Validation of Business Proposition: confirmation we are building the right business. The document discusses the 7 stages of establishing, growing, and maintaining a competitive advantage: 1. Establishing potential advantage by validating the business proposition and market opportunity. 2. Creating advantage by verifying the business model and securing early customers. 3. Proving advantage with paying customers, references, and market entry. 4. Protecting the advantage by securing growth, market share, and customer loyalty. 5. Leveraging assets and relationships to scale the business and extend its reach. 6. Continuous innovation to create and acquire new advantages through opportunity management and technology changes. The 7 stages provide a framework for developing,

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Stage 1 (Dynamic 1-7) Cells
“Potential Advantage”
 Validation of Business Proposition: confirmation we are building the right business
Cell  11 2 3 4 5 6 7 Dynamic
Stage 1 
Advantage Opportunity Solution Customer Market Team Governance Financial Advantage
Problem Definition Solution Definition Value proposition Market Definition Capability Plan Vision & Goals Resources Plan
Potential Nature of Problem Alternatives Definition Segment Profiles (Competence & Strategic intent Financial Plan
Validation
Goal:- Opportunity Desc. analysis Profile Sweet Spot Porters 5 Forces Capacity) Legal Structure Financial Goal:-
Establish real Who has problem? Benefits & Customer. Competitive Rivals Competence & Gap Shareholder Modelling. Confirmation a
advantage Consequences? Advantages Engage with Cust. New Entrants
Analysis Agreement Sources & markets exists for the
potential exists in Substitutes product/service.
Scale Supply chain Confirm Problem & Supplier Power Sources of Incorporation Types of
the market. Compelling need modelling. consequences Capability. Tax Compliance Funding
Buyer Power
Value chain Confirm Solution & Market Entry - Map to Role of board State Supports. Confirmation that
Confirm modelling. Advantages. Beach-Head advantages Feasibility there is a value
capability to Business Models Home Market decision proposition which can
create the advantage. deliver an ROI
advantage exists.
Confirmation the
Compelling need for Innovative Solution Potential customers Market Current & Required Promoters Expectation of
Compelling capability exists or can
a solution confirmed & Advantage confirm purchase confirmed Capacity & aligned & resources
advantage for be created to deliver
Defined criteria attractive Competence organised available
target customer. the ROI.
(
Advantage Problem Competitive Value Brand Competence Compliance Profit Advantage
Stage 1
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2. Stage 2 (Dynamic 1-7) Cells
“Create Advantage”
 Verification of Business Proposition: Confirmation we can build it right
Cell  11 2 3 4 5 6 7 Dynamic
Stage 2 
Advantage Opportunity Solution Customer Market Team Governance Financial Advantage
Define Prove the concept. Secure Alpha cust. Market entry Capability for entry Commercial & Business Plan
Creation success/resolution Characterise Alpha Program Plan in place operational & Model
Verification
Goal:- criteria solution. Deploy pilot soln. Lead gen Plan Promoter learning controls Initial funding Goal:-
Create & Validate Impact Analysis Produce design Confirm value Positioning & Make, Buy or Rent Advisors Finding and Verification the value
advantage is Root Cause Drivers spec. proposition Differentiation. Basic contracts Non execs & securing proposition can be
achievable and Solution Option Define delivery Refine Soln. Launch collateral. Key hires (T&C) board investment created and delivered.
visible to all benefits dashboard process advantage Naming/Brand Core Process &
stakeholders. Licenses/certs Pricing Model KPI’s Resourcing in place to
enter the market.
Nature of need & Confirmed solution Customer(s) confirm Market entry, Market entry Basic controls & Initial funding
solution value characteristics can advantage and value Adv., Plan & capability in place Compliance in in place
qualified be achieved proposition Collateral place
Advantage Problem Competitive Value Brand Competence Compliance Profit Advantage
Stage 2
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3. Stage 3 (Dynamic 1-7) Cells
“Proving Advantage”
 Confirmation with customers that scalable value exists
Cell  11 2 3 4 5 6 7 Dynamic
Stage 3 
Advantage Opportunity Solution Customer Market Team Governance Financial Advantage
Problem solved for Product Mgmt. Reference clients Integrated Policies Performance Planning &
Proving paying customers. Solution Mgmt. Sales process Marketing Plan. Structure for management. Controls
Confirmation
Goal:- Customer need Release mgmt. Qualification Marketing List & growth. Leadership & Drivers, Goal:-
Confirming variances Service & Support. Beach-head pipeline Pipe. Roles & Resp. Management Budgets Confirm a viable &
advantage with Total Customer Pricing S & M perf. Motivation Founder roles Forecasts scalable business.
wins and experience Model validation Metrics Retention & Lock in MBO & KPI’s Accounts Foundations and
references. compliance in place.
