Updated: May 23, 2020
Organizations are somewhat unclear about how they go about selecting techniques to develop their strategies. Some managers rely on what their consultants say. Others default to methods they have successfully applied in the past. The key to success is selecting the right tool for the job. The strategy tool selected by the organization needs to be consistent with the targeted customer segments to be served. The following are strategy development techniques that are used by many industries today:
Blue Ocean Strategy - seeks to innovate and create new value for customers (Blue Ocean) while at the same time reducing or eliminating costly activities or features that fail to do so.
Experience Co-Creation - is a technique that seeks to understand the interactions an organization has with its customers as a means of understanding and improving where and how value is exchanged.
Profit from-the-Core - is a technique that uses adjacency mapping to identify opportunities in new business growth opportunities that are most closely related to the ‘core’ business.
Open Innovation - notes that knowledge today is widely distributed and that the best R&D ideas cannot be generated exclusively by an organization’s in-house capabilities.
Judo Strategy - takes advantage of speed, flexibility and leverage to beat competitors. It is based upon resource and capability configurations of competitors.
Activity-Based Costing and Time Driven Activity Based Costing - are techniques that allocate financial data to activities and processes in order to accurately assess the costs of individual products, services and customers.