An analysis of the delta model framework of strategy

The challenge then is to isolate these detailed metrics, measure the concentrations of cost, revenue and profitability, and learn how to harness these underlying performance factors to improve the profitability of the enterprise as a whole. The Delta Model identifies the core processes of the business and provides a guide for how they need to function differently to achieve different strategic positions.

Execution is not the problem; linking it to strategy is: While these averages are helpful, our research has shown that the true performance drivers can only be identified by de-averaged granular metrics.

The core processes of the company need to be aligned to the chosen strategy in order to make progress against their strategic agenda and avoid a commodity-like outcome. Managing by averages leads to below average performance: Thus, the effort the Organizations have to do is to configure high value-added propositions to customers which will be both creative and unique.

Most companies implicitly execute as if they were pursuing a Best Product commodity strategy. These huge advancements were caused by the internet. In this way we can better propose high-value propositions to our customers. There are three points: A product-centric mentality is constraining; open your mindset to include the customers, the suppliers and the complementors as your key constituencies Since all business are related and dependent on other members of the supply chain, a wider view is needed to see this expanded enterprise, which is the entity of real importance in our strategic analysis.

The Delta Model is a customer-based approach to strategic management. We have to serve the customer in a distinctive way if we expect to enjoy superior performance. Metrics Aggregate Metrics that should be supplemented with Granular Metrics.

The Delta Model

The granular customer analysis is fundamental to complete a sensible customer segmentation. A business can establish an unbreakable link, deep knowledge, and close relationship that we refer to as customer bonding.

Reject the two truisms: It revolves around the concept of bonding and contains four central themes: The center of the strategy is the customer This is the center of the Delta Model, being the customer the driving force for all actions undertaken by the company. The Delta Model contains the following elements: At the heart of management and, certainly, at the heart of strategy, resides the customer.

The Delta Model identifies the core processes of the business and provides a guide for how they need to function differently to achieve different strategic positions capable of continually responding to an uncertain environment.

Both are powerful sources of margin and sustainability. This stage is recognizable by a relationship based on transparency, fairness, and which produces long term benefits for all involved.

Strategic Planning with the Delta Model Framework

Plans are not made to be followed: Satisfaction can only be achieved by working jointly with the customers [5] [12] Arnoldo C. No degree of competent execution can save them from this never-ending treadmill.

The popular wisdom today is that the success of a business can be managed by focusing on several key top-line variables.

The Delta Model -- Toward a Unified Framework of Strategy

If instead we reject this notion, our mind opens up to new alternatives and, since we are no longer in confrontation with our partners, other forms of cooperation can be considered.

Summary of Extended Enterprise Strategic Triangle. The intimacy and connectivity of the networked economy offer opportunities to create competitive positions based upon the structure of the customer relationship.

Best product enables the company to get the edge on competition, which will increase market share. The name of the game is to attract, to satisfy, and to retain the customer. Hax and Wilde believe a firm owes itself to its customers. You win by achieving Customer Bonding Just as the central focus of the management is the Customer, the central focus of the strategy should be Customer Bonding.Delta model (after the Greek letter Delta, standing for transformation and change) is a customer-based approach to strategic management.

Compared to a philosophical focus on the characteristics of a product (product economics), the model is based on consumer economics.

It then proceeds to introduce the Delta Model - a new framework developed by the authors that, we believe, significantly adds to the other two frameworks. The. "The Delta Model: Reinventing your Business Strategy is a work of its time. It builds on well established ideas that put the Mission Statement at the heart of strategic reasoning and expands previous thinking, for example, on the indispensable role of segmentation.

The Delta Model -- Toward a Unified Framework of Strategy Enrique R. Suarez Source: Arnoldo C.

Hax and Dean L. Wilde II. The Strategic Management Frameworks • The Delta Model The Frameworks for Competitive A Resource-Based Approach to Strategy Analysis: A Practical Framework 1.


An analysis of the delta model framework of strategy
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