1. What is Problem? 2. What is problem solving?

3. Steps to Problem Solving 4. Techniques of Problem Solving
5. Case Study on USP Tool.
• Introduction to Case.
• Introduction to USP Tool.
• implementation of Tool.
• Conclusion.
6. Case Study on Value Chain Tool.
• Introduction to Case.
• Introduction to value Chain Tool.
• Implementation of Tool.
• Conclusion.
7. Case Study on Appreciation

“Most people rush to find
solution before knowing the
real problem.”

 Problem is a chance for you to do your

 A problem is the difference between the
actual state and desired state.

 A problem is an opportunity for

“Most people spend more time and
energy going around problems
than in trying to solve them.”

Henry Ford

Problem solving is a tool, a skill and a

 It is a tool because it can help you to solve
an immediate problem or to achieve a

 It is a skill because once you have learnt
it you can use it repeatedly, like the
ability to ride a bicycle, add numbers or
speak a language.

 It is also a process because it involves a
number of steps.


1.Identify the problem
 Involves identifying the problem in order
to find an appropriate solution.

2.Explore the problem
 Looking at the problem from different
angles. Such as:
 ‘How is this problem affecting ?’

3.Set goals
 After having thought about the problem
from different angles one can identify
their goals.

4.Look at Alternatives
 Involves brain-storming for ideas to
collect a list of possibilities.

5.Select a possible solution
 Choosing the most relevant and
manageable alternative.

6.Implement a possible solution
 Putting the chosen solution in action.

 Examining the possible solution for it’s
effectiveness. For e.g.:
 ‘How effective was that solution?’

 Appreciation - Extracting maximum
information from facts.

 Drill-Down - Breaking problems down
into manageable parts.

 Cause & Effect Diagrams - Identifying
likely causes of problems.

 Systems Diagrams - Understanding
how factors affect each other.

 SWOT - Analyzing strengths,
weaknesses, opportunities and

 Cash Flow Forecasting with
Spreadsheets - Analyzing whether an
idea is financially viable.

 Risk Analysis Porter's Five Forces -
Understanding the balance of power in
a situation.

 PEST Analysis - Understanding "big
picture" forces of change.

 Value Chain Analysis - Achieving
excellence in the things that matter.

 USP Analysis - Finding competitive
 Dan Jackson, the new CEO of LPC Office

 He was confused by the situation he'd
inherited, and felt that the company was

 He was worried that the company had no
distinctive market position (no competitive

 He decided to use USP Analysis.
It's your "Competitive Edge". It’s the reason
why customers buy from you and you alone.

Process :
1. Understand the Characteristics that
Customers Value.
2. Rank Yourself and Your Competitors By These
3. Identify Where You Rank Well.
4. Preserve Your USP (and Use It!).

1. Understand the Characteristics that Customers
After talking to the company's biggest customers,

Dan has identified the following criteria as important:
- Price
- Quality of merchandise
- Range
- Catalog quality
- Website appearance and navigation
- Ease of ordering
- Speed of delivery
- Reliability of delivery.

PRICE 7 9 6 6
QUALITY 7 7 7 7
RANGE 9 6 5 9
9 7 6 9
WEBSITE 9 7 6 8
7 7 7 6
6 7 9 9

 Dan is sure that LPC can compete effectively
against these competitors by emphasizing the
breadth of its range and the quality of its

 Dan decides to invest in LPC's website and its
customer service systems, with a view to
opening up a clear gap between itself and

 And he then launches a marketing campaign
stressing LPC's USP.

• Appreciation is a technique used by
military planners, so we will take a military
Fact: It rained heavily last night

• So What?
• The ground will be wet
• So What?
• It will turn into mud quickly
• So What?

• If many troops and vehicles pass over the
same ground,
• movement will be progressively slower
• and more difficult as the ground gets
muddier and more difficult.

• So What?
• Where possible, stick to paved roads.
• Otherwise expect movement to be much
slower than normal.

 While it would be possible to reach this
conclusion without the use of a formal

 Appreciation provides a framework
within which you can extract
information quickly, effectively and

 Lakshmi is a software development manager for a
software house.

 She and her team handle short software
enhancements for many clients.

 Complaints regarding product & service quality.

 Demand has fallen.

 She plans to use Value Chain Analysis to deliver
excellent service to their clients.

 Value Chain Analysis helps you identify the
ways in which you create value for your

 And then helps you think through how you
can maximize this value:

 Whether through superb products, great
services, or jobs well done.

1.Activity Analysis:

 Identify the activities to undertake to
deliver your product or service.
 Include marketing of your products or
services; sales and order-taking;
operational processes; delivery; support.

2.Value Analysis:
 For each activity, you think through what
you would do to add the greatest value for
your customer.
 E.g. A telephone order-taking process, your
customer will value a quick answer to his or
her call.

3.Evaluation and Planning:
 Thirdly you evaluate whether it is worth
making changes, and then plan for action.
 During the Activity Analysis :
She identifies the following Primary Activities
that create value for clients:
 Order taking
 Enhancement specification
 Scheduling
 Software development
 Programmer testing
 Secondary testing
 Delivery

 Lakshmi also identifies the following
Support Activities as being important:

 Recruitment: Choosing people who
will work well with the team.

 Training: Helping new team members
to become effective.

 Giving a quick answer to incoming
phone calls;
(order taking)

 Having a good knowledge of the
customer’s business, situation and
system, so that they do not waste the
customer’s time with unnecessary

 Asking all the right questions, and
getting a full and accurate
understanding of the customer’s

 Explaining the development process
to the customer and managing his or
her expectations as to the likely
timetable for delivery.