1. E D G E S T R AT E G Y
A N E W M I N D S E T F O R P R O F I TA B L E G R O W T H - A L A N L E W I S & D A N M C K O N E
2. PA RT I :
T H E E D G E F R A M E W O R K &
M I N D S E T
3. E D G E S T R AT E G Y D E F I N I T I O N
• Outer rim or edge that frames what you do and separates it from what
you don’t
• The edge of your business is the delineation of where your current
offering begins and ends
Y O U R C O R E
O F F E R I N G
N E W O F F E R I N G S
E D G E O F Y O U R B U S I N E S S
4. E D G E S T R AT E G Y D E F I N I T I O N
• Aimed at harvesting more value from existing assets enabling them
trends to require a relatively lower level of capital outlay, that is, less new
money at risk
• A calibration story that does not involve stepping out into a new space
that is not well understood
5. 3 T Y P E S O F B U S I N E S S E C O T O N E S
1. The nature of the customer relationship
2. Definition of a product
3. Use of assets themselves (tangible and intangible that collectively define
a business)
• The edge of your business is rarely a sharp perimeter but a rather a nexus
of opportunity
6. F U N C T I O N A L A S S E T S
• Your enterprise is built on an
unique set of foundational
assets to deliver your core
offering
R E A L E S TAT E
E Q U I P M E N T
T E C H N O L O G Y
D ATA
P E O P L E
C U LT U R E
Y O U R C O R E
O F F E R I N G
7. F I N D A N E D G E O P P O R T U N I T Y
• What do our different types of customers want (or need)?
• What could or should our solution include?
• Which of our assets would others value and why?
1. E D G E O F T H E P R O D U C T
2. E D G E O F T H E J O U R N E Y
3. E D G E O F T H E E N T E R P R I S E
8. – S T E V E J O B S ( A P P L E )
“Our belief was that if we kept putting great products in front of
customers, they would continue to open their wallets.”
1 . E D G E O F T H E P R O D U C T
9. P R O D U C T E D G E S
• Arise when a product or service is imperfectly calibrated with some
consumers’ needs
• An opportunity exists to provide either more or less to certain
customer segments in order to better satisfy their overall requirements
• Ie: Add-on accessories, complementary services, options to extend,
enhance or modify a base offer
1 . E D G E O F T H E P R O D U C T
10. P R O D U C T E D G E S
• Your core strategy aims to align your commercial offering with your
customers’ set of needs. The result of these misalignments is an
opportunity for product edge strategies
Y O U R C O R E
O F F E R I N G
C U S T O M E R
P E R M I S S I O N
S E T
1 . E D G E O F T H E P R O D U C T
11. I D E A L P R O D U C T E D G E
Y O U R C O R E
O F F E R I N G +
C U S T O M E R
P E R M I S S I O N S E T
• You are fully meeting customers’ needs when the perimeter of your
core offering eclipses the perimeter of where customers see value and
therefore give you permission to serve
1 . E D G E O F T H E P R O D U C T1 . E D G E O F T H E P R O D U C T
12. O U T S I D E E D G E
• Product edge opportunities exist when the perimeter of your core
offering does not fully align with the permission set of your customers.
This is an opportunity to upsell
C U S T O M E R
P E R M I S S I O N S E T
Y O U R C O R E
O F F E R I N G
O U T S I D E E D G E
1 . E D G E O F T H E P R O D U C T
13. O U T S I D E E D G E C R I T E R I A
• The add-on product is sold a la carte
• The incremental effort is low
• The leverage comes from foundational assets
• The ROI is substantial
1 . E D G E O F T H E P R O D U C T
14. I N S I D E E D G E
• When some customers do not universally value some elements of the
core offering, you can find opportunities on the inside edge of a
product
C U S T O M E R
P E R M I S S I O N S E T
Y O U R C O R E
O F F E R I N G
I N S I D E E D G E
1 . E D G E O F T H E P R O D U C T
15. I N S I D E E D G E C R I T E R I A
• Unbundling the Product: You take an element of your offering that all
customers do not value and parse it out as a separate option for an
incremental charge. The most typical form is disassembly where the core
offer is fundamentally broken down from a single offer into a new set of
separate offers. Ie: iTunes
• De-contenting "When Less is More”: Redefine the minimum standard
product by shrinking or de-contenting it for everyone such as doing less.
