56 lines
2.1 KiB
Markdown
56 lines
2.1 KiB
Markdown
|
# Chapter 12: The Scenario
|
||
|
|
|
||
|
|
## Core Focus
|
||
|
|
|
||
|
|
A practical exercise in applying Wardley Mapping. Readers analyze a subsidiary company's direction and recommend priorities to the executive board (45-minute exercise).
|
||
|
|
|
||
|
|
## The Company: Phoenix
|
||
|
|
|
||
|
|
Software system for monitoring data centre power consumption to identify efficiency improvements.
|
||
|
|
|
||
|
|
**Key metrics**:
|
||
|
|
- £123M revenue (2016), 43% European market share
|
||
|
|
- 6,277 customers across Europe
|
||
|
|
- Proprietary analytics engine based on decade of best practices
|
||
|
|
- 90%+ customer satisfaction but 9% attrition rate
|
||
|
|
- £301M European market, £3B applicable market
|
||
|
|
|
||
|
|
**Threat**: US competitor using cloud-based SaaS entered Europe, growing from <3% (2015) to estimated £25M (2016).
|
||
|
|
|
||
|
|
## Current Strategic Priorities (as proposed by management)
|
||
|
|
|
||
|
|
1. Cloud service development (£45M investment, 2018-2020 launch)
|
||
|
|
2. Cost efficiencies through outsourced data sets (3-4% savings)
|
||
|
|
3. Brazil expansion
|
||
|
|
4. Product development (new features to reduce attrition)
|
||
|
|
5. Marketing campaign (market share 43% -> 65%)
|
||
|
|
|
||
|
|
## Organizational Tensions
|
||
|
|
|
||
|
|
- Legacy CIO (original founder) vs. newer Chief Digital Officer
|
||
|
|
- Company transitioning from startup to mature organization
|
||
|
|
- Acknowledged threat from cheaper Chinese sensors (currently inadequate)
|
||
|
|
|
||
|
|
## The Exercise
|
||
|
|
|
||
|
|
Rather than providing answers, readers must:
|
||
|
|
- Evaluate whether priority ordering serves long-term success
|
||
|
|
- Develop alternative rankings if disagreeing
|
||
|
|
- Prepare board communication
|
||
|
|
- Tolerate discomfort of decision-making under uncertainty
|
||
|
|
|
||
|
|
## Critical Tensions
|
||
|
|
|
||
|
|
- Legacy vs. Innovation
|
||
|
|
- Market expansion vs. core improvement
|
||
|
|
- Cost reduction vs. differentiation
|
||
|
|
- On-premise licensing vs. hybrid delivery models
|
||
|
|
|
||
|
|
## Key Takeaways
|
||
|
|
|
||
|
|
1. Strategic analysis requires uncomfortable decision-making under imperfect information
|
||
|
|
2. Context matters: understanding organizational dynamics shapes strategy validity
|
||
|
|
3. Multiple valid perspectives exist - no single "correct" answer
|
||
|
|
4. Recognizing disruptive threats requires continuous market monitoring
|
||
|
|
5. Priority ordering affects resource allocation and strategic outcomes
|