Kesting Ventures® Corp. 1 KVC Knowledge Planning Market Value System Modules and Programs

Kesting Ventures® Corp. 2 KVC Mission n Our mission is to provide clients with tools that increase the long term effectiveness and productivity of R&D, sales, marketing, manufacturing, business and commercial development professionals. n Each program is conducted by an experienced executive, who trains assigned managers while completing an important project.

Kesting Ventures® Corp. 3 Technology n Most companies have unique technology and know-how. n Technology and know-how are tools to produce properties. n The MV System points out, n the markets in which a company can expect to secure a sustainable advantage, n how a company can use its technology and know-how to build a significant business.

Kesting Ventures® Corp. 4 Knowledge Planning Tools n The Market Value System n Experiential Modeling n Mathematical Knowledge Blocks n Rank Order Equation n Managerial Accounting

Kesting Ventures® Corp. 5 KVC’s Knowledge System Knowledge Blocks Strategic Plan Launch Business Blueprints Operations Market

Kesting Ventures® Corp. 6 Data, Discourse, Documentation DOCUMENT Background Research and Identification of the Problem to Be Solved. DISCOURSE Teams Use Experiential Modeling DATA INPUT Structured Problem Solving Sessions DOCUMENT Data, Session Minutes, and Analysis DATA Analysis Correlate Views with DATA

Kesting Ventures® Corp. 7 Micro/Macro Visioning

Kesting Ventures® Corp. 8 The Market Value System n Knowledge blocks linked together to explain the functional and economic value contributed by all players in a market value chain. n Modules include: n review of background material, n comprehensive glossaries and other briefing documents, n templates, n training, n 2-day experiential modeling session, n a written report, and n computer disks.

Kesting Ventures® Corp. 9 The Theory of The Market Value System All ‘buy’ decisions are based on a combination of: INFLUENCEECONOMICSPERFORMANCE

Kesting Ventures® Corp. 10 The Market Value System Components PERFORMANCE The functional attributes of the customer’s product. Glossaries and Templates are required.

Kesting Ventures® Corp. 11 TechnoMarket Performance (TMP) Value Profile Red bars connote the property level in 1997 Green bars show that the market will require >20% more properties by the year 2000.

Copyright  Kesting Ventures  Corp. THE PUZZLE Conceptual slide showing how all properties must be linked together to reveal gaps

Kesting Ventures® Corp. 13 The Market Value System Components ECONOMICS A ratio based on cost of customers’ product divided by customer’s overall objectives. Required for economic value pricing.

Kesting Ventures® Corp. 14 Economics Ratio versus Time

Kesting Ventures® Corp. 15 The Market Value System Components INFLUENCE All other factors (motivational, external and market change forces, specifications, alliances and end-product goals.)

Kesting Ventures® Corp. 16 How are Market Value Components determined? n KVC designs the structure of each component n KVC writes briefing documents concerning internal and external information n The components of the MV Equation are based on expert team judgment of factors throughout the entire market chain n The market value equation correlates with market share and profitability

Kesting Ventures® Corp. 17 The Market Value System tells you: n How each player in the market value chain makes buy decisions n The contribution of each player in the market value chain to TMP and Economic Value n Where the opportunities are for innovation within strategic markets n Which product improvements the market will value... and to what degree n How to ensure that your profitability at least equals your contribution to market value

Kesting Ventures® Corp. 18 What are Knowledge Blocks? n Knowledge blocks are multi-page spreadsheets which correlate value judgments about the properties of product (or service), economic value and influence with market share, pricing and other market and financial parameters. n Knowledge blocks contain supporting evidence, glossaries and use instructions.

Kesting Ventures® Corp. 19 Information is not Knowledge l Knowledge Blocks n belong to people, n are clearly written, n are required to prove a concept, n have at least 70% probability of truth, n are based on valid experiences, n fit market observations, and n are accepted as true by a group.

Kesting Ventures® Corp. 20 Who creates the Knowledge Blocks? n A team of 8-12 of your most experienced management, marketing, sales and R&D people and/or an external panel n The team is led by a KVC Market Value Group Program Director n In addition, KVC will use external expert teams as needed to supplement or validate your judgments

Kesting Ventures® Corp. 21 How does the team create the Knowledge Blocks? n A knowledge block begins with an audit of all information, external literature, and competitive intelligence n The audit is conducted from the prospective of your customers, not from your position as a supplier n From the audit, KVC writes comprehensive glossaries and designs experiential modeling templates...

Kesting Ventures® Corp. 22 How does the team create Knowledge Blocks? (Cont'd) n The team contributes its experience and judgment on the properties of product (or service), economic value and influence n KVC processes the team’s input into finished, cumulative spreadsheets, representing the company’s best and most comprehensive knowledge of the market value system for the new business n You are now ready to prepare the Business Blueprint

Kesting Ventures® Corp. 23 The Business Blueprint n...includes all knowledge required to prove the success of a business. n...identifies customers who will place a continuing high value on the business’ products and/or services. n...explains the business’ sustainable advantage. n...points out tactical gaps and how to fill them. n...spells out required resources. n...describes expected financial results.

