Edge Strategy: A New Mindset for Profitable Growth

Edge strategy acknowledges that the boundaries defined by a product do not typically mark the beginning and end of the journeys that initially prompted customers to engage. These journeys often start before a company actually sees the customer and tend to continue well after they have transacted.

Part of the reason edges can be simultaneously higher return and lower risk is that the risk is paid for elsewhere.

In all of these edge examples, the common theme is that the system that supports the transition space creates leverage.

Does a customer buy a flat-screen TV because he wants to own an electronic device? Or rather because he wants to sit on his couch and consume entertainment? Is the mission of a trip to the grocery store the acquisition of items for the pantry? Or might the underlying mission be a hot meal for the family?

The idea with enterprise edges is to exploit foundational assets in ways that were not foreseen when they were developed to support the core business.

The first problem is that few (if any) companies are able to sustain core dominance over the long term. The second, bigger problem is that by definition, this route to success doesn’t even apply to most companies.

Our belief was that if we kept putting great products in front of customers, they would continue to open their wallets. —Steve Jobs, cofounder and CEO of Apple

What mission is my customer ultimately hoping to accomplish with my product and would he or she give me permission to help more toward this end?

To find an edge opportunity, we propose starting with a different set of questions: What do our different types of customers want (or need)? What could or should our solution include? Which of our assets would others value and why?