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(-): PAIN
(+): DELIGHTDisruption Spot
Luxury Spot
Strategic Choice
Cost-Differentiation Map “Value Innovation”
Visually Describe, Analyze, and Manage Customer Experiences (in Space/Time)
Differentiation
Cost
Classic DIFFERENTIATION
Strategy
ClassicCOST LEADERSHIP
Strategy
Market Segment (Customer Goal): …………………………………………………………………….
GURUS
Classic “STUCK IN THE MIDDLE”
Strategy
KeyOMG-Experience:
Undesirable Experience:
Ideal Value Space(Ideal Market/Ideal Impossibility/Ideal Tool/Ideal Universe/New Market)
BLUE OCEANStrategy
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(-): PAIN
(+): DELIGHTDisruption Spot
Luxury Spot
Strategic Choice
Low-end Disruption(Disruptive Innovator: Low-end, Overserved
Customers; Low Margin;‘Good Enough’ Quality)
Cost(Adoption Barrier; Complexity; Inaccessibility; Delay)
Sustaining Innovation(Incumbent: High end,
‘20-80’ Customers;High Profit Margin)Performance
(Functionality;Quality)
Cost-Performance MapVisually Describe, Analyze, and Manage Customer Experiences (in Space/Time)
GURUS
Market Segment (Customer Goal): …………………………………………………………………….
KeyOMG-Experience:
Undesirable Experience:
Ideal Value Space(Ideal Market/Ideal Impossibility/Ideal Tool/Ideal Universe/New Market)
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(-): PAIN
(+): DELIGHTDisruption Spot
Luxury Spot
Strategic Choice
Cost-Profit Margin MapVisually Describe, Analyze, and Manage Business Experiences (in Space/Time)
Profit Margin(Market Growth Rate)
No. of Competitors(Level of Commoditization)
BLUE OCEAN
RED OCEAN(Overcrowded/Legacy System)
GURUS
Market Segment (Customer Goal): …………………………………………………………………….
KeyOMG-Experience:
Undesirable Experience:
Ideal Value Space(Ideal Market/Ideal Impossibility/Ideal Tool/Ideal Universe/New Market)
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(-): PAIN
(+): DELIGHTDisruption Spot
Luxury Spot
Strategic Choice
KeyOMG-Experience:
Undesirable Experience:
CUSTOMER EXPERIENCE MAP: TemplateWhere Currently Are We/Competitors? Where Must We Go? How Should We Get There?
GURUS
Market Segment (Customer Problem/Goal): ………………………………………………………
Ideal Value Space(Ideal Market/Ideal Impossibility/Ideal Tool/Ideal Universe/New Market)
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0 2 4 6 8 100
2
4
6
8
10
DELIGHT
PAIN
Customer Value Quotient (VEQ) = Weighted Delight/Weighted Pain = Utility Function= Slope of Customer Experience Curve
Copyright 2010. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
TRADE-OFF GRAPH: Generic
Visually Describe, Analyze, and Manage Customer Experiences & Trade-offs
Desirable Experience
Undesirable Experience
GURUS
Zero Trade-off(Ideal Tool/New Market Disruption/Singularity)
Market Segment (Customer Problem/Goal): ………………………………………………………………………..…
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0 2 4 6 8 100
2
4
6
8
10
DELIGHT( Differentiation; Quality)
PAIN(Cost)
Copyright 2010. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
Classic Competitive Strategies Graph
Visually Describe, Analyze, and Manage Customer Experiences & Trade-offs
CONVENTIONAL THINKING(“Higher quality, higher cost”)
“Stuck in the
Middle”
Classic Differentiation(“Short head”/
“20-80”/High Profit
Margin)Classic Cost Leadership
(“Long Tail”/Low Profit Margin)
Desirable Experience
Undesirable Experience
GURUS
Zero Trade-off(Ideal Tool/New Market Disruption/Singularity)
Market Segment (Customer Problem/Goal): Competitive Advantage
Customer Value Quotient (CVQ) = Weighted Delight/Weighted Pain = Utility Function= Slope of Customer Experience Curve