This blog shares thoughts and insights on seeing your business from the outside in, through customers, markets, and real commercial signals. It focuses on clearer priorities, better decisions, and sustainable growth.
Addressable, Obtainable and Active markets
January 4, 2023
The market activity has huge variation from one business sector to the next. In B2B some decisions are very long lasting, like investments to ERP, CRM, production facilities and real estate, production lines and machinery. They can also change the way a company operates: In case of outsourcing some functions the decision is done once and it is a big decision, but it continues as an ongoing retainer relationship. Customers in the active market represent only a fraction of obtainable or addressable markets.
Next Generation Intelligence - AI-augmented Double Diamond
January 4, 2023
In the past decade, the amount of data that companies have captured has exploded. The tools that companies are using are continuously generating more data. Data-related businesses delivering possibilities to leverage external data have also grown tremendously, and the new leap in making data actionable is about connecting internal and external data effectively and crafting intelligence from it with algorithms. The approach easily described with the Double Diamond Framework (figure below). It was popularized by the design community in the mid-2000s (Design Council, 2022). The idea builds on the works of Guilford (1956), who is generally attributed with making the distinction between divergent and convergent thinking. The innovation process consists of a sequence of steps where innovators first explore a wide range of problems and opportunities to then decide on adequate solutions (source). This same process has been used for the purpose of making a creative strategy by many, including Ogilvy. In this case, we are using it to make a strategic discovery for strategy design and for the deployment and management of change: There are five stages involved in applying this framework to AI. Stage 1 This stage involves aggregating the company's own data and relevant external data, which is about enablement of the analysis. The idea is to use unusually large bottom-up and outside-in dataset to lay the foundation, which will extend the double diamond AI-enabled insight and priority generation in the next stages. Stage 2 This stage uses algorithms to make sense of tens of millions of rows of raw data. From this, we disxover where the money comes from, which offering and segment-related dynamics are involved, and the insights and priorities can we recognize. Furthermore, it allows for the discovery of readiness drivers to adopt new offerings (market segmenting by addressable, obtainable and active markets), how customers map in to current and potential value segments, etc. In Stage 2, the primary goal is to discover what matters (the drivers of risks and opportunities) and where the money is. We need to get behind the KPIs to reveal dynamics and phenomena that drive change and results. Once recognized, we can measure and manage them. Stage 3 The third stage is about defining direction, vision, brand and narrative. It gives the foundation for strategic development programs and deployment planning. Strategy is a domain of management consideration and decision making. The usual use cases would be eg. creation of strategic segmentation, making portfolio analysis, and creation of strategy and implementation planning. Stage 4 This stage involves preparing for deployment, defining teams and team objectives, and deciding their key results. Each team has access to data that is relevant for their objectives. They have tools to make goals into key results, as well as the capability to analyze the underlying challenges and dynamics that they should concentrate on. The idea is that the objectives of the programs are firmly built on bottom-up data, which enable us to give tools and answers for planning. If we require strong growth, we need to give tools to meet them. 180ops has been built to give those answers. Stage 5 Learning and doing. Transparency and shared learning is imperative for continuous improvement and the cumulative development of competitive advantage. The markets and customers change continuously. 180opos monitors those changes and gives feedback for that an more, such as changes in customers willingness to buy or relationship- or offering-related risks. Adaptability to the changing environment is a must, and early signals about changes are imperative. That is why outside-in data has a vital role. Getting advice at the individual customer level supports sales very effectively. Creating unity between offering, marketing, sales and customer service bring the entire customer interface together. Offerings, customer segments and activities interconnect while transparency and feedback inspire, empower, and energize the organization. The goal is to drive cultural unity and purpose, winning as a team. The new discoveries and magic are available from combinations:
Book introduction: Path to Growth and Profitability
October 10, 2022
BACKGROUND Most business leaders can pinpoint problems causing inefficiencies that lead to underperforming or declining sales. Too often, however, they try to solve those problems on a bug-fix basis. But quick fixes create a false sense of accomplishment. The need to be busy and productive prevents us from taking a better look at the big picture and underlying challenges. The fundamental issues dragging performance down are not identified, and the correct core adjustments in strategy and perspective are not made.