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Strategy is the most central issue in management. It has to do
with defining the purpose of an organization, understanding the
market in which it operates and the capabilities the firm
possesses, and putting together a winning plan. There are many
influential frameworks to help managers undertake a systematic
reflection on this issue. The most dominant approaches are Michael
Porter's "Competitive Strategy" and the "Resource-Based View of the
Firm," popularized by Gary Hamel and C.K. Prahalad. Arnoldo Hax
argues there are fundamental drawbacks in the underlying hypotheses
of these approaches in that they define strategy as a way to
achieve sustainable competitive advantage. This line of thinking
could be extremely dangerous because it puts the competitor at the
center and therefore anchors you in the past, establishes success
as a way of beating your competitors, and this obsession often
leads toward imitation and congruency. The result is
commoditization - which is the worst outcome that could possibly
happen to a business.
The Delta Model is an extremely innovative view of strategy. It
abandons all of these assumptions and instead puts the customer at
the center. By doing that it allows us to be truly creative,
separating ourselves from the herd in pursuit of a unique and
differentiated customer value proposition. Many years of intense
research at MIT, supported by an extensive consulting practice,
have resulted in development of powerful new concepts and practical
tools to guide organizational leaders into a completely different
way of looking at strategy, including a new way of doing customer
segmentation and examining the competencies of the firm, with an
emphasis on using the extended enterprise as a primary way of
serving the customer. This last concept means that we cannot play
the game alone; that we need to establish a network among
suppliers, the firm, the customers, and complementors - firms that
are in the business of developing products and services that
enhance our own offering to the customer. Illustrated through
dozens of examples, and discussion of application to small and
medium-sized businesses and not-for-profits, the Delta Model will
help readers in all types of organizations break out of old
patterns of behavior and achieve strategic flexibility -- an
especially timely talent during times of crisis, intense
competition, and rapid change.
Strategy is the most central issue in management. It has to do with
defining the purpose of an organization, understanding the market
in which it operates and the capabilities the firm possesses, and
putting together a winning plan. There are many influential
frameworks to help managers undertake a systematic reflection on
this issue. The most dominant approaches are Michael Porter's
"Competitive Strategy" and the "Resource-Based View of the Firm,"
popularized by Gary Hamel and C.K. Prahalad. Arnoldo Hax argues
there are fundamental drawbacks in the underlying hypotheses of
these approaches in that they define strategy as a way to achieve
sustainable competitive advantage. This line of thinking could be
extremely dangerous because it puts the competitor at the center
and therefore anchors you in the past, establishes success as a way
of beating your competitors, and this obsession often leads toward
imitation and congruency. The result is commoditization - which is
the worst outcome that could possibly happen to a business. The
Delta Model is an extremely innovative view of strategy. It
abandons all of these assumptions and instead puts the customer at
the center. By doing that it allows us to be truly creative,
separating ourselves from the herd in pursuit of a unique and
differentiated customer value proposition. Many years of intense
research at MIT, supported by an extensive consulting practice,
have resulted in development of powerful new concepts and practical
tools to guide organizational leaders into a completely different
way of looking at strategy, including a new way of doing customer
segmentation and examining the competencies of the firm, with an
emphasis on using the extended enterprise as a primary way of
serving the customer. This last concept means that we cannot play
the game alone; that we need to establish a network among
suppliers, the firm, the customers, and complementors - firms that
are in the business of developing products and services that
enhance our own offering to the customer. Illustrated through
dozens of examples, and discussion of application to small and
medium-sized businesses and not-for-profits, the Delta Model will
help readers in all types of organizations break out of old
patterns of behavior and achieve strategic flexibility -- an
especially timely talent during times of crisis, intense
competition, and rapid change.
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