IBUS 718:

Consulting & Organizational Development

in the Multinational Corporation
Lesson 4: Deriving Insights from Organization Analysis
Business Model Canvas Evolves
Source: Wikipedia
Leveraging Opportunity Depends on
Penetration
• This is the key to investment ROI

• Good resources on this subject

• Geoffrey A. Moore (The Chasm Group)
• Crossing the Chasm

• Inside the Tornado

• Clayton Christensen
• The Innovator’s Dilemma
Market Growth & Adoption Takes Time

Early Market Chasm Bowling Alley Tornado Main Street

• Old for Enthusiasts
• Enthusiasts • “Passe” for • Pragmatist dept. or • Pragmatist • Dept. managers
Target
• Visionary executives Visionaries BU manager or commodity • Lead end-users
Customer
in large organizations • Incomplete solution executive managers • Purchasing agents
for Pragmatists.
• Strategic competitive
Buying • Keep up with • Don’t fall too far
advantage • Fix broken business
Motivation/ competitors behind competition
Value
• Breakthrough None process
• Deploy everywhere • Increase productivity
technology or • Ease the pain quickly
Proposition now! • Better experience
offering
• Repeatable whole • Mass customized
Product • Custom project • Create whole • Mass market
product for specific whole product
Emphasis around core offering product standard product
market segment • Extensions
 Main Street
The Tornado
The Bowling Alley
The Early Market

Niche expansion
Grow profitable
Mass market growth revenue from
Niche penetration Grow horizontally installed base à
First customers new niches and
Dominate first niche into new channels,
Close deals ! then go after platforms, and mass
adjacent niches geographies customization
Bowling Alley Model
Seg 3 Seg 2 Seg 1
App 1 App 2 App 3

Seg 2 Seg 1
App 1 App 2
Whole Product Word-of-Mouth
Leverage: Seg 1 Leverage:
• Same application App 1 • Same segment
• New segments • New applications

Leverage is the key!

 • We will win the business because we solve a big pain by providing
Interposers robust mechanical performance at small dimensions.
• This pain is very strong today in board-to-board attach, especially
TAM >$250M
in the ATE & ADC markets (& the segmented test market)
• The pain is getting worse in the computing markets

Test
Interposer
(P2B)

ADC ATE Computing

Interposer SMT LGA
(B2B) B2B socket Slower
Faster
penetration
penetration
(tactical) ATE Computing (strategic)
Interposer SMT
(B2B) B2B Word-of-Mouth
Whole Product
Leverage:
Leverage:
Computing • Same segment
• Same application
Interposer • New applications
• New segments
(P2B)
 • We will win the business because we solve a big pain by providing
robust, solder free attach at a lower profile than any other solution.
Camera Attach
• This pain is very strong today in cell phones only
Mobile TAM >$140M
• Camera module is an entrée into solving interconnect problems in
mobile applications
• We will win the follow-on business for
FFC & embedded flex because we
provide robust, mechanical performance
? ? Mobile
at small dimensions and at a lower profile
Embedded FFC Embedded than any other solution.
contacts flex
• This pain is most strong in cell phones

Digital
Mobile
cameras
Slower Camera FFC Faster penetration
penetration Mod. Sub.
(strategic à “own the phone”)
Whole Product Mobile Word-of-Mouth
Leverage: Camera Leverage:
Mod. Sub. • Same segment
• Same application
• New segments • New applications
Neoconix Product Options
Neoconix Financial Metrics
SAM
Revenue Per Design Win
Margin
Value Proposition
 A: Provides modest enhancements

Pain/Gain Analysis. B: Adds substantial new value

C: Gives dramatic productivity gains

D: Changes the competitive field

A B C D

The
4 Major reengineering, new systems

Dead 3 Broad changes to existing systems

Zone
2 Local changes to existing systems
Pain

1 Integrates with existing systems

Gain
Positioning Statement
Customer
For decision-making managers in the target
segment Problem
Who have the following broken business process
Our product is a new product/service Solution

That provides key problem solved.

Differentiation
Unlike competitors,
We have the whole product solution to help you
solve your problem.
Value Proposition
Pain/Gain Analysis
A: Provides modest enhancements
B: Adds substantial new value
C: Gives dramatic productivity gains
D: Changes the competitive field

4: Major reengineering, new systems

3: Broad changes to existing systems
2: Local changes to existing systems
1: Integrates with existing systems
P2B Interposer Pain/Gain
P2B Interposer Positioning Statement
Positioning Statement

For computing and other electronic system designers,

Who have problems with true electrical compliance and reliability at

tight pitch processor/package attach,

Our product is an LGA connector,

That provides good working range and reliability at tight pitch,

Unlike stamped spring, polymer, or dense metal-based LGA

connectors.

We have the whole product solution to help you solve your problem.
Revenue Per Design Win
Camera Module Substrate Pain / Gain
Camera Module Substrate Positioning
Statement
Positioning Statement

For camera module manufacturers and mobile product designers,

Who want to reduce the profile and cost of the cell phone,

Our product is a camera module substrate with embedded contacts,

That provides low profile, low cost, reliable interconnection,

Unlike any camera module sockets.

We have the whole product solution to help you solve your problem.
FFC Connectors Pain / Gain

Next generation:
Current drop-in is low Similar footprint,
pain, low gain. Difficult better force
for Neoconix to break uniformity
into entrenched space.
Pain/Gain Analysis
A: Provides modest enhancements
B: Adds substantial new value
C: Gives dramatic productivity gains
D: Changes the competitive field

4: Major reengineering, new systems

3: Broad changes to existing systems
2: Local changes to existing systems
1: Integrates with existing systems
Opportunity Mapping
• Assess Market Segments, Applications, Customers, etc.

Key Criteria Seg 1 Seg 2 Seg 2

Description etc…
(5=agree to 1=disagree) App 1 App 1 App 2
Visionary or pragmatist manager. Well funded
Accessible, well-funded target customer
organizations suffering competitive pressure.
Strategic competitive advantage or broken mission-
Compelling reason to buy
critical process causing dire consequences.
Core product + complementary products & services
Feasible whole project/product
deliverable within 60 days.
No other projects or in-house systems, workarounds,
No entrenched competition
point solutions, other whole-product vendors.
Another custom project or whole-product leverage
Good follow-on segment potential
or word-of-mouth leverage.

Total score Highest number is most compelling

Customer / Market Segment - Opportunity
Mapping
 Discuss Walmart’s Globalization
Walmart Analysis Strategy
• Where did the retailer struggle?
• Where did it do well?
Individual Assignment
• Can location characteristics explain
~1,000 word written report the differences in Walmart
performance?
(plus charts & graphs)
• Are there general insights that can be
Feb. 2, 2023 derived?
Summary of this Lesson
In this lesson:
• You exercised the business model canvas and value proposition
canvas and explored how these can evolve over time and can
inform strategic decisions for the multinational corporation.
• You also analyzed various patterns in the business model canvas
as a tool to explore business model innovation.
• You started to work on an analysis of Walmart as the first step of
your main individual project for the course.