Delivering the promise Master Class 2 UCC, 13 th April 2015

Master class objectives Objectives 1.Reaffirm what you’re good at and better at that than anyone else in your market space. 2.Ensure that your strengths are clearly communicated in your value proposition and suitably reflected in your vision. Key questions  What are your business competencies?  Are you expressing these to your customers via the value proposition and is this reflected in your vision?  Can you deliver on your promise to the market?

The strategic assets hierarchy – the building blocks of a business model

The VRIO – PROFIT Summary ResourceV aluable R are I nimitable O rganized PhysicalYesSometimesNot usuallySometimes ReputationalYes OrganizationalYes FinancialYesSometimesUsuallySometimes IntellectualYes UsuallySometimes TechnologicalYesSometimes

Meeting the VRIO - PROFIT criteria  Oxford University – historical buildings and location (physical), age, graduates, societal impact (reputation), culture/student experience, tutor system (organizational), world class faculty and student body (intellectual)  Apple - design/userability (intellectual), customer responsiveness and Jon Ives (organizational) and brand (reputation)  BMW – engineering/performance (technological) and brand (reputation)  Marks and Spencer customer service (organizational) and trying to establish a CC in environmentalism/sustainable business (reputation)  McKinsey - method and training (intellectual), alumni network (organisational) and brand (reputation) * All the above can therefore be classified as core competencies.

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Projects and Programs Business Model Value Proposition Vision Strategic Leadership Strategic Enactment Strategic Alignment Strategic Definition Strategic Thinking © Finkelstein, Harvey, Lawton, 2007 Strategic alignment and the business model

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CostInnovationReliabilityRelationshipsChannelsBrand VISION FOR THE FUTURE The six pillars of a business model Impact on the market

Alignment of business model and value proposition 1. Premium 2. Premium/ Competitive 3. Competitive 4. Competitive/ Leader 5. Leader 1. Original 2. Original/ Customized 3. Customized 4. Customized/ Basic 5. Basic 1. Excellent 2. Excellent/ Average 3. Average 4. Average/ Acceptable 5. Acceptable 1. Comprehensive 2. Comprehensive/ Standard 3. Standard 4. Standard/ Minimal 5. Minimal 1. Restricted 2. Restricted/ Selective 3. Selective 4. Selective/ Universal 5. Universal 1. Prestigious 2. Prestigious/ Respected 3. Respected 4. Respected/ Functional 5. Functional PRICEFEATURESQUALITYSUPPORTAVAILABILITYREPUTATION VISION FOR THE FUTURE CostInnovation ReliabilityRelationshipsChannels Brand Business Model Value Proposition Aligning your business model and value proposition Core competencies

Group work

Identifying your organizational assets Necessary ResourcesOrganizational Capabilities Threshold CompetenciesCore Competencies Resources Competencies Same as competitors or easy to imitate Better than competitors and difficult to imitate Source: Johnson, Scholes, Whittington, 2008, Exploring Corporate Strategy, FT Prentice Hall, London.

Leveraging up your VP/BM to improve your competitive position Value PropositionBusiness Model ElementMovementElementSuggested Business Actions PriceCost FeaturesInnovation QualityReliability SupportRelationships AvailabilityChannels ReputationBrand

Plenary discussion

Projects and Programs Business Model Value Proposition Vision Strategic Leadership Strategic Enactment Strategic Alignment Strategic Definition Strategic Thinking Complexity Context Culture Routes to breakout Balance people and process Efficient, effective, extendable Compelling and customer-centric C lear and consistent International strategy and the challenge of the 4 C’s to your business model Cost

Relationships Reliability InnovationBrandChannels A balanced approach to delivering breakout (Tactics)

Projects and Programs Business Model Value Proposition Vision Strategic Leadership Strategic Enactment Strategic Alignment Strategic Definition Strategic Thinking (Tactics)

Never stop investing in the strategy star Breakout Leadership Clarify and communicate the vision Deliver a compelling value proposition Innovate and improveDeliver through tactics Build a consistent business model

Make your strategy bullet-proof!