Some of the cost savings is shared in the form of a price reduction. Ie:
Self-Service
1 . E D G E O F T H E P R O D U C T
16. – J O H N M A C K E Y ( W H O L E F O O D S )
“We’re more than just a grocery store; we’re a restaurant
and a premium brand.”
2 . E D G E O F T H E J O U R N E Y
17. J O U R N E Y E D G E S
• Recasts the nature of a company’s relationship with the customer in a
way that better maps to the customers' ultimate objective
• Customers = Being on journeys or missions to do or accomplish
something
• Opportunities in which companies redefine their participation in the
customers' journey and expand their solution to encompass needs
that either immediately proceed or follow the core transaction
• Ie: When X buys a TV, his journey doesn’t end when he paid for it
2 . E D G E O F T H E J O U R N E Y
18. J O U R N E Y A N A L O G Y
• A journey often starts before a company actually sees the customer and
tends to continue well after they have transacted
• Customers view products as simply playing a role in a larger effort that
involves other steps to achieve their mission or an end that is much
bigger to them than the actual transaction
2 . E D G E O F T H E J O U R N E Y
19. B E N E F I T S O F F I N D I N G J O U R N E Y S
• Expand solutions
• Encompass needs that immediately precede or follow the core
transaction
• Find journey edges by asking: What mission is my customer ultimately
hoping to accomplish with my product and would he or she give me
permission to help toward this end?
2 . E D G E O F T H E J O U R N E Y2 . E D G E O F T H E J O U R N E Y
20. C U S T O M E R M I S S I O N S PA C E
• The customer mission space represents a broader objective for which
your product is merely a stepping-stone.
Y O U R C O R E
O F F E R I N G
C U S T O M E R
P E R M I S S I O N S E T
C U S T O M E R
M I S S I O N S PA C E
2 . E D G E O F T H E J O U R N E Y2 . E D G E O F T H E J O U R N E Y
21. T H E J O U R N E Y E D G E
• Journey edges go a step further, challenging the premise that any variant
of your product is adequate. Acknowledging a broader customer journey,
a company redefines and expands both its offering and the edge of the
customer’s permission set
Y O U R C O R E
O F F E R I N G
C U S T O M E R
P E R M I S S I O N S E T
C U S T O M E R
M I S S I O N S PA C E
2 . E D G E O F T H E J O U R N E Y2 . E D G E O F T H E J O U R N E Y
22. D I S C O V E RY O F J O U R N E Y E D G E S
• Step 1: Customer Segmentation - Create manageable customer segments
• Step 2: Mission Definition - Articulate the mission each customer segment
seeks and what they really want
• Step 3: Journey Mapping - Work backwards from the missions to map out
in detail the journey that each customer segment takes to reach them
• Step 4: Permission Testing - Determine where customers would give you
permission to do more by dialoguing with them and asking questions
2 . E D G E O F T H E J O U R N E Y2 . E D G E O F T H E J O U R N E Y
24. E N T E R P R I S E E D G E S
• Explore foundational assets in ways that were not foreseen when they
were developed to support the core business
• Somewhere in the the stack of these assets, inadvertent value could
be buried
3 . E D G E O F T H E E N T E R P R I S E
25. E N T E R P R I S E E D G E
• Viewing your business from the vantage point of a complete outsider
• Requires little incremental investment
• Unlocking latent potential at the edge of the enterprise serves a new
customer permission set in a way that doesn’t interfere with the core
business
3 . E D G E O F T H E E N T E R P R I S E
26. E N T E R P R I S E E D G E
• Enterprise edge opportunities exist
when you explore how your company’s
