Successful businesses are good at doing two things better than the rest.
- They’re good at creating value.
- They’re good at capturing value created by others.
The best among them are good at doing both simultaneously and consistently. True power lies in knowing what you’re good at right now and where you need to improve.
Beyond the Excel sheets and Powerpoint presentations, your strategy team should be able to answer these three questions.
- Does our business primarily create or capture value? (Our Mission)
- How do we succeed at our primary task? (Our Strategy)
- Which activities & results are necessary for us to succeed? (Our Plan)
Value creators are the disruptors, innovators and technology leaders. They’re the Google’s of the world. These businesses deliver products and services that create whole new markets and industries.
Then there are services such as Yelp or iPod that capture value by building new solution on top of existing technologies.
Before you dig into expert opinions, market analysis or trends, answer these three questions. This has helped me get down to the core of what my business does today and what I need to do to ensure its success in the future.
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