Market-Creating Value Propositions — A Systemic Approach to Strategic Agility

According to Steve Denning, strategic agility involves a systemic approach that can create new markets (new customers) for both existing products and services and new ones that will enjoy little competition and thus strong demand and growth. This approach is referred to as market-creating value propositions that are defined by four components — Need, Approach, Benefits per Costs, Competition (NABC):

- Identify the need: Study and find the unmet needs of both the customers (including the end users) and the non-customers, and quantify the needs (how big are they?). Check also the complementary products and services that are consumed alongside your own (opportunity for bundling products).

- Approach: Develop a secret sauce or your own entry barrier with your market-creating innovations, and refine the core of the idea while testing it in action. For example, develop digital competency (that can enable moves into new sectors quickly), build on existing strength (while doing business in a different way which can eventually help the business set foot in new markets), and scale up (develop the capability to operate at scale).

- Benefits per costs (for both producers and customers): Identify how and how much improvement your solution will make in the life of your…