t have it their way.
Promote the new version and resurvey customers to assess their satisfaction. Survey every
customer, for example, and require every employee linked to that customer to read and respond to
those comments. Requests for new products and services can lead to expanded offerings and even
new companies being launched
Segment customers so that you can meet demands more directly and profitably. Establish the criteria
by which customers should be grouped (by age, income, credit history, purchases, demographic
factors, and so forth), then offer products and services tailored to those segments. When appropriate,
partner with merchants and suppliers to create greater value for customers
66
67. Design for Innovation
How to Create the Future
1. Top ten best-practice diagnostic questions for understanding markets and
customers:
1. Can you describe in detail all the major suppliers in your company‟s value chain and list substitute
suppliers who could provide raw materials and component parts in an emergency? Do you need a
week‟s review to do so? (You won‟t have a week if a fire destroys a supplier‟s production plant.)
2. How often do you survey your customers? Once a month? Once a year? Once a millennium?
3. Which customers do you choose to survey? Only those who call you first?
4. How good is your process for responding to customer concerns expressed in surveys?
5. What quick, tangible rewards do you offer customers who take the time to complete one of your
surveys or requests for information?
6. What external sources other than surveys do you typically use to gather information about your
customers? About competitors? About suppliers? About trends in the marketplace?
7. What other internal sources do you use to collect this information?
8. List five (or more) segmentations that your company currently uses. Can you explain succinctly the
benefits it realizes from grouping customers as it does?
9. Name a product or service your company provides that has come about as a result of a customer
request or survey and has since improved your overall profitability.
10. Does your company have a process for customers to evaluate your employees and departments? Is it
similar to the Net Satisfaction Index that Dickens Data Systems has developed? Do you support
cross-functional teams to analyze customer needs and fulfill them?
67
68. Design for Innovation
How to Create the Future
2. Best-practice agenda for involving customers in the design of products and
services:
Survey customers for their opinions, ideas, feelings, likes, and dislikes about products or services.
Whenever possible, meet them face-to-face to discuss their views. Most important, listen closely to
what they have to say
From these surveys and other customer interactions, collect, categorize, and deliver information
about product use to the people in our organization who need it
Describe to your customers how they can help you understand their needs, then create products and
services that meet those demands. Define the values that this step of the process has for them: more
precisely customized products and services, speedier development, increased opportunities to
participate in the design stages, and greater savings in production and use
Make refinements in existing products and services, partnering with your customers either on their
premises or yours when possible. Share information both at home and at the customer‟s site
Test the refinement in a controlled environment with targeted segments of customers
Market the successfully refined product, but keep the doors open to further improvements as you
receive suggestions from your customers and as their needs change
68
69. Design for Innovation
How to Create the Future
2. Top ten best-practice diagnostic questions for involving customers in the
design of products and services:
1. How do you gather customer input about product design and use? Telephone or mail surveys?
Internet bulletin boards? Focus groups? Feasibility studies?
2. Do you have a team comprising representatives from various groups – manufacturing, engineering,
marketing, sales, and so forth – that goes out to meet with customers?
3. Have you ever allowed your customers to decide whether or not you should implement a change, as
Disney did in creating Mickey‟s Starland and character breakfasts?
4. To what extent do you involve customers in the design of prototypes? What about their customers?
5. Do you look for customer insights before making refinements or customization changes to existing
products, as Black & Decker did in creating its VersaPak line?
6. Do you get wisdom and insights from customers at each step of development? Do you have a
customer advisory board?
7. Do you partner with customers so that they allow your employees to visit their sites? If so, how many
of these relationships do you have?
8. Do you have space reserved in your plant for your best clients (or suppliers) to collaborate with you in
design, production, and other areas? (A mailbox slot or coffee mug doesn‟t count.)
9. How much do you share information with clients? Do you give them the right to attend design and
engineering meetings? Get input on upcoming advertising and sales campaigns?
10. How easy is it for clients to reach someone at your company with a proposed change or refinement?
How long does it take your company to respond? How many people get to see and discuss the
proposal?
