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