NSS_GPS induces a startup to commercialize its idea by educating entrepreneurial strategy and providing ten scaling tools for chosen strategy. Show me the conversation of CEO of AV startup company in Korea using this NSS_GPS tool to set its strategy and operational tools.
1. Strategy
TREE is composed of two types of nodes: CLASS (noted as capitalized) and its "instances" (noted with quotation ""). All CLASS can be branched to either CLASS or instances. Only one instance can be chosen from the class it branched out from. Starting from a ROOT node, TREE is branched to AGENT and ENVIRONMENT (type: CLASS).
AGENT is branched to INVESTMENT and ORIENTATION classes. INVESTMENT is branched to "execute" and "control," and ORIENTATION is branched to "collaborate" and "compete." Overall AGENT class has four instances by choosing one from each INVESTMENT and ORIENTATION. MIT professors Scott Stern and Erin Scott, named the 2 by 2 combinations of INVESTMENT and ORIENTATION's instances: ("execute" and "compete") as disruption, ("control" and "compete") as architectural, ("execute" and "collaborate") as value chain, ("control" and "collaborate") as intellectual property strategy.
ENVIRONMENT is branched to INDUSTRY_CLOCKSPEED and INDUSTRY_TREND classes. INDUSTRY_CLOCKSPEED is branched to "fast" and "slow", INDUSTRY_TREND is branched to "up" and "down".
A set of four instances from these classes is defined as one STRATEGIC_CHOICE. For instance, Facebook's STRATEGIC_CHOICE was "control, compete, fast, up", Amazon's STRATEGIC_CHOICE was "execute, compete, fast, up".
Intellectual property strategy focuses on gaining control of innovations through patents and trademarks, and collaborating to reduce costs and has examples like Harry Potter, gettyimages, xerox, DOLBY, INTELLECTUAL VENTURES, Genetech. Value chain strategy aims to be the preferred partner in a slice of an industry's value chain through strong execution and collaboration and has examples like Foxconn, PayPal, madaket, mattermark, DRIZLY, STRATACOM. Disruption strategy targets underserved segments and uses iteration and learning to expand and has examples like NETFLIX, Zipcar, salesforce, amazon, skype, oDesk. Architectural strategy creates an entirely new value chain by controlling a key resource or interface that coordinates multiple stakeholders to provide new consumer value and has examples like facebook, AngelList, ebay, Ford, Etsy, Dell. Pivoting happens in CTRL_SEG which affects OPS_SEG in the long run.
2. Tool
Tools are classified to atom_supply (A1_processify, A2_Automate), bit_supply (B1_Professionalize, B2_Collaborate, B3_Acculturate), customer_demand (C1_Segment, C2_Evaluate). Using the decision tree of each tool below, NSS_GPS induces a startup to commercialize its idea by providing ten tools that either updates marginal utility or belief or wealth. A1_Processify, B1_Professionalize, A2_Automate, A3_Platformize can update marginal utility, B3_Acculturate, C1_Segment, A4_Replicate, A5_Capitalize can update belief, A5_Capitalize can update wealth.
### Tool C1_Segment
1. **Are you selling into a beachhead market?**
- Yes: Move to step 2.
- No: Identify and target a beachhead market.
2. **Is the beachhead market saturated?**
- Yes: Move to step 3.
- No: Continue to sell into the beachhead market.
3. **Expand to an adjacent market.**
- Successful: Return to step 2 for the new market.
- Unsuccessful: Reevaluate market selection and strategy.
### Tool A1_Processify
1. **Execute the process. Does it work well enough?**
- Yes: Move to step 2.
- No: Tweak the process and return to step 1.
2. **Standardize the process.**
- Done: Continue to monitor for efficiency.
- Not Done: Identify issues and return to step 1.
### Tool B1_Professionalize
1. **Observe organizational performance. Any failures or shortcomings?**
- Yes: Move to step 2.
- No: Continue with current team and processes.
2. **Diagnose the organizational deficiency.**
- Identified: Move to step 3.
- Not Identified: Further investigate the issue.
3. **Hire a professional to address the deficiency.**
- Successful: Return to step 1 to observe new performance.
- Unsuccessful: Reevaluate the diagnosis and potential hires.
### Tool B2_Collaborate
1. **Do you have potential partners in the value chain?**
- Yes: Move to step 2.
- No: Build internal capabilities.
2. **Can you share value without losing competitive advantage?**
- Yes: Establish a collaboration.
- No: Reevaluate potential partners.
### Tool A2_Automate
1. **Do you have a well-defined process for a task?**
- Yes: Move to step 2.
- No: Work on task standardization.
2. **Is the process predictable and debugged?**
- Yes: Move to step 3.
- No: Refine and debug the process.
3. **Do you have metrics to measure the process?**
- Yes: Move to step 4.
- No: Establish relevant metrics.
4. **Is there a process owner?**
- Yes: Automate the process.
- No: Assign a process owner and then automate.
### Tool B3_Acculturate
1. **Do you have a defined company culture?**
- Yes: Move to step 2.
- No: Define and communicate culture.
2. **Is the culture being maintained during scaling?**
- Yes: Continue scaling.
- No: Reinforce culture through regular communication.
### Tool A3_Platformize
1. **Does your business model allow for a platform structure?**
- Yes: Move to step 2.
- No: Focus on product excellence.
2. **Can you serve multiple customer segments?**
- Yes: Build a platform to cross economies of scale.
- No: Reevaluate the business model.
### Tool A4_Replicate
1. **Is your process refined and documented?**
- Yes: Move to step 2.
- No: Refine and document the process.
2. **Can the process be replicated in different locations or settings?**
- Yes: Move to step 3.
- No: Make necessary modifications.
3. **Replicate the process and measure outcomes.**
- Successful: Continue replication.
- Unsuccessful: Reevaluate and modify.
### Tool A5_Capitalize
1. **Do you need significant capital to scale?**
- Yes: Move to step 2.
- No: Use existing resources to scale.
2. **Are you willing to give up control for capital?**
- Yes: Seek external investment.
- No: Explore bootstrapping or slower growth.
### Tool C2_Evaluate
1. **Do you have set milestones and KPIs?**
- Yes: Move to step 2.
- No: Establish milestones and KPIs.
2. **Are you meeting your milestones and KPIs?**
- Yes: Continue scaling.
- No: Identify problems and adjust strategy.