M11-S2 - Session - Defining the business

M11-S2 - Audio - Defining the business The session started with 'Defining the business' using the Abell Framework which can be summarized into three questions:

1. Who do we serve?
   1. Define Customer segments
2. What do we offer?
   1. Define Value Proposition
3. How do we do that?
   1. Define Business Model

There should be a good balance in harvesting existing business (Business Exploitation) and creating new business (Business Exploration).

In defining customers segments it is important to define your Way-to-market architecture. Who is your customer? Who in a complicated delivery chain is 'the customer'??? To help discover who is really the focal customer the company should be concentrating on, three questions are important:

1. Who makes the choices?
   1. Who is the person making the purchasing decision? (See also: DMU)
   2. Marketeers should be interested in the customers over the consumer
2. Who pays?
3. Who consumes?'

We next talked about channel design, in this picture the difference between HP and Oce is depicted.

Risks for HP:

• Loosing ownership of the end customer

Risk for Oce:

• Scalability

To know who you customer is, ask yourselves the following questions:

• What do they do?
• What do they experience?
• Who are they?