KVC Knowledge Planning
Market Value System Modules and Programs
Kesting Ventures® Corp.
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KVC Mission
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Our mission is to provide clients with tools that increase
the long term effectiveness and productivity of R&D,
sales, marketing, manufacturing, business and
commercial development professionals.
Each program is conducted by an experienced executive,
who trains assigned managers while completing an
important project.
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Technology
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Most companies have
unique technology and
know-how.
Technology and know-how
are tools to produce
properties.
The MV System points out,
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the markets in which a
company can expect to secure a
sustainable advantage,
how a company can use its
technology and know-how to
build a significant business.
Kesting Ventures® Corp.
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Knowledge Planning Tools
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The Market Value System
Experiential Modeling
Mathematical Knowledge Blocks
Rank Order Equation
Managerial Accounting
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KVC’s Knowledge System
Strategic
Plan
Operations
Knowledge
Blocks
Business
Blueprints
Launch
Market
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Data, Discourse, Documentation
DOCUMENT
Background
Research and
Identification of
the Problem to
Be Solved.
DATA INPUT
Structured
Problem Solving
Sessions
DATA Analysis
Correlate Views
with DATA
DISCOURSE
Teams Use
Experiential
Modeling
DOCUMENT
Data, Session
Minutes, and
Analysis
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Micro/Macro Visioning
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The Market Value System
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Knowledge blocks linked together to explain the
functional and economic value contributed by all players
in a market value chain.
Modules include:
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review of background material,
comprehensive glossaries and other briefing documents,
templates,
training,
2-day experiential modeling session,
a written report, and
computer disks.
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The Theory of The Market Value System
All ‘buy’ decisions are based on a combination of:
PERFORMANCE
ECONOMICS
INFLUENCE
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The Market Value System Components
PERFORMANCE
The functional attributes of the customer’s product.
Glossaries and Templates are required.
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TechnoMarket Performance (TMP) Value Profile
Red bars connote
the property level in
1997
50%
40%
30%
Green bars show
that the market
will require >20%
more properties by
the year 2000.
20%
10%
0%
TMP800
TMP900 TMP1000 TMP1100 TMP1200 TMP1300
1997
2000
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1
THE PUZZLE
5
4
Conceptual slide showing how
all properties must be linked
together to reveal gaps.
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3
CopyrightKesting Ventures Corp.
The Market Value System Components
A ratio based on cost of customers’ product
divided by customer’s overall objectives.
Required for economic value pricing.
ECONOMICS
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Economics Ratio versus Time
1.400
1.200
1.000
0.800
E Ratio
0.600
0.400
0.200
0.000
Year 0 Year 1 Year 2 Year 3
Year 4 Year 5
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The Market Value System Components
All other factors (motivational, external and market change
forces, specifications, alliances and end-product goals.)
INFLUENCE
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How are Market Value Components
determined?
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KVC designs the structure of each component
KVC writes briefing documents concerning internal and
external information
The components of the MV Equation are based on expert
team judgment of factors throughout the entire market
chain
The market value equation correlates with market share
and profitability
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The Market Value System tells you:
How each player in the market value chain makes buy
decisions
 The contribution of each player in the market value
chain to TMP and Economic Value
 Where the opportunities are for innovation within
strategic markets
 Which product improvements the market will value...
and to what degree
 How to ensure that your profitability at least equals your
contribution to market value
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What are Knowledge Blocks?
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Knowledge blocks are multi-page spreadsheets which
correlate value judgments about the properties of
product (or service), economic value and influence with
market share, pricing and other market and financial
parameters.
Knowledge blocks contain supporting evidence,
glossaries and use instructions.
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Information is not Knowledge
 Knowledge
Blocks
 belong to people,
 are clearly written,
 are required to prove a concept,
 have at least 70% probability of truth,
 are based on valid experiences,
 fit market observations, and
 are accepted as true by a group.
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Who creates the Knowledge Blocks?
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A team of 8-12 of your most experienced management,
marketing, sales and R&D people and/or an external
panel
The team is led by a KVC Market Value Group Program
Director
In addition, KVC will use external expert teams as
needed to supplement or validate your judgments
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How does the team create the
Knowledge Blocks?
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A knowledge block begins with an audit of all
information, external literature, and competitive
intelligence
The audit is conducted from the prospective of your
customers, not from your position as a supplier
From the audit, KVC writes comprehensive glossaries
and designs experiential modeling templates...
