Value Disciplines Framework
Value
disciplines should be defined and targeted, and
companies should strive to pro actively create a
strategic advantage. You can't be all things to all
people. Focus on these disciplines and Champions in one
of it.
Disruptive Innovation
Use
disruptive technology to start a new competition, change the playing
field and create entirely new paradigms.
Product Leadership
(first to market with leading-edge products)
Optimize
research and development to gain a performance advantage, gain a
first mover advantage and developed a strong product leadership in
the market segment.
Customer Intimacy (High
customer retention and loyalty)
Create a
differentiated customer experience to gain a customer loyalty
advantage
Provide superior value by tailoring
and shaping product and services to unique customer needs.
Value-added services, focused marketing, and responsive/flexible
processes.
Operational
Excellence (low cost of doing business)
Optimize production
(reliable quality product) and delivery systems to gain a cost
advantage.
Developed a
unique
operational excellence and product leadership advantage collaborate
with the well lubricated channel oriented machines fueled by sales
and marketing operations.
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Perfect competitive Market |
1. Costless Entry and Exit |
|
2. Undifferentiated
Products |
|
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3. Increasing marginal
costs of production.
|
|
Entry / Exit Barrier |
1.
Disruptive Innovation:
Use disruptive technology
to start a new competition and gain a
first
mover
advantage
etc:
Patent. |
|
|
2. Government Regulation |
|
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3. Location and
well-developed distribution channels
|
|
Differentiated Product. |
1.
Product Leadership
(first to market with
leading-edge products):
Optimize
research
and development to gain a
performance
advantage
and create Brand name. |
|
|
2.
Customer
Intimacy (High
customer retention and loyalty):
Create a differentiated
customer experience to gain a
customer
loyalty
advantage.
|
|
Cost Advantages |
1.
Operational Excellence
(low cost of doing
business):
Optimize
production (reliable
quality product) and
delivery systems to gain a cost advantage.
2. Scalable process:
Increase in production, marketing and
distribution result in less than proportional
increase in cost. |
Value Disciplines Framework