Costumer prepective : strategy is based on a

differentiated value proposition

The costumer perspective typically includes several common measures of the
succesful putcomes from a well-formulated and implemented strategy :
• Custumer satisfaction
• Custumer retention
• Custumer acuisition
• Market share
• Account share
For example, companies as diverse as Southwest Airlines, Dell, WakMart,
McDonald’s, and Toyota have been extremely successful by offering
customers the best buy or lowest total cost in their categories. The objectives
for a low total cost value preposition should emphasize attractive prices,
excellent and consistent quality, short lead times, ease of purchase, and good
selection.
• A third type of value proposition stresses the provision of
complete customer solutions. Good examples of companies
successfully delivering this value proposition are IBM and
Goldman Sachs.
• A fourth generic strategy, called lock-in, arises when
companies create high switching costs for their customers.
Ideally, a proprietary product, ' such as a computer Operating
system or microchip hardware architecture, becomes the
standard for the industry.
 Internal perspective: value is created through
internal business processes
 Internal processes accomplish two vital components of an
organization’s strategy:
- they produce and deliver the value preposition for customers,
and
- they improve processes and reduce costs for the productivity
component in the financial perspective. We group organization
myriad internal processes into four clusters
• 1. Operations management processes
• 2. Customer management processes
• 3. Innovation processes
• 4, Regulatory and social processes
 Operations management processes
Operations management processes are the basic, day-to-day processes by which
companies produce their existing products and services and deliver them to
customers. Operations management processes of manufacturing companies include
the following:
• Acquire raw materials from suppliers
• Convert raw materials to fmished goods
• 1 Distribute fmished goods to customers
• Manage risk
 Inovation processes
Innovation Processes Innovation processes develop new
products, processes, and services, often enabling the company
to penetrate new markets and customer segments. Managing
Innovation includes four sets of processes:
 Identify opportunities for new products and services
 Manage the research and development portfolio
 Design and develop the new products and services
 Bring the new products and services to market
 Regulatory and social processes
Companies manage and report their regulatory and social
performance along a number of critical dimensions:
• Environment
• Safety amd health
• Employment practices
• Community investment