Podcasts about firm based strategy

Key Takeaways and Actionable Insights Business strategy and business model design has traditionally been firm-centric. Entrepreneurs are called upon to establish firms, to make the firm the locus of value creation through value proposition design, assembly of resources, and production; and to ensure competitive advantage in comparison to rival firms pursuing the same customers. There is an entirely different way to approach economic value creation (see Mises.org/E4E_77_PDF). Ralph Welborn discusses this new approach for the 2020s on the Economics For Entrepreneurs podcast, and in his book Topple: The End of the Firm-Based Strategy and the Rise of New Models for Explosive Growth (Mises.org/E4E_77_Book). The innovation of the new strategic approach is the focus on ecosystems instead of firms. The new approach preserves — and, in fact, elevates and intensifies — the Austrian business model principle of customer sovereignty and the deep understanding of the customer as the first step on the value creation path. But it changes the perspective to the ecosystem level. Defining the business ecosystem. Ralph defines a business ecosystem as the methods of orchestrating capabilities from diverse organizations to capture new sources of value. Austrians see entrepreneurs as orchestrators, and so we are very comfortable with this starting point. We are equally comfortable with the core analytic action Ralph proposes: studying where value is being created and destroyed within an ecosystem, and taking steps to capture emergent new value. As an example, think of a consumer's nutrition ecosystem, and how it might have changed — that is, how new value has been created and old value destroyed — over the past twenty years. In the past, value was created by Big Food firms (think Kraft Heinz) via low prices, convenience packaging (e.g. canned foods and frozen foods), standardization, high volume, and supermarket distribution. But then some consumers sought new value in fresh food, organic food, less processed food, fewer preservative ingredients and fewer additives and new recipes. New brands took advantage of the emergent value opportunities. And even more recently, new value has been created by delivery platforms that can bring the food directly to the home, and escape the “war in the store” for shelf space and distribution slots. You can begin to appreciate how a business ecosystem such as “consumer nutrition” can change, how new value creation can emerge, and how entrepreneurs might take new action. Ralph mentions another example in his book: the ecosystem in which automobile companies operate has changed from transportation to mobility. The companies must now deliver value in areas such as in-car productivity, entertainment, communications, connectivity and more. In order to implement an ecosystem-based strategy, Ralph recommends the following steps: First, shift your unit of focus. Business schools have told us that our point of focus should be our firm, or corporation, or business unit or department: to maximize the performance of that unit in comparison to other firms or units. The shift is to focus not on the firm but on the ecosystem in which you and your customers engage, in order to develop a new value perspective. Step one in business is always to identify and know the customer. The added perspective is to identify, and study, the ecosystem in which you and the customer are engaged. Second, see the ecosystem as a locus of shifting value. Once you've defined it, observe the ecosystem as a network of economic interactions where value is being created and destroyed via changing customer preferences and needs. A consequence of these changes will be shifts in the competitive environment, and you can observe these too, as clues. To continue with our nutrition ecosystem as an example, you can observe the shifts in market share between traditional and innovative food companies, and use these shifts as a signal of changing consumer preferences. Of course, you can also simply observe consumer behavior and conduct traditional research. Plug all of this observation into a dynamic ecosystem perspective: where and how is value being created and destroyed in the ecosystem? Ralph's memorable phrase is: value seen is value captured. If you can see where value is shifting and where new