• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
Value Innovation Tab 4
 

Value Innovation Tab 4

on

  • 555 views

 

Statistics

Views

Total Views
555
Views on SlideShare
555
Embed Views
0

Actions

Likes
0
Downloads
0
Comments
0

0 Embeds 0

No embeds

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    Value Innovation Tab 4 Value Innovation Tab 4 Presentation Transcript

    • Value Chains and Value Webs
    • What is a Value Chain or a Value Web? It identifies each company/entity that is involved in a buying/selling/using transaction between the original provider or manufacturer and the end user Why is understanding the Value Chain or Web important? Because we need to understand who the Most Important Customer is in the Value Chain For many B2B’s it’s not their direct customer Copyright Value Innovations, Inc. 2004-© Value Innovations, Inc., 2004-2012. All rights reserved. 2012. All rights reserved
    • North America Europe Manufacturer of Manufacturer of automotive parts automotive parts Distributor DistributorWho is the MostImportantCustomer in these Jobbervalue chains? Auto dealer or Auto dealer or Repair Shop Repair Shop Consumer Consumer B2B Copyright Value Innovations, Inc. 2004- © Value Innovations, Inc., 2004-2012. All rights reserved. 2012. All rights reserved
    • Questions to identify the Most Important Customer (MIC) 1. If there’s a problem or issue with your offering, who is responsible for taking the action required to rectify the situation? 2. Who stands to lose the most financially if there’s a problem or issue with your offering? 3. Who is the most likely to recognize the value provided by your offering? Copyright Value Innovations, Inc. 2004-© Value Innovations, Inc., 2004-2012. All rights reserved. 2012. All rights reserved
    • Questions to identify the Most Important Customer (MIC) 1. If there is a problem or issue with your offering, who is responsible for taking the action required to rectify the situation? 2. Who stands to lose the most financially if there is a problem or issue with your offering? 3. Who is the most likely to recognize the value provided by your offering?© Value Innovations, Inc., 2004-2012. All rights reserved.
    • The 3 Question Template – Identify the MIC Who has to fix Who stands to Who sees the the problem? lose financially? Value?DistributorJobberAuto Dealer X X XRepair Shop X X XConsumer Copyright Value Innovations, Inc. 2004-© Value Innovations, Inc., 2004-2012. All rights reserved. 2012. All rights reserved
    • North America Europe Manufacturer of Manufacturer of automotive parts automotive parts Distributor DistributorMost important Jobbercustomer in thisvalue chain Auto dealer or Auto dealer or Repair Shop Repair Shop Consumer Consumer B2B Copyright Value Innovations, Inc. 2004- © Value Innovations, Inc., 2004-2012. All rights reserved. 2012. All rights reserved
    • Why is this important?  The manufacturer sells to a small group of distributors (<20).  The most important customer is the Repair Shop owner and the mechanic. ……They live with the problems, NOT the distributor. ……There are >300,000 auto repair shops.  If all you do is focus on the distributor, you are probably not delivering exceptional value to the Auto Repair Shop Copyright Value Innovations, Inc. 2004-© Value Innovations, Inc., 2004-2012. All rights reserved. 2012. All rights reserved
    • What keeps a Repair Shop Owner awake at night?  Belts and hoses? NO!  Where do I find trained mechanics?  How do I keep my trained mechanics?  How do I make sure we handle our customers courteously?  How do I follow up with my customers? Copyright Value Innovations, Inc. 2004-© Value Innovations, Inc., 2004-2012. All rights reserved. 2012. All rights reserved
    • Value WebCopyright Value Innovations, Inc. 2004- 2012. All rights reserved
    • Pharmaceutical Samples Nina Goodrich, Alcan Pharma PackagingWho is the MostImportantCustomer in thevalue web? B2B & B2C Copyright Value Innovations, Inc. 2004- © Value Innovations, Inc., 2004-2012. All rights reserved. 2012. All rights reserved
    • Pharmaceutical Samples Nina Goodrich, Alcan Pharma Packaging Challenge Patient taking the right drug at the right time Most Important Customer The Patient Key Influencers Prescribing Physician B2B & B2C Pharmacist Pharmaceutical Company Copyright Value Innovations, Inc. 2004-© Value Innovations, Inc., 2004-2012. All rights reserved. 2012. All rights reserved
    • When do you use Value Webs? When Regulatory Bodies affect what you do, e.g., FDA FAA NTSB OSHA, etc Some Examples Healthcare Pharmaceuticals Chemicals in the Environment Copyright Value Innovations, Inc. 2004-© Value Innovations, Inc., 2004-2012. All rights reserved. 2012. All rights reserved
    • The Most Significant Key Influencers Knee Replacement Surgery Value Web The Most Important Customer Innovations, Inc. 2004- Copyright Value 2012. All rights reserved© Value Innovations, Inc., 2004-2012. All rights reserved. in India
