Simon Wardley Maps - Value chain mapping.pdf

7/23/2019 Simon Wardley Maps - Value chain mapping.pdf

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Strategy, Mapping andSituational Awareness

July, 2015 |Simon Wardley


2/231

Why?

How to?

So what?

Gameplay

Learning


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Versus


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Two Examples

Chess WorldThermopylae


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White Black

Pawn (w), Pawn (b), Pawn (w),Queen (b), Pawn (w), Queen

(b) ...

Pawn (w), Pawn (b), Pawn (w),Queen (b), Pawn (w), Queen

(b) ...


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HighLow


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Versus


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Verbal reasoning

NOposition or movement

Backward causality

LOWlevels ofsituational awareness


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HIGHlevels ofsituational awareness

Visual reasoning

PositionAND movement

Context Specific


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How?(Action)

What?When?(Action)

Why?(strategy)

Where?(position & movement)


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Situational Awareness

How?

Action

Why?(strategy)Where?(position & movement)

In Military ...


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STRATEGY


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Tactical

Choices(BYOD)

OperationalDetails

(SLAs)

ImplementationDetails

(Private vs Public)

Purchasing

Decisions(Oracle vs SAP)


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Why?

Vague


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Everyone else is!67% of successfulcompanies do ...


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1984

62 Companies foryou to emulate


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Business Level Abstractionsof a Healthy Strategy


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digital business, big data, disruptive,innovative, collaborative, competitiveadvantage, ecosystem,networked,

efficiency, learning organisation, socialmedia, revolution, cloud based, agile,

secure, internet of things, growth, value,customer focused, open,

digital first, data leaders, agile, insightfrom data, platform,

sustainable, revolution, culture.

Common Blahs


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Our strategy is [Blah]. We will lead a [Blah]effort ofthe market through our use of[Blah]and [Blah]to

build a [Blah].By being both [Blah] and [Blah],

our [Blah]approach will drive [Bah]throughout theorganisation. Synergies between

our[Blah]and [Blah]will enable us to capture theupside by becoming [Blah]in a [Blah]world.These

transformations combined with [Blah]due toour[Blah]will create

a [Blah] through[Blah]and [Blah].

Blah Template


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Common Blahs+

Blah Template=

Autogenerated64 strategies


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Our strategy is customer focused. We will lead a disruptiveeffort of the market through our use of innovative socialmedia and big data to build a collaborative cloud basedecosystem.By being both digital first and agile, our open

approach will drive efficiency throughout the organisation.S y n e r g i e s b e t w e e n o u r c u l t u r e r e v o l u t i o nand networked learning organisation will enable us tocapture the upside by becoming data leaders in a digital

business

world. These transformations combinedwith insight from data due to our internet of things

platform will create a sustainable competitive advantagethroughgrowth andvalue.

Strategy 1 / 64


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http://strategy-madlibs.herokuapp.com/

by Bill West
http://strategy-madlibs.herokuapp.com/


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How?

What?

When?

Action

In Business ...

160 Hi-Tech companies in Silicon Valley, 2012


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Chancers

Players

Low

High

Low High

+ve Market Cap (7 yrs)

160 Hi Tech companies in Silicon Valley, 2012Size of the bubble = No. of Companies

-ve Market Cap (7 yrs)


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Why?

How to?


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xyz

xyz

xyz

xyz

xyz

xyz

xyz

xyz

xyz

1,2,3,4,5

1,2,3,4,5

1,2,3,4,5

People

ActivitiesPractices

Data

Capitalxyz

xyzxyz

xyzxyzxyz

xyz

xyz

xyz

1,2,3,4,5

1

,2,3,4,51

,2,3,4

,5

Organisation


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xyzxyzxyz

xyzxyzxyz

xyz

xyz

xy

z

1,2,3,4,5

1,2,3,4,51

,2,3,4,5

Organisation

Box and Wire


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Q. Approach?


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Business

SpeakTechnology

Speak

?&!A?


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Map

xyzxyzxyz

xyzxyzxyz

xyz

xyz

xy

z

1,2,3,4,5

1,2,3,4,51

,2,3,4,5

Organisation


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xyzxyzxyz

xyzxyzxyz

xyz

xyz

xy

z

1,2,3,4,5

1,2,3,4,51

,2,3,4,5

Organisation

ValueCh

ain

ValueCh

ain

ValueC

hain


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ValueChain

Visible

Invisible

!"#$

!""#$

%!& () *#+

!""#$

,(* -+*#$

*#+

!""#$

.#**/#

!""#$ !""#$

-+*#$

&(-#$

!""#$


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Photo Storage

Data Centre

Power

Print

Web Site

Platform

CRM

Image

Manipulation

Compute

Customer


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ValueChain

Visible

Invisible

Photo Stora e

Data Centre

Power

Compute

Print

Web Site

Customer

Image

Mani ulation

Customer

Relationship

SystemCRM

Platform


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ValueChain

Visible

Invisible

Photo Stora e

Data Centre

Power

Compute

Print

Web Site

Customer

Image

Mani ulation

Customer

Relationship

SystemCRM

Platform

BUT

No movement

POSITION


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Nokia


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Evolve


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Evolve


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A[1] A[2] A[3] A[4] A[5]

Evolution

Time for A[5]Ti f A


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Time

Applicable

Market

100% adoption A[5]

100% ado tion A[2]

100% adoption A[1]

100% adoption A[3]

100% adoption A[4]

Time for A[5]Time for A[2]

Time for A[5]Time for A


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Time

Applicable

Market

100% adoption A[5]

100% ado tion A[2]

100% adoption A[1]

100% adoption A[3]

100% adoption A[4]


Ubiquity



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Time

Applicable

Market

100% adoption A[5]

100% ado tion A[2]

100% adoption A[1]

100% adoption A[3]

100% adoption A[4]


Maturity


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Certainty

Type I II (key) III (key) IV

Publication

TypeWonder

building, construction

andawareness

operation,maintenance and

feature differences

use

Meaure Volume Volume


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Certainty

U

biquity

Custom Built

Commodity

ServiceProduct

Utility

Genesis Evolution


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Demand

Supply

Comp

etition


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Value Chain(describes organisation)

Evolution(describes change)

e


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ValueChain

Visible

Invisible

Photo Stora e

Data Centre

Power

Compute

Print

Web Site

Customer

Image

Mani ulation

Customer

Relationship

SystemCRM

Platform

e


51/231

Genesis CustomBuilt Product(+ rental) Commodity(+ utility) Evolution

ValueChain

Visible

Invisible

Map2005

POSITION

MOVEMENT


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Why?