value is being created (or will be created in the future) you will be able to capture it. Third, answer the questions: “How can I fit in to the ecosystem?” and “How can I contribute to the ecosystem?” The changed perspective of the ecosystem approach is the shift from “how can my firm compete with other firms?” to “how can I qualify to be invited into the customer's ecosystem?” If you have a new line of organic, healthy food products for health- and diet-conscious consumers, how can you engage with the communication channels within the ecosystem to make those consumers aware, how can you utilize those channels to communicate your benefits, how can you engage with ecosystem retailers and distributors to make it convenient for the consumer to buy your physical products, and how can you participate in the consumer's preparation systems to provide extra service in addition to your physical product? Where is new value emerging? Where is old value being destroyed? How can you take advantage of the shifts? The answer to the question “How can I contribute to the ecosystem?” requires an analysis and articulation of what are the capabilities required to meet new needs, who has those capabilities (if your firm does not have them all), and how can you orchestrate these capabilities in service of those needs? Perhaps home delivery is required for ultimate customer convenience. Who does that and how can you orchestrate that capability on the customer's behalf? Perhaps food preparation videos will help the customer get the most value from your product — who can prepare the content (a celebrity chef, perhaps) and which is the best platform to host and deliver the content to the kitchen? Perhaps your packaging can be recycled — how can you orchestrate that to make it convenient for your customer (as Nespresso does, for example, with recycling bags for their capsules, which can be mailed back free, or dropped off at a Nespresso boutique). To fit in and contribute, choose a bundling or un-bundling strategy. Austrian economics directs entrepreneurs to assemble resources to facilitate customer value in a unique manner. In the book Topple, Ralph Welborn calls this a bundling versus unbundling decision. If you decide to be a bundler, you improve customer value by providing multiple services around the desired benefit — such as amazon does with retailing and delivery, making shopping more convenient. Unbundling refers to a focus on a single benefit-delivering capability, such as manufacturing a new organic food product that is clearly differentiated from the preservative-laden portfolio of the Big Food company. You can choose to be a bundler or an un-bundler based on how you want to deliver value to customers. Fourth, audit your own capabilities and identify the 20% that deliver the majority of your value. The capabilities underlying your product or service (skill sets, software, distribution, customer relationships, media channels, process) decay over time, often at an accelerating rate. Ralph points out that entrepreneurs should be creating new capabilities continuously, and making those new capabilities into the 20% that drive explosive growth. This is pure Austrian Capital Theory — identifying the business assets that most contribute to customer satisfaction and keeping them refreshed and up-to-date as customer preferences change. Ralph cites Uber as an example: the new capabilities are mobile connectivity (from carriers), payment transactions (banks and credit card companies) and dynamic GPS and mapping software (from Google and others). These capabilities are: Centered around what the customer wants to do.Taking friction out of what it is they want to do, making it extraordinarily convenient.Orchestrating different capabilities from different types of actors and organizations.Reserving the enabling orchestration capabilities to Uber. The implications for business are to: (i) identify your assets and their half-life — the rate of decay; (ii) identify where to play in your newly understood ecosystem and how to develop the new assets and capabilities to do so. This is a continuing process. Additional Resources "An Ecosystem-Based Development Strategy" (PDF): Mises.org/E4E_77_PDF Ralph Welborn's book, Topple: The End of the Firm-Based Strategy and the Rise of New Models for Explosive Growth: Mises.org/E4E_77_Book

