Contents

1 The Need for Reinventing Strategy . . . . . . . . . . . . . The Dangers of the Conventional Definition of Strategy – Strategy as Rivalry . . . . . . . . . . . . . . . . . . . . . . . Reject Commoditization – The Essence of Strategy Is to Achieve Customer Bonding . . . . . . . . . . . . . . . . . . Managing in the Large and in the Small – The Extended Enterprise and the Individualized Customer . . . . . . . . . . The Selection of a Strategy and the Identification of the Required Competencies – A Preview of the Delta Model . . . The Strategic Tasks of the Delta Model . . . . . . . . . . . . Task 1 Customer Segmentation and Customer Value Proposition (Chapter 3) . . . . . . . . . . . . . . . . . . . Task 2 The Existing and Desired Competencies of the Firm (Chapter 4) . . . . . . . . . . . . . . . . . . . . . . . . . . Task 3 The Mission of the Business (Chapter 5) . . . . . . Task 4 The Strategic Agenda (Chapter 6) . . . . . . . . . . Task 5 Monitoring the Strategy Execution (Chapter 7) . . . The Haxioms . . . . . . . . . . . . . . . . . . . . . . . . . . 2 The Delta Model: Creating New Sources of Growth and Profitability in a Networked Economy . . . . . . . . . . . . . . . . . . . . . . . . How to Achieve Customer Bonding: The Three Major Strategic Options in the Delta Model . . . . . . . . . . Best Product . . . . . . . . . . . . . . . . . . . . . . Strategic Positions of the Best Product Option . . . Total Customer Solution . . . . . . . . . . . . . . . . Redefining the Customer Experience . . . . . . . . System Lock-In . . . . . . . . . . . . . . . . . . . . . Three Ways to Get System Lock-In . . . . . . . . . The Various Dimensions of the Triangle: A Summary .

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Some Pitfalls from Conventional Customer Segmentation . The Mobile Phone Business – The Case of Telefónica Móviles de Colombia . . . . . Who Is the Most Attractive Customer? . . . . . . . . . . . . . . . . . . . . . . . .xvi Contents 3 Customer Segmentation and Customer Value Proposition: The First Critical Task of Strategy . . . . . . . . . . . . The Case of the Waste Management Company . . . . The Generic Dimensions of Segmentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Segmentation According to Alignment with the Distribution Channel The Case of Unilever Food Services . . . . . . . . . . . . . . . . . Reflection on the Segmentation Based on Customer Life Cycle . . 4 The Firm as a Bundle of Competencies: Understanding the Depth and the Breadth of Our Capabilities . . . . . . . . Reflections on Segmentation Based on Customer Attitudes . . . . . . . . . . Identifying the Bundle of Competencies in Practice . The Mobile Phone Business – The Case of Singapore Telecommunications (SingTel) . . . . . . . . . . . . . . . . . . . The Need for a Customer Database . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 33 34 34 35 35 35 38 39 39 42 44 44 47 49 49 51 53 53 58 60 60 62 64 65 67 70 70 73 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Segmentation According to Varying Buying Patterns . . . . . . . . . . . . . . The Case of Singapore Airlines . . . . . Reflections on Segmentation Based on Varying Buying Patterns . . . . . . . . The Case of Castrol . . . Investment Retail Company as a Bundle of Competencies Singapore Airlines as a Bundle of Competencies . . . . . . . . . . . . . . . . . . . . . . . 75 77 77 79 82 . . . . . . . . . . . . . . . . . . . . . . Reflections on Segmentation According to Alignment with Distribution Channel . . Reflections on Segmentation Based on Different Degrees of Value Added . . . . . . . . . . . The Case of the Investment Retail Company (IRC) . . . . . . . . . . . . . . . . . . . . . Segmentation According to Customer Life Cycle . . . . . . . . . . . . . . Segmentation According to Different Degrees of Value Added . Why Are Customers Different? . . . . . . . . . . . . . . . . . . . The Test of the Quality of the Customer Value Proposition . . . . . . . . . . . . . . . . . . . . . . . Corporate Banking – The Case of Bank of Tokyo-Mitsubishi . . . . The Steel Business – The Case of Termium . . . . . . . . . . . . . . . . . . . . . . . . . . . . Segmentation According to Attitudes and the Willingness to Do Business with Us . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Who Is the Customer? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Delta Model and Competitiveness: A New Approach to Competitor Analysis . . . . Notes . Behind the Customer Segmentation Process . .