edge extends across its foundational
assets R E A L E S TAT E
E Q U I P M E N T
T E C H N O L O G Y
D ATA
P E O P L E
C U LT U R E
Y O U R C O R E O F F E R I N G
T H E E D G E O F
Y O U R E N T E R P R I S E
3 . E D G E O F T H E E N T E R P R I S E
27. E N T E R P R I S E E D G E
• When you can recognize how one of your foundational assets can readily
fulfill the needs of a new customer, you create enterprise edge opportunities
R E A L E S TAT E
E Q U I P M E N T
T E C H N O L O G Y
D ATA
P E O P L E
C U LT U R E
Y O U R C O R E O F F E R I N G
R E A L E S TAT E
E Q U I P M E N T
T E C H N O L O G Y
D ATA
N E W D ATA O F F E R I N G
N E W C U S T O M E R
P E R M I S S I O N S E T
3 . E D G E O F T H E E N T E R P R I S E
28. E N T E R P R I S E E D G E O P P O R T U N I T I E S F O R M S
A. Monetizing by-products
B. Unlocking latent capacity
C. Exploiting unconstrained or intangible assets
3 . E D G E O F T H E E N T E R P R I S E
29. A . M O N E T I Z I N G B Y- P R O D U C T S
• Finding new ways to harvest the full value of your output, too can
monetize by-products
• Data could leverage the foundational asset elsewhere without significant
new investment by reducing R&D, shorten go-to-market timelines and
maintain quality and compliance
• Can generate incremental cash flow without affecting its core business
3 . E D G E O F T H E E N T E R P R I S E
30. B . U N L O C K I N G L AT E N T C A PA C I T Y
• Finding creative means to release any of the resources or capabilities in
your stack of foundational assets unlocks latent capacity; monetizing
spare capacity
• Recognized ways to create incremental revenue streams by renting out
spare capacity that would have otherwise gone unused
3 . E D G E O F T H E E N T E R P R I S E
31. C . E X P L O I T I N G U N C O N S T R A I N E D O R I N TA N G I B L E
A S S E T S
• Most expansive form. Ie: Know-how or digital infrastructure
• Enterprise has developed an asset that is so easily scalable that a
company can leverage it elsewhere in a way that is unlimited and yet still
has little or no effect on the core
3 . E D G E O F T H E E N T E R P R I S E
32. PA RT I I :
W H E R E T O U N L O C K VA L U E
34. U P S E L L I N G
• Upselling happens after you made a selection. It introduces a new value
proposition allowing you to add on or customize once you are already
psychologically committed to the base purchase
• Adds on to the core purchase. They are all charges that occur at or
around the core purchase, but they are elected as separately priced
options. It should leverage a set of existing foundational assets
• It is almost easier to drive more revenue from those who already trust
your brand and your value proposition than to acquire new customers
from scratch
1 . E F F E C T I V E U P S E L L I N G
35. E D G E U P S E L L I N G
Y O U R C O R E
O F F E R I N G
N E W F E AT U R E S A N D
E N H A N C E M E N T S
O P T I O N A : A D D T O
C O R E O F F E R I N G
O P T I O N B : A P P E N D
A S U P S E L L O P T I O N S
T RY T O G A I N A P R I C E
P R E M I U M O R C A P T U R E
I N C R E M E N TA L S H A R E
• M A I N TA I N C O R E VA L U E P R O P O S I T I O N
• C A P T U R E I N C R E M E N TA L R E V E N U E F O R
U P S E L L O P T I O N S
• R I S K T H AT B E N E F I T I S T E M P O R A RY
• C O M P E T I T I V E R E S P O N S E C A N E R O D E G A I N S
• E X PA N D S T O TA L R E V E N U E
• S U S TA I N A B L E E V E N W I T H C O M P E T I T I V E M AT C H
1 . E F F E C T I V E U P S E L L I N G
36. U P S E L L I N G T H E C U S T O M E R
1. Focus on the choice before the charge: where do some of my
customers want to choose a different level of service?
