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PRESENTATIONTO***BUSINESSPLANCOMPETITIONPARTICIPANTS
AT-CZG002-120199Coyne-MSTR
Today
Developinganidea
Assessingyouridea
Describingyourstrategy
Acoupleofwrinkles
1
AT-CZG002-120199Coyne-MSTR
Developinganidea
Whybrainstormingusuallyfails
3frameworks
Producttrees
4killerquestions
The5Csmodel
2
AT-CZG002-120199Coyne-MSTR
Unexpectedusers
Heavyusers
Potentialusersblockedbyoneobstacle
Potentialuserswhodifferinonewayfromcurrentusers
Creativebundlingtoeliminatecomplements
Radicaldistortionsofkeyvalueequationcomponents
Newusesforexistingproducts
Newusersforexistingproducts
Newwaystomeetexistingneeds
Stimulatingnewneeds
...radicallymodifyexistingproducts
...generateradicalincreasesinexistingproductsales
...developnewproducts
Searchforkillerproductideasbyexploringopportunitiesto...
Productideatree
3
AT-CZG002-120199Coyne-MSTR
Whatwouldittaketomakemyproductathalfthecost?
Radicaldistortionofkeyvalueequationcomponents
CanIreducebyhalfordoublemydistributioncost?
CouldIoffermyproductat5timesthecostifithadgreaterfeature/function?
CouldIdoublemyproductdepthorcutbreadthinhalf?
Whatinput,ifreducedbyhalfthecost,wouldallowmetocutmyprice20%?
Question
Existingexample
SouthwestAirlines
PCclones
Personalshopper
Mailorder
Premiumicecream
PetSmart
BabySuperstore
Zincinbatteries
Low-ratecreditcardsforhighcreditrating
Potentialidea
6packsofsingle-use,lightweight,disposableumbrellas
Discountrealtors
Abankwithhomecashdelivery
Homedecoratorsuperstore
Industrialpawnshopforsmallbusinesslending
Productideatree
4
AT-CZG002-120199Coyne-MSTR
1. Whatisthebiggesthassleaboutthisproduct?
Forwhatsubgroupofusers...
Forwhatsubgroupofusages...
Etc.
2. WhatdotheBatmanmovie,rollerblades,andBenandJerry’shaveincommon?
3. HowwouldIdothingsdifferentlyifIhadperfectinformation?
4. Wherearethesearch,orderentry,andtrackingcostsalargepercentageoftotalcosts?
4killerquestions
5
AT-CZG002-120199Coyne-MSTR
Rawmaterialsuppliers
Volume
Costs
Concentratesurplusfromsuppliers
2
Costs
Competeforsurplus
1
Client
OEM
Costs
Concentratesurplusfromchannels
2
Retailer
Capturesurplusfromcustomers
3
Price
Cooperateto capturesurplus
5
Createnewdemand
4
The5Csmodel
6
AT-CZG002-120199Coyne-MSTR
Today
Developinganidea
Assessingyouridea
Howpowerful?
Howlarge?
Describingyourstrategy
Acoupleofwrinkles
7
AT-CZG002-120199Coyne-MSTR
Createanewstandardofperformancethatpreviouslywasnotrecognizedasimportantbutbecomesoneofthecriticalbuyingfactorsforatargetmarket
Invent:createanewstandard
Acceleratepaceofinnovationinacriticalperformancedimensionby 3-5years
Innovate:radicallyimprovean existingimportantstandard
Unique performance
Performanceenhancement
8
AT-CZG002-120199Coyne-MSTR
*ComparedtoTheGap
** ComparedtoIBMandCompaq
Percentbelowcompetitors
50
50
20
20
HomeDepot
Amazon
Staples
OfficeDepot
OldNavy*
CompUSA
Dell**
Gateway**
Commodore
AmericaWest
PeopleExpress
E-Plus
Orange
Mobilcom
Retailers
PCmanufacturers
Airlines
Telecom
IomegaZipDrive
Other
Average pricediscountsof30-45%
20-50
20-80
40
50
30
40-50
50-70
60-70
30-50
20-30
15
Price-basedvaluepropositionsmustofferextremediscounttomarket
9
AT-CZG002-120199Coyne-MSTR