How to?

So what?


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Emergency

Services Mobile

CommunicationPlatfom

e

User

ESMCP


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ValueChain

Visibl

Invisible

CO

User Orgs

ESMCP

le

User

ESMCP


56/231


ValueChain

Visibl

Invisible

CO

User Orgs

ESMCP Need


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Change

le


58/231

GenesisCustomBuilt

Product(+ rental) Commodity(+ utility) Evolution

ValueChain

Visib

Invisible

ble


59/231

GenesisCustomBuilt


ValueChain

Visib

Invisible

Competition

ble Uncharted Industrialised


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GenesisCustomBuilt


ValueChain

Visib

Invisible

Uncharted

Chaotic

Uncertain

Unpredictable

Changing

Different

Exciting

Future Worth

Differential

Industrialised

Ordered

Known

Measured

Stable

Standard

Dull

Low Margin

Essential

Uncharted Industrialised

ble


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GenesisCustomBuilt


ValueChain

Visib

Invisible

Lean

SIX SIGMA / OUTSOURCE

StrongWeak

AGILE / IN-HOUSE

Strong Weak


ble


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GenesisCustomBuilt


ValueChain

Visib

Invisible

Unit / Utility basedStrongWeak

COTS / FixedStrongWeak

Strong Weak

Outcome based

Strong Weak

Time and Material / VC based


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Management


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ble

CustomerCustomer


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GenesisCustomBuilt

Product(+ rental)

Commodity(+ utility) Evolution

ValueChain

Visib

Invisible

3D Visualisation

Land Registry

Data Centre

Power

Platform

HR

GIS

Customer

Compute

ERPM

Finance

BIM

Web site

RISK

CRM

WISE

PIMS

Collaboration


ble

CustomerCustomer


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GenesisCustomBuilt

Product(+ rental)


ValueChain

Visib

Invisible

3D Visualisation

Land Registry

Data Centre

Power

Platform

HR

GIS

Customer

Compute

PIMS

ERPM

Finance

BIM

Web site

RISK

CRM

WISE

outsource to utility

suppliers, Six Sigma

use off the shelf

roducts, Lean

build in-house with agile

techniques

LEGEND

Collaboration

Y Y


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SIX SIGMA

StrongWeak

AGILE

Strong Weak

OR

YoYo

O ts rce


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Outsource

SIX SIGMA

StrongWeak

Incur excessivechange control

costs

Some parts will beefficient


69/231

Practice


70/231

Outsourced

A

B

C

D

E

F

Q. Outsource?


ible


71/231

GenesisCustomBuilt

Product(+ rental)


ValueChain

Vis

Invisible

Outsourced

A

E

D

BC

F

Q. Outsource?


72/231

A

D

C

B

HR

Compensation

Data

Data

Q. Outsource?


sible


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GenesisCustomBuilt

Product(+ rental)


Va

lueChain

Vis

Invisible

D

C

BA

HR

Data

Data

Q. Outsource?


74/231

Q. Approach?


sible


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GenesisCustomBuilt

Product(+ rental)


Va

lueChain

Vis

Invisible

Autonomous

Vehicle Driver

GPS

Vehicle

StateServer

Autonomous

vehicle manager

LIDAR

World

Perception

Server Vision

System


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Bias


77/231



78/231

Genesis CustomBuilt

Product(+ rental)


RecommendationEngine (5)

CRM (6)

MarketAnalysis (7)

StreamingService (3)

Web Site (13)

Web Server(14)

Compute (18)

Power (22)



79/231

Genesis CustomBuilt

Product(+ rental)



CRM (6)

MarketAnalysis (7)


Web Site (13)

Web Server(14)

Compute (18)

Power (22)

Lexicon

Duplication

Bias

Cluster


W b Si (13)


80/231

Genesis CustomBuilt

Product(+ rental)



CRM (6)

Market Analysis (7)


Web Site (13)

Web Server(14)

Compute (18)

Power (22)


isible

Customer


81/231

Genesis CustomBuilt

Product(+ rental)


Va

lueChain

Vi

Invisible

Parking

Thin Client

Org Chart

IntranetEmail

Smart Phone

CRM

WorkflowHelpdesk

Recruitment

Payment

Accounting

Flexitime

Procurement

HREDRMS

Contract

Platform

Data Centre

Compute

Power


isible

Customer


82/231

Genesis CustomBuilt

Product(+ rental)


Va

lueChain

V

Invisible

Parking

Thin Client

Org Chart

IntranetEmail

Smart PhoneCRM

WorkflowHelpdesk

Recruitment

PaymentAccounting

Flexitime

Procurement

HR

Contract

Platform

Data Centre

Compute

Power

EDRMS


83/231

Collaboration& Silos

Visible

Leave to Enter Leave to Exit Detection


84/231

Genesis Custom

Built

Product

(+ rental)Commodity(+ utility) Evolution

Va

lueChain

V

Invisible Borders

Visible

RequestImmigration

Product

Notify Change ofCircumstances

Amend ActiveRequest RequestReplacement Request DataCheck Query/Complain RequestReview ChallengeDecision


