Process to define an idea

Acronyms:
P&S: Product and Strategy
GTM: Go-to-Market
BP & C: Business Plan & Capital

T&D: Technology and Data

O&M: Operations and Management
P&O: People and Organization

(1) Describing a valuable problem to solve

Aligned and focused solution space (P&S)

Objective
Establish a refined and prioritized final ”solution space”

Activities
Host a workshop to refine and prioritize the final ”solution space”

Solicit input to synthesize a collective direction and ambition for the

business

Translate vision and strategy into winning ideas – facilitated workshops

Synthesize existing strategy and compare vs. market needs

Solicit input to synthesize a collective direction and ambition for the business

Foster alignment among leadership team of areas and/or concepts to

address

Host a workshop to refine and prioritize the final ”solution space”

Process to define an idea 1

 Deliverables
Value propositions offered

Vision aspiration

Customer segment served

Resources, partners and channels leveraged

Economic model and commercial viability

Grounding market insights (GTM)

Objective
Identify biggest macro patterns and trends (industry, geography)

Activities
Identify general market patterns and trends

Outline general market structure including competitors and other players &
stakeholders involved

Create outside in view of market

Structural attractiveness of markets

Lay out the matrix of markets and decide depth and breadth of market
analysis

Provide high-level or deep dive view of market fundamentals using external

and EAP tools

Profit pools and growth pockets

More detailed view of growth by product and/or geographical segment

Mapping of industry profit pool and growth across value chain segments to
create a “growth heat map”

Impact of trends & disruptions

Process to define an idea 2

 Identification of top macro-economic and industry-specific trends impacting
industry

Incorporation of impact into market growth scenarios and momentum case

Ethnographic-based competitive insights

Utilize ethnographic research is conducted in the customer’s native

environment to observe, analyze, and probe for unmet needs orpainpointsas
they interact with a product or service

Adjacent markets in existing value chains or new ones

Synthesis of attractive adjacencies based on: Market size, growth,

profitability, market trends

Additional market identification based on PE/VC activity, M&A scan,

and patent searches

Deliverables
Overview of most relevant and strategically impactful trends

Competitive analysis (GTM)

Objective
Collect and assess a list of key competitors to identify areas of opportunity

Understand competitive intensity and dynamics

Identify areas of opportunity, white spots and competitive advantages

Gather intelligence for GTM plan

Activities
Define and categorize list of key competitors (incl. potential future
competitors)

Assess competitor offerings and capabilities

100 point split of offerings/capabilities

Process to define an idea 3

 Describe their value propositions and key features, and overall customer
experience

Understand competitor footprint (e.g., size) and customers they serve

Size

For each competitor assess and map:

Market position (strategic play), geographic footprint and value

proposition

Internal capabilities and offerings, e.g. features, technology, org

resources, distribution channels

Go to market strategy, e.g. communication channels, budget

Customer relationship, e.g. customer feedback, customer profiles, churn

rates

External relations, e.g. partners, advisors

Financial KPIs over past 5 years, e.g. revenue, cost, EBITDA

Identify future strategic moves of key competitors and implications for a

potential new business

Understand competitive intensity and dynamics

Identify areas of opportunity, white spots and competitive advantages

Gather intelligence for GTM plan

Deliverables
Holistic list of competitors with potential strategic moves and areas of
opportunity for client

Characterized problem to solve (P&S)

Objective
Describe the challenge from both a business and user/customer perspective
(including any technical feasibility considerations) and potentials drivers of

Process to define an idea 4

 value

Short list of problems to solve (that new business will address)

Create a granular description of the problem through multiple lenses (e.g.,

business, customer, technology, regulation) and by different means (e.g.,
insights, current-state journey)

Leverage this description during the collision workshop

Activities
Understand potential competitive offerings

Describe customer pain point, needs and overarching insights

Map current-state customer journey with key moments

Describe the challenge from both a business and user/customer perspective

(including any technical feasibility considerations) and potentials drivers of
value

Review client fact base including any existing client research and
documentation

Document any early solution and business concept hypotheses (from CST,
Firm’s SMEs, or client)

Formulate early understanding of customer behavior, pain points and

motivations via ethnographic research

Test problems for size, intensity, suitability of existing alternatives

Describe value drivers and major needs/pain points (e.g., pervasiveness,

depth) to address first

Leverage experts via interviews

Deliverables
Short list of problems to solve (that new business will address)

Create a granular description of the problem through multiple lenses

(e.g., business, customer, technology, regulation) and by different means

Process to define an idea 5

 (e.g., insights, current-state journey) - use it during the collision workshop

(2) Creating Concept & Business Model

Idea generation - Collision workshops (P&S)

Objective
Leverage divergent thinking to expand the team’s view of ‘what’s possible’
and identify novel areas of opportunity

Create a prioritized list of business concepts

Interject energy and enthusiasm into organization and potential solutions

Activities
Make sure to do the research before the workshop

Select the panel of experts that can participate in the session and provide
insight and direction