69
70. Design for Innovation
How to Create the Future
3. Best-practice agenda for marketing and selling products and services:
Make sure you know all links in your value chain – all suppliers, distributors, advertisers, marketers,
salespeople, and customers. By its thorough understanding of its value chain, Lexus was able to
overcome potential distribution problems
Establish a competitive pricing strategy, as Southwest Airlines has done by looking outside its
industry (namely, to automobile rentals and other modes of transportation) to determine pricing
policies
Develop strong advertising strategies, seeking input from all levels of your company to develop an
appropriate image that can distinguish your company from others in the industry. As Nike has
proven, developing a good product is only half the battle. You also have to get the message to your
customers
Train your employees, especially those who will sell your products and services, to know everything
they need to know about the market, the item they are selling, and the customers to whom they are
selling. As Cutler-Hammer illustrates with its team-selling approach, this melding of individuals with
different talents and degrees of expertise makes good business sense
Develop an integrated system for processing orders tailored to customers‟ needs. Through its
ValueLink program, Allegiance Healthcare serves over 150 acute-care hospitals in the United States
with 98 percent fill-rate accuracy
Do business with the customers you choose and in the ways you choose – by surveys, interviews,
point-of-sale contacts, repair calls, and the like. As Peapod, Inc., and American Airlines have
demonstrated, it is possible to partner with customers, establishing key drivers of greater value and
lower prices
70
71. Design for Innovation
How to Create the Future
3. Top ten best-practice diagnostic questions for marketing and selling products
and services:
1. The foundation of a successful sales effort is knowledge of customer needs and an ability to
communicate how your products and services best fit those needs. What training systems does your
company use to educate your salespeople and service technicians on: (i) identifying customers‟ key
needs; and, (ii) differentiating your products and services from those of the competition?
2. How often do you retrain your employees in these and other areas? What tests do you give them?
3. When was the last time you critically evaluated your channels of distribution? Have you considered
emerging channels such as the Internet?
4. Do you monitor your price performance and that of your competitors? How do you determine what
customers are willing to pay?
5. Does your advertising strategy address current and developing trends in your market?
6. Have you studied non-customers and your lost customers to identify their needs? Have you
responded to them appropriately?
7. How do you go about building a positive image for your company and its products? How do you help
potential customers understand that they need your products and services
8. What degree of integration (such as EDI) do you have in place for processing orders?
9. What special offers or incentives do you offer selected segments of your customers?
10. Do you know what differentiates your products and services from your competitors‟ products and
services? How do you communicate those differences?
71
72. Design for Innovation
How to Create the Future
4. Best-practice agenda for involving customers in the delivery of products and
services:
Become the „supplier of choice‟ by using out-of-box thinking to generate customer delivery solutions
not bound by conventional wisdom, as New Pig Corporation, Norrell Corporation, and Holy Cross
Hospital have done
Customize delivery systems to fit the needs of core customers, in particular by creating channels of
communication and service offerings to meet their demands. Establish a program similar to the
CERRFS initiative undertaken by SARCOM
Identify customer delivery requirements through a complete understanding of the impact that
distribution has on a customer‟s business. As Granite Rock and Cemex show, often a best-practice
company builds extensive lines of communication within its own system before streamlining its
delivery services to customers
Develop distribution capability as exemplified by Campbell‟s, paying close attention to small details –
such as pallet size – that combine to solidify the customer-supplier relationship
72
73. Design for Innovation
How to Create the Future customers in the
4. Top ten best-practice diagnostic questions for involving
delivery of products and services:
1. How do you respond to customer delivery needs in emergency situations?
2. How do you identify the delivery service needs of individual customers? Do you use these needs as a
method of customer segmentation?
3. Do you have just-in-time supply and continuous replenishment services?
4. What steps have you taken to ensure reliability in your delivery process? How do you communicate
this process to your customers?
5. Do you have in-plant reps at customer sites? If so, what do you consider the biggest advantages of
these relationships?
6. What is your delivery channel strategy? Do you align your delivery strategies to service specific
customer needs?
7. Can you continuously track products from the production line to the customer‟s door?
8. Do you offer special delivery deals for large-scale purchases such as same-day shipping? Twenty-
four-hour delivery? Any other customization features in packaging and delivery?
9. How do you differentiate your delivery strategy from competitors‟ trying to become the supplier of
choice?
10. What methods of feedback (other than a payment) do you get from customers regarding delivery and
repair information? How do you elicit this input – via phone surveys, the Internet, or other means?
