Thinking and acting strategically is crucial for any organization to achieve success. Steve Portigal, an experienced user researcher, understands the importance of this and helps organizations build more mature user research practices. In this article, we will explore how strategic thinking and action can be applied to delight customers, create hard-to-copy advantages, and enhance margins.

Thinking and acting strategically is crucial for any organization to achieve success. Steve Portigal, an experienced user researcher, understands the importance of this and helps organizations build more mature user research practices. In this article, we will explore how strategic thinking and action can be applied to delight customers, create hard-to-copy advantages, and enhance margins.

One of the key models that can guide us in this process is the DHM Model, which stands for Delight, Hard-to-copy, and Margin-enhance. This model encourages us to first jot down how our product delights customers currently and how it can continue to do so in the future. By identifying the unique aspects of our product that bring joy and satisfaction to customers, we can ensure that our offerings stand out from the competition.

Next, we need to consider ways to create a hard-to-copy advantage. This involves identifying and leveraging our strengths in a way that makes it difficult for competitors to replicate. Hamilton Helmer's book, "7 Powers," outlines seven different hard-to-copy advantages. These include the power of process, brand, network effects, economies of scale, counter-positioning, unique technology, and captured resources. By understanding these powers and applying them to our own business, we can develop a sustainable competitive advantage.

Let's take the example of Netflix, a company that has successfully utilized strategic thinking to create a hard-to-copy advantage. Netflix's personalization technology is an excellent example of the power of process. With data on the movie preferences of its 185 million members, Netflix can generate accurate forecasts of streaming hours for each potential title. This allows them to invest in original content in a way that is perfectly aligned with customer demand. By leveraging their personalization technology, Netflix has been able to “right-size” their investments and stay ahead of the competition.

In addition to creating a hard-to-copy advantage, strategic thinking can also help us enhance margins. This involves experimenting with pricing and business models to find the most profitable approach. By understanding our target market, analyzing customer behavior, and exploring different pricing strategies, we can optimize our profit margins and ensure long-term sustainability.

Now that we have explored the importance of strategic thinking and action, let's discuss three actionable advice that can help organizations apply these principles effectively:

1. Conduct thorough customer research: To truly understand how to delight customers, it is essential to conduct in-depth research. This includes gathering customer feedback, analyzing market trends, and identifying unmet needs. By gaining a deep understanding of our target audience, we can tailor our product offerings to exceed their expectations and create a delightful experience.

2. Foster a culture of innovation: Strategic thinking requires a culture that encourages innovation and creativity. Organizations should create an environment where employees feel empowered to generate and share new ideas. By fostering a culture of innovation, we can continuously improve our products and stay ahead of the competition.

3. Continuously monitor the market: The business landscape is constantly evolving, and strategic thinking requires us to stay informed and adapt accordingly. Regularly monitor the market, analyze competitor strategies, and keep an eye on emerging trends. By staying proactive and responsive to changes in the market, we can maintain our competitive edge and seize new opportunities.

In conclusion, strategic thinking and action are essential for organizations to thrive in today's competitive business landscape. By applying the DHM Model, understanding hard-to-copy advantages, and enhancing margins, we can position ourselves for long-term success. By conducting thorough customer research, fostering a culture of innovation, and continuously monitoring the market, we can ensure that our strategic efforts yield positive results. So let's embrace strategic thinking and action, and pave the way for a successful future.