2. Most customers really do want more: Even when included, some people
want more.
1 . E F F E C T I V E U P S E L L I N G
37. E D G E - B A S E D U P S E L L I N G
Removing the hassle
associated with
transaction
Ie: Hertz with the Fuel
Purchase Option
Extending greater levels
of ease or relaxation as
customers enjoy your
product
Ie: Jet Blue, seats with
more legroom
Alleviating pain points
that customers
experience coincident
with the delivery of your
product or service
Ie: Caller ID (3rd party)
C O N V E N I E N C E C O M F O R T R E L I E F
1 . E F F E C T I V E U P S E L L I N G
38. E D G E - B A S E D U P S E L L I N G
Ameliorating the anxiety
that often accompanies a
big-ticket purchase
Ie: BMW, protection plans
at point of sale
Creating options that
expand the experience
for those customers who
are the biggest fans of a
brand or product
Ie: Cirque du Soir, VIP
Package
Providing education,
training, or simply
situational awareness
around the core offering
Ie: Apple, Genius Bar pr
Unlimited “One to One"
P E A C E O F M I N D PA S S I O N K N O W L E D G E
1 . E F F E C T I V E U P S E L L I N G
39. 2 . D E A L I N G W I T H M A R G I N
P R E S S U R E
40. M A N A G I N G U N P R O F I TA B L E C U S T O M E R S
• Innovating to improve margins is the hallmark of true market leaders.
Applying an edge mindset for combining margin pressure means
recognizing that you have unprofitable customers and targeting them
accordingly
1. Identifying the parts of the core offering that customers do not
universally appreciate.
2. Selectively unbundle these elements so that they are no longer
standard across the entire customer base
3. Charge for these marginal elements a la carte
• Different accounts will end up generating very different levels of profitability
2 . D E A L I N G W I T H M A R G I N P R E S S U R E
41. R E E VA L U AT I N G VA R I A B L E - VA L U E E L E M E N T S
1. Protected set of accounts: These customers pay for themselves, and the
company needs to be careful not to antagonize them
2. Set of accounts for whom the economic equation changes: This group
now produces an acceptable margin, but only because of the inside
edge strategy that required them to pay more (inside edge does not
impose mandatory fees)
3. Set of customers who were previously unprofitable and now choose to
defect rather than pay a la carte charge tied to the variable-value
element
2 . D E A L I N G W I T H M A R G I N P R E S S U R E
42. B R E A K I N G T H E S E R V I C E B U N D L E
Pricing Strategy = Revenue lever (Charge more for doing more)
VS.