Assemble a multi-lens fact based – e.g., collide customer, competitor,

business model, regulatory lenses as well as cross-industry inspirational
exemplars/analogues

Hold 1 or 2-day ideation workshop (e.g., Collision or Reimagination Lab

format)

Synthesize and down select to priority ideas

Sit on investment committee to finalize ideas

Deliverables
Multi-lens fact-base including customer, competitor, business model,
regulatory insight as well as cross-industry inspirational exemplars/analogues

Prioritize short-list of related business concepts

Directional business model and experience model for new business

Process to define an idea 6

 Directional Business Model for New Business (P&S)
Review Business model canvas

Objective
Develop a directionally correct business model for prioritized ideas.

Identify the performance potential of my business vs. my aspiration

A comprehensive one-pager used to express a business idea and key

underlying assumptions

Activities
Collide customer, competitor, business model, regulatory lenses to create
breakout concepts in an energizing format

Run a collision breakout groups then review assigned valuable problems to

solve and rewrite as they see fit, run several rounds of ideation sessions

Prioritize all idea clusters based on feasibility and value

For top priority ideas, complete business model templates and flesh out the
details of the idea

Diligence informed approach into ideation – combing four lenses of insight

like an outside investor would

Value Creating Strategic Choices through 4 lenses: financial, market,

operating model, competitive advantage

Combine four lenses of insight like an outside investor would: financial,

market, operating model, competitive advantage

Include:

Value propositions offered

Customer segment served

Resources, partners and channels leveraged

Economic model and commercial viability

Process to define an idea 7

 Deliverables
Holistic business model for prioritized ideas

Ecosystem Strategy, Insights & Diagnostics (GTM)

Objective
Understand customer-centric networks in which products and services are
offered by various players

Identify roles the new company can play based on its critical assets

Foresee future trends and risks

Activities
Run a comprehensive overview of existing ecosystems

Map out relevant value chain(s) and create overview of all players in each
value chain step

Map market trends and dynamics, incl. regulatory environment, impacting the
ecosystems

List key strategic considerations, incl. potential roles for the company based
on its critical assets, e.g. inspirational examples, capability gaps

Research key principles of designing the mechanics of a successful

ecosystem and approach implementation

Deliverables
Overview of value pools (from Business & Growth team) to define main value
chains

Overview of existing ecosystems and key players in the market incl. trends

Future State journey and key features (P&S)

Objective

Process to define an idea 8

 For each prioritized idea define the North Star vision

Activities
Describe, at a high-level, the future state journey including valuable
problem to solve, key epics and features, key moments, and resulting value
(for both users/customers and the business)

Create prototype (e.g., low-res wireframe, mid-fi screens) to represent a few

select signature moments for the concept and galvanize conviction and refine
vision

Use early versions of the prototype to test and refine with users and
customer as well as stakeholders

Deliverables
Prototype with selected signature moments

Description of a future state journey with key moments and respective user
value

Shortlist of related business concepts or potential new

business ideas or concepts (P&S)

Objective
Develop an ordered list of filtered, validated ideas that would be worth
investing in.

Synthesize and prioritize pipeline of ideas for new business concept

Key Activities
Synthesize and down select to priority ideas from
Collision/Design/Hackathon session

Sit on investment committee to finalize ideas

Synthesize and select priority ideas from ideation session

Take these ideas to an investment committee to get a go/no-go

Process to define an idea 9

 Finalize pipeline of supported ideas for new business builds

Deliverables
Synthesized and down-selected list of priority ideas

Clear go/no-go decision from investment committee

Pipeline of supported ideas for new business builds

Top level P&L for business concept (BP & C)

Objective
Expand on the early, yet holistic business model and financials for the new
ideas

Early yet holistic business model

‘North star’ vision and financials

Activities
Develop reverse income statement

Leverage and track key assumptions

North star visions can take many forms – but they are always specific and
measurable

Create early yet holistic business model

Define ‘north star’ vision and financials

Include results from ecosystem market diagnostic and assess the

Ecosystem market sizing

Questions to address:

What is required to create value in the business?

Impact on value from growth and ROIC improvement,

Financial benchmarking to peers,

Process to define an idea 10

 Portfolio decomposition

Momentum case vs. investor expectations

Am I playing in profitable markets that will deliver growth over time?

Structural attractiveness of markets,

Profit pools and growth pockets,

Impact of trends & disruptions,

Ethnographic-based competitive insights,

Adjacent markets in existing value chains or new ones

What does it take for me to win in these markets?

Competitive positioning,

Requirements to shape industry conduct,

Ownership advantages in the portfolio,

Ability to compete in adjacent markets

Deliverables
Financial overview of idea (e.g., ROIC)

Clearly identified value pools and trends in market

Competition analysis

(3) Understanding Assumptions for Business Case

Process to define an idea 11