. . . . . . . . . . . . . . Statement of Customer Scope . Statement of End-User Scope . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Notes . . . . . . Statement of Geographical Scope . . . . The Components of the Strategic Agenda . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Statement of Unique Competencies Scope . . . . . . . . . Using the Delta Model to Assess the Merits of Possible Mergers and Acquisitions – The Case of Cognos and IBM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Planning Horizon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Statement of Services Scope . . Statement of Products Scope and Services Scope . . . . . . . . . . . . . Organizational Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . Culture . . . . . . . Strategic Transformation: What Others Have Done . . . . . . . . . . . . . . Performance . . . . . . The Mission of the Business . . . . . . . . . . . . . . . . . . . . . . . Lessons from the Delta Model . . . . . . . . . . . . . . . . 5 The Mission of the Business: Capturing the Strategic Transformation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82 84 87 91 91 93 93 94 94 94 96 96 96 98 98 99 99 100 100 101 101 102 102 102 103 103 103 103 104 104 105 107 107 108 109 109 109 110 110 . . . . . . . . The Case of Singapore Airlines . . . . . . . . . . . . . . . . . . . . . . . Statement of Complementor Scope . . . . . Statement of Unique Competencies . . . . . . . . . . . . . . The Case of the Chemical Coatings Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mission Statement of the Chemical Coatings Company . . . . . . . . . . . . . . . . . . . . Statement of Complementor Scope . . . . . . . . . . . . . . . . . . . Notes . . . . . . . . . . . . . . . . . . Statement of Distributor Scope . . . . . . . . . . . . . . . . . . . . . . . Strategic Thrusts .Contents xvii Sony Video Conferencing: An Analysis of Its Competencies A Comparison of Polycom and Sony Video Conferencing: A Contrast of Competencies . . . . . . . . . . . . . Strategy Means Change . . . Statement of Product Scope . . . . . . . . . The Mission Statement . . . . . . . . . . . . . Statement of Customer Scope . . . . . . . . . . . . . . . . . . . . Business Processes . . . . . . . The Identification of the Strategic Thrusts . . . . . . . . . . . . The Description of the Changes in the Business Scope The Mission Statement . . . . . . . . . . . . . . . . . . . . . . . . Statement of Geographical Scope . . . . . . . . . . . . . . . . . . . . . . . . . . . The Mission Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 The Development of the Strategic Agenda: A Call to Action . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The Low-Cost Positioning . . . . . . . . . . . . . . . . . . . . . . . . Process. . . . . . . . . . . . . . . . . . . . . . Notes . . . . The Mission of DMK . . . . . . . . . . . . . . . . . . 8 Putting It All Together: How to Integrate the Critical Tasks of Strategy – An Illustration . . . . . . . . . . . . . . . Customer Integration . . . . . . . Redefining the Customer Experience . Strategic Challenges and Opportunities . The Total Customer Solutions Strategy . The Intelligent Budget and the Balanced Scorecards . . . . . . . . . . 111 114 116 117 118 118 121 121 125 126 128 129 130 133 135 141 143 144 144 153 155 156 157 158 160 165 167 167 167 168 168 169 171 171 174 174 175 177 . . . . . . . . . . . . . . . . . . . . . Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The Delta Model and the Adaptive Process . . . . . Strategy at the Center of the Balanced Scorecard . The Delta Model and the Balanced Scorecard . . . . . . The Strategic Agenda . . . . . . .xviii Contents The Strategic Agenda as the Integrator of Strategy. . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Managing Small. . . . The Case of DMK International . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The Importance of SMEs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The Differentiation Strategy . . . . . . . . . The Challenges from the Existing and Desired Bundle of Competencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .and Medium-Sized Enterprises (SMEs) – Lessons from the Delta Model . . . . The Balanced Scorecard . . . . . . . . . . . . . . . . . . Restricted Access . . . . . . . . . The Case of Singapore Airlines . . . . The System Lock-In Strategy . . . . . . . . . . . . . Challenges from Changes in the Mission of DMK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Test for the Quality of the Strategic Agenda . . Horizontal Breadth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The Intelligent Budget – A Requirement for Proper Strategic Execution . . . . . . . . . . Customer Segmentation and Customer Value Proposition of DMK . . . . . . . Structure. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Monitoring the Strategy Execution . . . . . The Challenges of Managing SMEs . . . The Adaptive Processes and Aggregate Metrics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Conclusion . . . . . . . . . . The Balanced Scorecard of the Chemical Coatings Company Value Creation by Each Strategic Option: Empirical Evidence . . . . The Firm as a Bundle of Competencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Performance – The Case of Chemical Coatings Company Identifying the Priorities of the Strategic Thrusts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The Best Product Strategy . . . . . . . . . . . . . . .

