Sunday, October 12, 2014

On maps, component class, pipelines, markets, inertia and economic states.

When drawing maps, I often use different symbols to represent different aspects of competition. For example, since activities, practices, data and even knowledge evolve then I'll often mark these aspects on the map (see figure 1).

Figure 1 - Activities, practices, data and knowledge.

With most maps, I tend not to mark up the different component classes unless it is useful. When it is useful then in practice though I might add a legend to show the different class of components (activities to knowledge), I tend to not fully write out the process of evolution for each class on the evolution axis - it becomes unwieldy.  I simply use the evolution of activities to represent the different publishing type I to type IV of evolution. 

It's worth remembering that maps (even geographical maps) are simply a representation of the space. 

In some cases, within a map there will be a pipeline of constant change e.g. content for publishing. I'll normally mark this on (as with the case of the TV industry in figure 2).

Figure 2 - A content pipeline

When scenario planning, I'll tend to add on different markets to show comparison to the market in focus. I'll also add on further contextual information such as price elasticity, known forces (buyer vs supplier), known constraints and known difference between the company and the market (usually a dotted red line identifying a delta or a solid red line indicating a difference). An example of this is shown in figure 3.

Figure 3 - Comparison to market.

I'll also add on potential force multipliers (e.g. ecosystems), potential sources of inertia, likely points of change (a grey dotted line) and general comments or areas of interest.

Figure 4 - Ecosystems, inertia, points of change and areas of interest.

Lastly, I'll add different competitive states (peace, war and wonder), current and future states, competitive forces and potential for impacts. See figure 5.

Figure 5 - Competitive states and competitive forces.

The final maps I produce tend to contain elements of all the above. They are complex but then, so is competition.

When scenario planning then all of these components from activities, practices and data, to inertia, competitive forces, constraints, economic state, points of change, ecosystems, comparison to other markets, buyer vs supplier relationships, pipelines, elasticity and other compound effects (co-evolution, Jevons' paradox etc) need to be considered. Trying to do this in your head without a map i.e. a way of visualising and discussing a landscape - is almost impossible for any complex business.
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