Economic Surplus = Cost lever (Charge less but do less)
• Stripping away services at the edge of your product or journey and
making them separately salable allows more precise calibration to
different customer segments. In this way, self-service is an inside edge
response to margin pressure (Ex: Gas Stations and retailers)
2 . D E A L I N G W I T H M A R G I N P R E S S U R E
43. 3 . B E AT I N G T H E
C O M M O D I T I Z AT I O N C Y C L E
44. A . B E AT C O M M O D I T I Z AT I O N W I T H E D G E - B A S E D
C U S T O M I Z AT I O N
• The manufacturing or production process occurs entirely after the order is
secured. This would represent a perfect eclipse situation where the
customer permission set is fully met (Requires highly skilled workforce). By
configuration your product using a range of predetermined elements, the
company can offer lower prices due to economy of scale without offering
fundamental changes to the core offering
• Innovate more quickly and cheaply
3 . B E AT I N G T H E C O M M O D I T I Z AT I O N C Y C L E
45. B . B E AT C O M M O D I T I Z AT I O N W I T H E D G E - B A S E D
S O L U T I O N S
• Solutions redirect customers from haggling over the prices of features and
benefits and instead focus them on completed outcomes. They help
companies sell more core products by explicitly calling out a broader
need, augmenting appropriately, and giving it a meaningful wrapper. (Ie:
In the industrial gas industry, operations and maintenance services that
staff customers' plants with experienced personnel to assist with ongoing
requirements)
• Expand from a product sale to a more holistic solution sale and are
grounded in the customer journey
3 . B E AT I N G T H E C O M M O D I T I Z AT I O N C Y C L E
46. C . B E AT C O M M O D I T I Z AT I O N W I T H E D G E - B A S E D
B U N D L I N G
• Process by which edge options that either have been carved out of the
original offer and/or have been augmented are proactively reassembled in
a way that resonates more strongly with distinct customer segments (Ie: In
the Telecom Industry; the Caller ID is an enhancement that generated
higher gross margins)
• Value-added services allowed customers to construct a suite of products
that addressed a broader mission: communication on their own terms
• Formulate or reposition variants of the solution in a more targeted way to
individual customer segments
3 . B E AT I N G T H E C O M M O D I T I Z AT I O N C Y C L E
47. B E AT C O M M O D I T I Z AT I O N B R I N G I N G I T A L L
T O G E T H E R
• The three strategic moves described here work best in conjunction
• Edge merchandising is a holistic framework that makes edge offerings
resonate as strongly as possible with customers. With a focus on
presenting the right offer to the right customer at the right time, edge
tactics evolve into a cohesive marketing strategy (graph on the next page)
E X A M I N E T H E
B A S I C S ( E X :
U N B U N D L E C O R E
E L E M E N T S )
C O N S I D E R
U P S E L L I N G ( E X :
G R A D U A L LY
I N T R O D U C E VA R I O U S
A D D - O N S )
E L E VAT E T H E
C U S T O M E R
D I A L O G U E F R O M A
P R O D U C T D E C I S I O N
T O A M I S S I O N
D E C I S I O N
R E C O N S I D E R E D G E
B U N D L I N G
3 . B E AT I N G T H E C O M M O D I T I Z AT I O N C Y C L E
48. T H E E D G E M E R C H A N D I S I N G M AT R I X
2.EDGE-BASEDSOLUTIONS
1 . E D G E - B A S E D I N N O VAT I O N
TA R G E T E D O F F E R I N G S O P T I O N A L E N H A N C E M E N T S
PRODUCTDECISIONSMISSIONDECISIONS
U N B U N D L I N G P R O D U C T U P S E L L I N G
S O L U T I O N U P S E L L I N GR E B U N D L I N G
3 . E D G E - B A S E D
B U N D L I N G
I N S I D E E D G E
S T R AT E G I E S
O
U
TSID
E
ED
G
E
STRATEG
IES
J O U R N E Y
E D G E
S T R AT E G I E S
3 . B E AT I N G T H E C O M M O D I T I Z AT I O N C Y C L E
50. H O W B I G I S B I G D ATA ?
• Only 5% of data is actually being analyzed today, and only 20% is
accessible by the cloud, or “connected”. The amount of useful and
accessible data could increase by a factor of more than one hundred
• With IOT (Internet of Things), it is possible to create and upload useful
data. Ie: Consumer fitness aids, medical equipment…
4 . T H E E D G E O F B I G D ATA
51. H O W T O S E I Z E T H E B I G D ATA E D G E O P P O R T U N I T Y
• Factories will become more automated and more integrated with
marketplaces; supply chains will respond to demand in real time and,
eventually, practically run themselves
What are your company’s different sources of data?
• Can you list and describe them all?
What is the quality of this data?
• Is it well structured?
• Is it longitudinal (over time)?
• Is it customer-specific?
How could this data be useful to others?
• To your current customers or suppliers?
• Who else is affected by this data?
• Is this data relevant yo any industry other than my
company’s?