. . . . . Attraction and Development of the Customer . . . the Resource-Based View of the Firm. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sustainability . . . . . . . . . . . . . . . . . . . . . . . . . . System Lock-In Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . Notes . . . . . . . . . . . . . . . . . . EDB’s Existing and Desired Competencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The Resource-Based View of the Firm . . . . . . .Contents xix Dominant Exchange . . . . . . . . Reflecting on the Strategic Challenges of the Not-for-Profit Organization . . . . . . . . . . . . . Appropriability . . . . . . . . . . . . . . . . . . . . . . . . . . . . Proprietary Standard . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The Total Customer Solutions Strategy . . . . . . . . . . . . . . . . . . . . . . . . 11 A Comparison Among the Three Strategic Frameworks: Porter. . . . . . . . . Knowledge Transfer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 The Challenges of Managing Not-for-Profit Organizations . . . . . . . . . . . . . . . . 178 179 179 183 183 184 186 186 187 187 188 188 189 189 190 191 191 192 193 195 196 198 200 201 203 203 204 205 207 208 212 215 216 217 217 217 218 218 218 . . . . . . . . . . . . . . . Which are the Competencies? . . . . . . . . . . . . . Core Competencies and the Resource-Based View of the Firm . . . . . . . . . . . . . . . Who Is the Customer? . . . The Resource-Based View of the Firm’s Winning Formula . . . . . . . . . . . . . . . . . . . and the Delta Model Porter’s Competitive Positioning Framework . . . . . . . . . . . . . . . . . . EDB’s Strategic Agenda . . . . . . . Total Breadth of the Offering . Porter’s Winning Formula . . . . . . . . . . . . . . . . . . . . . . . . . . . . Opportunism and Timing . . . Best Product Strategy . . . . . . . . . . Unique Competencies . . . . . Intellectual Value . . . . . . . . . . . . . Monitoring the Strategy Execution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Administrative Efficiency . . . The Case of Singapore Economic Development Board – An Application of the Delta Model to a Not-for-Profit Organization Customer Segmentation . . . . . Low Cost or Differentiation – Michael Porter’s Only Two Strategic Options . . . . . . . . . . . . . . . . . . . . . . . . . . . System Support . . EDB’s Mission . . . . Conclusion . The EDB Culture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Channels of Delivery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The Unconventional Dynamics of Evolution of the Not-for-Profit Organizations . . . . . . . . . . . . . . . . . . . . . . . . . . . . Final Comments . . . . . . . . . . . . . . . . . . . . . Differentiation . . . . . . . . . . . . . . . . .

. . . Notes . . . .xx Contents A Practical Framework of the Application of the Resource-Based View of the Firm . . . . . . . . . . . . . . . . . . . . . . . . . . . . Reinterpreting Porter’s Five-Forces Model Through the Delta Model: Thinking Out of the Box . . . . Some Caveats to the Resource-Based View of the Firm . . . . . . . . . . . . . . . . . . . . . . Index . . . . . . . . . . . . . . . and the Delta Model Frameworks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Your Competitors Are Not the Relevant Benchmarks . . . . . . . 219 219 220 222 223 224 224 224 225 225 226 227 229 About the Author . . . . . . . . . . . . . . . . . . . . . Generate Barriers Around Your Customers . . . . the Resource-Based View of the Firm. . . . . Search for the 10X Force . . . Comparisons Among Porter. . . . . . . Add a New Player. . . . . . . . . . . . . . . . . . . Develop and Nurture the Intrated Value Chain . . the Complementors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Fragmented Industries Offer Big Opportunities . . . . . . . . . . . . . . . . .

http://www.springer.com/978-1-4419-1479-8 .