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)

Cloud service development (£45M investment, 2018-2020 launch)
Cost efficiencies through outsourced data sets (3-4% savings)
Brazil expansion
Product development (new features to reduce attrition)
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

Strategic analysis requires uncomfortable decision-making under imperfect information
Context matters: understanding organizational dynamics shapes strategy validity
Multiple valid perspectives exist - no single "correct" answer
Recognizing disruptive threats requires continuous market monitoring
Priority ordering affects resource allocation and strategic outcomes

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