Nikita Devi

Divya Iyer
In the world of strategy, it was easy to see what was going on
Reality was recognizable
Then things started to look funny
Then it was harder to recognize and disjointed
You could still tell what was going on
But it was getting harderand harder
Finally it became impossible
To see what was going on
By looking at things in the conventional way

Author tells that Business strategy is like
Picassos paintings

In the beginning, things were pretty
straightforward. it was very clear what was
happening in the picture. But over time, it
became more difficult to understand the
painting, the message, the pattern until in the
end you were left guessing what Picasso was
painting.
Our job is to figure out the PATTERN
that lies hidden underneath the apparent
chaos on the surface.

Doctors They connect symptoms with the
causes, and use that insight to develop
powerful, on target analyses and
prescriptions to help their patients.

Business Every industry is reshaped by
patterns of strategic change that can
drastically shift profit and power across the
landscape. Sometimes the patterns move
slowly sometimes they move rapidly but
change is always occurring.
PROFIT
PATTERNS
30 Ways to Anticipate
And Profit from Strategic Forces
Reshaping Your Business
ADRIAN J. SLYWOTZKY AND DAVID J. MORRISON


The idea of profit pattern thinking is an
important addition to strategy as it helps to make
sense of a lot of the traditional work done in
making strategies like PEST Analysis, Five
Forces Model and Value Chain.


It is more important to do what is strategically
right than what is immediately profitable.

- Philip Kotler


This book presents 30 patterns that are
changing the landscape of every business.
Understanding them can help you make moves
and countermoves that lead to sustained
profit growth.




They are :-
Mega Patterns
Value Chain Patterns
Customer Patterns
Channel Patterns
Product Patterns
Knowledge Patterns
Organizational Patterns
MEGA PATTERNS
These models do not address any
particular dimension of the activity
(customer, channels of distribution and
value chain), but have an overall and
transversal influence.
They owe their name Mega to their
range and impact of the different
economic sectors and duration.
VALUE CHAIN PATTERNS
It consist of the evolution of relations a
company has with the different levels
of its value-chain: customers,
distribution channels, products and raw
materials.

Should certain tasks be sub-contracted
out or brought back in to the company?
Change the supplier or strengthen links
with him?
CUSTOMER PATTERNS
It concern the RISKS brought about by
changes in customer attitudes, in terms
of the loss or creation of value.

Are all customers profitable?

WHAT are the limits of segmentation?
WHO is the ideal customer?
CHANNEL PATTERNS
These patterns how distribution tendencies
influence value creation.
Distribution channels multiply in line with
consumer segmentation.
They can also reduce in number, as in the
case of French supermarkets, where baker,
dairyman, butcher and fishmonger are all
found in the same shop. The intermediaries in
these channels can similarly appear or
disappear.
PRODUCT PATTERNS
These patterns show how value has
migrated, over the past 15 years, from
the product to other elements, such as
the brand, integrated solutions and
blockbusters.
KNOWLEDGE PATTERNS
As the economy passes from the
fabrication of physical goods to the
application of useful ideas, these
patterns will multiply in the years to
come.
Knowledge gained through the activity
permits the redefinition of this activity,
using information on consumers, products
and internal organisation.
ORGANIZATIONAL PATTERNS
These illustrate the new business paradigm, value-
creation, and the future paradigm, the balance of
attention given to products, customers and internal
and external organisation of the company.
A companys share in value-creation will depend on
two main imperatives:
the system must be perfectly tuned to the
companys strategic plan, and
sufficient energy must be expended to execute
the plan brilliantly.
The common factor in these models is the close link
between the talent of the company and its
customers.
Switchboard Profit Model
Buyers Sellers
Multiple sellers
communicating with
multiple buyers
a high-value
intermediary as the
communication pathways
(the switchboard)
The switchboard reduces
the costs to both buyers
and sellers
Example:

F