73
74. Design for Innovation
How to Create the Future
5. Best-practice agenda for providing customer service:
Establish primary „points of contact‟ between your employees and customers, instilling in customers
the feeling that their needs are being met personally and promptly. At the same time, information can
be used to alter company-wide business processes
Build cross-functional cooperation by training employees to understand and enhance the entire
customer experience, then holding them responsible for customer satisfaction. This training could
come via improving lines of communication between management and frontline employees – much as
Coldwell Banker Relocation Services does – or by instructing employees how to treat customers from
the first point of contact, such as Hyatt and Disney
Create a database to identify customer service failures and embrace their identification, recalling the
principle that drives customer satisfaction at IBM and FedEx: Your customers know best what they
don‟t like and what they can‟t understand
Raise customer expectations for products and services by giving them high-quality treatment each
step of the way. Whether it is greeting guests at the front door, as the Red jackets do at East
Jefferson General Hospital, or helping guests locate keys to their locked cars, as Disney World
attendants do, the best-practice company personalizes its customer service at every point of contact
Make sure each employee has at hand all information needed to process a customer‟s request
promptly and efficiently. Providing this information may require sophisticated databases such as
those used by Hyatt Hotels to identify specific guests‟ needs and FedEx has in place to help
customers track shipments. Or the organization may assemble data from customer surveys and
distribute it as needed to appropriate personnel, much as East Jefferson General Hospital has done
by collecting information from groups such as senior citizens to better prepare employees associated
with its Elder Advantage program
74
75. Design for Innovation
How to Create the Future
5. Top ten best-practice diagnostic questions for providing customer service:
1. What is your customer retention rate? Does it indicate any trends you can act upon?
2. What is the level of cross-functional communication between your company and its customers?
3. Do you train employees throughout the organization in various tasks so that any of them can handle
any problem that arises during the customer cycle?
4. What financial empowerment do you provide to your frontline employees to solve customer
problems? Do you give them additional authority to make decisions on the spot?
5. Do those frontline employees have access to executive groups such as IBM‟s customer action
councils where they can receive additional assistance and powers of authority?
6. Do you have in place a cross-functional database to track and analyze customer service highlights
and lowlights?
7. How do you explicitly gauge your customers‟ satisfaction? Do focus groups play a role?
8. Is any portion of your company‟s merit system based on customer service?
9. Do you have a client advisory board? How often does it meet? What does it accomplish?
10. Do you surprise your customers with great customer service as East Jefferson general Hospital does
with its red-jacketed representatives who accompany visitors to their destinations?
75
76. Design for Innovation
How to Create the Future
6. Best-practice agenda for managing customer information:
Design and build profiles using a common database to track customer information. As American
Express demonstrates, a complete and flexible database allows a company to capture significant
information about customers and merchants, thereby controlling this three-way relationship by virtue
of its involvement in each transaction
Collect observations about customer preferences from point-of-contact employees who serve as
„listening posts‟, as the Ritz-Carlton does
Communicate customer satisfaction throughout the company. By using the chain‟s extensive
database, each Ritz-Carlton hotel can combine its own employees‟ observations with those from
employees who encountered the same guests on visits to other Ritz-Carlton hotels. This process
helps the company prepare for guests‟ visits and secure long-term relationships
Establish service information by studying how customers use (or misuse) products and services.
Black & Decker discovered that it could actually instruct customers how best to use its VersaPak
product, thereby altering customers‟ perceptions and ensuring sales. Peapod, Inc., on the other hand,
finds that by understanding customers‟ buying patterns and preferences, it can capture present and
future sales
Gauge customer performance and satisfaction through both internal measures such as sales growth
and revenues, and external ones such as industry analyses and customer surveys. As the Orange
County Teachers FCU shows, it is possible to preserve customers‟ privacy while simultaneously
establishing acceptable levels of risk and tracking how the company ranks against its competitors in
terms of customer satisfaction
76
77. Design for Innovation
How to Create the Future
6. Top ten best-practice diagnostic questions for managing customer
information:
1. Do you know your customers‟ purchasing patterns s o well that you can pinpoint when they will likely
make their next purchase of one of your products? Are you holding your breath, or are you taking a
jar of Skippy off the shelf as Peapod is doing?
2. Do you study customer profiles to determine how much individuals are willing or likely to spend for
products or services?