85/231

Genesis Custom

Built

Product


Va

lueChain

V

Invisible

IPT

Visible


86/231

Genesis Custom

Built

Product


Va

lueChain

V

Invisible

NPDP

Visible Customer Interface

(product catalog)

U I f


87/231

Genesis Custom

Built

Product


Va

lueChain

V

Invisible

Analytics Store

Reference Data

Rules System

Compute

Data centre

Data StorageNetworks

Orchestration &

Workflow

Analytics

User Interfaces

Messaging

Appointment

Booking

Document Store

Payment System

Digital Receipt ofDocuments

Decision Support

System

Devices (Fixed &

Mobile)

Data Quality

APIs

Home Office

IT Weapons of Mass Duplication - Leader Board


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Number of Duplicate

Efforts in a single

Organisation

Technology Space Industry

380 ERP system Global Corporate

170 Cloud projectsGlobal

Technology Vendor

118 Workflow systems Government

22 Rules Engines European Corporate

14 CRM system Bank

6 General Rule of Thumb Everywhere

unverified


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ContractManagement


90/231

exity


91/231

Goodness

Comple

+ FIST

+ features

+ features

Idea

Harvest Hawk,id t b t


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idea to combatoperations in 18

months


Visible


93/231

Genesis Custom

Built

Product

(+ rental)

Commodity

(+ utility) Evolution

Va

lueChain

V

Invisible ESMCP


Visible


94/231

Genesis Custom

Built

Product

(+ rental)

Commodity

(+ utility) Evolution

Va

lueChain

V

Invisible ESMCP


95/231

Versus


96/231

User Needs Effective Efficiency Communication

Collaboration Contract Risk Pitfalls

Team Structure Culture Finance Stability


97/231

Examplemedia company

Focus Elements


98/231

Scope

Transactions

Users

Purpose

Situational

Awareness

D

octrine

Leadership

Focus Elements


99/231

Scope TV company

Transactions We produce TV shows

Users Public

User Need

Value Chain

Context

Tactics

Purpose

Situational

Awareness

D

octrine

Leadership

Customer

Leisure TimeAggregator


100/231

Need

Aggregator

Branded

Customer

AggregatorLeisure TimeV

isible


101/231

CRM

Creative

Studios

Traditional Media(DVDs etc)

Aggregator

Branded

InternetBroadcast

Artistic Direction

Production Talent

ProductionSystems

MarketAnalysis

Content

Web Site

StreamingService

RecommendationEngine

WebServer

ComputePower

Va

lueChain

Invisible

needs

needs

needsneeds

needs

needs

needs

needs

needs

needs

needs

needs

needs

needs

needs

needs

needs

needs

needs

needs

needs

needs

Value Chain

Visible

Customer



102/231

Genesis Custom

Built

Product

(+ rental)

Commodity

(+ utility)Evolution

ValueChain

Invisible

CRM

Creative

Studios


Branded

InternetBroadcast

Artistic

Direction

ProductionTalent

ProductionSystems

MarketAnalysis

Content

Web Site

StreamingService


WebServer

Compute

Power

Map

Visible

Customer



103/231

Genesis Custom

Built

Product

(+ rental)

Commodity


ValueChain

Invisible

CRM

Creative

Studios


Branded

InternetBroadcast

Artistic

Direction

ProductionTalent

ProductionSystems

MarketAnalysis

Content

Web Site

StreamingService


WebServer

Compute

Power

Commissioned AcquiredContent Pipeline

Visible

Customer



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Genesis Custom

Built

Product

(+ rental)

Commodity


ValueChain

Invisible

CRM

Creative

Studios


Branded

InternetBroadcast

Artistic

Direction

ProductionTalent

ProductionSystems

MarketAnalysis

Content

Web Site

StreamingService


WebServer

Compute

Power


Visible

Customer



105/231

Genesis Custom

Built

Product

(+ rental)

Commodity


ValueChain

Invisible

Creative

Studios


Branded

InternetBroadcast

Artistic

Direction

ProductionTalent

ProductionSystems

Content


CRM

MarketAnalysis

Web Site

Streaming

ServiceRecommendationEngine

WebServer

Compute

Power

Bias


Visible

Customer



106/231

Genesis Custom

Built

Product

(+ rental)

Commodity


ValueChain

Invisible

CRM

Creative

Studios


Branded

InternetBroadcast

Artistic

Direction

ProductionTalent

ProductionSystems

MarketAnalysis

Content

Web Site

Streaming

ServiceRecommendationEngine

WebServer

Compute

Power


outsource / utility suppliers /other dept / six sigma

off the shelf products / lean

in-house / a ile / d namic

Method

Focus Elements


107/231

Scope TV company


Users Public

User Need Leisure time

Value Chain Components

Context Map

TacticsDuplication, Bias and

Methods

Organisational

Learning

Structure

Strategy

Purpose

Situational

Awareness

D

octrine

Leadership

L i


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Why?

How to?

So what?

Gameplay

Learning


109/231


Visible


110/231

Genesis Custom

Built

Product

(+ rental)

Commodity


ValueChain

Invisible

POSITION

MOVEMENT

Map2005


Visible


111/231

Genesis Custom

Built

Product

(+ rental)

Commodity


ValueChain

Invisible

Platform

Compute


Visible


112/231

Genesis Custom

Built

Product

(+ rental)

Commodity


ValueChain

Invisible

Platform

Compute

Competition

Competition


Visible The Far Future


113/231

Genesis Custom

Built

Product

(+ rental)

Commodity


ValueChain

Invisible

Platform

Compute

The Near Future


114/231

Componentisation

Herbert Simon


Visible


115/231

Genesis Custom

Built

Product

(+ rental)

Commodity


ValueChain

Invisible

Interfa

ceElectric

Lighting

Radio

Television

A/C Utility(Westinghouse)

Siemens


Visible

IntelligentAgents


116/231

Genesis Custom

Built

Product

(+ rental)

