Lessard Consulting
Risk Management and
Communication Solutions.
Communication Solutions.
Value Circle Analysis
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White space can be classified into multiple categories. Cell A
(uncertain demand) captures products/services already created for
established market needs, but that has not yet been recognized by
customers. Cell B is most challenging and potentially the most
rewarding, encompassing ideas that firms have not discovered for
needs that customers have not yet recognized. (Starbucks’ creation of
coffee shops in the 1980s is a great example of how a business
uncovered monstrous latent demand.) Cell C reflects existing
demand. Cell D captures existing needs that are known and that
companies have either not recognized or have failed to accommodate,
perhaps because the cost is too high.
Risk management and communication recommendations should not
only be substantive to help your client in everyday business (cell C),
but should also create value in cells B and D.
(1) The value circle analysis is based on a model used by business professors at
the University of Notre Dame’s Mendoza College of Business in Indiana and
referred to in the Harvard Business Review.
(uncertain demand) captures products/services already created for
established market needs, but that has not yet been recognized by
customers. Cell B is most challenging and potentially the most
rewarding, encompassing ideas that firms have not discovered for
needs that customers have not yet recognized. (Starbucks’ creation of
coffee shops in the 1980s is a great example of how a business
uncovered monstrous latent demand.) Cell C reflects existing
demand. Cell D captures existing needs that are known and that
companies have either not recognized or have failed to accommodate,
perhaps because the cost is too high.
Risk management and communication recommendations should not
only be substantive to help your client in everyday business (cell C),
but should also create value in cells B and D.
(1) The value circle analysis is based on a model used by business professors at
the University of Notre Dame’s Mendoza College of Business in Indiana and
referred to in the Harvard Business Review.
This Diagram (1) provides a visual representation of the overlap
between internal organizational strategy and external variables that
influence strategic direction. Understood from this perspective, your
organization can choose to develop functionalities that provide more
substantive risk management to your client/customer as well as
functionalities to your client’s end user or other customers and
stakeholders. This strategic insight will provide a distinct competitive
advantage to your organization as well as to better meet the needs of
your client and their end-users or stakeholders.
The goal of the strategic insight is to improve growth, sales and profit of
your organization by developing functionalities that create value for your
clients and distinguish your organization from your competitors. The
approach to developing this strategic insight is to understand value as it
relates to what your client values. Your organization can utilize the value
circle analysis to identify how your client’s decision making is influenced
or facilitated and ways that additional value might be created.
For your client, overall value is a relative judgment: gain ("What 'I' get in
measurement of time and and/or money.") vs. cost ("What 'I' give up in
terms of time and money.).
The Your Organization Circle represents your company’s view of how
your clients perceive your product/service.
The Competitor Circle represents your company’s view of how your
clients perceive competitors products and services.
The Customer Circle represents your company’s view of functionalities
that the customer wants.
The circles demonstrate capturing “value.” There is a certain amount of
value that clients seek, and there is a certain amount of value that each
competitor provides for its customers.
Area A is the exclusive intersection between the value created by Your
Organization and that desired by your client. It is the value provided to
your clients (that they want) and it is unique to your organization.
Area B is the intersection between all three circles. This is where
desired dimensions of client value are provided by all firms in the
industry. This is essentially a set of features / benefits that all or most
competitors have in common. While these features may be essential to
enter the game (commonly referred to as table stakes), they do not
provide a basis for a competitive advantage.
Area C represents the Competitors differences with your organization. It
reflects the unique value provided by competitors.
Area D: “The Swamp” This label reflects value that has long since
passed its usefulness, yet is still provided by firms within the industry.
The metaphor implies that some companies get mired in providing value
which is costly to provide, however this value is no longer wanted or
needed by the customer.
Area E: The White Space. Area E captures the notion of a large,
undefined space that contains some error as well as some possible
murkiness, but also contains much opportunity. It suggests that there is
some degree of elasticity in the client’s definition of value, or that there
are needs as yet undiscovered.
The white space is an insightful view of latent or unmet needs that others
can not see. It is a source of business opportunity and sources of
growth for your organization. This area of the model can be used by
your organization to focus attention on the primary issue: what value can
your organization create that will be important to customers yet different
from what competitors can or will do?
There are important distinctions to be made among needs in the white
space. Consider the table that follows:
between internal organizational strategy and external variables that
influence strategic direction. Understood from this perspective, your
organization can choose to develop functionalities that provide more
substantive risk management to your client/customer as well as
functionalities to your client’s end user or other customers and
stakeholders. This strategic insight will provide a distinct competitive
advantage to your organization as well as to better meet the needs of
your client and their end-users or stakeholders.
The goal of the strategic insight is to improve growth, sales and profit of
your organization by developing functionalities that create value for your
clients and distinguish your organization from your competitors. The
approach to developing this strategic insight is to understand value as it
relates to what your client values. Your organization can utilize the value
circle analysis to identify how your client’s decision making is influenced
or facilitated and ways that additional value might be created.
For your client, overall value is a relative judgment: gain ("What 'I' get in
measurement of time and and/or money.") vs. cost ("What 'I' give up in
terms of time and money.).
The Your Organization Circle represents your company’s view of how
your clients perceive your product/service.
The Competitor Circle represents your company’s view of how your
clients perceive competitors products and services.
The Customer Circle represents your company’s view of functionalities
that the customer wants.
The circles demonstrate capturing “value.” There is a certain amount of
value that clients seek, and there is a certain amount of value that each
competitor provides for its customers.
Area A is the exclusive intersection between the value created by Your
Organization and that desired by your client. It is the value provided to
your clients (that they want) and it is unique to your organization.
Area B is the intersection between all three circles. This is where
desired dimensions of client value are provided by all firms in the
industry. This is essentially a set of features / benefits that all or most
competitors have in common. While these features may be essential to
enter the game (commonly referred to as table stakes), they do not
provide a basis for a competitive advantage.
Area C represents the Competitors differences with your organization. It
reflects the unique value provided by competitors.
Area D: “The Swamp” This label reflects value that has long since
passed its usefulness, yet is still provided by firms within the industry.
The metaphor implies that some companies get mired in providing value
which is costly to provide, however this value is no longer wanted or
needed by the customer.
Area E: The White Space. Area E captures the notion of a large,
undefined space that contains some error as well as some possible
murkiness, but also contains much opportunity. It suggests that there is
some degree of elasticity in the client’s definition of value, or that there
are needs as yet undiscovered.
The white space is an insightful view of latent or unmet needs that others
can not see. It is a source of business opportunity and sources of
growth for your organization. This area of the model can be used by
your organization to focus attention on the primary issue: what value can
your organization create that will be important to customers yet different
from what competitors can or will do?
There are important distinctions to be made among needs in the white
space. Consider the table that follows: