This document discusses how disruptive forces are changing markets and management. New technologies like location services, social networks, cloud services, and big data are altering how customers make decisions and compete for their business. Rather than relying on internal planning and forecasts, management must adopt more dynamic, real-time tactics to influence customer preferences through these external forces. The key is for management to align their operations with how participants already use technologies to discover and procure what they want. By managing market operations to enable this, businesses can continually generate new customers rather than viewing customers as static.

1. Market Makers
The disruptive management
of making customers
by making markets
© 2014 Malcolm Ryder / archestra research

2. The Common Problem
What do customers, innovation, and competition have in common?
• They are all Solutions to the same problem: differentiation.
• Difference is, of course, the basis of distinction.
• The importance of a distinction is its value.
Value is what is offered in order to be preferred.
• Preference causes selection
• Selection predetermines acquisition
• Acquisition = buying

3. What is a Market?
A market is an environment for monetizing preferences.
In today’s world, in order to compete, management must not “go to
market” and find customers.
Instead, management must make markets, because markets make
customers.
Differentiation makes markets. Companies create differentiation.

4. What is Management?
Management is:
• the application of
• a method to cause
• an intentional progression of an operation
• consistent with required outcomes.

5. What is Management For?
Management is responsible for driving and constraining outcomes from
operations.
Outcomes are the effects of the impacts of outputs.
In our case, management outcomes need to generate a market.
Operational progress is management’s own explicit productivity
requirement.
The primary means of “production” by management is influence on
operational outputs.

6. The Inside versus Outside of
Management Influence
Management productivity is based on methodical influence. The model of the method is
cyclical. (Cycle times may be fast or slow.)
INSIDE influences: Management likes to rely on foresight leading to objectives that are
realized through planning and governed by guidance (allowing validation of foresight).
OUTSIDE influences: Meanwhile, in the world beyond “inside” management, what happens
is that expectations are tested, leading to confidence that takes on a presence as empirical
logic predisposing the visibility of future states (and thus, future expectations).
INSIDE OUTSIDE
© 2014 Malcolm Ryder / archestra research

7. Management Disruption
The cycles of influence do not always have a successful result. This could be due to
deficiencies in savvy, competency, or co-operation.
But the new problem of management is that the external influences are increasingly
broader, stronger, and more ephemeral than the internal management influences.
The external aspects may originate externally and/or occur as the after-effects of internal
management, but they exist concurrently with the internal ones.
The result of this concurrence is that, from the outside:
Expectations compete with foresight to influence Objectives
Confidence competes with objectives to influence Planning
Logic competes with planning to influence Guidance
Visibility competes with guidance to influence foresight

8. OBJECTIVE
vs. Confidence
PLANNING
vs. Logic
FORESIGHT
vs. Expectation
GUIDANCE
vs. Visibility
External forces of Expectation,
Confidence, Logic, and Visibility,
which develop and occur beyond
management control, increasingly
impinge on management decisions,
potentially redirecting or disrupting
the cycle of influence...
Naturally occurring external forces
intervene and compete for influence
with conventional internal drivers of
management
Legend:
INTERNAL INFLUENCE
vs. External Influence
generates
generates
© 2014 Malcolm Ryder / archestra research

9. Intermittent Outcomes
of Management’s internal influence
Along the cycle of influence, conventional management decides four operational dispositions of
how to further proceed. These dispositions are management outcomes.
Conventional
influence
Disposition
generated
What the disposition typically affects further along the cycle
Foresight Timing Scheduling the activation of initiatives and production
Objective Communications Messaging the authorized purposes and views of objectives
Planning Sourcing Ordering the selection of supporting functions and supplies
Guidance Intelligence Evaluating the formulation and recognition of execution effects
Timing, Communications, Sourcing and Intelligence link operational decisions made in the cycle of
influence.
But each of those dispositions may be altered, proactively or reactively, by a competing external
influence, making each highly variable. Varying separately creates uncertainty, and varying in
combination creates complexity.
© 2014 Malcolm Ryder / archestra research

10. Orthodoxy is subverted by external realities
In the environment of markets, current external influences increasingly make conventional
interim dispositions in management unreliable and asynchronous. For example:
• Expectation – Prediction is burdened with not knowing what we don’t know, and then
getting inconveniently surprised by it.
• Confidence – Committing to predictions is more debatable when authority does not flow
strongly from them or when there is competing authority.
• Logic – Disparities between perceived needs invite competing ideas about why things
should be done and how things work.
• Visibility – Data volumes increase far faster than mindsets evolve, but mindsets control
data processing and ubiquitous data amplifies differences of mindsets.
Those effects make their combinations unpredictable and generate uncertain outcomes.

