As your company's CEO, you are the chief strategist, designer and evangelist for your business model. The clarity you create around your target customer, your value proposition and the differentiated activities your organization delivers is critical.
If your business model isn't clear - or even defined - then you’re not ready for an investment in an analytics strategy. Put down your checkbook, and Don't Pass Go.
The CEO's Default Business Model
Is This Me?
- "Our large accounts trust us to help them in a whole bunch of new ways." (We react to large clients)
- "We do a little bit of X, but then we won Y so we did that, and now there's a possibility of getting Z. Z is going to be huge." (We react to emerging opportunities)
- "Our competitors are doing A and we need to respond to that." (We react to competition)
3 Challenges with the Default Business Model
So What's the Strategic Expectation of a CEO?
Unfortunately, you own this problem, and it's yours alone.
It can't be delegated. No external vendor can solve it. Others may have ideas and input, but the business model is yours to build, evangelize and prioritize. It's not a democracy.
You Are the CEO of a Commodity Lemonade Stand
The Competitor CEO's Lemonade Stand
The Business Model Magic Trick
- The Promise
- "Joe, we are going to kill the stand across the street. They have no idea what's coming."
- "We’re going to do it with less sugar and smaller cups."
- "And we're going to charge four dollars a cup, and they'll pay it."
- The Customer & Value Proposition
- "Crazy, right? But why will they pay so much, you're wondering?"
- "Well, I noticed something. I noticed that the adults who stop really just like to help little kids succeed in business. I couldn't tell you why, but this is the exact kind of thing adults care about. That and cat videos. We'll target both."
- "Lemonade is not where the value is for the adults. The kids across the street are selling lemonade. But anyone can sell lemonade. We're selling something else, and it has more value to the customer. We're selling a feeling to them, a feeling of having helped children prepare for the world to come. That's our value proposition."
- "Are you with me, Joe? Do you see it?"
- The Differentiated Activity
- "Well, this is what we're going to do:"
- "You'll make one sign that says: Support Tomorrow’s Business Leaders"
- "You'll make another sign that says: We give 10% to the pet rescue shelter."
- "This will be funny: don't even put the word lemonade on the signs."
- "And spell things wrong. I'll bet adults even like that, too. They'll think it's charming - and we aim to make our customers happy."
- "If you need help, I'll be sitting over here by the till."
Before Your Analytics Strategy
The Bartlett System Analytics Lifecycle
There is no point deploying analytics to find the cheapest cups and sugar for your lemonade, if the CEO across the street knows where the magic is - or how to deliver it better than you.