Commodity


ValueChain

Invisible

Electricity

Computing

Analytics

Agents


Visible


117/231

Genesis Custom

Built

Product

(+ rental)

Commodity


ValueChain

Invisible

Past Success

Inertia

Disruption of Past Transition to the Agency of theB i M d l

+Inertia


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p

Norms New

g y

NewBusiness Model

Change of business

relationship (loss of

social capital)

Investment in

knowledge capitalSuitability Declining unit value

Loss of existing

financial or physicalcapital

Cost of acquiring

new skillsets

Lack of second

sourcing options

Data for Past

Successcounteracts

Loss of political

capital

Investment in new

business

relationships

Lack of pricing

competition

Resistance from

rewards and culture

Threat to barriers

to entry

Changes to

governance,

management and

practices

Loss of strategic

control

External financial

markets reinforce

existing models


Visible DSC


119/231

Genesis Custom

Built

Product

(+ rental)

Commodity


ValueChain

Invisible

OnlinePhoto

Digital

Analog


Visible


120/231

Genesis Custom

Built

Product

(+ rental)

Commodity


ValueChain

Invisible

Digital

Fulfilment

Inertia


Visible


121/231

Genesis Custom

Built

Product

(+ rental)

Commodity


ValueChain

Invisible


Visible


122/231

Genesis Custom

Built

Product

(+ rental)

Commodity


ValueChain

Invisible

Platform

Compute


Visible

ATTACK


123/231

Genesis Custom

Built

Product

(+ rental)

Commodity


ValueChain

Invisible

Platform

Compute

ATTACKHERE?

ATTACKHERE?

ATTACKHERE?


Visible

ATTACK


124/231

Genesis Custom

Built

Product

(+ rental)

Commodity


V

alueChain

Invisible

Platform

Compute

ATTACKHERE?

ATTACKHERE?

ATTACKHERE?


Visible


125/231

Genesis Custom

Built

Product

(+ rental)

Commodity

(+ utility)

Evolution

V

alueChain

Invisible

+competition


Visible


126/231

Genesis Custom

Built

Product

(+ rental)

Commodity

(+ utility)

Evolution

V

alueChain

Invisible

Open


Visible


127/231

Genesis Custom

Built

Product

(+ rental)

Commodity

(+ utility)

Evolution

V

alueChain

Invisible

Patents


Visible


128/231

Genesis Custom

Built

Product

(+ rental)

Commodity

(+ utility)

Evolution

V

alueChain

Invisible

FUD


Visible


129/231

Genesis Custom

Built

Product

(+ rental)

Commodity

(+ utility)

Evolution

V

alueChain

Invisible

+Constraints

Focus Gameplay

Basic Operations Focus on user needsSituational awareness

(communication,Effective & efficient

(methods, silos, bias,Structure & culture

(PST)

Optimising Flow(financial, risk,

marketing operationChannel conflicts &disintermediation

LE CELG N


130/231

alignment) rationalisation)(PST) marketing, operation,

profile)disintermediation

User Perception Consumer education Bundling Creating artifical needsCreating a confusion

of choiceFUD (fear,

uncertainty, doubt)Artificial competition

Lobbying /counter

Accelerators Market EnablementOpen approaches(data, source etc)

Exploiting networkeffects

Co-operation Industrial policy

De-acceleratorsExploitation of existing

constraintsPatents & IPR

Creating constraints(supply chain)

Limitation ofcompetition

Dealing withtoxicity

Disposal of liability Sweat and dump Pig in a poke

Market Differentiation Pricing policyExploiting buyer /

supplier power Harvesting Standards game Signal distortion

Defensive Threat acquisitionRaising barriers to

entryProcrastination &

timingDefensive regulation

Attacking Directed investment ExperimentationCreating a centre of

gravityUndermining

barriers to entryFool's mate

(lower orders)

Ecosystem Alliances Co-creationILC

(sensing engines)Tower & moat 2 factor

Co-opting &intercession

Embrace &extend

CompetitorAmbush

(tech drops)Fragmentation play

Reinforcing competitorinertia

Sapping(multiple fronts)

MisdirectionRestriction of

movement (circling)Talent raid

Positional Land grabFirst mover

(Industrialisation)Fast follower(Innovation)

Weak signal /horizon

Poison Licensing play InsertionDesigned to fail

(community)


131/231

Examplemedia company

Focus Gameplay


(communication,Effective & efficient

(methods, silos, bias,Structure & culture

(PST)


marketing, operation,Channel conflicts &disintermediation

LE CELG N


132/231

alignment) rationalisation)(PST) marketing, operation,

profile)disintermediation


of choiceFUD (fear,


Lobbying /counter
















gravityUndermining


(lower orders)




Embrace &extend

CompetitorAmbush










(community)


Visible


133/231

Genesis Custom

Built

Product

(+ rental)

Commodity

(+ utility)

Evolution

V

alueChain

Invisible ESMCP


Visible

Customer


BrandedContent


134/231

Genesis Custom

Built

Product

(+ rental)

Commodity

(+ utility)

Evolution

V

alueChain

Invisible

CRM

Creative

Studios


InternetBroadcast

Artistic

Direction

ProductionTalent

ProductionSystems

MarketAnalysis

Content

Web Site

Streaming

ServiceRecommendation

Engine

WebServer

Compute

Power



Visible

Customer


BrandedContent

Team 1


135/231

Genesis Custom

Built

Product

(+ rental)

Commodity

(+ utility)

Evolution

V

alueChain

Invisible

CRM

Creative

Studios


InternetBroadcast

Artistic

Direction

ProductionTalent

ProductionSystems

MarketAnalysis

Content

Web Site

Streaming


Engine

WebServer

Compute

Power


Team 10

Team 9

Team 6Team 5

Team 4

Team 2Team 3

Team 7

Team 8

Focus Gameplay


(communication,alignment)

