Business Guide

business   »  innovation   »  physics of business

The Physics of Business

        posted by , May 05, 2011

Business Strategy is often filled with abstract concepts and trendy words: competitive advantage, value proposition, core competency, efficiency, optimization, best of breed, best practices, social media marketing etc ... All important concepts — however, it is important to validate strategy against business fundamentals.

The Physics of Business

All science is either physics or stamp collecting.
~ Ernest Rutherford

The physics of business are the fundamental laws of the business universe. All other business concepts can be explained in terms of 3 dimensions: revenue, cost and customer experience.

business physics

Will Your Strategy Fly?

When business strategies and goals are validated using abstract concepts there is always a risk the strategy won't fly in the real world.

For example, consider competitive advantage: an important business concept that is often used to support business cases. But what does it mean to say that a initiative will enhance competitive advantage? Competitive advantage must reduce costs, increase revenue or enhance customer experience — this is often forgotten.

3 Shares Google Twitter Facebook

A list of adjectives commonly used in advertising slogans and copy.

Strategies that fail to adapt to these forces are a recipe for disaster.

Quality is in the eye of the beholder. Fifty common ways to describe a quality customer experience.

The 7 key benefits of train-the-trainer.

Recently on Simplicable

Communication Strategies

posted by John Spacey
The intrigue of communication strategy.

Time to Market Explained

posted by Anna Mar
How to speed past your competition.

Arbitrage Explained

posted by Anna Mar
The idea with arbitrage is to buy and sell very quickly to take advantage of temporary price differences.

Precommitment As A Strategy

posted by Anna Mar
A risky strategy that comes up more than you'd expect. Burning your bridges is a military strategy that demonstrates your resolve to your opponent ...


about     contact     sitemap     privacy     terms of service     copyright