A successful company becomes very good at growing its core.It secures resources, improves existing products and creates new ones, expand markets and increase efficiencies by improving processes, all to extract the most value for its core activities. It also continues to develop and refine the key business rules and metrics that ensure proper execution, establish discipline and exert control through out the organisation. Either explicitly or implicitly the company is operating according to a business model, which defines the way the company delivers value to a set of customers at a profit. What happens when an opportunity arises outside a company core, an opportunity to serve an wholly new customer or an existing customer in a radically new way?
White space- the range of potential activities not defined or addressed by the company's current business model , that is, the opportunities outside its core and beyond its adjacencies that require a different business model to exploit. A business model is a representation of how a business creates and delivers value, both for the customer and the company. The basic architecture underlying all successful business consists of four interdependent elements- Customer Value Proposition (CVP), Key resources, key Processes and Profit formula.
The author contributes significantly to our understanding of CVP- a product , service or combination thereof that helps customers do more effectively , conveniently or affordably a job they have been trying to do. How to maximise a CVP?
- identify an important -job-to-be-done that is poorly satisfied today for a customer.
- devise and develop an offering that does the job better than alternatives at the lowest of appropriate price.
do not ask yr customer what he/she needs? find out what they are trying to get done.