Effective & efficient(methods, silos, bias,

rationalisation)

Structure & culture(PST)


marketing, operation,Channel conflicts &disintermediation

LE CELG N


136/231

alignment) rationalisation)( ) g p

profile)


of choiceFUD (fear,


Lobbying /counter
















gravityUndermining


(lower orders)




Embrace &extend

CompetitorAmbush










(community)


Visible

Customer


BrandedContent


137/231

Genesis Custom

Built

Product

(+ rental)

Commodity

(+ utility)

Evolution

V

alueChain

Invisible


InternetBroadcast

ProductionTalent

ProductionSystems


CRM

MarketAnalysis

Web Site

Streaming


Engine

WebServer

Compute

Power

ArtisticDirection

CreativeStudios


Visible

Customer


BrandedContent


138/231

Genesis Custom

Built

Product

(+ rental)

Commodity

(+ utility)

Evolution

V

alueChain

Invisible

CRM

ProductionSystems


Commissioned Acquired

InternetBroadcast

ArtisticDirection

ProductionTalent

MarketAnalysis

Web Site

StreamingService

WebServer

Compute

Power

Content Pipeline

CreativeStudios



Visible

Customer


BrandedContent


139/231

Genesis Custom

Built

Product

(+ rental)

Commodity

(+ utility)

Evolution

V

alueChain

Invisible

CRM

ProductionSystems



InternetBroadcast

ArtisticDirection

ProductionTalent

MarketAnalysis

Web Site

StreamingService

WebServer

Compute

Power

Content Pipeline

+ Constraint

CreativeStudios



Visible

Customer


BrandedContent


140/231

Genesis Custom

Built

Product

(+ rental)

Commodity

(+ utility)

Evolution

V

alueChain

Invisible

CRM

ProductionSystems

CreativeStudios



InternetBroadcast

ArtisticDirection

ProductionTalent

MarketAnalysis

Web Site

StreamingService

WebServer

Compute

Power

Content Pipeline

+ Constraint

Recommendation

Engine


Visible

Customer


BrandedContent


141/231

Genesis Custom

Built

Product

(+ rental)

Commodity

(+ utility)

Evolution

V

alueChain

Invisible

CRM

ProductionSystems

CreativeStudios



InternetBroadcast

ArtisticDirection

ProductionTalent

MarketAnalysis

Web Site

StreamingService

WebServer

Compute

Power

Content Pipeline

+ Constraint

Recommendation

Engine


Visible

Customer


BrandedContent


142/231

Genesis Custom

Built

Product

(+ rental)

Commodity

(+ utility)

Evolution

V

alueChain

Invisible

CRM

CreativeStudios



InternetBroadcast

ArtisticDirection

ProductionTalent

ProductionSystems

MarketAnalysis

Web Site

StreamingServiceRecommendation

Engine

WebServer

Compute

Power

Content Pipeline

+ Constraint

+ Constraint


Visible

Customer


BrandedContent


143/231

Genesis Custom

Built

Product

(+ rental)

Commodity

(+ utility)

Evolution

V

alueChain

Invisible

CRM

CreativeStudios



InternetBroadcast

ArtisticDirection

ProductionTalent

ProductionSystems

MarketAnalysis

Web Site


Engine

WebServer

Compute

Power

Content Pipeline

+ Constraint

+ Constraint

+ Constraint

+ Constraint


Visible

Customer


BrandedContent


144/231

Genesis Custom

Built

Product

(+ rental)

Commodity

(+ utility)

Evolution

V

alueChain

Invisible

CRM

CreativeStudios



InternetBroadcast

ArtisticDirection

ProductionTalent

ProductionSystems

MarketAnalysis

Web Site


Engine

WebServer

Compute

Power

Content Pipeline

+ Constraint

+ Constraint

+ Constraint

+ Constraint


Visible

Customer


BrandedContent


145/231

Genesis Custom

Built

Product

(+ rental)

Commodity

(+ utility)

Evolution

V

alueChain

Invisible

CRM

CreativeStudios



InternetBroadcast

ArtisticDirection

ProductionTalent

ProductionSystems

MarketAnalysis

Web Site


Engine

WebServer

Compute

Power

Content Pipeline

+ Constraint

+ Constraint

+ Constraint

+ Constraint


Visible

Customer


BrandedContent


146/231

Genesis Custom

Built

Product

(+ rental)

Commodity

(+ utility)

Evolution

V

alueChain

Invisible

CRM

CreativeStudios



InternetBroadcast

ArtisticDirection

ProductionTalent

ProductionSystems

MarketAnalysis

Web Site


Engine

WebServer

Compute

Power

Content Pipeline

+ Constraint

+ Constraint

+ Constraint

+ Constraint

Open


Visible

Customer


BrandedContent


147/231

Genesis Custom

Built

Product

(+ rental)

Commodity

(+ utility)

Evolution

V

alueChain

Invisible

CRM

CreativeStudios



InternetBroadcast

ArtisticDirection

ProductionTalent

ProductionSystems

MarketAnalysis

Web Site


Engine

WebServer

Compute

Power

Content Pipeline

+ Constraint

+ Constraint

+ Constraint

+ Constraint

Open

Do you thinkCreative Studioswill oppose this?


Visible

Customer


BrandedContent


148/231

Genesis Custom

Built

Product

(+ rental)

Commodity

(+ utility)

Evolution

V

alueChain

Invisible

CRM

CreativeStudios



InternetBroadcast

ArtisticDirection

ProductionTalent

ProductionSystems

MarketAnalysis

Web Site


Engine

WebServer

Compute

Power

Content Pipeline

+ Constraint

+ Constraint

+ Constraint

+ Constraint

Open

WHERE?

WHERE?


