The Profit Zone: How Strategic Business Design Will Lead You to Tomorrow's Profits

builds on itself.

How can we really add value to the customer?

In value migration, customers move from A to B, and the profit zone moves from A to B with them. The incumbent stays at A. The newcomer builds a business design to go to B. Market value shifts from the incumbent to the newcomer. Investors endorse the newcomer, because that is where the profit growth will be.

honest and persistent customer dialogue will always open new opportunities for profit growth. It will also create enormous frustration among your competitors.

don’t go into these customer dialogues asking yourself, “What do I need to know?” Ask the right questions, such as: “What am I afraid to find out?”

The customer selection dimension of a business design describes the company’s chosen customer set. A business has the opportunity to choose and to segment its customers based on the customer set to which it is best suited, or the one it is best able to serve. A business may change the customers it…

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The first step for any business leader is to ask the crucial questions: • How does profitability happen in my business today? • How will it happen in the foreseeable future?

key question

CEO of Hewlett-Packard, has an invaluable perspective on reinventing: “The single biggest problem in business is staying with your previously successful business model . . . one year too long.”