3. Where will customers make their next purchase of one of your products? At a discount store, through
a catalog, over the Internet? Will you be there to make the sale wherever the order occurs?
4. Can you track customer preferences and how they change over time? If so, what do you do with this
information?
5. What means do you have for collecting, organizing, and sharing customer data with people
throughout your company? Why do you want to keep your people in the dark?
6. Are you constantly surprising and delighting customers with your products and services? How do
you know?
7. How do you build long-tern loyalty? (See „Building Customer Loyalty‟ below)
8. Does our organization have the capability for identifying customers to target with promotions specific
to their needs? Can you find fans of a particular merchant or product as adeptly as American
Express?
9. Can you deal with „ugly guests‟ as effectively as the Ritz-Carlton does?
10. Does your company try to educate customers in the proper use of products and services as Black &
Decker does, or do you pray they‟ll educate themselves?
77
78. Design for Innovation
Establish Current Position
• What is the current position of the business?
1. What does the business do & why?
2. How long has the business been operating?
3. What stage of growth is the business at?
4. What is the form of the business? (Limited Company etc.)
5. Is the current form of business appropriate for future operations?
6. What makes the business different?
7. What are the major accomplishments of the business?
8. What major setbacks have you met?
9. What are the major challenges facing the business in the future?
10.Who are your business partners or who do you have important
relationships with?
11.Are there well-defined business agreements & levels of service drawn
up with business partners?
12.Why is the business attractive to you & potential investors?
13.How stable is the business financial performance?
14.Does the business have a good reputation in its industry? 78
79. Design for Innovation
Establish Current Position
• FIVE STAGES OF GROWTH
1. EXISTENCE
2. SURVIVAL
3. SUCCESS
4. EXPANSION
5. MATURITY
79
81. Design for Innovation
Assess Business Environment
• What is happening in the business environment & what are the
implications for the business?
1. POLITICAL FACTORS: What is the Government doing? - still the
major influence in the economy, consider pending elections,
de-regulation, tax policy, & public confidence
2. ECONOMIC FACTORS: What is the economy doing? - Inflation,
leading indicators, interest rates, exchange rates, employment
levels etc.
3. ENVIRONMENTAL FACTORS: What is happening in the general
environment? - Controls on business activity, regulations,
availability of resources, climatic events
4. SOCIAL FACTORS: What are the factors affecting society? -
Population drift, immigration, wage rises, unemployment,
mortgage rates, racial & cultural issues
5. TECHNICAL FACTORS: What is happening in your particular
industry or sector? - New products & services, organizational
trends, market trends?
81
82. Design for Innovation
Assess Business Environment
• ENVIRONMENTAL FOCUS
– External Focus
• Identify the 7 most significant factors in the
business environment
– A. Impact on Business
– B. Action Required
– Internal Focus
• SWOT Analysis: List as many factors about
our organization that you can think of
82
85. Design for Innovation
Identify Critical Success Factors
• What does the business need to be good at to succeed?
1. Critical Success Factors (CSFs): List between 5-7 factors that are
essential to the future success of the business
2. How often are the CSFs reported on?
• Weekly?
• Monthly?
• Quarterly?
• Six Monthly?
• Annually?
3. Does the management information system provide the necessary
information to monitor CSF performance at the appropriate level of
detail?
• TYPES OF CRITICAL SUCCESS FACTORS
1. INDUSTRY FACTORS
2. BUSINESS CAPABILITY
3. FUNCTIONAL
4. ENVIRONMENT
85
86. Design for Innovation
Identify Critical Success Factors
• IDENTIFY CRITICAL SUCCESS FACTORS
– Identify 7 Critical Success Factors for your
business, how they impact, & how they should be
measured, examining:
A.Critical Success Factor
B.Impact on Business
C.How Measured
86
88. Design for Innovation
Outline Business Processes
• What activities need to occur to achieve the business objectives?
1. What are our major business processes? How many are there?
2. What are our Units of Competitive Advantage (UCA) - those things that
distinguish us from competitors & create an advantage in the market?
3. What is our Value-added Support Work (VA) that facilitates the
accomplishment of UCA work?
4. What is our Essential Support Work (ES) that does not directly create
an advantage of facilities that work, but which must be done if we are
to continue to operate?