Kesting Ventures® Corp. 24 Deliverables n Strategy Meeting n TMP Values n Economic Ratios n Influence n MVS n ISUM Financial Models n Market Definition n Business Blueprint Draft

Kesting Ventures® Corp. 25 Deliverables (Continued) n Technology Assessment n Competitive Cost Assessment n External Expert Panel n Target Account n Organizational Structure n Product Development Review n Field Training

Kesting Ventures® Corp. 26 The Market Value System n Knowledge blocks linked together to explain the functional and economic value contributed by all players in a market value chain. n Modules include: n review of background material, n comprehensive glossaries and other briefing documents, n templates, n training, n 2-day experiential modeling session, n a written report, and n computer disks.

Kesting Ventures® Corp. 27 Iterative Mechanism Connects With the Market n The objective is to see the market so clearly that you become the market.

Kesting Ventures® Corp. 28 Integral Components n The parts are integral to the whole. n The whole gives meaning to the parts.

Kesting Ventures® Corp. 29 Strategy Meeting Module n Comprehensive Review of Business n Custom Agenda n Mission Statement n New Product Plans n Market Opportunities n Technology Position n Marketing Position n Organizational Structure n Briefing Documents n 2-Day Strategy Meeting n Report

Kesting Ventures® Corp. 30 TMP Value Module n Comprehensive Review of Product Technology and Marketing Communication n TMP Value Glossary n Template Design n TMP Value Training n 2-Day TMP Value Session n Written Report n Computer disks

Kesting Ventures® Corp. 31 Economic Value Module n Comprehensive Review of Market Value Chain n Economic Value Glossary n Template Design n Economic Value Training n 2-Day Economic Value Session n Written Report n Computer disks

Kesting Ventures® Corp. 32 Influence Module n Comprehensive Review of Market Value Chain n Influence Glossary n Template Design n Influence Program Training n 2-Day Influence Session n Competitive Influence Assessment n Written Report n Computer disks

Kesting Ventures® Corp. 33 MVS Module n Market Value Equations n Competitive Market Value Assessment n 2-Day Strategy Development n Target Account Program n Strategy Sheets n Written Report n Computer disks

Kesting Ventures® Corp. 34 ISUM Financial Model Module n Comprehensive Review of Manufacturing Operations and Product Costs. n Managerial Accounting System Template Design n Trial Cash Flow Forecast n ISUM Training n Written Report n Computer disks

Kesting Ventures® Corp. 35 Market Definition Module n Comprehensive Review of Market Data n Rank Order Equation n Market Segmentation n Competitive Assessment n History and Forecast n 2-Day Market Definition Session n Written Report n Computer disks

Kesting Ventures® Corp. 36 Business Blueprint Draft Module n Requires n Strategy Meeting n TMP Values n Economic Ratios n Influence Assessment n ISUM Financial Model n Worldwide Market Definition n 2-Day Meeting to Review Blueprint n Blueprint Manual n Slides

Kesting Ventures® Corp. 37 Technology Assessment Module n Comprehensive Review of Alternate Technologies n Expanded TMP Value Template n Briefing Documents n 2-Day Technology Assessment Session n Written Report n Computer disks

Kesting Ventures® Corp. 38 Competitive Cost Assessment Module n Comprehensive Review of Competitors’ Processes n Requires ISUM Models n Briefing Documents n 2-Day Competitive Cost Assessment n Written Report n Computer disks

Kesting Ventures® Corp. 39 External Experienced Panel Module n Requires Background Sessions n $500 Honorariums n Briefing Documents n Templates n 1-Day External Panel Session n Written Report n Computer disks

Kesting Ventures® Corp. 40 Target Account Module n Requires Background Sessions n Prearranged Appointments n Briefing Documents n Templates n MVS Strategy Session n 2-Day Target Account Schedule n Written Report n Computer disks

Kesting Ventures® Corp. 41 Organizational Structure Module n Requires Business Blueprint n Comprehensive Organization Review n Position Descriptions n Knowledge Based Planning n 2-Day Organization Meeting n Written Report n Computer disks

Kesting Ventures® Corp. 42 Product Development Review Module n Requires TMP Values n Comprehensive Technical Review n Briefing Documents n Template Design n 2-Day Product Development Session n Written Report n Computer disks

Kesting Ventures® Corp. 43 Field Training Module n Requires Business Blueprint n Commitment n Prearranged Schedule n Briefing Documents n Templates n 2-Day Field Training Session n Follow-up Action Steps n Written Report n Computer disks