Key Takeaways and Actionable Insights Business strategy and business model design has traditionally been firm-centric. Entrepreneurs are called upon to establish firms, to make the firm the locus of value creation through value proposition design, assembly of resources, and production; and to ensure competitive advantage in comparison to rival firms pursuing the same customers. There is an entirely different way to approach economic value creation (see Mises.org/E4E_77_PDF). Ralph Welborn discusses this new approach for the 2020s on the Economics For Entrepreneurs podcast, and in his book Topple: The End of the Firm-Based Strategy and the Rise of New Models for Explosive Growth (Mises.org/E4E_77_Book). The innovation of the new strategic approach is the focus on ecosystems instead of firms. The new approach preserves — and, in fact, elevates and intensifies — the Austrian business model principle of customer sovereignty and the deep understanding of the customer as the first step on the value creation path. But it changes the perspective to the ecosystem level. Defining the business ecosystem. Ralph defines a business ecosystem as the methods of orchestrating capabilities from diverse organizations to capture new sources of value. Austrians see entrepreneurs as orchestrators, and so we are very comfortable with this starting point. We are equally comfortable with the core analytic action Ralph proposes: studying where value is being created and destroyed within an ecosystem, and taking steps to capture emergent new value. As an example, think of a consumer's nutrition ecosystem, and how it might have changed — that is, how new value has been created and old value destroyed — over the past twenty years. In the past, value was created by Big Food firms (think Kraft Heinz) via low prices, convenience packaging (e.g. canned foods and frozen foods), standardization, high volume, and supermarket distribution. But then some consumers sought new value in fresh food, organic food, less processed food, fewer preservative ingredients and fewer additives and new recipes. New brands took advantage of the emergent value opportunities. And even more recently, new value has been created by delivery platforms that can bring the food directly to the home, and escape the “war in the store” for shelf space and distribution slots. You can begin to appreciate how a business ecosystem such as “consumer nutrition” can change, how new value creation can emerge, and how entrepreneurs might take new action. Ralph mentions another example in his book: the ecosystem in which automobile companies operate has changed from transportation to mobility. The companies must now deliver value in areas such as in-car productivity, entertainment, communications, connectivity and more. In order to implement an ecosystem-based strategy, Ralph recommends the following steps: First, shift your unit of focus. Business schools have told us that our point of focus should be our firm, or corporation, or business unit or department: to maximize the performance of that unit in comparison to other firms or units. The shift is to focus not on the firm but on the ecosystem in which you and your customers engage, in order to develop a new value perspective. Step one in business is always to identify and know the customer. The added perspective is to identify, and study, the ecosystem in which you and the customer are engaged. Second, see the ecosystem as a locus of shifting value. Once you've defined it, observe the ecosystem as a network of economic interactions where value is being created and destroyed via changing customer preferences and needs. A consequence of these changes will be shifts in the competitive environment, and you can observe these too, as clues. To continue with our nutrition ecosystem as an example, you can observe the shifts in market share between traditional and innovative food companies, and use these shifts as a signal of changing consumer preferences. Of course, you can also simply observe consumer behavior and conduct traditional research. Plug all of this observation into a dynamic ecosystem perspective: where and how is value being created and destroyed in the ecosystem? Ralph's memorable phrase is: value seen is value captured. If you can see where value is shifting and where new value is being created (or will be created in the future) you will be able to capture it. Third, answer the questions: “How can I fit in to the ecosystem?” and “How can I contribute to the ecosystem?” The changed perspective of the ecosystem approach is the shift from “how can my firm compete with other firms?” to “how can I qualify to be invited into the customer's ecosystem?” If you have a new line of organic, healthy food products for health- and diet-conscious consumers, how can you engage with the communication channels within the ecosystem to make those consumers aware, how can you utilize those channels to communicate your benefits, how can you engage with ecosystem retailers and distributors to make it convenient for the consumer to buy your physical products, and how can you participate in the consumer's preparation systems to provide extra service in addition to your physical product? Where is new value emerging? Where is old value being destroyed? How can you take advantage of the shifts? The answer to the question “How can I contribute to the ecosystem?” requires an analysis and articulation of what are the capabilities required to meet new needs, who has those capabilities (if your firm does not have them all), and how can you orchestrate these capabilities in service of those needs? Perhaps home delivery is required for ultimate customer convenience. Who does that and how can you orchestrate that capability on the customer's behalf? Perhaps food preparation videos will help the customer get the most value from your product — who can prepare the content (a celebrity chef, perhaps) and which is the best platform to host and deliver the content to the kitchen? Perhaps your packaging can be recycled — how can you orchestrate that to make it convenient for your customer (as Nespresso does, for example, with recycling bags for their capsules, which can be mailed back free, or dropped off at a Nespresso boutique). To fit in and contribute, choose a bundling or un-bundling strategy. Austrian economics directs entrepreneurs to assemble resources to facilitate customer value in a unique manner. In the book Topple, Ralph Welborn calls this a bundling versus unbundling decision. If you decide to be a bundler, you improve customer value by providing multiple services around the desired benefit — such as amazon does with retailing and delivery, making shopping more convenient. Unbundling refers to a focus on a single benefit-delivering capability, such as manufacturing a new organic food product that is clearly differentiated from the preservative-laden portfolio of the Big Food company. You can choose to be a bundler or an un-bundler based on how you want to deliver value to customers. Fourth, audit your own capabilities and identify the 20% that deliver the majority of your value. The capabilities underlying your product or service (skill sets, software, distribution, customer relationships, media channels, process) decay over time, often at an accelerating rate. Ralph points out that entrepreneurs should be creating new capabilities continuously, and making those new capabilities into the 20% that drive explosive growth. This is pure Austrian Capital Theory — identifying the business assets that most contribute to customer satisfaction and keeping them refreshed and up-to-date as customer preferences change. Ralph cites Uber as an example: the new capabilities are mobile connectivity (from carriers), payment transactions (banks and credit card companies) and dynamic GPS and mapping software (from Google and others). These capabilities are: Centered around what the customer wants to do.Taking friction out of what it is they want to do, making it extraordinarily convenient.Orchestrating different capabilities from different types of actors and organizations.Reserving the enabling orchestration capabilities to Uber. The implications for business are to: (i) identify your assets and their half-life — the rate of decay; (ii) identify where to play in your newly understood ecosystem and how to develop the new assets and capabilities to do so. This is a continuing process. Additional Resources "An Ecosystem-Based Development Strategy" (PDF): Mises.org/E4E_77_PDF Ralph Welborn's book, Topple: The End of the Firm-Based Strategy and the Rise of New Models for Explosive Growth: Mises.org/E4E_77_Book

