Business strategy

A Guide to Building a Robust Product Proposition and Strategy: The Recipe to Your Own Secret Sauce

Business models, Business strategy, Platforms, Propositions, Value proposition /

It’s difficult to remain relevant in today’s fast-paced business environment. It’s even more difficult to remain competitive. To do so, having a robust product proposition and strategy is essential. To quote Roger Martin’s Playing to Win: strategy is about choices. And the choices we make can enable us to win. Building a robust strategy entail being able to make the right choices (for you, your client, and the broader ecosystem) at the right times. “A robust product strategy involves having a vigorous and strong plan that starts with a clear vision and can withstand the ever-changing business environment effectively.” But a robust strategy is also one that is also able to adjust or tweak certain aspects if the situation calls for change. How can you achieve this? We’ll fill you in on some basics that are a must for your product strategy. Stop talking and start listening… Understanding your customers. It is important to understand your customers’ needs, preferences, and pain points. By understanding your customer, you are better able to develop the necessary features and benefits within your product. You have to get out there and start talking to people. Start by defining your research goals and identify what objectives you want to reach. The next step is pinpointing the best methods to reach them; surveys, focus groups, data analysis, and so on. Where necessary, leverage your network to get additional reach. After you have collected insights, use this information to create fictional representations of your target customer’s demographics, behaviors, preferences, and challenges: persona’s. These will be used to inform your product strategy. But beware: assumptions are the mother of all screw-ups! Avoid making assumptions about your customer’s needs, behavior, or challenges, as this can be very costly. Making assumptions can put you at a competitive disadvantage because if you’re wrong, it doesn’t only make you look bad, you’re also back at square one. A good and easy-to-use method for this is 5x why, to drill down on the root cause of a problem. Keep asking your customer ‘why’ until you can narrow down the key focus area. In short, you have to really talk to your (end) customer first (and ask them: “why?” a million times) to really understand them.  Keep your friends close and your enemies closer… Understanding your competition. The next step is gaining a firm understanding of your competition, relevant trends in the industry, and customer behavior.  By gathering knowledge of the competitive landscape’s strengths and weaknesses, you can identify opportunities where your offering can fill the gaps in the market. A few tips and best practices for conducting a competitive analysis and developing a competitive strategy: Identify your direct and indirect competitors Use an ecosystem map (for example from Ecosystemizer) to capture the roles each competitor plays in the market and identify your position (more on this in future blogs!) Analyze your competitor’s offering (pricing, strengths, features, quality, value proposition, etc.) vis-à-vis your offering Uncover how your competitors reach their customers (and who their customers are) From here on out you have a more solid foundation for building your well-informed competitive strategy. Knowing your customers and the competitive landscape better allows you to find your ‘why’.   Have a North Star… Understand your why. Now, at first glance, finding your North Star might seem easy, but to be entirely honest, it is not a simple task. However, although finding that North Star might seem daunting, it is crucial to take the time to reflect on who you are and what you represent. This is the first foundational block to building a product strategy.   Don’t be afraid to think about your personal link to the product or company’s North Star; what makes you excited? What will get you out of bed in the morning? How can you link these aspects to building a unique proposition? At the end of the day, you, as an individual, need to stand behind your product and strategy. A few things that are important in this process include: Identifying your product’s strengths Identifying critical challenges that you may face in the future Identifying where to play (compete) And identifying how to play Having a compelling story to bring along your key stakeholders What do you need to bridge the gap between starting and winning Identify your secret sauce… Define your unique value proposition. So, by now you should know your customer, know what your competition is doing, and know why you do what you do. The last crucial element is creating a unique value proposition to differentiate from competitors in the market. Just like grandma’s secret recipes that are just so good, but you do not know how she does it, your organization needs its secret sauce. A secret sauce that is so good that your customers keep coming back to you and it is hard to be copied by your (direct) competition. Is it the way you leverage technology? Is it how you present your brand to leverage customer loyalty? Or is it because you gained a first-mover advantage, or your product is unique? Zeroing down on your secret sauce is crucial. The next step is linking your secret sauce to the pain points you have previously identified. Consider how your company can make life easier for your customer, and how you can truly delight (not just satisfy – delight!) them with your offering. A key aspect of this step is validating your unique value proposition. Does your offering delight your customers? What is it missing? What else does it need to make it a unique offering that resonates with your target customer? Iteration is crucial: approach your target, ask for feedback, revise, and repeat! Once you can align your unique offering and your client’s needs, go out and get them!  Go out and do it. The final step in building a robust product strategy is to get out there and start doing! At The Value Department, we strongly believe in “learn by doing”. Start talking to your (end) customers, start interviewing people, start doing research, and start asking questions. Why? Because the