5. What is our Non-essential Work (NE) - work that has lost its usefulness
but continues to be done because of tradition?
6. Which areas of our work could be regarded as industry best practice?
7. Which areas of our work could benefit from comparison & improvement
to meet industry best practice?
8. Is taking risks accepted & used as a learning experience?
9. Is creativity & innovation rewarded?
10.Are all key business processes well under control?
88
89. Design for Innovation
Outline Business Processes
• OUTLINE BUSINESS PROCESSES
1. INPUTS: Time & resources you require for yourself & others to
perform key activities
2. ACTIVITIES / PROCESSES: Tasks you perform to add value to inputs
you have received
3. OUTPUTS: Your work product or services that meet your customer's
requirements
• BUSINESS PROCESS
– Select one of your main business processes, then:
1. Start at the first step, & note (for each step) the activity that takes
place
2. Work through each step in the process until you reach the end
result
3. Categorize each activity I - IV ranging from:
(I) UCA - unit of competitive advantage
(II)VA - value-added support work
(III)ES - essential support work
(IV)NE - non-essential support work
4. Identify possible process improvements 89
92. Portfolio Analysis Matrix:
Non-existent Symbiotic
Mutual Value Mutual Value
Excellent
Business Maintain Grow
Quality
Poor
Business Adjust
Exit
Quality or Limit
92
93. Portfolio Analysis Matrix:
Non-existent Symbiotic
Mutual Value Mutual Value It is profitable,
growing, and
Worth doing for the
strategically well
money but contributes
matched, representing
little to long-term
a virtuous cycle of
strategic development
learning, growth, and
profitability
Excellent
Business Maintain Grow
Quality
Poor
Business Adjust
Exit
Quality or Limit
This type of client
These assignments are
relationship is
strategically well
unsupportable and
aligned, but they are
should be renegotiated
not profitable and may
or stopped as soon as
not be generating
legally and morally
additional work
possible 93
94. Design for Innovation
Identifying Opportunities
1. Unexpected Successes
2. Unexpected Failures
3. Unexpected External Events
4. Process Weaknesses
5. Industry / Market Structure Changes
6. High-Growth Areas
7. Converging Technologies
8. Demographic Changes
9. Perception Changes
10.New Knowledge 94
95. Unexpected Successes
1. What unexpected product success have you had recently?
2. In which geographic areas have you had unexpected success
recently?
3. In which market / industry segments have you experienced
unexpected success recently?
4. What customer segments have provided unexpected success
recently?
5. What unexpected successes have your suppliers had recently?
6. What unexpected successes have your competitors had
recently?
7. Which of your technologies has had unexpected success
recently?
8. What unexpected customer / user groups have bought from
you recently?
9. What unexpected sources have asked to sample, distribute, or
represent your product recently? 95
96. Unexpected Failures
1. What unexpected product failures have you had recently?
2. In which geographic areas have you had unexpected failures
recently?
3. In which market / industry segments have you experienced
unexpected failures recently?
4. What customer segments have provided unexpected failures
recently?
5. What unexpected failures have your suppliers had recently?
6. What unexpected failures have your competitors had recently?
7. Which of your technologies has had unexpected failures
recently?
8. Which customer / user groups have had unexpected failures
recently?
9. Which distributors, dealers, & / or agents have had unexpected
failures recently? 96
97. Design for Innovation
Unexpected External Events
1. What unexpected external events have
occurred recently?
2. What unexpected internal events have
occurred recently?
3. Have any expected external & internal
events combined in an unexpected way
recently?
97
98. Process Weaknesses
• Every process or system in existence has one of three things
wrong with it:
1.A bottleneck
2.A weak link
3.A missing link
• Checklist
1.What self-contained processes exist in the organization?
2.What process weaknesses exist in our customers' organization?
3.What weakness or "missing link" prevents better process
performance?
4.Why do some processes perform better at some times than at
others?
5.What bottlenecks do each of these processes have?
6.What process weaknesses among our competitors might we be
able to improve on? 98
99. Design for Innovation
Industry / Market Structure Change
1. What major structural changes are occurring among your
customers?
2. What major structural changes are occurring in your
geographic markets?
3. What major structural changes are occurring within your
market / industry structure or in the conduct of your business?
4. What major structural changes are occurring among your
competitors?
