Design Advantage : The Secret to Creating Long-Term Value 4

Design Advantage : The Secret to Creating Long-Term Value 4 Derived from: Roger Martin’s The Design of Business

RAP2 : The Knowledge Funnel
PROFIT : The key to Value Creation lies in our use of what we know and don’t know. If we don’t know how something works, we can’t exploit it. Roger M
artin’s Knowledge Funnel provides a high-level model for translating knowledge into business value.

Mysteries
Mysteries are not understood. There’s something going on and we can’t quite explain it. Exploration starts with curiosity and a question. What do you want to know? Artists, Scientists, Researchers and Designers typically work in this domain.

Heuristics
Heuristics are rules of thumbs. They’re simple and incomplete understandings of more complex things. They increase the probability of getting a specific result and don’t guarantee it. Knowledge workers and Professionals work in this domain.

Algorithms
Algorithms are fixed formu
las. They’re step-by-step procedures that guarantee a specific result. Think software – it works the same every time and almost anyone can do it. This domain includes the franchise, production lines and software code.

Examples
Artist
PhD Student
Researcher
Architect
Facilitator
Lawyer
McDonalds
Multi-Level Marketing
Factory Production
Software Code



Up and Down
When you move down the funnel you decrease costs and increase your efficiency and scale.
When you move up the funnel you create the opportunity to re-invent what you’re doing.
It’s risky and the potential rewards are high.

Transitions
To move from Mystery to Heuristic develop a hunch that explains what’s going on.
To move from Heuristic to Algorithm simplify what you’re doing. Delete the extraneous, generalize circumstances and create a specific how-to model.

Geoff McDonald

Share
Published by
Geoff McDonald

Recent Posts

Top Ten Universal Human Values that Will CHANGE Your Life!

I need to change my core values because they don’t reflect the Universal Human Values.…

4 days ago

Empower Your Life – How to Stick to Your Values

Are you ready to empower your life and unlock your true potential? To achieve this…

2 weeks ago

Determine Your Core Life Values in 3 EASY Steps

Today, I’ll show you how to determine your core life values in 3 easy steps.…

3 weeks ago

How to Write a Personal Manifesto for your Content Creation

I did it! I created 150 videos on my YouTube channel. And it was all…

4 weeks ago

How to use Core Values to Make Better Decisions

What is the key to a meaningful life? Is it money or happiness? Or something…

1 month ago

Write a Personal Manifesto – Two Quick and Easy Ways

What’s the easiest way to write a personal manifesto? Is it a List, Motto, Purpose,…

2 months ago