Di G Instructors Slide Deck 2 Di G

Di. G Instructor’s Slide Deck 2: Di. G Debrief and Conclusions The Di. G Leadership Game www. digbusinesslearning. com Professor Jean-Claude Larreche Alfred H. Heineken Chair of Marketing, INSEAD jean-claude. larreche@insead. edu www. linkedin. com/in/jclarreche

The Di. G Strategies Four avenues to value creation High Customer Focus Low Strong customer base Low profits Strong customer base High profits Charity Steady Monetization potential Momentum growth Low profits Weak customer base High profits Weak customer base Shaky Greedy Transform or die Not sustainable Business Focus High jean-claude. larreche@insead. edu

Experiential Lessons from the Di. G Simulation Customer Discovery Customer Power Offer Customer Engagement Customer-based Innovation Discovery Mindset Execution Mindset Leadership Talents jean-claude. larreche@insead. edu

Customer-Based Innovation Identify and release self-imposed limits Innovation is creating options: not 1 to 1 but 100 to 1! jean-claude. larreche@insead. edu

Creating Options Through Consumer Discovery Quality Growth Traditional Mindset Consumer Discovery Initiatives Consumer Insights Tests Designs jean-claude. larreche@insead. edu

Customer-Based Innovation Identify and release self-imposed limits Innovation is creating options: not 1 to 1 but 100 to 1! WTP: simple concept needing deep questioning jean-claude. larreche@insead. edu

WTP – Theory $ WTP (Willingness to pay) Customer Value Price Business Value Unit cost jean-claude. larreche@insead. edu

WTP – The Reality $ WTP y Value for customer x WTP x Price Unit cost WTP < Price Number of customers jean-claude. larreche@insead. edu

Customer-Based Innovation Identify and release self-imposed limits Innovation is creating options: not 1 to 1 but 100 to 1! WTP: simple concept needing deep questioning Immediate cost of non-innovation : WTP erosion VFM: customer value delivered is relative to price Customer engagement: the ultimate driver of quality growth jean-claude. larreche@insead. edu

What Leadership Talents? They have appeared under different names: I. Q. E. Q. Focus Exploration Rigor Creativity Convergence Value Capture vs Divergence Value Creation Downtream Upstream Execution Discovery jean-claude. larreche@insead. edu

Creating Momentum for Value Creation Both “Left” and “Right” Contributions are essential for powering growth Ambidextrous Leadership Talents for Quality Growth Key competences for Leaders in the modern global environment! jean-claude. larreche@insead. edu

« Strategist » Leadership Talent Execution BE RIGOROUS! BE FOCUSED! BE ALIGNED! Differentiated Execution Tools Pricing – Mass Comm – i. Comm - Access jean-claude. larreche@insead. edu

« Game-Changer » Leadership Talent Discovery GO EXPLORE! GO TEST! GO LAUNCH! Customer Discovery appears Risky but is Rewarding The « Insights – Tests – Designs » Funnel jean-claude. larreche@insead. edu

Ambidextrous Leadership Talents Discovery GO EXPLORE! GO TEST! GO LAUNCH! Customer Discovery appears Risky but is Rewarding The « Insights – Tests – Designs » Funnel Execution BE RIGOROUS! BE FOCUSED! BE ALIGNED! Differentiated Execution Tools Pricing – Mass Comm – i. Comm - Access jean-claude. larreche@insead. edu

Questions ? jean-claude. larreche@insead. edu

Di. G Key Conception Metrics Insights and WTP jean-claude. larreche@insead. edu

Di. G Conception Metrics Insights 5 year total: from 32 for Team 3 to 62 for Team 2 jean-claude. larreche@insead. edu

Di. G Conception Metrics WTP jean-claude. larreche@insead. edu

Di. G Key Execution Metrics Cost, Price, Margin, Coverage 19 jean-claude. larreche@insead. edu

Di. G Execution Metrics Unit Cost jean-claude. larreche@insead. edu

Di. G Execution Metrics Price jean-claude. larreche@insead. edu

Di. G Execution Metrics Margin (Unit Contribution) jean-claude. larreche@insead. edu

