Solve Phase

92 customer loyalty, degree of customer satisfaction, acquisition rate of new customers, profitability per customers are examples of measures related to the ability of organizations to meet customers’ requirements, needs and the target market. The distribution rate, rapidity in answering by the customer care and the degree of product innovation measure the performances of the process from an internal point of view to determine the impact of the value generation and the strength of market relationships. Finally, indicators such as the degree of satisfaction and retention rate of employees, the level of training and the degree of professionalism of the staff, the ability to transfer knowledge and the level of excellence in the information system measure the ability of the startup in growing through continuous learning.

In conclusion, the advantages presented by the ICE diagram can be summarized by four main benefits:

• Performances’ overview of the company activities;

• Communication enablement and understanding of the business objectives and strategic decisions at all internal and external levels;

• Cognitive and operational support for the development of the Solution canvas;

• Clear and summarized information which can be easily processed by an IT system to generate an historical database.

93 Table 13 shows that the structure of the Executive ICE Diagram is not changed with respect to the ICE Diagram presented in the Evaluate Phase. It contains exactly the same columns’ elements building the ICE Diagram, Identify, Control and Evaluate, with the same prioritization principle.

Table 13: Executive ICE Diagram Table⁵¹

The first difference is that the Executive ICE Diagram takes into consideration only a subset of the content contained in the related diagram, just the strategic actions with higher priority and related to interesting parameters, cost and time, are selected.

The second main distinction is that the Executive ICE Diagram includes, also, the cashflow generated by the business. It provides an additional information with respect to the ICE Diagram useful to represent the results of the commercial activities implemented by the startup. The cashflow takes into account the investments made, the funds received and the related activities costs and revenues. The cashflow requires a continuous monitoring and evaluation to understand the budget availability at the disposal of the startup to enhance the operational plan.

This constant control is required not only by the cashflow element, but by the entire Execution ICE Diagram. Indeed, the document must be updated on the basis of the activities’ progress, changes and integration to present always the as-is operative business status.

4.6.2 The Solution Canvas

The Solution Canvas is the second analytical tool included into the Solve phase of the methodology. It has the intention of representing the to-be business structure, focusing on the solutions identified and designed due to the development of the previous steps. It is inspired by the Business Model Canvas, which is the as-is representation of the business, the document is nothing more than a direct consequence of the outcomes generated by the prior activities developed during the methodology implementation.

51 G. Perboli (2018)

94 It is able to provide a simple and clear standard graphical representation of the business’

solutions supporting and creating the value proposition of the startup which results to be a repeatable process during the business development.

The structure of the Solution Canvas is composed by nine main building blocks such as the Business Model Canvas, with significant elements, as represented by figure 37.

Figure 37: Solution Canvas⁵²

The structure of the document has not been changed, but the building blocks have undergone a transformation to adapt the tool for the Solve phase. The new ones are:

1. Decision makers: it is at the centre of the solution and identifies who takes the decisions stated in the previous phases, their hierarchy and the related timing;

2. Users: it represents the “customers” of the solution, meaning the stakeholders involved in the solution making process, those actors who benefit from the implemented actions. The success of the business depends on them, decision makers should be able to guide them, support them and involve them in the project. It is necessary to avoid the phenomena of resistance at business level which would compromise the achievement of the startup’s strategic goals;

3. User and decision makers relationships: it describes the relations existing between these actors, who take the decisions and who is influenced by the solution derived by these decisions;

52 G. Perboli (2018)

95 4. Solution Channels: it defines the two main categories of channels: the channels used to inform the actors involved about the benefits generated from the solutions, what changes are developed, and the channels used to implement and provide them with the chosen solution;

5. Objectives: it represents the value chain of the generated solution, it collects the main strategic objectives to be achieved that were collected during the assessment phase;

6. Decisions: it collects the list of decisions taken and implemented with information related to their characteristics, hierarchy and methods of implementation. It is useful, also, to include the duration of their produced effect in order to evaluate future solutions and actions;

7. Information/Resources: this block indicates the sources and providers from which the information used to select the solution was found. It specifies, also, the degree of uncertainty or certainty belonging to these sources;

8. Solution Constraints: it sets up the activities required to implement the solution, stating how the objective will be reached and weather there are technological/political/social/economic constraints. This block needs the information gathered by the application of the PEST Analysis, presented in the thesis, which should be modelled and adapted to fulfil the requirements of the solution canvas;

9. Costs: it lists the set-up costs faced to implement the solution and maintenance costs to allow it to last in the future. It, also, requires including the cost derived from the failure to implement the solution and the opportunity cost in implementing this solution and not others.