General Discussions & Updates

Here we address all matters related to BizBigPic, except those related solely to the theory. As with the other posts, discussions will take place in the comments section. However, matters of higher relevance for the community will also be mentioned within the post's body, which will be updated as a result. Therefore, please make sure to check back regularly.

To All Participants

We would like to thank all of you who participate in our discussions (even the silent ones who only read the comments). We hope that you find the BizBigPic experience useful and entertaining, and that you'll stick around for our future exciting developments. Thank you!

To All of You That Spread the Word

We would like to thank all of you that help us spread the word about BizBigPic. Thank you! Any mention or link to us is highly appreciated.

Comments Moderation

We reserve the right to remove inappropriate or purely promotional entries.

Technological Platform

Why a blog? We looked into other technological platforms, such as forums and wikis, and decided that a blog platform would best serve this community in its incipient stages. However, we are open to suggestions and we appreciate any comments that you might have. Thanks.

Legal

Copyright: 2006-2009 BizBigPic & Cristian Mitreanu. All rights reserved.

Trademarks: Name and logo "BizBigPic," Slogan "Toward Enduring Success," Name and logo "RedefiningStrategy.com"

Patents: We are in the process of patenting a method and a system based on the theory introduced here.

(In other words, as with any book, you can ONLY use this theory to improve your own personal decision-making process. However, there are a couple of advantages. First, you don't have to buy a book. Second, but more important, you can interact with the author and the community of readers. It's like being in a 24/7 seminar!)

Comments

[Erik Monsen]

In reading through this theory of business, while it does address how exisiting businesses can adapt their strategies, it does not appear to address the creation of new entrepreneurial businesses and new entrepreneurial business units. In other words, this theory does not appear to address entrepreneurship. Thus, there appears to be a fundamental gap in this fundamental theory that I am not sure how to fill.

[Cristian]

Hi Erik,

To achieve and sustain its Ofmos Portfolio Alignment and be fundamentally healthy, an organization must either adjust its Focus or adjust its Center. In practice, it is more common to see organizations attempting to adjust their Center, which means adding and/or deleting ofmos to/from their ofmos portfolios.

Since an ofmos is basically defined by an offering and a set of customers, the notion of "adding new ofmos" encompasses a wide range of entrepreneurial initiatives--adding breakthrough offerings to the offerings portfolio, entering new markets with existing offerings, entering new markets with new offerings, merging/acquiring a new organization (which brings in new offerings and markets), etc.

Definitely, it is important to discuss/categorize all available options for “adding new ofmos” (most of which are entrepreneurial initiatives), but at this stage I thought that it would be a good idea to keep the theory introduction simple (10 steps) so we can first discuss its validity.

Let me know if I addressed your concern. Thanks for participating.

Cristian | BizBigPic

[Michael Aschenbach]

Actually, this model seems quite applicable to entrepreneurial innovation and the process of dreaming up new businesses (offerings to markets). As an author and futurist, I am particularly interested in the "idea industry" and the process by which communication propagates a new idea.

This model would suggest progressive commoditization as the idea becomes more widely known, borrowed, and adapted. Seth Godin's theories presented in "Unleashing the Idea Virus" suggest a seemingly opposite concept, that the more people that use/know an idea/product the more valuable it becomes, what is known as the "network effect."

I explore some of these ideas in my new book, VISION 3000, particularly in Chapter 8, Wealth Economics. The whole text is previewable for free at: www.emergingvisionmedia.com

What are your thoughts on how ideas grow in value vs. how they become commoditized? This is a central question for all advanced post-industrial societies, particularly the United States, where innovation is our main asset.

[Cristian]

Hi Michael,

In fact, an offering's value (for the customer) evolution and its commoditization are intertwined. One does not exist without the other. They are the two dimensions defining the Offering Map (see chapter 3). One is the "Customer's Problem Solving Behavior," which indicates the commoditization levels; the other is the "Offering's Impact Level," which indicates the value levels (in previous incarnations of this theory, the label was actually "Value Level").

Commoditization is a result of knowledge accumulation (see chapter 2). A higher level of commoditization means that a higher level of knowledge about the offering is available to the customer. As a result, the customer is able to better employ the offering, extracting more value from it.

In chapter 3, the commoditization trajectory (the gray dotted arrow) shows how the increase in commoditization correlates with an increase in impact level (value). A more rigorous graphic representation of this trajectory can be found on slide 15 of the presentation "The Strategy Pyramid," which can be downloaded at http://www.redefiningstrategy.com/StrategyPyramid.pdf .

With regard to your point "innovation is (or should be) an advanced society's main asset," I completely agree. Commoditization has a positive direct impact on customers (by allowing them to extract more value from offerings), but a negative direct impact on vendors (increased competition, lower margins, etc), which indirectly affects customers. Without innovation, this "circle" leads to a downward spiral that can significantly affect a society.

Great points! Thanks for participating. Cristian | BizBigPic