Visible

Customer


BrandedContent


149/231

Genesis Custom

Built

Product

(+ rental)

Commodity

(+ utility)

Evolution

V

alueChain

Invisible

CRM

CreativeStudios



InternetBroadcast

ArtisticDirection

ProductionTalent

ProductionSystems

MarketAnalysis

Web Site


Engine

WebServer

Compute

Power

Content Pipeline

+ Constraint

+ Constraint

+ Constraint

+ Constraint

Open

WHERE?

WHERE?

Why?(strategy)

I B


150/231

Situational Awareness

How?

What?

When?

Action

In Business ...

Where?(position & movement) Why?(strategy)

Focus Elements

Scope TV company

se


151/231


Users Public



Context Map

TacticsDuplication, Bias and

Methods

OrganisationalLearning

Economic Patterns

Structure Cell

Strategy

Attack the underlying

supply chain/ Fools mate

Purpos

Situational

Awareness

Doctrine

Leadership

Focus Elements Iterative

Scope TV company

se

The Game


152/231


Users Public



Context Map

Tactics Duplication, Bias and Methods


Economic Patterns

Structure Cell

Strategy

Attack the underlying supply

chain/ Fools mate

Purpos

Situational

Awareness

Doctrine

Leadership

The Play (Decide)

Observe

Orientate

Act


153/231

Impact


Visible

PlatformNew

Applications


154/231

Genesis Custom

Built

Product

(+ rental)

Commodity

(+ utility)

Evolution

V

alueChain

Invisible

ComputeCompute

Utility

Co-evolved

management

tools and

practice

(Devops)

Physical Server

Server OS

Guest OS

pp

(Developers)

2008


155/231

Cloud 20102008

Windows

Other

RHEL

70% Ubuntu

WindowsRHEL

S h t?Learning


156/231

Why?

How to?

So what?

Gameplay


157/231

Versus

LOW

"Stories"


158/231

LOW

levels ofsituationalawareness"secrets of the

sequence"

"meme copying"

"alignment"

"Tyranny of action"

"Visual reasoning / Context Specific"

HIGH


159/231

"Position and movement"

"Wide co-ordination / collaboration /understanding"

HIGH

levels ofsituationalawareness

High

+ve Market Cap (7 yrs)

160 Hi-Tech companies in Silicon Valley, 2012

Size of the bubble = No. of Companies


160/231

Chancers

Players

Low

Low High

-ve Market Cap (7 yrs)

Focus Company believes theyunderstand

Scope Common

ose


161/231

Transactions Uncommon

Users Quite Rare

User Need Rare

Value Chain Rare

Context Very Rare

Tactics Very Rare


Very Rare

Structure Uncommon

Strategy Common

Purpo

Situational

Awareness

Doctrine

Leadership

The

missingmiddle

Most jumpfrom usercase to

structure


162/231

Map

xyzxyzxyz

xyzxyz

xyz

xyz

xyz

xyz

1,2,3,4,5

1,2,3,4,51

,2,3,4

,5

Organisation

Customer


Branded


163/231

Need

Customer

Aggregator

Branded

Leisure TimeVisible

needs


164/231

CRM

Creative

Studios

Traditional Media(DVDs etc)Internet

Broadcast

Artistic Direction

Production Talent

ProductionSystems

MarketAnalysis

Content

Web Site

Streaming

Service


WebServer

ComputePower

V

alueChain

Invisible

needs

needs

needsneeds

needs

needs

needs

needs

needs

needs

needs

needs

needs

needs

needs

needs

needs

needs

needs

needs

needs

needs

Value Chain


Visible

Customer


BrandedContent


165/231

Genesis Custom

Built

Product

(+ rental)

Commodity

(+ utility)

Evolution

V

alueChain

Invisible


InternetBroadcast

ProductionTalent

ProductionSystems


CRM

MarketAnalysis

Web Site


Engine

WebServer

Compute

Power

ArtisticDirection

CreativeStudios

Map


Visible

Customer


BrandedContent


166/231

Genesis Custom

Built

Product

(+ rental)

Commodity

(+ utility)

Evolution

V

alueChain

Invisible

CRM


InternetBroadcast

ProductionTalent

ProductionSystems

MarketAnalysis

Web Site


Engine

WebServer

Compute

Power


outsource / utility suppliers /

other dept / six sigma

off the shelf products / lean

in-house / a ile / d namic

Doctrine

ArtisticDirection

CreativeStudios


Visible

Customer


BrandedContent


167/231

Genesis Custom

Built

Product

(+ rental)

Commodity

(+ utility)

Evolution

V

alueChain

Invisible

CRM

CreativeStudios



InternetBroadcast

ArtisticDirection

ProductionTalent

ProductionSystems

MarketAnalysis

Web Site


Engine

WebServer

Compute

Power

Content Pipeline

+ Constraint

+ Constraint

+ Constraint

+ Constraint

Open

WHERE?

WHERE?

Why?(strategy)


168/231

The only people whocan map a business

are people within the

business.

No consultants

B t i l


169/231

Bonus material

July, 2015 |Simon Wardley

Focus Gameplay




rationalisation)



marketing, operation,profile)

Channel conflicts &disintermediation

LE CELG N


170/231


of choiceFUD (fear,


Lobbying /counter











supplier power

Harvesting Standards game Signal distortion





gravityUndermining


(lower orders)




Embrace &extend

CompetitorAmbush










(community)

Focus Gameplay




rationalisation)





LE CELG N


171/231


of choiceFUD (fear,


Lobbying /counter











supplier power






gravityUndermining


(lower orders)




Embrace &extend

CompetitorAmbush










(community)

Choose one ...