On today's episode of The Sales Evangelist, we're talking to Ralph Welborn, CEO of CapImpact, about ways you can fire up your business ecosystem and grow explosively. Ralph is a co-author of the book Topple: The End of the Firm-Based Strategy and Rise of New Models for Explosive Growth.  He refers to himself as a moth to a […] The post TSE 956: How to Fire Up Your Business Ecosystem and Grow Explosively appeared first on The Sales Evangelist.

Ralph Welborn is the co-author of Topple: The End of the Firm-Based Strategy and Rise of New Models for Explosive Growth. CEO of CapImpact, he specializes in advisory and predictive analytics for new growth models. He is a former head of IBM’s strategy and transformation business in the Middle East and Africa. Sajan Pillai is the CEO of UST Global, leading the company’s founding team of 20 in 1999 to more than 18,000 employees in 21 countries today.

Corporate Innovation, Mid-Level Managers and the New 20% Ralph Welborn has spent over 25 years providing business and technology advisory services to both private and public sector organizations globally. He has held a variety of leadership positions, including CEO of Imaginatik, the market-leading innovation advisory and platform company; leader of IBM's Strategy & Transformation business in the Middle East and Africa; senior vice president at KPMG Consulting; and a cofounder of an e-commerce company.  In this podcast, Brian Ardinger talks with Ralph about his new book Topple: The End of the Firm-Based Strategy and the Rise of New Models for Explosive Growth. The Topple Rate refers to how major companies are failing, and how that is fall is accelerating. Companies are attempting digital transformation efforts, with little success.  Ralph believes we need to avoid running the Red Queen race and learn from the companies having explosive growth. Currently, approx. 20% of a company’s capabilities are driving 70% of value. However, this will not be the new 20% that they will need tomorrow. Companies don’t have to focus on a lot of things to make a big impact. Understand that you should focus your innovation program on the new 20%. We must not look at firm-based strategies anymore. We must engage with emerging business ecosystem to capture new value. Orchestrating capabilities of others.  We must also turn the lens around on the points of friction of our customers. What are the capabilities we need to solve that problem and then, what are the products and services we have that could fit, or what do we need to create? Examine where value is being created and destroyed and where are we going to plant our flag. What are the unique set of capabilities around planting that flag and how are we going to orchestrate our ecosystem to plant the flag. They also discussed why mid-level managers are key to innovation.  To continue the discussion, connect with Ralph at ralph@capimpact.com. or http://www.capimpact.com. or check out his book Topple on Amazon at: https://amzn.to/2Nx4Ylk If you are interested in more discussion on corporate innovation, check out Brian Ardinger’s discussion with Janice Fraser with Bionic at https://insideoutside.io/podcast/ep-84-janice-fraser-w-bionic-solution/ This episode is sponsored by GLIDR. GLIDR software helps you validate that you're going to market with products and business models that drive real value. Check them out at https://www.glidr.io/iopodcast For information regarding your data privacy, visit acast.com/privacy