First customer value Product & Customer Reference Customers & Market Leading & Leading & MIS & Controls
at all touch points experience & Mgmt. Managed Pipeline engagement & Engaging staff Managing Market entered (Beta)
Lead Gen performance
Advantage Problem Competitive Value Brand Competence Compliance Profit Advantage
Stage 3
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4. Stage 4 (Dynamic 1-7) Cells
“Protecting Advantage”
 Securing growth, share & loyalty
Cell  11 2 3 4 5 6 7 Dynamic
Stage 4 
Advantage Opportunity Solution Customer Market Team Governance Financial Advantage
Residual & Related Scaling scenarios CRM Brand Protection, Fiefdoms & ivory Review progress Funding to
Protecting Problems identified Life Cycle Total customer Value, towers & vision. scale
Securing
Goal:- & Quantified. Management engagement& Relationship Individual v Team Value realisation Goal:-
Securing Physical, Geographic , Competing & Experience Career Mgmt. alignment. Customer base,
Virtual, Application, Competitive Starting to scale Perf. Plan & Mgmt. ROI Plan ownership &
commercial & delivery use cases behaviour Poor performers Satisfaction.
Legal advantage.
Securing bond Shareholder Securing Contract and Cultural
Additional areas for Securing Value & Growing Customer base Brand Value
and consensus of capital to scale
value creation competitive and reputation management stakeholder
Advantage performance realizing value engagement.
Advantage Problem Competitive Value Brand Competence Compliance Profit Advantage
Stage 4
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5. Stage 5 (Dynamic 1-7) Cells
“Leveraging Advantage”
 Scaling the Business leveraging assets to extend reach
Cell  11 2 3 4 5 6 7 Dynamic
Stage 5 
Advantage Opportunity Solution Customer Market Team Governance Financial Advantage
Advantage analysis Leveraging, Leveraging Cust. Brand leveraging Culture Strategic Growth Managing cash
Leveraging Problem & competence, Relationship. Brand extension Create Strategy & Plan assets
Scaling
Goal:- opportunity re technology, Reference & New Brand value Collaboration Inorganic Growth Treasury Goal:-
New uses for statement process Affiliation Brand Integration Collaboration drivers Foreign Extracting value from
current and Solution advantage Structuring to serve Platforms M & A, JV, Exchange current assets.
emerging sourcing & leverage cust. Release Talent Investment, Tax mgmt.
advantage - Complementary e-business model Partnerships. Investment Extending Reach &
extending solns. Process for cases Value to current &
inorganic activity New customers
Potential & Creation Application Creating & leveraging Leveraging Productivity, Strategic growth Cash &
for new opps/probs Innovation customer intimacy. Brand & Quality, business case Profitability
extensions Satisfaction. Mgmt.
Advantage Problem Competitive Value Brand Competence Compliance Profit Advantage
Stage 5
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6. Stage 6 (Dynamic 1-7) Cells
“Changing Advantage”
 Continuous Innovation - Continuous entrepreneurial growth
Cell  11 2 3 4 5 6 7 Dynamic
Stage 6 
Advantage Opportunity Solution Customer Market Team Governance Financial Advantage
Reactive & Technology New value for and Current & New Change mgmt. Stakeholder Understanding
Changing Proactive Innovation from current cust. market entry Change process engagement in Value.
Innovation
Goal:- advantage mgmt. Game changer New value for New plan. People, Teams & change. Commercial & Goal:-
Creating &/or Diversification Market Changer customers. Social monitoring Change Mandates. Non- Intelligent Opportunity
acquiring new opportunity mgmt. Solution changer and engagement Restructuring Focus on KPI’s commercial management.
advantage New or Changed New solutions for Org. development Measuring
opportunity current or new Culture of change Value Releasing Talent
statements. markets Co. Valuation
Harnessing & Engaging
in environment.
Social Enabling Successful Connect change
Emerging problems Innovative new New advantage = Continuous
and opportunities solutions with New value for growth monitoring continuous change Diversification and investment entrepreneurial growth
relevant to strategy partners enabled entry & success Strategy with value
Advantage Problem Competitive Value Brand Competence Compliance Profit Advantage
Stage 6
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