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Unleash the power of WIN methodology to create value for your business!

Business models, Business strategy, Platforms, Technology /

Are you struggling to create value for your business? Are your outdated strategies falling flat? Then let us introduce you to the WIN methodology.  As seasoned experts in the field, we can tell you firsthand that the WIN methodology is a game-changer. By creating momentum and impact, applying ecosystem thinking, and enabling technology, you can take your business to new heights. But don’t just take our word for it. The benefits of the WIN methodology are clear. By analysing your ecosystem and identifying where value is created and how it flows, you can develop a strategy that improves the pains and gains for your business. And by contributing to a triple bottom line, you can ensure that your economic, social, and environmental goals are all met.  WIN stands for “Whatever Is Needed” and is centered around creating momentum and impact, applying ecosystem thinking, and enabling technology. It’s a dynamic approach that ensures your business is always on the cutting edge and delivering maximum value The WIN methodology cares for people, planet, and profit. It encourages businesses to manage economic, social, and environmental value added. This means you can make more money, while also making a positive impact on the world around you. It’s a win-win situation!  And technology is the final piece of the puzzle. By enabling solutions driven by technology, you can digitise processes, develop new products and services, and build new ventures and platforms. Our experience with big data, blockchain, APIs, robotics, and AI means we can apply the right technology to achieve the desired impact.  In short, The WIN methodology is a powerful tool for any business looking to create value and improve their impact. So if you’re ready to break free from the old ways and start creating real value for your business, it’s time to embrace the WIN methodology. Whatever is needed to succeed – we’ve got you covered. #WINmethodology #createvalue #businessgrowth #ecosystemthinking #sustainability #socialimpact #profit #digitaltransformation #innovation #technology #businessconsulting #letushelp

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Platform business models: facts and myths

Business models, Business strategy /

Let’s start with some easy facts: According to the European Commission, “1 million EU businesses are already selling goods and services via online platforms, and more than 50% of small and medium enterprises selling through online marketplaces sell cross-border”. This number is only expected to increase, disrupting more sectors each year. Out of Interbrand’s top 20 Best Global Brands in 2022, 13 function as platform businesses. A platform business is a matchmaker, facilitating a means of connection, often between demand-side and supply-side parties. Compare this to 10 years ago in 2012, when only 7 out of this list were platform businesses. For now, we’ll tell you a bit more about several myths surrounding platform business models, as not all these myths are true. Let’s bust some common myths:   #1: Platform business models are not just startups Platform business models are really nothing new. Take a look at eBay and Amazon, to name just two examples. Both are over 25 years old. Even before the founding of these companies, we had traditional marketplaces and shopping malls. These places similarly facilitate a connection between multiple parties. We have, however, begun to think differently about platform business models, and how we can leverage such a business model through technological industry disruption.     #2: Platform business models are not only small This myth could not be further from the truth. Some platforms are indeed small, but take a look at Airbnb, Facebook, Etsy and Paypal. These are only a handful of multi-million-dollar businesses that operate under a platform business model. Platform business models truly come in all shapes and sizes.   #3: Platform business models are not only digital businesses A platform business model isn’t synonymous to a digital business. Most of the time when people refer to platform business models, they refer to a digital business. However, bringing back previously mentioned examples, a traditional Saturday morning marketplace in your local village, or a shopping mall, are both places where buyers and sellers can come together and connect. Most platforms are digital but being digital is not a prerequisite to being a platform business.   #4: Platform business models do not only facilitate an interaction between two parties A platform business model can enable interactions between two or more sides. Think of Facebook, for example. Facebook offers its services to billions of users who interact with each other ‘for free’ (yes, it’s true: “if you’re not paying for the product, then you are the product” as quoted by Tristan Harris – but that’s another story). Facebook makes money by allowing third parties to advertise. This simple scenario illustrates that there can be more than two sides involved on a platform.   #5: Platform business models are not only American Booking.com and Adyen are Dutch. Alibaba and TikTok are Chinese. BlaBlaCar is French. Deliveroo is British. Fiverr is Israeli. And the list goes on and on!   One last undeniable truth… A (digital) platform strategy is extremely complex, and success doesn’t come easy. Not only do these platforms need to have a firm understanding of their industry, but they also need to consider the dynamic interactions of a multi-layered business ecosystem. A platform needs to continuously deliver added value to all parties involved (shareholders, consumers, producers and partners). If you don’t add value and stand out, you’ll get disintermediated. Want to know more about navigating a complex digital platform strategy? Get in touch!    

