Achieving Sustained Growth in Revenue and Profits.

• Look for blockbuster ideas and quantum leaps in value creation. Make your competition irrelevant through value creation. Ambition to dominate the market share by offering a tremendous leap in value
• Monitor your competition but do not use them as benchmarks
• Create a position for your products such that customer seeks them out even if you are not marketing to them
• Do not focus on just competing, instead distinguish the factors that deliver superior value from all the factors the industry competes on
• Build the powerful commonalities in the features the customers value
• Don’t view your business opportunities through the lens of your existing assets and competencies. Instead look from a fresh view of starting anew. Assess business opportunities without being biased or constrained by where they are at a given moment. This provides insight into where value for buyers reside – and how it is changing – and act on that insight
• Don’t compete in the established boundaries defined by the products and services – instead cross those boundaries – think in terms of total solutions, overcome the chief compromises the industry forces customers to make. constantly ask where your products or services fit in the total chain of buyer’s needs. Seek out to solve buyer’s major problems across the entire chain – even if it takes you into a new business

Creating Your Value Creation Strategy

Identify and articulate the company’s prevailing strategic logic, challenge it. Must stop and think about the industry’s assumptions, the company’s strategic focus, and the approaches – to customers, assets and capabilities, and product/service offerings – that are taken as given.

1. Use the following 4W framework to create your value creation strategy:
   • Which of the factors that your industry takes for granted should be eliminated?
     Assess if you current product offerings are providing any value to your customers.
   • Which factors should be reduced well below the industry standard?
     Assess if you are over designed or engineered your products to match or beat the competition.
   • Which factors should be raised well above the industry standards?
     Identify and eliminate the compromises in product/service offerings.
   • Which factors should e created that the industry has new offered?
     Break out of the industry’s established boundaries to discover entirely new sources of value for consumers/buyers

 

• Value innovation is the simultaneous pursuit of radically superior value for buyers – and lower  costs for companies
• Revenues, profitability, market share, and customer satisfaction are all measures of a company’s current position
• Perseverance to explore the compromises their industries were forcing customers to endure
• Acting on the insight that breaking those compromises would release enormous trapped value – enough to stimulate major sales and profit growth

Rules for Adjacency Moves

1. never put your core business at risk
2. make an adjacency move only if you expect to  be among the top three players in the new space
3. pursue one opportunity at a time
4. Build your repeatable formula based on insights about customer behavior. Use insights about customer behavior and purchasing decisions to identify potential adjacency moves
5. Grow share of wallet – sell related products to customers whose behavior you know intimately.
6. Mirror customer adjacencies – track customer expansion plans and future needs