June 18, 2023

Arnoldo Hax - Delta Model of Customer Centric Strategy

 

Strategy is the most central issue in management. It has to do with defining the purpose of an organization, understanding the market in which it operates and the capabilities the firm possesses, and putting together a winning plan (the product and the segment of the market to serve).  The most dominant approaches to strategy making  are Michael Porter’s "Competitive Strategy" and the "Resource-Based View of the Firm," popularized by Gary Hamel and C.K. Prahalad. Arnoldo Hax argues that they define strategy as a way to achieve sustainable competitive advantage. This line of thinking could be extremely dangerous because it puts the competitor at the center and establishes success as a way of beating your competitors. 


The Delta Model  puts the customer at the center. By doing that it allows us  pursue a unique and differentiated customer value proposition. Many years of intense research at MIT, supported by an extensive consulting practice, have resulted in development of powerful new concepts and practical tools to guide organizational leaders into a completely different way of looking at strategy, including a new way of doing customer segmentation and examining the competencies of the firm, with an emphasis on using the extended enterprise as a primary way of serving the customer. This last concept means that we cannot play the game alone; that we need to establish a network among suppliers, the firm, the customers, and complementors – firms that are in the business of developing products and services that enhance our own offering to the customer. Illustrated through dozens of examples,  the Delta Model will help readers in all types of organizations break out of old patterns of behavior and develop effective strategy to capture adequate customer base to sustain the business/organization. 

Preview Google Book

https://books.google.co.in/books?id=ROSTnjmTjxQC   


Applying the Delta Model in Higher Education


Enrique R Suarez

If Educational Institutions are to achieve success in the marketplace, they must begin to think about their business strategy in new ways. Traditional competitive approaches that rely on product differentiation do not produce optimal results, nor do they take advantage of new sources of profitability that the connectivity of a networked economy offers. Too often, they focus the attention in the wrong place. To survive and prosper today, Educational Institutions must shift their attention from products to customers and create a business plan based on: •The innovative restructuring of your customer relationships •Segmenting your customers more creatively •Delivering a value proposition that places the customer at the center of your strategy

https://www.academia.edu/15611831/Applying_the_Delta_Model_in_Higher_Education


The Delta Model — discovering new sources of profitability in a networked economy


Arnoldo Hax

2001, European Management Journal

https://www.academia.edu/26014734/The_Delta_Model_discovering_new_sources_of_profitability_in_a_networked_economy



Prof. Arnoldo Hax is from industrial engineering.

https://news.mit.edu/2023/arnoldo-hax-dies-0531


https://corporatefinanceinstitute.com/resources/management/haxs-delta-model/



 

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