Brief videos viewable in 6 subsections of Concepts/Overview
In these brief Video Summaries, DPV Group founder Michael Lanning introduces some of the key DPV concepts.
Many businesses supplying to complex customer-chains struggle to differentiate; they often have been commoditized by customers’ Purchasing functions insisting on standardized specs that can be met by multiple suppliers; as a result, these businesses may chronically underperform, with lackluster growth and profitability.
Typically, these businesses focus product development and marketing primarily on their immediate customers, primarily reacting to Purchasing and sometimes Technical functions. Yet these functions often do not share their most valuable insights, and may not be as aware of some emerging trends as their Marketing & Sales functions. A central goal of these supplier-facing functions is often to keep the suppliers’ offerings commoditized.
As a result, these businesses typically have a superficial, incomplete, inaccurate understanding of what their customers’ customers would actually value most. They often are not familiar enough with the experiences of downstream entities to understand what improved experiences those entities would potentially value most.
They therefore often have little insight into what their immediate customers could and should deliver downstream, most profitably. These businesses may develop products and services that respond dutifully to their customers’ requests, but are often disappointed in actual volume and pricing results. They remain subject to price pressures from their immediate customers, and rarely identify major new differentiation opportunities early enough to capitalize on them fully.
Many businesses are links in a chain of suppliers and customers. Value Delivery shows managers how to understand and creatively manage this chain, not as the product/service make-sell process depicted by the popular frameworks of supply chain and value chain. Rather, Value Delivery enlightens managers to see a Value Delivery Chain: a symbiotic group of relationships focused on delivering complementary and integrated Value Propositions across that whole chain.
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Managers thereby frequently realize the awesome power of delivering propositions to the primary entities, the most crucial customers, such as end-users, who are often more distant than the more immediate customers on whom many businesses focus too exclusively. At the same time, superior supporting Value Propositions must be delivered, in complementary fashion, to these more immediate, intermediary customers.
This perspective can provide a strategically focused guide to the creative redesign of entire Value Delivery Chains. DPV is therefore highly relevant to fundamental market strategy, as well as supply chain management. It also applies to any manager trying to grapple coherently, and not just reactively, with the internet phenomenon impacting many markets, and confusing managers, throughout the world today.