Asymmetric
demand is demand that is specific to the client’s context-of-use.
Intensifying competition for services that remain the same across different
demand contexts increases the business potential for targeting asymmetric
demand. Capturing this potential requires new forms of value proposition,
and new levels of agility in the supporting infrastructures involved in
their delivery. This not only involves taking power to the edge of
an existing organisation, but also disrupting its present ways of doing
business. Strategic leadership therefore depends on being able to
analyse and manage the demand-side risks of implementing new value propositions.
The following five workbooks
provide the means of developing the value propositions appropriate to asymmetric
forms of demand, defining the business models needed for their implementation,
and evaluating the demand-side risks that arise as a consequence.
Workbook 1:Leveraging
existing relationships.
How can the supplier have
a greater impact on a client’s existing ways of creating value? How does
a client’s value stairs organise its relationships with its suppliers?
The outputs are the value propositions for adding value to the client’s
business, their value to the supplying business, and the relationship development
that these opportunities require.
Action:
develop
new value propositions.
Workbook 2: Targeting
new forms of demand.
In what new ways can demand
be organised that will disrupt existing market organisation? What
can the impact of this value ladder be on clients’ businesses, and how
are the resulting opportunities to be targeted competitively? The
outputs are value propositions with quantified growth and revenue characteristics,
defined competitively within the context of a value ladder.
Action:
develop
new value propositions.
Workbook 3: micro-Segmentation.
What are the different ways
in which the value proposition must target the asymmetric demand competitively,
what are the targeting criteria for the resulting micro-segments, and how
do they relate to existing industry segments? The outputs are the distinct
forms of communication needed to target the micro-segments, and the targeting
characteristics and sales potential of the micro-Segments.
Action:
target new client relationships.
Workbook 4: Evaluating
capabilities.
A value proposition is a
promise to deliver value against the client’s selection criteria. How is
this value profile defined, and what are the critical capabilities and
competencies needed to deliver it? The outputs are the performance,
capability and competency gaps that must be closed in order to deliver
the value profile, and the ROI that arises through closing those gaps
Action:
create the performance accountabilities needed to deliver the value.
Workbook 5: Defining the
business model.
The business model needed
to compose the capabilities that support value propositions creates stratified
value. What component products, services and capabilities need to
be aligned across these strata, and how? The outputs are the attractiveness
of the downstream opportunity being targeted, the amounts of demand and
value being captured within the different strata, and the business inputs
that need benchmarking.
Action:
set up the business model.
Delivering agility
from the supporting infrastructures
The three types of
demand-side risk arise from flaws in the way value propositions target
asymmetric demand and bring supporting infrastructures to bear on that demand:
-
Interoperability risk
that a component service will not work as specified becomes an error of
execution the failure of a planned action to be completed as specified.
-
Orchestration risk that
the component services will not work together as a whole as expected becomes
an error of planning - the use of a wrong plan to achieve an aim.
-
Composition risk that
the proposition will not produce the effects expected becomes an error of
intention - the supplier adopting an aim that is unwanted by the user.
In order to create agility,
the granularity of each layer needs to be defined in such a way that the
strata can be composed as a whole to support the different forms of asymmetric
demand - by ‘granularity’ is meant the functional differentiation available
within any given layer. Thus supply-side dominance will seek to treat a
system of systems as a more complex form of level 3 system, uncoupling
supply-side from demand-side complexity. In contrast, demand-side dominance
will require greater supply-side granularity, and a different demand-side
commercial basis for providing agility.
The different types of risk
arise when gaps appear within and between the different strata – a ‘gap’
being a structural impediment to composition. ‘Split-screen analysis’ analyses
the supply-side organisation of complexity, relating the supporting infrastructures
to the variety of business models defined. The particular granularity
of the strata can then be derived and analysed for gaps and misalignment.
Split Screen Analysis:
Four types of model are
created defining how the demand-side business models emerging from the
workbook processes are supported by supply-side business infrastructures.
These are
(i) the supporting
process logics, their outputs and enabling infrastructures,
(ii) the formal organisation
governing the infrastructures;
(iii) the available data
views of the events and their outputs; and (iv) the synchronising processes
of communication and integration. The gaps and misalignments in the way
all these models fit together in relation to demand then define where there
is a lack of agility.
Action:
manage the agility and granularity of the supporting business infrastructures
to mitigate the risks.
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