Who, other than your company’s competitors,
would buy this data?
What value would they derive from the data?
4 . T H E E D G E O F B I G D ATA
52. O B S E R VAT I O N S : O P P O R T U N I T Y F O R D ATA
P O W E R E D - E D G E S T R AT E G I E S
A. The usefulness of data is indiscriminate
B. Data fluency, or the ability to analyze and understand data, is increasing
C. Data is a product
D. Consumers value data, too
E. Renting data to other users is easy
F. The value of data can be disproportionally large for users outside your
enterprise
4 . T H E E D G E O F B I G D ATA
53. A . U S E F U L N E S S O F D ATA I S I N D I S C R I M I N AT E
• Big data is not uniquely directed at being useful for your business alone
• Making your data smarter and more accessible for internal use makes it
more useful for others too
• This expanded connectedness of data is directly applicable to opening new
edges opportunities
4 . T H E E D G E O F B I G D ATA
54. B . D ATA F L U E N C Y I S I N C R E A S I N G
• More and more companies will be ready for analysis
• More companies can find value in data or, more properly, in your company’s
data
4 . T H E E D G E O F B I G D ATA
55. C . D ATA I S A P R O D U C T
• An expanded fluency in data and increasing ability to make it useful mean
that more and more companies and customers have a need for data
4 . T H E E D G E O F B I G D ATA
56. D . C O N S U M E R S VA L U E D ATA
• Data fluency is empowering not only business-to-business companies. We
see a similar dynamic in consumer-facing markets
• Mobile technology has empowered these consumers to be ready and
willing to interface with data in all shapes and forms
• Consumer-facing companies have opportunities to target data-enabled
product edges. Data can enhance core offering: “the sale is starting now",
“your room is ready for check-in”… Ie: LinkedIn with the premium offer
4 . T H E E D G E O F B I G D ATA
57. E . R E N T I N G D ATA T O O T H E R S I S E A S Y
• Other companies acknowledge that they simply don't have the in-house
talent and expertise to capitalize on the opportunity. When faced with these
challenges, we see another opportunity for an edge mindset to be valuable
• By assessing the possibilities of who would rent its data, the firm may find
new ways to capture its value without having to become a data expert
• By activating an enterprise edge strategy, the company may be able to
monetize a valuable asset (its data) in new and creative ways
• Renting their data to others helps others benefit from it and access its power
4 . T H E E D G E O F B I G D ATA
58. F. D ATA’ S VA L U E C A N B E D I S P R O P O R T I O N AT E
• Your company’s data is often more valuable to other companies than it is to
you. The value often comes incrementally through a series of small wins
• When you make your data available to outsiders in different industries, you
can potentially multiply its value. Your data could be the missing link for a
company that has never had access to the side of your customers that only
you see or the perspective over time that your business model allows
4 . T H E E D G E O F B I G D ATA
60. M & A
5 . A N E W M I N D S E T F O R M & A
• M&A is a tool for strategy, not a strategy in and of itself. It is the strategy
behind the deal that matters
• Companies undertake M&A Transactions for a wide variety of reasons
- Meet sales objectives
- Grow earnings per share
- Deny a competitor
- Enhance skills
- Diversify risks
- Obtain assets
- Gain strategic advantage
- Maintain independence
- Bragging rights
61. A L L I N T H E P R I C E
• 3 factors go into determining the value of a company to shareholders:
- The free cash flow profile that the company expects to generate from its
operations over the short to medium term
- The long-term time horizon for the company
- The risk, or the level of uncertainty
• Synergy: Value created in a transaction
• Edge strategy is a valuable discipline for identifying, understanding, and
derisking important cash flows
5 . A N E W M I N D S E T F O R M & A
