# CONS Diagram The CONS framework helps analyze how operations create value by connecting capabilities to customer needs through deliverable solutions and sellable offerings. ## CONS Syntax ``` Capability? Needs? ╲ ╱ Deliverable? ↔ Sellable? ╱ ╲ Solutions? Offering? ``` ### Key Questions: - **Capability?** What can we do? (Resources, skills, assets) - **Needs?** What do customers want? (Problems, desires) - **Deliverable?** Can we execute it? (Operational feasibility) - **Sellable?** Will they buy it? (Market validation) - **Solutions?** How do we do it? (Operational design) - **Offering?** What do we promise? (Value proposition) --- ## 🍔 McDonald's ``` Capability? Needs? Assembly line Quick meals ╲ ╱ Deliverable? ↔ Sellable? ╱ ╲ Solutions? Offering? 15-sec burgers Fast food ``` ## ✈️ JetBlue ``` Capability? Needs? Point-to-point Budget travel ╲ ╱ Deliverable? ↔ Sellable? ╱ ╲ Solutions? Offering? High utilization Low fares ``` ## 🚗 Uber ``` Capability? Needs? Platform tech Riders & drivers ╲ ╱ Deliverable? ↔ Sellable? ╱ ╲ Solutions? Offering? Network density Instant rides ``` ## 🏥 MinuteClinic ``` Capability? Needs? CVS locations Minor ailments ╲ ╱ Deliverable? ↔ Sellable? ╱ ╲ Solutions? Offering? Nurse protocols Walk-in care ``` ## 📦 EOQ Model ``` Capability? Needs? Storage space Stock levels ╲ ╱ Deliverable? ↔ Sellable? ╱ ╲ Solutions? Offering? Optimal orders Zero stockouts ``` ## 👗 Zara ``` Capability? Needs? Vertical mfg Fresh fashion ╲ ╱ Deliverable? ↔ Sellable? ╱ ╲ Solutions? Offering? 2-week cycles Weekly drops ``` ### Zara's Virtuous Cycle ``` Capability? Needs? Fast design Trend seekers ╲ ╱ Deliverable? ↔ Sellable? ╱ ╲ Solutions? Offering? Small batches Buy-it-now ``` ## 📰 Yedioth ``` Capability? Needs? Weekly routes 14,000 SKUs ╲ ╱ Deliverable? ↔ Sellable? ╱ ╲ Solutions? Offering? Data analytics 95% fill rate ``` ## 🚚 Amazon ``` Capability? Needs? AI algorithms Everything ╲ ╱ Deliverable? ↔ Sellable? ╱ ╲ Solutions? Offering? Predictive ship 1-day Prime ``` ### Walmart's Response ``` Capability? Needs? 4,700 stores Value + speed ╲ ╱ Deliverable? ↔ Sellable? ╱ ╲ Solutions? Offering? Store-as-DC 2-hr pickup ``` ## 🏭 Nokia's Resilience ``` Capability? Needs? Multi-source Zero downtime ╲ ╱ Deliverable? ↔ Sellable? ╱ ╲ Solutions? Offering? Quick recovery Stable supply ``` ## 🚛 Traditional Distribution ``` Capability? Needs? Van delivery Small stores ╲ ╱ Deliverable? ↔ Sellable? ╱ ╲ Solutions? Offering? Weekly routes One-stop shop ``` ## 🏊 Pooled Strategy ``` Capability? Needs? Central data Network risk ╲ ╱ Deliverable? ↔ Sellable? ╱ ╲ Solutions? Offering? Pool inventory Better fills ``` --- ## Using CONS for Venture Evaluation When evaluating ventures, look for evidence in each quadrant: ### Strong Ventures Show: - **Clear Capability → Solution** link (Can they actually do it?) - **Validated Needs → Offering** match (Do customers want it?) - **Proven Deliverability** (Working prototype/pilot) - **Demonstrated Sellability** (Customer commitments) ### Weak Ventures Have: - Vague capabilities ("We're smart") - Assumed needs ("Everyone wants this") - No delivery proof ("Trust us") - No sales evidence ("Build it and they will come")