1. Business Strategy Framework

2. Creating, Capturing, and Delivering Value
Duncan Simester, PhD – NTU Chair in Management Science, M.I.T. Sloan School of Management - Management Science Best Paper in Information Systems, Winner, 2013

3. What is Business Strategy (v. Tactics)?

4. Business Strategy Stop executing … start thinking!
Duncan Simester
If I had only an hour to save the world, I’d spend 55 minutes framing the problem, and 5 minutes finding solutions.
Attributed to Albert Einstein
Strategy
Tactics
Which “markets” should we continue to serve?
Features & Pricing
Which “markets” should we enter?
Product development, advertisement, communications, marketing, distribution …
Which “markets” should we exit?
Go-to-Market

5. Core Strategic Framework Components
Creating Value
Capturing Value
Delivering Value

6. Each box of the chart represents a separate “market”
More Definitions
- CRDA
Channel/Value Chain – everything, including partnerships, necessary to bring a solution to market
Market – customer segments with different needs and interests
- TNL
- CRISC
- WSIPC
- Skyward
Consumer Segments
Value Chain Levels
Each box of the chart represents a separate “market”

7. Capital Region ESD 113 Market Identification
Value Chain Levels
Consumer Segments
Teachers
Principals
Pupil Nutrition
Human Resources
Business Managers
CRDA
TnL
CRISC
WSIPC
Skyward

8. Market Attractiveness
Attractive Features
Unattractive Features
Contributes to accomplishment
of ESD Mission & Goals
Contributes to “mission drift”?
Long-term
Short-term
Managed risk
Unknown/unmanaged risk
It is in the intersections between attractive and unattractive that significant insights are found.

9. Capital Region ESD Market Attractiveness Criteria
Attractive Features
Unattractive Features

10. Creating, Capturing, & Delivering Value
Only two ways to create value:
Save Money
Improve End-User Experience
How many customers?
How many consumers?
How much can you save each customer?
How much do they value the improvement(s)?
Will the savings be recognized?
Will the improvement(s) be recognized?

11. Creating, Capturing, & Delivering Value How to compete in the market
“Market Power”
Sustainable competitive advantage
What are our “strategic resources”?
Ownership/control
Differentiation
Sustainability
Satisfy customers

12. Creating, Capturing, & Delivering Value
Who gets to extract value from the value chain? ?
Partners must collaborate to create value, but also negotiate to clarify who extracts value, how much they extract, and when.
Who “owns” the customer?
Will they go looking for our solution?
Will they still buy our solution if we have to change a key supplier? ? ? ? ?