62. H O W A N E D G E A P P R O A C H C A N H E L P I N M & A
1. Product edge: How 2 companies’s offerings can be combined to create the
enhancement and upselling opportunities. Ie: P&G’s acquisition of Gillette
2. Journey edge: Point to partnerships where the company can seek and be
granted permission to extend its participation in the customers’ journey
3. Enterprise edge: Require the most outside-the-box thinking, but can yield
startling returns. By creating a careful inventory of the acquirer’s and target’s
foundational assets and submitting each to the test of identifying alternate
users in new business contexts, a company can begin to identify enterprise
edge opportunities
5 . A N E W M I N D S E T F O R M & A
63. H O W A N E D G E A P P R O A C H C A N H E L P I N M & A
5 . A N E W M I N D S E T F O R M & A
P R O D U C T E D G E
A N A LY S I S
J O U R N E Y E D G E
A N A LY S I S
E N T E R P R I S E
E D G E A N A LY S I S
Where can I find good targets to acquire? ✔ ✔
How can I prioritize possible targets? ✔ ✔ ✔
Where will I find revenue synergies in this deal? ✔ ✔ ✔
Will I be able to cross-sell products? ✔ ✔
Will I be able to find cost synergies? ✔
How difficult will it be to realize synergies ✔ ✔ ✔
64. 6 . F I N D I N G Y O U R E D G E
Edge Strategy In Application
65. D E V E L O P I N G Y O U R S T R AT E G Y
S T E P 1 : U N D E R S TA N D Y O U R C U S T O M E R S
• Understand key stakeholders: Ask customers why and for what purpose they
buy your products and then assign them to discrete set of groups or edge-
specific segments
- Who are each of these customers?
- What do they value most in your offer?
- What unmet needs to they have?
6 . F I N D I N G Y O U R E D G E
66. D E V E L O P I N G Y O U R S T R AT E G Y
S T E P 2 : F R A C T I O N AT E Y O U R P R O D U C T S A N D S E R V I C E S
• Define your core offering to juxtapose it with the customer permission set
• Conduct a detailed analysis of each service or product you offer and take you
customers' perspective during this process
- How do they define your offer?
- What basic customer needs are you meeting?
- What problems are you solving?
6 . F I N D I N G Y O U R E D G E
67. D E V E L O P I N G Y O U R S T R AT E G Y
S T E P 3 : M A P T H E C U S T O M E R J O U R N E Y
• Recognize the mission your customers are trying to complete. For each
mission, you need to understand the holistic journey your customer is on in
order to complete it and break that journey into discrete elements. Then you
must consider the customer’s specific needs at each stage of the journey
- What brought them to the purchase point?
- What key steps did they take to get there?
- What will they do next, immediately after they disengage from the
business?
- What is the final resting place of the purchase?
6 . F I N D I N G Y O U R E D G E
68. D E V E L O P I N G Y O U R S T R AT E G Y
S T E P 4 : A S S E S S Y O U R F O U N D AT I O N A L A S S E T S
• Develop an inventory of all your assets: Capabilities like customer service
expertise and assets like equipments
• Consider your softer assets: Knowledge, technology, information and data,
and expertise in specific topics
• Channel access and market presence
- What precisely is the value of this asset to my current customers?
- Is the use of this asset uniquely aligned to meeting these needs?
- How could the asset be employed to support my customer beyond the
current purpose?
6 . F I N D I N G Y O U R E D G E
More in Annex 1
69. D E V E L O P I N G Y O U R S T R AT E G Y
S T E P 5 : P R I O R I T I Z E Y O U R E D G E O P P O R T U N I T I E S
• Establish defined, edge-specific criteria consistent with your company's existing
strategic goals (profit potential of the opportunity, the feasibility of implementation,
the amount of investment, the degree of risk, the time to delivery…)
• Identify a few key functional experts in your organization with whom you work one-on-
one to assemble high-level “what you need to believe” business cases for each
opportunity
• Compare and prioritize with a cross-section of your organizational stakeholders (Sales,
HR….)
