Create greater impact with Simplified Strategy
Most businesses face the same pain point: despite talented people, hard work and sophisticated strategies, business goals are not met. In the newest HBR Professor Felix Oberholzer-Gee introduces a back-to-basics solution: Simplified Strategy.
His proposition is based on a well-known truth that human-beings and businesses want to create value for themselves. Simplified Strategy is about:
Identifying value drivers of the key stakeholders: customers, employees, and suppliers
Choosing the value drivers that are worth focusing on
Making the value drivers alive in an everyday customer, employee and supplier experience.
As a result, businesses will create more value for all the stakeholders and achieve enduring financial success. I will now focus on what Simplified Strategy means in the innovation and marketing context.
Simplified Strategy in innovation and marketing context
Simplified Strategy means selecting fewer and only those initiatives that will create more value to customers (end-users). As an outcome, companies will have happier and more loyal customers whose willingness to pay (WTP) has increased. A value-focused company searches new ways to increase WTP in every single customer touchpoint. For example, Apple can charge a price premium because they as raised the customers’ WTP by designing elegant brand and products that are easy to use.
Oberholzer-Gee also stresses the benefits of focusing on value creation over value capture (how to make money from the value the business has created). As value-focused businesses concentrate more on customer needs and increased value creation, they frequently offer new solutions that go beyond their core offering. New products enhance value capture opportunities because they allow businesses to extend their profit pools from one offering to another. The shift from Apple from PCs to all sorts of devices and apps is an excellent example.
About consumer value creation
As widely evidenced by marketing academia, all human-beings want to create value for themselves; they seek to fulfill their aims and desires in life or in a certain situation. Most often something is preventing them from doing it or living the way they want. Therefore, the consumers have ‘a job-to-be-done’ for brands and products, quoting Professor Clayton Christensen.
Five steps to take value drivers into action
Consumers want to use brands and products that can help them achieve their goals and desires, i.e., create the most value. In order to be among ‘the chosen and loved ones’, the businesses need to go through a few simple steps.
Identify value drivers, i.e., those brand and product attributes and benefits, that help consumers to accomplish their aims and living according to their values. Rank them based on consumer insights and data. Look at different consumer segments and examine how their value creation preferences differ.
Understand how good you are vs. your key competitors: in which value drivers you can win the customer heart, mind, and soul.
Examine how different value drivers are connected in consumer value creation (1+1 > 2).
Choose those bundles of value drivers that you can and want to own. This is where your resources and energy will be directed to.
Implement your value drivers in the customer experience as new products, bundles of products and services and communication.
Simply try it out!
The beauty of Simplified Strategy is that it is down-to-earth and easy to implement. Any marketing or innovation team can give a try with a limited effort. The reward is attractive: joy from creating more meaningful brands and products and lasting financial success.
Easy start with Cambri’s tool
Cambri’s mission is to help people and brands shine. Our super-simple-to-use research tool enables you to use expert market research methods, in order to identify your consumers' value drivers. Additionally, you will understand how your brand or product is positioned vs. your competitors and in respect with the value drivers. You will learn how to grow effectively!
Example of value drivers analysis from Cambri insights and concept testing tool:
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