Niraj Dawar Author of TILT, Professor at Ivey School of Business

Strategytilt.com

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New Sources of Advantage

Niraj Dawar Twitter @NirajDawar

Strategytilt.com

http://strategytilt.com/

Strategytilt.com

http://strategytilt.com/

Strategytilt.com

http://strategytilt.com/

What Business are

you in? Strategytilt.com

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When we think of our

Business…

Strategytilt.com

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Strategytilt.com

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Why do your customers

buy from you?

Strategytilt.com

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When we think of our

Customers…

Strategytilt.com

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Strategytilt.com

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Value Creation

Process

Sourcing R&D, NPD:

Product Innovation

Supply Chain /

Logistics, Production

Customer Acquisition

Customer Satisfaction

Customer Retention

WHAT: UPSTREAM ACTIVITIES

HOW: DOWNSTREAM ACTIVITIES

Strategytilt.com

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COST

Three Shifts

WHAT: UPSTREAM ACTIVITIES

HOW: DOWNSTREAM ACTIVITIES

Sourcing R&D, NPD:

Product Innovation

Supply Chain /

Logistics, Production

Customer Acquisition

Customer Satisfaction

Customer Retention

Strategytilt.com

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Cost Shift

Time

UPSTREAM

Costs as %

of Revenue

DOWNSTREAM

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Three Shifts

WHAT: UPSTREAM ACTIVITIES

HOW: DOWNSTREAM ACTIVITIES

CUSTOMER VALUE

Sourcing R&D, NPD:

Product Innovation

Supply Chain /

Logistics, Production

Customer Acquisition

Customer Satisfaction

Customer Retention

Strategytilt.com

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“Amazon does

not sell better books,

it sells books better” Strategytilt.com

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Products,

Technologies

Customer Interface

Activities

What is the Source

Of Customer Value?

Value + = What How

Strategytilt.com

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Three Shifts

WHAT: UPSTREAM ACTIVITIES

HOW: DOWNSTREAM ACTIVITIES

COMPETITIVE ADVANTAGE

Sourcing R&D, NPD:

Product Innovation

Supply Chain /

Logistics, Production

Sales and Distribution

Customer Interface

After-Sales Activities

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Competitive

Advantage

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Co

sts

/ C

ust

om

er

Val

ue

/

Co

mp

etit

ive

Ad

van

tage

WHAT: UPSTREAM ACTIVITIES

HOW: DOWNSTREAM ACTIVITIES

TILT Sourcing

R&D, NPD: Product

Innovation

Supply Chain /

Logistics, Production

Sales and Distribution

Customer Interface

After-Sales Activities

Strategytilt.com

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So What? Strategytilt.com

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Implications of the Tilt

Every firm has a center of gravity

WHAT: UPSTREAM ACTIVITIES

HOW: DOWNSTREAM ACTIVITIES

Sourcing R&D, NPD:

Product Innovation

Supply Chain /

Logistics, Production

Customer Acquisition

Customer Satisfaction

Customer Retention

Where’s yours?

Strategytilt.com

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Implications of the Tilt

Instead of asking How Much More of this Stuff can we Sell?

Ask: What else do our customers need? Strategytilt.com

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Implications of the Tilt

Instead of asking What else can we make?

Ask: What else can we do for our customers?

Strategytilt.com

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Implications of the Tilt

Instead of just asking Can we Sell Better Products?

Ask: Can we Sell Products Better?

Chevy Volt

Tesla

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Implications of the Tilt

Your competitive advantage no longer resides inside your four walls

It is out there, in the marketplace Strategytilt.com

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Implications of the Tilt

Innovations don’t succeed through better products

They succeed because you change

customer criteria of purchase Strategytilt.com

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Marketing

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Strategytilt.com

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