assignment

Lesson 4: Deriving Insights from Organization Analysis

IBUS 718: Consulting & Organizational Development in the Multinational Corporation

Business Model Canvas Evolves

Source: Wikipedia

• 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

Leveraging Opportunity Depends on Penetration

Market Growth & Adoption Takes Time

Early Market

• Enthusiasts • Visionary executives

in large organizations

• Strategic competitive advantage

• Breakthrough technology or offering

• Custom project around core offering

Target Customer

Buying Motivation/ Value Proposition

Product Emphasis

Chasm • Old for Enthusiasts • “Passe” for

Visionaries • Incomplete solution

for Pragmatists.

• Create whole product

None

Bowling Alley

• Pragmatist dept. or BU manager or executive

• Fix broken business process

• Ease the pain quickly

• Repeatable whole product for specific market segment

Tornado

• Pragmatist commodity managers

• Keep up with competitors

• Deploy everywhere now!

• Mass market standard product

Main Street

• Dept. managers • Lead end-users • Purchasing agents

• Don’t fall too far behind competition

• Increase productivity • Better experience • Mass customized

whole product • Extensions

Mass market growth Grow horizontally into new channels, platforms, and geographies

The Tornado

Niche penetration Dominate first niche then go after adjacent niches

The Bowling Alley

Niche expansion Grow profitable revenue from installed base à new niches and mass customization

Main Street

The Early Market

Close deals !

First customers

Word-of-Mouth Leverage: • Same segment • New applications

Whole Product Leverage: • Same application • New segments

Seg 1

App 1

Seg 2

App 1

Seg 1

App 2

Seg 1

App 3

Seg 2

App 2

Seg 3

App 1

Bowling Alley Model

Leverage is the key!

Word-of-Mouth Leverage:Whole Product

Leverage: • Same application • New segments

Computing

SMT B2B

ADC

Interposer (P2B)

Computing • Same segment • New applications

ATE Interposer

(B2B)

Interposer (B2B)

Computing

LGA socket

Test Interposer

(P2B)

Interposers • We will win the business because we solve a big pain by providing

robust mechanical performance at small dimensions.

• This pain is very strong today in board-to-board attach, especially in the ATE & ADC markets (& the segmented test market)

• The pain is getting worse in the computing markets

Faster penetration (tactical)

Slower penetration (strategic)

TAM >$250M

ATE SMT B2B

Word-of-Mouth Leverage:

Whole Product Leverage: • Same application • New segments

• Same segment • New applications

Camera Attach • 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.

• This pain is very strong today in cell phones only • Camera module is an entrée into solving interconnect problems in

mobile applications

Slower penetration

Faster penetration (strategic à “own the phone”)

? Mobile

Embedded flex

FFC

?

Camera Mod. Sub.

Mobile

Digital cameras Camera

Mod. Sub.

Embedded contacts

Mobile

• We will win the follow-on business for FFC & embedded flex because we provide robust, mechanical performance at small dimensions and at a lower profile than any other solution.

• This pain is most strong in cell phones

Mobile TAM >$140M

FFC

Neoconix Product Options

Neoconix Financial Metrics

SAM

Revenue Per Design Win

Margin

Value Proposition

A: Provides modest enhancements

B: Adds substantial new value

C: Gives dramatic productivity gains

D: Changes the competitive field

A B C D

4

3

2

1

Gain

Pa in

Pain/Gain Analysis.

Major reengineering, new systems

Broad changes to existing systems

Local changes to existing systems

Integrates with existing systems

The Dead Zone

For decision-making managers in the target segment

Who have the following broken business process

Our product is a new product/service

That provides key problem solved.

Unlike competitors,

We have the whole product solution to help you solve your problem.

Positioning Statement Customer

Problem

Solution

Differentiation

Value Proposition

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

Pain/Gain Analysis

P2B Interposer Pain/Gain

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.

P2B Interposer Positioning Statement

Revenue Per Design Win

Camera Module Substrate Pain / Gain

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.

Camera Module Substrate Positioning Statement

Current drop-in is low pain, low gain. Difficult for Neoconix to break into entrenched space.

Next generation: Similar footprint, better force uniformity

FFC Connectors Pain / Gain

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

Pain/Gain Analysis

Opportunity Mapping

Key Criteria (5=agree to 1=disagree)

Description Seg 1 App 1

Seg 2 App 1

Seg 2 App 2

etc…

Accessible, well-funded target customer Visionary or pragmatist manager. Well funded organizations suffering competitive pressure.

Compelling reason to buy Strategic competitive advantage or broken mission- critical process causing dire consequences.

Feasible whole project/product Core product + complementary products & services deliverable within 60 days.

No entrenched competition No other projects or in-house systems, workarounds, point solutions, other whole-product vendors.

Good follow-on segment potential Another custom project or whole-product leverage or word-of-mouth leverage.

Total score Highest number is most compelling

• Assess Market Segments, Applications, Customers, etc.

Customer / Market Segment - Opportunity Mapping

Walmart Analysis

Individual Assignment

~1,000 word written report (plus charts & graphs)

Feb. 2, 2023

Discuss Walmart’s Globalization Strategy

• Where did the retailer struggle?

• Where did it do well?

• Can location characteristics explain the differences in Walmart performance?

• Are there general insights that can be 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.