172/231

+ Innovation

+ Customer

+ Efficiency


Visible


173/231

Genesis Custom

Built

Product

(+ rental)

Commodity

(+ utility)

Evolution

ValueChain

Invisible

AmazonEC2

First Mover


Visible


174/231

Genesis Custom

Built

Product

(+ rental)

Commodity

(+ utility)

Evolution

ValueChain

Invisible

Big Data


Visible


175/231

Genesis Custom

Built

Product

(+ rental)

Commodity

(+ utility)

Evolution

ValueChain

Invisible

Leverage


Visible


176/231

Genesis Custom

Built

Product

(+ rental)

Commodity

(+ utility)

Evolution

ValueChain

Invisible

Amazon BigData (EMR)

Commoditize


Visible

Innovate


177/231

Genesis CustomBuilt

Product(+ rental)

Commodity

(+ utility)

Evolution

ValueChain

Invisible


Visible

Commoditize

LeverageInnovate


178/231

Genesis CustomBuilt

Product(+ rental)

Commodity

(+ utility)

Evolution

ValueChain

Invisible


Visible

Commoditize

LeverageInnovate


179/231

Genesis CustomBuilt

Product(+ rental)

Commodity

(+ utility)

Evolution

ValueChain

Invisible First Mover


Visible

Commoditise

LeverageInnovate


180/231

Genesis CustomBuilt

Product(+ rental)

Commodity

(+ utility)

Evolution

ValueChain

Invisible First Mover

Fast Follower


Visible

Commoditise

LeverageInnovate


181/231

Genesis CustomBuilt

Product(+ rental)

Commodity(+ utility)

Evolution

ValueChain

Invisible

Fast Follower

First Mover

+ Stable revenue

+ Maximize Opportunity


182/231

+ Maximize Opportunity

+ Innovation

+ Customer focus

+ Efficienc

Size

Rate of Release of New AW Services160


183/231

0

40

80

120

2007 2008 2009 2010 2011 2012

Visible Uncharted Industrialised

Exploitable as

Customer


184/231

Genesis CustomBuilt

Product(+ rental)


V

alueChain

Invisible

Exploitable as

as Platform

Experimentation

Visible Uncharted IndustrialisedCustomer


185/231

Genesis CustomBuilt

Product(+ rental)


V

alueChain

Invisible

Ecosystem

Focus Gameplay




rationalisation)





User Perception Consumer education Bundling Creating artifical needsCreating a confusion FUD (fear,

Artificial competitionLobbying /

LE CELG N


186/231

User Perception Consumer education Bundling Creating artifical needsg

of choice(


y gcounter











supplier power






gravityUndermining


(lower orders)




Embrace &extend

CompetitorAmbush










(community)


Visible

Customer


BrandedContent



187/231

Genesis CustomBuilt

Product(+ rental)


Evolution

ValueChain

Invisible


InternetBroadcast

ProductionTalent

ProductionSystems

Content Pipeline

CRM

MarketAnalysis

Web Site


Engine

WebServer

Compute

Power

ArtisticDirection

CreativeStudios


Visible

Customer


BrandedContent



188/231

Genesis CustomBuilt

Product(+ rental)


Evolution

ValueChain

Invisible


InternetBroadcast

ProductionTalent

ProductionSystems

Content Pipeline

CRM

MarketAnalysis

Web Site


Engine

WebServer

Compute

Power

ArtisticDirection

CreativeStudios

Financial Flow


Visible

Customer


BrandedContent



189/231

Genesis CustomBuilt

Product(+ rental)


Evolution

ValueChain

Invisible

CRM


InternetBroadcast

ProductionTalent

ProductionSystems

MarketAnalysis

Web Site


Engine

WebServer

Compute

Power

Content Pipeline

ArtisticDirection

CreativeStudios

Customer

LeisureTime

Branded Acquired

rev $ per show viewed


190/231

Aggregator

CommissionedTraditional Media

(DVDs etc)

InternetBroadcast

Web Site

StreamingService

rev $ per show viewed

ArtisticDirection

Cost $ of show to produce

Cost $ per show

seen

Cost $ GB streamed

Fixed $ Cost

Cost $ per user vist

Fixed $ Cost


Visible

Customer


BrandedContent

Commissioned AcquiredC t t Pi li


191/231

Genesis CustomBuilt

Product(+ rental)


Evolution

ValueChain

Invisible

CRM

Creative

Studios


InternetBroadcast

ArtisticDirection

ProductionTalent

ProductionSystems

MarketAnalysis

Web Site


Engine

WebServer

Compute

Power

Content Pipeline

Fault Tree


Visible

Customer


BrandedContent

Commissioned AcquiredC t t Pi li


192/231

Genesis CustomBuilt

Product(+ rental)


Evolution

ValueChain

Invisible

CRM


InternetBroadcast

ProductionTalent

ProductionSystems

MarketAnalysis

Web Site


Engine

WebServer

Compute

Power

Content Pipeline

ArtisticDirection

CreativeStudiosPOSITION

MOVEMENT

FLOW

Focus Gameplay




rationalisation)






of choiceFUD (fear,

uncertainty doubt)Artificial competition

Lobbying /counter

LE CELG N


193/231

p g gof choice uncertainty, doubt)

pcounter

Accelerators Market Enablement Open approaches(data, source etc)










supplier powerHarvesting Standards game Signal distortion





gravityUndermining


(lower orders)




Embrace &extend

CompetitorAmbush










(community)


Visible

Customer


BrandedContent



194/231

Genesis CustomBuilt

Product(+ rental)


Evolution

ValueChain

Invisible

CRM

Creative

Studios


InternetBroadcast

ArtisticDirection

ProductionTalent

ProductionSystems

MarketAnalysis

Web Site


Engine

WebServer

Compute

Power

Content Pipeline


Visible

Customer


BrandedContent


Team 2Team 3

Team 1


195/231

Genesis CustomBuilt

Product(+ rental)


Evolution

ValueChain

Invisible

CRM

Creative

Studios


InternetBroadcast

ArtisticDirection

ProductionTalent

ProductionSystems

MarketAnalysis

Web Site


Engine

WebServer

Compute

Power

Content Pipeline

Team 10

Team 9

Team 6Team 5

Team 4

Team 7

Team 8


Visible


196/231

Genesis CustomBuilt

Product(+ rental)


