Thesaurus of the ROUNDMAP™

During the development of the body of knowledge of the ROUNDMAP™ 4-dimensional framework, we found that existing words or concepts ─ often originating from a 2D/3D world ─ did not cover our 4D perception while more contemporary concepts needed more elaboration. So, we decided to develop our own classification system.

After a customer has commited to a purchase  ─ the exchange of value for money ─ he/she enters into an Understanding of Trust™, requiring the company to deliver on promise and satisfy the need of the customer within the realm of their expectations.

If the company succeeds to satisfy their needs, the relationship may develop into an Alliance of Trust™, provided that the customer has a perception of future value or aspires to the meaning attached to the brand.

The Ark of Commerce™ is a metaphor for the entire business enterprise, consisting of three key aspects:

  • Directives
  • Operatives
  • Contributives

Directives determine the goal, strategy, objectives, and tactics. Operatives determine the resources, capabilities, functions, processes, and services. Contributives determine the purpose of the business, offering value to customers at a profit.

A framework in which we’ve mapped all four elemental business models, Product Centricity, Customer Centricity, Resource Centricity, and Network Centricity, into one two-by-two matrix while adding a fourth dimension, Network Orchestration, to Tracy & Wiersema’s Value Discipline framework.

References: + Business Model Matrix

According to John P. Kotter “Any company that has made it past the start-up stage is optimized for efficiency rather than for strategic agility. The very structure we have created to operate efficiently and effectively today gets in the way of what we need to do to innovate for tomorrow.”

Growth has a natural tendency to decline, unless we manage to extend it, through adaptations or innovations, or endure it, by transforming the business. ROUNDMAP provides serveral insights into how to shift or regenerate a business model, or respond to disruption.

We’re developing the Business Model Compass™ into a canvas-like tool.

A four-step framework, originally identified by Steve Blank, to discover and validate that you have identified a need(s) that customers have, have built the right product to satisfy that customer’s need(s), tested the correct methods for acquiring and converting customers, and deployed the right resources in the organization to meet the demand for the product.

References: + Steve Blank

We coined the phrase in 2014 when we needed to describe the fourth step in the customer development process: customer acquisition, customer creation, customer retention, and .. customer extension.

Customer Extension focuses on organizing customer behavior to get customers to return more often and spend more over the course of their customer lifetime.

Compare: A product extension in the computer software business could be an upgrade or revision, and other possible product extensions are product repositionings and additions to existing products. Or a brand extension, pointing to using the samen brand name in a different product category (spin-off).

All economic growth comes from the process of ‘creative destruction’, as stated by economist Joseph Schumpeter, which he and others described as ‘business cycles’.

We created a model to describe how technological innovation disrupts existing technology, leading to social disruption of incumbents, and ultimately, requires social innovation.

To help critically assess the customer’s business in a way the customer hasn’t fully appreciated on their own, and help them identify new ways to grow, to make money, to save money. Allowing you to build a business case and articulating a business case to your customers for why they need not buy your solution, but why they need to change their behavior in a way that’s going to improve their business.

References: + Gartner Research

The leverage that occurs from a customer-centric business model, implying a focus on a select group of customers ─ typically 15% ─ for which you are able to fulfill more of their needs and as a result are likely to spend more with you ─ expressed by their Customer Lifetime Value or CLV. Additionally, research confirms that it costs five times as much to acquire new customers than to grow revenue from your existing customer base.

ReferenceS: + Infographic customer retention, + Book Customer Centricity

The cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output decreasing with increasing scale. At the basis of economies of scale there may be technical, statistical, organizational or related factors to the degree of market control.

References: + Investopedia

What made us create the ROUNDMAP™ can be captured in one word: EQuitability. It means being fair, just, and honest. We believe businesses have a social responsibility to their stakeholders, which may include employees, customers, patients, viewers, fans, shareholders, animals, and nature. Profit is good, if good is done.

We are strong advocates of EQuitable Growth: growth aspirations that do not extent beyond what could reasonably be perceived as honest, fair, and just towards the company’s stakeholders.

Experts use a Gap Analysis to examine the gap between the current growth rate and aspired growth. Provided that the growth goals are achievable, closing the growth gap often involves examining a series of gaps that could occur throughout the business operations.

A growth gap is a revenue shortfall that challenges the organization to consider its growth aspirations, to assess the current growth activation initiatives, to fix hidden gaps and to create new growth.

The Growth Gap ─ the gap between aspired growth and current growth ─ may be related to inadequate considerations of the opportunities (attainability), the capacity or capability of the organizational infrastructure to support successful execution (serviceability), adversarial forces inside or outside the organization (Porter’s Five Forces), or caused by a series of hidden gaps througout the enire operation. To understand what causes the growth gap an extensive examination may be needed.

A purchase isn’t just a sale, it is the Moment of Commitment™ in which both parties, buyer and seller, commit to the exchange of the anticipated value for money. A purchase should never be perceived as an end, rather the start of a relationship of trust and to make sure that the actual or perceived value ─ from promises made during the acquisition stage ─ is delivered and that the customer can genuinely experience, consume, or utilize that value.

The Growth Gap ─ the gap between your firm’s growth aspiration and growth activation ─ may be related to inadequate considerations of the opportunities (attainability), the capacity or capability of the organizational infrastructure to support successful execution (serviceability), or adversarial forces inside or outside the organization (Porter’s Five Forces).

To understand what causes the growth gap in your situation, you’ll need to assess the entire operation.

We are strong advocates of EQuitable Growth: growth that is fair and just to a firm’s stakeholders ─ directors, employees, customers, environment, community, government, financers, creditors, suppliers, and shareholders.

The third Essential Business Model™ of the Business Model Matrix™, based on a service-driven resource that meets a certain customer’s need, and then trying to get as much of that resource utilized. Success is measured by the average percentage of the maximum capacity used over a period of time. In competitive terms, this would represent a share of utilization.

With a 97% brand awareness, Denny’s is a household name for restaurants in the US. The 65 year old brand was a digital laggard but managed to transform itself into a digital-aware business: “Our goal was to not only get our relevance back, but to become significant again in the lives of consumers.”

Relevance is about catching a prospective customer in the moment as they are looking to fulfill a want or need. Significance is about forging a strong relationship with a customer driven by the meaning attached to the brand or some other perception of future value.

References: Story of Denny’s

After a customer has commited to a purchase ─ the exchange of value for money ─ he/she enters an Understanding of Trust™.

Picture of Edwin Korver

Edwin Korver

Architect of ROUNDMAP™ - Advancing Grandmastership of Business™ ✪ Business Model Matrix™ ✪ Polymath ✪ Generalist ✪ Systems Thinker ✪ Board Member, CEO CROSS-SILO BV

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.