thomas ritter - book launch @ cbs

1Alignment Squared – Book Launch

© Ritter 2014

Thomas Ritter

Professor of Market Strategy and Business Development

Department of Strategic Management and Globalization

Academic Director

CBS Competitiveness Platform

Kilevej 14A, DK-2000 Frederiksberg

+45 3815 2121 – ritter@cbs.dk

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2Alignment Squared – Book Launch

© Ritter 2014

Square 1:Business Objectives Square

2 1

4 3Bus

ines

s P

rofit

Business Purpose

Sustainable businesses

Unsustainable businesses

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3Alignment Squared – Book Launch

© Ritter 2014

Square 2:Business Model Square

What?(value propositions)

How?(value demonstrations)

Who?(customers)

Which?(capabilities)

Novo Nordisk is a global healthcare company with 90

years of innovation and leadership in

diabetes care. The company also has leading positions

within haemophilia care, growth

hormone therapy and hormone

replacement therapy.

Danfoss is a global leader focused on energy-efficient solutions that save energy and costs, and reduce CO2 emissions. The company’s wide range of products and services are used in areas such as cooling food, air conditioning, heating buildings, controlling electric motors and powering mobile machinery. The company is also active in the field of solar and wind power as well as district heating and cooling infrastructure that targets entire cities and urban communities.

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4Alignment Squared – Book Launch

© Ritter 2014

A business model describes the waya firm earns its profits

What?(proposition)

How?(demonstration)

Who?(customer)

Which?(capability)

Pu

rch

asin

g

Pro

du

cin

g

Co

mm

erci

al.

Solution

Service

Goods

Cu

sto

mer

A

Seg

men

t I

Dis

trib

uti

on

KAM

Call center

e-business

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5Alignment Squared – Book Launch

© Ritter 2014

A FMCG firm

Pro

du

ctio

n

Dev

elo

pm

ent

Mar

ket

Res

earc

h

Vending machine

CoolersProduct A

Off

tra

de

On

tra

de

Seg

men

t 1

KAM

Mass comm

Events

Consultents

Seg

men

t 2

Seg

men

t 3

Product BProduct C

Replenishment

B2B

B2C

x

x

x

x

x

x

x

x

x

x

x x

x x

x

x

xx

xx

xxx

x

xx

x

xx

x

xx

xWhat?

(proposition)

How?(demonstration)

Who?(customer)

Which?(capability)

6Alignment Squared – Book Launch

© Ritter 2014

Growth options

What?(value propositions)

Wh

o?

(customers)

Custom

er 1 at t1

Value proposition 3

Value proposition 1

Value proposition 2

Custom

er 1 at t2

X

X

Value proposition 4

X

XMore selling

Price selling

Up selling

Cross selling

Custom

er 1 at t2

X

X

Competitive growth

Acquiring customers from competitors

(customer take-overs)

Substantial growth

Convertingnon-customers

(customer onboarding)

New

custo

mer seg

men

t

X

X

X

New value proposition X X X

7Alignment Squared – Book Launch

© Ritter 2014

Developing business models

Shaping new value propositions

Shaping new customers

Shaping new capabilities

Shaping new value communications

A B C D E

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4

5

c

b

a

IIIIII

X

X

X

X X X X

X

X X

X

XX

X

X

X X XX

X

X

X

X

X

X

X

What?(proposition)

How?(demonstration)

Who?(customer)

Which?(capability)

Rethinking non-existing links

Rethinking existing links

Rethinking existing value propositions

Rethinking existing customers

Rethinking existing capabilities

Rethinking existing value communications

8Alignment Squared – Book Launch

© Ritter 2014

NEVER STOP COMPETING!

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