• Have a steering team of senior leaders review the opportunities and then prioritized list
of the best opportunities to decide which merit further consideration and investment
6 . F I N D I N G Y O U R E D G E
70. B U I L D I N G T H E P L A N
S T E P 6 : D E T E R M I N E Y O U R L I K E LY C U S T O M E R A D O P T I O N
R AT E S
- How many of your customers will buy the edge offering?
- What will be the adoption rate?
- How many of your customers will purchase the new a la carte feature?
- What percent of your customer base would purchase the new services?
• Conjoint analysis: Tool that involves surveying or interviewing customers and
asking them to choose between different versions of a complete solution
6 . F I N D I N G Y O U R E D G E
71. B U I L D I N G T H E P L A N
S T E P 7 : D E F I N E T H E O P E R AT I N G M O D E L
- What operating costs are required to enable your edge opportunity?
- What investment will you need?
- What changes to your organization will you need to make?
- What is the timeline for laughing the product?
• Develop a detailed product profile or specification that fully defines what you
want this product to be and how customers will experience it
• Examine how the organization needs to change in order to activate this new
product experience “people, process, technology"
6 . F I N D I N G Y O U R E D G E
More in Annex 2
72. B U I L D I N G T H E P L A N
S T E P 8 : B U I L D I N G A W I N N I N G B U S I N E S S C A S E
• A strong business case is one that delineates a multiyear financial view and
drives this analysis to cash flow, fully considering all investment capital over
time (profit line, risk assessment…)
6 . F I N D I N G Y O U R E D G E
73. A C T I VAT I N G T H E S T R AT E G Y
S T E P 9 : E X E C U T E T H E P L A N
• Employ good project management practices: A dedicated strategy activation office;
clearly articulated, measurable goals and objectives; a seasoned project
management team, sensible governance structure, achievable timelines, project
procedures and resource management tools
• An edge strategy activation office should be established in order to foster
cooperation and engagement from people across the organization for which the
goals of the project may not be a day-today focus
• Yield loss: When the final solution fails to achieve some of the original financial goals
of the project, which happens most often because critical aspects of the project were
compromised during activation
6 . F I N D I N G Y O U R E D G E
74. A C T I VAT I N G T H E S T R AT E G Y
S T E P 1 0 : O B S E R V E A N D R E F I N E
• You will inevitably adjust your strategy along the way
• A structured and metrics-based monitoring and refinement effort should operate for at least five year
after the launch of your edge strategy (dashboard that monitors the company’s progress against goals)
- Are adoption rate in line with what you expected?
- Are there any features that are playing particularly well (or poorly) in the market?
- Are you hitting monthly sales milestones?
- Are there delivery failures or unexpected cost increases?
- Are sales tracking along with your expectations?
- Are you investing the appropriate amount of resources?
- Could you tweak pricing to drive adoption in a key customer segment?
- Has the competitive response paved the way for additional edge strategies?
6 . F I N D I N G Y O U R E D G E
75. A N N E X 1
T E S T I N G F O R E N T E R P R I S E E D G E S
• Do you have underutilized physical assets?
• Does your production process create by-products that you are not fully monetizing?
• Are any of your assets unconstrained or intangible?
• Would any companies, other than a competitor, value any aspect of your business?
• If so, can you provide them access without affecting your core business?
• How are those companies currently satisfying that need?
• Can your company offer them a better solution?
• Is there a reasonable path to market with those customers?
6 . F I N D I N G Y O U R E D G E
76. A N N E X 2
• People
- Who in your organization will be involved in offering and fulfilling the edge strategy?
- How will their roles be affected?
- Will you need to create new roles
- How will you design responsibilities and ownership for the new edge products?
- Who will need to be engaged?
- What will they need to know and understand about the new strategy?
• Processes
- How will your teams’ day-to-day activities need to change to ensure that they carry out the new service,
product, or activity effectively?
- What do you need to do in order to train employees?
• Technology
6 . F I N D I N G Y O U R E D G E