    • Fibers used in Vehicle Armament Manufacturer of Fibers Fabricator Component Manufacturer Vehicle Manufacturer Most important customer in this Military value chain? Soldier Copyright Value Innovations, Inc. 2004-© Value Innovations, Inc., 2004-2012. All rights reserved. 2012. All rights reserved
    • Fibers used in Vehicle Armament The 3 Question Template – Identify the MIC Who has to fix Who stands to Who sees the the problem? lose financially? Value?FabricatorComponentMfrVehicle Mfr XUS Military X X XSoldier X X Copyright Value Innovations, Inc. 2004-© Value Innovations, Inc., 2004-2012. All rights reserved. 2012. All rights reserved
    • The 3 Question Template – Identify the MIC Who has to fix Who stands to Who sees the the problem? lose financially? Value?First StepaSecond StepThird StepFourth StepFifth Step a. Step in the Value Chain© Value Innovations, Inc., 2004-2012. All rights reserved.
    • Fibers used in Vehicle Armament Manufacturer of Fibers Fabricator Component Manufacturer Vehicle ManufacturerMost important Militarycustomer in thisvalue chain? Soldier Copyright Value Innovations, Inc. 2004-© Value Innovations, Inc., 2004-2012. All rights reserved. 2012. All rights reserved
    • Fibers used in Vehicle Armament  The manufacturer produces the “best performing” fiber in the market…4X better  But all products meet existing MIL specs.  The fabricator purchases the lowest priced fiber that meets MIL specs… …providing the best protection for the US military is not on their radar screen Copyright Value Innovations, Inc. 2004-© Value Innovations, Inc., 2004-2012. All rights reserved. 2012. All rights reserved
    • Fibers used in Vehicle Armament Solution:  The manufacturer meet with the US Military share… “we have a fiber which is 4X better but costs more”  At that meeting, they propose to set up a meeting with the military, the Fabricator and the Value Innovation Team …the message …we want you to use this fiber …cost is a NON ISSUE …protecting our men and women is THE ISSUE. Copyright Value Innovations, Inc. 2004-© Value Innovations, Inc., 2004-2012. All rights reserved. 2012. All rights reserved
    • Fibers used in Vehicle Armament Key Learnings: The manufacturer must interface with the MIC in order to play in this market. Continuing to work with the Fabricators is wasted time ……the MIL Specs have to be changed or ……the Mfr must lower its price Copyright Value Innovations, Inc. 2004-© Value Innovations, Inc., 2004-2012. All rights reserved. 2012. All rights reserved
    • B2B Copyright Value Innovations, Inc. 2004-© Value Innovations, Inc., 2004-2012. All rights reserved. 2012. All rights reserved
    • B2B Copyright Value Innovations, Inc. 2004-© Value Innovations, Inc., 2004-2012. All rights reserved. 2012. All rights reserved
    • Thermo King Value Chain - Trucks Parts and Component Manufacturers Thermo King Insurance Dealer/Installer Truck Fleet Operator Truck Owner Truck Driver Purchasing Operations B2B Agent Copyright Value Innovations, Inc. 2004-© Value Innovations, Inc., 2004-2012. All rights reserved. 2012. All rights reserved
    • The 3 Question Template – Identify the MIC Who has to fix Who stands to Who sees the the problem? lose financially? Value?Insurance XDealer XTruck FleetOperator Purchasing Operations X X Driver X XTruck Owner X X X B2B Copyright Value Innovations, Inc. 2004-© Value Innovations, Inc., 2004-2012. All rights reserved. 2012. All rights reserved
    • Designed with inputs from Fleet Ops and Truck Drivers to address: • Fuel Costs • Operating Costs • Driver turnover Copyright Value Innovations, Inc. 2004-© Value Innovations, Inc., 2004-2012. All rights reserved. 2012. All rights reserved
    • 26 Languages Touch Screen 500 Temp settings Reduced fuel consumption 4 Year Warranty Copyright Value Innovations, Inc. 2004-© Value Innovations, Inc., 2004-2012. All rights reserved. 2012. All rights reserved
    • Contextual Interviewing – 3Q, 2006 Line announced – July 15, 2008 Product shipped – Sept, 2008 Copyright Value Innovations, Inc. 2004-© Value Innovations, Inc., 2004-2012. All rights reserved. 2012. All rights reserved
    • The 3 Question Template – Identify the MIC Is it always clear who the MIC is? No, there are very few cases where you’ll have 3Xs for one just level in the Value Chain or Value Web You will always have 2Xs for a level in the Value Chain or Value Web If it’s not clear, you have 2 MICs, assume both levels are MICs and interview both in Step 4. It will become clear at that point who the MIC is Copyright Value Innovations, Inc. 2004-© Value Innovations, Inc., 2004-2012. All rights reserved. 2012. All rights reserved
    • The 3 Question Template – Identify the MIC What do you do when the MIC is a large organization, e.g., Mass Merchant or Supermarket?  You identify the MIC within the MIC using the 3 Questions and the 3 Question Template  The process is exactly the same  If you identify purchasing as the MIC, try again! Copyright Value Innovations, Inc. 2004-© Value Innovations, Inc., 2004-2012. All rights reserved. 2012. All rights reserved