Di. G Execution Metrics Coverage jean-claude. larreche@insead. edu

Di. G Key Results Engagement, Customers, Growth, Earnings jean-claude. larreche@insead. edu

Di. G Results Customer Engagement jean-claude. larreche@insead. edu

Di. G Results Number of Customers jean-claude. larreche@insead. edu

Di. G Results Yearly Growth jean-claude. larreche@insead. edu

And the winners are. . . jean-claude. larreche@insead. edu

Di. G Results Earnings jean-claude. larreche@insead. edu

Di. G Experiential Learnings Team N° : On Strategy (Which learnings from your experience in the Di. G simulation will you try to use in your business? ) Team Name: On Leadership (Which learnings from the performance of your Di. G team will you try to use in your business? ) jean-claude. larreche@insead. edu

Di. G Experiential Learnings Team N° : 1 / CW 6101 On Strategy (Which learnings from your experience in the Di. G simulation will you try to use in your business? ) Strategy based on business matrix Team Name: Ocean On Leadership (Which learnings from the performance of your Di. G team will you try to use in your business? ) Everyone contributed equally The strategy led us in a wrong direction, and Different background makes it interesting we changed it in the process We did not imply our own opinion on the insights jean-claude. larreche@insead. edu

Di. G Experiential Learnings Team N°: #2 / CW 6102 On Strategy (Which learnings from your experience in the Di. G simulation will you try to use in your business? ) Team Name: CARD On Leadership (Which learnings from the performance of your Di. G team will you try to use in your business? ) Time spent on discovery is important; high Consistency of strategy and tactics from one value can be found where you do not year to another expect, go beyond ‘normal’ Segment differentiated offers are important Execution and deployment need to be given the right attention Diverse opinions vs decision making You need somebody overlooking the spendings Enjoy and laugh on the way! jean-claude. larreche@insead. edu

Di. G Experiential Learnings Team N° : 3 / CW 6103 Team Name: KFC On Strategy (Which learnings from your experience in the Di. G simulation will you try to use in your business? ) On Leadership (Which learnings from the performance of your Di. G team will you try to use in your business? ) Impatience to communicate to clients we do Innovation driven (high R&D) team ; not understand enough willing to learn about customers Disregarding too long the unaware is detrimental. Early investment in discovering unaware pays back longer term Consensus approach to decision making. Need to qualify better grounds for decision making Managing the trade off between the product value & driving down the margin Insufficient controversy among the team does not drive smartest decisions. Need to sustain positive tensions Balanced approach to investment in boosters vs offers jean-claude. larreche@insead. edu

Di. G Experiential Learnings Team N° : 4 / CW 6103 Team Name: MMs On Strategy (Which learnings from your experience in the Di. G simulation will you try to use in your business? ) On Leadership (Which learnings from the performance of your Di. G team will you try to use in your business? ) Discovering of true insights from different customer is the key test our patience : maintain the patience we had Having engaged customer is another important key Diversity helps in improving performance resource allocated to Mcomm had no clear impact role of booster is important in creating satisfied and engaged customer jean-claude. larreche@insead. edu

Additional Di. G Experiential Learnings Now that you know the results… On Strategy (Which learnings from your experience in the Di. G simulation will you try to use in your business? ) On Leadership (Which learnings from the performance of your Di. G team will you try to use in your business? ) jean-claude. larreche@insead. edu

Value Creation at 3 Levels Firm Customer Discovery Customer Power Offer Customer Engagement Unit People Discovery People Power Offer People Engagement You Own Discovery Your Power Offer Targeted Engagement jean-claude. larreche@insead. edu

Your Personal Quality Growth Agenda For Your Firm (Which actions will you take to power quality growth for the firm, beyond your unit? ) For Your Unit (Which actions will you take to power quality growth for your unit/function? ) For Yourself (Which actions will you take to power your own quality growth? ) jean-claude. larreche@insead. edu

Thank You and Best Wishes! Professor Jean-Claude Larreche Alfred H. Heineken Chair of Marketing, INSEAD jean-claude. larreche@insead. edu www. linkedin. com/in/jclarreche