> A strategic framework that helps [[Organisation|organisations]] to understand their environment by [[mapping]] the [[Value chain|value chain]] and showcasing how each component evolves over time.
## Principles
- every business has a [[Value chain]]
- all components evolve
- [[Strategy]] comes from timing - winners know where to innovate, where to differentiate, and where to cut costs
## Value Chain
Every map starts with a user need of what your customer wants to achieve.
Components are drawn as nodes linked by lines representing dependencies between them. We draw then starting from the customers needs that we would like to deliver.
## Visibility axis
Each component from [[#Value Chain]] is positioned on `y` axis corresponding to its visibility to the end-user.
## Evolution axis
Each component from [[#Value Chain]] is positioned on `x` axis corresponding to its evolution or commodization.
|Stage|Characteristics|Strategic Focus|
|---|---|---|
|Genesis|Novel, uncertain, changing|Innovation, experimentation|
|Custom Built|Growing, defined, scarce|Building capability, differentiation|
|Product|Stable, available, competitive|Optimization, market positioning|
|Commodity|Ubiquitous, standardized, utility|Cost efficiency, scale|
The questions you may encounter:
- where should we invest? - Genesis and Custom Built mean differentation
- what should we outsource? - consider commoditized components
- how do we compete? - differentiate on evolving components, optimize the stable ones
- what's changing? - monitor components moving between stages
### Genesis
- it is basically an exploration
- uncertain - ideas are discovered, clients needs are usually uknown
- constantly changing
### Custom built
- it is a growing market that is becoming more defined
- first solutions exists that support custom needs
### Product
(including rental)
- it is stable market and clients understand how to use these products
### Commodity
(including utility)
- fully mature market, where a solutions are widely spread and standards are known and accepted
## Steps
1. Identify User Need
- list users
- needs [gray cards]
2. Map [[#Value Chain]]
- underlying capabilites (e.g. tech) [cards with status color]
- match dependencies
3. Position components on [[#Evolution axis]]
4. Add movement indicators
- predict evolution (e.g. AI impact) [blue arrows]
- [[Meteorology patterns]]
- orient
- [[Doctrine patterns]]
- decide
- [[Leadership patterns]]
- (optional) bounded context (e.g. departments)
5. Analysis