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Why it is important to measure the impact your business model has on the economy, the environment and people?

Business strategy, Sustainability /

There are various environmental, social and governance (ESG) standards, frameworks, ratings and rankers, when it comes to how sustainability is measured and achieved. Delving into these standards, including new standards from the European Union (EU), is hard work and time consuming. And conflicts with the reason why you as a company are seeking for this information and guidance.  Hopefully, you want more than just compliant.  You want to be a responsible business and position sustainable behavior at the heart of your business model. The myriad of ways sustainability performance is accounted doesn’t help. Yet standards alone have the capacity to drive consistent sustainability disclosure. Reporting that is in the public interest, and independent.   The EU has introduced a classification system, a “taxonomy”, of sustainable activities, with criteria for when they may be defined as sustainable. If your business activity is listed in the taxonomy and you fulfill all criteria, the associated revenue, capital expenditures and operational expenses with that activity are considered “EU taxonomy aligned”. From 1 January 2022,  all large or listed companies are required to report their EU taxonomy alignment, along with relevant non-financial information that helps investors, financiers or the public to assess your ESG performance.  In this regard, the EU defines all large companies as companies with more than 250 employees, and with more than 20 million euros total assets on the balance sheet or revenues of more than 40 million euros. Small and medium sized companies (SMEs) may report on a voluntary basis. But the proposal will extend the scope of sustainability reporting requirements to all companies (except listed micro-companies).  The aim of the EU of introducing a standard like the EU Taxonomy is to promote investments in sustainable activities. And the financial sector can play a key role in a transition to a sustainable world; because of the capital flows that run through the financial sector. Banks can contribute by taking sustainability criteria into account in credit decisions and offering customers sustainable products. In short, in the (near) future your non-financial information and ESG performance will play an essential role whether a bank will invest in your company or provide a loan. So, it’s time to act now! However, most small businesses don’t have the capacity or money to focus on sustainability or a sustainable strategy to reduce emissions. Consequently, the lack of access to finance will play a key preventing factor in their future operations. One can make the assumption the path to a sustainable future is much easier for a large corporate than for smaller SMEs. As access to capital markets is generally not at the disposal of the smaller companies that make about 90% of the businesses globally, providing half of all employment.  As capital is a key enabler of a sustainable supply chain, the supply chain participants – large corporates, banks and governments – need to collaborate. They can co-invest, provide liquidity, share knowledge on how to strategize sustainability, and pass on innovation and technologies across the supply chain. To create or modify incentives to persuade supply chain partners to behave in ways that are best for everybody. To make sure supply chains work well and its participants interests are aligned.  Techniques as receivable finance and Supply Chain Finance, in general, can play an important role in achieving what’s best for your company, your business model, your supply chain, and to what extent you’re ‘sustainable’.  Want to learn more about how that works? Call now to learn why our service is right for you, and let’s work together! Alternatively, maximize your toolkit with actionable insights on how regulatory changes, business strategies and innovative financing structures are evolving around the ESG issues. A lot of information can be found at BCR’s Receivables Finance ESG and Sustainability webinar; see the full program here: https://bcrpub.com/events/receivables-finance-esg-and-sustainability-webinar.

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