Corporate Innovation, Mid-Level Managers and the New 20% Ralph Welborn has spent over 25 years providing business and technology advisory services to both private and public sector organizations globally. He has held a variety of leadership positions, including CEO of Imaginatik, the market-leading innovation advisory and platform company; leader of IBM's Strategy & Transformation business in the Middle East and Africa; senior vice president at KPMG Consulting; and a cofounder of an e-commerce company.  In this podcast, Brian Ardinger talks with Ralph about his new book Topple: The End of the Firm-Based Strategy and the Rise of New Models for Explosive Growth. The Topple Rate refers to how major companies are failing, and how that is fall is accelerating. Companies are attempting digital transformation efforts, with little success.  Ralph believes we need to avoid running the Red Queen race and learn from the companies having explosive growth. Currently, approx. 20% of a company’s capabilities are driving 70% of value. However, this will not be the new 20% that they will need tomorrow. Companies don’t have to focus on a lot of things to make a big impact. Understand that you should focus your innovation program on the new 20%. We must not look at firm-based strategies anymore. We must engage with emerging business ecosystem to capture new value. Orchestrating capabilities of others.  We must also turn the lens around on the points of friction of our customers. What are the capabilities we need to solve that problem and then, what are the products and services we have that could fit, or what do we need to create? Examine where value is being created and destroyed and where are we going to plant our flag. What are the unique set of capabilities around planting that flag and how are we going to orchestrate our ecosystem to plant the flag. They also discussed why mid-level managers are key to innovation.  To continue the discussion, connect with Ralph at ralph@capimpact.com. or http://www.capimpact.com. or check out his book Topple on Amazon at: https://amzn.to/2Nx4Ylk If you are interested in more discussion on corporate innovation, check out Brian Ardinger’s discussion with Janice Fraser with Bionic at https://insideoutside.io/podcast/ep-84-janice-fraser-w-bionic-solution/ This episode is sponsored by GLIDR. GLIDR software helps you validate that you're going to market with products and business models that drive real value. Check them out at https://www.glidr.io/iopodcast GET THE LATEST RESOURCES Get the latest episodes of the Inside Outside Innovation podcast, in addition to thought leadership in the form of blogs, innovation resources, videos, and invitations to exclusive events. SUBSCRIBE HERE For information regarding your data privacy, visit acast.com/privacy

The business logic of the past decades no longer applies. A changed competitive world requires a new strategic question: “Where is the value being created — and destroyed — in the ecosystem in which you're engaged, and what do you do about it?”  
 Ralph Welborn, PhD is today's guest. Ralph has held a variety of leadership positions, including CEO of Imaginatik, where he received the European CEO award in 2016; he has been leader of IBM's Strategy & Transformation business in the Middle East and Africa; and senior vice president of KPMG Consulting and is also co-founder of an e-commerce company, today's focus is his truly excellent book: Topple – The End of the Firm-Based Strategy and Rise of New Models for Explosive Growth. 
 Ralph will share specific lessons and insights for every sized organization to make sense of the changed competitive environment, including: 
 What is your ecosystem? — Who comprises it, and what is driving the shifts in value? How, instead of pushing products, do you own a problem, meet a specific customer need and/or tackle specific friction? What are the implications of the new strategic questions on where you play and, most importantly, how you execute? What are the new capabilities critical to do so? Who and how do you engage to orchestrate capabilities to capture the new sources of value in new ways?

Today’s guest has a provocative theory about the business firm as we know it. Ralph Welborn is CEO of CapImpact, a predictive analytics and advisory firm focused on new growth models, and he says the way most businesses do things today isn't the best way to create growth and profit. A former senior executive at both IBM and KPMG, Ralph spent 25 years advising public and private sector firms around the world. He joins the show to share insights from his new book—co-authored with Sajan Pillai—Topple: The End of the Firm-Based Strategy and the Rise of New Models for Explosive Growth. Listen in to learn how the competitive landscape has changed, what it means to look at it through the lens of business ecosystems, and the important questions businesses should be asking themselves when planning their strategies. You can find show notes and more information by clicking here: http://bit.ly/2LOFLp9 

Ralph Welborn is CEO of CapImpact, a predictive analytics and advisory firm focused on new growth models.He is co-author with Sajan Pillai of the new book, Topple – The End of the Firm-Based Strategy and Rise of New Models for Explosive Growth, describing how to look at our changed competitive landscape through the lens of business ecosystems. How is the thinking around ways to drive growth changing in today’s business environment? How are companies applying new strategies to take advantage of explosive growth opportunities?  How does a company identify where to “plant a flag” in a business ecosystem? 1. Where is the value being created and destroy? 2. Planted a flag on a problem to own.? 3. How to mobilize around that problem? 4. How can you orchestrate the assets? Where does the title, ‘Topple,” come from?   How do you deal with fear?    What’s a personal self-talk, mantra, affirmation or self-belief that contributes to your success? Parting a word of advice? How can my listener find out about you? Watch my Celebrity interviews on my YouTube Channel! Go here> https://goo.gl/EA9x6D Connect with Bert Martinez on Facebook. Connect with Bert Martinez on Twitter.