Evolution

ValueChain

Invisible

Creative

Studios

ProductionTalent

WebServer

Compute

Power

Team 10

Team 7


Visible


197/231

Genesis CustomBuilt

Product(+ rental)


Evolution

ValueChain

Invisible

Creative

Studios

ProductionTalent

WebServer

Compute

Power

Team 10

Team 7

Engineering

Engineering


Visible

SIX SIGMA / OUTSOURCEStrongWeak

AGILE / IN-HOUSE

Strong Weak


198/231

Genesis CustomBuilt

Product(+ rental)


Evolution

ValueChain

Invisible

Creative

Studios

ProductionTalent

WebServer

Compute

Power

Team 10

Team 7

StrongWeak

Engineering

Engineering


Visible

SIX SIGMA / OUTSOURCEStrongWeak

AGILE / IN-HOUSE

Strong Weak


199/231

Genesis CustomBuilt

Product(+ rental)


Evolution

ValueChain

Invisible

Creative

Studios

ProductionTalent

Team 7

StrongWeak

Engineering

MOVEMENT


Visible

Customer


BrandedContent


Team 2Team 3

Team 1


200/231

Genesis CustomBuilt

Product(+ rental)


Evolution

ValueChain

Invisible

CRM

Creative

Studios


InternetBroadcast

ArtisticDirection

ProductionTalent

ProductionSystems

MarketAnalysis

Web Site


Engine

WebServer

Compute

Power

p

Team 10

Team 9

Team 6Team 5

Team 4

Team 7

Team 8


Visible

Customer


BrandedContent


Team 3


201/231

Genesis CustomBuilt

Product(+ rental)


Evolution

ValueChain

Invisible

CRM

Creative

Studios


InternetBroadcast

ArtisticDirection

ProductionTalent

ProductionSystems

MarketAnalysis

Web Site


Engine

WebServer

Compute

Power

p

Team 10

Team 9

Team 6Team 5

Team 4

Team 8


Visible

Customer


BrandedContent



202/231

Genesis CustomBuilt

Product(+ rental)


Evolution

ValueChain

Invisible

CRM

Creative

Studios


InternetBroadcast

ArtisticDirection

ProductionTalent

ProductionSystems

MarketAnalysis

Web Site


Engine

WebServer

Compute

Power

p

Team 10

Team 9

Team 5


Visible

Customer


BrandedContent



203/231

Genesis CustomBuilt

Product(+ rental)


Evolution

ValueChain

Invisible

CRM

Creative

Studios


InternetBroadcast

ArtisticDirection

ProductionTalent

ProductionSystems

MarketAnalysis

Web Site


Engine

WebServer

Compute

Power

Rare

Poorly Understood

Deals with ...Growing

Increasing Education

Deals with ...Common

Well Defined

Deals with ...

Steals Steals

Uses Components From


204/231

Genesis CustomBuilt

Product(+ rental)


Evolution

Differential & Novel

High Future value

Constantly changing

Undefined Market

Happy with ...

Failure

Gambling & Gut Feel

Experimentation

Uncertainty

Methods ... Agile

Uses common components

Creative Mind, Path Finder

Exploration

Feature Differentiation

High Profitability

Maturing Products

Growing Market

Happy with ...

Constant Improvement

Market Analysis

Feedback

Trend Spotting

Methods ... Lean

Machiavellian, Tactical Mind

Listening

Essential Cost of Doing Business

High Volume

Standardised & Stable

Mature Market

Happy with ...

Opertional Efficiency

Metric Driven

Analytics

Scientifc Modelling

Methods ... Six Sigma

Industrialist, War Maker

Building what is needed

Mines / Nurtures Ecosystems Builds Ecosystems

Type ...

Speed above all else Empires of ScaleMakes success happen

Rare

Poorly Understood




Well Defined

Deals with ...

Steals Steals



205/231

Genesis CustomBuilt

Product(+ rental)


Evolution


High Future value

Constantly changing

Undefined Market

Happy with ...

Failure

Gambling & Gut Feel

Experimentation

Uncertainty

Methods ... Agile



Exploration


High Profitability

Maturing Products

Growing Market

Happy with ...


Market Analysis

Feedback

Trend Spotting

Methods ... Lean


Listening


High Volume


Mature Market

Happy with ...


Metric Driven

Analytics

Scientifc Modelling





Type ...


Type

Rare

Poorly Understood

ff



ff


Well Defined

C f

Deals with ...

Steals Steals



206/231

Genesis CustomBuilt

Product(+ rental)


Evolution


High Future value

Constantly changing

Undefined Market

Happy with ...

Failure

Gambling & Gut Feel

Experimentation

Uncertainty

Methods ... Agile



Exploration


High Profitability

Maturing Products

Growing Market

Happy with ...


Market Analysis

Feedback

Trend Spotting

Methods ... Lean


Listening


High Volume


Mature Market

Happy with ...


Metric Driven

Analytics

Scientifc Modelling





Type ...


Culture


207/231

1993


208/231

No Hierarchy!


Visible

Customer


BrandedContent



209/231

Genesis CustomBuilt

Product(+ rental)


Evolution

ValueChain

Invisible

CRM

Creative

Studios


InternetBroadcast

ArtisticDirection

ProductionTalent

ProductionSystems

MarketAnalysis

Web Site


Engine

WebServer

Compute

Power


Visible

Customer


BrandedContent



210/231

Genesis CustomBuilt

Product(+ rental)


Evolution

ValueChain

Invisible

CRM

Creative

Studios


InternetBroadcast

ArtisticDirection

ProductionTalent

ProductionSystems

MarketAnalysis

Web Site


Engine

WebServer

Compute

Power


Visible

Customer


Bra