# CONS Framework + Strategy Synthesis The CONS framework analyzes how operations create value. When combined with entrepreneurial strategy ([[🗄️🧠scott]] stern's class) types, it reveals that different ventures need different evidence at the nail stage. ## Core Framework ``` Capability? Needs? ╲ ╱ Deliverable? ↔ Sellable? ╱ ╲ Solutions? Offering? ``` ## Key Insight: Evidence Standards Vary by Strategy **Component Innovations (IP/Value Chain):** - Serve EXISTING customers with COMPONENT innovations - Must show immediate value and profitability - Evidence: Revenue, contracts, profitable pilots **System Innovations (Disruptor/Architectural):** - Serve NEW customers with SYSTEM innovations - Must prove new behaviors/markets possible - Evidence: Engagement, behavior change, network formation --- ## 🍔 McDonald's [VALUE CHAIN] ``` Capability? Needs? Assembly line Quick meals ╲ ╱ Deliverable? ↔ Sellable? ╱ ╲ Solutions? Offering? 15-sec burgers Fast food ``` **Strategy**: Component innovation for existing fast-food market **Nail Evidence**: Profitable from store #1 with proven throughput ## ✈️ JetBlue [DISRUPTOR] ``` Capability? Needs? Point-to-point Budget travel ╲ ╱ Deliverable? ↔ Sellable? ╱ ╲ Solutions? Offering? High utilization Low fares ``` **Strategy**: System innovation disrupting legacy carriers **Nail Evidence**: New customer segment choosing JetBlue over incumbents ## 🚗 Uber [DISRUPTOR] ``` Capability? Needs? Matching algorithm Instant rides ╲ ╱ Deliverable? ↔ Sellable? ╱ ╲ Solutions? Offering? Network density Push button→get ride ``` **Strategy**: System innovation creating new market behavior **Nail Evidence**: SF riders/drivers changing behavior (OK to lose $/ride initially) ## 🏥 MinuteClinic [VALUE CHAIN] ``` Capability? Needs? CVS locations Minor ailments ╲ ╱ Deliverable? ↔ Sellable? ╱ ╲ Solutions? Offering? Nurse protocols Walk-in care ``` **Strategy**: Component innovation within existing healthcare **Nail Evidence**: Profitable per visit from day 1 ## 👗 Zara [ARCHITECTURAL] ``` Capability? Needs? Vertical integration Fresh fashion ╲ ╱ Deliverable? ↔ Sellable? ╱ ╲ Solutions? Offering? 2-week cycles Weekly drops ``` **Strategy**: System innovation redefining fashion retail **Nail Evidence**: New shopping behavior (frequent visits, buy-now mentality) ## 📰 Yedioth [VALUE CHAIN] ``` Capability? Needs? Weekly routes Retailer efficiency ╲ ╱ Deliverable? ↔ Sellable? ╱ ╲ Solutions? Offering? Data analytics 95% fill rate ``` **Strategy**: Component innovation improving distribution **Nail Evidence**: Reduced returns, higher margins for retailers ## 🚚 Amazon [ARCHITECTURAL] ``` Capability? Needs? Everything store One-stop shopping ╲ ╱ Deliverable? ↔ Sellable? ╱ ╲ Solutions? Offering? AI + logistics Selection + speed ``` **Strategy**: System innovation creating new retail ecosystem **Nail Evidence**: Customer lifetime value despite initial losses ## 🏢 Walmart Response [VALUE CHAIN] ``` Capability? Needs? 4,700 stores Omnichannel shopping ╲ ╱ Deliverable? ↔ Sellable? ╱ ╲ Solutions? Offering? Store-as-DC 2-hr pickup ``` **Strategy**: Component innovation leveraging existing assets **Nail Evidence**: Profitable pickup service using current infrastructure ## 🏭 Nokia Resilience [IP STRATEGY] ``` Capability? Needs? Supply visibility Business continuity ╲ ╱ Deliverable? ↔ Sellable? ╱ ╲ Solutions? Offering? Multi-sourcing Zero downtime ``` **Strategy**: Component innovation (risk management tool) **Nail Evidence**: Measurable reduction in disruption costs --- ## Evaluation Guidelines by Strategy Type ### For VALUE CHAIN/IP Ventures: Ask: "Are they profitable serving existing customers TODAY?" - ✓ Clear performance improvement over status quo - ✓ Existing customers willing to pay - ✓ Unit economics positive from start - ✗ Vague promises of future optimization ### For DISRUPTOR/ARCHITECTURAL Ventures: Ask: "Have they proven the new behavior/market exists?" - ✓ Users adopting new behavior (even at a loss) - ✓ Clear mechanism for future profitability - ✓ Network effects or scale economies evident - ✗ Assuming "build it and they will come" ### Red Flags Across All Strategies: - Trying to be multiple strategy types at once - No clear evidence for their chosen approach - Can't articulate path from nail to scale - Building features before validating core assumption