# 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