On importance of consumer context in Target Operating Model design

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Continuing the discussion on the 5 key contexts of Strategic Business Architecture, this article looks at the importance of taking into account consumer dynamics in responsive Target Operating Model design. Understanding of final consumers will help create the target model (including one for a global enterprise) that has necessary responsiveness and relevance, while also ensuring that enough flexibility remains to encompass any local cultural variation.

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Why review enterprise business model prior to embarking on Target Operating Model design

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Real life experience suggests that as many as up to 50% of initiatives and projects, including those conceived in good faith and with best possible intentions, are cancelled along the way or do not meet business expectations once finished. In addition to being a huge financial burden on any business and strain on its scarce resources, these aborted or miscarried projects may become a source of teams’ disengagement and low morale once the office rumour mill gets going. By reviewing the enterprise business model beforehand, Strategic Business Architecture helps to dramatically reduce number of these dead starters as it connects the Target Operating Model  with overall strategic objectives of the business. 

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Using scenario development to connect Target Operating Model with wider external context

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In my overview of the 5 key contexts of Strategic Business Architecture, I mentioned that understanding of the company’s external environment will help building a Target Operating Model that is up-/down-scalable and thus can cope better both when things are looking good and in downturn. In this article, I am discussing likely benefit of using scenario development in designing a more scaleable and resilient operating model. 

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LEGO engineered a remarkable turnaround of its business. How’d that happen?

A thought provoking article on the need for in-depth consumer knowledge as opposed to reliance on big data analysis alone.

As accurate… as big data can be while connecting millions of data points to generate correlations, big data is often compromised whenever humans act like, well, humans. As big data continues helping us cut corners and automate our lives, humans in turn will evolve simultaneously to address and pivot around the changes technology creates. Big data and small data are partners in a dance, a shared quest for balance – and information.

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Getting the business model right

According to business and innovation university professor, Clayton Christensen, every viable business model starts with a “value proposition” which he defines as a product or service that helps customers do more effectively, affordably and conveniently a job that they’ve been trying to do… Although there are many business models that could be deployed to deliver a value proposition to the target customer, Christensen has long believed that most of the time it boils down to one of three alternatives – the solution shop, the value adding process and the facilitated user network.

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