5. What major structural changes are happening in your
customers' businesses?
6. What major structural changes are occurring within your
regulatory environment?
7. What major structural changes are occurring in your supplier
relationships?
99
100. Design for Innovation
High-Growth Areas
1. What parts of the business are growing faster than
economic or population growth?
2. What other businesses are growing faster than
economic or population growth?
3. What potentially high-growth businesses related to
yours are dominated by only one or two companies?
4. What parts of your competitors' businesses are
growing faster than economic or population growth?
5. What parts of your customers' or suppliers' businesses
are growing faster than economic or population
growth? 100
101. Design for Innovation
Converging Technologies
1. What technologies in your business are
converging or merging?
2. Which of your technologies is now being
joined to outside technologies?
3. Which of your technologies can be more
effective if deliberately converged?
4. What would be the ideal convergence of
technologies in your business?
101
102. Demographic Changes
• 4 categories of demographic changes need to be monitored in a firm's end
customers:
1. Income
2. Age
3. Education
4. Mix
Checklist
1. How is the age distribution of your customers & users changing?
2. How will the educational level of your customers & users change in the
next few years?
3. How will the income distribution of your customers & users change in
the next few years?
4. How will the geographic distribution of your customers & users change
in the years ahead?
5. How might the buying habits of your customers & users change in the
years ahead?
6. What are the customer demographics that might change over the years
ahead?
7. How will the mix of your users & customers change in the next
few years? 102
103. Perception Changes
1. What changes are occurring in how your products &
services are perceived?
2. What changes are occurring in the values of your
customers?
3. What changes are occurring in the lifestyle, image, &
status of your customers?
4. How will changes in perception affect your customers &
suppliers?
5. For what new purposes have customers purchased your
products & services recently?
6. What intangible reasons are customers developing to
support your products & services?
7. What societal, peer, & normative pressures will affect your
products & services in the future?
103
104. Design for Innovation
New Knowledge
1. What new knowledge has recently
become known about your business?
2. What combinations of knowledge have
created new insights into your business?
3. What new sources of information about
your business have recently been tapped?
4. What new patents or discoveries have
been announced relating to your
business? 104
105. Design for Innovation
Determine Business Capability
• How is the business organized, who are the key people involved, &
is it capable of high performance?
• A. BUSINESS CAPABILITY
1. What is this business really good at?
2. What skills does this business currently have that are better than those
of competitors?
3. What capabilities are needed with this strategy?
4. Where do customers say we need to improve?
5. What is the gap between current capabilities & those capabilities
needed to give the company an advantage?
6. How easy is it to acquire or build the needed capabilities?
7. How much time & money will be needed to develop these skills?
8. What clients or contracts have been lost & to whom were they lost?
9. Where & how is the competition beating this company?
10.What programs does the company need or have in place that are
designed to improve capabilities?
105
106. Determine Business Capability
How is the business organized, who are the key people involved, & is
it capable of high performance?
B. BUSINESS STRUCTURE
1. What parts of the business are well aligned to delivered our business
strategy?
2. What current beliefs, policies, procedures, systems, or other elements are
not aligned to deliver our business strategy?
3. What business initiatives are going well?
4. What are the things that get in the way of the business achieving its
objectives?
5. What are the things in the business that are working well to support the
business strategy?
6. What does the business need to do better to execute the business
strategy effectively?
7. What gets in the way of people doing their work? Are there areas where
effort is wasted?
8. How do people spend their time?
9. Where should efforts be focused to ensure competitive advantage?
10. Where are the opportunity areas for improving efficiency & effectiveness?
106
107. Design for Innovation
Determine Business Capability
• Determine Business Capability
– Governance
– Structure
– Organization
– Management
– Capability
• Organization Capability
– Identify key individuals in our organization and for each specify:
1. Name 2. Area of responsibility
3. Length of service in industry (years) 4. Length of service in this office / area
5. Key strengths 6. Weaknesses
7. Key areas for specialization 8. Development actions required
9. Successor if person left
107
108. Strategic Alignment of Business
Priorities with Opportunities
2. What can we use?
(Relevant Context: Customer Needs)
1. Where are we going?
(External Perspective: Market Scenarios)
3. How do we use it?
(Formulate Strategy: Identify & Evaluate Opportunities) 108