|
 The Delta Model
is a strategy (organizing) framework that was developed by Dean Wilde,
along with other members of Dean & Company, and Arnoldo Hax of
the MIT/Sloan School of Management. It is aimed at assisting managers in
the articulation and implementation of effective corporate and business
strategies.
The emergence of the Internet, with the
previously unimagined potentials for communication, and the technologies
surrounding e-business and e-commerce, made available some new
options tools that allowed the feasibility of new business approaches. Hax
and Wilde II integrate the
Competitive
Advantage and Value Chain
frameworks from Porter with the
Resource-Based
View on the Firm and complement those with new Extended
Enterprise perspectives
and with offering Total Customer Solutions.
The Delta Model contains the following
elements:
-
Strategic
Triangle: used for defining strategic positions that
reflect fundamentally new sources of profitability (three
strategic options: best product, customer solutions, and system
lock-in),
-
Aligning these
strategic options with a firm's activities and provides
congruency between strategic direction and execution (three
fundamental processes are always present and are the repository of
key strategic tasks: operational effectiveness, customer
targeting, and innovation),
and
-
Adaptive
processes: core processes of the company must be aligned to the
chosen strategy in order to make progress against the strategic
agenda and avoid a commodity-like outcome. The Delta Model
identifies the core processes of the business and provides a guide
for how they need to function differently to achieve different
strategic positions capable of continually responding to an
uncertain environment.
-
Metrics (Aggregate Metrics that should be
supplemented with Granular Metrics).
Hax and Wilde believe a firm owes
itself to its customers. They are the ultimate repository of all the
firm’s activities. At the heart of management and, certainly, at the
heart of strategy, resides the customer. We have to serve the
customer in a distinctive way if we expect to enjoy superior
performance. The name of the game is to attract, to satisfy, and to
retain the customer.
The intimacy and connectivity of the
networked economy offer opportunities to create competitive
positions based upon the structure of the customer relationship.
A business can establish an unbreakable
link, deep knowledge, and close relationship that we refer to as
customer bonding. These bonds can be directly formed with the
customer, or indirectly formed through the complementors that the
customer wishes to access.
Both are powerful sources of margin and
sustainability. The bonds represent investments made by customers and
complementors in and around the business’ product.
Compare with The Delta Model: Competitive
Advantage |
Value Chain |
Resource-Based
View |
Core Competence Prahalad
|
Porter Competitive Forces
| Just-in-time |
TDC matrix |
Outsourcing |
Impact/value framework |
Strategic Thrusts |
Bricks & Clicks |
Twelve
Principles of the Network Economy
More management models
|
Summaries of 2,000 management methods