Delta Model

Knowledge Center

12manage is looking for students. Info

Articulating and implementing effective Extended Enterprise strategies. Explanation of Strategic Triangle of Arnoldo C. Hax and Dean L. Wilde II. Delta Model.

The Delta Model is a strategy framework that was developed by Dean Wilde, along with other members of Dean & Company, and Arnoldo Hax of the MIT/Sloan School of Management. It aims at assisting managers in the articulation and implementation of effective corporate and business strategies.

The emergence of the Internet, with its revolutionary potential for communication, and the technologies surrounding e-business and e-commerce, make available some new options and tools that allow the feasibility of new business approaches.

Competive Advantage, Resource-Based View, Delta Model

Delta model: Extended Enterprise

Hax and Wilde II integrate the Competitive Advantage and Value Chain frameworks from Porter with the Resource-Based View on the Firm and complement those with new Extended Enterprise perspectives and with offering Total Customer Solutions.

Hax Wilde Delta Model Extended Enterprise


Elements of the Delta model

  1. Strategic Triangle: used for defining strategic positions that reflect new sources of profitability. Three strategic options: best product, customer solutions, and system lock-in.
  2. Aligning these strategic options with a firm's activities and providing congruency between strategic direction and execution. Three fundamental processes are always present and are the repository of key strategic tasks: operational effectiveness, customer targeting, and innovation.
  3. Adaptive processes: the most important processes of the company must be aligned to the chosen strategy. In this way progress can be made against the strategic agenda and a too generic outcome can be avoided. The Delta Model identifies the core processes of the business and provides a guide for how they need to function differently to achieve different strategic positions capable of continually responding to an uncertain environment.
  4. Metrics. Metrics providing overview should be supplemented with granular metrics.

Customers in the Delta Model

Hax and Wilde believe that a firm owes itself to its customers. They are the ultimate repository of all the firm's activities. At the heart of management and, certainly, at the heart of strategy, resides the customer. We have to serve the customer in a distinctive way if we expect to enjoy superior performance. Running a business means to attract, to satisfy, and to retain the customer.

The intimacy and connectivity of the networked economy offer opportunities to create competitive positions based upon the structure of the customer relationship.

A business can establish an unbreakable link, deep knowledge, and close relationship that Hax and Wilde name: "Customer Bonding". These bonds can be directly formed with the customer. They can also be formed indirectly through complementors the customer wishes to access.

Both are powerful sources of margin and sustainability. The bonds represent investments made by customers and complementors in and around the business' product.

Special Interest Group - Delta Model (Extended Enterprise)

Special Interest Group (49 members)

Forum - Delta Model (Extended Enterprise)  

Here you will find interesting and educational discussions.

Hot The Strategy of Google (2 reactions)
What strategic model does Google use?...

Best Practices - Delta Model (Extended Enterprise)

Here you will find the most valuable ideas.

Expert Tips - Delta Model (Extended Enterprise)

Here you will find high-quality advice from experts.


Delta Model Best Practices

Delta Model Implementation Strategies...

Consequences of the Delta Model for the Innovation Process

Implementing the Delta Model...

Consequences of the Delta Model for Customer Targeting

Implementing the Delta model...

Consequences of the Delta Model for Operational Effectiveness

Implementing the Delta model...

Resources - Delta Model (Extended Enterprise)

Here you will find powerpoint presentations, micro-learning videos and further information sources.

Delta Model

Original Paper...

Towards Total Customer Solutions with the Delta Model

Delta Model, Network Economy, Total Customer Solutions...

Comparison Diagram

Porter vs RBV vs Delta Model...

Delta Model Diagram

Business Strategy...

News about Delta Model


News about Extended Enterprise


Videos about Delta Model


Videos about Extended Enterprise


Presentations about Delta Model


Presentations about Extended Enterprise


Books about Delta Model


Books about Extended Enterprise


More about Delta Model


More about Extended Enterprise


Compare with The Delta Model: Competitive Advantage  |  Strategic Types  |  Rule of Three  |  Value Chain  |  Resource-Based View  |  Core Competence Prahalad  |  Porter Competitive Forces  |  The Value Net, Co-opetition  |  Just-in-time  |  TDC Matrix  |  Outsourcing  |  Impact/Value framework  |  Strategic Thrusts  |  Bricks and Clicks  |  Twelve Principles of the Network Economy

Return to Management Hub: Strategy  |  Supply Chain & Quality

More Management Methods, Models and Theory

Special Interest Group Leader

You here? Sign up for free


About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
© 2019 12manage - The Executive Fast Track. V15.1 - Last updated: 15-10-2019. All names ™ of their owners.