1. Strategy and Value Exchange: Why innovation vs tradition is a false dichotomy
Satya Nadella stated: “Our industry does not respect tradition. What it respects is innovation.”
He couldn’t be more wrong.
Traditions don’t form by accident.
They represent convenient and familiar ways for people to do things.
Traditions reflect how our brains work.
Ignoring them in the name of innovation is the easiest way to create products no one needs.
What we shouldn’t do:
[1] follow traditions blindly [2] ignore them completelyInstead, we should build products that solve real customer problems.
And we need to study traditions to deeply understand the needs of the people we want to turn into our customers.
2. Strategy-related terms: Lego Flowers as a great example of new market creation
A new market is often within arm’s reach
Lego has always made toys for kids. Or has it?
Lego Flowers is a big new hit. Adults enthusiastically assemble plastic bouquets and post their creations on social media.
Every market can is characterized by 10 elements:
[1] Customers [2] Customer needs [3] Customer value vs Customer sacrifices [4] Value monetization model [5] Sources of monetization [6] Drivers of efficiency [7] Place of purchase [8] Time of purchase [9] Reason for purchase (trigger) [10] EmotionsChange at least three of them, and you can create a new market.
With Lego Flowers, the company attracts new customers, satisfies their need for hands-on creativity and aesthetics, and offers them a unique value – plastic DIY bouquets.
Good job, Lego!
3. Thursday musings: We look for solutions where there are none
Most of our personal problems are inside us – in our fears, beliefs, biases, and superstitions.
But we often try to solve them by changing external things.
We change jobs and partners, move to other places, and change our lifestyles.
And it doesn’t work.
Most of our business problems are outside our business – in our customers, business partners, and competitors.
But we often try to solve them by changing internal things.
We shuffle org charts, automate processes, and initiate digital transformations.
And that doesn’t work either.
Find out where your problem is first, and only then look for a solution.
Svyatoslav Biryulin
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I help businesses scale fast by creating new markets. Do you need expert guidance to craft a winning strategy for your business? DM me.
Read also: Suffocating In Tech – Gasping For Value
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