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How does the team create
Knowledge Blocks? (Cont'd)
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The team contributes its experience and judgment on the
properties of product (or service), economic value and
influence
KVC processes the team’s input into finished,
cumulative spreadsheets, representing the company’s
best and most comprehensive knowledge of the market
value system for the new business
You are now ready to prepare the Business Blueprint
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The Business Blueprint
...includes all knowledge required to prove the success of
a business.
 ...identifies customers who will place a continuing high
value on the business’ products and/or services.
 ...explains the business’ sustainable advantage.
 ...points out tactical gaps and how to fill them.
 ...spells out required resources.
 ...describes expected financial results.
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Deliverables
Strategy Meeting
 TMP Values
 Economic Ratios
 Influence
 MVS
 ISUM Financial Models
 Market Definition
 Business Blueprint Draft
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Deliverables (Continued)
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Technology Assessment
Competitive Cost Assessment
External Expert Panel
Target Account
Organizational Structure
Product Development Review
Field Training
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The Market Value System


Knowledge blocks linked together to explain the
functional and economic value contributed by all players
in a market value chain.
Modules include:







review of background material,
comprehensive glossaries and other briefing documents,
templates,
training,
2-day experiential modeling session,
a written report, and
computer disks.
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Iterative Mechanism
Connects With the Market
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The objective is to see
the market so clearly
that you become the
market.
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Integral
Components
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The parts are integral to
the whole.
The whole gives meaning
to the parts.
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Strategy Meeting Module
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Comprehensive Review of Business
Custom Agenda
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Mission Statement
New Product Plans
Market Opportunities
Technology Position
Marketing Position
Organizational Structure
Briefing Documents
2-Day Strategy Meeting
Report
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TMP Value Module
Comprehensive Review of Product Technology and
Marketing Communication
 TMP Value Glossary
 Template Design
 TMP Value Training
 2-Day TMP Value Session
 Written Report
 Computer disks
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Economic Value Module
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Comprehensive Review of Market Value Chain
Economic Value Glossary
Template Design
Economic Value Training
2-Day Economic Value Session
Written Report
Computer disks
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Influence Module
Comprehensive Review of Market Value Chain
 Influence Glossary
 Template Design
 Influence Program Training
 2-Day Influence Session
 Competitive Influence Assessment
 Written Report
 Computer disks
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MVS Module
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Market Value Equations
Competitive Market Value Assessment
2-Day Strategy Development
Target Account Program
Strategy Sheets
Written Report
Computer disks
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ISUM Financial Model Module
Comprehensive Review of Manufacturing Operations
and Product Costs.
 Managerial Accounting System Template Design
 Trial Cash Flow Forecast
 ISUM Training
 Written Report
 Computer disks
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Market Definition Module
Comprehensive Review of Market Data
 Rank Order Equation
 Market Segmentation
 Competitive Assessment
 History and Forecast
 2-Day Market Definition Session
 Written Report
 Computer disks
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Business Blueprint Draft Module
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Requires
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Strategy Meeting
TMP Values
Economic Ratios
Influence Assessment
ISUM Financial Model
Worldwide Market Definition
2-Day Meeting to Review Blueprint
 Blueprint Manual
 Slides
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Technology Assessment Module
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Comprehensive Review of Alternate Technologies
Expanded TMP Value Template
Briefing Documents
2-Day Technology Assessment Session
Written Report
Computer disks
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Competitive Cost Assessment Module
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Comprehensive Review of Competitors’ Processes
Requires ISUM Models
Briefing Documents
2-Day Competitive Cost Assessment
Written Report
Computer disks
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External Experienced Panel Module
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Requires Background Sessions
$500 Honorariums
Briefing Documents
Templates
1-Day External Panel Session
Written Report
Computer disks
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Target Account Module
Requires Background Sessions
 Prearranged Appointments
 Briefing Documents
 Templates
 MVS Strategy Session
 2-Day Target Account Schedule
 Written Report
 Computer disks
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Organizational Structure Module
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Requires Business Blueprint
Comprehensive Organization Review
Position Descriptions
Knowledge Based Planning
2-Day Organization Meeting
Written Report
Computer disks
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Product Development Review Module
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Requires TMP Values
Comprehensive Technical Review
Briefing Documents
Template Design
2-Day Product Development Session
Written Report
Computer disks
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Field Training Module
Requires Business Blueprint
 Commitment
 Prearranged Schedule
 Briefing Documents
 Templates
 2-Day Field Training Session
 Follow-up Action Steps
 Written Report
 Computer disks
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