Exerdse 2 Opportunity-Creating Concepts and the Quest for Breakthrough Ideas After you have fully digested the discussions in this chapter, you should aim to prepare an industry analysis utilizing the criteria listed in Exhibit 5.8. This should be a first cut analysis, not an overly exhaustive effort. Your value chain should be mapped out on one to two pages maximum, with the other questions/issues answered in bullet points on one to two pages maximum. Rather than an exhaustive effort, this exercise is designed to get you to a specific way of thinking. Your task is to complete a simple, clear, and articulate value chain analysis of an industry that is of interest to you. Analyze the value chain as it currently exists. Next complete an information flow analysis of that value chain, overlaying an analysis of the flow of information through the various stages of the value chain. Then broaden your thinking to create a value cluster of that industry. Make sure you are thinking multidimensionally, not just linearly. Describe or visually depict the impact of these multiple dimensions on the flow of both goods/services and information. Explain how this value cluster expansion adds or intensifies value for that industry, as compared to the linear chain. Finally, provide a succinct analysis of the margins in this value cluster, with particular emphasis on the extremes (highs/lows). Also consider the following: . What are the deconstructors and reconstructors that drive the value chain and opportunity in this industry? What is your best estimate of the composition of the free cash flow, profit and value chains in a business in this industry? What prevailing industry practices, conventions, wisdom in marketing, distribution, outsourcing customer services, IT, and capital investment are significant in this business? What new practices, conventions, and so forth are now in place, and what are their half-lives? What are the growth segments? Where do the pundits (Forrester, IDG, Research Sources, and other Wall Street analysts) think the next growth market will be? What are the parameters and characteristics of that market? If you are planning to bring a high-tech product to market, you might want to consider the framework discussed in Crossing the Chasm: Marketing and Selling High-Tech Products to Mainstream Customers by Geoffrey Moore and Regis McKenna and look at the value chain and the specific industry segment(s) you plan to focus on. You should also consider reviewing Clayton M. Christensen writings on disruptive innovation in among others, The Innovator's Dilemma. Exerdse 2 Opportunity-Creating Concepts and the Quest for Breakthrough Ideas After you have fully digested the discussions in this chapter, you should aim to prepare an industry analysis utilizing the criteria listed in Exhibit 5.8. This should be a first cut analysis, not an overly exhaustive effort. Your value chain should be mapped out on one to two pages maximum, with the other questions/issues answered in bullet points on one to two pages maximum. Rather than an exhaustive effort, this exercise is designed to get you to a specific way of thinking. Your task is to complete a simple, clear, and articulate value chain analysis of an industry that is of interest to you. Analyze the value chain as it currently exists. Next complete an information flow analysis of that value chain, overlaying an analysis of the flow of information through the various stages of the value chain. Then broaden your thinking to create a value cluster of that industry. Make sure you are thinking multidimensionally, not just linearly. Describe or visually depict the impact of these multiple dimensions on the flow of both goods/services and information. Explain how this value cluster expansion adds or intensifies value for that industry, as compared to the linear chain. Finally, provide a succinct analysis of the margins in this value cluster, with particular emphasis on the extremes (highs/lows). Also consider the following: . What are the deconstructors and reconstructors that drive the value chain and opportunity in this industry? What is your best estimate of the composition of the free cash flow, profit and value chains in a business in this industry? What prevailing industry practices, conventions, wisdom in marketing, distribution, outsourcing customer services, IT, and capital investment are significant in this business? What new practices, conventions, and so forth are now in place, and what are their half-lives? What are the growth segments? Where do the pundits (Forrester, IDG, Research Sources, and other Wall Street analysts) think the next growth market will be? What are the parameters and characteristics of that market? If you are planning to bring a high-tech product to market, you might want to consider the framework discussed in Crossing the Chasm: Marketing and Selling High-Tech Products to Mainstream Customers by Geoffrey Moore and Regis McKenna and look at the value chain and the specific industry segment(s) you plan to focus on. You should also consider reviewing Clayton M. Christensen writings on disruptive innovation in among others, The Innovator's Dilemma