11. OBJECTIVE
vs. Confidence
PLANNING
vs. Logic
Competing external influences can
alter what gets passed forward
internally in the cycle of management
influence…
FORESIGHT
vs. Expectation
GUIDANCE
vs. Visibility
Scheduling
Messaging
Ordering
Evaluating
Legend:
INTERNAL INFLUENCES
vs. External Inluences
© 2014 Malcolm Ryder / archestra research

12. OBJECTIVE
vs. Confidence
PLANNING
vs. Logic
FORESIGHT
vs. Expectation
GUIDANCE
vs. Visibility
Widespread innovation means not being
sure when a particular proposed offering
will have target worth or for how long
Workforce psychology
must cover
dramatically diverse
populations
Expertise is
crowded by
information
overload
TIMING
COMMUNICATIONS
SOURCING
INTELLIGENCE
Supply chains are
altered by automation
Numerous other changes,
diversity, and uncertainty
in producing “for” value
are now normal
© 2014 Malcolm Ryder / archestra research

13. Transformative Forces Remake Markets
Various recent developments are critical “disruptors” assuring that market management
conventions will quickly morph into a different set of tactics. For example:
• Location-based services forego prediction in favor of detection. On detection, location-relevant
capabilities and interests are promoted with offerings of enablement or
support. The just-in-time offering requires highly dynamic delivery mechanisms.
• Social Networks are a default medium and information channel that can create or modify
audiences, attention, awareness, and preferences. Presence in the network is mandatory
for being adequately influential.
• Cloud services make I.T. cheaper to use by disparate parties; the ease of replicating and
diversifying supportive capability spreads dramatically, making scope and variety (and
thus change) available on demand from wide-ranging sources.
• Big Data uncovers evidence of critical dependencies and other relationships that may
previously have gone undetected or unconfirmed. Opportunities shaped around
insightful common interests are compelling attractors.
In effect, businesses must continually re-engineer markets from the changes.

14. Market-making tactics
In effect, businesses must manage new tactics and continually re-engineer
markets from the changes they create.
New capabilities
(examples)
Management Disposition affected Tactical Requirement for
management
Location Based services Timing Dynamic delivery mechanisms
Social Networks Communications Presence in the social networks
Cloud services Sourcing Diversified capabilities
Big Data Intelligence Insightful offers

15. Transformative Forces Remake Management
A continuous cycle of influence can, in effect, have a “gyroscopic” stability.
But new capabilities subvert older management tactics while creating different kinds of new
opportunities.
These numerous critical “disruptors” assure that today’s steady state will quickly morph into a
different one.
Conventional
influence
Disposition
generated
Example new capabilities
= opportunities challenging convention
Difference from
convention
Foresight Timing Location Based services – real-time monitoring not predictions
Objective Communications Social Networks – back channel publicity not the company line
Planning Sourcing Cloud services – the I.T. store for anyone not central administration
Guidance Intelligence Big Data – simultaneous alternative views not single fixed perspective
Aligning the opportunities into a new steady state is the key requirement of management’s response.

16. Profiling a “Customer”
The importance of such disruptors is that they reflect what market participants already
have and use. Technologies have given participants their own cycle of influence, with a
combination of self-service and managed services to procure what they want.
Potential customers embody the kinds of external influences that pressure internal
management to transform and to solicit their attention.
Customer-held
Management Issue
Market participant profiled as a Customer
influencer
affected
Expectations Timing When they will buy is their most important issue
Confidence Communications How they know about things largely decides how
they form preference
Logic Sourcing Convenience of availability and delivery decides who
they will contract or pay
Visibility Intelligence Feedback is ubiquitously available, not perfect but
not privileged despite discrete systems
© 2014 Malcolm Ryder / archestra research

17. Markets make Customers,
not vice-versa
Customer-centricity is a business idea that
must mean aligning operations to the way
that market participants use influence to
decide to buy.
Participants do not necessarily know what
they want – but they do necessarily
discover what they want.
Markets essentially enable the participant
to manage their own influences so that they
can become a customer.
“Market operations” should be managed to
create that enablement.
Predisposition of a market
participant as a prospect
When they will buy is their most
important issue
How they know about things
largely decides how they form
preference
Convenience of availability and
delivery decides who they will
contract or pay
Feedback is ubiquitously available,
not perfect but not privileged
despite discrete systems

18. Managing development of a market
Internal ACTION GOAL External DRIVER
Internal management Outcomes
influencing market operations
Market-making attributes and
tactical objectives
Predisposition of a market
participant as a prospect
Scheduling the activation of
initiatives and processes
Dynamic delivery mechanisms When they will buy is their most
important issue
Messaging the authorized purposes
and views of objectives
Presence in the social networks How they know about things
largely decides how they form
preference
Ordering the selection of
supporting functions and supplies
Diversified fulfillment capabilities Convenience of availability and
delivery decides who they will
contract or pay
Evaluating the formulation and
recognition of execution effects
Insightful offers Feedback is ubiquitous, not
privileged despite discrete systems

19. A “customer” is an effect, not a cause.
A “competitor” makes markets, not products.
• Different organizations achieve
the currently necessary goals in
different forms by different
means.
• The provided forms together
create the environment of
influence for the market
participant
• A market is an environment for
monetizing preferences
• A managed market environment
continually generates and re-generates
customers
GOAL External DRIVER
Market-making attributes
and tactical objectives
Predisposition of a market
participant as a prospect
Dynamic delivery
mechanisms
When they will buy is their
most important issue
Presence in the social
networks
How they know about
things largely decides how
they form preference
Diversified fulfillment
capabilities
Convenience of availability
and delivery decides who
they will contract or pay
Insightful offers Feedback is ubiquitous,
not privileged despite
discrete systems
© 2014 Malcolm Ryder / archestra research

20. © 2014 Malcolm Ryder / archestra research
mryder@malcolmryder.com