It's Not Luck - Eliyahu M. Goldratt [67]
“I suspect that we can do the analysis for each stage, and as we are coming closer and closer to the consumer we will get more powerful solutions. Of course, the implementation will become more involved, we will have to convince the intermediate links to collaborate.”
Have I lost them? I’d better try to answer Jim’s question quickly.
“The real interesting question is, how many Current Reality Trees should we write if we are serving two different markets? What do you think?”
“Two, I guess.” Brandon decides to participate.
“And if these two markets have overlap, in other words, it is not so clear cut where one market ends and the other starts?”
“Still two I think.”
“And if in one market we could look at it as two groups of clients, where the only difference between them is that one group has, on top of all the UDEs of the other group, some additional UDEs of their own? What then?”
“It’s interesting how you’re distinguishing between markets, according to their UDEs. But to answer your question, I still say two.”
Jim nods in agreement.
“I think it’s a mistake. Look at it this way. If we build only one tree, still distinguishing which group has which UDEs, we can adopt our offering to be comprised of two components. One that solves all the common UDEs and an additional component that solves the additional UDEs.
“From our point of view, since the changes are in the periphery and not in the physical product, we will tend to look at it as one product. But look from the eyes of the market. For the group with the additional UDEs the expanded offer is much more valuable. And they will be willing to pay a higher price.”
“Very smart, Alex. That’s how you generate the segmentation.” Jim seems pleased with my answer. Finally.
Brandon is still nodding his head, “Fascinating.”
I decide that the time has come to go for the throat, “So can I assume that my companies are off the hook?”
“You mean, that we should stop all activities to sell your companies?” Jim smiles at me.
“Yes. For the time being at least.”
“Alex, be realistic,” Brandon uses his patronizing tone again. “Your plan of action is very innovative, and we are all for it. But don’t tell me that you haven’t noticed the weakness.
“First, what guarantees that when you finish the analysis of the market we’ll not find that you and your competitors are already addressing the market’s core problem? Second, even when it turns out that you aren’t, what guarantees that you will be able to address the market’s core problem? Maybe it has nothing to do with your offering. Third, even if the core problem of the market relates to your offering, who said you will be able to implement changes that will affect it? Maybe the required changes are outside your control or require major changes in the product itself?”
Now I see why Brandon is in the powerful position that he is. I don’t think that I could grasp it so quickly. There’s definitely no way I’d be able to pinpoint, on the spot, all the weaknesses. That’s impressive.
“That’s not to say,” he continues, “that we think that you don’t stand a chance. You might succeed. The printing company is proof that sometimes it might work.”
“Are you willing to take the risk? If I have a chance to succeed and you don’t give me the time, you might be selling a gold mine for pennies.”
“We’re not taking any chances,” Jim explains to me. “Anyhow, in the next few weeks no major activities are scheduled. By then you’ll know if your scheme has a chance of working. Keep us updated. If it turns out that you can effectively address the core problem of a company’s market, we’ll know what to do. Remember, we didn’t have any problem adjusting to the success in the printing company. And we won’t have any problem handling any other such successes either.”
“No, we won’t,” Brandon assures me. “Just remember to keep us in the picture. Good work, Alex. Excellent work.”
No, it wasn’t a waste of time. Not the meeting and not the meticulous work that we did to develop the ideas I presented. Now it all depends