Strategy and Delta Model - Part 1 of 2

In this podcast Ricardo talks about the course of Corporate Strategy that he took at MIT. In the course the focus was the strategic model called Delta Model, where the customer relationship is the cornerstone of any strategy. The course was conducted by Prof. Arnoldo Hax, one of the world's experts in strategy.

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Episode transcript

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Hello, everybody. Welcome to the five minutes PM. Podcast Today. I like to discuss and start the series of podcasts about the course that I did at MIT in that hung just South from Boston. At the end of the courthouse, the course has about 40 people from 15 different countries in different industries. And it's was led by one of the most prominent professors in Strategy two HAX from the Delta model.

And a lot of people asked me two questions. First one, why I'm doing the Strategy course, because I work with project management. So why I'm looking for Strategy because without a good strategy, I will not have good projects. So I need to Lincoln to tie Strategy with projects. And the second thing is that this course is, is it's different. It's different because we use the nontraditional way of looking and strategy.

Like the five forces of Porter, the power off competitors, power of clients. So look in the Strategy like a war, like a war. And it's so interesting. This Delta motto is that they reinvent the Strategy. They focus first on rejected. Climatization sorry for my accent. The reject to commoditize thinks. So we need to look ahead. A lot of people ask me, Oh, and a mining company, for example, is not a commodity.

No, you can't see your business in a different way. Imagine Singapore airlines, they destroyed completely the commodity way of doing business in the air. They create a relationship with their customer that is unique, and this brings them to a more high relationship. And the last topic of HAX concept, it's customer bonding.

What is customer bonding? It's the mutually beneficial relationship based upon and breakable trust and transparency. This, this work together customer is your partner. You are parked or off your customer, each shoe powerful this, because if you look to your competitors', you will think only In thinks that they are working with, but you can break everything in boot, something completely new.

Remember the blue ocean strategy, and this will lead us to the Delta wide Delta because of the triangle. The triangle has to be the parts. The first part, please take in the bottom, right? You can write the best product bottom, right? You can write best product, but on the left you can write Toto customer solution. And in the top you write system lucky, and then how they Strategy travels inside this Model every single company they start with looking for best product.

And the best product will be splitted in two things, low cost and differentiation. So the starting point of most of the companies to look okay, I need to handle with my cost. So I need to produce a low cost. Low cost is different from low price. Low cost is the optimal and best product that can do four, a product or service. Then I travel to the corner on the left total customer solutions.

When I start to engage the customers, and if this engagement, he should be powerful, then I go up to the system. Locking system. Locking is the heaven for all kinds of companies, because if they do the system locking black, for example, or Google or life, for example, Microsoft, they are extremely powerful. The air extremely, it's such a powerful position. The system locking that most of the time, the government, they do not allow a, because you become so powerful for your market.

But in the company side, it's extremely desirable. Two being the system locking. So what we need to do, we need to drive in to travel only the best product. Do we engage the client, the customer with that, we can go up and try opportunities to have a such a powerful product, such a powerful relationship with the client that the client will not think about anybody else, but you, this is the system lucky.

And next week, I like to discuss with you more about how we can travel in this triangle. See you next week with another five minutes BM. Podcast. Bye. Bye.

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