Value Migration

"Quite often, new, small firms introduce the most innovative and powerful business designs and capture most of their industry's value growth."

"Typically, a competitor that triggers a Value Migration shift employs a new business design responding to customer priorities that established competitors had failed to see or had neglected."

"While the Value Migration process creates huge economic vulnerability, it also opens large new spaces of opportunity."

"If the business design is to succeed, its elements must be aligned with customers' most important priorities."

"In the age of business design, success depends on the speed and skill with which competitors understand these designs and improve and adapt them to their particular customers."

"One bellwether indicates the strength of any business design?the customer, the creator of value. "

"Focusing on the metric of Value Migration can spur managers to look forward and confront the new issues critical to the future of their organizations."

"Unencumbered by institutional memory, new entrants and nontraditional players are often most sensitive to emerging customer priorities and most able to craft business designs to meet them."

"Companies that supply alternatives define the competitive field."

"A major external event such as deregulation will create new customer segments and new opportunities for innovative business designs."

"Only with a flexible and innovative business design is it possible to capture value on an ongoing basis."

"Business design reinvention can create value growth by delivering higher-utility offerings to customers."

"In times of turbulence, examine your portfolio of business designs carefully and move swiftly to reallocate resources from the successes of the past to the opportunities of the future."

"Low-cost distribution becomes a powerful engine of value creation when customers grow more sophisticated and products and services lose their differentiation in the marketplace."

"The most successful solutions providers avoid the commoditization of their offerings by adding to the customer's top-line growth and by making the customer organization not only more efficient but also more effective."

"Prior examples of how value has migrated can be extremely helpful in building the patterns relevant to your industry."

"Visit your customers' conventions, not your own."

"Perhaps nowhere can the customer be as great a source of value as in the initial development of the business design."

"Understanding the wrong moves can be as helpful as internalizing the right ones."